Filing summary
Entity and period: The supplied filing is Oxbridge Acquisition Corp.’s unaudited Form 10-Q for the quarter ended March 31, 2022, signed May 12, 2022. It is not a Jet.AI Inc. filing; the company identity in the request metadata does not match the filing.
Business context and financial results
Oxbridge was a blank-check company formed to pursue a business combination and had not commenced operations or generated operating revenue. Its reported activity related to formation, its 2021 IPO and the search for a target. The quarter’s net income therefore does not reflect operating performance.
| Metric | Three months ended March 31, 2022, or at period-end |
|---|---|
| Revenue | No operating revenue |
| General and administrative expense | $56,158 |
| Gain from warrant-liability revaluation | $3,420,640 |
| Net income / earnings per share | $3,364,702 / $0.232 basic and diluted |
| Cash flow from operations | $(60,020) |
| Cash outside trust | $554,375, versus $614,395 at December 31, 2021 |
| Cash held in trust | $116,725,000, unchanged from December 31, 2021 |
| Working capital | Approximately $540,000 |
| Total liabilities | $7,736,148, versus $11,112,300 at December 31, 2021; includes $4,025,000 deferred underwriting commissions and $3,648,660 warrant liabilities |
| Borrowings | No working capital loans outstanding; the filing reports no long-term debt obligations |
Changes, outlook and risks
- Warrant liabilities fell from $7,069,300 at December 31, 2021 to $3,648,660 at March 31, 2022. The resulting $3.42 million noncash gain was the principal reason for quarterly net income.
- Cash outside trust decreased by $60,020 during the quarter. Management said cash, working capital and potential sponsor-affiliate borrowing capacity should fund needs through the earlier of a business combination or one year from the filing. Potential loans are discretionary, not committed.
- The company had until November 16, 2022 to complete a business combination, with an extension potentially available through May 16, 2023. If it failed to complete one within the applicable period, it was required to cease operations and redeem public shares under the stated terms; warrants could expire worthless.
- Management said COVID-19 could negatively affect the company’s financial position, results or target search, but the impact was not determinable. The filing identifies no legal proceedings, defaults on senior securities or off-balance-sheet arrangements.
- Public shares may be redeemed in connection with a business combination. The filing reports 10,304,618 Class A shares classified as temporary equity at March 31, 2022; deferred underwriting commissions are payable only if a business combination is completed.
Important facts to verify
- Confirm the intended issuer: this document is for Oxbridge Acquisition Corp., not Jet.AI Inc.
- Verify the filing’s cover-page response that the company had not filed all required Exchange Act reports during the preceding 12 months; reconcile this with its reporting history.
- Review the warrant valuation and the noncash gain’s effect on reported earnings.
- Confirm the business-combination deadline, any extension, and the availability of funding outside the trust account.
- Check the filing’s disclosure-controls evaluation date, stated as June 30, 2021, for consistency with this March 31, 2022 quarterly report.