FRGTMEDIUM SIGNALFINANCIAL10-Q

FRGT shows strong revenue growth of 73% but deteriorating cash flow operations amid concerning customer concentration and liquidity constraints.

The company demonstrates positive operational momentum with significant revenue growth, but the 63% increase in negative operating cash flow and heavy reliance on a single customer (69% of receivables) creates meaningful execution risk. The improved balance sheet metrics and reduced net losses suggest progress, but liquidity remains tight with only $587K cash against $5.0M in short-term debt.

Comparing 2025-08-18 vs 2025-05-16View on EDGAR →
FINANCIAL ANALYSIS

Revenue surged 73% to $7.1M while net losses improved 41% to -$953K, indicating better operational efficiency despite higher interest expenses. However, operating cash flow deteriorated significantly to -$5.0M from -$3.1M, creating a concerning disconnect between profitability improvements and cash generation. The balance sheet strengthened with stockholders' equity rising 43% and total assets growing 27%, but the company remains in a precarious liquidity position with minimal cash relative to its debt obligations.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
+154.4%
$135K→$343K

Interest expense surged 154.4% — significant debt increase or rising rates materially impacting earnings.

Operating Income
P&L
-100.5%
-$1.5M→-$2.9M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Revenue
P&L
+72.9%
$4.1M→$7.1M

Strong top-line growth of 72.9% — accelerating demand or successful expansion into new markets.

Operating Cash Flow
Cash Flow
-62.7%
-$3.1M→-$5.0M

Operating cash flow fell 62.7% — earnings quality concerns; investigate working capital changes and non-cash items.

Accounts Receivable
Balance Sheet
+46%
$3.8M→$5.6M

Receivables surged 46% — revenue recognized but not yet collected; watch for collection issues or channel stuffing.

Stockholders Equity
Balance Sheet
+42.6%
$6.2M→$8.8M

Equity base grew 42.6% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Cash & Equivalents
Balance Sheet
+40.9%
$416K→$587K

Cash position surged 40.9% — strong cash generation or capital raise providing significant financial cushion.

Net Income
P&L
+40.5%
-$1.6M→-$953K

Net income grew 40.5% — bottom-line growth signals improving overall business health.

Total Assets
Balance Sheet
+27.1%
$13.4M→$17.1M

Asset base grew 27.1% — expansion through organic growth, acquisitions, or capital deployment.

Total Liabilities
Balance Sheet
+14%
$7.3M→$8.3M

Liabilities increased 14% — monitor debt-to-equity ratio and interest coverage.

LANGUAGE CHANGES
NEW — 2025-08-18
PRIOR — 2025-05-16
ADDED
UNAUDITED FINANCIAL STATEMENTS Page Condensed Consolidated Balance Sheets as of June 30, 2025 (unaudited) and December 31, 2024 4 Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) 5 Unaudited Condensed Consolidated Statements of Stockholders Equity (Deficit) 6 Unaudited Condensed Consolidated Statements of Cash Flows 7 Notes to Unaudited Financial Statements 8 3 FREIGHT TECHNOLOGIES, INC.
on September 12, 2024, effective as of September 25, 2024; and the reverse split of 1:4 as approved by the Board of Directors of Freight Technologies, Inc.
As shown in the accompanying consolidated financial statements as of and for the three months ended June 30, 2025, the Company has an accumulated deficit of $ ( 45,869,587 ) , a shareholders equity of $ 8,783,380 , net working capital of $ ( 179,851 ) , short-term debt (including borrowings and financing payable) of $ 4,961,684 and $ 586,658 of unrestricted cash on hand.
For the six months ended June 30, 2025 the company has reported operating loss of $ ( 2,935,072 ) and negative cash flows from operations of $ ( 5,039,217 ) , whereas for the same six months ended in 2024 the company reported operating losses of $ ( 3,788,697 ) and negative cash flows from operations of $ ( 4,857,126 ) .
The amounts over the insured limits as of June 30, 2025 and December 31, 2024 was $ 411,654 and $ 3,589 , respectively.
+7 more — sign up free →
REMOVED
UNAUDITED FINANCIAL STATEMENTS Page Balance Sheets as of March 31, 2025 (unaudited) and December 31, 2024 4 Unaudited Statements of Operations 5 Unaudited Statements of Stockholders Equity (Deficit) 6 Unaudited Statements of Cash Flows 7 Notes to Unaudited Financial Statements 8 3 FREIGHT TECHNOLOGIES, INC.
Series A4 preferred shares: unlimited authorized shares (*) List of authorized shares for Series A preferred a.
As shown in the accompanying consolidated financial statements as of and for the three months ended March 31, 2025, the Company has an accumulated deficit of $ 46,518,825 , a shareholders equity of $ 6,159,098 , net working capital of $ 349,251 , short-term debt of $ 3,812,841 and $ 416,476 of unrestricted cash on hand.
For the three months ended March 31, 2025 and 2024, the Company has reported operating losses and negative cash flows from operations.
The amounts over the insured limits as of March 31, 2025 and December 31, 2024 was $ 3,594 and $ 3,589 , respectively.
+7 more — sign up free →
MORE FINANCIAL SIGNALS
PNRGHIGHPNRG achieved exceptional profitability improvement with net income surging 2,21...
2026-04-16
BNAIHIGHBNAI underwent a dramatic reverse stock split that reduced share count by 86% wh...
2026-04-16
LAKEHIGHLAKE's financial performance deteriorated significantly with operating losses wo...
2026-04-16
NXXTHIGHNextNRG experienced massive financial deterioration with operating losses explod...
2026-04-16
ANALYZE ANY FILING FREE

See what changed in your portfolio's filings

500+ US-listed companies analyzed. Language delta, financial analysis, instant signal scoring.

Try Tracenotes free →