10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q/A

(Amendment No. 1)

Date of Original Filing:  August 10, 2012

(Mark One)

x   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2012

o   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission File Number:  001-13387

AeroCentury Corp.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	94-3263974
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

1440 Chapin Avenue, Suite 310

Burlingame, California 94010

(Address of Principal Executive Offices)

(650) 340-1888

(Registrant’s Telephone Number Including Area Code)

None

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes xNo  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required submit and post such files).  

Yes xNo  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Check one):

Large accelerated filer  oAccelerated filer  o

Non-accelerated filer  oSmaller reporting company  x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  oNo  x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:  As of August 10, 2012 the issuer had 1,606,557shares of common stock, par value $0.001 per share, issued, of which 63,300 are held as treasury stock.

EXPLANATORY NOTE:   The sole purpose of this Amendment No. 1 (this "Amendment") to AeroCentury Corp.'s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2012, filed with the Securities and Exchange Commission on August 10, 2012 (the "Form 10-Q"), is to furnish Exhibit 101, which provides the XBRL (eXtensible Business Reporting Language) Interactive Data Files for the financial statements and notes included in Part I, Item 1 of the Form 10-Q.  No other modifications or changes have been made to the Form 10-Q. This Amendment speaks as of the original filing date of the Form 10-Q; does not reflect events that may have occurred subsequent to the original filing date; and does not modify or update in any way disclosures made in the original Form 10-Q. 

Pursuant to Rule 406T of  Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 and 12 of the Securities Act of 1933, as amended; are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended; and otherwise are not subject to the liability under those sections. 

Item 6.Exhibits

Exhibit Number	Description
31.1#	Certification of Neal D. Crispin, Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2#	Certification of Toni M. Perazzo, Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*#	Certification of Neal D. Crispin, Chief Executive Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*#	Certification of Toni M. Perazzo, Chief Financial Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS**	XBRL Instance Document
101.SCH**	XBRL Taxonomy Extension Schema Document
101.CAL**	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB**	XBRL Taxonomy Extension Label Linkbase DocumentXBRL
101.DEF**	Taxonomy Extension Definition Linkbase Document
101.PRE**	XBRL Taxonomy Extension Presentation Linkbase Document

* These certificates are furnished to, but shall not be deemed to be filed with, the Securities and Exchange Commission.

**In accordance with Regulation S-T, the XBRL-related information in Exhibit No. 101 to this Quarterly Report on Form 10Q shall be deemed furnished herewith and not filed.

#These exhibits were previously included in AeroCentury Corp.'s Quarrterly Report on Form 10Q for the quarterly period ended June 30, 2012, filed with the Securities and Exchange Commission on August 10, 2012.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	AEROCENTURY CORP.
Date: September 6, 2012	By:	/s/ Toni M. Perazzo
		Name: Toni M. Perazzo
		Title: Senior Vice President-Finance and
		Chief Financial Officer

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Computation of Earnings/(Loss) Per Share (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Basic and diluted earning/loss per share [Abstract]
Net income/(loss)	$ 960,500	$ (149,300)	$ 2,285,500	$ (2,428,100)
Weighted average shares outstanding for the period (in shares)	1,543,257	1,543,257	1,543,257	1,543,257
Dilutive effect of warrants (in shares)	20,323	0	14,553	0
Weighted average diluted shares used in calculation of diluted earnings/(loss) per share (in shares)	1,563,580	1,543,257	1,557,810	1,543,257
Basic (in dollars per share)	$ 0.62	$ (0.10)	$ 1.48	$ (1.57)
Diluted earnings/(loss) per share (in dollars per share)	$ 0.61	$ (0.10)	$ 1.47	$ (1.57)
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially outstanding shares was not included in the calculation of diluted loss per share (in shares)		21,651		34,436

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Maintenance and Accrued Costs

6 Months Ended

Jun. 30, 2012

Maintenance and Accrued Costs [Abstract]

Maintenance and Accrued Costs

3.     Maintenance and Accrued Costs

Maintenance costs under the Company's triple net operating leases are generally the responsibility of the lessees.  Most of the Company's leases require payment of maintenance reserves, which are based upon lessee-reported usage and billed monthly, and are intended to accumulate funds that are expected to cover most or all of the cost of the lessees' performance of certain maintenance obligations under the leases.  Some of these payments for maintenance reserves are refundable, and some are non-refundable.

Refundable maintenance reserves received by the Company are accounted for as a liability, which is reduced when maintenance work is performed during the lease and reimbursement to the lessee is paid. Maintenance reserves that are refundable to the lessee are refunded after all return conditions and, in some cases, any other payments due under the lease are satisfied.  Any refundable reserves retained by the Company to satisfy return conditions are recorded as revenue when the aircraft is returned.

Non-refundable maintenance reserves are recorded as maintenance reserves revenue (assuming cash is received or collections are reasonably assured).

The timing difference between recording maintenance reserves revenue as usage occurs and recording maintenance expense as maintenance is performed can have material effects on the volatility of reported earnings.

