Core Insights - Armlogi Holding Corp. reported a 16.5% year-over-year increase in revenue for the first quarter of fiscal year 2026, reaching $49.5 million, driven by strong demand for transportation and warehousing services [5][3] - The company experienced a 24.4% increase in warehousing services revenue, totaling $17.4 million, attributed to the expansion of its warehouse network [5][3] - Gross loss improved to $2.5 million, or (5.0%) of revenue, compared to a gross loss of $3.6 million, or (8.5%) of revenue, in the previous year, indicating operational improvements despite rising freight costs [5][3] Financial Performance - Total revenue for the first quarter of fiscal year 2026 was $49.5 million, up from $42.5 million in the same quarter of the previous year [5] - Transportation services revenue grew by 12.6% to $32.1 million, reflecting increased shipment volumes from new warehouse locations [5] - The net loss for the first quarter was $6.5 million, or $(0.15) per share, compared to a net loss of $4.6 million, or $(0.11) per share, in the prior year [5][11] Operational Highlights - The company expanded its warehouse network to ten locations, covering approximately 3.9 million square feet, enhancing its capacity to serve cross-border e-commerce merchants [3][4] - The addition of the Illinois facility has strengthened the company's presence in the Midwest, facilitating nationwide customer service [3] - The active customer base increased to 607 as of September 30, 2025, up from 505 as of June 30, 2025 [5] Cash Position - As of September 30, 2025, cash, cash equivalents, and restricted cash totaled $10.8 million, a decrease from $13.6 million at the beginning of the period [5][15] - The company reported a net cash used in operating activities of $1.9 million for the first quarter [15]

Financial Performance - Revenue for the three months ended September 30, 2025, was $49,473,179, an increase of 16.7% compared to $42,481,896 for the same period in 2024[12] - Gross loss for the three months ended September 30, 2025, was $2,484,083, improving from a gross loss of $3,606,790 in the prior year[12] - Net loss for the three months ended September 30, 2025, was $6,508,053, compared to a net loss of $4,647,871 for the same period in 2024, representing a 39.9% increase in losses[12] - Basic and diluted net loss per share for the three months ended September 30, 2025, was $0.15, compared to $0.11 for the same period in 2024[12] - The Company reported a net loss attributable to stockholders of $6,508,053 for the three months ended September 30, 2025, compared to a net loss of $4,647,871 for the same period in 2024[111] - The Company recorded total other income of $738,592 for the three months ended September 30, 2025, down from $1,205,665 for the same period in 2024[106] Assets and Liabilities - Total current assets decreased to $29,213,192 as of September 30, 2025, down from $37,665,911 as of June 30, 2025, a decline of 22.5%[9] - Total liabilities decreased to $133,955,680 as of September 30, 2025, from $145,124,257 as of June 30, 2025, a reduction of 7.7%[10] - Cash and cash equivalents as of September 30, 2025, were $6,456,745, down from $9,190,277 as of June 30, 2025, a decrease of 29.9%[9] - Total stockholders' equity decreased to $22,381,885 as of September 30, 2025, from $25,089,938 as of June 30, 2025, a decline of 10.8%[10] - The Company incurred a net current liability of $11.1 million[21] - Accounts payable decreased to $7,588,236 as of September 30, 2025, down from $9,005,727 as of June 30, 2025, representing a reduction of approximately 15.7%[82] Cash Flow and Financing - The company reported a net cash used in operating activities of $1,929,402 for the three months ended September 30, 2025, compared to $3,612,112 for the same period in 2024, indicating improved cash flow management[15] - The company is in discussions with financial institutions to secure additional credit facilities to strengthen working capital[21] - The company has an unused line of credit of $4.39 million with Eastwest Bank as of September 30, 2025[152] - The Company is exploring additional financing options to strengthen working capital amid a net current liability of $11.1 million as of September 30, 2025[137] Revenue Breakdown - Transportation services revenue was $32,075,786, up from $28,490,756, while warehousing services revenue increased to $17,380,018 from $13,973,694[44] - Revenue from transportation services increased by $3.6 million, or 12.6%, while revenue from warehousing services rose by $3.4 million, or 24.4% during the same period[131] - Contract liabilities transferred to revenue for the three months ended September 30, 2025, were $862,145, compared to $276,463 in 2024[45] Operational Insights - The company operates as a third-party logistics provider, focusing on multi-modal transportation and logistics services primarily in the United States[17] - The company is executing a cost optimization plan, including delaying non-essential capital expenditures and reducing third-party service costs to improve cash flow[21] - The company plans to optimize warehouse utilization and develop higher-margin logistics solutions to improve profitability[21] - The company operated ten warehouses with a total gross floor area of approximately 3,905,020 square feet as of September 30, 