20-F/A: Freight Technologies Files Amended Annual Report to Include Auditor Consent

Freight Technologies, Inc. has filed an amendment to its annual report to include the consent of its independent auditor, UHY LLP, which was inadvertently omitted from the original filing.

Summary

• Freight Technologies, Inc. filed an amendment to its annual report on Form 20-F for the fiscal year ended December 31, 2023.
• The amendment was made solely to include the consent of the company's independent auditor, UHY LLP, which was missing from the original filing.
• No other changes were made to the original filing, and the amendment does not reflect events occurring after the original filing date.
• The company's outstanding ordinary shares as of December 31, 2023, were 21,919,240, which is equivalent to 2,191,924 shares after a 10:1 reverse stock split on February 5, 2024, and 87,677 shares after a 25:1 reverse stock split on September 25, 2024.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the need for an amendment and the mention of the company's ability to continue as a going concern. The reverse stock splits also raise concerns.

Positives

• The company has taken steps to rectify an omission in its original filing by including the auditor's consent.
• The company has provided certifications from key officers, ensuring compliance with regulatory requirements.

Negatives

• The need for an amendment indicates a potential oversight in the initial filing process.

Risks

• The company's auditor's report contains an explanatory paragraph regarding the company's ability to continue as a going concern, which could raise concerns about its financial stability.
• The company has undergone two reverse stock splits in 2024, which may indicate financial difficulties or an attempt to maintain listing requirements.

Future Outlook

The amendment does not provide any forward-looking statements or guidance.

Management Comments

• Javier Selgas, Chief Executive Officer, and Donald Quinby, Chief Financial Officer, have certified the accuracy and compliance of the report.
• The management has confirmed that the report fairly presents the financial condition and results of operations of the company.

Industry Context

This filing is a standard regulatory requirement for publicly traded companies and the amendment is a correction of an oversight. The reverse stock splits may indicate financial challenges, which is not uncommon in the current economic climate.

Comparison to Industry Standards

• The filing of an amended annual report to include a missing auditor consent is not a typical event and suggests a lapse in internal controls.
• The two reverse stock splits in a single year are unusual and may indicate significant financial distress compared to industry norms.
• Many companies in the technology sector have faced challenges in the current economic climate, but the need for two reverse stock splits is not a common occurrence.

Stakeholder Impact

• Shareholders may be concerned about the need for an amendment and the going concern note in the auditor's report.
• The reverse stock splits may negatively impact shareholder value.

Key Dates

Keywords

Annual Report, Form 20-F, Amendment, Auditor Consent, UHY LLP, Reverse Stock Split, Financial Reporting, Sarbanes-Oxley Act