Jet.AI (the “Company”) (Nasdaq: JTAI), an innovative private
aviation and artificial intelligence (“AI”) company, today
announced financial results for the third quarter ended September
30, 2024.
Third Quarter 2024 and Recent
Operational Highlights
- Authorized $2 million share
repurchase program and withdrawal of S-1 registration
statement
- Announced reverse stock split
- Participated in Corporate Jet
Investor Miami 2024
- Announced new features and
advancements to CharterGPT and Reroute AI
- Participated in the 2024 NBAA
Business Aviation Convention & Exhibition
- Opened new JetLeg.AI app to Beta
Testers
- Announced updates around
proprietary software solutions
- Entered into warrant amendments
after successful warrant exchange offer and consent
solicitation
- Launched DynoFlight 2.0 platform,
an advanced AI web-based solution for aviation carbon
management
- Completed exchange offer and
consent solicitation relating to its outstanding warrants
Management Commentary
Jet.AI Chairman and CEO Mike Winston commented,
“We’re seeing strength across our business, with improvements in
our key financial metrics both year-over-year and
quarter-over-quarter. To make our earnings more predictable, we
entered an agreement with Textron Aviation to purchase three Cessna
Citation CJ4 jets, which will be delivered in stages—one each in
the first, second, and fourth quarters of 2026. This order
complements a proposed fleet deal with Bombardier for Challenger
3500 jets, which would be expected a year later in the first,
second and third quarters of 2027, respectively. Our plan is to
pre-sell shares in fleet aircraft to customers before delivery,
maintaining a ‘capital-light’ model in private aviation by reducing
upfront costs.”
“We’ve authorized a share buyback, completed a
reverse split and pulled a Form S-1 due to its heavy warrant
structure. On a related note, we also filed an S-3 as a
continuation of our previously disclosed transaction with Ionic
Ventures LLC. The Company now expects to regain compliance with
NASDAQ’s listing standards by the November 26th deadline.”
Winston also spoke about advancing CharterGPT,
the company’s AI-based booking technology. “Over the next few
quarters, we aim to develop CharterGPT into an ‘AI agent’ that can
handle both the customer-facing and backend aspects of the booking
process independently, returning results without extensive human
oversight. Expanding sales by hiring more charter brokers isn’t
particularly interesting to us, but expanding sales by using AI
brokers with only the most crucial moments of human involvement is
very interesting. Testing this approach is relatively low-cost and
may reveal a product market fit for AI-driven sales.”
Third Quarter 2024 Financial
Results
Revenues were $3.9 million, an
increase of $0.5 million compared to the same period last year and
$0.8 million compared to the prior quarter. The primary reason for
the increase was due to additional service revenue arising from the
Company entering into an agreement to manage a second customer
aircraft in the second quarter of 2024.
Software App and Cirrus Charter
revenue, the gross amount of charters booked through
CharterGPT and Cirrus, was $2.4 million, an increase of $0.5
million compared to the same period last year.
Management and Other Services
revenue, which is comprised of revenues generated from
managing and chartering our customer aircrafts, totaled $960,000
compared to $775,000 in the same period last year.
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 the
Company’s fractional customers, totaled $547,000 compared to
$732,000 in the same period last year.
Cost of revenues totaled $3.9
million compared to $3.2 million in the same period last year. The
increase is primarily due to an increase in Cirrus charter flight
activity, costs related to the operation of aircraft and payments
to Cirrus for their management.
Gross loss totaled
approximately $14,000 compared to a gross profit of $170,000 in the
same period last year and gross loss of $417,000 in the prior
quarter. The result was largely driven by reduced flights performed
for the Company’s jet card customers without a corresponding
reduction in fixed costs.
Operating expenses totaled $2.9
million compared to $4.4 million in the same period last year. The
decrease was primarily due to the improvement in general and
administrative, sales & marketing, and research &
development expenses.