2025[126] - Active customer base increased from 505 to 607 between June 30, 2025, and September 30, 2025[126] Asset Management - As of September 30, 2025, accounts receivable from third parties totaled $18,679,435, down from $22,713,346 as of June 30, 2025, representing a decrease of approximately 17.9%[69] - The total allowance for credit loss remained unchanged at $594,869 for both September 30, 2025, and June 30, 2025[70] - Property and equipment, net decreased to $10,646,576 as of September 30, 2025, from $11,259,820 as of June 30, 2025, reflecting a decline of approximately 5.4%[71] - Intangible assets, net decreased to $43,032 as of September 30, 2025, from $54,627 as of June 30, 2025, a decline of approximately 21.3%[72] Shareholder Information - The Company issued 434,879 shares of common stock at US$1.72 per share in March 2025, raising US$750,000 as part of the SEPA loan conversion[92] - The Company issued 3,192,145 shares for Investor Notices pursuant to the Standby Equity Purchase Agreement, increasing total shares to 45,443,079 as of September 30, 2025[14] - The weighted average number of shares of common stock outstanding was 42,462,207 for the three months ended September 30, 2025, compared to 41,634,000 for the same period in 2024[111] Lease and Rental Expenses - Operating lease expenses increased to US$9,177,790 for the three months ended September 30, 2025, compared to US$8,111,425 for the same period in 2024, reflecting a year-over-year increase of approximately 13.1%[79] - The Company recognized lease income of US$81,900 during the three months ended September 30, 2025, compared to US$727,498 in the same period of 2024, indicating a significant decline in lease income[77] - Total minimum lease payments for operating leases amount to US$163,148,107, with a total lease liability of US$123,603,076 as of September 30, 2025[80] Miscellaneous - The Company adopted ASU 2023-07 on January 1, 2024, which did not have a material impact on its consolidated financial statements[66] - The Company entered into a non-binding Letter of Intent to acquire 100% of Leopard Transnational Inc., a logistics provider with approximately 360,000 square feet of U.S. warehouse space[118] - The Company recorded depreciation expenses of $682,244 for the three months ended September 30, 2025, compared to $578,432 for the same period in 2024, indicating an increase of approximately 18%[71]

Core Insights - Armlogi Holding Corp. has fully repaid its outstanding debt obligations to YA II PN, Ltd., totaling approximately $10.0 million, as part of a Standby Equity Purchase Agreement [1][2] - The repayment signifies a commitment to deleveraging and enhances the company's financial flexibility, positioning it for growth in the cross-border e-commerce sector [2][3] Company Overview - Armlogi Holding Corp. is a U.S.-based warehousing and logistics service provider, specializing in supply-chain solutions, including warehouse management and order fulfillment [4] - The company operates ten warehouses covering over 3.5 million square feet, catering to cross-border e-commerce merchants looking to establish overseas warehouses in the U.S. market [4] - Armlogi is a member of the Russell Microcap® Index, indicating its presence in the micro-cap segment of the market [4]

Financial Data and Key Metrics Changes - For fiscal year 2025, total revenue reached $190.4 million, an increase of 14% compared to $167 million in fiscal year 2024, driven by demand for transportation and warehousing services [7] - Cost of sales increased by 29.9% to $193.4 million, primarily due to higher freight costs and operational expenses, resulting in a gross profit loss of $3 million [8] - General and administrative expenses totaled $14.7 million, a 47.2% increase from the previous year, leading to a net loss of $15.3 million or $0.37 per share [8] Business Line Data and Key Metrics Changes - The active customer base increased more than four-fold to 505, reflecting the demand for comprehensive supply chain solutions [7] - The company operates 10 warehouses across approximately 3.9 million square feet, supporting cross-border e-commerce and domestic customers [5] Market Data and Key Metrics Changes - The company aims to diversify its customer mix beyond PRC-based clients, who accounted for around 84% of revenue in fiscal year 2025 [10] - Customer concentration decreased, with one customer accounting for about 10% of revenue, down from two customers representing 20% and 12% in fiscal year 2024 [13] Company Strategy and Development Direction - The company is focused on optimizing operations, leveraging technology for efficiency, and expanding geographic coverage [9][10] - The strategy includes enhancing the Armlogi Order Management System to attract more clients and improve service delivery [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing future opportunities in the cross-border e-commerce market despite operational challenges and cost pressures [5] - Gradual improvement in margins is expected as the operational footprint reaches fuller utilization and technology investments take effect [11] Other Important Information - The company maintains high standards, including ISO 9001 compliance and an average inventory accuracy rate of 99.64% [5] - The balance sheet at year-end included $13.6 million in cash and equivalents, positioning the company for future growth [8] Q&A Session Summary Question: What are the main drivers of revenue growth for fiscal year 2026? - Revenue growth is expected to be driven by demand for warehousing and logistics services, particularly from cross-border e-commerce merchants and an expanding U.S.