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Earnings analysis · 10-K

FRGT earnings analysis

Filed April 14, 2025 · Our reading of the company's report

The latest report

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…

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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.

Read the original on SEC.gov

Reported figures

Earnings per share
$-6.14

What stood out

  • 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).

What to watch

  • 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.

Management's outlook

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.'

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.