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PART I
Forward-Looking Statements
The Securities and Exchange Commission (“SEC”) encourages us to disclose forward-looking information so that investors can better understand future prospects and make informed investment decisions.
This Annual Report on Form 10-K contains forward-looking statements with Management Discussion. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about our industry, our beliefs and our assumptions. Words such as “may,” “expect,” “believe,” “anticipate,” “estimate,” “project,” or “continue” or comparable terminology used in connection with any discussion of future operating results or financial performance identify forward-looking statements. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this prospectus. All forward-looking statements reflect our present expectation of future events and are subject to a number of important factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The factors listed in the “Risk Factors” section in this report, as well as any cautionary language in this prospectus, provide examples of these risks and uncertainties. The safe harbor for forward-looking statements is not applicable to this offering pursuant to Section 27A of the Securities Act of 1933.
Item 1. Business
We are an Emerging growth company with permanent revenue generating operations. We were formed on June 23, 2017 and have two years of business experience.
The United Express intends to operate as a general company of transportation and delivery of merchandise, household goods, and other items for companies and individuals across the United State. As such, it is difficult to determine the average customer of the Company as the business will have the licensure and the ability to effectively arrange for the transportation any type of merchandise. Management anticipates that the business will receive orders for service from companies seeking to move merchandise, as well as, people relocating to different areas of the target regional market area. A primary concern for the Company is its ability to quickly respond to customer request, give affordable price for the services, and carry the full responsibility from pick up to drop off. In 2018-2019, the price of oil and its associated refined energy products has been within a reasonable, steady range. Lack of major volatile in oil prices has caused the freight and logistic industries costs to be on a straight level during last 12 months. In the event of an increase in the price of fuel, we will also reasonably increase prices (at a standardized rate of markup) to ensure the profitability of the business. The Company hires drivers from any state with CDL or class “B” driver license at least one year of experience.
As the transportation provider we provide shipping by cargo vans based upon delivery requirements, transportation routes, type of shipment, equipment requirements, cargo size, delivery time and price.
During reported period our business activities have focused mostly on the development of our business plan, locating producers of goods, despatchers, cargo brokers, researching for new customers, drivers, storages, van supplies, development of optimal traffic routes.
Revenues
Our revenues from July 1, 2018 to June 30, 2019 was $89,964. We currently have many customers who working with us. We generated revenue from transportation services and logistics.
Marketing Program
We expect that the business will expand during the next five years of operation. Mr. Stoukan intends to implement marketing campaigns that will effectively target small businesses, medium sized businesses, product sellers, and distribution companies within the target market.
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We expect to do the next business activities in our next 12 months plan of operation, summarized as follows:
To maintain the company's performance during the next 12 months, we require $841,000 plus $40,000 to be a reporting company.
Additional financing is required for us to implement these planned activities. No assurance can be given that any financing, borrowing or sale of equity will be possible when needed or that we will be able to negotiate acceptable terms in a timely fashion or even available at all. In addition, our access to capital is affected from our ability to be profitable and generate enough revenue, as well as our own financial condition.
Below a breakdown of our estimated expenses for the next twelve months:
Gross expenses for one van $168,200 and for the 5 vans $841,000
Costs associated with being a reporting company $40,000
Total: $881,000
For the period from July 1, 2018 through June 30, 2019, our remaining capital was $62,671 in cash and for the period from July 1, 2017 through June 30, 2018 our remaining capital was $1,501 in cash and this is not enough to cover our monthly operating expenses.
Industry Background and Competition
Less demanded rail transport represents good growth opportunities for auto logistic, therefore the transportation and logistics services in US develops and grows. On the one hand it is very good but on the other hand in the transport industry is very high competition. Our competitors consist of others small and medium nationwide transportation companies that operate their own paid off vans, with own body shops for van repair and stable customers.
Advertising
We do PR, browse the sites of companies who need transportation service, collect information directly from transportation brokers, manufacturers and cargo owners. We do not carry out any additional advertising and mostly provides personal meetings, calls and leads. We suppose these forms of advertising are the most effective for reaching potential clients in our target markets.
Business Strategy
Transportation and logistics service as a barometer of the U.S. economy, because it represents significate percent of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods, according to the American Trucking Associations. ATA are expecting transportation business continued growth and going forward.
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We provide a comprehensive management service for long and short distance logistics for clients in the Company’s target market area. The Company offers to our clients the transportation ability to all of their hauling needs through one business which will provide them with the ability to manage their shipments in a cost and time effective manner. It is our first main activity. The prices are determined on a shipment basis to accommodate our customers’ needs based on our transportation capabilities, size and type of shipment, distance, route gas price, delivery time.
Our second business activity is a dispatch service to improve the efficiency of the clients’ supply chain management and delivery operations. These services are now heavily in demand among product distributors and retailers.
Our business strategy steps below:
Pricing
As a Startup Business we expect gross revenue $144,000 for one year for one cargo van and one driver.