UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


☒	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended December 31, ~~2017~~2022


☐	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File ~~Number~~ Number: 001-35392

RADIANT LOGISTICS, INC.

(Exact name of ~~Registrant~~registrant as ~~Specified~~specified in ~~Its Charter)~~its charter)

~~Delaware~~

~~04-3625550~~

~~(State or Other Jurisdiction of~~

~~Incorporation or Organization)~~

~~(IRS Employer~~

~~Identification No.)~~

Delaware

~~405 114~~^th ~~Ave S.E., Bellevue, WA 98004~~

04-3625550

(State or other jurisdiction

of incorporation or organization)

(I.R.S. Employer

Identification No.)


Triton Tower Two 700 S Renton Village Place, Seventh Floor Renton, Washington98057
(Address of principal executive offices)	(Zip Code)

	~~(425) 943-4599~~	(425) 462-1094
	(Registrant’s telephone number, including area code)

	N/A
(Former name, former address, and former fiscal year, if changed since last report) Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 Par Value	RLGT	NYSE American

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the ~~past~~preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☒ No ☐

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files). Yes☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	☐	Accelerated filer		~~Accelerated filer~~	☒
Non-accelerated filer	☐		Smaller reporting company	☐
~~Non-accelerated filer~~		☐			~~Smaller reporting company~~	☐

Emerging growth company	☐	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were ~~49,341,907~~48,181,256 shares outstanding of the registrant’s common stock ~~par value $.001 per share,~~ as of ~~February 5, 2018.~~March 20, 2023.

RADIANT LOGISTICS, INC.

TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION
~~Item 1.~~	~~Condensed Consolidated Financial Statements - Unaudited~~
	Explanatory Note	3

Item 1.	Financial Statements (Unaudited)

	Condensed Consolidated Balance Sheets as of December 31, ~~2017~~2022 and June 30, ~~2017~~2022	34

	Condensed Consolidated Statements of ~~Operations and~~ Comprehensive Income for the ~~three~~Three and ~~six months ended~~Six Months Ended December 31, ~~2017~~2022 and ~~2016~~2021	45

	Condensed Consolidated ~~Statement~~Statements of ~~Stockholders’~~Changes in Equity for the ~~six months ended~~Three and Six Months Ended December 31, ~~2017~~2022 and 2021	56

	Condensed Consolidated Statements of Cash Flows for the ~~six months ended~~Six Months Ended December 31, ~~2017~~2022 and ~~2016~~2021	68

	Notes to Condensed Consolidated Financial Statements	89

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2432

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	3441
~~Item 4.~~	~~Controls and Procedures~~	34
Item 4.	Controls and Procedures	42

PART II. OTHER INFORMATION
~~Item 1.~~	~~Legal Proceedings~~	35
Item ~~1A.~~1.	~~Risk Factors~~Legal Proceedings	3542

Item 6.1A.	~~Exhibits~~Risk Factors	3643

Item 6.	Exhibits	44

Signatures		45

EXPLANATORY NOTE

As previously reported, Radiant Logistics, Inc., and its consolidated subsidiaries (the “Company”, “we” or “us”) were unable to timely file our Annual Report on Form 10-K for the fiscal year ended June 30, 2022 and our Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2022 as a result of the Audit and Executive Oversight Committee of the Board of Directors of the Company, after meeting with management and consultation with Moss Adams LLP, its current registered independent public accounting firm, and BDO USA, LLP, its predecessor registered independent public accounting firm, concluding that the Company’s previously issued financial statements for the fiscal year ended June 30, 2021 included in its Annual Report on Form 10-K, each of the interim financial statements for the quarterly periods in fiscal year 2021 included in its Quarterly Reports on Form 10-Q, and each of the interim financial statements for the quarterly periods in fiscal year 2022 included in its Quarterly Reports on Form 10-Q (cumulatively, the “Restatement Periods”) should be restated to correct historical errors related principally to the timing of recognition of the Company’s estimated accrual of in-transit revenues and related costs.

Please refer to the Explanatory Note to our Annual Report on Form 10-K for the fiscal year ended June 30, 2022, which was filed on February 27, 2023, for more information regarding the restatement. For a more detailed discussion of the correction of historical errors in the Restatement Periods, including for the three months and six months ended December 31, 2021, refer to Note 2 and 20 to the consolidated financial statements of the Company included in Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended June 30, 2022.

RADIANT ~~LOGISTICS,~~LOGISTICS, INC.

Condensed Consolidated Balance Sheets

~~(unaudited)~~


	December 31,			June 30,
(In thousands, except share and per share data)	2022			2022
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	62,020		$	24,442
Accounts receivable, net of allowance of $2,312 and $2,983, respectively		137,793			186,492
Contract assets		33,858			61,154
Prepaid expenses and other current assets		15,399			17,256
Total current assets		249,070			289,344

Property, technology, and equipment, net		23,663			24,823

Goodwill		88,924			88,199
Intangible assets, net		41,731			48,545
Operating lease right-of-use assets		59,569			41,111
Deposits and other assets		6,309			4,704
Long-term restricted cash		593			625
Total other long-term assets		197,126			183,184
Total assets	$	469,859		$	497,351

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	107,511		$	137,853
Operating partner commissions payable		20,298			18,731
Accrued expenses		9,053			11,349
Income tax payable		2,050			4,035
Current portion of notes payable		4,495			4,575
Current portion of operating lease liability		11,102			7,641
Current portion of finance lease liability		536			577
Current portion of contingent consideration		3,582			2,600
Other current liabilities		296			303
Total current liabilities		158,923			187,664

Notes payable, net of current portion		49,191			66,719
Operating lease liability, net of current portion		53,428			37,776
Finance lease liability, net of current portion		953			1,223
Contingent consideration, net of current portion		1,745			2,930
Deferred income taxes		4,328			6,482
Total long-term liabilities		109,645			115,130
Total liabilities		268,568			302,794

Commitments and contingencies (Note 15)

Equity:
Common stock, $0.001 par value, 100,000,000 shares authorized; 51,544,304 and 51,265,543 shares issued, and 48,179,832 and 48,740,935 shares outstanding, respectively		33			33
Additional paid-in capital		107,170			106,146
Treasury stock, at cost, 3,364,472 and 2,524,608 shares, respectively		(21,004	)		(16,004	)
Retained earnings		118,267			104,998
Accumulated other comprehensive loss		(3,373	)		(796	)
Total Radiant Logistics, Inc. stockholders’ equity		201,093			194,377
Non-controlling interest		198			180
Total equity		201,291			194,557
Total liabilities and equity	$	469,859		$	497,351

(In thousands, except share and per share data)

December 31,

June 30,

2017

2017

ASSETS

Current assets:

Cash and cash equivalents

$
4,476

$
5,808

Accounts receivable, net of allowance of $2,006 and $1,599, respectively

122,900

116,327

Employee and other receivables

215

251

Income tax deposit

1,677

432

Prepaid expenses and other current assets

6,354

6,902

Total current assets

135,622

129,720

Technology and equipment, net

16,131

15,227

Acquired intangibles, net

70,113

74,729

Goodwill

65,389

66,779

Deposits and other assets

3,218

3,085

Total long-term assets

138,720

144,593

Total assets

$
290,473

$
289,540

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable and accrued transportation costs

$
82,680

$
85,490

Commissions payable

11,202

10,843

Other accrued costs

4,646

4,778

Current portion of notes payable

3,527

3,382

Current portion of contingent consideration

2,400

4,130

Current portion of transition and lease termination liability

1,300

1,210

Other current liabilities

332

143

Total current liabilities

106,087

109,976

Notes payable, net of current portion

44,174

37,040

Contingent consideration, net of current portion

2,625

5,790

Transition and lease termination liability, net of current portion

402

804

Deferred rent liability

940

857

Deferred tax liability

7,538

10,826

Other long-term liabilities

884

782

Total long-term liabilities

56,563

56,099

Total liabilities

162,650

166,075

Stockholders' equity:

Preferred stock, $0.001 par value, 5,000,000 shares authorized; 839,200 shares issued and
outstanding, liquidation preference of $20,980

1

1

Common stock, $0.001 par value, 100,000,000 shares authorized; 49,375,185 and 49,177,215
shares issued, and 49,283,387 and 49,085,417 shares outstanding, respectively

31

30

Additional paid-in capital

117,445

116,172

Treasury stock, at cost, 91,798 shares

(253
)

(253
)
Retained earnings

11,043

7,397

Accumulated other comprehensive income (loss)

(530
)

65

Total Radiant Logistics, Inc. stockholders’ equity

127,737

123,412

Non-controlling interest

86

53

Total stockholders’ equity

127,823

123,465

Total liabilities and stockholders’ equity

$
290,473

$
289,540

The accompanying notes ~~form~~are an integral part of these condensed consolidated financial statements.

RADIANT LOGISTICS, INC.

Condensed Consolidated Statements of ~~Operations and~~ Comprehensive Income

(unaudited)

(In thousands, except share and per share data)

Three Months Ended December 31,

Six Months Ended December 31,

2017

2016

2017

2016

Revenues

$
206,714

$
198,881

$
404,691

$
394,014

Cost of transportation

158,846

148,757

310,675

294,881

Net revenues

47,868

50,124

94,016

99,133

Operating partner commissions

19,528

22,957

39,220

46,308

Personnel costs

14,909

12,954

28,902

25,732

Selling, general and administrative expenses

6,856

5,569

13,704

11,350

Depreciation and amortization

3,567

3,028

7,142

6,034

Transition and lease termination costs

—

385

107

862

Change in contingent consideration

190

806

(110
)

1,056

Total operating expenses

45,050

45,699

88,965

91,342

Income from operations

2,818

4,425

5,051

7,791

Other income (expense):

Interest income

9

6

16

11

Interest expense

(811
)

(620
)

(1,582
)

(1,259
)
Foreign exchange gain (loss)

(55
)

188

(139
)

388

Other

96

116

226

310

Total other expense:

(761
)

(310
)

(1,479
)

(550
)

Income before income tax provision

2,057

4,115

3,572

7,241

Income tax benefit (expense)

1,840

(1,489
)

1,214

(2,741
)

Net income

3,897

2,626

4,786

4,500

Less: Net income attributable to non-controlling interest

(56
)

(16
)

(117
)

(28
)

Net income attributable to Radiant Logistics, Inc.

3,841

2,610

4,669

4,472

Less: Preferred stock dividends

(511
)

(511
)

(1,023
)

(1,023
)

Net income attributable to common stockholders

$
3,330

$
2,099

$
3,646

$
3,449

Other comprehensive income (loss):

Foreign currency translation gain (loss)

210

317

(595
)

540

Comprehensive income

$
4,107

$
2,943

$
4,191

$
5,040

Net income per common share - basic and diluted

$
0.07

$
0.04

$
0.07

$
0.07

Weighted average shares outstanding:

Basic shares

49,174,789

48,789,684

49,130,167

48,825,598

Diluted shares

50,711,153

49,799,686

50,677,053

��
49,667,041


	Three Months Ended December 31,						Six Months Ended December 31,
(In thousands, except share and per share data)	2022			2021			2022			2021
				(as restated)						(as restated)
Revenues	$	278,119		$	335,778		$	609,090		$	635,176

Operating expenses:
Cost of transportation and other services		204,091			264,640			458,582			499,320
Operating partner commissions		30,512			31,169			60,617			58,730
Personnel costs		20,641			16,659			40,412			32,312
Selling, general and administrative expenses		8,637			8,352			17,407			15,139
Depreciation and amortization		6,914			4,447			13,693			8,702
Transition, lease termination, and other costs		30			—			30			—
Change in fair value of contingent consideration		150			455			310			455
Total operating expenses		270,975			325,722			591,051			614,658

Income from operations		7,144			10,056			18,039			20,518

Other expense:
Interest income		59			4			98			6
Interest expense		(742	)		(749	)		(1,563	)		(1,358	)
Foreign currency transaction gain		4			104			471			375
Change in fair value of interest rate swap contracts		(104	)		(378	)		587			(424	)
Other		24			91			29			108
Total other expense		(759	)		(928	)		(378	)		(1,293	)

Income before income taxes		6,385			9,128			17,661			19,225

Income tax expense		(1,460	)		(2,513	)		(4,224	)		(4,915	)

Net income		4,925			6,615			13,437			14,310
Less: net income attributable to non-controlling interest		(89	)		(76	)		(168	)		(162	)

Net income attributable to Radiant Logistics, Inc.	$	4,836		$	6,539		$	13,269		$	14,148

Other comprehensive income:
Foreign currency translation gain (loss)		901			117			(2,577	)		(922	)
Comprehensive income	$	5,826		$	6,732		$	10,860		$	13,388

Income per share:
Basic and diluted	$	0.10		$	0.13		$	0.27		$	0.28

Weighted average common shares outstanding:
Basic		48,243,204			49,657,547			48,494,260			49,789,304
Diluted		49,427,420			50,775,714			49,865,216			50,946,096

The accompanying notes ~~form~~are an integral part of these condensed consolidated financial statements.

RADIANT LOGISTICS, INC.

Condensed Consolidated ~~Statement~~Statements of ~~Stockholders’~~Changes in Equity

~~(unaudited)~~Three and Six Months Ended December 31, 2022

RADIANT LOGISTICS, INC. STOCKHOLDERS' EQUITY

(In thousands, except share data)
Preferred Stock

Common Stock

Additional
Paid-in

Treasury

Retained

Accumulated
Other
Comprehensive

Non-
Controlling

Total
Stockholders’

Shares

Amount

Shares

Amount

Capital

Stock

Earnings

Income (Loss)

Interest

Equity

Balance as of June 30, 2017

839,200

$
1

49,085,417

$
30

$
116,172

$
(253
)

$
7,397

$
65

$
53

$
123,465

Issuance of common stock to former
shareholders of acquired operations

—

—

133,082

1

672

—

—

—

—

673

Share-based compensation

—

—

—

—

730

—

—

—

—

730

Cashless exercise of stock options

—

—

64,888

—

(129
)

—

—

—

—

(129
)
Preferred dividends paid

—

—

—

—

—

—

(1,023
)

—

—

(1,023
)
Distribution to non-controlling interest

—

—

—

—

—

—

—

—

(84
)

(84
)
Net income

—

—

—

—

—

—

4,669

—

117

4,786

Comprehensive loss

—

—

—

—

—

—

—

(595
)

—

(595
)
Balance as of December 31, 2017

839,200

$
1

49,283,387

$
31

$
117,445

$
(253
)

$
11,043

$
(530
)

$
86

$
127,823

(unaudited)


	RADIANT LOGISTICS, INC. STOCKHOLDERS' EQUITY
	Common Stock					Additional Paid-in			Treasury			Retained		Accumulated Other Comprehensive			Total Radiant Logistics, Inc. Stockholders'			Non- Controlling			Total
(In thousands, except share and per share data)	Shares			Amount		Capital			Stock			Earnings		Income (Loss)			Equity			Interest			Equity
Balance as of June 30, 2022		48,740,935		$	33	$	106,146		$	(16,004	)	$	104,998	$	(796	)	$	194,377		$	180		$	194,557
Repurchase of common stock		(219,517	)		—		—			(1,340	)		—		—			(1,340	)		—			(1,340	)
Issuance of common stock upon vesting of restricted stock awards, net of taxes withheld and paid		152,881			—		(442	)		—			—		—			(442	)		—			(442	)
Issuance of common stock upon exercise of stock options, net of taxes withheld and paid		411			—		1			—			—		—			1			—			1
Distribution to non-controlling interest		—			—		—			—			—		—			—			(75	)		(75	)
Share-based compensation		—			—		609			—			—		—			609			—			609
Net income		—			—		—			—			8,433		—			8,433			79			8,512
Other comprehensive loss		—			—		—			—			—		(3,478	)		(3,478	)		—			(3,478	)
Balance as of September 30, 2022		48,674,710		$	33	$	106,314		$	(17,344	)	$	113,431	$	(4,274	)	$	198,160		$	184		$	198,344

Repurchase of common stock		(620,347	)		—		—			(3,660	)		—		—			(3,660	)		—			(3,660	)
Issuance of common stock upon vesting of restricted stock awards, net of taxes withheld and paid		24,606			—		(15	)		—			—		—			(15	)		—			(15	)
Issuance of common stock upon exercise of stock options, net of taxes withheld and paid		100,863			—		192			—			—		—			192			—			192
Distribution to non-controlling interest		—			—		—			—			—		—			—			(75	)		(75	)
Share-based compensation		—			—		679			—			—		—			679			—			679
Net income		—			—		—			—			4,836		—			4,836			89			4,925
Other comprehensive income		—			—		—			—			—		901			901			—			901
Balance as of December 31, 2022		48,179,832		$	33	$	107,170		$	(21,004	)	$	118,267	$	(3,373	)	$	201,093		$	198		$	201,291

The accompanying notes ~~form~~are an integral part of these condensed consolidated financial statements.

RADIANT LOGISTICS, INC.

Condensed Consolidated Statements of ~~Cash Flows~~Changes in Equity (continued)

~~(unaudited)~~Three and Six Months Ended December 31, 2021

(In thousands)

Six Months Ended December 31,

2017

2016

CASH FLOWS PROVIDED BY OPERATING ACTIVITIES

Net income

$
4,786

$
4,500

ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES

share-based compensation expense

730

660

amortization of intangibles

4,937

4,157

depreciation and leasehold amortization

2,205

1,877

deferred income tax benefit

(3,288
)

(658
)
amortization of loan fees

123

159

change in contingent consideration

(110
)

1,056

transition and lease termination costs

107

44

loss (gain) on disposal of technology and equipment

(19
)

4

change in (recovery of) provision for doubtful accounts

407

(17
)
CHANGE IN OPERATING ASSETS AND LIABILITIES:

accounts receivable

(3,243
)

(12,586
)
employee and other receivables

35

297

income tax deposit

(1,212
)

939

prepaid expenses, deposits and other assets

368

2,912

accounts payable and accrued transportation costs

(4,458
)

6,592

commissions payable

359

4,944

other accrued costs

(460
)

(1,248
)
other liabilities

452

2

deferred rent liability

89

57

payment of contingent consideration

(1,474
)

(425
)
transition and lease termination liability

(264
)

(530
)
Net cash provided by operating activities

70

12,736

CASH FLOWS USED FOR INVESTING ACTIVITIES:

Acquisitions during the fiscal year

(1,161
)

(50
)
Purchases of technology and equipment

(3,061
)

(2,184
)
Proceeds from sale of technology and equipment

68

52

Payments to former shareholders of acquired operations

—

(50
)
Net cash used for investing activities

(4,154
)

(2,232
)

CASH FLOWS PROVIDED BY (USED FOR) FINANCING ACTIVITIES:

Proceeds from (repayments to) credit facility, net

8,119

(979
)
Payments of loan fees

(88
)

—

Repayments of notes payable

(1,706
)

(1,166
)
Purchases of treasury stock

—

(253
)
Payments of contingent consideration

(413
)

(3,446
)
Payments of preferred stock dividends

(1,023
)

(1,023
)
Distribution to non-controlling interest

(84
)

(42
)
Payments of employee tax withholdings related to cashless stock option exercises

(129
)

(51
)
Net cash provided by (used for) financing activities

4,676

(6,960
)

Effect of exchange rate changes on cash and cash equivalents

(1,924
)

(49
)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

(1,332
)

3,495

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

5,808

4,768

CASH AND CASH EQUIVALENTS, END OF PERIOD

$
4,476

$
8,263

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Income taxes paid

$
3,283

$
2,503

Interest paid

$
1,444

$
1,112

(unaudited)

~~(continued)~~


	RADIANT LOGISTICS, INC. STOCKHOLDERS' EQUITY
	Common Stock					Additional Paid-in			Treasury			Retained		Accumulated Other Comprehensive			Total Radiant Logistics, Inc. Stockholders'			Non- Controlling			Total
(In thousands, except share and per share data)	Shares			Amount		Capital			Stock			Earnings		Income (Loss)			Equity			Interest			Equity
												(as restated)					(as restated)						(as restated)
Balance as of June 30, 2021		49,930,389		$	32	$	104,228		$	(4,658	)	$	60,534	$	1,141		$	161,277		$	293		$	161,570
Repurchase of common stock		(254,894	)		—		—			(1,675	)		—		—			(1,675	)		—			(1,675	)
Issuance of common stock upon vesting of restricted stock awards, net of taxes withheld and paid		115,616			—		(342	)		—			—		—			(342	)		—			(342	)
Issuance of common stock upon exercise of stock options, net of taxes withheld and paid		21,553			—		124			—			—		—			124			—			124
Share-based compensation		—			—		350			—			—		—			350			—			350
Net income		—			—		—			—			7,609		—			7,609			86			7,695
Other comprehensive loss		—			—		—			—			—		(1,039	)		(1,039	)		—			(1,039	)
Balance as of September 30, 2021		49,812,664		$	32	$	104,360		$	(6,333	)	$	68,143	$	102		$	166,304		$	379		$	166,683

Issuance of common stock to shareholders of acquired business		40,000			—		244			—			—		—			244			—			244
Repurchase of common stock		(615,839	)		—		—			(4,581	)		—		—			(4,581	)		—			(4,581	)
Issuance of common stock upon vesting of restricted stock awards, net of taxes withheld and paid		43,326			1		(50	)		—			—		—			(49	)		—			(49	)
Issuance of common stock upon exercise of stock options, net of taxes withheld and paid		118,831			—		280			—			—		—			280			—			280
Distribution to non-controlling interest		—			—		—			—			—		—			—			(150	)		(150	)
Share-based compensation		—			—		422			—			—		—			422			—			422
Net income		—			—		—			—			6,539		—			6,539			76			6,615
Other comprehensive income		—			—		—			—			—		117			117			—			117
Balance as of December 31, 2021		49,398,982		$	33	$	105,256		$	(10,914	)	$	74,682	$	219		$	169,276		$	305		$	169,581

The accompanying notes ~~form~~are an integral part of these condensed consolidated financial statements.

RADIANT LOGISTICS, INC.

Condensed Consolidated Statements of Cash Flows ~~(continued)~~

(unaudited)

~~Supplemental disclosure of non-cash investing and financing activities:~~


	Six Months Ended December 31,
(In thousands)	2022			2021
				(as restated)
OPERATING ACTIVITIES:
Net income	$	13,437		$	14,310
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
Share-based compensation		1,288			772
Amortization of intangible assets		10,009			5,126
Depreciation and amortization of property, technology, and equipment		3,684			3,576
Deferred income tax benefit		(1,666	)		(534	)
Amortization of debt issuance costs		250			253
Change in fair value of contingent consideration		310			455
Other		(213	)		233
CHANGES IN OPERATING ASSETS AND LIABILITIES:
Accounts receivable		47,643			(25,282	)
Contract assets		27,207			(60,416	)
Income tax receivable/payable		(2,034	)		(3,381	)
Prepaid expenses, deposits, and other assets		752			(17,812	)
Operating lease right-of-use assets		4,709			4,192
Accounts payable		(31,041	)		57,860
Operating partner commissions payable		1,567			4,832
Accrued expenses and other liabilities		(2,436	)		1,481
Operating lease liability		(5,420	)		(3,940	)
Payment of contingent consideration		(2,500	)		(1,377	)
Net cash provided by (used for) operating activities		65,546			(19,652	)

INVESTING ACTIVITIES:
Acquisitions, net of cash acquired		(3,250	)		(34,548	)
Purchases of property, technology, and equipment		(3,442	)		(4,487	)
Proceeds from sale of property, technology, and equipment		31			158
Net cash used for investing activities		(6,661	)		(38,877	)

FINANCING ACTIVITIES:
Proceeds from revolving credit facility		67,500			80,119
Repayments of revolving credit facility		(82,500	)		(9,619	)
Payments of debt issuance costs		(820	)		—
Repayments of notes payable and finance lease liability		(2,476	)		(2,528	)
Proceeds from sale of common stock		—			244
Repurchases of common stock		(5,000	)		(6,256	)
Payments of contingent consideration		—			(1,123	)
Distributions to non-controlling interest		(150	)		(150	)
Proceeds from exercise of stock options		193			407
Payments of employee tax withholdings related to restricted stock awards and stock options		(457	)		(395	)
Net cash (used for) provided by financing activities		(23,710	)		60,699

Effect of exchange rate changes on cash, cash equivalents, and restricted cash		2,371			1,316

NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH		37,546			3,486
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD		25,067			14,344

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	$	62,613		$	17,830

RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Cash and cash equivalents	$	62,020		$	17,195
Long-term restricted cash		593			635
Total cash, cash equivalents, and restricted cash, end of period	$	62,613		$	17,830

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Income taxes paid	$	8,388		$	9,100
Interest paid	$	1,157		$	1,008

In September 2017, the Company issued 10,019 shares of common stock at a fair value of $4.99 per share in satisfaction of $50 of the Sandifer-Valley Transportation & Logistics, Ltd. purchase price, resulting in an increase to common stock and additional paid-in capital of $50.

In November 2017, the Company issued 123,063 shares of common stock at a fair value of $5.06 per share in satisfaction of $623 of various earn-out payments for the period ended June 30, 2017, resulting in a decrease to the current portion of contingent consideration, an increase to common stock of $1 and an increase to additional paid-in capital of $622.

The accompanying notes ~~form~~are an integral part of these condensed consolidated financial statements.

RADIANT LOGISTICS, INC.

Notes to the Condensed Consolidated Financial Statements

(unaudited)

(~~All amounts~~Dollars in ~~these footnotes other than~~thousands, except share ~~amounts~~ and per share ~~amounts are in thousands)~~data)

NOTE 1 – THE COMPANY AND BASIS OF PRESENTATION

The Company

Radiant Logistics, Inc., and its consolidated subsidiaries (the “Company”, “we” or “us”) operates as a third-party logistics company, providing ~~multi-modal~~technology-enabled global transportation and value-added logistics ~~services~~solutions primarily ~~to customers based~~ in the United States and Canada. ~~The Company services~~We service a large and diversified account base across a range of industries and geographies, which ~~it supports~~we support from an extensive ~~multi-brand~~ network of ~~over 100~~ operating locations ~~(including 20 Company-owned offices)~~ across North America as well as an integrated international service partner network located in other key markets around the globe. We provide these services through a multi-brand network, which includes over 100 operating locations. Included in these operating locations are a number of independent agents, who we also refer to as our “strategic operating partners”, that operate exclusively on our behalf, and approximately 25 Company-owned offices. As a third-party logistics company, ~~the Company has~~we have a vast carrier network of ~~approximately 10,000~~ asset-based transportation companies, including motor carriers, railroads, airlines and ocean lines. The Company believes shippers value its services because it is able to objectively arrange the most efficient and cost-effective means, type and provider of transportation service since it is not influenced by the ownership of transportation assets. In addition, the Company’s minimal investmentlines in ~~physical assets affords it the opportunity for a higher return on invested capital and net cash flows than the Company’s asset-based competitors.~~our carrier network.

