YUNHONG GREEN CTI LTD.
For the period ended Jun 30, 2025. Filed Aug 14, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 14, 2025
YHGJ$3.40+9.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-20.
0001641172-25-011658
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-14.
0001493152-25-011965
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsQuantitative and Qualitative Disclosures Regarding Market RiskThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 42 previous paragraphs and 49 current paragraphs.
26 unchanged; 14 reworded; 5 added; 2 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 3 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
For the six-month period ended June 30, 2025 and 2024, net sales were $10,259,000 and $9,248,000 respectively, representing an increase of $1,011,000, or 11%.
Current report
Foil Balloons. Revenues from the sale of foil balloons decreased during the three-month period ended June 30, 2025 to $3,012,000 compared to $3,252,000 during the same period of 2024. The slight decrease in revenue is due to the timing of shipments.
Current report
Cost of Sales. During the three and six month periods ended June 30, 2025, the cost of sales was $4,479,000 and $8,415,000 compared to $3,662,000 and $7,660,000 respectively for the same periods of 2024, with the change driven largely by changes in sales volume. As a percentage of sales, cost of sales was 82% during the three and six months ended June 30, 2025, compared to 84% and 83% during the three and six months ended June 30, 2024.
Current report
General and Administrative. During the three and six month periods ended June 30, 2025, general and administrative expenses were $754,000 and $1,593,000 as compared to $640,000 and $1,698,000, respectively, for the same periods of 2024. The company had higher than usual audit fees in both years. Of note are the “re-audit” costs associated with 2023 due to the Company’s former auditor being suspended from practicing before the SEC during May 2024.
Current report
Quantitative and Qualitative Disclosures Regarding Market Risk
Removed paragraphs (2)
Previous report
Cost of Sales. During the three-month period ended March 31, 2025, the cost of sales was $3,936,000, compared to $3,999,000 for the same period of 2024. Even though the volume was lower than 2024, the gross margin of 18% remained the same for both periods
Previous report
General and Administrative. During the three-month period ended March 31, 2025, general and administrative expenses were $839,000 as compared to $1,040,000 for the same period in 2024. The largest change was due to decrease in audit fees by $167,000 this was because of the timing of the audit by Borgers CPA LLC.
Reworded paragraphs (14)
Previous wording
The Senior Facilities matured on September 30, 2023 and were extended with a maturity date of September 30, 2025. The facility automatically extends for successive periods of one year each, unless the Company or the Lender gives the other party written notice of termination not less than 90 days prior to the end of such term or renewal term, as applicable. If the Senior Facilities are renewed, the Company shall pay the Lender a renewal fee of 1.25% of the Maximum Revolver Amount and the Term Loan Amount upon each renewal on the anniversary of the Closing Date. The Company has the option to prepay the Term Loan Facility (together with all accrued but unpaid interest and a Term Loan Prepayment Fee (as defined the Agreement) in whole, but not in part, upon not less than 60 days prior written notice to the Lender.
Current wording
The Senior Facilities matured on September 30, 2023 and were extended with a maturity date of September 30, 2025. The facility automatically extends for successive periods of one year each, unless the Company or the Lender gives the other party written notice of termination not less than 90 days prior to the end of such term or renewal term, as applicable. If the Senior Facilities are renewed, the Company shall pay the Lender a renewal fee of 1.25% of the Maximum Revolver Amount and the Term Loan Amount upon each renewal on the anniversary of the Closing Date. The Company has the option to prepay the Term Loan Facility (together with all accrued but unpaid interest and a Term Loan Prepayment Fee (as defined in the agreement) in whole, but not in part, upon not less than 60 days prior written notice to the Lender.
Previous wording
As of both March 31, 2025 and December 31, 2024, the term loan balance amounted to $0.6 million, which consisted of the principal and interest payable balance of $0.6 million and deferred financing costs of approximately $11,000 and $17,000 respectively. The balance of the Revolving Line of Credit as of March 31, 2025 and December 31, 2024 amounted to $5.6 million and $6.6 million, respectively.
