Financial Performance - Revenues for the three months ended September 30, 2025, were $1,710,988, a decrease of 56.4% compared to $3,917,393 for the same period in 2024[12] - Gross loss for the nine months ended September 30, 2025, was $514,221, compared to a gross loss of $555,238 for the same period in 2024, indicating an improvement of approximately 7.4%[12] - Operating loss for the three months ended September 30, 2025, was $2,036,197, compared to $2,881,938 for the same period in 2024, reflecting a reduction of about 29.4%[12] - Net loss for the nine months ended September 30, 2025, was $7,520,876, down from $9,331,487 in the same period of 2024, showing a decrease of approximately 19.4%[12] - For the nine months ended September 30, 2025, the net loss was $7,520,876, an improvement from a net loss of $9,331,487 in the same period of 2024, representing a decrease of approximately 19.4%[17] - The Company reported a net loss of $3,220,556 for the quarter ending June 30, 2024[15] - The Company incurred a gross loss of $514,000 in the first nine months of 2025, compared to a gross loss of $555,000 in 2024[186] - The operating loss for the first nine months of 2025 was approximately $7.6 million, a decrease of $1.6 million compared to the prior year[189] Cash and Assets - Total assets increased to $12,892,262 as of September 30, 2025, up from $10,797,323 on December 31, 2024, representing a growth of approximately 19.4%[10] - Cash and cash equivalents decreased to $3,475,410 as of September 30, 2025, from $5,872,627 on December 31, 2024, a decline of about 40.7%[10] - As of September 30, 2025, cash and cash equivalents totaled $3.5 million, with current assets exceeding current liabilities by $3.3 million[191] - Total stockholders' equity increased to $9,229,013 as of September 30, 2025, compared to $6,512,460 on December 31, 2024, representing a growth of approximately 41.7%[10] - The Company recorded a net balance of $645,099 for operating lease right-of-use assets as of September 30, 2025, down from $1,048,354 as of December 31, 2024[85] Revenue and Expenses - Revenue from the Software App and Cirrus Charter for the three months ended September 30, 2025, was $642,279, while for the nine months it was $3,763,924[55] - Advertising costs totaled $676,081 for the nine months ended September 30, 2025, compared to $632,380 for the same period in 2024[64] - The primary reason for the revenue decrease was a reduction in Cirrus charter and Jet Card revenues by $1.3 million and $363,000, respectively, due to the planned sale of the Company's aviation assets to flyExclusive[158] - Total operating expenses in Q3 2025 decreased by approximately $1.2 million compared to Q3 2024, driven by a $1.3 million decrease in general and administrative expenses[170] - Operating expenses decreased by $1.6 million in 2025, primarily due to a reduction in general and administrative expenses[187] Stock and Equity - The weighted average shares outstanding for basic and diluted shares was 3,334,744 for the three months ended September 30, 2025, compared to 78,523 for the same period in 2024, reflecting a significant increase in shares outstanding[12] - The Company issued 1,701,355 shares of common stock for the conversion of 361 shares of Series B Preferred Stock during the nine months ended September 30, 2025[117] - The Company completed a reverse stock split at a ratio of 1-for-225 on November 12, 2024, affecting the number of shares and per-share computations retroactively[27] - The Company's Board of Directors authorized a share repurchase program of up to $2 million, with no shares repurchased as of September 30, 2025[119] Strategic Initiatives - The company has transitioned its primary focus to AI data center operations and assets starting in 2025, indicating a strategic shift in business operations[22] - The Company entered into a Joint Venture Agreement with Consensus Core Technologies Inc. to develop data centers, with an initial contribution of $300,000 for a 0.5% equity interest in Convergence Compute[98][99] - The Company plans to contribute up to $20 million to Convergence Compute in five tranches, with each tranche tied to specific project development milestones[100] - The Company entered into a Merger Agreement with flyExclusive, with the expectation to close during the first quarter of 2026[104][110] - The Company expects to close the Transactions during the fourth quarter of 2025, focusing on AI and data-center enterprise sectors post-transaction[152] Liabilities and Deferred Revenue - Accounts payable rose significantly to $903,413 as of September 30, 2025, compared to $280,450 on December 31, 2024, an increase of approximately 222.5%[10] - Deferred revenue as of September 30, 2025, was $443,015, down from $1,319,746 at the beginning of the period, indicating a significant reduction in deferred revenue[130] - Deferred revenue at the end of Q3 2025 was $443,000, down from approximately $1.2 million at the end of Q3 2024[163] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $189,295, up from $107,901 in the same period of 2024, indicating an increase of about 75.2%[12] - Research and development costs are expensed as incurred, primarily related to third-party software development[65] Financing Activities - The company reported a net cash provided by financing activities of $8,747,775 for the nine months ended September 30, 2025, compared to $3,064,795 in the same period of 2024, showing an increase of approximately 185.5%[17] - The Company raised $11.0 million through the issuance of 1,100 shares of Series B Preferred Stock in the first nine months of 2025[192]
Jet.AI (JTAI) - 2025 Q3 - Quarterly Report