Core Insights - Armlogi Holding Corp. has integrated Roadie, a logistics management and crowdsourced delivery platform, to enhance its operational capabilities in last-mile delivery solutions [1][2][3] 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 [1][4] - The company operates ten warehouses covering over 3.5 million square feet, catering to cross-border e-commerce merchants looking to establish a presence in the U.S. market [4] Operational Enhancements - The integration of Roadie allows Armlogi to leverage a network of over 200,000 independent drivers, covering more than 97% of the U.S., providing fast and flexible delivery options [2][3] - This collaboration is expected to enhance customer service and operational flexibility across various industries [2][3] Leadership Commentary - Aidy Chou, Chairman and CEO of Armlogi, emphasized the importance of this integration in expanding the company's ability to serve clients with faster and more flexible fulfillment solutions [3]

Armlogi Holding (BTOC) Q2 2025 Earnings Call February 14, 2025 11:00 AM ET Company Participants None - ExecutiveAidy Chou - Co-Founder, Chief Executive Officer, President, and Chairman of the Board of DirectorsSheng-Kai Hsu - Chief Financial Officer Operator Thank you for standing by and welcome to the Armalodie Holding Corp. Second Quarter and First Half of Fiscal Year twenty twenty five Earnings Call. Please note that today's call is being recorded. I'll now turn the meeting over to Matthew Abenanti, Inve ...

Core Viewpoint - Armlogi Holding Corp. reported significant revenue growth in Q2 and the first half of fiscal 2025, but faced challenges with increased costs and net losses due to operational expansion and higher shipping charges. Financial Results for the Three Months Ending December 31, 2024 - Total revenue increased by $9.1 million, or 21.8%, to $51.1 million compared to $42.0 million in Q2 2023 [5] - Revenue from transportation services rose by $6.2 million, or 20.8%, to $36.1 million, driven by new warehouse locations [5] - Warehousing services revenue increased by $3.1 million, or 25.7%, to $15.0 million, attributed to new warehouse acquisitions [5] - Costs of sales increased by $16.3 million, or 47.6%, to $50.7 million, primarily due to higher freight and lease expenses [5] - Gross profit margin decreased from 18.3% to 0.9% due to increased UPS surcharges and underutilization of new facilities [5] - Net loss was $1.7 million compared to net income of $3.7 million in Q2 2023, a decrease of $5.4 million [5] Financial Results for the Six Months Ending December 31, 2024 - Total revenue increased by $10.4 million, or 12.5%, to $93.6 million compared to $83.2 million in the same period in 2023 [9] - Transportation services revenue rose by $5.0 million, or 8.3%, to $64.6 million, supported by new warehouse locations [9] - Warehousing services revenue increased by $5.7 million, or 24.7%, to $29.0 million, driven by new acquisitions [9] - Costs of sales increased by $26.4 million, or 37.5%, to $96.7 million, influenced by rising freight and lease expenses [9] - Gross profit margin decreased from 15.5% to 3.3% due to increased surcharges and lower customer order volumes [9] - Net loss for the six months was $6.3 million compared to net income of $6.5 million in the same period in 2023, a decrease of $12.8 million [9] Operational Highlights - Expanded from 9 to 10 warehouses, increasing total warehouse space from 2 million to over 3.5 million square feet [4] - Major presence established in California, Georgia, and Illinois [4] - Incorporated electric forklifts in California warehouses as part of sustainability initiatives [8] - Enhanced warehouse management systems and upgraded technology to optimize operations [16] Liquidity and Financing - Cash and restricted cash balance as of December 31, 2024, was $7.4 million, down from $10.0 million as of June 30, 2024 [6] - Entered into a $50 million Standby Equity Purchase Agreement and $21 million in convertible promissory notes [10] Management Commentary - The CEO highlighted the commitment to long-term growth despite challenges from increased UPS surcharges and underutilization of new facilities [11] - Focus on optimizing operations and improving facility utilization rates is emphasized for future performance [11]

