Blade Air Mobility, Inc. (Nasdaq: BLDE, “Blade” or the “Company”), announced financial results for the second quarter ended June 30, 2023.

GAAP QUARTERLY FINANCIAL RESULTS (in thousands except percentages, unaudited)
	Three Months Ended June 30,
		2023				2022			% Change
Revenue	$	60,989			$	35,633			71.2	%
Cost of revenue		50,620				30,522			65.8	%
Software development		1,440				1,062			35.6	%
General and administrative		18,410				12,144			51.6	%
Selling and marketing		2,728				1,638			66.5	%
Total Operating Expenses		73,198				45,366			61.3	%
Loss from operations		(12,209	)			(9,733	)		25.4	%
Net (loss) income	$	(12,232	)		$	8,412			NM*
Passenger net (loss) income	$	(3,837	)		$	(2,326	)		65.0	%
Medical net (loss) income	$	(497	)		$	694			NM*
Unallocated corporate expenses and software development	$	(7,875	)		$	(8,101	)		(2.8	)%
*Percentage not meaningful

NON-GAAP(1) QUARTERLY FINANCIAL RESULTS (in thousands except percentages, unaudited)
	Three Months Ended June 30,
		2023				2022			Change
GAAP Revenue	$	60,989			$	35,633			71.2	%
GAAP Cost of revenue		50,620				30,522			65.8	%
Flight Profit		10,369				5,111			102.9	%
Flight Margin		17.0	%			14.3	%		+266bps
Adjusted Corporate Expense		14,817				11,230			31.9	%
Adjusted Corporate Expense as a percentage of Revenue		24.3	%			31.5	%		-720bps
Adjusted EBITDA	$	(4,448	)		$	(6,119	)		(27.3	)%
Adjusted EBITDA as a percentage of Revenue		(7.3	)%			(17.2	)%		+990bps
Passenger Adjusted EBITDA	$	(2,075	)		$	(1,085	)		91.2	%
Medical Adjusted EBITDA	$	3,023			$	1,113			171.6	%
Adjusted unallocated corporate expenses and software development	$	(5,396	)		$	(6,147	)		(12.2	)%

“Blade’s record performance this quarter illustrates the value proposition of our diversified business model,” said Rob Wiesenthal, Blade’s Chief Executive Officer. “In MediMobility Organ Transport, we continue to benefit from new organ preservation technologies that are expanding the market, as well as the addition of a number of new transplant center and organ procurement organizations. In our Passenger business, we saw strong volume and pricing growth in the Northeast, particularly for our 5-minute helicopter transfers between Manhattan and New York area airports.”

“Blade delivered significant year over year improvement in Adjusted EBITDA this quarter, driven by 172% growth in Medical Segment Adjusted EBITDA and cost savings across our corporate platform,” said Will Heyburn, Blade’s Chief Financial Officer. “Our cost efficiency program is showing meaningful results with Adjusted Unallocated Corporate Expenses, which relate to the overall Blade shared services platform, decreasing 12% in Q2 2023 versus the prior year period, despite our significant 71% revenue growth. We expect that continued growth and cost efficiencies will lead to further year over year improvement in Adjusted EBITDA in the second half of the year.”

“The FAA’s blueprint for air mobility, released in July, outlines a gradual transition to Electric Vertical Aircraft, or EVA, utilizing existing air traffic control systems and infrastructure. This approach validates Blade’s unique strategy, focused on our exclusive Blade terminals at existing heliports and airports in the most active air mobility corridors operating around the world today,” stated Melissa Tomkiel, Blade’s President. “As a result, Blade is best positioned to enable the gradual transition of today’s air mobility fliers from helicopters to EVA, which we expect to expand the addressable market for our Passenger segment through lower cost, emission-free, and near-silent flight.”

