0001654954-20-003499.txt : 20200330 0001654954-20-003499.hdr.sgml : 20200330 20200330163248 ACCESSION NUMBER: 0001654954-20-003499 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 76 CONFORMED PERIOD OF REPORT: 20191231 FILED AS OF DATE: 20200330 DATE AS OF CHANGE: 20200330 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AEROCENTURY CORP CENTRAL INDEX KEY: 0001036848 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-EQUIPMENT RENTAL & LEASING, NEC [7359] IRS NUMBER: 943263974 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13387 FILM NUMBER: 20757561 BUSINESS ADDRESS: STREET 1: 1440 CHAPIN AVE STE 310 CITY: BURLINGAME STATE: CA ZIP: 94010 BUSINESS PHONE: 6503401888 MAIL ADDRESS: STREET 1: 1440 CHAPIN AVENUE SUITE 310 CITY: BURLINGAME STATE: CA ZIP: 94010 FORMER COMPANY: FORMER CONFORMED NAME: AEROMAX INC DATE OF NAME CHANGE: 19970331 10-K 1 acy10k123119.htm AEROCENTURY CORP. REPORT ON FORM 10-K FOR 12/31/19 acy10k123119
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
FORM 10-K
(Mark One)
☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the fiscal year ended December 31, 2019
 
☐ 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)
 
(IRS Employer Identification No.)
1440 Chapin Avenue, Suite 310
Burlingame, California 94010
(Address of Principal Executive Offices)
 
Registrant’s telephone number, including area code: (650) 340-1888
 
Securities registered pursuant to Section 12(b) of the Act:
 
 
 
 
Title of each class
Trading Symbol
Name of each exchange on which registered
Common Stock, par value $0.001 per share
ACY
NYSE American Exchange
 
Securities registered pursuant to Section 12(g) of the Act: None
 
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes  No
 
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
Yes  No  
 
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  No
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 to submit such files).
Yes  No
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer   Accelerated filer
Non-accelerated filer   Smaller reporting company
Emerging growth company ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes  No
 
The aggregate market value of the voting and non-voting common equity held by non-affiliates as of June 28, 2019, the last business day of the registrant’s most recently completed second fiscal quarter (based upon the closing sale price of the registrant’s common stock as of such date, as reported by the NYSE American Exchange) was $8,565,600. Shares of common stock held by the registrant's officers and directors and beneficial owners of 10% or more of the outstanding shares of the registrant's common stock have been excluded from the calculation of this amount because such persons may be deemed to be affiliates of the registrant; however, the treatment of these persons as affiliates of the registrant for purposes of this calculation is not, and shall not be considered, a determination as to whether any such person is an affiliate of the registrant for any other purpose.
 
The number of shares of the registrant’s common stock outstanding as of March 30, 2020 was 1,545,884.
 
DOCUMENTS INCORPORATED BY REFERENCE
 
Part III of this Annual Report on Form 10-K incorporates information by reference to the registrant’s Proxy Statement for its 2020 Annual Meeting of Stockholders. Except as expressly incorporated by reference, such Proxy Statement shall not be deemed to be a part of this Annual Report on Form 10-K.
 
 
 
 
As used in this report, unless the context indicates otherwise, “AeroCentury” refers to AeroCentury Corp. and the “Company” refers to AeroCentury together with its consolidated subsidiaries.
 
This Annual Report on Form 10-K includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements in this report other than statements of historical fact are forward-looking statements for purposes of these provisions, including any statements of the Company’s plans and objectives for future operations, the Company’s future financial or economic performance (including known or anticipated trends), and the assumptions underlying or related to the foregoing. Statements that include the use of terminology such as "may," "will," "expects," "plans," "anticipates," "estimates," "potential," or "continue," or the negative thereof, or other comparable terminology, are forward-looking statements.
 
Forward-looking statements in this report include statements about the following matters, although this list is not exhaustive:
 
The Company’s business plans and strategies, including its continued focus on acquiring used regional aircraft, any potential for acquiring and managing new types and models of regional aircraft, and its expectation that most of its future growth will be outside of North America;
Certain industry trends and their impact on the Company and its performance, including: increasing competition that results in higher acquisition prices for many of the aircraft types that the Company has targeted to buy and, at the same time, downward pressure on lease rates for these aircraft; relatively lower market demand for older aircraft types that are no longer in production, which could cause certain of the Company’s aircraft to remain off lease for significant periods of time; and expectations of shakeouts of weaker carriers in economically troubled regions, which could impact the financial condition and viability of certain of the Company’s customers, and as a result, their demand for the Company’s aircraft and their ability to fulfill their lease commitments and other obligations to the Company under existing leases;
The effects on the airline industry and the global economy of events such as public health emergencies or natural disasters, such as the recent coronavirus (COVID-19) outbreak;
Expectations about the Company’s future liquidity, cash flow and capital requirements;
The Company’s ability to convert its credit facility into a term loan facility;
The Company’s ability to obtain additional debt or equity financing to repay its indebtedness;
The Company’s ability to comply with its recently established term loans and other outstanding debt instruments, including making payments of principal and interest thereunder as and when required and complying with the financial and other covenants included in these instruments;
The Company’s ability to reach agreement with its special-purpose subsidiary term loan lender regarding certain lessee payment defaults arising from COVID-19 pandemic fallout;
The Company’s ability to access additional sources of capital in the future as and when needed, in the amounts desired, on terms favorable to the Company, or at all;
The expected impact of existing or known threatened legal proceedings;
The effect on the Company and its customers of complying with applicable government and regulatory requirements in the numerous jurisdictions in which the Company and its customers operate;
The Company’s cyber vulnerabilities and the anticipated effects on the Company if a cybersecurity threat or incident were to materialize;
General economic, market, political and regulatory conditions, including anticipated changes in these conditions and the impact of such changes on customer demand and other facets of the Company’s business; and
The impact of the foregoing on the prevailing market price and trading volume of the Company’s common stock.
 
All of the Company’s forward-looking statements involve risks and uncertainties that could cause the Company's actual results to differ materially from those projected or assumed by such forward-looking statements. Among the factors that could cause such differences are: the effects on the airline industry and global economy of public health emergencies, including the recent coronavirus outbreak; continued availability of financing; the Company’s ability to convert its credit facility into a term loan facility; the Company’s ability to comply with the covenants under its term loans and other debt instruments; the potential impact on the Company’s debt obligations of developments regarding LIBOR, including the potential phasing out of this metric; the Company's ability to locate and acquire appropriate revenue-producing assets; deterioration of the market for or appraised values of aircraft owned by the Company; volatility in interest rates; any noncompliance by the Company's lessees with obligations under their respective leases, including payment obligations; any economic downturn or other financial crisis; the timing, rate and amount of maintenance expenses for the Company’s asset portfolio, as well as the distribution of these expenses among the assets in the portfolio; the Company's ability to raise capital on acceptable terms when needed and in desired amounts, or at all; limited trading volume in the Company's stock; and the other factors detailed under "Factors That May Affect Future Results and Liquidity" in Item 7 of this report. In addition, the Company operates in a competitive and evolving industry in which new risks emerge from time to time, and it is not possible for the Company to predict all of the risks it may face, nor can it assess the impact of all factors on its business or the extent to which any factor or combination of factors could cause actual results to differ from expectations. As a result of these and other potential risks and uncertainties, the Company’s forward-looking statements should not be relied on or viewed as predictions of future events.
 
This cautionary statement should be read as qualifying all forward-looking statements included in this report, wherever they appear. All forward-looking statements and descriptions of risks included in this report are made as of the date hereof based on information available to the Company as of the date hereof, and except as required by applicable law, the Company assumes no obligation to update any such forward-looking statement or risk for any reason. You should, however, consult the risks and other disclosures described in the reports the Company files from time to time with the Securities and Exchange Commission (“SEC”) after the date of this report for updated information.
 
 
2
 
 
 
 
 
 
 
3
 
 
 
PART I
 
 

Item 1.  Business.

Business of the Company
 
The Company is engaged in the business of investing in used regional aircraft equipment and leasing the equipment to foreign and domestic regional air carriers. The Company’s principal business objective is to acquire aircraft assets and manage those assets in order to provide a return on investment through lease revenue and, eventually, sale proceeds. The Company strives to achieve this objective by reinvesting cash flow from operations and using short-term and long-term debt and/or equity financing. The Company believes its ability to achieve this objective depends in large part on its success in three areas: asset selection and acquisition, lessee selection and obtaining financing to acquire aircraft and engines.
 
As of December 31, 2019, the Company’s aircraft portfolio consisted of eleven aircraft held for lease, six aircraft held under sales-type or direct finance leases and seven aircraft held for sale two of which are being sold in parts. Most of the Company’s aircraft are mid-life regional aircraft, and its globally diverse customer base consists of nine airlines operating in seven countries.
 
On October 1, 2018, AeroCentury acquired JetFleet Holding Corp. (“JHC”) in a reverse triangular merger (“Merger”) for consideration of approximately $2.9 million in cash and 129,217 shares of common stock. JHC is the sole shareholder of JetFleet Management Corp. (“JMC”), which is an integrated aircraft management, marketing and financing business that manages and administers the Company's portfolio of aircraft assets. Before the Merger, such management and administration were performed pursuant to the terms of a management agreement (the "Management Agreement") between the Company and JMC. Post-Merger, the management and administration services provided under the Management Agreement have become internalized and under the control and management of the Company itself.
 
A decrease in air travel, lack of demand for air travel or downturn in the aviation industry caused by public health emergencies or natural disasters, such as the recent coronavirus (COVID-19) outbreak, could result in lower utilization of our aircraft assets, which could in turn materially and adversely affect our business, financial condition and results of operations.
 
Asset Selection and Acquisition. The Company typically acquires assets in one of three ways. The Company may purchase an asset already subject to a lease and assume the rights and obligations of the seller, as lessor under the existing lease. Additionally, the Company may purchase an asset from an air carrier and lease it back to the air carrier. Finally, the Company may purchase an asset from a seller and then immediately enter into a new lease for the aircraft with a third-party lessee. In this last case, the Company typically does not purchase an asset unless a potential lessee has been identified and has committed to lease the asset.
 
 
The Company locates customers through marketing efforts utilizing website listings, attendance at industry conferences, referrals from existing industry contacts and current customers, and focused advertising.
 
The Company generally targets used regional aircraft with purchase prices between $10 million and $20 million and lease terms of three to ten years. In identifying and selecting assets for acquisition, the Company evaluates, among other things, the type of asset, its current price and projected future value, its versatility or specialized uses, the current and projected availability of and demand for that asset, and the type and number of future potential lessees. Because the Company has extensive experience in purchasing, leasing and selling used regional aircraft, it believes it has the expertise and industry knowledge to purchase these assets at appropriate prices and maintain an acceptable overall on-lease rate for them.
 
In order to improve the remarketability of an aircraft after expiration of a lease, the Company’s leases generally contain provisions that require lessees to either return the aircraft in a condition that allows the Company to expediently re-lease or sell the aircraft, or pay sufficient amounts based on usage under the lease to cover any maintenance or overhaul of the aircraft required to bring the aircraft to such a state.
 
Lessee Selection. The Company’s customer base primarily consists of regional commercial aircraft operators located in globally diverse markets and seeking to access aircraft under operating leases. The Company expects to continue to target these customer markets for the foreseeable future, and expects any customer growth in the near term would be from lessees operating outside of North America. When considering whether to enter into transactions with a lessee, the Company generally reviews the lessee’s creditworthiness, growth prospects, financial status and backing; the experience of its management; and the impact of legal and regulatory matters in the lessee’s market, all of which are weighed in determining the lease terms offered to the lessee. In addition, it is the Company’s policy to monitor the lessee’s business and financial performance closely throughout the term of the lease, and, if requested, provide assistance drawn from the experience of the Company’s management in many areas of the air carrier industry. Because of its “hands-on” approach to portfolio management, the Company believes it is able to enter into transactions with lessees in a wider range of markets than may be possible for traditional, large lending institutions and leasing companies.
 
Availability of Financing. The Company has funded its asset acquisitions primarily through debt financing, supplemented by free cash flow. The Company’s primary source of debt financing has been a Credit Facility provided by a syndicate of banks with MUFG Union Bank, NA, (“MUFG”) as agent (the “MUFG Credit Facility”). The Company is currently in negotiations with the MUFG Credit Facility lenders (“Credit Facility Lenders”) to convert the MUFG Credit Facility into a term loan facility (as anticipated to be converted, the “MUFG Term Loan” and, collectively with the MUFG Credit Facility, “MUFG Indebtedness”). Therefore, the MUFG Credit Facility is expected to no longer be a source of asset acquisition financing. The Company has engaged an investment banking advisor to assist in obtaining additional debt or equity financing which, if successful, would be used to repay the MUFG Indebtedness.
 
The Company’s portfolio of assets has historically generated lease and sale revenues that have exceeded the Company’s cash expenses, which have consisted mainly of maintenance costs, principal and interest payments on debt, professional fees, insurance premiums, management fees (before the Merger) and salaries and employee benefits (after the Merger). This historical excess cash from operations has aided in the Company’s ability to continue to add to its aircraft portfolio over time. However, until the MUFG Indebtedness is repaid or refinanced, the Company will likely be required to apply any excess cash flow toward repayment of the MUFG Indebtedness. Even if the MUFG Indebtedness is repaid, and a new credit facility is obtained by the Company, the Company’s performance and cash flow are subject to fluctuations and a number of risks and uncertainties, and as a result, free cash flow may not serve as a viable source of funding in some periods.
 
See Item 7 of this report for more information about trends in and expectations about the Company’s performance and liquidity.
 
4
 
 
Competition
 
The Company competes with other leasing companies, banks, financial institutions, private equity firms, aircraft leasing syndicates, aircraft manufacturers, distributors, airlines and aircraft operators, equipment managers, equipment leasing programs and other parties for its regional air carrier customers. Many of these competitors have longer operating histories, more experience, larger customer bases, more expansive brand recognition, deeper market penetration and significantly greater financial resources. Competition has continued to increase significantly as competitors who have traditionally neglected the regional air carrier market have recently focused on this market. The industry has also experienced a number of consolidations of smaller leasing companies, creating a handful of very large companies operating in this market, as well as new entrants to the market.
 
