# EDGAR Filing Document

**Accession Number:** 0001687542
**File Stem:** 0001641172-25-016701
**Filing Date:** 2025-6
**Character Count:** 83932
**Document Hash:** c31dc82e00dcb48f3daedbcc267a6c9c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001641172-25-016701.hdr.sgml**: 20251217

**ACCESSION NUMBER**: 0001641172-25-016701

**CONFORMED SUBMISSION TYPE**: CORRESP

**PUBLIC DOCUMENT COUNT**: 1

**FILED AS OF DATE**: 20250626

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Freight Technologies, Inc.
- **CENTRAL INDEX KEY:** 0001687542
- **STANDARD INDUSTRIAL CLASSIFICATION:** ARRANGEMENT OF TRANSPORTATION OF FREIGHT & CARGO [4731]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 000000000
- **STATE OF INCORPORATION:** D8
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** CORRESP

**BUSINESS ADDRESS:**
- **STREET 1:** 2001 TIMBERLOCH PLACE
- **STREET 2:** SUITE 500
- **CITY:** THE WOODLANDS
- **STATE:** TX
- **ZIP:** 77380
- **BUSINESS PHONE:** (773) 905-5076

**MAIL ADDRESS:**
- **STREET 1:** 2001 TIMBERLOCH PLACE
- **STREET 2:** SUITE 500
- **CITY:** THE WOODLANDS
- **STATE:** TX
- **ZIP:** 77380

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Hudson Capital Inc.
- **DATE OF NAME CHANGE:** 20200507

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** China Internet Nationwide Financial Services, Inc.
- **DATE OF NAME CHANGE:** 20161014

**Freight Technologies, Inc.**

2001 Timberloch Place, Suite 500

The Woodlands, TX 77380

June 26, 2025

Division of Corporation Finance

Office of Energy & Transportation

US Securities & Exchange Commission

100 F Street, NE

Washington, D.C. 20549

Attn: Lily Dang and Karl Hiller

**Re: Freight Technologies, Inc.**

**Form 10-K for the Fiscal Year ended December 31, 2024**

**Filed April 14, 2025**

**File No. 001-38172**

Dear Lily Dang & Karl Hiller:

We hereby submit the responses of Freight Technologies, Inc. (the "Company") to the comments of the staff (the "Staff") of the U.S. Securities and Exchange Commission (the "Commission") set forth in the Staff's letter, dated June 5, 2025, providing the Staff's comments with respect to the Company's annual report on Form 10-K for the fiscal year ended December 31, 2024 (the "Annual Report"). Concurrently with the filing of this response letter, we have submitted an amendment to the Annual Report that incorporates our changes as indicated below made in response to the Staff's comments.

For the convenience of the Staff, each of the Staff's comments is included and is followed by the corresponding response of the Company. Unless the context indicates otherwise, references in this letter to "we," "us" and "our" refer to the Company on a consolidated basis.

<u>Annual Report on Form 10-K for the Fiscal Year ended December 31, 2024</u>

<u>Management's Discussion and Analysis, page 44</u>

<u>Revenues, page 45</u>

**1. Please expand your disclosures to include a summary table of the non-financial operating measures for each period, as pertaining to revenues of the Freight Transportation Brokerage and Dedicated Capacity segments, including measures that are specific to your FTL, LTL, and ocean container shipments, and the shipping capacity sold, to comply with Item 303(a) of Regulation S-K.**

**For example, these should include volumetric and unitary measures such as the number of shipments, miles transported, trucks providing capacity, average prices per unit, and any other details that are correlated with your performance obligations and relevant to understanding the activity that is reflected in your financial statements.**

**Please also disclose the extent to which material changes in revenues are attributable to changes in volumes, and separately to changes in prices, product mix, and other factors to comply with Item 303(b) and (b)(2) of Regulation S-K.**

<u>Response:</u> In prior annual reports, the Company did not provide quantitative schedules of volumetric and unitary measures of shipments or related details specific to its revenues from its two lines of services. We did provide qualitative analysis of changes in volumes and rates, which impacted revenue.

For operating metrics with respect to annual revenue for the year ending December 31, 2024 vs. 2023, please find the schedule and additional analysis below.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **$'000 (USD)** | **2024** | **2023** | **YoY** | **YoY %** |
| Freight Transportation Brokerage | 8635 | 13474 | (4839) | -36% |
| Dedicated Capacity | 5094 | 3586 | 1507 | 42% |
| **Total Revenue** | **13729** | **17061** | **(3332)** | **-20%** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Volumes** | **2024** | **2023** | **YoY** | **YoY %** |
| Brokerage Shipments | 4780 | 6886 | (2106) | -31% |
| Dedicated Capacity Truck Days | 15139 | 9045 | 6094 | 67% |

---

The Freight Transportation Brokerage service line experienced a 31% decline in the number of shipments; 35% lower for US domestic, 24% lower in Mexico domestic, and a 36% lower for cross-border shipments. As indicated in our 10-K, the declines in this service line were primarily a factor of the Company seeking higher margin business and specific circumstances with a few customers.

The Dedicated Capacity service line experienced a 67% increase in the number of truck days made available to our Fr8Fleet customers. One truck day means a standard 53' dry-van trailer and truck being available to serve the customer for one full working day. The increase in truck days exceeded the increase in revenue, primarily due to the Company providing significantly more local, short-haul capacity in 2024 for its primary Fr8Fleet customer, Kimberly Clark de Mexico (KCM), which is provided at a lower daily rate than longer haul capacity.

<u>Costs of Revenues, page 45</u>

**2. Please expand your discussion and analysis pertaining to cost of revenues as necessary to clearly describe the composition and nature of items included in your costs of revenues; and include corresponding details adjacent to your revenue recognition accounting policy disclosures on pages F-14 and F-15 of the financial statements.**

**As you appear to disclose a measure of gross margin that excludes depreciation and amortization that is related to cost of revenue, this would be considered a non-GAAP measure. If the measure is incomplete and you wish to retain the non-GAAP measure, please revise the label and add disclosures to comply with item 10(e) of Regulation SK, including presenting and discussing the most directly comparable GAAP measure, with equal or greater prominence, and including a reconciliation.**

**Under this scenario we believe the most directly comparable GAAP measure would be gross margin, reflecting all costs of sales. However, if depreciation and amortization is not attributable to cost of sales, explain to us your view and the reasons for the parenthetical captions utilized in your financial presentations.**

<u>Response</u>: The Company's cost of revenue for both freight brokerage and dedicated services is entirely comprised of the costs our carriers incur and invoice us to perform the service. In the case of freight brokerage services, this reflects their total costs for hauling the customers freight from origin to destination. In the case of dedicated capacity services, this reflects having the trucks available to haul freight for the customer and costs related to any freight movements. For both services, these costs include any accessorial charges carriers may incur such as loading or unloading, drayage, stoppage, fuel surcharges, border-crossing, packing materials, etc.

The Company's depreciation and amortization costs relate to the Company's use over time of internally developed software, computer equipment, furniture, and our internet domain name. The Company considers all such costs to be operating expenses and not part of our cost of revenue. The parenthetical captions utilized in our financial presentations were consistent with prior reporting to provide clarity that depreciation and amortization are not part of our cost of revenue.

<u>Other Income and Expenses, page 47</u>

**3. We note that you report a gain of $1.6 million in 2024 resulting from extinguishments of convertible notes issued in 2023 and promissory notes issued in 2024, having Freight Opportunities, LLC as the counterparty, according to the disclosures on pages F-20 and F-23. On page 62, you indicate this entity, along with Freight Opportunities II, LLC, collectively beneficially own or control 91.1% of your shares.**

**Please expand your disclosure herein to provide further details regarding the terms of the cancellation agreements, and of the obligations that have been extinguished, including the circumstances precipitating the event, the principal and interest balances of the notes that were cancelled, and any related consideration or contingency.**

<u>Response</u>: The Company filed a Form 6-K on September 4, 2024 announcing extinguishment of the convertible notes and promissory notes, and included the entirety of the cancelation agreement in the filing. The components of the $1.6 million were:

---

| | |
|:---|:---|
| Principal of Promissory Term Notes | $875000 |
| Promissory Note Accrued Interest | $30822 |
| Book Value of Convertible Note | $219840 |
| Convertible Note Accrued Interest | $482103 |
| Total | $1607766 |

---

There were no other related considerations or contingencies.

