Armlogi Holding Corp. Announces Fiscal 2025 Second Quarter and Six-Month Results
Armlogi Holding Corp. (NASDAQ: BTOC) reported its fiscal Q2 2025 results, showing mixed performance. Revenue increased 21.8% to $51.1 million in Q2, with transportation services up 20.8% to $36.1 million and warehousing services up 25.7% to $15.0 million. However, costs of sales surged 47.6% to $50.7 million due to higher UPS shipping charges and increased operational expenses.
The company expanded from 9 to 10 warehouses, increasing total space from 2 million to over 3.5 million square feet. Despite growth in revenue, gross profit margin declined significantly from 18.3% to 0.9% in Q2, resulting in a net loss of $1.7 million compared to a $3.7 million profit in the same period last year. The company's cash position decreased to $7.4 million as of December 31, 2024, from $10.0 million in June 2024.
Armlogi Holding Corp. (NASDAQ: BTOC) ha riportato i risultati fiscali del secondo trimestre 2025, mostrando una performance mista. I ricavi sono aumentati del 21,8% a 51,1 milioni di dollari nel secondo trimestre, con i servizi di trasporto in crescita del 20,8% a 36,1 milioni di dollari e i servizi di magazzinaggio in aumento del 25,7% a 15,0 milioni di dollari. Tuttavia, i costi di vendita sono aumentati del 47,6% a 50,7 milioni di dollari a causa dell'aumento delle spese di spedizione UPS e dei costi operativi crescenti.
La società è passata da 9 a 10 magazzini, aumentando lo spazio totale da 2 milioni a oltre 3,5 milioni di piedi quadrati. Nonostante la crescita dei ricavi, il margine di profitto lordo è diminuito significativamente dal 18,3% allo 0,9% nel secondo trimestre, portando a una perdita netta di 1,7 milioni di dollari rispetto a un profitto di 3,7 milioni di dollari nello stesso periodo dell'anno scorso. La posizione di cassa dell'azienda è diminuita a 7,4 milioni di dollari al 31 dicembre 2024, rispetto ai 10,0 milioni di dollari di giugno 2024.
Armlogi Holding Corp. (NASDAQ: BTOC) informó sus resultados fiscales del segundo trimestre de 2025, mostrando un rendimiento mixto. Los ingresos aumentaron un 21,8% a 51,1 millones de dólares en el segundo trimestre, con los servicios de transporte en aumento del 20,8% a 36,1 millones de dólares y los servicios de almacenamiento en un 25,7% a 15,0 millones de dólares. Sin embargo, los costos de ventas se dispararon un 47,6% a 50,7 millones de dólares debido a los altos cargos de envío de UPS y al aumento de los gastos operativos.
La empresa amplió su número de almacenes de 9 a 10, aumentando el espacio total de 2 millones a más de 3,5 millones de pies cuadrados. A pesar del crecimiento en los ingresos, el margen de beneficio bruto disminuyó significativamente del 18,3% al 0,9% en el segundo trimestre, resultando en una pérdida neta de 1,7 millones de dólares en comparación con una ganancia de 3,7 millones de dólares en el mismo período del año pasado. La posición de efectivo de la empresa disminuyó a 7,4 millones de dólares al 31 de diciembre de 2024, desde los 10,0 millones de dólares en junio de 2024.
Armlogi Holding Corp. (NASDAQ: BTOC)는 2025 회계 연도 2분기 실적을 발표하며 혼합된 성과를 보였습니다. 2분기 매출은 21.8% 증가하여 5,110만 달러에 달했으며, 운송 서비스는 20.8% 증가한 3,610만 달러, 창고 서비스는 25.7% 증가한 1,500만 달러를 기록했습니다. 그러나 판매 비용은 UPS 배송 요금 상승과 운영 비용 증가로 인해 47.6% 급증하여 5,070만 달러에 달했습니다.
