Financial Performance - Revenue for the three months ended September 30, 2025, was $49,473,179, an increase of 16.7% compared to $42,481,896 for the same period in 2024[12] - Gross loss for the three months ended September 30, 2025, was $2,484,083, improving from a gross loss of $3,606,790 in the prior year[12] - Net loss for the three months ended September 30, 2025, was $6,508,053, compared to a net loss of $4,647,871 for the same period in 2024, representing a 39.9% increase in losses[12] - Basic and diluted net loss per share for the three months ended September 30, 2025, was $0.15, compared to $0.11 for the same period in 2024[12] - The Company reported a net loss attributable to stockholders of $6,508,053 for the three months ended September 30, 2025, compared to a net loss of $4,647,871 for the same period in 2024[111] - The Company recorded total other income of $738,592 for the three months ended September 30, 2025, down from $1,205,665 for the same period in 2024[106] Assets and Liabilities - Total current assets decreased to $29,213,192 as of September 30, 2025, down from $37,665,911 as of June 30, 2025, a decline of 22.5%[9] - Total liabilities decreased to $133,955,680 as of September 30, 2025, from $145,124,257 as of June 30, 2025, a reduction of 7.7%[10] - Cash and cash equivalents as of September 30, 2025, were $6,456,745, down from $9,190,277 as of June 30, 2025, a decrease of 29.9%[9] - Total stockholders' equity decreased to $22,381,885 as of September 30, 2025, from $25,089,938 as of June 30, 2025, a decline of 10.8%[10] - The Company incurred a net current liability of $11.1 million[21] - Accounts payable decreased to $7,588,236 as of September 30, 2025, down from $9,005,727 as of June 30, 2025, representing a reduction of approximately 15.7%[82] Cash Flow and Financing - The company reported a net cash used in operating activities of $1,929,402 for the three months ended September 30, 2025, compared to $3,612,112 for the same period in 2024, indicating improved cash flow management[15] - The company is in discussions with financial institutions to secure additional credit facilities to strengthen working capital[21] - The company has an unused line of credit of $4.39 million with Eastwest Bank as of September 30, 2025[152] - The Company is exploring additional financing options to strengthen working capital amid a net current liability of $11.1 million as of September 30, 2025[137] Revenue Breakdown - Transportation services revenue was $32,075,786, up from $28,490,756, while warehousing services revenue increased to $17,380,018 from $13,973,694[44] - Revenue from transportation services increased by $3.6 million, or 12.6%, while revenue from warehousing services rose by $3.4 million, or 24.4% during the same period[131] - Contract liabilities transferred to revenue for the three months ended September 30, 2025, were $862,145, compared to $276,463 in 2024[45] Operational Insights - 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 is executing a cost optimization plan, including delaying non-essential capital expenditures and reducing third-party service costs to improve cash flow[21] - The company plans to optimize warehouse utilization and develop higher-margin logistics solutions to improve profitability[21] - The company operated ten warehouses with a total gross floor area of approximately 3,905,020 square feet as of September 30, 2025[126] - Active customer base increased from 505 to 607 between June 30, 2025, and September 30, 2025[126] Asset Management - As of September 30, 2025, accounts receivable from third parties totaled $18,679,435, down from $22,713,346 as of June 30, 2025, representing a decrease of approximately 17.9%[69] - The total allowance for credit loss remained unchanged at $594,869 for both September 30, 2025, and June 30, 2025[70] - Property and equipment, net decreased to $10,646,576 as of September 30, 2025, from $11,259,820 as of June 30, 2025, reflecting a decline of approximately 5.4%[71] - Intangible assets, net decreased to $43,032 as of September 30, 2025, from $54,627 as of June 30, 2025, a decline of approximately 21.3%[72] Shareholder Information - The Company issued 434,879 shares of common stock at US$1.72 per share in March 2025, raising US$750,000 as part of the SEPA loan conversion[92] - The Company issued 3,192,145 shares for Investor Notices pursuant to the Standby Equity Purchase Agreement, increasing total shares to 45,443,079 as of September 30, 2025[14] - The weighted average number of shares of common stock outstanding was 42,462,207 for the three months ended September 30, 2025, compared to 41,634,000 for the same period in 2024[111] Lease and Rental Expenses - Operating lease expenses increased to US$9,177,790 for the three months ended September 30, 2025, compared to US$8,111,425 for the same period in 2024, reflecting a year-over-year increase of approximately 13.1%[79] - The Company recognized lease income of US$81,900 during the three months ended September 30, 2025, compared to US$727,498 in the same period of 2024, indicating a significant decline in lease income[77] - Total minimum lease payments for operating leases amount to US$163,148,107, with a total lease liability of US$123,603,076 as of September 30, 2025[80] Miscellaneous - The Company adopted ASU 2023-07 on January 1, 2024, which did not have a material impact on its consolidated financial statements[66] - The Company entered into a non-binding Letter of Intent to acquire 100% of Leopard Transnational Inc., a logistics provider with approximately 360,000 square feet of U.S. warehouse space[118] - The Company recorded depreciation expenses of $682,244 for the three months ended September 30, 2025, compared to $578,432 for the same period in 2024, indicating an increase of approximately 18%[71]
Armlogi Holding Corp.(BTOC) - 2026 Q1 - Quarterly Report