Callan JMB Inc(CJMB) - 2025 Q2 - Quarterly Results

Executive Summary & Business Update Company Overview Callan JMB Inc. is an integrative logistics company specializing in fulfillment, storage, monitoring, and cold chain logistics for the healthcare industry and emergency management agencies, focusing on securing medical materials and ensuring patient safety - Callan JMB Inc. provides integrative logistics services, including fulfillment, storage, monitoring, and cold chain logistics, to the healthcare industry and emergency management agencies[2][6] - The company's expertise spans supply chain logistics, thermodynamics, biologics, inventory management, regulatory compliance, and emergency preparedness[6] Recent Business Highlights Callan JMB announced several key achievements, including a strategic partnership with Revival Health Inc. for integrated supply chain services, the launch of a subsidiary in India for pharmaceutical cold chain logistics, and the extension of a significant emergency preparedness contract with the City of Chicago - Formed a strategic partnership with Revival Health Inc. to deliver fully integrated supply chain services and infrastructure for health, wellness, and longevity products[1][7] - Launched a subsidiary in India (Callan JMB Services (India) Private Limited) and is establishing a temperature-controlled warehouse in Pune, Maharashtra, for pharmaceutical storage and distribution, securing an agreement with Walker's Pharmaceuticals Ltd[1][3][7] - Extended the emergency preparedness contract with the City of Chicago through June 2026, with an additional $1.5 million in funding, bringing the total contract value to $9.1 million[1][3][7] - Appointed Christopher Shields, former Assistant Commissioner of the Chicago Department of Public Health, as Senior Vice President, Emergency Preparedness & Response/Government Affairs[2][7] - Successfully redistributed over 1,300 MMR II vaccine doses from Chicago to Texas and New Mexico during a measles outbreak response with zero waste[2][3][7] CEO Commentary CEO Wayne Williams highlighted the company's strengthened position in specialized logistics, emphasizing the Revival partnership, international expansion into India to address U.S. drug shortages, and the extended Chicago contract, while also noting the appointment of Christopher Shields to expand emergency preparedness operations and the successful vaccine redistribution, with future growth opportunities in GLP-1 pharmaceutical distribution, specialty compounding pharmacy logistics, and premium food packaging solutions - CEO Wayne Williams emphasized solidifying Callan JMB's position as a leading provider of specialized logistics solutions in high-growth markets[3] - The strategic partnership with Revival aims to develop a broad supply platform for healthcare products, while the India subsidiary will support global pharmaceutical cold chain logistics and clinical trials, helping address U.S. drug shortages[3] - The extension of the emergency preparedness contract with the City of Chicago and the appointment of Christopher Shields are intended to grow emergency preparedness operations into new U.S. and international markets[3] - Future growth opportunities include GLP-1 pharmaceutical distribution, specialty compounding pharmacy logistics, and premium food packaging solutions[3] Financial Performance Overview Second Quarter and Six Months Ended June 30, 2025 Financial Highlights Callan JMB reported revenues of $1.7 million for Q2 2025 and $3.1 million for the six months ended June 30, 2025, experiencing a year-over-year decrease primarily due to reduced demand for emergency preparedness services, with gross profit for the quarter at $0.6 million and $1.3 million for the six months, while SG&A expenses significantly increased due to public entity costs and new senior staff hires, leading to an increased loss from operations Key Financial Highlights (Q2 & H1 2025 vs. Prior Year) | Metric | Three months ended June 30, 2025 ($) | Three months ended June 30, 2024 ($) | Six months ended June 30, 2025 ($) | Six months ended June 30, 2024 ($) | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $1.7 million | $2.0 million | $3.1 million | $3.8 million | | Cost of revenues | $1.0 million | $1.0 million | $1.9 million | $2.1 million | | Gross profit | $0.6 million | $1.0 million | $1.3 million | $1.7 million | | SG&A expenses | $2.0 million | $1.1 million | $3.9 million | $1.9 million | | Loss from operations | $(1.4) million | $(0.1) million | $(2.6) million | $(0.2) million | | Cash and cash equivalents (period end) | $4.2 million (June 30, 2025) | - | - | - | - The year-over-year decrease in revenue was attributed to a decline in demand for emergency preparedness services from certain states and local governments[7] - The increase in SG&A expenses was primarily driven by consulting, professional fees, and marketing expenses related to the Company becoming a public entity and new senior staff hires[7] - Subsequent to quarter end, the Company entered into an equity line of credit agreement for the right to sell up to $25 million of common stock[7] Condensed Consolidated Financial Statements Condensed