Toppoint Holdings Inc.
For the period ended Dec 31, 2025. Filed Mar 25, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Mar 25, 2026
TOPP$0.11-3.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2024-12-31; filed 2025-04-15.
0001213900-25-032145
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2025-12-31; filed 2026-03-25.
0001213900-26-034067
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 64 previous paragraphs and 76 current paragraphs.
36 unchanged; 13 reworded; 27 added; 15 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 13 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (27)
Current report
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Current report
Revenue for the years ended December 31, 2025, and 2024 was $16,548,734 and $16,039,513, respectively, representing an increase of $509,221, or approximately 3%. The increase in revenue during 2025 was primarily attributable to growth in new commodity segments, particularly scrap metal and import freight. The Company’s expansion of direct relationships with leading exporters of scrap metal and importers contributed significantly to this increase in revenue.
Current report
The market for U.S. recovered paper exports has experienced significant volatility in recent years. According to industry reports citing U.S. Census Bureau trade data, U.S. recovered paper exports declined to approximately 13.3 million short tons in 2024, down 11% from 2023 and among the lowest annual export levels in recent years. Historically, China was the largest importer of U.S. recovered paper; however, following China’s restrictions on imports of unsorted waste paper, export demand has shifted to other markets, including India and certain Southeast Asian countries. In 2025, market conditions showed only a modest improvement in export volumes, with U.S. recovered paper exports totaling approximately 7.22 million metric tons during the first seven months of 2025, up about 4% from the comparable prior-year period. However, industry sources continued to characterize the 2025 market as soft, citing uneven overseas demand, weak pricing conditions for key grades such as OCC and mixed paper, and increased domestic consumption by U.S. mills, particularly on the West Coast. For the years ended December 31, 2025 and 2024, approximately 4,152 and 2,576 orders were completed, involving 13,232 and 16,641 loads, which amounted to approximately 496,200 and 465,948 tons of waste paper, respectively. While the number of loads decreased during the period, total volume increased by approximately 6.5%, suggesting a higher average volume per load. Revenue from paper decreased by $1,556,324, or 14.5%, to $9,153,668 for the year ended December 31, 2025 from $10,709,992 for the year ended December 31, 2024. The decrease reflects a combination of changes in load count, shipment volume per load, shipment mix, and pricing during the period.
Current report
U.S. scrap metal export markets, particularly for non-ferrous commodities such as aluminum and copper, experienced continued demand in recent years despite periodic volatility driven by global pricing, trade policy changes and shifts in destination markets. Industry data indicates that U.S. aluminum scrap exports increased approximately 17% year over year in 2024 to about 2.4 million metric tons, reflecting sustained international demand for recycled metals, while copper scrap exports remained significant at approximately 957,000 metric tons with an estimated value of $4.5 billion. In 2025, export markets for non-ferrous scrap continued to exhibit volatility due to evolving trade policies and increased domestic demand for secondary metals; however, global demand for recyclable feedstock remained an important driver of export activity. Against this industry backdrop, the Company experienced substantial growth in its scrap metal export business during 2025, primarily attributable to the expansion of direct client relationships with leading scrap metal exporters. As a result of these relationships and continued demand for non-ferrous scrap exports, the Company increased export shipping volumes by 1,170 loads in 2025 compared to 2024, representing an approximate 94.1% increase year over year. This growth in shipment volume contributed to a 77.4% increase in revenue from scrap metal export activities, representing an additional $890,996, year-over-year, rising from $1,150,794 in 2024 to $2,041,790 in 2025. While global scrap metal export markets may continue to experience fluctuations due to economic conditions, trade policies and shifts in domestic consumption, the Company believes that its direct relationships with major scrap metal exporters and participation in the non-ferrous export supply chain position to benefit from continued demand for recycled metals in international markets.
