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 andAndroid 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. withOxbridge 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 AnnualGlobal 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
Software App and On-
Management and Other Services revenue, which is comprised of revenues generated from managing and chartering out customer aircraft, totaled
Cost of revenues totaled
Gross profit totaled
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
Operating loss totaled
As of
Management Commentary
Jet.AI Executive Chairman
“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.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 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
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
Jet.AI Investor Relations:
949-574-3860
Jet.AI@gateway-grp.com
JET.AI, INC. (FORMERLY JET TOKEN, INC.) CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||
2023 | 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 | - | - | ||||||
Common stock, 55,000,000 shares authorized, par value | 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 | |||||||||||||||
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-based compensation of | 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 | ||||||||
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 | $ | - | ||||
Source: Jet.AI. Inc.
2023 GlobeNewswire, Inc., source