Through its operating locations across North America, the Company offers domestic, and international air and ocean freight forwarding services and freight brokerage services, including truckload services, less than truckload services, and intermodal services, which is the movement of freight in trailers or containers by combination of truck and rail. The Company’s primary ~~business operations~~transportation services involve arranging ~~the~~ shipment, on behalf of its customers, of materials, products, equipment, and other goods that are generally larger than shipments handled by integrated carriers of primarily small parcels, such as FedEx, DHL, and UPS, including arranging and monitoring all aspects of material flow activity utilizing advanced information technology systems. ~~The Company~~We also ~~provides~~provide other value-added logistics services including ~~customs brokerage, order fulfillment, inventory~~materials management and ~~warehousing~~distribution services (collectively, “materials management and distribution” or “MM&D” services), and customs house brokerage (“CHB”) services to complement ~~its~~our core transportation service offering.

~~The Company expects to grow its business organically and by completing acquisitions~~Basis of other companies with complementary geographical and logistics service offerings. The Company’s organic growth strategy will continue to focus on strengthening existing and expanding new customer relationships leveraging the benefit of the Company’s truck brokerage and intermodal service offerings, while continuing its efforts on the organic build-out of the Company’s network of strategic operating partner locations. In addition, as the Company continues to grow and scale its business, the Company believes that it is creating density in its trade lanes which creates opportunities for the Company to more efficiently source and manage its transportation capacity.Presentation

In addition to its focus on organic growth, the Company will continue to search for acquisition candidates that bring critical mass from a geographic and purchasing power standpoint, along with providing complementary service offerings to the current platform. As the Company continues to grow and scale its business, it also remains focused on leveraging its back-office infrastructure and technology systems to drive productivity improvement across the organization.

~~Interim Disclosure~~

The condensed consolidated financial statements included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The Company’s management believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, ~~2017.~~2022.

The interim period information included in this Quarterly Report on Form 10-Q reflects all adjustments, consisting of normal recurring adjustments, that are, in the opinion of the Company’s management, necessary for a fair statement of the results of the respective interim periods. Results of operations for interim periods are not necessarily indicative of results to be expected for an entire year.

~~Basis~~Correction of ~~Presentation~~Previously Reported Interim Condensed Consolidated Quarterly Financial Statement

The ~~condensed~~interim consolidated financial statements include corrections to the ~~accounts of~~three and six months ended December 31, 2021, which were presented in Note 20 to the Company and its wholly-owned subsidiaries as well as a single variable interest entity, Radiant Logistics Partners, LLC (“RLP”), which is 40% owned by Radiant Global Logistics, Inc. (“RGL”), and 60% owned by Radiant Capital Partners, LLC (“RCP”, see Note 8), an affiliate of Bohn H. Crain, the Company’s Chief Executive Officer, whose accounts are included in the condensed consolidated financial statements. All significant intercompany balances and transactions have been eliminated. All amounts in the condensedaudited consolidated financial statements ~~are stated~~and notes thereto for the fiscal year ended June 30, 2022, in ~~thousands, except share~~the Company’s fiscal year 2022 Form 10-K filed on February 27, 2023. This revision corrected differences between the estimated accrual amounts and the actual revenues and expenses recorded due primarily to errors in the underlying shipment information used to calculate the original estimates of the accrued amounts. The revision resulted in a decrease to net income attributable to Radiant Logistics, Inc. by $409 and a decrease to basic and diluted earnings per share ~~amounts.~~by $0.01 from amounts previously reported for the three months ended December 31, 2021, and an increase to net income attributable to Radiant Logistics, Inc. by $121 and no change to basic and diluted earnings per share for the six months period ended December 31, 2021. Previously reported net cash used for operating activities, net cash used for investing activities, and net cash provided by financing activities for the three and six months ended December 31, 2021 were not impacted.

The restated consolidated balance sheet line items as of December 31, 2021 are as follows:


	Originally Reported		Adjustment		Restated
(In thousands)	Q2		Q2		Q2
Contract assets	$	73,268	$	33,579	$	106,847
Total current assets		284,767		33,579		318,346
Total assets		490,575		33,579		524,154
Accounts payable		136,309		32,675		168,984
Operating partner commissions payable		19,395		502		19,897
Accrued expenses		10,588		20		10,608
Income tax payable		1,411		94		1,505
Total current liabilities		184,013		33,291		217,304
Total liabilities		321,282		33,291		354,573
Retained earnings		74,394		288		74,682
Total equity		169,293		288		169,581

The restated line items of the consolidated statements for comprehensive income for the three months ended December 31, 2021 are as follows:


	Originally Reported			Adjustment			Restated
(In thousands, except per share data)	Q2			Q2			Q2
Revenues	$	332,768		$	3,010		$	335,778
Cost of transportation and other services		261,179			3,461			264,640
Operating partner commissions		31,049			120			31,169
Personnel costs		16,688			(29	)		16,659
Income from operations		10,598			(542	)		10,056
Income tax expense		(2,646	)		133			(2,513	)
Net income		7,024			(409	)		6,615
Net income attributable to Radiant Logistics, Inc.		6,948			(409	)		6,539

Income per share:
Basic	$	0.14		$	(0.01	)	$	0.13
Diluted	$	0.14		$	(0.01	)	$	0.13

The restated line items of the consolidated statements of comprehensive income for the six months ended December 31, 2021 are as follows:


	Originally Reported			Adjustment			Restated
	Six Months Ended			Six Months Ended			Six Months Ended
(In thousands, except per share data)	December 31, 2021			December 31, 2021			December 31, 2021
Revenues	$	618,884		$	16,292		$	635,176
Cost of transportation and other services		482,411			16,909			499,320
Operating partner commissions		59,514			(784	)		58,730
Personnel costs		32,304			8			32,312
Income from operations		20,355			163			20,518
Income tax expense		(4,874	)		(41	)		(4,915	)
Net Income		14,189			121			14,310
Net income attributable to Radiant Logistics, Inc.		14,027			121			14,148

Income per share:
Basic	$	0.28		$	—		$	0.28
Diluted	$	0.28		$	—		$	0.28

The restated line items of the consolidated cash flow statements for the six months ended December 31, 2021 are as follows:


	Originally Reported			Adjustment			Restated
(In thousands)	Six Months Ended December 31, 2021			Six Months Ended December 31, 2021			Six Months Ended December 31, 2021
OPERATING ACTIVITIES:
Net income	$	14,189		$	121		$	14,310
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH (USED FOR) OPERATING ACTIVITIES
CHANGES IN OPERATING ASSETS AND LIABILITIES:
Contract assets		(44,123	)		(16,293	)		(60,416	)
Income tax receivable/payable		(3,421	)		40			(3,381	)
Accounts payable		40,952			16,908			57,860
Operating partner commissions payable		5,616			(784	)		4,832
Accrued expenses, other liabilities, and operating lease liability		(2,467	)		8			(2,459	)
Net cash (used for) operating activities		(19,652	)		—			(19,652	)

NOTE 2 – RECENT ACCOUNTING GUIDANCE

Recent Accounting Guidance Not Yet Adopted

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance: ASU 2018-19, 2019-04, 2019-05, 2020-03, and 2022-02 (collectively, Topic 326). Topic 326 requires measurement and recognition of expected credit losses for financial assets held. Topic 326 is effective for the Company in the first quarter of fiscal year 2024. The Company is currently evaluating the impact of the standard on its consolidated financial statements and disclosures.

Recently Adopted Accounting Guidance

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) and subsequent amendments to the initial guidance: ASU 2021-01, and ASU 2022-06, which provides temporary optional expedients and exceptions to the current guidance on contract modifications to ease the financial reporting burdens related to the expected market transition from London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The amendments are effective as of March 12, 2020 and apply to contract modifications made before December 31, 2024. The Company adopted Topic 848 on July 1, 2022. The adoption of Topic 848 had no impact on the Company’s financial statements or related disclosures.

NOTE 23 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a) Principles of Consolidation

The condensed consolidated financial statements include the accounts of Radiant Logistics, Inc. and its wholly-owned subsidiaries as well as a single variable interest entity, Radiant Logistics Partners, LLC (“RLP”), which is 40% owned by Radiant Global Logistics, Inc. (“RGL”) and 60% owned by Radiant Capital Partners, LLC (“RCP”, see Note 11), an entity owned by the Company’s Chief Executive Officer. All significant intercompany balances and transactions have been eliminated.

Non-controlling interest in the condensed consolidated balance sheets represents RCP’s proportionate share of equity in RLP. Net income (loss) of non-wholly-owned consolidated subsidiaries or variable interest entities is allocated to the Company and the holder(s) of the non-controlling interest in proportion to their percentage ownership.

~~Use of Estimates~~

b) Use of Estimates

The preparation of financial statements and related disclosures in accordance with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. ~~Such estimates include revenue recognition, accruals for the cost of purchased transportation, the fair value of acquired assets and liabilities, changes~~Actual results reported in contingent consideration, accounting for the issuance of shares and share-based compensation, the assessment of the recoverability of long-lived assets and goodwill, and the establishment of an allowance for doubtful accounts. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the periodfuture periods may be based upon amounts that ~~they are determined to be necessary. Actual results~~ could differ from ~~those estimates.~~

b)	~~Fair Value Measurements~~

In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

c)	~~Fair Value of Financial Instruments~~

~~The carrying values of the Company’s receivables, accounts payable and accrued transportation costs, commissions payable, other accrued costs, and the income tax deposit approximate the fair values~~these estimates due to the ~~relatively short maturities of these instruments. The carrying value of the Company’s credit facility, notes payable~~inherent uncertainty involved in making estimates and other long-term liabilities would not differ significantly from fair value (based on Level 2 inputs) if recalculated based on current interest rates. Contingent consideration attributable to the Company’s acquisitions are reported at fair value using Level 3 inputs.risks and uncertainties.

d)	~~Cash and Cash Equivalents~~

~~For purposes of the statements of cash flows, cash equivalents include all highly liquid investments with original maturities of three months or less.~~c) Cash, ~~balances may at times exceed federally insured limits. Checks issued by the Company that have not yet been presented to the bank for payment are reported as accounts payable~~Cash Equivalents, and commissions payable in the accompanying condensed consolidated balance sheets. Accounts payable and commissions payable includes outstanding payments which had not yet been presented to the bank for payment in the amounts of $8,356 and $9,238 as of December 31, 2017 and June 30, 2017, respectively.Restricted Cash

e)	~~Concentrations~~

The Company maintains its cash in bank deposit accounts that, at times, may exceed ~~federally-insured~~federally insured limits. The Company has not experienced any losses in such accounts. Cash equivalents consist of highly liquid investments with original maturities of three months or less. Restricted cash includes five months interest in a debt service reserve account for a senior secured Canadian term loan, which will mature on April 1, 2024. The Company combines both unrestricted and restricted cash along with the cash balance for presentation in the Condensed Consolidated Statement of Cash Flows.

f)	~~Accounts Receivable~~

d) Accounts Receivable

The Company’s receivables are recorded when billed and represent ~~claims against third-parties that will be settled in cash.~~amounts owed by third-party customers, as well as amounts owed by strategic operating partners. The carrying value of the Company’s receivables, net of the allowance for doubtful accounts, represents their estimated net realizable value. The Company evaluates the collectability of accounts receivable on a customer-by-customer basis. The Company records ~~a reserve~~an allowance for ~~bad debts against amounts due in order~~doubtful accounts to reduce the net recognized receivable to an amount the Company believes will be reasonably collected. The ~~reserve~~allowance for doubtful accounts is ~~a discretionary amount~~ determined from the analysis of the aging of the accounts ~~receivables,~~receivable, historical experience and knowledge of specific customers.

The Company derives a substantial portion of its revenue through ~~independently-owned~~independently owned strategic operating partner locations operating under various Company brands. Each strategic operating partner is responsible for some or all of the ~~bad debt expense~~collection of the accounts related to the underlying customers being serviced by such strategic operating partner. To facilitate this arrangement, based on contractual agreements, certain strategic operating partners are required to maintain a bad debt reserve in the form of a security deposit with the ~~Company that is recognized as a liability in the Company’s financial statements.~~Company. The Company charges each strategic operating partner’s bad debt reserve account for any accounts receivable aged beyond 90 ~~days.~~days along with any other amounts owed to the Company by strategic operating partners. However, the bad debt reserve account may carry a deficit balance when amounts charged to this reserve account exceed amounts otherwise ~~available in this reserve account.~~available. In these circumstances, a deficit bad debt reserve ~~accounts, as well as other deficit balances owed to us by strategic operating partners, are~~account is recognized as a receivable in the Company’s condensed consolidated financial statements. ~~Other~~Some strategic operating partners are not required to establish a bad debt ~~reserve,~~reserve; however, they are still responsible to make up for any deficits and ~~their strategic operating partner agreements provide that~~ the Company may withhold all or a portion of future ~~commission checks~~commissions payable to the strategic operating partner ~~in satisfaction of~~to satisfy any deficit balance. Currently, a number of the Company’s strategic operating partners have a deficit balance in their bad debt reserve ~~account.~~accounts. The Company expects to replenish these funds through the future business operations of these strategic operating ~~partners.~~partners or as their customers satisfy the amounts payable to the Company. However, to the extent any of these strategic operating partners were to cease operations or otherwise be unable to replenish these deficit accounts, the Company would be at risk of loss for any such ~~amount.~~amounts and generally would reserve for them.

g)	~~Technology and Equipment~~

e) Property, Technology, ~~(computer software, hardware,~~ and ~~communications), vehicles, furniture~~Equipment

Property, technology, and equipment ~~are~~is stated at cost, less accumulated depreciation, and amortization. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the ~~respective~~related assets. Depreciation is computed using three to fifteen year lives for vehicles, communication, office, furniture, and computer equipment using the straight line method of depreciation. Computer software is depreciated over a three to five year life using the straight line method of depreciation. For leasehold improvements, the cost is amortized over the shorter of the lease term or useful life on a straight line basis. Upon retirement or other disposition of these assets, the cost and related accumulated depreciation or amortization are removed from the accounts and the resulting gain or loss, if any, is reflected in other income or expense. Expenditures for maintenance, repairs and renewals of minor items are ~~charged to expense~~expensed as incurred. Major renewals and improvements are capitalized.

h)	~~Goodwill~~

f) Goodwill

Goodwill represents the excess acquisition cost of ~~purchase price~~an acquired entity over the ~~value~~estimated fair values assigned to the net tangible and identifiable intangible assets ~~of a business~~ acquired. The Company ~~typically~~ performs its annual goodwill impairment test ~~effective~~ as of April 1 of each year ~~unless events~~or more frequently if facts or circumstances indicate that the carrying amount may not be recoverable. Based on the most recent annual impairment ~~may have occurred before~~test and further review by management, the Company concluded that ~~time. The Company assesses~~there was no impairment.

An entity has the option to perform a qualitative ~~factors~~assessment to determine whether it is ~~more likely than not~~more-likely-than-not that the fair value of the reporting unit is less than its carrying ~~amount. After assessing~~amount prior to performing a quantitative impairment test. The qualitative assessment evaluates various factors, ~~the Company determined~~such as macro-economic conditions, industry and market conditions, cost factors, relevant events and financial trends that ~~no further testing was necessary. If further testing was necessary, the Company would determine~~may impact the fair value of ~~each~~the reporting unit. If it is determined that the estimated fair value of the reporting unit is more-likely-than-not less than its carrying amount, including goodwill, a quantitative assessment is required. Otherwise, no further analysis is required.

If a quantitative assessment is performed, a reporting unit’s fair value is compared to its carrying value. A reporting unit’s fair value is determined based upon consideration of various valuation methodologies, including the income approach, which utilizes projected future cash flows discounted at rates commensurate with the risks involved, and ~~compare~~multiples of current and future earnings, and market approach, which utilizes a selection of guideline public companies. If the fair value toof a reporting unit is less than its carrying amount, an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s ~~carrying amount.~~ fair value; however, the loss recognized cannot exceed the total amount of goodwill allocated to that reporting unit.

As of December 31, ~~2017,~~2022, management believes there are no indications of impairment.

i)	~~Long-Lived Assets~~

~~Acquired intangibles consist of customer related intangibles, trade names~~g) Long-Lived Assets

Long-lived assets, such as property, technology, and ~~trademarks,~~equipment and ~~non-compete agreements arising from the Company’s acquisitions. Customer related intangibles~~definite-lived intangible assets, are amortized using the straight-line method over a period of up to 10 years, trademarks and trade names are amortized using the straight line method over 15 years, and non-compete agreements are amortized using the straight line method over the term of the underlying agreements.

~~The Company reviews long-lived assets to be held-and-used~~reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the ~~sum of~~Company compares the undiscounted expected future cash flows ~~over~~to be generated by that asset or asset group to its carrying amount. If the ~~remaining useful life~~carrying amount of athe long-lived asset or asset group is ~~less than its carrying amount,~~not recoverable on an undiscounted cash flow basis, an impairment charge is recognized to the ~~asset is considered to be impaired. Impairment losses are measured as the amount by which~~extent the carrying amount of the asset or asset group exceeds the fair value. Fair values of long-lived assets are determined through various techniques, such as applying probability weighted, expected present value ofcalculations to the ~~asset. When fair values are not available, the Company estimates fair value using the expected~~estimated future cash flows ~~discounted at~~using assumptions a ~~rate commensurate with~~market participant would utilize or through the ~~risks associated with the recovery~~use of ~~the asset. Assets to be disposed~~a third-party independent appraiser or valuation specialist. No impairment losses of ~~are reported at the lower of carrying amount or fair value less costs to sell. Management has performed a review of all~~ long-lived assets ~~and has determined no impairment of~~were recorded during the ~~respective carrying value has occurred as of~~six months ended December 31, ~~2017.~~2022 and 2021.

Intangible assets consist of customer related intangible assets, trade names and trademarks, developed technology, and non-compete agreements arising from the Company’s acquisitions. Customer related intangible assets, and trademarks and trade names are amortized using the straight-line method over periods of up to 15 years, non-compete agreements are amortized using the straight-line method over periods of up to five years, and developed technology is amortized using the straight-line method over five years.

j)	~~Business Combinations~~

h) Business Combinations

The Company accounts for business ~~combinations~~acquisitions using the ~~purchase~~acquisition method ~~of accounting and allocates the purchase price to the tangible and intangible~~as required by FASB ASC Topic 805, Business Combinations. The assets acquired and ~~the~~ liabilities assumed in business combinations, including identifiable intangible assets, are recorded based upon their estimated fair values atas of the acquisition date. The ~~difference between~~excess of the purchase price ~~and~~over the estimated fair value of the net tangible and identifiable intangible assets acquired is recorded as goodwill. Acquisition expenses are expensed as incurred. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed atas of the acquisition date, the estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded in the condensed consolidated statements of operations.

The fair values of intangible assets ~~acquired~~ are generally estimated using a discounted cash flow approach with Level 3 inputs. ~~Under this method,~~The estimate of fair value of an intangible ~~asset’s fair value~~asset is equal to the present value of the incremental after-tax cash flows (excess earnings) attributable solely to the intangible asset over its remaining useful life. To ~~calculate~~estimate fair value, the Company generally uses risk-adjusted cash flows discounted at rates considered appropriate given the inherent risks associated with each type of asset. The Company believes the level and timing of cash flows appropriately reflects market participant assumptions.

For acquisitions that involve contingent consideration, the Company records a liability equal to the fair value of the contingent consideration obligation as of the acquisition date. The Company determines the acquisition date fair value of the contingent consideration ~~payable~~ based on the likelihood of paying the ~~contingent consideration as part of the consideration transferred.~~additional consideration. The fair value is generally estimated using projected future operating results and the corresponding future earn-out payments that can be earned upon the achievement of specified operating objectives and financial results by acquired companies using Level 3 inputs and the amounts are then discounted to present value. These liabilities are measured quarterly at fair value, and any change in the fair value of the contingent consideration liability is ~~included~~recognized in the condensed consolidated statements of ~~operations.~~comprehensive income. Amounts are generally due annually on November 1st and 90 days following the quarter of the final earn-out period of each respective acquisition.

During the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding adjustment to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recognized in the condensed consolidated statements of comprehensive income.

k)	~~Commitments~~

i) Revenue Recognition

The Company’s revenues are primarily from transportation services, which include providing for the arrangement of freight, both domestically and internationally, through modes of transportations, such as air freight, ocean freight, truckload, less than truckload and intermodal. The Company generates its transportation services revenue by purchasing transportation from direct carriers and reselling those services to its customers.

In general, each shipment transaction or service order constitutes a separate contract with the customer. A performance obligation is created once a customer agreement with an agreed upon transaction price exists. The transaction price is typically fixed and not contingent upon the occurrence or non-occurrence of any other event. The transaction price is generally due 30 to 45 days from the date of invoice. The Company’s transportation transactions provide for the arrangement of the movement of freight to a customer’s destination. The transportation services, including certain ancillary services, such as loading/unloading, freight insurance and customs clearance, that are provided to the customer represent a single performance obligation as these promises aren’t distinct in the context of the contract. This performance obligation is satisfied over time and recognized in revenue upon the transfer of control of the services over the requisite transit period as the customer’s goods move from point of origin to point of destination. The Company determines the period to recognize revenue in transit based upon the actual departure date and the delivery date, if available, or estimated pick-up date based on the actual delivery date and estimated average transit period by mode. Determination of the transit period and the percentage of completion of the shipment as of the reporting date requires management to make judgments that affect the timing of revenue recognition. The Company has ~~operating lease commitments~~determined that revenue recognition over the transit period provides a reasonable estimate of the transfer of services to its customers as it depicts the pattern of the Company’s performance under the contracts with its customers.

The Company also provides MM&D services for its customers under contracts generally ranging from a few months to five years and include renewal provisions. These MM&D service contracts provide for inventory management, order fulfilment and warehousing of the Customer’s product and arrangement of transportation of the customer’s product. The Company’s performance obligations are satisfied over time as the customers simultaneously receive and consume the services provided by the Company as they are performed. The transaction price is based on the consideration specified in the contract with the customer and contains fixed and variable consideration. In general, the fixed consideration component of a contract represents reimbursement for facility and equipment ~~rentals, office space,~~costs incurred to satisfy the performance obligation and ~~warehouse space under non-cancelable operating leases expiring at various dates through April 2023. Rent expense~~ is recognized ~~straight line~~on a straight-line basis over the term of the ~~lease. Minimum future lease payments (excluding~~contract. The variable consideration component is comprised of cost reimbursement per unit pricing for time and pricing for materials used and is determined based on cost plus a mark-up for hours of services provided and materials used and is recognized over time based on the ~~lease payments included~~level of activity volume.

Other services include primarily CHB services sold on a standalone basis as a single performance obligation. The Company recognizes revenue from this performance obligation at a point in time, which is the completion of the services. Duties and taxes collected from the customer and paid to the customs agent on behalf of the customers are excluded from revenue. The Company also captures revenue through fees related to the use of its technology platform. The technology-related revenue includes platform fees, operational fees, and purchase order management fees.

The Company uses independent contractors and third-party carriers in the ~~transition and lease termination liability) under these non-cancelable operating leases~~performance of its transportation services. The Company evaluates who controls the transportation services to determine whether its performance obligation is to transfer services to the customer or to arrange for ~~each~~services to be provided by another party. The Company determined it acts as the principal for its transportation services performance obligation since it is in control of establishing the prices for the specified services, managing all aspects of the ~~next five fiscal years ending June 30~~shipments process and ~~thereafter are as follows:~~

assuming the risk of loss for delivery and collection. Such transportation services revenue is presented on a gross basis in the condensed consolidated statements of comprehensive income.

(In thousands)

2018 (remaining)
$
4,504

2019

8,690

2020

8,379

2021

7,169

2022

4,684

Thereafter

1,079

Total minimum lease payments
$
34,505

~~Rent expense amounted to $2,226~~A summary of the Company’s gross revenues disaggregated by major service lines and ~~$4,368~~geographic markets (reportable segments), and timing of revenue recognition for the three and six months ended December 31, ~~2017, respectively,~~2022 and ~~$1,178~~2021 are as follows:


	Three Months Ended December 31, 2022
(In thousands)	United States		Canada		Corporate/ Eliminations			Total
Major service lines:
Transportation services	$	233,432	$	29,803	$	(58	)	$	263,177
Value-added services (1)		4,359		10,583		—			14,942
Total	$	237,791	$	40,386	$	(58	)	$	278,119

Timing of revenue recognition:
Services transferred over time	$	235,855	$	40,386	$	(58	)	$	276,183
Services transferred at a point in time		1,936		—		—			1,936
Total	$	237,791	$	40,386	$	(58	)	$	278,119

	Six Months Ended December 31, 2022
(In thousands)	United States		Canada		Corporate/ Eliminations			Total
Major service lines:
Transportation services	$	517,914	$	61,655	$	(255	)	$	579,314
Value-added services (1)		9,895		19,881		—			29,776
Total	$	527,809	$	81,536	$	(255	)	$	609,090

Timing of revenue recognition:
Services transferred over time	$	522,187	$	81,536	$	(255	)	$	603,468
Services transferred at a point in time		5,622		—		—			5,622
Total	$	527,809	$	81,536	$	(255	)	$	609,090


	Three Months Ended December 31, 2021
(In thousands)	United States		Canada		Corporate/ Eliminations			Total
	(as restated)							(as restated)
Major service lines:
Transportation services	$	295,194	$	31,430	$	(963	)	$	325,661
Value-added services (1)		2,507		7,610		—			10,117
Total	$	297,701	$	39,040	$	(963	)	$	335,778

Timing of revenue recognition:
Services transferred over time	$	296,863	$	39,040	$	(963	)	$	334,940
Services transferred at a point in time		838		—		—			838
Total	$	297,701	$	39,040	$	(963	)	$	335,778

	Six Months Ended December 31, 2021
(In thousands)	United States		Canada		Corporate/ Eliminations			Total
	(as restated)							(as restated)
Major service lines:
Transportation services	$	556,118	$	60,763	$	(981	)	$	615,900
Value-added services (1)		5,220		14,056		—			19,276
Total	$	561,338	$	74,819	$	(981	)	$	635,176

Timing of revenue recognition:
Services transferred over time	$	559,625	$	74,819	$	(981	)	$	633,463
Services transferred at a point in time		1,713		—		—			1,713
Total	$	561,338	$	74,819	$	(981	)	$	635,176

(1)Value-added services include MM&D, CHB, technology platform fees, and ~~$2,395 for~~other services.

