Blade Air Mobility Inc

Previous wording

•risk and impact of any litigation we may subject to;

Current wording

•risk and impact of any litigation we may be subject to;

Previous wording

Blade Air Mobility, Inc. (“Blade” or the “Company”) provides air transportation and logistics for hospitals across the United States, where it is one of the largest transporters of human organs for transplant, and for passengers, with helicopter and fixed wing services primarily in the Northeast United States, Southern Europe and Western Canada. Based in New York City, Blade's asset-light model, coupled with its exclusive passenger terminal infrastructure and proprietary technologies, is designed to facilitate a seamless transition from helicopters and fixed-wing aircraft to Electric Vertical Aircraft (“EVA” or “eVTOL”), enabling lower cost air mobility that is both quiet and emission-free.

Current wording

Blade Air Mobility, Inc. (“Blade” or the “Company”) provides air transportation and logistics for hospitals across the United States, where it is one of the largest transporters of human organs for transplant, and for passengers, with helicopter and fixed wing services primarily in the Northeast United States and Southern Europe. Based in New York City, Blade's asset-light model, coupled with its exclusive passenger terminal infrastructure and proprietary technologies, is designed to facilitate a seamless transition from helicopters and fixed-wing aircraft to Electric Vertical Aircraft (“EVA” or “eVTOL”), enabling lower cost air mobility that is both quiet and emission-free.

Previous wording

•Short Distance – Consisting primarily of helicopter and amphibious seaplane flights in the United States, Canada and Europe between 10 and 100 miles in distance. Flights are available for purchase both by-the-seat and on a full aircraft charter basis.

Current wording

•Short Distance – Consisting primarily of helicopter and amphibious seaplane flights in the United States and Europe between 10 and 100 miles in distance. Flights are available for purchase both by-the-seat and on a full aircraft charter basis.

Previous wording

•Jet and Other – Consists principally of revenues from non-medical jet charter and by-the-seat jet flights between New York and South Florida, revenue from brand partners for exposure to Blade fliers and certain ground transportation services.

Current wording

•Jet and Other – Consists principally of revenues from non-medical jet charter and by-the-seat jet flights between New York and South Florida (discontinued in November 2023), revenue from brand partners for exposure to Blade fliers and certain ground transportation services.

Previous wording

Ability to attract and retain customers in our MediMobility Organ Transport and Jet and Other product line

Current wording

Ability to attract and retain customers in our MediMobility Organ Transport and Jet and Other product lines

Previous wording

Cost of revenue consists of flight costs paid to operators of aircraft and cars, landing fees, depreciation for cars, ROU asset amortization and internal costs incurred in generating organ ground transportation revenue using the Company's owned cars.

Current wording

Cost of revenue consists of flight costs paid to operators of aircraft and vehicles, landing fees, depreciation of aircraft and vehicles, ROU asset amortization, internal costs incurred in generating organ ground transportation revenue using the Company's owned vehicles and costs of operating our owned aircraft including fuel, management fees paid to the operator, maintenance costs and pilot salaries.

Previous wording

General and administrative expenses principally include staff costs including stock-based compensation, depreciation and amortization, impairment of intangible assets, directors and officers insurance costs, professional fees, credit card processing fees and establishment costs.

Current wording

General and administrative expenses principally include staff costs including stock-based compensation, depreciation and amortization, impairment of intangible assets, directors and officers insurance costs, professional fees, credit card processing fees and establishment costs. Depreciation of revenue-generating assets such as aircraft and vehicles are included in Cost of revenue.

Previous wording

Jet and Other revenue decreased by $2.4 million or 30% from $8.1 million in 2023 to $5.7 million in 2024. The decrease was driven primarily by the discontinuation of our seasonal by-the-seat jet service between New York and South Florida, resulting in a $2.9 million decrease, partially offset by growth in Jet charters of $0.3 million and growth in brand partnership revenues of $0.2 million.

Current wording

Jet and Other revenue decreased by $(1.1) million or (7)% from $15.5 million in 2023 to $14.4 million in 2024. The decline in Jet and Other was driven by the discontinuation of our seasonal by-the-seat jet service between New York and South Florida, resulting in a $3.9 million decrease. This was offset by growth in Jet charters of $2.3 million and increased brand partnership revenues of $0.3 million.

