Freight Technologies Announces Full Year 2024 Results and Outlook for 2025
Gross margin % improvement | Lower net loss | Improved cash flow from operations
HOUSTON, April 14, 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, today announced its results for the full year ended December 31, 2024.
"2024 was a transformative year for Fr8Tech, highlighted by improvements across several key metrics including gross margins and cash flow from operations. In July, we launched Waavely, a state-of-the-art platform for ocean freight booking and management which continues to successfully handle ocean freight. The Company also on-boarded many new customers to its platform in 2024, with continued momentum in the first quarter 2025, including new or expanded agreements with several multi-national enterprises. In 2025 we continue to demonstrate our commitment to innovation, with the successful launch of Fleet Rocket, our cost-effective Transportation Management System $(TMS.AU)$ for brokers, shippers and other logistics operators, and the introduction of our advanced AI Tendering Bot, designed to automate and streamline the load tendering process. Cumulatively, these activities and advancements position Fr8Tech as a comprehensive digital freight-logistics technology company. We remain focused on the expansion and adoption of our innovative and cost-effective solutions, and our automation-driven service offerings and lean corporate positioning enable the Company and our customers to best navigate the current macroeconomic trade environment," said Javier Selgas, CEO of Fr8Tech.
Business Highlights
-- The Company released many new features and capabilities to Fr8App
including:18 tracking integrations with GPS providers; ETA calculations;
automatic status updates; WhatsApp notifications; bespoke integrations
with customer platforms; facilities management; and, new reports and
analytics.
-- The Company made substantial progress with the development and showcasing
of Fleet Rocket, which was formally launched in February 2025.
-- Waavely, an ocean freight booking and management platform for container
shipments, was launched in July 2024.
-- Fr8Fleet, the Company's dedicated capacity service, realized 42%
year-over-year revenue growth.
-- With a more than 80% response rate on a customer satisfaction survey,
Fr8Tech received highly positive customer feedback on logistics and
customer service with average scores greater than four out of five.
-- The Company achieved ISO 9001:2015 certification, demonstrating its
commitment to quality controls and best-in-class management standards.
Financial Highlights
-- Gross margin percentage increased 1.8% year-over-year to 9.8% in 2024
from 7.9% in 2023 as the Company actively sought more profitable routes
in the cross-border and domestic spot markets and made operational
efficiency improvements to its dedicated services.
-- Cash flow from operations improved by $1.6 million year-over-year to
-$4.2 million from -$5.8 million in 2023 primarily due to improved
margins, faster collections and better working capital management.
-- Net loss improved year-over-year by $3.7 million to -$5.6 million in 2024
from -$9.3 million in 2023, despite lower revenue, due to higher gross
margin percentage, lower operating expenses and efficiencies, and
extinguishing long-term debt.
2025 Annual Outlook
The Company expects to continue to improve its financial results in 2025, as it transitions further to a leading logistics technology provider with its software offering and AI-powered solutions across the Fr8App platform.
-- Revenue: $20 million to $25 million -- Gross Profit: $2 million to $3 million -- Operating Loss: -$4 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 $(OTR.AU)$ 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.
Year ended December 31, 2024 as compared to the year ended December 31, 2023
Schedule I
FREIGHT TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
Years Ended December 31,
----------------------------
2024 2023
--------------- -----------
Revenue $ 13,728,922 $17,060,753
Cost and expenses
Cost of revenue (exclusive of
depreciation and amortization
shown separately below) 12,389,520 15,709,673
Compensation and employee benefits 5,349,764 5,963,713
General and administrative 1,983,901 3,163,639
Sales and marketing 65,574 80,328
Depreciation and amortization 430,414 404,598
---------- ----------
Total cost and expenses 20,219,173 25,321,951
---------- ----------
Operating loss (6,490,251) (8,261,198)
Other income and expenses
Interest expense, net (673,858) (807,939)
Other expense, net - (498,917)
Gain from extinguishment of debts 1,607,766 -
Change in fair value of
convertible note 22,602 345,396
---------- ----------
Income (loss) before provision
for income taxes (5,533,741) (9,222,658)
Income tax expense 67,486 104,948
---------- ----------
Net loss $ (5,601,227) $(9,327,606)
Net loss per share attributable
to ordinary shareholders, basic
and diluted $ (6.14) $ (194.87)
========== ==========
Weighted average number of
ordinary shares 912,837 47,867
========== ==========
Net loss $ (5,601,227) $(9,327,606)
Other comprehensive gain (loss) net
of tax
Foreign currency translation gain
(loss) (1,740,552) 452,917
---------- ----------
Comprehensive loss $ (7,341,779) $(8,874,689)
========== ==========
The accompanying notes are an integral part of these consolidated financial statements.
