Jet.AI Inc. Reports First Quarter 2025 Financial Results
LAS VEGAS, May 15, 2025 (GLOBE NEWSWIRE) -- Jet.AI Inc. (the "Company") (NASDAQ:JTAI), a pure-play artificial intelligence ("AI") data center company operating aviation-specific AI software, today announced financial results for the first quarter ended March 31, 2025.
Recent Operational Highlights
- Signed Letter of Intent ("LOI") to form a joint venture with Consensus Core Technologies Inc. ("Consensus Core") to pursue the development of two hyperscale data-center campuses in Midwestern Canada and Maritime Canada, respectively.
- Announced strategic shift into AI data center investment and signed a LOI for a 50-megawatt data center project on a proposed gigawatt campus in Nevada
- Entered into a definitive agreement with flyExclusive to divest the Company's jet card and fractional aviation business in a spin-merge transaction expected to close in the second quarter of 2025
Management Commentary
Founder and Executive Chairman Mike Winston said, "Since refocusing our long-term strategy on AI-driven infrastructure, we've made meaningful progress pursuing and executing on what we believe are extraordinary opportunities in this space. Last month, we signed a letter of intent with Consensus Core, a group that brings both a seasoned track record and something far more valuable: real experience developing AI data centers.
Through this partnership, we plan to jointly develop two large-scale campuses-one in Midwestern Canada, the other in the Maritimes. These locations weren't picked for their postcard views-they were chosen because they sit atop the kind of energy infrastructure this next chapter of computing will depend on: access to grid power, on-site natural gas and hydroelectric/renewable energy sources.
What's especially attractive about this structure is our proposed general partnership interest in each project. That gives us the opportunity to participate in long-term cash flows, for a projected 1.5 gigawatts of capacity. As these sites are developed, leased, and ultimately scaled, we believe both the income and the underlying asset value will grow.
We're moving steadily toward a definitive agreement, and we look forward to sharing updates as we make progress. As always, we're focused on building value carefully, with good partners, and one step at a time."
First Quarter 2025 Financial Results
Revenues were $3.5 million, compared to $3.8 million in the same period last year. The decrease was primarily due to a decrease in software app and cirrus charter revenue and jet card and fractional programs revenue.
Software App and Cirrus Charter revenue, the gross amount of charters booked through CharterGPT and Cirrus, was $1.8 million, compared to $2.4 million in the same period last year. The decrease was primarily due to reduced marketing efforts and an industry-wide decline in private jet travel demand.
Management and Other Services revenue, which is comprised of revenues generated from managing and chartering our customer aircraft, increased 60% to $1.3 million compared to $0.8 million in the same period last year. The increase was driven by a management agreement entered into in the fourth quarter of 2023 and the addition of a second managed aircraft starting in April 2024.
Jet Card and Fractional Programs revenue, which is generated from the sale and use of jet cards and service revenue related to ongoing utilization by the Company's fractional customers, totaled $0.3 million compared to $0.7 million in the same period last year. The decrease was primarily due to a challenging economic environment reducing flight hours flown and a revised pricing strategy, which bases Jet Card sales on HondaJet rates with an option to upgrade to the managed Cessna Citation CJ4, combined with efforts to increase Jet Card pricing.
Cost of revenues totaled $3.6 million compared to $4.0 million in the same period last year. The decrease was primarily due to a decrease in third-party charter costs, federal excise taxes and merchant fees.
Gross loss totaled approximately $116,000 compared to a loss of $124,000 in the same period last year. The slight improvement in results was primarily due to lower maintenance costs and pilot wages, and lower utilization of the Company's HondaJet Elites, partially offset by stable fixed costs.
Operating expenses totaled $3.1 million compared to $3.0 million in the same period last year, The increase was primarily due to an increase in general and administrative expenses, research and development expenses, which were offset by a decrease in sales and marketing expenses.
Operating loss was $3.2 million compared to a loss of $3.1 million in the same period last year.