Practical Expedients

The Company has elected to not disclose the ~~three and six months ended December 31, 2016, respectively.~~

l)	~~Transition and Lease Termination Costs~~

~~Lease termination costs consist~~aggregate amount of ~~expenses related~~the transaction price allocated to ~~future rent payments~~performance obligations that are unsatisfied as of the end of the period as the Company’s contracts with its transportation customers have an expected duration of one year or less.

For the performance obligation to transfer MM&D services in contracts with customers, revenue is recognized in the amount for which the Company ~~no longer intends~~has the right to ~~receive any economic benefit. A liability~~invoice the customer, as this amount corresponds directly with the value provided to the customer for the Company’s performance completed to date.

The Company also applies the practical expedient that permits the recognition of employee sales commissions related to transportation services as an expense when incurred since the amortization period of such costs is ~~recorded when~~less than one year. These costs are included in the condensed consolidated statements of comprehensive income.

Contract Assets

Contract assets represent estimated amounts for which the Company ~~ceases~~has the right to ~~use leased space. Lease termination costs~~consideration for the services provided while a shipment is still in-transit, for which it has not yet completed the performance obligation, where the customer has not yet been invoiced and unbilled amounts for which the Company has the right to consideration for services on completed shipments. Upon completion of the performance obligations, which can vary in duration based upon the method of transport and billing the customer, these amounts become classified within accounts receivable.

Operating Partner Commissions

The Company enters into contractual arrangements with strategic operating partners that operate, on behalf of the Company, an office in a specific location that engages primarily in arranging, domestic and international, transportation services. In return, the strategic operating partner is compensated through the payment of sales commissions, which are ~~calculated~~based on individual shipments. The Company estimates and accrues the strategic operating partner’s commission obligation ratably as the ~~present value~~goods are transferred to the customer.

Table of lease payments, net of expected sublease income, and the loss on disposition of assets. Retention and transition costs consist of retention bonuses expected to be paid, and non-recurring personnel costs identified for elimination in connection with the winding down of Service by Air, Inc. (“SBA”).Contents

j) Defined Contribution Savings Plans

~~The transition and lease termination liability consists of the following:~~

(In thousands)
Lease Termination
Costs

Retention Costs

Total

Balance as of June 30, 2017
$
1,614

$
400

$
2,014

Transition and lease termination costs

107

—

107

Payments and other

(356
)

(63
)

(419
)

Balance as of December 31, 2017
$
1,365

$
337

$
1,702

m)	~~401(k) Savings Plans~~

The Company has an employee savings plan under which the Company provides safe harbor matching contributions. The Company’s contributions under the plan were ~~$230~~$399 and ~~$425~~$863 for the three and six months ended December 31, ~~2017,~~2022, respectively, and ~~$186~~$328 and ~~$368~~$684 for the three and six months ended December 31, ~~2016,~~2021, respectively.

n)	k) Income Taxes Income ~~Taxes~~

~~Deferred income~~ taxes are ~~reported~~accounted for using the asset and liability method. Deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is ~~more likely than not~~more-likely-than-not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

The Company ~~reports~~records a liability for unrecognized tax benefits resulting from uncertain income tax positions taken or expected to be taken in an income tax return. ~~Estimated interest~~Interest and penalties, if any, are recorded as a component of interest expense or other expense, respectively. Currently, the Company does not have any accruals for uncertain tax positions.

o)	~~Revenue Recognition and Purchased Transportation Costs~~

l) Share-Based Compensation

The Company is the primary obligor responsible for providing the service desired by the customer and is responsible for fulfillment, including the acceptability of the service(s) ordered or purchased by the customer. At the Company’s sole discretion, it sets the prices charged to its customers, and is not required to obtain approval or consent from any other party in establishing its prices. The Company has multiple suppliers for the services it sells to its customers, and has the absolute and complete discretion and right to select the supplier that will provide the product(s) or service(s) ordered by a customer, including changing the supplier on a shipment-by-shipment basis. In most cases, the Company determines the nature, type, characteristics, and specifications of the service(s) ordered by the customer. The Company also assumes credit risk for the amount billed to the customer.

As a non asset-based carrier, the Company generally does not own transportation assets. The Company generates the major portion of its freight forwarding revenues by purchasing transportation services from direct (asset-based) carriers and reselling those services to its customers. Based upon the terms in the contract of carriage, revenues related to shipments where the Company issues a House Airway Bill or a House Ocean Bill of Lading are recognized at the time the freight is tendered to the direct carrier at origin net of duties and taxes. Costs related to the shipments are also recognized at this same time based upon anticipated margins, contractual arrangements with direct carriers, and other known factors. The estimates are routinely monitored and compared to actual invoiced costs. The estimates are adjusted as deemed necessary by the Company to reflect differences between the original accruals and actual costs of purchased transportation.

This method generally results in recognition of revenues and purchased transportation costs earlier than the preferred methods under GAAP which does not recognize revenue until a proof of delivery is received or which recognizes revenue as progress on the transit is made. The Company’s method of revenue and cost recognition does not result in a material difference from amounts that would be reported under such other methods.

~~All other revenue, including revenue from other value-added services including brokerage services, warehousing and fulfillment services, is recognized upon completion of the service.~~

p)	~~Share-Based Compensation~~

~~The Company has issued~~grants restricted stock awards, restricted stock units, performance unit awards, and stock options to certain directors, officers, and employees. The ~~Company accounts for~~ share-based ~~compensation under the fair value recognition provisions such that~~ compensation cost is measured at the grant date based on the fair value of the award and is expensed ratably over the vesting period. The fair value of each restricted stock and performance unit awards is the market price as of the grant date, and the fair value of each stock option grant is estimated as of the grant date using the Black-Scholes option pricing model. Determining the fair value of share-based awards at the grant date requires judgment about, among other things, stock volatility, the expected life of the award, and other inputs. The Company accounts for forfeitures as they occur. The Company issues new shares of common stock to satisfy option exercises and vesting of awards granted under its stock plans.

~~The Company recorded share-based~~ Share-based compensation expense is reflected in the condensed consolidated statements of ~~$380~~comprehensive income as part of personnel costs.

m) Basic and ~~$730 for the three and six months ended December 31, 2017, respectively, and $329 and $660 for the three and six months ended December 31, 2016, respectively.~~

q)	~~Basic and Diluted Income Per Share~~

Diluted Income per Share Allocable to Common Stockholders

Basic income per common share is computed by dividing net income ~~attributable~~allocable to common stockholders by the weighted average number of common shares outstanding. Diluted income per common share is computed ~~similar~~by dividing net income allocable to ~~basic income per share except that~~common stockholders by the ~~denominator is increased to include~~weighted average number of common shares outstanding, plus the number of additional common shares that would have been outstanding if the potential common shares, such as restricted stock awards and stock options, had been issued and ~~if the additional common shares~~ were considered dilutive. ~~Net income attributable to common stockholders is calculated after earned preferred stock dividends, whether or not declared.~~

n) Foreign Currency Translation

~~The following table reconciles the numerator and denominator of the basic and diluted per share computations for earnings per share as follows:~~

Three Months Ended December 31,

Six Months Ended December 31,

2017

2016

2017

2016

Weighted average basic shares outstanding

49,174,789

48,789,684

49,130,167

48,825,598

Dilutive effect of share-based awards

1,536,364

1,010,002

1,546,886

841,443

Weighted average dilutive shares outstanding

50,711,153

49,799,686

50,677,053

49,667,041

Potentially dilutive common shares excluded

1,101,454

2,048,574

1,102,093

2,139,847

r)	~~Foreign Currency Translation~~

For the Company’s foreign subsidiaries that prepare financial statements in currencies other than U.S. dollars, the local currency is the functional currency. All assets and liabilities are translated at ~~period-end~~period end exchange rates and all income statement amounts are translated at the weighted average rates for the period. Translation adjustments are recorded in accumulated other comprehensive income (loss) ~~income.~~. Gains and losses on transactions of monetary items denominated in a foreign currency are recognized in other income (expense) in the condensed consolidated statements of ~~operations.~~comprehensive income.

s)	~~Recent Accounting Pronouncements~~

~~In May 2014, the Financial Accounting Standards Board~~o) Leases

The Company determines if an arrangement is a lease at inception. Assets and obligations related to operating leases are included in operating lease right-of-use (“~~FASB”~~ROU”) ~~issued Accounting Standards Update (“ASU”) 2014-09,~~ ~~Revenue from Contracts with Customers~~,assets; current portion of operating lease liability; and operating lease liability, net of current portion in our condensed consolidated balance sheets. Assets and obligations related to ~~clarify the principles used~~finance leases are included in property, technology, and equipment, net; current portion of finance lease liability; and finance lease liability, net of current portion in our condensed consolidated balance sheets.

ROU assets represent our right to ~~recognize revenue for all entities. In March 2016, the FASB issued ASU 2016-08 to further clarify the implementation guidance on principal versus agent considerations. The guidance is effective~~use an underlying asset for the ~~Company beginning July~~lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the incremental borrowing rate based on the information available at commencement date is used in determining the present value of lease payments. We use the implicit rate when readily determinable. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. We perform an impairment analysis on ROU assets as of April 1 ~~2018~~of each year or more frequently if facts or circumstances indicate, and ~~permits the use~~as of ~~either~~December 31, 2022, there was no impairment to ROU assets.

The Company’s agreements with lease and non-lease components, are all each accounted for as a ~~retrospective~~single lease component. For leases with an initial term of twelve months or ~~cumulative effect transition method. The Company is in the process of evaluating the adoption impact for each of its services, including any impact on gross versus net revenue recognition. As~~less, the Company ~~completes~~elected the ~~overall evaluation, it is identifying and preparing to implement changes to its accounting policies, practices, and controls to support the new standard.~~

~~In February 2016, the FASB issued ASU 2016-02,~~ ~~Leases, to replace existing guidance. The guidance requires the recognition of right-of-use assets~~exemption from recording ROU and lease liabilities for ~~operating~~all leases ~~with terms more than 12 months~~that qualify, and records rent expense on a straight-line basis over the ~~balance sheet. Guidance is also provided~~lease term. Expenses for ~~the presentation of~~these short-term leases within the statement of operations and cash flows. The guidance is effective for annual and interim periods beginning after December 15, 2018, and early adoption is permitted. The adoption of this standard will impact the Company’s consolidated financial statements as future minimum lease payments under noncancelable leases totaled approximately $34.5 million as of December 31, 2017. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements and related disclosures.

~~In October 2016, the FASB issued ASU 2016-16,~~ ~~Income Taxes~~, allowing the recognition of income tax consequences on intra-entity asset transfers. Current GAAP prohibits recognizing current and deferred income tax consequences for an intra-entity asset transfer until the asset has been sold to an outside party. The guidance is effective for annual and interim periods beginning after December 15, 2017, and early adoption is permitted. The Company has approximately $1.8 million of such assets recorded in deposits and other assets in the consolidated balance sheets and is currently evaluating the impact and timing that the adoption of this guidance will have on its consolidated financial statements and related disclosures.

t)	~~Recently Adopted Accounting Pronouncements~~

~~In the prior fiscal year, the Company adopted ASU 2016-09,~~ ~~Stock Compensation, ASU 2016-15,~~ ~~Statement of Cash Flows, and ASU 2017-04,~~ ~~Intangibles—Goodwill and Other~~.

~~NOTE 3 – BUSINESS ACQUISITIONS~~

~~Fiscal Year 2018 Acquisitions~~

On September 1, 2017, the Company, through a wholly-owned subsidiary, RGL, acquired the operations and assets of Sandifer-Valley Transportation & Logistics, Ltd., a Texas based company providing a full range of domestic and international cross-border services with Mexico. The Company has structured the transaction similar to previous acquisitions, with a portion of the expected purchase price payable in subsequent periods based on future performance of the acquired operation. The consideration paid, purchase price allocation, and pro forma results of operations and other disclosures have not been presented because the effect of this acquisition was not material to the financial statements. The results of operations for the business acquired are included in the financial statements as of the date of purchase.

The preliminary fair value estimates for the assets acquired and liabilities assumed are based upon preliminary calculations and valuations. The estimates and assumptions are subject to change as additional information is obtained for the estimates during the respective measurement periods (up to one year from the acquisition date). The primary areas of the preliminary estimates not yet finalized relate to certain tangible assets and liabilities acquired, goodwill and identifiable intangible assets.

~~Fiscal Year 2017 Acquisitions~~

On April 1, 2017, the Company, through a wholly-owned subsidiary, acquired Lomas Logistics (“Lomas”), a division of L.V. Lomas Limited. Lomas operates as a third-party logistics provider serving companies across a range of industries including consumer goods, healthcare, food, chemicals and technology and operates from locations in Ontario and British Columbia, Canada. The Lomas acquisition was financed with proceeds from the Integrated Private Debt Fund V LP loan (as defined in Note 6). The results of operations for the business acquired are included in the financial statements as of the date of purchase.

On June 1, 2017 the Company, through a wholly-owned subsidiary, acquired the assets and operations of its strategic operating partner Dedicated Logistics Technologies, Inc. (“DLT”), a Newark, New Jersey based company. DLT is expected to transition to the Radiant brand and will combine with existing company owned operations in Newark while maintaining separate facilities in Los Angeles, California. The Company recorded non-recurring transition and lease termination costs of $107 for the six months ended December 31, 2017 associated with the facility consolidation of the former Radiant Newark facility to the DLT location. The DLT acquisition was financed with proceeds from the Company’s Credit Facility (as defined in Note 6). The Company has structured the transaction similar to previous acquisitions, with a portion of the expected purchase price payable in subsequent periods based on future performance of the acquired operation. The fair value of the contingent consideration was estimated using future projected earnings relative to the corresponding future earn-out payments. To calculate fair value, the future earn-out payments were then discounted using Level 3 inputs. The Company believes the discount rate used to discount the earn-out payments reflect market participant assumptions. The results of operations for the business acquired are included in the financial statements as of the date of purchase.

The results of operations for the businesses acquired are included in the Company’s condensed consolidated financial statements as of the date of purchase. The preliminary fair value estimates for the assets acquired and liabilities assumed are based upon preliminary calculations and valuations. The estimates and assumptions are subject to change as additional information is obtained for the estimates during the respective measurement periods (up to one year from the acquisition date). The primary areas of the preliminary estimates not yet finalized relate to certain tangible assets and liabilities acquired, goodwill and identifiable intangible assets.

During the measurement period, the Company obtained additional information that existed as of the acquisition date resulting in an adjustment for DLT to the preliminary amounts recognized. As of December 31, 2017, the Company recorded a decrease to acquired intangibles of $0.9 million, a decrease to contingent consideration of $2.5 million, and a corresponding decrease to goodwill of $1.7 million. The change in amortization expense related to the prior period was less than $0.1 million.

~~NOTE 4 – TECHNOLOGY AND EQUIPMENT~~

(In thousands)
December 31,

June 30,

2017

2017

Computer software
$
14,411

$
12,848

Trailers and related equipment

4,269

4,682

Leasehold improvements

2,965

2,363

Office and warehouse equipment

2,727

2,005

Computer equipment

2,016

1,745

Furniture and fixtures

816

788

27,204

24,431

Less: Accumulated depreciation and amortization

(11,073
)

(9,204
)

$
16,131

$
15,227

~~Depreciation and amortization expense related to technology and equipment was $1,124 and $2,205~~ for the three and six months ended December 31, ~~2017, respectively,~~2022 and ~~$945~~2021 are immaterial.

Certain leases include variable payments, which may vary based upon changes in facts or circumstances after the start of the lease. We exclude variable payments from lease ROU assets and ~~$1,877~~lease liabilities, to the extent not considered fixed, and instead expense as incurred. Variable lease costs for the three and six months ended December 31, ~~2016, respectively. Computer software includes approximately $5,440~~2022 and ~~$4,021~~2021 are immaterial.

p) Derivatives

Derivative instruments are recognized as either assets or liabilities and measured at fair value. The accounting for changes in the fair value of ~~software currently~~a derivative depends on the intended use of the derivative and the resulting designation.

For derivative instruments designated as cash flow hedges, gains and losses are initially reported as a component of other comprehensive income and subsequently recognized in ~~development as~~earnings with the corresponding hedged item. Gains and losses representing hedge components excluded from the assessment of effectiveness are recognized in earnings. As of December 31, ~~2017~~2022, the Company does not have any derivatives designated as hedges.

For derivative instruments that are not designated as hedges, gains and ~~June 30, 2017, respectively.~~losses from changes in fair values are recognized in other income (expense) in the condensed consolidated statements of comprehensive income.

q) Treasury Stock

Treasury stock is reflected as a reduction of stockholders’ equity at cost. As of December 31, 2022, there have been no reissuances of treasury stock.

r) Reclassifications of Previously Issued Financial Statements

Certain amounts for prior periods have been reclassified in the consolidated financial statements to conform to the current year presentation. There has been no impact on previously reported net income or shareholders’ equity from such reclassifications.

NOTE 4 – EARNINGS PER SHARE

The computations of the numerator and denominator of basic and diluted income per share are as follows:


	Three Months Ended December 31,				Six Months Ended December 31,
(In thousands, except share data)	2022		2021		2022		2021
			(as restated)				(as restated)
Numerator:
Net income attributable to Radiant Logistics, Inc.	$	4,836	$	6,539	$	13,269	$	14,148

Denominator:
Weighted average common shares outstanding, basic		48,243,204		49,657,547		48,494,260		49,789,304
Dilutive effect of share-based awards		1,184,216		1,118,167		1,370,956		1,156,792

Weighted average common shares outstanding, diluted		49,427,420		50,775,714		49,865,216		50,946,096

Potentially dilutive common shares excluded		110,000		100,000		105,000		117,392

NOTE 5 – ~~ACQUIRED INTANGIBLE ASSETS~~LEASES

The ~~table below reflects acquired intangible~~Company has operating and finance leases for office space, warehouse space, trailers, and other equipment. Lease terms expire at various dates through May 2032 with options to renew for varying terms at the Company’s sole discretion. The Company has not included these options to extend or terminate in its calculation of right-of-use assets or lease liabilities as it is not reasonably certain to exercise these options.

We have lease commitments that have been executed, but have not yet commenced. The total undiscounted future lease payments of these commitments is $26,224 and are excluded from the tables below.

The components of lease expense were as follows:


	Three Months Ended December 31,				Six Months Ended December 31,
(In thousands)	2022		2021		2022		2021
Operating:
Operating lease cost	$	3,610	$	2,486	$	6,623	$	4,811

Financing:
Amortization of leased assets		180		158		333		312
Interest on lease liabilities		18		27		37		55

Total finance lease cost	$	198	$	185	$	370	$	367

Supplemental cash flow information related to ~~all acquisitions:~~leases was as follows:


	Six Months Ended December 31,
(In thousands)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows arising from operating leases	$	5,420	$	3,940
Operating cash flows arising from finance leases		37		55
Financing cash flows arising from finance leases		294		369

Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	24,275	$	1,694

(In thousands)
December 31,

June 30,

Weighted-
Average

2017

2017

Life
Customer related
$
96,407

$
96,106

6.60 years
Trade names and trademarks

14,977

14,977

10.74 years
Covenants not to compete

870

850

2.16 years

112,254

111,933

Less: Accumulated amortization

(42,141
)

(37,204
)

$
70,113

$
74,729

Supplemental balance sheet information related to leases was as follows:


	December 31,			June 30,
(In thousands)	2022			2022
Operating lease:
Operating lease right-of-use assets	$	59,569		$	41,111

Current portion of operating lease liability		11,102			7,641
Operating lease liability, net of current portion		53,428			37,776

Total operating lease liabilities	$	64,530		$	45,417

Finance lease:
Property, technology, and equipment, net	$	1,698		$	2,039

Current portion of finance lease liability		536			577
Finance lease liability, net of current portion		953			1,223

Total finance lease liabilities	$	1,489		$	1,800

Weighted average remaining lease term:
Operating leases	6.3 years			5.5 years
Finance leases	2.8 years			3.4 years

Weighted average discount rate:
Operating leases		4.99	%		4.33	%
Finance leases		4.46	%		4.54	%

~~Amortization expense amounted to $2,443 and $4,937 for the three and six months ended~~As of December 31, ~~2017, respectively, and $2,083 and $4,157 for the three and six months ended December 31, 2016, respectively. Future amortization expense~~2022, maturities of lease liabilities for each of the next five fiscal years ending June 30 and thereafter are as follows:


(In thousands)	Operating			Finance
2023 (remaining)		6,820			300
2024		13,814			568
2025		13,338			539
2026		11,626			176
2027		10,119			—
Thereafter		21,243			—

Total lease payments		76,960			1,583

Less imputed interest		(12,430	)		(94	)

Total lease liability	$	64,530		$	1,489

(In thousands)

2018 (remaining)
$
4,948

2019

9,802

2020

9,574

2021

9,394

2022

8,841

Thereafter

27,554

$
70,113

NOTE 6 – PROPERTY, TECHNOLOGY, AND EQUIPMENT


		December 31,			June 30,
(In thousands)	Useful Life	2022			2022
Computer software	3 - 5 years	$	26,766		$	26,324
Trailers and related equipment	3 - 15 years		6,609			6,639
Office and warehouse equipment	3 - 15 years		11,462			10,307
Leasehold improvements	(1)		7,766			7,588
Computer equipment	3 - 5 years		4,632			4,272
Furniture and fixtures	3 - 15 years		1,522			1,514

Property, technology, and equipment			58,757			56,644
Less: accumulated depreciation and amortization			(35,094	)		(31,821	)

Property, technology, and equipment, net		$	23,663		$	24,823

(1) The cost is amortized over the shorter of the lease term or useful life.

Depreciation and amortization expenses related to property, technology, and equipment were $1,868 and $3,684 for the three and six months ended December 31, 2022, respectively, and $1,844 and $3,576 for the three and six months ended December 31, 2021, respectively. Computer software includes approximately $1,390 and $1,032 of software in development as of December 31, 2022 and June 30, 2022, respectively.

NOTE 7 – GOODWILL AND INTANGIBLE ASSETS

Goodwill

The table below reflects the changes in the carrying amount of goodwill for the six months ended December 31, 2022:


(In thousands)	Total
Balance as of June 30, 2022	$	88,199
Acquisition		1,766
Foreign currency translation loss		(1,041	)

Balance as of December 31, 2022	$	88,924

We considered uncertainties as part of our determination as to whether any triggering events occurred during the three months ended December 31, 2022, which would indicate an impairment of goodwill is more-likely-than-not. Based on our assessment, there were no triggering events identified that would have an adverse impact on our business; and therefore, no impairment was identified for our goodwill as of December 31, 2022.

The evaluation of impairment of goodwill requires the use of estimates about future operating results. Changes in forecasted operations can materially affect these estimates, which could materially affect our results of operations and financial condition. The estimates of expected future cash flows require significant judgment and are based on assumptions we determined to be reasonable; however, they are unpredictable and inherently uncertain, including, estimates of future growth rates, operating margins and assumptions about the overall economic climate as well as the competitive environment within which we operate. There can be no assurance that our estimates and assumptions made for purposes of our impairment assessments as of the time of evaluation will prove to be accurate predictions of the future. If our assumptions regarding business plans, competitive environments, or anticipated growth rates are not correct, we may be required to record non-cash impairment charges in future periods, whether in connection with our normal review procedures periodically, or earlier, if an indicator of an impairment is present prior to such evaluation.

Intangible Assets

The Company is in the process of rebranding certain trade names. We will rebrand certain trade names in connection with the Company’s long-term growth strategy and make it more consistent across our business and better serve our customers. We will gradually phase out certain trade names and will predominantly use Radiant to refer to the Company. The rebranding has resulted in the reduction of the related useful lives of certain trade names and accelerated amortization expenses starting from June 2022 to December 2022.

Intangible assets consisted of the following as of December 31, 2022 and June 30, 2022, respectively:


	December 31, 2022
(In thousands)	Weighted Average Amortization Period	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer related	7.4 years	$	117,098	$	(82,224	)	$	34,874
Trade names and trademarks	8.1 years		15,432		(12,331	)		3,101
Licenses	4.3 years		768		(441	)		327
Developed technology (1)	3.9 years		4,091		(886	)		3,205
Covenants not to compete	2.1 years		1,433		(1,209	)		224

		$	138,822	$	(97,091	)	$	41,731


	June 30, 2022
(In thousands)	Weighted Average Amortization Period	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer related	7.2 years	$	114,974	$	(78,736	)	$	36,238
Trade names and trademarks	3.8 years		15,700		(7,670	)		8,030
Licenses	4.8 years		808		(424	)		384
Developed technology (1)	4.4 years		4,091		(477	)		3,614
Covenants not to compete	2.6 years		1,433		(1,154	)		279

		$	137,006	$	(88,461	)	$	48,545

(1)Developed technology was acquired as one of the assets obtained in the acquisition of Navegate, Inc., which is described in Note 17.