To note, as of March 31, 2025, Freight Opportunities, LLC and Freight Opportunities II, LLC collectively owned 91.1% of the Company on a fully diluted basis, assuming all outstanding warrants and preferred shares the entities held were exercised or converted. The entities held 208,110 ordinary shares as of March 31, 2025 or 9.2% of the outstanding ordinary shares. The debt cancellation agreement did not require the Company to issue any additional ordinary shares, preferred shares or warrants to either entity.

<u>Changes in and Disagreements with Accountants on Accounting and Financial Disclosures,</u>

<u>page 50</u>

**4. We note that you have endeavored to provide certain required information about your relationships with three accounting firms that had been engaged to conduct auditing and review services. However, various representations and dates within these disclosures are inconsistent with prior disclosures or not clearly aligned. Please revise your disclosures as necessary to correct errors and misrepresentations to include revisions that address the following points.**

**(a) Your statement that UHY LLP resigned is not consistent with the report that you filed on July 10, 2024, which indicates that UHY LLP was dismissed.**

**(b) Your statement that Marcum LLP was engaged on June 20, 2024 is not consistent with the report that you filed on January 10, 2025, which indicates that Marcum LLP was engaged August 22, 2024.**

**(c) It appears that you intended to specify the periods prior to your dismissal of Marcum LLP in the sixth paragraph, in making a representation about whether or not there were disagreements or reportable events, although you reference an interim period that is not aligned with the date of their dismissal, and is not consistent with the report that you filed on January 10, 2025, which covers the period up to the date of dismissal.**

**(d) You have duplicate representations in the first and fifth paragraphs stating that Marcum LLP "has not provided any audit services to the Company subsequent to July 4, 2024" (which is the date that you also associate with the resignation of UHY LLP). Clarify whether these are accurate with respect to Marcum LLP, or if one of these should pertain to UHY LLP, and if a different date is needed to align with the audit and review work of Marcum LLP.**

**(e) Your statement that Marcum LLP resigned is not consistent with the report that you filed on January 10, 2025, which indicates that you dismissed Marcum LLP.**

**(f) You have duplicate representations in the third and seventh paragraphs about a letter from Marcum LLP that is filed as an exhibit. Clarify whether one of those was intended to express something similar with respect to UHY LLP.**

**(g) The seventh paragraph indicates that you asked Marcum LLP to provide a letter regarding the views of UHY LLP, which does not correlate with the disclosure requirement or the contents of the letter that you have filed as an exhibit.**

**(h) Your representation in the last paragraph regarding the engagement of TAAD LLP and whether the firm had been consulted with respect to certain matters prior to its engagement, does not fulfill the disclosure requirement because you reference Marcum LLP instead.**

<u>Response</u>: In consideration of the points raised here under item number four, the eight paragraphs in the section titled "Changes in and Disagreements with Accountants on Accounting and Financial Disclosures" should be adjusted to read as follows: (Words bolded to emphasize adjustments and bullet points referenced.)

**Point (a) and (d)**: UHY LLP ("UHY") audited our consolidated financial statements for the year ended December 31, 2023 and 2022. On July 4, 2024, UHY was **dismissed (a)** as our independent registered public accounting firm. The audit reports of UHY on the Company's financial statements as of and for the fiscal years ended December 31, 2023 and 2022 contained no adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles. UHY did not provide an audit report on our financial statements for any period subsequent to December 31, 2023. **UHY (d)** has not provided any audit services to the Company subsequent to July 4, 2024.

During the Company's two most recent fiscal years ended December 31, 2023 and 2022, and for the subsequent interim period through July 4, 2024, (i) there were no "disagreements" between us and UHY (as that term is defined in Item 304(a)(1)(iv) of Regulation S-K promulgated by the SEC ("Regulation S-K") and the related instructions to this item) on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of UHY, would have caused them to make reference to the subject matter of the disagreements in connection with their report on the financial statements for such period, and (ii) there were no "reportable events" as such term is defined in Item 304(a)(1)(v) of Regulation S-K, other than as described below.

**Point (h)**: We provided UHY with a copy of the foregoing disclosures and requested UHY to furnish us with a letter addressed to the SEC stating whether or not UHY agrees with the above disclosures. A copy of **UHY**'s **(f)** letter is filed as Exhibit 16.1 to this report.

**Point (b), (d) and (e)**: On **August 22, 2024, (b)** we engaged Marcum LLP ("Marcum") as our new independent registered public accounting firm. During the Company's two most recent fiscal years ended December 31, 2023 and 2022, and for the subsequent interim period through the date hereof prior to the engagement of Marcum, neither the Company nor anyone on its behalf consulted Marcum regarding any of the matters described in Items 304(a)(2)(i) or 304(a)(2)(ii) of Regulation S-K.

On January 7, 2025, Marcum **was dismissed (e)** as our independent registered public accounting firm. Marcum has not reported on the Company's consolidated financial statements for any interim or annual period. Marcum has not provided any audit services to the Company subsequent to **January 7, 2025 (d)**.

**Point (c), (f) and (g): During the Company's fiscal year ended December 31, 2024**, and for the subsequent interim period through **January 7, 2025**, **(c)** (i) there were no "disagreements" between us and Marcum (as that term is defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions to this item) on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Marcum, would have caused them to make reference to the subject matter of the disagreements in connection with their report on the financial statements for such period, and (ii) there were no "reportable events" as such term is defined in Item 304(a)(1)(v) of Regulation S-K, other than as described below.

We provided Marcum with a copy of the foregoing disclosures and requested Marcum to furnish us with a letter addressed to the SEC stating whether or not **Marcum (f) (g)** agrees with the above disclosures. A copy of Marcum's letter is filed as Exhibit 16.2 to this report.

**Point (h)**: On January 6, 2025, we engaged TAAD LLP ("TAAD") as our new independent registered public accounting firm. During the Company's two most recent fiscal years ended December 31, 2024 and 2023, and for the subsequent interim period through the date hereof prior to the engagement of TAAD, neither the Company nor anyone on its behalf consulted **TAAD (h)** regarding any of the matters described in Items 304(a)(2)(i) or 304(a)(2)(ii) of Regulation S-K.

**5. We note your disclosures indicating that you engaged Marcum LLP as your independent registered public accounting firm on June 20, 2024, and that the firm resigned on January 7, 2025.**

**Please explain to us the reasons that Marcum LLP resigned, including details of any precipitating circumstances and any communications involving the company during the period of the engagement. Please also describe for us in reasonable detail the extent to which the firm had conducted audit and review work during the period of their engagement, including details of the scope of procedures performed, and the extent of any such work that was conducted in your offices or facilities, and tell us the amount of any fees that you paid to Marcum LLP in connection with their services and explain how those fees have been reported in the table on page 64**.

<u>Response</u>: Regarding the dates of engagement with Marcum, the Company signed an engagement letter with Marcum on June 20, 2024. Marcum countersigned and formally accepted the engagement on August 22, 2024, after completing their onboarding procedures.

Marcum was engaged to serve as the Company's PCAOB registered auditor. The engagement was for reviews of interim financial statements, starting with our mid-year results ending on June 30, 2024, and fiscal year audits, starting with our fiscal year ending December 31, 2024. The Company's audit committee and its senior management decided to dismiss Marcum on January 7, 2025, because of additional time and expense Marcum incurred to complete tasks and procedures related to the 2024 mid-year financial review, and additional anticipated time and costs to complete the 2024 annual audit, which significantly exceeded expectations established at the onset of the engagement. Additionally, the Company incurred significant indirect costs, including outside legal and accounting support, to complete accounting memos and detailed analysis and support, requested by Marcum.

