10-Q: Tribal Rides International Corp. Reports Q3 2023 Results: Losses Narrow Amid Platform Development

Tribal Rides International Corp. reports a reduced net loss for the third quarter of 2023 as it continues to develop its digital transportation platform.

Summary

• Tribal Rides International Corp. reported its financial results for the third quarter and nine months ended September 30, 2023.
• The company is focused on the digital transformation of transportation with its platform for taxi, limousine, and ride-sharing services.
• The platform is undergoing additional coding and beta testing, with a planned launch of the next phase in the 2024 calendar year.
• For the three months ended September 30, 2023, the net loss was $22,987, compared to $636,096 for the same period in 2022.
• Operating expenses decreased to $22,987 from $625,727 year-over-year.
• For the nine months ended September 30, 2023, the net loss was $668,659, compared to $1,288,293 for the same period in 2022.
• Operating expenses for the nine-month period were $718,122, down from $1,054,561 in the prior year.
• As of September 30, 2023, the company had a cash overdraft of $760 and an accumulated deficit of $2,689,065.
• The company is dependent on raising equity or debt financing and achieving profitable operations to continue as a going concern.
• The company amended its Articles of Incorporation on March 13, 2023, to increase the authorized common shares to 500,000,000.

Sentiment

Score: 5

Explanation: The sentiment is neutral. While the company has reduced its losses, it is still pre-revenue and heavily reliant on external funding. The material weakness in internal controls and the dispute with SRAX are also concerning.

Positives

• The company significantly reduced its net loss for both the three and nine months ended September 30, 2023.
• Operating expenses decreased compared to the same periods in the previous year.
• The company is making progress in developing its digital transportation platform.
• The company has secured agreements for additional funding through private placements and debt modifications.
• The company has attracted early adopters for its Tribal Rides Driver application, indicating market interest.

Negatives

• The company has a cash overdraft of $760 as of September 30, 2023.
• The company has an accumulated deficit of $2,689,065 as of September 30, 2023.
• The company is dependent on raising additional capital to continue operations.
• The company has not yet generated revenue from its platform.
• The timetable for the release of the Tribal Rides Driver and Rider applications is unclear.

Risks

• The company's ability to continue as a going concern is dependent on raising equity or debt financing and achieving profitable operations.
• There is no assurance that the company will be successful in obtaining sufficient capital.
• If the company's working capital needs are not met, it could be forced to cease operations.
• The company is disputing a claim from SRAX for 6,524,441 shares of common stock.
• The company's disclosure controls and procedures were not effective as of September 30, 2023, due to a material weakness in internal control over financial reporting.

Future Outlook

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

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 digital transportation sector, competing with established ride-sharing services and aiming to provide a platform for taxi and limousine companies. The focus on AI and machine learning for dispatching and booking management aligns with industry trends towards automation and efficiency.

Comparison to Industry Standards

• It is difficult to compare Tribal Rides to industry standards as it is pre-revenue and still developing its platform.
• Comparisons to companies like Uber and Lyft are not meaningful at this stage due to the vast differences in scale and operational maturity.
• The company's focus on a B2B taxi chit solution could be compared to corporate transportation management services, but specific benchmarks are not available in the document.

Related Party Transactions

• Amounts owed to related parties totaled $211,408 as of September 30, 2023.
• Mr. Grimes is our CEO and Director as well as our largest shareholder.
• Mr. Prasad, Director, has made various patent filings for our Company in recent years, which amounts have been recorded in Patents, net on the accompanying Balance Sheet.
• Mr. Smith was our Companys CFO until his resignation effective May 31, 2023.
• KeptPrivate.com is owned by Mr. Steven Ritacco, a Director of our Company.

Stakeholder Impact

• Shareholders are impacted by the company's reliance on external funding and the potential dilution from share issuances.
• Employees are impacted by the company's ability to continue operations and develop its platform.
• Customers (taxi, limousine, and ride-sharing companies) are impacted by the development and launch of the company's platform.
• Creditors are at risk due to the company's negative cash position and dependence on external funding.

Next Steps

• The company plans to continue developing its digital transportation platform.
• The company hopes to launch the next phase of release in the 2024 calendar year.
• The company needs to raise additional funds to execute its current plan of operation.
• The company is attempting to obtain additional information from SRAX in order to assess the validity of their claim for 6,524,441 shares of common stock.

Key Dates

Keywords

digital transformation, transportation platform, ride-sharing, financial results, net loss, operating expenses, capital raising, private placement, debt financing, going concern