Total amortization expense amounted to $5,046 and $10,009 for the three and six months ended December 31, 2022, respectively, and $2,603 and $5,126 for the three and six months ended December 31, 2021, respectively. Future amortization expense for each of the next five fiscal years ending June 30 are as follows:


(In thousands)
2023 (remaining)	$	5,283
2024		10,200
2025		8,210
2026		3,425
2027		2,852

NOTE 8 – NOTES PAYABLE

Notes payable consist of the following:


	December 31,			June 30,
(In thousands)	2022			2022
Revolving Credit Facility	$	47,525		$	62,525
Senior Secured Loans		6,322			8,902
Unamortized debt issuance costs		(161	)		(133	)

Total notes payable		53,686			71,294
Less: current portion		(4,495	)		(4,575	)

Total notes payable, net of current portion	$	49,191		$	66,719

(In thousands)
December 31,

June 30,

2017

2017

Long-term Credit Facility
$
21,918

$
13,780

Senior Secured Loans

26,731

27,514

Other notes payable

52

149

Less: Loan issuance costs

(1,000
)

(1,021
)

Total notes payable

47,701

40,422

Less: Current portion

(3,527
)

(3,382
)

Total notes payable, net of current portion
$
44,174

$
37,040

Future maturities of notes payable for each of the next five fiscal years ending June 30 and thereafter are as follows:

(In thousands)

2018 (remaining)
$
1,761

2019

3,591

2020

3,838

2021

4,101

2022

26,300

Thereafter

9,110

$
48,701


(In thousands)
2023 (remaining)	$	2,210
2024		4,112
2025		—
2026		—
2027		—
Thereafter		47,525

Total	$	53,847

~~Bank of America~~Revolving Credit Facility

The Company ~~has~~entered into a ~~$75.0 million senior~~$200,000 syndicated, revolving credit facility (the ~~“Senior~~“Revolving Credit Facility”) pursuant to a Credit Agreement dated as of August 5, 2022. The Credit Facility includes a $75,000 accordion feature to support future acquisition opportunities. The Credit Facility was entered into with Bank of America, N.A. ~~(the “Lender”) on its own behalf~~ and BMO Capital Markets Corp. as ~~agent to the other lenders named therein, currently consisting~~joint book runners and joint lead arrangers, Bank of ~~the~~America, N.A. as Administrative Agent, Swingline Lender and Letter of Credit Issuer, Bank of Montreal ~~(as~~as syndication agent, KeyBank National Association and MUFG Union Bank, N.A. as co-documentation agents and Bank of America, N. A., Bank of Montreal, KeyBank National Association, MFUG Union Bank, N.A. and Washington Federal Bank, National Association as lenders (such named lenders are collectively referred to herein as “Lenders”). This replaces the ~~initial member of the syndicate under such loan), pursuant to a Second Amendment to Amended and Restated Loan and Security Agreement. The Senior~~$150,000 Revolving Credit Facility ~~includes a $3.5 million sublimit to support letters of credit and matures July 14, 2022.~~dated March 13, 2020.

~~Borrowings accrue interest based on the Company’s average daily availability at the Lender’s base rate plus 0.25% to 0.75% or LIBOR plus 1.25% to 1.75%.~~ The ~~Senior~~ Credit Facility ~~provides for advances~~has a term of ~~up to 85% of the eligible Canadian~~five years and domestic accounts receivable, 75% of eligible accrued but unbilled domestic receivables and eligible foreign accounts receivable, all of which are subject to certain sub-limits, reserves and reductions. ~~The Senior Credit Facility~~ is collateralized by a first-priority security interest in ~~all of the assets of the U.S. co-borrowers, a first-priority security interest in all of~~ the accounts receivable and ~~associated assets of the Canadian co-borrowers (the “Canadian A/R Assets”) and a second-priority security interest on the~~ other assets of the Company and the guarantors named below on a parity basis with the security interest held by Fiera Private Debt Fund IV LP and Fiera Private Debt Fund V LP described below. Borrowings under the Credit Facility accrue interest (at the Company’s option), at a) the Lenders’ base rate plus 0.75% and can be subsequently adjusted based on the Company’s consolidated net leverage ratio under the facility at the Lenders’ base rate plus 0.50% to 1.50%; b) Term SOFR plus 1.65% and can be subsequently adjusted based on the Company’s consolidated net leverage ratio under the facility at Term SOFR plus 1.40% to 2.40%; and c) Term SOFR Daily Floating Rate plus 1.65% and can be subsequently adjusted based on the Company’s consolidated net leverage ratio under the facility at Term SOFR Daily Floating Rate plus 1.40% to 2.40%. The Company’s U.S. and Canadian ~~borrowers.~~

~~Borrowings~~subsidiaries are ~~available to fund future acquisitions, capital expenditures, repurchase of Company stock or for other corporate purposes. The terms~~guarantors of the ~~Senior~~ Credit Facility are subject to customary financial and operational covenants, including covenants that may limit or restrict the ability to, among other things, borrow under the Senior Credit Facility, incur indebtedness from other lenders, and make acquisitions.Facility. As of December 31, ~~2017,~~2022, the interest rate was 5.99%.

For general borrowings under the Credit Facility, the Company ~~was~~is subject to the maximum consolidated net leverage ratio of 3.00 and minimum consolidated interest coverage ratio of 3.00. Additional minimum availability requirements and financial covenants apply in ~~compliance with all of its covenants.~~

~~As of December 31, 2017, based on available collateral and $0.2 million in outstanding letter of credit commitments, there was $50.3 million available for borrowing~~the event the Company seeks to use advances under the ~~Senior~~ Credit ~~Facility.~~Facility to pursue acquisitions or repurchase its common stock.

Senior Secured Loans

In connection with the Company’s acquisition of Radiant Canada (formerly, Wheels International Inc. ~~(“Wheels”~~), ~~Wheels~~Radiant Canada obtained a CAD$~~29.0 million~~29,000 senior secured Canadian term loan from ~~Integrated~~Fiera Private Debt Fund IV LP (“~~IPD~~FPD IV”) formerly, Integrated Private Debt Fund IV LP) pursuant to a CAD$~~29,000,000~~29,000 Credit Facilities Loan Agreement. The Company and its U.S. and Canadian subsidiaries are guarantors of the ~~Wheels~~Radiant Canada obligations thereunder. The loan matures on April 1, 2024 and accrues interest at a rate of ~~6.65%~~6.65% per annum. The Company is required to maintain five months interest in a debt service reserve account to be controlled by ~~IPD~~FPD IV. ~~This~~As of December 31, 2022, the amount of $593 is recorded as ~~deposits and other assets~~long-term restricted cash in the accompanying condensed consolidated financial statements. The Company made interest-only payments for the first 12twelve months followed by ~~blended~~monthly principal and interest payments of CAD$390 that will be paid through maturity. As of December 31, 2022, $4,400 was outstanding under this term loan.

In connection with the Company’s acquisition of Lomas, ~~Wheels~~Radiant Canada obtained a CAD$~~10.0 million~~10,000 senior secured Canadian term loan from Fiera Private Debt Fund V LP (formerly, Integrated Private Debt Fund V LPLP) pursuant to a CAD$~~10,000,000~~10,000 Credit Facilities Loan Agreement. The Company and its U.S. and Canadian subsidiaries are guarantors of the ~~Wheels~~Radiant Canada obligations thereunder. The loan matures on June 1, 2024 and accrues interest at a fixed rate of ~~6.65%~~6.65% per annum. The loan repayment consists of monthly ~~blended~~ principal and interest ~~payments.~~payments of CAD$149. As of December 31, 2022, $1,922 was outstanding under this term loan.

The loans may be prepaid in whole at any time ~~upon~~ providing the Company gives at least 30 days prior written notice and ~~paying~~pays the difference between (i) the present value of the loan interest and the principal payments foregone discounted at the Government of Canada Bond Yield for the term from the date of prepayment to the maturity date, and (ii) the face value of the principal amount being prepaid.

The ~~loans are collateralized by a (i) first-priority security interest in all~~covenants of the ~~assets of Wheels except~~Revolving Credit Facility, described above, also apply to the ~~Canadian A/R Assets, (ii) a second-priority security interest in the Canadian A/R Assets,~~FPD IV and ~~(iii) a second-priority security interest on all of the Company’s assets.~~

FPD V term loans. As of December 31, ~~2017,~~2022, the Company was in compliance with all of its covenants. The restatement described in Explanatory Note has no impact on the Company’s compliance with debt covenant ratios. Although the restatement delayed the process of providing audited financial statements for the fiscal year ended June 30, 2022 and unaudited financial statements for the three and six months ended December 31, 2022 to the lender, a waiver was received to extend the period within which financial statements may be submitted to the lender.

NOTE 9 – DERIVATIVES

All derivatives are recognized on the Company’s condensed consolidated balance sheets at their fair values and consist of interest rate swap contracts. On March 20, 2020, and effective April 17, 2020, Radiant entered into an interest rate swap contract with Bank of America to trade variable interest cash inflows at one-month LIBOR for a $20,000 notional amount, for fixed interest cash outflows at 0.635%. On April 1, 2020, and effective April 2, 2020, Radiant entered into an interest rate swap contract with Bank of America to trade the variable interest cash inflows at one-month LIBOR for a $10,000 notional amount, for fixed interest cash outflows at 0.5865%. Both interest rate swap contracts mature and terminate on March 13, 2025.

The Company uses an interest rate swap for the management of interest rate risk exposure, as the interest rate swap effectively converts a portion of the Company’s Revolving Credit Facility from a floating to a fixed rate. The interest rate swap is an agreement between the Company and Bank of America to pay, in the future, a fixed-rate payment in exchange for Bank of America paying the Company a variable payment. The net payment obligation is based on the notional amount of the swap contract and the prevailing market interest rates. The Company may terminate the swap contract prior to its expiration date, at which point a realized gain or loss would be recognized. The value of the Company’s commitment would increase or decrease based primarily on the extent to which interest rates move against the rate fixed for each swap. As of December 31, 2022, the derivative instruments had a total notional amount of $30,000 and a fair value of $2,432 recorded in deposits and other assets in the condensed consolidated balance sheets. As of June 30, 2022, the derivative instruments had a total notional amount of $30,000 and a fair value of $1,846 recognized in deposits and other assets on the condensed consolidated balance sheets. Both interest rate swap contracts are not designated as hedges; gains and losses from changes in fair value are recognized in other income (expense) in the condensed consolidated statements of comprehensive income. See Note 12 for discussion of fair value of the derivative instruments.

NOTE 710 – STOCKHOLDERS’ EQUITY

The Company is authorized to issue 5,000,000 shares of preferred stock, par value at ~~$0.001~~$0.001 per share and 100,000,000 shares of common stock, ~~$0.001~~$0.001 per share.

~~Series A Preferred Stock~~

~~The Company has 839,200~~No shares of ~~9.75% Series A Cumulative Redeemable Perpetual Preferred Stock (“Series A Preferred Shares”)~~preferred stock are issued ~~and~~or outstanding which have a liquidation preference of $25.00 per share. Dividends on the Series A Preferred Shares are cumulative from the date of original issue and are payable on January 31, April 30, July 31 and October 31, as and if declared by the Company’s board of directors. If the Company does not pay dividends in full on any two payment dates (whether consecutive or not), the per annum dividend rate will increase an additional 2.0% per annum per $25.00 stated liquidation preference, up to a maximum of 19.0% per annum. If the Company fails to maintain the listing of the Series A Preferred Shares on the NYSE American or other exchange for 30 days or more, the per annum dividend rate will increase by an additional 2.0% per annum so long as the listing failure continues. The Series A Preferred Shares require the Company to maintain a Fixed Charge Coverage Ratio of at ~~least 2.0. If the Company is not in compliance with this ratio, then it cannot pay any dividend on its common stock. As of~~ December 31, ~~2017, the Company was in compliance with this ratio.~~2022 or June 30, 2022.

Commencing on December 20, 2018, the Company may redeem, at its option, the Series A Preferred Shares, in whole or in part, at a cash redemption price of $25.00 per share plus accrued and unpaid dividends (whether or not declared). Among other things, the Series A Preferred Shares have no stated maturity, are not subject to any sinking fund or other mandatory redemption, and are not convertible into or exchangeable for any of the Company’s other securities. Holders of Series A Preferred Shares generally have no voting rights, except if the Company fails to pay dividends on the Series A Preferred Shares for six or more quarterly periods (whether consecutive or not). Under such circumstances, holders of Series A Preferred Shares will be entitled to vote to elect two additional directors to theCommon Stock

The Company’s board of directors ~~until all unpaid dividends have been paid or declared and set aside for payment. In addition, certain changes~~authorized the repurchase of up to ~~the terms~~5,000,000 shares of the Series A Preferred Shares cannot be made without the affirmative vote of the holders of two-thirds of the outstanding Series A Preferred Shares, voting as a separate class. The Series A Preferred Shares are senior to the Company’s common stock ~~with respect~~through December 31, 2023. Under the stock repurchase program, the Company is authorized to ~~dividends~~repurchase, from time to time, shares of its outstanding common stock in the open market at prevailing market prices or through privately negotiated transactions as permitted by securities laws and ~~distributions, including distributions upon liquidation, dissolution~~other legal requirements. The program does not obligate the Company to repurchase any specific number of shares and could be suspended or ~~winding up. The Series A Preferred Shares are listed on~~terminated at any time without prior notice. Under this repurchase program, the ~~NYSE American under the symbol “RLGT-PA.”~~

~~For~~Company purchased 839,864 shares of its common stock at an average cost of $5.95 per share for an aggregate cost of $5,000 during the six months ended December 31, ~~2017, the Company’s board~~2022. The Company purchased 870,733 shares of ~~directors declared and paid cash dividends to holders~~its common stock at an average cost of ~~Series A Preferred Shares in the amount of $1.218750~~$7.18 per share ~~totaling $1,023.~~for an aggregate cost of $6,256 during the six months ended December 31, 2021.

NOTE 811 – VARIABLE INTEREST ENTITY AND RELATED PARTY TRANSACTIONS

RLP is owned ~~40%~~40% by RGL and ~~60%~~60% by RCP, a company for which the Chief Executive Officer of the Company is the sole member. RLP is a certified minority business enterprise that was formed for the purpose of providing the Company with a national accounts strategy to pursue corporate and government accounts with diversity initiatives. RCP’s ownership interest entitles it to ~~a majority~~60% of the profits and distributable cash, if any, generated by RLP. The operations of RLP are intended to provide certain benefits to the Company, including expanding the scope of services offered by the Company and participating in supplier diversity programs not otherwise available to the Company. In the course of evaluating and approving the ownership structure, operations and economics emanating from RLP, a committee consisting of the independent Board ~~member~~members of the Company, considered, among other factors, the significant benefits provided to the Company through association with a minority business enterprise, particularly as many of the Company’s largest current and potential customers have a need for diversity offerings. In addition, the committee concluded that the economic relationship with RLP was on terms no less favorable to the Company than terms generally available from unaffiliated ~~third-parties.~~third parties.

Certain entities in which equity investors do not have the characteristics of a controlling financial interest or do not have ~~the~~ sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties are considered ~~“variable~~variable interest ~~entities”.~~entities. The Company has power over significant activities of RLP including the fulfillment of its contracts and financing its operations. Additionally, the Company also pays expenses and collects receivables on behalf of RLP. Thus, the Company is the primary beneficiary, RLP qualifies as a variable interest entity, and RLP is ~~included~~consolidated in ~~the Company’s~~these condensed consolidated financial statements.

RLP recorded ~~$93~~$149 and ~~$195~~$280 in ~~profits,~~net income, of which RCP’s distributable share was ~~$56~~$89 and ~~$117~~$168 for the three and six months ended December 31, ~~2017,~~2022, respectively. RLP recorded ~~$27~~$127 and ~~$46~~$271 in ~~profits,~~net income, of which RCP’s distributable share was ~~$16~~$76 and ~~$28~~$162 for the three and six months ended December 31, ~~2016,~~2021, respectively. The non-controlling interest recorded as a reduction of net income onavailable to common stockholders in the condensed consolidated statements of ~~operations~~comprehensive income represents RCP’s distributive share.

NOTE 912 – FAIR VALUE ~~MEASUREMENTS~~MEASUREMENT

The accounting guidance for fair value, among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The framework for measuring fair value consists of a three-level valuation hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based upon whether such inputs are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions made by the reporting entity. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability and include situations where there is little, if any, market activity for the asset or liability. The fair value measurement level within the hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

Assets and liabilities measured at fair value are based on one or more of the following three valuation techniques:

•

Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities;

•

Cost approach: Amount that would be required to replace the service capacity of an asset (replacement cost); and

•

Income approach: Techniques to convert future amounts to a single present amount based upon market expectations, including present value techniques, option-pricing, and excess earning models.

Items Measured at Fair Value on a Recurring Basis

The following table sets forth the Company’s financial ~~liabilities~~assets (liabilities) measured at fair value on a recurring basis:


(In thousands)	Fair Value Measurements as of December 31, 2022
	Level 3			Total
Contingent consideration	$	(5,327	)	$	(5,327	)
Interest rate swap contracts (derivatives)		2,432			2,432

	Fair Value Measurements as of June 30, 2022
	Level 3			Total
Contingent consideration	$	(5,530	)	$	(5,530	)
Interest rate swap contracts (derivatives)		1,846			1,846

(In thousands)
Fair Value Measurements as of December 31, 2017

Level 3

Total

Contingent consideration
$
5,025

$
5,025

Fair Value Measurements as of June 30, 2017

Level 3

Total

Contingent consideration
$
9,920

$
9,920

The following table provides a reconciliation of the financial assets (liabilities) measured at fair value using significant unobservable inputs (Level 3):


(In thousands)	Contingent Consideration			Interest Rate Swap Contracts (Derivatives)
Balance as of June 30, 2021	$	(7,263	)	$	6
Contingent consideration paid		2,500			—
Change in fair value		(767	)		1,840

Balance as of June 30, 2022	$	(5,530	)	$	1,846
Increase related to acquisition		(1,987	)		—
Contingent consideration paid		2,500			—
Change in fair value		(310	)		586

Balance as of December 31, 2022	$	(5,327	)	$	2,432

The Company has contingent obligations to transfer cash payments and equity shares to former shareholders of acquired operations in conjunction with certain acquisitions if specified operating results and financial objectives are met over ~~the next four fiscal years.~~their stated earn-out periods. Contingent consideration is measured quarterly at fair value, and any change in the fair value of the contingent liability is included in the condensed consolidated statements of operations. The Company recorded an increase to contingent consideration of $190 and a decrease of $110 for the three and six months ended December 31, 2017, respectively, and an increase of $806 and $1,056 for the three and six months ended December 31, 2016, respectively.comprehensive income. The change in ~~the current~~fair value in each period is principally attributable to a ~~change~~net increase in management’s estimates of future earn-out payments through the remainder of ~~its~~the earn-out periods.

The Company uses projected future financial results based on recent and historical data to value the anticipated future earn-out payments. To calculate fair value, the future earn-out payments were then discounted using Level 3 inputs. The Company has classified the contingent consideration as Level 3 due to the lack of relevant observable market data over fair value inputs. The Company believes the discount rate used to discount the earn-out payments reflects market participant assumptions. Changes in assumptions and operating results could have a significant impact on the earn-out amount ~~up to a maximum of $10.9 million,~~ through earn-out periods measured through ~~August 2021,~~September 2024, although there are no maximums on certain earn-out payments. ~~Contingent~~

For contingent consideration ~~is net of advances of earn-out payments of $650.~~

~~The~~the following table provides ~~a reconciliation of~~quantitative information about the ~~liabilities measured~~significant unobservable inputs used in fair value measurement:


(In thousands)	Fair Value			Valuation Methodology	Unobservable Inputs
DCA contingent consideration	$	(3,340	)	Discounted cash flows	Actual and projected EBITDA over the three-year earn-out period ending January 2023	> $15,200
					Risk adjusted discount rate		12.0	%
Cascade contingent consideration	$	(1,987	)	Discounted cash flows	Projected gross margin over the two-year earn-out period ending September 2024	>$9,800
					Risk adjusted discount rate		16.9	%

As discussed in Note 9, derivative instruments are carried at fair value ~~using significant unobservable inputs (Level 3):~~on the condensed consolidated balance sheets. Interest rate swap contracts are included in deposits and other assets on December 31, 2022 and on June 30, 2022.

Fair Value of Financial Instruments

The carrying values of the Company’s cash equivalents, receivables, contract assets, accounts payable, commissions payable, accrued expenses, and the income tax receivable and payable approximate the fair values due to the relatively short maturities of these instruments. The carrying value of the Company’s Revolving Credit Facility and notes payable would not differ significantly from fair value (based on Level 2 inputs) if recalculated based on current interest rates.

(In thousands)
Contingent
Consideration

Balance as of June 30, 2017
$
9,920

Changes related to accounting for acquisition

(2,275
)
Contingent consideration paid

(2,510
)
Change in fair value

(110
)

Balance as of December 31, 2017
$
5,025

NOTE 1013 – ~~PROVISION FOR~~ INCOME TAXES

For the three and six months ended December 31, 2022 and 2021, respectively, the Company’s income tax expense is composed of the following:


													Three Months Ended December 31,						Six Months Ended December 31,
(In thousands)	Three Months Ended December 31,						Six Months Ended December 31,						2022			2021			2022			2021
	2017			2016			2017			2016						(as restated)						(as restated)
Current income tax expense	$	937		$	1,725		$	2,074		$	3,399		$	2,628		$	2,840		$	5,890		$	5,449
Deferred income tax benefit		(2,777	)		(236	)		(3,288	)		(658	)		(1,168	)		(327	)		(1,666	)		(534	)

Income tax expense (benefit)	$	(1,840	)	$	1,489		$	(1,214	)	$	2,741
Income tax expense													$	1,460		$	2,513		$	4,224		$	4,915

The Company’s effective tax ~~rate~~rates prior to discrete items for the three and six months ended December 31, ~~2017 is lower~~2022 and 2021 are higher than the U.S. federal statutory ~~rate~~rates primarily due to the ~~provisional deferred~~jurisdictional mix of income and state taxes. Income tax ~~benefit resulting from~~expense for the ~~remeasurement of federal deferred tax liabilities, offset by state income taxes. For the three and~~ six months ended December 31, ~~2016, the~~2022 results in an effective tax rate of 24.38%, which is higher than the U.S. federal statutory rate ~~primarily~~ due to jurisdictional mix of income and state ~~income~~ taxes, and ~~losses~~reduced by share-based compensation benefits, which is discretely recognized through the six months ended December 31, 2022 and is not a component of the Company’s annualized forecasted effective tax rate for the fiscal year ending June 30, 2023. The actual income tax through the six months ended December 31, 2021 was 25.42%, which was higher than the U.S. federal statutory rate due to earnings in a foreign ~~jurisdiction that is being benefited at a lower foreign rate.~~operations and state taxes and reduced by share-based compensation benefits. The Company does not have any uncertain tax ~~positions and a minimal net operating loss carryover, due to expire primarily in the 2027 fiscal year.~~positions.

The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. The Act contains many significant changes to the U.S. federal income tax laws. The primary impact of the Act in fiscal year 2018 is a reduction of the federal statutory tax rate from 35% to 28.1% (average of a 35% rate for the first half of fiscal year 2018 and 21% rate for the second half of fiscal year 2018). Additionally, the Act requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign-sourced earnings. As of December 31, 2017, the Company has not completed its accounting for the tax effects of enactment of the Act; however, the Company has made a reasonable estimate of the effects on existing deferred tax balances and the one-time transition tax. The deferred income tax benefit includes a provisional benefit of $2.3 million recognized for those items which the Company could determine a reasonable estimate from the remeasurement of federal deferred tax liabilities resulting from the permanent reduction in the U.S. statutory corporate tax rate from 35% to 21%. The estimated amount of the one-time transition tax is not significant. The final impact of the Act may differ due to and among other things, changes in interpretations, assumptions made, the issuance of additional guidance, and actions the Company may take as a result of the Act.

The Company and its wholly owned U.S. subsidiaries file a consolidated Federal income tax return. The Company also files unitary or separate returns in various state, local, and non-U.S. jurisdictions based on state, local and non-U.S. filing requirements. Tax years which remain subject to examination by U.S. authorities are the years ended June 30, 2014 through June 30, 2017. Tax years which remain subject to examination by state authorities are the years ended June 30, 2013 through June 30, 2017. Tax years which remain subject to examination by non-U.S. authorities are the periods ended December 31, 2014 through June 30, 2017. Occasionally acquired entities have tax years that differ from the Company and are still open under the relevant statute of limitations and therefore are subject to potential adjustment.

NOTE 1114 – SHARE-BASED COMPENSATION

~~The~~On November 17, 2021, the Company’s stockholders, upon recommendation of the Board of the Company, ~~has two stock-based plans:~~approved the ~~2005 Stock~~Radiant Logistics, Inc. 2021 Omnibus Incentive Plan (the “2021 plan”) at the 2021 annual meeting of stockholders. The Board previously approved the 2021 Plan, subject to approval by the Company’s stockholders, on September 27, 2021.

The 2021 Plan became effective immediately upon approval by the Company’s stockholders and will expire on November 16, 2031, unless terminated earlier by the Board. The 2021 plan replaces the 2012 Radiant Logistics, Inc. Stock Option and Performance Award ~~Plan. Each~~Plan (the “2012 plan”). The remaining shares available for grant under the 2012 plan ~~authorizes~~will roll over into the ~~granting of up to 5,000,000 shares~~2021 plan, and no new awards will be granted under the 2012 plan. The terms of the 2012 plan, as applicable, will continue to govern awards outstanding under the 2012 plan, until exercised, expired, paid or otherwise terminated or canceled. Other than the 2021 plan, we have no other equity compensation plans under which equity awards can be granted.

The 2021 Plan will permit the Company’s ~~common stock. The plans provide for~~Audit and Executive Oversight Committee to grant to eligible employees, non-employee directors and consultants of the ~~grant of~~Company non-statutory and incentive stock options, stock appreciation rights ~~shares of~~(also known as SARs), restricted stock awards, restricted stock units (also known as RSUs), deferred stock units (also known as DSUs), performance awards, non-employee director awards, other cash-based awards and other share-based awards. Subject to adjustment, the maximum number of shares of our common stock to be authorized for issuance under the 2021 Plan is 3,250,000 shares, plus (i) shares of our common stock remaining available for issuance under the 2012 Plan as of the date of stockholder approval of the 2021 Plan, but not subject to outstanding awards as of such date, plus (ii) the number of additional shares of our common stock subject to awards outstanding under the 2012 Plan as of the date of stockholder approval of the 2021 Plan that are subsequently forfeited, cancelled, expire or otherwise terminate without the issuance of such shares of our common stock after such date (which may otherwise be returned and ~~performance units.~~ available for grant under the term of the 2012 Plan and 2021 Plan).

Restricted Stock Awards

The Company recognized share-based compensation expense related to restricted stock awards of $661and ~~units~~$1,252 for the three and six months ended December 31, 2022, respectively and $410 and $737 for the three and six months ended December 31, 2021, respectively. As of December 31, 2022, the Company had approximately $4,298 of total unrecognized share-based compensation cost for restricted stock awards. Such costs are ~~equivalent~~expected to ~~one share~~be recognized over a weighted average period of ~~common~~approximately 2.01 years.

The following table summarizes restricted stock ~~and generally vest after three years.~~award activity under the plans:


	Number of Units			Weighted Average Grant Date Fair Value
Unvested balance as of June 30, 2022		962,998		$	6.17
Vested		(246,229	)		5.56
Granted		333,803			6.90
Forfeited		(6,143	)		5.88

Unvested balance as of December 31, 2022		1,044,429		$	6.55

Stock Options

Stock options are granted at exercise prices equal to the fair value of the common stock at the date of the grant and have a term of ~~10 years.~~ten years. Generally, grants under each plan vest ~~20%~~20% annually over a ~~five year~~five-year period from the date of grant.

