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.

• 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 about 100 trucks and 125 independent contractor drivers as of October 2024.

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

• Expanding domestically and internationally, with recent entries into Florida, Maryland, Mexico, and plans for Canada, UK, and Australia.

Financial performance and metrics

• 2023 revenue: $18.0M (down 16% from 2022); net income: $542K (down 68% from 2022).

• Six months ended June 30, 2024: revenue $8.4M (down 14% YoY); net income $255K (down 22% YoY).

• Gross profit margin decreased from 23% in 2022 to 15% in 2023, and from 20% to 16% for the first half of 2024.

• Cash as of June 30, 2024: $1.02M; total assets: $4.98M; total liabilities: $2.36M; shareholders' equity: $2.62M.

• Key performance indicator: Number of Loads Completed (NLC) declined 11.4% in 2023 and 9% in the first half of 2024.

Use of proceeds and capital allocation

• Net proceeds of ~$8.4M (or ~$9.8M with full over-allotment) expected at $4.00/share IPO price.

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