Freight Technologies, Inc. (NASDAQ: FRGT) reported a net loss of $5.6 million for the fiscal year ending December 31, 2024, a significant improvement from the $9.3 million loss recorded in the previous year. Revenue for the year decreased by 19.5% to $13.7 million, down from $17.1 million in 2023. The decline in revenue was attributed to a strategic shift towards higher-margin customers and reduced activity in the spot market, alongside a depreciation of the Mexican peso against the U.S. dollar, which impacted revenue from peso-denominated contracts.
The company made notable operational changes during the year, including the launch of Waavely, an ocean freight booking platform, and Fleet Rocket, a Transportation Management System (TMS) software, which is set to enhance its service offerings. Additionally, Freight Technologies achieved ISO 9001:2015 certification for its operations in both the U.S. and Mexico, underscoring its commitment to quality management. The company also undertook a workforce reduction of approximately 20% in early 2025 to optimize resources and focus on its TMS software offering.
Freight Technologies reported a decrease in total assets to $5.7 million as of December 31, 2024, down from $10 million in the previous year. The company’s accumulated deficit increased to $44.9 million, with cash reserves dwindling to $204,032. The reduction in cash was primarily due to ongoing operational losses and a decrease in accounts receivable, which fell by 35.9% to $4.1 million. The company has relied on capital raises and debt financing to support its operations, including a recent At The Market (ATM) offering that generated $2.9 million in net proceeds.
Looking ahead, Freight Technologies anticipates that its growth strategy will focus on expanding its customer base and enhancing its technology offerings. The company plans to leverage its existing relationships and feedback from customers to drive adoption of its platform. However, management has expressed concerns regarding its ability to continue as a going concern, given its history of operating losses and the need for additional capital to fund ongoing operations. The company is actively exploring financing options to ensure it can sustain its business through at least December 2025.
About Freight Technologies, Inc.
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