Concentration of Credit Risk

12 Months Ended

Dec. 31, 2016

Concentration of Credit Risk [Abstract]

Concentration of Credit Risk

5.Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash deposits and receivables.  The Company places its deposits with financial institutions and other creditworthy issuers and limits the amount of credit exposure to any one party.

For the year ended December 31, 2016 the Company had three significant customers, which individually accounted for 21%, 17% and 17%, respectively, of lease revenue.  For the year ended December 31, 2015 the Company had three significant customers, which individually accounted for 17%, 16% and 15%, respectively, of lease revenue.

At December 31,2016, the Company had receivables from two customers totaling $2,663,400 representing 78% of the Company's total accounts receivable.  In early 2017, the Company received payments totaling $1,356,000 related to these receivables.

At December 31,2015, the Company had a receivable of $1,201,800 for an approved insurance claim related to one of the Company's turboprop aircraft that was held for sale.  The Company received the insurance proceeds in early 2016.  At December 31,2015, the Company also had receivables from three customers totaling $2,719,700 representing 51% of the Company's total accounts receivable.  During 2016, the Company received payments totaling $1,820,300 related to these receivables.  The Company reversed accruals in the amount of $247,100 for maintenance reserves that had not been recorded as income and wrote off the remaining $652,300 as bad debt expense.