Fr8Tech(US:FRGT)2025-12-09 14:14Financial Performance - Revenue for the three months ended September 30, 2025, was $2,456,191, representing a 30% increase from $1,887,030 in the same period of 2024[10] - The net loss for the three months ended September 30, 2025, was $3,267,429, compared to a loss of $267,293 in the same period of 2024, indicating a substantial increase in losses[10] - The company reported a comprehensive loss of $3,201,694 for the three months ended September 30, 2025, compared to a gain of $148,007 in the same period of 2024[10] - For the nine months ended September 30, 2025, the company reported a net loss of $(4,220,237), compared to a net loss of $(4,478,299) for the same period in 2024, indicating a reduction in losses by approximately 5.8%[17] - The company reported a significant net loss of $3,267,429 for the period ending September 30, 2025[12] Assets and Liabilities - Total assets increased significantly to $12,201,412 as of September 30, 2025, compared to $5,690,245 as of December 31, 2024, marking a 114% growth[7] - Total current liabilities decreased to $5,917,313 as of September 30, 2025, down from $6,345,005 as of December 31, 2024, reflecting a 7% reduction[7] - The company’s accumulated deficit increased to $(49,137,016) as of September 30, 2025, from $(44,916,779) as of December 31, 2024[8] - Total stockholders' equity improved to $6,284,099 as of September 30, 2025, compared to a deficit of $(654,760) as of December 31, 2024[8] - As of September 30, 2025, the Company has total long-lived assets of $6,608,046, significantly up from $650,045 as of September 30, 2024, representing an increase of approximately 908%[98] Cash Flow and Liquidity - The company experienced negative cash flows from operations of $(4,199,260) for the nine months ended September 30, 2025, compared to $(2,950,069) for the same period in 2024, reflecting an increase in cash burn[20] - The company reported cash and cash equivalents of $291,940 at the end of the period, down from $497,498 at the same time last year[17] - The company’s liquidity condition raises substantial doubt about its ability to continue as a going concern for the next twelve months[23] Revenue Sources - The Company generates revenues primarily from freight transportation brokerage services, with revenue recognized when performance obligations are satisfied during the transit period[52] - Freight Transportation Brokerage revenue for the nine months ended September 30, 2025, was $6,971,075, up from $6,359,004 in 2024, indicating a growth of 9.6%[58] - Dedicated Capacity revenue decreased to $2,575,666 for the nine months ended September 30, 2025, from $3,653,628 in 2024, reflecting a decline of 29.5%[58] Shareholder Equity and Stock Issuance - The issuance of ordinary shares from the exercise of warrants contributed to an increase of 900,000 shares[12] - The Company has 27,090,093 Ordinary Share warrants outstanding as of September 30, 2025, following the exercise of 3,535,294 warrants during the nine months ended September 30, 2025[100] - The Company entered into an At The Market Offering Agreement to offer shares with an aggregate offering price of up to $2.3 million, issuing 528,576 shares for gross proceeds of $3,210,075 and net proceeds of $3,079,016 after expenses[115] Cryptocurrency Transactions - The Company held cryptocurrencies valued at $6,041,179 as of September 30, 2025, with FET tokens accounting for $6,020,640 of this total[75] - The Company recorded net realized losses across all cryptocurrency transactions of $(155,615) for the three months and $(183,613) for the nine months ending September 30, 2025[80] - The Company sold 414,721 FET tokens for approximately $232,411 on September 30, 2025[76] Expenses and Costs - The cost of revenue for the three months ended September 30, 2025, was $2,190,187, which is a 22% increase from $1,792,066 in the same period of 2024[10] - Share-based compensation for equity-based awards amounted to $748,290, impacting the overall equity position[12] - Advertising costs for the nine months ended September 30, 2025, totaled $8,394, compared to $556 for the same period in 2024[45] Debt and Financing - The Company has a convertible promissory note with a principal amount of up to $6,593,407, which carries an original issue discount of 9%[89] - The Company executed a Term Note Purchase Agreement for a term loan of $750,000 at an interest rate of 8% per annum, with a one-year duration[86] - The outstanding principal amount on short-term borrowings is $2,759,055 as of September 30, 2025, down from $3,343,710 as of December 31, 2024, indicating a reduction of approximately 17.5%[85]