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Transportation and Logistics Systems Inc (TLSS0.00%). has submitted its Form 10-K filing for the fiscal year ended December 31, 2023.
The filing indicates that the company ceased all operations by mid-February 2024. Prior to this, the company and its subsidiaries provided logistics and transportation services, including ecommerce fulfillment and delivery services.
On December 1, 2023, the company's subsidiaries TLSS-FC, Inc. and Freight Connections filed for Chapter 7 bankruptcy in New Jersey. Subsequently, on February 27, 2024, Cougar Express filed for Chapter 7 bankruptcy in New York.
The company reported a net loss of $14,264,646 for the year ended December 31, 2023, compared to a net loss of $8,076,066 for the previous year. The loss from discontinued operations was $11,738,445 for 2023.
Operating expenses decreased to $2,458,141 in 2023 from $4,214,373 in 2022, primarily due to reductions in compensation and legal fees.
The filing notes that the company has been unable to meet its periodic reporting obligations under the Securities Exchange Act of 1934 due to insolvency.
The company is evaluating possible restructuring of its debts and exploring new business opportunities, but there is no assurance of success.
The report highlights several legal proceedings, including a shareholder derivative action and various litigation matters involving the company's subsidiaries.
As of December 31, 2023, the company had a working capital deficit of $7,997,436 and cash of $218,152, indicating significant financial challenges.
The company has identified material weaknesses in its internal controls over financial reporting, specifically a lack of segregation of duties and insufficient accounting resources.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Transportation and Logistics Systems Inc annual 10-K report dated December 6, 2024. To report an error, please email earnings@qz.com.