Fr8Tech(FRGT) - 2025 Q1 - Quarterly Results

Financial Performance - Gross margin percentage increased by 1.8% year-over-year to 9.8% in 2024 from 7.9% in 2023 due to more profitable routes and operational efficiency improvements[7] - Cash flow from operations improved by $1.6 million year-over-year to -$4.2 million from -$5.8 million in 2023, driven by better margins and working capital management[7] - Net loss improved by $3.7 million year-over-year to -$5.6 million in 2024 from -$9.3 million in 2023, despite lower revenue, due to higher gross margins and lower operating expenses[7] - Revenue for 2024 was reported at $13.73 million, down from $17.06 million in 2023[11] - Net loss for 2024 was $5,601,227, an improvement from a net loss of $9,327,606 in 2023, representing a reduction of approximately 40%[17] Assets and Liabilities - Total assets decreased to $5.69 million in 2024 from $10.04 million in 2023[13] - Total liabilities decreased to $6.35 million in 2024 from $7.41 million in 2023[13] Cash Flow and Financing - Cash used in operating activities decreased to $4,206,168 in 2024 from $5,790,684 in 2023, indicating a 27% improvement[17] - Cash and cash equivalents at the end of the period dropped to $204,032 from $1,560,105, reflecting a decrease of approximately 87%[17] - Net cash provided by financing activities was $4,242,023 in 2024, down from $6,800,722 in 2023, a decline of about 38%[17] - The company reported a gain from extinguishment of debt amounting to $1,607,766 in 2024[17] - Proceeds from issuance of common stock from ATM Offering amounted to $3,079,016 in 2024[17] Operational Highlights - Fr8Fleet, the dedicated capacity service, achieved 42% year-over-year revenue growth[3] - The company launched Waavely, an ocean freight booking and management platform, in July 2024, and Fleet Rocket, a Transportation Management System, in February 2025[2][3] - Customer satisfaction survey indicated a response rate of over 80%, with average scores greater than four out of five[3] - The company expects to continue improving financial results in 2025, focusing on software offerings and AI-powered solutions[5] Expenses and Costs - Depreciation and amortization increased to $430,414 in 2024 from $404,598 in 2023, a rise of about 6%[17] - Share-based compensation decreased to $981,023 in 2024 from $1,153,787 in 2023, a reduction of approximately 15%[17] - Accounts receivable increased significantly to $1,120,176 in 2024 from $45,383 in 2023, indicating a substantial growth[17] - The company capitalized software development costs of $336,153 in 2024, slightly up from $328,645 in 2023[17]