~~Stock Awards~~

The Company recognized share-based compensation expense related to stock awards of $159 and $240 for the three and six months ended December 31, 2017, respectively, and $47 and $48 for the three and six months ended December 31, 2016, respectively.

~~The following table summarizes stock award activity under the plans:~~

Number of
Shares

Weighted
Average Grant-
Date Fair Value

Balance as of June 30, 2017

258,636

$
2.86

Granted

251,151

4.97

Forfeited

(8,953
)

5.05

Balance as of December 31, 2017

500,834

$
3.88

~~Stock Options~~

The Company recognized share-based compensation expense related to stock options of ~~$221~~$18 and ~~$490~~$36 for the three and six months ended December 31, ~~2017,~~2022, respectively, and ~~$282~~$12 and ~~$612~~$35 for the three and six months ended December 31, ~~2016,~~2021, respectively.The aggregate intrinsic value of options exercised was ~~$432~~$327 and ~~$437~~$330 for the three and six months ended December 31, ~~2017,~~2022, respectively and ~~$73~~$568 and ~~$172~~$583 for the three and six months ended December 31, ~~2016,~~2021, respectively. As of December 31, 2022, the Company had approximately $244 of total unrecognized share-based compensation cost for stock options. Such costs are expected to be recognized over a weighted average period of approximately 3.42 years.

The following table summarizes stock option activity under the plans:


	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value (In thousands)
Outstanding as of June 30, 2022		1,105,084		$	4.06		2.30	$	3,719
Exercised		(101,274	)		1.91		—		330

Outstanding as of December 31, 2022		1,003,810		$	4.27		2.79	$	1,079

Exercisable as of December 31, 2022		923,810		$	4.00		2.30	$	1,079

Number of
Shares

Weighted
Average
Exercise Price

Weighted
Average
Remaining
Contractual Life
(Years)

Aggregate
Intrinsic Value
(in thousands)

Outstanding as of June 30, 2017

3,351,594

$
3.02

6.32

$
8,035

Exercised

(120,810
)

1.17

—

—

Forfeited

(90,037
)

3.49

—

—

Outstanding as of December 31, 2017

3,140,747

$
3.08

5.88

$
5,179

Exercisable as of December 31, 2017

1,949,619

$
2.54

5.01

$
4,137

NOTE 15 – COMMITMENTS AND CONTINGENCIES

~~NOTE 12 – CONTINGENCIES~~

Legal Proceedings

The Company is involved in various claims and legal actions arising in the ordinary course of ~~business, some~~business. The Company records accruals for estimated losses relating to claims and lawsuits when available information indicates that a loss is probable and the amount of ~~which are in~~ the ~~very early stages~~loss, or range of ~~litigation and therefore difficult to judge their potential materiality. For those claims for which the Company~~loss, can judge the materiality, in the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or liquidity.be reasonably estimated. Legal expenses are expensed as incurred. ~~A summary~~There were no potentially material legal proceedings as of ~~potential material litigation is as follows.~~December 31, 2022.

~~Ingrid Barahona v. Accountabilities, Inc. d/b/a/ Accountabilities Staffing, Inc., Radiant Global Logistics, Inc.~~On December 8, 2021, the Company detected a ransomware incident impacting certain of the Company’s operational and ~~DBA Distribution Services, Inc. (Ingrid Barahona California Class Action)~~

~~On October 25, 2013, plaintiff Ingrid Barahona filed a purported class action lawsuit against RGL, DBA Distribution Services, Inc. (“DBA”), and two third-party staffing companies (collectively,~~information technology systems. While the ~~“Staffing Defendants”) with whom Radiant and DBA contracted for temporary employees. In the lawsuit, Ms. Barahona, on behalf of herself~~Company’s systems recovery efforts are complete, and the ~~putative class, seeks damages and penalties under California law, plus interest, attorneys’ fees, and costs, along with equitable remedies, alleging that she and~~Company’s operations are fully functional, the ~~putative class were the subject~~incident did result in a loss of unfair and unlawful business practices, including certain wage and hour violations relating to, among others, failure to provide meal and rest periods, failure to pay minimum wages and overtime, and failure to reimburse employees for work-related expenses. Ms. Barahona alleges that she was jointly employed by the staffing companies and Radiant and DBA. Radiant and DBA deny Ms. Barahona’s allegations in their entirety, deny that they are liable to Ms. Barahona or the putative class members in any way, and are vigorously defending against these allegations based upon a preliminary evaluation of applicable records and legal standards.

~~If Ms. Barahona’s allegations were to prevail on all claims the Company,~~revenue as well as ~~its co-defendants, could be liable for uninsured damages in~~certain incremental costs. In addition, following an ~~amount~~extensive forensic investigation by a full team of cybersecurity experts, the Company confirmed that ~~while not significant when evaluated against either~~some data extraction related to the Company’s ~~assets or current~~customers and ~~expected level of annual earnings, could be material when judged against~~employees occurred from the Company’s ~~earnings in~~servers before the ~~particular quarter in which any such damages arose, if at all. However, based upon the Company’s preliminary evaluation~~Company took its systems offline. We notified law enforcement, provided notice to customers apprising them of the ~~matter, it does not believe it is likely~~situation and are providing any notices that may be required by applicable law related to ~~incur material damages, if at all, since, among others: (i)~~potential Personal Identifiable Information (PII data) exposure. Although the ~~amount of~~Company acted promptly and as efficiently as possible any ~~potential damages remains highly speculative at this stage~~failure of the ~~proceedings; (ii)~~Company to comply with data privacy or other laws and regulations related to this event could result in claims, legal or regulatory proceedings, inquiries, or investigations. See Note 18 regarding the Company does not believe as a matter of law it should be characterized as Ms. Barahona’s employer and codefendant Accountabilities admitted to being the employer of record, (iii) wage and hour class actions of this nature typically settle for amounts significantly less than plaintiffs’ demands because of the uncertainly with litigation and the difficulty in taking these types of cases to trial; and (iv) Ms. Barahona has indicated her desire to resolve this matter through a mediated settlement. Ms. Barahona admitted in a report to the court that she is unable to prosecute the case because the payroll and personnel records she needs are in the possession of Tri-State and/or Accountabilities (“Debtors”), and the case has been stayed as to them pending resolution of their chapter 11 bankruptcy proceedings. In January 2016, the court held a status conference, which was continued multiple times so that the parties could attempt to obtain the necessary documents. DBA and the Company informally obtained all records within co-defendants’ bankruptcy estate through their trustee’s counsel; however, those records were incomplete and did not contain the requisite time, payroll and personnel records. Based on its belief that the debtors have additional records and in an effort to lift the bankruptcy “stay”, Ms. Barahona obtained the dismissal of the debtors without prejudice from the state court action. After extensions, the court set a new deadline of March 9, 2018, for Ms. Barahona to file her motion for class certification, and set a further status conference for April 17, 2018, to set a briefing schedule for the motion for class certification. The parties have also scheduled a mediation for April 26, 2018. At this time, the Company is unable to express an opinion as to the likely outcome of the matter.

ransomware incident.

Contingent Consideration and Earn-out Payments

The Company’s agreements with respect to previous acquisitions contain future consideration provisions, which provide for the selling equity owners to receive additional consideration if specified operating objectives and financial results are achieved in future ~~periods, as defined in their respective agreements. Any changes to the fair value of the contingent consideration are recorded in the condensed consolidated statements of operations.~~ periods. Earn-out payments are generally due annually on November 1st and 90 days following the quarter of the final earn-out period for each respective acquisition.

The following table represents the estimated ~~undiscounted~~discounted earn-out payments to be paid in each of the following fiscal years:


(In thousands)	2023 (remaining)		2024		2025		Total
Earn-out payments:
Cash	$	342	$	3,880	$	1,105	$	5,327

Total estimated earn-out payments	$	342	$	3,880	$	1,105	$	5,327

(In thousands)

2018 (remaining)

2019

2020

2021

2022

Total

Earn-out payments:

Cash

$
817

$
1,399

$
1,202

$
875

$
188

$
4,481

Equity⁽¹⁾

559

375

309

292

62

1,597

Total estimated earn-out
payments

$
1,376

$
1,774

$
1,511

$
1,167

$
250

$
6,078

~~(1)~~

~~The Company generally has the right but not the obligation to satisfy a portion of the earn-out payments in stock.~~

NOTE 1316 – OPERATING AND GEOGRAPHIC SEGMENT INFORMATION

Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker or decision-making group in making decisions regarding allocation of resources and assessing performance. The Company’s chief operating decision-maker is the Chief Executive Officer. The Company has two operating and reportable segments: United States and Canada. ~~Immaterial operations outside of the United States and Canada are reported in the United States segment.~~

The Company evaluates the performance of the segments primarily based on their respective revenues ~~net revenues~~ and income from operations. ~~Accordingly, capital expenditures and total assets are not reported in segment results.~~ In addition, the Company ~~has disclosed a corporate segment, which is not an operating segment and~~ includes the costs of the Company’s executives, board of directors, professional services, such as legal and consulting, amortization of ~~acquired~~ intangible assets, and certain other corporate costs associated with operating as a public ~~company. Intercompany transactions have been eliminated~~company as Corporate.


As of and for the Three Months Ended December 31, 2022						Corporate/
(In thousands)	United States			Canada		Eliminations			Total
Revenues	$	237,791		$	40,386	$	(58	)	$	278,119
Income (loss) from operations		8,264			5,370		(6,490	)		7,144
Other income (expense)		(162	)		189		(786	)		(759	)
Income (loss) before income taxes		8,102			5,559		(7,276	)		6,385
Depreciation and amortization		1,611			811		4,492			6,914
Total assets		358,179			111,680		—			469,859
Property, technology, and equipment, net		10,086			13,577		—			23,663
Goodwill		68,991			19,933		—			88,924

As of and for the Three Months Ended December 31, 2021	United States			Canada		Corporate/ Eliminations			Total
(In thousands)	(as restated)								(as restated)
Revenues	$	297,701		$	39,040	$	(963	)	$	335,778
Income (loss) from operations		10,338			3,844		(4,126	)		10,056
Other income (expense)		122			73		(1,123	)		(928	)
Income (loss) before income taxes		10,460			3,917		(5,249	)		9,128
Depreciation and amortization		1,095			893		2,459			4,447
Total assets		437,674			86,480		—			524,154
Property, technology, and equipment, net		12,933			13,212		—			26,145
Goodwill		64,561			21,364		—			85,925

As of and for the Six Months Ended December 31, 2022						Corporate/
(In thousands)	United States			Canada		Eliminations			Total
Revenues	$	527,809		$	81,536	$	(255	)	$	609,090
Income from operations		20,291			10,806		(13,058	)		18,039
Other income (expense)		150			350		(878	)		(378	)
Income before income taxes		20,441			11,156		(13,936	)		17,661
Depreciation and amortization		3,137			1,569		8,987			13,693
Total assets		358,179			111,680		—			469,859
Property, technology, and equipment, net		10,086			13,577		—			23,663
Goodwill		68,991			19,933		—			88,924

As of and for the Six Months Ended December 31, 2021	United States			Canada		Corporate/ Eliminations			Total
(In thousands)	(as restated)								(as restated)
Revenues	$	561,338		$	74,819	$	(981	)	$	635,176
Income from operations		22,057			7,254		(8,793	)		20,518
Other income (expense)		321			162		(1,776	)		(1,293	)
Income before income taxes		22,378			7,416		(10,569	)		19,225
Depreciation and amortization		2,030			1,691		4,981			8,702
Total assets		437,674			86,480		—			524,154
Property, technology, and equipment, net		12,933			13,212		—			26,145
Goodwill		64,561			21,364		—			85,925

NOTE 17 – BUSINESS COMBINATION

Fiscal Year 2023 Acquisition

On October 1, 2022, the Company, through its wholly-owned subsidiary, acquired the assets and operations of its of Cascade Enterprises of Minnesota, Inc. (“Cascade”) a Minneapolis, Minnesota based, privately held company that has operated as a strategic operating partner under the Company’s Airgroup brand since 2007. Cascade will continue to operate under the Airgroup brand through the remainder of 2022 and is expected to transition to the Radiant brand in early 2023 as Cascade is combined with existing Company-owned operations in Minneapolis and will be able to leverage the Company’s GTM platform to strengthen our purchase order and vendor management service offering. As consideration for the acquisition, the Company paid $3,250 in cash upon closing, and the seller is entitled to additional contingent consideration payable in subsequent periods based on future performance of the acquired operation.

The following table summarizes the fair value of the consideration transferred for the acquisition and the preliminary allocation of the purchase price to the fair values of the assets acquired and liabilities assumed at the acquisition date:


(In thousands)	Preliminary Purchase Price Allocation
Cash	$	3,250
Contingent consideration		1,987
Deposits and other assets		3
Operating lease right-of-use asset		34
Intangible assets		3,468
Operating lease liability		(34	)

Total identifiable net assets		3,471
Goodwill		1,766
	$	5,237

The fair values of the intangible assets were estimated by the Company with the assistance of valuation specialists. The fair value was estimated using a discounted cash flow approach with Level 3 inputs. Under this method, an intangible asset’s fair value is equal to the present value of the incremental after-tax cash flows (excess earnings) attributable solely to the intangible asset over its remaining useful life. To calculate fair value, the Company used risk-adjusted cash flows discounted at rates considered appropriate given the inherent risks associated with each type of asset. The Company believes the level and timing of cash flows appropriately reflect market participant assumptions. The goodwill is recorded in the U.S. operating segment and is expected to be deductible for income tax purposes over a period of ten years.

Intangible assets acquired and their respective useful lives are estimated as follows:


(In thousands)	Preliminary Purchase Price Allocation		Useful Life
Customer related	$	3,468	10 years
		3,468

After management’s review of post-acquisition integration, it was determined that the leased facility had no future economic benefit to the Company. Due to current market conditions subleasing the space was deemed unlikely; as a result, management determined it was necessary to abandon the lease. For the three and six months ended December 31, 2022, a lease abandonment charge of $30 is recognized in the condensed consolidated ~~balance sheets and~~ statements of ~~operations.~~comprehensive income.

The two-month results of operations from Cascade were included in the condensed consolidated financial statements. However, they were immaterial and thus no proforma presentation was necessary.

Fiscal Year 2022 Acquisition

On December 3, 2021, and effective as of November 30, 2021, the Company entered into a Stock Purchase Agreement, pursuant to which it acquired all of the issued and outstanding common shares of Navegate, Inc. (“Navegate”), a Minnesota based, privately held company from Saltspring Capital, LLC. Navegate is a technology-enabled supply chain management and third-party logistics services company that combines a robust digital platform and decades of expertise to manage international, cross-border, and domestic freight from purchase order to final delivery. Navegate’s combination of technology-enabled services, customs brokerage expertise, and a full complement of international and domestic services significantly reduces costs and leads to better compliance and risk mitigation for its customers. Navegate will operate as a wholly-owned subsidiary of Radiant Logistics, Inc. The goodwill recognized is attributable to expanded service lines and geographic footprint. The acquisition of Navegate was accounted for as purchases of a business under ASC 805, Business Combinations.

As consideration for the acquisition, the Company paid $35,000 in cash upon closing. The transaction was financed through proceeds received from the Company's existing credit facility. A net working capital settlement of $3,852 was finalized in the third quarter of fiscal year 2022 and was paid to Saltspring Capital, LLC. The aggregate purchase price of $38,852 was allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the date of the acquisition.

Three Months Ended December 31, 2017 (in thousands):

United States

Canada

Corporate/
Eliminations

Total

Revenues

$
179,503

$
27,634

$
(423
)

$
206,714

Net revenues

40,807

7,061

—

47,868

Income (loss) from operations

5,809

1,140

(4,131
)

2,818

Other income (expense)

80

(39
)

(802
)

(761
)
Income (loss) before income tax provision

5,889

1,101

(4,933
)

2,057

Depreciation and amortization

414

452

2,701

3,567

Technology and equipment, net

12,496

3,453

182

16,131

Transition and lease termination liability

446

1,256

—

1,702

Goodwill

43,991

21,398

—

65,389

Three Months Ended December 31, 2016 (in thousands):

Revenues

$
175,211

$
25,096

$
(1,426
)

$
198,881

Net revenues

44,778

5,346

—

50,124

Income (loss) from operations

7,249

1,623

(4,447
)

4,425

Other income (expense)

251

53

(614
)

(310
)
Income (loss) before income tax provision

7,500

1,676

(5,061
)

4,115

Depreciation and amortization

605

156

2,267

3,028

Technology and equipment, net

10,559

1,182

912

12,653

Transition and lease termination costs

385

—

—

385

Transition and lease termination liability

638

1,317

—

1,955

Goodwill

42,984

19,904

—

62,888

Six Months Ended December 31, 2017 (in thousands):

United States

Canada

Corporate/
Eliminations

Total

Revenues

$
354,395

$
51,201

$
(905
)

$
404,691

Net revenues

81,390

12,626

—

94,016

Income (loss) from operations

12,117

870

(7,936
)

5,051

Other income (expense)

233

(146
)

(1,566
)

(1,479
)
Income (loss) before income tax provision

12,350

724

(9,502
)

3,572

Depreciation and amortization

1,063

742

5,337

7,142

Technology and equipment, net

12,496

3,453

182

16,131

Transition and lease termination costs

107

—

—

107

Transition and lease termination liability

446

1,256

—

1,702

Goodwill

43,991

21,398

—

65,389

Six Months Ended December 31, 2016 (in thousands):

Revenues

$
346,890

$
49,898

$
(2,774
)

$
394,014

Net revenues

88,974

10,159

—

99,133

Income (loss) from operations

13,843

2,562

(8,614
)

7,791

Other income (expense)

597

101

(1,248
)

(550
)
Income (loss) before income tax provision

14,440

2,663

(9,862
)

7,241

Depreciation and amortization

1,191

320

4,523

6,034

Technology and equipment, net

10,559

1,182

912

12,653

Transition and lease termination costs

862

—

—

862

Transition and lease termination liability

638

1,317

—

1,955

Goodwill

42,984

19,904

—

62,888

The following table summarizes the fair value of the consideration transferred for the acquisition and the allocation of the purchase price to the fair values of the assets acquired and liabilities assumed at the acquisition date:


(In thousands)	Purchase Price Allocation		Adjustments		Final Purchase Price Allocation
Cash	$	35,000	$	—	$	35,000
Net working capital adjustment		—		3,852		3,852


Current assets		19,187			—		19,187
Technology and equipment		1,434			—		1,434
Intangible assets		17,834			1,188		19,022
Other long-term assets		1,621			—		1,621
Liabilities assumed		(18,836	)		—		(18,836	)

Total identifiable net assets		21,240			1,188		22,428
Goodwill		13,760			2,664		16,424
	$	35,000		$	3,852	$	38,852

Intangible assets acquired and their respective useful lives are estimated as follows:


(In thousands)	Purchase Price Allocation		Adjustments		Final Purchase Price Allocation		Useful Life
Customer related	$	12,392	$	910	$	13,302	14.9 years
Developed technology		3,942		149		4,091	4.9 years
Trade name		1,500		129		1,629	9.9 years
	$	17,834	$	1,188	$	19,022

Navegate results were immaterial to the condensed consolidated financial statements and thus no proforma presentation was necessary.

NOTE 18 – RANSOMWARE INCIDENT

The Company filed an 8-K on December 13, 2021, disclosing some of the Company’s systems were affected by a ransomware incident that encrypted information on its systems and disrupted customer and employee access to its applications and services. The Company immediately took steps to isolate the impact and prevent additional systems from being affected, including taking its network offline as a precaution. Promptly upon our detection of this incident, we initiated response and containment protocols and our security teams, supplemented by leading cyber defense firms, worked to remediate this incident. We notified law enforcement, contacted our customers to apprise them of the situation and will provide any notices that may be required by applicable law.

We undertook extensive efforts to identify, contain and recover from this incident quickly and securely. We systematically brought our information systems back online in a controlled, phased approach. Our teams worked to maintain our business operations and minimize the impact on our customers, operating partners, and employees.

NOTE 1419 – SUBSEQUENT ~~EVENT~~EVENTS

OnLease

In January ~~12, 2018,~~2023, the ~~Company’s board~~Company entered into an agreement to lease an additional floor at its office in Renton, Washington. The lease term expires in November 2033. The total undiscounted future lease payments for the lease is approximately $2,092.

Table of directors declared a cash dividend to holders of the Series A Preferred Shares in the amount of $0.609375 per share. The declared dividend totaled $511 and was paid on January 31, 2018.Contents

Item 2. M~~anagement’s~~Management’s Discussion and Analysis of Financial Condition and Results of Operations

CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS

This report contains “forward-looking statements” within the meaning set forth in United States securities laws and regulations – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business, financial performance and financial condition, and often contain words such as “anticipate,” “believe,” “estimates,” “expect,” “future,” “intend,” “may,” “plan,” “see,” “seek,” “strategy,” or “will” or the negative thereof or any variation thereon or similar terminology or expressions. These forward-looking statements are not guarantees and are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. We have developed our forward-looking statements based on management’s beliefs and assumptions, which in turn rely upon information available to them at the time such statements were made. Such forward-looking statements reflect our current perspectives on our business, future performance, existing trends and information as of the date of this report. These include, but are not limited to, our beliefs about future revenue and expense levels, growth rates, prospects related to our strategic initiatives and business strategies, along with express or implied assumptions about, among other things: our continued relationships with our strategic operating partners; the performance of our historic business, as well as the businesses we have recently acquired, at levels consistent with recent trends and reflective of the synergies we believe will be available to us as a result of such acquisitions; our ability to successfully integrate our recently acquired businesses; our ability to locate suitable acquisition opportunities and secure the financing necessary to complete such acquisitions; ~~the occurrence of no adverse developments affecting domestic and international economic, political or competitive conditions within our industry;~~ transportation costs remaining in-line with recent levels and expected trends; our ability to mitigate, to the best extent possible, our dependence on current management and certain ~~of our~~ larger strategic operating partners; our compliance with financial and other covenants under our indebtedness; the absence of any adverse laws or governmental regulations affecting the transportation industry in general, and our operations in particular; the impact of COVID-19 on our operations and financial results; continued disruptions in the global supply chain; higher inflationary pressures particularly surrounding the costs of fuel; potential adverse legal, reputational and financial effects on the Company resulting from the ransomware incident or future cyber incidents and the effectiveness of the Company’s business continuity plans in response to cyber incidents, like the ransomware incident; the commercial, reputational and regulatory risks to our business that may arise as a consequence of our need to restate our financial statements; our longer-term relationship with our senior lenders as a consequence of our need to restate our financial statements; our temporary loss of the use of a Registration Statement on Form S-3 to register securities in the future; any disruption to our business that may occur on a longer-term basis should we be unable to remediate during fiscal year 2023 certain material weaknesses in our internal controls over financial reporting, and such other factors that may be identified from time to time in our Securities and Exchange Commission (“SEC”) filings and other public announcements including those set forth under the caption “Risk Factors” in ~~our Form 10-K for~~Part 1 Item 1A of this report. In addition, the ~~year ended June 30, 2017.~~global economic climate and additional or unforeseen effects from the COVID-19 pandemic amplify many of these risks. All subsequent written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by the foregoing. Readers are cautioned not to place undue reliance on our forward-looking statements, as they speak only as of the date made. We disclaim any obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

The following discussion and analysis of our financial condition and result of operations should be read in conjunction with the condensed consolidated financial statements and the related notes and other information included elsewhere in this report.

Overview

We operate as a third-party logistics company, providing multi-modal transportation and logistics services primarily in the United States and Canada. We service a large and diversified account base consisting of consumer goods, food and beverage, manufacturing and retail customers, which we support from an extensive network of ~~over 100~~ operating locations ~~(including 20 Company-owned offices)~~ across North America as well as an integrated international service partner network located in other key markets around the globe. We provide these services through a multi-brand network, which includes over 100 operating locations. Included in these operating locations are a number of independent agents, who we also refer to as our “strategic operating partners”, that operate exclusively on our behalf, and approximately 25 Company-owned offices. As a third-party logistics company, we have a vast carrier network of ~~approximately 10,000~~ asset-based transportation companies, including motor carriers, railroads, airlines and ocean ~~lines.~~lines in our carrier network. We believe shippers value our services because we are able to objectively arrange the most efficient and cost-effective means, type and provider of transportation service without undue influence caused by the ownership of transportation assets. In addition, our minimal investment in physical assets affords us the opportunity for a higher return on invested capital and net cash flows than our asset-based competitors.

Through our operating locations across North America, we offer domestic, ~~and~~ international air and ocean freight forwarding services and freight brokerage services, including truckload services, ~~less-than-truckload~~LTL services, and intermodal services, which is the movement of freight in trailers or containers by combination of truck and rail. Our primary business operations involve arranging the shipment, on behalf of our customers, of materials, products, equipment and other goods that are generally larger than shipments handled by integrated carriers of primarily small parcels, such as FedEx, DHL and UPS. Our services include arranging and monitoring all aspects of material flow activity utilizing advanced information technology systems. We also provide other value-added logistics services, including ~~customs brokerage and~~ materials management and distribution ~~solutions~~(“MM&D”) services, customs house brokerage (“CHB”) services and technology platforms to complement our core transportation service offering.

~~We expect~~The Company expects to grow ~~our~~its business organically and by completing acquisitions of other companies with complementary ~~geographic~~geographical and logistics service offerings. ~~Our~~The Company’s organic growth strategy will continue to focus on strengthening existing and expanding new customer relationships leveraging the benefit of ~~our~~the Company’s truck brokerage and intermodal service offerings, while continuing ~~our~~its efforts on the organic build-out of ~~our~~the Company’s network of strategic operating partner locations. In addition, as the Company continues to ~~our~~grow and scale its business, the Company believes that it is creating density in its trade lanes, which creates opportunities for the Company to more efficiently source and manage its transportation capacity.

In addition to its focus on organic growth, wethe Company will continue to search for acquisition candidates that bring ~~to our current platform a~~ critical mass from a geographic ~~and/or~~and purchasing power standpoint, along with providing complementary service ~~offerings.~~offerings to the current platform. As ~~we continue~~the Company continues to grow and scale ~~our~~its business, ~~we believe that we are creating density in our trade lanes which creates opportunities for us to more efficiently source and manage our transportation capacity. In addition, we remain~~it also remains focused on leveraging ~~our~~its back-office infrastructure and technology systems to drive productivity improvement across the organization.

