Toppoint (TOPP) Registration Filing summary

Company overview and business model

• Provides truckload services focused on the recycling export supply chain, with a leading market share in waste paper export drayage in New Jersey and Pennsylvania ports.

• Diversifies offerings to include scrap metal, wood products, import deliveries, and logistics brokerage for plastics and other commodities.

• Operates a scalable brokerage model supporting owner-operators, with a fleet of 86 trucks and about 100 independent contractor drivers as of the prospectus date.

• Client base includes Fortune 500 waste companies and over 280 recycling centers and commodity traders, serving nearly 2,300 locations.

• Expanded into Florida, Maryland, and Mexico in 2023–2024, with plans for further international growth.

Financial performance and metrics

• 2023 revenue was $18.0M, down 16% from $21.5M in 2022, mainly due to a decline in waste paper export volumes.

• Net income for 2023 was $542K, a 68% decrease from $1.69M in 2022; nine months ended September 30, 2024 net income was $228K, down 52% year-over-year.

• Gross profit margin decreased from 23% in 2022 to 15% in 2023, reflecting lower rates and inability to fully reduce driver payments.

• Cash as of September 30, 2024 was $1.23M; total assets $4.89M; total liabilities $2.29M; shareholders’ equity $2.59M.

• Revenue diversification: in 2023, waste paper accounted for $13.5M, import $2.8M, metal $1.1M, log $235K, plastic $152K.

Use of proceeds and capital allocation

• Expects net proceeds of $8.28M (or $9.66M if over-allotment is exercised) at $4.00/share IPO price.

• 60% for geographic expansion (organic and acquisitions), 20% for physical and IT infrastructure, 10% for sales/marketing, 10% for working capital and corporate purposes.

• Management has broad discretion over use of proceeds.