Transportation and Logistics Systems, Inc. Announces Financial Results for the Year Ended December 31, 2021

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[{"type":"text","content":"Unqualified Audit Opinion Highlights Strengthened Financial PositionJUPITER, FL / ACCESSWIRE / April 1, 2022 / Transportation and Logistics Systems, Inc. (OTCQB:TLSS), ("TLSS" or the "Company"), a logistics service provider, announced today that on March 31, 2022, it filed its Annual Report on Form 10-K for the calendar year ended December 31, 2021.Sebastian Giordano, Chairman and CEO of TLSS, commented, "Undoubtedly, the highlight of this filing is that the Company received an unqualified audit opinion. Our significantly improved financial position was further evidenced by the fact that between December 31, 2020, and December 31, 2021, the Company reduced its liabilities by 95% from $20 million to $1 million; increased its shareholder equity by $24.5 million from a deficit of $16 million to equity of $8.5 million; and turned a $16.6 million working capital deficit into a positive working capital of $5.7 million, the latter a major contributing factor in resolving prior going concern issues. Finally, during the first quarter of 2022, we took decisive actions to rectify internal control procedure issues through the efforts of our new CFO and established proper corporate governance with the addition of two new independent board members and the formation of the appropriate board committees. In our opinion, these factors clearly demonstrate the Company's ability and resolve to properly position the Company for growth."Financial Results for the Year Ended December 31, 2021Revenues for the year ended December 31, 2021, decreased $20,331,000, or 78.7%, to $5,495,000, as compared to $25,827,000, for the year ended December 31, 2020, due primarily to the cessation of the Company's unprofitable Amazon related businesses through its two former subsidiaries. The Company's net income for the year ended December 31, 2021, was $6,254,000, primarily consisting of: (i) a gain on deconsolidation of subsidiaries of $12,363,000; (ii) derivative income of $3,284,000; (iii) gain on debt extinguishment of $1,714,000; and (iv) other income of $195,000, all of which were partially offset by: (i) a loss from operations of $6,445,000; (ii) warrant exercise inducement expense of $4,432,000 and (iii) interest expense of $425,000. This compared to a net loss of $42,782,000 for the year ended December 31, 2020.Net income attribut...

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