Total operating expenses were $4,751,846 in the six months ended June 30, 2022, compared to $3,129,601 in the same period of 2021, representing an increase in operating expenses of $1,622,245, or 51.8%, from the six months ended June 30, 2021. The increase in operating expenses was primarily attributable to higher wage expense from additional managerial personnel added during the period for our newer divisions of logistics brokerage and heavy haul, as well as general corporate expenses.
Loss From Operations
As a result of the preceding, our loss from operations was $2,154,841 during the six months ended June 30, 2022, compared with $4,939,718 for the same period of 2021. This $2,784,877, or 56.4%, improvement in our loss from operations was primarily attributable to gross margin improvement and higher revenues reducing our gross loss during the six month period ended June 30, 2022 compared to the year ago period.
Other Income (Expense)
Total other expense was $4,463,327 for the six months ended June 30, 2022 compared to other income of $711,790 for the six months ended June 30, 2021. Interest expense was $4,797,731 and $2,570,777 for the six months ended June 30, 2022 and 2021, respectively, as a result of increased non-cash amortization of debt costs associated with convertible debt issued in 2021. Additionally, in the prior period, the Company recognized a gain of $3,148,100 from PPP loan forgiveness.
Net Loss From Continuing Operations
The result was that our net loss from continuing operations was $6,618,168 during the six months ended June 30, 2022, compared with $4,227,928 for the same period of 2021. This $2,390,240, or 56.5%, increase in our net loss from continuing operations was primarily attributable to the prior period including a $3,148,100 gain related to PPP loan forgiveness. Excluding this one time item, the Company improved its net loss from continuing operations due to the gross margin improvements described above.
Liquidity and Capital Resources
Our cash flows from operations are primarily funded through our financing activities, including our accounts receivable line of credit facility, notes and loans, stock sales, issuing our stock for services and various leases. Currently, we believe we will need to continue to utilize lines of credit, borrowings, and stock sales to sufficiently sustain our current level of operations for the next 12 months. At present, we believe the industry and general domestic economic activity has realized improvement relative to the period one year ago as commodity prices have risen generating higher customer activity in our industrial division, as well as economic improvement from reduced COVID-19 pandemic prevalence in the markets we operate. These economic improvements, currently anticipated by the Company are partially offset by believed inflationary pressures such as higher fuel prices. We likely will require additional capital to maintain or expand operations. Additionally, we believe any material acquisition of another operating company would require additional outside capital consisting of debt or equity. Failure to secure additional funds could significantly hamper our ongoing operations particularly if a down cycle in our industry continues further. As the business cycle improves, and the pandemic dissipates in the markets we serve, we plan to improve our cash flows provided in operating activities by focusing on increasing sales by increasing utilization of the assets we have acquired and offering higher value services that receive higher gross margins. However, there can be no assurances given of industry improvement, pandemic relief or improved cash flows of our business.
Historically, we have funded our capital expenditures internally through cash flow, leasing, and financing arrangements. We intend to continue to fund future capital expenditures through cash flow, as well as through capital available to us pursuant to our line of credit, capital from the sale of our equity securities and through commercial leasing and financing programs.
On September 7, 2021, 5J Trucking, 5J Oilfield, 5J Transportation, 5J Brokerage and 5J Specialized LLC (the “5J Entities”) entered into a loan agreement (“Loan Agreement”) and security agreement (“Security Agreement”) with Amerisource Funding Inc. (“Amerisource”) in the total amount of $12,740,000. Pursuant to the terms of the Loan Agreement, the 5J Entities will pay interest only on a monthly basis through October 1, 2022 and principal and interest thereafter over the remaining term through September 7, 2026. The Note bears interest at a rate of 12.0% per annum and may be prepaid early at any time without penalty. The 5J Entities will also pay an annual collateral management fee to Amerisource in the amount of 0.40% of the total loan amount payable at the closing and each anniversary during the term of the note. Amerisource is a related party of the Company due to its holdings of common stock and convertible debt of the Company and has an officer on the Board of Directors of the Company. On March 15, 2022, each of our 5J subsidiaries entered into an agreement with Amerisource pursuant to which Amerisource agreed to increase the loan commitment to the 5J entities from $12,740,000 to $16,740,000. The Company received $4,000,000 of cash proceeds from this agreement.