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Armlogi Holding Corp.(BTOC) - 2025 Q2 - Quarterly Report
BTOCArmlogi Holding Corp.(BTOC)2025-02-14 11:02

Revenue and Profitability - Revenue for the three months ended December 31, 2024, was 51,143,682,anincreaseof21.751,143,682, an increase of 21.7% compared to 42,004,083 for the same period in 2023[11]. - Total revenue for the six months ended December 31, 2024, was 93,625,578,representinganincreaseof12.593,625,578, representing an increase of 12.5% compared to 83,249,928 for the same period in 2023[37]. - Revenue from transportation services was 64,617,825,up8.364,617,825, up 8.3% from 59,639,714 in the prior year[37]. - Warehousing services revenue increased by 24.7% to 28,984,064from28,984,064 from 23,234,845 year-over-year[37]. - Revenue for the three months ended December 31, 2024, increased by 9.1million,or21.89.1 million, or 21.8%, to 51.1 million compared to 42.0millionforthesameperiodin2023[120].−Thecompanyexperiencedanetlossof42.0 million for the same period in 2023[120]. - The company experienced a net loss of 6.3 million for the six months ended December 31, 2024, compared to a net income of 6.5millionforthesameperiodin2023[116].−ThebasicanddilutedearningspershareforthesixmonthsendedDecember31,2024,wereboth6.5 million for the same period in 2023[116]. - The basic and diluted earnings per share for the six months ended December 31, 2024, were both (0.15), down from 0.16in2023[99].−NetlossforthethreemonthsendedDecember31,2024,was0.16 in 2023[99]. - Net loss for the three months ended December 31, 2024, was (1.7) million, compared to a net income of 3.7millionforthesameperiodin2023,representingadecreaseof3.7 million for the same period in 2023, representing a decrease of 5.4 million[131]. Expenses and Costs - Gross profit for the six months ended December 31, 2024, was a loss of 3,123,798,comparedtoaprofitof3,123,798, compared to a profit of 12,904,281 for the same period in 2023[11]. - Operating costs and expenses for the three months ended December 31, 2024, were 2,659,156,adecreasefrom2,659,156, a decrease from 2,919,547 for the same period in 2023[11]. - Total costs of sales for the six months ended December 31, 2024, increased by 26.4million,or37.526.4 million, or 37.5%, compared to the same period in 2023[121]. - Costs of sales for the three months ended December 31, 2024, increased by 16.3 million, or 47.6%, primarily due to higher freight expenses and increased lease and labor costs[120]. - General and administrative expenses for the six months ended December 31, 2024, were 6.3million,comparedto6.3 million, compared to 4.8 million in 2023, reflecting an increase of approximately 30.9%[118]. - The Company recorded depreciation expenses of 637,990forthethreemonthsendedDecember31,2024,comparedto637,990 for the three months ended December 31, 2024, compared to 485,906 for the same period in 2023, representing an increase of approximately 31.2%[66]. - The company recorded depreciation expenses of 1.2millionforthesixmonthsendedDecember31,2024,comparedto1.2 million for the six months ended December 31, 2024, compared to 919,272 for the same period in 2023[149]. Assets and Liabilities - Total current assets increased to 42,920,445asofDecember31,2024,from42,920,445 as of December 31, 2024, from 37,984,932 as of June 30, 2024, reflecting a growth of 13.5%[9]. - Total liabilities increased to 130,533,116asofDecember31,2024,comparedto130,533,116 as of December 31, 2024, compared to 127,796,151 as of June 30, 2024, indicating a rise of 2.0%[9]. - As of December 31, 2024, accounts receivable from third parties increased to 31,125,059from31,125,059 from 24,239,599 as of June 30, 2024, representing a growth of approximately 28.5%[64]. - The total loan receivable balance increased to 3,812,293asofDecember31,2024,comparedto3,812,293 as of December 31, 2024, compared to 1,877,131 as of June 30, 2024, indicating a growth of approximately 103.5%[70]. - The allowance for credit loss increased to 547,610asofDecember31,2024,from547,610 as of December 31, 2024, from 407,182 as of June 30, 2024, reflecting a rise of approximately 34.4%[65]. - As of December 31, 2024, accounts payable and accrued liabilities totaled US5,533,126,adecreasefromUS5,533,126, a decrease from US7,502,339 as of June 30, 2024[80]. Cash Flow - Cash and restricted cash at the end of the six months period was 7,378,747,adecreasefrom7,378,747, a decrease from 9,950,384 at the beginning of the year[15]. - The company reported a net cash used in operating activities of 9,232,468forthesixmonthsendedDecember31,2024,comparedtoanetcashprovidedof9,232,468 for the six months ended December 31, 2024, compared to a net cash provided of 3,494,935 for the same period in 2023[15]. - Net cash used in operating activities was 9.2millionforthesixmonthsendedDecember31,2024,adecreaseof9.2 million for the six months ended December 31, 2024, a decrease of 12.7 million compared to a net cash inflow of 3.5millionforthesameperiodin2023[136].