Current report
U.S. containerized import markets experienced significant volatility in 2025 due in part to shifting tariff policies, changes in global sourcing patterns and uncertainty surrounding U.S. trade policy. Industry reports indicate that U.S. container import volumes fluctuated throughout 2025 as importers accelerated shipments earlier in the year to avoid anticipated tariffs, followed by periods of weaker demand as higher duties and inventory adjustments affected cargo flows. Overall, U.S. container imports in 2025 were estimated at approximately 25.4 million TEUs, slightly below 2024 levels, reflecting the impact of tariff uncertainty and cautious inventory management by importers. These conditions contributed to uneven monthly import volumes throughout the year, particularly for shipments originating from Asia.
Current report
Despite this volatility in import volumes, the Company experienced substantial growth in its import freight business during 2025. Import loads increased by 2,218 containers, rising to 6,275 loads in 2025 compared to 4,057 loads in 2024, representing growth of approximately 54.7% year over year. Correspondingly, import revenue increased to $4,837,876 in 2025 from $3,556,824 in 2024, representing a 36% increase and additional revenue of $1,281,052. The Company believes this growth was primarily driven by the expansion of direct relationships with importers and a strategic focus on working directly with cargo owners rather than entering rate-sensitive arrangements with price-cutting brokerage intermediaries. As a result, even during periods of tariff-driven market volatility and fluctuating container volumes, the Company was able to expand its share of import-related trucking activity and generate meaningful growth in both shipment volumes and revenue.
Current report
Costs of revenue
Current report
Gross profit
Current report
As a result of the foregoing, our gross profit decreased by $1,270,875 to $497,725 for the year ended December 31, 2025 from $1,768,600 for the year ended December 31, 2024. Gross margin decreased to 3% from 11% in the prior year. The decrease was primarily attributable to the increase in cost of revenue, which increased at a faster pace than revenue, primarily driven by higher depreciation expenses, increased dispatch service costs, and higher parking rent expenses related to our leased parking facilities.
Current report
General and administrative
Current report
Our general and administrative expenses consist primarily of automobile, office, insurance, payroll, rent expenses and stock compensation expenses. Our general and administrative expenses increased by $5,460,912 or 226% to $7,875,263 for the year ended December 31, 2025 from $2,414,351 for the year ended December 31, 2024. This change primarily results from an increase in professional fees from going public, travel expenses related to business development and depreciation expense, as well as the recognition of stock-based compensation in the amount of $5,363,550.
Current report
Income tax expense (benefit)
Current report
Net (loss) income
Current report
For the year ended December 31, 2025, the NLC for Waste Paper decreased by 3,409, or 20.5%, to 13,232, from 16,641 for the year ended December 31, 2024. The decrease primarily reflected continued softness in export demand for recovered paper and increased domestic mill consumption, which reduced the number of export shipments during the period.
Current report
For the year ended December 31, 2025, the NLC for Waste Metal increased by 1,170, or 94.1%, to 2,413, from 1,243 for the year ended December 31, 2024. The increase was primarily attributable to higher demand for non-ferrous scrap exports and growth in shipments from existing and new customers.
Current report
For the year ended December 31, 2025, the NLC for Forestry increased by 44, or 16.2%, to 315, from 271 for the year ended December 31, 2024. The increase reflected higher customer shipping activity during the year due to volatility caused by implication of tariffs.
Current report
For the year ended December 31, 2025, the NLC for Import increased by 2,218, or 54.7%, to 6,275, from 4,057 for the year ended December 31, 2024. The increase was primarily attributable to growth in direct relationships with import customers despite volatility in import container demand influenced by trade tariffs.
Current report
For the year ended December 31, 2025, the NLC for Others decreased by 245, or 54.1%, to 208, from 453 for the year ended December 31, 2024. The decrease was primarily attributable to lower volumes from customers shipping plastics and other materials.
Current report
Investing activities used net cash of $5,855,370 during the year ended December 31, 2025, and $1,211,981 during the year ended December 31, 2024. Cash used in investing activities increased by $4,643,389 as compared to prior year. This change was primarily due to $5,000,000 in notes receivable activities during the year ended December 31, 2025.
Current report
On January 22, 2025, the IPO Shares were listed and commenced trading on the NYSE American.
