[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]

Core Viewpoint - Armlogi Holding Corp. is set to release its financial results for the fiscal year ending June 30, 2025, on September 25, 2025, before market opening [1] Company Overview - Armlogi Holding Corp. is a U.S.-based warehousing and logistics service provider located in Walnut, CA, offering a comprehensive package of supply-chain solutions, including warehouse management and order fulfillment [4] - The company caters to cross-border e-commerce merchants aiming to establish overseas warehouses in the U.S. market [4] - Armlogi operates ten warehouses covering over 3.5 million square feet, providing one-stop warehousing and logistics services [4] - The warehouses are equipped to handle and store large and bulky items, enhancing operational capabilities [4] - Armlogi is a member of the Russell Microcap® Index, indicating its position in the market [4] Earnings Conference Call - The management team will hold an earnings conference call on September 25, 2025, at 1:30 P.M. Pacific Time to discuss financial results and company operations [2] - Investors can submit written questions by September 22, 2025, via email [2] Access Information - To access the conference call, participants should dial the provided phone numbers approximately 10 minutes before the call starts, using the conference ID: ARMLOGI [3]

Core Insights - Armlogi Holding Corp. has appointed two new independent directors, Maxwell E. Lin and David Chiu, to its Board following the resignation of Florence Ng and Kwong Sang Liu [1][2][3] Group 1: Board Changes - Florence Ng and Kwong Sang Liu resigned from their positions as directors on August 31, 2025, citing personal reasons without any disagreement with the company [2] - The Board approved the appointments of Maxwell E. Lin and David Chiu as independent directors on the same day [3] Group 2: New Directors' Backgrounds - Maxwell E. Lin has over 30 years of legal experience, holding degrees in law and business administration, and has been the founder and CEO of his law firm since 1989, focusing on business litigation and corporate law [4] - David Chiu has significant operational and international business expertise, with a background in economics and business management, and has been the General Manager of Aonegroup Inc. since 2022, overseeing import/export activities [5] Group 3: Company Overview - Armlogi Holding Corp. is a U.S.-based warehousing and logistics service provider, specializing in supply-chain solutions for cross-border e-commerce merchants [7] - The company operates ten warehouses covering over 3.5 million square feet, equipped for handling large and bulky items, and is a member of the Russell Microcap® Index [7]

Core Insights - Armlogi Holding Corp. has been approved as a fulfillment partner in TikTok Shop's warehouse program, enhancing its role in the e-commerce logistics sector [1][5] - The company has allocated over 1,300,000 square feet of operational capacity across multiple states for TikTok-related fulfillment activities, with potential for further expansion [2] - Armlogi's warehouses support various product categories, enabling faster delivery times for TikTok Shop sellers and compliance with service level agreements [3][4] Operational Efficiency - The integration with TikTok Shop allows for real-time inventory syncing, order flow automation, and shipment tracking, improving operational efficiency for merchants [4] - The initiative is expected to create over 50 warehouse jobs initially, with the potential for growth as order volumes increase, especially during peak seasons [4] Company Overview - Armlogi Holding Corp. is based in Walnut, CA, and offers a comprehensive range of supply-chain solutions, catering to cross-border e-commerce merchants [6] - The company operates ten warehouses covering over 3.5 million square feet, equipped for handling large and bulky items, and is a member of the Russell Microcap® Index [6]

Company Overview - Armlogi Holding Corp. is a U.S.-based warehousing and logistics service provider specializing in supply-chain solutions related to warehouse management and order fulfillment [8][9] - The company operates over 3.5 million square feet of warehouse space across ten facilities, catering primarily to cross-border e-commerce merchants [9] Industry Positioning - Armlogi has been added to the Russell Microcap® Index, effective June 30, 2025, which signifies its growth and strategic positioning within the U.S. logistics sector [1][3] - Membership in the Russell Microcap® Index enhances visibility among institutional investors and reflects market recognition of Armlogi's expanding footprint in cross-border e-commerce logistics [3] Market Impact - The Russell indexes serve as benchmarks for approximately $10.6 trillion in assets, indicating the significance of Armlogi's inclusion in terms of attracting broader investment interest [3] - FTSE Russell, the index provider, emphasizes the importance of accurately representing the market through its indexes, which adapt to the evolving U.S. economy [4] Future Outlook - The inclusion in the Russell Microcap Index is viewed as a critical step in Armlogi's evolution as a public company, supporting its long-term capital allocation strategies [3] - The transition to a semi-annual reconstitution frequency for Russell indexes starting in 2026 aims to maintain their relevance and accuracy in representing the market [4]

