Revenue Performance - Revenue for Q3 2025 was $4,494,932, representing a 20.3% increase from $3,736,672 in Q3 2024[117] - Import-related revenue surged to $1,576,960, a 114.6% increase compared to $734,691 in Q3 2024[118] - Revenue from scrap metal increased by 115.9%, reaching $716,097, up from $331,681 in the prior-year quarter[119] - Revenue for the nine months ended September 30, 2025, was $12,275,466, a 1% increase from $12,167,956 in 2024, primarily driven by higher volumes in import, metal, and log commodity transport[129] - Import revenue increased by 30.6% to $3,679,425, attributed to strategic client acquisition and a new versatile chassis fleet[131] - Scrap metal revenue rose by 58.5% to $1,397,093, driven by increased scrap generation and recycling activity[132] Expenses and Losses - General and administrative expenses rose by 527% to $5,600,635, primarily due to professional fees and stock-based compensation of $3,781,000[124] - Net loss for Q3 2025 was $4,146,657, a significant increase from a net loss of $27,522 in Q3 2024[126] - General and administrative expenses surged by 357% to $8,550,152, primarily due to professional fees from going public and stock-based compensation of $4,766,550[138] - Net loss for the nine months ended September 30, 2025, was $(6,206,653), a significant increase from a net income of $227,686 in 2024, largely due to increased general and administrative expenses[140] Operational Highlights - The company secured a partnership with a New Jersey freight broker, expected to generate over $2.1 million in additional revenue in 2025[112] - A memorandum of understanding was executed with the Chancay, Peru municipality to explore logistics improvements, with potential container volume exceeding major U.S. ports[112] - The company expanded import logistics through a partnership with a Vietnamese freight company, projected to drive 30% year-over-year revenue growth in 2025[112] - Total Number of Loads Completed (NLC) decreased by 2.6% to 16,669, with notable declines in Waste Paper and Plastic, while Metal and Import segments showed growth[149] Cash Flow and Financing - Cash at the end of the period was $463,352, down from $557,619 at the beginning of the period, reflecting net cash used in operations of $(1,584,551)[150] - Cash used in investing activities increased significantly to $(6,262,944) due to purchases of property and equipment and issuance of notes receivable[154] - The company anticipates that current cash levels will be sufficient for at least the next 12 months, but may require additional resources for future expansions or acquisitions[151] - Financing activities generated net cash of $7,753,228 for the nine months ended September 30, 2025, an increase of $7,335,356 compared to $417,872 for the same period in 2024[155] - The company intends to fund its contractual obligations of $573,538 as of September 30, 2025, with working capital, with $306,024 due in the following quarter[156] Initial Public Offering (IPO) - The initial public offering (IPO) on January 23, 2025, raised total gross proceeds of $10,000,000, resulting in net proceeds of approximately $8.28 million after expenses[159] - The company issued 2,500,000 shares at a purchase price of $3.72 per share, which is 93% of the public offering price of $4.00[157] - The IPO Registration Statement included an additional 375,000 shares available for sale upon full exercise of the underwriters' over-allotment option, which expired unexercised[161] Accounts Receivable and Credit Losses - As of September 30, 2025, accounts receivable net balance was $1,512,449, up from $1,203,001 as of December 31, 2024, with an allowance for credit losses of $123,371[166] - The company has adopted the current expected credit loss model to estimate expected credit losses based on specific accounts and customer payment ability[166] - The company has not recognized any amounts from uncertain tax positions for the nine months ended September 30, 2025 and 2024[170] Revenue Recognition - Revenue is recognized at the point in time when truckload services are completed, with no contract liability balances except for amounts billed before service[165] - The company has no off-balance sheet arrangements that could impact its financial condition[162]
Toppoint Holdings Inc(TOPP) - 2025 Q3 - Quarterly Report