Current report
Accounts Receivable, net
Current report
Accounts receivable represent revenue earned for which the Company has not yet received payment. Accounts receivable are recorded at the invoiced amount and adjusted for amounts management expects to collect from balances outstanding at period-end. The Company adopt the current expected credit loss model (“CECL model”) to estimate the expected credit losses, which is determined by multiplying the probability of default. The Company estimates the allowance for credit loss based on an analysis of specific accounts and an assessment of the customer’s ability to pay, among other factors. The allowance for credit losses was $123,371 as of December 31, 2025 and December 31, 2024. The balance of accounts receivable, net as of December 31, 2025 and December 31, 2024 amounted to $1,402,421 and $1,203,001, respectively. As of the date of this report issued, we collected approximately $1.4 million or 91% of accounts receivable outstanding as of December 31, 2025.
Current report
In January 2025, the FASB issued ASU 2025-01,Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. This update clarified that the disaggregation requirements of ASU 2024-03 are effective for public business entities for annual periods beginning after December 15, 2026. The adoption of this clarification had no impact on the Company’s financial position or results of operations
Current report
In March 2025, the FASB issued ASU 2025-02—Liabilities (405): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 122. The amendments in this Update are effective immediately and on a fully retrospective basis to annual periods beginning after December 15, 2024. The Company is currently evaluating the effect of adoption of this standard to its consolidated financial statements and disclosures.
Current report
In May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquirer in the Acquisition of a Variable Interest Entity. The amendments provide guidance on identifying the accounting acquirer in transactions involving a variable interest entity. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting period within those annual periods. Early adoption is permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of this amendment and does not expect that the adoption of this guidance will have a material impact on its financial position, results of operations, or cash flows.
Current report
In May 2025, the FASB issued ASU 2025-04, Compensation - Stock Compensation (Topic 18) and Revenue from contracts with Customers (Topic 606): Clarifications to Share-Based Consideration Payable to a Customer. The amendments provide guidance on identifying the accounting acquirer in transactions involving a variable interest entity. The amendments clarify the accounting for share-based consideration payable to a customer under Topic 718 and Topic 606. The amendments are effective for annual reporting periods, including interim reporting period within those annual periods, beginning after December 15, 2026. Early adoption is permitted. The Company is currently evaluating the impact of this amendment and does not expect that the adoption of this guidance will have a material impact on its financial position, results of operations, or cash flows.
Current report
In July 2025, the FASB issued ASU 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The amendments provide a practical expedient and, if applicable, an accounting policy election to simplify the measurement of credit losses for certain receivables and contract assets. The amendments are effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted in any interim or annual period in which financial statements have not been issued or made available for issuance. The Company is currently evaluating the impact of this amendment and does not expect that the adoption of this guidance will have a material impact on its financial position, results of operations, or cash flows.
Removed paragraphs (15)
Previous report
Revenue for the years ended December 31, 2024 and 2023 was $16,039,513 and $18,035,532, respectively, representing a decrease of 11%. The revenue decline in 2024 was mainly due to an industry-wide decrease in scrap paper export volume. Despite receiving an increased number of orders, both the average load count per order and the price per load decreased. To maintain activity across our fleet, we accepted a higher volume of smaller orders at lower prices.
Previous report
In 2024, U.S. waste paper exports reached a 19-year low since 2004, driven by multi-year declines in shipments into key overseas markets. India was the largest buyer of U.S. waste paper exports in 2023, while China, which used to be the largest importer, has significantly reduced purchases of U.S. recovered paper, following its ban on imports of unsorted waste paper. The global recovered paper market exhibited a similar trend, with a strong upturn in 2021, a collapse in the second half of 2022 and continued weakness throughout 2023. The decline in U.S. waste paper exports was partly due to increased domestic mill production of recycled-content paper and board. The fluctuations in the market demand for U.S. waste paper exports have a direct impact on our revenue. As demand decreases, our shipping volumes, rates and associated revenues decline. Conversely, improvements in industry demand can lead to increased shipping activity and revenue growth. Given that domestic paper and board production has its capacity limitations and recycling practices and sorting equipment at recycling facilities are anticipated to continue improving, we believe that the U.S. waste paper exports will remain a mainstream commodity for our trucking services despite short-term volatility. For more information, please see the “Industry—Waste Paper Export” section. However, it is difficult to precisely predict when this downward trend will reverse. If the current trend persists and we are unable to find alternative sources of demand to replace the lost demand for waste paper, our revenues will be materially adversely affected.
