Revenue Growth - For the three months ended June 30, 2025, revenue increased to $24,855 thousand compared to $181 thousand for the same period in 2024, representing a growth of approximately 13,700%[16] - Revenue from aircraft sales for Q2 2025 was $24.5 million, compared to $0 in Q2 2024[55] - Total revenue for the six months ended June 30, 2025, was $50.338 million, up from $0.229 million in the same period of 2024[55] - Subscription revenue for the three months ended June 30, 2025, was $355,000, an increase from $181,000 in the same period of 2024[55] Profitability - Net income for the three months ended June 30, 2025, was $3,602 thousand, compared to a net loss of $16,918 thousand in the same period of 2024, marking a turnaround in profitability[16] - The company reported a basic net income per share from continuing operations of $1.03 for Q2 2025, compared to a loss of $6.38 per share in Q2 2024[16] - For the six months ended June 30, 2025, the company reported a net income of $3,043,000 from continuing operations, a significant improvement compared to a net loss of $13,192,000 in the same period of 2024[21] - The net income attributable to common stockholders from continuing operations for the six months ended June 30, 2025, was $3.836 million, compared to a loss of $13.192 million in 2024[156] Financial Position - Total current assets decreased to $10,686 thousand as of June 30, 2025, down from $43,314 thousand as of December 31, 2024, primarily due to a reduction in deposits[14] - Total liabilities decreased to $20,112 thousand as of June 30, 2025, compared to $62,633 thousand as of December 31, 2024, indicating improved financial health[14] - The company has an accumulated deficit of approximately $100.3 million as of June 30, 2025[27] - The company’s total shareholders' deficit improved to $(7,064) thousand as of June 30, 2025, from $(16,334) thousand as of December 31, 2024, reflecting a positive shift in equity[14] Cash Flow and Liquidity - The company had cash and cash equivalents of $4,707 thousand as of June 30, 2025, an increase from $2,161 thousand as of December 31, 2024, enhancing liquidity[14] - The company generated net cash provided by operating activities from continuing operations of $3,282 million for the six months ended June 30, 2025[21] - The company reported cash and restricted cash of $4,707,000 at the end of the period, down from $7,249,000 at the beginning[21] Debt and Financing - The company issued a convertible note of $4.5 million in 2024, with $4.1 million funded by year-end, reflecting a 10% original issue discount[44] - The company issued a second convertible note in June 2025 for a principal amount of $1.5 million, recorded at a fair value of $1.4 million[46] - The company incurred $641,000 in interest under its credit facility during the six months ended June 30, 2025, compared to $2.3 million for the same period in 2024[110] Operational Changes - The company completed a reverse stock split at a ratio of 1-for-25 on February 24, 2025[26] - The company sold its former subsidiary GC Aviation, Inc. for $2 million, with $1.8 million recorded as a note receivable[26] - The Company operates in a single reportable segment, private aviation services, with all long-lived assets located in the U.S.[72] Tax and Compliance - The effective tax rate was 3.00% for the three months ended June 30, 2025, differing from the federal statutory rate of 21% due to valuation allowance on deferred tax benefits[125] - The Company is not currently under examination by any tax authority, indicating a stable tax compliance status[61] Future Outlook - The company anticipates continued growth in revenue and profitability, driven by strategic initiatives and market expansion efforts[10] - The company intends to fund its operations through the issuance of financial instruments and revenues from operations, including aircraft sales at a premium to cost[28] - The company may be required to reduce the near-term scope of its planned development and operations if it is unable to obtain sufficient additional capital or debt[29]
PROOF Acquisition I(PACI) - 2025 Q2 - Quarterly Report