Marcum essentially completed their review procedures related to the Company's 2024 mid-year financials and current report, which was filed under an 8-K on January 10, 2025, and began preliminary work on their audit of the Company's 2024 full year financials. Their review of our 2024 mid-year financials included:

● analytical procedures and making inquiries of persons responsible for financial and accounting matters,

● obtaining sufficient knowledge of the Company's business and its internal control as it relates to the preparation of both annual and interim financial statements to identify the types of potential material misstatements in the interim financial statements and consider the likelihood of their occurrence, and

● inquiries and analytical procedures that provide a basis for communicating whether there are material modifications that should be made to the interim financial statements for them to conform with GAAP.

To note, Marcum's review of the Company's 2024 mid-year financials was substantially more involved than the Company's prior mid-year reviews. The level of notes and disclosures in the mid-year financial report was similar to those in the Company's annual financials.

<u>Controls and Procedures, page 51</u>

**6. We note you disclosure indicating internal control over financial reporting (ICFR) was assessed and found to be not effective at December 31, 2024 due to significant deficiencies and material weaknesses in ICFR, including certain "invoice and fulfilment reconciliations with the customer and general ledger entries related to dedicated service invoices and adjustments thereto were not always completed in a timely manner for internal reporting purposes."**

**Given the areas of overlap between ICFR and disclosure controls and procedures (DCP), and considering the nature of the material weaknesses and the various disclosure concerns outlined in the other comments in this letter, please clarify how you would conclude that DCP were effective at December 31, 2024.**

<u>Response</u>: Certain invoice and fulfilment reconciliations with customers and general ledger entries took longer to complete than desired over the course of the fiscal year ending December 31, 2024. The invoice reconciliation process with the Company's largest customer, Kimberly Clark de Mexico (KCM), in particular, sometimes took longer to complete than typical business practices due to KCM requirements for original documentation and multiple levels of internal approvals. The Company has worked with KCM to speed up necessary reconciliations through process improvements and technological automations, but certain internal KCM requirements have, at times, remained as bottlenecks. This has been the primary challenge to our internal controls over financial reporting.

Despite this challenge, the Company's management team is confident in the resulting accuracy of the financial reporting completed for the 10-K. Detailed audit procedures completed with our auditors, TAAD, for our annual financial statements ending on December 31, 2024, included substantive testing on the Company's material balances with a significant focus on revenue recognition and revenue from KCM. Final customer reconciliations and final results for the year took longer to conclude than desired, but the Company is confident that the established process and procedures did yield the correct results. Validating this point is that no adjusting journal entries related to KCM revenue were proposed.

The invoice reconciliation process with KCM, and the subsequent audit of KCM revenue, did contribute to the Company needing extra time to file its 2024 10-K, which was filed on April 14, 2024. However, the Company's 2024 10-K was within the allowable extension provided under SEC rules 12b-25(b) and (c).

<u>Principal Accountant Fees and Services, page 64</u>

**7**. **We note your disclosures about All Other Fees on page 65 indicating the independent accountant may have been compensated "for products and services" although also stating that the principal accountant was not engaged to render any services during the last two fiscal years other than as indicated in the other fee classifications.**

**However, given that you report having paid the independent accountant $111,750 for products and services that were incremental to the audit and review services, it appears that you should expand your disclosure to describe the nature of the services that your accountant provided to comply with Item 14(4) of Form 10-K.**

<u>Response</u>: The Company's audit fees incurred over the year included:

---

| | |
|:---|:---|
| UHY – 2023 Audit & 20-F | $312625 |
| Marcum – 2024 Mid-Year Review & 2024 Audit | $51500 |
| TAAD – 2024 Audit | $54075 |
| Total | $418200 |

---

The Company's non-audit other fees incurred in 2024 were:

---

| | |
|:---|:---|
| UHY – Keeping Current Procedures and Consent for 2024 10-K | $40000 |
| UHY – Comfort Letter for Referencing 2023 Financials with ATM | $71750 |
| Total | $111750 |

---

If you would like to discuss any of the responses to the Staff's comments or if you would like to discuss any other matters, please contact the undersigned at don.quinby@fr8hub.com or via phone on +1 (916) 501-9059 or Louis A. Bevilacqua of Bevilacqua PLLC at <u>Lou@bevilacquapllc.com</u> or via phone on (202) 869-0888 (ext. 100).

---

| | |
|:---|:---|
| Sincerely, | Sincerely, |
| **FREIGHT TECHNOLOGIES, INC.** | **FREIGHT TECHNOLOGIES, INC.** |
| By: | */s/ Donald Quinby* |
|  | Donald Quinby |
|  | CFO |

---

cc: Louis A. Bevilacqua

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-K/A**

**(Amendment No. 1)**

(Mark One)

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended: <u>December 31, 2024</u>

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to _____________

Commission File No. 001-38172

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| |
|:---|
| **FREIGHT TECHNOLOGIES, INC.** |
| (Exact name of registrant as specified in its charter) |

---

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| | |
|:---|:---|
| **British Virgin Islands** | **47-5429768** |
| (State or other jurisdiction<br> of incorporation or organization) | (I.R.S. Employer <br> Identification No.) |
| **2001 Timberloch Place, Suite 500**<br> **The Woodlands, TX** | **77380** |
| (Address of principal executive offices) | (Zip Code) |

---

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| |
|:---|
| **(773) 905-5076** |
| (Registrant's telephone number, including area code) |

---

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Ordinary Shares, no par value | FRGT | The Nasdaq Stock Market LLC |

---

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

As of June 28, 2024 (the last business day of the registrant's most recently completed second fiscal quarter), the aggregate market value of the registrant's shares of ordinary share, no par value per share ("ordinary shares"), held by non-affiliates (based upon the closing price of such shares as reported on The Nasdaq Stock Market LLC) was $5,105,717. Ordinary shares held by each executive officer and director and by each person who owned more than 10% of the outstanding shares of Ordinary Share have been excluded from the calculation in that such persons may be deemed to be affiliates of the registrant. This determination of affiliate status is not necessarily a conclusive determination for other purposes.

As of March 31, 2025, there were a total of 2,265,074 shares of the registrant's Ordinary Share with no par value outstanding and 2,265,074 shares of the registrant's Ordinary Share outstanding.

**DOCUMENTS INCORPORATED BY REFERENCE**

None.

**Freight Technologies, Inc.**

**Annual Report on Form 10-KA**

**Year Ended December 31, 2024**

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
|  | [PART II](#RMa_001) |  |
| Item 7. | [Management's Discussion and Analysis of Financial Condition and Results of Operations.](#J_001) | 1 |
| Item 9. | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.](#J_002) | 8 |
| Item 9A. | [Controls and Procedures.](#J_003) | 9 |
|  | [PART III](#RMa_002) |  |
| Item 13. | [Certain Relationships and Related Transactions, and Director Independence.](#J_004) | 11 |
| Item 14. | [Principal Accountant Fees and Services.](#J_005) | 12 |
|  | [PART IV](#J_007) |  |
| Item 15. | [Exhibit and Financial Statement Schedules.](#J_006) | 13 |
| [Signatures](#RM_001) | [Signatures](#RM_001) | 14 |

---

i

**EXPLANATORY NOTE**

Freight Technologies, Inc. (the "Company") filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the "Original Filing") with the Securities and Exchange Commission (the "SEC") on April 14, 2025. The purpose of Amendment No. 1 on Form 10-K/A (this "Amendment") is to include additional information throughout that has been requested to be included pursuant to an SEC comment letter, dated June 5, 2025. Additionally, we have made adjustments to Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations, Item 9 - Changes in and Disagreements with Accountants on Accounting and Financial Disclosure, Item 9A - Controls and Procedures and Item 14 - Principal Accountant Fees and Services.

Also as disclosed in the Current Report on Form 8-K, filed by the Company with the SEC on April 30, 2025 that the board of directors (the "Board") of the Company appointed Andres Gonzalez as Chairman of the Nominating Committee of the Board and a member of the Compensation Committee of the Board (the "Compensation Committee"), and Leilei Nie as a member of both the Audit Committee of the Board and the Compensation Committee, the Company also made adjustments to Item 13 - Certain Relationships and Related Transactions, and Director Independence.

