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Armlogi Reports Financial Results for the First Quarter Ended September 30, 2024

WALNUT, Calif., Nov. 15, 2024 (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 reported financial results for the first quarter ended September 30, 2024.

Financial Highlights:

Operational Highlights

Management Commentary

Aidy Chou, Chairman and Chief Executive Officer of Armlogi, commented, “Our first quarter posed several challenges, primarily driven by increased costs and fluctuating customer demand. Despite these hurdles, we continue to invest in strategic growth initiatives and infrastructure enhancements that position us well for the long term. Our recent partnerships and expansion efforts are already showing promising results in streamlining operations and broadening our service capabilities. We are committed to navigating the current challenges, focusing on operational excellence and strategic growth.”

About Armlogi Holding Corp.
Armlogi Holding Corp., based in Walnut, CA, is a fast-growing 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 ten warehouses covering over three 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.

Forward-Looking Statements
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,” “intends,” “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 SEPTEMBER 30, 2024 AND JUNE 30, 2024
(US$, except share data, or otherwise noted)
 
  September 30,
2024
    June 30,
2024
 
  US$     US$  
  Unaudited     Audited  
Assets          
Current assets          
Cash   2,924,176     7,888,711  
Accounts receivable and other receivable, net   25,177,485     25,465,044  
Other current assets   1,875,381     1,624,611  
Prepaid expenses   812,691     1,129,435  
Loan receivables   861,554     1,877,131  
Total current assets   31,651,287     37,984,932  
Non-current assets            
Restricted cash – non-current   2,061,673     2,061,673  
Long-term loan receivables   3,921,243     2,908,636  
Property and equipment, net   11,785,272     11,010,407  
Intangible assets, net   83,880     92,708  
Right-of-use assets – operating leases   106,899,045     111,955,448  
Right-of-use assets – finance leases   270,762     309,496  
Other non-current assets   817,641     711,556  
Total assets   157,490,803     167,034,856  
             
LIABILITIES AND STOCKHOLDERS’ EQUITY            
Liabilities:            
Current liabilities            
Accounts payable and accrued liabilities   5,574,620     7,502,339  
Contract liabilities   774,711     276,463  
Income taxes payable       57,589  
Due to related parties   350,209     350,209  
Accrued payroll liabilities   779,680     405,250  
Operating lease liabilities – current   26,272,945     24,216,446  
Finance lease liabilities – current   155,625     155,625  
Total current liabilities   33,907,790     32,963,921  
Non-current liabilities            
Operating lease liabilities – non-current   88,695,370     93,126,092  
Finance lease liabilities – non-current   133,852     169,683  
Deferred income tax liabilities   162,957     1,536,455  
Total liabilities   122,899,969     127,796,151  
             
Commitments and contingencies            
Stockholders’ equity            
Common stock, US$0.00001 par value, 100,000,000 shares authorized, 41,634,000 issued and outstanding as of September 30, 2024 and June 30, 2024, respectively   416     416  
Additional paid-in capital   15,468,864     15,468,864  
Retained earnings   19,121,554     23,769,425  
Total stockholders’ equity   34,590,834     39,238,705  
Total liabilities and stockholders’ equity   157,490,803     167,034,856  
 
ARMLOGI HOLDING CORP.
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(US$, except share data, or otherwise noted)
 
  For The
Three Months
Ended
September 30,
2024
    For The
Three Months
Ended
September 30,
2023
 
  US$     US$  
  Unaudited     Unaudited  
Revenue   42,481,896     41,245,845  
Costs of sales   46,088,686     36,019,413  
Gross profit (loss)   (3,606,790 )   5,226,432  
             
Operating costs and expenses:            
General and administrative   3,668,825     1,908,156  
Total operating costs and expenses   3,668,825     1,908,156  
             
Income (loss) from operations   (7,275,615 )   3,318,276  
             
Other (income) expenses:            
Other income, net   (1,205,665 )   (542,215 )
Finance costs   9,008     13,387  
Total other (income) expenses   (1,196,657 )   (528,828 )
             
Income (loss) before provision for income taxes   (6,078,958 )   3,847,104  
             
Current income tax expense (recovery)   (57,589 )   649,305  
Deferred income tax expense (recovery)   (1,373,498 )   443,023  
Total income tax expenses (recovery)   (1,431,087 )   1,092,328  
Net income (loss)   (4,647,871 )   2,754,776  
Total comprehensive income (loss)   (4,647,871 )   2,754,776  
             
Basic & diluted net earnings per share   (0.11 )   0.07  
Weighted average number of shares of common stock-basic   41,634,000     40,000,000  
Weighted average number of shares of common stock-diluted   41,714,000     40,000,000  
             
ARMLOGI HOLDING CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 (UNAUDITED)
(US$, except share data, or otherwise noted)
 
  For The
Three Months Ended
September 30,
2024
    For The
Three Months Ended
September 30,
2023
 
  US$     US$  
  Unaudited     Unaudited  
Cash Flows from Operating Activities:          
Net income (loss)   (4,647,871 )   2,754,776  
Adjustments for items not affecting cash:            
Depreciation of property and equipment and right-of-use financial assets   617,166     433,366  
Amortization   8,829     8,829  
Non-cash operating leases expense   2,682,178     423,085  
Current estimated credit loss   126,936     (335,336 )
Accretion of finance lease liabilities   9,008     13,387  
Deferred income taxes   (1,373,498 )   443,022  
Interest income   (33,736 )    
Changes in operating assets and liabilities            
Accounts receivable and other receivables   160,623     569,051  
Other current assets   (250,770 )   (51,242 )
Other non-current assets   (106,085 )    
Prepaid expenses   316,745     (98,833 )
Accounts payable & accrued liabilities   (1,927,718 )   (2,130,478 )
Contract liabilities   498,249     (8,966 )
Income tax payable   (57,589 )   649,306  
Accrued payroll liabilities   374,429     391,453  
Net cash (used in) provided from operating activities   (3,603,104 )   3,061,420  
             
Cash Flows from Investing Activities:            
Purchase of property and equipment   (1,353,297 )   (1,145,104 )
Loan disbursement   (1,000,000 )   (1,019,559 )
Proceeds from loan repayments   1,036,705      
Net cash used in investing activities   (1,316,592 )   (2,164,663 )
             
Cash Flows from Financing Activities:            
Net proceeds received from (repaid to) related parties       491,978  
Proceeds (lend to) from related parties       511,353  
Repayments of finance lease liabilities   (44,839 )   (54,938 )
Deferred issuance costs for initial public offering       (104,049 )
Capital contributions from stockholders       95,000  
Net cash provided by (used in) financing activities   (44,839 )   939,344  
             
Net increase (decrease) in cash and restricted cash   (4,964,535 )   1,836,101  
Cash and restricted cash, beginning of year   9,950,384     6,558,099  
Cash and restricted cash, end of year   4,985,849     8,394,200  
             

The following table provides a reconciliation of cash and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same amounts shown in the Consolidated Statements of Cash Flows:

             
Cash   2,924,176     6,682,527  
Restricted cash – non-current   2,061,673     1,711,673  
Total cash and restricted cash shown in the Consolidated Balance Sheet   4,985,849     8,394,200  
             
Supplemental Disclosure of Cash Flows Information:            
Non-cash Transactions:            
Right-of-use assets acquired in exchange for operating lease liabilities       37,607,178  
             


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