Jet.AI (the “Company”) (Nasdaq: JTAI), an
innovative private aviation and artificial intelligence (“AI”)
company, announced financial results for the third quarter ended
September 30, 2023.
Third Quarter 2023 and Recent
Operational Highlights
- Revenues of $3.4 million in 3Q23
grew over 270% compared to the same period last year when excluding
the benefit in 3Q22 from Fractional/Whole Aircraft Sales. Including
Fractional/Whole Aircraft Sales, total 3Q23 revenues were down from
$11.9 million in 3Q22 due to the absence of aircraft available for
sale this year.
- Advanced discussions with
Bombardier remain ongoing for the purchase of Challenger 3500
aircraft, intended to add to the company’s inventory of planes
available for sale.
- Launched AI-powered charter booking
platform, CharterGPT. CharterGPT is a cutting-edge technology that
automates the manual process of booking a private jet through
natural language processing. The app is available for download in
both the iOS App Store and Android Store.
- Released commercial and private
aviation carbon offset API, DynoFlight. DynoFlight enables aviation
businesses to calculate, track, purchase and
retire carbon removal credits that correspond to aircraft
emissions.
- Partnered with the Vegas Golden
Knights and Cirrus Aviation to provide fans the ultimate
by-the-seat same day round trip experience for away games.
- De-SPACed Jet Token Inc. with
Oxbridge Acquisition Corp. (Nasdaq: OXAC) to become a publicly
traded company under the name Jet.AI Inc. (Nasdaq: JTAI, JTAIW,
JTAIZ).
- Participated in several corporate
and investor events, including the LD Micro Invitational XIII and
LD Micro Main Event XVI, H.C. Wainwright 25th Annual Global
Investment Conference, Maxim-led Emerging Growth in Artificial
Intelligence Tech Conference Series, NBAA Business Aviation
Convention & Exhibition, and Corporate Jet Investor Miami
2023.
Third Quarter 2023 Financial
Results
Revenue unrelated to
Fractional/Whole Aircraft Sales was $3.4 million, up $2.5 million
or over 270% compared to $910,000 in the same period last year.
Total revenue, including the benefit of Fractional/Whole Aircraft
Sales, was $3.4 million compared to $11.9 million in the same
period last year. The decrease was primarily due to the absence of
aircraft available for fractional sale in 2023 compared with the
successful fractionalization of the Company’s last two HondaJets
during the third quarter of 2022, offset by additional service
revenue of $775,000 arising from the Company entering into an
agreement to manage a customer’s aircraft in the fourth quarter of
2022.
Software App and On-Fleet
Charter revenue, which is comprised of
brokerage revenues generated on third party aircraft via our
CharterGPT app as well as direct charter revenue on our member
owned aircraft, totaled $1.9 million, up 445%, compared to $342,000
in the same period last year. The additional revenue came from
increased charter bookings made through the newly launched
CharterGPT App in the third quarter of 2023.
Management and Other Services
revenue, which is comprised of revenues generated from
managing and chartering out customer aircraft, totaled $775,000
compared to $0 in the same period last year. The additional revenue
came from the Company’s entering into an agreement to manage a
customer’s aircraft in the fourth quarter of 2022.
Jet Card and Fractional Programs
revenue, which is generated from the sale and use of jet
cards and service revenue related to ongoing utilization by our
fractional customers, totaled $732,000, up 29% when compared to
$568,000 in the same period last year. The additional revenue came
from increased sales and use of jet cards.
Cost of revenues totaled $3.2
million compared to $10.9 million in the same period last year. The
decrease in cost of revenues was due to the absence of cost
associated with Fractional/Whole Aircraft sales.
Gross profit totaled $170,000
compared to $1.0 million in the same period last year. Excluding
profit from aircraft fractionalizations, gross profit for the third
quarter of 2022 would have been a loss of $26,000.The remaining
decrease was largely driven by greater utilization of the Company’s
aircraft, offset by increased sub-charter costs relating to flights
performed by third-party operators for certain of our jet card
customers.
Operating expenses totaled $4.4
million compared to $3.0 million in the same period last year. The
increase was primarily due to an approximate $1.4 million rise in
general and administrative expense associated with the professional
service and insurance costs of the Business Combination.