This Amendment is being filed solely to reflect the above adjustments. No other changes were made to the Original Filing. Further, no attempt has been made in this Amendment to modify or update the other disclosures presented in the Original Filing. This Amendment does not reflect events occurring after the date of the Original Filing or modify or update those disclosures that may be affected by subsequent events. Accordingly, this Amendment should be read in conjunction with the Original Filing and the registrant's other filings with the SEC.

ii

**PART II**

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| | |
|:---|:---|
| **ITEM 7.** | **MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.** |

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*The following discussion and analysis summarizes the significant factors affecting our operating results, financial condition, liquidity and cash flows as of and for the periods presented below. The following discussion and analysis should be read in conjunction with our financial statements and the related notes thereto included elsewhere in this Annual Report. The discussion contains forward-looking statements that are based on the beliefs of management, as well as assumptions made by, and information currently available to, management. Actual results could differ materially from those discussed in or implied by forward-looking statements as a result of various factors, including those discussed below and elsewhere in this Annual Report, particularly in the sections titled* Item 1A. "*Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements."*

***Select Financial Data***

The following table presents the selected consolidated financial information for our Company. All numbers are presented in United States Dollars. The selected consolidated statements of comprehensive income data for the years ended December 31, 2024, and 2023, and the consolidated balance sheets data as of December 31, 2024, and 2023, have been derived from our audited consolidated financial statements and are consistent with numbers reported in our prior annual filings.

Our historical results do not necessarily indicate results expected for any future periods. The selected consolidated financial data should be read in conjunction with, and are qualified in their entirety by reference to, our audited consolidated financial statements and related notes and "Item 5. Operating and Financial Review and Prospects" below. Our audited consolidated financial statements are prepared and presented in accordance with U.S. GAAP.

---

| | | |
|:---|:---|:---|
| <br>**(US$)** | **Year Ended**<br>**December 31 2024** | **Year Ended**<br>**December 31, 2023** |
| **Revenue** | $**13728922** | $**17060753** |
| **Cost and expenses** |  |  |
| Cost of revenue | 12389520 | 15709673 |
| Compensation and employee benefits | 5349764 | 5963713 |
| General and administrative | 1983901 | 3163639 |
| Sales and marketing | 65574 | 80328 |
| Depreciation and amortization | 430414 | 404598 |
| **Total Cost and expenses** | **20219173** | **25321951** |
| **Operating Loss** | **(6490251)** | **(8261198)** |
| **Other income and (expenses)** |  |  |
| Interest income | 1770 | 8880 |
| Interest expense | (675628) | (816819) |
| Other income |  | 342 |
| Other expense |  | (499259) |
| Gain from extinguishment of debt | 1607766 |  |
| Change in fair value of convertible note | 22602 | 345396 |
| **Total other expense** | **956510** | **(961460)** |
| **Loss before income taxes** | **(5533741)** | **(9222658)** |
| Income tax expense | 67486 | 104948 |
| **Net loss** | **(5601227)** | **(9327606)** |
| Foreign currency translation | (1740552) | 452917 |
| **Comprehensive loss** | **(7341779)** | **(8874689)** |
| **Weighted average number of shares, basic and diluted\*** | **912837** | **47867** |
| **Loss per share, basic and diluted** | $**(6.41)** | $**(194.87)** |

---

\* - The number of shares outstanding was adjusted retroactively for all periods presented to reflect the 10-to-1 reverse stock split change which was effected on March 24, 2023, the 10-to-1 reverse split which was effected on February 5, 2024, and the 25-to-1 reverse split which was effected on September 25, 2024.

Warrants to purchase ordinary shares are not included in the diluted loss per share calculations when their effect is antidilutive.

**BALANCE SHEET**

---

| | | |
|:---|:---|:---|
|  | **Year Ended**<br> **December 31, 2024** | **Year Ended**<br> **December 31, 2023** |
| Current assets | $5049546 | $9153089 |
| Total assets | 5690245 | 10037312 |
| Current liabilities | 6345005 | 7167889 |
| Long term liabilities |  | 242442 |
| Share capital | 308 | 2427518 |
| **Total stockholders' equity (deficit)** | $**(654760)** | $**2626981** |

---

**Revenues**

Fr8Tech's revenues decreased to $13.7 million for the year ended December 31, 2024 from $17.1 million for the year ended December 31, 2023, a reduction of $3.3 million and 19.5% on year-over-year basis. The year-over-year decrease was primarily driven by: (1) our continued efforts to focus on higher margin customers and lanes in the spot market which impacted overall volume across the platform; (2) reduced spot market and dedicated service activity in the third quarter 2023 due to customer specific circumstances; and, (3) an approximate 3.5% decline in the Mexican peso relative to the US dollar year-over-year, which reduced the US dollar amount of Mexican peso based revenue on a comparative basis. Our spot market revenue declined 36% to $8.6 million in 2024, partially offset by a 42% increase in our Fr8Fleet revenue to $5.1 million and to a lesser extent the launch of Waavely, our ocean container freight brokerage service.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year Ended** | **Year Ended** | | |
| | **December 31,** | **December 31,** | | |
| <br>**Revenue** | **2024** | **2023** |<br>**Change** |<br>**% Change** |
| Freight Transportation Brokerage | $8635201 | $13474282 | $(4839081) | -35.9% |
| Dedicated Capacity | 5093721 | 3586471 | $1507250 | 42.0% |
| **Total** | $**13728922** | $**17060753** | $**(3331831)** | **-19.5%** |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Year Ended** | **Year Ended** | | |
| | **December 31,** | **December 31,** | | |
| <br>**Volume** | **2024** | **2023** |<br>**Change** |<br>**% Change** |
| Brokerage Shipments | 4780 | 6886 | (2106) | -30.6% |
| Dedicated Capacity Truck Days | 15139 | 9045 | 6094 | 67.4% |

---

The Freight Transportation Brokerage service line experienced a 31% decline in the number of shipments; 35% lower for US domestic, 24% lower in Mexico domestic, and a 36% lower for cross-border shipments.

The Dedicated Capacity service line experienced a 67% increase in the number of truck days made available to our Fr8Fleet customers. One truck day means a standard 53' dry-van trailer and truck being available to serve the customer for one full working day. The increase in truck days exceeded the increase in revenue, primarily due to the Company providing significantly more local, short-haul capacity in 2024 for its primary Fr8Fleet customer, Kimberly Clark de Mexico (KCM), which is provided at a lower daily rate than longer haul capacity.

Fr8Tech's revenues decreased to $17.1 million for the year ended December 31, 2023 from $25.9 million for the year ended December 31, 2022, a reduction of $8.8 million and 34.1% on year-over-year basis. The year-over-year decrease was primarily driven by: (1) our decision to limit activity with low-margin, but high-volume customers; (2) the loss of one customer due to non-recurring issue with a particular Carrier; and, (3) reduced spot market activity across several accounts driven by challenges in securing sufficient carrier capacity in the first half of 2023 and US market rates that were significantly lower than in 2022. This was partially offset by a 67% increase in our Fr8Fleet revenue and the addition of more than 30 new customers in our spot market FTL and LTL businesses.

**Costs of Revenue**

The Company's cost of revenue for both freight brokerage and dedicated services is entirely comprised of the costs our carriers incur and invoice us to perform the service. In the case of freight brokerage services, this reflects their total costs for hauling the customers freight from origin to destination. In the case of dedicated capacity services, this reflects having the trucks available to haul freight for the customer and costs related to any freight movements. For both services, these costs include any accessorial charges carriers may incur such as loading or unloading, drayage, stoppage, fuel surcharges, border-crossing, packing materials, etc.

Fr8Tech's cost of revenue decreased to $12.4 million for the year ended December 31, 2024 from $15.7 million for the year ended December 31, 2023, a reduction of $3.3 million and 21.1% on a year-over-year basis. Year-over-year cost of revenue decreased primarily due to the decline in revenue. Our gross margin percentage increased 1.8% to 9.8% in 2024 from 7.9% in 2023 primarily due to change in product mix, variation in rates on certain lanes and in the traffic mix itself over the year. Fr8Fleet business, which grew 42% in 2024 with improved margins primarily due to providing additional capacity for Kimberly Clark de Mexico and expanding service to several additional large enterprise end-customers.

