Fresh Start Accounting (Tables)

9 Months Ended

Sep. 30, 2021

Fresh Start Accounting [Abstract]

Schedule of reconciles the enterprise value to the estimated fair value of the Successor common stock

Enterprise value	$	18,883,200
Less: Fair value of accounts payable and accrued expenses		(1,512,100	)
Less: Accrued payroll		(232,100	)
Less: Income tax payable		(19,600	)
Less: Deferred tax liabilities		(114,500	)
Fair value of successor shareholders’ equity	$	17,004,900
Shares issued and outstanding upon emergence		4,416,811
Per share value	$	3.85

Schedule of cumulative impacts of reorganization adjustments

	Predecessor										Successor
	September 30, 2021			Reorganization adjustments				Fresh start adjustments			September 30, 2021
Assets:
Cash and cash equivalents	$	10,527,200		$	98,400		a		-		10,625,600
Accounts receivable		-			-				-		-
Finance leases receivable, net		450,000			-				-		450,000
Taxes receivable		1,234,500			-				-		1,234,500
Prepaid expenses and other assets		1,884,400			-				-		1,884,400
Goodwill		-			-				4,688,600	a	4,688,600
Assets held for sale		31,149,300			(31,149,300	)	b		-		-
Total assets	$	45,245,400		$	(31,050,900	)		$	4,688,600		$18,883,100
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Liabilities:
Accounts payable and accrued expenses	$	1,513,700		$	(1,600	)	a		-		1,512,100
Accrued payroll		232,100			-				-		232,100
Notes payable and accrued interest, net		38,675,300			(38,675,300	)	b		-		-
Lease liability		780,500			(780,500	)	b		-		-
Maintenance reserves		2,061,200			(2,061,200	)	b		-		-
Accrued maintenance costs		46,100			(46,100	)	b		-		-
Security deposits		466,000			(466,000	)	b		-		-
Unearned revenues		-			-				-		-
Income taxes payable		19,600			-				-		19,600
Deferred tax liabilities		114,500			-				-		114,500
Subscription fee advanced from the Plan Sponsor		10,953,100			(10,953,100	)	c		-		-
Total liabilities		54,862,100			(52,983,800	)			-		1,878,300
Stockholders’ deficit:
Preferred stock		-			-				-		-
Common stock		1,800			2,900		c		-		4,700
Paid-in capital		16,817,800			182,300		cd		-		17,000,100
Accumulated deficit		(23,399,000	)		18,710,400		e		4,688,600	a	-
		(6,579,400	)		18,895,600				4,688,600		17,004,800
Treasury stock		(3,037,300	)		3,037,300		d		-		-
Total stockholders’ deficit		(9,616,700	)		21,932,900				4,688,600		17,004,800
Total liabilities and stockholders’ deficit	$	45,245,400		$	(31,050,900	)		$	4,688,600		$18,883,100

Schedule of settlement of liabilities subject to compromise

Liabilities subject to compromise pre-emergence
Accrued maintenance costs	$	46,100
Lease liability		780,500
Maintenance reserves		2,061,200
Security deposits		466,000
Drake Indebtedness		38,675,300
		42,029,100
Less: Amounts settled per the Plan of Reorganization
Aircrafts included in the assets held for sale		(31,149,300	)
Reorganization gain per the Plan of Reorganization	$	10,879,800
Add: Gain on settlement of liabilities subject to compromise before Plan of Reorganization *		19,296,100
Reorganization gain	$	30,175,900

Schedule of cumulative impacts of reorganization adjustments

Gain on settlement of liabilities subject to compromise	$	10,879,800
Cancellation of paid in capital and treasury stock		7,830,600
	$	18,710,400

Schedule of enterprise value over the fair value of total assets

Enterprise value	$	18,883,100
Less: Fair value of total assets		(14,194,500	)
Goodwill	$	4,688,600