Second Quarter Ended June 30, 2023 Financial Highlights

• Total revenue increased 71.2% to $61.0 million in the current quarter versus $35.6 million in the prior year period. On a pro forma basis, assuming Blade had owned Blade Europe in the comparable prior year period, revenue for the second quarter ended June 30, 2023 would have increased approximately 42.3%⁽¹⁾ on a constant currency basis.
• Flight Profit⁽¹⁾ increased 102.9% to $10.4 million in the current quarter versus $5.1 million in the prior year period, driven by strong growth in our MediMobility Organ Transport business, the contribution from our Blade Europe acquisitions, and improved growth and profitability across our US Short Distance business.
• Flight Margin⁽¹⁾ improved to 17.0% in the current quarter from 14.3% in the prior year period, driven by increased use of dedicated aircraft in our MediMobility Organ Transport business line, which results in lower costs, the acquisition of Blade Europe, which operates at a higher average Flight Profit versus our corporate average, improved pricing and utilization in our New York by-the-seat Airport Transfer product, and a reduction in spot market jet charter costs, which decreased more quickly than our jet charter pricing.
• Short Distance revenue increased 75.0% to $19.2 million in the current quarter versus $11.0 million in the prior year period. Growth was driven by our acquisition of Blade Europe, strong volume and pricing growth in our Blade Airport service, and growth across our US Short Distance business lines. On a pro forma basis, assuming Blade had owned Blade Europe in the comparable prior year period, Short Distance revenue for the second quarter ended June 30, 2023 would have increased approximately 5.3%⁽¹⁾ on a constant currency basis.
• MediMobility Organ Transport revenue increased 99.4% to $34.4 million in the current quarter versus $17.2 million in the prior year period, driven by the addition of new transplant center customers, continued growth with existing customers, and strong market demand. Revenue increased 28.5% sequentially in Q2 2023 versus Q1 2023. MediMobility Organ Transport growth was entirely organic given Blade’s acquisition of Trinity Air Medical closed in September 2021.
• Jet and Other revenue decreased (0.2)% to $7.4 million in the current quarter versus $7.4 million in the prior year period, as an increase in jet charter volume was offset by a decline in the average price per jet charter trip.
• Net loss was $12.2 million in the quarter versus a net income of $8.4 million in the prior year period, driven primarily by an unfavorable change in the fair value of warrant liabilities of $(2.5) million (compared to a favorable change of $19.3 million in the prior year period).
• Adjusted EBITDA⁽¹⁾ loss improved to $(4.4) million in the current quarter versus $(6.1) million in the prior year period, and improved as a percentage of revenues to (7.3)% in the current quarter from (17.2)% in the prior year period. The improvement was driven by a 172% increase in Medical Segment Adjusted EBITDA to $3.0 million in the current quarter, coupled with a $0.8 million improvement in Unallocated Corporate Expenses and Software Development to $(5.4) million, partially offset by a $1.0 million decline in Passenger Segment Adjusted EBITDA to $(2.1) million, resulting from higher integration and operating expenses related to our acquisition of Blade Europe.

Business Highlights and Recent Updates

• In April 2023, Blade provided logistics and coordination support for a record-breaking heart transplant mission. In collaboration with Massachusetts General Hospital and Paragonix Technologies, Inc., Blade facilitated the transport of a donor heart and transplant team members 2,506 nautical miles from Juneau, Alaska, to Boston, Massachusetts, setting a record for the longest distance a donor heart has ever traveled for a transplant surgery.
• In May 2023, Blade announced an agreement to revitalize and operate the Newport Helistop (91NJ), located in Newport, Jersey City, New Jersey, one of the largest and most successful mixed-use communities on the Hudson River waterfront. Blade has begun a pilot program for charter flights and is analyzing the viability of limited by-the-seat service between the Helistop and local New York City area airports and heliports.
• In June 2023, Blade and Eve Air Mobility (“Eve”) announced at the 54th International Paris Air Show a significant extension of their long-standing partnership through a memorandum of understanding. The collaboration aims to transform air transportation in Europe, starting with France, by laying the foundation to integrate Eve’s state-of-the-art electric vertical aircraft into Blade’s European route network, subject to receipt of necessary regulatory approvals and certification.

____________________

 (1) See “Use of Non-GAAP Financial Measures” attached to this release for further detail on adjustments to GAAP financial measures.

Conference Call

The Company will conduct a conference call starting at 8:00 a.m. ET on Wednesday, August 9, 2023 to discuss the results for the second quarter ended June 30, 2023.

