NOTE 1 – ORGANIZATION AND NATURE OF OPERATIONS

Jet.AI Inc. (the “Company”), directly and indirectly through its subsidiaries, has historically principally been involved in (i) the sale of fractional and whole interests in aircraft, (ii) the sale of jet cards, which enable holders to use certain aircraft at agreed-upon rates, (iii) the operation of a proprietary booking platform (the “App”), which functions as a prospecting and quoting platform to arrange private jet travel with third-party carriers as well as via the Company’s leased and managed aircraft, (iv) direct chartering of its HondaJet Elite aircraft by Cirrus Aviation Services (“Cirrus”), (v) aircraft brokerage and (vi) service revenue from the monthly management and hourly operation of customer aircraft. In 2025 the Company began transitioning its primary focus to AI data center operations and assets.

On July 13, 2026, the Company completed the spin-off of its fractional and jet card business (the “Spin-Off” and sometimes referred to in this Quarterly Report on Form 10-Q (“Quarterly Report”) as the “Distribution”) as contemplated by the Merger Agreement and related Separation and Distribution Agreement (each as defined in Note 6). As of June 30, 2026, the fractional and jet card business did not meet the criteria to be classified as held for sale under ASC 360-10-45-9. Accordingly, the assets, liabilities, and results of operations of the fractional and jet card business are included in continuing operations in these consolidated financial statements for all periods presented. Following the Spin-Off, the results and assets and liabilities of the fractional and jet card business will be reported as discontinued operations and excluded from continuing operations for all reporting periods, including comparable historical periods. See Notes 6 and 10 for additional information regarding the Spin-Off, and the transactions completed under the Merger Agreement and the Separation and Distribution Agreement.