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Gross margin % improvement | Lower net loss | Fleet Rocket launch
HOUSTON, May 20, 2025 (GLOBE NEWSWIRE) -- Freight Technologies, Inc. (Nasdaq: FRGT; “Fr8Tech” or the “Company”), a logistics management innovation company, offering a diverse portfolio of technology-driven solutions, released its results for the first quarter ended March 31, 2025, on May 16, 2025.
“In the first quarter of 2025, the Company continued to build on the transformative progress of 2024. We delivered further improvements across several key metrics including gross margins and cash flow from operations, extended agreements with several multinational enterprises, successfully launched Fleet Rocket, and introduced our advanced AI-powered Tendering Bot. Despite initial headwinds from a challenging and uncertain macroeconomic trade environment, we were able to progress the profitability of the brokerage business and advance our solution set. We remain focused on our mission and commitment to leading digital logistics innovation,” said Javier Selgas, CEO of Fr8Tech.
Business Highlights
Launched Fleet Rocket, a cost-effective Transportation Management System (TMS) software solution to optimize freight brokerage and shipping operations.
Released several new features and capabilities to Fr8App and Fr8Fleet including: AI-powered Tending Bot; mobile app for dispatchers; new tracking integrations with GPS providers and facility locations; attendance control; WhatsApp notifications updates; multi-stop documentation; and additional integrations with customer platforms.
Started the Fr8Tech AI Lab in collaboration with the University of Monterrey to sustain ongoing development of AI-based technologies to transform logistics operations.
Purchased $5.2 million of FET tokens to initiate a cryptocurrency treasury and to collaborate with the Fetch Foundation to accelerate AI-driven product developments.
Financial Highlights
Gross margin percentage increased 7.0% year-over-year to 12.4% in Q1 2025 from 5.4% in Q1 2024, as the Company remained focused on profitable routes in the cross-border and domestic spot markets and realized efficiencies in its dedicated services.
Cash flow from operations improved by $0.2 million year-over-year to ($3.1) million in Q1 2025 from ($3.3) million in Q1 2024 primarily due to improved margins.
Net loss improved year-over-year by $0.7 million to ($1.6) million in Q1 2025 from ($2.3) million in Q1 2024, on higher gross margins percentage and lower operating expenses.
2025 Annual Outlook
Primarily as a result of the expected economic impact of higher tariffs on US-Mexico cross border trade, the Company is lowering the high-end of its revenue and margin outlook for 2025. The Company believes it can recover most, if not all, cross-border volume with domestic shipments across Fr8App and Fr8Fleet, but remains cautious given the current uncertainty surrounding official trade policy between the two countries. Revised outlook for 2025 is:
Revenue: $20 million to $23 million
Gross Profit: $2 million to $2.8 million
Operating Loss: -$4.2 million to -$5.5 million
About Freight Technologies Inc.
Freight Technologies (Nasdaq: FRGT) (“Fr8Tech") is a technology company offering a diverse portfolio of proprietary platform solutions powered by AI and machine learning to optimize and automate the supply chain process. Focused on addressing the distinct challenges within the supply chain ecosystem, the Company’s portfolio of solutions includes the Fr8App platform for seamless Over-the-Road (OTR) B2B cross-border shipping across the USMCA region; Fr8Now, a specialized service for less-than-truckload (LTL) shipping; Fr8Fleet, a dedicated capacity service for enterprise clients in Mexico; Waavely, a digital platform for efficient ocean freight booking and management of container shipments between North America and ports worldwide and Fleet Rocket a nimble, scalable and cost-effective Transportation Management System (TMS) for brokers, shippers, and other logistics operator Together, each product is interconnected within a unified platform to connect carriers and shippers and significantly improve matching and operation efficiency via innovative technologies such as live pricing and real-time tracking, digital freight marketplace, brokerage support, transportation management, fleet management, and committed capacity solutions. The company is headquartered in Houston, Texas. For more information, please visit fr8technologies.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Fr8Tech’s and Fr8App Inc.’s actual results may differ from their expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements.
These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside Fr8Tech’s and Fr8App Inc.’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the inability to obtain or maintain the listing of Fr8Tech’s ordinary shares on Nasdaq; (2) changes in applicable laws or regulations; (3) the possibility that Fr8Tech or Fr8App Inc. may be adversely affected by other economic, business and/or competitive factors; (4) risks relating to the uncertainty of the projected financial information with respect to Fr8App Inc.; (5) risks related to the organic and inorganic growth of Fr8App Inc.’s business and the timing of expected business milestones; and (6) other risks and uncertainties identified, including those under “Risk Factors,” to be filed in Fr8Tech other filings with the Securities Exchange Commission.
