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Surf Air Mobility Inc. (SRFM+1.15%) 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 revenue to $28,386,000 from $21,967,000 in the same quarter the previous year. This increase is mainly attributed to the Southern Acquisition, which contributed to a rise in scheduled passengers and departures.
Cost of revenue for the quarter was $27,496,000, representing 97% of revenue, compared to 94% in the same quarter of the previous year. The increase in cost ratio is due to higher aircraft and pilot expenses.
The company reported an operating loss of $8,638,000 for the quarter, compared to $63,023,000 in the previous year, with the improvement attributed to reduced general and administrative expenses.
Net loss for the quarter was $12,225,000, down from $74,609,000 in the previous year. The decrease in net loss is primarily due to lower changes in fair value of financial instruments and reduced general and administrative expenses.
Cash used in operating activities was $30,742,000, while cash used in investing and financing activities was $4,465,000 and cash provided by financing activities was $33,898,000, respectively.
Surf Air Mobility had a working capital deficit as of September 30, 2024. The company acknowledges its dependence on raising additional capital and improving operational efficiency to meet future obligations.
The filing also details various financial agreements, including a new credit agreement with affiliates of Comvest Partners and a reimbursement agreement with Park Lane Investments LLC.
Surf Air Mobility continues to focus on developing fully-electric and hybrid-electric powertrain technologies and expanding its regional airline network.
The company identified material weaknesses in its internal controls over financial reporting, including insufficient resources with appropriate accounting expertise.
Surf Air Mobility is implementing a remediation plan to address these material weaknesses, including hiring additional personnel and improving internal controls.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Surf Air Mobility Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.