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Jet.AI Inc. (JTAI-1.86%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in revenues to $3,917,393 from $3,367,189 in the same quarter the previous year. The increase is attributed to additional service revenue from managing a second customer aircraft.
The cost of revenues for the quarter was $3,931,279, compared to $3,196,748 in the same quarter of the previous year. This increase is due to higher operating expenses related to the increased fleet and charter flight activity.
The company reported a gross loss of $13,886 for the quarter, compared to a gross profit of $170,441 in the previous year, with the loss attributed to reduced flights performed for jet card customers.
General and administrative expenses decreased to $2,746,783 from $4,231,142, primarily due to a decrease in stock-based compensation and professional service expenses.
Net loss for the quarter was $2,881,882, down from $4,290,559 in the previous year. After accounting for a deemed dividend from a warrant exchange offer and cumulative preferred stock dividends, net loss attributable to common stockholders was $3,440,845, compared to $4,290,559 in the previous year.
Cash used in operating activities was $4,840,533, while cash used in investing activities was $12,922. Cash provided by financing activities was $3,064,795.
Jet.AI had a working capital deficit of $4,820,828 as of September 30, 2024. The company plans to fund its operations with capital from operations, drawdowns under its Share Purchase Agreement, and other potential sources of outside capital.
The filing details various financial agreements, including a Share Purchase Agreement with GEM Yield LLC SCS and a Securities Purchase Agreement with Ionic Ventures, LLC.
Jet.AI continues to focus on expanding its fleet and increasing charter activity through its software offerings. The company acknowledges its dependence on raising additional capital to meet future obligations.
The company identified risks related to its ability to comply with Nasdaq's (NDAQ-0.10%) continued listing requirements and the potential impact of a reverse stock split on its stock price.
Jet.AI is evaluating its financial condition and plans to address its liquidity needs through various financing arrangements and operational adjustments.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Jet.AI Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.