3.	Aircraft and Aircraft Engines Held for Lease or Sale

(a)	Assets Held for Lease

At December 31, 2018 and December 31, 2017, the Company’s aircraft and aircraft engines held for lease consisted of the following:

	December 31, 2018					December 31, 2017
Type	Number Owned		% of net book value			Number owned		% of net book value
Regional jet aircraft		13		81	%		13		82	%
Turboprop aircraft		4		18	%		10		17	%
Engines		1		1	%		1		1	%

During 2018 and 2017, the Company used cash of $22,844,300 and $32,063,100, respectively, for the purchase and capital improvement of aircraft.

During 2018, the Company purchased two aircraft subject to operating leases. During the same period, the Company sold four aircraft held for lease for cash and recorded net losses totaling $2,426,600. The Company also reclassified four aircraft from held for lease to held for sale.

During 2018, the Company recorded $1,629,000 in maintenance reserves revenue resulting from cash received from the former lessee of three aircraft that were returned to the Company during 2017. Such payments were for unpaid maintenance reserves, as well as amounts due pursuant to the return conditions of the applicable leases. The Company did not accrue unpaid reserves or return condition amounts at the time of lease termination based on management’s evaluation of the creditworthiness of the lessee and, therefore, accounted for them as income when received.

None of the Company’s aircraft and engines held for lease were off -lease at December 31, 2018. As discussed below, the Company has three off-lease aircraft that were reclassified as held for sale during 2018.

As of December 31, 2018, minimum future lease revenue payments receivable under noncancelable operating leases were as follows:

Years ending December 31

2019	$	28,357,100
2020		25,773,700
2021		18,672,300
2022		16,714,700
2023		13,031,900
Thereafter		21,610,600
	$	124,160,300

(b)	Assets Held for Sale

During 2018, the Company sold an aircraft that was previously held for lease and for which the Company had recorded an impairment provision of $1,835,800 during 2018. The Company recorded a loss of $1,072,400 related to the sale.

Assets held for sale at December 31, 2018 consist of three off-lease turboprop aircraft and airframe parts from two turboprop aircraft. During 2018, the Company recorded impairment provisions totaling $1,135,700 for the three aircraft and reclassified them from assets held for lease to assets held for sale.

During 2018, the Company received $1,280,100 in cash and accrued $133,100 in receivables for parts sales. These amounts were accounted for as follows: $779,700 reduced accounts receivable for parts sales accrued in 2017, $543,200 reduced the carrying value of the parts, and $90,300 was recorded as gains in excess of the carrying value of the parts. During 2017, the Company received $193,100 from the sale of parts and accrued receivables totaling $779,700 for 2017 parts sales, payment for which was received in 2018. Of such amounts, $885,400 reduced the carrying value of the parts and $87,400 was recorded as gains in excess of the carrying value of the parts.