A live audio-only webcast of the call may be accessed from the Investor Relations section of the Company’s website at https://ir.blade.com/. An archived replay of the call will be available on the Investor Relations section of the Company’s website for one year.

Use of Non-GAAP Financial Information
Blade believes that the non-GAAP measures discussed below, viewed in addition to and not in lieu of our reported U.S. Generally Accepted Accounting Principles (“GAAP”) results, provide useful information to investors by providing a more focused measure of operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP measures presented herein may not be comparable to similarly titled measures presented by other companies. Adjusted EBITDA, Segment Adjusted EBITDA, Adjusted Unallocated Corporate Expenses, Corporate Expenses, Adjusted Corporate Expenses, Flight Profit, Flight Margin and Pro forma revenue have been reconciled to the nearest GAAP measure in the tables within this press release.

Adjusted EBITDA and Segment Adjusted EBITDA – Blade reports Adjusted EBITDA, which is a non-GAAP financial measure. This measure excludes non-cash items or certain transactions that are not indicative of ongoing Company operating performance and / or items that management does not believe are reflective of our ongoing core operations (as shown in the table below). Blade defines Segment Adjusted EBITDA as segment net income (loss) excluding non-cash items or certain transactions that management does not believe are reflective of our ongoing core operations.

Adjusted Unallocated Corporate Expenses – Blade defines Adjusted Unallocated Corporate Expenses as segment net loss attributable to our Corporate expenses and software development operating segment less non-cash items or certain transactions that are not indicative of ongoing Company operating performance and / or items that management does not believe are reflective of our ongoing core operations that cannot be allocated to either of our reporting segments. Adjusted Unallocated Corporate Expenses has the same meaning as Segment Adjusted EBITDA for our Corporate expenses and software development operating segment and is reconciled in the tables below under the caption “Reconciliation of Segment Net Income (loss) to Segment Adjusted EBITDA.”

Constant currency – The unaudited interim condensed consolidated financial statements included here are presented in U.S. dollars. However, Blade’s international operations give rise to fluctuations in foreign exchange rates. To compare results between periods as if exchange rates had remained constant period-over-period and allow change in revenue to be evaluated without the impact of foreign currency exchange rate fluctuations, Blade has included results in constant currency. These are calculated by applying the current period exchange rates to local currency reported results for both the current and prior year.

Corporate Expenses and Adjusted Corporate Expenses – Blade defines Corporate Expenses as total operating expenses excluding cost of revenue. Blade defines Adjusted Corporate Expenses as Corporate Expenses excluding non-cash items or certain transactions that are not indicative of ongoing Company operating performance and / or items that management does not believe are reflective of our ongoing core operations.

Flight Profit and Flight Margin – Blade defines Flight Profit as revenue less cost of revenue. Cost of revenue consists of flight costs paid to operators of aircraft and cars, landing fees, right-of-use (“ROU”) asset amortization and internal costs incurred in generating ground transportation revenue using the Company’s owned cars. Blade defines Flight Margin for a period as Flight Profit for the period divided by revenue for the same period. Blade believes that Flight Profit and Flight Margin provide a more accurate measure of the profitability of the Company’s flight and ground operations, as they focus solely on the direct costs associated with those operations.

Pro forma revenue – Pro forma revenue gives effect to revenue from acquisitions that occurred after the commensurate period of the prior year as if they had been acquired on the first day of the commensurate period of the prior year. Pro forma change in revenue is calculated as the difference between the current reported GAAP revenue and the comparative period pro forma revenue. Management believes that discussing pro forma revenue contributes to the understanding of Blade’s performance and trends, because it allows for comparisons of the current year period to that of prior years, normalized for the impact of acquisitions. Management believes that pro forma change in revenue assists in measuring the underlying revenue growth of our business as it stands as of the end of the current year period, which we believe provides insight into our then-current operations. Pro forma change in revenue does not represent organic revenue generated by our business as it stood at the beginning of the prior year period.

