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].
Armlogi Holding Corp.(BTOC) - 2025 Q2 - Quarterly Report