−Netcashusedininvestingactivitieswas3.5 million for the same period in 2023[136]. - Net cash used in investing activities was 1.0 million for the six months ended December 31, 2024, down from 3.9millioninthesameperiodin2023[137][138].−Netcashprovidedfromfinancingactivitieswas3.9 million in the same period in 2023[137][138]. - Net cash provided from financing activities was 7.7 million for the six months ended December 31, 2024, compared to 0.9millionforthesameperiodin2023[140][139].OperationalOverview−Thecompanyoperatesasathird−partylogisticsprovider,focusingonmulti−modaltransportationandlogisticsservicesprimarilyintheUnitedStates[17].−Thecompanyoperatesinonesegment,withallbusinessactivitiesconductedintheU.S.,simplifyingperformanceevaluationandresourceallocation[56].−Thecompanyhasnorecordedimpairmentlossesforlong−livedassetsduringthethreeandsixmonthsendedDecember31,2024,and2023[29].−Thecompanyoperateswitha1000.9 million for the same period in 2023[140][139]. Operational Overview - The company operates as a third-party logistics provider, focusing on multi-modal transportation and logistics services primarily in the United States[17]. - The company operates in one segment, with all business activities conducted in the U.S., simplifying performance evaluation and resource allocation[56]. - The company has no recorded impairment losses for long-lived assets during the three and six months ended December 31, 2024, and 2023[29]. - The company operates with a 100% ownership structure across its subsidiaries, enhancing operational control and integration[22]. - The company utilizes independent contractors and third-party carriers for transportation services, maintaining control over pricing and shipment processes[36]. - The company had an active customer base of 298 as of December 31, 2024, up from 105 in June 2024 and 83 in December 2023[115]. - The company generated approximately 86% of its revenue from PRC-based customers during the six months ended December 31, 2024, down from 96% in the same period of 2023[117]. Lease and Financing - The Company has elected to account for leases with both lease and non-lease components as a single lease component, simplifying financial reporting[48]. - Operating lease expenses for the six months ended December 31, 2024, were US15,858,308, an increase of 41.5% compared to US11,245,735forthesameperiodin2023[76].−ForthethreemonthsendedDecember31,2024,operatingleaseexpenseswereUS11,245,735 for the same period in 2023[76]. - For the three months ended December 31, 2024, operating lease expenses were US7,746,884, up 28.6% from US6,027,177in2023[75].−TotalminimumleasepaymentsamounttoUS6,027,177 in 2023[75]. - Total minimum lease payments amount to US157,938,073, with a non-current portion of US90,172,693asofDecember31,2024[77].−Theweightedaverageremainingleasetermforoperatingleasesis5.67years,withadiscountrateof10.2890,172,693 as of December 31, 2024[77]. - The weighted average remaining lease term for operating leases is 5.67 years, with a discount rate of 10.28%[79]. - The effective interest rate on the convertible notes is 13.85%, with a 0% interest rate that increases to 18% upon an event of default[93][90]. - The Company has entered into a Standby Equity Purchase Agreement allowing it to sell up to US50 million of common stock, with an initial advance of US5millionreceived[81][84].CorporateActions−ThecompanycompleteditsinitialpublicofferinginMay2024,raising5 million received[81][84]. Corporate Actions - The company completed its initial public offering in May 2024, raising 8.0 million by issuing 1,600,000 shares at 5.00pershare[159].−Thenetproceedsfromtheinitialpublicofferingwere5.00 per share[159]. - The net proceeds from the initial public offering were 5.2 million after deducting expenses, which have been fully spent for working capital and general corporate purposes[161]. - The company amended its Articles of Incorporation on February 22, 2023, for correction of par value[3.2]. - A Standby Equity Purchase Agreement was established on November 25, 2024, with YA II PN, LTD[10.1]. - The First Tranche Convertible Promissory Note was issued on November 25, 2024, in favor of YA II PN, LTD[10.2]. - A Global Guaranty Agreement was signed on November 25, 2024, involving multiple subsidiaries of Armlogi[10.3]. - The company has filed certifications pursuant to the Sarbanes-Oxley Act of 2002 for both the Principal Executive Officer and Principal Financial Officer[31.1][31.2]. - The Inline XBRL Instance Document was filed along with the report[101.INS]. - The report was signed by CEO Aidy Chou on February 14, 2025[172].