10-Q: Tribal Rides International Corp. Reports Q2 2024 Results: Platform Development Continues Amidst Financial Constraints

Tribal Rides International Corp. reports no revenue for Q2 2024 as it continues to develop its digital transportation platform while managing financial challenges and ongoing losses.

Summary

• Tribal Rides International Corp. filed its Form 10-Q for the quarterly period ended June 30, 2024.
• The company is focused on the digital transformation of transportation with a platform for taxi, limousine, and ride-sharing services.
• The platform is undergoing additional coding and beta testing, awaiting further funding for the next phase of release in 2024.
• The company has successfully registered and qualified for using Paypal financial transaction features.
• Tribal Rides has no revenues and an accumulated deficit of $2,893,828 as of June 30, 2024.
• The company's continuation as a going concern depends on raising equity or debt financing and achieving profitable operations.
• Operating expenses for the three months ended June 30, 2024 were $NIL compared to $356,286 for the three months ended June 30, 2023.
• Net loss for the three months ended June 30, 2024 was $0 compared to a net loss of $187,630 in the previous period.
• Operating expenses for the six months ended June 30, 2024 were $41,831 compared to $695,135 for the six months ended June 30, 2023.
• Net loss for the six months ended June 30, 2024 was $41,831 compared to a net loss of $645,672 in the previous period.
• As of June 30, 2024, the company had cash of $NIL and total assets of $142,457.
• The company has a material weakness in its internal control over financial reporting.

Sentiment

Score: 3

Explanation: The sentiment is low due to the lack of revenue, accumulated deficit, dependence on raising capital, and material weakness in internal controls. While there are some positive developments in platform development, the financial situation is precarious.

Positives

• Operating expenses decreased significantly for both the three and six months ended June 30, 2024, compared to the same periods in 2023.
• Net loss decreased for both the three and six months ended June 30, 2024, compared to the same periods in 2023.
• The company has successfully registered and qualified for using Paypal financial transaction features.
• The company is working on Phase 3 of its product release, planning for self-driving car capabilities.

Negatives

• Tribal Rides International Corp. has no revenues.
• The company has an accumulated deficit of $2,893,828 as of June 30, 2024.
• The company's continuation as a going concern is dependent on raising additional capital.
• The company had cash of $NIL as of June 30, 2024.
• The company has a material weakness in its internal control over financial reporting.

Risks

• The company's ability to continue as a going concern is dependent on raising equity or debt financing.
• There are no assurances that the company will be successful in obtaining sufficient capital.
• The company has a material weakness in its internal control over financial reporting.
• The timetable for release of Tribal Rides Driver and Rider applications for both Apple and Android phones and tablets is unclear at this time.
• The company has disputed a claim from SRAX for 6,524,441 shares of common stock.

Future Outlook

The company hopes to launch the next phase of its platform release in the 2024 calendar year and is planning for next-generation self-driving car capabilities.

Management Comments

• We are very encouraged by these early adopters and view these requests as confirmation of our design approach and the availability of an untapped market segment that is not being addressed by the other major shared-ride applications.

Industry Context

The company operates in the competitive digital transportation market, facing established players in the ride-sharing and taxi industries. The focus on digital transformation and specific features like fraud prevention in B2B taxi chits suggests an attempt to carve out a niche.

Comparison to Industry Standards

• Given the lack of revenue, Tribal Rides is significantly behind industry leaders like Uber and Lyft, which generate billions in revenue annually.
• Unlike these established companies, Tribal Rides is still in the development and testing phase, making direct comparisons difficult.
• The company's focus on specific niches like B2B solutions could be compared to smaller players in the corporate transportation space, but without revenue data, a meaningful comparison is not possible.

Related Party Transactions

• Amounts owed to related parties, including officers and directors, totaled $216,350 as of June 30, 2024.
• These amounts bear no interest, are unsecured, and are repayable on demand.

Stakeholder Impact

• Shareholders face significant risk due to the company's financial instability and dependence on raising capital.
• Employees' job security is uncertain due to the company's financial constraints.
• Customers are impacted by the delayed release of the platform.
• Suppliers and creditors face risk of non-payment due to the company's financial situation.

Next Steps

• The company intends to continue developing its digital transportation platform.
• The company needs to raise additional funds to execute its current plan of operation.
• The company intends to scale back its operations commensurately with the funds available if it is unable to raise sufficient funds.

Key Dates

Keywords

digital transformation, transportation platform, ride-sharing, financial results, going concern, software development, Tribal Rides, XNDA