EX-99.1 2 ea029057901ex99-1.htm PRESS RELEASE DATED MAY 13, 2026

Exhibit 99.1

 

 

ARMLOGI Holding Corp. Reports Third Quarter and First Nine Months OF Fiscal Year 2026 Financial Results

 

WALNUT, CA, May 13, 2026 (GlobeNewswire) -- 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 its financial results for the third quarter and first nine months of fiscal year 2026, ended March 31, 2026.

 

For the first nine months of fiscal year 2026, total revenue increased 2.3% year-over-year to $142.7 million, driven by 19.9% growth in warehousing services revenue, which reached $55.5 million. Transportation services revenue declined 6.4% to $87.1 million, reflecting a continued shift in customer mix toward cross-border e-commerce platforms that bundle delivery services. The Company recorded a net loss of $15.4 million, or $(0.35) per basic and diluted share, for the nine-month period, compared with a net loss of $10.1 million, or $(0.24) per share, in the prior-year period. As of March 31, 2026, the Company operated twelve warehouses across the United States with an aggregate gross floor area of approximately 3.9 million square feet.

 

Third Quarter Fiscal Year 2026 Financial Highlights (Three Months Ended March 31, 2026)

 

●Total revenue of $41.7 million, compared to $45.8 million in the prior-year quarter, representing a decrease of 9.1%.
●Warehousing services revenue of $18.6 million, representing an increase of 7.3% year-over-year.
●Transportation services revenue of $23.1 million, representing a decrease of 19.1% year-over-year, reflecting customer mix shift toward cross-border e-commerce platforms with bundled delivery services.
●Gross loss of $1.9 million (gross margin of -4.5%), compared to gross profit of $0.3 million (gross margin of 0.6%) in the prior-year quarter, primarily reflecting temporary labor costs associated with significant inventory reorganization across the Company’s California warehouses during the quarter.
●General and administrative expenses of $3.3 million, representing a decrease of 25.7% year-over-year.
●Net loss of $5.1 million, or $(0.11) per basic and diluted share, compared to a net loss of $3.8 million, or $(0.09) per share, in the prior-year quarter.
●Cash and restricted cash of $7.1 million as of March 31, 2026, compared to $13.6 million as of June 30, 2025.

 

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First Nine Months Fiscal Year 2026 Financial Highlights (Nine Months Ended March 31, 2026)

 

●Total revenue of $142.7 million, representing an increase of 2.3% year-over-year.
●Warehousing services revenue of $55.5 million, representing an increase of 19.9% year-over-year, driven by expanded operations at the Company’s Georgia, Illinois, and Ontario, California facilities.
●Transportation services revenue of $87.1 million, representing a decrease of 6.4% year-over-year.
●Gross loss of $5.1 million (gross margin of -3.6%), compared to gross loss of $2.8 million (gross margin of -2.0%) in the prior-year period.
●General and administrative expenses of $10.9 million, essentially flat compared to $10.8 million in the prior-year period.
●Net loss of $15.4 million, or $(0.35) per basic and diluted share, compared to a net loss of $10.1 million, or $(0.24) per share, in the prior-year period.
●Customer geographic diversification: PRC-based customers accounted for approximately 76% of total revenue for the nine months ended March 31, 2026, compared to approximately 87% in the prior-year period, reflecting continued broadening of the Company’s customer base.

 

Operational Discussion

 

During the first nine months of fiscal year 2026, Armlogi continued to advance its operational footprint and service mix. Warehousing services revenue grew 19.9% year-over-year, driven primarily by the ramp-up of warehouse operations at the Company’s facilities in Georgia, Illinois, and Ontario, California — locations that were added or substantially expanded during the prior fiscal year and continued to gain utilization during the current period. The Ontario, California facility became the second-highest revenue-generating warehouse in California during the period.

 

The decline in transportation services revenue reflects a structural shift in the cross-border e-commerce market. A growing proportion of the Company’s traditional customer base has been transferring outbound order fulfillment to selling platform-operated fulfillment programs, while emerging customer segments served through certain cross-border e-commerce platforms typically utilize delivery services bundled by those platforms. As a result, the Company’s transportation service volumes from these segments have declined, even as warehousing service utilization from these same segments has increased — and at higher per-order warehousing service rates than the Company’s traditional customer profile.

 

Gross margin pressure during the third quarter primarily reflected a significant inventory reorganization undertaken across the Company’s California warehouses, which generated a temporary increase of approximately $1.3 million in temporary labor expenses without a corresponding increase in revenue during the period.

 

These dynamics are taking place alongside the Company’s previously disclosed strategic initiatives, including the continued buildout of its internal middle-mile transportation network in Southern California and its ongoing investments in internal financial reporting and management infrastructure. The Company believes these initiatives are intended to support stronger operational discipline, enhanced management visibility, and improved unit economics over time.

 

Liquidity

 

As of March 31, 2026, the Company had cash and cash equivalents and restricted cash of $7.1 million, compared to $13.6 million as of June 30, 2025. Net cash used in operating activities for the nine months ended March 31, 2026 was $5.5 million, broadly consistent with the prior-year period.

