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Jet.AI (JTAI) - 2024 Q3 - Quarterly Report
JTAIJet.AI (JTAI)2024-11-14 00:30

Financial Performance - Revenues for the three months ended September 30, 2024, were 3,917,393,anincreasefrom3,917,393, an increase from 3,367,189 in the same period of 2023, representing a growth of 16.3%[8] - Cost of revenues for the three months ended September 30, 2024, was 3,931,279,comparedto3,931,279, compared to 3,196,748 in 2023, indicating an increase of 22.9%[8] - The gross loss for the three months ended September 30, 2024, was (13,886),asignificantdeclinefromagrossprofitof(13,886), a significant decline from a gross profit of 170,441 in the same period of 2023[8] - Net loss for the three months ended September 30, 2024, was (2,881,882),comparedto(2,881,882), compared to (4,290,559) in 2023, showing a reduction of 32.8%[9] - The net loss per share for the three months ended September 30, 2024, was (43.82),animprovementfrom(43.82), an improvement from (137.55) in the same period of 2023[9] - The operating loss for the three months ended September 30, 2024, was (2,881,938),animprovementcomparedto(2,881,938), an improvement compared to (4,266,515) in the same period of 2023[9] - The company reported a net loss of (3,220,556)forthethreemonthsendedJune30,2024,continuingthetrendoffinanciallosses[12]−NetlossfortheninemonthsendedSeptember30,2024,was(3,220,556) for the three months ended June 30, 2024, continuing the trend of financial losses[12] - Net loss for the nine months ended September 30, 2024, was 9,331,487, a slight improvement from a net loss of 9,458,785inthesameperiodof2023[13]OperatingExpenses−TotaloperatingexpensesforthethreemonthsendedSeptember30,2024,were9,458,785 in the same period of 2023[13] Operating Expenses - Total operating expenses for the three months ended September 30, 2024, were 2,868,052, down from 4,436,956in2023,reflectingadecreaseof35.44,436,956 in 2023, reflecting a decrease of 35.4%[9] - Total operating expenses decreased by approximately 1.6 million in Q3 2024, primarily due to a 1.5millionreductioningeneralandadministrativeexpenses[170]−Operatingexpensesforthefirstninemonthsof2024increasedto1.5 million reduction in general and administrative expenses[170] - Operating expenses for the first nine months of 2024 increased to 11.4 million for 5 aircraft, up from 8.1millionfor4aircraftin2023[188]CashFlowandLiquidity−Netcashusedinoperatingactivitiesincreasedto8.1 million for 4 aircraft in 2023[188] Cash Flow and Liquidity - Net cash used in operating activities increased to 4,840,533 for the nine months ended September 30, 2024, compared to 2,744,630in2023,indicatinghighercashburn[13]−Cashandcashequivalentsattheendoftheperiodwere2,744,630 in 2023, indicating higher cash burn[13] - Cash and cash equivalents at the end of the period were 311,883, down from 903,909attheendofSeptember2023[13]−TheCompanyhasaliquidityreserverequirementof903,909 at the end of September 2023[13] - The Company has a liquidity reserve requirement of 500,000 and a maintenance reserve of approximately 690,000foritsleasingarrangement[78]−TheCompanyplanstorelyonfundsfromshareissuancesandotherpotentialsalesofequityanddebtsecuritiestomeetfundingobligationsinthenext12months[197]RevenueStreams−RevenuefromsoftwareappandCirruscharterservicesfortheninemonthsendedSeptember30,2024,was690,000 for its leasing arrangement[78] - The Company plans to rely on funds from share issuances and other potential sales of equity and debt securities to meet funding obligations in the next 12 months[197] Revenue Streams - Revenue from software app and Cirrus charter services for the nine months ended September 30, 2024, was 6,391,732, up from 4,413,745in2023,reflectingagrowthof44.74,413,745 in 2023, reflecting a growth of 44.7%[51] - The Company recognized 1.1 million in revenue from App-generated services and software related to charter bookings in Q3 2024, an increase of 300,000fromthepreviousyear[158]−RevenuegeneratedthroughdirectcharteringofHondaJetaircraftbyCirrusincreasedby300,000 from the previous year[158] - Revenue generated through direct chartering of HondaJet aircraft by Cirrus increased by 0.7 million, or 31.0%, to approximately 2.9millioninthefirstninemonthsof2024[184]StockandEquity−TheweightedaveragesharesoutstandingforthethreemonthsendedSeptember30,2024,increasedto78,523from31,192in2023[9]−TheCompanyissued14,221sharesofcommonstockduringtheninemonthsendedSeptember30,2024,fortotalconsiderationof2.9 million in the first nine months of 2024[184] Stock and Equity - The weighted average shares outstanding for the three months ended September 30, 2024, increased to 78,523 from 31,192 in 2023[9] - The Company issued 14,221 shares of common stock during the nine months ended September 30, 2024, for total consideration of 1.7 million[82] - The Company raised approximately 1,727,000fromtheissuanceofcommonstockand1,727,000 from the issuance of common stock and 1,500,000 from the sale of Series B Preferred Stock during the nine-month period ended September 30, 2024[196] Strategic Initiatives - The company anticipates continued focus on market expansion and new product development in the upcoming quarters[5] - The Company formed a 50/50 joint venture with Great Western Air LLC in January 2023, with no financial activity reported beyond the initial investment[38] - The Company’s SaaS offerings include Reroute AI and DynoFlight, aimed at enhancing operational efficiency and sustainability for aircraft operators[146] Deferred Revenue and Liabilities - As of September 30, 2024, the Company deferred 1,161,367inrevenuerelatedtoprepaidflighthoursunderthejetcardprogram,downfrom1,161,367 in revenue related to prepaid flight hours under the jet card program, down from 1,510,976 as of December 31, 2023, indicating a decrease of approximately 23%[46] - Deferred revenue as of September 30, 2024, was 1,206,869,downfrom1,206,869, down from 1,779,794 as of December 31, 2023[135] - The total operating lease liabilities amounted to 1,150,274,downfrom1,150,274, down from 1,531,364 as of December 31, 2023[79] Business Combination and Corporate Actions - The business combination with Jet Token was completed on August 10, 2023, resulting in the formation of Jet.AI Inc. and a new class of common stock listed on Nasdaq under the ticker "JTAI"[15] - A reverse stock split at a ratio of one-for-225 was announced, effective November 12, 2024, impacting the number of shares and equity-based awards[25] Concerns and Risks - The Company has incurred losses since inception, raising concerns about its ability to continue as a going concern[20] - As of September 30, 2023, the total stockholders' deficit equity was (4,257,094),withanaccumulateddeficitof(4,257,094), with an accumulated deficit of (36,114,765)[10]