Previous report
Despite the downturn in waste paper exports, waste metal, forestry, and import other specifically plastic experienced growth in 2024. We expanded our presence in this space, which resulted in a 46.1% increase in loads, totaling an additional 143 loads compared to 2023. Our revenues growth in this vertical was due to our established relationships with a number of plastic waste customers. As paper export volume continued to show weakness, we strategically targeted the existing client companies with the high volume of waste metal export and import containers. Opportunity was discovered from discussions with their leadership by uncovering their prior year volume and the ability for us to provide a higher level of service. The export volume for metal waste is subject to the market rate and countries buying the commodity. Import volume varies by the amount of demand from domestic consumers and economic conditions. Prices on providing logistics services for these verticals are based on the supply of trucks servicing the vertical, their availability to transport large quantities of containers in a short time, and established relationships with the customer. Our slight decrease in revenue from Waste Paper, Waste Metal, and Import was mainly due to economic conditions. Our revenues from Forestry were lower in 2024 compared to the past couple years, which experienced an unusual surge.
Previous report
Gross profit As a result of the foregoing, our gross profit decreased by $1,684,668 to $2,337,802 for the year ended December 31, 2024 from $2,649,153 for the year ended December 31, 2023. As a percentage of revenue, gross profit remained consistent from 15% for the year ended December 31, 2024 to 15% for the year ended December 31, 2023. Again, the decrease in cost of revenue is in line with the decrease in revenue allowing for no change in gross profit year over year.
Previous report
General and administrative Our general and administrative expenses consist primarily of automobile, office, insurance, payroll and rent expenses. Our general and administrative expenses increased by $1,108,716 or 59% to $2,983,553 for the year ended December 31, 2024 from $1,874,837 for the year ended December 31, 2023. This change primarily results from an increase in accrued compensation of $393,775, accounting fees of $267,896, bad debt expense $123,371, officer payroll $109,615, relocation expense of $75,264, litigation settlement of $150,000, amortization of $67,218, depreciation expense of $42,084, legal fees $30,209, and lastly automobile expenses with a total of $30,994. However, the increase in expenses were offset by a decrease in consulting fee of $170,404, utilities of $18,418, travel expenses of $15,953, business licenses and permits of $14,273, professional fees $12,000,
Previous report
Net income
Previous report
For the year ended December 31, 2024, the NLC for Waste Paper declined by 1,453, or 8.0%, to 16,641, from 18,094 for the year ended December 31, 2023. The decrease was primarily attributed to an industry-wide decrease in scrap paper export volume.
Previous report
For the year ended December 31, 2024, the NLC for Waste Metal decreased by 93 or 6.9%, to 1,243, from 1,336 for the year ended December 31, 2023. The decrease was due to the loss of a couple clients in the waste metal space.
Previous report
For the year ended December 31, 2024, the NLC for Forestry decreased by 69, or 20.3%, to 271, from 340 for the year ended December 31, 2023. The decrease primarily reflected limitations on the volume of trees deforested for logging in the New York state we service.
Previous report
For the year ended December 31, 2024, the NLC for Import increased by 52, or 1.3%, to 4,057, from 4,109 for the year ended December 31, 2023. The decrease was due to the loss of a couple clients of import customers.
Previous report
For the year ended December 31, 2024, the NLC for Others increased by 143, or 46.1%, to 453, from 310 for the year ended December 31, 2023. The increase was due to new client acquisition for customers requiring exports in plastics and other materials.
Previous report
Investing activities used net cash of ($1,211,981) during the year ended December 31, 2024, and ($1,091,226) during the year ended December 31, 2023. Cash used in investing activities increased by $120,755 from the corresponding period of the prior year. The December 31, 2024, amount is due to $1,203,981 from the purchases of property and equipment, $8,000 from the purchases of intangible asset. The December 31, 2022 amount is due to $65,377 from the purchases of property and equipment.
