10-K: Tribal Rides International Corp. Files 10-K Report for Fiscal Year 2023, Cites Ongoing Development and Financial Challenges
Sentiment:
Annual Results
Tribal Rides International Corp.'s 2023 10-K filing reveals a company in the research and development stage, focused on autonomous vehicle technology, with no revenue and ongoing efforts to secure funding.
Capital raiseThe company is actively seeking additional capital to further develop its SaaS platform and mobile app.The company's ability to continue as a going concern is dependent on raising sufficient capital.The company has previously raised capital through debt financing, advances from related parties, and private placements of common stock.
Worse than expectedThe company has no revenue and a significant accumulated deficit, indicating worse than expected financial performance.The company has no cash on hand and is dependent on raising additional capital, which is a significant financial risk.The company has a material weakness in its internal control over financial reporting, which is a serious concern.
Summary
- Tribal Rides International Corp. is a transportation technology company focused on developing a platform for autonomous vehicles and ride-sharing.
- The company is currently in the research and development phase and has not generated any revenue.
- For the year ended December 31, 2023, the company reported a net loss of $185,918, compared to a net loss of $1,491,513 in the previous year.
- Operating expenses for 2023 were $185,914, significantly lower than the $1,098,690 in 2022, which included substantial stock-based compensation and investor relations expenses.
- The company's total assets were $178,157 as of December 31, 2023, with no cash on hand, and total liabilities of $882,318.
- Tribal Rides is actively seeking additional capital to further develop its SaaS platform and mobile app.
- The company believes the autonomous vehicle market is projected to reach $173 billion in revenue by 2024 and $2.195 billion in 2030.
- The company has patented and patent-pending technologies related to AI, machine learning, and smart deployment algorithms.
Sentiment
Score: 3
Explanation: The document highlights significant financial challenges, including no revenue, a large accumulated deficit, and a dependence on capital raises. While there is potential in the technology, the current financial situation and internal control weaknesses are major concerns.
Positives
- The company's net loss significantly decreased from $1,491,513 in 2022 to $185,918 in 2023.
- Operating expenses were substantially reduced in 2023 compared to 2022.
- The company possesses patented and patent-pending technologies in the autonomous vehicle space.
- Tribal Rides is targeting a large and growing market for autonomous vehicles and ride-sharing.
Negatives
- The company has no revenue and is in the research and development stage.
- Tribal Rides has no cash on hand and is dependent on raising additional capital to continue operations.
- The company has a significant accumulated deficit of $2,851,996 as of December 31, 2023.
- The company's total liabilities are $882,318, exceeding its total assets.
- There is a material weakness in the company's internal control over financial reporting.
Risks
- The company's ability to continue as a going concern is dependent on raising sufficient capital.
- The company faces competition from established ride-sharing providers.
- The development and deployment of autonomous vehicle technology is subject to regulatory and technological risks.
- The company's success is dependent on the successful development and marketing of its SaaS platform.
- The company has a material weakness in its internal control over financial reporting.
Future Outlook
The company plans to further develop its cloud-based SaaS shared-ride application and interface for both drivers and riders and is currently reviewing and revising its sales and marketing plans for 2024. The company is also seeking additional capital to fund its operations and development.
Management Comments
- Management believes that the mobility ecosystem and marketplace they are creating will enable them to address current ridesharing demands and those of the rapidly emerging autonomous vehicle personal mobility market.
- Management believes that the emergence of self-driving cars enhanced by their Mobility as a Service (MAAS) platform will bring another wave of societal and environmental transformation.
- Management is committed to maintaining a strong internal control environment and believes that remediation efforts will represent significant improvements in their controls.
Industry Context
The company is operating in the rapidly evolving transportation technology sector, specifically targeting the autonomous vehicle and ride-sharing markets. This sector is characterized by high growth potential but also intense competition from established players like Uber and Lyft. The company's focus on AI and machine learning aligns with industry trends towards advanced automation and optimization.
Comparison to Industry Standards
- Tribal Rides is competing with major players like Uber and Lyft, which have significantly larger market shares and resources.
- The company's focus on autonomous vehicle technology is similar to other companies in the sector, such as Waymo and Cruise, but these companies are much further along in development and deployment.
- The company's financial position is weak compared to industry standards, with no revenue and a significant accumulated deficit.
- The company's lack of cash and dependence on capital raises is a significant risk compared to more established competitors.
- The company's technology is based on patents and patent-pending applications, which is a common strategy in the industry, but the value of these patents is dependent on successful commercialization.
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Internal Control Weakness | The company identified a material weakness in its internal control over financial reporting due to lack of segregation of duties, lack of governance/oversight, and lack of internal control documentation. | 2023-12-31 | The material weakness could adversely affect the company's ability to record, process, summarize, and report financial information accurately. |
Legal Proceedings
- The company is not currently aware of any legal proceedings or claims that would have a material adverse effect on its business.
Related Party Transactions
- The company has significant related party transactions, including amounts owed to officers and directors for services and advances.
- The company entered into an Asset Purchase Agreement with Tribal Rides, Inc., where the CEO of Tribal Rides is also the CEO of the company.
Stakeholder Impact
- Shareholders face significant risk due to the company's financial instability and dependence on capital raises.
- Employees and subcontractors are impacted by the company's financial constraints and lack of revenue.
- Customers are impacted by the company's ongoing development and lack of a fully launched product.
- Creditors face risk due to the company's high liabilities and lack of cash.
Next Steps
- The company plans to further develop its cloud-based SaaS shared-ride application and interface.
- The company is reviewing and revising its sales and marketing plans for 2024.
- The company is working to remediate the material weakness in its internal control over financial reporting.
- The company is seeking additional capital to fund its operations and development.
Key Dates
| Date | Description |
|---|---|
| 2014-05-19 | Tribal Rides International Corp. was incorporated as Trimax Consulting, Inc. |
| 2017-05-08 | The company changed its name to Xinda International Corp. |
| 2020-01-18 | The company entered into an Asset Purchase Agreement with Tribal Rides, Inc. |
| 2021-02-24 | The company changed its name to Tribal Rides International Corp. |
| 2021-11-10 | The company entered into a Securities Purchase Agreement for a Convertible Promissory Note. |
| 2022-05-22 | The Convertible Promissory Note was extended for six months. |
| 2022-11-22 | The maturity date of the Convertible Promissory Note was extended to February 10, 2023. |
| 2023-01-05 | The company entered into a Private Placement Subscription Agreement. |
| 2023-01-31 | The maturity date of the Convertible Promissory Note was extended to August 1, 2023. |
| 2023-02-10 | The company entered into an agreement with SRAX, Inc. for investor relations services. |
| 2023-03-02 | The company entered into a consulting agreement with Igala Commonwealth Limited and a services agreement with Alta Waterford LLC. |
| 2023-03-12 | The company amended its Articles of Incorporation to increase the number of authorized common shares. |
| 2023-04-28 | The company entered into a Private Placement Subscription Agreement. |
| 2024-04-17 | The company had approximately 26 holders of its common stock. |
| 2024-09-17 | There were 39,935,500 shares of the company's Common Stock outstanding. |
| 2024-10-02 | The 10-K report was signed. |
Keywords
autonomous vehicles, ride-sharing, SaaS, AI, machine learning, transportation technology, patents, mobility, software development, capital raise
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