Previous wording

MediMobility Organ Transport revenue increased by $9.3 million or 35% from $26.8 million in 2023 to $36.0 million in 2024. The growth was driven primarily by the addition of new hospital clients resulting in a $3.8 million increase, higher activity from existing clients, resulting in a $2.1 million increase, as hospitals accepted more organs for transplant involving longer travel distances, increasing average flight hours per trip, higher revenue per flight hour resulting in a $1.0 million increase and an increase in ground revenue for $2.0 million (from both existing and new clients).

Current wording

MediMobility Organ Transport revenue increased by $13.2 million or 22% from $61.2 million in 2023 to $74.4 million in 2024. The growth was driven primarily by the addition of new hospital clients, including for our TOPS organ placement services, resulting in a $4.8 million increase, higher activity from existing clients, resulting in a $1.9 million increase, higher revenue per trip, resulting in a $2.8 million increase, and an increase in ground revenue for $3.2 million (from both existing and new clients). Excluding the impact of one temporary customer we supported only in the 2023 period, revenue would have grown 30% versus the 2023 period driven by growth in flight hours and average price per trip across our existing customer base.

Previous wording

For the three months ended March 31, 2024 and 2023, cost of revenue increased by $3.3 million or 9%, from $38.1 million during 2023 to $41.4 million in 2024 driven by increased flight volume and an increase in the average Medical flight distance.

Current wording

For the three months ended June 30, 2024 and 2023, cost of revenue increased by $1.0 million, or 2%, from $50.6 million during 2023 to $51.6 million in 2024 driven by increased flight volume.

Previous wording

Cost of revenue as a percentage of revenues decreased by 4 percentage points from 84% to 80%, attributable primarily to increased use of dedicated aircraft (which typically have lower costs per flight hour and enhanced economies of scale) and increased revenue per flight hour in our Medical business, these improvements were partially offset by higher cost of revenue as a percent of revenue in Europe and Canada compared to the same period last year.

Current wording

Cost of revenue as a percentage of revenues decreased by 6 percentage points from 83% in 2023 to 78% in 2024, attributable primarily to the use of owned aircraft starting April 2024 for our Medical business, increased use of dedicated aircraft in the Medical business (which typically have lower costs per flight hour and enhanced economies of scale) and increased revenue per flight hour in our Medical business, improved pricing and utilization in our New York airport transfer product, and higher profitability in jet charter flights compared to the same period last year. These improvements were partially offset by higher cost of revenue as a percent of revenue in Europe compared to the same period last year.

Previous wording

For the three months ended March 31, 2024 and 2023, software development costs decreased $0.5 million, or 40%, from $1.1 million during 2023 to $0.7 million in 2024, attributable primarily to a decrease in staff and contractors costs and a decrease of $0.2 million in stock-based compensation costs (due to a forfeiture).

Current wording

For the six months ended June 30, 2024 and 2023, software development costs decreased by $(0.9) million, or (36)%, from $2.6 million during 2023 to $1.6 million during 2024, attributable primarily to software capitalization of development costs (net of amortization) for a $0.6 million decrease, a decrease of $0.4 million in stock-based compensation costs (due to forfeiture RSUs in the current year period). This was partially offset by an an increase in software tools directly linked with the app for a $0.2 million increase.

Previous wording

For the three months ended March 31, 2024 and 2023, general and administrative expense increased by $1.0 million, or 6%, from $16.3 million in 2023 to $17.2 million in 2024.

Current wording

For the three months ended June 30, 2024 and 2023, general and administrative expense increased by $6.7 million, or 37%, from $18.4 million during 2023 to $25.1 million in 2024.

Previous wording

For the three months ended March 31, 2024 and 2023, selling and marketing expense decreased by $0.5 million, or 18%, from $2.6 million in 2023 to $2.1 million in 2024. The decrease is attributable primarily to a $1.0 million decrease in marketing expenses, primarily driven by the discontinuation of seasonal jet service between New York and South Florida. This decrease was partially offset by a $0.5 million increase in staff costs, inclusive of stock-based compensation and sales commissions.

