Transportation and Logistics Systems, Inc. Announces Financial Results for the Second Quarter Ended June 30, 2023
- TLSS reported improved revenue and gross profit margins for Q2 2023. The company has taken measures to reduce operating costs and implemented new initiatives that are expected to improve revenue and operating results in the future.
- TLSS had a net loss of $2,479,000 for Q2 2023, compared to a net loss of $709,000 in the prior year period. The company also reported a net loss of $4,125,000 for the six months ended June 30, 2023, compared to a net loss of $2,746,000 in the prior year period.
Corporate Update Due for Release in the Coming Weeks
JUPITER, FL / ACCESSWIRE / August 14, 2023 / Transportation and Logistics Systems, Inc. (OTC PINK:TLSS), ("TLSS" or the "Company"), the parent company of certain wholly-owned operating subsidiaries, which together, provide a suite of logistics and transportation services, is pleased to announce today that on August 11, 2023, the Company timely filed its Form 10-Q, Quarterly Report for the second quarter ended June 30, 2023.
Sebastian Giordano, Chairman and CEO of TLSS, commented, "Our revenue and gross profit margins continued to improve over the prior year; however, we did experience some of the downturn that has been prevalent across the industry during the second quarter. In fact, a transportation equities analyst at Morgan Stanley recently cut numbers for most of the carriers they follow by double-digit percentages1. Nevertheless, in the midst of the integration of Severance Trucking during this quarter, we have taken significant measures to reduce our operating costs and, in recent weeks, continued rolling-out a series of new organic initiatives that we expect will improve revenue and operating results in the months ahead."
Financial Results for the Three Months Ended June 30, 2023
Revenue for the three months ended June 30, 2023 increased
The Company had a loss from operations of
[1] https://www.freightwaves.com/news/q2-likely-peak-pain-for-trucking-companies-morgan-stanley-says
The Company had net loss of
The Company had a net loss attributable to TLSS common shareholders of
Financial Results for the Six Months Ended June 30, 2023
Revenue for the six months ended June 30, 2023 increased
The Company had a loss from operations of
The Company had a net loss of
The Company had a net loss attributable to TLSS common shareholders of
Subsequent Events
The Company's Board of Directors has unanimously adopted a resolution seeking stockholder approval to authorize the Board of Directors to increase the number of authorized shares of common stock from 10,000,000,000 shares to 50,000,000,000 shares. The Board of Directors believes that this increase in the number of authorized shares is in the best interest of the Company and its stockholders because the Company is actively pursuing imminent strategic partnerships in exchange for valuable shares in the Company.
The Articles of Incorporation of the Company currently authorize the issuance of ten billion (10,000,000,000) shares of common stock; and, as of the Record Date, 4,250,628,295 shares of common stock are outstanding, and, if all rights convertible into or exchangeable for shares of common stock were exercised, close to 8,700,000,000 shares of common stock would be outstanding. Further, a substantial portion of the unissued shares of common stock are held in reserve in connection with rights of conversion of convertible preferred stock and/or debt and/or exercise of warrants and/or options. Consequently, the Company will not be able to issue shares in connection with additional equity investments (including any requirements by investors to place shares of common stock in reserve for conversion of convertible preferred stock and/or debt and/or exercise of warrants and/or options), without the authorization of the issuance of additional common stock.
Stockholder approval for the 2023 Amendment was obtained on July 27, 2023 from a stockholder that held at least
About Transportation and Logistics Systems, Inc.
TLSS is a publicly-traded holding company. Its wholly-owned operating subsidiaries, Cougar Express, Inc., Freight Connections, Inc., JFK Cartage, Inc. and Severance Trucking Co., Inc., together provide a full suite of logistics and transportation services. For more information, visit the Company's website, www.tlss-inc.com.