The accompanying balance sheets reflect refundable maintenance payments billed to lessees based on usage and accrued maintenance costs for off-lease aircraft and lessee maintenance claims for non-refundable maintenance reserves as liabilities.  At June30, 2012 and December 31, 2011, the Company's maintenance reserves and accruals consisted of the following:

	June 30, 2012		December 31, 2011
Refundable maintenance reserves	$	6,265,600	$	4,801,300
Accrued maintenance costs		1,616,000		1,013,400
	$	7,881,600	$	5,814,700

Additions to and deductions from the Company's accrued maintenance costs during the six months ended June 30, 2012 and 2011 for aircraft maintenance were as follows:

	For Six Months Ended June 30,
	2012			2011
Balance, beginning of period	$	1,013,400		$	2,446,800
Additions:
Charged to expense		2,378,500			7,909,000
Reversals of previously accrued maintenance costs		(11,400	)		(401,300	)
Total maintenance expense		2,367,100			7,507,700
Capital equipment		64,800			242,600
Accrued claims related to refundable maintenance reserves		578,100			81,200
Prepaid maintenance		32,900			201,100
Total additions		3,042,900			8,032,600
Deductions:
Payments		1,960,500			6,915,500
Other		479,800			607,000
Total deductions		2,440,300			7,522,500
Net increase in accrued maintenance costs		602,600			510,100
Balance, end of period	$	1,616,000		$	2,956,900

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Aircraft and Aircraft Engines Held for Lease

6 Months Ended

Jun. 30, 2012

Aircraft and Aircraft Engines Held for Lease [Abstract]

Aircraft and Aircraft Engines Held for Lease

2.     Aircraft and Aircraft Engines Held for Lease

At June 30, 2012 and December 31, 2011, the Company's aircraft and aircraft engines, which were on lease or held for lease, consisted of the following.   

	June30, 2012					December 31, 2011
	Number		% of net			Number		% of net
Model	owned		book value			owned		book value
Bombardier Dash-8-300		9		25	%		8		23	%
Fokker 100		7		23	%		7		28	%
Bombardier Dash-8-Q400		3		19	%		1		8	%
Fokker 50		14		15	%		14		18	%
General Electric CF34-8E5 engine		3		7	%		3		8	%
Saab 340B		6		6	%		6		6	%
Saab 340B Plus		2		3	%		2		4	%
deHavilland DHC-8-100		1		1	%		2		4	%
deHavilland DHC-6		1		1	%		1		1	%
Saab 340A		1		-			1		-

Net book value at June 30, 2012 and December 31, 2011 excludes the Company's Saab 340A aircraft, which is subject to a finance lease.

During the three months ended June 30, 2012, the Company purchased two Bombardier Dash-8-Q400 aircraft on lease to a current customer in Africa, with lease terms expiring in June 2017.   During the same period, the Company sold a deHavilland DHC-8-100 aircraft and recorded a gain of approximately $873,500.  Although the Company executed a purchase agreement in May 2012 to sell another of the Company's deHavilland DHC-8-100 aircraft upon the scheduled expiration of the lease of the aircraft, the current lessee of that aircraft has failed to return the aircraft to the Company.  As a result, in July 2012, the Company and the buyer terminated the purchase agreement in July 2012.

In April 2012, one of the Company's Saab 340B aircraft was returned to the Company at lease expiration, pursuant to the return conditions of the lease.  

In April 2012, the Company and one of its customers in the Caribbean signed a lease for one of the Company's off-lease Fokker 100 aircraft.  The aircraft was delivered in May 2012 and is subject to a 36-month lease.  

In April 2012, the lessee of four of the Company's Saab 340B aircraft declared bankruptcy, rejected the leases for the aircraft and returned them to the Company.  In May 2012, another customer, which leased six of the Company's Fokker 50 aircraft, declared bankruptcy and subsequently returned the aircraft to the Company.  In connection with the second bankruptcy, the Company recorded a bad debt expense of $310,300.

At June30, 2012, fourteen of the Company's assets, comprised of six Fokker 50 aircraft, six Saab 340B aircraft and two Fokker 100 aircraft, were off lease.  As discussed in Note 7, one of the Saab 340B aircraft was delivered to an existing customer in July 2012.  The Company is seeking re-lease opportunities for the other off-lease aircraft, which represented 17% of the Company's aircraft net book value at June 30, 2012.

At June30, 2012, the Company had an allowance for doubtful accounts totaling $1,924,400 related to one customer for the amounts owed in excess of payments received and the security deposits held by the Company.  In early 2012, the Company and the customer signed a memorandum of understanding regarding the arrearages owed to the Company.  The memorandum of understanding specifies that the customer will pay $1,270,000 of the arrearages over three years, with the balance forgiven upon receipt of all payments due under the agreement. Since collectability of this receivable is not reasonably assured, the Company will record these payments as revenue on a cash basis when received.