Financial Results

BLADE AIR MOBILITY, INC. CONDENSEDCONSOLIDATED BALANCE SHEETS (in thousands, except share data, unaudited)
	June 30, 2023				December 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	37,348			$	43,296
Restricted cash		2,045				1,127
Accounts receivable, net of allowance of $63 and $— at June 30, 2023 and December 31, 2022		22,525				10,877
Short-term investments		132,342				150,740
Prepaid expenses and other current assets		14,710				12,086
Total current assets		208,970				218,126
Non-current assets:
Property and equipment, net		2,909				2,037
Investment in joint venture		390				390
Intangible assets, net		43,933				46,365
Goodwill		39,797				39,445
Operating right-of-use asset		23,186				17,692
Other non-current assets		998				970
Total assets	$	320,183			$	325,025
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses	$	14,879			$	16,536
Deferred revenue		10,014				6,709
Operating lease liability, current		4,380				3,362
Total current liabilities		29,273				26,607
Non-current liabilities:
Warrant liability		8,979				7,083
Operating lease liability, long-term		19,833				14,970
Deferred tax liability		1,334				1,876
Total liabilities		59,419				50,536
Stockholders’ Equity
Preferred stock, $0.0001 par value, 2,000,000 shares authorized at June 30, 2023 and December 31, 2022. No shares issued and outstanding at June 30, 2023 and December 31, 2022.		—				—
Common stock, $0.0001 par value; 400,000,000 authorized; 73,169,003 and 71,660,617 shares issued at June 30, 2023 and December 31, 2022, respectively.		7				7
Additional paid in capital		383,629				375,873
Accumulated other comprehensive income		3,230				2,287
Accumulated deficit		(126,102	)			(103,678	)
Total stockholders’ equity		260,764				274,489
Total Liabilities and Stockholders’ Equity	$	320,183			$	325,025

BLADE AIR MOBILITY, INC. CONDENSEDCONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data, unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,
		2023				2022				2023				2022
Revenue	$	60,989			$	35,633			$	106,260			$	62,263
Operating expenses
Cost of revenue		50,620				30,522				88,727				54,229
Software development		1,440				1,062				2,563				1,897
General and administrative		18,410				12,144				34,667				26,122
Selling and marketing		2,728				1,638				5,339				3,438
Total operating expenses		73,198				45,366				131,296				85,686
Loss from operations		(12,209	)			(9,733	)			(25,036	)			(23,423	)
Other non-operating (expense) income
Interest income, net		2,077				455				4,031				719
Change in fair value of warrant liabilities		(2,462	)			19,266				(1,896	)			21,816
Realized loss from sales of short-term investments		(14	)			(1,576	)			(95	)			(1,712	)
Total other non-operating (expense) income		(399	)			18,145				2,040				20,823
(Loss) income before income taxes		(12,608	)			8,412				(22,996	)			(2,600	)
Income tax benefit		(376	)			—				(572	)			—
Net (loss) income	$	(12,232	)		$	8,412			$	(22,424	)		$	(2,600	)
Net (loss) income per share:
Basic	$	(0.17	)		$	0.11			$	(0.31	)		$	(0.04	)
Diluted	$	(0.17	)		$	0.10			$	(0.31	)		$	(0.04	)
Weighted-average number of shares outstanding:
Basic		73,169,003				71,051,523				72,584,138				70,913,597
Diluted		73,169,003				78,497,356				72,584,138				70,913,597

