Jet.AI Reports First Quarter 2024 Financial Results
Jet.AI (Nasdaq: JTAI) reported its Q1 2024 financial results, showing a 105% year-over-year revenue increase to $3.8 million. Key revenue drivers included significant increases in Software App and Management and Other Services revenues. The company's net margin improved by 17% points after adjusting for stock option expenses. Jet.AI maintained its cash and cash equivalents at $2.1 million. Operational highlights include the launch of the National Jet Card Program, a partnership with FL3XX for the DynoFlight carbon removal platform, and the introduction of the Reroute AI software tool. The company also added a King Air 350i to its managed fleet and raised $16.5 million through a convertible preferred sale to Ionic Ventures Despite these positive developments, operating losses increased to $3.1 million due to higher professional services and insurance costs.
- 105% year-over-year revenue increase, reaching $3.8 million.
- Net margin improved by 17% points, adjusted for stock option expense.
- Raised $16.5 million through a convertible preferred sale to Ionic Ventures
- Launched National Jet Card Program and partnered with FL3XX to integrate DynoFlight carbon removal platform.
- Introduced Reroute AI software tool.
- Added a King Air 350i to managed fleet.
- Operating loss increased to $3.1 million from $2.7 million year-over-year.
- Cost of revenues doubled to $4.0 million due to increased fleet utilization and charter costs.
- Operating expenses, excluding stock option expense, increased to $1.8 million from $1.2 million.
- Professional services and D&O insurance costs rose as a result of being public.
Insights
Jet.AI's financial results for Q1 2024 reflect some notable improvements but also reveal areas of concern. The company reported a
However, the company's operating expenses significantly increased, rising to
The company's cash position remains relatively unchanged, with
For retail investors, it's important to weigh the significant revenue growth against the rising costs. The key will be whether Jet.AI can continue to scale its revenue while managing its expenses more effectively.
Jet.AI's strategic initiatives, such as the launch of the National Jet Card Program and Reroute AI, are noteworthy. The National Jet Card Program allows the company to tap into a substantial market without significant capital expenditure, leveraging third-party aircraft. This could potentially unlock a much larger customer base and drive revenue growth further.
The introduction of Reroute AI, designed to optimize the utilization of empty flight legs, is another innovative solution aimed at enhancing operational efficiency and customer value. This tool could significantly reduce costs tied to empty flights, which is a common challenge in the private aviation industry.
Additionally, the partnership with FL3XX to integrate the DynoFlight carbon removal platform is a strategic move towards sustainability, aligning with industry trends and potentially attracting eco-conscious customers.
These initiatives indicate that Jet.AI is focusing on leveraging technology to address operational inefficiencies and expand its market reach. However, the successful implementation and resulting revenue generation from these programs will be critical to watch in the coming quarters.
Reroute AI and the integration of the DynoFlight platform with FL3XX demonstrate Jet.AI's commitment to technological innovation. Reroute AI aims to optimize the use of empty flight legs, a common inefficiency in the private aviation industry. By transforming these empty legs into revenue-generating opportunities, Jet.AI could improve both profitability and customer satisfaction.
The partnership with FL3XX for the DynoFlight carbon removal platform highlights a push towards sustainability. This integration could appeal to environmentally conscious customers and differentiate Jet.AI's offerings in a competitive market. However, the actual impact on the company's financials will depend on the adoption rate and effectiveness of these technologies in practice.
For investors, it is essential to monitor how these technological advancements influence both operational efficiency and market position. While the initiatives are promising, their real-world impact remains to be seen.
- Increase in total revenues of
105% year-over-year 17% point increase in net margin, adjusted for stock option expense- Cash and cash equivalents of
$2.1 million as of April 1st, unchanged from December 31st, 2023
LAS VEGAS, May 15, 2024 (GLOBE NEWSWIRE) -- Jet.AI Inc. (the “Company”) (Nasdaq: JTAI), an innovative private aviation and artificial intelligence (“AI”) company, today announced financial results for the first quarter ended March 31, 2024.