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Condensed Balance Sheets (Unaudited) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Assets:
Cash and cash equivalents	$ 3,215,900	$ 995,500
Accounts receivable, including deferred rent of $1,822,600 and $1,923,300, net of allowance for doubtful accounts of $1,924,400 at June 30, 2012 and December 31, 2011, respectively	3,335,800	2,936,100
Finance lease receivable	1,185,400	1,271,400
Aircraft and aircraft engines held for lease, net of accumulated depreciation of $49,814,100 and $48,935,200 at June 30, 2012 and December 31, 2011, respectively	144,650,200	124,245,000
Prepaid expenses and other	2,011,400	1,378,000
Total assets	154,398,700	130,826,000
Liabilities:
Accounts payable and accrued expenses	372,600	368,100
Notes payable and accrued interest	82,925,000	65,672,700
Maintenance reserves and accrued maintenance costs	7,881,600	5,814,700
Security deposits	6,521,300	5,607,300
Unearned revenues	627,700	558,200
Deferred income taxes	13,072,500	12,094,400
Taxes payable	22,300	20,400
Total liabilities	111,423,000	90,135,800
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value, 2,000,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $0.001 par value, 10,000,000 shares authorized, 1,606,557 shares issued and outstanding	1,600	1,600
Paid-in capital	14,780,100	14,780,100
Retained earnings	28,698,100	26,412,600
Shareholders equity before treasury stock	43,479,800	41,194,300
Treasury stock at cost, 63,300 shares	(504,100)	(504,100)
Total stockholders' equity	42,975,700	40,690,200
Total liabilities and stockholders' equity	$ 154,398,700	$ 130,826,000

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Condensed Statements of Cash Flows (Unaudited) (Parenthetical) (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Condensed Statements of Cash Flows [Abstract]
Interest paid	$ 741,600	$ 1,369,500
Income taxes paid	$ 2,100	$ 0

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Maintenance and Accrued Costs (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
Maintenance and Accrued Costs [Abstract]
Refundable maintenance reserves	$ 6,265,600	$ 4,801,300
Accrued maintenance costs	1,616,000	1,013,400	2,956,900	2,446,800
Total	$ 7,881,600	$ 5,814,700

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Notes Payable and Accrued Interest (Details) (USD $)	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Notes payable and accrued interest [Abstract]
Credit Facility principal	$ 82,800,000	$ 65,200,000
Credit Facility accrued interest	125,000	472,700
Notes payable and accrued interest	82,925,000	65,672,700
Warrant [Member]
Class of Warrant or Right [Line Items]
Maximum number of shares called through warrant (in shares)	81,224
Class of warrant or right exercise price (in dollars per share)	$ 8.75
Credit Facility [Member]
Notes payable and accrued interest [Abstract]
Credit facility maximum borrowing capacity	90,000,000	90,000,000
Expiration date of credit facility	Apr. 29, 2013
Unused amount of the credit facility	7,200,000	24,800,000
Available borrowing capacity	$ 8,887,900	$ 17,388,300
Weighted average interest rate on credit facility (in hundredths)	4.00%	4.17%

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Organization and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2012

Organization and Summary of Significant Accounting Policies [Abstract]

Organization and Summary of Significant Accounting Policies

1.      Organization and Summary of Significant Accounting Policies

(a)The Company and Basis of Presentation

AeroCentury Corp. (the "Company"), a Delaware corporation incorporated in 1997, acquires used regional aircraft and engines for lease to foreign and domestic regional carriers.

The condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.  Operating results for the six-month period ended June 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012.

For further information, refer to the financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2011.

 (b)Use of Estimates

The Company's financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP").  The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.  The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable for making judgments that are not readily apparent from other sources.

The most significant estimates with regard to these financial statements are the residual values of the aircraft, the useful lives of the aircraft, the amount and timing of cash flow associated with each aircraft that are used to evaluate whether assets are impaired, accrued maintenance costs, the estimated fair value of financial instruments, accounting for income taxes, and the amounts recorded as allowances for doubtful accounts.

(c)Fair Value Measurements

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs, to the extent possible. The fair value hierarchy under GAAP is based on three levels of inputs.

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis

The following table shows by level, within the fair value hierarchy, the fair value of the Company's assets that are measured and recorded at fair value on a recurring basis:

	June 30, 2012								December 31, 2011
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Money market funds included in cash and cash equivalents	$	2,737,200	$	2,737,200	$	-	$	-	$	736,000	$	736,000	$	-	$	-
Total	$	2,737,200	$	2,737,200	$	-	$	-	$	736,000	$	736,000	$	-	$	-

As of June 30, 2012 and December31, 2011, there were no liabilities required to be measured and recorded at fair value on a recurring basis.

Assets Measured and Recorded at Fair Value on a Nonrecurring Basis

The Company determines fair value of long-lived assets held and used, such as aircraft and aircraft engines held for lease, by reference to independent appraisals, quoted market prices (e.g., offers to purchase) and other factors. An impairment charge is recorded when the Company believes that the carrying value of an asset will not be recovered through future net cash flows and that the carrying value exceeds its fair value. During the three months and six months ended June30, 2012 and 2011, there was no recorded write-down of long-lived assets.

Fair Value of Other Financial Instruments

The Company's financial instruments, other than cash and cash equivalents, consist principally of accounts receivable, accounts payable and amounts borrowed under its credit facility (the "Credit Facility").  The fair value of accounts receivable and accounts payable approximates the carrying value of these financial instruments because of their short-term nature.