Forward Looking Statements
Statements in this press release regarding the Company that are not historical facts are forward-looking statements and are subject to risks and uncertainties that could cause actual future events or results to differ materially from such statements. Any such forward-looking statements, including, but not limited to, financial guidance, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not directly or exclusively relate to historical facts. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "could," "would," "expects," "plans," "anticipates," "intend," "plan," "goal," "seek," "strategy," "future," "likely," "believes," "estimates," "projects," "forecasts," "predicts," "potential," or the negative of those terms, and similar expressions and comparable terminology. These include, but are not limited to, statements relating to future events or our future financial and operating results, plans, objectives, expectations, and intentions. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these expectations may not be achieved. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they represent our intentions, plans, expectations, assumptions, and beliefs about future events and are subject to known and unknown risks, uncertainties, and other factors outside of our control that could cause our actual results, performance, or achievement to differ materially from those expressed or implied by these forward-looking statements. In addition to the risks described above, these risks and uncertainties include: our ability to successfully execute our business strategies, including integration of acquisitions and the future acquisition of other businesses to grow our company; customers' cancellation on short notice of master service agreements from which we derive a significant portion of our revenue or our failure to renew such master service agreements on favorable terms or at all; our ability to attract and retain key personnel and skilled labor to meet the requirements of our labor-intensive business or labor difficulties which could have an effect on our ability to bid for and successfully complete contracts; the ultimate geographic spread, duration and severity of the coronavirus outbreak and the effectiveness of actions taken, or actions that may be taken, by governmental authorities to contain the outbreak or ameliorate its effects; our failure to compete effectively in our highly competitive industry could reduce the number of new contracts awarded to us or adversely affect our market share and harm our financial performance; our ability to adopt and master new technologies and adjust certain fixed costs and expenses to adapt to our industry's and customers' evolving demands; our history of losses, deficiency in working capital and a stockholders' deficit and our historical inability to achieve sustained profitability; material weaknesses in our internal control over financial reporting and our ability to maintain effective controls over financial reporting in the future; our substantial indebtedness could adversely affect our business, financial condition and results of operations and our ability to meet our payment obligations; the impact of new or changed laws, regulations or other industry standards that could adversely affect our ability to conduct our business; and changes in general market, economic and political conditions in the United States and global economies or financial markets, including those resulting from natural or man-made disasters.
These forward-looking statements represent our estimates and assumptions only as of the date of this release and, except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this letter. Given these uncertainties, you should not place undue reliance on these forward-looking statements and should consider various factors, including the risks described, among other places, in our most recent Annual Report on Form 10-K and in our Quarterly Reports on Form 10-Q, as well as any amendments thereto, filed with the Securities and Exchange Commission.
Investor Contact:
Email: info@tlss-inc.com
Phone: 1.833.764.1443
TRANSPORTATION AND LOGISTICS SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| June 30, 2023 | December 31, 2022 | |||||||
| (Unaudited) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash | $ | 743,898 | $ | 1,470,807 | ||||