Current wording
As of both June 30, 2025 and December 31, 2024, the term loan balance amounted to approximately $0.6 million, which consisted of the principal and interest payable balance of $0.6 million and deferred financing costs of approximately $5,000 and $17,000 respectively. The balance of the Revolving Line of Credit as of June 30, 2025 and December 31, 2024 amounted to $4.7 million and $6.6 million, respectively. As of December 31, 2024, the Revolving Line of Credit exceeded $6,000,000 due to the year-end holiday schedule of the lender, and returned to less than $6,000,000 on January 3, 2025.
Previous wording
Net Sales: Net sales for the three-month periods ended March 31, 2025 and 2024 were approximately $4.80 million and $4.89 million, respectively, representing a slight decrease of $92,000, or 1.9% year-over-year.
Current wording
Net Sales: Net sales for the three-month periods ended June 30, 2025 and 2024 were approximately $5,457,000 and $4,354,000, respectively, representing an increase of $1,103,000 or 25% quarter-over-quarter.
Previous wording
Foil Balloons. Revenues from the sale of foil balloons increased during the three-month period ended March 31, 2025 to $4,234,000 compared to $2,919,000 during the same period of 2024. The majority of valentine’s day foil balloons this year were shipped in Q1 2025, whereas last year the majority of our valentine’s day foil balloons were shipped in Q4 2023. This increase is related to the timing of orders and shipments.
Current wording
Revenues from the sale of foil balloons increased during the six-month period ended June 30, 2025 to $7,245,000 compared to $6,171,000 during the same period of 2024. The main reason for this change is as majority of our valentine’s day foil balloons this year were shipped in Q1 2025 whereas last year the majority of our Valentine’s Day foil balloons were shipped in Q4 2023. The increase is related to the timing of orders and shipment.
Previous wording
Films. Revenues from the sale of commercial films increased during the three-month period ended March 31, 2025 to $427,000 compared to $305,000 during the same period of 2024. Sales in this area have been inconsistent due to a small number of customers and a significant number of competitors.
Current wording
Films. Revenues from the sale of commercial films were $350,000 and $777,000 during the three and six month periods ended June 30, 2025, compared to $171,000 and $476,000 during the same periods of 2024. Sales in this area have been inconsistent due to a small number of customers and a significant number of competitors.
Previous wording
Other Revenues: Other revenues decreased to $141,000 for the three-month period ended March 31 , 2025, compared to $1,670,000 for the same period in 2024. The primary reason for the decrease was the timing of spring product shipments, which will occur in the second quarter of 2025 rather than the first quarter, as they did in 2024. Other revenues during these periods primarily consisted of: (i) sales of balloon-inspired gift products, including candy and small inflated balloons packaged in small containers; and(ii) sales of accessories and supply items related to balloon products. Sales to a limited number of customers continue to represent a large percentage of our net sales. The table below illustrates the impact on sales of our top three and ten customers for the three-month periods ended March 31, 2025 and 2024.
Current wording
Other Revenues: Revenues from the sale of other products were $2,095,000 and $2,237,000 during the three and six month periods ended June 30, 2025 compared to $931,000 and $2,601,000 during the same periods of 2024. Other revenues during these periods primarily consisted of: (i) sales of balloon-inspired gift products, including candy and small inflated balloons packaged in small containers; and (ii) sales of accessories and supply items related to balloon products. The main reason for the fluctuation of the sales is due to timing of Valentine’s Day related shipments, which occurred in December 2024 compared to Q1 2024 for the following year.
Previous wording
During the three-month period ended March 31, 2025, there were two customers whose purchases represented more than 10% of the Company’s consolidated net sales. Sales to these customers for the three-month period ended March 31, 2025 were $3,091,000 and $523,000, or 64% and 11%, respectively of consolidated net sales. Sales to these customers for the three months ended March 31, 2024 were $2,226,000 and $1,710,000, or 46% and 35%, respectively of consolidated net sales. As of March 31, 2025, the total amount owed to the Company by these customers was approximately $4,335,000, or 89% of the Company’s consolidated net accounts receivable.
