LAS VEGAS, May 15, 2025 (GLOBE NEWSWIRE) -- Jet.AI Inc. (the “Company”) (Nasdaq: JTAI), a pure-play artificial intelligence (“AI”) data center company operating aviation-specific AI software, today announced financial results for the first quarter ended March 31, 2025. Recent Operational Highlights Signed Letter of Intent (“LOI”) to form a joint venture with Consensus Core Technologies Inc. (“Consensus Core”) to pursue the development of two hyperscale data-center campuses in Midwestern Canada and Maritime ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number: 001-40725 Jet.AI Inc. (Exact Name of Registrant As Specified In Its Charter) Delaware 93-2971741 (State or other jurisdictio ...

LAS VEGAS, March 27, 2025 (GLOBE NEWSWIRE) -- Jet.AI Inc. (the “Company”) (Nasdaq: JTAI), a pure-play artificial intelligence (“AI”) data center company operating aviation-specific AI software, today announced financial results for the full year ended December 31, 2024. As of March 25th, 2025, the Company had a cash balance of $12.5 million and no debt. In addition, it held $4.2 million in aircraft-related deposits. Together, these amounts - totaling $16.7 million - are expected to be sufficient to satisfy ...

Financial Performance and Compliance - The company's stockholders' deficit as of December 31, 2023, was $(3,963,039), indicating a significant financial challenge[26] - The company received a notification from Nasdaq on December 1, 2023, regarding non-compliance with the minimum stockholders' equity requirement of $10 million[26] - The minimum bid price of the company's common stock was below $1.00 for 30 consecutive business days, leading to a second notification from Nasdaq[27] - The Company received a notification from Nasdaq on May 30, 2024, indicating non-compliance with the Minimum Stockholders' Equity Requirement, leading to a hearing request to appeal the delisting notice[29] - A reverse stock split at a ratio of 225-for-1 was executed on November 12, 2024, resulting in regained compliance with both the Minimum Stockholders' Equity Requirement and Minimum Bid Price Requirement as of November 26, 2024[30] - The Company is subject to a Mandatory Panel Monitor for one year starting November 26, 2024, which could lead to delisting if non-compliance recurs[30] - The company's stockholders' deficit as of December 31, 2023, was $(3,963,039), falling below the $10 million minimum required for continued listing on Nasdaq[26] AI and Technology Initiatives - The company launched two AI-enhanced booking apps, CharterGPT and Ava, in 2023 and 2024, respectively, to improve its service offerings[23] - The company is focusing on enhancing the AI functionality of its platforms, including CharterGPT and Ava, as part of its growth strategy[25] - The company has established a B2B software platform, Jet.AI Operator Platform, to provide SaaS products to aircraft owners and operators[24] - The company launched the CharterGPT app in 2023, automating charter bookings and enhancing user experience through an API connection with Avinode[43] - The AI model "Ava" was launched in late 2024, allowing customers to book private jets via a toll-free number or SMS, providing real-time availability and pricing[44] - Reroute AI was launched in 2024, enabling FAA Part 135 operators to earn revenue on empty flight legs through a web-based platform[45] - DynoFlight, launched at the end of 2023, allows operators to track emissions and purchase carbon offset credits, with integration plans with FL3XX announced in February 2024[46] - The Flight Club API enables FAA Part 135 operators to sell private jet services by the seat, automating ticketing and compliance processes[47] - The company aims to enhance the AI functionality of its existing platforms, including Reroute AI and DynoFlight[25] - The company is developing AI-powered features for CharterGPT, including Predictive Destination Optimization, which utilizes historical traffic patterns and traveler preferences to recommend optimal private airports[59] - CharterGPT will analyze historical pricing data to predict the best departure date for the lowest charter flight prices, considering approximately 35 blackout days annually[60] Strategic Transactions and Business Focus - The company is exploring strategic transactions, including a potential merger, to maximize stakeholder value[16] - The Company entered into a Merger Agreement with flyExclusive on February 13, 2025, involving the distribution of shares of SpinCo to stockholders and the merger of SpinCo into flyExclusive[33] - Following the Transactions, the Company will cease operations in the fractional and jet card business and focus on AI sector opportunities[35] - The company plans to divest substantially all of its fractional and jet card business and related assets in a proposed transaction with flyExclusive[33] - Following the proposed transaction, the company will focus on expanding its AI operations and developing new services and platforms[35] Market Competition and Industry Landscape - The company faces significant competition in the aviation industry, which may impact its market position and financial performance[19] - The private air travel industry is highly competitive, with established players like NetJets, FlexJet, and WheelsUp competing for passengers through various pricing plans and services[75] - Competitors have larger fleets and greater financial resources, allowing them to respond quickly to market changes, which poses a disadvantage for the company[77] - In 2018 and 2019, VistaJet acquired XOJET and JetSmarter, indicating increased consolidation in the industry that could intensify competition[78] - The competitive landscape includes established players like NetJets and FlexJet, with significant consolidation in the industry potentially intensifying competition[75][78] Operational and Regulatory Environment - The company is subject to strict regulations from the DOT and FAA, which govern air transportation and safety standards[82][84] - The company’s operations are influenced by a highly regulated environment, which includes compliance with TSA mandates for passenger screening[86] - The company’s financial performance and market opportunities are subject to numerous risks and uncertainties, including economic downturns and regulatory changes[16] Marketing and Customer Focus - The company is focused on high-net-worth individuals for marketing, utilizing online, television, and event marketing strategies to expand its reach[63] - The company believes that combining private jet on-demand services with commercial airline availability will provide optimum flexibility and cost efficiency for clients[65] - The company estimates that 30 days per year are extremely difficult for private flying without guaranteed access, highlighting the importance of its jet membership program[70] Fleet and Aircraft Management - The company aims to expand its fleet with larger aircraft capable of longer distances as part of its historical strategy[25] - The company plans to gradually expand its fleet with larger light jets and super-mid-size aircraft, having entered into a purchase agreement for three Citation CJ4 Gen 2 aircraft, expected for delivery in 2026[50] - The company’s aircraft fleet consists of five aircraft, including three HondaJet Elites and one Citation CJ4 Gen 2, with a focus on cost efficiency and spacious interiors[66] - Cirrus, the largest private jet charter company in Las Vegas, provides management services for the company's aircraft, ensuring compliance with FAA regulations[72] - The company has entered into agreements with Cirrus for Executive Aircraft Management and Charter Services, leveraging Cirrus's 40 years of experience in managing and operating aircraft[71][72]