As of March 31st, 2025, the Company had a cash balance of $12.2 million and no debt.
About Jet.AI
Founded in 2018 and is based in Las Vegas, NV, Jet.AI currently operates in two segments, Software and Aviation, and is transitioning to a pure-play AI data center company. Leveraging a leadership team with deep expertise in data center development and AI-driven technologies, Jet.AI intends to build a scalable, high-performance infrastructure to support the increasing computational demands of artificial intelligence. Our suite of AI-powered tools stems from our origin as an aviation company, and leverages natural language processing technologies to enhance efficiency, optimize operations, and streamline the private jet booking experience.
Forward-Looking Statements
This press release contains certain statements that may be deemed to be "forward-looking statements" within the meaning of the federal securities laws, including the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, with respect to the products and services offered by Jet.AI and the markets in which it operates, and Jet.AI's projected future results. Statements that are not historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements relate to future events or our future performance or future financial condition. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about our Company, our industry, our beliefs and our assumptions. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions or the negative of these terms or other similar expressions, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties that could cause the actual results to differ materially from the expected results. As a result, caution must be exercised in relying on forward-looking statements, which speak only as of the date they were made. Factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements can be found in the Company's most recent Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Readers are cautioned not to put undue reliance on forward-looking statements, and Jet.AI assumes no obligation and does not intend to update or revise these forward-looking statements, whether because of new information, future events, or otherwise, except as provided by law.
Jet.AI Investor Relations:
Gateway Group, Inc.
949-574-3860
[email protected]
JET.AI, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| March 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 12,245,419 | $ | 5,872,627 | ||||
| Accounts receivable | 398,873 | 132,230 | ||||||
| Other current assets | 336,692 | 357,751 | ||||||
| Total current assets | 12,980,984 | 6,362,608 | ||||||
| Property and equipment, net | 4,417 | 5,055 | ||||||
| Intangible assets, net | 86,745 | 86,745 | ||||||
| Right-of-use lease asset | 914,915 | 1,048,354 | ||||||
| Investment in joint venture | 100,000 | 100,000 | ||||||
| Deposit on aircraft | 3,500,000 | 2,400,000 | ||||||
| Deposits and other assets | 871,561 | 794,561 | ||||||
| Total assets | $ | 18,458,622 | $ | 10,797,323 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 551,800 | $ | 280,450 | ||||
| Accrued liabilities | 2,109,418 | 1,663,338 | ||||||
| Deferred revenue | 1,282,397 | 1,319,746 | ||||||
| Operating lease liability | 529,499 | 525,547 | ||||||
| Total current liabilities | 4,473,114 | 3,789,081 | ||||||
| Lease liability, net of current portion | 361,916 | 495,782 | ||||||
| Total liabilities | 4,835,030 | 4,284,863 | ||||||
| Commitments and contingencies | - | - | ||||||
| Stockholders' Equity | ||||||||
| Preferred Stock, 4,000,000 shares authorized, par value $0.0001, 0 issued and outstanding (except for the Series B Shares identified below) | - | - | ||||||
| Series B Convertible Preferred Stock, 5,000 shares authorized, par value $0.0001, 1,300 and 250 issued and outstanding | - | - | ||||||
| Common stock, 200,000,000 shares authorized, par value $0.0001, 2,187,446 and 1,629,861 issued and outstanding | 218 | 162 | ||||||
