Company Stock Will Begin Trading on Split Adjusted Basis October 1, 2025 LAKE BARRINGTON, IL, Sept. 26, 2025 (GLOBE NEWSWIRE) -- Yunhong Green CTI Ltd. (Nasdaq: YHGJ) (“Yunhong Green CTI” or the "Company"), a leading manufacturer of custom film products, foil novelty balloons, and flexible packaging products, today announced that it will proceed with a 1-for-10 reverse stock split of its shares of common stock (the "Reverse Stock Split") following approval by its Board of Directors. The Reverse Stock Split ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (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 YUNHONG GREEN CTI LTD. (Exact name of registrant as specified in its charter) Illinois 36-2848943 (St ...

Group 1 - The core viewpoint of the article highlights the financial performance and strategic focus of Yunhong Green CTI, which is experiencing a slight decline in revenue but an increase in net profit [1] - As of July 31, Yunhong Green CTI's stock opened at $0.73 per share, reflecting a 3.09% increase, with a total market capitalization of $20.2464 million [1] - Financial data shows that for the period ending March 31, 2025, the company's total revenue was $4.802 million, representing a year-on-year decrease of 1.88%, while the net profit attributable to the parent company was -$416,000, showing a year-on-year increase of 27.78% [1] Group 2 - Yunhong Green CTI is focusing on the development of 100% fully biodegradable bio-based packaging materials in Wuhan, Hubei Province, China, while maintaining its existing novelty balloon, candy, and balloon gift solutions business in the U.S. [1] - The company is expanding its product offerings to include a variety of consumer and commercial products such as takeout bags, mailing and express packaging bags, and large trash bin liners [1]

Core Viewpoint - Yunhong Group has completed a strategic restructuring, transferring 70% of its shares to Zhongqing Baoshang Group, aiming to raise 50 billion yuan for further development [1][2]. Group 1: Strategic Restructuring - The strategic restructuring involves Yunhong Group's chairman Li Yubao transferring 70% of his shares to Zhongqing Baoshang, while the employee union retains 30% [1]. - Following the restructuring, Li Yubao will no longer hold shares or shareholder rights in Yunhong Group [1]. - The restructuring is expected to facilitate a capital injection of 50 billion yuan into the company [1]. Group 2: Partnership and Investment Focus - The partnership with Zhongqing Baoshang will focus on industrial collaboration, technological upgrades, and financial resource support [2]. - Zhongqing Baoshang plans to leverage the "Belt and Road" initiative to provide funding and international cooperation channels for Yunhong Group [2]. - Key projects include enhancing digital trade platforms, low-altitude economy industries, and infrastructure projects like the Wuxue General Aviation Airport [2]. Group 3: Company Overview and Operations - Yunhong Group, established in 2013, operates multiple integrated industrial parks, including health, digital trade, logistics, and mining sectors [3]. - The company has a comprehensive logistics plan that includes a general aviation airport and a modern logistics park in Wuxue, with significant investments planned [3]. - Yunhong Group is recognized as a national high-tech enterprise and has three publicly listed companies under its umbrella [4]. Group 4: Financial Performance of Subsidiaries - Silicon Xin Group, one of the subsidiaries, reported a revenue of 27.177 million yuan in 2024, a decrease of 43.07%, with a net loss of 4.367 million yuan [5]. - Jiacheng Holdings achieved a revenue of 258 million yuan in 2024, an increase of 9.58%, with a net profit of 11.882 million yuan, up 101.73% [5]. Group 5: Mining Operations and Strategic Importance - Yunhong Group has extended its operations into mining, with strategic partnerships in Burkina Faso for gold mining, holding exploration licenses for three mining areas [6]. - The mining resources are seen as a key factor in attracting the 50 billion yuan investment from Zhongqing Baoshang [6]. - The strategic location of Burkina Faso is highlighted as a hub for connecting North and West African markets, enhancing the investment appeal [6]. Group 6: Future Strategic Directions - The restructuring is expected to accelerate Yunhong Group's strategic layout in digital trade, low-altitude economy, and major infrastructure projects [7]. - The collaboration aims to integrate resources across new energy, digital trade, and aviation infrastructure, promoting investment along the "Belt and Road" [7]. - The partnership is based on mutual business complementarity, focusing on infrastructure, agricultural modernization, and mineral resource development [7].

