Transportation and Logistics Systems, Inc. Announces Financial Results for the First Quarter Ended March 31, 2022
Back to Newsroom

Transportation and Logistics Systems, Inc. Announces Financial Results for the First Quarter Ended March 31, 2022

Friday, May 13, 2022 8:30 AM
Transportation & Logistics Systems
Topic:
Earnings

Company Anticipates Progress on M&A Front During Second Quarter

JUPITER, FL / ACCESSWIRE / May 13, 2022 / Transportation and Logistics Systems, Inc. (OTCQB:TLSS), ("TLSS", or the "Company"), a logistics service provider, announced that today, May 13, 2022, the Company filed its Form 10-Q, Quarterly Report for the first quarter ended March 31, 2022.

Sebastian Giordano, Chairman and CEO of TLSS, commented, "While Q1 showed a loss of $2.1 million, of which $1.2 million related to non-cash adjustments and a one-time litigation settlement accrual, these results were absolutely in line with management's budgeted expectations for the period. With roughly $6 million in cash and no debt, we are very encouraged by how the Company is positioned right now, as we are poised to accelerate the Company's growth trajectory and path to profitability, that we believe, will start to become evident as Q2 unfolds."

Financial Results for the First Quarter Ended March 31, 2022

Revenue for the three months ended March 31, 2022 decreased $233,000, or 15.6%, to $1,259,000, as compared to $1,492,000, for the same period last year. This decrease was primarily the result of decreases in revenue attributable to the Company's former subsidiary Shypdirect's mid-mile and long-haul business with Amazon of $1,155,000 and from other customers of $37,000, as Shypdirect was no longer in operations during the same period this year. These decreases were partially offset by revenue increases of $37,000 from Shyp FX and $923,000 from Cougar Express, which were businesses the Company acquired in January 2021 and March 2021, respectively, and which were both in operations the entire first quarter of 2022.

The Company generated a net loss attributable to common shareholders for the three months ended March 31, 2022 of $2,146,000, as compared to a net loss attributable to common shareholders of $3,099,000 for the same period last year. This quarter's results comprised: (i) a loss from operations of $1,801,000, including $836,000 in non-cash stock-based compensation; (ii) one-time settlement expense of $229,000; (iii) non-cash deemed dividends related to dividends accrued on Series E and Series G preferred stock of $109,000; and (iv) interest expense of $7,800.

About Transportation and Logistics Systems, Inc.

TLSS, through its wholly owned operating subsidiaries, Cougar Express, Inc and Shyp FX, Inc., operates as a full-service logistics and transportation company. 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 stockholders' equity and our ability to achieve sustained profitability; remaining weaknesses in our internal control over financial reporting and our ability to maintain effective controls over financial reporting in the future; our remaining liabilities and indebtedness could adversely affect our business, financial condition and results of operations and our ability to meet our payment obligations; unanticipated and materially adverse developments in our few remaining litigations; 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 Relations Contact

Landon Capital
Keith Pinder
(404) 995-6671
[email protected]
www.landoncapital.net

TRANSPORTATION AND LOGISTICS SYSTEMS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

March 31, December 31,
2022 2021
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash
$6,063,241 $6,067,692
Accounts receivable, net
461,575 481,734
Prepaid expenses and other current assets
210,459 197,336
Total Current Assets
6,735,275 6,746,762
OTHER ASSETS:
Security deposit
39,495 33,340
Property and equipment, net
530,872 577,205
Intangible assets, net
2,032,572 2,177,382
Total Other Assets
2,602,939 2,787,927
TOTAL ASSETS
$9,338,214 $9,534,689
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable, current portion
$315 $283,141
Accounts payable
310,871 312,772
Accrued expenses
607,634 212,975
Insurance payable
34,563 98,255
Accrued compensation and related benefits
78,139 98,964
Total Current Liabilities
1,031,522 1,006,107
LONG-TERM LIABILITIES:
Notes payable, net of current portion
- 12,455
Total Long-term Liabilities
- 12,455
Total Liabilities
1,031,522 1,018,562
Commitments and Contingencies (See Note 11)
-
SHAREHOLDERS' EQUITY:
Preferred stock, par value $0.001; authorized 10,000,000 shares: Series B convertible preferred stock, par value $0.001 per share; 1,700,000 shares designated; 700,000 and 700,000 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively (Liquidation value $700 and $700, respectively)
700 700
Series D preferred stock, par value $0.001 per share; 1,250,000 shares designated; no shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively ($6.00 per share liquidation value)
- -
Series E preferred stock, par value $0.001 per share; 562,250 shares designated; 31,658 and 51,605 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively ($13.34 per share liquidation value)
32 52
Series G preferred stock, par value $0.001 per share; 1,000,000 shares designated; 710,000 and 615,000 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively ($10.00 per share liquidation value)
710 615
Preferred stock
710 615
Common stock, par value $0.001 per share; 10,000,000,000 shares authorized; 3,187,771,983 and 2,926,528,666 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively
3,187,772 2,926,529
Additional paid-in capital
126,280,247 124,604,718
Accumulated deficit
(121,162,769) (119,016,487)
Total Shareholders' Equity
8,306,692 8,516,127
Total Liabilities and Shareholders' Equity
$9,338,214 $9,534,689