Borrowings under the Company's Credit Facility bear floating rates of interest that reset periodically to a market benchmark rate plus a credit margin.  The Company believes the effective interest rate of this debt agreement approximates current market rates for such indebtedness at the balance sheet date.  The Company believes the carrying amount of its floating rate debt at the balance sheet dates approximates its fair value, which was estimated by calculation of the present value of future repayment obligations using estimates of borrowing rates that would be available to the Company for such an instrument.  

(d)Finance Leases

The lease for one of the Company's aircraft contains a purchase option for the lessee for an amount substantially below the estimated residual value of the asset at the date for purchase under such option.  Consequently, the Company considers the purchase option to be a "bargain purchase option" and has classified such lease as a finance lease for financial accounting purposes.  The Company also had a second aircraft subject to a finance lease that terminated in June 2011 in connection with the disposal of the asset.  The Company does not include the value, purchase price or accumulated depreciation of finance lease assets on its balance sheet.  Instead, for any finance lease, the discounted present value of (i) future minimum lease payments (including the bargain purchase option) and (ii) any residual value not subject to a bargain purchase option are reported as a finance lease receivable.  Rental revenue and depreciation expense are not recognized on finance leases.  Rather, the Company accrues interest on the balance of the finance lease receivable based on the interest rate inherent in the lease.  The Company recognized interest earned on finance leases as "other income" in the amount of $22,600 and $50,000 in the quarters ended June 30, 2012 and 2011, respectively, and $46,000 and $194,300 in the six months ended June 30, 2012 and 2011, respectively.

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Condensed Balance Sheets (Unaudited) (Parenthetical) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Assets:
Accounts receivable, deferred rent	$ 1,822,600	$ 1,923,300
Accounts receivable, allowance for doubtful accounts	1,924,400	1,924,400
Aircraft and aircraft engines held for lease, accumulated depreciation	$ 49,814,100	$ 48,935,200
Stockholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in shares)	2,000,000	2,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	10,000,000	10,000,000
Common stock, issued (in shares)	1,606,557	1,606,557
Common stock, outstanding (in shares)	1,606,557	1,606,557
Treasury stock at cost (in shares)	63,300	63,300

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Maintenance and Accrued Costs (Tables)

6 Months Ended

Jun. 30, 2012

Maintenance and Accrued Costs [Abstract]

Summary of the company's maintenance reserves and accruals

The accompanying balance sheets reflect refundable maintenance payments billed to lessees based on usage and accrued maintenance costs for off-lease aircraft and lessee maintenance claims for non-refundable maintenance reserves as liabilities.  At June30, 2012 and December 31, 2011, the Company's maintenance reserves and accruals consisted of the following:

	June 30, 2012		December 31, 2011
Refundable maintenance reserves	$	6,265,600	$	4,801,300
Accrued maintenance costs		1,616,000		1,013,400
	$	7,881,600	$	5,814,700

Additions to and deductions from the company's accrued maintenance cost for aircraft maintenance

Additions to and deductions from the Company's accrued maintenance costs during the six months ended June 30, 2012 and 2011 for aircraft maintenance were as follows:

	For Six Months Ended June 30,
	2012			2011
Balance, beginning of period	$	1,013,400		$	2,446,800
Additions:
Charged to expense		2,378,500			7,909,000
Reversals of previously accrued maintenance costs		(11,400	)		(401,300	)
Total maintenance expense		2,367,100			7,507,700
Capital equipment		64,800			242,600
Accrued claims related to refundable maintenance reserves		578,100			81,200
Prepaid maintenance		32,900			201,100
Total additions		3,042,900			8,032,600
Deductions:
Payments		1,960,500			6,915,500
Other		479,800			607,000
Total deductions		2,440,300			7,522,500
Net increase in accrued maintenance costs		602,600			510,100
Balance, end of period	$	1,616,000		$	2,956,900

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Document and Entity Information	6 Months Ended
	Jun. 30, 2012	Aug. 10, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	AEROCENTURY CORP
Entity Central Index Key	0001036848
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		1,606,557
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2012

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Notes Payable and Accrued Interest (Tables)

6 Months Ended

Jun. 30, 2012

Notes Payable and Accrued Interest [Abstract]

Notes payable and accrued interest

At June 30, 2012 and December 31, 2011, the Company's notes payable and accrued interest consisted of the following:

	June 30,		December 31,
	2012		2011
Credit Facility principal	$	82,800,000	$	65,200,000
Credit Facility accrued interest		125,000		472,700
	$	82,925,000	$	65,672,700

