10-Q: Tribal Rides International Corp. Reports Q1 2024 Results: No Revenue, Reduced Operating Expenses, and Continued Focus on Digital Transportation Platform

Tribal Rides International Corp. reports no revenue for Q1 2024, but significantly reduced operating expenses compared to the same period in the previous year, as the company continues to develop its digital transportation platform.

Summary

• Tribal Rides International Corp. filed its Form 10-Q for the quarter ended March 31, 2024.
• The company reported no revenue for the three months ended March 31, 2024 and 2023.
• The net loss for the quarter was $41,831, or $0.01 per share, compared to a net loss of $458,042, or $0.01 per share, for the same period in 2023.
• Operating expenses decreased significantly from $338,849 in Q1 2023 to $38,900 in Q1 2024.
• The company is focused on the digital transformation of transportation with its platform undergoing beta testing while awaiting additional funding.
• The company had an accumulated deficit of $2,893,828 as of March 31, 2024.
• The company's continuation as a going concern is dependent on raising equity or debt financing and achieving profitable operations.
• The company estimates revenue to be from $250,000 up to $500,000 in 2023 and upwards of $10,000,000 in 2024.
• The company plans to release the Tribal Rides Driver and Rider applications for both Apple and Android phones and tablets in the July/August 2023 timeframes.

Sentiment

Score: 4

Explanation: The sentiment is neutral to slightly negative. While the company has reduced operating expenses and net loss, it still has no revenue and is dependent on raising additional capital to continue as a going concern. The company also has a material weakness in internal control over financial reporting.

Positives

• The company significantly reduced its operating expenses in Q1 2024 compared to the same period last year.
• The net loss decreased substantially from $458,042 in Q1 2023 to $41,831 in Q1 2024.
• The company is making progress on its digital transportation platform, with a planned release of driver and rider applications in July/August 2023.
• The company has successfully registered and qualified for using the Paypal financial transaction features to supplement current Stripe capabilities.

Negatives

• The company reported no revenue for the three months ended March 31, 2024.
• The company has an accumulated deficit of $2,893,828 as of March 31, 2024.
• The company's continuation as a going concern is dependent on raising additional capital.
• The company's disclosure controls and procedures were not effective as of March 31, 2023, due to a material weakness in internal control over financial reporting.

Risks

• The company's ability to continue as a going concern is dependent on raising equity or debt financing.
• The company's digital transportation platform is still in beta testing and may not be successfully launched.
• The company faces competition in the digital transportation market.
• The company's sales forecasts are based on a modest initial adoption rate and growth rate, which may not be achieved.
• The company's disclosure controls and procedures were not effective as of March 31, 2023, due to a material weakness in internal control over financial reporting.

Future Outlook

The company anticipates releasing its driver and rider applications in July/August 2023 and estimates revenue to be from $250,000 up to $500,000 in 2023 and upwards of $10,000,000 in 2024.

Management Comments

• The company is encouraged by early adopter requests for its Tribal Rides Driver application.
• Preliminary discussions with several high volume shared-ride drivers confirm the company's approach and suggest that the shared-ride driver network will spread news of the application virally.

Industry Context

The company operates in the competitive digital transportation market, facing established players in the ride-sharing and taxi industries. The company's focus on digital transformation and specific features for taxi and limousine companies could provide a niche advantage.

Comparison to Industry Standards

• It is difficult to compare Tribal Rides to industry standards due to its early stage and lack of revenue.
• Companies like Uber and Lyft have established significant market share and revenue streams, while Tribal Rides is still in the development and testing phase.
• Comparable companies in the transportation software space include those providing dispatching and booking management solutions, but their financial performance and market position vary widely.

Related Party Transactions

• Amounts owed to related parties, including the CEO, directors, and a company owned by a director, totaled $216,350 as of March 31, 2024.
• These amounts bear no interest, are unsecured, and are repayable on demand.

Stakeholder Impact

• Shareholders face the risk of dilution if the company raises additional equity financing.
• Employees' jobs are at risk if the company is unable to raise sufficient capital to continue operations.
• Customers may not benefit from the company's digital transportation platform if it is not successfully launched.
• Suppliers and creditors face the risk of non-payment if the company is unable to continue as a going concern.

Next Steps

• The company plans to release the Tribal Rides Driver and Rider applications for both Apple and Android phones and tablets in the July/August 2023 timeframes.
• The company intends to continue beta testing its digital transportation platform.
• The company needs to raise additional funds to execute its current plan of operation.

Key Dates

Keywords

digital transportation, ride-sharing, financial results, operating expenses, net loss, platform, beta testing, funding, revenue, Tribal Rides