Operating loss totaled $4.3
million compared to a loss of $2.0 million in the same period last
year. The increase was primarily due to the decrease in gross
profit of $833,000 and the increase in general and administrative
expenses resulting from the increase in non-cash stock-based
compensation expense that resulted from the non-cash vesting of
employee stock options as well as the increase in professional and
insurance costs following the Business Combination.
As of September 30, 2023, the Company had
cash and cash equivalents of $903,909 compared to
$1,527,391 as of December 31, 2022.
Management Commentary
Jet.AI Executive Chairman Mike Winston said:
“The third quarter saw the release of CharterGPT, the first AI
charter broker, DynoFlight, the first carbon removal credit API for
aviation, and the realization of triple digit revenue growth
adjusted for the fact that we had no aircraft inventory left to
sell. Talks are in an advanced stage with Bombardier to supply us
with the award-winning Challenger 3500 super-midsize aircraft for
our fractional sales pipeline. From here it’s about delivering on
the balance of our software roadmap and building the fleet.”
“Based on numerous conversations with members of
the trade at the NBAA trade show held in mid-October of this year,
we now believe that our customers will adopt Reroute first before
switching on other elements of our four-component operator
platform. Reroute reconstitutes otherwise empty flights into new
retail priced charter. With that in mind, we’re going to focus
development resources on deepening the functionality of Reroute
ahead of its release in December. The planned release of FlightClub
and JetCardGPT are now expected to take place in the first quarter
of 2024. We remain laser focused on rigorously balancing accretion
and dilution as we look to deploy incremental capital at high rates
of return both at the software level and into the fleet.”
About Jet.AIJet.AI operates in
two segments, Software and Aviation, respectively. The Software
segment features the B2C CharterGPT app and the B2B Jet.AI Operator
platform now in development. The CharterGPT app uses natural
language processing and machine learning to improve the private jet
booking experience. The Jet.AI operator platform offers a suite of
stand-alone software products to enable FAA Part 135 charter
providers to add revenue, maximize efficiency, and reduce
environmental impact. The Aviation segment features jet aircraft
fractions, jet card, on-fleet charter, management, and buyer’s
brokerage. Jet.AI is an official partner of the Las Vegas Golden
Knights, 2023 NHL Stanley Cup® champions. The Company was founded
in 2018 and is based in Las Vegas, NV and San Francisco, CA.
Forward-Looking Statements
This press release contains certain
forward-looking statements within the meaning of the federal
securities laws with respect to the products and services offered
by Jet.AI and the markets in which it operates, and Jet.AI’s
projected future results. These forward-looking statements
generally are identified by the words “believe,” “project,”
“expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,”
“opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,”
“will continue,” “will likely result,” and similar expressions.
Forward-looking statements are predictions, projections and other
statements about future events that are based on current
expectations and assumptions and, as a result, are subject to risks
and uncertainties that could cause the actual results to differ
materially from the expected results. As a result, caution must be
exercised in relying on forward-looking statements, which speak
only as of the date they were made. Factors that could cause actual
results to differ materially from those expressed or implied in
forward-looking statements can be found in the Registration
Statement and the amendments thereto on Form S-4 filed with the
Securities and Exchange Commission (File No. 333-270848) and other
documents filed by the Company from time to time with the SEC.
These filings identify and address other important risks and
uncertainties that could cause actual events and results to differ
materially from those contained in the forward-looking statements.
Readers are cautioned not to put undue reliance on forward-looking
statements, and Jet.AI assumes no obligation and does not intend to
update or revise these forward-looking statements, whether because
of new information, future events, or otherwise.
Jet.AI Investor
Relations:Gateway Group, Inc.
