Freight Technologies Advances Transformation to Accelerate Innovation, Reduce Costs, and Drive Growth

-Company announces workforce reduction to create operational efficiencies and align resources

HOUSTON – February 7, 2025 – Freight Technologies, Inc. (Nasdaq: FRGT) (“Fr8Tech” or “Freight Technologies” or the “Company”), a logistics management innovation company, offering a diverse portfolio of technology-driven solutions that address distinct challenges within the supply chain ecosystem, today announced significant updates in its strategic evolution as a technology-centric enterprise.

Fr8Tech continues to advance its transformational focus on technological innovation to enhance and expand current operations with its valued customers, as it builds upon the commercialization of its Transportation Management System (TMS) software, scheduled to formally launch later this month. Fr8Tech’s TMS serves as an in-house digital command center for logistics teams, enabling them to oversee and optimize the movement of goods with enhanced precision. It allows companies to track shipments in real-time, select the most suitable carriers, administer delivery routes, communicate with drivers, manage documentation, and integrate with both inventory and billing systems. By automating these processes and delivering actionable insights, our TMS can significantly reduce costs and risks, improve decision-making and operational efficiency, and elevate overall supply chain management performance.

“Our commitment to evolving into a leading technology company is evident with the launch of our game-changing TMS,” said Javier Selgas, CEO of Freight Technologies. “By embracing automation and reducing manual processes, we are not only enhancing our service offerings but also paving the way toward sustainable profitability. This transformation allows us to better serve our customers and deliver increased value to our shareholders.”

As part of this transformation, the Company has conducted a comprehensive, organization-wide analysis to determine the appropriate team size and structure. Following this review, the Company has completed a headcount restructuring process aimed at streamlining operations and reducing costs. This includes a 20% reduction in workforce across the Company to create operational efficiencies and align resources to support our technology-driven objectives. CFO Don Quinby noted, “Workforce reductions are always difficult and never a decision we make lightly. We are making every effort to treat our departing colleagues with respect and gratitude for their contributions and support them in their transition. These measures are expected to strengthen Fr8Tech’s financial results over 2025 and better position the Company to reach profitability on an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) basis by the end of the year.”

Other recent developments further underscore Fr8Tech’s dedication to this strategic direction. Earlier this year, the Company successfully completed a $3 million private placement offering of convertible preferred stock, bolstering its financial position to support ongoing software development. Additionally, Fr8Tech has renewed a multi-year logistics services agreement with Kimberly-Clark de México and other large enterprise customers, reflecting continued expansion and adoption of our innovative and cost-effective solutions.