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SEC filingQ1 revenue grew 20% to $2.4M from SMCB acquisition adding freight and servicing costs, driving gross losses of -$677K while operating losses widened to -$4.3M on SemiCab investments, though net loss narrowed 45% to -$5.1M versus prior year.
Gross profit flipped to a $677 thousand loss from a $500 thousand profit last year, yielding a -28.2% margin. The shift stems directly from elevated cost of sales linked to SMCB's freight, handling, and servicing expenses, which outpaced the added revenue in this ramp-up phase. SemiCab's AI capabilities—proven to boost transportation capacity, asset utilization, cut empty miles, and lower logistics costs—position us to optimize these operations over time, addressing industry challenges like driver shortages and congestion without proportional asset additions.
Operating income deteriorated 54.6% to a -$4.3 million loss from -$2.8 million, with operating margin at -181.0%. This widening reflects ongoing investments in SemiCab's growth, including internal software capitalization and advances under our loan agreement with SMCB. These expenditures fund AI-driven truck utilization improvements, which enhance capacity without more trucks, drivers, or miles—key differentiators attracting broader enterprise interest.
Net loss improved 45.1% to -$5.1 million from -$9.3 million, lifting diluted EPS to -$0.52 from -$4.66. The favorable variance arises from year-ago non-cash charges absent this period, amid sustained SemiCab focus. Management expects non-controlling interest losses to rise with continued platform development.
Capital expenditures totaled just $14 thousand, underscoring measured investing as we prioritize operational scaling. Since inception, funding has relied on operational cash, equity sales, and debt—used for all historical costs. This approach sustains SemiCab expansion while managing liquidity amid growth execution.
Substantial sales growth is projected from India momentum and U.S./Europe entry, powered by SemiCab's AI efficiencies. However, near-term loss expansion is anticipated with SemiCab investments, emphasizing execution on network visibility and cost reductions to drive sustainable profitability.