TRANSPORTATION AND LOGISTICS SYSTEMS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

For the Three Months Ended
March 31,
2022 2021
REVENUES
$1,259,333 $1,491,699
COST OF REVENUES
971,002 1,898,778
GROSS PROFIT (LOSS)
288,331 (407,079)
OPERATING EXPENSES:
Compensation and related benefits
1,356,410 368,609
Legal and professional fees
349,494 530,538
Rent
101,337 133,955
General and administrative expenses
281,943 196,203
Total Operating Expenses
2,089,184 1,229,305
LOSS FROM OPERATIONS
(1,800,853) (1,636,384)
OTHER INCOME (EXPENSES):
Interest expense
(7,867) (83,509)
Interest expense - related parties
- (22,192)
Gain on debt extinguishment, net
- 59,853
Settlement expense
(228,511) -
Other income
- 108,035
Derivative expense
- (694,983)
Total Other Income (Expenses)
(236,378) (632,796)
LOSS BEFORE INCOME TAXES
(2,037,231) (2,269,180)
Provision for income taxes
- -
NET LOSS
(2,037,231) (2,269,180)
Deemed dividends related to beneficial conversion features, and accrued dividends
(109,051) (829,836)
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS
$(2,146,282) $(3,099,016)
NET LOSS PER COMMON SHARE - BASIC AND DILUTED
Basic and diluted
$(0.00) $(0.00)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic and diluted
3,040,797,022 1,747,413,151

TRANSPORTATION AND LOGISTICS SYSTEMS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

For the Three Months Ended
March 31,
2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$(2,037,231) $(2,269,180)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense
191,143 85,760
Amortization of debt discount to interest expense
- 19,013
Stock-based compensation
836,133 -
Derivative expense, net
- 694,983
Non-cash portion of gain on extinguishment of debt, net
- (59,853)
Rent expense
- 1,563
Change in operating assets and liabilities:
Accounts receivable
20,159 164,345
Prepaid expenses and other current assets
(13,123) 248,906
Security deposit
(6,155) (8,000)
Accounts payable and accrued expenses
283,707 350,348
Insurance payable
(63,692) (212,331)
Accrued compensation and related benefits
(20,825) (21,886)
NET CASH USED IN OPERATING ACTIVITIES
(809,884) (1,006,332)
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash acquired in acquisition
- 10,031
Cash used for acquisitions
- (2,133,146)
NET CASH USED IN INVESTING ACTIVITIES
- (2,123,115)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from sale of series E preferred share units
- 3,258,000
Net proceeds from sale of series G preferred share units
855,000 -
Proceeds from exercise of warrants
245,714 -
Repayment of notes payable
(295,281) (37,114)
Net repayments of related party advances
- (7,808)
NET CASH PROVIDED BY FINANCING ACTIVITIES
805,433 3,213,078
NET (DECREASE) INCREASE IN CASH
(4,451) 83,631
CASH, beginning of period
6,067,692 579,283
CASH, end of period
$6,063,241 $662,914
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for:
Interest
$7,867 $33,415
Income taxes
$- $-
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Conversion of debt and accrued interest for common stock
$- $170,000
Reclassification of due to related parties to accrued expenses
$- $94,000
Deemed dividend related to price protection and beneficial conversion features
$- $777,510
Conversion of Series E preferred stock to common stock
$20 $-
Accrual of preferred stock dividends
$109,051 $-
ACQUISITIONS:
Assets acquired:
Accounts receivable
$- $265,175
Prepaid expenses
- 7,534
Property and equipment
- 257,416
Right of use assets
- 44,388
Other receivable
- 622,240
Security deposits
- 33,340
Total assets acquired
- 1,230,093
Less: liabilities assumed:
Accounts payable
- 132,155
Accrued expenses
- 79,138
Notes payable
- 1,491,458
Lease liabilities
- 44,388
Total liabilities assumed
- 1,747,139
Increase in intangible assets - non-cash
$- $517,046

SOURCE: Transportation & Logistics Systems

Topic:
Earnings
Back to newsroom
Back to Newsroom