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]
Yunhong Green CTI(YHGJ) - 2024 Q2 - Quarterly Report