Consolidated Balance Sheets As of June 30, 2025, Callan JMB's total assets increased significantly to $8.97 million from $5.08 million at December 31, 2024, primarily driven by an increase in cash and cash equivalents and right-of-use assets, while total liabilities also rose to $3.14 million from $1.91 million, and total stockholders' equity increased to $5.83 million from $3.17 million Condensed Consolidated Balance Sheet Highlights | Metric | June 30, 2025 (Unaudited) ($) | December 31, 2024 ($) | | :-------------------------- | :-------------------------- | :------------------ | | Cash and cash equivalents | $4,224,151 | $2,097,945 | | Total current assets | $5,590,248 | $3,319,188 | | Total assets | $8,965,681 | $5,082,549 | | Total current liabilities | $1,311,439 | $1,274,315 | | Total liabilities | $3,140,394 | $1,909,191 | | Total Stockholders' Equity | $5,825,287 | $3,173,358 | - Total assets increased by approximately $3.88 million from December 31, 2024, to June 30, 2025[11] - The increase in total stockholders' equity was largely due to an increase in additional paid-in capital from $5.46 million to $10.76 million[11] Condensed Consolidated Statements of Operations For the three months ended June 30, 2025, revenue decreased to $1.67 million from $1.99 million year-over-year, resulting in a gross profit of $0.64 million, while selling, general, and administrative expenses significantly increased, leading to a net loss of $(1.40) million, or $(0.31) per share, compared to a net loss of $(0.11) million, or $(0.04) per share, in the prior year's quarter, with similar trends observed for the six-month period Condensed Consolidated Statements of Operations Highlights | Metric | Three months ended June 30, 2025 ($) | Three months ended June 30, 2024 ($) | Six months ended June 30, 2025 ($) | Six months ended June 30, 2024 ($) | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $1,666,309 | $1,985,768 | $3,115,687 | $3,776,289 | | Cost of revenue | $1,022,439 | $1,023,552 | $1,858,724 | $2,096,490 | | Gross profit | $643,870 | $962,216 | $1,256,963 | $1,679,799 | | Selling, general and administrative expenses | $2,046,537 | $1,095,639 | $3,901,878 | $1,900,681 | | Loss from operations | $(1,402,667) | $(133,423) | $(2,644,915) | $(220,882) | | Net loss | $(1,397,523) | $(112,476) | $(2,641,986) | $(193,609) | | Net loss per common share - basic and diluted | $(0.31) | $(0.04) | $(0.63) | $(0.08) | - Revenue decreased by 16.09% for the three months and 17.49% for the six months ended June 30, 2025, compared to the prior year periods[13] - Selling, general and administrative expenses increased by 86.79% for the three months and 105.29% for the six months ended June 30, 2025, compared to the prior year periods[13] Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2025, net cash used in operating activities was $(2.12) million, a significant change from net cash provided of $0.28 million in the prior year, primarily due to the increased net loss and stock-based compensation, while investing activities used $(0.45) million, mainly for property and equipment purchases, and financing activities provided $4.70 million, driven by proceeds from an IPO and overallotment, resulting in a net increase in cash and cash equivalents of $2.13 million Condensed Consolidated Statements of Cash Flows Highlights | Metric | Six months ended June 30, 2025 ($) | Six months ended June 30, 2024 ($) | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by (used in) operating activities | $(2,124,970) | $275,524 | | Net cash used in investing activity | $(447,506) | $(45,874) | | Net cash provided by (used in) financing activities | $4,698,682 | $(3,537,549) | | Increase (decrease) in cash and cash equivalents | $2,126,206 | $(3,307,899) | | Cash and cash equivalents at end of period | $4,224,151 | $1,847,721 | - The significant increase in cash from financing activities was primarily due to $4.68 million in proceeds from the IPO and overallotment[15] - Stock-based compensation of $749,927 was a non-cash adjustment reconciling net loss to operating cash flow for the six months ended June 30, 2025[15] Additional Information Forward-Looking Statements This section contains a standard disclaimer regarding forward-looking statements, noting that such statements involve known and unknown risks and uncertainties that could cause actual results to differ materially, and the company disclaims any obligation to revise these statements - The press release includes forward-looking statements, identified by words like 'believe,' 'anticipate,' 'expect,' and 'will,' which are not historical facts[8] - These statements are subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from anticipated outcomes[8] - The Company disclaims any intention or obligation to revise any forward-looking statements[8] Investor Contacts Contact information for investor inquiries is provided, directing interested parties to Valter Pinto, Managing Director at KCSA Strategic Communications - Investor inquiries can be directed to Valter Pinto, Managing Director at KCSA Strategic Communications[9] - Contact details include email: CallanJMB@kcsa.com and phone: 212.896.1254[9]