Fr8Tech's cost of revenue decreased to $15.7 million for the year ended December 31, 2023 from $23.6 million for the year ended December 31, 2022, a reduction of $7.9 million and 33.5% on a year-over-year basis. This year-over-year decrease moved in similar fashion and magnitude with our revenue, with some differences due to varying margins in the traffic and in the traffic mix itself from quarter-to-quarter and year-to-year. Our gross margin decreased 0.8% to 7.9% in 2023 from 8.7% in 2022 primarily due to product mix. Fr8Fleet business, which grew 67% in 2023, incurred slightly lower margins than our spot market services due to higher initial service costs to develop that offering over the year.

**Compensation and Employee Benefits**

Fr8Tech's compensation and employee benefits expenses were $5.3 million for the year ended December 31, 2024 compared to $6.0 million for the year ended December 31, 2023, which was a $0.6 million or 10.3% decrease on a year-over-year basis. The decrease was primarily due lower executive compensation and bonuses, lower stock based compensation, and a weaker Mexican peso relative to the US dollar, partially offset by some additional hiring. Total employees and FTE contractors, who are included in our compensation costs, at December 31, 2024 and 2023 were 100 and 89, respectively. The increase in the number of employees in 2024 was primarily within sales, technology and operations.

In January and February 2025, the Company undertook a cost cutting initiative to optimize resources for operational performance and shifting sales focus to emphasize sales of the Company's TMS software offering, Fleet Rocket, and to lower ongoing operating expenses. The Company reduced its workforce by approximately 20%. As a result of these measures, the Company anticipates that its compensation and employee benefit expenses will be lower in 2025 than in 2024.

Fr8Tech's compensation and employee benefits expenses were $6.0 million for the year ended December 31, 2023 compared to $5.0 million for the year ended December 31, 2022, which was a $1.0 million or 20.2% increase on a year-over-year basis. The increase was primarily due to stock compensation costs related to new grants issued during 2022 and 2023 and hiring new employees in dedicated services, business intelligence and carrier procurement. As noted above, the total number of employees and FTE contractors was 89 at December 31, 2023, at which time the company was making several personnel changes, mostly on the sales team.

**General and Administrative**

General and administrative expenses were $2.0 million for the year ended December 31, 2024 compared to $3.2 million for the year ended December 31, 2023, which was a decrease of $1.2 million or 37.7%, primarily due to a favorable change in the exchange valuation of working capital balances and to a lesser extent lower outside legal expenses and insurance costs, partially offset by higher spend on software, audit services, and recruiting.

General and administrative expenses were $3.2 million for the year ended December 31, 2023 compared to $3.6 million for the year ended December 31, 2022, which was a decrease of $0.4 million or 11.2%, primarily due to lower outside legal counsel and public company costs.

**Sales and Marketing**

Sales and marketing expenses were $66 thousand for the year ended December 31, 2024 compared to $80 thousand for the year ended December 31, 2023, which was a decrease of $14 thousand or 17.5%. The decrease in sales and marketing expenses in 2024 was primarily to lower direct advertising expenses, which is focused on online industry media and platforms. We continue to use direct and online advertising and social media platforms for promotion and attracting new Shippers and Carriers to our Platform. We expect these costs to increase modestly to support growth of our business across our brands and new software offering.

Sales and marketing expenses were $80 thousand for the year ended December 31, 2023 compared to $557 thousand for the year ended December 31, 2022, which was a decrease of $477 thousand or 85.6%. The decrease in marketing expenses in 2023 was mostly due to a strategic alliance during 2022 with a US-based counterparty that was working with us to originate and manage US domestic business and that was paid for with the issuance of Ordinary shares in 2022.

**Depreciation and Amortization**

Depreciation and amortization expenses represent the amortization of previously capitalized software development costs, as appropriate, and depreciation expenses related to Fr8App's fixed assets. This expense increased $25 thousand to $430 thousand for the year ended December 31, 2024, from $405 thousand for the year ended December 31, 2023. The increase was primarily due to additional software development of Fr8Tech platform in 2023 and 2024, as well as software development efforts in 2024 to build Fleet Rocket, our TMS software platform that was launched in February 2025.

Depreciation and amortization increased to $405 thousand for the year ended December 31, 2023, from $243 thousand for the year ended December 31, 2022, an increase of $161 thousand or 66.7% on a year-over-year basis, due to the completion of the application development stage of Fr8Tech platform which resulted in an increase of capitalized software amortization.

**Other income and expenses**

Interest expense for the year ended December 31, 2024 decreased to $674 thousand from $808 thousand for the year ended December 31, 2023, or by $134 thousand primarily due lower interest incurred on the convertible note that was issued in 2023, partially offset by higher interest expense incurred on the company's revolving credit facility and promissory notes issued in 2024.

During the year ended December 31, 2024, other income and expense included a gain of $1.6 million from the extinguishment of the convertible notes issued in 2023 and the promissory notes issued in 2024, as well as a gain of $22 thousand from a change in fair value of convertible note.

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| | |
|:---|:---|
| **Components of gain from debt extinguishment ($)** | |
| Principal of Promissory Term Notes | $875000 |
| Promissory Note Accrued Interest | 30822 |
| Book Value of Convertible Note | 219840 |
| Convertible Note Accrued Interest | 482104 |
| **Total** | $**1607766** |

---

There were no other related considerations or contingencies. The debt cancellation agreement did not require the Company to issue any additional ordinary shares, preferred shares or warrants to either entity.

Interest expenses for the year ended December 31, 2023 decreased to $808 thousand from $907 thousand for the year ended December 31, 2022 due to a debt discount amortization for the year ended December 31, 2022, which was higher than interest expenses incurred in 2023 related to the convertible note that was issued in 2023.

During the year ended December 31, 2023, other income and expense also included expensing the fair value of warrants issued as an inducement for convertible note conversion and as an additional consideration for an increase in convertible note funding, in the total amount of $499 and a gain of $345 from a change in fair value of convertible note. The convertible note issued during 2023 and warrants and related accounting treatment are more fully described in Notes 11 and 15, respectively, of our consolidated financial statements.

**Net Loss**

Fr8Tech's net loss for the year ended December 31, 2024 decreased to $5.6 million from $9.3 million for the year ended December 31, 2023 or by $3.7 million or 40% on a year-over-year basis, as a result of the items described above.

Fr8Tech's net loss for the year ended December 31, 2023 increased to $9.3 million from $8.2 million for the year ended December 31, 2022 or by $1.1 million or 13.9% on a year-over-year basis, as a result of the items described above.

**Liquidity and Financial Position**

Fr8Tech has historically met its cash needs through a combination of cash flows from operating activities, term loans, promissory notes, bonds, convertible notes, private placement offerings and sales of equity. Fr8Tech's cash requirements are generally for operating activities and debt repayments. Fr8Tech funded its early operations with a combination of debt and equity and we continue to work to position the Company to operate on a go-forward basis with a minimal amount of long-term debt and other borrowings. On January 3, 2023, Fr8Tech closed on a $6.6 million convertible note facility with a private investor, which was increased to $9.9 million in April 2023. The convertible note was mostly converted to equity during 2023. The balance of the convertible note of $219 thousand as of June 30, 2024, was extinguished in September 2024. The Company entered into a $750 thousand 1-year term note purchase agreement with Freight Opportunities, LLC on March 11, 2024, and an additional term note for $125 thousand with Freight Opportunities, LLC on June 4, 2024. Both promissory notes were also extinguished in September 2024.

Our combined accounts receivable and unbilled receivable balance of $4.1 million at December 31, 2024, declined by declined by $2.3 million or 35.9% from $6.3 million at December 31, 2023, which was primarily due to lower revenue and collections to reduce our outstanding AR balance over the year.