회사는 창고를 9개에서 10개로 늘려 총 면적을 200만 평방피트에서 350만 평방피트 이상으로 확장했습니다. 매출 성장에도 불구하고, 2분기 총 이익률은 18.3%에서 0.9%로 크게 감소하여 작년 동기 3.7백만 달러의 이익에 비해 170만 달러의 순손실을 기록했습니다. 2024년 12월 31일 기준 회사의 현금 보유액은 2024년 6월 1,000만 달러에서 740만 달러로 감소했습니다.
Armlogi Holding Corp. (NASDAQ: BTOC) a publié ses résultats pour le deuxième trimestre fiscal 2025, montrant des performances mitigées. Les revenus ont augmenté de 21,8% pour atteindre 51,1 millions de dollars au deuxième trimestre, avec des services de transport en hausse de 20,8% à 36,1 millions de dollars et des services d'entreposage en hausse de 25,7% à 15,0 millions de dollars. Cependant, les coûts des ventes ont bondi de 47,6% pour atteindre 50,7 millions de dollars en raison des frais d'expédition UPS plus élevés et des dépenses opérationnelles accrues.
L'entreprise est passée de 9 à 10 entrepôts, augmentant l'espace total de 2 millions à plus de 3,5 millions de pieds carrés. Malgré la croissance des revenus, la marge brute a considérablement diminué, passant de 18,3% à 0,9% au deuxième trimestre, entraînant une perte nette de 1,7 million de dollars par rapport à un bénéfice de 3,7 millions de dollars au cours de la même période l'année précédente. La position de trésorerie de l'entreprise a diminué à 7,4 millions de dollars au 31 décembre 2024, contre 10,0 millions de dollars en juin 2024.
Armlogi Holding Corp. (NASDAQ: BTOC) hat seine Ergebnisse für das fiskalische 2. Quartal 2025 veröffentlicht, die eine gemischte Leistung zeigen. Der Umsatz stieg um 21,8% auf 51,1 Millionen US-Dollar im 2. Quartal, wobei die Transportdienstleistungen um 20,8% auf 36,1 Millionen US-Dollar und die Lagerdienstleistungen um 25,7% auf 15,0 Millionen US-Dollar zunahmen. Die Vertriebskosten hingegen stiegen jedoch um 47,6% auf 50,7 Millionen US-Dollar aufgrund höherer Versandkosten von UPS und steigender Betriebskosten.
Das Unternehmen hat die Anzahl der Lagerhäuser von 9 auf 10 erhöht und die Gesamtfläche von 2 Millionen auf über 3,5 Millionen Quadratfuß vergrößert. Trotz des Umsatzwachstums sank die Bruttogewinnmarge erheblich von 18,3% auf 0,9% im 2. Quartal, was zu einem Nettoverlust von 1,7 Millionen US-Dollar im Vergleich zu einem Gewinn von 3,7 Millionen US-Dollar im gleichen Zeitraum des Vorjahres führte. Die Liquiditätsposition des Unternehmens verringerte sich zum 31. Dezember 2024 auf 7,4 Millionen US-Dollar, verglichen mit 10,0 Millionen US-Dollar im Juni 2024.
- Revenue growth of 21.8% YoY to $51.1 million in Q2 FY2025
- Warehouse space expansion by 75% to 3.5 million square feet
- Transportation services revenue increased by 20.8% to $36.1 million
- Warehousing services revenue grew by 25.7% to $15.0 million
- Secured $50 million Standby Equity Purchase Agreement
- Net loss of $1.7 million in Q2 compared to $3.7 million profit year-over-year
- Gross profit margin declined from 18.3% to 0.9% in Q2
- Costs of sales increased 47.6% to $50.7 million
- Cash position decreased from $10.0 million to $7.4 million
- Recently leased warehouses are not fully utilized
- Net cash used in operations was $9.2 million vs $3.5 million provided year-over-year
Insights
The Q2 FY2025 results present a complex picture of Armlogi's aggressive expansion strategy colliding with operational challenges. While top-line growth of
The company's expansion from 2M to 3.5M square feet of warehouse space represents a
The deteriorating cash position is particularly concerning. Operating cash flow swung from positive
The bright spots include strategic positioning near key logistics hubs and technology investments in warehouse management systems and electric fleets, which should drive future operational efficiencies. However, the
Looking ahead, the critical challenge will be accelerating the utilization of new facilities while managing the impact of elevated UPS shipping charges. The company's ability to optimize its expanded footprint and improve operational efficiency will be important for returning to profitability.
