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Freight Technologies Announces Commercial Launch of Fleet Rocket
Globenewswire· 2025-02-10 14:05
Core Insights - Freight Technologies, Inc. has launched Fleet Rocket, a new Transportation Management System (TMS) aimed at enhancing freight operations management across the USMCA region [1][7] - Fleet Rocket is designed to address the complexities of domestic and cross-border logistics, providing tools tailored for nearshoring models [2][8] Product Features - Fleet Rocket offers flexible, API-driven integrations for seamless connectivity with third-party platforms and business systems [3] - The system includes advanced reporting and analytics capabilities, enabling data-driven decision-making to improve operational efficiency and cost management [4] - It is affordable for small businesses while being scalable for larger enterprises, catering to diverse needs in freight management [5][9] - The platform promises accelerated implementation with comprehensive support, ensuring minimal downtime and quick operational readiness [6][9] Market Positioning - Fleet Rocket was developed in response to customer feedback, focusing on the demand for advanced tools in the evolving landscape of nearshoring and cross-border freight [7] - The system includes specialized features for managing Mexico freight, customs documentation, and real-time tracking for transnational logistics [8] - It also supports domestic freight management with functionalities like fleetwide management and driver communication [8] Company Overview - Freight Technologies, Inc. is a technology company that offers a range of solutions powered by AI and machine learning to optimize supply chain processes [10] - The company's portfolio includes various platforms such as Fr8App for cross-border shipping, Fr8Now for less-than-truckload shipping, and Waavely for ocean freight management, all interconnected to enhance operational efficiency [10]
Freight Technologies Advances Transformation to Accelerate Innovation, Reduce Costs, and Drive Growth
Globenewswire· 2025-02-07 14:05
Core Insights - Fr8Tech is set to launch its Transportation Management System (TMS) in February 2025, aimed at enhancing logistics operations through technology [1][2] - The company is undergoing a workforce reduction of 20% to streamline operations and align resources with its technology-driven objectives [3] - Fr8Tech has completed a $3 million private placement offering to support ongoing software development and has renewed logistics agreements with major clients [3] Company Developments - The TMS will function as a digital command center for logistics teams, enabling real-time shipment tracking, carrier selection, route management, and documentation integration [2] - The CEO emphasized the importance of automation in improving service offerings and achieving sustainable profitability [3] - The company aims to reach profitability on an adjusted EBITDA basis by the end of 2025 [3] Financial Position - The recent $3 million private placement offering of convertible preferred stock strengthens Fr8Tech's financial position [3] - The workforce reduction is expected to enhance financial results over 2025 [3] - Renewed agreements with large enterprise customers indicate continued expansion and adoption of Fr8Tech's solutions [3][4]
Freight Technologies Completes $3 Million Private Placement Offering of Convertible Preferred Stock
Globenewswire· 2025-02-03 14:15
Core Viewpoint - Freight Technologies, Inc. has successfully raised $3.0 million through a private placement of Series A4 preferred shares, which will be utilized for working capital and strategic growth initiatives [1][2][5] Group 1: Offering Details - The Offering consisted of 1,540,832 Series A4 preferred shares with a par value of $0.0001 per share [1] - The net cash proceeds from the Offering amounted to approximately $2.9 million after deducting fees and expenses [2] - The Company is required to file a registration statement with the SEC for the ordinary shares that can be issued upon conversion of the preferred shares by March 30, 2025 [4] Group 2: Preferred Shares Conversion - Each preferred share is immediately convertible into ordinary shares at the option of the shareholder without additional payment [3] - The conversion price is determined by the greater of the lowest daily VWAP of the ordinary shares in the preceding seven trading days or the Series A4 Conversion Price Floor [3] Group 3: Company Overview - Freight Technologies is a logistics management innovation company that offers technology-driven solutions to optimize the supply chain [5] - The Company's portfolio includes platforms such as Fr8App for cross-border shipping, Fr8Now for less-than-truckload shipping, Fr8Fleet for dedicated capacity services, and Waavely for ocean freight management [5] - The Company is headquartered in Monterrey, Mexico and focuses on enhancing operational efficiency through AI and machine learning technologies [5]
Freight Technologies Renews Multi-Year Logistics Services Agreement with Kimberly-Clark de México
Globenewswire· 2025-01-13 14:00
Core Insights - Freight Technologies, Inc. has renewed its logistics services contract with Kimberly-Clark de México for an additional two years, continuing a successful collaboration that began in 2022 [1][2] - The renewed agreement includes the transportation of products and goods throughout Mexico, with Fr8Tech managing three key services: dedicated capacity under Fr8Fleet, OTR spot for domestic shipments, and OTR spot for US-MX cross-border shipments [2][3] - The renewal reflects the confidence Kimberly-Clark has in Fr8Tech's logistics solutions and highlights the company's commitment to enhancing its technology and service offerings [3] Company Overview - Freight Technologies, Inc. (Fr8Tech) is a logistics management innovation company that offers a diverse portfolio of technology-driven solutions aimed at optimizing the supply chain process [4] - The company's solutions include Fr8App for B2B cross-border shipping, Fr8Now for less-than-truckload shipping, Fr8Fleet for dedicated capacity, and Waavely for ocean freight booking [4] - Fr8Tech's platform utilizes AI and machine learning to improve operational efficiency through features like live pricing, real-time tracking, and a digital freight marketplace [4]
Freight Technologies Announces Unaudited Financial Results for the Six Months Ended June 30, 2024
Globenewswire· 2025-01-10 22:15
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]
Fr8Tech(FRGT) - 2024 Q4 - Annual Results
2025-01-10 22:00
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]
Freight Technologies Announces Change of Auditor
GlobeNewswire News Room· 2025-01-10 21:34
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]
Freight Technologies Awarded Logistics Contract by Leading Global Toy Industry Brand
Globenewswire· 2025-01-08 14:00
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]
Werner Grapples With Weak Freight Market and Rising Expenses
ZACKS· 2024-12-24 17:41
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]
Landstar Continues to Grapple With Weakness in Freight Market
ZACKS· 2024-12-20 15:36
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]