Transportation & Logistics Systems, Inc. (TLSS) reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with total revenue recorded at $0, as all operations were classified as discontinued. This marks a stark contrast to the previous year, where the company generated $19.6 million in revenue. The company’s total operating expenses decreased to $1.87 million from $2.46 million in 2023, primarily due to reductions in compensation and related benefits, legal and professional fees, and general administrative expenses. The net loss for the year was $3.82 million, a notable improvement from the $14.26 million loss reported in 2023.
The filing indicates that TLSS underwent substantial operational changes, ceasing all logistics and transportation services by mid-February 2024. This decision followed the bankruptcy filings of its subsidiaries, including Freight Connections and Cougar Express, which were deconsolidated from the company’s financial statements. The company’s operational metrics reflect this shift, with discontinued operations resulting in a loss of $1.72 million for 2024, compared to a loss of $11.74 million in 2023. The company also reported a significant impairment loss of $555,628 related to the write-down of property and equipment in the discontinued operations segment.
In terms of strategic developments, TLSS has been actively seeking to restructure its debts and explore new business opportunities. The company has issued several promissory notes to related parties, totaling approximately $1.55 million as of December 31, 2024, with accrued interest of $290,133. The company’s cash position has also been under pressure, with a cash balance of $177,257 at year-end, down from $218,152 in 2023. The working capital deficit increased to $11.89 million, raising concerns about the company’s ability to continue as a going concern.
Looking ahead, TLSS management has expressed uncertainty regarding its ability to raise additional capital or secure financing to support future operations. The company is actively pursuing funding options to address its financial obligations and has acknowledged the need for a significant restructuring of its operations. The management's outlook remains cautious, emphasizing the challenges posed by the cessation of operations and the ongoing financial difficulties.
Overall, TLSS's 10-K filing highlights a critical juncture for the company, with a focus on navigating its financial challenges while exploring potential avenues for recovery and growth in the future.
About Transportation & Logistics Systems, Inc.
About 10-K Filings
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