Revenue and Profitability - Revenue for the three months ended December 31, 2024, was $51,143,682, an increase of 21.7% compared to $42,004,083 for the same period in 2023[11]. - Total revenue for the six months ended December 31, 2024, was $93,625,578, representing an increase of 12.5% compared to $83,249,928 for the same period in 2023[37]. - Revenue from transportation services was $64,617,825, up 8.3% from $59,639,714 in the prior year[37]. - Warehousing services revenue increased by 24.7% to $28,984,064 from $23,234,845 year-over-year[37]. - Revenue for the three months ended December 31, 2024, increased by $9.1 million, or 21.8%, to $51.1 million compared to $42.0 million for the same period in 2023[120]. - The company experienced a net loss of $6.3 million for the six months ended December 31, 2024, compared to a net income of $6.5 million for the same period in 2023[116]. - The basic and diluted earnings per share for the six months ended December 31, 2024, were both $(0.15), down from $0.16 in 2023[99]. - Net loss for the three months ended December 31, 2024, was $(1.7) million, compared to a net income of $3.7 million for the same period in 2023, representing a decrease of $5.4 million[131]. Expenses and Costs - Gross profit for the six months ended December 31, 2024, was a loss of $3,123,798, compared to a profit of $12,904,281 for the same period in 2023[11]. - Operating costs and expenses for the three months ended December 31, 2024, were $2,659,156, a decrease from $2,919,547 for the same period in 2023[11]. - Total costs of sales for the six months ended December 31, 2024, increased by $26.4 million, or 37.5%, compared to the same period in 2023[121]. - Costs of sales for the three months ended December 31, 2024, increased by $16.3 million, or 47.6%, primarily due to higher freight expenses and increased lease and labor costs[120]. - General and administrative expenses for the six months ended December 31, 2024, were $6.3 million, compared to $4.8 million in 2023, reflecting an increase of approximately 30.9%[118]. - The Company recorded depreciation expenses of $637,990 for the three months ended December 31, 2024, compared to $485,906 for the same period in 2023, representing an increase of approximately 31.2%[66]. - The company recorded depreciation expenses of $1.2 million for the six months ended December 31, 2024, compared to $919,272 for the same period in 2023[149]. Assets and Liabilities - Total current assets increased to $42,920,445 as of December 31, 2024, from $37,984,932 as of June 30, 2024, reflecting a growth of 13.5%[9]. - Total liabilities increased to $130,533,116 as of December 31, 2024, compared to $127,796,151 as of June 30, 2024, indicating a rise of 2.0%[9]. - As of December 31, 2024, accounts receivable from third parties increased to $31,125,059 from $24,239,599 as of June 30, 2024, representing a growth of approximately 28.5%[64]. - The total loan receivable balance increased to $3,812,293 as of December 31, 2024, compared to $1,877,131 as of June 30, 2024, indicating a growth of approximately 103.5%[70]. - The allowance for credit loss increased to $547,610 as of December 31, 2024, from $407,182 as of June 30, 2024, reflecting a rise of approximately 34.4%[65]. - As of December 31, 2024, accounts payable and accrued liabilities totaled US$5,533,126, a decrease from US$7,502,339 as of June 30, 2024[80]. Cash Flow - Cash and restricted cash at the end of the six months period was $7,378,747, a decrease from $9,950,384 at the beginning of the year[15]. - The company reported a net cash used in operating activities of $9,232,468 for the six months ended December 31, 2024, compared to a net cash provided of $3,494,935 for the same period in 2023[15]. - Net cash used in operating activities was $9.2 million for the six months ended December 31, 2024, a decrease of $12.7 million compared to a net cash inflow of $3.5 million for the same period in 2023[136]. - Net cash used in investing activities was $1.0 million for the six months ended December 31, 2024, down from $3.9 million in the same period in 2023[137][138]. - Net cash provided from financing activities was $7.7 million for the six months ended December 31, 2024, compared to $0.9 million for the same period in 2023[140][139]. Operational Overview - 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 operates in one segment, with all business activities conducted in the U.S., simplifying performance evaluation and resource allocation[56]. - The company has no recorded impairment losses for long-lived assets during the three and six months ended December 31, 2024, and 2023[29]. - The company operates with a 100% ownership structure across its subsidiaries, enhancing operational control and integration[22]. - The company utilizes independent contractors and third-party carriers for transportation services, maintaining control over pricing and shipment processes[36]. - The company had an active customer base of 298 as of December 31, 2024, up from 105 in June 2024 and 83 in December 2023[115]. - The company generated approximately 86% of its revenue from PRC-based customers during the six months ended December 31, 2024, down from 96% in the same period of 2023[117]. Lease and Financing - The Company has elected to account for leases with both lease and non-lease components as a single lease component, simplifying financial reporting[48]. - Operating lease expenses for the six months ended December 31, 2024, were US$15,858,308, an increase of 41.5% compared to US$11,245,735 for the same period in 2023[76]. - For the three months ended December 31, 2024, operating lease expenses were US$7,746,884, up 28.6% from US$6,027,177 in 2023[75]. - Total minimum lease payments amount to US$157,938,073, with a non-current portion of US$90,172,693 as of December 31, 2024[77]. - The weighted average remaining lease term for operating leases is 5.67 years, with a discount rate of 10.28%[79]. - The effective interest rate on the convertible notes is 13.85%, with a 0% interest rate that increases to 18% upon an event of default[93][90]. - The Company has entered into a Standby Equity Purchase Agreement allowing it to sell up to US$50 million of common stock, with an initial advance of US$5 million received[81][84]. Corporate Actions - The company completed its initial public offering in May 2024, raising $8.0 million by issuing 1,600,000 shares at $5.00 per share[159]. - The net proceeds from the initial public offering were $5.2 million after deducting expenses, which have been fully spent for working capital and general corporate purposes[161]. - The company amended its Articles of Incorporation on February 22, 2023, for correction of par value[3.2]. - A Standby Equity Purchase Agreement was established on November 25, 2024, with YA II PN, LTD[10.1]. - The First Tranche Convertible Promissory Note was issued on November 25, 2024, in favor of YA II PN, LTD[10.2]. - A Global Guaranty Agreement was signed on November 25, 2024, involving multiple subsidiaries of Armlogi[10.3]. - The company has filed certifications pursuant to the Sarbanes-Oxley Act of 2002 for both the Principal Executive Officer and Principal Financial Officer[31.1][31.2]. - The Inline XBRL Instance Document was filed along with the report[101.INS]. - The report was signed by CEO Aidy Chou on February 14, 2025[172].