Financial Data and Key Metrics Changes - Total revenue for the third quarter reached $45.8 million, an increase of 19.3% compared to the same period last year [10] - For the nine-month period, total revenue grew 14.6% to $139.5 million, indicating sustained demand for logistics solutions [11] - Cost of sales for the third quarter was $45.6 million, leading to a gross profit of $280,000, while the nine-month cost of sales was $122.3 million, resulting in a gross loss of $2.85 million [10][12] - General and administrative expenses for the third quarter were $4.47 million, contributing to a loss from operations of $12.19 million [11] - The net loss for the third quarter was $3.76 million, or $0.09 per share, while the nine-month net loss was $10.06 million, or $0.24 per share [11][12] Business Line Data and Key Metrics Changes - The company continues to see revenue growth driven by the demand for comprehensive logistics solutions, particularly in cross-border e-commerce [6][18] - Operational investments and market-related cost pressures have impacted profitability, but the company is focused on optimizing its expanded warehouse footprint [7][10] Market Data and Key Metrics Changes - The recent U.S.-China trade talks have resulted in a substantial reduction in tariff fees, which is expected to positively impact the logistics sector and the company's margins [6][8] - The favorable trade environment is anticipated to create a more variable operating landscape for the logistics sector [13][14] Company Strategy and Development Direction - The company is committed to leveraging technology and providing comprehensive supply chain solutions while navigating the evolving economic landscape [9] - Strategic initiatives are in place to address margin challenges and improve profitability, particularly in light of the favorable trade environment [12][14] - The focus remains on sustainable growth and enhancing service capabilities to strengthen market position [14][23] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the future, highlighting the positive developments in U.S.-China trade relations and their potential to alleviate cost pressures [13][14] - The company is proactively managing costs and enhancing service delivery to navigate the dynamic market environment [13][14] Other Important Information - The company is managing its balance sheet prudently and focusing on initiatives to improve profitability moving forward [12] - The management team remains confident in their strategic positioning and ability to capture future growth opportunities [22][23] Q&A Session Summary Question: Despite cost pressures, what are the key drivers behind sustained demand for ArmaLagi services and how is the company working to improve profitability? - The sustained revenue growth of 19.3% for the quarter is driven by the essential nature of logistics solutions and strong client relationships. The company is focused on optimizing operations and managing costs, with expectations that reduced tariff fees will alleviate external cost pressures [18] Question: How is ArmaLagi positioned to benefit from the improved trade environment? - The company anticipates benefits from reduced tariff fees, which can lower costs for customers and stimulate higher trade volumes. This also reduces uncertainty, leading to more stable demand for services [20][21] Question: How does ArmaLagi view its long-term strategic positioning and ability to capture future growth opportunities? - The company is confident in its long-term strategic positioning, with a robust infrastructure and a comprehensive suite of services. The focus remains on leveraging strengths and making prudent investments to support sustainable growth [22][23]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 reached $45.8 million, an increase of 19.3% compared to the same period last year [11] - For the nine-month period, total revenue grew 14.6% to $139.5 million, reflecting sustained demand for logistics solutions [12] - Cost of sales for Q3 was $45.6 million, leading to a gross profit of $280,000, while the nine-month cost of sales was $122.3 million, resulting in a gross loss of $2.85 million [11][13] - The net loss for Q3 was $3.76 million, or $0.09 per share, and for the nine-month period, the net loss was $10.06 million, or $0.24 per share [12][13] Business Line Data and Key Metrics Changes - The company continues to face operational investments and market-related cost pressures that have impacted profitability, despite revenue growth [7] - Efforts are being made to optimize the expanded warehouse footprint and enhance operational efficiency across all service lines [7] Market Data and Key Metrics Changes - The recent U.S.