LAS VEGAS, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Jet.AI (the "Company") (NASDAQ:JTAI), an innovative private aviation and artificial intelligence ("AI") company, today announced financial results for the second quarter ended June 30, 2024. Second Quarter 2024 and Recent Operational Highlights Launched DynoFlight 2.0 platform, an advanced AI web-based solution for aviation carbon management Commenced and successfully completed exchange offer and consent solicitation relating to its outstanding warrants Announced AI-Powered Jet Card with Empty Leg Benefit, as a result of Reroute AI Announced non-recourse debt financing related to the proposed purchase of Bombardier Challenger 3500 aircraft Released the National Jet Card Program which offers all categories of private jet for service within the continental U.S., guaranteed rates, guaranteed availability, and a 48-hour call out Second Quarter 2024 Financial Results Revenues were $3.1 million, an increase of $0.3 million compared to the same period last year. The primary reason was due to additional service revenue arising from an additional management agreement for customer aircraft and increased chartering of the Company's Citation CJ4. Software App and Cirrus Charter revenue, the gross amount of charters booked through CharterGPT and Cirrus, was $1.6 million, a slight increase compared to the same period last year. Management and Other Services revenue, which is comprised of revenues generated from managing and chartering our customer aircrafts, totaled $914,000 compared to $423,000 in the same period last year. 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 $559,000 compared to $811,000 in the same period last year. Cost of revenues totaled $3.5 million compared to $3.0 million in the same period last year. The increase is primarily due to an increase in Cirrus charter flight activity, costs related to the operation of aircraft and payments to Cirrus for their management. Gross loss totaled approximately $417,000 compared to $201,000 in the same period last year. The increase was largely driven by reduced flights performed for the Company's jet card customers without a corresponding reduction in fixed costs. Operating expenses totaled $2.8 million compared to $2.2 million in the same period last year. The increase was primarily due to an increase in general and administrative expenses, research and development costs, offset by slightly lower sales and marketing expenses. Operating loss was approximately $3.2 million compared to $2.4 million in the same period last year. The increase was primarily due to the increase in general and administrative expenses resulting from the increase in professional service expenses and wages following the Business Combination. As of June 30, 2024, the Company had cash and cash equivalents of approximately $528,000 compared to $595,555 as of March 31, 2024. Management Commentary"In the second quarter, we made significant progress in our anticipated fleet deal with Bombardier, as we announced a non-binding, non-recourse debt financing arrangement, alongside securing $16.5 million in financing from Ionic Ventures LLC," said Founder and Executive Chairman Mike Winston. "Additionally, we successfully completed the warrant exchange offer, eliminating potentially dilutive warrant overhang and simplifying our capital structure." "We received an unsolicited bid for one of our HondaJets at a price that would imply a net economic benefit compared to its continued use in the fleet and so have entered into a contract to sell it as part of our gradual reorientation of the fleet toward the higher margin Challenger 3500 aircraft. We separately have made several advancements on our software business, including the implementation of Reroute AI for our Jet Card holders offering empty leg benefits, and the launch of our enhanced DynoFlight 2.0 platform, which integrates AI and synced fleet data with our partner, FL3XX. These two solutions, along with CharterGPT, continue to attract market interest. We remain cautiously optimistic and look forward to announcing further news on our proposed fleet deal." About Jet.AIJet.AI operates in two segments, Software and Aviation, respectively. The Software segment features the B2C CharterGPT app and the B2B Jet.AI Operator platform. The CharterGPT app uses natural language processing and machine learning to improve the private jet booking experience. The Jet.AI operator platform offers a suite of stand-alone software products to enable FAA Part 135 charter providers to add revenue, maximize efficiency, and reduce environmental impact. The Aviation segment features jet aircraft fractions, jet cards, on-fleet charter, management, and buyer's brokerage. Jet.AI is an official partner of the Las Vegas Golden Knights, 2023 NHL Stanley Cup® champions. The Company was founded in 2018 and is based in Las Vegas, NV and San Francisco, CA. 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. JET.AI, INC.(FORMERLY JET TOKEN, INC.)CONDENSED CONSOLIDATED BALANCE SHEETS(UNAUDITED)               June 30,     December 31,     2024     2023     (Unaudited)                     Assets           Current assets:           Cash and cash equivalents $ 528,117     $ 2,100,543   Accounts receivable 535,975     96,539   Other current assets 72,769     190,071   Prepaid offering costs 800,000     800,000   Total current assets 1,936,861     3,187,153               Property and equipment, net 6,329     7,604   Intangible assets, net 20,401     73,831   Right-of-use lease asset 1,312,332     1,572,489   Investment in joint venture 100,000     100,000   Deposits and other assets 798,211     798,111   Total assets $ 4,174,134     $ 5,739,188               Liabilities and Stockholders' Deficit           Current liabilities:           Accounts payable $ 1,515,201     $ 1,656,965   Accrued liabilities 2,749,030     2,417,115   Deferred revenue 1,099,466     1,779,794   Operating lease liability 517,733     510,034   Note payable, net -     321,843   Notes payable - related party, net -     266,146   Total current liabilities 5,881,430     6,951,897               Lease liability, net of current portion 760,524     1,021,330   Redeemable preferred stock 1,702,000     1,702,000   Total liabilities 8,343,954     9,675,227               Commitments and contingencies (Note 2 and 5) -     -