Core Insights - Jet.AI Inc. has made significant operational advancements and strategic adjustments, focusing on enhancing shareholder value through a proposed all-stock transaction with flyExclusive [1][2][3] Group 1: Strategic Developments - Jet.AI signed a strategic agreement to sell its aviation assets to flyExclusive in an all-stock deal, allowing shareholders to retain Jet.AI stock and receive new shares in flyExclusive [2][3] - The decision to sell to flyExclusive is based on the potential for shareholders to benefit from the competitive landscape of flyExclusive and the growth in artificial intelligence [3][5] - Jet.AI aims to grow in the fractional aviation market, initially focusing on the super-light category before moving to the super-mid category, which involves higher-value aircraft [4] Group 2: AI and Infrastructure - Jet.AI has launched several AI-driven initiatives, including Ava, CharterGPT, Reroute AI, and DynoFlight AI, to enhance private aviation services [6] - The company acknowledges challenges in AI infrastructure, particularly the need for reliable computational resources to support its AI applications [7][8] - The demand for AI data centers is expected to grow significantly, with projections indicating that data centers could consume 4% of global electricity by 2030 [8][9] Group 3: Financial Insights - Building data centers is capital-intensive, costing approximately $10 million per megawatt, with each megawatt generating around $1 million in Net Operating Income (NOI), resulting in a 10% yield on construction costs [12][15] - The market typically values data center assets at a 6% capitalization rate, translating to significant potential valuations for constructed facilities [13] - Jet.AI plans to develop a 50-megawatt data center project as part of a larger campus, with the potential for phased construction to reach a full gigawatt of capacity [17] Group 4: Market Position and Future Outlook - Jet.AI is positioned to attract both hyperscalers and specialized tenants needing secure AI compute environments, as companies increasingly seek dedicated resources for proprietary data [18] - The company emphasizes that investments in AI data centers will strengthen its operational capabilities and create long-term shareholder value [19] - Jet.AI's trajectory indicates a focus on careful growth and a long-term perspective in the evolving AI landscape [22]