-based customer base [10] Question: When does management expect to achieve consistent profitability and positive free cash flow? - Management is implementing measures for operational optimization and cost management, with gradual improvement in margins anticipated in the coming fiscal years [11] Question: How concentrated is revenue among your largest customers, and how does Armlogi plan to differentiate itself? - Customer concentration has decreased, and the company plans to differentiate through high-quality services, advanced technology, and a focus on bulky item handling [13][14]

Financial Data and Key Metrics Changes - Total revenue for fiscal year 2025 reached $190.4 million, an increase of 14% compared to $167 million in fiscal year 2024, driven by demand for transportation and warehousing services [8] - Cost of sales increased by 29.9% to $193.4 million, primarily due to higher freight costs and operational expenses, resulting in a gross profit loss of $3 million [9] - General and administrative expenses totaled $14.7 million, a 47.2% increase from the previous year, leading to a net loss of $15.3 million or $0.37 per share [9] Business Line Data and Key Metrics Changes - The active customer base increased more than four-fold to 505, reflecting the demand for comprehensive supply chain solutions [8] - The company operates 10 warehouses across approximately 3.9 million square feet, supporting cross-border e-commerce and domestic customers [5] Market Data and Key Metrics Changes - The company aims to diversify its customer mix beyond PRC-based clients, who accounted for around 84% of revenue in fiscal year 2025 [11] - The focus on expanding geographic coverage and enhancing technology platforms is expected to attract more clients [11] Company Strategy and Development Direction - The company is committed to optimizing operations and leveraging technology to drive efficiency and cost management [10] - A focus on bulky item handling and a one-stop solution for cross-border e-commerce positions the company uniquely in the market [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledges operational challenges and cost pressures but remains confident in the company's growth potential due to its expanding infrastructure and customer base [5] - Gradual improvement in margins is anticipated as the operational footprint reaches fuller utilization and technology investments take effect [13] Other Important Information - The company maintains high standards, including ISO 9001 compliance and an average inventory accuracy rate of 99.64% [5] - The balance sheet shows $13.6 million in cash, cash equivalents, and restricted cash, indicating a solid financial position [9] Q&A Session Summary Question: What are the main drivers of revenue growth for fiscal year 2026? - Revenue growth is expected to be driven by demand for warehousing and logistics services, particularly from cross-border e-commerce merchants and an expanding U.S.-based customer base [11] Question: When does management expect to achieve consistent profitability and positive free cash flow? - Management is implementing measures for operational optimization and cost management, with gradual improvement in margins expected in the coming fiscal years [13] Question: How concentrated is revenue among the largest customers, and how does Armlogi plan to differentiate itself? - One customer accounted for around 10% of revenue in fiscal year 2025, down from previous years, reflecting efforts to diversify the customer base [14] - The company differentiates itself through high-quality services, advanced technology, and a focus on niche needs that larger competitors may overlook [15]

Financial Performance and Key Metrics - For fiscal year 2025, total revenue reached $190.4 million, an increase of 14% compared to $167 million in fiscal year 2024, driven by demand for transportation and warehousing services [7] - Cost of sales increased by 29.9% to $193.4 million, primarily due to higher freight costs and operational expansion [8] - The company reported a gross profit loss of $3 million and a net loss of $15.3 million, or $0.37 per share [8] Business Line Performance - The active customer base increased more than four-fold to 505, indicating strong demand for the company's services [7] - General and administrative expenses rose by 47.2% to $14.7 million, reflecting investments in support of growing operations [8] Market Data and Key Metrics - The company operates 10 warehouses across the U.S., covering approximately 3.9 million square feet, which positions it well for future opportunities in the cross-border e-commerce market [5][9] - The customer concentration decreased, with one customer accounting for around 10% of revenue, down from two customers representing 20% and 12% in the previous year [13] Company Strategy and Industry Competition - The company aims to diversify its customer base beyond PRC-based clients, who accounted for around 84% of revenue in fiscal year 2025 [10] - Competitive advantages