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Condensed Statements of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenues and other income:
Operating lease revenue, net	$ 5,689,000	$ 4,662,500	$ 11,595,900	$ 8,866,900
Maintenance reserves revenue, net	913,200	634,900	1,763,000	1,175,300
Gain on disposal of assets and other income	901,000	1,457,800	927,600	1,607,400
Total Income	7,503,200	6,755,200	14,286,500	11,649,600
Expenses:
Depreciation	1,492,700	1,422,800	2,979,500	2,661,500
Maintenance	1,612,600	2,939,700	2,367,100	7,507,700
Interest	1,153,100	965,600	2,225,000	1,932,800
Management fees	1,006,700	931,000	1,993,400	1,876,400
Professional fees, general and administrative and other	294,000	440,700	627,900	765,800
Insurance	186,600	300,500	319,300	589,200
Bad debt expense	310,300	0	310,300	0
Total expenses	6,056,000	7,000,300	10,822,500	15,333,400
Income/(loss) before income tax provision/(benefit)	1,447,200	(245,100)	3,464,000	(3,683,800)
Income tax provision/(benefit)	486,700	(95,800)	1,178,500	(1,255,700)
Net income/(loss)	$ 960,500	$ (149,300)	$ 2,285,500	$ (2,428,100)
Earnings/(loss) per share:
Basic (in dollars per share)	$ 0.62	$ (0.10)	$ 1.48	$ (1.57)
Diluted (in dollars per share)	$ 0.61	$ (0.10)	$ 1.47	$ (1.57)
Weighted average shares used in earnings/(loss) per share computations:
Basic (in shares)	1,543,257	1,543,257	1,543,257	1,543,257
Diluted (in shares)	1,563,580	1,543,257	1,557,810	1,543,257

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Related Party Transactions

6 Months Ended

Jun. 30, 2012

Related Party Transactions [Abstract]

Related Party Transactions

6.Related Party Transactions

The Company's portfolio of leased aircraft assets is managed and administered under the terms of a management agreement with JetFleet Management Corp. ("JMC"), which is an integrated aircraft management, marketing and financing business and a subsidiary of JetFleet Holding Corp. ("JHC").  Certain officers of the Company are also officers of JHC and JMC and hold significant ownership positions in both JHC and the Company. Under the Management Agreement, JMC receives a monthly management fee based on the net asset value of the assets under management. JMC also receives an acquisition fee for locating assets for the Company, provided that the aggregate purchase price, including chargeable acquisition costs and any acquisition fee, does not exceed the fair market value of the asset based on appraisal, and may receive a remarketing fee in connection with the sale or re-lease of the Company's assets. The Company recorded management fees of $1,006,700 and $931,000 during the quarters ended June 30, 2012 and 2011, respectively, and $1,993,400 and $1,876,400 during the six months ended June 30, 2012 and 2011, respectively. The Company paid acquisition fees totaling $604,000 and $0 to JMC during the quarters ended June 30, 2012 and 2011 and $894,000 and $0 during the six months ended June 30, 2012 and 2011, which were included in the cost basis of the asset purchased. The Company paid remarketing fees of $144,000 and $131,500 to JMC during the quarters and six months ended June 30, 2012 and 2011, respectively.

In August 2009, the Company entered into an agreement with Lee G. Beaumont in which Mr. Beaumont assigned to the Company his rights to purchase certain aircraft engines from an unrelated third party seller.  In January 2012, Mr. Beaumont became a "related person" with respect to the Company due to his acquisition on the open market of shares representing over 5% of the Company's Common Stock.  During the six months ended June 30, 2012 and 2011, the Company made no payments to Mr. Beaumont.  A balance of $66,700 is payable in the third quarter of 2012.

In connection with its Subordinated Notes financing entered into 2007 and 2008, the Company issued warrants to purchase up to 81,224 shares of the Company's common stock.  The warrants became exercisable on December 30, 2011, and the shares issuable upon exercise of the warrants constitute over 5% of the common stock of the Company.  As a result, the Subordinated Notes purchasers became "related persons" with respect to the Company.   During the six months ended June 30, 2012 and 2011, the Company made interest payments totaling $0 and $89,900, respectively, to the Subordinated Notes purchasers.

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Computation of Earnings/(Loss) Per Share

6 Months Ended

Jun. 30, 2012

Computation of Earnings/(Loss) Per Share [Abstract]

Computation of Earnings/(Loss) Per Share

5.      Computation of Earnings/(Loss) Per Share

Basic and diluted earnings/(loss) per share are calculated as follows:

	For the Six Months Ended June 30,					For the Three Months Ended June 30,
	2012		2011			2012		2011
Net income/(loss)	$	2,285,500	$	(2,428,100	)	$	960,500	$	(149,300	)
Weighted average shares outstanding for the period		1,543,257		1,543,257			1,543,257		1,543,257
Dilutive effect of warrants		14,553		-			20,323		-
Weighted average diluted shares used in calculation of diluted earnings/(loss) per share		1,557,810		1,543,257			1,563,580		1,543,257
Basic earnings/(loss) per share	$	1.48	$	(1.57	)	$	0.62	$	(0.10	)
Diluted earnings/(loss) per share	$	1.47	$	(1.57	)	$	0.61	$	(0.10	)

Basic earnings/(loss) per common share is computed using net income/(loss) and the weighted average number of common shares outstanding during the period.  Diluted earnings per common share are computed using net income and the weighted average number of common shares outstanding, assuming dilution.  Weighted average common shares outstanding, assuming dilution, includes potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include the assumed exercise of warrants using the treasury stock method. For the six months and three months ended June 30, 2011, the potential dilutive effect of outstanding warrants was 34,436 shares and 21,651 shares, respectively.  However, the effect of these potentially outstanding shares was not included in the calculation of diluted loss per share for the applicable periods because the effect would have been anti-dilutive.