Fr8Tech's accounts payable, short-term borrowings and accrued expenses decreased by $867 thousand or 12.5% on a year-over-year comparative basis to $6.1 million, due mostly to lower accrued expenses on lower costs of revenue and accounts payable. At December 31, 2024, Fr8Tech has an accumulated net capital deficient of -$33 thousand, and net working capital of -$1.2 million.

In March 2019, we secured a revolving line of credit that is used to assist with managing our working capital needs. The maximum principal amount that may be drawn under the line of credit was increased since then to $5 million, which remains in place. As of December 31, 2024 and 2023 the amount drawn under this facility was $3.3 million $2.8 million, respectively. We continue to incur short-term debt with this facility, which is collateralized by our accounts receivable, and we expect to maintain this debt facility to support ongoing operations.

As shown in the accompanying consolidated financial statements as of December 31, 2024, we had an accumulated deficit of approximately $44.9 million, short-term debt of $3.3 million, unrestricted cash of approximately $0.2 million and a working capital of approximately -$1.3 million. In addition, for the years ended December 31, 2024 and 2023, we reported operating losses and negative cash flows from operations.

Most of cash resources of the Company fund operating activities. Through December 31, 2024, we have financed our operations primarily with the proceeds from the sale and issuance of our ordinary and preferred shares, convertible promissory notes, promissory notes and debt.

If we are unable to raise additional capital moving forward, our ability to operate in the normal course and continue to invest in our business may be materially and adversely impacted and we may be forced to scale back operations or divest some or all of our assets.

As a result of the above, in connection with our assessment of going concern considerations in accordance with FASB Accounting Standards Update ("ASU") 2014-15, "Disclosures of Uncertainties about an Entity's Ability to Continue as a Going Concern," management has determined that our liquidity condition raises substantial doubt about our ability to continue as a going concern through twelve months from the date these consolidated financial statements are available to be issued. These consolidated financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should we be unable to continue as a going concern.

**Cash flows**

***Comparison of the Years ended December 31, 2024, and December 31, 2023***

The following table summarizes our sources and uses of cash for the years ended December 31, 2024, and December 31, 2023.

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| | | |
|:---|:---|:---|
| **(US$)** | **Year Ended<br> December 31,<br> 2024** | **Year Ended<br> December 31,<br> 2023** |
| Net cash used in operating activities | (4206168) | (5790684) |
| Net cash used in investing activities | (345723) | (363369) |
| Net cash provided by financing activities | 4242023 | 6800722 |
| Net effect of exchange rates on cash | (1046205) | (99564) |
| Net increase / (decrease) in cash and cash equivalents | (309868) | 646669 |

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***Cash flows used in Operating Activities***

Net cash used in operating activities represent the cash receipts and disbursements related to our activities other than investing and financing activities. We expect cash provided by operating activities to be our primary use of funds for the foreseeable future as the Company continues to fund its growing operations

Net cash flows used in operating activities is derived by adjusting our net loss for:

● non-cash operating items such as depreciation and amortization, stock-based compensation and other non-cash income or expenses;

● changes in operating assets and liabilities reflect timing differences between the receipt and payment of cash associated with transactions and when they are recognized in results of operations as well as any gains from extinguishment of debt or changes in value of preferred stock.

For the year ended December 31, 2024, net cash used in operating activities was $4.2 million which consisted of a net loss of $5.6 million adjusted for non-cash charges of -$0.2 million and net positive changes in our net operating assets and liabilities of $1.6 million. The non-cash charges primarily consisted of gain on extinguishment of debt of -$1.6 million and a change in the fair value of convertible note of $23 thousand, offset by share-based compensation costs of $1.0 million and depreciation and amortization of $0.4 million. The change in our net operating assets and liabilities was primarily due to net decreases in accounts receivable and unbilled receivables of $1.5 million, prepaid assets and deposits of $0.4 million, and income and VAT tax balances $0.2 million, partially offset by a decrease of accounts payable and accrued expenses of $0.5 million. The changes in our accounts receivable and accounts payable balances are primarily the result of the overall decrease in business activities and higher collections relative to the prior year.

For the year ended December 31, 2023, net cash used in operating activities was $5.8 million which consisted of a net loss of $9.3 million, adjusted for non-cash charges of $1.8 million and net changes in our net operating assets and liabilities amounting to $1.7 million. The non-cash charges primarily consisted of share-based compensation costs of $1.2 million, interest accruals on convertible notes of $0.4 million, depreciation and amortization of $0.4 million, and conversion inducement expense of $0.1 million, partially offset by a change in fair value of convertible note of $0.3 million. The change in our net operating assets and liabilities was primarily due to net decreases in accounts receivable and unbilled receivables of $1.1 million, prepaid assets and deposits of $0.3 million, and accounts payable of $0.2 million, partially offset by an increase of accrued expenses and income tax payable of $0.5 million. The changes in our accounts payable and accounts receivable balances are primarily the result of the overall decrease in business activities relative to the prior year.

***Cash flows used in Investing Activities***

For the year ended December 31, 2024, net cash used in investing activities was $346 thousand, mostly for software development efforts for additional functionalities and capabilities of the Fr8App platform and related offerings, as well as building out Fleet Rocket.

For the year ended December 31, 2023, net cash used in investing activities was $336 thousand, mostly for software development efforts for additional functionalities and capabilities of the Fr8App platform and related offerings.

***Cash flows provided by Financing Activities***

For the year ended December 31, 2024, net cash provided by financing activities was $4.2 million. The cash flow provided was from proceeds from the issuance of ordinary equity through our ATM program for $3.1 million, promissory notes of $0.9 million, and net borrowing revolving credit facility $0.5 million, partially offset by repayment of insurance financing for $0.2 million.

For the year ended December 31, 2023, net cash provided by financing activities was $6.8 million. The cash flow provided was primarily from net proceeds from the issuance of convertible note of $7.7 million, partially offset by a net repayment on borrowing facilities of $0.5 million, and repayment of insurance financing of $0.3 million.

**Research and development, patents and licenses**

The first commercial version of Fr8Tech's products was launched in 2017. Fr8Tech continued its product development efforts throughout 2018, by adding initial business intelligence and analytics to supplement its basic products in 2019 and offered its revised products package with active freight brokerage support and customer service by year-end 2019. The second generation of Fr8Tech products were brought to market during the second quarter of 2020 and consisted of the online portal, mobile application, TMS functionality, and Fr8App's platform supplemented with freight brokerage support and customer service integrations. In 2022, the Company began offering to the Mexican domestic market dedicated capacity under the Fr8Fleet brand and in 2023 LTL services under the Fr8Now brand, both powered and managed by the Fr8App platform and bringing much of the same capabilities and intelligence to both services.

The Company has continued to bring additional functionality and enhancements to its core Fr8App platform over the past several years, as well as launch new technology-based offerings, including Fr8Radar, Waavely, and most recently Fleet Rocket, the TMS software solution launched in February 2025.

Fr8Tech's principal assets consist of its software, in which it invests continuously through development work by employees and externally contracted parties. Fr8Tech invested more than $0.3 million per year in software during the years ended December 31, 2024 and 2023. Fr8Tech expects to continue investing in its software in line with the expansion of its product offerings.

On January 7, 2021, Fr8App filed a trademark application with the U.S. Patent and Trademark Office for the Fr8Technologies design mark. Fr8App currently does not hold any patents or own any registered trademarks. Fr8App believes that the success of its business depends on the quality of its proprietary software solutions, technology, processes, and domain expertise. While it considers its intellectual property rights to be valuable, Fr8App believes that its competitive position depends primarily on its ability to increase and eventually to maintain a leadership position by developing innovative proprietary solutions, technology, information, processes, insights and business intelligence to satisfy both Shippers and Carriers' needs through its Platform.

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| | |
|:---|:---|
| **ITEM 9.** | **CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.** |

---

UHY LLP ("UHY") audited our consolidated financial statements for the year ended December 31, 2023 and 2022. On July 4, 2024, UHY was dismissed as our independent registered public accounting firm. The audit reports of UHY on the Company's financial statements as of and for the fiscal years ended December 31, 2023 and 2022 contained no adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles. UHY did not provide an audit report on our financial statements for any period subsequent to December 31, 2023. UHY has not provided any audit services to the Company subsequent to July 4, 2024.