include high-quality, ISO 9001 compliant services, 99.64% inventory accuracy, and advanced technology like the Armlogi Order Management System [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving gradual improvement in margins and consistent profitability through operational optimization and technology investments [11] - The company is focused on leveraging its expanded infrastructure and technology to drive efficiency and broaden cost management [9] Other Important Information - The company ended the fiscal year with a solid balance sheet, comprising $13.6 million in cash and equivalents [8] Q&A Session Summary Question: What are the main drivers of revenue growth for fiscal year 2026? - Revenue growth is expected to be driven by demand for warehousing and logistics services, particularly from cross-border e-commerce merchants and an expanding U.S.-based customer base [10] Question: When does management expect to achieve consistent profitability and positive free cash flow? - Management is implementing measures for operational optimization and cost management, with gradual improvement anticipated in margins [11] Question: How concentrated is revenue among the largest customers, and how does Armlogi plan to differentiate itself? - Customer concentration has decreased, and the company plans to differentiate through high-quality services, advanced technology, and a focus on bulky item handling [13][14]

Financial Data and Key Metrics Changes - For fiscal year 2025, total revenue reached $190.4 million, an increase of 14% compared to $167 million in fiscal year 2024 [7][8] - Cost of sales increased by 29.9% to $193.4 million, primarily due to higher freight costs and operational expansion [8][9] - The company reported a net loss of $15.3 million, or $0.37 per share, compared to the previous year [9] Business Line Data and Key Metrics Changes - The growth in revenue was largely driven by increased demand for transportation and warehousing services, with a more than four-fold increase in the active customer base to 505 [8] - General and administrative expenses rose by 47.2% to $14.7 million, reflecting investments in support of growing operations [9] Market Data and Key Metrics Changes - The company operates 10 warehouses across the U.S., covering approximately 3.9 million square feet, which positions it well for future opportunities in the cross-border e-commerce market [5][10] - The customer base diversified, with one customer accounting for around 10% of revenue, down from two customers representing 20% and 12% in the previous year [15] Company Strategy and Development Direction - The company is focused on optimizing operations, leveraging technology for efficiency, and broadening cost management to achieve consistent profitability [9][13] - Future growth is anticipated to come from expanding geographic coverage and enhancing the technology platform, particularly the Armlogi Order Management System [11][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing future opportunities despite operational challenges and cost pressures [5] - Gradual improvement in margins is expected as the operational footprint reaches fuller utilization and technology investments take effect [13] Other Important Information - The company maintains high standards, including ISO 9001 compliance and an average inventory accuracy rate of 99.64% [5] - The focus on bulky item handling and a one-stop solution for cross-border e-commerce differentiates the company from larger competitors [16] Q&A Session Summary Question: What are the main drivers of revenue growth for fiscal year 2026? - Revenue growth is expected to be driven by demand for warehousing and logistics services, particularly from cross-border e-commerce merchants and an expanding U.S.-based customer base [11] Question: When does management expect to achieve consistent profitability and positive free cash flow? - Management is implementing measures for operational optimization and cost management, with gradual improvement in margins anticipated [13] Question: How concentrated is revenue among the largest customers? - One customer accounted for around 10% of revenue in fiscal year 2025, reflecting efforts to diversify the customer base [15]

[Executive Summary](index=1&type=section&id=Executive%20Summary) Armlogi Holding Corp. reported a 14% revenue increase to $190.4 million for FY2025, but operational challenges led to a $3.0 million gross loss and $15.3 million net loss, with future focus on optimization - Armlogi Holding Corp. announced financial results for the fiscal year ended June 30, 2025[2](index=2&type=chunk) - Total revenue increased by **14.0% to $190.4 million**, driven by continued demand for transportation and warehousing services[5](index=5&type=chunk) - The company reported a **gross loss of $3.0 million** and a **net loss of $15.3 million**, primarily due to increased costs from operational expansion and freight[5](index=5&type=chunk) - Future strategy focuses on operational optimization, technology-driven efficiency, and prudent cost management for long-term sustainable growth[6](index=6&type=chunk) [Company Information](index=2&type=section&id=Company%20Information) This section provides an overview of Armlogi Holding Corp.'s business, its forward-looking statements, and contact information for both the company and investor relations [About Armlogi Holding Corp.](index=2&type=section&id=About%20Armlogi%20Holding%20Corp.) Armlogi Holding Corp. is a U.S.