Jet.AI (JTAI) - 2024 Q2 - Quarterly Report

Revenue Performance - Revenues for the three months ended June 30, 2024, were $3,083,884, representing an increase of 10.4$2,792,808 for the same period in 2023[9]. - Total revenue for the six months ended June 30, 2024, was $6,932,482, up 48.5$4,668,316 in the same period of 2023[42]. - Revenue from Software App and Cirrus Charter for Q2 2024 was $1,610,899, a 3.2$1,558,697 in Q2 2023[42]. - Revenue from Software App and Cirrus Charter for the six months ended June 30, 2024, was $3,981,990, up from$2,552,950 in 2023, marking a growth of 56%[42]. - Jet Card and Fractional Programs revenue decreased to $558,560 in Q2 2024 from$811,140 in Q2 2023, representing a decline of 31%[42]. - Management and Other Services revenue increased significantly to $914,425 in Q2 2024 from$422,971 in Q2 2023, marking a growth of 116%[42]. Profitability and Losses - Gross loss for the six months ended June 30, 2024, was $(541,352), compared to a gross loss of$(275,841) for the same period in 2023, indicating a decline in profitability[9]. - Net loss for the three months ended June 30, 2024, was $(2,448,704), compared to a net loss of$(6,449,605) for the same period in 2023, showing an improvement in loss[10]. - For the six months ended June 30, 2024, Jet.AI reported a net loss of $6,449,605, compared to a net loss of$5,168,226 for the same period in 2023, indicating an increase in losses of approximately 24.7%[12]. - The net loss attributable to common stockholders for the three months ended June 30, 2024, was $2,448,704, compared to a loss of$6,509,060 in 2023, reflecting a reduction of approximately 62.4%[10]. - The company incurred an operating loss of $2,448,704 for the three months ended June 30, 2024, compared to a loss of$6,370,411 in the same period of 2023, showing an improvement of approximately 61.6%[10]. Expenses and Cash Flow - Total operating expenses for the three months ended June 30, 2024, were $2,247,881, up from$1,348,043 in the same period of 2023, reflecting a 66.7% increase[10]. - The company utilized $4,705,433 in cash for operating activities during the first half of 2024, compared to$1,919,226 in the same period of 2023, indicating a substantial increase in cash outflow[12]. - Advertising costs totaled $549,070 for the six months ended June 30, 2024, compared to$223,708 in the same period of 2023, reflecting an increase of 145%[52]. - Stock-based compensation expenses for the six months ended June 30, 2024, were $2,401,046, compared to$2,755,087 in the same period of 2023, showing a decrease of approximately 12.9%[12]. - Total lease expense for the six months ended June 30, 2024, was $701,550, compared to$550,634 for the same period in 2023, reflecting an increase of approximately 27.4%[63]. Shareholder Equity and Stock Information - The total stockholders' equity at June 30, 2024, was $(4,169,820), a decrease from$(525,120) at June 30, 2023, reflecting a significant decline in equity[11]. - Weighted average shares outstanding for the three months ended June 30, 2024, were 12,906,352, compared to 4,520,625 for the same period in 2023, indicating a significant increase in shares[10]. - The company reported a total of 14,755,144 common shares outstanding as of June 30, 2024, an increase from 4,520,625 shares at June 30, 2023[11]. - The Company issued 3,200,000 shares of common stock during the six months ended June 30, 2024, for total consideration of $1.7 million under the Share Purchase Agreement with GEM[65]. - As of June 30, 2024, the total number of outstanding warrants was 25,221,406, with exercise prices ranging from$8.40 to $15.00[97]. Future Outlook and Strategic Initiatives - The company anticipates continued growth in revenues driven by new product launches and market expansion strategies[6]. - The company is exploring potential mergers and acquisitions to enhance its market position and expand its product offerings[6]. - The Company plans to fund operations through capital from operations, drawdowns under its Share Purchase Agreement, and proceeds from warrant exercises, while also exploring potential sources of outside capital[20]. - The Company has the ability to reduce cash burn to preserve capital if necessary[20]. Operational and Development Activities - Research and development expenses for the six months ended June 30, 2024, were$69,942, compared to $64,955 for the same period in 2023, indicating a focus on innovation[10]. - The Company has capitalized approximately$398,000 of internal software development costs, with amortization expense for the six months ended June 30, 2024, being $66,351[33]. - The Company operates a proprietary booking platform (the "App") for arranging private jet travel, alongside selling fractional and whole interests in aircraft and jet cards[18]. - Research and development costs are primarily related to third-party software development and are expensed as incurred until the product is ready for commercial use[53]. Debt and Financing Activities - The Company recognized interest expense of$79,314 for the six months ended June 30, 2024, related to the Bridge Notes[60]. - The Company entered into an accounts payable financing agreement for up to $1,500,000 to pay outstanding vendors, convertible to common stock at a 28$300,000 as of June 30, 2024, related to the GEM Registration Rights Agreement due to delays in the effectiveness of the registration statement[66]. - The Company recognized a debt discount of $168,250 from the Bridge Notes, with$80,761 amortized during the six months ended June 30, 2024[60]. Concerns and Risks - The Company has incurred losses from operations since inception, raising concerns about its ability to continue as a going concern[19]. - The Company has a limited operating history and has generated limited revenue from intended operations, making it sensitive to general business and economic conditions[28].