During the Company's two most recent fiscal years ended December 31, 2023 and 2022, and for the subsequent interim period through July 4, 2024, (i) there were no "disagreements" between us and UHY (as that term is defined in Item 304(a)(1)(iv) of Regulation S-K promulgated by the SEC ("Regulation S-K") and the related instructions to this item) on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of UHY, would have caused them to make reference to the subject matter of the disagreements in connection with their report on the financial statements for such period, and (ii) there were no "reportable events" as such term is defined in Item 304(a)(1)(v) of Regulation S-K, other than as described below.

We provided UHY with a copy of the foregoing disclosures and requested UHY to furnish us with a letter addressed to the SEC stating whether or not UHY agrees with the above disclosures. A copy of UHY's letter is filed as Exhibit 16.1 to this report.

On August 22, 2024, we engaged Marcum LLP ("Marcum") as our new independent registered public accounting firm. During the Company's two most recent fiscal years ended December 31, 2023 and 2022, and for the subsequent interim period through the date hereof prior to the engagement of Marcum, neither the Company nor anyone on its behalf consulted Marcum regarding any of the matters described in Items 304(a)(2)(i) or 304(a)(2)(ii) of Regulation S-K.

On January 7, 2025, Marcum was dismissed as our independent registered public accounting firm. Marcum has not reported on the Company's consolidated financial statements for any interim or annual period. Marcum has not provided any audit services to the Company subsequent to July 7, 2025.

During the Company's fiscal year ended December 31, 2024, and for the subsequent interim period through January 7, 2025, (i) there were no "disagreements" between us and Marcum (as that term is defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions to this item) on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Marcum, would have caused them to make reference to the subject matter of the disagreements in connection with their report on the financial statements for such period, and (ii) there were no "reportable events" as such term is defined in Item 304(a)(1)(v) of Regulation S-K, other than as described below.

We provided Marcum with a copy of the foregoing disclosures and requested Marcum to furnish us with a letter addressed to the SEC stating whether or not Marcum agrees with the above disclosures. A copy of Marcum's letter is filed as Exhibit 16.2 to this report.

On January 6, 2025, we engaged TAAD LLP ("TAAD") as our new independent registered public accounting firm. During the Company's two most recent fiscal years ended December 31, 2024 and 2023, and for the subsequent interim period through the date hereof prior to the engagement of TAAD, neither the Company nor anyone on its behalf consulted TAAD regarding any of the matters described in Items 304(a)(2)(i) or 304(a)(2)(ii) of Regulation S-K.

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| | |
|:---|:---|
| **ITEM 9A.** | **CONTROLS AND PROCEDURES.** |

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**Evaluation of Disclosure Controls and Procedures**

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, have evaluated our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) prior to the filing of this Annual Report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this Annual Report, our disclosure controls and procedures were, in design and operation, effective at a reasonable assurance level.

**Management's Annual Report on Internal Control over Financial Reporting**

The Company's internal control over financials reporting includes those policies and procedures that:

● Pertain
 to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;

● Provide
 reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with
 U.S. GAAP, and that our receipts and expenditures are being made only in accordance with authorizations of our management and our
 directors; and

● Provide
 reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that
 could have a material effect on the financial statements.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control over financial reporting that is less severe than a material weakness, yet important enough to merit attention by those responsible for oversight of the company's financial reporting.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or because the degree of compliance with policies or procedures may deteriorate. Under the supervision and with the participation of our management, including our CEO and CFO, we conducted an assessment of the effectiveness of our internal control over financial reporting as of December 31, 2024.

The assessment was based on criteria established in the framework Internal Control - Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on this assessment, management determined that, as of December 31, 2024, we did not maintain effective internal control over financial reporting due to the existence of the following significant deficiency and material weakness:

● Lack
 of a functional internal audit department or personnel that monitors the consistencies of the preventive internal control procedures
 and, as a result, the Company may not be able to discover the existence of problems and prevent the problematic behavior in internal
 controls; and

● For
 revenue related to dedicated capacity for the year ended December 31, 2024, invoice and fulfilment reconciliations with the customer
 and general ledger entries related to dedicated service invoices and adjustments thereto were not always completed in a timely manner
 for internal reporting purposes.

 

*Remediation*

Since becoming a publicly-trade public, management has continuously worked to improve the Company's internal controls. Our management has carried out and is continuing to undertake the following actions to remediate the material weakness and deficiency described above:

● Engaged
 an external SOX 404 implementation firm in 2023 to assist in improving the Company's controls, which included a deep-dive assessment
 of all policies and procedures and targeted actions to mitigate all weaknesses and deficiencies and bring all our internal controls
 compliant with SOX 404;

● Strengthen
 designated roles and/or certain employees for ongoing maintenance of internal control policies and procedures, including enforcing
 existing policies, maintaining evidence of task and requirement completion, and updated process documentation, guidelines and communications
 to employees as necessary;

● Continue
 ongoing training initiatives to ensure daily activities and practices of all employees are in alignment with our internal controls
 and US GAAP and compliant with established policies and procedures;

● Hire
 finance professionals with strong SOX and internal control backgrounds; and

● Implement
 system enhancements and new applications that are aligned with our focus on creating strong internal controls, as well as complete
 and accurate financial information.

Over the past year, management made significant progress with identifying, documenting, implementing and testing many controls to address previously identified material weaknesses and significant deficiencies. The effect cover core Company processes including: order-to-cash, procure-to-pay, hire-to-retire, information technology general controls, record-to-report, taxes, treasury & cash management, and corporate governance. The Company is continuing to review, test and updated its controls to ensure they remain effective.

However, we cannot provide any assurance that these remediation efforts are and will be successful or that our internal control over financial reporting will be effective as a result of these efforts. In addition, as we continue to evaluate and work to improve our internal controls over financial reporting related to the identified material weakness, management may determine to take additional measures to address control deficiencies or determine to modify the remediation plan described above.

**Changes in Internal Control over Financial Reporting**

Management is committed to improving the internal controls over financial reporting and will undertake consistent improvements or enhancements on an ongoing basis. Except as described above, there were no changes in our internal controls over financial reporting during our twelve months ended December 31, 2024 that have materially affected, or are reasonably likely to material affect, our internal control over financial reporting.

**Inherent Limitation on the Effectiveness of Internal Control**

The effectiveness of any system of internal control over financial reporting, including ours, is subject to inherent limitations, including the exercise of judgment in designing, implementing, operating, and evaluating the controls and procedures, and the inability to eliminate misconduct completely. Accordingly, any system of internal control over financial reporting, including ours, no matter how well designed and operated, can only provide reasonable, not absolute assurances. In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. We intend to continue to monitor and upgrade our internal controls as necessary or appropriate for our business but cannot assure you that such improvements will be sufficient to provide us with effective internal control over financial reporting.

**PART III**

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| | |
|:---|:---|
| **ITEM 13.** | **CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.** |

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**Transactions with Related Persons**

The following includes a summary of transactions since the beginning of our 2023 fiscal year, or any currently proposed transaction, in which we were or are to be a participant and the amount involved exceeded or exceeds the lesser of $120,000 or 1% of the average of our total assets at year-end for the last two completed fiscal years, and in which any related person had or will have a direct or indirect material interest (other than compensation described under Item 11 "*Executive Compensation*" above). We believe the terms obtained or consideration that we paid or received, as applicable, in connection with the transactions described below were comparable to terms available or the amounts that would be paid or received, as applicable, in arm's-length transactions.

**Promoters and Certain Control Persons**

Each of Mr. Javier Selgas, Chief Executive Officer and Director, Mr. Donald Quinby, Chief Financial Officer, Ms. Luisa Irene Lopez Reyes, Chief Operating Officer and Paul Freudenthaler, Secretary, may be deemed a "promoter" as defined by Rule 405 of the Securities Act. For information regarding compensation, including items of value, that have been provided or that may be provided to these individuals, please refer to "*Executive Compensation*" above.