949-574-3860Jet.AI@gateway-grp.com
JET.AI, INC.(FORMERLY JET TOKEN,
INC.)CONSOLIDATED BALANCE
SHEETS(UNAUDITED) |
|
|
|
September 30, 2023 |
|
|
December 31, 2022 |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
903,909 |
|
|
$ |
1,527,391 |
|
Accounts receivable |
|
|
205,977 |
|
|
|
223,954 |
|
Other current assets |
|
|
157,926 |
|
|
|
133,907 |
|
Prepaid offering costs |
|
|
800,000 |
|
|
|
- |
|
Total current assets |
|
|
2,067,812 |
|
|
|
1,885,252 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
8,241 |
|
|
|
5,814 |
|
Intangible assets, net |
|
|
85,538 |
|
|
|
155,009 |
|
Right-of-use lease asset |
|
|
1,701,152 |
|
|
|
2,081,568 |
|
Investment in joint venture |
|
|
100,000 |
|
|
|
- |
|
Deposits and other assets |
|
|
798,111 |
|
|
|
762,976 |
|
Total assets |
|
$ |
4,760,854 |
|
|
$ |
4,890,619 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’
(Deficit) Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
2,880,901 |
|
|
$ |
242,933 |
|
Accrued liabilities |
|
|
825,586 |
|
|
|
951,689 |
|
Deferred revenue |
|
|
1,432,126 |
|
|
|
933,361 |
|
Lease liability |
|
|
506,228 |
|
|
|
494,979 |
|
Note payable |
|
|
287,500 |
|
|
|
- |
|
Notes payable - related party |
|
|
233,333 |
|
|
|
- |
|
Total current liabilities |
|
|
6,165,674 |
|
|
|
2,622,962 |
|
|
|
|
|
|
|
|
|
|
Lease liability, net of
current portion |
|
|
1,150,274 |
|
|
|
1,531,364 |
|
Redeemable preferred
stock |
|
|
1,702,000 |
|
|
|
- |
|
Total liabilities |
|
|
9,017,948 |
|
|
|
4,154,326 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
(Note 2 and 5) |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Stockholders’ (Deficit)
Equity |
|
|
|
|
|
|
|
|
Preferred Stock, 4,000,000 shares authorized, par value $0.0001,
1,702 and 0 issued and outstanding, respectively |
|
|
- |
|
|
|
- |
|
Common stock, 55,000,000 shares authorized, par value $0.0001,
9,164,364 and 4,454,665 issued and outstanding, respectively |
|
|
916 |
|
|
|
445 |
|
Subscription receivable |
|
|
(6,724 |
) |
|
|
(15,544 |
) |
Additional paid-in capital |
|
|
31,863,479 |
|
|
|
27,407,372 |
|
Accumulated deficit |
|
|
(36,114,765 |
) |
|
|
(26,655,980 |
) |
Total stockholders’ (deficit) equity |
|
|
(4,257,094 |
) |
|
|
736,293 |
|
Total liabilities and stockholders’ (deficit) equity |
|
$ |
4,760,854 |
|
|
$ |
4,890,619 |
|
|
|
|
|
|
|
|
|
|
JET.AI, INC.(FORMERLY JET TOKEN,
INC.)CONSOLIDATED STATEMENTS OF
OPERATIONS(UNAUDITED) |
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
3,367,189 |
|
|
$ |
11,909,588 |
|
|
$ |
8,035,505 |
|
|
$ |
19,650,567 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
3,196,748 |
|
|
|
10,905,766 |
|
|
|
8,140,905 |
|
|
|
17,833,726 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss) |
|
|
170,441 |
|
|
|
1,003,822 |
|
|
|
(105,400 |
) |
|
|
1,816,841 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative (including stock-basedcompensation of
$2,669,071, $2,060,703,$5,424,158 and $4,431,950,
respectively) |
|
|
4,231,142 |
|
|
|
2,835,745 |
|
|
|
8,834,864 |
|
|
|
6,255,723 |
|
Sales and marketing |
|
|
156,991 |
|
|
|
118,301 |
|
|
|
380,699 |
|
|
|
281,442 |
|
Research and development |
|
|
48,823 |
|
|
|
46,905 |
|
|
|
113,778 |
|
|
|
93,077 |
|
Total operating expenses |
|
|
4,436,956 |
|
|
|
3,000,951 |
|
|
|
9,329,341 |
|
|
|
6,630,242 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
(4,266,515 |
) |
|
|
(1,997,129 |
) |
|
|
(9,434,741 |
) |
|
|
(4,813,401 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
24,095 |
|
|
|
- |
|
|
|
24,095 |
|
|
|
- |
|
Other income |
|
|
(51 |
) |
|
|
- |
|
|
|
(51 |
) |
|
|
(3 |
) |
Total other (income)
expense |
|
|
24,044 |
|
|
|
- |
|
|
|
24,044 |
|
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before provision for
income taxes |
|
|
(4,290,559 |