Core Viewpoint - Armlogi Holding Corp. is set to release its financial results for the second quarter and first half of the fiscal year ending December 31, 2024, on February 13, 2025, after market close [1] Financial Results Announcement - The financial results will be discussed in an earnings conference call scheduled for February 14, 2025, at 8:00 A.M. Pacific Time [2] - Investors can submit questions via email by February 12, 2025, and access the call by phone or through a live audio webcast [3] Company Overview - Armlogi Holding Corp. is a U.S.-based warehousing and logistics service provider, focusing on supply-chain solutions for warehouse management and order fulfillment [4] - The company operates eleven warehouses covering over 3.5 million square feet, catering primarily to cross-border e-commerce merchants [4]

Company to Donate Over $110,000 in Essential Equipment to Support Local Emergency Response WALNUT, CA, Jan. 17, 2025 (GLOBE NEWSWIRE) -- Armlogi Holding Corp. (“Armlogi” or the “Company”) (Nasdaq: BTOC), a U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions related to warehouse management and order fulfillment, today announced a significant donation initiative to support Los Angeles communities affected by the recent California wildfires. The C ...

WALNUT, CA, Jan. 17, 2025 (GLOBE NEWSWIRE) -- Armlogi Holding Corp. (“Armlogi” or the “Company”) (Nasdaq: BTOC), a U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions related to warehouse management and order fulfillment, today announced the integration of Amazon Shipping into its suite of shipping solutions. This new addition is expected to enhance Armlogi’s shipping capabilities, providing customers with more efficient and cost-effective opti ...

Sheng-Kai (Scott) Hsu Appointed as Chief Financial Officer of Armlogi, Transitioning from Board Secretary Zhiliang (Ian) Zhou to Remain with Armlogi in an Advisory Role WALNUT, CA, Jan. 14, 2025 (GLOBE NEWSWIRE) -- Armlogi Holding Corp. (“Armlogi” or the “Company”) (Nasdaq: BTOC), a U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions related to warehouse management and order fulfillment, today announced a transition in its executive leadershi ...

WALNUT, CA, Jan. 07, 2025 (GLOBE NEWSWIRE) -- Armlogi Holding Corp. (“Armlogi” or the “Company”) (Nasdaq: BTOC), a U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions related to warehouse management and order fulfillment, today announced the sublease of a 500,000-square-foot e-commerce facility in Edwardsville, Illinois, part of the St. Louis Metro Area. The facility is located in Gateway Commerce Center, providing immediate access to Interstat ...

WALNUT, CA, Dec. 20, 2024 (GLOBE NEWSWIRE) -- Armlogi Holding Corp. ("Armlogi" or the "Company") (NASDAQ:BTOC), a U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions related to warehouse management and order fulfillment, today announced that it has closed on the $5 million second tranche of the Pre-Paid Advance (as defined below) pursuant to a Standby Equity Purchase Agreement (the "SEPA") the Company entered into with YA II PN, Ltd. ("YA"), a ...