Financial Performance - Net sales for the three-month period ended June 30, 2025, were approximately $5,457,000, representing a 25% increase compared to $4,354,000 in the same period of 2024[68]. - For the six-month period ended June 30, 2025, net sales were $10,259,000, an increase of $1,011,000 or 11% from $9,248,000 in 2024[70]. - Revenues from foil balloons decreased to $3,012,000 in Q2 2025 from $3,252,000 in Q2 2024, attributed to shipment timing[71]. - Revenues from commercial films increased to $350,000 in Q2 2025 from $171,000 in Q2 2024, reflecting a 105% increase[72]. - Other revenues for Q2 2025 were $2,095,000, up from $931,000 in Q2 2024, marking a 125% increase[73]. Financing and Debt - The company has a senior secured financing agreement with a revolving credit facility of up to $6 million and a term loan facility of $731,250[60]. - As of June 30, 2025, the term loan balance was approximately $0.6 million, and the balance of the revolving line of credit was $4.7 million[65]. - The company is required to maintain a minimum tangible net worth of at least $4,000,000, which it believes it has complied with[63]. Compliance and Regulatory Issues - The company received a notice from Nasdaq regarding non-compliance with the minimum bid price rule, with a grace period until April 21, 2025, to regain compliance[57]. Customer Concentration - Customer A accounted for 38% of net sales in Q2 2025, down from 60% in Q2 2024, while Customer B represented 44% in Q2 2025, up from 24% in Q2 2024[77]. - Total amounts owed by these two customers were approximately $3,484,000, representing 89% of the Company's consolidated net accounts receivable as of June 30, 2025, compared to 94% in 2024[77]. Cost and Expenses - Cost of sales for the six months ended June 30, 2025, was $8,415,000, representing 82% of sales, an improvement from 83% in the same period of 2024[78]. - General and administrative expenses increased to $1,593,000 for the six months ended June 30, 2025, compared to $1,698,000 in 2024[79]. - Selling, advertising, and marketing expenses decreased to $338,000 for the six months ended June 30, 2025, down from $413,000 in 2024[80]. Cash Flow - Net cash provided by operations was $1,714,000 for the six months ended June 30, 2025, a significant increase from $108,000 in the same period of 2024[82]. - Cash used in investing activities was $42,000 for the six months ended June 30, 2025, compared to $274,000 in 2024[83]. - Cash used in financing activities was $1,874,000 for Q2 2025, compared to $733,000 in Q2 2024[84]. - The Company had cash balances of $18,000 as of June 30, 2025, down from $22,000 in 2024[85]. Going Concern - There is substantial doubt about the Company's ability to continue as a going concern due to supply chain constraints and inflationary pressures[87]. Company Identity - The company changed its name to include "Green" to emphasize its commitment to biodegradable and compostable materials[56].
Yunhong Green CTI(YHGJ) - 2025 Q2 - Quarterly Report