Jet.AI Reports Second Quarter 2025 Financial Results

LAS VEGAS, Aug. 15, 2025 (GLOBE NEWSWIRE) -- Jet.AI (the “Company”) (Nasdaq: JTAI), a provider of high-performance GPU infrastructure and AI cloud services, today announced financial results for the second quarter ended June 30, 2025. Recent Operational Highlights Announced its capital contribution to AIIA Sponsor Ltd., which serves as the sponsor of AI Infrastructure Acquisition Corp., a special purpose acquisition company (SPAC) that intends to conduct an initial public offering and focus on opportunities with companies and/or strategic assets in high-impact private technology companies advancing artificial intelligence, machine learning capabilities, and those involved in building, operating, or enabling next-generation data center infrastructure.Signed Letter of Intent ("LOI") and later executed a definitive agreement 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.flyExclusive transaction remains on track to close by October 31, 2025. Second Quarter 2025 Financial Results Revenues were $2.2 million compared to $3.1 million in the same period last year. The decrease was primarily due to a reduction in Cirrus Charter and Jet Card revenue which stemmed mainly from clients, prospects and vendors anticipating the sale of the Company’s aviation business to flyExclusive, as well as reduced flying by our management clients, partially offset by an increase in Software App revenue. Software App and Cirrus Charter revenue, the gross amount of charters booked through CharterGPT and Cirrus, was $1.3 million compared to $1.6 million in the same period last year. Management and Other Services revenue, which is comprised of revenues generated from managing and chartering the Company’s customer aircraft, totaled $533,000 compared to $914,000 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 $421,000 compared to $559,000 in the same period last year. Cost of revenues totaled $2.3 million compared to $3.5 million in the same period last year. The decrease was primarily due to decreased Cirrus charter flight activity and a decrease in merchant fees and federal excise tax relating to charter flights. Gross loss totaled approximately $110,000 compared to $417,000 in the same period last year. The reduced gross loss was largely driven by the scale-back in operations during the quarter. Operating expenses totaled $2.4 million compared to $2.8 million in the same period last year. The decrease was primarily due to a decrease in general and administrative expenses and sales and marketing expenses. Operating loss was approximately $2.5 million compared to a loss of $3.2 million in the same period last year. The decrease was primarily due to the aforementioned reduced gross loss and decrease in operating expenses for the quarter. As of June 30, 2025, the Company had cash and cash equivalents of approximately $8.3 million. Six Months 2025 Financial Results Revenues for the six months ended June 30, 2025 were $5.7 million compared to $6.9 million in the same period last year. The decrease was primarily due to decreases in Software App and Cirrus Charter revenue, Jet Card Revenue, but partially offset by increased Management and Other Services revenues. Software App and Cirrus Charter revenue for the six months ended June 30, 2025 was $3.1 million compared to $4.0 million in the same period last year. Management and Other Services revenue for the six months ended June 30, 2025 totaled $1.8 million compared to $1.7 million in the same period last year. Jet Card and Fractional Programs revenue for the six months ended June 30, 2025 totaled $765,000 compared to $1.2 million in the same period last year. Cost of revenues for the six months ended June 30, 2025 totaled $5.9 million compared to $7.5 million in the same period last year. The decrease was primarily due to a decrease in payments to Cirrus for aircraft management and operations tied to reduced flight activity, a decrease in third-party charter costs reflecting lower software-related revenue and reduced reliance on subcharters for Jet Card flights, and a decrease in federal excise taxes and merchant fees associated with charter flights. Gross loss for the six months ended June 30, 2025 totaled approximately $226,000 compared to $541,000 in the same period last year, reflecting lower maintenance costs and pilot wages, as well as lower utilization of the Company’s HondaJet Elites, partially offset by stable fixed costs. Operating expenses for the six months ended June 30, 2025 totaled $5.4 million compared to $5.8 million in the same period last year. The decrease was primarily due to a decrease in general and administrative expenses and sales and marketing expenses. Operating loss for the six months ended June 30, 2025 was approximately $5.7 million compared to a loss of $6.4 million in the same period last year. The decrease was primarily due to the aforementioned reduced gross loss and decrease in operating expenses for the quarter. Management Commentary Founder and Executive Chairman Mike Winston stated: “We continue to make encouraging progress across our Canadian data center project in partnership with Consensus Core. This past quarter, we executed a definitive agreement for the phased development of the Midwestern and Maritime projects, respectively. There, we outlined five strategic milestones which we intend to achieve and announce in sequence as the project progresses. To that end, we are now approaching the announcement of two upcoming milestones: one related to power at the Midwestern Canada site, and another reflecting further progress at the Maritime Canada site. “Consistent with our pivot toward data centers, we recently announced a capital contribution toward AIIA Sponsor, an entity serving as a sponsor of AI Infrastructure Acquisition Corp. founded by certain members of our executive officers and directors. AI Infrastructure Acquisition Corp. is a SPAC targeting opportunities with private companies specializing in AI, machine learning, and data center infrastructure operations. Through our contribution, once the deal is closed, we will hold an equity interest that will not only strengthen Jet.AI’s book equity but will reinforce our position in the AI data center sector. Beyond our data center projects, our agreement with flyExclusive remains on track to close by the recently extended outside date of October 31, 2025.” 