Fresh Start Accounting (Tables)

12 Months Ended

Dec. 31, 2022

Fresh Start Accounting Abstract

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

Enterprise value	$	18,883,100
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	$	17,004,800
Shares issued and outstanding upon emergence*		22,084,055
Per share value*	$	0.77

* Retrospectively restated to give effect to five for one forward stock split effective December 30, 2021.

Schedule of reflects cumulative impacts of reorganization adjustments

	Predecessor									Successor
	September 29, 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
Equity (Deficit):
Preferred stock		-			-			-			-
Common stock		7,700			14,400	c		-			22,100
Paid-in capital		16,811,900			170,800	cd		-			16,982,700
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 Mega Matrix Corp. (formerly “AeroCentury Corp.”) stockholders’ equity (deficit)		(9,616,700	)		21,932,900			4,688,600			17,004,800
Total liabilities and Equity (Deficit)	$	45,245,400		$	(31,050,900	)	$	4,688,600		$	18,883,100

(a) Reflects final instalment of subscription fees of $100,000 for 14,354,635 common stocks (given effect to five for one forward stock split) paid by the Plan Sponsor, against the bank charges of $1,600

(b) Reflects settlement of liabilities subject to compromise by the assets held for sale.

(c) Reflects issuance of 14,354,635 common stocks (given effect to five for one forward stock split) to the Plan Sponsor, at per share of $0.77 (given effect to five for one forward stock split), with total subscription fee of $11,053,100, among which $10,953,100 was paid before September 29, 2021 and $100,000 was paid on September 30, 2021.

(d) Reflects cancellation of paid-in capital of $10,867,900 and treasury stock of $3,037,300 attributable to predecessor shareholders

(e) Reflects the cumulative impacts of reorganization adjustments.

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
Aircraft 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

* The predecessor of the Company started to sell its aircraft before it filed Petitions under Chapter 11 in March 2021, and continued the sales of aircraft through the receipt of the Plan of the Reorganization. As of September 29, 2021, the Company closed sales of five aircraft with carrying amount of $22.3 million, and the proceeds from the sales were settled against the liabilities subject to compromise of $41.6 million, and the Company recognized reorganization gains of $19.3 million.

Schedule of cumulative impacts of reorganization adjustments

Reorganization gain per the Plan of Reorganization	$	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