Transportation and Logistics Systems Reports $498K Net Loss Amid Operational Cessation

Transportation and Logistics Systems, Inc. (TLSS) reported a net loss of $498,270 for the three months ended March 31, 2025, a significant decrease from the $2,064,920 loss recorded in the same period of 2024. The company’s revenues remained at $0, reflecting the cessation of all operations in mid-February 2024. Operating expenses also decreased to $332,271 from $829,597 year-over-year, primarily due to reduced compensation and related benefits, which fell by 73.2% to $160,340, as well as a decrease in general and administrative expenses.

The company’s financial position showed a working capital deficit of $12,467,277 as of March 31, 2025, compared to $11,892,017 at the end of 2024. TLSS's total liabilities increased to $12,691,648 from $12,070,953, largely due to accrued expenses and notes payable. The company’s accumulated deficit rose to $147,043,296, reflecting ongoing financial challenges following the discontinuation of its logistics and transportation services.

In terms of strategic developments, TLSS has been focusing on restructuring its remaining debts and obligations while exploring potential new business opportunities. The company has not engaged in any revenue-generating activities since February 2024, following the bankruptcy of its subsidiary Cougar Express and the cessation of operations of its other subsidiaries. The company is actively seeking additional financing to support its operations and meet its reporting obligations under the Securities Exchange Act.

Operationally, TLSS has seen a significant reduction in employee headcount due to the discontinuation of its business. The company is currently evaluating its options for future growth, including potential acquisitions or new lines of business. However, management has expressed uncertainty regarding the ability to achieve profitable operations or raise additional capital, which raises substantial doubt about the company's ability to continue as a going concern.

Looking ahead, TLSS is in the process of filing for new financing options and has recently issued promissory notes to raise capital. The company is also preparing to file its periodic reports with the SEC, although it acknowledges the challenges it faces in maintaining compliance and securing necessary funding. The outlook remains uncertain as TLSS navigates its financial difficulties and seeks to establish a viable path forward.