Impact of Notable External Conditions

The COVID-19 pandemic continues to impact our business operations and financial results. Although the effects have lessened over time, there is uncertainty in the nature and degree of its continued effects over time with new strains frequently being discovered and additional booster shots being recommended. As the world continues to respond to COVID-19, we continue to follow guidelines ensuring the safety of our employees, while striving to protect the health and well-being of the communities in which we operate.

Additionally, the transportation industry is faced with economic inflation and possible recession. A prolonged period of inflation could result in increased interest rates, higher fuel prices, and decreased consumer spending, which could have a negative impact on our business and financial results. The results of these impacts could include supply chain instability, longer lead times, delayed orders, and continued issues with capacity constraints in driver, truck, and shipping container availability.

Lastly, since Russia’s invasion of Ukraine, global supply chains have experienced increased fuel prices. While the Company does not have direct exposure to these geographies, we cannot predict how global supply chain activities, or the economy at large may be impacted by a prolonged war in Ukraine or sanctions imposed in response to the war.

Performance Metrics

Our principal source of income is derived from freight forwarding and freight brokerage services we provide to our customers. As a third-party logistics provider, we arrange for the shipment of our customers’ freight from point of origin to point of destination. Generally, we quote our customers a turnkey cost for the movement of their freight. Our price quote will often depend upon the customer’s time-definite needs (first day through fifth day delivery), special handling needs (heavy equipment, delicate items, environmentally sensitive goods, electronic components, etc.), and the means of transport (motor carrier, air, ocean or rail). In turn, we assume the responsibility for arranging and paying for the underlying means of transportation.

Our transportation revenue represents the total dollar value of services we sell to our customers. Our cost of transportation includes direct costs of transportation, including motor carrier, air, ocean, and rail services. Our ~~net~~adjusted transportation ~~revenue~~gross profit (gross transportation revenue less the direct cost of transportation) is the primary indicator of our ability to source, add value and resell services provided by ~~third-parties,~~third parties, and is considered by management to be a key performance measure. In addition, management believes measuring its operating costs as a function of ~~net~~adjusted transportation ~~revenue~~gross profit provides a useful metric, as our ability to control costs as a function of ~~net~~adjusted transportation ~~revenue~~gross profit directly impacts operating earnings.

Our operating results will be affected as acquisitions occur. Since all acquisitions are made using the ~~purchase~~acquisition method of accounting for business combinations, our financial statements will only include the results of operations and cash flows of acquired companies for periods subsequent to the date of acquisition.

Adjusted gross profit, a non-GAAP financial measure, is our total revenue minus our total cost of transportation and other services (excluding depreciation and amortization, which are reported separately) and adjusted gross profit percentage is adjusted gross profit as a percentage of our total revenue. We believe that these provide investors meaningful information to understand our results of operations and the ability to analyze financial and business trends on a period-to-period basis.

Our GAAP-based net income will be affected by non-cash charges relating to the amortization of customer related intangible assets and other intangible assets attributable to completed acquisitions. Under applicable accounting standards, purchasers are required to allocate the total consideration in a business combination to the identified assets acquired and liabilities assumed based on their fair values at the time of acquisition. The excess of the consideration paid over the fair value of the identifiable net assets acquired is to be allocated to goodwill, which is tested at least annually for impairment. Applicable accounting standards require that we separately account for and value certain identifiable intangible assets based on the unique facts and circumstances of each acquisition. As a result of our acquisition strategy, our net income will include material non-cash charges relating to the amortization of customer related intangible assets and other intangible assets acquired in our acquisitions. Although these charges may increase as we complete more acquisitions, we believe we will be growing the value of our intangible assets (e.g., customer relationships). Thus, we believe that earnings before interest, taxes, depreciation and amortization, or EBITDA, is a useful financial measure for investors because it eliminates the effect of these non-cash costs and provides an important metric for our business.

EBITDA is a non-GAAP measure of income and does not include the effects of ~~preferred stock dividends,~~ interest, ~~and~~ taxes, and excludes the ~~“non-cash”~~non-cash effects of depreciation and amortization on long-term assets. Companies have some discretion as to which elements of depreciation and amortization are excluded in the EBITDA calculation. We exclude all depreciation charges related to property, technology, and equipment and all amortization charges (including amortization of leasehold improvements). We then further adjust EBITDA to exclude changes in fair value of contingent consideration, expenses specifically attributable to acquisitions, ~~severance~~transition and lease termination costs, foreign ~~exchange~~currency transaction gains and losses, ~~extraordinary items,~~ share-based compensation expense, ~~non-recurring~~ litigation expenses ~~materials management and distribution (“MM&D”) start-up costs~~unrelated to our core operations, and other non-cash charges. ~~Adjusted EBITDA is then normalized by excluding non-recurring transition costs.~~ While management considers EBITDA ~~adjusted EBITDA,~~ and ~~normalized~~ adjusted EBITDA useful in analyzing our results, it is not intended to replace any presentation included in our condensed consolidated financial statements. The Company’s financial covenants with its lenders define an adjusted EBITDA as a key component of its covenant calculations. The Company’s ability to grow adjusted EBITDA is closely monitored by management as it’s directly tied to financial borrowing capacity and also is a frequent point of discussion with its investors as well as the Company’s earnings calls.

Our operating results are also subject to seasonal trends when measured on a quarterly basis. The impact of seasonality on our business will depend on numerous factors, including the markets in which we operate, holiday seasons, consumer demand, and economic conditions. Since our revenue is largely derived from customers whose shipments are dependent upon consumer demand and just-in-time production schedules, the timing of our revenue is often beyond our control. Factors such as shifting demand for retail goods and/or manufacturing production delays could unexpectedly affect the timing of our revenue. As we increase the scale of our operations, seasonal trends in one area of our business may be offset to an extent by opposite trends in another area. We cannot accurately predict the timing of these factors, nor can we accurately estimate the impact of any particular factor, and thus we can give no assurance any historical seasonal patterns will continue in future periods.

Results of Operations

Three months ended December 31, ~~2017~~2022 and ~~2016 (actual and unaudited)~~2021 (unaudited)

The following table summarizes ~~transportation revenue,~~revenues, cost of transportation and ~~net transportation revenue~~other services, and adjusted gross profit by ~~geographic~~reportable operating segments for the three months ended December 31, ~~2017~~2022 and ~~2016 (in thousands):~~2021:

Three Months Ended December 31, 2017

Three Months Ended December 31, 2016

United States

Canada

Corporate/
Eliminations

Total

United States

Canada

Corporate/
Eliminations

Total

Transportation revenue

Forwarding

$
147,096

$
1,211

$
(297
)

$
148,010

$
142,906

$
423

$
(121
)

$
143,208

Brokerage

31,680

23,470

(126
)

55,024

31,317

23,740

(1,305
)

53,752

178,776

24,681

(423
)

203,034

174,223

24,163

(1,426
)

196,960

Cost of transportation

Forwarding

109,474

945

(297
)

110,122

101,781

242

(121
)

101,902

Brokerage

29,222

19,628

(126
)

48,724

28,652

19,508

(1,305
)

46,855

138,696

20,573

(423
)

158,846

130,433

19,750

(1,426
)

148,757

Net transportation revenue

Forwarding

37,622

266

—

37,888

41,125

181

—

41,306

Brokerage

2,458

3,842

—

6,300

2,665

4,232

—

6,897

40,080

4,108

—

44,188

43,790

4,413

—

48,203

Net transportation margins

22.4
%

16.6
%

21.8
%

25.1
%

18.3
%

24.5
%

Other value-added services

727

2,953

—

3,680

988

933

—

1,921

Net revenues

$
40,807

$
7,061

$
—

$
47,868

$
44,778

$
5,346

$
—

$
50,124


	Three Months Ended December 31, 2022												Three Months Ended December 31, 2021
(In thousands)	United States			Canada			Corporate/ Eliminations			Total			United States			Canada			Corporate/ Eliminations			Total
													(as restated)									(as restated)
Revenues
Transportation	$	233,432		$	29,803		$	(58	)	$	263,177		$	295,194		$	31,430		$	(963	)	$	325,661
Value-added services		4,359			10,583			—			14,942			2,507			7,610			—			10,117
		237,791			40,386			(58	)		278,119			297,701			39,040			(963	)		335,778
Cost of transportation and other services
Transportation		175,622			22,923			(58	)		198,487			235,263			26,543			(963	)		260,843
Value-added services		587			5,017			—			5,604			1,746			2,051			—			3,797
		176,209			27,940			(58	)		204,091			237,009			28,594			(963	)		264,640
Adjusted gross profit (1)
Transportation		57,810			6,880			—			64,690			59,931			4,887			—			64,818
Value-added services		3,772			5,566			—			9,338			761			5,559			—			6,320
	$	61,582		$	12,446		$	—		$	74,028		$	60,692		$	10,446		$	—		$	71,138
Adjusted gross profit percentage
Transportation		24.8	%		23.1	%	N/A				24.6	%		20.3	%		15.5	%	N/A				19.9	%
Value-added services		86.5	%		52.6	%	N/A				62.5	%		30.4	%		73.0	%	N/A				62.5	%

(1) Adjusted gross profit is revenues net of cost of transportation and other services.

~~Forwarding~~Transportation revenue was ~~$148.0~~$263.2 million and ~~$143.2~~$325.7 million for the three months ended December 31, ~~2017~~2022 and ~~2016,~~2021, respectively. The ~~increase~~decrease of ~~$4.8~~$62.5 million, or ~~3.4%,~~19.2% is primarily attributable to ~~increased project revenues by certain strategic operating partners and increases due to recent acquisitions. Forwarding net~~a significant decrease in ocean rates. Adjusted transportation ~~revenue~~gross profit was ~~$37.9~~$64.7 million and $41.3 million for three months ended December 31, 2017 and 2016, respectively. The decrease of $3.4 million, or 8.2%, was offset by a corresponding reduction in operating partner commissions. Net forwarding transportation margins decreased from 28.8% to 25.6%, primarily due to competitive market dynamics and shifts in product mix, including a higher than normal frequency of air charters and other significant project work which carried a lower margin than the balance of our forwarding service offerings.

~~Brokerage revenue was $55.0 million and $53.8~~$64.8 million for the three months ended December 31, ~~2017~~2022 and ~~2016,~~2021, respectively. ~~The increase~~Net transportation

Table of $1.2 million, or 2.2%Contents

margins increased from 19.9% to 24.6%, is primarily ~~attributable to higher revenues per shipment passed through to customers~~ due to ~~capacity constraints. Brokerage net transportation~~a higher mix of domestic and international shipments, which have higher gross profit margin characteristics than ocean shipments.

Value-added services revenue was ~~$6.3~~$14.9 million and ~~$6.9~~$10.1 million, for the three months ended December 31, ~~2017~~2022 and ~~2016,~~2021, respectively. ~~Net brokerage transportation margins decreased from 12.8%~~The increase of $4.8 million, or 47.7%, is primarily attributed to ~~11.4%, primarily due to competitive market dynamics that resulted~~the recent acquisition of Navegate as well as increases in ~~margin compression.~~

~~Other value added~~the value-added services ~~were $3.7~~associated with our Canada segment. Adjusted value-added services gross profit was $9.3 million for the three months ended December 31, ~~2017,~~2022, compared to ~~$1.9~~$6.3 million for the comparable prior year ~~period~~period. Adjusted value-added services gross profit percentage remains unchanged at 62.5%. ~~The increase was primarily attributable to the acquisition of Lomas Logistics (“Lomas”) in April~~ ~~2017.~~

~~The following table compares condensed consolidated statements of operations data by operating segment for the three months ended December 31, 2017 and 2016 (in thousands):~~

Three Months Ended December 31, 2017

Three Months Ended December 31, 2016

United States

Canada

Corporate/
Eliminations

Total

United States

Canada

Corporate/
Eliminations

Total

Net revenues

$
40,807

$
7,061

$
—

$
47,868

$
44,778

$
5,346

$
—

$
50,124

Operating partner commissions

19,528

—

—

19,528

22,957

—

—

22,957

Personnel costs

10,637

3,514

758

14,909

9,623

2,602

729

12,954

Selling, general and administrative expenses

4,419

1,955

482

6,856

3,959

965

645

5,569

Depreciation and amortization

414

452

2,701

3,567

605

156

2,267

3,028

Transition and lease termination costs

—

—

—

—

385

—

—

385

Change in contingent consideration

—

—

190

190

—

—

806

806

Total operating expenses

34,998

5,921

4,131

45,050

37,529

3,723

4,447

45,699

��

Income (loss) from operations

5,809

1,140

(4,131
)

2,818

7,249

1,623

(4,447
)

4,425

Other income (expense)

80

(39
)

(802
)

(761
)

251

53

(614
)

(310
)

Income (loss) before income tax provision

5,889

1,101

(4,933
)

2,057

7,500

1,676

(5,061
)

4,115

Income tax benefit (expense)

—

—

1,840

1,840

—

—

(1,489
)

(1,489
)

Net income (loss)

5,889

1,101

(3,093
)

3,897

7,500

1,676

(6,550
)

2,626

Less: Net income attributable to non-controlling interest

(56
)

—

—

(56
)

(16
)

—

—

(16
)

Net income (loss) attributable to Radiant Logistics, Inc.

5,833

1,101

(3,093
)

3,841

7,484

1,676

(6,550
)

2,610

Less: Preferred stock dividends

—

—

(511
)

(511
)

—

—

(511
)

(511
)

Net income (loss) attributable to common stockholders

$
5,833

$
1,101

$
(3,604
)

$
3,330

$
7,484

$
1,676

$
(7,061
)

$
2,099

Three Months Ended December 31, 2017

Three Months Ended December 31, 2016

Operating expenses as a percent of
net revenue:

United States

Canada

Corporate/
Eliminations

Total

United States

Canada

Corporate/
Eliminations

Total

Operating partner commissions

47.9
%

0.0
%

N/A

40.8
%

51.3
%

0.0
%

N/A

45.8
%
Personnel costs

26.1
%

49.8
%

N/A

31.1
%

21.5
%

48.7
%

N/A

25.8
%
Selling, general and administrative
expenses

10.8
%

27.7
%

N/A

14.3
%

8.8
%

18.1
%

N/A

11.1
%

Operating partner commissions decreased $3.5 million, or 14.9%, to $19.5 million for the three months ended December 31, 2017 primarily due to a decrease in net forwarding transportation revenues, as well as the acquisition of Dedicated Logistics Technologies, Inc. (“DLT”), which operated as a strategic operating partner in the comparable prior year period.

~~Personnel costs increased $1.9 million, or 15.1%, to $14.9 million for the three months ended December 31, 2017. The increase is primarily due to the acquisitions of Lomas and DLT.~~

Selling, general and administrative (“SG&A”) expenses increased $1.3 million, or 23.1%, to $6.9 million for the three months ended December 31, 2017. The increase is primarily attributable to higher facilities, technology and communications costs associated with the acquisitions of Lomas and DLT.

Depreciation and amortization costs increased $0.6 million, or 17.8%, to $3.6 million for the three months ended December 31, 2017, primarily due to increased amortization associated with recent acquisitions.

~~Transition and lease termination costs decreased $0.4 million.~~ The comparable prior year period amount represents non-recurring personnel costs for Service by Air, Inc. (“SBA”) that were identified for elimination in connection with the winding down of SBA’s historical back-office operations.

~~Change in contingent consideration represents the change in the fair value of contingent consideration due to former shareholders of~~ acquired operations. The change in the current period is primarily attributable to an increase in management’s estimates of future earn-out payments through the remainder of the respective earn-out periods.

~~Other expenses increased $0.5 million, or 145.5%, to $0.8 million for the three months ended December 31, 2017. The increase is primarily due to interest expense attributable to borrowings used to fund recent acquisitions, as well as increases in foreign exchange losses.~~

~~Our change in net income is driven principally by~~ ~~decreased net revenues and decreased operating expenses, and increased other expenses compared to the comparable prior year period,~~ ~~partially offset by a decrease in income taxes.~~

Our future financial results may be impacted by amortization of intangibles resulting from acquisitions as well as gains or losses from changes in contingent consideration that are difficult to predict.

The following table provides a reconciliation for the three months ended December 31, ~~2017~~2022 and ~~2016~~2021 of ~~normalized~~adjusted gross profit to gross profit, the most directly comparable GAAP measure:


(In thousands)	Three Months Ended December 31,
Reconciliation of adjusted gross profit to GAAP gross profit	2022			2021
				(as restated)
Revenues	$	278,119		$	335,778
Cost of transportation and other services (exclusive of depreciation and amortization, shown separately below)		(204,091	)		(264,640	)
Depreciation and amortization		(3,585	)		(3,332	)
GAAP gross profit	$	70,443		$	67,806
Depreciation and amortization		3,585			3,332
Adjusted gross profit	$	74,028		$	71,138

GAAP gross margin (GAAP gross profit as a percentage of revenues)		25.3	%		20.2	%
Adjusted gross profit percentage (adjusted gross profit as a percentage of revenues)		26.6	%		21.2	%

The following table compares condensed consolidated statements of comprehensive income data by reportable operating segments for the three months ended December 31, 2022 and 2021:


	Three Months Ended December 31, 2022											Three Months Ended December 31, 2021
(In thousands)	United States			Canada		Corporate/ Eliminations			Total			United States			Canada		Corporate/ Eliminations			Total
												(as restated)					(as restated)			(as restated)
Adjusted gross profit (1)	$	61,582		$	12,446	$	—		$	74,028		$	60,692		$	10,446	$	—		$	71,138

Operating expenses:
Operating partner commissions		30,512			—		—			30,512			31,169			—		—			31,169
Personnel costs		16,051			4,379		211			20,641			12,582			3,994		83			16,659
Selling, general and administrative expenses		5,114			1,886		1,637			8,637			5,508			1,715		1,129			8,352
Depreciation and amortization		1,611			811		4,492			6,914			1,095			893		2,459			4,447
Transition, lease termination, and other costs		30			—		—			30			—			—		—			—
Change in fair value of contingent consideration		—			—		150			150			—			—		455			455

Total operating expenses		53,318			7,076		6,490			66,884			50,354			6,602		4,126			61,082

Income (loss) from operations		8,264			5,370		(6,490	)		7,144			10,338			3,844		(4,126	)		10,056
Other (expense) income		(162	)		189		(786	)		(759	)		122			73		(1,123	)		(928	)

Income (loss) before income taxes		8,102			5,559		(7,276	)		6,385			10,460			3,917		(5,249	)		9,128
Income tax benefit (expense)		—			—		(1,460	)		(1,460	)		—			—		(2,513	)		(2,513	)

Net income (loss)		8,102			5,559		(8,736	)		4,925			10,460			3,917		(7,762	)		6,615
Less: net income attributable to non- controlling interest		(89	)		—		—			(89	)		(76	)		—		—			(76	)

Net income (loss) attributable to Radiant Logistics, Inc.	$	8,013		$	5,559	$	(8,736	)	$	4,836		$	10,384		$	3,917	$	(7,762	)	$	6,539


	Three Months Ended December 31, 2022										Three Months Ended December 31, 2021
Operating expenses as a percent of adjusted gross profit (1):	United States			Canada			Corporate/ Eliminations	Total			United States			Canada			Corporate/ Eliminations	Total
											(as restated)							(as restated)
Operating partner commissions		49.5	%		0.0	%	N/A		41.2	%		51.4	%		0.0	%	N/A		43.8	%
Personnel costs		26.1	%		35.2	%	N/A		27.9	%		20.7	%		38.2	%	N/A		23.4	%
Selling, general and administrative expenses		8.3	%		15.2	%	N/A		11.7	%		9.1	%		16.4	%	N/A		11.7	%
Depreciation and amortization		2.6	%		6.5	%	N/A		9.3	%		1.8	%		8.5	%	N/A		6.3	%

(1) Adjusted gross profit is revenues net of cost of transportation and other services.

Operating partner commissions decreased $0.7 million, or 2.1%, to $30.5 million for the three months ended December 31, 2022. The decrease is primarily due to a reduction in the number of strategic operating partners. As a percentage of adjusted gross profit, operating partner commissions decreased 260 basis points to 41.2% from 43.8% for the three months ended December 31, 2022 and 2021, respectively.

Personnel costs increased $4.0 million, or 23.9%, to $20.6 million for the three months ended December 31, 2022. The increase is primarily due to increased workforce supporting the expansion of business shipment volumes in both U.S. and Canada, and the inclusion of payroll associated with our acquisition of Navegate. As a percentage of adjusted gross profit, due to expansion of business volumes, and adjusted gross profit, personnel costs increased 448 basis points to 27.9% from 23.4% for the three months ended December 31, 2022 and 2021, respectively.

Selling, general and administrative (“SG&A”) expenses increased $0.3 million, or 3.4%, to $8.6 million for the three months ended December 31, 2022. The increase is primarily due to IT related initiatives, increased professional services fees, facilities costs, bank fees, and travel expenses. As a percentage of adjusted gross profit, SG&A remains unchanged at 11.7% for the three months ended December 31, 2022 and 2021, respectively.

Depreciation and amortization costs increased $2.5 million, or 55.5%, to $6.9 million for the three months ended December 31, 2022. The increase is primarily due to the acquisition of Navegate and the accelerated amortization of certain trade names resulting from the rebranding of certain trade names.

Our increase in net income is driven principally by increased adjusted gross profit, increased other income (expense), and partially offset by increased operating expenses compared to the comparable prior year period.

Our future financial results may be impacted by amortization of intangible assets resulting from acquisitions, gains or losses from changes in fair value of contingent consideration, and changes in fair value of interest rate swap contracts that are difficult to predict.

The following table provides a reconciliation for the three months ended December 31, 2022 and 2021 of adjusted EBITDA to net income (loss), the most directly comparable GAAP measure:


	Three Months Ended December 31, 2022												Three Months Ended December 31, 2021
(In thousands)	United States			Canada			Corporate/ Eliminations			Total			United States			Canada			Corporate/ Eliminations			Total
													(as restated)						(as restated)			(as restated)
Net income (loss) attributable to Radiant Logistics, Inc.	$	8,013		$	5,559		$	(8,736	)	$	4,836		$	10,384		$	3,917		$	(7,762	)	$	6,539
Income tax expense		—			—			1,460			1,460			—			—			2,513			2,513
Depreciation and amortization (2)		1,839			811			4,492			7,142			1,095			893			2,459			4,447
Net interest expense		—			—			683			683			—			—			745			745

EBITDA		9,852			6,370			(2,101	)		14,121			11,479			4,810			(2,045	)		14,244

Share-based compensation		443			69			167			679			369			53			—			422
Change in fair value of contingent consideration		—			—			150			150			—			—			455			455
Acquisition related costs		—			—			22			22			—			—			396			396
Ransomware incident related costs, net		—			—			—			—			—			—			751			751
Litigation costs		—			—			247			247			—			—			167			167
Transition, lease termination, and other costs		30			—			—			30			—			—			—			—
Change in fair value of interest rate swap contracts		—			—			104			104			—			—			378			378
Foreign currency transaction loss (gain)		185			(189	)		—			(4	)		(124	)		20			—			(104	)

Adjusted EBITDA	$	10,510		$	6,250		$	(1,411	)	$	15,349		$	11,724		$	4,883		$	102		$	16,709
Adjusted EBITDA as a % of adjusted gross profit (1)		17.1	%		50.2	%	N/A				20.7	%		19.3	%		46.7	%	N/A				23.5	%

(1) Adjusted gross profit is revenues net of cost of transportation and other services.

(2) Depreciation and amortization for the purposes of calculating adjusted EBITDA, a non-GAAP financial measure, ~~in accordance with SEC Regulation G (in thousands):~~includes depreciation expenses recognized on certain computer software as a service.

Three Months Ended December 31, 2017

Three Months Ended December 31, 2016

United States

Canada

Corporate/
Eliminations

Total

United States

Canada

Corporate/
Eliminations

Total

Net revenues

$
40,807

$
7,061

$
—

$
47,868

$
44,778

$
5,346

$
—

$
50,124

Net income (loss) attributable to common stockholders

$
5,833

$
1,101

$
(3,604
)

$
3,330

$
7,484

$
1,676

$
(7,061
)

$
2,099

Plus: Preferred stock dividends

—

—

511

511

—

—

511

511

Net income (loss) attributable to Radiant Logistics, Inc.