Current wording

For the six months ended June 30, 2024 and 2023, selling and marketing expense decreased by $(0.8) million, or (15)%, from $5.3 million during 2023 to $4.5 million in 2024. The decrease is attributable primarily to a $1.0 million decrease in marketing expenses, primarily driven by the discontinuation of our seasonal by-the-seat jet service between New York and South Florida in November 2023 and a more disciplined media spend in the winter months and $0.4 million decrease in cash commissions; those reductions were partially offset by a $0.5 million increase in stock-based compensation (due to the PSUs granted in the first quarter of 2024).

Previous wording

The following table presents our segment results for the periods indicated (in thousands, except percentages):

Current wording

The following table presents our segment results for the periods indicated:

Previous wording

For the three months ended March 31, 2024 and 2023, Passenger revenue decreased by $3.0 million or 16%, from $18.5 million in 2023 to $15.5 million in 2024. The decrease was attributable to a $0.6 million decrease in Short Distance and a $2.4 million decrease in Jet and Other. Refer to the disaggregated revenue discussion above under “—Comparison of the Three Months Ended March 31, 2024 and 2023—Revenue” for more details.

Current wording

For the three months ended June 30, 2024 and 2023, Passenger revenue increased by $3.0 million or 11%, from $26.6 million in 2023 to $29.6 million in 2024. The increase was attributable to a $1.7 million increase in Short Distance and a $1.3 million increase in Jet and Other. Refer to the disaggregated revenue discussion above under “—Comparison of the Three Months Ended June 30, 2024 and 2023—Revenue” for more details.

Previous wording

Passenger Adjusted EBITDA improved by $0.4 million or 13% for the three months ended March 31, 2024 from $(3.1) million in the same period of 2023 to $(2.7) million in 2024. The improvement is primarily attributable to a $1.0 million decrease in marketing expenses and a $0.2 million decrease in personnel costs. These were partially offset by higher effective cost of revenue per flight attributable to difficult weather, which drove high cancellation rates compared to the prior year period for a $0.7 million impact.

Current wording

Passenger Adjusted EBITDA improved by $3.3 million or 64% for the six months ended June 30, 2024 from $(5.1) million in the same period of 2023 to $(1.9) million in 2024. The improvement is primarily attributable to a lower effective cost of revenue per flight attributable to improved efficiencies, primarily for Blade Airport and Jet Charter, compared to the prior year period for a $2.0 million impact. Further improvements are attributable to a $1.1 million decrease in marketing expenses and a $0.3 million decrease in personnel costs.

Previous wording

For the three months ended March 31, 2024 and 2023, Medical revenue increased by $9.3 million or 35%, from $26.8 million in 2023 to $36.0 million in 2024. Refer to the disaggregated revenue discussion above under “—Comparison of the Three Months Ended March 31, 2024 and 2023—Revenue” for more details.

Current wording

For the three months ended June 30, 2024 and 2023, Medical revenue increased by $3.9 million or 11%, from $34.4 million in 2023 to $38.3 million in 2024. Refer to the disaggregated revenue discussion above under “——Comparison of the Three Months Ended June 30, 2024 and 2023—Revenue” for more details.

Previous wording

Medical Adjusted EBITDA increased by $2.5 million or 135%, for the three months ended March 31, 2024 from $1.9 million in the same period of 2023 to $4.4 million in 2024. $3.7 million of the increase is attributable to: (i) larger volume for both air and ground missions, from new and existing clients (ii) increased average air trip distance (iii) lower effective cost of revenue per flight due to higher utilization of dedicated aircraft, which typically have lower cost per flight hour. Those increases were partially offset by a $1.2 million increase in fixed costs, primarily staff costs in order to support the higher activity.

