Thu, Sep 26, 8:01 PM (85 days ago)
For the quarter ending June 30, 2024, Yunhong Green CTI Ltd. reported net sales of $4,354,000, a 7% increase from $4,059,000 in the same period of 2023. However, the company incurred a net loss of $470,000, compared to a loss of $149,000 in Q2 2023. The gross profit margin improved slightly to 16% from 13% year-over-year, while operating expenses rose to $863,000 from $804,000, driven by increased selling and marketing costs. Cash flow from operations turned positive at $108,000, contrasting with a significant outflow of $1,361,000 in 2023. Total assets increased to $21,625,000 from $17,247,000, primarily due to a rise in property, plant, and equipment. Liabilities decreased from $13,515,000 to $10,505,000, largely due to repayments of related party loans. Despite these improvements, the company faces liquidity challenges, with cash at $22,000, down from $921,000 a year earlier. The company’s future operations may be impacted by ongoing market uncertainties, including inflation and supply chain issues, raising substantial doubt about its ability to continue as a going concern. Management is exploring additional financing options to sustain operations.