Full Year · Fiscal year 2026 · Published by Pham Hop
Singularity Future Technology's FY2026 net loss widened to $5.9M on a $3.8M class action settlement, as $1.69M of single-customer freight revenue was dwarfed by a $19.2M commodity prepayment and ~$38.8M of post-year-end share sales.
Revenue
$1.7M
-6.6% YoY
Net income
-$5.9M
Diluted EPS
$-12.96
Operating margin
-116.8%
This period vs a year ago
Same period last year
This period
Revenue▼-6.6%
≈$1.8M
$1.7M
Year-ago figures (≈) are worked out from the growth rate the company reported. Each row has its own scale.
Singularity Future Technology, a small freight-logistics company that used to be called Sino-Global Shipping America, lost $5.9 million in the fiscal year ended June 30, 2026, up from a $3.3 million loss a year earlier. The main reason is not the business itself: a $3.8 million charge to settle a securities class action lawsuit accounts for most of the increase. The logistics business, which is the company's only source of sales, brought in just $1.69 million of revenue (down 6.6%) and kept about 3 cents of every dollar as gross profit. The bigger story is on the balance sheet: the company ended the year with $57,275 in unrestricted cash, after sending $19.2 million as unsecured prepayments to agricultural-commodity suppliers paid in Djiboutian francs. It says that money was refunded in full in September 2026, and it raised about $38.8 million from new share sales after year-end.
At a glance
$1.69 million revenue, all from one customer — sales slipped 6.6% and a single customer accounted for 100% of them, so the whole operating business depends on one relationship.
$19.2 million sent to commodity suppliers, then returned — this one prepayment made up 86% of total assets on June 30 and is why operating cash outflow was $21.6 million against a $5.9 million loss.
About $38.8 million raised after year-end (gross) — four share sales in July–August 2026 issued more than three times as many shares as existed right after the July 1-for-14 reverse split, so existing holders' ownership was heavily diluted.
Fiscal 2026 results (year ended June 30)
Metric
FY2026
FY2025
YoY Change
Revenue
$1.69M
$1.81M
-6.6%
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Gross profit
$0.054M
$0.051M
+4.8%
Gross margin
3.2%
2.8%
+0.4 pts
Operating loss
-$1.98M
-$2.71M
loss narrowed 27.0%
Operating margin
-116.8%
-149.6%
+32.8 pts
Class action settlement expense
$3.80M
—
new
Net loss
-$5.91M
-$3.31M
loss widened 78.3%
Net loss attributable to the company's shareholders
-$5.88M
-$3.91M
loss widened 50.4%
Loss per share (basic and diluted)
-$12.96
-$14.78
loss per share narrowed 12.3%
Weighted average shares
453,842
264,770
+71.4%
Cash (unrestricted), June 30
$0.06M
$14.53M
-99.6%
Operating cash flow
-$21.63M
-$2.69M
outflow up $18.9M
Share counts and per-share figures reflect the 1-for-14 reverse stock split of July 27, 2026 (every 14 old shares became one), which the filing applies to both years. Operating margin is the operating loss divided by revenue — a negative 116.8% means the company spent more than twice its revenue running the business. Loss per share is based on the loss attributable to the company's own shareholders ($5.88 million), not the consolidated $5.91 million; the gap is the share owned by a minority partner in a Shanghai subsidiary. Loss per share narrowed only because the loss was spread over 71% more shares.
What drove the year
The logistics business shrank slightly but priced a little better. Revenue fell $0.12 million, which management attributes "almost entirely" to its China operating entities, "where shipping revenue fell by $0.1 million amid broader macroeconomic headwinds that suppressed overall freight transaction volume." Gross margin — revenue minus the direct cost of delivering the service (mostly fees paid to carriers), as a share of revenue — rose to 3.2% from 2.8%, which the filing credits to "modest pricing optimization" lifting revenue per shipment. On $1.69 million of sales that is $53,866 of gross profit for the full year, against $2.03 million of selling and administrative costs.
Overhead fell 27%. General and administrative expenses dropped $0.68 million to $1.84 million, which the company attributes to cost cuts after "the wind-down of our U.S. operating footprint." Selling expenses fell 20.7% to $0.19 million, tracking lower freight volume. That is why the operating loss narrowed to $1.98 million from $2.71 million.
Below the operating line, it got worse. Three items pushed the net loss up:
$3.8 million class action settlement. On June 22, 2026 the company agreed to settle a securities class action for $5.8 million in total, of which $2.0 million was already in escrow. The $3.8 million balance was booked as an expense and a liability at year-end. The company paid $1.0 million on July 10, $0.5 million on July 13 and $2.3 million on September 8, 2026. A court gave preliminary approval on September 10, 2026; the final hearing is set for January 25, 2027. The company admits no wrongdoing.
Interest expense doubled to $0.31 million as third-party loans rose to $3.8 million from $1.5 million, all at a 12% weighted average rate.
Interest income nearly vanished ($180 versus $135,176) because last year's bank time deposit was not renewed.
A $157,658 gain from selling the New Energy Tech subsidiary (for $2.7 million) and the absence of last year's $0.64 million in legal judgment costs from disputes with a former officer and a former director only partly offset these.
Takeaway: The operating business is too small to matter to the numbers — $54,000 of gross profit for the year from a single customer. Almost everything that moves this company's value happens outside it: legal settlements, a $19.2 million commodity prepayment that consumed nearly all its cash, and about $38.8 million of new stock sold after year-end. For a shareholder, the key figures this year were the share count and the cash balance, not revenue.