Schedule II
FREIGHT TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31,
---------------------------
2024 2023
------------- ------------
ASSETS:
Current assets:
Cash and cash equivalents $ 204,032 $ 1,560,105
Accounts receivable, net 3,533,330 5,360,493
Unbilled receivables 520,037 961,747
Prepaid expenses and other
current assets 792,147 1,270,744
----------- -----------
Total current assets 5,049,546 9,153,089
Capitalized software, net 574,109 771,133
Property and equipment, net 13,238 18,239
Other long-term assets 39,988 80,674
Security deposits 7,818 7,818
Intangible assets, net 5,546 6,359
----------- -----------
Total assets $ 5,690,245 $ 10,037,312
=========== ===========
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT):
Current liabilities:
Accounts payable $ 1,442,517 $ 1,875,727
Accrued expenses 1,280,563 2,239,171
Short-term borrowings 3,343,710 2,819,620
Income tax payable 278,215 220,180
Insurance financing payable - 13,191
----------- -----------
Total current liabilities 6,345,005 7,167,889
Convertible notes payable-- long
term - 242,442
----------- -----------
Total liabilities 6,345,005 7,410,331
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY (DEFICIT)
Series A preferred stock, $0.0001
par value, (*) shares
authorized; 1,815,438 and
162,732,288 issued and
outstanding at December 31, 2024
and 2023, respectively 182 16,274
Series B preferred stock, $0.0001
par value, 21,000,000 shares
authorized; 1,262,074 and
1,262,074 issued and outstanding
at December 31, 2024 and 2023,
respectively 126 126
Series seed preferred stock,
$0.0001 par value, 25,000 shares
authorized; 7,020 and 7,020
issued and outstanding at
December 31, 2024 and 2023,
respectively - -
Ordinary shares, no par value,
(**) unlimited shares
authorized; 2,185,074 and
2,191,924 shares ($1.10 par
value in 2023) issued and
outstanding at December 31, 2024
and 2023, respectively - 2,411,118
Additional paid-in capital 45,510,375 39,023,126
Accumulated deficit (44,916,779) (39,315,551)
Accumulated other comprehensive
income (loss) (1,248,664) 491,888
----------- -----------
Total stockholders' equity
(deficit) (654,760) 2,626,981
----------- -----------
Total liabilities and stockholders'
equity (deficit) $ 5,690,245 $ 10,037,312
=========== ===========
(*) 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.
The accompanying notes are an integral part of these consolidated financial statements.
Schedule III
FREIGHT TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31,
---------------------------
2024 2023
------------- ------------
Cash flows from operating
activities:
Net loss $ (5,601,227) $ (9,327,606)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Depreciation and amortization 430,414 404,598
Share-based compensation 981,023 1,153,787
Non-cash interest - 449,147
Change in fair market value of
convertible note (22,602) (345,396)
Conversion inducement expense - 129,259
Gain from extinguishment of debt (1,607,766) -
Changes in operating assets and
liabilities:
Accounts receivable 1,120,176 45,383
Unbilled receivables 334,728 1,070,440
Prepaid expense and other
assets 591,263 288,272
Security deposits - 11,457
Accounts payable (272,319) (181,880)
Accrued expenses (217,893) 435,193
Income tax payable 58,035 76,662
----------- -----------
Net cash used in operating
activities (4,206,168) (5,790,684)
----------- -----------
Cash flows from investing
activities:
Capitalization of software
development costs (336,153) (328,645)
Purchase of property and
equipment (9,570) (34,724)
----------- -----------
Net cash used in investing
activities (345,723) (363,369)
----------- -----------
Cash flows from financing
activities:
Proceeds from convertible notes - 7,675,000
Proceeds from notes payable, net
of discounts 875,000 -
Repayment of insurance financing
payable (236,082) (346,524)
Proceeds from issuance of common
stock from ATM Offering 3,079,016 -
Repayment of short-term
borrowings (16,378,757) (19,385,421)
Proceeds from short-term
borrowings 16,902,846 18,857,667
----------- -----------
Net cash provided by financing
activities 4,242,023 6,800,722
----------- -----------
Net (decrease) increase in cash and
cash equivalents (309,868) 646,669
Effect of exchange rate changes on
cash and cash equivalents (1,046,205) (99,564)
Cash and cash equivalents at
beginning of the period 1,560,105 1,013,000
----------- -----------
Cash, cash equivalents and
restricted cash at end of the
period $ 204,032 $ 1,560,105
=========== ===========
Supplemental disclosure of cash
flow information
Cash paid for interest $ 675,628 $ 816,819
Supplemental disclosure of non-cash
activity
Financing of insurance premiums $ 222,891 $ 341,653
=========== ===========
Conversion of convertible notes to
preferred stock $ - $ 7,054,065
=========== ===========
Conversion of convertible notes to
ordinary shares $ - $ 1,040,000
=========== ===========
Conversion of preferred stock to
ordinary shares $ - $ 1,368,907
=========== ===========
Conversion of warrants to ordinary
shares $ - $ 60,253
=========== ===========
Reconciliation of cash, cash
equivalents, and restricted cash
reported in the consolidated
balance sheet
Cash and cash equivalents $ 204,032 $ 1,560,105
=========== ===========
Total cash, cash equivalents and
restricted cash shown in the
consolidated statement of cash
flows $ 204,032 $ 1,560,105
=========== ===========
The accompanying notes are an integral part of these consolidated financial statements.
Fr8Tech Contact: Jason Finkelstein IGNITION Investor Relations investors@fr8technologies.com
(END) Dow Jones Newswires
April 14, 2025 09:00 ET (13:00 GMT)
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