Company Overview - Freight Technologies Inc (Fr8Tech) is a technology company specializing in AI and machine learning-driven solutions to optimize and automate supply chain processes [2] - The company offers a diverse portfolio of proprietary platform solutions, including Fr8App for cross-border shipping, Fr8Now for LTL shipping, Fr8Fleet for enterprise capacity in Mexico, and Waavely for ocean freight management [2] - These interconnected solutions aim to improve matching and operational efficiency through live pricing, real-time tracking, digital freight marketplace, and other innovative technologies [2] - The company is headquartered in Houston, Texas [2] Financial Reporting - Freight Technologies reported financial and operating results for the six months ended June 30, 2024 [1] - The earnings release has been filed in the Company's Form 8-K and is available on the investor relations website [1] Forward-Looking Statements - The press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995 [3] - These statements involve significant risks and uncertainties that could cause actual results to differ materially from expectations [3] - Factors that may cause differences include Nasdaq listing maintenance, regulatory changes, economic conditions, business growth uncertainties, and other risks identified in SEC filings [3][5]

Assets and Equipment - Property and equipment, net decreased to $12,404 as of June 30, 2024, from $18,239 as of December 31, 2023[2] - Long-lived assets decreased to $710,369 as of June 30, 2024, from $803,549 as of December 31, 2023, with $591,021 located in Mexico and $119,348 in the United States[24] - Capitalized software, net, as of June 30, 2024, was $684,195, compared to $771,133 as of December 31, 2023[113] Liabilities and Accrued Expenses - Total accrued expenses decreased to $1,525,355 as of June 30, 2024, from $2,239,171 as of December 31, 2023[3] - The borrowing balance under the revolving line of credit was $4,443,944 as of June 30, 2024[10] - The Company secured a term loan of $750,000 on March 11, 2024, and an additional term loan of $125,000 on June 4, 2024, both accruing interest at 8% per annum[12][13] - The fair value of the convertible note decreased to $219,840 as of June 30, 2024, from $242,442 as of December 31, 2023[20] - The company canceled a Convertible Promissory Note and two promissory notes totaling $1,095, including accrued interest, on September 4, 2024[36] - Total liabilities increased from $7.410 million as of December 31, 2023 to $9.065 million as of June 30, 2024[71] - The company reported negative working capital of $0.8 million and short-term debt of $5.6 million as of June 30, 2024[82] Revenue and Expenses - Total revenue for the six months ended June 30, 2024, was $8,125,602, with $5,043,432 coming from Mexico and $3,082,170 from the United States[24] - Revenue increased by $507 (6.7%) to $8,126 for the six months ended June 30, 2024, driven by a 135% increase in Fr8Fleet dedicated services, partially offset by a 24% decrease in spot services[39] - Cost of revenue rose by $233 (3.4%) to $7,170 for the six months ended June 30, 2024, with gross margin percentage improving from 9.0% to 11.8% due to a focus on higher-margin customers[40] - Compensation and employee benefits expenses decreased by $24 (0.8%) to $2,818 for the six months ended June 30, 2024, primarily due to lower commissions and employee mix changes[41] - General and administrative expenses increased by $588 (54.2%) to $1,672 for the six months ended June 30, 2024, driven by foreign exchange variances and higher professional fees[42] - Net revenue for the six months ended June 30, 2024, increased by 6.7% to $8,126,000 compared to $7,619,000 in the same period in 2023[50] - Operating loss for the six months ended June 30, 2024, increased by 9.0% to $3,788,000 compared to $3,475,000 in the same period in 2023[50] - Net loss for the six months ended June 30, 2024, decreased by 0.3% to $4,211,000 compared to $4,223,000 in the same period in 2023[57] - Sales and marketing expenses decreased by 12.8% to $34,000 for the six months ended June 30, 2024, compared to $39,000 in the same period in 2023[51] - Depreciation and amortization expenses increased by 14.6% to $220,000 for the six months ended June 30, 2024, compared to $192,000 in the same period in 2023[52] - Other