Core Viewpoint - Monteverde & Associates PC is investigating Jet.AI Inc. regarding its proposed merger with flyExclusive Inc., where Jet.AI shareholders will retain their stock and receive new Class A common shares in flyExclusive as part of the transaction [1]. Group 1: Company Overview - Monteverde & Associates PC is recognized as a Top 50 Firm by ISS Securities Class Action Services Report and has recovered millions of dollars for shareholders [1]. - The firm is headquartered in the Empire State Building in New York City and specializes in class action securities litigation [2]. Group 2: Legal Actions - The firm is actively investigating the merger between Jet.AI Inc. and flyExclusive Inc. to ensure shareholder interests are protected [1]. - Monteverde & Associates PC has a successful track record in trial and appellate courts, including the U.S. Supreme Court [2].

Core Points - flyExclusive Inc. has entered into a definitive agreement to acquire the aviation business of Jet.AI Inc., transforming Jet.AI into a pure-play AI solutions company [1][2] - The transaction is structured as an all-stock deal, with Jet.AI shareholders retaining their stock and receiving new Class A common shares in flyExclusive [5][6] - The acquisition is expected to provide flyExclusive with additional growth capital and enhance shareholder liquidity, while allowing Jet.AI to focus on its AI solutions [3][4] Transaction Details - The Business Combination will involve spinning off Jet.AI's charter business assets into a new entity ("SpinCo"), which will then be acquired by flyExclusive [2][5] - The purchase price will be based on Jet.AI's Net Cash, with a minimum requirement of $12 million, and the applicable premium percentage for the aviation business will range from 115% to 120% [5] - The transaction is anticipated to close in the second quarter of 2025, subject to various conditions including regulatory review and shareholder approval [6] Company Profiles - flyExclusive is a vertically integrated air carrier providing private jet experiences, operating a fleet of approximately 100 jets, and managing all aspects of customer experience [7] - Jet.AI operates in two segments: Software and Aviation, with offerings including the CharterGPT app and the Jet.AI Operator platform, aimed at enhancing the private jet booking experience [8]

Core Insights - Jet.AI Inc. has launched an innovative AI model named "Ava" to facilitate private jet bookings, enhancing customer experience and operational efficiency [1][4]. Company Overview - Jet.AI operates in two segments: Software and Aviation. The Software segment includes the B2C CharterGPT app and the B2B Jet.AI Operator platform, utilizing natural language processing and machine learning to improve the private jet booking experience [5]. - The Aviation segment encompasses jet aircraft fractions, jet card services, on-fleet charter, management, and buyer's brokerage [5]. - The company was founded in 2018 and is based in Las Vegas, Nevada, and San Francisco, California [5]. Product Features - Customers can book private jets by calling or texting +1-888-492-4538, where Ava provides real-time aircraft availability, transparent pricing, and expert guidance [3]. - The CharterGPT app has been updated with features such as enhanced push notifications for travel reservations, carbon tracking and offsetting options, and deep linking for trip sheets [4]. - Ava is designed to ensure a personalized experience for all customers, whether they are seasoned travelers or first-time flyers [3]. Future Developments - The company plans to enhance Ava's capabilities by enabling it to call charter operators to confirm availability and pricing, aiming to improve productivity while maintaining a human element in the booking process [4].

