Company Operations - Starfighters Space, Inc. operates a fleet of seven F-104 supersonic aircraft, fulfilling a unique demand in the space economy[136]. - Starfighters International has entered into an aircraft acquisition agreement to purchase various used aircraft, including twelve F-4 Phantom II aircraft[144]. Financial Agreements and Obligations - The company has entered into a commercial hangar lease agreement in Texas for $18,535 per month, effective June 1, 2025, with a potential extension of up to four additional years[137]. - Under the Economic Development Agreement, Starfighters International is committed to relocating assets totaling $60 million by December 31, 2025, and $78 million by December 31, 2027[138]. - The company aims to create and maintain 23 full-time jobs by December 31, 2033, as part of its obligations under the Economic Development Agreement[138]. - Starfighters has amended its loan agreement with Space Florida, with an outstanding principal amount of $1,512,627.17 as of November 1, 2024[141]. Capital Raising and Stock Issuance - The company raised gross proceeds of $17,938,174 from the sale of 4,996,697 shares of common stock at $3.59 per share through its Regulation A Tier 2 Offering[151]. - The Company issued 6,145,364 shares of common stock at a price of $3.59 per share, resulting in gross proceeds of approximately $22,100,000 from its Reg A Offering on December 17, 2025[222]. - The Company issued 3,834,857 Common Shares at a price of $2.154 per share upon the automatic conversion of outstanding convertible debentures totaling approximately $8,261,000[223]. - The Company issued 404,312 Common Shares at a price of $3.59 per share for the conversion of notes payable to Space Florida, totaling approximately $1,451,000[224]. Financial Performance - For the nine months ended September 30, 2025, the company incurred a net loss of $6,261,319, an improvement from a net loss of $7,266,250 for the same period in 2024, reflecting a decrease in net loss of $1,004,931[153]. - Total operating expenses for the nine months ended September 30, 2025, were $5,661,699, compared to $2,940,194 in 2024, reflecting an increase of 92.5%[153]. - Other income increased to $475,140 for the nine months ended September 30, 2025, from $77,900 in 2024, a rise of 510%[171]. - Grant income of $139,723 was recognized in the nine months ended September 30, 2025, compared to $0 in 2024, indicating new funding sources[172]. - Interest income increased to $117,401 for the nine months ended September 30, 2025, compared to $26,420 in 2024, an increase of 345%[174]. Expense Analysis - Advertising and promotional expenses increased to $172,177 for the nine months ended September 30, 2025, compared to $140,540 in 2024, marking a rise of 22.5%[154]. - Business development expenses rose significantly to $580,736 in the nine months ended September 30, 2025, up from $270,000 in 2024, an increase of 115%[155]. - Consulting fees increased to $1,189,450 for the nine months ended September 30, 2025, compared to $659,217 in 2024, representing an increase of 80.5%[156]. - Research and development expenses were $636,205 for the nine months ended September 30, 2025, compared to $0 in 2024, indicating a new investment in product development[167]. - Insurance expenses increased significantly to $64,749 from $22,457, reflecting an increase of $42,292 due to new directors' and officers' insurance[182]. - Management fees rose to $75,000 from $55,500, an increase of $19,500, primarily for CEO oversight of daily operations[183]. - Travel and entertainment expenditures increased to $162,085 from $19,557, an increase of $142,528 as the company engaged with prospective investors[191]. - Interest expenses rose to $153,803 from $71,523, an increase of $82,280, due to higher rates on convertible debentures[197]. Cash Flow and Working Capital - Net cash used in operating activities for the nine months ended September 30, 2025, was $4,992,573, compared to $2,004,619 for the same period in 2024[203]. - Net cash provided by financing activities increased to $6,655,149 for the nine months ended September 30, 2025, from $4,161,572 in 2024[205]. - The company received gross proceeds of $7,247,931 from the Reg A Offering, net of issuance costs, during the nine months ended September 30, 2025[206]. - As of September 30, 2025, the Company had cash of $2,645,121 to settle current liabilities of $17,642,168 due within twelve months[237]. - The company reported a working capital deficit of $13,190,485 as of September 30, 2025, compared to a deficit of $7,676,263 at the end of 2024[199]. Market and Risk Factors - The Company has not entered into any material off-balance sheet arrangements[219]. - The Company intends to take advantage of reduced reporting requirements as an emerging growth company under the JOBS Act, which may affect comparability with other companies[228]. - The Company has no assurance that future equity and debt financing will be available on favorable terms[236]. - The Company’s exposure to market risk was insignificant as of September 30, 2025, with no material amounts of financial instruments in foreign currencies[238].
Starfighters Space(FJET) - 2025 Q3 - Quarterly Report