Company Summary: Freight Technologies, Inc. (Fr8Tech)

Business Overview

Freight Technologies, Inc. (NASDAQ: FRGT), through its wholly-owned subsidiaries Fr8App and Freight App de México, operates as a technology company specializing in freight management and logistics solutions. The company offers proprietary digital platforms powered by artificial intelligence (AI) and machine learning to optimize and automate supply chain processes across North America.

Core Operations & Platforms

• Main Platform: Fr8App, a B2B freight-matching digital marketplace for over-the-road (OTR) freight, primarily focusing on full truckload (FTL) shipments within the US, Mexico, and Canada, including cross-border trade.
• Additional Platforms & Services:
  • Fr8Now: Launch in 2023 for less-than-truckload (LTL) shipping in Mexico.
  • Waavely: Launched in July 2024, a platform for ocean freight booking and management of container shipments.
  • Fleet Rocket: Launched in February 2025, a Transportation Management System (TMS) SaaS platform for brokers, shippers, and logistics operators.
  • Fr8Fleet: A private fleet service for large enterprise clients requiring dedicated, ongoing capacity.
  • Fr8Radar: Provides real-time GPS tracking and shipment visibility.
  • AI-Powered Tendering Bot: Launched in March 2025 to automate load tendering processes, extracting shipment info from unstructured data sources and posting to the marketplace.

Business Focus & Market

• Facilitates matching of freight demand from shippers with supply from carriers through its AI-driven platform.
• Focused on regional cross-border transport between Mexico, the US, and Canada, leveraging the USMCA trade agreement.
• Serves a range of customers including large corporations like Kimberly Clark de Mexico, and smaller shippers and carriers.
• Works with reputable Carriers in Mexico and North America, and pre-screens all users for regulatory compliance.
• Intends to expand market share in core U.S.-Mexico cross-border routes and the domestic markets of Mexico, U.S., and Canada.

Financial & Operational Highlights (2024)

• Revenue: $13.73 million (decreased from $17.06 million in 2023, a 19.5% decline)
• Net Loss: $(5.60) million (improved from $(9.33) million in 2023)
• Gross Margin: 9.8% (up from 7.9% in 2023)
• Employees: 82 total (74 in Mexico, remainder in the U.S. and virtual)
• Major Customer: Kimberly Clark de Mexico accounted for 88% of receivables and 48% of revenue in 2024.
• Cash & Liquidity: $204,032 in cash (as of March 31, 2025); significant net operating losses and negative cash flows from operations.
• Market Cap (June 2024): Approximately $5.1 million based on market value of non-affiliate shares.
• Stock Outstanding: 2,265,074 shares of ordinary stock with no par value outstanding as of March 31, 2025.
• Corporate Status: Listed on NASDAQ, but has experienced regulatory compliance issues, including being de-listed from certain Nasdaq tiers at times.

Development & Investment

• Continually investing in platform development, software enhancements, and new product launches.
• Focused on automation (including AI) to improve efficiency and reduce costs.
• Launched multiple product versions since 2017, with new services like Waavely and Fleet Rocket introduced in 2024 and 2025 respectively.
• Has a history of operating losses, significant capital raises, and ongoing efforts to achieve profitability.

Key Risks & Financial Position

• Significant operating losses with net deficits of nearly $44.9 million (2024) and continued need for capital raises.
• Doubt about going concern status due to liquidity constraints.
• Revenue concentration risk with Kimberly Clark de Mexico representing a large portion of revenue.
• Regulatory compliance risks in various jurisdictions with a focus on U.S., Mexico, and Canada.
• Competitive landscape includes major logistics companies, start-ups, and technology-focused entrants.
• Market volatility and share price fluctuations have impacted listing and trading status historically.

Summary

Freight Technologies, Inc. develops and operates AI-powered digital freight marketplaces for FTL, LTL, and ocean freight across North America, with a focus on U.S.-Mexico cross-border trade. The company offers comprehensive platforms for freight matching, fleet management, ocean freight, and transportation systems, targeting both large enterprise customers and smaller shippers and carriers, with notable growth initiatives and ongoing financial challenges.