Operating loss decreased to approximately $2.9
million compared to $4.3 million in the same period last year and
$3.2 million in the prior quarter. The improvement was primarily
due to the aforementioned reasons above.
As of September 30, 2024, the Company had cash and cash
equivalents of approximately $312,000 compared to $528,000
as of June 30, 2024, and $2.5 million of cash and cash equivalents
as of today, November 14th, 2024.
About Jet.AI
Jet.AI operates in two segments, Software and
Aviation, respectively. The Software segment features the B2C
CharterGPT app and the B2B Jet.AI Operator platform. 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 cards, 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 statements
that may be deemed to be “forward-looking statements” within the
meaning of the federal securities laws, including the safe harbor
provisions under the Private Securities Litigation Reform Act of
1995, 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. Statements that are not historical are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements relate to future events or our future
performance or future financial condition. These forward-looking
statements are not historical facts, but rather are based on
current expectations, estimates and projections about our Company,
our industry, our beliefs and our assumptions. 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 or the negative of these terms or other
similar expressions, but the absence of these words does not mean
that a statement is not forward-looking. 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 Company’s most recent Annual Report
on Form 10-K and subsequent reports filed with the Securities and
Exchange Commission. 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, except as provided by law.
Jet.AI Investor Relations:Gateway Group, Inc.
949-574-3860Jet.AI@gateway-grp.com
JET.AI, INC.(FORMERLY
JET TOKEN, INC.) CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
|
|
September 30, |
|
|
December 31, |
|
|
|
2024 |
|
|
2023 |
|
|
|
(Unaudited) |
|
|
(Audited) |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
311,883 |
|
|
$ |
2,100,543 |
|
Accounts receivable |
|
|
167,701 |
|
|
|
96,539 |
|
Other current assets |
|
|
78,403 |
|
|
|
190,071 |
|
Prepaid offering costs |
|
|
628,006 |
|
|
|
800,000 |
|
Total current assets |
|
|
1,185,993 |
|
|
|
3,187,153 |
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
|
5,692 |
|
|
|
7,604 |
|
Intangible assets, net |
|
|
86,745 |
|
|
|
73,831 |
|
Right-of-use lease asset |
|
|
1,180,824 |
|
|
|
1,572,489 |
|
Investment in joint
venture |
|
|
100,000 |
|
|
|
100,000 |
|
Deposits and other assets |
|
|
798,111 |
|
|
|
798,111 |
|
Total assets |
|
$ |
3,357,365 |
|
|
$ |
5,739,188 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’
Deficit |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,828,259 |
|
|
$ |
1,656,965 |
|
Accrued liabilities |
|
|
3,050,068 |
|
|
|
2,417,115 |
|
Deferred revenue |
|
|
1,206,869 |
|
|
|
1,779,794 |
|
Operating lease liability |
|
|
521,625 |
|
|
|
510,034 |
|
Note payable, net |
|
|
- |
|
|
|
321,843 |
|
Notes payable - related party, net |
|
|
- |
|
|
|
266,146 |
|
Total current liabilities |
|
|
6,606,821 |
|
|
|
6,951,897 |
|
|
|
|
|
|
|
|
|
|
Lease liability, net of current portion |
|
|
628,649 |
|
|
|
1,021,330 |
|
Redeemable preferred stock |
|