| Subscription receivable | (6,724 | ) | (6,724 | ) | ||||
| Additional paid-in capital | 69,345,980 | 59,065,100 | ||||||
| Accumulated deficit | (55,715,882 | ) | (52,546,078 | ) | ||||
| Total stockholders' equity | 13,623,592 | 6,512,460 | ||||||
| Total liabilities and stockholders' equity | $ | 18,458,622 | $ | 10,797,323 | ||||
JET.AI, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenues | $ | 3,474,638 | $ | 3,848,598 | ||||
| Cost of revenues | 3,590,152 | 3,972,954 | ||||||
| Gross loss | (115,514 | ) | (124,356 | ) | ||||
| Operating Expenses: | ||||||||
| General and administrative (including stock-based compensation of $550,936, and $1,199,318, respectively) | 2,652,427 | 2,546,294 | ||||||
| Sales and marketing | 294,408 | 446,600 | ||||||
| Research and development | 108,924 | 32,546 | ||||||
| Total operating expenses | 3,055,759 | 3,025,440 | ||||||
| Operating loss | (3,171,273 | ) | (3,149,796 | ) | ||||
| Other expense (income): | ||||||||
| Interest expense | - | 79,314 | ||||||
| Other income | (1,469 | ) | (61 | ) | ||||
| Total other expense | (1,469 | ) | 79,253 | |||||
| Loss before provision for income taxes | (3,169,804 | ) | (3,229,049 | ) | ||||
| Provision for income taxes | - | - | ||||||
| Net Loss | $ | (3,169,804 | ) | $ | (3,229,049 | ) | ||
| Cumulative preferred stock dividends | - | (29,728 | ) | |||||
| Net Loss to common stockholders | $ | (3,169,804 | ) | $ | (3,258,777 | ) | ||
| Weighted average shares outstanding - basic and diluted | 1,711,490 | 50,851 | ||||||
| Net loss per share - basic and diluted | $ | (1.85 | ) | $ | (64.08 | ) | ||
JET.AI, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2025 | 2024 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (3,169,804 | ) | $ | (3,229,049 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Amortization and depreciation | 638 | 33,813 | ||||||
| Amortization of debt discount | - | 80,761 | ||||||
| Stock-based compensation | 550,936 | 1,199,318 | ||||||
| Non-cash operating lease costs | 133,439 | 129,605 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (266,643 | ) | (66,423 | ) | ||||
| Other current assets | 21,059 | 85,414 | ||||||
| Accounts payable | 271,350 | (270,529 | ) | |||||
| Accrued liabilities | 446,080 | 26,889 | ||||||
| Deferred revenue | (37,349 | ) | (384,509 | ) | ||||
| Operating lease liability | (129,914 | ) | (126,080 | ) | ||||
| Net cash used in operating activities | (2,180,208 | ) | (2,520,790 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchase of intangible assets | - | (12,922 | ) | |||||
| Deposit on aircraft | (1,100,000 | ) | - | |||||
| Deposits and other assets | (77,000 | ) | - | |||||
| Net cash used in investing activities | (1,177,000 | ) | (12,922 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Repayments of notes payable | - | (371,250 | ) | |||||
| Repayments of related party notes payable | - | (297,500 | ) | |||||
| Offering costs | (1,270,000 | ) | (155,000 | ) | ||||
| Proceeds from exercise of common stock warrants | - | 742,474 | ||||||
| Proceeds from exercise of Series B Convertible Preferred Stock warrants | 11,000,000 | - | ||||||
| Proceeds from sale of Common Stock | - | 1,110,000 | ||||||
| Net cash provided by financing activities | 9,730,000 | 1,028,724 | ||||||
| Increase (decrease) in cash and cash equivalents | 6,372,792 | (1,504,988 | ) | |||||
| Cash and cash equivalents, beginning of period | 5,872,627 | 2,100,543 | ||||||
| Cash and cash equivalents, end of period | $ | 12,245,419 | $ | 595,555 | ||||
| Supplemental disclosures of cash flow information: | ||||||||
| Cash paid for interest | $ | - | $ | 79,314 | ||||
| Cash paid for income taxes | $ | - | $ | - | ||||
| Non-cash financing activities: | ||||||||
| Issuance of Common Stock for Series B Preferred Stock conversion | $ | 53 | $ | - | ||||
| Subscription receivable from sale of Common and Preferred Stock | $ | - | $ | 1,500,025 | ||||