Current wording

Medical Adjusted EBITDA increased by $2.5 million or 83%, for the three months ended June 30, 2024 from $3.0 million in the same period of 2023 to $5.5 million in 2024. $3.3 million of the increase is attributable to: (i) larger volume for both air and ground missions, from new and existing clients, partially offset by the loss of a temporary customer we supported in the 2023 period, (ii) higher revenue per air trip, (iii) lower effective cost of revenue per flight due to the use of owned aircraft (starting April 2024) and higher utilization of dedicated aircraft, which typically have lower cost per flight hour. Those increases were partially offset by a $1.0 million increase in fixed costs, primarily staff costs in order to support the higher activity.

Previous wording

Adjusted EBITDA improved by $4.2 million for the three months ended March 31, 2024 from $(7.7) million in the same period of 2023 to $(3.5) million in 2024. The improvement is primarily attributable to improvements in both Passenger and Medical Adjusted EBITDA (refer to the discussion above), coupled with a $1.2 million decrease in Adjusted unallocated corporate costs and software development, attributable primarily to $0.6 million decrease in professional services and insurance and $0.5 million decrease in staff costs;

Current wording

Adjusted EBITDA improved by $9.6 million for the six months ended June 30, 2024 from $(12.2) million in the same period of 2023 to $(2.6) million in 2024. The improvement is primarily attributable to improvements in both Passenger and Medical Adjusted EBITDA (refer to the discussion above), coupled with a $1.4 million decrease in Adjusted unallocated corporate costs and software development, attributable primarily to a $0.6 million decrease in staff costs, $0.4 million decrease in professional services and insurance, and a $0.2 million decrease in local franchise taxes.

Previous wording

Flight Profit increased by $3.0 million or 42% for the three months ended March 31, 2024 from $7.2 million in the same period of 2023 to $10.1 million in 2024. The increase was driven by (i) higher volumes of Medical air and ground missions, from new and existing clients; (ii) increased average air trip distance for Medical flights; and (iii) a lower effective cost of revenue per flight for Medical flights, due to higher utilization of dedicated aircraft, which typically have lower cost per flight hour. This was partially offset by higher effective flight cost per hour in Europe due to difficult weather, which drove high cancellation rates compared to the prior year period, and lower load factor in Canada’s by-the-seat flights compared to the prior year period.

Current wording

Flight Profit increased by $9.0 million or 51% for the six months ended June 30, 2024 from $17.5 million in the same period of 2023 to $26.5 million in 2024. The increase was driven by (i) higher volumes of Medical air and ground missions, from new and existing clients; (ii) increased average air trip distance for Medical flights; and (iii) a lower effective cost of revenue per flight for Medical flights, due to higher utilization of dedicated aircraft, which typically have lower cost per flight hour; and (iv) improved pricing and efficiencies in our New York airport transfer product and jet charter compared to the prior year period. This was partially offset by higher effective flight cost per hour in Europe due to difficult weather, which drove high cancellation rates compared to the prior year period, and lower load factor in Canada’s by-the-seat flights compared to the prior year period.

Previous wording

Flight Margin increased from 15.8% to 19.7%, primarily attributable to increased use of dedicated aircraft (which are more cost efficient) for Medical flights and higher revenue per Medical flight hour. This was partially offset by higher effective cost of revenue per flight in Europe due to difficult weather (which drove higher cancellation rates) and lower load factor in Canada’s by-the-seat flights.

Current wording

Flight Margin increased from 16.5% in the six months ended June 30, 2024 to 22.2% in the same period of 2023, primarily attributable to increased use of owned jets and dedicated aircraft (which are more cost efficient) for Medical flights and higher revenue per Medical flight hour as well as improved pricing and efficiencies in our New York airport transfer product and jet charter compared to the prior year period. This was partially offset by higher effective cost of revenue per flight in Europe due to difficult weather (which drove higher cancellation rates) and lower load factor in Canada’s by-the-seat flights.

Previous wording

Adjusted EBITDA is defined as net loss adjusted to exclude (1) depreciation and amortization, (2) stock-based compensation, (3) change in fair value of warrant liabilities, (4) interest income and expense, (5) income tax, (6) realized gains and losses on short-term investments, and (7) certain other non-recurring items (shown below) that management does not believe are indicative of ongoing Company operating performance and would impact the comparability of results between periods.