Accounts receivable, net | 2,120,970 | 2,059,326 | ||||||
Prepaid expenses and other current assets | 548,486 | 613,035 | ||||||
Total Current Assets | 3,413,354 | 4,143,168 | ||||||
OTHER ASSETS: | ||||||||
Security deposits | 454,844 | 377,107 | ||||||
Property and equipment, net | 2,862,296 | 1,607,212 | ||||||
Right of use assets, net | 11,400,490 | 8,457,083 | ||||||
Goodwill | 2,105,879 | 2,105,879 | ||||||
Intangible assets, net | 4,473,061 | 4,601,677 | ||||||
Total Other Assets | 21,296,570 | 17,148,958 | ||||||
TOTAL ASSETS | $ | 24,709,924 | $ | 21,292,126 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Notes payable, current portion | $ | 1,514,166 | $ | 408,407 | ||||
Notes payable - related parties, current portion | 5,144,671 | 4,544,671 | ||||||
Accounts payable (including accounts payable - related party of | 1,407,324 | 472,701 | ||||||
Accrued expenses | 1,183,183 | 837,170 | ||||||
Insurance payable | 438,080 | 137,477 | ||||||
Lease liabilities, current portion | 3,132,142 | 2,081,099 | ||||||
Accrued compensation and related benefits | 148,900 | 65,103 | ||||||
Total Current Liabilities | 12,968,466 | 8,546,628 | ||||||
LONG-TERM LIABILITIES: | ||||||||
Notes payable, net of current portion | 1,499,607 | 831,499 | ||||||
Lease liabilities, net of current portion | 8,413,008 | 6,413,937 | ||||||
Total Long-term Liabilities | 9,912,615 | 7,245,436 | ||||||
Total Liabilities | 22,881,081 | 15,792,064 | ||||||
Commitments and Contingencies (See Note 11) | ||||||||
SHAREHOLDERS' EQUITY: | ||||||||
Preferred stock, par value | ||||||||
Series B convertible preferred stock, par value | - | - | ||||||
Series D convertible preferred stock, par value | - | - | ||||||
Series E convertible preferred stock, par value | 21 | 21 | ||||||
Series G convertible preferred stock, par value | 546 | 575 | ||||||
Series H convertible preferred stock, par value | 32 | 32 | ||||||
Common stock, par value | 3,896,181 | 3,636,692 | ||||||
Additional paid-in capital | 129,977,255 | 129,372,841 | ||||||
Accumulated deficit | (132,045,192 | ) | (127,510,099 | ) | ||||
Total Shareholders' Equity | 1,828,843 | 5,500,062 | ||||||
Total Liabilities and Shareholders' Equity | $ | 24,709,924 | $ | 21,292,126 | ||||
TRANSPORTATION AND LOGISTICS SYSTEMS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
REVENUES | $ | 5,061,871 | $ | 1,404,560 | $ | 10,656,767 | $ | 2,663,893 | ||||||||
COST OF REVENUES: | ||||||||||||||||
Third parties | 3,288,605 | 1,013,550 | 6,144,251 | 1,984,552 | ||||||||||||
Related parties | 470,669 | - | 1,241,376 | - | ||||||||||||
Total Cost of Revenues | 3,759,274 | 1,013,550 | 7,385,627 | 1,984,552 | ||||||||||||
GROSS PROFIT | 1,302,597 | 391,010 | 3,271,140 | 679,341 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Compensation and related benefits | 1,462,105 | 693,343 | 2,577,589 | 2,049,753 | ||||||||||||
Legal and professional fees | 422,281 | 339,003 | 979,364 | 688,497 | ||||||||||||
Rent | 1,137,616 | 110,957 | 2,175,699 | 212,294 | ||||||||||||
General and administrative expenses | 536,059 | 252,167 | 1,300,895 | 534,110 | ||||||||||||
Total Operating Expenses | 3,558,061 | 1,395,470 | 7,033,547 | 3,484,654 | ||||||||||||
LOSS FROM OPERATIONS | (2,255,464 | ) | (1,004,460 | ) | (3,762,407 | ) | (2,805,313 | ) | ||||||||
OTHER INCOME (EXPENSES): | ||||||||||||||||
Interest income | - | - | 992 | - | ||||||||||||
Interest expense | (83,947 | ) | (1,895 | ) | (146,816 | ) | (9,762 | ) | ||||||||
Interest expense - related parties | (129,972 | ) | - | (206,348 | ) | - | ||||||||||
(Loss) gain on sale of subsidiary's assets | - | 296,689 | (720 | ) | 296,689 | |||||||||||
Settlement income (expense) | (9,408 | ) | 700 | (9,408 | ) | (227,811 | ) | |||||||||
Total Other Income (Expenses) | (223,327 | ) | 295,494 | (362,300 | ) | 59,116 | ||||||||||
LOSS BEFORE INCOME TAXES | (2,478,791 | ) | (708,966 | ) | (4,124,707 | ) | (2,746,197 | ) | ||||||||
Provision for income taxes | - | - | - | - | ||||||||||||
NET LOSS | (2,478,791 | ) | (708,966 | ) | (4,124,707 | ) | (2,746,197 | ) | ||||||||
Deemed and accrued dividends | (309,976 | ) | (106,834 | ) | (410,386 | ) | (215,885 | ) | ||||||||
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | (2,788,767 | ) | $ | (815,800 | ) | $ | (4,535,093 | ) | $ | (2,962,082 | ) | ||||
NET LOSS PER COMMON SHARE - BASIC AND DILUTED | ||||||||||||||||
