1. Nature of Business

Nature of Operations

Yunhong Green CTI Ltd. its (inactive) subsidiary CTI Supply, Inc., and its wholly-owned subsidiary, Yunhong Technology (Hubei) Co. Ltd., in the Hubei Province of China (collectively, the “Company”) (i) design, manufacture and distribute metalized and latex balloon products throughout the world and (ii) operate systems for the production, lamination, coating and printing of films used for food packaging and other commercial uses and for conversion of films to flexible packaging containers and other products including balloon-inspired gift products. The Company is exploring ways to commercialize compostable and biodegradable materials, as well as sourcing additional products and materials through its subsidiary.

The Company formed a wholly owned subsidiary, Yunhong Technology (Hubei) Co., Ltd., in Hubei Province, China (the “China subsidiary”) to support its international production operations. On June 30, 2024, through this subsidiary, the Company acquired certain production equipment and related manufacturing assets pursuant to an Asset Purchase Agreement. The consideration consisted of 500,000 shares of the Company’s common stock, valued at approximately $6.25 million at the time of issuance. On December 2, 2025, the Company entered into a settlement agreement with the counterparty in the Asset Purchase Agreement pursuant to which 175,000 shares of common stock were reacquired and canceled in exchange for the Company surrendering its rights to approximately $2.1 million of prepaid assets representing a working capital credit for the buildout of operations The timing and extent of future operations in the China subsidiary will depend on market conditions and the Company’s strategic evaluation of the subsidiary’s viability. During the year ended December 31, 2025, the Company evaluated the carrying value of the acquired equipment in the China subsidiary and recorded an impairment charge of approximately $351,000. See Note 2.