- Expanded from 9 to 10 warehouses throughout the first half of fiscal year 2025
- Total warehouse space increased from 2 million to over 3.5 million square feet
- Major presence in California, Georgia (Savannah), and Illinois (St. Louis Metro Area)
WALNUT, Calif., Feb. 14, 2025 (GLOBE NEWSWIRE) -- Armlogi Holding Corp. (“Armlogi” or the “Company”) (Nasdaq: BTOC), a U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions related to warehouse management and order fulfillment, today announced financial results for its fiscal 2025 second quarter and first half ended December 31, 2024. Today, the Company filed its Quarterly Report on Form 10-Q with the U.S. Securities and Exchange Commission.
Financial Results for the Three Months Ending December 31, 2024:
- Total revenue increased by
$9.1 million , or21.8% , to$51.1 million during the three months ended December 31, 2024, compared to$42.0 million for the same period in 2023.
- Revenue from our transportation services increased by
$6.2 million , or20.8% , to$36.1 million during the three months ended December 31, 2024, compared with$29.9 million during the three months ended December 31, 2023, due to the addition of new warehouse locations, which has enabled an increase in shipment volume compared to the same period in 2023. This segment comprises reselling third-party carrier services to our customers. - Revenue from our warehousing services increased by
$3.1 million , or25.7% , to$15.0 million during the three months ended December 31, 2024, compared with$11.9 million during the three months ended December 31, 2023, driven by the addition of new warehouses acquired in the last fiscal quarter. This segment comprises inventory management and storage offerings. - Revenue from other services decreased by
$0.2 million , or96% . This segment is primarily comprised of customs brokerage services.
- Revenue from our transportation services increased by
- Costs of sales increased by
$16.3 million , or47.6% , to$50.7 million during the three months ended December 31, 2024, compared with$34.3 million during the same period in 2023. The increase was driven by a rise in freight expenses due to higher UPS shipping charges and increases in lease expenses, employee salary and benefits, and temporary labor costs, as we expanded our warehouse and operations team to support growth.
- Our freight expenses, lease expenses (primarily warehouse operating lease expenses), temporary labor expenses, warehouse expenses, and salary and benefits increased by
$8.3 million ,$2.7 million ,$2.9 million ,$1.2 million , and$0.7 million , respectively, during the three months ended December 31, 2024, compared to the same period in 2023. The increases in lease expenses were due to the additional operating leases acquired in the last and current fiscal quarter. The increases in freight expenses were due to the increase in UPS expenses. The increases in temporary labor expenses, warehouse expenses, and salary and benefits were due to the expansion of the warehouse operations.
- Our overall gross profit margin decreased from
18.3% for the three months ended December 31, 2023, to0.9% for the same period in 2024, primarily due to the increase in the surcharge by UPS and the decreases in customer order volume, as well as some of the recently leased warehouses that are not fully utilized.
- Our net loss for the three months ended December 31, 2024, was
$1.7 million , compared with the net income of$3.7 million for the same period in 2023, representing a decrease of$5.4 million .
Financial Results for the Six Months Ending December 31, 2024:
- Total revenue increased by
$10.4 million , or12.5% , to$93.6 million during the six months ended December 31, 2024, compared to$83.2 million for the same period in 2023.
