Transportation and Logistics Systems Reports $2.06 Million Net Loss, Ceases Operations

Transportation and Logistics Systems, Inc. (TLSS) reported a net loss of $2.06 million for the three months ended March 31, 2024, compared to a net loss of $1.65 million for the same period in 2023. The company’s revenues were recorded as zero, reflecting the cessation of all operations in mid-February 2024. Operating expenses decreased to $829,597 from $1.08 million year-over-year, primarily due to reduced legal and professional fees, which fell significantly from $510,650 to $144,433. The loss from discontinued operations was $1.19 million, up from $572,405 in the prior year, largely due to an impairment loss of $555,628 related to property and equipment.

The company underwent significant strategic changes, including the bankruptcy filings of its subsidiaries, Freight Connections and Cougar Express, which occurred in December 2023 and February 2024, respectively. These actions resulted in the deconsolidation of these entities and the classification of their assets and liabilities as discontinued operations. TLSS has also ceased operations of its remaining logistics and transportation services, which had previously included a full suite of services such as e-commerce fulfillment and last-mile deliveries.

Operationally, TLSS has faced challenges, including a working capital deficit of $9.99 million as of March 31, 2024, compared to $7.99 million at the end of 2023. The company’s cash balance decreased to $185,322 from $218,152 over the same period. The total number of common shares outstanding increased to approximately 5.18 billion, reflecting the conversion of Series G preferred shares. The company has indicated that it is exploring options for restructuring its debts and potentially entering new lines of business, although there is no assurance of success in these endeavors.

Looking ahead, TLSS remains in a precarious financial position, with substantial doubt raised about its ability to continue as a going concern. The company is actively seeking additional financing to meet its obligations and has engaged in discussions regarding potential restructuring. Management has acknowledged the need for further capital to fund operations and complete necessary filings with the SEC, but the ability to secure such financing remains uncertain.