Competition in this industry is based on a number of factors, including price, lease terms, variety of product selection (in other words, the type(s) of aircraft available for lease), reputation, ability to execute transactions as committed, and customer service. Among these, the Company believes price and lease terms may be the most important competitive factors, and as a result, the entry of new competitors into the market, the creation of larger competitors due to consolidation, and/or the entry of traditional large aircraft lessors into the regional aircraft niche, particularly those with greater access to capital than the Company, could lead to fewer acquisition opportunities for the Company and/or lease terms that are less favorable to the Company, as well as fewer renewals of existing leases or new leases of existing aircraft.
 
The Company, however, believes that it has a competitive advantage due to its experience and operational efficiency in financing the transaction sizes that are desired by many in the regional air carrier market. While the Company believes in its competitive advantage over the long term, should a global health emergency, such as the coronavirus outbreak, develop that materially disrupts the airline industry or slows down passenger growth globally, such growth and demand may be negatively impacted over the short to medium term.
 
Dependence on Significant Customers
 
For the year ended December 31, 2019, the Company’s five largest customers accounted for 23%, 23%, 16%, 14%, and 10% of operating lease revenue. For the year ended December 31, 2018, the Company’s four largest customers accounted for 30%, 21%, 15%, and 13% of operating lease revenue. This concentration of credit risk with respect to lease receivables will diminish in the future only if the Company is able to expand its customer base by re-leasing assets currently on lease to significant customers to new customers at lease-end and/or acquiring assets for lease to new customers. Conversely, sales of assets without the acquisition of additional assets may increase the concentration of significant customers in the Company’s portfolio.
 
Environmental Matters
 
Compliance with federal, state and local environmental laws, including provisions regulating the discharge of greenhouse gas emissions (including carbon dioxide (CO2)) into the environment, aircraft noise regulations, and remedial agreements or other actions relating to these provisions or the environment otherwise, has not had, and is not expected to have, a material effect on the Company’s capital expenditures, financial condition, results of operations or competitive position.
 
 
 
5
 
 
Employees
 
Prior to the Merger, JMC was responsible for all administration and management of the Company pursuant to the terms of the Management Agreement. With the acquisition of JHC by the Company on October 1, 2018, the Company assumed the role of employer (through its JMC subsidiary) of the staff of such subsidiary at the time of the Merger. As of December 31, 2019, the Company had 10 total employees, including 9 full-time employees.
 
Patents, Trademarks and Licenses
 
The Company has a registered trademark for the “AeroCentury” name. The Company relies primarily on trademark and trade secrets law, as well as non-disclosure contracts, to protect its intellectual property and proprietary information.
 
Available Information
 
AeroCentury is a Delaware corporation incorporated in 1997. Its headquarters is located at 1440 Chapin Avenue, Suite 310, Burlingame, California 94010. The main telephone number is (650) 340-1888. The Company’s website is located at: http://www.aerocentury.com.
 
The Company files and furnishes periodic reports, proxy statements and other information with the SEC. Copies of these materials are made available free of charge on the Company’s website through the Investor Relations link (SEC Filings) as soon as reasonably practicable after they are electronically filed with or furnished to the SEC. In addition, the SEC maintains an Internet site (http://www.sec.gov) that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC, including the Company.
 
6
 
 
Item 1A. Risk Factors.
 
Disclosure under this item has been omitted pursuant to the rules of the SEC that permit smaller reporting companies to omit this information. However, please see the description of certain risks and uncertainties that could impact the Company’s performance, liquidity and stock price and volume set forth under Factors that May Affect Future Results and Liquidity in Item 7 of this report.
 
Item 1B. Unresolved Staff Comments.
 
None.
 
Item 2.  Properties.
 
As of December 31, 2019, the Company did not own any real property, plant or materially important physical properties. The Company leases its principal executive office space at 1440 Chapin Avenue, Suite 310, Burlingame, California 94010 under a lease agreement that expires on June 30, 2020.
 
For information regarding the aircraft and aircraft engines owned by the Company, refer to the information under “Fleet Summary” in Item 7 of this report and Notes 2 and 3 to the Company’s consolidated financial statements in Item 8 of this report.
 
Item 3.  Legal Proceedings.
 
The Company from time to time engages in ordinary course litigation incidental to the business, typically relating to lease collection matters against defaulting lessees and mechanic’s lien claims by vendors hired by lessees. Although the Company cannot predict the impact or outcome of any of these proceedings, including, among other things, the amount or timing of any liabilities or other costs it may incur, none of the pending legal proceedings to which the Company is a party or any of its property is subject is anticipated to have a material effect on the Company’s business, financial condition or results of operations.
 
Item 4.  Mine Safety Disclosures.
 
Not applicable.
 
7
 
 
PART II
 
Item 5.      Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
 
Market Information
 
The Company’s common stock is traded on the NYSE American Exchange under the symbol “ACY.”
 
Number of Holders
 
According to the Company’s transfer agent, the Company had approximately 1,100 stockholders of record as of March 30, 2020. Because brokers and other institutions and nominees hold many of the Company’s shares of Common Stock on behalf of beneficial owners, the Company is unable to estimate the total number of beneficial owners represented by those nominees.
 
Dividends
 
Although the Company’s earnings in some periods may indicate an ability to pay cash dividends, the Company has not declared or paid any such dividends to date, and has no plans to do so in the foreseeable future because it intends to re-invest any earnings into the acquisition of additional revenue-generating aircraft and equipment.
 
Item 6.  Selected Financial Data.
 
Disclosure under this item has been omitted pursuant to the rules of the SEC that permit smaller reporting companies to omit this information.
 
8
 
 
Item 7.  Management’s Discussion and Analysis of Financial Condition and Results of Operations.
 
The following discussion and analysis should be read together with the Company’s audited consolidated financial statements and the related notes included in this report. This discussion and analysis contains forward-looking statements. Please see the cautionary note regarding these statements at the beginning of this report.
 
Overview
 
The Company provides leasing and finance services to regional airlines worldwide. The Company is principally engaged in leasing its aircraft portfolio, primarily consisting of mid-life regional aircraft, through operating leases and finance leases to its globally diverse customer base of nine airlines in seven countries. In addition to leasing activities, the Company sells aircraft from its operating lease portfolio to third parties, including other leasing companies, financial services companies, and airlines. Its operating performance is driven by the composition of its aircraft portfolio, the terms of its leases, and the interest rate of its debt, as well as asset sales.
 
During 2019, the Company purchased no aircraft and the Company sold one aircraft that had been held for lease, one aircraft that had been reclassified during the year from held for lease to a sales-type finance lease and two aircraft and an engine that been held for sale. The Company also reclassified three aircraft from held for lease to held for sale. The Company ended the year with a total of eleven aircraft held for lease, with a net book value of approximately $108 million. This represents a 41% decrease compared to the net book value of the Company’s aircraft and engines held for lease at December 31, 2018. In addition to the aircraft held for lease at year end, the Company held six aircraft subject to finance leases and held seven aircraft for sale, two of which are being sold in parts.
 
Average portfolio utilization was approximately 95% and 92% during 2019 and 2018, respectively. The year-to-year increase was due to sales during 2018 and 2019 of assets that were off lease in the 2018 period, the effects of which were partially offset by aircraft that were on lease in 2018, but off lease for part of 2019.
 
Net loss for 2019 and 2018 was $16.7 million and $8.1 million, respectively, resulting in basic and diluted loss per share of $(10.78) and $(5.58), respectively. Pre-tax profit margin (which the Company calculates as its income before income tax provision as a percentage of its revenues and other income) was (49%) and (33%) in 2019 and 2018, respectively.
 
MUFG Credit Facility Default and Conversion into Term Loan
 
Historically, the Company has used its MUFG Credit Facility as its primary source of acquisition financing. In February 2019, the MUFG Credit Facility was extended to February 19, 2023, and was amended in certain other respects as described under Liquidity and Capital Resources. Contemporaneously, the Company refinanced, using new non-recourse term loans (“Nord Term Loans”) from Norddeutsche Landesbank Girozentrale, New York Branch (“Nord”) with an aggregate principal of $44.3 million, four aircraft that previously served as collateral under the MUFG Credit Facility and two aircraft that previously served as collateral under special-purpose subsidiary financings.
 
As of December 31, 2019, the Company owed $84.1 million in principal amount and $0.4 million in accrued interest under the MUFG Credit Facility, and $30.9 million in principal amount and $0.1 million in accrued interest under the Nord Term Loans.
 
During the third quarter of 2019 as a result of significant past due payments from the customer, the Company terminated the leases for, and repossessed, four of its aircraft held for lease. The customer, a European regional airline and one of the Company’s largest customers based on operating lease revenue, subsequently ceased operations and declared bankruptcy. The Company applied the security deposits and a portion of collected maintenance reserves it held against past due rent due from the customer. The remaining balance of collected maintenance reserves equal to $17.0 million was recognized as maintenance reserves revenue. The Company also recorded impairment losses totaling $22.3 million for the four aircraft based on appraised values or expected sales proceeds, and reclassified two of the four aircraft from held for lease to held for sale. As a result of the lease terminations, the four aircraft were newly appraised based on the maintenance-adjusted condition of the aircraft, rather than the basis previously used for their appraisal, which considered future cash flows under the leases. During that same quarter, the Company also (i) recorded impairment losses of $15,000 on another of its aircraft held for sale and $1.0 million related to airframe parts that are held for sale, both of which were based on estimated sales proceeds; and (ii) recorded a bad debt allowance of $3.9 million as a result of payment delinquencies by two other customers that lease three of the Company’s aircraft subject to finance leases. The Company reduced its bad debt allowance by $1.0 million during the fourth quarter of 2019, as a result of cash received during the quarter and anticipated cash to be received from the lessees in the first quarter of 2020.
 
At December 31, 2019, appraisal values for assets included in the borrowing base were updated, and increased the Borrowing Base Deficit to $29.8 million at that date.
 
As a result of the aforementioned impairment losses and bad debt allowance, as of September 30, 2019 and December 31, 2019, the Company was in default of its borrowing base covenant under the MUFG Credit Facility (the “Borrowing Base Default”), due to the outstanding facility balance exceeding the minimum required collateral value coverage by approximately $9.4 million and $29.8 million, respectively.
 
The Company was not in compliance with various covenants contained in the MUFG Credit Facility agreement, including those related to interest coverage and debt service coverage ratios and a no-net-loss requirement under the MUFG Credit Facility, at September 30, 2019 and at December 31, 2019.
 
On October 15, 2019, the agent bank for the Credit Facility Lenders under the MUFG Credit Facility delivered a Reservation of Rights Letter to the Company which contained notice of the Borrowing Base Default and a demand for repayment of the amount of the Borrowing Base Deficit by January 13, 2020, and also contained formal notices of default under the MUFG Credit Facility relating to the alleged material adverse effects on the Company’s business of the recent early termination of leases for three aircraft and potential financial covenant noncompliance based on the Company’s financial projections provided to the Credit Facility Lenders (the Borrowing Base Default and such other defaults referred to as the “Specified Defaults”). The Reservation of Rights Letter also informed the Company that further advances under the MUFG Credit Facility agreement would no longer be permitted due to the existence of such defaults.
 
In October, November and December 2019, the Company, agent bank and the Credit Facility Lenders entered into a Forbearance Agreement and amendments extending the Forbearance Agreement with respect to the Specified Defaults under the MUFG Credit Facility. The Forbearance Agreement (i) provided that the Credit Facility Lenders temporarily forbear from exercising default remedies under the MUFG Credit Facility agreement for the Specified Defaults, (ii) reduced the maximum availability under the MUFG Credit Facility to $85 million and (iii) extended the cure period for the Borrowing Base Deficit from January 13, 2020 to February 12, 2020. The Forbearance Agreement also allowed the Company to continue to use LIBOR as its benchmark interest rate, but increased the margin on the Company’s LIBOR-based loans under the MUFG Credit Facility from a maximum of 3.75% to 6.00% and set the margin on the Company’s prime rate-based loans at 2.75%, as well as added a provision for paid-in-kind interest (“PIK Interest) of 2.5% to be added to the outstanding balance of the MUFG Credit Facility debt in lieu of a cash payment. The Company paid cash fees of $406,250 in connection with the Forbearance Agreement and amendments, and accrued a fee of $832,100, which was added to the outstanding balance of the MUFG Credit Facility debt in lieu of a cash payment. The Forbearance Agreement was in effect until December 30, 2019, after which the Company and the Credit Facility Lenders agreed not to further amend the Forbearance Agreement. On February 12, 2020, the Credit Facility Lenders delivered a Reservation of Rights Letter to the Company which contained notice of the failure to cure the Borrowing Base Default by February 12, 2020. On March 16, 2020, the Credit Facility Lenders delivered a Reservations of Rights Letter to the Company that contained notice that the defaults under the MUFG Credit Facility constituted a default under the swap agreements related to the MUFG Credit Facility debt, and the swap agreements for the MUFG Credit Facility were terminated. The termination of the MUFG Swaps will require that the Company pay $3.1 million in connection with such termination. The termination payment owed to the swap counterparty is secured by the collateral that secures the MUFG Indebtedness, and increases the amount of indebtedness secured by the Credit Facility Lender’s blanket lien on the Company’s assets.
 
The Company is currently in negotiations with the Credit Facility Lenders to convert the MUFG Credit Facility into the MUFG Term Loan. Therefore, the MUFG Credit Facility is expected to no longer be a source of asset acquisition financing. The Company has engaged an investment banking advisor to assist in obtaining additional debt or equity financing which, if successful, would be used to repay the MUFG Indebtedness.
 
 
Nord Term Loan Default
 
In March 2020, one of the Company’s customers, which leases two regional jet aircraft subject to Nord Term Loan financing, did not timely make its quarterly rent payment. The lessee payment default under the leases and the resulting corresponding loan payment defaults by the Company’s special-purpose subsidiaries resulted in defaults under their respective Nord Term Loan agreements. The lessee, a major Spanish regional carrier, was severely affected by the COVID-19 pandemic, and was required to cease operations as part of Spain’s lockdown, but has indicated to the Company that it intends to honor its lease commitments. The Company is currently in discussions with the lessee regarding its overdue payment obligations and has entered into negotiations with Nord regarding a workout for the corresponding overdue Nord Term Loan payments.
 
