Surf Air Mobility (US:SRFM)2024-05-15 20:31Revenue Growth - Revenue increased by $25.1 million, or 456%, for the three months ended March 31, 2024, compared to the same period in 2023[140]. - Scheduled revenue increased by $22.1 million for the three months ended March 31, 2024, primarily due to the Southern Acquisition, which contributed $22.0 million to this increase[141]. - On-demand revenue increased by $3.0 million, or 63%, for the three months ended March 31, 2024, compared to the same period in 2023, driven by an increase in on-demand charter flights from 422 to 630[142]. Passenger and Flight Activity - Scheduled flight hours reached 16,817 for the three months ended March 31, 2024, an increase of 16,095 hours compared to 722 hours in the same period of 2023[138]. - The number of scheduled passengers soared to 87,723 in the first quarter of 2024, up from 1,631 in the first quarter of 2023, marking an increase of 86,092 passengers[138]. - Headcount increased to 815 employees by the end of the first quarter of 2024, up from 84 employees in the same period of 2023, reflecting a growth of 731 employees[138]. Operating Expenses and Losses - Operating expenses totaled $65.1 million for the three months ended March 31, 2024, a significant increase of $47.5 million, or 271%, compared to $17.6 million in the same period of 2023[139]. - The Company incurred an operating loss of $34.5 million for the three months ended March 31, 2024, compared to an operating loss of $12.0 million in the same period of 2023[139]. - The Company reported a net loss of $37.0 million for the three months ended March 31, 2024, compared to a net loss of $20.6 million in the same period of 2023[139]. Financial Position and Cash Flow - Net cash used in operating activities was $12.8 million for the three months ended March 31, 2024, compared to $9.0 million in the same period in 2023, reflecting a $3.8 million increase[158]. - Net cash provided by financing activities increased by $3.7 million to $13.1 million for the three months ended March 31, 2024, primarily due to proceeds from the GEM stock purchase agreement[162]. - The company incurred a net loss of $36.9 million for the three months ended March 31, 2024, an increase of $16.4 million compared to the same period in 2023[155]. Tax and Liabilities - The company is in default of certain tax obligations totaling approximately $7.6 million, including penalties and interest, as of March 31, 2024[164]. - The company has classified $1.0 million as a current liability related to past due rental and maintenance payments under aircraft leases[165]. Capital Expenditures and Financing - The Company has placed an order for 90 Cessna Grand Caravan aircraft, with an expected total cost of approximately $1.2 billion over the next five years[169]. - The Company intends to finance aircraft acquisitions through a sale-leaseback financing arrangement of up to $450 million with Jetstream Aviation Capital[169]. - The Company has the ability to draw an additional $296 million under the Share Purchase Agreement, subject to daily volume limitations[166]. Development and Technology - The Company is developing fully-electric and hybrid-electric powertrain technologies to enhance its regional air mobility ecosystem[124]. - The Company has engaged AeroTEC to develop hybrid-electric and fully electric STCs for the Cessna Grand Caravan[169]. - Technology and development expenses surged by $6.2 million, or 763%, for the three months ended March 31, 2024, mainly due to the amortization of the Textron data license and software expenses related to Palantir[146]. Future Strategies - The Company is evaluating strategies to obtain additional funding, including equity financing and restructuring operations to grow revenues[167]. - The Company’s financial statements assume it will continue as a going concern, despite uncertainties regarding its ability to raise sufficient financing[168].