First Quarter 2024 and Recent Operational Highlights
- Released the National Jet Card Program using third party aircraft
- Announced partnership with FL3XX to integrate its DynoFlight carbon removal platform making it an easy option for thousands of FL3XX customers
- Launched Reroute AI, a web-based software tool designed to transform the way empty flight legs are utilized
- As previously disclosed, raised a
$16.5 million convertible preferred from Ionic Ventures LLC - Added a King Air 350i to its managed fleet
First Quarter 2024 Financial Results
Revenues were
Software App and Cirrus Aviation Charter Revenue, the gross amount of charters booked through CharterGPT and Cirrus Aviation, was
Management and Other Services revenue, which is comprised of revenues generated from managing and chartering our customer aircrafts, totaled
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
Cost of revenues totaled
Operating expenses excluding stock option expense totaled
Operating loss was approximately
Cash and cash equivalents including gross proceeds from the release of a tranche of a convertible preferred with Ionic Ventures, LLC was approximately
Management Commentary
“Last quarter we doubled sales year over year and substantially improved bottom line margin, up
“Looking ahead, we just announced a national jet card program that allows Jet.AI to address hundreds of millions of dollars of market potential with little or no incremental capital outlay. In our regional jet card program, we’re limited by the number of planes we control and their range, with the national program we don’t have those limitations because we use off-fleet jets from safety vetted operators. That frees us to use our regional jet card sales and management capability on a larger scale. In addition, next week we expect to launch a new version of Reroute AI geared toward the tens of thousands of charter brokers who routinely search for value on behalf of their customers. Overall, we’re headed in the right direction and staying disciplined.”
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 share ownership, jet card, 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 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 Securities and Exchange Commission (File No. 333-270848) and other documents filed by the Company from time to time with the SEC. 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.
Jet.AI Investor Relations:
Gateway Group, Inc.
949-574-3860
Jet.AI@gateway-grp.com
| JET.AI, INC. CONSOLIDATED BALANCE SHEETS | ||||||||
| March 31, 2024 | December 31, 2023 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 595,555 | $ | 2,100,543 | ||||
| Accounts receivable | 162,962 | 96,539 | ||||||
| Other current assets | 104,657 | 190,071 | ||||||
| Prepaid offering costs | 800,000 | 800,000 | ||||||
| Subscription receivable | 1,500,025 | - | ||||||
| Total current assets | 3,163,199 | 3,187,153 | ||||||
| Property and equipment, net | 6,967 | 7,604 | ||||||
| Intangible assets, net | 53,577 | 73,831 | ||||||
| Right-of-use lease asset | 1,442,884 | 1,572,489 | ||||||
| Investment in joint venture | 100,000 | 100,000 | ||||||
| Deposits and other assets | 798,111 | 798,111 | ||||||
| Total assets | $ | 5,564,738 | $ | 5,739,188 | ||||
| Liabilities and Stockholders’ Deficit | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,386,436 | $ | 1,656,965 | ||||
| Accrued liabilities | 2,444,004 | 2,417,115 | ||||||
| Deferred revenue | 1,395,285 | 1,779,794 | ||||||
| Operating lease liability | 513,869 | 510,034 | ||||||
| Note payable | - | 321,843 | ||||||
| Notes payable - related party | - | 266,146 | ||||||
| Total current liabilities | 5,739,594 | 6,951,897 | ||||||
| Lease liability, net of current portion | 891,415 | 1,021,330 | ||||||
| Redeemable preferred stock | 1,702,000 | 1,702,000 | ||||||