Core Viewpoint - YHGJ's stock price increased by 6.42% on July 29, reaching $0.729 per share, with a total market capitalization of $20.27 million [1] Financial Performance - As of March 31, 2025, YHGJ reported total revenue of $4.802 million, a year-on-year decrease of 1.88% [1] - The company experienced a net loss attributable to shareholders of $416,000, which represents a year-on-year increase of 27.78% [1] Business Focus - YHGJ is maintaining its existing business in novelty balloons, candy, and balloon gift solutions in the U.S. while focusing on developing 100% fully biodegradable bio-based packaging materials in Wuhan, Hubei Province, China [1] - The product range includes takeout boxes, shopping bags, grocery storage bags, food transparent roll bags, trash bags, large trash bin liners, clothing bags, takeout bags, and various other consumer and commercial products [1]

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] - 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 are cash and cash equivalents, along with 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] Seasonal Sales - Sales in the foil balloon product line are seasonal, with approximately 40% of sales occurring from December through March[86] Accounting Estimates - There have been no material changes to the critical accounting estimates since December 31, 2024[87]

Revenue and Sales Performance - In 2024, revenue breakdown by product lines: Novelty Products accounted for 64%, Flexible Film Products for 5%, and Balloon-inspired gifts and Other Products for 31%[20]. - The Company reported consolidated net sales of $17,953,000 for the year ended December 31, 2024, representing a 1% increase from $17,804,000 in 2023[122]. - Sales of foil balloons decreased by 3% to $11,510,000 in 2024 from $11,885,000 in 2023, attributed to normal fluctuations in order flow[123]. - Sales of film products decreased by 9% to $847,000 in 2024 from $927,000 in 2023, impacted by industry consolidation and competition[123]. - Sales of other products increased by 12% to $5,596,000 in 2024 from $4,992,000 in 2023, driven by larger holiday orders and new everyday offerings[124]. Product Development and Innovation - The company expanded its product offerings to include compostable materials aimed at replacing single-use plastics, with shareholder approval for a name change to include "Green" in August 2023[13]. - Management has focused on growth and profitability within core product lines, particularly foil balloons, while leveraging advancements in compostable materials from associated companies[22]. - The company aims to develop new products and improve existing ones through research and innovation within its core product categories[22]. - The company spent approximately $200,000 on research and development activities for both fiscal years ended December 31, 2024 and 2023[55]. Financial Position and Performance - The company experienced significant fluctuations in raw material costs, which have materially affected profitability[45]. - The price of helium, a key input for foil balloons, increased dramatically beginning February 2022, negatively impacting revenue by several million dollars from May 2022 through the end of 2023[66]. - Cost of sales decreased by 1.33% to $14,352,000 in 2024 compared to $14,546,000 in 2023, despite a slight increase in sales[125]. - General and administrative expenses increased by 13% to $3,396,000 in 2024 from $2,995,000 in 2023, primarily due to higher audit fees[126]. - The Company incurred net interest expense of $862,000 in 2024, up from $628,000 in 2023[128]. - Cash used in operating activities amounted to $1,274,000 in 2024, compared to $1,222,000 in 2023[129]. - The Company had a cumulative net loss of approximately $26 million as of December 31, 2024, with only $0.2 million in cash available[131]. Operational Challenges - The company has faced supply chain disruptions and inflationary pressures since 2021, affecting its ability to fulfill customer demands[62]. - The company has introduced automation features in production lines since 2022 to mitigate rising labor costs[57]. - The company is subject to competitive pressures from well-established manufacturers in the balloon and novelty industry, which may impact market share[51]. - The company has not identified any cybersecurity threats or incidents that have materially affected its business strategy or financial condition[77]. Corporate Governance and Management - The Board of Directors consists of five members, with three being independent according to NASDAQ standards[182]. - The Audit Committee met three times during 2024, focusing on financial