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Maintenance and Accrued Costs, 2 (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Accrued maintenance cost [Roll Forward]
Balance, beginning of period			$ 1,013,400	$ 2,446,800
Additions [Abstract]
Charged to expense			2,378,500	7,909,000
Reversals of previously accrued maintenance costs			(11,400)	(401,300)
Total maintenance expense	1,612,600	2,939,700	2,367,100	7,507,700
Capital equipment			64,800	242,600
Accrued claims related to refundable maintenance reserves			578,100	81,200
Prepaid maintenance			32,900	201,100
Total additions			3,042,900	8,032,600
Deductions [Abstract]
Payments			1,960,500	6,915,500
Other			479,800	607,000
Total deductions			2,440,300	7,522,500
Net increase in accrued maintenance costs			602,600	510,100
Balance, end of period	$ 1,616,000	$ 2,956,900	$ 1,616,000	$ 2,956,900

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Computation of Earnings/(Loss) Per Share (Tables)

6 Months Ended

Jun. 30, 2012

Computation of Earnings/(Loss) Per Share [Abstract]

Computation of earnings/(loss) per share

Basic and diluted earnings/(loss) per share are calculated as follows:

	For the Six Months Ended June 30,					For the Three Months Ended June 30,
	2012		2011			2012		2011
Net income/(loss)	$	2,285,500	$	(2,428,100	)	$	960,500	$	(149,300	)
Weighted average shares outstanding for the period		1,543,257		1,543,257			1,543,257		1,543,257
Dilutive effect of warrants		14,553		-			20,323		-
Weighted average diluted shares used in calculation of diluted earnings/(loss) per share		1,557,810		1,543,257			1,563,580		1,543,257
Basic earnings/(loss) per share	$	1.48	$	(1.57	)	$	0.62	$	(0.10	)
Diluted earnings/(loss) per share	$	1.47	$	(1.57	)	$	0.61	$	(0.10	)

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Organization and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2012

Organization and Summary of Significant Accounting Policies [Abstract]

Assets measured at fair value on recurring basis

The following table shows by level, within the fair value hierarchy, the fair value of the Company's assets that are measured and recorded at fair value on a recurring basis:

	June 30, 2012								December 31, 2011
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Money market funds included in cash and cash equivalents	$	2,737,200	$	2,737,200	$	-	$	-	$	736,000	$	736,000	$	-	$	-
Total	$	2,737,200	$	2,737,200	$	-	$	-	$	736,000	$	736,000	$	-	$	-

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Subsequent Events

6 Months Ended

Jun. 30, 2012

Subsequent Events [Abstract]

Subsequent Events

7.Subsequent Events

In July 2012, the Company delivered one of its off-lease Saab 340B aircraft to a current customer in South America, subject to a finance lease with a term of 48 months.  

In July 2012, the Company and the potential buyer of one of the Company's deHavilland DHC-8-100 aircraft, for which a purchase agreement had been signed in May 2012, agreed to terminate the purchase agreement as a result of the current lessee's failure to return the aircraft to the Company following the scheduled expiration of the lease.

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Organization and Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2012

Organization and Summary of Significant Accounting Policies [Abstract]

Use of Estimates

 (b)Use of Estimates

The Company's financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP").  The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.  The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable for making judgments that are not readily apparent from other sources.

The most significant estimates with regard to these financial statements are the residual values of the aircraft, the useful lives of the aircraft, the amount and timing of cash flow associated with each aircraft that are used to evaluate whether assets are impaired, accrued maintenance costs, the estimated fair value of financial instruments, accounting for income taxes, and the amounts recorded as allowances for doubtful accounts.

Fair Value Measurements

(c)Fair Value Measurements

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs, to the extent possible. The fair value hierarchy under GAAP is based on three levels of inputs.

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis

The following table shows by level, within the fair value hierarchy, the fair value of the Company's assets that are measured and recorded at fair value on a recurring basis:

	June 30, 2012								December 31, 2011
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Money market funds included in cash and cash equivalents	$	2,737,200	$	2,737,200	$	-	$	-	$	736,000	$	736,000	$	-	$	-
Total	$	2,737,200	$	2,737,200	$	-	$	-	$	736,000	$	736,000	$	-	$	-

As of June 30, 2012 and December31, 2011, there were no liabilities required to be measured and recorded at fair value on a recurring basis.

Assets Measured and Recorded at Fair Value on a Nonrecurring Basis

The Company determines fair value of long-lived assets held and used, such as aircraft and aircraft engines held for lease, by reference to independent appraisals, quoted market prices (e.g., offers to purchase) and other factors. An impairment charge is recorded when the Company believes that the carrying value of an asset will not be recovered through future net cash flows and that the carrying value exceeds its fair value. During the three months and six months ended June30, 2012 and 2011, there was no recorded write-down of long-lived assets.

Fair Value of Other Financial Instruments

The Company's financial instruments, other than cash and cash equivalents, consist principally of accounts receivable, accounts payable and amounts borrowed under its credit facility (the "Credit Facility").  The fair value of accounts receivable and accounts payable approximates the carrying value of these financial instruments because of their short-term nature.