financial expenses decreased by 52.2% to $405,000 for the six months ended June 30, 2024, compared to $847,000 in the same period in 2023[55] - Revenue for the six months ended June 30, 2024 was $8.126 million, compared to $7.619 million for the same period in 2023[73] - Net loss for the six months ended June 30, 2024 was $4.211 million, compared to $4.234 million for the same period in 2023[73] - Comprehensive loss for the six months ended June 30, 2024 was $4.626 million, compared to $4.032 million for the same period in 2023[73] - Net loss per share attributable to common stockholders for the six months ended June 30, 2024 was $15.94, compared to $158.98 for the same period in 2023[73] - Weighted average number of common shares basic and diluted for the six months ended June 30, 2024 was 264,225, compared to 26,568 for the same period in 2023[73] - Net loss for the six months ended June 30, 2024, was $4,211,006, compared to $4,223,808 in the same period in 2023[77] - Share-based compensation for the six months ended June 30, 2024, was $515,380, compared to $549,371 in the same period in 2023[77] - Depreciation and amortization for the six months ended June 30, 2024, was $220,246, compared to $192,484 in the same period in 2023[77] - Freight Transportation Brokerage revenue for the six months ended June 30, 2024, was $4,675,171, a decrease from $6,152,222 in the same period in 2023[107] - Dedicated Capacity revenue for the six months ended June 30, 2024, was $3,450,431, a significant increase from $1,467,100 in the same period in 2023[107] - Total revenue for the six months ended June 30, 2024, was $8,125,602, compared to $7,619,322 in the same period in 2023[107] - Amortization expense for the six months ended June 30, 2024, was $212,306, up from $183,307 in the same period in 2023[113] - Estimated amortization for capitalized software for the remainder of 2024 (July 1 – December 31) is $187,101[114] Cash Flow and Financing - The Company incurred $357,599 in interest expense related to the revolving line of credit for the six months ended June 30, 2024, compared to $133,038 for the same period in 2023[11] - The company raised $1,471,839 net of commissions and fees by selling 138,466 ordinary shares at an adjusted price of $11.01 per share as of June 30, 2024[33] - 318,820 Ordinary Share warrants were exercised for 270,995 Ordinary Shares during the six months ended June 30, 2024, based on a conversion ratio of 0.85[28] - The company entered into a Sales Agent Agreement to offer and sell ordinary shares with an aggregate offering price of up to $2,300,000, paying AGP a 3.0% commission on gross proceeds[30] - Freight Opportunities, LLC exercised 29,917,656 Ordinary Share warrants for 1,190,000 shares from July 1, 2024, through January 10, 2025[38] - The company effected a one-for-twenty-five reverse stock split on September 25, 2024, retroactively adjusting all ordinary shares and per-share information[35] - Net cash used in operating activities increased to $4,857,000 for the six months ended June 30, 2024, compared to $1,608,000 in the same period in 2023[62] - Net cash provided by financing activities was $3,924,000 for the six months ended June 30, 2024, driven by equity sales and borrowing[67] - Net cash provided by financing activities for the six months ended June 30, 2023 was $2.879 million, driven by proceeds from convertible notes of $4.8 million, partially offset by net repayment on borrowing facilities of $1.726 million, repayment of insurance premium funding of $153,000, and transaction costs of $42,000[68] - Cash and cash equivalents decreased from $1.560 million as of December 31, 2023 to $460,576 as of June 30, 2024[71] - Total current assets decreased from $9.153 million as of December 31, 2023 to $8.268 million as of June 30, 2024[71] - Cash used in operating activities for the six months ended June 30, 2024, was $4,857,126, compared to $1,608,102 in the same period in 2023[77] - Cash provided by financing activities for the six months ended June 30, 2024, was $3,923,593, compared to $2,878,519 in the same period in 2023[77] - Cash and cash equivalents at the end of the period were $460,576, compared to $1,837,713 in the same period in 2023[77] - Proceeds from short-term borrowings for the six months ended June 30, 2024, were $9,848,259, compared to $8,615,881 