- Revenue from our transportation services increased by
$5.0 million , or8.3% , to$64.6 million during the six months ended December 31, 2024, compared to$59.6 million during the six months ended December 31, 2023, due to the addition of new warehouse locations which has enabled an increase in shipment volume compared to the same period in 2023. - Revenue from our warehousing services increased by
$5.7 million , or24.7% , to$29.0 million during the six months ended December 31, 2024, compared to$23.2 million during the six months ended December 31, 2023, driven by the addition of new warehouses acquired in the last fiscal quarter. - Revenue from other services decreased by
$0.4 million , or93.7% . Other revenue mainly consisted of revenue from our customs brokerage services.
- Revenue from our transportation services increased by
- Costs of sales increased by
$26.4 million , or37.5% , to$96.7 million during the six months ended December 31, 2024, compared with$70.3 million in the same period in 2023. The increase was driven by a rise in freight expenses due to higher UPS shipping charges and increases in lease expenses, employee salary and benefits, and temporary labor costs as we expanded our warehouse and operations team to support growth.
- Our freight expenses, lease expenses (primarily warehouse operating lease expenses), temporary labor expenses, warehouse expenses, and salary and benefits increased by
$11.5 million ,$4.8 million ,$5.7 million ,$1.8 million and$1.6 million , respectively, during the three months ended December 31, 2024, compared to the same period in 2023. The increases in lease expenses were due to the additional operating leases acquired in the last and current fiscal quarter. The increases in freight expenses were due to the increase in UPS expenses. The increases in temporary labor expenses, warehouse expenses, and salary and benefits were due to the expansion of the warehouse operations.
- Our overall gross profit margin decreased from
15.5% for the six months ended December 31, 2023 to3.3% for the same period in 2024, primarily due to the increase in the surcharge by UPS and the decreases in customer order volume, as well as some of the recently leased warehouses that are not fully utilized.
- Our net loss for the six months ended December 31, 2024, was
$6.3 million , compared with the net income of$6.5 million for the same period in 2023, representing a decrease of$12.8 million .
Liquidity
As of December 31, 2024, we had a balance of cash and restricted cash of
- Net cash used in operating activities was
$9.2 million for the six months ended December 31, 2024, compared to net cash provided by operating activities of$3.5 million for the same period in 2023, representing a$12.8 million decrease in the net cash inflow provided by operating activities.
- Net cash used in investing activities was
$1.0 million for the six months ended December 31, 2024, primarily attributable to$2.1 million cash used for the purchase of property and equipment,$1.0 million cash used for loans extended to others, and$2.0 million proceeds received from loan repayments.
- Net cash provided from financing activities was
$7.7 million for the six months ended December 31, 2024, which was primarily attributable to the net effects of: (i)$0.4 million lent to related parties; (ii)$8.1 million of proceeds from advance payment from the Standby Equity Purchase Agreement (described below).
Operational Highlights
Warehouse Expansion & Facilities
- Expanded trucking department through increased staffing and equipment to serve major clients, including Amazon
- Leased a new 60,000 sq ft warehouse in City of Industry, CA, to support trucking operations and partnership with Massimo Group.
- Opened SAV1 warehouse at Port of Savannah, which quickly became the Company's busiest facility with
70% occupancy
- Leased 480,000 sq ft warehouse in Ontario, CA, with 46 dock doors and advanced logistics technology
Technology & Operations
- Incorporated a fleet of electric forklifts across California warehouses as part of the Low Carbon Fuel Standard program
- Implemented PortPro transportation management software for trucking operations
- Enhanced warehousing management system to optimize inventory management and warehouse operations
- Upgraded application programming interface to version 3.5 and integrated with Temu platform, handling over 3,000 orders daily
Financing Arrangements
- Entered into a
$50 million Standby Equity Purchase Agreement (SEPA) with YA II PN, Ltd and up to$21 million in convertible promissory notes, closing two$5 million tranches of pre-paid advances under the SEPA
Management Commentary
Aidy Chou, Chairman and Chief Executive Officer of Armlogi, commented, “While our significant warehouse expansion and enhanced operational capabilities demonstrate our commitment to long-term growth, we experienced challenges this quarter from increased UPS surcharges and underutilization of our newer facilities. We expect the expansion of our footprint to 3.5 million square feet and our presence in key logistics hubs to position us well for the future, but we intend to focus intently on optimizing our operations and improving facility utilization rates in the near term. Our investments in electric fleets, warehouse management systems, and new transportation partnerships underscore our commitment to sustainable, technology-driven growth. Looking ahead, we anticipate taking decisive steps to address our margin compression while continuing to build the infrastructure needed to serve our growing customer base.”
