10-Q: Tribal Rides International Corp. Reports Q3 2024 Results: Platform Development Continues Amidst Financial Challenges

Tribal Rides International Corp. files its Q3 2024 report, highlighting ongoing platform development and financial results showing no revenue and continued losses.

Summary

• Tribal Rides International Corp. filed its Form 10-Q for the quarterly period ended September 30, 2024.
• 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 while the company seeks additional funding.
• The company hopes to launch the next phase of release in the 2024 calendar year.
• For the three months ended September 30, 2024, the company reported no revenue and a net loss of $22,660.
• For the nine months ended September 30, 2024, the company reported no revenue and a net loss of $64,491.
• As of September 30, 2024, the company had total assets of $142,457 and a stockholders' deficit of $768,653.
• The company's continuation as a going concern is dependent on its ability to raise equity or debt financing and achieve profitable operations.
• The company has a material weakness in its internal control over financial reporting.
• The company is an emerging growth company and has elected to take advantage of certain exemptions from accounting standards.
• The company is working to rebuild its software platform with Trinesis Technologies Private Limited.
• The company is disputing a claim from SRAX for 6,524,441 shares of common stock under share adjustment provisions.

Sentiment

Score: 3

Explanation: The sentiment is negative due to the lack of revenue, continued losses, going concern uncertainty, and material weakness in internal controls. While there are some positive aspects like platform development, the financial challenges outweigh them.

Positives

• Operating expenses decreased significantly for the nine months ended September 30, 2024, compared to the same period in 2023 ($64,491 vs $718,122).
• The company is actively working on developing its digital transportation platform.
• The company has successfully registered and qualified for using the Paypal financial transaction features to supplement current Stripe capabilities.

Negatives

• The company has no revenues and continues to incur net losses.
• The company has a significant accumulated deficit of $2,916,488 as of September 30, 2024.
• The company's ability to continue as a going concern is dependent on raising additional capital.
• The company has a material weakness in its internal control over financial reporting.
• The company is disputing a claim from SRAX for a significant number of shares.

Risks

• The company's continuation as a going concern is dependent on its ability to raise equity or debt financing.
• The company's platform is still under development and has not yet generated revenue.
• The company faces the risk of not obtaining sufficient capital to continue operations.
• The company has a material weakness in its internal control over financial reporting.
• The company is subject to general market and economic conditions.
• The company is disputing a claim from SRAX for 6,524,441 shares of common stock, which could have a dilutive effect if the claim is valid.

Future Outlook

The company hopes to launch the next phase of its platform release in the 2024 calendar year and is planning for Phase 3 to provide a stable and enhanced application for both Drivers and Riders, while planning for and incorporating next-generation self-driving car capabilities as well as other transportation alternatives. The timetable for release of Tribal Rides Driver and Rider applications for both Apple and Android phones and tablets is unclear at this time.

Management Comments

• Management believes that the 799 requests received in 2023 for the Tribal Rides Driver application are confirmation of their design approach and the availability of an untapped market segment.

Industry Context

The company operates in the digital transportation sector, competing with established ride-sharing services and taxi companies. The company's focus on digital transformation and specific features for taxi and limousine companies suggests a niche strategy. The development of AI and machine learning technologies for dispatching and pricing aligns with industry trends towards optimization and efficiency.

Comparison to Industry Standards

• The company's lack of revenue and continued losses are not uncommon for early-stage technology companies in the transportation sector.
• Companies like Uber and Lyft initially experienced significant losses as they invested heavily in platform development and market expansion.
• The company's reliance on debt and equity financing is typical for startups in this industry.
• The company's focus on AI and machine learning aligns with industry trends, but its ability to compete with larger, well-funded companies remains uncertain.

Related Party Transactions

• Amounts owed to related parties, including the CEO and directors, totaled $219,350 as of September 30, 2024.
• These amounts bear no interest, are unsecured, and are repayable on demand.

Stakeholder Impact

• Shareholders face the risk of dilution due to potential share issuances and the uncertainty surrounding the SRAX claim.
• Employees' job security is dependent on the company's ability to secure funding and achieve profitability.
• Customers may experience delays or changes in the platform's development and release schedule.
• Creditors face the risk of non-payment if the company is unable to continue as a going concern.

Next Steps

• The company plans to continue developing its digital transportation platform.
• The company intends to launch the next phase of its platform 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.

Key Dates

Keywords

Tribal Rides, digital transformation, transportation platform, financial results, going concern, internal control, SRAX, debt, equity, losses