 
 
9
 

 
Fleet Summary
 
(a) Assets Held for Lease
 
Key portfolio metrics of the Company’s aircraft held for lease as of December 31, 2019 and December 31, 2018 were as follows:
 
 
 
 
December 31,
2019
 
 
December 31,
2018
 
Number of aircraft and engines held for lease
  11 
  18 
 
    
    
Weighted average fleet age
      
11.8 years

 
11.1 years
 
Weighted average remaining lease term
 
      41 months
 
 
58 months
 
Aggregate fleet net book value
 $108,368,600 
 $184,019,900 
 
 
 
For the Years Ended
December 31,
 
 
 
2019
 
 
2018
 
 
Average portfolio utilization
  95%
  92%
 
The increase in portfolio utilization between periods was primarily due to sales during 2018 and 2019 of assets that were off lease in the 2018 period, the effects of which were partially offset by aircraft that were on lease in 2018, but off lease for part of 2019.
 
The following table sets forth the net book value and percentage of the net book value, by type, of the Company’s assets that were held for lease at December 31, 2019 and December 31, 2018:
 
 
 
December 31, 2019
 
 
December 31, 2018
 
Type
 
Number
owned
 
 
% of net book value
 
 
Number
owned
 
 
% of net book value
 
Turboprop aircraft:
 
 
 
 
 
 
 
 
 
 
 
 
  Bombardier Dash-8-400
  2 
  20%
  2 
  13%
  Bombardier Dash-8-300
  - 
  -%
  2 
  5%
 
    
    
    
    
Regional jet aircraft:
    
    
    
    
  Embraer 175
  3 
  26%
  3 
  16%
  Canadair 1000
  2 
  21%
  2 
  14%
  Canadair 700
  3 
  20%
  3 
  12%
  Canadair 900
  1 
  13%
  5 
  39%
 
    
    
    
    
Engines:
    
    
    
    
  Pratt & Whitney 150A
  - 
  -%
  1 
  1%
 
During 2019, the Company purchased no aircraft and sold one aircraft that had been held for lease, one aircraft that had been reclassified during the year from held for lease to a sales-type finance lease and two aircraft and an engine that been held for sale, as well as certain aircraft parts. The Company also reclassified three aircraft from held for lease to held for sale. During 2018, the Company purchased two aircraft subject to operating leases and sold five aircraft and certain aircraft parts.
 
The following table sets forth the net book value and percentage of the net book value of the Company’s assets that were held for lease at December 31, 2019 and December 31, 2018 in the indicated regions (based on the domicile of the lessee):
 
 
 
December 31, 2019
 
 
December 31, 2018
 
Region
 
Net book value
 
 
% of
net book value
 
 
Net book value
 
 
% of
net book value
 
North America
 $63,799,600 
  59%
 $68,485,400 
  37%
Europe
  44,569,000 
  41%
  110,069,000 
  60%
Asia
  - 
  -%
  5,465,500 
  3%
 
 $108,368,600 
  100%
 $184,019,900 
  100%
 
For the year ended December 31, 2019, approximately 30%, 23%, 23% and 10% of the Company’s operating lease revenue was derived from customers in the United States, Spain, Slovenia and Croatia, respectively. For the year ended December 31, 2018, approximately 30%, 28% and 21% of the Company’s operating lease revenue was derived from customers in Slovenia, the United States and Spain, respectively. Operating lease revenue does not include interest income from the Company’s finance leases. The following table sets forth geographic information about the Company’s operating lease revenue for leased aircraft and aircraft equipment, grouped by domicile of the lessee:
 
 
 
For the Years Ended December 31,
 
 
 
2019
 
 
2018
 
Region
 
Number
of lessees
 
 
% of
operating
lease revenue
 
 
Number
of lessees
 
 
% of
operating
lease revenue
 
Europe
  4 
  59%
  4 
  59%
North America
  3 
  40%
  4 
  37%
Asia
  1 
  1%
  1 
  4%
 
At December 31, 2019 and December 31, 2018, the Company also had six aircraft subject to finance leases. For the year ended December 31, 2019, approximately 57% and 43% of the Company’s finance lease revenue was derived from customers in Africa and Europe, respectively. For the year ended December 31, 2018, approximately 67% and 33% of the Company’s finance lease revenue was derived from customers in Africa and Europe, respectively.
 
(b) Assets Held for Sale
 
Assets held for sale at December 31, 2019 consisted of three Canadair 900 aircraft, one Saab 340B Plus turboprop aircraft, one Bombardier Dash-8-300 aircraft and airframe parts from two turboprop aircraft.
 
10
 
 
Results of Operations
 
(i) Revenues and Other Income
 
Revenues and other income increased by 61% to $43.6 million in 2019 from $27.1 million in 2018. The increase was primarily a result of increased maintenance reserves revenue and a gain on sale of assets in 2019 as opposed to a loss on sale of assets in 2018, the effects of which were partially offset by decreases in operating and finance lease revenues.
 
Operating lease revenue decreased by 7% to $25.6 million in 2019 from $27.6 million in 2018, primarily due to reduced rent income resulting from the early termination of four aircraft leases with one of the Company’s customers and the sale of an asset in 2019 that had been on lease until the time of sale. These decreases were partially offset by revenue from two aircraft purchased in the second quarter of 2018 and an asset that was on lease in 2019, but off lease in 2018.
 
Maintenance reserves that are retained by the Company at lease end are recorded as revenue at that time. During 2019, the Company recorded $17.0 million of such revenue, arising from maintenance reserves retained upon the termination of four aircraft leases with one customer. During 2018, the Company recorded $1.6 million of such revenue, arising from cash received from the former lessee of three aircraft after such aircraft were returned to the Company by the lessee during 2017, which amounts were not accrued at lease termination based on management’s evaluation of the creditworthiness of the lessee.
 
During 2019, the Company recorded a net gain of $0.3 million on the sale of two aircraft, an engine and aircraft parts and a net loss of $0.2 million on the reclassification of an aircraft from held for lease to a finance lease receivable. During 2018, the Company recorded net gains totaling $0.1 million on the sale of an aircraft and aircraft parts and losses totaling $3.5 million on the sale of four aircraft.
 
Finance lease revenue decreased by 32% to $0.9 million in 2019 from $1.3 million in 2018, primarily due to a lower finance lease receivables balance in 2019 and the purchase by the lessee of three aircraft subject to finance leases during the third quarter of 2018.
 
(ii) Expenses
 
Total expenses increased by 79% to $64.8 million in 2019 from $36.2 million in 2018. The increase was primarily a result of increases in asset impairment losses, bad debt expense and interest expense, the effects of which were partially offset by decreases in overhead expenses and settlement loss recorded in connection with the acquisition of JHC in 2018.
 
During 2019, the Company recorded impairment charges totaling $31.0 million on four assets held for sale, based on appraised values, and five assets held for sale, based on expected sales proceeds. As a result of four lease terminations during the year, the appraised values were based on the maintenance-adjusted condition of the aircraft, rather than the previous basis, which reflected future cash flows under the leases. During 2018, the Company recorded impairments totaling $3.0 million on four aircraft held for sale, based on appraised values.
 
As a result of payment delinquencies during 2019 by two customers that lease three of the Company’s aircraft subject to finance leases, the Company also recorded a bad debt expense of $2.9 million. The Company recorded no bad debt expense during 2018.
 
The Company’s interest expense increased by 19% to $11.3 million in 2019 from $9.5 million in 2018, primarily as a result of a higher average interest rate and $0.3 million of valuation charges related to the Company’s interest rate swaps, as well as a $1.1 million write-off of a portion of the Company’s unamortized debt issuance costs related to the MUFG Credit Facility, the effects of which were partially offset by a lower average debt balance.
 
After the Merger, JMC’s operating expenses, including salaries and employee benefits, became the responsibility of the Company. In 2019, overhead expenses of approximately $6.6 million were comprised of salaries and employee benefits and professional fees, general and administrative expenses. In 2018, overhead expenses of approximately $7.4 million were comprised of management fees paid to JMC under the Management Agreement, based on the net book value of the Company’s aircraft and engines and finance lease receivable balances, salaries and employee benefits after the Merger, and professional fees, general and administrative expenses. Professional fees, general and administrative and other expenses in 2018 included $485,000 incurred in connection with the acquisition of JHC.
 
11
 
 
Liquidity and Capital Resources
 
(a) MUFG Credit Facility
 
As discussed in Management Discussion and Analysis – Overview, the Company’s $145 million MUFG Credit Facility was previously the Company’s primary source of acquisition financing. The Company is currently in negotiations with the Credit Facility Lenders to convert the MUFG Credit Facility into the MUFG Term Loan. If conversion occurs, the MUFG Credit Facility will no longer be a source of debt financing for the Company’s acquisitions. The Company has engaged an investment banking advisor to assist in obtaining debt or equity financing which, if successful, would be used to repay the MUFG Indebtedness. Unless and until the MUFG Term Loan is refinanced with a new lender, substantially all the excess cash flow of the Company will be required to be applied toward repayment of the MUFG Term Loan, unless the Credit Facility Lenders approve other uses of such excess funds.
 
In March 2019, the Company entered into interest rate swaps (the “MUFG Swaps”) with respect to the variable interest rate payment amounts due for $50 million of the $84 million of outstanding MUFG Credit Facility debt.  On March 12, 2020, MUFG notified the Company that it had terminated the MUFG Swaps. The Company incurred a liability to the swap counterparties of $3.1 million in connection with such termination.
 
If the Company is not successful in converting the MUFG Credit Facility into the MUFG Term Loan, the Credit Facility Lenders have the right to declare a default and would have the option to require an enforced sale of the Company’s assets pursuant to a specified timetable, or, in the alternative, declare an acceleration of the debt and immediately foreclose upon the Company’s assets, including its ownership interests in the Nord Term Loan-financed special-purpose subsidiaries.
 
The Company’s ability to develop, obtain approval for and achieve its recapitalization plan (as defined below) is subject to a variety of factors, as discussed in Liquidity and Capital Resources—MUFG Credit Facility. If the Company is not able to maintain compliance with the MUFG Term Loan and raise sufficient capital or refinancing debt to repay all amounts owed under the MUFG Indebtedness, then the Company’s financial condition and liquidity would be materially adversely affected and its ability to continue operations could be materially jeopardized.
 
If the Company does not achieve its Recapitalization Plan and its anticipated results, the Credit Facility Lenders would thereafter have the right to exercise any and all remedies for default under the applicable MUFG Indebtedness agreement. Such remedies include, but are not limited to, declaring the entire indebtedness immediately due and payable, and if the Company were unable to repay such accelerated indebtedness, foreclosing upon the assets of the Company that secure the MUFG Indebtedness, which consist of all of the Company’s assets except for certain assets held in the Company’s single asset special-purpose financing subsidiaries.
 
The consolidated financial statements presented in this Annual Report on Form 10-K have been prepared on a going concern basis and do not include any adjustments that might arise as a result of uncertainties about the Company’s ability to continue as a going concern.
 
(b) Special-purpose Financing and Nord Term Loans
 
In August 2016, the Company acquired, using wholly-owned special-purpose entities, two regional jet aircraft, using cash and third-party financing (referred to as “special-purpose financing” or “UK LLC SPE Financing”) separate from the MUFG Credit Facility.
 
In February 2019, the UK LLC SPE Financing was repaid as part of a refinancing involving the Nord Term Loans, which were made to special-purpose subsidiaries of AeroCentury (the “LLC Borrowers”). Under the Nord Term Loans, four aircraft that previously served as collateral under the MUFG Credit Facility were moved into newly formed special-purpose subsidiaries and, along with the aircraft owned by the two existing special-purpose subsidiaries, were pledged as collateral under the Nord Term Loans.
 
All of the Nord Term Loans contain cross-default provisions, so that any default by a lessee of any of the subject aircraft could result in the Nord Term Loan lender exercising its remedies under the Nord Term Loan agreement, including, but not limited to, possession of the aircraft that is subject to a lessee default. Currently, the Nord Term Loans are fully performing and were unaffected by the Company’s default under the MUFG Credit Facility.
 
Collectively, the LLC Borrowers entered into six interest rate derivatives, or interest rate swaps. Each such interest rate swap has a notional amount that mirrors the amortization under the corresponding Nord Term Loan entered into by the LLC Borrowers, effectively converting each of the six Nord Term Loans from a variable to a fixed interest rate. Each of these six interest rate swaps extend for the length of the corresponding Nord Term Loan, with maturities from 2020 through 2025.
 
One of the aircraft that was subject to Nord Term Loan financing was sold during the fourth quarter of 2019 and the related Nord Term Loan and interest rate swap were terminated.
 
In March 2020, one of the Company’s customers, which leases two regional jet aircraft subject to Nord Term Loan financing, did not timely make its quarterly rent payment. As a result, the special-purpose subsidiary borrowers that hold the aircraft did not have sufficient cash to meet the corresponding quarterly Nord Term Loan payment installments. The parent corporation was not permitted to fund the special-purpose subsidiary borrower’s loan payment obligations due to restrictions under the MUFG Credit Facility. The late payment by the lessee constituted an event of default under the Term Loan on March 19, 2020, and the Term Loan nonpayment constituted an event of default under the Nord Term Loan for each subsidiary on March 27, 2020. The lessee, a major Spanish regional carrier, was severely impacted by the COVID-19 pandemic, and was required to cease operations as part of Spain’s lockdown, but has indicated to the Company that it intends to honor its lease commitments in due course when able. The Company is currently reviewing its options for remedies and has entered into negotiations with Nord regarding a workout for the corresponding overdue Nord Term Loan payments.
 
12
 
 
(c) Cash Flow
 
The Company’s primary sources of cash from operations are payments due under the Company’s operating and finance leases, maintenance reserves, which are billed monthly to lessees based on asset usage, and proceeds from the sale of aircraft and engines.
 
The Company’s primary uses of cash are for (i) principal and interest due under the MUFG Indebtedness and the Nord Term Loans, (ii), salaries, employee benefits and general and administrative expenses, (iii) maintenance expense and (iv) reimbursement to lessees from collected maintenance reserves.
 
As discussed elsewhere in this report, the Company had a $29.8 million Borrowing Base Deficit under its MUFG Credit Facility at December 31, 2019. The Company is currently in negotiations with the Credit Facility Lenders to convert the MUFG Credit Facility into the MUFG Term Loan. The Company has engaged an investment banking advisor to help (i) formulate and analyze various strategic financial alternatives to address the Company’s capital structure, strategic and financing needs, as well as corporate level transactions aimed at achieving maximum value for the Company’s stockholders; and (ii) locate and negotiate with potential lenders, investors or transaction partners who would play a role in the Company’s plan (“Recapitalization Plan”).
 