5,833

1,101

(3,093
)

3,841

7,484

1,676

(6,550
)

2,610

Income tax expense (benefit)

—

—

(1,840
)

(1,840
)

—

—

1,489

1,489

Depreciation and amortization

414

452

2,701

3,567

605

156

2,267

3,028

Net interest expense

—

—

802

802

—

—

614

614

EBITDA

6,247

1,553

(1,430
)

6,370

8,089

1,832

(2,180
)

7,741

Share-based compensation

221

35

124

380

240

2

87

329

Change in contingent consideration

—

—

190

190

—

—

806

806

Acquisition related costs

—

—

20

20

—

—

71

71

Litigation costs

—

—

54

54

—

—

77

77

Non-recurring costs

—

—

—

—

—

—

8

8

Transition and lease termination costs

—

—

—

—

22

—

—

22

MM&D Start-up costs

—

63

—

63

—

—

—

—

Foreign exchange loss (gain)

16

39

—

55

(135
)

(53
)

—

(188
)

Adjusted EBITDA

6,484

1,690

(1,042
)

7,132

8,216

1,781

(1,131
)

8,866

Transition costs

—

—

—

—

363

—

—

363

Normalized Adjusted EBITDA

$
6,484

$
1,690

$
(1,042
)

$
7,132

$
8,579

$
1,781

$
(1,131
)

$
9,229

Adjusted EBITDA as a % of
Net Revenues

15.9
%

23.9
%

14.9
%

18.3
%

33.3
%

17.7
%
Normalized Adjusted EBITDA
as a % of Net Revenues

15.9
%

23.9
%

14.9
%

19.2
%

33.3
%

18.4
%

Six months ended December 31, ~~2017~~2022 and ~~2016 (actual and unaudited)~~2021 (unaudited)

The following table summarizes ~~transportation revenue,~~revenues, cost of transportation and ~~net transportation revenue~~other services, and adjusted gross profit by reportable operating segments for the six months ended December 31, ~~2017~~2022 and ~~2016 (in thousands):~~2021:


	Six Months Ended December 31, 2022												Six Months Ended December 31, 2021
(In thousands)	United States			Canada			Corporate/ Eliminations			Total			United States			Canada			Corporate/ Eliminations			Total
													(as restated)									(as restated)
Revenues
Transportation	$	517,914		$	61,655		$	(255	)	$	579,314		$	556,118		$	60,763		$	(981	)	$	615,900
Value-added services		9,895			19,881			—			29,776			5,220			14,056			—			19,276
		527,809			81,536			(255	)		609,090			561,338			74,819			(981	)		635,176
Cost of transportation and other services
Transportation		398,306			47,843			(255	)		445,894			441,874			51,432			(981	)		492,325
Value-added services		3,756			8,932			—			12,688			3,493			3,502			—			6,995
		402,062			56,775			(255	)		458,582			445,367			54,934			(981	)		499,320
Adjusted gross profit (1)
Transportation		119,608			13,812			—			133,420			114,244			9,331			—			123,575
Value-added services		6,139			10,949			—			17,088			1,727			10,554			—			12,281
	$	125,747		$	24,761		$	—		$	150,508		$	115,971		$	19,885		$	—		$	135,856
Adjusted gross profit percentage
Transportation		23.1	%		22.4	%	N/A				23.0	%		20.5	%		15.4	%	N/A				20.1	%
Value-added services		62.0	%		55.1	%	N/A				57.4	%		33.1	%		75.1	%	N/A				63.7	%

Six Months Ended December 31, 2017

Six Months Ended December 31, 2016

United States

Canada

Corporate/
Eliminations

Total

United States

Canada

Corporate/
Eliminations

Total

Transportation revenue

Forwarding

$
290,696

$
2,818

$
(464
)

$
293,050

$
281,625

$
1,438

$
(185
)

$
282,878

Brokerage

61,941

43,287

(441
)

104,787

63,175

46,772

(2,589
)

107,358

352,637

46,105

(905
)

397,837

344,800

48,210

(2,774
)

390,236

Cost of transportation

Forwarding

215,853

2,254

(464
)

217,643

199,992

1,090

(185
)

200,897

Brokerage

57,152

36,321

(441
)

93,032

57,924

38,649

(2,589
)

93,984

273,005

38,575

(905
)

310,675

257,916

39,739

(2,774
)

294,881

Net transportation revenue

Forwarding

74,843

564

—

75,407

81,633

348

—

81,981

Brokerage

4,789

6,966

—

11,755

5,251

8,123

—

13,374

79,632

7,530

—

87,162

86,884

8,471

—

95,355

Net transportation margins

22.6
%

16.3
%

21.9
%

25.2
%

17.6
%

24.4
%

Other value-added services

1,758

5,096

—

6,854

2,090

1,688

—

3,778

Net revenues

$
81,390

$
12,626

$
—

$
94,016

$
88,974

$
10,159

$
—

$
99,133

~~Forwarding~~Transportation revenue was ~~$293.1~~$579.3 million and ~~$282.9~~$615.9 million for the six months ended December 31, ~~2017~~2022 and ~~2016,~~2021, respectively. The ~~increase~~decrease of ~~$10.2~~$36.6 million, or ~~3.6%~~5.9%, is primarily attributable to ~~increased project revenues by certain strategic operating partners~~decrease in ocean and ~~increases due to recent acquisitions. Forwarding net~~brokerage revenue. Adjusted transportation ~~revenue~~gross profit was ~~$75.4~~$133.4 million and ~~$82.0~~$123.6 million for the six months ended December 31, ~~2017~~2022 and ~~2016,~~2021, respectively. ~~The decrease of $6.6 million, or 8.0%, and corresponding decrease in net forwarding~~Net transportation margins increased from ~~29.0%~~20.1% to ~~25.7%~~23.0%, ~~was~~ primarily due to ~~competitive market dynamics and shifts in product mix, including~~ a higher mix of domestic and international shipments, which have higher gross profit margin characteristics than ~~normal frequency of air charters and other significant project work which carried a lower margin than the balance of our forwarding service offerings.~~ocean shipments.

~~Brokerage~~Value-added services revenue was ~~$104.8~~$29.8 million and ~~$107.4~~$19.3 million, for the six months ended December 31, ~~2017~~2022 and ~~2016,~~2021, respectively. The ~~decrease~~increase of ~~$2.6~~$10.5 million, or ~~2.4%~~54.5%, is primarily ~~attributable~~attributed to ~~general softness~~the recent acquisition of Navegate as well as increases in the ~~brokerage markets offset by higher revenues per shipment through to customers due to capacity constraints. Brokerage net transportation revenue~~value-added services associated with our Canada segment. Adjusted value-added services gross profit was ~~$11.8 million and $13.4~~$17.1 million for the six months ended December 31, ~~2017 and 2016, respectively. Net brokerage transportation margins decreased from 12.5% to 11.2%, primarily as a result of lower costs of purchased transportation.~~

~~Other value added services were $6.9 million for the six months ended December 31, 2017~~2022, compared to ~~$3.8~~$12.3 million for the comparable prior year period. ~~The increase was primarily attributable~~Adjusted value-added services gross profit percentage decreased from 63.7% to ~~the acquisition of Lomas in April 2017.~~

~~The following table compares condensed consolidated statements of operations data by operating segment for thesix months ended December 31, 2017 and 2016 (in thousands):~~

Six Months Ended December 31, 2017

Six Months Ended December 31, 2016

United States

Canada

Corporate/
Eliminations

Total

United States

Canada

Corporate/
Eliminations

Total

Net revenues

$
81,390

$
12,626

$
—

$
94,016

$
88,974

$
10,159

$
—

$
99,133

Operating partner commissions

39,220

—

—

39,220

46,308

—

—

46,308

Personnel costs

20,461

6,988

1,453

28,902

19,053

5,229

1,450

25,732

Selling, general and administrative expenses

8,422

4,026

1,256

13,704

7,717

2,048

1,585

11,350

Depreciation and amortization

1,063

742

5,337

7,142

1,191

320

4,523

6,034

Transition and lease termination costs

107

—

—

107

862

—

—

862

Change in contingent consideration

—

—

(110
)

(110
)

—

—

1,056

1,056

Total operating expenses

69,273

11,756

7,936

88,965

75,131

7,597

8,614

91,342

Income (loss) from operations

12,117

870

(7,936
)

5,051

13,843

2,562

(8,614
)

7,791

Other income (expense)

233

(146
)

(1,566
)

(1,479
)

597

101

(1,248
)

(550
)

Income (loss) before income tax provision

12,350

724

(9,502
)

3,572

14,440

2,663

(9,862
)

7,241

Income tax benefit (expense)

—

—

1,214

1,214

—

—

(2,741
)

(2,741
)

Net income (loss)

12,350

724

(8,288
)

4,786

14,440

2,663

(12,603
)

4,500

Less: Net income attributable to non-
   controlling interest

(117
)

—

—

(117
)

(28
)

—

—

(28
)

Net income (loss) attributable to Radiant
   Logistics, Inc.

12,233

724

(8,288
)

4,669

14,412

2,663

(12,603
)

4,472

Less: Preferred stock dividends

—

—

(1,023
)

(1,023
)

—

—

(1,023
)

(1,023
)

Net income (loss) attributable to common
   stockholders

$
12,233

$
724

$
(9,311
)

$
3,646

$
14,412

$
2,663

$
(13,626
)

$
3,449

Six Months Ended December 31, 2017

Six Months Ended December 31, 2016

Selected operating expenses as a percent
of net revenue:

United States

Canada

Corporate/
Eliminations

Total

United States

Canada

Corporate/
Eliminations

Total

Operating partner commissions

48.2
%

0.0
%

N/A

41.7
%

52.0
%

0.0
%

N/A

46.7
%
Personnel costs

25.1
%

55.3
%

N/A

30.7
%

21.4
%

51.5
%

N/A

26.0
%
Selling, general and administrative
expenses

10.3
%

31.9
%

N/A

14.6
%

8.7
%

20.2
%

N/A

11.4
%

~~Operating partner commissions decreased $7.1 million, or 15.3%~~57.4%, to $39.2 million for the six months ended December 31, 2017 due primarily to a decrease in net forwarding transportation revenues, as well as the acquisition of DLT, which operated as a strategic operating partner in the comparable prior year period.

~~Personnel costs increased $3.2 million, or 12.3%, to $28.9 million for the six months ended December 31, 2017. The increase is~~ primarily due to ~~the acquisitions of Lomas and DLT.~~

SG&A expenses increased $2.3 million, or 20.7%, to $13.7 million for the six months ended December 31, 2017. The increase is primarily attributable to higher facilities, technology and communications costs associated with the acquisitions of Lomas and DLT. SG&A expenses also includes approximately $0.4 million in start-up costs associated with adding new and reconfiguring existing Canadian facilities to further expand our MM&D solution offering.

~~Depreciation and amortization costs increased $1.1 million, or 18.4%, to $7.1 million for the six months ended December 31, 2017, primarily due~~ ~~to increased amortization associated with recent acquisitions.~~

~~Transition and lease termination costs decreased $0.8 million, or 87.6%, to $0.1 million for the six months ended December 31, 2017.~~ ~~The current year period represents the lease termination costs associated with the facility consolidation of the Company-owned location in New Jersey with the~~ acquisition of DLT. The comparable prior year period amount represents non-recurring personnel costs for SBA that were identified for elimination in connection with the winding down of SBA’s historical back-office operations.Navegate, which has lower value-added services margin characteristics.

~~Change in contingent consideration represents the change in the fair value of contingent consideration due to former shareholders of acquired operations.~~ ~~The change in the current period is primarily attributable to a decrease in management’s estimates of future earn-out payments through the remainder of the respective earn-out periods.~~

~~Other expenses increased $0.9 million, or 168.9%, to $1.5 million for the six months ended December 31, 2017.~~ ~~The increase is primarily due to interest expense attributable to borrowings used to fund recent acquisitions, as well as increases in foreign exchange losses.~~

~~Our change in net income is driven principally by decreased net revenues and decreased operating expenses, and increased other expenses compared to the comparable prior year period,~~ ~~partially offset by a decrease in income taxes.~~

The following table provides a reconciliation for the six months ended December 31, ~~2017~~2022 and ~~2016~~2021 of adjusted ~~EBITDA~~gross profit to ~~net income,~~gross profit, the most directly comparable GAAP ~~measure in accordance with SEC Regulation G (in thousands):~~measure:


(In thousands)	Six Months Ended December 31,
Reconciliation of adjusted gross profit to GAAP gross profit	2022			2021
				(as restated)
Revenues	$	609,090		$	635,176
Cost of transportation and other services (exclusive of depreciation and amortization, shown separately below)		(458,582	)		(499,320	)
Depreciation and amortization		(5,341	)		(6,331	)
GAAP gross profit	$	145,167		$	129,525
Depreciation and amortization		5,341			6,331
Adjusted gross profit	$	150,508		$	135,856

GAAP gross margin (GAAP gross profit as a percentage of revenues)		23.8	%		20.4	%
Adjusted gross profit percentage (adjusted gross profit as a percentage of revenues)		24.7	%		21.4	%

Six Months Ended December 31, 2017

Six Months Ended December 31, 2016

United States

Canada

Corporate/
Eliminations

Total

United States

Canada

Corporate/
Eliminations

Total

Net revenues

$
81,390

$
12,626

$
—

$
94,016

$
88,974

$
10,159

$
—

$
99,133

Net income (loss) attributable to
   common stockholders

$
12,233

$
724

$
(9,311
)

$
3,646

$
14,412

$
2,663

$
(13,626
)

$
3,449

Plus: Preferred stock dividends

—

—

1,023

1,023

—

—

1,023

1,023

Net income (loss) attributable to Radiant
   Logistics, Inc.

12,233

724

(8,288
)

4,669

14,412

2,663

(12,603
)

4,472

Income tax expense (benefit)

—

—

(1,214
)

(1,214
)

—

—

2,741

2,741

Depreciation and amortization

1,063

742

5,337

7,142

1,191

320

4,523

6,034

Net interest expense

—

—

1,566

1,566

—

—

1,248

1,248

EBITDA

13,296

1,466

(2,599
)

12,163

15,603

2,983

(4,091
)

14,495

Share-based compensation

453

53

224

730

460

2

198

660

Change in contingent consideration

—

—

(110
)

(110
)

—

—

1,056

1,056

Acquisition related costs

—

—

98

98

—

—

216

216

Litigation costs

—

—

79

79

—

—

113

113

Non-recurring costs

—

—

—

—

—

—

14

14

Lease termination costs

107

—

—

107

25

—

—

25

MM&D Start-up costs

—

410

—

410

—

—

—

—

Foreign exchange loss (gain)

(7
)

146

—

139

(293
)

(95
)

—

(388
)

Adjusted EBITDA

13,849

2,075

(2,308
)

13,616

15,795

2,890

(2,494
)

16,191

Transition costs

—

—

—

—

818

—

—

818

Normalized Adjusted EBITDA

$
13,849

$
2,075

$
(2,308
)

$
13,616

$
16,613

$
2,890

$
(2,494
)

$
17,009

Adjusted EBITDA as a % of Net
   Revenues

17.0
%

16.4
%

N/A

14.5
%

17.8
%

28.4
%

N/A

16.3
%
Normalized Adjusted EBITDA as a % of
   Net Revenues

17.0
%

16.4
%

N/A

14.5
%

18.7
%

28.4
%

N/A

17.2
%

The following table compares condensed consolidated statements of comprehensive income data by portable operating segments for the six months ended December 31, 2022 and 2021:


	Six Months Ended December 31, 2022											Six Months Ended December 31, 2021
(In thousands)	United States			Canada		Corporate/ Eliminations			Total			United States			Canada		Corporate/ Eliminations			Total
												(as restated)					(as restated)			(as restated)
Adjusted gross profit (1)	$	125,747		$	24,761	$	—		$	150,508		$	115,971		$	19,885	$	—		$	135,856

Operating expenses:
Operating partner commissions		60,617			—		—			60,617			58,730			—		—			58,730
Personnel costs		31,151			8,784		477			40,412			23,496			7,773		1,043			32,312
Selling, general and administrative expenses		10,521			3,602		3,284			17,407			9,658			3,167		2,314			15,139
Depreciation and amortization		3,137			1,569		8,987			13,693			2,030			1,691		4,981			8,702
Transition, lease termination, and other costs		30			—		—			30			—			—		—			—
Change in fair value of contingent consideration		—			—		310			310			—			—		455			455

Total operating expenses		105,456			13,955		13,058			132,469			93,914			12,631		8,793			115,338

Income from operations		20,291			10,806		(13,058	)		18,039			22,057			7,254		(8,793	)		20,518
Other expense		150			350		(878	)		(378	)		321			161		(1,775	)		(1,293	)

Income before income taxes		20,441			11,156		(13,936	)		17,661			22,378			7,415		(10,568	)		19,225
Income tax expense		—			—		(4,224	)		(4,224	)		—			—		(4,915	)		(4,915	)

Net income		20,441			11,156		(18,160	)		13,437			22,378			7,415		(15,483	)		14,310
Less: net income attributable to non- controlling interest		(168	)		—		—			(168	)		(162	)		—		—			(162	)

Net income attributable to Radiant Logistics, Inc.	$	20,273		$	11,156	$	(18,160	)	$	13,269		$	22,216		$	7,415	$	(15,483	)	$	14,148


	Six Months Ended December 31, 2022										Six Months Ended December 31, 2021
Operating expenses as a percent of adjusted gross profit (1):	United States			Canada			Corporate/ Eliminations	Total			United States			Canada			Corporate/ Eliminations	Total
											(as restated)							(as restated)
Operating partner commissions		48.2	%		0.0	%	N/A		40.3	%		50.6	%		0.0	%	N/A		43.2	%
Personnel costs		24.8	%		35.5	%	N/A		26.9	%		20.3	%		39.1	%	N/A		23.8	%
Selling, general and administrative expenses		8.4	%		14.5	%	N/A		11.6	%		8.3	%		15.9	%	N/A		11.1	%
Depreciation and amortization		2.5	%		6.3	%	N/A		9.1	%		1.8	%		8.5	%	N/A		6.4	%

(1) Adjusted gross profit is revenues net of cost of transportation and other services.

~~Liquidity and Capital Resources~~

~~Net cash provided by operating activities was $0.1~~Operating partner commissions increased $1.9 million, ~~and $12.7~~or 3.2%, to $60.6 million for the six months ended December 31, ~~2017~~2022. The increase is primarily due to increased adjusted gross profit generated from operating partner stations partially offset by a reduction in the number of strategic operating partners. As a percentage of adjusted gross profit, operating partner commissions decreased 295 basis points to 40.3% from 43.2% for the six months ended December 31, 2022 and ~~2016,~~2021, respectively, as a result of a higher percentage of adjusted gross profit coming from operating partner locations over the prior year period.

Personnel costs increased $8.1 million, or 25.1%, to $40.4 million for the six months ended December 31, 2022. The increase is primarily due to increased workforce due to increase in business, and the inclusion of personnel costs from Navegate for six months, compared to one month in the prior period. As a percentage of adjusted gross profit, personnel costs increased 307 basis points to 26.9% from 23.8% for the six months ended December 31, 2022 and 2021, respectively.

Selling, general and administrative (“SG&A”) expenses increased $2.3 million, or 15.0%, to $17.4 million for the six months ended December 31, 2022. The increase is primarily due to increased professional services fees, facilities costs, IT related initiatives, and travel expenses. As a percentage of adjusted gross profit, SG&A increased 42 basis points to 11.6% from 11.1% for the six months ended December 31, 2022 and 2021, respectively.

Depreciation and amortization costs increased $5.0 million, or 57.4%, to $13.7 million for the six months ended December 31, 2022. The increase is primarily due to the acquisition of Navegate and the accelerated amortization of certain trade names resulting from the rebranding of certain trade names.

The following table provides a reconciliation for the six months ended December 31, 2022 and 2021 of adjusted EBITDA to net income (loss), the most directly comparable GAAP measure:


	Six Months Ended December 31, 2022												Six Months Ended December 31, 2021
(In thousands)	United States			Canada			Corporate/ Eliminations			Total			United States			Canada				Corporate/ Eliminations				Total
													(as restated)							(as restated)				(as restated)
Net income attributable to Radiant Logistics, Inc.	$	20,273		$	11,156		$	(18,160	)	$	13,269		$	22,216		$	7,415			$	(15,483	)		$	14,148
Income tax expense		—			—			4,224			4,224			—			—				4,915				4,915
Depreciation and amortization (2)		3,365			1,569			8,987			13,921			2,030			1,691				4,981				8,702
Net interest expense		—			—			1,465			1,465			—			—		—		1,352		—		1,352

EBITDA		23,638			12,725			(3,484	)		32,879			24,246			9,106				(4,235	)			29,117

Share-based compensation		770			129			389			1,288			556			119				97				772
Change in fair value of contingent consideration		—			—			310			310			—			—				455				455
Acquisition related costs		—			—			49			49			—			—				496				496
Ransomware incident related costs, net		—			—			—			—			—			—				751				751
Litigation costs		—			—			366			366			—			—				321				321
Transition, lease termination, and other costs		30			—			—			30			—			—				—				—
Change in fair value of interest rate swap contracts		—			—			(587	)		(587	)		—			—				424				424
Foreign currency transaction gain		(125	)		(346	)		—			(471	)		(306	)		(69	)			—				(375	)

Adjusted EBITDA	$	24,313		$	12,508		$	(2,957	)	$	33,864		$	24,496		$	9,156			$	(1,691	)		$	31,961
Adjusted EBITDA as a % of adjusted gross profit (1)		19.3	%		50.5	%	N/A				22.5	%		21.1	%		46.0	%		N/A					23.5	%

(1) Adjusted gross profit is revenues net of cost of transportation and other services.

(2) Depreciation and amortization for the purposes of calculating adjusted EBITDA, a non-GAAP financial measure, includes depreciation expenses recognized on certain computer software as a service.

Liquidity and Capital Resources

Generally, our primary sources of liquidity are cash generated from operating activities and borrowings under our Revolving Credit Facility, as described below. These sources also fund a portion of our capital expenditures and contractual contingent consideration obligations. Our level of cash and financing capabilities along with cash flows from operations have historically been sufficient to meet our operating and capital needs. As of December 31, 2022, we have $62.0 million in unrestricted cash on hand to serve as adequate working capital.

Net cash provided by operating activities were $65.5 million for the six months ended December 31, 2022. Net cash used for operating activities were $19.7 million for the six months ended December 31, 2021. The cash used or provided by primarily consisted of net income adjusted for depreciation and amortization and changes in accounts receivable, contract assets, accounts payable, income taxes, operating partner commissions payable, and ~~commissions payable.~~accrued and other liabilities. Cash flow from operating activities for the six months ended December 31, 2022 increased by $85.2 million, compared with the same period in fiscal year 2022, primarily due to increased depreciation and amortization, and net changes in operating assets and liabilities.

Net cash used for investing activities ~~was $4.2~~were $6.7 million and ~~$2.2~~$38.9 million for the six months ended December 31, ~~2017~~2022 and ~~2016,~~2021, respectively. ~~The primary uses of cash were~~Cash paid for acquisitions were $3.3 million, and cash paid for purchases of property, technology, and equipment. Cash paid for ~~acquisitions was $1.2~~purchases of property, technology, and equipment were $3.4 million and ~~$0.1~~$4.5 million for the six months ended December 31, ~~2017~~2022 and ~~2016,~~2021, respectively. ~~Cash paid for purchases~~Proceeds from sale of property, technology, and equipment were nominal for both of the six months ended December 31, 2022 and 2021.

Net cash used for financing activities was ~~$3.1 million and $2.2~~$23.7 million for the six months ended December 31, ~~2017 and 2016, respectively.~~

2022. Net cash provided by financing activities ~~was $4.7~~were $60.7 million for the six months ended December 31, ~~2017, compared to cash used~~2021. Net repayments of ~~$7.0~~the Revolving Credit Facility were $15.0 million for the six months ended December 31, ~~2016. The changes primarily consisted of~~2022, compared to net proceeds from ~~and repayments to~~ the ~~Senior~~Revolving Credit Facility ~~(defined below), payments~~ of loan fees, repayments of notes payable, purchases of treasury stock, payments of contingent consideration, and payments of preferred stock dividends. Proceeds from the Senior Credit Facility were $8.1 million and repayments were $1.0$70.5 million for the six months ended December 31, ~~2017~~2021. Repayments of notes payable and ~~2016, respectively. Payments of loan fees~~finance lease liability were ~~$0.1~~$2.5 million for the six months ended December 31, ~~2017. Repayments~~2022 and 2021. Payments for repurchases of ~~notes payable were $1.7~~common stock was $5.0 million and ~~$1.2~~$6.3 million for the six months ended December 31, ~~2017~~2022 and ~~2016,~~2021, respectively. ~~Purchases of treasury stock~~Distributions to non-controlling interest were ~~$0.3~~$0.2 million for the six months ended December 31, ~~2016. Payments~~2022 and 2021. Proceeds from exercise of ~~contingent consideration to former shareholders of acquired operations~~stock options were ~~$0.4~~$0.2 million and ~~$3.4~~$0.4 million for the six months ended December 31, ~~2017~~2022 and ~~2016,~~2021, respectively. Payments of ~~preferred~~employee tax withholdings related to restricted stock ~~dividends~~awards and stock options were ~~$1.0~~$0.5 million and $0.4 million for ~~each of~~ the six months ended December 31, ~~2017~~2022 and ~~2016.~~2021, respectively.

~~Acquisitions~~40

Our agreements with respect to our prior acquisitions contain future consideration provisions that provide for the prior owners of the acquired entities to receive additional consideration if specified operating objectives and financial results are achieved in future periods. For additional information regarding our acquisitions and potential earn-out payments, see Note 3 and Note 9 to our audited consolidated financial statements contained in our Annual Report on Form 10-K for the year ended June 30, 2017, and Note 3 and Note 9 to our unaudited condensed consolidated financial statements contained elsewhere in this report.

~~Technology~~

A primary component of our business strategy is the continued development and implementation of advanced information systems to provide accurate and timely information to our management, strategic operating partners and customers. During the year ended June 30, 2017, we spent approximately $4.0 million on enhancing our technology and software systems in order to increase our operating efficiency. We intend to spend in excess of $5.0 million during the fiscal year ended June 30, 2018 in order to continue improving our technology systems, which we expect will include the implementation of a key transportation management system that will, among other things, more fully integrate our systems with our strategic operating partners and any new operations that we may acquire in the future.

~~Senior~~Revolving Credit Facility

~~We have the USD$75.0~~The Company entered into a $200 million ~~senior~~syndicated, revolving credit facility (the ~~“Senior~~“Revolving Credit Facility”) pursuant to a Credit Agreement dated as of August 5, 2022. The Credit Facility includes a $75 million accordion feature to support future acquisition opportunities. On December 31, 2022, the borrowings outstanding on the Revolving Credit Facility was $47.5 million. The Credit Facility was entered into with Bank of America, N.A. ~~on its own behalf~~ and BMO Capital Markets Corp. as ~~agent to the other lenders named therein, currently consisting~~joint book runners and joint lead arrangers, Bank of ~~the~~America, N.A. as Administrative Agent, Swingline Lender and Letter of Credit Issuer, Bank of Montreal ~~(as~~as syndication agent, KeyBank National Association and MUFG Union Bank, N.A. as co-documentation agents and Bank of America, N. A., Bank of Montreal, KeyBank National Association, MFUG Union Bank, N.A. and Washington Federal Bank, National Association as lenders (such named lenders are collectively referred to herein as “Lenders”). This replaces the ~~initial member of the syndicate under such loan). The Senior~~$150 million Revolving Credit Facility ~~matures on June 14, 2022~~dated March 13, 2020.

The Revolving Credit Facility has a term of five years and is collateralized by a first-priority security interest in ~~all of the assets of the U.S. co-borrowers, a first-priority security interest in all of~~ the accounts receivable and ~~associated assets of the Canadian co-borrowers (the “Canadian A/R Assets”) and a second-priority security interest on the~~ other assets of the ~~Canadian borrowers. Advances under~~Company and the ~~Senior Credit Facility are available for future acquisitions, certain debt repayment~~guarantors named below on a parity basis with the security interest held by Fiera Private Debt Fund IV LP and ~~for other corporate purposes.~~Fiera Private Debt Fund V LP described below. Borrowings under the ~~Senior~~ Credit Facility accrue interest (at the Company’s option), at ~~a variable~~a) the Lenders’ base rate ~~of interest~~plus 0.75% and can be subsequently adjusted based ~~upon LIBOR and/or one or more other interest~~on the Company’s consolidated net leverage ratio under the facility at the Lenders’ base rate ~~indices~~ plus ~~an applicable margin.~~0.5% to 1.50%; b) Term SOFR plus 1.65% and can be subsequently adjusted based on the Company’s consolidated net leverage ratio under the facility at Term SOFR plus 1.40% to 2.40%; and c) Term SOFR Daily Floating Rate plus 1.65% and can be subsequently adjusted based on the Company’s consolidated net leverage ratio under the facility at Term SOFR Daily Floating Rate plus 1.40% to 2.40%. The ~~Senior Credit Facility provides for advances of up to 85% of our eligible~~Company’s U.S. and Canadian ~~and domestic accounts receivable, 75% of eligible accrued but unbilled domestic receivables and eligible foreign accounts receivable, all of which~~subsidiaries are ~~subject to certain sub-limits, reserves and reductions.~~

~~The co-borrowers~~guarantors of the ~~Senior~~ Credit ~~Facility include the following: (i) with respect to U.S. obligations~~Facility.