-based warehousing and logistics service provider offering comprehensive supply-chain solutions, primarily for cross-border e-commerce merchants, operating ten warehouses covering over 3.5 million square feet - Armlogi is a U.S.-based warehousing and logistics service provider offering comprehensive supply-chain solutions, including warehouse management and order fulfillment[8](index=8&type=chunk) - The Company caters to cross-border e-commerce merchants looking to establish overseas warehouses in the U.S. market[8](index=8&type=chunk) - Armlogi operates **ten warehouses** covering over **3.5 million square feet** and is a member of the Russell Microcap® Index[8](index=8&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section contains standard forward-looking statements based on expectations and projections about future events, advising caution due to inherent risks and uncertainties, with no obligation to update them - The press release contains forward-looking statements about future events, financial performance, and business prospects[9](index=9&type=chunk) - These statements are based on current expectations and projections but are subject to risks and uncertainties that may cause actual results to differ materially[9](index=9&type=chunk) - The company is not obligated to publicly update or revise any forward-looking statements[9](index=9&type=chunk) [Contact Information](index=2&type=section&id=Company%20Contact) Provides contact details for Armlogi Holding Corp. (info@armlogi.com) and Investor Relations (Matthew Abenante, Strategic Investor Relations, LLC) - Company contact email: **info@armlogi.com**[10](index=10&type=chunk) - Investor Relations contact: **Matthew Abenante**, President, Strategic Investor Relations, LLC, Tel: **347-947-2093**, Email: **matthew@strategic-ir.com**[10](index=10&type=chunk) [Fiscal Year 2025 Financial Performance](index=1&type=section&id=Financial%20Results%20for%20the%20Fiscal%20Year%20Ended%20June%2030%2C%202025) This section details Armlogi's financial performance for fiscal year 2025, including management's perspective on key drivers and challenges, and a summary of the main financial figures [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Aidy Chou highlighted 14% revenue growth and a four-fold increase in active customers, but acknowledged significant operational challenges from warehouse expansion and rising freight costs, which pressured margins. Future focus includes operational optimization, technology-driven efficiency, and prudent cost management - Fiscal year 2025 demonstrated strong demand with **14% revenue growth** and a more than **four-fold increase in active customers**[4](index=4&type=chunk) - Operational challenges included substantial investments in labor and infrastructure for warehouse network expansion, pressuring near-term margins[4](index=4&type=chunk) - Increased freight costs from major carriers (FedEx, UPS) significantly impacted profitability, leading to carrier diversification[5](index=5&type=chunk) - The company's future strategy focuses on operational optimization, technology-driven efficiency, and prudent cost management for sustainable growth[6](index=6&type=chunk) [Key Financial Summary](index=1&type=section&id=Key%20Financial%20Summary) FY2025 revenue grew 14.0% to $190.4 million, but a 29.9% rise in cost of service led to a $3.0 million gross loss and a $15.3 million net loss, or $0.37 per share Fiscal Year 2025 Key Financial Highlights | Metric | FY2025 (US$) | FY2024 (US$) | Change (US$) | Change (%) | | :-------------------------------- | :----------- | :----------- | :----------- | :--------- | | Total Revenue | 190,408,258 | 166,977,034 | 23,431,224 | 14.0% | | Cost of Service | 193,408,827 | 148,894,227 | 44,514,600 | 29.9% | | Gross (Loss) Profit | (3,000,569) | 18,082,807 | (21,083,376) | -116.6% | | Gross Margin | -1.6% | 10.8% | -12.4 pp | - | | General and Administrative Expenses | 14,675,543 | 9,967,792 | 4,707,751 | 47.2% | | Net (Loss) Income | (15,348,767) | 7,441,218 | (22,789,985) | -306.3% | | Basic & Diluted Net (Loss) Earnings Per Share | (0.37) | 0.19 | (0.56) | -294.7% | | Cash and Cash Equivalents and Restricted Cash (Year-End) | 13,577,827 | 9,950,384 | 3,627,443 | 36.4% | [Conference Call & Audio Webcast](index=2&type=section&id=Conference%20Call%20%26%20Audio%20Webcast) Armlogi's management team will host an earnings conference call and live audio webcast on September 25, 2025, at 1:30 p.m. Pacific Time to discuss financial results and operations, with specific dial-in and webcast access details provided - An earnings conference call will be held on **September 25, 2025**, at **1:30 p.m. Pacific Time** (4:30 p.m. Eastern Time)[6](index=6&type=chunk) - Access details include a phone number (**1-800-445-7795**, international **1-785-424-1699**) with conference ID **ARMLOGI**, and a live audio webcast link[7](index=7&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) This section presents the detailed consolidated financial statements for Armlogi Holding Corp. for the fiscal years ended June 30, 2025, and 2024, including the Balance Sheets, Statements of Operations and Comprehensive Income, and