statement discussions and oversight of independent auditors[191]. - The Compensation Committee met once in 2024 to review executive compensation and employee benefit plans[192]. - The company has made diversity a goal, moving from a 100% Caucasian, 100% male Board to three Asian directors, two of whom are female[197]. - The company is dependent on key personnel, and any loss could adversely affect its ability to implement its business plan[180]. Stock and Shareholder Information - The Company issued 5 million shares of common stock valued at $6.25 million as consideration for an asset acquisition, with a fair value of $4.05 million assigned to machinery and equipment[103]. - The Company has approximately 400 holders of record of its common stock as of December 31, 2024[89]. - The Company received a deficiency notice from NASDAQ in 2024 for failing to maintain the required $1 bid price, with a compliance deadline of April 21, 2025[90]. - The Company did not pay any cash dividends during 2024 or 2023 and has no plans to do so in the foreseeable future[90]. Executive Compensation - In 2024, the Chief Executive Officer Frank Cesario received total compensation of $335,500, which includes a salary of $250,000 and stock awards valued at $85,500[204]. - Jana M. Schwan, the new Chief Executive Officer, received total compensation of $297,657 in 2024, with a base salary of $239,500 and stock awards of $48,657[204]. - The Company adopted an Executive Compensation Recovery ("Clawback") Policy in 2023, allowing recovery of performance-based compensation under certain conditions[202]. - Mr. Cesario's employment was terminated in November 2024, while he remains a Director[206]. - Ms. Schwan's employment agreement includes a base salary of $275,000 and a performance-based bonus of $250,000[208].

Financial Performance - Total net sales for the three months ended September 30, 2024, were $2,540,000, an increase from $1,923,000 for the same period in 2023, representing a growth of 32.2%[6] - For the nine months ended September 30, 2024, net sales reached $11,788,000, compared to $11,033,000 in the prior year, indicating a year-over-year increase of 6.8%[6] - The company reported a gross profit of $(20,000) for the three months ended September 30, 2024, down from a gross profit of $20,000 in the same period of 2023[6] - The net loss for the three months ended September 30, 2024, was $(1,193,000), compared to a net loss of $(967,000) for the same period in 2023, representing a decline of 23.4%[6] - For the nine months ended September 30, 2024, Yunhong Green CTI reported a net loss of $2,182,000, compared to a net loss of $720,000 for the same period in 2023, indicating a significant increase in losses[8] Cash Flow and Liquidity - The company generated net cash provided by operating activities of $862,000 for the nine months ended September 30, 2024, contrasting with net cash used in operating activities of $442,000 in the prior year[8] - Cash and cash equivalents at the end of the period were $5,000, down from $64,000 at the end of September 2023, indicating a decrease in liquidity[8] - The company issued preferred stock, generating $500,000, while it repaid $1,000,000 in notes payable related to a party, leading to a net cash used in financing activities of $1,476,000[8] - Cash used in financing activities was $1,476,000 for the nine months ended September 30, 2024, compared to cash provided of $496,000 in 2023, primarily due to revolving debt changes[86] - As of September 30, 2024, the company had cash balances of $5,000, down from $64,000 as of September 30, 2023[87] Assets and Liabilities - Total current assets decreased to $10,408,000 as of September 30, 2024, from $13,019,000 as of December 31, 2023, a decline of 20.1%[4] - Total assets increased to $20,619,000 as of September 30, 2024, compared to $17,247,000 as of December 31, 2023, an increase of 19.3%[4] - Total liabilities decreased to $10,686,000 as of September 30, 2024, from $13,515,000 as of December 31, 2023, a reduction of 21.3%[4] - Stockholders' equity increased to $9,933,000 as of September 30, 2024, compared to $3,732,000 as of December 31, 2023, an increase of 166.5%[5] Expenses - Operating expenses for the three months ended September 30, 2024, totaled $971,000, compared to $849,000 for the same period in 2023, reflecting an increase of 14.4%[6] - General and administrative expenses increased to $751,000 for the three months ended September 30, 2024, from $677,000 in 2023, largely due to higher audit fees[80] - Selling, advertising, and marketing expenses rose to $220,000 for the three months ended September 30, 2024, compared to $172,000 in 