Surf Air Mobility Inc. reported significant financial developments in its latest 10-Q filing for the third quarter of 2024. The company achieved revenues of $28.4 million for Q3 2024, marking a 29% increase from $22.0 million in Q3 2023. For the nine months ended September 30, 2024, total revenue reached $91.4 million, a substantial 171% increase compared to $33.7 million in the same period last year. This growth was primarily driven by the acquisition of Southern Airways Corporation, which contributed approximately $51.9 million in scheduled revenue.

Despite the revenue growth, Surf Air Mobility reported a net loss of $12.2 million for Q3 2024, significantly improved from a net loss of $74.6 million in Q3 2023. For the nine-month period, the net loss was $76.2 million, down from $139.7 million in the prior year. The operating loss for Q3 2024 was $8.6 million, an 86% improvement from the previous year's loss of $63.0 million.

Total operating expenses for Q3 2024 were $37.0 million, a notable decrease of 56% from $85.0 million in Q3 2023. This reduction was largely attributed to a $37.9 million decrease in stock-based compensation and other transaction-related expenses. However, technology and development expenses surged by 98% to $5.6 million, driven by costs associated with Textron data licenses.

As of September 30, 2024, Surf Air Mobility's total assets decreased to $97.9 million from $111.0 million at the end of 2023, while total liabilities rose to $233.5 million from $188.5 million. The shareholders' deficit increased to $(135.6 million) from $(77.5 million) at the end of 2023, reflecting ongoing financial challenges.

The company has been actively managing its capital structure, including a recent $44.5 million credit agreement and a $50 million secured convertible promissory note issued to LamVen. Additionally, Surf Air Mobility is addressing a listing requirement violation with the NYSE, which could impact its capital-raising efforts.

Operationally, the company is focusing on enhancing profitability through cost management and technological advancements, including a joint venture with Palantir Technologies to develop an AI-powered software platform for air mobility. Despite these efforts, there remains substantial doubt about the company's ability to continue as a going concern due to uncertainties in financing and operational plans.

About SURF AIR MOBILITY INC.

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