 

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Management Commentary

 

Aidy Chou, Chairman and Chief Executive Officer of Armlogi, commented, “The third quarter and first nine months of fiscal 2026 reflect a period of significant transition for Armlogi. Our warehousing services business continued to grow at a meaningful rate, driven by the ramp-up of newer facilities and a shift in customer mix toward higher-value service profiles. At the same time, we have faced headwinds in our transportation services business as the broader cross-border e-commerce market has continued to evolve. We are taking these challenges seriously and are responding with disciplined operational execution, ongoing investment in the network capacity and infrastructure required to support our long-term competitive position, and a clear focus on the financial and capital structure work needed to support the business through this transition.”

 

About Armlogi Holding Corp.

 

Armlogi Holding Corp., based in Walnut, CA, is a U.S.-based warehousing and logistics service provider offering a comprehensive suite of supply-chain solutions, including warehouse management and order fulfillment. The Company caters to cross-border e-commerce merchants seeking to establish U.S. market warehouses. With 12 warehouses totaling approximately 3.9 million square feet, the Company offers comprehensive one-stop warehousing and logistics services. The Company’s warehouses are equipped with facilities and technology to handle and store large, bulky items. Armlogi is a member of the Russell Microcap® Index. For more information, please visit www.armlogi.com.

 

Forward-Looking Statements

 

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, our representatives may from time to time 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 revenue and earnings growth; our business prospects and opportunities; and the expected benefits of our operational initiatives, including the expansion of our internal transportation network. 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,” “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 successfully implement and scale our internal transportation network; the extent to which anticipated cost efficiencies and operational improvements are realized; our ability to keep pace with new technology and changing market needs; the competitive environment of our business; changes in demand for our services; and our dependence on third-party service providers. These and other factors, including those described in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. Forward-looking statements speak only as of the date of this press release, and except as required by law, we undertake no obligation to publicly update or revise any forward-looking statement. 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 described above and in our SEC filings.

 

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**

 

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ARMLOGI HOLDING CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS 
AS OF MARCH 31, 2026 AND JUNE 30, 2025
(US$, except share data, or otherwise noted) 

 

   March 31,
2026		   June 30,
2025		 
   US$   US$ 
   Unaudited   Audited 
Assets        
Current assets        
Cash and cash equivalents   2,668,304    9,190,277 
Accounts receivable and other receivable, net of credit loss allowance of $594,869 and $594,869   18,392,275    22,207,500 
Other current assets   783,826    998,925 
Prepaid expenses   1,307,390    1,375,646 
Loan receivables, net of credit loss allowance of $nil and $nil   1,681,245    3,893,563 
Total current assets   24,833,040    37,665,911 
Non-current assets          
Restricted cash   4,398,412    4,387,550 
Property and equipment, net   10,074,357    11,259,820 
Intangible assets, net   22,259    54,627 
Right-of-use assets – operating leases   102,118,310    115,361,185 
Right-of-use assets – finance leases   1,408,755    745,547 
Other non-current assets   883,125    739,555 
Total assets   143,738,258    170,214,195 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Liabilities:          
Current liabilities          
Accounts payable and accrued liabilities   8,381,753    9,604,783 
Contract liabilities   602,808    939,097 
Accrued payroll liabilities   663,443    283,150 
Convertible notes   -    5,292,749 
Operating lease liabilities – current   35,351,135    29,280,907 
Finance lease liabilities – current   759,787    386,327 
Total current liabilities   45,758,926    45,787,013 
Non-current liabilities          
Operating lease liabilities – non-current   83,822,574    98,939,552 
Finance lease liabilities – non-current   702,532    397,692 
Total liabilities   130,284,032    145,124,257 
           
Commitments and contingencies          
Stockholders’ equity          
Common stock, US$0.00001 par value, 100,000,000 shares authorized, 45,443,079 and 42,250,934 issued and outstanding as of March 31, 2026 and June 30, 2025, respectively   454    422 
Additional paid-in capital   20,468,826    16,668,858 
Retained earnings (Accumulated deficits)   (7,015,054)   8,420,658 
Total stockholders’ equity   13,454,226    25,089,938 
Total liabilities and stockholders’ equity   143,738,258    170,214,195 

 

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ARMLOGI HOLDING CORP.
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS AND COMPREHENSIVE LOSS
FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2026 AND 2025
(US$, except share data, or otherwise noted)

 

   Three Months
Ended
March 31,
2026		   Three Months
Ended
March 31,
2025		   Nine months
Ended
March 31,
2026		   Nine months
Ended
March 31,
2025		 
   US$   US$   US$   US$ 
   Unaudited   Unaudited   Unaudited   Unaudited 
Revenue   41,678,009    45,844,322    142,694,036    139,469,900 
Costs of services   43,543,277    45,566,202    147,813,653    142,315,578 
Gross profit   (1,865,268)   278,120    (5,119,617)   (2,845,678)
                     
