IOVA

Business Context and Reporting Period

This Form 10-Q covers the quarterly period ended March 31, 2009, for Freight Management Corp. (Note: The input metadata references "IOVANCE BIOTHERAPEUTICS, INC.", but the filing text explicitly identifies the registrant as Freight Management Corp., a Nevada corporation). The company is classified as a development stage company with no revenue from operations to date. Its primary business plan involves developing an internet-based logistics planning system named "FRINFO." The company is currently a shell company with limited operations, trading on the OTC Bulletin Board under the symbol "FGGT."

Key Financial Metrics

Debt and Liquidity: The company has no formal debt but owes $5,220 to a director for operating expenses. This amount is unsecured, interest-free, and has no fixed repayment terms, though management intends to repay it within 12 months if cash permits. Cash flow from operations was negative $1,337 for the quarter.

Material Changes vs. Prior Period

• Net Loss Reduction: The net loss decreased significantly from $25,296 in Q1 2008 to $6,612 in Q1 2009. This improvement is primarily due to the cessation of significant software development costs ($7,550 in Q1 2008 vs. $0 in Q1 2009) and a reduction in general and administrative expenses ($17,413 vs. $6,279).
• Liquidity Deterioration: Cash on hand dropped from $32,250 at the end of Q1 2008 to $1,568 at March 31, 2009. Consequently, the company moved from a positive working capital position of $3,047 to a deficiency of $1,332.
• Liabilities Increase: Current liabilities increased from $3,328 to $8,270, driven largely by the increase in amounts due to the director ($3,320 to $5,220) and accounts payable ($8 to $3,050).

Outlook, Risks, and Management Commentary

Going Concern: The filing explicitly states that substantial doubt exists regarding the company's ability to continue as a going concern. Management estimates they have sufficient funds to operate in a "maintenance mode" for only 1-2 months without additional financing.

Capital Requirements: Management estimates a need for $30,000 to $35,000 to complete the development of the FRINFO product and an additional $70,000 total to sustain operations for the next 12 months. The company has not been successful in raising this capital to date.

Strategic Alternatives: Due to the lack of funding, directors are analyzing alternatives including:

• Raising additional equity financing (public or private placement).
• Pursuing a merger, acquisition, or reverse merger with an established business entity, which would likely result in the closure of the current business and a change in management.

Internal Controls: Management identified a material weakness in internal controls due to the lack of a functioning audit committee and a lack of a majority of independent directors. Remediation plans include appointing outside directors, though success is uncertain given the company's financial status.

Investor Verification Checklist

• Capital Sufficiency: Verify if the company has secured the estimated $70,000 needed for survival, as current cash ($1,568) is insufficient for more than two months of operations.
• Related Party Debt: Confirm the status of the $5,220 owed to the director and whether it will be converted to equity or forgiven given the liquidity crisis.
• Merger Activity: Monitor for any Form 8-K filings regarding potential mergers or acquisitions, as management has indicated this is a primary survival strategy.
• Product Viability: Assess the progress of the "FRINFO" software, which remains incomplete and has generated zero revenue since inception.
• Board Composition: Check for updates on the appointment of independent directors to address the material weakness in internal controls.