Statements of Cash Flows [Consolidated Balance Sheets](index=3&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, total assets increased slightly to $170.2 million, while total liabilities significantly rose to $145.1 million, driven by operating lease liabilities and convertible notes, leading to a decrease in stockholders' equity to $25.1 million Consolidated Balance Sheet Highlights (US$) | Metric | June 30, 2025 | June 30, 2024 | Change | | :-------------------------------- | :------------ | :------------ | :----- | | Total Assets | 170,214,195 | 167,034,856 | 3,179,339 | | Current Assets | 37,665,911 | 37,984,932 | (319,021) | | Non-Current Assets | 132,548,284 | 129,049,924 | 3,498,360 | | Total Liabilities | 145,124,257 | 127,796,151 | 17,328,106 | | Current Liabilities | 45,787,013 | 32,963,921 | 12,823,092 | | Non-Current Liabilities | 99,337,244 | 94,832,230 | 4,505,014 | | Total Stockholders' Equity | 25,089,938 | 39,238,705 | (14,148,767) | - Convertible notes of **$5.29 million** were recorded as current liabilities in FY2025[12](index=12&type=chunk) - Operating lease liabilities (current and non-current) increased significantly, reflecting expanded operational footprint[12](index=12&type=chunk) [Consolidated Statements of Operations and Comprehensive Income](index=4&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20INCOME) For FY2025, revenue increased by 14.0% to $190.4 million, but a 29.9% surge in cost of service resulted in a $3.0 million gross loss and a $15.3 million net loss, or $0.37 per share, a significant decline from the prior year Consolidated Statements of Operations Highlights (US$) | Metric | FY2025 | FY2024 | Change | Change (%) | | :-------------------------------- | :----------- | :----------- | :----------- | :--------- | | Revenue | 190,408,258 | 166,977,034 | 23,431,224 | 14.0% | | Costs of Service | 193,408,827 | 148,894,227 | 44,514,600 | 29.9% | | Gross (Loss) Profit | (3,000,569) | 18,082,807 | (21,083,376) | -116.6% | | General and Administrative | 14,675,543 | 9,967,792 | 4,707,751 | 47.2% | | (Loss) Income from Operations | (17,676,112) | 8,115,015 | (25,791,127) | -317.8% | | Net (Loss) Income | (15,348,767) | 7,441,218 | (22,789,985) | -306.3% | | Basic & Diluted Net (Loss) Earnings Per Share | (0.37) | 0.19 | (0.56) | -294.7% | - The company recognized a **loss on debt extinguishment of $1.19 million** in FY2025[15](index=15&type=chunk) - Total income tax shifted from an expense of **$2.95 million** in FY2024 to a recovery of **$1.56 million** in FY2025[15](index=15&type=chunk) [Consolidated Statements of Cash Flows](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Net cash from operating activities decreased to $1.46 million in FY2025 due to net loss. Net cash used in investing activities decreased to $1.81 million, while net cash from financing activities also decreased to $3.97 million, resulting in an overall increase in cash and cash equivalents to $13.58 million Consolidated Statements of Cash Flows Highlights (US$) | Metric | FY2025 | FY2024 | Change | | :-------------------------------- | :----------- | :----------- | :----------- | | Net Cash Provided from Operating Activities | 1,460,845 | 2,992,889 | (1,532,044) | | Net Cash Used in Investing Activities | (1,805,223) | (7,437,605) | 5,632,382 | | Net Cash Provided by Financing Activities | 3,971,821 | 7,837,001 | (3,865,180) | | Net Increase in Cash and Cash Equivalents and Restricted Cash | 3,627,443 | 3,392,285 | 235,158 | | Cash and Cash Equivalents and Restricted Cash, End of Year | 13,577,827 | 9,950,384 | 3,627,443 | - Non-cash transactions included **$27.86 million** in right-of-use assets acquired for operating lease liabilities and **$0.82 million** for finance lease liabilities in FY2025[18](index=18&type=chunk) - Repayments of SEPA (Share Exchange Purchase Agreement) totaled **$3.26 million** in FY2025[17](index=17&type=chunk)

Documents Incorporated by Reference Portions of the 2025 Annual Meeting of Stockholders proxy statement are incorporated by reference in Part III of this Annual Report on Form 10-K [Portions of Proxy Statement](index=2&type=section&id=Portions%20of%20Proxy%20Statement) Portions of the registrant's proxy statement for its 2025 Annual Meeting of Stockholders are incorporated by reference in Part III of this Annual Report on Form 10-K - **Portions of the 2025 Annual Meeting of Stockholders proxy statement are incorporated by reference in Part III of this 10-K**[9](index=9&type=chunk) Part I This section details the company's business operations, competitive strengths, growth strategies, organizational structure, customer and supplier relationships, warehousing network, services, technology, employees, competition, governmental regulations, and associated risk factors [Item 1. Business](index=4&type=section&id=Item%201.%20Business) Armlogi Holding Corp. is a rapidly expanding U.S.-based warehousing and logistics service provider offering comprehensive supply-chain solutions, primarily serving cross-border e-commerce merchants from China, operating ten warehouses across the U.S. with **3.9 million square feet**, and reported a **net loss** in FY2025, with **84% of revenue** derived from PRC-based customers - **Armlogi Holding Corp. is a fast-growing U.S.