Until the MUFG Indebtedness is repaid, the Company’s cash flow will be subject to monitoring and approval by the Credit Facility Lenders. Because the MUFG Term Loan agreement will likely require any accumulation of cash not needed to fund future general and administrative expenses or overhead or expected required payment to lessees to be deposited into a restricted account or used to pay down the balance of the MUFG Term Loan, the Company’s ability to meet unanticipated cash payment obligations may be wholly dependent upon obtaining approval from the Credit Facility Lenders to access the restricted cash account.
 
In addition, MUFG and the Company have not agreed upon the terms for payment of the $3.1 million owed in connection with the termination of the MUFG Swaps. The Company expects such terms to be addressed in connection with negotiations and resolution of the conversion of the MUFG Credit Facility into the MUFG Term Loan.

As a result of these factors, there is substantial doubt regarding the Company’s ability to continue as a going concern.

The Company’s ability to develop, obtain approval for and achieve its Recapitalization Plan is subject to a variety of factors, as discussed under Liquidity and Capital Resources—MUFG Credit Facility. If the Company is not able to either satisfy the requirements under the Recapitalization Plan, maintain compliance with its MUFG Indebtedness or raise sufficient capital to repay all amounts owed under the MUFG Indebtedness, then the Company’s financial condition and liquidity would be materially adversely affected and its ability to continue operations could be materially jeopardized.
 
In that case, the Company may need to curtail certain of its operations, including any asset acquisition or other growth plans, cut costs in other ways, incur additional debt or sell equity or certain of its revenue-producing assets in order to raise capital (which it may not be able to do on reasonable terms, or at all), or be forced into bankruptcy or liquidation.
 
The Company’s payments for maintenance consist of reimbursements to lessees for eligible maintenance costs under their leases and maintenance incurred directly by the Company for preparation of off-lease assets for re-lease to new customers. The timing and amount of such payments may vary widely between quarterly and annual periods, as the required maintenance events can vary greatly in magnitude and cost, and the performance of the required maintenance events by the lessee or the Company, as applicable, are not regularly scheduled calendar events and do not occur at uniform intervals. The Company’s maintenance payments typically constitute a large portion of its cash needs, and the Company has in the past borrowed additional funds under the MUFG Credit Facility to provide funding for these payments. Such funding will no longer be available under the MUFG Term Loan, if converted, and the Company will need to use excess cash flow or obtain permission from the Credit Facility Lenders to use funds in its restricted account.
 
The amount of interest paid by the Company depends primarily on the outstanding balance of the MUFG Indebtedness and Nord Term Loans and any future debt incurred in connection with the Company’s Recapitalization Plan.
 
The entire Nord Term Loan indebtedness is covered by interest rate swaps, and therefore, the Company has effectively converted the Nord Term Loan interest payments to fixed rate payments. 
 
A portion of the Company’s indebtedness, as well as related interest rate swaps, use LIBOR as a benchmark for establishing the rates at which interest accrues. LIBOR is the subject of recent national, international and other regulatory guidance and proposals for reform. These reforms and other pressures may cause LIBOR to disappear entirely on or after December 31, 2021, or to perform differently than in the past. Although the consequences of these developments cannot be entirely predicted, they could affect cash flow, as they may require the Company to pay increased costs for its LIBOR debt or even cause an acceleration of maturity of such debt if a suitable replacement index cannot be agreed upon or is not available.
 
Actual results could deviate substantially from the assumptions management has made in forecasting the Company’s future cash flow. As discussed in Liquidity and Capital Resources – (a) Credit Facility and in Outlook and Factors that May Affect Future Results and Liquidity, there are a number of factors that may cause actual results to deviate from these forecasts. If these assumptions prove to be incorrect and the Company’s cash requirements exceed its cash flow, the Company would need to pursue additional sources of financing to satisfy these requirements, which may not be available when needed, on acceptable terms or at all. See Factors that May Affect Future Results and Liquidity for more information about financing risks and limitations.
 
(i) Operating activities
 
The Company’s cash flow from operations decreased by $9.8 million in 2019 compared to 2018. As discussed below, the decrease in cash flow was primarily a result of decreases in payments received for rent and maintenance reserves, the effects of which were partially offset by a decrease in payments made for maintenance.
 
(A)           
Payments for rent
 
Receipts from lessees for rent decreased by $6.4 million in 2019 compared to 2018, primarily due to delinquencies related to one of the Company’s customers, and the sale of an aircraft during the first quarter of 2019, the effects of which were partially offset by rent for two aircraft acquired during the second quarter of 2018 and rent for an asset that was on lease in the 2019 period, but off lease in the 2018 period.
 
(B) Payments for maintenance reserves
 
Receipts from lessees for maintenance reserves decreased by $5.3 million in 2019 compared to 2018, primarily due to delinquencies related to one of the Company’s customers, as well as cash received in the 2018 period 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. Therefore, the Company has accounted for the former lessee’s payments as maintenance reserves revenue as the payments were received in 2018.
 
(C) Payments for maintenance
 
Payments made for maintenance decreased by $1.3 million in 2019 compared to 2018 as a result of decreased maintenance performed by the Company on off-lease aircraft to prepare them for sale or re-lease and decreased lessee maintenance reserves claims in 2019.
 
(ii) Investing activities
 
During 2019 and 2018, the Company received net cash of $16.8 million and $16.6 million, respectively, from asset sales. During 2019 and 2018, the Company used cash of $0 and $22.8 million, respectively, for aircraft acquisitions. During 2018, the Company also used $2.9 million related to AeroCentury’s acquisition of JHC.
 
(iii) Financing activities
 
During 2019 and 2018, the Company borrowed $6.0 million and $21.0 million, respectively, under the MUFG Credit Facility. In 2019 and 2018, the Company repaid $44.3 million and $32.6 million, respectively, of its total outstanding debt under the MUFG Credit Facility. Such repayments were funded by excess cash flow, the sale of assets and, in 2019, a portion of the $44.3 million in proceeds from the Nord Term Loans. During 2019 and 2018, the Company’s special-purpose entities repaid $9.2 million and $4.3 million, respectively, of UK LLC SPE Financing. During 2019, the Company also repaid $13.4 million of principal under the Nord Term Loans. During 2019 and 2018, the Company paid $6.5 million and $0.1 million, respectively, for debt issuance and amendment fees.
 
(iv) Off balance sheet arrangements
 
The Company has no material off -balance sheet arrangements.
 
Critical Accounting Policies, Judgments and Estimates
 
The Company’s discussion and analysis of its financial condition and results of operations are based upon the consolidated financial statements included in this report, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and the related disclosure of contingent assets and liabilities at the date of the financial statements or during the applicable reporting period. In the event that actual results differ from these estimates or the Company adjusts these estimates in future periods, the Company’s operating results and financial position could be materially affected. For a further discussion of Critical Accounting Policies, Judgments and Estimates, refer to Note 1 to the Company’s financial statements in Item 8 of this Annual Report on Form 10-K.
 
13
 
 
Outlook
 
MUFG Indebtedness. As discussed in Overview and Liquidity and Capital Resources, the Company is currently in negotiations with the Credit Facility Lenders to convert the MUFG Credit Facility into the MUFG Term Loan. The Company has engaged an investment banking advisor to help (i) formulate a Recapitalization Plan and analyze various strategic financial alternatives to address the Company’s capital structure, strategic and financing needs, as well as corporate level transactions aimed at achieving maximum value for the Company’s stockholders; and (ii) locate and negotiate with potential lenders, investors or transaction partners that would play a role in the Company’s Recapitalization Plan.
 
The Company’s short term future financial condition and prospects are now almost wholly dependent on two critical factors: (i) the Company’s ability to successfully enter into an amendment with the Credit Facility Lenders to convert the Credit Facility into term indebtedness and maintain compliance with such MUFG Indebtedness until it is able to repay and refinance such indebtedness and (ii) the Company’s ability to develop, obtain approval for, and execute a Recapitalization Plan that will allow the Company to refinance the MUFG Indebtedness and obtain new debt and/or equity capital to fund its asset growth. If the Company is not able to satisfy these conditions, the Company’s financial condition and liquidity would be materially adversely affected and its ability to continue long-term operations could be materially jeopardized.
 
Nord Term Loan Default. As discussed in Overview and Liquidity and Capital Resources, due to nonpayment of quarterly lease payments due on March 17, 2020 by the lessee of two aircraft, and the corresponding Nord Term Loan payment default by the Company’s special-purpose subsidiary borrowers, an event of default has occurred under the Nord Term Loans for each of those subsidiaries. The lease payment default by the lessee, which is a well-established major regional European carrier that has been consistently in compliance with its lease obligations over the history of its lease with the Company, was a direct result of the COVID-19 pandemic and the catastrophic impact of the pandemic and the ensuing governmental response on the airline industry. The Company is currently reviewing its options for remedies against the lessee. It has also entered into negotiations with Nord regarding a workout for the corresponding overdue Nord Term Loan payments, which will permit the Company’s special-purpose subsidiaries to continue to own the aircraft and manage their lease payment revenue and loan payment obligations until the airline industry recovers and resumes normal operations, or the aircraft can be refinanced. While the Company believes that the status of the lessees of the Nord-financed aircraft as established major carriers with a long and consistent payment history, combined with the overwhelming but hopefully temporary nature of the COVID-19 impact on the industry, make a compelling basis for Nord to grant a temporary accommodation under the Nord Term Loan agreements, there is no assurance that the Company will be successful in reaching an accommodation with Nord. Failure to reach some accommodation could lead to repossession of all five aircraft owned by the Company’s special-purpose subsidiaries, and may have a significant impact on the success of the Company’s effort to restructure the MUFG Indebtedness.
 
Impact of COVID-19 Pandemic. The ongoing COVID-19 pandemic has had an overwhelming adverse effect on all forms of transportation globally, but most acutely for the airline industry. The combined effect of fear of infection during air travel and international and domestic travel restrictions has caused a dramatic decrease in passenger loads in all areas of the world, not just in those countries with active clusters of COVID-19, as well as in airline ticket net bookings (i.e. bookings made less bookings canceled) of flights. This has led to significant cash flow issues for airlines, including some of the Company’s customers, and some airlines may be unable to timely meet their obligations under their lease obligations with the Company unless government financial support is received, of which there can be no assurance. Any significant nonpayment or late payment of lease payments by a significant lessee or combination of lessees could in turn impose limits on the Company’s ability to fund its ongoing operations as well as cause new defaults under the Company’s debt obligations, which in turn could lead to an immediate acceleration of debt and foreclosure upon the Company’s assets. Furthermore, for the duration of the pandemic and a period of financial recovery thereafter, sale and acquisition transactions are likely to be curtailed entirely or delayed while the industry returns to financial stability, which could impact the Company’s ability to implement its Recapitalization Plan.
 
 
14
 
 
Factors that May Affect Future Results and Liquidity
 
The Company’s business, financial condition, results of operations, liquidity, prospects and reputation could be affected by a number of factors. In addition to matters discussed elsewhere in this discussion, the Company believes the following are the most significant factors that may impact the Company; however, additional or other factors not presently known to the Company or that management presently deems immaterial could also impact the Company and its performance and liquidity.
 
Noncompliance with MUFG Indebtedness. The Company’s primary acquisition financing has been the MUFG Credit Facility, which is secured by a blanket lien on all assets of the Company, including its ownership interests in the Nord Term Loan-financed special-purpose subsidiaries. The Company is currently in negotiations with the Credit Facility Lenders to convert the MUFG Credit Facility into the MUFG Term Loan. If the Company fails to comply with any of the MUFG Indebtedness requirements, the Credit Facility Lenders can declare a default under the MUFG Indebtedness and accelerate the indebtedness and foreclose upon the Company’s assets.
 
Nord Payment Default. As discussed in Overview and Liquidity and Capital Resources, due to nonpayment of quarterly lease payments due on March 17, 2020 by the lessee of two aircraft and the corresponding Nord Term Loan payment default by the Company’s special-purpose subsidiary borrowers, an event of default has occurred under the Nord Term Loans for each of those subsidiaries. The parent company is not in a financial position to cure such default and is prohibited from doing so in any event under the MUFG Indebtedness. The Company has entered into negotiations with Nord regarding a workout for the corresponding overdue Nord Term Loan payments, which will permit the Company’s special-purpose subsidiaries to continue to own the aircraft and manage their lease payment revenue and loan payment obligations until the airline industry recovers and resumes normal operations or the aircraft can be refinanced. There is no assurance that the Company will be successful in reaching an accommodation with Nord. Failure to reach some accommodation could lead to repossession of all five aircraft owned by the Company’s special-purpose subsidiaries, and may have a significant negative impact on the success of the Company’s effort to restructure the MUFG Indebtedness.
 
Availability of Financing. The Company is currently in negotiations with the Credit Facility Lenders to convert the MUFG Credit Facility into the MUFG Term Loan, which will not be available to fund acquisition of aircraft assets. If and when the MUFG Indebtedness is repaid, the Company will need to find a new source of acquisition funding, either through equity investment proceeds, a new revolving credit facility, or new asset-specific financing, or a combination of any of the three. Until the final Recapitalization Plan is executed the Company will not have any means to acquire new aircraft assets. There can be no assurance that the Company will be able to obtain such additional capital when needed, in the amounts desired or on favorable terms.
 
MUFG Swap Hedging Dedesignation and Termination. Seven of the interest rate swaps entered into by the Company were previously designated as cash flow hedges. If at any time after designation of a cash flow hedge it is no longer probable that the forecasted hedged cash flows will occur, hedge accounting is no longer permitted and a hedge is “dedesignated.” After dedesignation, if it is still considered reasonably possible that the forecasted cash flows will occur, the amount previously recognized in other comprehensive income/(loss) will continue to be reversed as the forecasted cash flows affect earnings. However, if after dedesignation it is probable that the forecasted cash flows will not occur, amounts deferred in accumulated other comprehensive income/(loss) will be recognized in earnings immediately.
 
In October 2019, the Company determined that it was no longer probable that forecasted cash flows for the MUFG Swaps would occur as scheduled as a result of the Company’s defaults under the MUFG Credit Facility. The Company, therefore, was required to dedesignate those interest rate swaps.
 
The MUFG Swaps were terminated in March 2020, and the accumulated other comprehensive loss related to such cash flows will be recognized as an expense in the first quarter of 2020. In addition, the termination of the MUFG Swaps will require that the Company pay $3.1 million in connection with such termination. The termination payment owed to the swap counterparty is secured by the collateral that secures the MUFG Indebtedness, and increases the amount of indebtedness secured by the Credit Facility Lender’s blanket lien on the Company’s assets.
 