Borrowings under the Company's Credit Facility bear floating rates of interest that reset periodically to a market benchmark rate plus a credit margin.  The Company believes the effective interest rate of this debt agreement approximates current market rates for such indebtedness at the balance sheet date.  The Company believes the carrying amount of its floating rate debt at the balance sheet dates approximates its fair value, which was estimated by calculation of the present value of future repayment obligations using estimates of borrowing rates that would be available to the Company for such an instrument.  

Finance Leases

(d)Finance Leases

The lease for one of the Company's aircraft contains a purchase option for the lessee for an amount substantially below the estimated residual value of the asset at the date for purchase under such option.  Consequently, the Company considers the purchase option to be a "bargain purchase option" and has classified such lease as a finance lease for financial accounting purposes.  The Company also had a second aircraft subject to a finance lease that terminated in June 2011 in connection with the disposal of the asset.  The Company does not include the value, purchase price or accumulated depreciation of finance lease assets on its balance sheet.  Instead, for any finance lease, the discounted present value of (i) future minimum lease payments (including the bargain purchase option) and (ii) any residual value not subject to a bargain purchase option are reported as a finance lease receivable.  Rental revenue and depreciation expense are not recognized on finance leases.  Rather, the Company accrues interest on the balance of the finance lease receivable based on the interest rate inherent in the lease.  The Company recognized interest earned on finance leases as "other income" in the amount of $22,600 and $50,000 in the quarters ended June 30, 2012 and 2011, respectively, and $46,000 and $194,300 in the six months ended June 30, 2012 and 2011, respectively.

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Aircraft and Aircraft Engines Held for Lease (Tables)

6 Months Ended

Jun. 30, 2012

Aircraft and Aircraft Engines Held for Lease [Abstract]

Schedule of aircraft and aircraft engines held for lease

At June 30, 2012 and December 31, 2011, the Company's aircraft and aircraft engines, which were on lease or held for lease, consisted of the following.   

	June30, 2012					December 31, 2011
	Number		% of net			Number		% of net
Model	owned		book value			owned		book value
Bombardier Dash-8-300		9		25	%		8		23	%
Fokker 100		7		23	%		7		28	%
Bombardier Dash-8-Q400		3		19	%		1		8	%
Fokker 50		14		15	%		14		18	%
General Electric CF34-8E5 engine		3		7	%		3		8	%
Saab 340B		6		6	%		6		6	%
Saab 340B Plus		2		3	%		2		4	%
deHavilland DHC-8-100		1		1	%		2		4	%
deHavilland DHC-6		1		1	%		1		1	%
Saab 340A		1		-			1		-

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Aircraft and Aircraft Engines Held for Lease (Details) (USD $)	3 Months Ended		6 Months Ended					6 Months Ended		6 Months Ended												3 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Jun. 30, 2012 Bombardier Dash-8-300 [Member]	Dec. 31, 2011 Bombardier Dash-8-300 [Member]	Jun. 30, 2012 Fokker 100 [Member]	Dec. 31, 2011 Fokker 100 [Member]	Jun. 30, 2012 Fokker 50 [Member]	May 31, 2012 Fokker 50 [Member]	Dec. 31, 2011 Fokker 50 [Member]	Jun. 30, 2012 General Electric CF34-8E5 engine [Member]	Dec. 31, 2011 General Electric CF34-8E5 engine [Member]	Jun. 30, 2012 Bombardier Dash-8-Q400 [Member]	Dec. 31, 2011 Bombardier Dash-8-Q400 [Member]	Jun. 30, 2012 Saab 340B [Member]	Apr. 30, 2012 Saab 340B [Member]	Dec. 31, 2011 Saab 340B [Member]	Jun. 30, 2012 Saab 340B Plus [Member]	Dec. 31, 2011 Saab 340B Plus [Member]	Jun. 30, 2012 deHavilland DHC-8-100 [Member]	Dec. 31, 2011 deHavilland DHC-8-100 [Member]	Jun. 30, 2012 deHavilland DHC-6 [Member]	Dec. 31, 2011 deHavilland DHC-6 [Member]	Jun. 30, 2012 Saab 340 A [Member]	Dec. 31, 2011 Saab 340 A [Member]
Aircraft and aircraft engines held for lease [Abstract]
Number owned						9	8	7	7	14		14	3	3	3	1	6		6	2	2	1	2	1	1	1	1
Percentage of net book value						25.00%	23.00%	23.00%	28.00%	15.00%		18.00%	7.00%	8.00%	19.00%	8.00%	6.00%		6.00%	3.00%	4.00%	1.00%	4.00%	1.00%	1.00%	0.00%	0.00%
Number of aircraft for which purchase agreement executed															2
Gain on sale of aircraft																						$ 873,500
Number of aircraft returned																		1
Term of re-leased aircraft								36 months
Number of aircraft returned by lessees that declared bankruptcy											6							4
Bad debt expense	310,300	0	310,300	0						310,300
Number of aircraft delivered																	1
Percentage of total net book value off lease	17.00%		17.00%
Number of entity aircraft off lease	14		14					2		6							6
Allowance for doubtful accounts receivable	1,924,400		1,924,400		1,924,400
Amount customer has agreed to pay over three years	$ 1,270,000		$ 1,270,000
Number of years that the memorandum of understanding will be collected			3 years