in the same period in 2023[77] - Repayment of short-term borrowings for the six months ended June 30, 2024, was $8,150,791, compared to $10,342,407 in the same period in 2023[77] - Capitalization of software development costs for the six months ended June 30, 2024, was $171,997, compared to $64,431 in the same period in 2023[77] - The company has an accumulated deficit of $43.5 million and negative working capital of $0.8 million as of June 30, 2024[58] - The company anticipates the need for additional capital to fund operations and capital investments until achieving cash self-sufficiency[59] - The company has an accumulated deficit of $43.5 million and a negative shareholders' equity of $0.03 million as of June 30, 2024[82] - The company projects it will need additional capital to fund operations until it achieves cash self-sufficiency[83] Stock and Equity - The Company recognized $511,619 of stock compensation expense for the six months ended June 30, 2024, compared to $537,670 for the same period in 2023[7] - Total stockholders' equity as of June 30, 2024, was $(32,356), compared to $3,035,270 as of June 30, 2023[75] - Anti-dilutive ordinary share equivalents as of June 30, 2024, totaled 6,571,894, a substantial increase from 65,022 in the same period in 2023[109] Accounts Receivable and Credit - One customer accounted for 79% of the company's accounts receivable as of June 30, 2024, up from 66% at December 31, 2023[92] - 83% of accounts receivable were held by the Mexican entity as of June 30, 2024, compared to 76% at December 31, 2023[93] - One customer accounted for 46% of the company's revenues for the six months ended June 30, 2024, up from 30% for the same period in 2023[93] - The company's allowance for credit losses was $281,937 as of June 30, 2024, slightly down from $282,058 at December 31, 2023[94] - Unbilled receivables decreased to $637,566 as of June 30, 2024 from $961,747 at December 31, 2023[95] - The company recognized $3,343,913 in unbilled receivables during the six months ended June 30, 2024[96] - The company's cash balances exceeded federally insured limits by $101,226 as of June 30, 2024, down from $1,188,813 at December 31, 2023[91] Accounting Standards and Disclosures - The Company is evaluating the potential impact of adopting ASU 2023-07 on its consolidated financial statements and related disclosures[111] - The Company is evaluating the impact of adopting ASU 2023-09 on its consolidated financial statements and disclosures[112] - The Company does not expect the adoption of ASU 2020-04 to have a material impact on its consolidated financial statements[110]

Company Update - Freight Technologies Inc (FRGT) has changed its independent registered public accounting and auditing firm from Marcum LLP to TAAD LLP, effective immediately [1] - The decision was recommended and approved by the Audit Committee of the board of directors [2] - The engagement of TAAD became effective on January 6, 2025, while Marcum resigned on January 7, 2025 [2] - The company had no disagreements or reportable events with Marcum during the fiscal year ended December 31, 2024, and the subsequent interim period through January 7, 2025 [4][5] About Freight Technologies Inc - Freight Technologies is a logistics management innovation company offering technology-driven solutions for supply chain challenges [1] - The company's portfolio includes AI and machine learning-powered platforms such as Fr8App, Fr8Now, Fr8Fleet, and Waavely [6] - These platforms provide services like cross-border shipping, less-than-truckload shipping, dedicated capacity for enterprise clients, and ocean freight booking [6] - The unified platform connects carriers and shippers, improving matching and operational efficiency through live pricing, real-time tracking, and digital freight marketplace [6] About TAAD LLP - TAAD LLP is a PCAOB-registered firm specializing in assurance, audit, tax, and advisory services [7] - The firm has expertise in helping companies go public through reverse mergers, IPOs, and self-filings [7] - TAAD LLP ensures compliance with US GAAP and IFRS and has offices in Los Angeles, New York, Hong Kong, Taipei, and Tokyo [7] - The firm's team includes professionals with Big 4 and national firm experience, offering a proactive, hands-on approach [7]