Impact of COVID-19 Pandemic. The ongoing COVID-19 pandemic has had an overwhelming adverse effect on all forms of transportation globally, but most acutely for the airline industry. The combined effect of fear of infection during air travel and international and domestic travel restrictions has caused a dramatic decrease in passenger loads in all areas of the world, not just in those countries with active clusters of COVID-19, as well as in airline ticket net bookings (i.e. bookings made less bookings canceled) of flights. This has led to significant cash flow issues for airlines, including some of the Company’s customers, and some airlines may be unable to timely meet their obligations under their lease obligations with the Company, unless government financial support is received, of which there can be no assurance. Any significant nonpayment or late payment of lease payments by a significant lessee or combination of lessees could in turn cause new defaults under the Company’s debt obligations, which in turn could lead to an immediate acceleration of debt and foreclosure upon the Company’s assets. Furthermore, for the duration of the pandemic and a period of financial recovery thereafter, sale and acquisition transactions are likely to be curtailed entirely or delayed while the industry returns to financial stability, which could impact the Company’s ability to implement its Recapitalization Plan.
 
General Economic Conditions and Lowered Demand for Travel. Because of the international nature of the Company’s business, a downturn in the health of the global economy could have a negative impact on the Company’s financial results, as demand for air travel generally decreases during slow or no-growth periods, and thus demand by airlines for aircraft capacity is also decreased. As discussed above, the COVID-19 pandemic is in its early stages, but it has already caused significant disruptions to the global supply chain, the stock market and consumer and business-to-business commerce, the effects of which may endure well beyond the current pandemic’s life cycle and result in low or negative growth in future periods While lower demand for air travel may actually lead to business opportunities as airlines turn to smaller aircraft to right-size capacity, it also presents potential challenges for the Company as it may impact the values of aircraft in the Company’s portfolio, lower market rents for aircraft that are being offered for lease by the Company, cause Company customers to be unable to meet their lease obligations, or reduce demand by airlines that would be potential customers for additional or replacement regional aircraft offered by the Company.
 
Because the Company’s portfolio is not entirely globally diversified, even in a growing global economy, a localized downturn in one of the key regions in which the Company leases assets could have a significant adverse impact on the Company. The Company’s significant sources of operating lease revenue by region are summarized in Fleet Summary – Assets Held for Lease.
 
Much of the recent growth in demand for regional aircraft has come from developing countries, and has been driven by mining or other resource extraction operations by Chinese enterprises in these countries. A downturn in the Chinese domestic or export economy that reduces demand for imported raw materials, such as an extended period of economic slowdown associated with the COVID-19 pandemic, could have a significant negative longer-term impact on the demand for business and regional aircraft in these developing countries, including in some of the markets in which the Company does, or seeks to do, business.
 
 
Furthermore, instability arising from new U.S. sanctions or trade wars against U.S. trading partners, and the global reaction to such sanctions, or due to other factors, could have a negative impact on the Company’s customers located in regions affected by such sanctions.
 
Also, the withdrawal of the United Kingdom (“UK”) from the European Union, known as “Brexit,” could threaten “open-sky” policies under which UK-based carriers operate throughout the European Union, and European Union-based carriers operate between the UK and other European Union countries. Losing open-sky flight rights could have a significant negative impact on the health of the Company’s European lessees and, as a result, the financial performance and condition of the Company.
 
If international conflicts erupt into military hostilities, heightened visa requirements make international travel more difficult, terrorist attacks involving aircraft or airports occur, or a major flu or pandemic outbreak occurs, passengers may avoid air travel altogether, and global air travel worldwide could be significantly affected. Any such occurrence would have an adverse impact on many of the Company’s customers.
 
Airline reductions in capacity in response to lower passenger loads can result in reduced demand for aircraft and aircraft engines and a corresponding decrease in market lease rental rates and aircraft values. This reduced market value could affect the Company’s results if the market value of an asset or assets in the Company’s portfolio falls below carrying value, and the Company determines that a write-down of the value is appropriate. Furthermore, if older, expiring leases are replaced with leases at decreased lease rates, the lease revenue from the Company’s existing portfolio is likely to decline, with the magnitude of the decline dependent on the length of the downturn and the depth of the decline in market rents.
 
Nord Term Loan Risks. The special-purpose subsidiaries that own the five aircraft serving as collateral for the Nord Term Loans are the named borrowers, and each Nord Term Loan is secured by the corresponding aircraft owned by the applicable LLC Borrower. AeroCentury, as the parent corporation of each LLC Borrower, is not a party to the Term Loan agreements, but has entered into agreements with lessees of the LLC Borrowers to guarantee certain obligations to such lessees under each lessee’s lease agreement with an LLC Borrower and with the Term Loan lender to guarantee certain representations, warranties and covenants delivered by the LLC Borrowers to the Term Loan lender in connection with the refinancing transaction. As a result, although the Term Loans are non-recourse to AeroCentury, AeroCentury could become directly responsible for the LLC Borrowers’ obligations under the Term Loans and the related lease agreements pursuant to these guaranty arrangements. Moreover, any noncompliance under the Term Loans by any LLC Borrower could negatively affect the liquidity, aircraft portfolio and reputation of the Company as a whole.
 
The required payments under each Nord Term Loan are expected to be funded by the operating lease rental revenue received from the lessee of and sales proceeds from the corresponding aircraft, and each LLC Borrower’s continued compliance with its Nord Term Loan will depend upon the lessee’s compliance with its lease payment obligations. Failure by a lessee to make timely payments could result in a default under the applicable Term Loan and could result in an acceleration of all Nord Term Loan indebtedness of the applicable LLC Borrower or foreclosure by the Term Loan lender on the applicable aircraft. Furthermore, a default by any LLC Borrower under its Term Loan would also constitute a default under the MUFG Indebtedness, and therefore any failure by an LLC Borrower’s lessee to comply with its lease payment obligations or any other compliance failure by an LLC Borrower under its Term Loan could result in the Company’s noncompliance under several of its debt agreements, which could have a material negative adverse effect on the Company’s liquidity and capital resources.
 
In March 2020, one of the Company’s customers, which leases two regional jet aircraft subject to Nord Term Loan financing, did not make its quarterly rent payment which, in turn, resulted in a loan payment default by the Company’s special-purpose subsidiary that owns the aircraft. The Company is currently discussing remedies with both the customer and Nord.
 
15
 
 
Lessee Credit Risk. The Company carefully evaluates the credit risk of each customer and attempts to obtain a third-party guaranty, letters of credit or other credit enhancements, if it deems them necessary, in addition to customary security deposits. There can be no assurance, however, that such enhancements will be available, or that, if obtained, they will fully protect the Company from losses resulting from a lessee default or bankruptcy.
 
If a U.S. lessee defaults under a lease and seeks protection under Chapter 11 of the United States Bankruptcy Code, Section 1110 of the Bankruptcy Code would automatically prevent the Company from exercising any remedies against such lessee for a period of 60 days. After the 60-day period had passed, the lessee would have to agree to perform the lease obligations and cure any defaults, or the Company would have the right to repossess the equipment. However, this procedure under the Bankruptcy Code has been subject to significant litigation, and it is possible that the Company’s enforcement rights would be further adversely affected in the event of a bankruptcy filing by a defaulting lessee.
 
Lessees located in low-growth or no-growth areas of the world carry heightened risk of lessee default. The Company has had customers that have experienced significant financial difficulties, become insolvent, or have entered bankruptcy proceedings, including the European regional airline that ceased operations and declared bankruptcy after the Company terminated its leases and repossessed the four aircraft subject to the leases in the third quarter of 2019. A customer’s insolvency or bankruptcy usually results in the Company’s total loss of the receivables from that customer, as well as additional costs in order to repossess and, in some cases, repair the aircraft leased by the customer. The Company closely monitors the performance of all of its lessees and its risk exposure to any lessee that may be facing financial difficulties, in order to guide decisions with respect to such lessee in an attempt to mitigate losses in the event the lessee is unable to meet or rejects its lease obligations. There can be no assurance, however, that additional customers will not become insolvent, file for bankruptcy or otherwise fail to perform their lease obligations, or that the Company will be able to mitigate any of the resultant losses.
 
It is possible that the Company may enter into deferral agreements for overdue lessee obligations. When a customer requests a deferral of lease obligations, the Company evaluates the lessee’s financial plan, the likelihood that the lessee can remain a viable carrier, and whether the deferral is likely to be repaid according to the agreed schedule. The Company may elect to record the deferred rent and reserves payments from the lessee on a cash basis, which could have a material effect on the Company’s financial results in the applicable periods. Deferral agreements with lessees also reduce the Company’s borrowing capacity under its MUFG Credit Facility.
 
Concentration of Lessees. For the year ended December 31, 2019, the Company’s five largest customers accounted for a total of approximately 86% of the Company’s monthly operating lease revenue. As discussed in “Outlook,” one of the Company’s largest customers based on operating lease revenue, which operated four aircraft leased by the Company, experienced financial difficulties and accrued a substantial arrearage for rent and maintenance reserves, and eventually ceased operations and declared bankruptcy. During the third quarter of 2019, the Company terminated the leases with this customer and repossessed the aircraft. Although the Company applied the security deposits and a portion of the maintenance reserves it held to past due rent and recorded $17.0 million of revenue for the remaining maintenance reserves, the Company also recorded impairment losses totaling $22.3 million related to the four aircraft based on appraisals or estimated sales proceeds. The impairment losses resulted in the Borrowing Base Default and noncompliance with several covenants under the Company’s MUFG Credit Facility, as discussed in Noncompliance with MUFG Indebtedness.
 
A lease default by or collection problem with one or a combination of any of the Company’s other significant customers could have a disproportionately negative impact on the Company’s financial results and borrowing base under the MUFG Credit Facility, and, therefore, the Company’s operating results are especially sensitive to any negative developments with respect to these customers in terms of lease compliance. In addition, if the Company’s revenues become overly concentrated in a small number of lessees, the Company could fail to comply with certain financial covenants in its MUFG Credit Facility related to customer concentration, which could result in the negative effects of such a default as described under Noncompliance with MUFG Indebtedness.
 
Consummation of Merger May Subject the Company to Additional Risks. On October 1, 2018 the Company acquired JHC, the sole shareholder of the Company’s management company, JMC. The acquisition of JHC subjects the Company to certain risks, including the following:
 
● Assumption of Expenses Covered under Management Agreement. Under the Management Agreement with JMC, the Company paid management fees to JMC based upon the book value of the Company’s aircraft assets, an acquisition fee for each asset purchased by the Company, and a remarketing/re-lease fee for each sale or re-lease transaction entered into with respect to the Company’s aircraft. In return, JMC provided the Company with comprehensive management services, under which JMC had full responsibility for payment of all employee salaries and benefits, outside technical services, worldwide travel needed to promote the Company's business, office space, utilities, IT and communications, furniture and fixtures, and other general administrative and overhead costs. Under the Management Agreement, if the fees collected were not adequate to cover JMC’s expenses in managing the Company’s portfolio, such losses were borne entirely by JMC.
 
Upon completion of the Merger on October 1, 2018, the Company became responsible for all expenses that were previously incurred by JMC in managing the Company. The risk of increased costs for these expenses is now the responsibility of the Company, and such costs are no longer limited to the amount of the management fee, as was the case under the third-party management structure with JMC. Consequently, the risk of any cost overruns or unanticipated expenses in asset management are borne solely by the Company and are no longer shifted to an unconsolidated third party. As a result, the Company’s expense categories, amounts, timing and patterns could change significantly in post-Merger periods and could be subject to increased period-to-period fluctuations.
 
● Internalization of Management. JHC is now a wholly-owned subsidiary of the Company, and sole responsibility for management of the combined company now falls upon the Company’s management. If the Company is dissatisfied with management services, the Company will have to address the shortcomings internally, and if they cannot be resolved with existing management and personnel, the Company may be required to reorganize its management structure and/or replace personnel or seek new third-party management services, either of which could result in the Company incurring significant expense and use of resources.
 
● Assumption of JHC Liabilities. By acquiring JHC in the Merger, JHC has become a wholly-owned subsidiary of the Company. To the extent that JHC or any of its subsidiaries have liabilities, these have become liabilities of the Company on a consolidated basis. Although the Merger Agreement provides for limited indemnification by JHC shareholders for certain liabilities of JHC or its subsidiaries that arise from pre-Merger occurrences and the Company performed due diligence reviews of the liabilities of JHC and its subsidiaries before completion of the Merger, the indemnification is limited to the scope of representations and warranties in the Merger Agreement, some of which have already expired, recovery under the indemnification is limited to the consideration paid by the Company to JHC’s shareholders and such due diligence reviews are inherently non-exhaustive and may not have uncovered all known or contingent liabilities or presently unknown liabilities that may emerge after the Merger’s completion.
 
16
 
 
Ownership Risks. The Company’s leases typically are for a period shorter than the entire, anticipated, remaining useful life of the leased assets. As a result, the Company’s recovery of its investment and realization of its expected yield in such a leased asset is dependent upon the Company’s ability to profitably re-lease or sell the asset following the expiration of the lease. This ability is affected by worldwide economic conditions, general aircraft market conditions, regulatory changes, changes in the supply or cost of aircraft equipment, and technological developments that may cause the asset to become obsolete. If the Company is unable to remarket its assets on favorable terms when the leases for such assets expire, the Company’s financial condition, cash flow, ability to service debt, and results of operations could be adversely affected.
 
The Company typically acquires used aircraft equipment. The market for used aircraft equipment has been cyclical, and generally reflects economic conditions and the strength of the travel and transportation industry. The demand for and value of many types of used aircraft in the recent past has been depressed by such factors as airline financial difficulties, airline consolidations, the number of new aircraft on order, an excess supply of newly manufactured aircraft or used aircraft coming off lease, as well as introduction of new aircraft models and types that may be more technologically advanced, more fuel efficient and/or less costly to maintain and operate. Values may also increase or decrease for certain aircraft types that become more or less desirable based on market conditions and changing airline capacity. Declines in the value of the Company’s aircraft and any resulting decline in market demand for these aircraft could materially adversely affect the Company’s revenues, performance and liquidity. Additionally, the Company’s ability to borrow under the current terms of its MUFG Credit Facility is subject to a covenant setting forth a maximum ratio of (i) the outstanding debt under the facility to (ii) the appraised value of the collateral base of aircraft assets securing the MUFG Credit Facility. As a result, a significant drop in the appraised market value of the Company’s aircraft portfolio could require the Company to make a substantial prepayment of outstanding principal under the MUFG Credit Facility in order to avoid a default under the MUFG Credit Facility and limit the utility of the MUFG Credit Facility as a source of future funding. As discussed above, these outcomes had occurred as of September 30, 2019 due to the Borrowing Base Default, in which the Company had a $9.4 million borrowing base deficiency under the MUFG Credit Facility. Subsequent updated appraisal values for assets included in the borrowing base of the MUFG Credit Facility resulted in an increase in the Borrowing Base Deficit to $29.8 million at December 31, 2019. The Company is currently in discussions with the Credit Facility Lenders to convert the MUFG Credit Facility into the MUFG Term Loan.
 