Operating costs and expenses:                    
General and administrative   3,325,439    4,472,813    10,871,295    10,800,794 
Total operating costs and expenses   3,325,439    4,472,813    10,871,295    10,800,794 
                     
Loss from operations   (5,190,707)   (4,194,693)   (15,990,912)   (13,646,472)
                     
Other (income) expenses:                    
Other income, net   (159,603)   (718,025)   (1,200,475)   (2,488,346)
Loss on Disposal of Assets   —    —    —    43,625 
Finance costs   36,373    278,385    628,839    367,382 
Total other (income)   (123,230)   (439,640)   (571,636)   (2,077,339)
                     
Loss before provision for income taxes   (5,067,477)   (3,755,053)   (15,419,276)   (11,569,133)
                     
Current income tax expense   —    —    16,436    — 
Deferred income tax (recovery) expense   —    —    —    (1,506,969)
Total income tax (recovery) expenses   —    —    16,436    (1,506,969)
Net loss   (5,067,477)   (3,755,053)   (15,435,712)   (10,062,164)
Total comprehensive loss   (5,067,477)   (3,755,053)   (15,435,712)   (10,062,164)
                     
Basic & diluted net loss per share   (0.11)   (0.09)   (0.35)   (0.24)
Weighted average number of shares of common stock-basic and diluted   45,443,079    41,714,608    44,442,202    41,651,007 

 

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ARMLOGI HOLDING CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
FOR THE NINE MONTHS ENDED MARCH 31, 2026 AND 2025 (UNAUDITED)
(US$, except share data, or otherwise noted)

 

   For The
Nine months Ended
March 31,
2026		   For The
Nine months Ended
March 31,
2025		 
   US$   US$ 
   Unaudited   Unaudited 
Cash Flows from Operating Activities:        
Net loss   (15,435,712)   (10,062,164)
Adjustments for items not affecting cash:          
Net loss from disposal of fixed assets   —    43,625 
Depreciation of property and equipment and right-of-use assets-finance leases   2,568,088    1,983,166 
Amortization   32,368    26,706 
Non-cash operating leases expense   4,196,125    5,833,789 
Current estimated credit loss   —    228,363 
Accretion of convertible notes   527,251    344,925 
Deferred income taxes   —    (1,536,455)
Interest income   (55,992)   (96,340)
Gain from settlement of commitment payable   —    (100,000)
           
Changes in operating assets and liabilities:          
Accounts receivable and other receivables   3,815,225    (1,606,810)
Other current assets   215,099    (597,401)
Other non-current assets   (143,570)   252,001 
Prepaid expenses   68,256    (75,557)
Accounts payable & accrued liabilities   (1,343,843)   (631,472)
Contract liabilities   (336,289)   191,665 
Income tax payable   —    (57,589)
Accrued payroll liabilities   380,293    282,280 
Net changes in derecognized ROU and operating lease liabilities   —    (63,874)
Net cash used in operating activities   (5,512,701)   (5,641,142)
           
Cash Flows from Investing Activities:          
Purchase of property and equipment   (787,828)   (2,593,457)
Loan disbursements   (2,370,000)   (1,000,000)
Proceeds from loan repayments   4,638,310    2,036,705 
Proceeds from sale of property and equipment   —    25,000 
Net cash provided by (used in) investing activities   1,480,482    (1,531,752)
           
Cash Flows from Financing Activities:          
Repayment to related parties   —    (350,209)
Repayment of commitment payable   —    (150,000)
Repayments of finance lease liabilities   (458,892)   (108,935)
Proceeds from convertible notes   —    8,092,473 
Repayments of convertible notes   (2,020,000)   (850,000)
Net cash (used in) provided by financing activities   (2,478,892)   6,633,329 
Net decrease in cash and cash equivalents and restricted cash   (6,511,111)   (539,565)
Cash and cash equivalents and restricted cash, beginning of the period   13,577,827    9,950,384 
Cash and cash equivalents and restricted cash, end of the period   7,066,716    9,410,819 
The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same amounts shown in the Condensed Consolidated Statements of Cash Flows:          
Cash and cash equivalents   2,668,304    5,631,247 
Restricted cash – non-current   4,398,412    3,779,572 
Total cash and cash equivalents and restricted cash shown in the Condensed Consolidated Balance Sheets   7,066,716    9,410,819 
           
Supplemental Disclosure of Cash Flows Information:          
Cash paid for income tax   (24,900)   (87,074)
Cash paid for interest   —    (22,457)
Non-cash Transactions:          
Right-of-use assets acquired in exchange for finance lease liabilities   1,137,192    — 
Right-of-use assets acquired in exchange for operating lease liabilities   4,605,476    28,685,914 
Increase (Decrease) in right-of-use assets due to remeasurement of lease terms   63,896    (884,394)
Shares issued for Investor Notices pursuant to SEPA by reducing the convertible notes   3,800,000    750,000 
Shares issued to settle commitment fee   —    250,000 

 

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