Company Announcement - Freight Technologies Inc (Fr8Tech) has signed a new logistics services contract with a leading global toy industry brand [1] - The contract will ensure secure and timely transport of the client's products throughout the Mexican market [2] - The Fr8App platform has been providing over-the-road (OTR) logistics services across key shipment lanes in Mexico, particularly during peak seasonal demand periods [2] CEO Statement - Javier Selgas, CEO of Fr8Tech, stated that the contract serves as a validation of the Fr8App platform's ability to innovate and sustain logistics support in the global marketplace [3] - The company is proud to collaborate with the market leader and looks forward to continuing the relationship [3] Company Overview - Freight Technologies Inc (Fr8Tech) is a technology company offering a diverse portfolio of proprietary platform solutions powered by AI and machine learning to optimize and automate the supply chain process [3] - The company's portfolio includes the Fr8App platform for seamless OTR B2B cross-border shipping across the USMCA region, Fr8Now for less-than-truckload (LTL) shipping, Fr8Fleet for dedicated capacity service in Mexico, and Waavely for efficient ocean freight booking and management [3] - The company's solutions are interconnected within a unified platform to connect carriers and shippers, improving matching and operation efficiency through innovative technologies such as live pricing, real-time tracking, digital freight marketplace, brokerage support, transportation management, fleet management, and committed capacity solutions [3] - The company is headquartered in Houston, Texas [3]

Industry Challenges - Weak freight demand due to supply chain disruptions caused by hurricanes, leading to reduced shipping capacity and lower freight rates [1] - Driver shortage persists as older drivers retire and younger generations show less interest in trucking jobs [4] Company Performance - Werner Enterprises (WERN) faces a decline in Truckload Transportation Services (TTS) segment growth, with 2024 guidance revised to a decline of 8-6% from the previous 6-3% [2] - High operating expenses, with labor costs at $258.3 million (34.6% of total operating expenses) and fuel costs at $64.8 million in Q3 2024 [3] - WERN's stock has dropped 15.5% over the past year, underperforming the industry's 5.6% decline [4] Earnings and Market Sentiment - Zacks Consensus Estimate for WERN's Q4 and full-year 2024 earnings has been revised downward, reflecting declining broker confidence [7] - WERN's Zacks Rank is 4 (Sell) with a Value Score of D, indicating unattractiveness [9] Alternative Investment Options - C H Robinson Worldwide (CHRW) has a Zacks Rank 2 (Buy), with earnings surpassing estimates in three of the last four quarters and an expected 2024 earnings growth rate of 33.3% [11] - Wabtec Corporation (WAB) also holds a Zacks Rank 2 (Buy), with earnings exceeding estimates in three of the last four quarters and an expected 2024 earnings growth rate of 28.55% [12]

Industry Overview - The trucking industry faces a major challenge due to a driver shortage, as older drivers retire and younger generations show less interest in the profession [2] - The Cass Freight Shipment Index declined 0.7% year over year in November, reflecting weak freight demand and a declining trend since January 2024 [1] Company Performance (Landstar System, Inc. - LSTR) - LSTR is experiencing multiple headwinds, including reduced demand for freight services and increased truck capacity, making it an unimpressive investment option [4] - The company's top line is suffering due to low shipment volumes and rates, primarily driven by the below-par performance of its truck transportation segment [5] - LSTR's shares have plunged 10.1% year-to-date, significantly underperforming the industry's loss of 0.4% [6] - The Zacks Consensus Estimate for LSTR's Q4 2024 earnings has been revised downward by 18.1%, and full-year 2024 earnings by 5.1% over the past 90 days [3] - LSTR's earnings are expected to decline 16.1% year over year in Q4 2024 and 24.3% for the full year 2024 [8] - The company currently carries a Zacks Rank 4 (Sell) and has a Value Score of D, indicating its unattractiveness [11] Alternative Investment Opportunities - C H Robinson Worldwide Inc (CHRW) and Wabtec Corporation (WAB) are better-ranked stocks in the Zacks