Transportation and Logistics Systems Reports Significant Losses and Ceases Operations

Transportation and Logistics Systems, Inc. (TLSS) reported significant financial losses in its unaudited consolidated financial statements for the three and six months ended June 30, 2024. The company recorded a net loss of $573,574 for the three months, a decrease from a loss of $2,478,791 in the same period of 2023. For the six months, the net loss was $2,638,494, down from $4,124,707 year-over-year. The company’s revenues remained at $0, reflecting the cessation of all operations as of mid-February 2024, following the bankruptcy filings of its subsidiaries, including Freight Connections and Cougar Express.

Operating expenses for the second quarter of 2024 totaled $237,736, a 76.1% decrease from $995,769 in the prior year. For the first half of 2024, operating expenses were $1,067,333, down 48.7% from $2,080,012 in 2023. The reduction in expenses was primarily attributed to decreased compensation and related benefits, which fell to $187,050 from $532,954 in the previous year, as well as significant cuts in legal and professional fees.

The company has undergone substantial strategic changes, including the deconsolidation of several subsidiaries due to bankruptcy filings. In December 2023, TLSS-FC and Freight Connections filed for Chapter 7 bankruptcy, followed by Cougar Express in February 2024. As a result, all related assets and liabilities have been classified as discontinued operations. The company is currently evaluating potential restructuring options and new business opportunities, although it faces significant challenges in securing additional financing.

As of June 30, 2024, TLSS reported a working capital deficit of $10,608,967 and an accumulated deficit of $145,127,912. The company’s cash balance was $194,113, down from $218,152 at the end of 2023. The management has indicated that the company remains insolvent and is unable to meet its reporting obligations under the Securities Exchange Act. Future operations will depend on the ability to raise capital and potentially restructure existing debts.

Looking ahead, TLSS is actively seeking additional financing to fund its operations and meet its obligations. The management has acknowledged the uncertainty surrounding the company’s ability to continue as a going concern, given the significant losses and the cessation of operations. The company’s future will largely depend on its success in securing new business ventures or restructuring its existing operations.