Executive Summary / Key Takeaways

• United Express Inc. operates a small-scale transportation and logistics business facing declining revenue and intense competition from large, well-capitalized players.
• The company acquired assets for a potential combat sports promotion venture, including a Nevada promoter license and media rights, representing a strategic pivot towards diversification.
• Severe capital constraints currently prevent the company from planning or holding combat sports events, leaving this potential growth avenue dormant.
• Recent financial results show a significant reduction in net loss, primarily driven by lower operating expenses related to the absence of prior-year acquisition costs, rather than improved performance in the core logistics business.
• UNXP faces significant liquidity challenges with a minimal cash balance and a stated need for substantial external financing, raising a going concern risk.

Setting the Scene: A Small Player in a Giant's Arena

United Express Inc., incorporated in 2017, operates primarily as a general transportation and logistics provider based in Nevada. Its core business involves arranging and managing the delivery of merchandise and other items for companies and individuals across the United States, including providing dispatch services. In this capacity, UNXP is a small entity operating within a vast and highly competitive industry dominated by global giants like United Parcel Service (UPS), FedEx (FDX), and XPO Logistics (XPO).

The competitive landscape is characterized by massive scale, extensive networks, and significant technological investment. Companies like UPS and FedEx command substantial market share (UPS around 20% in U.S. domestic parcel, FedEx around 15-20%), leveraging sophisticated technology for route optimization, tracking, and operational efficiency that enables faster processing speeds and lower costs per unit at scale. XPO Logistics holds a significant position in trucking and logistics, also benefiting from scale and technology.

In contrast, UNXP's competitive position appears to rely more on a regional focus and potentially greater flexibility in handling specific customer needs, such as integrating used appliance sales logistics. However, the company's scale is minuscule compared to its larger rivals, and the company appears to lack specific, differentiated technology that provides a significant competitive moat. This lack of a technological edge, coupled with limited scale, makes UNXP vulnerable to the superior efficiency, reach, and pricing power of the industry leaders.

Adding a layer of complexity and potential strategic shift, in September 2023, UNXP acquired assets related to combat sports promotion. This acquisition included a Nevada State Athletic Commission Professional Promoter license, perpetual worldwide media rights for 40 previously produced shows, and production/staging equipment. The stated rationale was to assess the viability of promoting live kickboxing, boxing, and mixed martial arts events in Nevada, leveraging the acquired infrastructure and licenses. This move represents an attempt to diversify beyond the challenging logistics sector, but its success is far from guaranteed.

Financial Performance: A Mixed Picture Driven by Cost Cuts, Not Revenue Growth

Analyzing UNXP's recent financial performance reveals a company facing significant headwinds in its core business, while simultaneously benefiting from the absence of one-time costs incurred in the prior year.

For the nine months ended March 31, 2025, UNXP reported total revenues of $64,232, primarily derived from logistics services. This represents a substantial decline compared to the $210,450 in revenue generated during the same period in 2024, indicating a significant contraction in the core logistics operations. Gross profit also fell commensurately, from $169,900 in the prior year period to $29,680 in the current period.

Despite the sharp drop in revenue and gross profit, the company's net loss improved dramatically. For the nine months ended March 31, 2025, the net loss was $19,845, a stark contrast to the $2.00 million net loss reported for the nine months ended March 31, 2024. This improvement was not driven by operational success in logistics, but rather by a massive reduction in operating expenses. Total operating expenses plummeted from $2.17 million in the 2024 period to just $49,525 in the 2025 period. The primary driver of this reduction was the absence of significant consultancy fees ($0 in 2025 vs. $2.12 million in 2024) and share-based payments related to the prior year's acquisition.

While the reduced net loss is superficially positive, the underlying trend of declining revenue in the core business is concerning. The improvement in profitability metrics like operating and net margins (TTM operating margin of -78.57%, net margin of -552.43%) reflects the impact of the prior year's large expenses rather than sustainable operational efficiency in the current business model. The TTM gross profit margin stands at 43.33%, but this is based on significantly lower revenue volume.