In addition, a successful investment in an asset subject to an operating lease depends in part upon having the asset returned by the lessee in the condition as required under the lease. Each operating lease obligates a customer to return an asset to the Company in a specified condition, generally in a condition that will allow the aircraft to be readily re-leased to a new lessee, and/or pay an economic settlement for redelivery that is not in compliance with such specified conditions. The Company strives to ensure this result through onsite management during the return process. However, if a lessee becomes insolvent during the term of its lease and the Company has to repossess the asset, it is unlikely that the lessee would have the financial ability to meet these return obligations. In addition, if a lessee files for bankruptcy and rejects the aircraft lease, the lessee would be required to return the aircraft but would be relieved from further lease obligations, including return conditions specified in the lease. In either case, it is likely that the Company would be required to expend funds in excess of any maintenance reserves collected to return the asset to a remarketable condition.
 
Several of the Company’s leases do not require payment of monthly maintenance reserves, which serve as the lessee’s advance payment for its future repair and maintenance obligations. If repossession due to lessee default or bankruptcy occurred under such a lease, the Company would need to pay the costs of unperformed repair and maintenance under the applicable lease and would likely incur an unanticipated expense in order to re-lease or sell the asset.
 
Furthermore, the occurrence of unexpected adverse changes that impact the Company’s estimates of expected cash flow from an asset could result in an asset impairment charge against the Company’s earnings. The Company periodically reviews long-term assets for impairment, particularly when events or changes in circumstances indicate the carrying value of an asset may not be recoverable. An impairment charge is recorded when the carrying amount of an asset is estimated to be not recoverable and exceeds its fair value. The Company recorded impairment charges for some of its aircraft in 2018 and 2019, and may be required to record asset impairment charges in the future as a result of a prolonged weak economic environment, challenging market conditions in the airline industry, events related to particular lessees, assets or asset types or other factors affecting the value of aircraft or engines.
 
Interest Rate Risk. Although the debt under the Nord Term Loans is fully covered by interest rate swaps that effectively convert the variable interest rate Nord Term Loan payments to fixed rate payments, as a result of the termination of the MUFG Swaps, the amount of interest paid by the Company under the MUFG Indebtedness will fluctuate depending on prevailing interest rates. Consequently, interest rate increases could materially increase the Company’s interest payment obligations under its MUFG Indebtedness and thus could have a material adverse effect on the Company’s liquidity and financial condition. Further, because the interest rates under the Nord Term Loans are based on LIBOR and the interest on the MUFG Indebtedness may be subject to LIBOR, which is the subject of recent national, international and other regulatory guidance and proposals for reform, the amount of the Company’s interest payments under these arrangements could increase if LIBOR is phased out or performs differently than in the past.
 
Lease rates typically, but not always, move over time with interest rates, but market demand and numerous other asset-specific factors also affect lease rates. Because the Company’s typical lease rates are fixed at lease origination, interest rate changes during the lease term have no effect on existing lease rental payments. Therefore, if interest rates rise significantly and there is relatively little lease origination by the Company following such rate increases, the Company could experience decreased net income as additional interest expense outpaces revenue growth. Further, even if significant lease origination occurs following such rate increases, other contemporaneous aircraft market forces may result in lower or flat rental rates, thereby decreasing net income.
 
Concentration of Aircraft Type. The Company’s aircraft portfolio is currently focused on a small number of aircraft types and models relative to the variety of aircraft used in the commercial air carrier market. A change in the desirability and availability of any of the particular types and models of aircraft owned by the Company could affect valuations and future rental revenues of such aircraft, and would have a disproportionately significant impact on the Company’s portfolio value. In addition, the Company is dependent on the third-party companies that manufacture and provide service for the aircraft types in the Company’s portfolio. The Company has no control over these companies, and they could decide to curtail or discontinue production of or service for these aircraft types at any time or significantly increase their costs, which could negatively impact the Company’s prospects and performance. These effects would diminish if the Company acquires assets of other types. Conversely, acquisition of additional aircraft of the types currently owned by the Company will increase the Company’s risks related to its concentration of those aircraft types.
 
Competition. The aircraft leasing industry is highly competitive. The Company competes with other leasing companies, banks, financial institutions, private equity firms, aircraft leasing syndicates, aircraft manufacturers, distributors, airlines and aircraft operators, equipment managers, equipment leasing programs and other parties engaged in leasing, managing or remarketing aircraft. Many of these competitors have longer operating histories, more experience, larger customer bases, more expansive brand recognition, deeper market penetration and significantly greater financial resources.
 
Competition in the Company's market niche of regional aircraft has increased significantly recently as a result of increased focus on regional air carriers by competitors who have traditionally neglected this market, new entrants to the acquisition and leasing market and consolidation of certain competitors. This will likely continue to create upward pressure on acquisition prices for many of the aircraft types that the Company has targeted to buy and, at the same time, create downward pressure on lease rates, resulting in lower revenues and margins for the Company and, therefore, fewer acceptable acquisition opportunities for the Company.
 
Competitors in the niche that have lower costs of capital than the Company could gain have a significant advantage over the Company. Lower capital costs allow competitors to offer lower lease rates to carriers and/or the prices the competitor is able to pay for a leased asset. Due to the Company’s recent default under its MUFG Credit Facility, locating debt financing in line with the Company’s historical cost of capital in the short term could be difficult thereby exacerbating the competitive disadvantage of the Company with respect to cost of capital, until the Company re-establishes its financial stability following execution of its Recapitalization Plan.
 
17
 
 
Risks Related to Regional Air Carriers. The Company’s continued focus on its customer base of regional air carriers subjects the Company to certain risks. Many regional airlines rely heavily or even exclusively on a code-share or other contractual relationship with a major carrier for revenue, and can face financial difficulty or failure if the major carrier terminates or fails to perform under the relationship or files for bankruptcy or becomes insolvent. Some regional carriers may depend on contractual arrangements with industrial customers such as mining or oil companies, or franchises from governmental agencies that provide subsidies for operating essential air routes, which may be subject to termination or cancellation on short notice. Furthermore, many lessees in the regional air carrier market are start-up, low-capital, and/or low-margin operators. A current concern for regional air carriers is the supply of qualified pilots. Due to recently imposed regulations of the U.S. Federal Aviation Administration requiring a higher minimum number of hours to qualify as a commercial passenger pilot, many regional airlines have had difficulty meeting their business plans for expansion. This could in turn affect demand for the aircraft types in the Company’s portfolio and the Company’s business, performance and liquidity.
 
International Risks. The Company leases assets in overseas markets. Leases with foreign lessees, however, may present different risks than those with domestic lessees. Most of the Company’s expected growth is outside of North America.
 
A lease with a foreign lessee is subject to risks related to the economy of the country or region in which such lessee is located, which may be weaker or less stable than the U.S. economy. An economic downturn in a particular country or region may impact a foreign lessee’s ability to make lease payments, even if the U.S. and other foreign economies remain strong and stable.
 
The Company is subject to certain risks related to currency conversion fluctuations. The Company currently has one customer with rent obligations payable in Euros, and the Company may, from time to time, agree to additional leases that permit payment in foreign currency, which would subject such lease revenue to monetary risk due to currency exchange rate fluctuations. During the periods covered by this report, the Company considers the estimated effect on its revenues of foreign currency exchange rate fluctuations to be immaterial; however, the impact of these fluctuations may increase in future periods if additional rent obligations become payable in foreign currencies.
 
Even with U.S. dollar-denominated lease payment provisions, the Company could still be negatively affected by a devaluation of a foreign lessee’s local currency relative to the U.S. dollar, which would make it more difficult for the lessee to meet its U.S. dollar-denominated payments and increase the risk of default of that lessee, particularly if its revenue is primarily derived in its local currency.
 
Foreign lessees that operate internationally may also face restrictions on repatriating foreign revenue to their home country. This could create a cash flow crisis for an otherwise profitable carrier, affecting its ability to meet its lease obligations. Foreign lessees may also face restrictions on payment obligations to foreign vendors, including the Company, which may affect their ability to timely meet lease obligations to the Company.
 
Foreign lessees are not subject to U.S. bankruptcy laws, although there may be debtor protection similar to U.S. bankruptcy laws available in some jurisdictions. Certain countries do not have a central registration or recording system which can be used to locally record the Company’s interest in equipment and related leases. This could make it more difficult for the Company to recover an aircraft in the event of a default by a foreign lessee. In any event, collection and enforcement may be more difficult and complicated in foreign countries.
 
Ownership of a leased asset operating in a foreign country and/or by a foreign carrier may subject the Company to additional tax liabilities that are not present with aircraft operated in the United States. Depending on the jurisdiction, laws governing such tax liabilities may be complex, not well formed or not uniformly enforced. In such jurisdictions, the Company may decide to take an uncertain tax position based on the best advice of the local tax experts it engages, which position may be challenged by the taxing authority. Any such challenge could result in increased tax obligations in these jurisdictions going forward or assessments of liability by the taxing authority, in which case the Company may be required to pay penalties and interest on the assessed amount that would not give rise to a corresponding foreign tax credit on the Company’s U.S. tax returns.
 
The Trump administration and members of the U.S. Congress have made public statements about significant changes in U.S. trade policy and have taken certain actions that materially impact U.S. trade, including terminating, renegotiating or otherwise modifying U.S. trade agreements with countries in various regions and imposing tariffs on certain goods imported into the United States. These changes in U.S. trade policy have triggered and could continue to trigger retaliatory actions by affected countries, including China, resulting in “trade wars” with these countries. These trade wars could generally increase the cost of aircraft, aircraft and engine components and other goods regularly imported by the Company’s customers, thereby increasing costs of operations for its air carrier customers that are located in the affected countries. The increased costs could materially and adversely impact the financial health of affected air carriers, which in turn could have a negative impact on the Company’s business opportunities, and if the Company’s lessees are significantly affected, could have a direct impact on the Company’s financial results. Furthermore, the Company often incurs maintenance or repair expenses not covered by lessees in foreign countries, which expenses could increase if such countries are affected by such a trade war.
 
Level of Portfolio Diversification. The Company intends to continue to focus solely on regional aircraft. Although the Company invested in a limited number of turboprop aircraft types in the past, including two in 2018, the Company has also acquired several regional jet aircraft types, which now comprise a larger percentage of the Company’s portfolio based on number of aircraft and net book value. The Company may continue to seek acquisition opportunities for new types and models of aircraft used by the Company’s targeted customer base of regional air carriers. Acquisition of aircraft types not previously owned by the Company entails greater ownership risk due to the Company’s lack of experience managing those assets and the potentially different types of customers that may lease them. Conversely, the Company’s focus on a more limited set of aircraft types and solely on regional aircraft subjects the Company to risks that disproportionately impact these aircraft markets, which are described elsewhere in this discussion. As a result, the level of asset and market diversification the Company chooses to pursue could have a significant impact on its performance and results.
 
18
 
 
Transition to LIBOR alternative reference rate. The London Inter-bank Offered Rate (“LIBOR”) represents the interest rate at which banks offer to lend funds to one another in the international interbank market for short-term loans, and is the index rate of a portion of the Company’s MUFG Credit Facility debt and the Nord Term Loans of the LLC Borrower subsidiaries. Beginning in 2008, concerns were expressed that some of the member banks surveyed by the British Bankers’ Association in connection with the calculation of LIBOR rates may have been under-reporting or otherwise manipulating the interbank lending rates applicable to them. Regulators and law enforcement agencies from a number of governments have conducted investigations relating to the calculation of LIBOR across a range of maturities and currencies. If manipulation of LIBOR or another inter-bank lending rate occurred, it may have resulted in that rate being artificially lower (or higher) than it otherwise would have been. Responsibility for the calculation of LIBOR was transferred to ICE Benchmark Administration Limited, as independent LIBOR administrator, effective February 1, 2014. On July 27, 2017, the U.K. Financial Conduct Authority announced that it will no longer persuade or compel banks to submit rates for the calculation of LIBOR rates after 2021 (the “July 27th Announcement”). The July 27th Announcement indicates that the continuation of LIBOR on the current basis cannot and will not be guaranteed after 2021. Consequently, at this time, it is not possible to predict whether and to what extent banks will continue to provide LIBOR submissions to the administrator of LIBOR or whether any additional reforms to LIBOR may be enacted in the United Kingdom or elsewhere. Similarly, it is not possible to predict whether LIBOR will continue to be viewed as an acceptable benchmark, what rate or rates may become accepted alternatives to LIBOR or the effect of any such changes in views or alternatives on the value of LIBOR-linked securities.
 
 
Although the Financial Stability Oversight Council has recommended a transition to an alternative reference rate in the event LIBOR is no longer available after 2021, which would affect the Company’s MUFG Indebtedness and some of its Term Loans, such plans are still in development and, if enacted, could present challenges. Moreover, contracts linked to LIBOR are vast in number and value, are intertwined with numerous financial products and services, and have diverse parties. The downstream effect of unwinding or transitioning such contracts could cause instability and negatively impact the financial markets and individual institutions. The uncertainty surrounding the sustainability of LIBOR more generally could undermine market integrity and threaten individual financial institutions and the U.S. financial system more broadly.
 
With respect to the Company’s indebtedness, if LIBOR is no longer published after 2021 and the Company and its lenders are unable to agree on a mutually acceptable LIBOR alternative for any outstanding debt indexed to LIBOR, the debt agreements could be terminated and repayment of the indebtedness could be accelerated to become immediately due and payable to the lender. This outcome could also lead to substantial breakage fees being payable by the Company in addition to the outstanding principal of such debt. If any of these risks were to occur, the Company could experience material cash shortfalls or be forced into bankruptcy or liquidation.
 