2023, reflecting increased sales commissions and payroll costs[81] - Depreciation and amortization expenses were $181,000 for the nine months ended September 30, 2024, compared to $211,000 in the same period last year[8] - Equity compensation expense rose to $133,000 from $16,000, reflecting increased compensation costs[8] Customer Concentration - Customer A accounted for 68% of net sales for the three months ended September 30, 2024, with sales of $1.731 million, compared to 56% and $1.097 million for the same period in 2023[57] - The company’s top three customers represented 79% of sales in Q3 2024, up from 75% in Q3 2023[76] - For the nine months ended September 30, 2024, Customer B's net sales were $2,823,000, accounting for 24% of net sales, up from $2,559,000 or 23% in 2023[78] Financing and Debt - The company’s senior secured financing includes a revolving credit facility of up to $6 million and a term loan facility of $731,250[35] - The interest rate on the senior facilities is set at the prime rate plus 1.95% per annum, with the prime rate being 8.0% as of September 30, 2024[36] - The company has extended the maturity date of its senior facilities to September 30, 2025[37] - The company must maintain a minimum tangible net worth of at least $4 million under the terms of its senior facilities[39] - The term loan balance was $0.6 million, down from $0.7 million as of December 31, 2023, with a revolving line of credit balance of $4.062 million compared to $4.991 million[41] Operational Challenges - The company faces substantial doubt about its ability to continue as a going concern for one year from the issuance of the financial statements due to various operational challenges[89] - The company has not commenced operations within its newly acquired subsidiary in China as of the reporting date[23] Inventory and Sales Composition - Total inventories as of September 30, 2024, amounted to $7.852 million, an increase from $7.791 million as of December 31, 2023, with raw materials at $1.197 million, work in process at $2.563 million, and finished goods at $4.092 million[56] - Foil balloons accounted for 91% of net sales in Q3 2024, generating $2,322,000, up 37% from $1,701,000 in Q3 2023[72] - Revenues from commercial films were $129,000 for Q3 2024, compared to $68,000 in Q3 2023, reflecting a 90% increase[74] - Other revenues increased to $2,690,000 for the nine months ended September 30, 2024, up 24% from $2,174,000 in the same period of 2023[75] Shareholder Actions - The Company issued 130,000 shares of Series E Convertible Preferred Stock in March 2024, raising gross proceeds of $1.3 million, and 70,000 shares of Series F Preferred for $0.7 million, both with an annual dividend rate of 8.5%[43][44] - The Company converted approximately $0.9 million of liabilities into approximately 1.8 million shares of common stock during 2023, eliminating both the note and deposit liabilities[45] - The Company recorded accrued dividends of $18,000 and $63,000 for the Series E Preferred for the three and nine months ended September 30, 2024, respectively[43]

Financial Performance - Net sales for the three months ended June 30, 2024, were $4,354,000, a 7.3% increase compared to $4,059,000 for the same period in 2023[6] - Gross profit for the six months ended June 30, 2024, was $1,588,000, compared to $1,641,000 for the same period in 2023, indicating a decrease of about 3.2%[6] - The company reported a net loss of $414,000 for the three months ended June 30, 2024, compared to a net loss of $149,000 for the same period in 2023[6] - For the six months ended June 30, 2024, the company reported a net loss of $989,000 compared to a net income of $247,000 for the same period in 2023[7] - The cost of sales for the six months ended June 30, 2024, was $7,660,000, representing 83% of sales, compared to 82% in the same period of 2023[54] Assets and Liabilities - Total assets increased to $21,625,000 as of June 30, 2024, up from $17,247,000 at December 31, 2023, representing a growth of approximately 25.5%[5] - Total current liabilities decreased to $7,450,000 as of June 30, 2024, down from $10,140,000 at December 31, 2023, a reduction of approximately 26.5%[5] - Cash and cash equivalents significantly decreased to $22,000 as of June 30, 2024, from $921,000 at December 31, 2023[5] - The company’s accumulated deficit increased to $(25,346,000) as of June 30, 2024, compared to $(24,357,000) at December 31, 2023[5] - The total stockholders' equity rose to $11,120,000 as of June 30, 2024, compared to $3,732,000 at December 31, 2023, reflecting a substantial increase of approximately 197.5%[5] Cash Flow and Financing - Cash