Transportation sector, each carrying a Zacks Rank 2 (Buy) [9] - CHRW has an impressive earnings surprise history, with earnings outpacing the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average surprise of 10.29% [13] - The Zacks Consensus Estimate for CHRW's 2024 earnings has been revised upward by 6.4% over the past 90 days, with an expected earnings growth rate of 33.3% for 2024 [13] - CHRW's shares have gained 21.6% year-to-date [13] - WAB has an impressive earnings surprise history, with earnings outpacing the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average surprise of 9.46% [10] - The Zacks Consensus Estimate for WAB's 2024 earnings has been revised upward by 2.5% over the past 90 days, with an expected earnings growth rate of 28.55% for 2024 [14] - WAB's shares have gained 49.4% year-to-date [14]

Company Overview - Old Dominion Freight Line (NASDAQ: ODFL) has faced stock headwinds over the past year [2] Analyst Background - The contributing analyst is part of the iREIT+Hoya Capital investment group and focuses on dividend investing in quality blue-chip stocks, BDCs, and REITs [4] - The analyst is a buy-and-hold investor aiming to supplement retirement income through dividends in the next 5-7 years [4] - The analyst's goal is to help lower and middle-class workers build investment portfolios of high-quality, dividend-paying companies [4] Disclosure - The analyst has no stock, option, or derivative positions in any mentioned companies and no plans to initiate such positions within the next 72 hours [3] - The article expresses the analyst's own opinions and is not receiving compensation beyond that from Seeking Alpha [3] - The analyst has no business relationship with any company mentioned in the article [3]

Annual Meeting Adjournment - The 2024 Annual Meeting of Stockholders was adjourned from December 12, 2024, to December 13, 2024, to allow additional time for stockholders to vote on proposals [1] - At the time of adjournment, proxies representing 44.67% of the company's common stock had been submitted, which was insufficient to constitute a quorum [2] - During the adjournment period, the company and its proxy agent, Broadridge Financial Solutions, will continue to receive votes from stockholders [3] - Proxies already received remain valid for the adjourned meeting, and shareholders are encouraged to vote online if they have not yet done so [4] Company Overview - Freight Technologies Inc (Fr8Tech) is a logistics management innovation company offering technology-driven solutions to address challenges in the supply chain ecosystem [5] - The company's portfolio includes the Fr8App platform for cross-border shipping, Fr8Now for less-than-truckload shipping, Fr8Fleet for dedicated capacity in Mexico, and Waavely for ocean freight booking and management [5] - These interconnected solutions aim to improve matching and operational efficiency through live pricing, real-time tracking, digital freight marketplace, brokerage support, transportation management, fleet management, and committed capacity solutions [5] - The company is headquartered in Houston, Texas [5]

Industry Overview - The Zacks Transportation - Air Freight and Cargo industry provides air delivery and freight services, with companies offering specialized transportation, logistics, and supply-chain solutions such as freight forwarding, customs brokerage, and fulfillment [3] - The industry's performance is closely tied to the health of the economy, with leading players like FedEx transporting millions of packages daily across the globe [3] - Some companies operate both ground and air fleets, while others focus on air transportation services for passengers and cargo or cater to entities outsourcing air cargo lifting requirements [3] Key Challenges - The industry faces persistent supply-chain disruptions, a challenging macroeconomic environment with inflation-induced high interest rates, weaker-than-expected demand, and declining package volumes [1] - Economic uncertainty prevails despite signs of cooling inflation, with increased inflation readings in October and September leading to market volatility and dampening prospects for industry stocks [4] - Sluggish economic growth and inflationary pressures are likely to hurt consumer spending, negatively impacting industry participants [4] - A significant