Swap Counterparty Credit Risks. AeroCentury and its LLC Borrowers have entered into certain interest rate swaps to hedge the interest rate risk associated with a portion of the MUFG Credit Facility and all of the Nord Term Loans indebtedness. These interest rate swap agreements effectively convert the variable interest rate payments under the LLC Borrower Term Loan indebtedness to fixed rate payments, and were intended to provide some economic hedge against interest rate fluctuations related to the MUFG Credit Facility. If an interest rate swap counterparty cannot perform under the terms of the interest rate swap due to insolvency, bankruptcy or other reasons, the Company would not receive payments due from the counterparty under that interest rate swap agreement, in which case, depending on interest rate conditions at the time of such default, the Company could be unable to meet its variable interest rate debt obligations and may default under one or more loan agreements. In such a case, the debt under the loan agreement could be accelerated and become immediately due and payable, the collateral securing the loan indebtedness could be foreclosed upon, and/or the Company might incur a loss on the fair market value of the interest rate swap agreement. Any such outcome could have a material adverse effect on the Company’s performance, liquidity and ability to continue operations.
 
 
 
Swap Breakage Fees. To reduce the amount of interest that accrues under its indebtedness, the Company could choose to prepay certain amounts borrowed under such loans. If the Company has hedged its variable interest rate indebtedness, in addition to prepayment fees that might be payable to the lender of the underlying indebtedness, the Company may also be obligated to pay certain swap breakage fees to the interest rate swap counterparty in order to unwind the interest rate swap related to the indebtedness that is being prepaid. Thus, the Company’s interest rate swaps could reduce the economic benefit that the Company might otherwise achieve through prepayment or could render an otherwise advantageous debt prepayment uneconomical.
 
Government Regulation. There are a number of areas in which government regulation may result in costs to the Company. These include aircraft registration safety requirements, required equipment modifications, maximum aircraft age, and aircraft noise requirements. Although it is contemplated that the burden and cost of complying with such requirements will fall primarily upon lessees, there can be no assurance that the cost will not fall on the Company. Additionally, even if lessees are responsible for the costs of complying with these requirements, changes to the requirements to make them more stringent or otherwise increase these costs could negatively impact the Company’s customers’ businesses, which could result in nonperformance under their lease agreements or decreased demand for the Company’s aircraft. Furthermore, future government regulations could cause the value of any noncomplying equipment owned by the Company to decline substantially. Moreover, any failure by the Company to comply with the government regulations applicable to it could result in sanctions, fines or other penalties, which could harm the Company’s reputation and performance.
 
Casualties and Insurance Coverage. The Company, as an owner of transportation equipment, may be named in a suit claiming damages for injuries or damage to property caused by its assets. As a triple-net lessor, the Company is generally protected against such claims, because the lessee would be responsible for, insure against and indemnify the Company for such claims. A “triple net lease” is a lease under which, in addition to monthly rental payments, the lessee is generally responsible for the taxes, insurance and maintenance and repair of the aircraft arising from the use and operation of the aircraft during the term of the lease. Although the United States Aviation Act may provide some additional protection with respect to the Company’s aircraft assets, it is unclear to what extent such statutory protection would be available to the Company with respect to its assets that are operated in foreign countries where the provisions of this law may not apply.
 
The Company’s leases generally require a lessee to insure against likely risks of loss or damage to the leased asset and liability to passengers and third parties pursuant to industry standard insurance policies, and require lessees to provide insurance certificates documenting the policy periods and coverage amounts. The Company has adopted measures designed to ensure these insurance policies continue to be maintained, including tracking receipt of the insurance certificates, calendaring their expiration dates, and reminding lessees of their obligations to maintain such insurance and provide current insurance certificates to the Company if a replacement certificate is not timely received prior to the expiration of an existing certificate.
 
Despite these requirements and procedures, there may be certain cases where losses or liabilities are not entirely covered by the lessee or its insurance. Although the Company believes the possibility of such an event is remote, any such uninsured loss or liability, or insured loss or liability for which insurance proceeds are inadequate, might result in a loss of invested capital in and any profits anticipated from the applicable aircraft, as well as potential claims directly against the Company.
 
Compliance with Environmental Regulations. Compliance with environmental regulations may harm the Company’s business. Many aspects of aircraft operations are subject to increasingly stringent environmental regulations, and growing concerns about climate change may result in the imposition by the U.S. and foreign governments of additional regulation of carbon emissions, including requirements to adopt technology to reduce the amount of carbon emissions or imposing a fee or tax system on carbon emitters. Any such regulation could be directed at the Company’s customers, as operators of aircraft, at the Company, as an owner of aircraft, and/or on the manufacturers of aircraft. Under the Company’s triple-net lease arrangements, the Company would likely try to shift responsibility for compliance to its lessees; however, it may not be able to do so due to competitive or other market factors, and there might be some compliance costs that the Company could not pass through to its customers and would itself have to bear. Although it is not expected that the costs of complying with current environmental regulations will have a material adverse effect on the Company’s financial position, results of operations, or liquidity, there is no assurance that the costs of complying with environmental regulations as amended or adopted in the future will not have such an effect.
 
Cybersecurity Risks. The Company believes that its main vulnerabilities to a cyber-attack would be interruption of the Company’s email communications internally and with third parties, loss of customer and lease archives, and loss of document sharing between the Company’s offices and remote workers. Such an attack could temporarily impede the efficiency of the Company’s operations; however, the Company believes that sufficient replacement and backup mechanisms exist in the event of such an interruption such that there would not be a material adverse financial impact on the Company’s business. A cyber-hacker could also gain access to and release proprietary information of the Company, its customers, suppliers and employees stored on the Company’s data network. Such a breach could harm the Company’s reputation and result in competitive disadvantages, litigation, lost revenues, additional costs, or liability to third parties. While the Company believes that it has sufficient cybersecurity measures in place commensurate with the risks to the Company of a successful cyber-attack or breach of its data security, its resources and technical sophistication may not be adequate to prevent or adequately respond to and mitigate all types of cyber-attacks.
 
Possible Volatility of Stock Price. The market price of the Company’s common stock is subject to fluctuations following developments relating to the Company’s operating results, changes in general conditions in the economy, the financial markets or the airline industry, changes in accounting principles or tax laws applicable to the Company or its lessees, or other developments affecting the Company, its customers or its competitors, or arising from other investor sentiment unknown to the Company. Because the Company has a relatively small capitalization of approximately 1.55 million shares outstanding, there is a correspondingly limited amount of trading and float of the Company’s shares. Consequently, the Company’s stock price is more sensitive to a single large trade or a small number of simultaneous trades along the same trend than a company with larger capitalization and higher trading volume and float. This stock price and trading volume volatility could limit the Company’s ability to use its capital stock to raise capital, if and when needed or desired, or as consideration for other types of transactions, including strategic collaborations, investments or acquisitions. Any such limitation could negatively affect the Company’s performance, growth prospects and liquidity.
 
19
 
 
Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
 
Disclosure under this item has been omitted pursuant to the rules of the SEC that permit smaller reporting companies to omit this information.
 
 
Item 8.  Financial Statements and Supplementary Data.
 
Disclosure of certain supplementary financial data has been omitted pursuant to the rules of the SEC that permit smaller reporting companies to omit such information.
 
The following financial statements and schedules are included in this report below:
 
(1) Financial Statements:
 
Report of Independent Registered Public Accounting Firm
Consolidated Balance Sheets as of December 31, 2019 and 2018
Consolidated Statements of Operations for the Years Ended December 31, 2019 and 2018
Consolidated Statements of Comprehensive Loss for the Years Ended December 31, 2019 and 2018
Consolidated Statements of Stockholders’ Equity for the Years Ended December 31, 2019 and 2018
Consolidated Statements of Cash Flows for the Years Ended December 31, 2019 and 2018
Notes to Consolidated Financial Statements
 
(2) Schedules:
 
All schedules have been omitted because the required information is presented in the consolidated financial
statements or is not applicable.
 
 
 
20
 
Report of Independent Registered Public Accounting Firm
 
Shareholders and Board of Directors
AeroCentury Corp.
Burlingame, California
 
 
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated balance sheets of AeroCentury Corp. (the “Company”) as of December 31, 2019 and 2018, the related consolidated statements of operations, comprehensive loss, stockholders’ equity, and cash flows for the years then ended, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2019 and 2018, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.
 
Going Concern Uncertainty
 
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, the Company is in default of its debt obligations under the credit facility that raises substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 1. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
 
Change in Accounting Method Related to Leases
 
As discussed in Notes 1, 2 and 8 to the consolidated financial statements, the Company has changed its method of accounting for leases in 2019 due to the adoption of Accounting Standards Codification 842, Leases.
 
Basis for Opinion
 
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
 
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
 
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
 
/s/ BDO USA, LLP
 
We have served as the Company’s auditor since 2006.
 
San Francisco, California
March 30, 2020
 
 
21
 
 
AeroCentury Corp.
Consolidated Balance Sheets
  
 
ASSETS
 
 
 
December 31,
 
 
December 31,
 
 
 
2019
 
 
2018
 
Assets:
 
 
 
 
 
 
Cash and cash equivalents
 $2,350,200 
 $1,542,500 
Restricted cash
  1,076,900 
   
Securities
  - 
  121,000 
Accounts receivable, including deferred rent of $828,000 and $869,600 at
    December 31, 2019 and December 31, 2018, respectively
  1,139,700 
  3,967,200 
Finance leases receivable, net of allowance for doubtful accounts of $2,908,600 and $0 at December 31, 2019 and December 31, 2018, respectively
  8,802,100 
  15,250,900 
Aircraft and aircraft engines held for lease, net of accumulated depreciation of $31,338,700 and $36,675,500 at December 31, 2019 and December 31, 2018, respectively
  108,368,600 
  184,019,900 
Assets held for sale
  26,036,600 
  10,223,300 
Property, equipment and furnishings, net of accumulated depreciation of $9,600 and $2,200 at December 31, 2019 and December 31, 2018, respectively
  62,900 
  69,100 
Office lease right of use, net of accumulated amortization of $524,500 at December 31, 2019
  948,300 
  - 
Favorable office lease acquired, net of accumulated amortization of $61,700 at
   December 31, 2018
  - 
  863,300 
Deferred tax asset
  517,700 
  254,900 
Prepaid expenses and other assets
  292,800 
  840,100 
Total assets
 $149,595,800 
 $217,152,200 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
Liabilities:
    
    
Accounts payable and accrued expenses
 $736,000 
 $1,025,600 
Accrued payroll
  164,200 
  78,600 
Notes payable and accrued interest, net of unamortized debt issuance costs of
  $3,825,700 and $674,300 at December 31, 2019 and
  December 31, 2018, respectively
  111,638,400 
  131,092,200 
Derivative liability
  1,824,500 
  - 
Lease liability
  336,400 
    
Maintenance reserves
  4,413,100 
  28,527,500 
Accrued maintenance costs
  446,300 
  463,300 
Security deposits
  1,034,300 
  3,367,800 
Unearned revenues
  3,039,200 
  3,274,800 
Deferred income taxes
  2,529,800 
  7,537,100 
Income taxes payable
  175,000 
  497,400 
Total liabilities
  126,337,200 
  175,864,300 
Commitments and contingencies (Note 11)
    
    
Stockholders’ equity:
    
    
Preferred stock, $0.001 par value, 2,000,000 shares
  authorized, no shares issued and outstanding
  - 
  - 
Common stock, $0.001 par value, 10,000,000 shares authorized, 1,545,884 outstanding at December 31, 2019 and December 31, 2018, respectively
  1,800 
  1,800 
Paid-in capital
  16,782,800 
  16,782,800 
Retained earnings
  10,882,100 
  27,540,600 
Accumulated other comprehensive loss
  (1,370,800)
  - 
 
  26,295,900 
  44,325,200 
Treasury stock at cost, 213,332 shares at December 31, 2019 and December 31, 2018
  (3,037,300)
  (3,037,300)
Total stockholders’ equity
  23,258,600 
  41,287,900 
Total liabilities and stockholders’ equity
 $149,595,800 
 $217,152,200 
 
The accompanying notes are an integral part of these consolidated financial statements.
 
 
22
 
 
AeroCentury Corp.
Consolidated Statements of Operations
 
 
 
For the Years Ended December 31,
 
 
 
2019
 
 
2018
 
Revenues and other income:
 
 
 
 
 
 
Operating lease revenue
 $25,609,000 
 $27,637,500 
Maintenance reserves revenue, net
  16,968,400 
  1,629,000 
Finance lease revenue
  852,600 
  1,251,000 
Net gain/(loss) on disposal of assets
  326,900 
  (3,408,700)
Net loss on sales-type finance leases
  (170,600)
  - 
Other income
  12,800 
  7,600 
 
  43,599,100 
  27,116,400 
Expenses:
    
    
Provision for impairment in value of aircraft
  31,007,400 
  2,971,500 
Depreciation
  11,587,500 
  12,637,100 
Interest
  11,302,900 
  9,506,000 
Professional fees, general and administrative and other
  4,005,100 
  2,343,800 
Bad debt expense
  2,908,600 
  - 
Salaries and employee benefits
  2,367,500 
  592,300 
Maintenance
  850,800 
  636,000 
Insurance
  621,300 
  383,700 
Other taxes
  114,300 
  90,200 
Management fees
  - 
  4,482,800 
Settlement loss
  - 
  2,527,000 
 
  64,765,400 
  36,170,400 
Loss before income tax benefit
  (21,166,300)
  (9,054,000)
Income tax benefit
  (4,507,800)
  (972,800)
Net loss
 $(16,658,500)
 $(8,081,200)
Loss per share:
    
    
  Basic
 $(10.78)
 $(5.58)
  Diluted
 $(10.78)
 $(5.58)
Weighted average shares used in loss per share computations:
    
    
  Basic
  1,545,884 
  1,449,261 
  Diluted
  1,545,884 
  1,449,261 
 
The accompanying notes are an integral part of these consolidated financial statements.
 
 
23
 
 
AeroCentury Corp.
Consolidated Statements of Comprehensive Loss
 
 
 
For the Years Ended December 31,
 
 
 
2019
 
 
2018
 
Net loss
 $(16,658,500)
 $(8,081,200)
Other comprehensive loss:
    
    
  Unrealized losses on derivative instruments
  (1,932,100)
  - 
  Reclassification of net unrealized losses on derivative
    instruments to interest expense
  186,400 
    
  Tax benefit related to items of other comprehensive loss
  374,900 
  - 
  Other comprehensive loss
  (1,370,800)
  - 
Total comprehensive loss
 $(18,029,300)
 $(8,081,200)
 
The accompanying notes are an integral part of these consolidated financial statements.
 
