LAKE BARRINGTON, IL - Yunhong Green CTI Ltd. (NASDAQ:YHGJ), a manufacturer of film and novelty balloon products, has been notified by The Nasdaq Capital Market of non-compliance with Listing Standard 5250(c)(1) due to its failure to file the 10-Q for the period ending March 31, 2024. The company's prior auditor, BF Borgers CPA PC (BFB), was suspended from practicing before the SEC, leading to the inability to use its audit reports or consents in future filings.
This development has necessitated the engagement of a new independent registered public accounting firm, Wolf & Company, PC, which took over on April 1, 2024. The new auditors are required to perform additional procedures related to the company's 2023 balances to effectively review the 2024 filings, including the delayed Form 10-Q.
Yunhong Green CTI is currently working with Wolf & Company to complete the necessary work. Until this process is finalized, the company will be unable to issue any filings for 2024. The company must submit a plan to regain compliance with Nasdaq by July 22, 2024.
Nasdaq may grant an extension until as late as November 18, 2024. If the plan is not accepted, Yunhong Green CTI may appeal to the Nasdaq Hearings Panel. The company has stated its intention to submit its compliance plan by the specified July deadline.
Yunhong Green CTI Ltd., based in Lake Barrington, Illinois, is known for manufacturing custom film products, foil, and latex novelty balloons, as well as flexible packaging products. The company distributes its products across the United States and in several other countries.
This report is based on a press release statement from Yunhong Green CTI Ltd. and reflects the current situation regarding the company's compliance status with Nasdaq listing standards.
InvestingPro Insights
As Yunhong Green CTI Ltd. (NASDAQ:YHGJ) faces challenges with its Nasdaq compliance status, it's also important to consider the financial health and market performance of the company. According to InvestingPro data, Yunhong Green CTI's market capitalization stands at a modest 24.3 million USD, highlighting its position as a smaller player in the market. The company's financial metrics depict a challenging landscape, with a negative P/E ratio of -97.1 for the last twelve months as of Q4 2023, suggesting that investors are concerned about the company's profitability.
The company's stock has indeed fared poorly, declining by almost 57% over the last six months, and trading close to its 52-week low. This trend aligns with an InvestingPro Tip that indicates the stock has taken a significant hit during this period. Moreover, the company's gross profit margin for the same period was reported at 18.3%, which is considered weak and is a factor contributing to its financial struggles as highlighted by another InvestingPro Tip.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available that could provide further clarity on Yunhong Green CTI's financial position and market performance. These insights might prove invaluable, especially in light of the company's current regulatory challenges. Interested readers can find these additional tips on InvestingPro's dedicated page for Yunhong Green CTI at https://www.investing.com/pro/YHGJ. Plus, for a limited time, users can apply the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, further enriching their investment research experience.
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