-China trade talks have resulted in a substantial reduction in tariff fees, which is expected to positively impact the logistics sector and the company's margins [6][8] - The favorable trade environment is anticipated to alleviate some cost pressures and create a more variable operating landscape for the logistics sector [14][15] Company Strategy and Development Direction - The company is committed to leveraging technology and providing comprehensive supply chain solutions while navigating the evolving economic landscape [10] - Strategic initiatives are focused on optimizing operations, managing costs, and enhancing service delivery to improve profitability [15][19] - The company aims to capitalize on emerging opportunities presented by the improved trade environment and is well-positioned with its extensive warehouse network [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the future, highlighting the positive developments in U.S.-China trade relations and their potential benefits for operations [14][15] - The company is focused on sustainable growth and improving profitability while managing the challenges posed by inflationary pressures and dynamic market conditions [14][15] Other Important Information - The company is actively implementing measures to improve efficiency and profitability, anticipating that recent trade developments will contribute to alleviating cost pressures [11][12] Q&A Session Summary Question: Despite cost pressures, what are the key drivers behind sustained demand for ArmaLagi services and how is the company working to improve profitability? - The sustained revenue growth of 19.3% for the quarter is driven by the essential nature of logistics solutions and strong client relationships, with a focus on optimizing operations and managing costs to improve profitability [19] Question: How is ArmaLagi positioned to benefit from the improved trade environment? - The company anticipates benefits from reduced tariff fees, which can lower costs for customers, stimulate higher trade volumes, and ease cost pressures in the supply chain [21][22] Question: How does ArmaLagi view its long-term strategic positioning and ability to capture future growth opportunities? - The company is confident in its long-term strategic positioning, leveraging its infrastructure and technology to navigate the evolving landscape and capitalize on growth opportunities [23][24]

Financial Highlights [Third Quarter Fiscal 2025 Results (Three Months Ended March 31, 2025)](index=1&type=section&id=Financial%20Results%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202025) Revenue grew 19.3% in Q3 FY2025, but a significant cost surge led to a gross margin collapse and a net loss of $3.76 million Q3 FY2025 vs. Q3 FY2024 Financial Performance | Financial Metric | Q3 FY2025 (ended Mar 31, 2025) | Q3 FY2024 (ended Mar 31, 2024) | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $45.8 million | $38.4 million | +19.3% | | **Costs of Sales** | $45.6 million | $35.1 million | +29.8% | | **Gross Profit** | $0.28 million | $3.32 million | -91.6% | | **Gross Margin** | 0.6% | 8.6% | -8.0 p.p. | | **Loss from Operations** | ($4.19 million) | $0.05 million (Income) | - | | **Net (Loss) Income** | ($3.76 million) | $0.68 million | - | | **(Loss) Earnings Per Share** | ($0.09) | $0.02 | - | - The increase in costs of sales is primarily attributed to higher operational costs associated with service delivery and the expansion of the company's operational footprint[3](index=3&type=chunk) - General and administrative expenses rose from $3.27 million to **$4.47 million**, reflecting investments to support growing operations and strategic initiatives[5](index=5&type=chunk) [Nine-Month Fiscal 2025 Results (Nine Months Ended March 31, 2025)](index=2&type=section&id=Financial%20Results%20for%20the%20Nine%20Months%20Ended%20March%2031%2C%202025) For the nine months of FY2025, revenue rose 14.6%, but a 35.0% cost increase resulted in a gross loss and a significant net loss of $10.06 million Nine-Month FY2025 vs. FY2024 Financial Performance | Financial Metric | Nine Months FY2025 (ended Mar 31, 2025) | Nine Months FY2024 (ended Mar 31, 2024) | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $139.5 million | $121.7 million | +14.6% | | **Costs of Sales** | $142.3 million | $105.5 million | +35.0% | | **Gross (Loss) Profit** | ($2.85 million) | $16.23 million | - | | **Gross Margin** | (2.0)% | 13.3% | -15.3 p.p. | | **Loss from Operations** | ($13.65 million) | $8.13 million (Income) | - | | **Net (Loss) Income** | ($10.06 million) | $7.18 million | - | | **(Loss) Earnings Per Share** | ($0.24) | $0.18 | - | - The increase in costs of sales was driven by an expanded operational footprint, investments in service capabilities, and market pressures on resource costs[8](index=8&type=chunk) - The company is actively working on initiatives to address margin challenges and mitigate potential risks from U.S.