|
1,150,012 |
|
|
|
1,702,000 |
|
Total liabilities |
|
|
8,385,482 |
|
|
|
9,675,227 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
(Note 2 and 5) |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Stockholders’ Deficit |
|
|
|
|
|
|
|
|
Preferred Stock, 4,000,000 shares authorized, par value $0.0001, 0
issued and outstanding |
|
|
- |
|
|
|
- |
|
Series B Convertible Preferred Stock, 5,000 shares authorized, par
value $0.0001, 200 and 0 issued and outstanding |
|
|
- |
|
|
|
- |
|
Common stock, 200,000,000 shares authorized, par value
$0.0001,148,836 and 43,353 issued and outstanding |
|
|
14 |
|
|
|
4 |
|
Subscription receivable |
|
|
(6,724 |
) |
|
|
(6,724 |
) |
Additional paid-in capital |
|
|
44,122,723 |
|
|
|
35,343,069 |
|
Accumulated deficit |
|
|
(49,144,130 |
) |
|
|
(39,272,388 |
) |
Total stockholders’ deficit |
|
|
(5,028,117 |
) |
|
|
(3,936,039 |
) |
Total liabilities and stockholders’ deficit |
|
$ |
3,357,365 |
|
|
$ |
5,739,188 |
|
JET.AI, INC.(FORMERLY
JET TOKEN, INC.) CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS(UNAUDITED)
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
3,917,393 |
|
|
$ |
3,367,189 |
|
|
$ |
10,849,875 |
|
|
$ |
8,035,505 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
3,931,279 |
|
|
|
3,196,748 |
|
|
|
11,405,113 |
|
|
|
8,140,905 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross (loss) profit |
|
|
(13,886 |
) |
|
|
170,441 |
|
|
|
(555,238 |
) |
|
|
(105,400 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative (including stock-based compensation of
$1,313,358, $2,669,071, $3,714,404, and $5,424,158,
respectively) |
|
|
2,746,783 |
|
|
|
4,231,142 |
|
|
|
7,956,830 |
|
|
|
8,834,864 |
|
Sales and marketing |
|
|
83,310 |
|
|
|
156,991 |
|
|
|
632,380 |
|
|
|
380,699 |
|
Research and development |
|
|
37,959 |
|
|
|
48,823 |
|
|
|
107,901 |
|
|
|
113,778 |
|
Total operating expenses |
|
|
2,868,052 |
|
|
|
4,436,956 |
|
|
|
8,697,111 |
|
|
|
9,329,341 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
(2,881,938 |
) |
|
|
(4,266,515 |
) |
|
|
(9,252,349 |
) |
|
|
(9,434,741 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense (income): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
- |
|
|
|
24,095 |
|
|
|
79,314 |
|
|
|
24,095 |
|
Other income |
|
|
(56 |
) |
|
|
(51 |
) |
|
|
(176 |
) |
|
|
(51 |
) |
Total other expense
(income) |
|
|
(56 |
) |
|
|
24,044 |
|
|
|
79,138 |
|
|
|
24,044 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before provision for
income taxes |
|
|
(2,881,882 |
) |
|
|
(4,290,559 |
) |
|
|
(9,331,487 |
) |
|
|
(9,458,785 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss |
|
$ |
(2,881,882 |
) |
|
$ |
(4,290,559 |
) |
|
$ |
(9,331,487 |
) |
|
$ |
(9,458,785 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deemed dividend from warrant exchange offer |
|
|
(540,255 |
) |
|
|
- |
|
|
|
(540,255 |
) |
|
|
- |
|
Cumulative preferred stock dividends |
|
|
(18,708 |
) |
|
|
- |
|
|
|
(78,163 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss to common stockholders |
|
$ |
(3,440,845 |
) |
|
$ |
(4,290,559 |
) |
|
$ |
(9,949,905 |
) |
|
$ |
(9,458,785 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - basic and diluted |
|
|
78,523 |
|
|
|
31,192 |
|
|
|
71,791 |
|
|
|
23,800 |
|
Net loss per share - basic and
diluted |
|
$ |
(43.82 |
) |
|
$ |
(137.55 |
) |
|
$ |
(138.60 |
) |
|
$ |
(397.43 |
) |