Previous report
In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, “Leases(Topic 842).” The objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This ASU is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022 and is to be applied utilizing a modified retrospective approach. The Company has adopted this guidance as of January 1, 2022, and it did have a material impact on its consolidated financial statements as now the Company capitalizes all right-of-use assets and lease liabilities.
Previous report
Recently Issued Accounting Pronouncements Not Yet Adopted
Previous report
In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (“Topic 326”)”. The ASU introduces a new accounting model, the Current Expected Credit Losses model (“CECL”), which requires earlier recognition of credit losses and additional disclosures related to credit risk. The CECL model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses at the time the financial asset is originated or acquired. ASU 2016-13 is effective for annual period beginning after December 15, 2022, including interim reporting periods within those annual reporting periods. The Company has adopted this guidance as of January 1, 2023, and it did not have a material impact on its consolidated financial statements.
Reworded paragraphs (13)
Previous wording
We are a truckload services and solutions provider focused on the recycling export supply chain. We have become a key player in the New Jersey and Pennsylvania regional trucking market for waste paper, evidenced by our significant market share where we accounted for approximately 34% of the waste paper export drayage volumes through New Jersey’s ports and approximately 30% through Philadelphia’s ports, according to data sourced from IHS Markit. In addition to waste paper, our portfolio also includes the shipment of scrap metal and wooden logs from large waste companies, recycling centers and commodity traders to the ports of Newark, NJ, and Philadelphia, PA. We continue to expand our footprints domestically and internationally and have ventured into the recycling export transport market of Tampa, Jacksonville and Miami, FL, and Baltimore, MD in 2023, and Ensenada, Mexico in 2024. We intend to explore the international market in Canada, the United Kingdom and Australia in the near future.
Current wording
We are a truckload services and solutions provider focused on the recycling export supply chain. We have become a key player in the New Jersey and Pennsylvania regional trucking market for waste paper. In addition to waste paper, our portfolio also includes the shipment of scrap metal and wooden logs from large waste companies, recycling centers and commodity traders to the ports of Newark, NJ, and Philadelphia, PA. We also provide import transportation services at the ports of Newark and Philadelphia, under which we transport cargo-filled containers from the ports to our customers’ designated delivery locations. We continue to expand our footprints domestically and internationally and have ventured into the recycling export transport markets in Tampa, Jacksonville, and Miami, FL, and Baltimore, MD, in 2023, and Ensenada, Mexico in 2024, and Houston, Texas in 2025. We intend to explore the international market in Latin America, including Chancay, Peru, in the near future.
Previous wording
Our client base includes largest Fortune 500 waste companies and over 280 recycling centers and commodity traders that operate in nearly 2,300 locations. Our growing client base relies on us as their partner to provide a “white glove service” to ensure their time-sensitive, ultra-high throughput commodities are safely loaded and delivered right to container ships. In addition, capitalizing on our know-how in developing logistics solutions over the years, we are able to propose integrated transportation solutions that cover loading, transport, port drayage and unloading.
Current wording
Our client base includes some of the largest Fortune 500 waste companies and over 207 recycling centers and commodity traders that operate in nearly 1,077 locations. Our growing client base relies on us as their partner to provide a “white glove service” to ensure their time-sensitive, ultra-high throughput commodities are safely loaded and delivered right to container ships. In addition, capitalizing on our know-how in developing logistics solutions over the years, we are able to propose integrated transportation solutions that cover loading, transport, port drayage and unloading.
Previous wording
Our revenues from the “Others” vertical, where we hire “outside trucks” in markets our fleet does not service such as Illinois and Texas, also increased. Utilizing “outside trucks” allows us to scale our operations and serve our national clients in emerging markets with low risk.
Current wording
Our revenue from the “Others” vertical, where we hire “outside trucks” in markets our fleet does not service. Utilizing “outside trucks” allows us to scale our operations and serve our national clients in emerging markets with low risk.
