Wed, Sep 25, 8:04 PM (86 days ago)
For the quarter ending March 31, 2024, Yunhong Green CTI Ltd. reported net sales of $4,894,000, a slight decline from $5,051,000 in the previous year. The decline in revenue from foil balloon sales was attributed to order timing, despite an increase in open orders. Gross profit fell to $895,000, reflecting a gross margin decrease to 18% from 22%, driven by higher costs and operational inefficiencies. Operating expenses rose to $1,248,000, leading to a net loss of $576,000 compared to a profit of $396,000 in the prior year. Cash flow from operations showed improvement, with $767,000 used in Q1 2024 versus $1,369,000 in Q1 2023. The company’s liquidity position weakened, ending the quarter with $49,000 in cash, down from $130,000 a year earlier. The company faces substantial doubt regarding its ability to continue as a going concern, primarily due to cumulative losses and reliance on external financing to meet operational needs. Recent financing included the issuance of Series E and F Preferred Stocks, raising $1.5 million, which may provide temporary relief. However, ongoing operational challenges and market uncertainties persist.