BLADE AIR MOBILITY, INC. CONDENSEDCONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,
		2023				2022				2023				2022
Cash Flows From Operating Activities:
Net (loss) income	$	(12,232	)		$	8,412			$	(22,424	)		$	(2,600	)
Adjustments to reconcile net loss to net cash and restricted cash used in operating activities:
Depreciation and amortization		1,810				1,155				3,462				2,300
Stock-based compensation		2,797				1,844				6,018				3,942
Change in fair value of warrant liabilities		2,462				(19,266	)			1,896				(21,816	)
Realized loss from sales of short-term investments		14				1,576				95				1,712
Realized foreign exchange loss/(gain)		—				—				5				(5	)
Accretion of interest income on held-to-maturity securities		(1,638	)			—				(3,024	)			—
Deferred tax benefit		(376	)			—				(572	)			—
Loss on disposal of property and equipment		—				65				—				65
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		(1,004	)			(2,197	)			(2,625	)			(3,902	)
Accounts receivable		(6,045	)			(3,659	)			(11,630	)			(4,124	)
Other non-current assets		18				(504	)			(24	)			(1,152	)
Operating right-of-use assets/lease liabilities		300				105				377				106
Accounts payable and accrued expenses		3,470				(1,361	)			87				1,275
Deferred revenue		2,227				2,220				3,307				2,524
Net cash used in operating activities		(8,197	)			(11,610	)			(25,052	)			(21,675	)
Cash Flows From Investing Activities:
Purchase of property and equipment		(744	)			(189	)			(1,390	)			(626	)
Purchase of short-term investments		(14	)			(188	)			(135	)			(453	)
Proceeds from sales of short-term investments		4,532				197,001				20,532				208,700
Purchase of held-to-maturity investments		—				—				(130,145	)			—
Proceeds from maturities of held-to-maturity investments		—				—				131,187				—
Net cash provided by investing activities		3,774				196,624				20,049				207,621
Cash Flows From Financing Activities:
Proceeds from the exercise of common stock options		—				58				54				79
Taxes paid related to net share settlement of equity awards		(20	)			(1,006	)			(101	)			(1,011	)
Net cash used in financing activities		(20	)			(948	)			(47	)			(932	)
Effect of foreign exchange rate changes on cash balances		17				4				20				7
Net (decrease) increase in cash and cash equivalents and restricted cash		(4,426	)			184,070				(5,030	)			185,021
Cash and cash equivalents and restricted cash – beginning		43,819				4,176				44,423				3,225
Cash and cash equivalents and restricted cash – ending	$	39,393			$	188,246			$	39,393			$	188,246
Reconciliation to the unaudited interim condensed consolidated balance sheets
Cash and cash equivalents	$	37,348			$	186,556			$	37,348			$	186,556
Restricted cash		2,045				1,690				2,045				1,690
Total	$	39,393			$	188,246			$	39,393			$	188,246

Key Metrics and Non-GAAP Financial Information

BLADE AIR MOBILITY, INC. DISAGGREGATED REVENUE BY PRODUCT LINE (in thousands, unaudited)
		Three Months Ended June 30,					Six Months Ended June 30,
		2023			2022			2023			2022
Passenger segment
Short Distance	$	19,184		$	10,963		$	29,609		$	15,166
Jet and Other		7,406			7,421			15,485			17,173
Total	$	26,590		$	18,384		$	45,094		$	32,339
Medical segment
MediMobility Organ Transport	$	34,399		$	17,249			61,166			29,924
Total	$	34,399		$	17,249		$	61,166		$	29,924
Total Revenue	$	60,989		$	35,633		$	106,260		$	62,263

BLADE AIR MOBILITY, INC. SEGMENT INFORMATION: REVENUE, FLIGHT PROFIT, FLIGHT MARGIN, ADJUSTED EBITDA WITH RECONCILIATION TO TOTAL ADJUSTED EBITDA (in thousands except percentages, unaudited)
		Three Months Ended June 30,							Six Months Ended June 30,
		2023				2022				2023				2022
Passenger	$	26,590			$	18,384			$	45,094			$	32,339
Medical		34,399				17,249				61,166				29,924
Total Revenue	$	60,989			$	35,633			$	106,260			$	62,263
Passenger	$	4,642			$	2,478			$	7,454			$	3,167
Medical		5,727				2,633				10,079				4,867
Total Flight Profit	$	10,369			$	5,111			$	17,533			$	8,034
Passenger		17.5	%			13.5	%			16.5	%			9.8	%
Medical		16.6	%			15.3	%			16.5	%			16.3	%
Total Flight Margin		17.0	%			14.3	%			16.5	%			12.9	%
Passenger	$	(2,075	)		$	(1,085	)		$	(5,130	)		$	(3,694	)
Medical		3,023				1,113				4,903				2,064
Total Segment Adjusted EBITDA		948				28				(227	)			(1,630	)
Adjusted unallocated corporate expenses and software development		(5,396	)			(6,147	)			(11,945	)			(12,216	)
Total Adjusted EBITDA	$	(4,448	)		$	(6,119	)		$	(12,172	)		$	(13,846	)