demand slowdown, particularly in Asia and Europe, is hurting shipping volumes and the results of key players like UPS, which trimmed its full-year 2024 revenue forecast to $91.1 billion from $93 billion [5][6] Positive Trends and Opportunities - Despite challenges, the industry still has growth potential, especially for operators targeting growth opportunities and operating efficiency initiatives [2] - Companies like UPS, GXO Logistics, and Air Transport Services Group are leveraging cost-cutting efforts and growth trends to their advantage [2] - With economic activities recovering from pandemic lows, more companies are allocating increasing cash piles through dividends and buybacks, reflecting financial strength and confidence [7] - UPS raised its quarterly cash dividend to $1.63 per share in 2024, with expected dividend payments of $5.4 billion for the year [7] Industry Performance and Valuation - The Zacks Air Freight and Cargo industry carries a Zacks Industry Rank 174, placing it in the bottom 30% of 250 Zacks industries [8] - The industry has underperformed the S&P 500 and the broader Transportation sector, declining 0.9% over the past year compared to the S&P 500's 31.5% rally and the sector's 11.9% appreciation [11] - Based on the trailing 12-month enterprise value-to-EBITDA (EV/EBITDA) ratio, the industry is trading at 10.85X, lower than the S&P 500's 18.65X and the sector's 12.02X [13] - Over the past five years, the industry's EV/EBITDA ratio has ranged from 6.64X to 13.58X, with a median of 9.97X [14] Key Companies to Watch - **United Parcel Service (UPS):** The company has robust free cash flow generation, leading to increased shareholder-friendly activities like dividends and buybacks [17] - UPS's earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 1.5% [18] - **GXO Logistics:** The company is strengthening its logistics capabilities, benefiting from increased e-commerce, automation, and outsourcing [20] - GXO's earnings surpassed the Zacks Consensus Estimate in two of the last four quarters, with an average miss of 0.2%, and its shares have risen 8.2% over the past year [20] - **Air Transport Services Group (ATSG):** The company is modernizing and expanding its fleet, expecting to end 2024 with 149 aircraft (129 freighters and 20 passenger planes) compared to 129 at 2023-end [23] - ATSG's earnings surpassed the Zacks Consensus Estimate in two of the last four quarters, with an average miss of 6.9% [24]

Company Overview - Freight Technologies Inc (Fr8Tech) is a technology company specializing in AI and machine learning-driven solutions to optimize and automate supply chain processes [4] - The company offers a diverse portfolio of proprietary platform solutions, including Fr8App for cross-border shipping, Fr8Now for LTL shipping, Fr8Fleet for enterprise capacity in Mexico, and Waavely for ocean freight management [4] - Fr8Tech's solutions are interconnected within a unified platform, featuring live pricing, real-time tracking, digital freight marketplace, brokerage support, transportation management, and committed capacity solutions [4] Waavely Platform Performance - Waavely, the digital ocean freight platform launched in July 2024, has secured four active customers within a short period, demonstrating strong early demand and adoption [1] - The platform's success highlights the shipping industry's need for greater control, agility, and transparency in ocean freight logistics [3] - Waavely is designed to improve operational efficiency, reduce costs, and provide real-time visibility for maritime logistics [3] Growth Strategy - Fr8Tech's marketing strategy focuses on increasing volume with existing clients and acquiring new customers for the Waavely platform [2] - The company is actively evolving and expanding Waavely's service capabilities based on feedback from existing customers and prospects [2] - Fr8Tech plans to scale the platform by bringing in additional ocean carriers, logistics providers, and shippers to meet growing industry demands [2] Industry Impact - The rapid adoption of Waavely underscores the shipping industry's demand for innovative solutions that address challenges in ocean freight logistics [3] - Fr8Tech's portfolio of solutions, including Waavely, aims to significantly improve matching and operational efficiency through advanced technologies [4]