JET.AI, INC.(FORMERLY
JET TOKEN, INC.) CONSOLIDATED STATEMENTS OF CASH
FLOWS(UNAUDITED)
|
|
Nine Months Ended |
|
|
September 30, |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
Net loss |
|
$ |
(9,331,487 |
) |
|
$ |
(9,458,785 |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
Amortization and depreciation |
|
|
1,920 |
|
|
|
101,439 |
Amortization of debt discount |
|
|
80,761 |
|
|
|
20,833 |
Stock-based compensation |
|
|
3,714,404 |
|
|
|
5,424,158 |
Non-cash operating lease costs |
|
|
391,665 |
|
|
|
380,416 |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
|
(71,162 |
) |
|
|
17,977 |
Other current assets |
|
|
111,668 |
|
|
|
(24,019 |
Accounts payable |
|
|
410,766 |
|
|
|
790,530 |
Accrued liabilities |
|
|
804,947 |
|
|
|
(126,103 |
Deferred revenue |
|
|
(572,925 |
) |
|
|
498,765 |
Operating lease liability |
|
|
(381,090 |
) |
|
|
(369,841 |
Net cash used in operating activities |
|
|
(4,840,533 |
) |
|
|
(2,744,630 |
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
Purchase of property and equipment |
|
|
- |
|
|
|
(4,339 |
Purchase of intangible assets |
|
|
(12,922 |
) |
|
|
(30,056 |
Investment in joint venture |
|
|
- |
|
|
|
(100,000 |
Deposits and other assets |
|
|
- |
|
|
|
(35,135 |
Net cash used in investing activities |
|
|
(12,922 |
) |
|
|
(169,530 |
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
Proceeds - notes payable, net of discount |
|
|
- |
|
|
|
275,000 |
Proceeds - related party notes payable, net of discount |
|
|
- |
|
|
|
225,000 |
Repayments - notes payable |
|
|
(371,250 |
) |
|
|
- |
Repayments - related party notes payable |
|
|
(297,500 |
) |
|
|
- |
Offering costs |
|
|
(236,233 |
) |
|
|
(437,665 |
Exercise of warrants |
|
|
742,474 |
|
|
|
- |
Proceeds from sale of Series B Preferred Stock |
|
|
1,500,025 |
|
|
|
- |
Proceeds from sale of Common Stock |
|
|
1,727,279 |
|
|
|
1,607,450 |
Proceeds from business combination |
|
|
- |
|
|
|
620,893 |
Net cash provided by financing activities |
|
|
3,064,795 |
|
|
|
2,290,678 |
|
|
|
|
|
|
|
|
Decrease in cash and cash equivalents |
|
|
(1,788,660 |
) |
|
|
(623,482 |
Cash and cash equivalents, beginning of period |
|
|
2,100,543 |
|
|
|
1,527,391 |
Cash and cash equivalents, end of period |
|
$ |
311,883 |
|
|
$ |
903,909 |
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flow information: |
|
|
|
|
|
|
|
Cash paid for interest |
|
$ |
79,314 |
|
|
$ |
- |
Cash paid for income taxes |
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
Non cash financing activities: |
|
|
|
|
|
|
|
Subscription receivable from sale of Common Stock |
|
$ |
- |
|
|
$ |
6,724 |
Issuance of Common Stock for settlement of accounts payable |
|
$ |
239,472 |
|
|
$ |
- |
Issuance of Common Stock from warrant exchange |
|
$ |
540,255 |
|
|
$ |
- |
Series A Preferred Stock conversion |
|
$ |
551,988 |
|
|
$ |
- |
Increase in accounts payable due to Business Combination |
|
$ |
- |
|
|
$ |
1,047,438 |
Increase in redeemable preferred stock due to Business
Combination |
|
$ |
- |
|
|
$ |
1,702,000 |
Increase in prepaid offering costs and accounts payable |
|
$ |
- |
|
|
$ |
800,000 |
Decrease in prepaid offering costs and accrued liabilities from
issuance of common stock |
|
$ |
172,200 |
|
|
$ |
- |
Jet AI (NASDAQ:JTAI)
Historical Stock Chart
From Nov 2024 to Dec 2024
Jet AI (NASDAQ:JTAI)
Historical Stock Chart
From Dec 2023 to Dec 2024