Transportation and Logistics Systems Reports Recovery to $946,942 Net Income Amid Restructuring

Transportation and Logistics Systems, Inc. (TLSS) reported significant financial changes in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded a net income of $946,942 for the quarter, a notable recovery from a net loss of $573,574 in the same period last year. For the six months ending June 30, 2025, TLSS reported a net income of $448,672, compared to a loss of $2,638,494 in the prior year. The improvement in profitability was largely attributed to a gain on debt extinguishment amounting to $1,481,742, which offset operating expenses that totaled $721,646 for the first half of 2025, down from $1,067,333 in 2024.

The company has undergone substantial operational changes, ceasing all logistics and transportation services in February 2024, which has led to the classification of its previous operations as discontinued. This restructuring included the deconsolidation of its subsidiary Cougar Express, which filed for Chapter 7 bankruptcy. As a result, TLSS has focused on negotiating settlements for its outstanding liabilities, culminating in the issuance of Series J Preferred Stock to settle approximately $3.1 million in debts with various creditors, including related parties.

In terms of operational metrics, TLSS reported no revenue for the quarter, reflecting the complete cessation of its business activities. The company’s total assets decreased to $64,490 as of June 30, 2025, down from $178,936 at the end of 2024, primarily due to the deconsolidation of its subsidiaries. Current liabilities also saw a reduction, totaling $8,979,141 compared to $12,070,953 at the end of the previous fiscal year, as the company continues to manage its financial obligations amid ongoing restructuring efforts.

Looking ahead, TLSS faces significant challenges, including a working capital deficit of $8,914,651 and an accumulated deficit of $146,237,050. The company has indicated that it will require additional financing to meet its operational and reporting obligations moving forward. Management has expressed uncertainty regarding its ability to continue as a going concern, emphasizing the need for strategic decisions to potentially enter new lines of business or restructure existing debts. The outlook remains cautious as TLSS navigates its financial recovery and seeks to stabilize its operations.