Liquidity and Capital Constraints: The Overarching Challenge

The most critical factor impacting UNXP's current state and future prospects is its severe lack of capital. As of March 31, 2025, the company held a mere $265 in cash. This minimal cash balance is explicitly deemed insufficient by management to meet working capital and capital expenditure needs.

While the company reported net cash provided by operating activities of $15,337 for the nine months ended March 31, 2025 (compared to net cash used of $135,039 in the prior year period, again influenced by the large expenses), this modest inflow is insufficient to overcome the extremely low starting cash position or fund any significant strategic initiatives.

Management clearly states the need for substantial additional revenue generation or external debt or equity financing. However, there are no current commitments for additional capital, and the company provides no assurance that it can obtain the necessary funding on acceptable terms, or at all. This precarious financial position has led to a going concern warning, highlighting the substantial doubt about the company's ability to continue operations without securing significant additional funding.

The Dormant Potential: Combat Sports Assets Awaiting Capital

The acquisition of combat sports assets in September 2023 provided UNXP with the foundational elements to enter a new market: a promoter license, media rights, and equipment. The strategic intent was to assess and potentially capitalize on the combat sports promotion business in Nevada. The acquired production and stage equipment, valued at $610,417, represents a tangible asset intended for this purpose, although it had not been placed into service as of March 31, 2025.

However, this strategic pivot remains largely unrealized. The company explicitly states that holding combat sports events requires significant planning and capital. Crucially, "At present we lack the capital resources to plan and hold such events." This lack of funding means the acquired assets, while providing the necessary infrastructure and licenses, are currently dormant. Potential earnings from this segment are contingent on securing capital and successfully executing events, with management estimating a 6-9 month delay before any potential earnings might be realized if events were held.

The combat sports venture represents a potential avenue for diversification and growth away from the challenging logistics market. However, without the necessary funding to activate this segment, it remains a strategic ambition rather than an operational reality, contributing to assets on the balance sheet ($13.10M in intangibles, including the license and media rights) but generating no revenue or cash flow.

Risks on the Horizon

Beyond the critical capital constraint and going concern risk, UNXP faces other pertinent challenges. The logistics business is susceptible to fluctuations in oil prices, which increase operating costs. While the company intends to pass these costs on through price increases, this could impact competitiveness. Furthermore, the company acknowledges a concentration risk due to a limited customer base in its logistics operations and has not been able to diversify it, leaving it vulnerable to the loss of key clients.

The competitive intensity of the logistics market, dominated by players with superior scale, technology, and financial resources, remains a fundamental risk to the core business's ability to generate sufficient revenue and profitability. For the combat sports segment, the risks include the significant capital required, the uncertainty of successfully promoting events, and the potential for earnings to be delayed or not materialize.

Outlook: Dependent on Capital Infusion

UNXP has not provided explicit forward-looking financial guidance. The outlook for the company is heavily dependent on its ability to secure substantial external financing. Without it, the core logistics business faces ongoing revenue pressure and intense competition, while the potential of the acquired combat sports assets will remain untapped.

A successful capital raise could potentially allow the company to invest in and revitalize its logistics operations or, more likely given the recent acquisition, fund the planning and execution of combat sports events. The strategic narrative hinges on whether UNXP can bridge the gap between its current undercapitalized state and the funding required to pursue either or both business avenues effectively.

Conclusion

United Express Inc. presents a complex and highly speculative investment case. The company's core logistics business is struggling, evidenced by declining revenue, and operates in a market where it is significantly outmatched by larger, more efficient, and technologically advanced competitors. The strategic move into combat sports promotion, while offering potential diversification, is currently stalled due to a critical lack of capital.

The recent reduction in net loss is a result of lower expenses following a prior-year acquisition, not an indication of improved operational health in the core business. With a minimal cash balance and a stated need for significant external funding that is not assured, the company faces a material going concern risk. The investment thesis for UNXP is therefore not based on current performance or competitive strength, but almost entirely on the highly uncertain prospect of securing the capital necessary to unlock the dormant potential of its combat sports assets or somehow revitalize its logistics operations in a challenging market. Investors considering UNXP must weigh the potential upside of a successful strategic pivot against the immediate and significant financial challenges and execution risks.