What the headline numbers hide
Where the cash went. Unrestricted cash fell from $14.53 million to $57,275. The filing ties this mainly to $19.2 million of advance payments to "third-party commodity trading suppliers in connection with purchase agreements for agricultural commodities," paid in Djiboutian francs (about DJF 3.4 billion). These advances were unsecured and paid no interest, and the filing lists currency, political, counterparty and legal-enforceability risks. The company then signed refund agreements with all of those suppliers and says it "collected total refunds of approximately $19.2 million" in September 2026. The auditor made this a critical audit matter (an area that took especially difficult judgment) and says it confirmed the balances with the suppliers and matched the refunds to bank statements. The company says it is "currently evaluating whether to pursue additional opportunities in the commodity trading business." So in practice the year's commodity activity was a large amount of cash sent out and returned without generating any reported revenue. The filing does not explain why the trades were unwound.
Cash flow versus the reported loss. Operating cash outflow was $21.6 million against a net loss of $5.9 million. Two items account for the gap: the $19.2 million prepayment (cash out, no expense) and the $3.8 million settlement accrual (expense, not yet paid in cash). By our arithmetic, leaving out the prepayment, operations used about $2.4 million — close to last year's $2.7 million — and $3.8 million of settlement cash was still to be paid after year-end.
Adjusting for one-offs. Without the $3.8 million settlement charge, the net loss would have been about $2.1 million, compared with $3.3 million a year earlier (which itself included $0.64 million of judgment costs). So the underlying trend improved, but it is still a loss larger than the company's annual revenue.
Going concern. The filing says the company's losses, operating cash burn and $57,275 of cash "raise substantial doubt about the Company's ability to continue as a going concern" — meaning a real risk it could not pay its bills over the next 12 months. Management then concludes the doubt has been "fully alleviated," citing the roughly $38.8 million of gross proceeds raised after year-end and the recovered supplier advances. The auditor's opinion (Audit Alliance LLP, Singapore) contains no separate going-concern paragraph. That conclusion relies on money raised after the balance-sheet date, not on the business producing cash.
Dilution. The reverse split on July 27, 2026 cut the share count from 12,556,650 to 896,904. In August 2026 the company then issued 2,299,212 post-split shares at $13.048 each (about $30 million, to the investors in a June 2025 private placement), plus 791,250 shares and 1,371,250 pre-funded warrants in two registered direct offerings at $3.00–$3.20 (about $6.8 million gross). A pre-funded warrant is paid for almost entirely upfront and can be turned into a share for $0.001, so it is effectively a share. The same June 2025 investors' warrants are being amended to a $0.001 exercise price, subject to shareholder approval. In total, about 4.46 million new shares or near-shares were created against about 0.9 million right after the split. The filing also describes the $30 million August sale in two different ways: 21,520,803 shares at $1.394 in one place, and 2,299,212 post-split shares at $13.048 in another. Both come to about $30 million, but the inconsistency is worth noting in a filing that has needed restatements before.
Customer concentration. One customer provided 100% of revenue in FY2026 (94.4% in FY2025) and 100% of accounts receivable, which more than doubled to $0.93 million while revenue fell. The auditor sent this customer a request to confirm the revenue and "no response was received"; it tested cash receipts and delivery documents instead.
Related parties and legacy liabilities. The company owes $1.15 million to Zhejiang Jinbang Fuel Energy, which is 30% owned by Qinggang Wang, the CEO of its Shanghai subsidiary — up from $0.50 million a year ago. It also has $1.56 million of earlier advances to two companies partly owned by Mr. Wang, which have been fully written off. Taxes payable stand at $3.43 million, most of it unpaid corporate income tax ($2.27 million), a large amount for a company with $1.7 million of revenue.
Regulatory history. The company restated its fiscal 2021 financial statements and settled with the SEC in January 2025. It paid a $350,000 penalty and agreed to fix weaknesses in its internal financial controls by June 30, 2026. Management now says its internal control over financial reporting is effective and that the weaknesses found as of June 30, 2024 were fixed by September 5, 2025. Because the company is not required to have an auditor attestation on internal controls, that conclusion is management's own, not the auditor's. Separately, Nasdaq warned the company in November 2025 that its share price had fallen below the $1 minimum. It regained compliance on August 10, 2026, after the reverse split.
What comes next
Management describes a strategy that reaches well beyond freight: it says it is evaluating further commodity trading, has not yet earned any revenue from a planned solar-panel business, and in August 2026 signed a non-binding framework agreement with Florence Development LLC to evaluate a possible AI computing and data-center project on an approximately 900-acre site in Florence, South Carolina. The filing stresses that this agreement "does not obligate" either party to go ahead. The company gives no revenue or earnings guidance.
Our read: the next few quarters depend on what the company does with the roughly $38.8 million it raised and the $19.2 million it recovered — sums many times larger than its annual revenue and its year-end equity of $7.6 million. It has 10 full-time employees and one customer, and its growth plans are announcements rather than operating businesses. Things to watch in the September-quarter 10-Q: how much cash is on the balance sheet after the settlement payments; whether any new commodity prepayments or other large advances appear; whether shareholders approve the $0.001 warrant repricing; and whether the class action settlement gets final approval on January 25, 2027.