**Director Independence**

***Independent Directors***

Nasdaq's rules generally require that a majority of an issuer's board of directors consist of independent directors. Our board of directors consists of seven directors, four of whom are independent within the meaning of Nasdaq's rules.

***Committees of the Board of Directors***

*<u>Audit Committee</u>*

Nicholas H. Adler, Leilei Nie and Marc Urbach, each of whom has been determined by the board of directors to satisfy the "independence" requirements of Rule 10A-3 under the Exchange Act and Nasdaq's rules, serve on the Audit Committee, with Mr. Marc Urbach serving as the chairman. Our board has determined that Mr. Marc Urbach qualifies as an "audit committee financial expert" as defined by Item 407(d)(5) of Regulation S-K promulgated by the SEC. The Audit Committee oversees our accounting and financial reporting processes and the audits of the financial statements of the Company.

*<u>Compensation Committee</u>*

Nicholas H. Adler, Andres Gonzalez, and Marc Urbach, each of whom satisfies the "independence" requirements of Rule 10C-1 under the Exchange Act and Nasdaq's rules, serve on the Compensation Committee, with Mr. Adler serving as the chairman. The members of the Compensation Committee are also "non-employee directors" within the meaning of Section 16 of the Exchange Act. The Compensation Committee assists the board in reviewing and approving the compensation structure, including all forms of compensation, relating to our directors and executive officers.

*<u>Nominating Committee</u>*

Nicholas H. Adler, Andres Gonzalez, and Leilei Nie, each of whom satisfies the "independence" requirements of Nasdaq's rules, serve on our Nominating Committee, with Andres Gonzalez serving as the chairman. The Nominating Committee assists the board of directors in selecting individuals qualified to become our directors and in determining the composition of the board and its committees.

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| | |
|:---|:---|
| **ITEM 14.** | **PRINCIPAL ACCOUNTANT FEES AND SERVICES.** |

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**Independent Auditors' Fees**

The aggregate fees billed to the Company by the Company's principal accountant for the indicated services for each of the last two fiscal years were as follows:

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| | | |
|:---|:---|:---|
|  | **Year Ended** | **Year Ended** |
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| Audit Fees | $418200 | $256250 |
| Audit-Related Fees |  |  |
| Tax Fees |  |  |
| All Other Fees | 111750 |  |
| Total | $529950 | $256250 |

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As used in the table above, the following terms have the meanings set forth below.

***Audit Fees***

Audit fees consist of aggregate fees billed for each of the last two fiscal years for professional services performed by the Company's principal accountant for the audit of the financial statements included in our Annual Reports on Form 10-Q and review of the financial statements included in our Quarterly Reports on Form 10-Q, reviews of registration statements and issuances of consents, and services that are normally provided in connection with statutory and regulatory filings or engagements.

***Audit-Related Fees***

Audit-related fees consist of aggregate fees billed for each of the last two fiscal years for assurance and related services performed by the Company's principal accountant that are reasonably related to the performance of the audit or review of our financial statements and are not reported under the paragraph captioned "Audit Fees" above. We did not engage our principal accountant to provide assurance or related services during the last two fiscal years.

***Tax Fees***

Tax fees consist of aggregate fees billed for each of the last two fiscal years for professional services performed by the Company's principal accountant with respect to tax compliance, tax advice, tax consulting and tax planning. We did not engage our principal accountant to provide tax compliance, tax advice or tax planning services during the last two fiscal years.

***All Other Fees***

All other fees consist of aggregate fees billed for each of the last two fiscal years for products and services provided by the Company's prior principal accountant, UHY LLP, for services other than those reported under the headings "*Audit Fees*," "*Audit-Related Fees*" and "*Tax Fees*" above. Such services included consent to reference prior period results as audited by their firm in our 2024 financial statements and a comfort letter for referencing our 2023 financial statements as audited by their firm for the Form 424B5 - Prospectus filed on May 23, 2024 for our ATM offering.

**Pre-Approval Policies and Procedures**

The Audit Committee has reviewed and approved all fees earned in 2024 and 2023 by the Company's principal accountant, and actively monitored the relationship between audit and non-audit services provided. The Audit Committee has concluded that the fees earned by the principal accountant were consistent with the maintenance of the principal accountant's independence in the conduct of its auditing functions.

The Company's principal accountant did not provide, and the Audit Committee did not approve, any services that would have been described under "*—Audit-Related Fees*", or "*—Tax Fees*" or "*—All Other Fees*" above for either of the last two fiscal years.

The Audit Committee annually considers the provision of audit services. The Audit Committee must pre-approve all services provided and fees earned by the Company's principal accountant. The Audit Committee has established pre-approval policies and procedures that are detailed as to the particular service, that require that the Audit committee be informed of each service, and that do not include delegation of the Audit Committee's responsibilities under the Exchange Act to management. The pre-approval policies and procedures provide only for defined audit services and, if any, specified audit-related fees, tax services, and other services, and may impose specific dollar value limits for the fees for pre-approved services. The Audit Committee also considers on a case-by-case basis specific engagements that are not otherwise pre-approved under the pre-approval policies and procedures or that materially exceed pre-approved fee amounts. On an interim basis, any proposed engagement that does not fit within the definition of a pre-approved service may be presented to a designated member of the Audit Committee for approval and to the full Audit Committee at its next regular meeting.

The percentage of hours expended on the Company's principal accountant's engagement to audit the Company's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees was not greater than 50%.

**PART IV**

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| | |
|:---|:---|
| **ITEM 15.** | **EXHIBIT AND FINANCIAL STATEMENT SCHEDULES.** |

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**(b) *Exhibits:***

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| | |
|:---|:---|
| **Exhibit**<br> **Number** | **Description** |
| 16.1 | [Letter from UHY, dated July 8, 2024. (incorporated by reference to Exhibit 10.1 to the Form 6-K filed on July 10, 2024)](https://www.sec.gov/Archives/edgar/data/1687542/000149315224026826/ex16-1.htm) |
| 16.2 | [Letter from Marcum, dated January 9, 2025. (incorporated by reference to Exhibit 10.1 to the Form 8-K filed on January 10, 2025)](https://www.sec.gov/Archives/edgar/data/1687542/000149315225001683/ex16-1.htm) |
| 31.3 | [Certification by Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](#cert_001) |
| 31.4 | [Certification by Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](#cert_002) |
| 101.INS | XBRL Instance Document. |
| 101.SCH | XBRL Taxonomy Extension Schema Document. |
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. |
| 101.LAB | XBRL Taxonomy Extension Label Linkbase Document. |
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. |

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**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

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| | | |
|:---|:---|:---|
| Date: June 26, 2025 | **FREIGHT TECHNOLOGIES, INC.** | **FREIGHT TECHNOLOGIES, INC.** |
|  |  | */s/ Javier Selgas* |
|  | Name: | Javier Selgas |
|  | Title: | Chief Executive Officer |
|  |  | *(Principal Executive Officer)* |
|  |  | */s/ Donald Quinby* |
|  | Name: | Donald Quinby |
|  | Title: | Chief Financial Officer |
|  |  | *(Principal Financial and Accounting Officer)* |

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**Exhibit 31.3**

**CERTIFICATIONS**

I, Javier Selgas, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I
 have reviewed this Amendment No. 1 to annual report on Form 10-K of Freight Technologies, Inc.; and

2. Based
 on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
 to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to
 the period covered by this report;

Date: June 26, 2025

---

| |
|:---|
| */s/ Javier Selgas* |
| Javier Selgas |
| Chief Executive Officer |
| (Principal Executive Officer) |

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**Exhibit 31.4**

**CERTIFICATIONS**

I, Donald Quinby, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I
 have reviewed this Amendment No. 1 to annual report on Form 10-K of Freight Technologies, Inc.; and

2. Based
 on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
 to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to
 the period covered by this report;

Date: June 26, 2025

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| |
|:---|
| */s/ Donald Quinby* |
| Donald Quinby |
| Chief Financial Officer |
| (Principal Financial and Accounting Officer) |

---