flows from operating activities provided $108,000 in the first half of 2024, a significant improvement from a cash outflow of $1,361,000 in the prior year[7] - Financing activities resulted in a net cash outflow of $733,000 in the first half of 2024, compared to a net cash inflow of $1,409,000 in the same period of 2023[7] - The company reported cash payments for interest totaling $454,000 for the six months ended June 30, 2024, compared to $259,000 in the same period last year[7] - The balance of the Revolving Line of Credit as of June 30, 2024, was $4,788,000, compared to $4,991,000 as of December 31, 2023[27] - The Company has substantial doubt about its ability to continue as a going concern for one year from the issuance of the financial statements due to insufficient cash resources[22] Stock and Equity - The company issued 5 million shares of common stock valued at $6.25 million in exchange for certain production assets acquired through its wholly-owned subsidiary in China[13] - The Company issued 130,000 shares of Series E Convertible Preferred Stock, resulting in gross proceeds of $1.3 million, and 70,000 shares of Series F Convertible Preferred Stock, resulting in gross proceeds of $0.7 million[28][29] - Holders of Series E and F Preferred Stocks are entitled to quarterly dividends at an annual rate of 8.5% of the stated value ($10 per share)[28][29] - The Company converted approximately $0.9 million of liabilities into approximately 1.8 million shares of common stock during 2023[30] - The company has not issued dividends from 2020 through 2024 and does not expect to do so in the foreseeable future[33] Operational Highlights - The company formed a new subsidiary, Yunhong Technology (Hubei) Co. Ltd., in Hubei Province, China, during the reporting period[13] - The company is in the process of creating a new subsidiary to supply biodegradable and compostable materials[40] - The company has satisfied performance conditions for 225,000 shares of restricted stock granted to the CEO, including achieving an EBITDA of $1 million and operating cash flow of $1.5 million[33] - Customer A accounted for 60% of net sales for the three months ended June 30, 2024, with sales of $2,655,000, while Customer B represented 24% with sales of $1,040,000[37] - The company reported that sales to the top three customers represented 87% of net sales in Q2 2024, up from 85% in Q2 2023[52] Expenses - Operating expenses for the three months ended June 30, 2024, totaled $863,000, an increase of 7.3% from $804,000 in the same period last year[6] - The company incurred interest expenses of $236,000 for the three months ended June 30, 2024, compared to $155,000 for the same period in 2023, marking an increase of about 52.3%[6] - General and administrative expenses increased to $1,698,000 for the six months ended June 30, 2024, from $1,617,000 in 2023[54] - The company’s depreciation and amortization expenses were $120,000 for the six months ended June 30, 2024, down from $151,000 in the same period of 2023[7] Revenue Breakdown - Foil balloons accounted for 75% of net sales in Q2 2024, with revenues increasing by 11% to $3,252,000 compared to $2,938,000 in Q2 2023[48] - Revenues from film products decreased by 71% to $171,000 in Q2 2024 from $589,000 in Q2 2023[48] - Other revenues increased by 75% to $931,000 in Q2 2024 from $532,000 in Q2 2023[50]

Financial Performance - Total net sales for the three months ended March 31, 2024, were $4,894,000, a decrease of 3.1% compared to $5,051,000 for the same period in 2023[5] - Gross profit for the first quarter of 2024 was $895,000, down 20.6% from $1,127,000 in the first quarter of 2023[5] - The company reported a net loss of $576,000 for the three months ended March 31, 2024, compared to a net income of $396,000 for the same period in 2023[5] - For the three months ended March 31, 2024, the net loss was $576,000 compared to a net income of $396,000 for the same period in 2023, representing a significant decline[6] - Revenues from foil balloons decreased by 16% to $2,919,000 in Q1 2024 from $3,474,000 in Q1 2023, attributed to timing of orders and shipments[51] - Revenues from film products increased by 243% to $305,000 in Q1 2024 from $89,000 in Q1 2023, indicating growth in this category[52] - Gross margin decreased to 18% in Q1 2024 from 22% in Q1 2023, impacted by lower sales volume and mix inefficiencies[55] Operating Expenses - Operating expenses increased to $1,248,000 in Q1 2024, compared to $1,115,000 in Q1 2023, representing an increase of 11.9%[5] - General and administrative expenses rose to $1,040,000 in Q1 2024 from $961,000 in Q1 2023, primarily due to increased