FRGT earnings analysis
What we found in FRGT's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Fr8Tech (FRGT) describes a strategy focused on expanding a cross-border digital freight marketplace and complementary SaaS products (Fr8App, Fr8Now, Fr8Fleet, Waavely, Fleet Rocket) and invested in product development and quality (ISO 9001:2015). Financially the company reduced its net loss to $(5,601,227) in 2024 from $(9,327,606) in 2023, generated $13,729,000 of revenue in the reporting period, but ended the year with only $204,032 of cash and an accumulated deficit of $(44,916,779), and the auditors included an explanatory paragraph raising substantial doubt about the company’s ability to continue as a going concern. Management completed an ATM program (528,576 shares sold for net proceeds of $2,912,266) and states expected funding is sufficient through December 31, 2025 and at least 12 months beyond that date.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue reported for FY period
- The filing reports total revenue of $13,729,000 for the period (reported in the earnings row).
- Reduced net loss year-over-year
- Net loss improved to $(5,601,227) in 2024 from $(9,327,606) in 2023, per the filing's 'Historical Performance' section.
- Product launches and roadmap progress
- Management launched Waavely (ocean freight booking) in July 2024 and reports Fleet Rocket (TMS) development completed initial demonstrations with a formal launch in February 2025.
- ATM raised near-term liquidity
- The company sold 528,576 shares under an ATM for net proceeds of $2,912,266 after paying $122,809 to the sales agent and $175,000 in legal and accounting costs; the ATM capacity was increased to $4,750,000.
- Quality certification achieved
- The company achieved ISO 9001:2015 certification for both its U.S. and Mexico operations (stated in Fiscal Year 2024 Highlights).
- Gross profit and cash flow trend improved
- Management reports 'higher gross profit earned in 2024 verse the prior year' and 'helped improve cash flows from operations year-over-year' due to more disciplined customer and route selections (MD&A).
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Going concern — auditor explanatory paragraph
- The audited consolidated financial statements for the year ended December 31, 2024 include an explanatory paragraph stating there are conditions that 'raise substantial doubt about our ability to continue as a going concern.'
- Very limited cash runway at year-end
- As of December 31, 2024 the company had cash of $204,032 and an accumulated deficit of $(44,916,779); management says expected funds are sufficient only through December 31, 2025 and for 'at least 12 months beyond that period.'
- History of operating losses and potential dilution
- Fr8Tech has a history of significant operating losses, with net losses of $(5,601,227) in 2024 and $(9,327,606) in 2023, and warns that raising additional capital may cause dilution to existing shareholders (Risk Factors and MD&A).
- Material weaknesses in internal controls
- The filing discloses identified 'material weaknesses in our internal control over financial reporting' that may impair accurate and timely financial reporting (Item 1A / Controls disclosure).
- Nasdaq continued listing risk
- The company has previously 'received written notifications from The Nasdaq Stock Market LLC informing us that we no longer meet certain continued listing requirements' and warns there is no assurance an active trading market will be sustained (Risk Factors).
- Trade-policy / cross-border exposure
- Management states cross-border trade is a growth driver but cautions that 'recently announced tariffs and other possible protectionist measures' could slow trade despite Mexico exports to the U.S. growing 6.4% in 2024, introducing downside risk to demand for its services.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-6.14
What they said about what is next.
The 10-K does not provide numeric FY guidance; MD&A states the company 'expects' existing cash resources plus expected ATM and planned financings will be sufficient to carry out planned operations 'through December 31, 2025 and for at least 12 months beyond that period.'
The filing reads about the same as the one before it.
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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