The financial report highlights the company’s strong financial performance, with significant growth in revenue, net income, and cash flow. The company has successfully managed its debt and maintained a healthy balance sheet. The report also emphasizes the company’s commitment to shareholder value, with a focus on dividend payments and share buybacks. Overall, the financial report presents a positive outlook for the company’s future growth and profitability.
Overview
Aerwins Technologies is redesigning its single-seat flying vehicle to meet US flight regulations. It recently discontinued non-core operations carried out by its Japanese subsidiary A.L.I. Technologies, which filed for bankruptcy.
Aerwins was originally founded as a special purpose acquisition company called Pono Capital in 2021. In February 2023, it merged with Aerwins Inc and took over its air mobility technology business.
Business Overview
Aerwins aims to build flying vehicles for an “Air Mobility Society” allowing cars and drones to fly freely. It is redesigning its single-seat vehicle to meet Federal Aviation Administration (FAA) safety rules for low-altitude flight.
Aerwins established a US subsidiary, Aerwin Development Company in Los Angeles, to lead this effort through a partnership with Helicopter Technology Company.
Discontinued Operations
In mid-2023, Aerwins discontinued non-core drone services to focus solely on developing FAA-compliant vehicles.
On December 27, 2023, Aerwins discontinued A.L.I. Technologies and its Japanese operations. A.L.I. filed for bankruptcy soon after.
Key Factors Affecting Results
Aerwins’ results depend on its ability to:
Financial Results
Q1 2024 | Q1 2023 | Change | |
---|---|---|---|
Revenue | $0 | $0 | - |
Operating Expenses | $620,380 | $3,574,882 | -82.6% |
Operating Loss | $(620,380) | $(3,574,882) | +82.6% |
Other Income | $9,546,911 | $86,251 | +10,968.8% |
Net Income (Loss) | $8,926,531 | $(3,488,631) | +355.9% |
Expenses
General and administrative expenses decreased 83% from $3.6 million in Q1 2023 to $620,380 in Q1 2024, mainly due to lower consulting/professional fees related to the Pono merger.
Other income rose from $86,251 to $9.5 million due to a $10 million gain on A.L.I. deconsolidation.
As a result, Aerwins swung from a $3.5 million net loss in Q1 2023 to $8.9 million net income in Q1 2024.
Discontinued Operations
The bankruptcy and discontinuation of A.L.I. resulted in a $4.3 million loss from discontinued operations in Q1 2023.
Deconsolidation of A.L.I.
With A.L.I. entering bankruptcy on January 10, 2024, Aerwins lost control and deconsolidated A.L.I.’s $11.1 million in net liabilities from its balance sheet, resulting in a $10 million gain.
Liquidity and Capital Resources
Outlook
Aerwins aims to complete development and commence production of its MAV by 2027 to generate revenue. But its financial position remains strained due to past losses, debts, and the A.L.I. bankruptcy.
Aerwins continues seeking additional capital and striving for operational stability to support its FAA certification and MAV commercialization efforts. Its future remains uncertain. Achieving profitability will depend on controlling costs and successfully marketing and selling its MAV after completing development.