Previous wording
Our revenues consisted of the following during the year ended December 31, 2024, and 2023:
Current wording
Our revenue consisted of the following during the years ended December 31, 2025, and 2024:
Previous wording
Costs of revenues Our cost of revenue includes all directly related costs to deliver our services, which includes independent contractor drivers, insurance, truck maintenance costs, equipment rental and other directly related costs. Our costs of revenue for the years ended December 31, 2024 and 2023 was $13,701,711 and $15,386,379, respectively, representing a decrease of 11%. Such decrease was in line with our decreased revenue
Current wording
Our cost of revenue includes all directly related costs to deliver our services, which includes independent contractor drivers, insurance, truck maintenance costs, equipment rental, parking rent expense, dispatch service fees, depreciation and amortization and other directly related costs. Our costs of revenue for the years ended December 31, 2025 and 2024 was $16,051,009 and $14,270,913, respectively, representing an increase of 12%. Of these amounts, approximately $1,429,524 and $1,881,265 were related to transactions with related parties. Such increase was in line with our increased revenue. The increase was primarily attributable to higher depreciation expenses, additional dispatch service costs incurred during the year, and higher parking rent expenses related to our leased parking facilities. Changes in trade policies and tariffs may also have an indirect impact on market conditions, including shipment volumes and input cost dynamics; however, no material impact was identified for the period presented.
Previous wording
Income tax expenseWe recorded a provision for (benefit from) income taxes of $109,420 for the year ended December 31, 2024, as compared to $377,931 for the year ended December 31, 2023, a decrease of $487,351 or 129%. The decrease in the income tax expense mainly resulted from lower taxable income.
Current wording
We recorded a provision for (benefit from) income taxes of $15,159 for the year ended December 31, 2025, as compared to $109,420 for the year ended December 31, 2024, a decrease of $94,261 or 86%. The change was primarily attributable to the change in pre-tax results during the year.
Previous wording
Net income for the years ended December 31, 2024 and 2023 was $174,871 and $542,351, respectively. The change of net income was due to the decrease in revenue and lower profit margin during 2024.
Current wording
Net (loss) income for the years ended December 31, 2025 and 2024 was $(7,344,586) and $174,871, respectively. The change of net income was due to the decrease in gross profit as well as increased stock-based compensation.
Previous wording
The NLC information, including the related estimated total tonnage, has been prepared by, and is the responsibility of, the Company’s management. TAAD LLP has not audited, reviewed, examined, compiled or applied agreed-upon procedures with respect to such NLC information and, accordingly, TAAD LLP does not express an opinion or any other form of assurance with respect thereto. The TAAD LLP report relates to the Company’s previously issued financial statements, and it does not extend to the NLC information and should not be read to do so.
Current wording
The NLC information, including the related estimated total tonnage, has been prepared by, and is the responsibility of, the Company’s management. Our principal accountant has not audited, reviewed, examined, compiled or applied agreed-upon procedures with respect to such NLC information and, accordingly, our principal accountant does not express an opinion or any other form of assurance with respect thereto. The report of our principal accountant relates to the Company’s previously issued financial statements, and it does not extend to the NLC information and should not be read to do so.
Previous wording
For the year ended December 31, 2024, the total NLC decreased by 1,524, or 6.3%, to 22,665, from 24,189 for the year ended December 31, 2023. The drop in total NLC was primarily due to significant decreases in the NLCs for Waste Paper, Forestry, and Waste Metal partially offset by increases in the NLCs for Others specifically Plastic.
Current wording
For the year ended December 31, 2025, total NLC decreased by 222, or 1.0%, to 22,443, from 22,665 for the year ended December 31, 2024. The decrease was primarily due to lower Waste Paper loads, partially offset by increases in Waste Metal and Import loads.
Previous wording
As of December 31, 2024 and December 31, 2023, we had cash of $557,619 and $1,455,976, respectively. To date, we have financed our operations primarily through revenue generated from operations.