Current wording

Adjusted EBITDA is defined as net loss adjusted to exclude (1) depreciation and amortization, (2) stock-based compensation, (3) change in fair value of warrant liabilities, (4) interest income and expense, (5) income tax, (6) realized gains and losses on short-term investments, (7) impairment of intangible assets and (8) certain other non-recurring items (shown below) that management does not believe are indicative of ongoing Company operating performance and would impact the comparability of results between periods.

Previous wording

(1) For the three months ended March 31, 2024, represents legal advocacy fees related to the Drulias lawsuit (see “— Legal and Environmental” within Note 9) that we do not consider representative of legal and regulatory advocacy costs that we will incur from time to time in the ordinary course of our business.

Current wording

(1) For the three and six months ended June 30, 2024, represents legal advocacy fees related to the Drulias lawsuit (see “— Legal and Environmental” within Note 9) that we do not consider representative of legal and regulatory advocacy costs that we will incur from time to time in the ordinary course of our business.

Previous wording

(2) For the three months ended March 31, 2023, represents certain legal and regulatory advocacy fees for the proposed restrictions at East Hampton Airport and the potential operational restrictions on large jet aircraft at Westchester Airport, that we do not consider representative of legal and regulatory advocacy costs that we will incur from time to time in the ordinary course of our business. It is worth noting that we do not anticipate incurring any further legal fees related to the Westchester litigation.

Current wording

(2) For the six months ended June 30, 2023, represents certain legal and regulatory advocacy fees for certain proposed restrictions at East Hampton Airport and the potential operational restrictions on large jet aircraft at Westchester Airport, that we do not consider representative of legal and regulatory advocacy costs that we will incur from time to time in the ordinary course of our business. It is worth noting that we do not anticipate incurring any further legal fees related to the Westchester litigation.

Previous wording

(3) Represents a credit recorded in connection with the settlement of the equity-based portion of Trinity's contingent consideration that was paid in the first quarter of 2023 in respect of 2022 results. 2023 was the last year subject to an earn-out payment.

Current wording

(3) Trinity’s contingent consideration, 2023 was the last year subject to an earn-out payment.

Previous wording

Flight Profit and Flight Margin are measures that management uses to assess the performance of the business. Blade believes that Flight Profit and Flight Margin provide a useful measure of the profitability of the Company's flight and ground operations, as they focus solely on the direct variable costs associated with those operations.

Current wording

Flight Profit is calculated as revenue less cost of revenue. Flight Margin is calculated as Flight Profit divided by revenue. Flight Profit and Flight Margin are measures that management uses to assess the performance of the business. Blade believes that Flight Profit and Flight Margin provide a useful measure of the profitability of the Company's flight and ground operations, as they focus solely on the non discretionary direct costs associated with those operations such as third party variable costs and costs of owning and operating Blade’s owned aircraft.

Previous wording

Gross Profit, which is the most directly comparable GAAP financial measure to Flight Profit, is calculated as revenue less cost of revenue and other costs directly related to revenue generating transactions which primarily includes credit card processing fees, depreciation and amortization, staff costs including stock-based compensation, commercial costs and establishment costs. The reconciliation of gross profit to Flight Profit can be found in the table below.

Current wording

Gross Profit, which is the most directly comparable GAAP financial measure to Flight Profit, is calculated as revenue less cost of revenue and other costs directly related to revenue generating transactions which primarily includes credit card processing fees, depreciation and amortization, staff costs including stock-based compensation, commercial costs and establishment costs. Gross Margin is calculated as Gross Profit divided by revenue.The reconciliation of gross profit to Flight Profit can be found in the table below.

Previous wording

(1) Cost of revenue consists of flight costs paid to operators of aircraft and cars, landing fees, depreciation for cars, ROU asset amortization and internal costs incurred in generating organ ground transportation revenue using the Company's owned cars.

Current wording

(1) Cost of revenue consists of flight costs paid to operators of aircraft and vehicles, landing fees, depreciation of aircraft and vehicles, ROU asset amortization, internal costs incurred in generating organ ground transportation revenue using the Company's owned vehicles and costs of operating our owned aircraft including fuel, management fees paid to the operator, maintenance costs and pilot salaries.