professional service costs[56] - The company incurred cash payments for interest totaling $218,000, up from $118,000 in the previous year[6] - The depreciation and amortization expense decreased to $62,000 from $80,000 year-over-year, reflecting reduced asset usage[6] - The company reported a significant increase in equity compensation expense to $122,000 from $7,000 in the prior year, indicating higher employee-related costs[6] Assets and Liabilities - Total current assets decreased to $12,551,000 as of March 31, 2024, from $13,019,000 as of December 31, 2023, a decline of 3.6%[3] - Total liabilities decreased to $11,468,000 as of March 31, 2024, down from $13,515,000 as of December 31, 2023, a reduction of 15.2%[4] - Shareholders' equity increased to $5,278,000 as of March 31, 2024, compared to $3,732,000 as of December 31, 2023, an increase of 41.4%[4] - The company had cash and cash equivalents of $49,000 as of March 31, 2024, a significant decrease from $921,000 as of December 31, 2023[3] - Accounts receivable increased to $4,398,000 as of March 31, 2024, compared to $3,975,000 as of December 31, 2023, an increase of 10.6%[3] - As of March 31, 2024, total inventories amounted to $7,710,000, a decrease from $7,791,000 as of December 31, 2023[36] - The Company has a term loan balance of $0.7 million and a revolving line of credit balance of $5,556,000 as of March 31, 2024[48] Cash Flow - Cash flows used in operating activities were $767,000, an improvement from $1,369,000 in the prior year, indicating better cash management[6] - Cash used by operations was $767,000 in Q1 2024, an improvement from $1,369,000 in Q1 2023[57] - As of March 31, 2024, the company had cash balances of $49,000, down from $130,000 in the same period of 2023[59] Equity and Stock Issuance - Total preferred stock issuance amounted to $1,300,000, with $771,000 from Series E and $700,000 from Series F[7] - The Company amended its Articles of Incorporation in March 2024 to authorize the issuance of 130,000 shares of Series E Convertible Preferred Stock, resulting in gross proceeds of $1.3 million[27] - The issuance of Series E Preferred Stock allocated $0.8 million to convertible preferred stock and $0.5 million to warrants classified as Additional Paid-In Capital[27] - The Company issued 70,000 shares of Series F Preferred in March 2024, resulting in gross proceeds of $0.7 million[28] Compliance and Concerns - The Company has substantial doubt about its ability to continue as a going concern for one year from the issuance of the financial statements[20] - The Company has been in compliance with the terms of its Senior Facilities since their inception in September 2021[22] - The Company has been in compliance with the Minimum Tangible Net Worth requirement of $4,000,000 as of March 31, 2024[47] - The company reported a material weakness in internal control over financial reporting as of March 31, 2024, due to insufficient accounting professionals[66] Customer Concentration - Customer A accounted for 46% of net sales for the three months ended March 31, 2024, generating $2,226,000 in sales, while Customer B contributed 35% with $1,710,000 in sales[37] - Sales to the top three customers represented 86% of consolidated net sales in Q1 2024, consistent with the same period in 2023[53] Future Plans and Initiatives - The Company plans to create a new subsidiary to supply biodegradable and compostable materials, reflecting its commitment to sustainability[44] - The Company acquired assets from Yunhong Environmental Protection Technology Co., Ltd. for $6,250,000, using 5 million shares of common stock[40] Miscellaneous - The weighted average number of shares outstanding for the first quarter of 2024 was 20,771,937, compared to 17,689,552 for the same period in 2023[5] - The balance of accumulated deficit earnings increased to $(24,933,000) as of March 31, 2024, compared to $(24,357,000) at the end of 2023[7] - The Company recorded raw materials inventory of $1,225,000 as of March 31, 2024, compared to $1,156,000 as of December 31, 2023[36] - The Company converted approximately $0.9 million of liabilities into approximately 1.8 million shares of common stock in February 2023[29] - The Company did not issue dividends from 2020 through 2024 and does not expect to do so in the foreseeable future, resulting in an estimated dividend yield of 0%[33] - The report includes interactive data files for the quarterly report on Form 10-Q for the quarter ended March 31, 2024, detailing consolidated financial statements[101] - The report was signed on September 25, 2024, by the Chief Executive Officer and Acting Chief Financial Officer[71][72]