Transportation and Logistics Systems, Inc.

What they do

The company ceased all remaining operations as of mid-February 2024. Before that, it and its subsidiaries provided asset-based logistics and transportation services, including ecommerce fulfillment, last mile deliveries, two-person home delivery, mid-mile, and long-haul services. It operated warehouse locations in New York, New Jersey, Connecticut, and Massachusetts, and, as an asset-based carrier, owned most of its transportation equipment and employed most of its drivers. Subsidiary Cougar Express filed a Chapter 7 bankruptcy petition on February 27, 2024; other subsidiaries ceased operations without filing bankruptcy.

Revenue drivers

• Discontinued logistics and transportation operations — The company generated revenue from asset-based logistics and transportation services, specializing in ecommerce fulfillment, last mile, two-person home delivery, mid-mile, and long-haul. All of these operations ceased in mid-February 2024, so they produce no current revenue.
• Ecommerce fulfillment and warehouse services — Prior to shutdown, the company operated warehouse locations in New York, New Jersey, Connecticut, and Massachusetts supporting ecommerce fulfillment. These operations are discontinued.
• Last mile and two-person home delivery — The company previously provided last mile and two-person home delivery services using owned equipment and employed drivers. This segment is no longer active.

Recent performance

Annual revenue fell from $13.6 million in 2018 and $31.4 million in 2019 to $5.5 million in 2021 and $7.7 million in 2022, reflecting the wind-down of operations. Recent quarterly revenue was $5.6 million for 2023-03-31, $5.1 million for 2023-06-30, and $4.9 million for 2023-09-30, before operations ceased in February 2024. Annual net income was negative $8.1 million in 2022, negative $14.3 million in 2023, negative $3.8 million in 2024, and positive $33,833 in 2025. Operating cash flow remained negative, at negative $386,699 in 2024 and negative $486,422 in 2025. As of June 30, 2026, total assets were $30,582, total liabilities were $9.2 million, shareholder equity was negative $21.3 million, and cash was $29,082.

Strategy

The company states it continues to remain insolvent and has no operating business. It has restructured obligations through Series J Preferred exchanges and settlements with creditors, directors, and its CEO, cancelling warrants and converting preferred stock and accrued liabilities. Management says it is negotiating possible further restructuring of remaining debts and assessing the possibility of replacing discontinued businesses or entering new lines of business by acquisition or otherwise, with no assurance it can do so or do so profitably. It requires additional financing to fund preparation and filing of periodic reports for calendar year 2026.

Risks

• No operating business — The company ceased all revenue-generating operations in February 2024 and cannot determine if it will be able to execute a go-forward restructuring.
• Insolvency — The company remains insolvent, with shareholder equity of negative $21.3 million as of June 30, 2026, and its former operating subsidiary Cougar Express filed Chapter 7 bankruptcy.
• Inability to fund reporting obligations — The company obtained financing to file through December 31, 2025, but will require additional financing to fund preparation and filing of one or more periodic reports due for calendar year 2026.
• Possible full loss of investment — Risk factors state investors should not invest unless able to bear complete loss of their investment, citing expected continual losses for the foreseeable future and reliance on key personnel.

Outlook

Management states the company continues to remain insolvent and has no operating business. It is negotiating possible further restructuring of remaining debts and assessing whether it can replace its discontinued businesses or enter new lines of business, by acquisition or otherwise, but provides no assurance it can do so or do so profitably. The company requires additional financing to fund periodic report preparation and filing for calendar year 2026.