Fr8Tech cautions that the foregoing list of factors is not exclusive. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Fr8Tech and Fr8App Inc. caution readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Fr8Tech and Fr8App Inc. do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in their expectations or any change in events, conditions or circumstances on which any such statement is based.
Quarter ended March 31, 2025 as compared to the quarter ended March 31, 2024
Schedule I
FREIGHT TECHNOLOGIES, INC. AND SUBSIDIARIES | ||||||||
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| Three Months Ended March 31 |
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| 2025 |
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| 2024 |
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Revenue |
| $ | 4,100,640 |
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| $ | 4,287,760 |
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Cost and expenses |
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Cost of revenue (exclusive of depreciation and amortization shown separately below) |
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| 3,593,300 |
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| 4,056,627 |
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Compensation and employee benefits |
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| 1,254,789 |
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|
| 1,454,341 |
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General and administrative |
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| 596,753 |
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|
| 731,537 |
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Sales and marketing |
|
| 16,045 |
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|
| 18,794 |
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Depreciation and amortization |
|
| 103,854 |
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|
| 110,207 |
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Total cost and expenses |
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| 5,564,741 |
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|
| 6,371,506 |
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Operating loss |
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| (1,464,101 | ) |
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| (2,083,746 | ) |
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Other income and expenses |
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Interest expense, net |
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| (134,864 | ) |
|
| (172,704 | ) |
Income (loss) before provision for income taxes |
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| (1,598,965 | ) |
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| (2,256,450 | ) |
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Income tax expense |
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| 3,081 |
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| - |
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Net loss |
| $ | (1,602,046 | ) |
| $ | (2,256,450 | ) |
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Net loss per share attributable to ordinary shareholders, basic and diluted |
| $ | (0.73 | ) |
| $ | (10.76 | ) |
Basic and diluted weighted average shares outstanding |
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| 2,182,281 |
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| 209,737 |
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Net loss |
| $ | (1,602,046 | ) |
| $ | (2,256,450 | ) |
Other comprehensive gain (loss) net of tax |
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Foreign currency translation gain (loss) |
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| 20,820 |
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| 161,140 |
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Comprehensive loss |
| $ | (1,581,226 | ) |
| $ | (2,095,310 | ) |
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The accompanying notes are an integral part of these consolidated financial statements.
Schedule II
FREIGHT TECHNOLOGIES, INC. AND SUBSIDIARIES | ||||||||
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| March 31, |
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| December 31, |
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ASSETS: |
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Current assets: |
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Cash and cash equivalents |
| $ | 416,476 |
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| $ | 204,032 |
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Accounts receivable, net |
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| 3,843,152 |
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| 3,533,330 |
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Unbilled receivables |
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| 2,038,500 |
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| 520,037 |
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Prepaid expenses and other current assets |
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| 1,312,075 |
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| 792,147 |
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Total current assets |
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| 7,610,203 |
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| 5,049,546 |
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Capitalized software, net |
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| 556,641 |
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| 574,109 |
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Property and equipment, net |
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| 10,818 |
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| 13,238 |
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Other long-term assets |
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| 29,228 |
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| 39,988 |
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Security deposits |
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| 7,818 |
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| 7,818 |
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Cryptocurrencies |
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| 5,200,000 |
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|
| - |
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Other intangible assets, net |
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| 5,342 |
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| 5,546 |
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Total assets |
| $ | 13,420,050 |
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| $ | 5,690,245 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT): |
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Current liabilities: |
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Accounts payable |
| $ | 1,717,688 |
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| $ | 1,442,517 |
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Accrued expenses |
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| 1,286,134 |
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| 1,280,563 |
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Short-term borrowings |
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| 3,812,841 |
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| 3,343,710 |
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Income tax payable |
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| 281,296 |
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| 278,215 |
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Insurance financing payable |
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| 162,993 |
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|
| - |
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Total current liabilities |
|
| 7,260,952 |
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|
| 6,345,005 |
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Total liabilities |
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| 7,260,952 |
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| 6,345,005 |
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COMMITMENTS AND CONTINGENCIES |
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STOCKHOLDERS’ EQUITY (DEFICIT) |
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Series A preferred stock, $0.0001 par value, unlimited shares authorized; 5,667,418 and 1,815,438 issued and outstanding at March 31, 2025 and December 31, 2024, respectively |
|
| 567 |
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| 182 |
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Series B preferred stock, $0.0001 par value, 21,000,000 shares authorized;1,262,074 issued and outstanding at March 31, 2025 and December 31, 2024 |
|
| 126 |
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|
| 126 |
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Series seed preferred stock, $0.0001 par value, 25,000 shares authorized; 7,020 issued and outstanding at March 31, 205 and December 31, 2024 |
|
| - |
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| - |
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Ordinary shares, no par value, (**) unlimited shares authorized; 2,265,074 and 2,185,074 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively |
|
| - |
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|
| - |
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Additional paid-in capital |
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| 53,905,074 |
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|
| 45,510,375 |
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Accumulated deficit |
|
| (46,518,825 | ) |
|
| (44,916,779 | ) |
Accumulated other comprehensive loss |
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| (1,227,844 | ) |
|
| (1,248,664 | ) |
Total stockholders’ equity (deficit) |
|
| 6,159,098 |
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|
| (654,760 | ) |
Total liabilities and stockholders’ equity (deficit) |
| $ | 13,420,050 |
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| $ | 5,690,245 |
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(*) | List of authorized shares for Series A preferred |
a. | Series A1A preferred shares: 10,000,000 authorized shares |
b. | Series A2 preferred shares: 3,000,000 authorized shares |
c. | Series A4 preferred shares: unlimited authorized shares |
(**) | Ordinary Share par value was change to no par value in June 2024. |
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The accompanying notes are an integral part of these consolidated financial statements.
