Based on the provided financial report articles, I generated the title for the article: **"FRGT's Financial Report: Series A, B, and Seed Preferred Stock, Common Stock, Additional Paid-in Capital, Retained Earnings, and Accumulated Other Comprehensive Income"** Please note that the title is generated based on the content provided, and it may not be the exact title used in the original article.

Press release · 04/14 11:30
Based on the provided financial report articles, I generated the title for the article: **"FRGT's Financial Report: Series A, B, and Seed Preferred Stock, Common Stock, Additional Paid-in Capital, Retained Earnings, and Accumulated Other Comprehensive Income"** Please note that the title is generated based on the content provided, and it may not be the exact title used in the original article.

Based on the provided financial report articles, I generated the title for the article: **"FRGT's Financial Report: Series A, B, and Seed Preferred Stock, Common Stock, Additional Paid-in Capital, Retained Earnings, and Accumulated Other Comprehensive Income"** Please note that the title is generated based on the content provided, and it may not be the exact title used in the original article.

The financial report presents the financial statements of the company for the fiscal year ended December 31, 2024, as well as the six months ended June 30, 2024, and the year ended December 31, 2023. The company reported total assets of $[amount] as of December 31, 2024, and total liabilities of $[amount]. The company’s net income for the fiscal year ended December 31, 2024, was $[amount], compared to a net loss of $[amount] for the same period in 2023. The company’s cash and cash equivalents increased by $[amount] to $[amount] as of December 31, 2024, compared to $[amount] as of December 31, 2023. The company’s common stock outstanding as of December 31, 2024, was [amount], and the company’s preferred stock outstanding as of December 31, 2024, was [amount].

Overview of Fr8Tech’s Financial Performance

Fr8Tech, a technology-enabled freight logistics company, has experienced a decline in its financial performance over the past two years. The key highlights are:

Revenues

  • Revenues decreased from $17.1 million in 2023 to $13.7 million in 2024, a 19.5% year-over-year decline.
  • The revenue decline was primarily driven by a focus on higher margin customers, reduced spot market and dedicated service activity, and a weakening of the Mexican peso against the US dollar.

Costs and Expenses

  • Cost of revenue decreased from $15.7 million in 2023 to $12.4 million in 2024, a 21.1% year-over-year decline, in line with the revenue decrease.
  • Compensation and employee benefits expenses decreased from $6.0 million in 2023 to $5.3 million in 2024, a 10.3% decline, due to lower executive compensation and a weaker Mexican peso.
  • General and administrative expenses decreased from $3.2 million in 2023 to $2.0 million in 2024, a 37.7% decline, primarily due to favorable foreign exchange impacts and lower legal and insurance costs.

Net Loss

  • Net loss decreased from $9.3 million in 2023 to $5.6 million in 2024, a 40% improvement year-over-year.

Liquidity and Financial Position

  • Fr8Tech has historically relied on a combination of cash flows, debt, and equity financing to fund its operations.
  • As of December 31, 2024, Fr8Tech had an accumulated deficit of $44.9 million, short-term debt of $3.3 million, and a working capital deficit of $1.2 million.
  • Management has determined that Fr8Tech’s liquidity condition raises substantial doubt about its ability to continue as a going concern.

Cash Flows

  • Net cash used in operating activities decreased from $5.8 million in 2023 to $4.2 million in 2024, primarily due to lower net losses.
  • Net cash used in investing activities was $346 thousand in 2024, mostly for software development.
  • Net cash provided by financing activities was $4.2 million in 2024, from equity issuances, promissory notes, and increased borrowings.

Research and Development

  • Fr8Tech has continuously invested in the development of its proprietary software and technology platforms, including the core Fr8App, Fr8Fleet, Fr8Now, and the newly launched Fleet Rocket TMS solution.
  • The company believes its intellectual property and technology are key competitive advantages, though it does not currently hold any patents or registered trademarks.

In summary, Fr8Tech has faced declining revenues and profitability over the past two years, leading to liquidity concerns and doubts about the company’s ability to continue as a going concern. The company has sought to address these challenges through cost-cutting measures, new product launches, and continued investment in its technology platform.