Previous wording

As of March 31, 2024 and December 31, 2023, we had total liquidity of $151.0 million and $166.1 million, respectively, consisting of cash and cash equivalents of $36.8 million and $27.9 million, respectively, and short-term investments of $114.2 million and $138.3 million, respectively. In addition, as of March 31, 2024 and December 31, 2023, we hadrestricted cash of $1.3 million and $1.1 million, respectively. As of March 31, 2024, $114.2 million of short-term investments consisted of securities that are traded in highly liquid markets.

Current wording

As of June 30, 2024 and December 31, 2023, we had total liquidity of $142.0 million and $166.1 million, respectively, consisting of cash and cash equivalents of $26.3 million and $27.9 million, respectively, and short-term investments of $115.6 million and $138.3 million, respectively. In addition, as of June 30, 2024 and December 31, 2023, we hadrestricted cash of $2.1 million and $1.1 million, respectively. As of June 30, 2024, $115.6 million of short-term investments consisted of securities that are traded in highly liquid markets.

Previous wording

With $151.0 million of total liquid funds as of March 31, 2024, we anticipate that we have sufficient funds to meet our current operational needs for at least the next 12 months from the date of filing this Quarterly Report.

Current wording

With $142.0 million of total liquid funds as of June 30, 2024, we anticipate that we have sufficient funds to meet our current operational needs for at least the next 12 months from the date of filing this Quarterly Report.

Previous wording

As of March 31, 2024, the Company had net working capital of $170.8 million, zero debt, cash and cash equivalents of $36.8 million and short-term investments of $114.2 million. The Company had net losses of $4.2 million and $10.2 million for the three months ended March 31, 2024 and 2023, respectively.

Current wording

As of June 30, 2024, the Company had net working capital of $152.6 million, zero debt, cash and cash equivalents of $26.3 million and short-term investments of $115.6 million. The Company had net losses of $15.6 million and $22.4 million for the six months ended June 30, 2024 and 2023, respectively.

Previous wording

In the course of our business, we have certain contractual relationships with third-party aircraft operators pursuant to which we may be contingently required to make payments in the future. As of March 31, 2024, we had commitments to purchase flights from various aircraft operators with aggregate minimum flight purchase guarantees of $16.4 million and $22.5 million for the years ending December 31, 2024 and 2025, respectively, $10.2 million and $16.1 million, respectively, of which may be cancelled by us immediately if a government authority enacts travel restrictions and $1.9 million and $0.0 million, respectively, of which could be terminated by Blade for convenience upon 30 or 60 days’ notice with the annual minimum guarantee being pro-rated as of the termination date. See “—Capacity Purchase Agreements” within Note 9 to the consolidated financial statements for additional information and for information about future periods. Additionally, the Company has operating lease obligations related to real estate and vehicles with expected annual minimum lease payments of $0.7 million and $0.9 million for the years ending December 31, 2024 and 2025, respectively. See Note 3 “Right-of-Use Asset and Operating Lease Liability” to the unaudited interim condensed consolidated financial statements for additional information and for information about future periods.

Current wording

In the course of our business, we have certain contractual relationships with third-party aircraft operators pursuant to which we may be contingently required to make payments in the future. As of June 30, 2024, we had commitments to purchase flights from various aircraft operators with aggregate minimum flight purchase guarantees of $8.4 million and $13.8 million for the years ending December 31, 2024 and 2025, respectively, $3.9 million and $7.5 million, respectively, of which may be cancelled by us immediately if a government authority enacts travel restrictions and $0.8 million and $1.3 million, respectively, of which could be terminated by Blade for convenience upon 30 or 60 days’ notice with the annual minimum guarantee being pro-rated as of the termination date. See “—Capacity Purchase Agreements” (“CPAs”) within Note 9 to the unaudited interim condensed consolidated financial statements for additional information and for information about future periods. Additionally, the Company has operating lease obligations related to real estate and vehicles with expected annual minimum lease payments of $1.1 million and $2.1 million for the years ending December 31, 2024 and 2025, respectively. See Note 3 “Right-of-Use Asset and Operating Lease Liability” to the unaudited interim condensed consolidated financial statements for additional information and for information about future periods.