Conference Call & Audio Webcast
Armlogi’s management team will hold an earnings conference call at 8:00 AM Pacific Time (11:00 AM Eastern Time) on Friday, February 14, 2025, to discuss the Company’s financial results and provide an overview of the Company’s operations. Aidy Chou, Chairman and Chief Executive Officer, and Scott Hsu, Chief Financial Officer, will lead the conference call with other company executives available to answer questions.
To access the call by phone, please dial 1-800- 445-7795 (international callers, please dial 1-785-424-1699) approximately 10 minutes before the start of the call. Refer to conference ID: ARMLOGI. **NOTE: THIS CONFERENCE ID WILL BE REQUIRED FOR ENTRY
A live audio conference call webcast will be available online at https://viavid.webcasts.com/starthere.jsp?ei=1707817&tp_key=62a55be146.
About Armlogi Holding Corp.
Armlogi Holding Corp., based in Walnut, CA, is a U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions relating to warehouse management and order fulfillment. The Company caters to cross-border e-commerce merchants looking to establish overseas warehouses in the U.S. market. With eleven warehouses covering over three and a half million square feet, the Company offers comprehensive one-stop warehousing and logistics services. The Company’s warehouses are equipped with facilities and technology for handling and storing large and bulky items. For more information, please visit www.armlogi.com.
Safe Harbor Statement
This press release contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us.
Company Contact:
info@armlogi.com
Investor Relations Contact:
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com
(tables follow)
| ARMLOGI HOLDING CORP. CONDENSED CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2024 AND JUNE 30, 2024 (US$, except share data, or otherwise noted) | |||||||
| December 31, 2024 | June 30, 2024 | ||||||
| US$ | US$ | ||||||
| Unaudited | Audited | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash | 5,118,815 | 7,888,711 | |||||
| Accounts receivable and other receivable, net | 31,204,112 | 25,465,044 | |||||
| Other current assets | 1,905,457 | 1,624,611 | |||||
| Prepaid expenses | 879,768 | 1,129,435 | |||||
| Loan receivables | 3,812,293 | 1,877,131 | |||||
| Total current assets | 42,920,445 | 37,984,932 | |||||
| Non-current assets | |||||||
| Restricted cash | 2,259,932 | 2,061,673 | |||||
| Long-term loan receivables | — | 2,908,636 | |||||
| Property and equipment, net | 11,796,130 | 11,010,407 | |||||
| Intangible assets, net | 75,051 | 92,708 | |||||
| Right-of-use assets – operating leases | 105,512,506 | 111,955,448 | |||||
| Right-of-use assets – finance leases | 235,447 | 309,496 | |||||
| Other non-current assets | 915,199 | 711,556 | |||||
| Total assets | 163,714,710 | 167,034,856 | |||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Liabilities: | |||||||
| Current liabilities | |||||||
| Accounts payable and accrued liabilities | 5,533,126 | 7,502,339 | |||||
| Contract liabilities | 1,248,844 | 276,463 | |||||
| Income taxes payable | — | 57,589 | |||||
| Due to related parties | — | 350,209 | |||||
| Accrued payroll liabilities | 389,070 | 405,250 | |||||
| Commitment fee payable | 250,000 | — | |||||
| Convertible notes | 7,664,657 | — | |||||
| Operating lease liabilities – current | 25,021,785 | 24,216,446 | |||||
| Finance lease liabilities – current | 117,500 | 155,625 | |||||
