Tribal Rides International Corp. 2023 10-K Review

Introduction

Tribal Rides International Corp., a Nevada-based company, is at the forefront of the transportation technology industry, focusing on the development of autonomous vehicle technology and ride-sharing solutions. The company aims to disrupt the current ride-sharing paradigms with its innovative cloud-based Systems as a Solution (SaaS) interface and mobile app. This review delves into the company's 2023 10-K filing, analyzing its business model, financial performance, and potential risks.

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Business Overview

Tribal Rides International Corp. was initially incorporated as Trimax Consulting, Inc. in 2014, and has since evolved into a transportation technology company. The company is in the research and development stage, focusing on creating a mobility ecosystem and marketplace for autonomous vehicles. Its primary product is a cloud-based SaaS interface designed to enhance the ride-sharing experience by allowing users to create personalized transportation experiences, form groups, and conduct financial transactions securely.

The company targets the approximately ten to fourteen million shared-ride drivers in the United States as potential customers for its SaaS services. It also aims to capitalize on the growing autonomous vehicle market, which is projected to generate significant global revenue in the coming years.

Financial Performance

Income Statement

For the fiscal year ending December 31, 2023, Tribal Rides reported no revenues, consistent with its status as a company in the development stage. The operating expenses for the year were $185,914, a significant decrease from $1,098,690 in 2022. This reduction was primarily due to the absence of stock-based compensation expenses that were present in the previous year.

Balance Sheet

As of December 31, 2023, the company had total assets of $178,157, compared to $137,652 in 2022. The increase in assets was mainly due to the capitalization of software development costs. However, the company also reported an increase in total liabilities to $882,318 from $566,023 in 2022, primarily due to increased accounts payable and accrued liabilities.

Cash Flow

The company used $4,213 in cash for operating activities in 2023, a significant reduction from $154,504 in 2022. This decrease was due to lower operating expenses and the absence of significant non-cash charges. The company did not generate any cash from investing activities and relied on related party advances and note issuances for financing.

Net Loss

Tribal Rides reported a net loss of $185,918 for 2023, a substantial improvement from the $1,491,513 loss in 2022. The reduction in net loss was primarily due to lower operating expenses and the absence of significant non-cash charges related to stock-based compensation and debt extinguishment.

Risk Factors

Tribal Rides faces several risks, including its reliance on raising additional capital to continue operations, the competitive nature of the ride-sharing and autonomous vehicle markets, and the potential for regulatory challenges. The company also operates in a rapidly evolving technological landscape, which presents both opportunities and risks.

Conclusion

Tribal Rides International Corp. is positioned in a promising yet challenging industry. While the company has made strides in developing its technology, it remains in the early stages of commercialization. The lack of revenue and reliance on external financing are significant concerns. However, the company's focus on the burgeoning autonomous vehicle market and its innovative SaaS platform could provide substantial growth opportunities if successfully executed.

Investors should weigh the potential rewards against the inherent risks associated with investing in a development-stage company. Tribal Rides' ability to secure additional funding and successfully bring its products to market will be critical to its future success.

Investment Score

Based on the analysis of Tribal Rides International Corp.'s 2023 10-K filing, the company receives an investment score of 3.5 out of 10. This score reflects the company's potential in the autonomous vehicle market, tempered by its current financial challenges and the risks associated with its development-stage status.