Basic and diluted | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | ||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||||||
Basic and diluted | 3,716,404,651 | 3,316,885,235 | 3,701,199,946 | 3,179,603,803 | ||||||||||||
TRANSPORTATION AND LOGISTICS SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| For the Six Months Ended | ||||||||
| June 30, | ||||||||
| 2023 | 2022 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net loss | $ | (4,124,707 | ) | $ | (2,746,197 | ) | ||
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||||||||
Depreciation and amortization expense | 775,500 | 377,500 | ||||||
Stock-based compensation | 262,464 | 1,040,167 | ||||||
Stock-based professional fees | - | 8,333 | ||||||
Gain from sale of subsidiary's assets | - | (296,689 | ) | |||||
Non-cash portion of gain on settlement | - | (700 | ) | |||||
Lease costs | 106,707 | - | ||||||
Bad debt recovery | (22,776 | ) | - | |||||
Change in operating assets and liabilities: | ||||||||
Accounts receivable | 798,018 | 8,094 | ||||||
Prepaid expenses and other current assets | (157,391 | ) | (156,126 | ) | ||||
Security deposits | (70,737 | ) | (6,245 | ) | ||||
Accounts payable and accrued expenses | 869,779 | (50,014 | ) | |||||
Insurance payable | 300,603 | 42,424 | ||||||
Accrued compensation and related benefits | (68,834 | ) | (39,151 | ) | ||||
NET CASH USED IN OPERATING ACTIVITIES | (1,331,374 | ) | (1,818,604 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchase of property and equipment | (311,396 | ) | - | |||||
Proceeds from repayment of note receivable | 255,000 | - | ||||||
Cash proceeds from sale of subsidiary's assets | - | 748,500 | ||||||
Cash acquired in acquisitions | 207,471 | - | ||||||
Cash used for acquisitions | (687,808 | ) | - | |||||
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES | (536,733 | ) | 748,500 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Payment of liquidated damages on Series E preferred shares | - | (24,000 | ) | |||||
Net proceeds from sale of series G preferred share units | - | 855,000 | ||||||
Proceeds from exercise of warrants | 363,270 | 245,714 | ||||||
Proceeds from notes payable - related parties | 600,000 | - | ||||||
Proceeds from notes payable | 300,609 | - | ||||||
Repayment of notes payable | (122,681 | ) | (295,596 | ) | ||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 1,141,198 | 781,118 | ||||||
NET DECREASE IN CASH | (726,909 | ) | (288,986 | ) | ||||
CASH, beginning of period | 1,470,807 | 6,067,692 | ||||||
CASH, end of period | $ | 743,898 | $ | 5,778,706 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||||||
Cash paid for: | ||||||||
Interest | $ | 126,811 | $ | 9,762 | ||||
Income taxes | $ | - | $ | - | ||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||
Conversion of Series E preferred stock to common stock | $ | - | $ | 31 | ||||
Conversion of Series G preferred stock and accrued dividends to common stock | $ | 20,056 | $ | 21,226 | ||||
Accrual of preferred stock dividends | $ | 410,386 | $ | 215,885 | ||||
Issuance of common stock for future services | $ | - | $ | 5,000 | ||||
Increase in right of use assets and lease liabilities | $ | 3,958,260 | $ | - | ||||
ACQUISITIONS: | ||||||||
Assets acquired: | ||||||||
Accounts receivable | $ | 836,886 | $ | - | ||||
Prepaid expenses | 18,454 | - | ||||||
Property and equipment | 1,186,198 | - | ||||||
Right of use assets | 457,239 | - | ||||||
Security deposits | 7,000 | - | ||||||
Intangible assets | 404,374 | - | ||||||
Total assets acquired | 2,910,151 | - | ||||||
Less: liabilities assumed: | ||||||||
Accounts payable | 211,303 | - | ||||||
Accrued expenses | 12,702 | - | ||||||
Accrued compensation and related benefits | 152,631 | - | ||||||
Notes payable | 1,595,939 | - | ||||||
Lease liabilities | 457,239 | - | ||||||
Total liabilities assumed | 2,429,814 | - | ||||||
Net assets acquired | $ | 480,337 | $ | - | ||||
SOURCE: Transportation & Logistics Systems
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https://www.accesswire.com/773873/Transportation-and-Logistics-Systems-Inc-Announces-Financial-Results-for-the-Second-Quarter-Ended-June-30-2023
FAQ
What were TLSS's financial results for Q2 2023?
What were TLSS's financial results for the six months ended June 30, 2023?
What measures did TLSS take to improve its operating results?
What is TLSS's plan to increase the number of authorized shares of common stock?