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Related Party Transactions (Details) (USD $)	6 Months Ended			3 Months Ended		6 Months Ended
	Jun. 30, 2012 Mr. Beaumont [Member]	Jun. 30, 2011 Mr. Beaumont [Member]	Sep. 30, 2012 Mr. Beaumont [Member]	Jun. 30, 2012 Jet Fleet Management Corp. [Member]	Jun. 30, 2011 Jet Fleet Management Corp. [Member]	Jun. 30, 2012 Jet Fleet Management Corp. [Member]	Jun. 30, 2011 Jet Fleet Management Corp. [Member]	Jun. 30, 2012 Subordinated Notes purchasers [Member]	Jun. 30, 2011 Subordinated Notes purchasers [Member]	Dec. 31, 2011 Subordinated Notes purchasers [Member]
Related Party Transaction [Line Items]
Recorded management fees				$ 1,006,700	$ 931,000	$ 1,993,400	$ 1,876,400
Acquisition fees paid	0	0		604,000	0	894,000	0
Remarketing fees				144,000	131,500	144,000	131,500
Minimum percentage of open market of shares representing Common Stock (in hundredths)	5.00%
Amount payable to related party			66,700
Warrants to purchase shares of common stock (in shares)								81,224		81,224
Warrants became exercisable date								Dec. 31, 2011
Minimum percentage of common stock issued upon exercise of warrants (in hundredths)										5.00%
Interest paid to related party								$ 0	$ 89,900

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Condensed Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Condensed Statements of Cash Flows [Abstract]
Net cash provided by/(used in) operating activities	$ 8,463,500	$ (404,900)
Investing activities:
Proceeds from disposal of assets	3,402,800	2,101,500
Purchases of aircraft and aircraft engines	(25,640,900)	(356,200)
Net cash (used in)/provided by investing activities	(22,238,100)	1,745,300
Financing activities:
Borrowings under Credit Facility	19,900,000	0
Repayments of Credit Facility	(2,300,000)	(1,000,000)
Debt issuance costs	(1,605,000)	0
Repayments of Subordinated Notes	0	(825,000)
Net cash provided by/(used in) financing activities	15,995,000	(1,825,000)
Net increase/(decrease) in cash and cash equivalents	2,220,400	(484,600)
Cash and cash equivalents, beginning of period	995,500	1,949,400
Cash and cash equivalents, end of period	$ 3,215,900	$ 1,464,800

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Notes Payable and Accrued Interest

6 Months Ended

Jun. 30, 2012

Notes Payable and Accrued Interest [Abstract]

Notes Payable and Accrued Interest

4.     Notes Payable and Accrued Interest

At June 30, 2012 and December 31, 2011, the Company's notes payable and accrued interest consisted of the following:

	June 30,		December 31,
	2012		2011
Credit Facility principal	$	82,800,000	$	65,200,000
Credit Facility accrued interest		125,000		472,700
	$	82,925,000	$	65,672,700

In March 2012, the Company's $90 million Credit Facility provided by a syndicate of banks was extended for one year, to April 29, 2013, on terms similar to the original agreement.  The Credit Facility is secured by all of the assets of the Company, including its aircraft and engine portfolio.

Although the unused amount of the Credit Facility was $7,200,000 and $24,800,000 as of June30, 2012 and December 31, 2011, respectively, the amount available was limited to $8,887,900 and $17,388,300, respectively, because of exclusions of certain assets from the collateral base.

The weighted average interest rate on the Credit Facility was 4.00% and 4.17% at June 30, 2012 and December 31, 2011, respectively.

The Company's subordinated notes ("Subordinated Notes") were fully repaid in December 2011.  The Subordinated Notes purchasers hold warrants to purchase up to 81,224 shares of the Company's common stock at an exercise price of $8.75 per share.  The warrants are exercisable through December 31, 2015.

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Subsequent Events (Details) (Subsequent Event [Member])	1 Months Ended
	Jul. 31, 2012
Saab 340B [Member]
Subsequent Event [Line Items]
Number of aircraft Leased	1
Aircraft lease terms	48 months
DHC-8-100 aircraft [Member]
Subsequent Event [Line Items]
Number of aircrafts for which purchase agreement was terminated	1

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Organization and Summary of Significant Accounting Policies (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012 Recurring [Member]	Dec. 31, 2011 Recurring [Member]	Jun. 30, 2012 Level 1 [Member] Recurring [Member]	Dec. 31, 2011 Level 1 [Member] Recurring [Member]	Jun. 30, 2012 Level 2 [Member] Recurring [Member]	Dec. 31, 2011 Level 2 [Member] Recurring [Member]	Jun. 30, 2012 Level 3 [Member] Recurring [Member]	Dec. 31, 2011 Level 3 [Member] Recurring [Member]
Fair Value, Assets Measured on Recurring Basis [Line Items]
Money market funds included in cash and cash equivalents					$ 2,737,200	$ 736,000	$ 2,737,200	$ 736,000	$ 0	$ 0	$ 0	$ 0
Total					2,737,200	736,000	2,737,200	736,000	0	0	0	0
Interest earned on finance lease	$ 22,600	$ 50,000	$ 46,000	$ 194,300