| Total current liabilities | 40,224,982 | 32,963,921 | |||||
| Non-current liabilities | |||||||
| Operating lease liabilities – non-current | 90,172,693 | 93,126,092 | |||||
| Finance lease liabilities – non-current | 135,441 | 169,683 | |||||
| Deferred income tax liabilities | — | 1,536,455 | |||||
| Total liabilities | 130,533,116 | 127,796,151 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ equity | |||||||
| Common stock, US | 417 | 416 | |||||
| Additional paid-in capital | 15,718,863 | 15,468,864 | |||||
| Retained earnings | 17,462,314 | 23,769,425 | |||||
| Total stockholders’ equity | 33,181,594 | 39,238,705 | |||||
| Total liabilities and stockholders’ equity | 163,714,710 | 167,034,856 | |||||
| ARMLOGI HOLDING CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2024 AND 2023 (US$, except share data, or otherwise noted) | |||||||||||||||
| Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 | Six Months Ended December 31, 2024 | Six Months Ended December 31, 2023 | ||||||||||||
| US$ | US$ | US$ | US$ | ||||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | ||||||||||||
| Revenue | 51,143,682 | 42,004,083 | 93,625,578 | 83,249,928 | |||||||||||
| Costs of sales | 50,660,690 | 34,326,234 | 96,749,376 | 70,345,647 | |||||||||||
| Gross profit (loss) | 482,992 | 7,677,849 | (3,123,798 | ) | 12,904,281 | ||||||||||
| Operating costs and expenses: | |||||||||||||||
| General and administrative | 2,659,156 | 2,919,547 | 6,327,981 | 4,827,703 | |||||||||||
| Total operating costs and expenses | 2,659,156 | 2,919,547 | 6,327,981 | 4,827,703 | |||||||||||
| Income (loss) from operations | (2,176,164 | ) | 4,758,302 | (9,451,779 | ) | 8,076,578 | |||||||||
| Other (income) expenses: | |||||||||||||||
| Other income, net | (564,656 | ) | (446,179 | ) | (1,770,321 | ) | (988,394 | ) | |||||||
| Loss on disposal of assets | 43,625 | — | 43,625 | — | |||||||||||
| Finance costs | 79,989 | 13,351 | 88,997 | 26,738 | |||||||||||
| Total other (income) expenses | (441,042 | ) | (432,828 | ) | (1,637,699 | ) | (961,656 | ) | |||||||
| Income (loss) before provision for income taxes | (1,735,122 | ) | 5,191,130 | (7,814,080 | ) | 9,038,234 | |||||||||
| Current income tax expense | — | 1,229,121 | — | 1,878,426 | |||||||||||
| Deferred income tax (recovery) expense | (75,882 | ) | 217,184 | (1,506,969 | ) | 660,207 | |||||||||
| Total income tax (recovery) expenses | (75,882 | ) | 1,446,305 | (1,506,969 | ) | 2,538,633 | |||||||||
| Net income (loss) | (1,659,240 | ) | 3,744,825 | (6,307,111 | ) | 6,499,601 | |||||||||
| Total comprehensive (loss) income | (1,659,240 | ) | 3,744,825 | (6,307,111 | ) | 6,499,601 | |||||||||
| Basic & diluted net (loss) earnings per share | (0.04 | ) | 0.09 | (0.15 | ) | 0.16 | |||||||||
| Weighted average number of shares of common stock-basic and diluted | 41,642,442 | 40,000,000 | 41,638,221 | 40,000,000 | |||||||||||
| ARMLOGI HOLDING CORP. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED DECEMBER 31, 2024 AND 2023 (UNAUDITED) (US$, except share data, or otherwise noted) | |||||||
| For The Six Months Ended December 31, 2024 | For The Six Months Ended December 31, 2023 | ||||||
| US$ | US$ | ||||||
| Unaudited | Unaudited | ||||||
| Cash Flows from Operating Activities: | |||||||
| Net income (loss) | (6,307,111 | ) | 6,499,601 | ||||
| Net loss from disposal of fixed assets | 43,625 | 6,895 | |||||