-based warehousing and logistics service provider offering comprehensive supply-chain solutions, including warehouse management and order fulfillment**[13](index=13&type=chunk) - The company operates **ten warehouses** across the U.S. with an aggregate gross floor area of approximately **3,905,020 square feet**, equipped for processing bulky items[15](index=15&type=chunk) - A significant portion of revenue is generated from PRC-based customers, accounting for approximately **84% in FY2025** and **96% in FY2024**[16](index=16&type=chunk) Key Financial Highlights (FY2025 vs FY2024) | Metric | FY2025 (US$ million) | FY2024 (US$ million) | Change (US$ million) | Change (%) | | :----- | :------------------- | :------------------- | :------------------- | :--------- | | Total Revenue | 190.4 | 167.0 | 23.4 | 14.0% | | Net Income (Loss) | (15.3) | 7.4 | (22.7) | -306.8% | [Overview](index=4&type=section&id=Overview) The company provides comprehensive warehousing and logistics services to cross-border e-commerce merchants and U.S.-based commercial customers - The company provides **one-stop warehousing and logistics services** to cross-border e-commerce merchants outside the U.S. who seek to sell in the U.S. market, as well as U.S.-based commercial customers[15](index=15&type=chunk) - Services include customs brokerage, transportation to U.S. warehouses, and warehouse management and order fulfillment (storage, packing, labeling, kitting, inventory management, third-party distribution, and value-added services)[15](index=15&type=chunk) Active Customer Base | Date | Active Customers | | :--------- | :--------------- | | June 30, 2025 | 505 | | June 30, 2024 | 105 | [Our Competitive Strengths](index=4&type=section&id=Our%20Competitive%20Strengths) The company leverages quality services, competitive pricing, proprietary technology, and an experienced management team for competitive advantage - The company offers **quality warehousing and logistics services** meeting ISO 9001 standards, with **high inventory accuracy (99.64% in FY2025)** and 24/7 customer support, particularly suitable for bulky e-commerce items[17](index=17&type=chunk)[18](index=18&type=chunk) - **Reasonable service and delivery fees** are achieved due to large processing volumes, enabling significant discounts from third-party logistics providers like FedEx and UPS[19](index=19&type=chunk) - **Efficient and low-error warehousing services** are provided by leveraging proprietary technology, including the Armlogi Order Management System (OMS), built on Amazon Web Services[20](index=20&type=chunk)[22](index=22&type=chunk) - An **experienced management team** with decades of supply chain, warehousing, and logistics industry expertise drives strategic planning and day-to-day operations[23](index=23&type=chunk) [Our Growth Strategies](index=7&type=section&id=Our%20Growth%20Strategies) The company plans to expand its customer base and geographic footprint, enhance supply chain efficiency, invest in technology, and pursue strategic acquisitions - Plans to expand and diversify the customer base beyond China into Southeast Asia (Vietnam, Thailand, Indonesia, Philippines) and Mexico, and to grow geographic footprint in key U.S. markets (California, Georgia, Tennessee, Florida, Illinois, Arizona) by leasing additional warehouse space[24](index=24&type=chunk) - Enhance supply chain efficiency by expanding solutions, including international ocean freight services launched in January 2023, aiming for a comprehensive factory-to-consumer doorstep solution[25](index=25&type=chunk) - Further invest in supply chain technologies like AI, data analytics, and optimization algorithms to improve efficiency, transparency, and sustainability, and to offer smart supply chain solutions[26](index=26&type=chunk) - Pursue additional strategic and financially attractive acquisitions to expand the warehousing and logistics business and achieve synergies[27](index=27&type=chunk) [Organizational Structure](index=8&type=section&id=Organizational%20Structure) Armlogi Holding Corp. was incorporated in Nevada in 2022, acquired Armstrong Logistic Inc., and completed its IPO in May 2024 - **Armlogi Holding Corp. was incorporated in Nevada on September 27, 2022**, and acquired Armstrong Logistic Inc. on October 7, 2022, as part of an IPO reorganization[29](index=29&type=chunk)[31](index=31&type=chunk) - Armstrong Logistic Inc. holds **100% equity interests** in several subsidiaries: Armlogi Truck Dispatching LLC, AndTech Trucking LLC, Amlogi Trucking LLC, Armlogi Group LLC, and AndTech Customs Broker LLC[28](index=28&type=chunk) - The company closed its IPO on **May 15, 2024**, issuing **1,600,000 shares of common stock** at **$5.00 per share**, trading on Nasdaq under 'BTOC'[29](index=29&type=chunk) [Our Business Model](index=8&type=section&id=Our%20Business%20Model) The company's business model focuses on providing integrated warehousing and logistics services to cross-border e-commerce and domestic customers - The business model involves providing a package of warehousing and logistics services to international cross-border e-commerce merchants (primarily from PRC) and domestic customers[30](index=30&type=chunk) - Revenue is recognized from three main sources: Transportation Services (reselling third-party carrier services), Warehousing Services (inventory management, storage), and Other Services (primarily customs brokerage)[30](index=30&type=chunk)[34](index=34&type=chunk) - Service fees vary based on factors like load type, weight, volume, storage time, and delivery distance, with transportation fees typically ranging from **$5 to $75** and warehousing fees from **$3 to $500**[30](index=30&type=chunk)[34](index=34&type=chunk) [Our Customers](index=9&type=section&id=Our%20Customers) The company primarily serves overseas cross-border e-commerce merchants from the PRC, with a growing U.S. domestic customer base - Primary customer types are overseas cross-border e-commerce merchants (mainly from PRC) selling in the U.S. market and U.S. domestic e-commerce merchants[32](index=32&type=chunk) Revenue Contribution by Customer Type | Customer Type | FY2025 Revenue (%) | FY2024 Revenue (%) | | :------------ | :----------------- | :----------------- | | Overseas (PRC) | 84% | 96% | | U.S. Domestic | 16% | 4% | Largest Customers by Revenue Contribution | Fiscal Year | Customer 1 (Revenue %) | Customer 2 (Revenue %) | Customer 3 (Revenue %) | Customer 4 (Revenue %) | | :---------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | FY2025 | Goldensee Ltd. (22.0%) | Kimberly Tenneco Inc (10.8%) | N/A | N/A | | FY2024 | Aukey International Ltd. (11.7%) | Western Post (HK) Ltd. (11.7%) | Goldensee Ltd. (10.9%) | Union Grand Imp. & Exp. Co., Ltd. (10.0%) | [Our Suppliers](index=10&type=section&id=Our%20Suppliers) Key suppliers include warehouse landlords and third-party logistics providers like FedEx and UPS - Key suppliers include warehouse landlords and third-party logistics service providers like FedEx and UPS for transportation and delivery[35](index=35&type=chunk) Supplier Concentration (Percentage of Total Purchases) | Supplier | FY2025 (%) | FY2024 (%) | | :------- | :--------- | :--------- | | FedEx | 9% | 50% | | UPS | 15.2% | N/A | | MEGA CORP LOGISTIC LLC | 10% | N/A | - Armstrong Logistic has a service agreement with FedEx since **April 10, 2020**, for various transportation services, with potential for earned discounts based on shipping activity[36](index=36&type=chunk) [Our Warehousing Network](index=10&type=section&id=Our%20Warehousing%20Network) The company operates ten strategically located leased warehouses across five U.S. states, equipped with automated systems and advanced security - The company operates **ten leased warehouses** in **five U.S. states** (California, Georgia, Texas, New Jersey, Illinois), strategically located near major ports[37](index=37&type=chunk) - Warehouses have an aggregate gross floor area of **3,905,020 square feet** and are equipped with automated sorting systems, forklifts, pallets, trays for bulky items, and advanced security/scanning systems[37](index=37&type=chunk) - Data analytics are utilized for optimal inventory distribution, SKU-level real-time monitoring, live

Core Insights - Armlogi Holding Corp. reported a 14% increase in revenue for the fiscal year ended June 30, 2025, reaching approximately $190.4 million, up from $167.0 million in the previous year [6] - The company faced significant operational challenges, including a more than four-fold increase in its active customer base, rising costs due to freight, rental, labor, and warehouse expenses, leading to a gross loss of $3.0 million [3][6] - Despite these challenges, the company remains committed to its growth strategy, focusing on operational optimization and technology-driven efficiency for long-term sustainable growth [3] Financial Performance - Total revenue increased by approximately $23.4 million, or 14.0%, to $190.4 million for the fiscal year ended June 30, 2025, compared to $167.0 million for the fiscal year ended June 30, 2024 [6] - Cost of service rose by $44.5 million, or 29.9%, primarily due to higher freight, rental, labor, and warehouse expenses associated with the expansion of operations [6] - Gross profit declined to a loss of $3.0 million for the fiscal year ended June 30, 2025, compared to a gross profit of $18.1 million in the previous fiscal year, with the gross margin falling to -1.6% from 10.8% [6] Operational Challenges - The company experienced significant operational challenges while expanding its warehouse network and dealing with a difficult freight cost environment [3] - Increases in third-party carrier costs, particularly from major suppliers like FedEx and UPS, significantly impacted the profitability of transportation services [6] - General and administrative expenses totaled $14.7 million, representing a 47.2% increase from $10.0 million in the prior fiscal year, primarily due to investments in business growth [6] Future Outlook - The management believes that the expanded infrastructure positions the company well for future opportunities despite current challenges [3] - The focus remains on operational optimization, technology-driven efficiency, and prudent cost management to ensure long-term sustainable growth [3] Company Overview - Armlogi Holding Corp. is a U.S.-based warehousing and logistics service provider, offering a comprehensive package of supply-chain solutions, including warehouse management and order fulfillment [7] - The company caters to cross-border e-commerce merchants looking to establish overseas warehouses in the U.S. market, operating ten warehouses covering over three and a half million square feet [7]