Revenue Performance - Revenues for Q3 2024 were $3.9 million, an increase of $0.5 million year-over-year and $0.8 million quarter-over-quarter[6]. - Software App and Cirrus Charter revenue totaled $2.4 million, up $0.5 million compared to the same period last year[7]. - Management and Other Services revenue reached $960,000, compared to $775,000 in the same period last year[8]. - Revenues for Q3 2024 reached $3,917,393, a 16.3% increase from $3,367,189 in Q3 2023[20]. Operating Performance - Operating loss decreased to approximately $2.9 million, down from $4.3 million in the same period last year[12]. - Gross loss for Q3 2024 was approximately $14,000, compared to a gross profit of $170,000 in the same period last year[11]. - Gross loss profit for Q3 2024 was $(13,886), compared to a profit of $170,441 in Q3 2023[20]. - Total operating expenses decreased to $2,868,052 in Q3 2024 from $4,436,956 in Q3 2023, a reduction of 35.4%[20]. - Net loss for Q3 2024 was $(2,881,882), an improvement from $(4,290,559) in Q3 2023, representing a 32.7% reduction[20]. - Net loss per share for Q3 2024 was $(43.82), an improvement from $(137.55) in Q3 2023[20]. Cash and Financing - Cash and cash equivalents as of September 30, 2024, were approximately $312,000, down from $528,000 as of June 30, 2024[13]. - Cash used in operating activities for the nine months ended September 30, 2024, was $(4,840,533), compared to $(2,744,630) in the same period of 2023[22]. - Cash and cash equivalents at the end of the period were $311,883, down from $903,909 in 2023[22]. - Net cash provided by financing activities was $3,064,795 in 2024, compared to $2,290,678 in 2023, an increase of 34%[22]. - Stock-based compensation for the nine months ended September 30, 2024, was $3,714,404, down from $5,424,158 in 2023[22]. Shareholder Actions - The company authorized a $2 million share repurchase program and completed a reverse stock split[4]. - Weighted average shares outstanding increased to 78,523 in Q3 2024 from 31,192 in Q3 2023[20]. Future Plans - Jet.AI plans to develop CharterGPT into an 'AI agent' for independent booking processes over the next few quarters[5]. - The company entered an agreement with Textron Aviation to purchase three Cessna Citation CJ4 jets, with deliveries scheduled for 2026[5]. Liabilities - Total liabilities as of September 30, 2024, were $8.39 million, down from $9.68 million at the end of the previous year[18].

Core Viewpoint - Jet.AI reported financial results for Q3 2024, highlighting growth in revenues and operational advancements, while also addressing strategic initiatives to enhance its business model and compliance with NASDAQ listing standards [1][3]. Financial Performance - Revenues for Q3 2024 were $3.9 million, an increase of $0.5 million year-over-year and $0.8 million quarter-over-quarter, primarily driven by additional service revenue from managing a second customer aircraft [4]. - Software App and Cirrus Charter revenue totaled $2.4 million, up $0.5 million compared to the same period last year [5]. - Management and Other Services revenue reached $960,000, compared to $775,000 in the same period last year [5]. - Jet Card and Fractional Programs revenue was $547,000, down from $732,000 in the same period last year [6]. - Cost of revenues increased to $3.9 million from $3.2 million in the same period last year, attributed to higher charter flight activity and operational costs [7]. - The gross loss was approximately $14,000, compared to a gross profit of $170,000 in the same period last year [8]. - Operating expenses decreased to $2.9 million from $4.4 million in the same period last year, leading to an operating loss of approximately $2.9 million, down from $4.3 million [9]. Operational Highlights - The company authorized a $2 million share repurchase program and announced a reverse stock split [2]. - Jet.AI participated in key industry events, including the Corporate Jet Investor Miami 2024 and the 2024 NBAA Business Aviation Convention & Exhibition [2]. - New features and advancements were announced for CharterGPT and Reroute AI, alongside the launch of the DynoFlight 2.0 platform for aviation carbon management [2]. - The company aims to develop CharterGPT into an AI agent capable of managing the booking process with minimal human oversight [3]. Cash Position - As of September 30, 2024, cash and cash equivalents were approximately $312,000, down from $528,000 as of June 30, 2024 [10].