YUNHONG GREEN CTI LTD. Q2 FY2023 earnings call

• Brand rebranding: The company is moving towards compostable and biodegradable solutions and changing its name to YunHong GreenCTI Limited, with the trading symbol to be YHGJ.
• Financials: Year-to-date sales in 2023 were $9.1 million vs $10.2 million in 2022; helium pricing moderated but remained elevated; Film products had varying quarterly outcomes; Balloon inspired gift items saw an increase from 2021-2022 but a drop in early 2023.
• Automation: Installing automation on the second manufacturing line with a third line planned for early next year; customer indication of stronger upcoming Valentine's Day orders.
• Credit facility: Credit facility to be concluded in September, with plans to replace it.

Year-to-date sales were $9.1 million in 2023 compared to $10.2 million in 2022. Helium was a key factor in 2022 with price challenges, but 2023 has been more consistent. Film products bounced back from a non-existent first quarter in 2023 to narrowly beat last year's second quarter. Balloon inspired gift items increased by $1.7 million from full year 2021 to 2022, though there was a drop in the first 6 months of 2023 despite increased overall order flow. The gross margin was identical in the first 6 months of 2022 and 2023 despite a 10% revenue drop in 2023.

• The credit facility will be replaced in September, with expectations of success but no victory declared until done.
• Hopes for more to discuss on the next call.
• Helium pricing remains stubbornly elevated and must be managed.
• Automation will help with new product areas and holiday orders indicate optimism for future sales.

• Global instability issues such as potential actions by China and its impact on business.
• Helium supply challenges due to the lack of Russian supply.
• High audit fees as a new audit firm was onboarded in Q1.
• Interest rate challenges.
• Shareholder concerns about stock price and future revenue generation from new developments.

Q: Concerns about China's possible actions, stock price, and share issuance.

A: Frank addressed global instability impacts, explained the share issuance request as being ready for future business moves like new facilities, M&A, etc., without immediate plan to deploy additional shares, and discussed the company's response to shareholder concerns regarding stock price and future developments Q: Observations on stock volume and future revenue perception.

A: Frank noted the stock was under $2 recently, mentioned the largest entity in the space is in Chapter 11, and highlighted the team's ability to fight through challenges and their optimism for future sales as helium prices moderate and automation helps