Radiant Logistics, Inc., and its consolidated subsidiaries (the “Company”, “we” or “us”) operates as a third-party logistics company, providing technology-enabled global transportation and value-added logistics solutions primarily in the United States and Canada. We service a large and diversified account base across a range of industries and geographies, which we support from an extensive network of operating locations 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 asset-based transportation companies, including motor carriers, railroads, airlines and ocean lines in 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 transportation services involve arranging 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. We also provide other value-added logistics services including materials management and distribution services (collectively, “materials management and distribution” or “MM&D” services), and customs house brokerage (“CHB”) services to complement our core transportation service offering.

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, 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.

Correction of Previously Reported Interim Condensed Consolidated Quarterly Financial Statement

The interim consolidated financial statements include corrections to the three months ended September 30, 2021, which were presented in Note 20 to the audited consolidated financial statements and notes thereto for the fiscal year ended June 30, 2022, in 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 an increase to net income attributable to Radiant Logistics, Inc. by $530 and an increase to basic and diluted earnings per share by $0.01 from amounts previously reported for the three months ended September 30, 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 months ended September 30, 2021 were not impacted.

The restated consolidated balance sheet line items as of September 30, 2021 are as follows:


	Originally Reported		Adjustment		Restated
(In thousands)	Q1		Q1		Q1
Contract assets	$	32,625	$	30,567	$	63,192
Total current assets		208,187		30,567		238,754
Total assets		383,074		30,567		413,641
Accounts payable		98,374		29,212		127,586
Operating partner commissions payable		15,645		382		16,027
Accrued expenses		7,162		49		7,211
Income tax payable		134		227		361
Total current liabilities		136,669		29,870		166,539
Total liabilities		217,088		29,870		246,958
Retained earnings		67,446		697		68,143
Total equity		165,986		697		166,683

The restated line items of the consolidated statements of comprehensive income for the three months ended September 30, 2021 are as follows:


	Originally Reported			Adjustment			Restated
(In thousands, except per share data)	Q1			Q1			Q1
Revenues	$	286,115		$	13,283		$	299,398
Cost of transportation and other services		221,233			13,447			234,680
Operating partner commissions		28,465			(904	)		27,561
Personnel costs		15,616			37			15,653
Income from operations		9,759			703			10,462
Income tax expense		(2,229	)		(173	)		(2,402	)
Net income		7,165			530			7,695
Net income attributable to Radiant Logistics, Inc.		7,079			530			7,609

Income per share:
Basic	$	0.14		$	0.01		$	0.15
Diluted	$	0.14		$	0.01		$	0.15

The restated line items of the consolidated cash flow statements for the three months ended September 30, 2021 are as follows:


	Originally Reported			Adjustment			Restated
(In thousands)	Three Months Ended September 30, 2021			Three Months Ended September 30, 2021			Three Months Ended September 30, 2021
OPERATING ACTIVITIES:
Net income	$	7,165		$	530		$	7,695
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH (USED FOR) OPERATING ACTIVITIES
CHANGES IN OPERATING ASSETS AND LIABILITIES:
Contract assets		(4,897	)		(13,283	)		(18,180	)
Income tax receivable/payable		(2,583	)		173			(2,410	)
Accounts payable		10,055			13,447			23,502
Operating partner commissions payable		1,866			(904	)		962
Accrued expenses, other liabilities, and operating lease liability		(1,528	)		37			(1,491	)
Net cash (used for) operating activities		(15,797	)		—			(15,797	)