BLADE AIR MOBILITY, INC.
RECONCILIATION OF REPORTED REVENUE TO PRO FORMA REVENUE
(in thousands except percentages, unaudited)

The following unaudited pro forma financial information presents what our revenue would have been if the Blade Europe business had been acquired on April 1, 2022 and January 1, 2022 for the three months and six months ended June 30, 2022, respectively. As a result, pro forma revenue includes revenue generated during periods when we did not yet own the acquired business. This unaudited pro forma financial information should not be relied upon as being indicative of the historical results that would have been obtained if the acquisition had occurred on that date, nor the results that may be obtained in the future.

Three Months Ended June 30,
	Total				Short Distance				Jet and Other				MediMobility Organ Transport
Reported Revenue three months ended June 30, 2022	$	35,633			$	10,963			$	7,421			$	17,249
Impact of Blade Europe		7,106				7,106				—				—
Pro forma Revenue	$	42,739			$	18,069			$	7,421			$	17,249
Reported Revenue three months ended June 30, 2023	$	60,989			$	19,184			$	7,406			$	34,399
Pro forma change in revenue		42.7	%			6.2	%			(0.2	)%			99.4	%
Impact of foreign currency translation		0.4	%			0.9	%			**				**
Pro forma constant currency change in revenue		42.3	%			5.3	%			(0.2	)%			99.4	%
** Percentage not applicable
Six Months Ended June 30,
	Total				Short Distance				Jet and Other				MediMobility Organ Transport
Reported Revenue six months ended June 30, 2022	$	62,263			$	15,166			$	17,173			$	29,924
Impact of Blade Europe		12,400				12,400				—				—
Pro forma Revenue	$	74,663			$	27,566			$	17,173			$	29,924
Reported Revenue three months ended June 30, 2023	$	106,260			$	29,609			$	15,485			$	61,166
Pro forma change in revenue		42.3	%			7.4	%			(9.8	)%			104.4	%
Impact of foreign currency translation		(0.1	)%			(0.3	)%			**				**
Pro forma constant currency change in revenue		42.4	%			7.7	%			(9.8	)%			104.4	%
** Percentage not applicable

BLADE AIR MOBILITY, INC. SEATS FLOWN – ALL PASSENGER FLIGHTS (unaudited)
	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Seats flown – all passenger flights	41,637		28,241		70,187		46,735

BLADE AIR MOBILITY, INC. REVENUE, FLIGHT PROFIT, FLIGHT MARGIN, ADJUSTED CORPORATE EXPENSES, ADJUSTED EBITDA (in thousands except percentages, unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,
		2023				2022				2023				2022
GAAP Revenue	$	60,989			$	35,633			$	106,260			$	62,263
GAAP Cost of Revenue		50,620				30,522				88,727				54,229
Flight Profit		10,369				5,111				17,533				8,034
Flight Margin		17.0	%			14.3	%			16.5	%			12.9	%
Adjusted Corporate Expense		14,817				11,230				29,705				21,880
Adjusted Corporate Expense as a percentage of Revenue		24.3	%			31.5	%			28.0	%			35.1	%
Adjusted EBITDA	$	(4,448	)		$	(6,119	)		$	(12,172	)		$	(13,846	)
Adjusted EBITDA as a percentage of Revenue		(7.3	)%			(17.2	)%			(11.5	)%			(22.2	)%

BLADE AIR MOBILITY, INC. RECONCILIATION OF REVENUE LESS COST OF REVENUE TO FLIGHT PROFIT AND LOSS FROM OPERATIONS (in thousands except percentages, unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,
		2023				2022				2023				2022
Revenue	$	60,989			$	35,633			$	106,260			$	62,263
Cost of revenue (1)		(50,620	)			(30,522	)			(88,727	)			(54,229	)
Flight Profit	$	10,369			$	5,111			$	17,533			$	8,034
Flight Margin		17.0	%			14.3	%			16.5	%			12.9	%
Flight Profit	$	10,369			$	5,111			$	17,533			$	8,034
Reconciling items:
Software development		(1,440	)			(1,062	)			(2,563	)			(1,897	)
General and administrative		(18,410	)			(12,144	)			(34,667	)			(26,122	)
Selling and marketing		(2,728	)			(1,638	)			(5,339	)			(3,438	)
Loss from operations	$	(12,209	)		$	(9,733	)		$	(25,036	)		$	(23,423	)

__________
(1) Cost of revenue consists of flight costs paid to operators of aircraft and cars, landing fees, ROU asset amortization and internal costs incurred in generating organ ground transportation revenue using the Company’s owned cars.