Previous wording

We have non-cancellable commitments which primarily relate to cloud services and other items in the ordinary course of business. The amounts are determined based on the non-cancellable quantities to which we are contractually obligated. In December 2023, the Company entered into a technology service agreement with a vendor for cloud computing services where we are committed to spend$0.3 million and $1.1 millionfor the years ending December 31, 2024 and 2025, respectively.

Current wording

We have non-cancellable commitments which primarily relate to cloud services and other items in the ordinary course of business. The amounts are determined based on the non-cancellable quantities to which we are contractually obligated. In December 2023, the Company entered into a technology service agreement with a vendor for cloud computing services where we are committed to spend$0.2 million and $1.1 millionfor the years ending December 31, 2024 and 2025, respectively.

Previous wording

For the three months ended March 31, 2024, net cash used in operating activities was $15.6 million, driven by a net loss of $4.2 million and $12.2 million of cash used for working capital requirements, adjusted for non-cash items consisting of stock-based compensation expense of $4.3 million, depreciation and amortization of $1.6 million, non-cash accretion of interest income on held-to-maturity securities of $1.5 million, income from change in fair value of warrant liabilities of $3.5 million, and a deferred tax benefit of $0.1 million. The $12.2 million of cash used for working capital requirements was primarily driven by a decrease in accounts payable and accrued expenses of $10.2 million, driven by the cash payment for the Trinity contingent consideration compensation and for the 2023 short term incentive plan, an increase in accounts receivable of $2.6 million (attributable to the revenue growth in the Medical segment), and an increase in prepaid expenses and other current assets of $0.4 million, driven by prepayments made to operators in connection with capacity purchase agreements; partially offset by an increase in deferred revenue of $1.2 million (driven by client prepayments).

Current wording

For the six months ended June 30, 2024, net cash used in operating activities was $7.1 million, driven by a net loss of $15.6 million and $5.6 million of cash used for working capital requirements, adjusted for non-cash items consisting of stock-based compensation expense of $10.0 million, impairment of intangible assets of $5.8 million, depreciation and amortization of $3.2 million, non-cash accretion of interest income on held-to-maturity securities of $2.3 million and income from change in fair value of warrant liabilities of $2.6 million. The $5.6 million of cash used for working capital requirements was primarily driven by a decrease in accounts payable and accrued expenses of $7.5 million, driven by the cash payment for the Trinity contingent consideration compensation and for the 2023 short term incentive plan paid in March of 2024 and an increase in accounts receivable of $7.0 million (attributable to the revenue growth in the Medical segment); partially offset by a decrease in prepaid expenses and other current assets of $6.0 million (driven by the utilization of $9.3 million of prepaid deposits under CPAs with M&N as part of the purchase of the seven aircraft, slightly offset by new prepayments made to operators in connection with new CPAs) and an increase in deferred revenue of $2.5 million (driven by Passenger client prepayments and gift cards).

Previous wording

For the three months ended March 31, 2023, net cash used in operating activities was $16.9 million, primarily driven by a net loss of $10.2 million and $9.5 million cash used for working capital requirements, adjusted for non-cash items consisting of stock-based compensation expense of $3.2 million, depreciation and amortization of $1.7 million, accretion of interest income on held-to-maturity securities of $1.4 million, income from change in fair value of warrant liabilities of $0.6 million, realized loss of $0.1 million from the sale of short-term investments, and a deferred tax benefit of $0.2 million. The $9.5 million cash used for working capital requirements was primarily driven by an increase in accounts receivable of $5.6 million, due to the rapid growth in MediMobility Organ Transport, a decrease in accounts payable and accrued expenses of $3.4 million (driven by the payment of the Trinity contingent consideration compensation payment and the 2022 short term incentive plan), an increase in prepaid expenses and other current assets of $1.6 million, driven by prepayments to operators in connection with capacity purchase agreements, partially offset by an increase in deferred revenue of $1.1 million (driven by client prepayments).