-China trade developments[9](index=9&type=chunk) Management Commentary Management acknowledged strong revenue growth offset by cost pressures and expressed cautious optimism regarding recent U.S.-China tariff reductions - The company faces a challenge where **revenue growth is offset by significant operational investments** and market-related cost pressures impacting profitability[12](index=12&type=chunk) - Strategic priorities include **optimizing the expanded warehouse footprint** and enhancing operational efficiencies across all service lines[12](index=12&type=chunk) - A recent reduction in U.S.-China trade tariffs is viewed with **'cautious optimism'** as a potentially positive development for Armlogi and the broader logistics sector[12](index=12&type=chunk) Financial Statements [Condensed Consolidated Balance Sheets](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Total assets grew to $178.0 million while a larger increase in total liabilities to $147.9 million led to a decrease in stockholders' equity Balance Sheet Summary (as of March 31, 2025 vs. June 30, 2024) | Account | March 31, 2025 (Unaudited) | June 30, 2024 | | :--- | :--- | :--- | | **Cash** | $5.63 million | $7.89 million | | **Total Current Assets** | $39.75 million | $37.98 million | | **Total Assets** | $178.04 million | $167.03 million | | **Total Current Liabilities** | $42.80 million | $32.96 million | | **Total Liabilities** | $147.86 million | $127.80 million | | **Total Stockholders' Equity** | $30.18 million | $39.24 million | [Condensed Consolidated Statements of Operations](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20INCOME%20(LOSS)) The statements of operations show increased revenues offset by disproportionately higher costs, leading to operating losses for both the three and nine-month periods Statement of Operations Summary (Three Months Ended March 31) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | **Revenue** | $45,844,322 | $38,439,935 | | **Gross Profit** | $278,120 | $3,324,199 | | **Income (Loss) from Operations** | ($4,194,693) | $54,706 | | **Net Income (Loss)** | ($3,755,053) | $682,220 | Statement of Operations Summary (Nine Months Ended March 31) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | **Revenue** | $139,469,900 | $121,689,863 | | **Gross Profit (Loss)** | ($2,845,678) | $16,228,480 | | **Income (Loss) from Operations** | ($13,646,472) | $8,131,284 | | **Net Income (Loss)** | ($10,062,164) | $7,181,821 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) The company experienced a significant negative shift in operating cash flow, using $5.6 million, with financing activities providing the main source of cash Cash Flow Summary (Nine Months Ended March 31) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net Cash (Used in) Provided from Operating Activities** | ($5,641,142) | $3,954,416 | | **Net Cash Used in Investing Activities** | ($1,531,752) | ($4,680,643) | | **Net Cash Provided by Financing Activities** | $6,633,329 | $214,804 | | **Net Decrease in Cash and Restricted Cash** | ($539,565) | ($511,423) | | **Cash and Restricted Cash, End of Period** | $9,410,819 | $6,046,676 | Company Information & Events [About Armlogi Holding Corp.](index=3&type=section&id=About%20Armlogi%20Holding%20Corp.) Armlogi is a warehousing and logistics provider specializing in supply-chain solutions for cross-border e-commerce merchants in the U.S. market - Armlogi's core business is providing **one-stop warehousing and logistics services** for cross-border e-commerce merchants[15](index=15&type=chunk) - The company's infrastructure includes ten warehouses totaling over **3.5 million square feet**, with capabilities for handling large and bulky items[15](index=15&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20%26%20Audio%20Webcast) Management will host an earnings conference call and webcast on May 16 to discuss the financial results - An earnings conference call is scheduled for **Friday, May 16, at 8:00 am PT / 11:00 am ET** to discuss financial results[13](index=13&type=chunk) - Access details include a phone number (1-800-274-8461) with conference ID **'ARMLOGI'** and a webcast link[14](index=14&type=chunk)