| Depreciation of property and equipment and right-of-use financial assets | 1,290,471 | 919,273 | |||||
| Amortization | 17,659 | 17,659 | |||||
| Non-cash operating leases expense | 4,358,758 | 3,155,637 | |||||
| Accretion of convertible note | 72,184 | — | |||||
| Current estimated credit loss | 228,363 | (24,563 | ) | ||||
| Deferred income taxes | (1,536,455 | ) | 660,207 | ||||
| Interest income | (63,233 | ) | (54,374 | ) | |||
| Changes in working capital: | |||||||
| Accounts receivable and other receivables | (5,967,431 | ) | (7,651,253 | ) | |||
| Other current assets | (280,846 | ) | (358,368 | ) | |||
| Other non-current assets | (203,643 | ) | — | ||||
| Prepaid expenses | 249,667 | 652,335 | |||||
| Accounts payable & accrued liabilities | (1,969,214 | ) | (2,022,280 | ) | |||
| Contract liabilities | 972,381 | (244,403 | ) | ||||
| Income tax payable | (57,589 | ) | 1,706,868 | ||||
| Accrued payroll liabilities | (16,180 | ) | 231,701 | ||||
| Net changes in derecognized ROU and operating lease liabilities | (63,874 | ) | — | ||||
| Net cash (used in) provided from operating activities | (9,232,468 | ) | 3,494,935 | ||||
| Cash Flows from Investing Activities: | |||||||
| Purchase of property and equipment | (2,070,770 | ) | (2,948,594 | ) | |||
| Loan disbursement | (1,000,000 | ) | (1,000,000 | ) | |||
| Proceeds from loan repayments | 2,036,705 | — | |||||
| Proceeds from sale of property and equipment | 25,000 | — | |||||
| Net cash used in investing activities | (1,009,065 | ) | (3,948,594 | ) | |||
| Cash Flows from Financing Activities: | |||||||
| Proceeds received from related parties | — | 1,012,353 | |||||
| Deferred issuance costs for initial public offering | — | (282,742 | ) | ||||
| Repayment to related parties | (350,209 | ) | — | ||||
| Net proceeds from Standby Equity Purchase | 8,092,473 | — | |||||
| Repayment of finance lease liabilities | (72,368 | ) | (83,196 | ) | |||
| Capital contributions from stockholders | — | 265,000 | |||||
| Net cash provided by financing activities | 7,669,896 | 911,415 | |||||
| Net increase (decrease) in cash and restricted cash | (2,571,637 | ) | 457,756 | ||||
| Cash and restricted cash, beginning of year | 9,950,384 | 6,558,099 | |||||
| Cash and restricted cash, end of six months periods | 7,378,747 | 7,015,855 | |||||
| The following table provides a reconciliation of cash and restricted cash reported within the Consolidated Balance Sheets that equal the totals of the same amounts shown in the Consolidated Statements of Cash Flows: | |||||||
| Cash | 5,118,815 | 4,954,182 | |||||
| Restricted cash – non-current | 2,259,932 | 2,061,673 | |||||
| Total cash and restricted cash shown in the Consolidated Balance Sheet | 7,378,747 | 7,015,855 | |||||
| Supplemental Disclosure of Cash Flows Information: | |||||||
| Cash paid for income tax | (87,074 | ) | (171,559 | ) | |||
| Cash paid for interest | (16,813 | ) | (26,738 | ) | |||
| Non-cash Transactions: | |||||||
| Right-of-use assets acquired in exchange for operating lease liabilities | 6,184,333 | 37,607,178 | |||||
| Decrease in right-of-use assets due to remeasurement of lease terms | 884,394 | — | |||||
| Shares issued to settle commitment fee | 250,000 | — | |||||
FAQ
What caused BTOC's net loss in Q2 2025?
How much did BTOC's revenue grow in Q2 2025?
What is BTOC's current warehouse capacity as of Q2 2025?
How much cash does BTOC have as of December 31, 2024?
What financing arrangements did BTOC secure in Q2 2025?
