Sales Performance - Net sales for the three-month period ended September 30, 2025, were approximately $2,953,000, representing a 16% increase from $2,540,000 in the same period of 2024[69] - For the nine-month period ended September 30, 2025, net sales were $13,212,000, an increase of 12% from $11,788,000 in the same period of 2024[71] - Revenues from foil balloons increased to $2,352,000 for the three months ended September 30, 2025, compared to $2,322,000 in 2024, reflecting a 1% increase[73] - Revenues from film products rose significantly to $253,000 for the three months ended September 30, 2025, from $129,000 in 2024, marking a 96% increase[74] Cost and Expenses - The cost of sales for the three months ended September 30, 2025, was $2,886,000, representing 98% of sales, compared to 101% in the same period of 2024[79] - General and administrative expenses increased to $869,000 for the three months ended September 30, 2025, from $751,000 in 2024, primarily due to higher legal expenses[80] Liquidity and Cash Flow - The company maintained senior secured credit facilities totaling $7.0 million in revolving credit and $0.7 million in term loans as of September 30, 2025[64] - As of September 30, 2025, the company had $4.6 million outstanding on the revolving facility and $0.6 million on the term loan, with $2.4 million of remaining borrowing capacity[67] - Net cash provided by operations during the nine months ended September 30, 2025, was $2,300,000, compared to $862,000 in the same period of 2024[83] - The company received a dispute settlement amount of $315,000 during the three months ended September 30, 2025, contributing to other income[82] - Cash used in investing activities was $68,000 in 2025, down from $302,000 in 2024[85] - Cash used in financing activities was $2,065,000 in 2025, compared to $1,476,000 in 2024[86] - Cash balances increased to $387,000 at September 30, 2025, compared to $5,000 for the same period in 2024[87] - The primary sources of liquidity include cash and cash equivalents, as well as availability under the Credit Agreement[89] Accounts and Inventory - Accounts receivable decreased by $2,712,000 in the nine months ended September 30, 2025, compared to a decrease of $1,779,000 in the same period of 2024[84] - Inventory increased by $187,000 in 2025, compared to an increase of $61,000 in 2024[84] Going Concern - The company faces substantial doubt about its ability to continue as a going concern for one year from the issuance of the financial statements[88] Seasonal Sales - Sales in the foil balloon product line are historically seasonal, with approximately 40% occurring from December through March[90]

(Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________to__________ Commission File Number 000-23115 FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 YUNHONG GREEN CTI LTD. (Exact name of registrant as specified in its charter) Illinois 36-2848943 (St ...

Financial Performance - Net sales for Q1 2025 were approximately $4.80 million, a slight decrease of $92,000 or 1.9% compared to $4.89 million in Q1 2024[71] - Revenue from foil balloons increased to $4,234,000 in Q1 2025, up from $2,919,000 in Q1 2024, representing a 45% increase[72] - Revenue from film products rose to $427,000 in Q1 2025, compared to $305,000 in Q1 2024, marking a 40% increase[73] - Other revenues decreased significantly to $141,000 in Q1 2025 from $1,670,000 in Q1 2024, primarily due to the timing of spring product shipments[74] - The cost of sales for Q1 2025 was $3,936,000, slightly lower than $3,999,000 in Q1 2024, maintaining a gross margin of 18%[77] - General and administrative expenses decreased to $839,000 in Q1 2025 from $1,040,000 in Q1 2024, largely due to a $167,000 reduction in audit fees[78] Cash Flow and Liquidity - Net cash provided by operations was $970,000 in Q1 2025, compared to net cash used in operations of $767,000 in Q1 2024[79] - As of March 31, 2025, the company had cash balances of $172,000, an increase from $49,000 in the same period of 2024[82] - The term loan balance as of March 31, 2025, was $0.6 million, with a revolving line of credit balance of $5.6 million[68] - The Company's primary sources of liquidity include cash and cash equivalents, as well as availability under the Credit Agreement[85] Going Concern - The Company faces substantial doubt about its ability to continue as a going concern for one year from the issuance of the consolidated financial statements[84] - Management's plans to ensure going concern include executing the business plan and exploring alternative funding sources[84] Compliance and Accounting - The company is in compliance with the Senior Facilities' requirement to maintain a Tangible Net Worth of at least $4,000,000[66] - There have been no material changes to the critical accounting estimates since December 31, 2024[87] Seasonal Sales - Sales in the foil balloon product line are historically seasonal, with approximately 40% of sales occurring from December through March[86]