Current wording

For the six months ended June 30, 2023, net cash used in operating activities was $25.1 million, primarily driven by a net loss of $22.4 million and $10.5 million cash used for working capital requirements, adjusted for non-cash items consisting of stock-based compensation expense of $6.0 million, depreciation and amortization of $3.5 million, non-cash accretion of interest income on held-to-maturity securities of $3.0 million, loss from change in fair value of warrant liabilities of $1.9 million, realized loss of $0.1 million from the sale of short-term investments, and a deferred tax benefit of $0.6 million. The $10.5 million cash used for working capital requirements was primarily driven by an increase in accounts receivable of $11.6 million, due to the rapid growth in the Medical segment, an increase in prepaid expenses and other current assets of $2.6 million, driven by prepayments to operators in connection with capacity purchase agreements, and a decrease in accounts payable and accrued expenses of $0.1 million; partially offset by an increase in deferred revenue of $3.3 million (driven by Passenger client prepayments).

Previous wording

For the three months ended March 31, 2024, net cash provided by investing activities was $24.6 million, driven by $102.7 million of proceeds from maturities of held-to-maturity investments offset by $77.1 million in purchases of held-to-maturity investments; $0.8 million in purchases of property and equipment, consisting of leasehold improvements and furniture and fixtures for new office space in Arizona used by the Medical segment, and purchase of vehicles used in generating revenue by the Medical segment; and $0.3 million in capitalized software development costs.

Current wording

For the six months ended June 30, 2024, net cash provided by investing activities was $7.7 million, driven by $102.7 million of proceeds from maturities of held-to-maturity investments offset by $77.1 million in purchases of held-to-maturity investments; $17.0 million in purchases of property and equipment, consisting of the acquisition of seven aircraft to support the Medical business, furniture and fixtures for new office space in Arizona used by the Medical segment, and purchase of vehicles used in generating revenue by the Medical segment; and $1.1 million in capitalized software development costs.

Previous wording

For the three months ended March 31, 2023, net cash provided by investing activities was $16.3 million, driven by $16.0 million of proceeds from the sales of other short-term investments; $131.2 million of proceeds from maturities of held-to-maturity investments, partially offset by $130.1 million in purchases of held-to-maturity investments; $0.1 million in purchases of other short-term investments; and $0.6 million in purchases of property and equipment, consisting of leasehold improvements and furniture and fixtures used by the Passenger segment, and vehicles used in generating revenue by the Medical segment.

Current wording

For the six months ended June 30, 2023, net cash provided by investing activities was $20.0 million, driven by $20.5 million of proceeds from sales of other short-term investments; $131.2 million of proceeds from maturities of held-to-maturity investments, partially offset by $130.1 million in purchases of held-to-maturity investments; $0.1 million in purchases of other short-term investments; and $1.4 million in purchases of property and equipment, consisting of leasehold improvements and furniture and fixtures used by the Passenger segment, and vehicles used in generating revenue by the Medical segment.

Previous wording

For the three months ended March 31, 2024, net cash provided by financing activities was $54.0 thousand, reflecting $91.0 thousand of proceeds from the exercise of stock options, partially offset by $37.0 thousand cash paid for payroll tax payments on behalf of employees in exchange for shares withheld by the Company (“net share settlement”).

Current wording

For the six months ended June 30, 2024, net cash used in financing activities was $1.2 million, reflecting $1.0 million cash paid for payroll tax payments on behalf of employees in exchange for shares withheld by the Company (“net share settlement”) and $0.2 million in repurchases and retirement of common stock under the share repurchase program announced March 20, 2024; partially offset by $0.1 million of proceeds from the exercise of stock options.

Previous wording

For the three months ended March 31, 2023, net cash used in financing activities was $27.0 thousand, primarily reflecting $81.0 thousand cash paid for payroll tax payments made on behalf of employees in exchange for shares withheld by the Company (“net share settlement”), partially offset by $54.0 thousand of proceeds from the exercise of stock options.

Current wording

For the six months ended June 30, 2023, net cash used in financing activities was $0.05 million, primarily reflecting $0.1 million cash paid for payroll tax payments made on behalf of employees in exchange for shares withheld by the Company (“net share settlement”), partially offset by $0.05 million of proceeds from the exercise of stock options.