Toppoint (TOPP) Registration Filing summary

Company overview and business model

• Truckload services provider specializing in the recycling export supply chain, with a leading market share in waste paper export drayage in New Jersey and Pennsylvania ports.

• Diversified into scrap metal, wood products, import container delivery, and logistics brokerage for plastics and other commodities.

• Operates a scalable brokerage model supporting owner-operators, with a fleet of 86 trucks and approximately 100 independent contractor drivers.

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

• Expansion into Florida, Maryland, and Mexico, with plans for further international growth in Canada, the UK, and Australia.

Financial performance and metrics

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

• Nine months ended September 30, 2024: revenue $12.2M (down 15% YoY); net income $228K (down 52% YoY).

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

• Cash as of September 30, 2024: $1.2M; total assets: $4.9M; total liabilities: $2.3M; shareholders’ equity: $2.6M.

• Key performance indicator: Number of Loads Completed (NLC) declined 11% in 2023, with waste paper loads down 10% and metal loads up 55%.

Use of proceeds and capital allocation

• Net proceeds of ~$8.3M (or ~$9.7M with full over-allotment) expected 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.

• Management has broad discretion over use of proceeds.