Yunhong Green CTI Ltd. (NASDAQ: YHGJ) 2025 Annual Report – Detailed Investor Update

Barrington, IL – March 23, 2026: Yunhong Green CTI Ltd. (NASDAQ: YHGJ), a leading developer and manufacturer of flexible film products, novelty balloons, and packaging solutions, has released its Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Below, we break down the key developments, strategic changes, and noteworthy risks that could impact shareholders and potentially affect the company’s valuation.

Key Highlights from the 2025 Annual Report

• Reverse Stock Split and NASDAQ Compliance:
  • During 2024, Yunhong Green CTI Ltd. received a notice from NASDAQ for failing to maintain a minimum bid price of \$1.00 per share for 30 consecutive business days.
  • The company was granted an initial 180-day grace period (ending April 21, 2025); after not regaining compliance, it received a second 180-day extension, moving the deadline to October 19, 2025.
  • On October 1, 2025, the company executed a 1-for-10 reverse stock split to address the compliance issue. All historical share and per-share data have been retroactively adjusted to reflect this split.
  • On October 21, 2025, NASDAQ confirmed that YHGJ had regained compliance, as the stock price traded at or above \$1.00 for ten consecutive trading days. On March 19, 2026, the shares closed at \$2.96.
  • This action stabilized the company’s NASDAQ listing and may influence share price volatility going forward.
• Capital Structure Changes – New Preferred Shares and Warrants:
  • In March 2024, the company amended its Articles of Incorporation to authorize 130,000 shares of Series E Convertible Preferred Stock, raising gross proceeds of \$1.3 million, and 70,000 shares of Series F Preferred, raising an additional \$0.7 million, both from unrelated third parties.
  • Accrued dividends on these preferred shares totaled \$110,000 (2025) and \$50,000 (2024).
  • In connection with these offerings, 55,600 warrants were issued, exercisable for common stock at the lower of \$15.20 per share or 90% of the 10-day VWAP, potentially diluting existing shareholders upon exercise.
  • The fair value of these warrants was estimated using the Black-Scholes model, considering risk-free rates, dividend yields, and historical share volatility.
  • As of December 31, 2025, all 55,600 warrants remained outstanding.
• Business Performance and Strategic Focus:
  • The company remains a leading developer of flexible film-based products, including balloons, packaging, and specialty films. 65% of revenue is from foil balloons, 6% from flexible films, and 29% from balloon-inspired gifts and other products.
  • Management has decided to concentrate on core U.S.-based product lines and is leveraging developments in compostable materials from China-based Yunhong Group companies (controlled by Chairman Yubao Li).
  • Emphasis remains on innovation, new product development, and expanding into new distribution channels across the U.S., Europe, Mexico, Latin America, and Australia.
• Supply Chain, Labor, and Inflationary Pressures:
  • The company acknowledges ongoing risks from supply chain disruptions, inflation, and potential changes in trade policy, all of which have impacted and may continue to impact results.
  • The local labor market near Chicago continues to become more costly; the company has responded by adding automation to its production lines since 2022, with plans to continue automation efforts.
• Subsidiary in China – Impairment Charge:
  • The Chinese subsidiary, established for international manufacturing expansion, has not commenced commercial production due to tariff and macroeconomic issues.
  • During 2025, Yunhong Green CTI Ltd. recorded an impairment charge of approximately \$351,000 on the acquired equipment for this subsidiary.
• Machinery and Equipment Risks:
  • In Q1 2025, the company experienced multiple instances of equipment failure, particularly in third-party print runs, resulting in additional repair/replacement costs and the need to use third-party equipment, which negatively impacted financial results.
• Cybersecurity and Governance:
  • The Board of Directors, via its committees, regularly reviews enterprise risks, including cybersecurity and information systems exposure.
  • Protocols are in place for immediate escalation and remediation of any potentially material cybersecurity incidents.
• Dividend Policy:
  • No cash dividends were paid on common stock during 2024 or 2025, with no plans to pay dividends in the foreseeable future due to financial covenants under existing loan agreements.
• Employee and Labor Relations:
  • The company employs 25 manufacturing/warehouse staff and 13 clerical staff in the U.S. It is not party to any collective bargaining agreements and reports satisfactory labor relations.
• Legal and Regulatory Matters:
  • No unresolved SEC staff comments as of this filing.
  • The company is party to certain lawsuits or claims arising in the normal course of business, but management does not believe any will have a material adverse effect on financial condition or future results.
  • No mine safety disclosures are applicable.
• Shareholder and Executive Incentives:
  • Executive compensation includes performance-based restricted stock awards, vesting on reaching EBITDA targets, share price milestones, and continued employment.
  • For example, certain restricted stock awards to the CEO will vest when EBITDA equals or exceeds \$0.7 million, if shares trade at or above \$30 for ten consecutive days, or upon continued employment through January 1, 2027.

Potentially Price-Sensitive Issues

• NASDAQ Compliance and Reverse Split: The company’s successful efforts to regain compliance with NASDAQ listing standards after a reverse stock split mitigates a major delisting risk and should stabilize share price expectations.
• Capital Raises and Warrant Issuance: The preferred stock issuances and attached warrants introduce potential future dilution, which shareholders should monitor closely.
• Impairment Charge in China: The \$351,000 impairment signals caution for international expansion and may reflect ongoing macroeconomic and trade headwinds.
• Operational Risks: Equipment failures and supply chain disruptions have negatively impacted recent results and could continue to be a risk factor.

Other Shareholder Information

• As of March 23, 2026, 2,597,363 shares of common stock were outstanding (excluding treasury shares).
• The company is classified as a smaller reporting company and is not required to provide selected financial data as per SEC rules.
• Annual, quarterly, and current SEC reports are available at www.ctiindustries.com and the SEC’s EDGAR system.

Conclusion

Yunhong Green CTI Ltd. has taken decisive action to maintain its NASDAQ listing through a reverse stock split and continues to focus on its core product lines in the U.S. while leveraging international partnerships for material innovation. However, operational, macroeconomic, and potential dilution risks remain. Investors should watch for further developments regarding the company’s China subsidiary, preferred share conversions, and any impacts from automation and labor cost trends.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own due diligence and consult with a qualified financial advisor before making investment decisions. The information herein is based on the company’s SEC filings and may be subject to change or updates not reflected in this article.

View YUNHONG GREEN CTI LTD. Historical chart here