Callan JMB Inc. Reports 19% Revenue Decline and Operating Loss in Q1 2025

Callan JMB Inc., formerly known as Coldchain Technology Services, LLC, reported a significant decline in financial performance for the first quarter of 2025 compared to the same period in 2024. The company generated revenue of $1.45 million, down 19% from $1.79 million in the prior year. This decrease was attributed to reduced demand for emergency preparedness services from state and local governments. The cost of revenue also fell to $833,437 from $1.07 million, resulting in a gross profit of $615,940, a 14% decline from $717,583 in the previous year.

Operating expenses surged dramatically, increasing by 130% to $1.85 million from $805,042 in the first quarter of 2024. This rise was primarily due to the transition from an LLC to a corporation, which necessitated putting the CEO on payroll and hiring additional staff in anticipation of the company's initial public offering (IPO). The company also incurred higher consulting and professional fees related to the IPO process, which contributed to the overall increase in expenses. Consequently, Callan JMB Inc. reported an operating loss of $1.24 million, compared to a loss of $87,459 in the same quarter last year.

In terms of strategic developments, Callan JMB Inc. completed its IPO in February 2025, raising approximately $4.68 million in net proceeds after underwriting discounts and commissions. The company issued 1.28 million shares at $4.00 each, with an additional 164,000 shares sold through an over-allotment option. This capital infusion is expected to support the company's growth initiatives and operational needs. Additionally, the company granted stock warrants to underwriters as part of the IPO, further enhancing its capital structure.

Operationally, Callan JMB Inc. reported a cash balance of $5.22 million as of March 31, 2025, a significant increase from $1.66 million a year earlier. However, cash used in operating activities was $1.56 million, a stark contrast to the cash provided in the same period last year. The company’s employee headcount has also increased as it prepares for future growth, reflecting its strategic focus on expanding its service offerings and enhancing customer relationships.

Looking ahead, Callan JMB Inc. aims to leverage its recent IPO to strengthen its market position and expand its service lines. The company recognizes the need to adapt to changing market conditions and customer demands, particularly in the emergency preparedness sector. Management remains optimistic about future growth opportunities, although they acknowledge the challenges posed by current market dynamics. The company plans to continue investing in its operational capabilities and customer engagement strategies to drive long-term success.