Surf Air Mobility Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Surf Air Mobility Inc. has filed its 2023 10-K report, detailing financial activities and corporate structure.</b>

AI Summary

SURF AIR MOBILITY INC. (SRFM) filed a Annual Report (10-K) with the SEC on March 29, 2024. Surf Air Mobility Inc. filed its annual report for the fiscal year ending December 31, 2023. The company is incorporated in Delaware and its fiscal year ends on December 31st. Its principal business address is 12111 S. Crenshaw Blvd., Hawthorne, CA 90250. The filing includes information on various financial instruments and agreements, such as preferred shares warrants, convertible notes, and share purchase agreements. Key dates related to financial reporting and events are detailed, including subsequent events up to March 2024.

Why It Matters

For investors and stakeholders tracking SURF AIR MOBILITY INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Surf Air Mobility's financial health, operational structure, and forward-looking statements for the fiscal year 2023. Investors and stakeholders can use this report to assess the company's performance, understand its financial commitments, and evaluate potential risks and opportunities.

Risk Assessment

Risk Level: medium — SURF AIR MOBILITY INC. shows moderate risk based on this filing. The company's financial disclosures are extensive, indicating complex financial instruments and potential liabilities that require careful analysis, suggesting a medium level of risk.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand the company's financial position and future outlook.

Key Numbers

• 20231231 — Fiscal Year End (Fiscal year end date)
• 145 — Public Document Count (Number of documents in the filing)
• 001-41759 — SEC File Number (SEC file number for the company)
• 22.4:1 — Debt-to-Equity Ratio (Implied from context, requires further verification from full filing)
• 0.0446 — Useful Life Percentage (Related to asset useful life)

Key Players & Entities

• SURF AIR MOBILITY INC. (company) — Filer name
• SRFM (company) — Ticker symbol
• 10-K (filing) — Form type
• 20231231 (date) — Period of report
• 20240329 (date) — Filing date
• 12111 S. CRENSHAW BLVD. (address) — Business street address
• HAWTHORNE (location) — Business city
• CA (location) — Business state

FAQ

Risk Factors

• Operating Lease Liabilities [medium — financial]: The company has significant operating lease liabilities, with current and non-current portions detailed, impacting its financial obligations.
• Preferred Shares Warrant Liability [medium — financial]: The company recognizes a liability related to preferred shares warrants, which carries valuation and potential dilution implications.
• Convertible Securities [medium — financial]: Various convertible notes and securities are noted, indicating potential future equity dilution and complex financial structures.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-03-29: Filing Date — Date the 10-K was officially filed with the SEC.
• 2024-01-01: Subsequent Event Start Date — Beginning of the period for subsequent events disclosed.

Key Financial Figures

• $0.0001 — nge on which registered Common stock, $0.0001 par value per share SRFM New York S
• $3.15 — 27, 2023, based on the closing price of $3.15 per share of the Registrant's common st
• $75 — egional air-mobility market could reach $75-115B by 2035 and require 18,000-36,000
• $450 million — t ("Master Agreement") to finance up to $450 million to fund the planned growth of our fleet
• $75 billion — y 100 - 500 miles will be approximately $75 billion to $115 billion worldwide and, based on
• $115 billion — es will be approximately $75 billion to $115 billion worldwide and, based on management's es

Filing Documents

• srfm-20231231.htm (10-K) — 4001KB
• srfm-ex3_1.htm (EX-3.1) — 77KB
• srfm-ex3_2.htm (EX-3.2) — 306KB
• srfm-ex4_1.htm (EX-4.1) — 46KB
• srfm-ex10_40.htm (EX-10.40) — 24KB
• srfm-ex23_1.htm (EX-23.1) — 3KB
• srfm-ex31_1.htm (EX-31.1) — 15KB
• srfm-ex31_2.htm (EX-31.2) — 15KB
• srfm-ex32_1.htm (EX-32.1) — 9KB
• srfm-ex32_2.htm (EX-32.2) — 8KB
• srfm-ex97_1.htm (EX-97.1) — 17KB
• img96558149_0.jpg (GRAPHIC) — 123KB
• img96558149_1.jpg (GRAPHIC) — 113KB
• img96558149_2.jpg (GRAPHIC) — 32KB
• 0000950170-24-038767.txt (&nbsp;) — 20472KB
• srfm-20231231.xsd (EX-101.SCH) — 2983KB
• srfm-20231231_htm.xml (XML) — 3716KB

Business

Business 8 Item 1A.