Schedule III
FREIGHT TECHNOLOGIES, INC. AND SUBSIDIARIES | ||||||||
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| Three Months Ended March 31, |
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| 2025 |
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| 2024 |
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Cash flows from operating activities: |
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Net loss |
| $ | (1,602,046 | ) |
| $ | (2,256,450 | ) |
Adjustments to reconcile net loss to net cash used in operating activities: |
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Depreciation and amortization |
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| 103,854 |
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| 110,207 |
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Share-based compensation |
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| 225,083 |
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| 263,188 |
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Non-cash interest |
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| - |
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| 464,726 |
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Changes in operating assets and liabilities: |
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Accounts receivable |
|
| (249,771 | ) |
|
| (887,971 | ) |
Unbilled receivables |
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| (1,504,593 | ) |
|
| 159,797 |
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Prepaid expense and other assets |
|
| (315,145 | ) |
|
| 2,534 |
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Accounts payable |
|
| 258,232 |
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|
| (187,550 | ) |
Accrued expenses |
|
| (15,124 | ) |
|
| (930,936 | ) |
Income tax payable |
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| 3,081 |
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Net cash used in operating activities |
|
| (3,096,429 | ) |
|
| (3,262,455 | ) |
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Cash flows from investing activities: |
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Capitalization of software development costs |
|
| (73,499 | ) |
|
| (86,399 | ) |
Purchase of property and equipment |
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| - |
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| (1,881 | ) |
Net cash used in investing activities |
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| (73,499 | ) |
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| (88,280 | ) |
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Cash flows from financing activities: |
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Proceeds from notes payable, net of discounts |
|
| - |
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| 750,000 |
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Repayment of insurance financing payable |
|
| (17,418 | ) |
|
| (31,429 | ) |
Repayment of short-term borrowings |
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| (2,979,508 | ) |
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| (3,960,397 | ) |
Proceeds from short-term borrowings |
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| 3,448,639 |
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| 5,411,274 |
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Proceeds from the issuance of Series A4 Shares |
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| 2,970,000 |
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| - |
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Transaction cost relating to issuance of stock |
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| - |
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| (20,250 | ) |
Net cash provided by financing activities |
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| 3,421,713 |
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| 2,149,198 |
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Net increase (decrease) in cash and cash equivalents |
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| 251,785 |
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| (1,201,537 | ) |
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Effect of exchange rate changes on cash and cash equivalents |
|
| (39,341 | ) |
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| 24,414 |
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Cash and cash equivalents at beginning of the period |
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| 204,032 |
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| 1,560,105 |
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Cash, cash equivalents and restricted cash at end of the period |
| $ | 416,476 |
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| $ | 382,982 |
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Supplemental disclosure of cash flow information |
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Cash paid for interest |
| $ | 134,864 |
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| $ | 173,465 |
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Supplemental disclosure of non-cash activity |
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Financing of insurance premiums |
| $ | 180,411 |
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| $ | 222,891 |
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Issuance of 2,311,248 Series A4 preferred stock |
| $ | 5,200,000 |
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| $ | - |
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Reconciliation of cash, cash equivalents, and restricted cash reported in the consolidated balance sheet |
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Cash and cash equivalents |
| $ | 416,476 |
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| $ | 382,982 |
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Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows |
| $ | 416,476 |
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| $ | 382,982 |
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The accompanying notes are an integral part of these consolidated financial statements.
CONTACT: Fr8Tech Contact: Jason Finkelstein IGNITION Investor Relations investors@fr8technologies.com