Current wording
During the three and six months ended June 30, 2025 and 2024, there were two customers whose purchases represented more than 10% of the Company’s consolidated net sales. Sales to these customers for the three and six months ended June 30, 2025 and 2024 are as follows:
Previous wording
Selling, Advertising and Marketing. During the three-month period ended March 31, 2025, selling, advertising and marketing expenses were $205,000 as compared to $208,000 for the same period in 2024.
Current wording
Selling, Advertising and Marketing: During the three and six month periods ended June 30, 2025, selling, advertising and marketing expenses were $168,000 and $338,000 as compared to $223,000 and $413,000, respectively, for the same period in 2024. Selling costs have decreased by $55,000 and $75,000.
Previous wording
Other Income (Expense). During the three-month period ended March 31, 2025, the Company incurred interest expense of $237,000 as compared to interest expense of $218,000 during the same period of 2024. The Company changed its borrowing structure to replace lender fees with interest payments.
Current wording
Other Income (Expense): During the three and six month periods ended June 30, 2025, the Company incurred interest expense of $227,000 and $465,000 as compared to interest expense of $236,000 and $454,000, respectively, during the same periods of 2024.
Previous wording
Operating Activities. During the three months ended March 31, 2025, net cash provided by operations was $970,000, compared to net cash used in operations during the three months ended March 31, 2024 of $767,000.
Current wording
Operating Activities. During the six months ended June 30, 2025, net cash provided by operations was $1,714,000, compared to net cash provided by operations during the six months ended June 30, 2024 of $108,000.
Previous wording
Significant changes in working capital items during the three months ended March 31, 2025 included:
Current wording
Significant changes in working capital items during the six months ended June 30, 2025 included:
Previous wording
Investing Activity. During the three months ended March 31, 2025, cash used in investing activity was $20,000, compared to cash used in investing activity for the same period of 2024 in the amount of $154,000.
Current wording
Investing Activity. During the six months ended June 30, 2025, cash used in investing activity was $42,000, compared to cash used in investing activity for the same period of 2024 in the amount of $274,000.
Previous wording
Financing Activities. During the three months ended March 31, 2025, cash used in financing activities was $998,000 compared to cash provided by financing activities for the same period of 2024 in the amount of $49,000. Financing activity during 2025 consisted principally of changes in the balances of revolving and long-term debt. During the period ended March 31, 2024, $0.5 million was received for convertible preferred stock while $1.0 million of Notes Payable was repaid.
Current wording
Financing Activities. During the three months ended June 30, 2025, cash used in financing activities was $1,874,000 compared to cash used by financing activities for the same period of 2024 in the amount of $733,000. Financing activity during 2025 consisted principally of changes in the balances of revolving and term loan debt.
Previous wording
At March 31, 2025, the Company had cash balances of $172,000 compared to cash balances of $49,000 for the same period of 2024.
Current wording
At June 30, 2025, the Company had cash balances of $18,000 compared to cash balances of $22,000 for the same period of 2024.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Current report — wording carried from elsewhere
For the six-month periods ended June 30, 2025 and 2024, net sales by product category were as follows
Current report — wording carried from elsewhere
Sales to a limited number of customers continue to represent a large percentage of our net sales. The table below illustrates the impact on sales of our top three and ten customers for the three and six month periods ended June 30, 2025 and 2024.
Current report — wording carried from elsewhere
As of June 30, 2025, the total amounts owed to the Company by these customers were approximately $3,484,000 or 89% of the Company’s consolidated net accounts receivable. The amounts owed at June 30, 2024 by these customers were $3,232,000 or 94% of the Company’s consolidated net accounts receivable.