Current wording
As of December 31, 2025 and December 31, 2024, we had cash of $1,202,395 and $557,619, respectively. To date, we have financed our operations primarily through its operations, the proceeds from the issuance of common stock, as well as strategic financing.
Previous wording
We believe that our current levels of cash will be sufficient to meet our anticipated cash needs for our operations for at least the next 12 months, including our anticipated costs associated with becoming a public reporting company. We may, however, in the future require additional cash resources due to changing business conditions, implementation of our strategy to expand our business, or other investments or acquisitions we may decide to pursue. If our own financial resources are insufficient to satisfy our capital requirements, we may seek to sell additional equity or debt securities or obtain additional loans. The sale of additional equity securities could result in dilution to our shareholders. The incurrence of indebtedness would result in increased debt service obligations and could require us to agree to operating and financial covenants that would restrict our operations. Financing may not be available in amounts or on terms acceptable to us, if at all. Any failure by us to raise additional funds on terms favorable to us, or at all, could limit our ability to expand our business operations and could harm our overall business prospects.
Current wording
During the year ended December 31, 2025, we had a net loss of $7,344,586 and net cash used in operations of $1,781,512, which resulted primarily from an increase in professional fees resulting from our IPO, non cash stock-based compensation expense of $5,363,550, as well higher cost of revenue, mainly driven by increased depreciation and amortization, facility-related expenses such as parking rent and increased current income tax expense from prior years liabilities. Subsequent to December 31, 2025, we have expanded our business operations to certain new territories and have raised service prices in response to market changes. Additionally, approximately of $2 million of our outstanding loan receivable are expected to be collected in 2026 and will be used in our operations. Currently, we are working to improve our liquidity and capital sources. In order to fully implement our business plan and sustain continued growth. We may, however, in the future require additional cash resources due to changing business conditions, implementation of our strategy to expand our business, or other investments or acquisitions we may decide to pursue. If our own financial resources are insufficient to satisfy our capital requirements, we may seek to sell additional equity or debt securities or obtain additional loans. The sale of additional equity securities could result in dilution to our shareholders. The incurrence of indebtedness would result in increased debt service obligations and could require us to agree to operating and financial covenants that would restrict our operations. Financing may not be available in amounts or on terms acceptable to us, if at all. At the present time, however, we do not have commitments of funds from any lenders or potential investors. Any failure by us to raise additional funds on terms favorable to us, or at all, could limit our ability to expand our business operations and could harm our overall business prospects.
Previous wording
Operating activities provided net cash of ($593,734) during the year ended December 31, 2024, and $2,008,219 during the year ended December 31, 2023. Cash provided by operating activities decreased by approximately $2,601,953 primarily due to a decrease in net income of $339,308, decrease in amortization of ROU of $189,551, the recognition of a non-cash rent expense of $433,574, depreciation of $54,900, a decrease deferred taxes of $123,163, and an overall decrease of $1,967,544 from the change in operating assets and liabilities, for the year ended December 31, 2024 in comparison of the year ended December 31, 2023.
Current wording
Operating activities used net cash of $1,781,512 during the year ended December 31, 2025, and $593,734 during the year ended December 31, 2024. Cash used in operating activities increased by $1,187,778 primarily due to a decrease in net income (loss) of $7,519,457, the recognition of stock-based compensation of $5,363,550, and an overall decrease of $1,109,896 from the change in operating assets and liabilities, for the year ended December 31, 2025 in comparison of the year ended December 31, 2024.
Previous wording
Financing activities used net cash of $907,358 during the year ended December 31, 2024, and ($205,870) during the year ended December 31, 2023. Cash used in financing activities increased by $1,455,976. The increase in December 31, 2024, amount is due to $1,100,00 in proceeds from loans payable and $192,642 of deferred financing costs.
Current wording
Financing activities provided net cash of $8,281,657 during the year ended December 31, 2025 and $907,358 during the year ended December 31, 2024. Cash used in financing activities increased by $7,374,299. The increase in December 31, 2025, amount is due to $8,459,232 in proceeds from the issuance of common stock, offset by $1,124,039 in repayments of loans payable.