Surf Air Mobility Files Q2 2024 10-Q

Ticker: SRFM · Form: 10-Q · Filed: Aug 14, 2024 · CIK: 1936224

Sentiment: neutral

Topics: 10-Q, financials, agreements

TL;DR

Surf Air Mobility's Q2 10-Q is in. Check out preferred stock and GEM deals.

AI Summary

Surf Air Mobility Inc. filed its 10-Q for the period ending June 30, 2024. The company reported on its financial condition, including details on preferred stock and term notes payable to related parties. Key agreements mentioned include the GEM Purchase Agreement and a Share Subscription Facility with GEM Global Yield LLC.

Why It Matters

This filing provides investors with an update on Surf Air Mobility's financial health and ongoing business arrangements, crucial for understanding the company's operational status.

Risk Assessment

Risk Level: medium — The filing details financial instruments and agreements that carry inherent financial risks for the company.

Key Numbers

Key Players & Entities

FAQ

What is the reported financial status of Surf Air Mobility as of June 30, 2024?

The 10-Q filing for the period ending June 30, 2024, provides details on the company's financial condition, including information on preferred stock and term notes payable to related parties.

What significant agreements are mentioned in the filing?

The filing mentions the GEM Purchase Agreement and a Share Subscription Facility with GEM Global Yield LLC, among other financial arrangements.

What is the conversion price for the preferred stock?

The preferred stock has a conversion price of $0.0446.

What is the fiscal year end for Surf Air Mobility?

Surf Air Mobility's fiscal year ends on December 31.

What is the business address of Surf Air Mobility?

The business address is 12111 S. CRENSHAW BLVD., HAWTHORNE, CA 90250.

Filing Stats: 4,496 words · 18 min read · ~15 pages · Grade level 19.5 · Accepted 2024-08-14 16:55:11

Key Financial Figures

Filing Documents

Financial Statements

Financial Statements 1 Unaudited Condensed Consolidated Balance Sheets 1 Unaudited Condensed Consolidated Statements of Operations 2 Unaudited Condensed Consolidated Statement of Changes in Redeemable Convertible Preferred Shares and Shareholders' Deficit 3 Unaudited Condensed Consolidated Statements of Cash Flows 5 Notes to Unaudited Condensed Consolidated Financial Statements 6 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 30 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 40 Item 4.

Controls and Procedures

Controls and Procedures 40 PART II. OTHER INFORMATION 43 Item 1.

Legal Proceedings

Legal Proceedings 43 Item 1A.

Risk Factors

Risk Factors 43 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 44 Item 3. Defaults Upon Senior Securities 44 Item 4. Mine Safety Disclosures 44 Item 5. Other Information 44 Item 6. Exhibits 45

—FINANCIA L INFORMATION

PART I—FINANCIA L INFORMATION

Financi al Statements

Item 1. Financi al Statements. Surf Air Mobility Inc. Unaudited Condensed Con solidated Balance Sheets June 30, 2024 and December 31, 2023 (in thousands, except share and per share data) (Unaudited) June 30, 2024 December 31, 2023 Assets: Current assets: Cash $ 1,460 $ 1,720 Accounts receivable, net 4,487 4,965 Prepaid expenses and other current assets 9,928 11,051 Total current assets 15,875 17,736 Restricted cash 614 711 Property and equipment, net 47,041 45,991 Intangible assets, net 24,890 26,663 Operating lease right-of-use assets 10,523 12,818 Finance lease right-of-use assets 1,273 1,343 Other assets 5,331 5,727 Total assets $ 105,547 $ 110,989 Liabilities and Shareholders' Deficit: Current liabilities: Accounts payable $ 25,983 $ 18,854 Accrued expenses and other current liabilities 78,897 59,582 Deferred revenue 17,072 19,011 Current maturities of long-term debt 4,922 5,177 Operating lease liabilities, current 4,322 4,104 Finance lease liabilities, current 256 215 SAFE notes at fair value, current 6 25 Convertible notes at fair value, current 8,014 7,715 Due to related parties, current 47,371 25,431 Total current liabilities 186,843 140,114 Long-term debt, net of current maturities 18,346 20,617 Operating lease liabilities, long term 3,894 5,507 Finance lease liabilities, long term 1,078 1,137 Due to related parties, long term 987 1,673 Other long-term liabilities 22,489 19,426 Total liabilities $ 233,637 $ 188,474 Commitments and contingencies (Note 12) Shareholders' deficit: Common shares, $ 0.0001 par value; 800,000,000 shares authorized as of both June 30, 2024 and December 31, 2023; 87,029,425 shares issued and outstanding as of June 30, 2024 and 76,150,437 shares issued and outstanding as of December 31, 2023 $ 8 $ 8 Additional paid-in cap

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