BLADE AIR MOBILITY, INC. RECONCILIATION OF TOTAL OPERATING EXPENSES TO ADJUSTED CORPORATE EXPENSES (in thousands except percentages, unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,
		2023				2022				2023				2022
Revenue	$	60,989			$	35,633			$	106,260			$	62,263
Total operating expenses		73,198				45,366				131,296				85,686
Subtract:
Cost of revenue		50,620				30,522				88,727				54,229
Corporate Expenses	$	22,578			$	14,844			$	42,569			$	31,457
Corporate Expenses as percentage of Revenue		37.0	%			41.7	%			40.1	%			50.5	%
Adjustments to reconcile Corporate Expenses to Adjusted Corporate Expenses
Subtract:
Depreciation and amortization		1,810				1,155				3,462				2,300
Stock-based compensation		2,797				1,844				6,018				3,942
Legal and regulatory advocacy fees (1)		—				164				423				1,911
Executive severance costs		119				—				265				—
SOX readiness costs		35				—				35				—
Contingent consideration compensation (earn-out) (2)		3,000				—				2,661				—
M&A transaction costs		—				451				—				1,424
Adjusted Corporate Expenses	$	14,817			$	11,230			$	29,705			$	21,880
Adjusted Corporate Expenses as percentage of Revenue		24.3	%			31.5	%			28.0	%			35.1	%

__________
(1) Represents certain legal and regulatory advocacy fees for matters (primarily the proposed restrictions at East Hampton Airport and the potential operational restrictions on large jet aircraft at Westchester Airport) that we do not consider representative of legal and regulatory advocacy costs that we will incur from time to time in the ordinary course of our business. It is worth noting that we do not anticipate incurring any further legal fees related to the Westchester litigation.
(2) Represents contingent consideration compensation of $3,000 in connection with the Trinity acquisition in respect of 2023 results and a $339 credit recorded in connection with the settlement of the equity-based portion of Trinity’s contingent consideration that was paid in the first quarter of 2023 in respect of 2022 results.

BLADE AIR MOBILITY, INC. RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (in thousands except percentages, unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,
		2023				2022				2023				2022
Net (loss) income	$	(12,232	)		$	8,412			$	(22,424	)		$	(2,600	)
Depreciation and amortization		1,810				1,155				3,462				2,300
Stock-based compensation		2,797				1,844				6,018				3,942
Change in fair value of warrant liabilities		2,462				(19,266	)			1,896				(21,816	)
Realized loss from sales of short-term investments		14				1,576				95				1,712
Interest income, net		(2,077	)			(455	)			(4,031	)			(719	)
Income tax benefit		(376	)			—				(572	)			—
Legal and regulatory advocacy fees (1)		—				164				423				1,911
Executive severance costs		119				—				265				—
SOX readiness costs		35				—				35				—
Contingent consideration compensation (earn-out) (2)		3,000				—				2,661				—
M&A transaction costs		—				451				—				1,424
Adjusted EBITDA	$	(4,448	)		$	(6,119	)		$	(12,172	)		$	(13,846	)
Adjusted EBITDA as a percentage of Revenue		(7.3	)%			(17.2	)%			(11.5	)%			(22.2	)%

__________
(1) Represents certain legal and regulatory advocacy fees for matters (primarily the proposed restrictions at East Hampton Airport and the potential operational restrictions on large jet aircraft at Westchester Airport) that we do not consider representative of legal and regulatory advocacy costs that we will incur from time to time in the ordinary course of our business. It is worth noting that we do not anticipate incurring any further legal fees related to the Westchester litigation.
(2) Represents contingent consideration compensation of $3,000 in connection with the Trinity acquisition in respect of 2023 results and a $339 credit recorded in connection with the settlement of the equity-based portion of Trinity’s contingent consideration that was paid in the first quarter of 2023 in respect of 2022 results.

