Jet.AI Reports Second Quarter 2024 Financial Results


LAS VEGAS, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Jet.AI (the “Company”) (Nasdaq: JTAI), an innovative private aviation and artificial intelligence (“AI”) company, today announced financial results for the second quarter ended June 30, 2024.

Second Quarter 2024 and Recent Operational Highlights

  • Launched DynoFlight 2.0 platform, an advanced AI web-based solution for aviation carbon management
  • Commenced and successfully completed exchange offer and consent solicitation relating to its outstanding warrants
  • Announced AI-Powered Jet Card with Empty Leg Benefit, as a result of Reroute AI
  • Announced non-recourse debt financing related to the proposed purchase of Bombardier Challenger 3500 aircraft
  • Released the National Jet Card Program which offers all categories of private jet for service within the continental U.S., guaranteed rates, guaranteed availability, and a 48-hour call out

Second Quarter 2024 Financial Results

Revenues were $3.1 million, an increase of $0.3 million compared to the same period last year. The primary reason was due to additional service revenue arising from an additional management agreement for customer aircraft and increased chartering of the Company’s Citation CJ4.

Software App and Cirrus Charter revenue, the gross amount of charters booked through CharterGPT and Cirrus, was $1.6 million, a slight increase 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 $914,000 compared to $423,000 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 $559,000 compared to $811,000 in the same period last year.

Cost of revenues totaled $3.5 million compared to $3.0 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 $417,000 compared to $201,000 in the same period last year. The increase was largely driven by reduced flights performed for the Company’s jet card customers without a corresponding reduction in fixed costs.

Operating expenses totaled $2.8 million compared to $2.2 million in the same period last year. The increase was primarily due to an increase in general and administrative expenses, research and development costs, offset by slightly lower sales and marketing expenses.

Operating loss was approximately $3.2 million compared to $2.4 million in the same period last year. The increase was primarily due to the increase in general and administrative expenses resulting from the increase in professional service expenses and wages following the Business Combination.

As of June 30, 2024, the Company had cash and cash equivalents of approximately $528,000 compared to $595,555 as of March 31, 2024.

Management Commentary
“In the second quarter, we made significant progress in our anticipated fleet deal with Bombardier, as we announced a non-binding, non-recourse debt financing arrangement, alongside securing $16.5 million in financing from Ionic Ventures LLC,” said Founder and Executive Chairman Mike Winston. “Additionally, we successfully completed the warrant exchange offer, eliminating potentially dilutive warrant overhang and simplifying our capital structure.”

“We received an unsolicited bid for one of our HondaJets at a price that would imply a net economic benefit compared to its continued use in the fleet and so have entered into a contract to sell it as part of our gradual reorientation of the fleet toward the higher margin Challenger 3500 aircraft. We separately have made several advancements on our software business, including the implementation of Reroute AI for our Jet Card holders offering empty leg benefits, and the launch of our enhanced DynoFlight 2.0 platform, which integrates AI and synced fleet data with our partner, FL3XX. These two solutions, along with CharterGPT, continue to attract market interest. We remain cautiously optimistic and look forward to announcing further news on our proposed fleet deal.”

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.
949-574-3860
Jet.AI@gateway-grp.com


JET.AI, INC.
(FORMERLY JET TOKEN, INC.)
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
      
 June 30,  December 31, 
 2024  2023 
 (Unaudited)    
      
Assets     
Current assets:     
Cash and cash equivalents$528,117  $2,100,543 
Accounts receivable535,975  96,539 
Other current assets72,769  190,071 
Prepaid offering costs800,000  800,000 
Total current assets1,936,861  3,187,153 
      
Property and equipment, net6,329  7,604 
Intangible assets, net20,401  73,831 
Right-of-use lease asset1,312,332  1,572,489 
Investment in joint venture100,000  100,000 
Deposits and other assets798,211  798,111 
Total assets$4,174,134  $5,739,188 
      
Liabilities and Stockholders' Deficit     
Current liabilities:     
Accounts payable$1,515,201  $1,656,965 
Accrued liabilities2,749,030  2,417,115 
Deferred revenue1,099,466  1,779,794 
Operating lease liability517,733  510,034 
Note payable, net-  321,843 
Notes payable - related party, net-  266,146 
Total current liabilities5,881,430  6,951,897 
      