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. 949-574-3860Jet.AI@gateway-grp.com JET.AI, INC.CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) June 30, December 31, 2025 2024 Assets Current assets: Cash and cash equivalents $8,265,732 $5,872,627 Accounts receivable 112,079 132,230 Note receivable - related party 35,995 - Deferred offering costs 45,000 - Other current assets 199,706 357,751 Total current assets 8,658,512 6,362,608 Property and equipment, net 3,780 5,055 Intangible assets, net 86,745 86,745 Right-of-use lease asset 780,499 1,048,354 Investment in joint venture 100,000 100,000 Deposit on aircraft 4,050,000 2,400,000 Deposits and other assets 785,561 794,561 Total assets $14,465,097 $10,797,323 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $367,361 $280,450 Accrued liabilities 1,362,654 1,663,338 Deferred revenue 647,857 1,319,746 Operating lease liability 533,480 525,547 Total current liabilities 2,911,352 3,789,081 Lease liability, net of current portion 227,044 495,782 Total liabilities 3,138,396 4,284,863 Commitments and contingencies (Note 2 and 6) - - Stockholders' Equity Preferred Stock, 4,000,000 shares authorized, par value $0.0001, 0 issued and outstanding - - Series B Convertible Preferred Stock, 5,000 shares authorized, par value $0.0001, 989 and 250 issued and outstanding - - Common stock, 200,000,000 shares authorized, par value $0.0001, 3,261,701 and 1,629,861 issued and outstanding 326 162 Subscription receivable (6,724) (6,724)Additional paid-in capital 69,434,004 59,065,100 Accumulated deficit (58,100,905) (52,546,078)Total stockholders' equity 11,326,701 6,512,460 Total liabilities and stockholders' equity $14,465,097 $10,797,323 JET.AI, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED) Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Revenues $2,225,900 $3,083,884 $5,700,538 $6,932,482 Cost of revenues 2,336,200 3,500,880 5,926,352 7,473,834 Gross loss (110,300) (416,996) (225,814) (541,352) Operating Expenses: General and administrative (including stock-based compensation of $763,132, $1,201,728, $1,314,068, and $2,401,046, respectively) 2,246,980 2,663,753 4,899,407 5,210,047 Sales and marketing 81,601 102,470 376,009 549,070 Research and development 41,044 37,396 149,968 69,942 Total operating expenses 2,369,625 2,803,619 5,425,384 5,829,059 Operating loss (2,479,925) (3,220,615) (5,651,198) (6,370,411) Other (income) expense: Interest expense - - - 79,314 Other (income) expense (94,902) (59) (96,371) (120)Total other (income) expense (94,902) (59) (96,371) 79,194 Loss before provision for income taxes (2,385,023) (3,220,556) (5,554,827) (6,449,605) Provision for income taxes - - - - Net Loss $(2,385,023) $(3,220,556) $(5,554,827) $(6,449,605) Cumulative preferred stock dividends - 29,727 - 59,455 Net Loss to common stockholders $(2,385,023) $(3,250,283) $(5,554,827) $(6,509,060) Weighted average shares outstanding - basic and diluted 2,583,667 57,362 2,315,946 54,331 Net loss per share - basic and diluted $(0.92) $(56.66) $(2.40) $(119.80) JET.AI, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED) Six Months Ended June 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $(5,554,827) $(6,449,605)Adjustments to reconcile net loss to net cash used in operating activities: Amortization and depreciation 1,275 67,626 Amortization of debt discount - 80,761 Stock-based compensation 1,314,068 2,401,046 Non-cash operating lease costs 267,855 260,157 Changes in operating assets and liabilities: Accounts receivable 20,151 (439,436)Other current assets 158,045 117,302 Deferred offering costs (45,000) - Accounts payable 86,911 (141,764)Accrued liabilities (300,684) 331,915 Deferred revenue (671,889) (680,328)Operating lease liability (260,805) (253,107)Net cash used in operating activities (4,984,900) (4,705,433) CASH FLOWS FROM INVESTING ACTIVITIES: Advances under related party promissory note (35,995) - Purchase of intangible assets - (12,921)Deposit on aircraft (1,650,000) - Deposits and other assets 9,000 (100)Net cash used in investing activities (1,676,995) (13,021) CASH FLOWS FROM FINANCING ACTIVITIES: Repayments of notes payable - (371,250)Repayments of related party notes payable - (297,500)Offering costs (1,945,000) (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 Series B Preferred Stock - 1,500,025 Proceeds from sale of Common Stock - 1,727,279 Net cash provided by financing activities 9,055,000 3,146,028 Increase (decrease) in cash and cash equivalents 2,393,105 (1,572,426)Cash and cash equivalents, beginning of period 5,872,627 2,100,543 Cash and cash equivalents, end of period $8,265,732 $528,117 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 $146 $-

Jet.AI Reports Second Quarter 2025 Financial Results

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