Volato(US:SOAR)2025-11-13 13:32Revenue and Income - Revenue for the three months ended September 30, 2025, was $381,000, a significant decrease from $38,466,000 in the same period of 2024, representing a decline of approximately 99%[16] - The net income for the three months ended September 30, 2025, was $7,145,000, compared to a net loss of $4,435,000 in the same period of 2024, marking a turnaround in performance[16] - Basic net income per share from continuing operations for the three months ended September 30, 2025, was $0.46, compared to a loss of $0.89 in the same period of 2024[16] - For the nine months ended September 30, 2025, the company reported a net income of $5.374 million from continuing operations, a significant improvement compared to a net loss of $14.249 million in the same period of 2024[20] - The company experienced a net income of $5,828,000 from discontinued operations for the nine months ended September 30, 2025, while the previous year showed a net loss of $24,495,000[20] Costs and Expenses - Total costs and expenses for the three months ended September 30, 2025, were $2,945,000, down from $36,333,000 in the prior year, indicating a reduction of about 92%[16] - The cost of revenue for the three months ended September 30, 2025, was $123 thousand, down from $32.1 million in the prior year[168] - The Company incurred an operating loss of $2,564,000 for the three months ended September 30, 2025, compared to an operating income of $2,133,000 in the same period of 2024[16] Assets and Liabilities - Total current assets decreased to $11,334,000 as of September 30, 2025, from $43,314,000 as of December 31, 2024, reflecting a decline of about 74%[14] - Total liabilities decreased to $9,485,000 as of September 30, 2025, down from $62,633,000 as of December 31, 2024, representing a reduction of about 85%[14] - The company reported an accumulated deficit of $93,105,000 as of September 30, 2025, an improvement from $104,307,000 as of December 31, 2024[14] - The company has a working capital of approximately $1.9 million as of September 30, 2025[32] Cash and Cash Equivalents - The company had cash of $4,350,000 as of September 30, 2025, compared to $2,161,000 as of December 31, 2024, indicating an increase of approximately 102%[14] - The company reported cash and restricted cash of $4.350 million at the end of the period, compared to $5.601 million at the end of the previous year[21] - The Company had zero and $1.8 million of restricted cash at September 30, 2025, and December 31, 2024, respectively, serving as collateral for a credit facility[40] Mergers and Acquisitions - The company entered into a merger agreement with M2i Global, Inc., which is expected to result in M2i's stockholders owning approximately 85% of the combined company[28] - The Company completed the sale of its former subsidiary GC Aviation, Inc. for $2.0 million, with $1.8 million recorded as a note receivable[27] Development and Operations - The company began development of an AI-based software platform in July 2025 to enhance the reliability of large language models for analyzing contracts and reports[29] - The company launched its proprietary consumer-facing empty leg platform, Vaunt, in the fourth quarter of 2023, contributing to revenue generation[24] - The company has continued to take delivery of new aircraft while transitioning management of its aircraft ownership fleet operations to flyExclusive, aiming for cost savings and focusing on high-growth areas[25] Stock and Equity - The Company’s total shareholders' equity improved to $4,105,000 as of September 30, 2025, from a deficit of $16,334,000 as of December 31, 2024[14] - The 2025 Stock Incentive Plan allows for the grant of up to 415,584 shares, with 220,838 shares available for issuance as of September 30, 2025[141] - As of September 30, 2025, there were 552,000 public warrants and 609,195 private placement warrants outstanding[145] Tax and Compliance - The company is subject to U.S. Federal, state, and local income tax examinations but is currently not under examination by any tax authority[71] - The effective tax rate was 4% for the three months ended September 30, 2025, compared to zero percent for the same period in 2024[137] Other Financial Metrics - The company recognized $147 thousand in bad debt expense during the nine months ended September 30, 2025, compared to zero in the same period of 2024[42] - The Company recorded a loss of $3.0 million due to the cancellation of the Forward Purchase Agreement in 2024[50] - The Company recognized a loss of $115 thousand in "Loss from change in fair value of financial instruments" related to the Investment in M2i[52]