Lease liability, net of current portion760,524  1,021,330 
Redeemable preferred stock1,702,000  1,702,000 
Total liabilities8,343,954  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, 150 and 0 issued and outstanding-  - 
Common stock, 55,000,000 shares authorized, par value $0.0001, 14,755,144 and 9,754,364 issued and outstanding1,475  975 
Subscription receivable(6,724) (6,724)
Additional paid-in capital41,557,422  35,342,098 
Accumulated deficit(45,721,993) (39,272,388)
Total stockholders' deficit(4,169,820) (3,936,039)
Total liabilities and stockholders' deficit$4,174,134  $5,739,188 



JET.AI, INC.
(FORMERLY JET TOKEN, INC.)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
 
 Three Months Ended
 Six Months Ended
 June 30,
 June 30,
 2024  2023  2024  2023 
            
Revenues$3,083,884  $2,792,808  $6,932,482  $4,668,316 
            
Cost of revenues3,500,880  2,993,631  7,473,834  4,944,157 
            
Gross loss(416,996) (200,823) (541,352) (275,841)
            
Operating Expenses:           
General and administrative (including stock-based compensation of $1,201,728, $1,348,043, $2,401,046, and $2,755,087, respectively)2,663,753  2,115,704  5,210,047  4,603,722 
Sales and marketing102,470  103,541  549,070  223,708 
Research and development37,396  28,636  69,942  64,955 
Total operating expenses2,803,619  2,247,881  5,829,059  4,892,385 
            
Operating loss(3,220,615) (2,448,704) (6,370,411) (5,168,226)
            
Other expense (income):           
Interest expense-  -  79,314  - 
Other income(59) -  (120) - 
Total other expense (income)(59) -  79,194  - 
            
Loss before provision for income taxes(3,220,556) (2,448,704) (6,449,605) (5,168,226)
            
Provision for income taxes-  -  -  - 
            
Net Loss$(3,220,556) $(2,448,704) $(6,449,605) $(5,168,226)
            
Less cumulative preferred stock dividends29,727  -  59,455  - 
            
Net Loss to common stockholders$(3,250,283) $(2,448,704) $(6,509,060) $(5,168,226)
            
Weighted average shares outstanding - basic and diluted12,906,352  4,520,625  12,224,502  4,511,751 
Net loss per share - basic and diluted$(0.25) $(0.54) $(0.53) $(1.15)
            
            
check - should be zero      -    
Per BS      $(6,449,605)   
            
Stock-based compensation$1,201,728  $1,348,043  $2,401,046  $2,755,087 



JET.AI, INC.
(FORMERLY JET TOKEN, INC.)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
  
 Six Months Ended
 June 30,
 2024  2023 
      
CASH FLOWS FROM OPERATING ACTIVITIES:     
Net loss$(6,449,605) $(5,168,226)
Adjustments to reconcile net loss to net cash used in
operating activities:
     
Amortization and depreciation67,626  67,192 
Amortization of debt discount80,761  - 
Stock-based compensation2,401,046  2,755,087 
Non-cash operating lease costs260,157  252,686 
Changes in operating assets and liabilities:     
Accounts receivable(439,436) - 
Other current assets117,302  171,876 
Accounts payable(141,764) 254,773 
Accrued liabilities331,915  (173,160)
Deferred revenue(680,328) 166,182 
Operating lease liability(253,107) (245,636)
Net cash used in operating activities(4,705,433) (1,919,226)
      
CASH FLOWS FROM INVESTING ACTIVITIES:     
Purchase of property and equipment-  (4,340)
Purchase of intangible assets(12,921) (17,174)
Investment in joint venture-  (100,000)
Deposits and other assets(100) (135)
Net cash used in investing activities(13,021) (121,649)
      
CASH FLOWS FROM FINANCING ACTIVITIES:     
Repayments - notes payable(371,250) - 
Repayments - related party notes payable(297,500) - 
Offering costs(155,000) (436,969)
Exercise of warrants742,474  - 
Proceeds from sale of Series B Preferred Stock1,500,025  - 
Proceeds from sale of Common Stock1,727,279  1,588,695 
Net cash provided by financing activities3,146,028  1,151,726 
      
Decrease in cash and cash equivalents(1,572,426) (889,149)
Cash and cash equivalents, beginning of period2,100,543  1,527,391 
Cash and cash equivalents, end of period$528,117  $638,242 
      
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$-  $25,479