| Total liabilities | 8,333,009 | 9,675,227 | ||||||
| Commitments and contingencies (Note 2 and 5) | - | - | ||||||
| Stockholders’ Deficit | ||||||||
| Preferred Stock, 4,000,000 shares authorized, par value | - | - | ||||||
| Series B Convertible Preferred Stock, 5,000 shares authorized, par value | - | - | ||||||
| Common stock, 55,000,000 shares authorized, par value | 1,255 | 975 | ||||||
| Subscription receivable | (6,724 | ) | (6,724 | ) | ||||
| Additional paid-in capital | 39,738,635 | 35,342,098 | ||||||
| Accumulated deficit | (42,501,437 | ) | (39,272,388 | ) | ||||
| Total stockholders’ deficit | (2,768,271 | ) | (3,936,039 | ) | ||||
| Total liabilities and stockholders’ deficit | $ | 5,564,738 | $ | 5,739,188 | ||||
| JET.AI, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2024 | 2023 | |||||||
| Revenues | $ | 3,848,598 | $ | 1,875,508 | ||||
| Cost of revenues | 3,972,954 | 1,950,526 | ||||||
| Gross loss | (124,356 | ) | (75,018 | ) | ||||
| Operating Expenses: | ||||||||
| General and administrative (including stock-based compensation of | 2,546,294 | 2,488,018 | ||||||
| Sales and marketing | 446,600 | 120,167 | ||||||
| Research and development | 32,546 | 36,319 | ||||||
| Total operating expenses | 3,025,440 | 2,644,504 | ||||||
| Operating loss | (3,149,796 | ) | (2,719,522 | ) | ||||
| Other expense (income): | ||||||||
| Interest expense | 79,314 | - | ||||||
| Other income | (61 | ) | - | |||||
| Total other expense | 79,253 | - | ||||||
| Loss before provision for income taxes | (3,229,049 | ) | (2,719,522 | ) | ||||
| Provision for income taxes | - | - | ||||||
| Net Loss | $ | (3,229,049 | ) | $ | (2,719,522 | ) | ||
| Less cumulative preferred stock dividends | 29,728 | - | ||||||
| Net Loss to common stockholders | $ | (3,258,777 | ) | $ | (2,719,522 | ) | ||
| Weighted average shares outstanding - basic and diluted | 11,441,443 | 3,902,489 | ||||||
| Net loss per share - basic and diluted | $ | (0.28 | ) | $ | (0.70 | ) | ||
| JET.AI, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2024 | 2023 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (3,229,049 | ) | $ | (2,719,522 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Amortization and depreciation | 33,813 | 33,596 | ||||||
| Amortization of debt discount | 80,761 | - | ||||||
| Stock-based compensation | 1,199,318 | 1,407,044 | ||||||
| Non-cash operating lease costs | 129,605 | 125,884 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (66,423 | ) | - | |||||
| Other current assets | 85,414 | (98,571 | ) | |||||
| Accounts payable | (270,529 | ) | 22,105 | |||||
| Accrued liabilities | 26,889 | (192,625 | ) | |||||
| Deferred revenue | (384,509 | ) | 352,401 | |||||
| Operating lease liability | (126,080 | ) | (122,359 | ) | ||||
| Net cash used in operating activities | (2,520,790 | ) | (1,192,047 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchase of property and equipment | - | (4,339 | ) | |||||
| Purchase of intangible assets | (12,922 | ) | (4,294 | ) | ||||
| Investment in joint venture | - | (100,000 | ) | |||||
| Deposits and other assets | - | 15,000 | ||||||
| Net cash used in investing activities | (12,922 | ) | (93,633 | ) | ||||
| 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 warrants | 742,474 | - | ||||||
| Proceeds from sale of Common Stock | 1,110,000 | 1,588,695 | ||||||
| Net cash provided by financing activities | 1,028,724 | 1,151,726 | ||||||
| Decrease in cash and cash equivalents | (1,504,988 | ) | (133,954 | ) | ||||
| Cash and cash equivalents, beginning of period | 2,100,543 | 1,527,391 | ||||||
| Cash and cash equivalents, end of period | $ | 595,555 | $ | 1,393,437 | ||||
| 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 and preferred stock | $ | 1,500,025 | $ | 9,935 | ||||
FAQ
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