For general borrowings under the Senior Credit Facility, Radiant Logistics, Inc., Radiant Global Logistics, Inc., Radiant Transportation Services, Inc., Radiant Logistics Partners LLC, Adcom Express, Inc., Radiant Customs Services, Inc., DBA Distribution Services, Inc., International Freight Systems (of Oregon), Inc., Radiant Off-Shore Holdings LLC, Green Acquisition Company, Inc., On Time Express, Inc., Clipper Express Company, Radiant Global Logistics (CA), Service By Air, Inc., Highways and Skyways, Inc., and Radiant Trade Services, Inc.; and (ii) with respect to Canadian obligations under the Senior Credit Facility, Wheels International Inc., 1371482 Ontario Inc., Wheels MSM Canada Inc., 2062698 Ontario Inc., Associate Carriers Canada Inc. and Wheels Associate Carriers Inc. As co-borrowers under the Senior Credit Facility, the ~~accounts receivable of the foregoing entities are eligible for inclusion within the overall borrowing base of the~~ Company and all borrowers are responsible for repayment of the debt associated with applicable advances (U.S. or Canadian) under the Senior Credit Facility. In addition, we and our U.S. subsidiaries guarantee both the U.S. and Canadian obligations under the Senior Credit Facility, while our Canadian subsidiaries guarantee only the Canadian obligations under the Senior Credit Facility.

~~The terms of the Senior Credit Facility are~~is subject to ~~a financial covenant which may limit~~ the ~~amount otherwise available under such facility. The covenant requires us to maintain a basic fixed charge~~maximum consolidated net leverage ratio of 3.00 and minimum consolidated interest coverage ratio of ~~at least 1.0 to 1.0 during any period (the “Trigger Period”) in which we are in default under the Senior Credit Facility, if total~~3.00. Additional minimum availability ~~falls below $10.0 million or if U.S. availability is less than $6.0 million.~~

Under the terms of the Senior Credit Facility, we are permitted to make additional acquisitions without the consent of the senior lenders only if certain conditions are satisfied. The conditions imposed by the Senior Credit Facility include the following: (i) the absence of an event of default under the Senior Credit Facility, (ii) the acquisition must be consensual; (iii) the company to be acquired must berequirements and financial covenants apply in the ~~transportation and logistics industry, located in~~event the ~~United States or certain other approved jurisdictions, and have a positive EBITDA for the 12 month period most recently ended prior~~Company seeks to such acquisition, (iv) no debt or liens may be incurred, assumed or result from the acquisition, subject to limited exceptions, (v) after giving effect for the funding of the acquisition, we must have availabilityuse advances under the Senior Credit Facility of at least the greater of 15% of the U.S.-based borrowing base and Canadian-based borrowing base or $15.0 million, and U.S. availability of at least $10.0 million, and (vi) the pro forma fixed charge coverage ratio is at least 1.1 to 1.0. In the event that we are not able to satisfy the conditions of the Senior Credit Facility in connection with a proposed acquisition, we must either forego the acquisition, obtain the consent of the senior lenders, or retire the Senior Credit Facility. This may limit or slow our ability to achieve the critical mass we may need to achieve our strategic objectives.

As of December 31, 2017, we have gross availability of $72.4 million, net of $21.9 million in advances and letter of credit reserves of approximately $0.2 million with approximately $50.3 million in availability under the Senior Credit Facility to ~~support future~~pursue acquisitions and our ongoing working capital requirements. We expect to structure acquisitions with certain amounts paid at closing, and the balance paid over a number of years in the form of earn-out installments which are payable based upon the future earnings of the acquired businesses payable in cash, stock or some combination thereof. As we continue to execute our acquisition strategy, we will be required to make significant payments in the future if the earn-out installments under our various acquisitions become due. While we believe that a portion of any required cash payments will be generated by the acquired businesses, we may have to secure additional sources of capital to fund the remainder of any cash-based earn-out payments as they become due. This presents us with certain business risks relative to the availability of capacity under our Senior Credit Facility, the availability and pricing of future fund raising, as well as the potential dilution to our stockholders to the extent the earn-outs are satisfied directly, or indirectly, from the sale of equity.repurchase its common stock.

Senior Secured ~~Loan~~Loans

~~On April 2, 2015,~~In connection with the Company’s acquisition of Radiant Canada (formerly, Wheels International Inc. ~~(“Wheels”~~), Radiant Canada obtained a CAD$~~29.0~~29 million senior secured Canadian term loan from ~~Integrated~~Fiera Private Debt Fund IV LP (“~~IPD~~FPD IV”) formerly, Integrated Private Debt Fund IV LP) pursuant to a CAD$29,000,000 Credit Facilities Loan ~~Agreement (the “IPD IV Loan Agreement”).~~Agreement. The Company and its U.S. and Canadian subsidiaries are guarantors of the ~~Wheels~~Radiant Canada obligations thereunder. The loan matures on April 1, 2024 and accrues interest at a rate of 6.65% per annum. ~~We made interest-only payments for the first 12 months and will make blended principal and interest through maturity. In connection with the loan, we paid an amount equal~~The Company is required to maintain five months of interest ~~payments into~~in a debt service reserve account to be controlled by ~~IPD~~FPD IV.

In connection with ~~our~~the Company’s acquisition of Lomas, ~~Wheels~~Radiant Canada obtained a CAD$~~10.0~~10 million senior secured Canadian term loan from Fiera Private Debt Fund V LP (formerly, Integrated Private Debt Fund V ~~LP (“IPD V,” and together with IPD IV, “IPD”)~~LP) pursuant to a CAD$10,000,000 Credit Facilities Loan ~~Agreement (the “IPD V Loan Agreement,” and together with the IPD IV Loan Agreement, the “IPD Loan Agreements”).~~Agreement. The Company and its U.S. and Canadian subsidiaries are guarantors of the ~~Wheels~~Radiant Canada obligations thereunder. The loan matures on June 1, 2024 and accrues interest at a fixed rate of 6.65% per annum. The loan repayment consists of monthly blended principal and interest payments.

The loans are collateralized by a (i) first-priority security interest in all of the assets of Wheels except the Canadian A/R Assets, (ii) a second-priority security interest in the Canadian A/R Assets, and (iii) a second-priority security interest on all of our assets.

The terms of the loans are subject to certain financial covenants, which require us to maintain (i) a fixed charge coverage ratio of 1.1 to 1.0 during any Trigger Period, (ii) a debt service coverage ratio of at least 1.2 to 1.0 and (iii) a senior debt to EBITDA ratio of at least 3.0 to 1.0.

Under the terms of the IPD Loan Agreements, we are permitted to make additional acquisitions without IPD’s consent only if certain conditions are satisfied, including, among others: (i) the equity interests or property acquired in such acquisition constitute a business reasonably related to our business or the business of Wheels; (ii) no default or event of default shall exist prior to or will be caused as a result of such acquisition; (iii) we or Wheels shall have provided IPD with at least 10 business days prior written notice of such acquisition that must include certain descriptive information and pro forma information regarding the acquisition; (iv) such person whose equity interests or property are being acquired shall have, as of the last day of the most recent fiscal quarter of such person, actual (or pro forma to the extent approved in writing by IPD) positive EBITDA and net income, in each case for the 12 month period ending on such date; (v) the aggregate cash consideration payable at the closing of the acquisition shall not exceed $10.0 million for any single transaction and $25.0 million in the aggregate, in any fiscal year or such greater amount approved in writing by IPD; provided, however, that the foregoing limitation shall exclude cash consideration derived from the proceeds of sales of newly issued equity interests of Radiant during the twelve-month period prior to the closing of such acquisition (as described below); (vi) no debt or liens may be incurred, assumed or result from the acquisition, subject to limited exceptions; (vii) the assets subject to the acquisition

are free from all liens except those permitted under the IPD Loan Agreements; (viii) the post-closing U.S. availability under the Senior Credit Facility is at least $10 million on a pro forma basis and (ix) the pro forma fixed charge coverage ratio is at least 1.1 to 1.0.

For additional information regarding our indebtedness, see Note ~~6 to our audited consolidated financial statements contained in our Annual Report on Form 10-K for the year ended June 30, 2017, and Note 6~~8 to our unaudited condensed consolidated financial ~~statements contained elsewhere in this report.~~statements.

~~Working Capital~~

Given our continued focus on the build-out of our network of operating partner locations, we believe that our current working capital and anticipated cash flow from operations are adequate to fund existing operations for the next 12 months. However, continued growth through strategic acquisitions will require additional sources of financing as our existing working capital is not sufficient to finance our operations and an acquisition program. Thus, our ability to finance future acquisitions will be limited by the availability of additional capital. We may, however, finance acquisitions using our common stock as all or some portion of the consideration. In the event that our common stock does not attain or maintain a sufficient market value or potential acquisition candidates are otherwise unwilling to accept our securities as part of the purchase price for the sale of their businesses, we may be required to utilize more of our cash resources, if available, in order to continue our acquisition program. If we do not have sufficient cash resources through either operations or from debt facilities, our growth could be limited unless we are able to obtain such additional capital.

~~Off Balance Sheet Arrangements~~

As of December 31, 2017, we did not have any relationships with unconsolidated entities or financial partners, such as entities often referred to as structured finance or special purpose entities, which had been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. As such, we are not materially exposed to any financing, liquidity, market or credit risk that could arise if we had engaged in such relationships.

~~Recent Accounting Pronouncements~~

~~The recent accounting pronouncements are discussed in Note 2 of the “Notes to the Condensed Consolidated Financial Statements” contained elsewhere in this report.~~

Item 3. Quantitative and Qualitative Disclosure About Market Risk

~~There~~We are exposed to market risks in the ordinary course of business. These risks are primarily related to foreign exchange risk. We have ~~been no material~~currency exposure arising from both sales and purchases denominated in foreign currencies, as well as intercompany transactions. Significant changes ~~from~~in exchange rates between foreign currencies in which we transact business and the ~~information previously reported under Part II, Item 7A~~U.S. dollar may adversely affect our results of operations and financial condition. Historically, we have not entered into any hedging activities, and, to the extent that we continue not to do so in the future, we may be vulnerable to the effects of currency exchange rate fluctuations. A portion of our ~~Annual Report~~business is conducted in Canada. If foreign exchange rates were 1.0% higher or lower, our net income would have changed by approximately $0.10 million.

We are also subject to risks related to an increase in interest rates. For every $1.0 million outstanding on ~~Form 10-K for the year ended June 30, 2017.~~our Revolving Credit Facility, we will incur approximately $0.06 million of interest expense. For every 1.0% increase in interest rates, our interest expense per $1.0 million in borrowings will increase by approximately $0.01 million.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), as appropriate, to allow timely decisions regarding required disclosure.

An evaluation of the effectiveness of our “disclosure controls and procedures” (as such term is defined in Rules 13a-15(e) or 15d-15(e) of the Exchange ~~Act~~Act) as of December 31, ~~2017,~~2022, was carried out by our management under the supervision and with the participation of our ~~Chief Executive Officer (“CEO”)~~CEO and ~~Chief Financial Officer (“CFO”).~~CFO. Based ~~upon that~~on this evaluation, our CEO and CFO concluded that ~~as of December 31, 2017,~~ our disclosure controls and procedures were ~~effective~~ineffective as of December 31, 2022 due to the existence of material weaknesses described below.

As of June 30, 2021, we concluded that a material weakness existed in our internal control over financial reporting related to the recording and processing of revenues transactions, including the timing of the Company’s estimated accrual of in-transit revenues and related costs. This material weakness relates to the conditions that led to the restatement of previously issued consolidated financial statements as discussed in Note 2 of the consolidated financial statements contained in our Annual Report on Form 10-K for the fiscal year ended June 30, 2022.

In response to this material weakness, the Company began taking corrective action during fiscal year 2022 to address the material weakness and provide reasonable assurance that ~~information~~future errors in revenue transactions would be prevented and/or detected in a timely manner. The Company’s corrective actions include, but are not limited to, working with strategic operating partners and company-owned stations to understand their processes and controls, communicating the critical data elements in our revenue accrual process, and performing additional review procedures of unposted shipments in an effort to improve the overall accuracy of the revenue accrual.

As of December 31, 2022, remediation is on-going. As such, we concluded the Company does not have effective internal controls over the recording and processing of revenues. Specifically, the controls as currently designed are ~~required~~not sufficient to ~~disclose~~prevent or detect a material misstatement in ~~reports that we file or submit under~~revenues as the ~~Exchange Act is (i) recorded, processed, summarized~~design of the controls lacks the level of precision necessary to ensure the completeness and ~~reported within~~accuracy of revenue.

The Company will continue evaluating the ~~time periods specified~~appropriate corrective actions to remediate the material weakness during fiscal year 2023 to strengthen our internal controls over the recording of revenues.

Changes in Internal Control over Financial Reporting

Except for the ~~SEC rules and forms and (ii) accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding disclosure.~~

~~There~~material weakness described above, there have not been any other changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the fiscal quarter ended December 31, ~~2017~~2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

P~~ART~~PART II. OTHER INFORMATION

Item 1. Legal Proceedings

~~From time to time, we and our operating subsidiaries are~~The Company is involved in various claims ~~proceedings~~ and ~~litigation,~~legal actions arising in the ordinary course of ~~business, including~~business. The Company records accruals for estimated losses relating to claims and lawsuits when available information indicates that a loss is probable and the ~~actions set forth in Item 3~~amount of ~~our Annual Report on Form 10-K for~~ the ~~year ended June 30, 2017. Below~~loss, or range of loss, can be reasonably estimated. Legal expenses are ~~some updates to~~expensed as incurred. There were no potentially material legal proceedings ~~that have been previously disclosed in our Annual Report on Form 10-K for~~as of December 31, 2022.

On December 8, 2021, the ~~year ended June 30, 2017 and supplemented in subsequent filings with the SEC.~~

~~Ingrid Barahona v. Accountabilities, Inc. d/b/~~Company detected a ~~Accountabilities Staffing, Inc., Radiant Global Logistics, Inc. and DBA Distribution Services, Superior Court~~ransomware incident impacting certain of the ~~State~~Company’s operational and information technology systems. While the Company’s systems recovery efforts are complete, and the Company’s operations are fully functional, the incident did result in a loss of ~~California, Los Angeles County, Case No. BC525802~~

~~Certain deadlines in this case have been extended. Currently, Ms. Barahona is required to submit her motion for class certification~~revenue as well as certain incremental costs. In addition, following an extensive forensic investigation by ~~March 9, 2018. The Court has scheduled~~ a ~~status conference for April 17, 2018. The parties have also scheduled a mediation for April 26, 2018. At this time,~~full team of cybersecurity experts, the Company ~~is unable to express an opinion as~~confirmed that some data extraction related to the ~~likely outcome~~Company’s customers and employees occurred from the Company’s servers before the Company took its systems offline. We notified law enforcement, provided notice to customers apprising them of the ~~matter.~~situation and are providing any notices that may be required by applicable law related to potential Personal Identifiable Information (PII data) exposure. Although the Company acted promptly and as efficiently as possible any failure of the Company to comply with data privacy or other laws and regulations related to this event could result in claims, legal or regulatory proceedings, inquiries, or investigations.

Item 1A. Risk Factors

~~In addition to the information set forth~~There have been no material changes in ~~this Form 10-Q, you should carefully consider~~ the risk factors ~~discussed in~~disclosed by us under Part I, Item ~~1A of our~~1A. Risk Factors contained in the Annual Report on Form 10-K for the fiscal year ended June 30, ~~2017.~~2022.

~~Changes in U.S. tax laws could have a material adverse effect on our business, cash flow, results~~Item 2. Unregistered Sale of ~~operations or financial conditions.~~Equity Securities and Use of Proceeds

The ~~Tax Cuts and Jobs Act (the “Act”), was enacted on December 22, 2017. The Act contains many significant changes~~Company’s board of directors authorized the repurchase of up to ~~the U.S. federal income tax laws. We believe that the primary impact~~5,000,000 shares of the ~~Act for us in fiscal year 2018 is a reduction~~Company’s common stock through December 31, 2023. Under this repurchase program the Company purchased the following shares of ~~our federal statutory tax rate from 35%~~common stock during the three months ended December 31, 2022. As of December 31, 2022, future repurchases of up to 28.1% (average of a 35% rate for the first half of fiscal year 2018 and 21% rate for the second half of fiscal year 2018). Additionally, the Act requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that1,635,528 shares were previously tax deferred and creates new taxes on certain foreign-sourced earnings. The final impact of the Act may differ due to and among other things, changes in interpretations, assumptions made by us, the issuance of additional guidance, and actions that we may take as a result of the Act. Changes in corporate tax rates, the taxation of foreign earnings, and the deductibility of expenses containedavailable in the ~~Act or other tax reform legislation could result in significant one-time charges in the current or future taxable years, and could have a significant adverse effect on our business, cash flow, results~~share repurchase program.


Issuer Purchases of Equity Securities
Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Programs
October 1 -31, 2022		352,231		5.89		352,231		—
November 1 - 30, 2022		268,116		5.92		268,116		—
December 1 - 31, 2022		—		—		—		—

Total		620,347	$	5.90		620,347		—

Table of operations or financial conditions.Contents

I~~TEM~~ITEM 6. ~~EXHIBITS~~EXHIBITS

~~Exhibit~~

~~No.~~

~~Exhibit~~

~~Method of~~

~~Filing~~

Incorporated by Reference

Exhibit

Number

Description

Filed/Furnished Herewith

Form

Period Ending

Exhibit Number

Filing Date

~~31.1~~

31.1

Certification by Principal Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

~~Filed herewith~~X

31.2

Certification by Principal Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

~~Filed herewith~~X

32.1

Certification by the Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

~~Filed herewith~~X

101.INS

Inline XBRL Instance

~~Filed herewith~~X

101.SCH

Inline XBRL Taxonomy Extension Schema

~~Filed herewith~~X

101.CAL

Inline XBRL Taxonomy Extension Calculation

~~Filed herewith~~X

101.DEF

Inline XBRL Taxonomy Extension Definition

~~Filed herewith~~X

101.LAB

Inline XBRL Taxonomy Extension Label

~~Filed herewith~~X

101.PRE

Inline XBRL Taxonomy Extension Presentation

~~Filed herewith~~

~~EXHIBIT INDEX~~

~~Exhibit No.~~X

~~Exhibit~~

~~31.1~~104

~~Certification by~~Cover Page Interactive Data (embedded within the ~~Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002~~

Inline XBRL document)

~~31.2~~

Certification by the Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

~~32.1~~

~~Certification by the Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002~~

~~101.INS~~

~~XBRL Instance~~

~~101.SCH~~

~~XBRL Taxonomy Extension Schema~~

~~101.CAL~~

~~XBRL Taxonomy Extension Calculation~~

~~101.DEF~~

~~XBRL Taxonomy Extension Definition~~

~~101.LAB~~

~~XBRL Taxonomy Extension Label~~

~~101.PRE~~

~~XBRL Taxonomy Extension Presentation~~

~~SIGNATURES~~

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


		RADIANT LOGISTICS, INC.

Date: ~~February 8, 2018~~March 27, 2023		/s/ Bohn H. Crain
		Bohn H. Crain
		Chief Executive Officer
		(Principal Executive Officer)

Date: ~~February 8, 2018~~March 27, 2023		/s/ Todd E. Macomber
		Todd E. Macomber
		Senior Vice President and Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

	RADIANT LOGISTICS, INC. STOCKHOLDERS' EQUITY
(In thousands, except share data)	Preferred Stock				Common Stock				Additional Paid-in			Treasury			Retained			Accumulated Other Comprehensive			Non- Controlling			Total Stockholders’
	Shares		Amount		Shares		Amount		Capital			Stock			Earnings			Income (Loss)			Interest			Equity
Balance as of June 30, 2017		839,200	$	1		49,085,417	$	30	$	116,172		$	(253	)	$	7,397		$	65		$	53		$	123,465
Issuance of common stock to former shareholders of acquired operations		—		—		133,082		1		672			—			—			—			—			673
Share-based compensation		—		—		—		—		730			—			—			—			—			730
Cashless exercise of stock options		—		—		64,888		—		(129	)		—			—			—			—			(129	)
Preferred dividends paid		—		—		—		—		—			—			(1,023	)		—			—			(1,023	)
Distribution to non-controlling interest		—		—		—		—		—			—			—			—			(84	)		(84	)
Net income		—		—		—		—		—			—			4,669			—			117			4,786
Comprehensive loss		—		—		—		—		—			—			—			(595	)		—			(595	)
Balance as of December 31, 2017		839,200	$	1		49,283,387	$	31	$	117,445		$	(253	)	$	11,043		$	(530	)	$	86		$	127,823

(In thousands)
2018 (remaining)	$	4,504
2019		8,690
2020		8,379
2021		7,169
2022		4,684
Thereafter		1,079

Total minimum lease payments	$	34,505

(In thousands)	Lease Termination Costs			Retention Costs			Total
Balance as of June 30, 2017	$	1,614		$	400		$	2,014
Transition and lease termination costs		107			—			107
Payments and other		(356	)		(63	)		(419	)

Balance as of December 31, 2017	$	1,365		$	337		$	1,702

(In thousands)
2018 (remaining)	$	4,948
2019		9,802
2020		9,574
2021		9,394
2022		8,841
Thereafter		27,554

	$	70,113

(In thousands)
2018 (remaining)	$	1,761
2019		3,591
2020		3,838
2021		4,101
2022		26,300
Thereafter		9,110

	$	48,701

	Number of Shares			Weighted Average Grant- Date Fair Value
Balance as of June 30, 2017		258,636		$	2.86
Granted		251,151			4.97
Forfeited		(8,953	)		5.05

Balance as of December 31, 2017		500,834		$	3.88

	Three Months Ended December 31, 2017												Three Months Ended December 31, 2016
	United States			Canada			Corporate/ Eliminations			Total			United States			Canada			Corporate/ Eliminations			Total
Transportation revenue
Forwarding	$	147,096		$	1,211		$	(297	)	$	148,010		$	142,906		$	423		$	(121	)	$	143,208
Brokerage		31,680			23,470			(126	)		55,024			31,317			23,740			(1,305	)		53,752
		178,776			24,681			(423	)		203,034			174,223			24,163			(1,426	)		196,960

Cost of transportation
Forwarding		109,474			945			(297	)		110,122			101,781			242			(121	)		101,902
Brokerage		29,222			19,628			(126	)		48,724			28,652			19,508			(1,305	)		46,855
		138,696			20,573			(423	)		158,846			130,433			19,750			(1,426	)		148,757

Net transportation revenue
Forwarding		37,622			266			—			37,888			41,125			181			—			41,306
Brokerage		2,458			3,842			—			6,300			2,665			4,232			—			6,897
		40,080			4,108			—			44,188			43,790			4,413			—			48,203
Net transportation margins		22.4	%		16.6	%					21.8	%		25.1	%		18.3	%					24.5	%

Other value-added services		727			2,953			—			3,680			988			933			—			1,921
Net revenues	$	40,807		$	7,061		$	—		$	47,868		$	44,778		$	5,346		$	—		$	50,124

	Three Months Ended December 31, 2017										Three Months Ended December 31, 2016
Operating expenses as a percent of net revenue:	United States			Canada			Corporate/ Eliminations	Total			United States			Canada			Corporate/ Eliminations	Total
Operating partner commissions		47.9	%		0.0	%	N/A		40.8	%		51.3	%		0.0	%	N/A		45.8	%
Personnel costs		26.1	%		49.8	%	N/A		31.1	%		21.5	%		48.7	%	N/A		25.8	%
Selling, general and administrative expenses		10.8	%		27.7	%	N/A		14.3	%		8.8	%		18.1	%	N/A		11.1	%

	Six Months Ended December 31, 2017												Six Months Ended December 31, 2016
	United States			Canada			Corporate/ Eliminations			Total			United States			Canada			Corporate/ Eliminations			Total
Transportation revenue
Forwarding	$	290,696		$	2,818		$	(464	)	$	293,050		$	281,625		$	1,438		$	(185	)	$	282,878
Brokerage		61,941			43,287			(441	)		104,787			63,175			46,772			(2,589	)		107,358
		352,637			46,105			(905	)		397,837			344,800			48,210			(2,774	)		390,236

Cost of transportation
Forwarding		215,853			2,254			(464	)		217,643			199,992			1,090			(185	)		200,897
Brokerage		57,152			36,321			(441	)		93,032			57,924			38,649			(2,589	)		93,984
		273,005			38,575			(905	)		310,675			257,916			39,739			(2,774	)		294,881

Net transportation revenue
Forwarding		74,843			564			—			75,407			81,633			348			—			81,981
Brokerage		4,789			6,966			—			11,755			5,251			8,123			—			13,374
		79,632			7,530			—			87,162			86,884			8,471			—			95,355
Net transportation margins		22.6	%		16.3	%					21.9	%		25.2	%		17.6	%					24.4	%

Other value-added services		1,758			5,096			—			6,854			2,090			1,688			—			3,778
Net revenues	$	81,390		$	12,626		$	—		$	94,016		$	88,974		$	10,159		$	—		$	99,133

	Six Months Ended December 31, 2017										Six Months Ended December 31, 2016
Selected operating expenses as a percent of net revenue:	United States			Canada			Corporate/ Eliminations	Total			United States			Canada			Corporate/ Eliminations	Total
Operating partner commissions		48.2	%		0.0	%	N/A		41.7	%		52.0	%		0.0	%	N/A		46.7	%
Personnel costs		25.1	%		55.3	%	N/A		30.7	%		21.4	%		51.5	%	N/A		26.0	%
Selling, general and administrative expenses		10.3	%		31.9	%	N/A		14.6	%		8.7	%		20.2	%	N/A		11.4	%