0001493152-26-012156
SEC filingYunhong Green CTI Ltd. reported FY 2025 net sales of $19.7M, up 10% YoY from $18.0M in 2024, driven by 11% growth in foil balloons to $12.8M (65% of revenue), 33% increase in film products to $1.1M (6%), and 4% rise in other products including balloon-inspired gifts to $5.8M (29%). Gross profit held steady at $3.6M, with gross margin dipping to 18.3% from 20.1% due to higher cost of sales at $16.1M (up 12%). Operating loss widened to -$2.0M from -$0.6M, reflecting elevated G&A expenses of $4.9M (up 45%, including $1.7M Hubei impairment). Net loss increased to -$2.5M (-67% YoY), or -$2.7M attributable to common shareholders, with EPS at -$1 vs -$0.07. Balance sheet shows total assets $22.5M, equity $8.6M, cash $97K, and line of credit $6.8M. Operating cash flow used -$172K, with net cash increase $231K to $921K end-period (noting inconsistencies). Going concern doubt persists due to losses and low cash; strategic focus on core U.S. foil balloons and compostable materials amid impairments and credit extension to 2027.
Yunhong Green CTI Ltd.'s FY 2025 results showed revenue growth to $19.7M (+10% YoY from $18.0M), led by foil balloons at $12.8M (+11%). Gross profit remained $3.6M (flat YoY), but operating expenses rose to $5.6M, yielding operating loss of -$2.0M (vs -$0.6M prior). Net loss expanded to -$2.5M (-69% YoY), with EPS -$1 (vs -$0.07). Key pressures included $1.7M Hubei impairment in G&A ($4.9M total, +45% YoY) and interest expense $878K. Balance sheet: assets $22.5M (down from prior), liabilities $13.9M, equity $8.6M. Cash ended at $97K, with ops cash -$172K.
Net sales increased 10% YoY to $19.7M. Foil balloons drove growth at $12.8M (65%, +11% YoY), boosted by new mass retailer assortment and seasonal gains. Film products rose 33% to $1.1M (6%), despite inconsistent orders. Other products (balloon-inspired gifts) grew 4% to $5.8M (29%), aided by larger holiday orders. Top two customers: 41% and 40% of sales (vs 47% and 36% prior). U.S.-focused, with international via distributors; no geographic split disclosed.
Gross margin contracted to 18.3% from 20.1% as cost of sales rose 12% to $16.1M on higher volumes. Operating margin -10.1% (vs -3.4%). G&A surged 45% to $4.9M due to impairments ($1.7M Hubei, $1.3M stock surrender). Selling $147K (+4%), marketing $555K (-18%). Other income $398K aided by $315K settlement, but interest $878K led to net other expense -$480K.
Operating cash used -$172K (improved from -$1.3M prior), with net loss -$2.5M offset by $641K depreciation, $1.7M impairment, AR decrease $552K, but inventory up $245K. Investing used $271K on PPE. Financing provided $132K (net LOC +$244K, stock $500K, note repayments -$1.1M). Cash rose $231K to $921K (start $220K). BS: current assets $15.1M (AR $6.0M, inv $8.7M), PPE net $4.0M, debt $6.8M LOC + $0.5M term, equity $8.6M. Liquidity strained, $0.2M revolver availability.
Management highlights core U.S. foil balloons focus, leveraging Yunhong Group compostables. Credit extended to 2027 ($7M revolver). Risks: customer concentration (top 10 =93%), helium volatility, raw material costs, China ops delay (Hubei impaired). Going concern doubt from losses ($28.4M accum. deficit), low cash; plans include equity raises, profitability push. No quantitative guidance.