Risk Factors

Risk Factors 20 Item 1B. Unresolved Staff Comments 54 Item 1C. Cybersecurity 54 Item 2.

Properties

Properties 56 Item 3.

Legal Proceedings

Legal Proceedings 56 Item 4. Mine Safety Disclosures 56 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 52 Item 6. [Reserved] 52 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 53 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 66 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 66 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 114 Item 9A.

Controls and Procedures

Controls and Procedures 114 Item 9B. Other Information 116 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 117 PART III Item 10. Directors, Executive Officers and Corporate Governance 118 Item 11.

Executive Compensation

Executive Compensation 118 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 118 Item 13. Certain Relationships and Related Transactions, and Director Independence 118 Item 14. Principal Accountant Fees and Services 118 PART IV Item 15. Exhibits, Financial Statement Schedules 118 Item 16. Form 10-K Summary 123

Signatures

Signatures 124 3 SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION This Annual Report on Form 10-K contains "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"), as amended. All statements other than statements of historical facts contained in this Annual Report on Form 10-K may be forward-looking statements. Forward-looking statements may be identified by the use of words such as "estimate", "plan", "project", "forecast", "intend", "will", "expect", "anticipate", "believe", "seek", "target", "designed to" or other similar expressions that predict or indicate future events or trends, although the absence of these words does not mean that a statement is not forward-looking. The Company cautions readers of this Annual Report on Form 10-K that these forward-looking statements are subject to risks and uncertainties, most of which are difficult to predict and many of which are beyond the Company's control, that could cause the actual results to differ materially from the expected results. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of financial and performance metrics, projections of market opportunity and market share, potential benefits and the commercial attractiveness to its customers of the Company's products and services and the dependence on third-party partnerships in the development of fully-electric and hybrid-electric powertrains, and the potential success of the Company's marketing and expansion strategies. These statements are based on various assumptions, whether or not identified in this Annual Report on Form 10-K, and on the current expectations of the Company's management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended

: BUSINESS

ITEM 1: BUSINESS Overview Surf Air Mobility Inc. (the "Company", "us", "we" or "our") is a regional air mobility platform that aims to sustainably connect communities. We intend to accelerate the adoption of green flying by developing, together with our commercial partners, fully-electric and hybrid-electric powertrain technology to upgrade existing fleets, and by creating a financing and services infrastructure to enable this transition on an industry-wide level. We believe bringing electrified aircraft to market at scale will substantially reduce the cost and environmental impact of regional flying, and that such reductions are achievable by the end of the decade. Additionally, we believe operating as a publicly traded company and having efficient access to growth capital will allow us to accelerate the implementation of our strategic plan. The Company was incorporated in 2021 and became the ultimate parent of both Surf Air Global Limited ("Surf Air Global") and Southern Airways Corporation ("Southern") in July of 2023 following the Company's public listing on the New York Stock Exchange ("NYSE"). For 2023, which includes the full year of operations of Surf and the operations of Southern from the July 27, 2023 acquisition date, the Company's combined network served approximately 176,131 passengers across 41 cities with approximately 31,476 departures. We expect the combination of our legacy networks will provide the basis for our expanded, nationwide regional air mobility platform. Our predecessor company, Surf Air Global, was formed in 2016 and prior to its reorganization into Surf Air Mobility, aimed to expand the category of regional air travel, connecting underutilized regional airports and private terminals to create a "shared private" customer experience and a high frequency "commercial-like" air service, using small turboprop aircraft. Surf Air Global provided both scheduled routes and on-demand charter flights operated by third parties that operate

View Full Filing

View this 10-K filing on SEC EDGAR