) |
|
|
(1,997,129 |
) |
|
|
(9,458,785 |
) |
|
|
(4,813,398 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss |
|
$ |
(4,290,559 |
) |
|
$ |
(1,997,129 |
) |
|
$ |
(9,458,785 |
) |
|
$ |
(4,814,198 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - basic and diluted |
|
|
7,018,212 |
|
|
|
4,424,267 |
|
|
|
5,354,931 |
|
|
|
4,398,303 |
|
Net loss per share - basic and
diluted |
|
$ |
(0.61 |
) |
|
$ |
(0.45 |
) |
|
$ |
(1.77 |
) |
|
$ |
(1.09 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JET.AI, INC.(FORMERLY JET TOKEN,
INC.)CONSOLIDATED STATEMENTS OF CASH
FLOWS(UNAUDITED) |
|
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(9,458,785 |
) |
|
$ |
(4,814,198 |
) |
Adjustments to reconcile net loss to net cash (used in) provided by
operating activities: |
|
|
|
|
|
|
|
|
Amortization and depreciation |
|
|
101,439 |
|
|
|
100,788 |
|
Amortization of debt discount |
|
|
20,833 |
|
|
|
- |
|
Stock-based compensation |
|
|
5,424,158 |
|
|
|
4,431,950 |
|
Non-cash operating lease costs |
|
|
380,416 |
|
|
|
369,499 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
17,977 |
|
|
|
- |
|
Other current assets |
|
|
(24,019 |
) |
|
|
(108,491 |
) |
Accounts payable |
|
|
790,530 |
|
|
|
(65,322 |
) |
Accrued liabilities |
|
|
(126,103 |
) |
|
|
107,109 |
|
Deferred revenue |
|
|
498,765 |
|
|
|
756,799 |
|
Lease liability |
|
|
(369,841 |
) |
|
|
(358,924 |
) |
Net cash (used in) provided by operating activities |
|
|
(2,744,630 |
) |
|
|
419,210 |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
|
(4,339 |
) |
|
|
- |
|
Purchase of intangible assets |
|
|
(30,056 |
) |
|
|
- |
|
Investment in joint venture |
|
|
(100,000 |
) |
|
|
- |
|
Return of aircraft deposit |
|
|
- |
|
|
|
200,000 |
|
Deposits and other assets |
|
|
(35,135 |
) |
|
|
110,582 |
|
Net cash (used in) provided by investing activities |
|
|
(169,530 |
) |
|
|
310,582 |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Proceeds - related party advances |
|
|
- |
|
|
|
42,000 |
|
Repayments - related party advances |
|
|
- |
|
|
|
(242,196 |
) |
Proceeds - notes payable, net of discount |
|
|
275,000 |
|
|
|
- |
|
Proceeds - related party notes payable, net of discount |
|
|
225,000 |
|
|
|
- |
|
Payments on line of credit |
|
|
- |
|
|
|
(194,727 |
) |
Offering costs |
|
|
(437,665 |
) |
|
|
(1,269,864 |
) |
Proceeds from sale of Common Stock |
|
|
1,607,450 |
|
|
|
2,451,079 |
|
Proceeds from business combination |
|
|
620,893 |
|
|
|
- |
|
Net cash provided by financing activities |
|
|
2,290,678 |
|
|
|
786,292 |
|
|
|
|
|
|
|
|
|
|
(Decrease) increase in cash
and cash equivalents |
|
|
(623,482 |
) |
|
|
1,516,084 |
|
Cash and cash equivalents,
beginning of period |
|
|
1,527,391 |
|
|
|
643,494 |
|
Cash and cash equivalents, end
of period |
|
$ |
903,909 |
|
|
$ |
2,159,578 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures of
cash flow information: |
|
|
|
|
|
|
|
|
Cash paid for interest |
|
$ |
- |
|
|
$ |
- |
|
Cash paid for income taxes |
|
$ |
- |
|
|
$ |
800 |
|
|
|
|
|
|
|
|
|
|
Non cash investing and
financing activities: |
|
|
|
|
|
|
|
|
Subscription receivable from sale of Non-Voting Common Stock |
|
$ |
6,724 |
|
|
$ |
- |
|
Operating lease, Right-of-use assets and liabilities |
|
$ |
- |
|
|
$ |
2,506,711 |
|
Increase in accounts payable due to Business Combination |
|
$ |
1,047,438 |
|
|
$ |
- |
|
Increase in prepaid offering costs and accounts payable |
|
$ |
800,000 |
|
|
|
- |
|
Increase in redeemable preferred stock due to Business
Combination |
|
$ |
1,702,000 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
Jet AI (NASDAQ:JTAI)
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Jet AI (NASDAQ:JTAI)
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From Jul 2023 to Jul 2024