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Latest 10-Q filed 11/13/2024 · Compared against 8/8/2024
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Item 1A. Risk Factors
There have been no material changes to our risk factors during the sixnine months ended JuneSeptember 30, 2024. However, we draw attention to the below risk factors relating to our investment in Jet.AI Inc. that can have a material impact on our earnings and shareholders equity in the near term.
Our use of fair value accounting of our significant investment in Jet.AI Inc. could result in income statement volatility, which in turn, could cause significant market price and trading volume fluctuations for our securities.
Our significant beneficial interests in Jet.AI Inc.s common stock and public warrants arre recorded at fair value with changes in fair value being recorded in the consolidated statement of operations during the period of change. Additionally, the fair value of the investment must be remeasured quarterly. Because of this, and due to significance of our investment in Jet.AI relative to our total assets, our earnings may experience greater volatility in the future as a decline in the fair value of our investment in Jet.AI Inc. could significantly reduce both our earnings and shareholders equity, which in turn, could cause significant market price and trading volume fluctuations for our securities.
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