BLADE AIR MOBILITY, INC. RECONCILIATION OF SEGMENT NET INCOME (LOSS) TO SEGMENT ADJUSTED EBITDA (in thousands, unaudited)
		Three Months Ended June 30, 2023												Three Months Ended June 30, 2022
		Passenger				Medical				Unallocated Corporate expenses and software development				Passenger				Medical			Unallocated Corporate expenses and software development
Segment net income (loss)		$	(3,837	)		$	(497	)		$	(7,898	)		$	(2,326	)		$	694		$	10,044
Reconciling items:
Depreciation and amortization			1,363				397				50				744				374			37
Stock-based compensation			352				123				2,322				333				45			1,466
Change in fair value of warrant liabilities			—				—				2,462				—				—			(19,266	)
Realized loss from sales of short-term investments			—				—				14				—				—			1,576
Interest income, net			—				—				(2,077	)			—				—			(455	)
Income tax benefit			—				—				(376	)			—				—			—
Legal and regulatory advocacy fees (1)			—				—				—				164				—			—
Executive severance costs			47				—				72				—				—			—
SOX readiness costs			—				—				35				—				—			—
Contingent consideration compensation (earn-out) (2)			—				3,000				—				—				—			—
M&A transaction costs			—				—				—				—				—			451
Segment Adjusted EBITDA		$	(2,075	)		$	3,023			$	(5,396	)		$	(1,085	)		$	1,113		$	(6,147	)

 

		Six Months Ended June 30, 2023											Six Months Ended June 30, 2022
		Passenger				Medical			Unallocated Corporate expenses and software development				Passenger				Medical			Unallocated Corporate expenses and software development
Segment net income (loss)		$	(8,955	)		$	1,140		$	(14,609	)		$	(7,842	)		$	1,216		$	4,026
Reconciling items:
Depreciation and amortization			2,497				863			102				1,478				750			72
Stock-based compensation			712				239			5,067				759				98			3,085
Change in fair value of warrant liabilities			—				—			1,896				—				—			(21,816	)
Realized loss from sales of short-term investments			—				—			95				—				—			1,712
Interest income, net			—				—			(4,031	)			—				—			(719	)
Income tax benefit			—				—			(572	)			—				—			—
Legal and regulatory advocacy fees (1)			423				—			—				1,911				—			—
Executive severance costs			193				—			72				—				—			—
SOX readiness costs			—				—			35				—				—			—
Contingent consideration compensation (earn-out) (2)			—				2,661			—				—				—			—
M&A transaction costs			—				—			—				—				—			1,424
Segment Adjusted EBITDA		$	(5,130	)		$	4,903		$	(11,945	)		$	(3,694	)		$	2,064		$	(12,216	)

^{______________}
(1) Represents certain legal and regulatory advocacy fees for matters (primarily the proposed restrictions at East Hampton Airport and the potential operational restrictions on large jet aircraft at Westchester Airport) that we do not consider representative of legal and regulatory advocacy costs that we will incur from time to time in the ordinary course of our business. It is worth noting that we do not anticipate incurring any further legal fees related to the Westchester litigation.
(2) Represents contingent consideration compensation of $3,000 in connection with the Trinity acquisition in respect of 2023 results and a $339 credit recorded in connection with the settlement of the equity-based portion of Trinity’s contingent consideration that was paid in the first quarter of 2023 in respect of 2022 results.

BLADE AIR MOBILITY, INC. LAST TWELVE MONTHS DISAGGREGATED REVENUE BY PRODUCT LINE (in thousands, unaudited)
					Three Months Ended
		Last Twelve Months			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
Product Line:
Short Distance		$	59,429		$	19,184		$	10,425		$	9,418		$	20,402
Jet and Other			27,667			7,406			8,079			7,081			5,101
MediMobility Organ Transport			103,021			34,399			26,767			21,636			20,219
Total Revenue		$	190,117		$	60,989		$	45,271		$	38,135		$	45,722