 
24
 
 
AeroCentury Corp.
Consolidated Statements of Stockholders’ Equity
For the Years Ended December 31, 2019 and 2018
 
 
 
Number of Common Stock Shares Outstanding
 
 
Common
Stock
 
 
Paid-in
Capital
 
 
Retained
Earnings
 
 
Treasury
Stock
 
 
Accumulated Other Comprehensive Loss
 
 
Total
 
Balance, December 31, 2017
  1,416,699 
 $1,600 
 $14,780,100 
 $35,621,800 
 $(3,036,800)
 $- 
 $47,366,700 
Acquisition of JHC by AeroCentury
  129,217 
  200 
  2,002,700 
  - 
  - 
   
  2,002,900 
Common stock shares held by JHC prior to the acquisition of JHC and retained as treasury stock
  (32)
  - 
  - 
  - 
  (500)
   
  (500)
Net loss
  - 
  - 
  - 
  (8,081,200)
  - 
   
  (8,081,200)
Balance December 31, 2018
  1,545,884 
  1,800 
  16,782,800 
  27,540,600 
  (3,037,300)
  - 
  41,287,900 
Net loss
  - 
  - 
  - 
  (16,658,500)
  - 
  - 
  (16,658,500)
Accumulated other comprehensive loss
  - 
  - 
  - 
  - 
  - 
  (1,370,800)
  (1,370,800)
Balance, December 31, 2019
  1,545,884 
 $1,800 
 $16,782,800 
 $10,882,100 
 $(3,037,300)
 $(1,370,800)
 $23,258,600 
 
The accompanying notes are an integral part of these consolidated financial statements.
 
 
 
 
 
25
 
 
AeroCentury Corp.
Consolidated Statements of Cash Flows
 
 
 
For the Years Ended December 31,
 
 
 
2019
 
 
2018
 
Operating activities:
 
 
 
 
 
 
  Net loss
 $(16,658,500)
 $(8,081,200)
  Adjustments to reconcile net loss to net cash provided by operating activities:
    
    
      Net (gain)/loss on disposal of assets
  (326,900)
  3,408,700 
      Net loss on sales-type finance leases
  170,600 
  - 
      Non-cash income
  - 
  (42,700)
      Depreciation
  11,587,500 
  12,637,100 
      Amortization
  - 
  61,700 
      Provision for impairment in value of aircraft
  31,007,400 
  2,971,500 
      Provision for bad debts
  2,908,600 
  - 
      Non-cash interest
  3,376,300 
  1,615,500 
      Settlement loss
  - 
  2,527,000 
      Deferred income taxes
  (4,895,200)
  (1,390,000)
      Derivative valuations
  154,000 
  - 
      Changes in operating assets and liabilities:
    
    
        Accounts receivable
  (5,962,800)
  (537,400)
        Finance leases receivable
  263,400 
  (133,100)
        Office lease right of use
  (948,300)
  - 
        Favorable office lease acquired
  863,300 
  - 
        Prepaid expenses and other
  551,700 
  (457,800)
        Taxes receivable
  (5,600)
  22,500 
        Accounts payable and accrued expenses
  (277,300)
  1,802,700 
        Accrued payroll
  85,600 
  (14,800)
        Accrued interest on notes payable
  310,200 
  (147,100)
        Office lease liability
  336,400 
  - 
        Maintenance reserves and accrued costs
  (14,016,200)
  3,552,600 
        Security deposits
  - 
  (4,100)
        Unearned revenue
  (32,100)
  827,300 
        Income taxes payable
  (322,400)
  (677,200)
Net cash provided by operating activities
  8,169,700 
  17,941,200 
Investing activities:
    
    
Proceeds from sale of aircraft and aircraft engines held for lease, net of re-sale fees
  1,702,400 
  11,688,400 
Proceeds from sale of assets held for sale, net of re-sale fees
  15,107,000 
  4,945,200 
Purchases of aircraft and aircraft engines
  - 
  (22,844,300)
Proceeds from sale of securities   
  121,000  
   
Acquisition of JHC, net of cash acquired
  - 
  (2,875,100)
Net cash provided by/(used in) investing activities
  16,930,400 
  (9,085,800)
Financing activities:
    
    
Issuance of notes payable – MUFG Credit Facility
  5,984,100 
  21,000,000 
Repayment of notes payable – MUFG Credit Facility
  (44,300,000)
  (32,600,000)
Issuance of notes payable – Nord Term Loans
  44,310,000 
  - 
Repayment of notes payable – UK LLC SPE Financing
  (9,211,100)
  (4,300,700)
Repayment of notes payable – Nord Term Loans
  (13,395,600)
  - 
Debt issuance costs
  (6,527,700)
  (70,000)
Settlement of interest rate swap
  (75,200) 
   
Net cash used in financing activities
  (23,215,500)
  (15,970,700)
Net increase/(decrease) in cash, cash equivalents and restricted cash
  1,884,600 
  (7,115,300)
Cash, cash equivalents and restricted cash, beginning of year
  1,542,500 
  8,657,800 
Cash, cash equivalents and restricted, end of year
 $3,427,100 
 $1,542,500 

The accompanying notes are an integral part of these consolidated financial statements.
 

 
 
AeroCentury Corp.
Consolidated Statements of Cash Flows (continued)
 
 The components of cash and cash equivalents and restricted cash at the end of each of the years presented consisted of:
 
              December 31,
 
  
2019
 
 
  2018 
Cash and cash equivalents
  $        2,350,200 
  $        1,542,500
Restricted cash
  1,076,900 
  - 
Cash, cash equivalents and restricted cash shown in the statement of cash flows
 $3,427,100 
 $1,542,500 
 
During the years ended December 31, 2019 and 2018, the Company paid interest totaling $8,123,100 and $8,173,900, respectively. The Company paid income taxes of $617,600 in 2019 and $1,063,200, including $627,000 of pre-Merger taxes payable by JHC and assumed by the Company as a result of the Merger, in 2018. During 2018, AeroCentury issued 129,217 shares valued at $2,002,900 related to its acquisition of JHC.
 
The accompanying notes are an integral part of these consolidated financial statements.
 
 
26
 
 
AeroCentury Corp.
Notes to Consolidated Financial Statements
December 31, 2019
 
1. Organization and Summary of Significant Accounting Policies
 
(a) The Company and Basis of Presentation
 
AeroCentury Corp. (“AeroCentury”) is a Delaware corporation incorporated in 1997. AeroCentury together with its consolidated subsidiaries is referred to as the “Company.”
 
In August 2016, AeroCentury formed two wholly-owned subsidiaries, ACY 19002 Limited (“ACY 19002”) and ACY 19003 Limited (“ACY 19003”) for the purpose of acquiring aircraft using a combination of cash and third-party financing (“UK LLC SPE Financing” or “special-purpose financing”) separate from AeroCentury’s credit facility (the “MUFG Credit Facility”). The UK LLC SPE Financing was repaid in full in February 2019 as part of a refinancing involving new non-recourse term loans totaling approximately $44.3 million (“Nord Term Loans”) made to ACY 19002, ACY 19003, and two other newly formed special-purpose subsidiaries of AeroCentury. See Note 6(b) for more information about the Nord Term Loans.
 
On October 1, 2018, AeroCentury acquired JetFleet Holding Corp. (“JHC”) in a reverse triangular merger (“Merger”) for consideration of approximately $2.9 million in cash and 129,217 shares of common stock of AeroCentury, as determined pursuant to an Agreement and Plan of Merger (the “Merger Agreement”) entered into by AeroCentury, JHC and certain other parties in October 2017. JHC is the parent company of JetFleet Management Corp. (“JMC”), which is an integrated aircraft management, marketing and financing business and the manager of the Company’s assets. Upon completion of the Merger, JHC became a wholly-owned subsidiary of the Company, and as a result, JHC's results are included in the Company's consolidated financial statements beginning on October 1, 2018.
 
In November 2018, AeroCentury formed two wholly-owned subsidiaries, ACY SN 15129 LLC (“ACY 15129”) and ACY E-175 LLC (“ACY E-175”), for the purpose of refinancing four of the Company’s aircraft using the Nord Term Loans. Because the Nord Term Loans did not close until February 2019, the subject aircraft remained as collateral under the MUFG Credit Facility as of December 31, 2018, and ACY 15129 and ACY E-175 had no activity in 2018.
 
Financial information for AeroCentury and its consolidated subsidiaries is presented on a consolidated basis in accordance with accounting principles generally accepted in the United States of America (“GAAP”) based upon the continuation of the business as a going concern. All intercompany balances and transactions have been eliminated in consolidation.
 
(b) Going Concern
 
As discussed in Note 6, the Company was in default under its MUFG Credit Facility as of December 31, 2019. The MUFG Credit Facility lenders (“Credit Facility Lenders”) have the right to exercise any and all remedies for default under the MUFG Credit Facility agreement. Such remedies include, but are not limited to, declaring the entire indebtedness immediately due and payable and, if the Company were unable to repay such accelerated indebtedness (including its obligation in connection with the termination of two interest rate swaps entered into in connection with the MUFG Credit Facility (the “MUFG Swaps”), foreclosing upon the assets of the Company that secure the MUFG Indebtedness, which consist of all of the Company’s assets except for certain assets held in the Company’s single asset special-purpose financing subsidiaries. In addition, as discussed in Note 15, the coronavirus pandemic has led to significant cash flow issues for airlines, including some of the Company’s customers, and some airlines may be unable to timely meet their obligations under their lease obligations with the Company unless government financial support is received, of which there can be no assurance. Any significant nonpayment or late payment of lease payments by a significant lessee or combination of lessees could in turn impose limits on the Company’s ability to fund its ongoing operations as well as cause new defaults under the Company’s debt obligations, which in turn could lead to an immediate acceleration of debt and foreclosure upon the Company’s assets.  As a result of these factors, there is substantial doubt regarding the Company’s ability to continue as a going concern.
 
The Company is currently in negotiations with the Credit Facility Lenders to convert the MUFG Credit Facility into a term loan facility (as converted, the The Company is currently in negotiations with the Credit Facility Lenders to convert the MUFG Credit Facility into a term loan facility (as converted, the “MUFG Term Loan” and, collectively with the MUFG Credit Facility, “MUFG Indebtedness”). The Company has engaged an investment banking advisor to assist in obtaining additional debt or equity financing (the “Recapitalization Plan”) which, if successful, would be used to repay the MUFG Indebtedness.  However, there is no assurance that this will occur.  This is further exacerbated by the significance of the COVID-19 uncertainties discussed in Note 15.
 
 
27
 
 
The consolidated financial statements presented in this Annual Report on Form 10-K have been prepared on a going concern basis and do not include any adjustments that might arise as a result of uncertainties about the Company’s ability to continue as a going concern.
 
(c) Use of Estimates
 
The Company’s consolidated financial statements have been prepared in accordance with GAAP. The preparation of consolidated 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 consolidated 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 consolidated financial statements are the residual values and useful lives of the Company’s long-lived assets, the amount and timing of future cash flows associated with each asset that are used to evaluate whether assets are impaired, accrued maintenance costs, accounting for income taxes, the assumptions used to value the Company’s derivative instruments, the valuation of the right of use asset and related lease liability associated with the Company’s office, and the amounts recorded as allowances for doubtful accounts.
 
(d) Comprehensive Income/(Loss)
 
The Company reflects changes in the fair value of its interest rate swap derivatives that are designated as hedges in other comprehensive income/(loss). Such amounts are reclassified into earnings in the periods in which the hedged transaction occurs or when it is probable that the hedged transactions will no longer occur, and are included in interest expense.
 
(e) Cash, Cash Equivalents and Restricted Cash
 
The Company considers highly liquid investments readily convertible into known amounts of cash, with original maturities of 90 days or less from the date of acquisition, as cash equivalents.
 
The Company’s restricted cash is held in an account with the agent for the Company’s MUFG Credit Facility and disbursements from the account are subject to the control and discretion of the agent for payment of principal on the MUFG Credit Facility as well as for the Company’s operating expenses.

(f) Securities
 
At December 31, 2018, the Company owned 121 shares of non-voting preferred stock in a non-public company. The stock, which had a cumulative preferred annual dividend of 10% and a liquidation value of $1,000 per share, was sold during 2019.
 
(g) Lease Accounting, Favorable Lease Acquired and Lease Right of Use Asset
 
In February 2016, the Financial Accounting Standards Board ("FASB") issued Topic 842 - Leases in the Accounting Standards Codification ("ASC"). Topic 842 substantially modifies lessee accounting for leases, requiring that lessees recognize lease assets and liabilities for leases extending beyond one year. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The Company adopted Topic 842 on January 1, 2019, electing to apply its provisions on the date of adoption and to record the cumulative effect as an adjustment to retained earnings. Lessor accounting under Topic 842 is similar to the prior accounting standard and the Company has elected to apply practical expedients under which the Company will not have to reevaluate whether a contract is a lease, the classification of its existing leases or its capitalized initial direct costs. In addition, the Company, as lessor, has elected the practical expedient to combine lease and non-lease components as one combined component for its leased aircraft for purposes of determining whether that combined component should be accounted for under Topic 606, which establishes rules that affect the amount and timing of revenue recognition for contracts with customers, or Topic 842.
 
The new standard requires a lessor to classify leases as sales-type, finance, or operating. A lease is treated as sales-type if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a finance lease. If the lessor does not convey risks and rewards or control, an operating lease results. As a result of application of the practical expedients, the Company was not required to alter the classification or carrying value of its leased or finance lease assets.
 
In connection with the Company’s acquisition of JHC, as discussed in Note 10, the Company recognized that the lease of its office facilities had rents that were substantially below the market for such office space. Consequently, the Company recorded $925,000 as the value of below-market rents at the October 1, 2018 date of the JHC acquisition, and amortized such amount on a level basis over the remaining term of the office lease, including two one-year bargain renewal options. The Company recorded $61,700 of amortization in 2018.
 
 
28
 
 
Lessee reporting was changed by the new standard, requiring that the balance sheet reflect a liability for most operating lease obligations as well as a “right of use” asset. As such, in January 2019, the Company was required to record a lease obligation of approximately $610,000 in connection with the lease of its headquarters office, and to increase the capitalized leasehold interest / right of use asset by $610,000, as discussed in Note 8. There was no effect on retained earnings recorded as a result of adoption of the standard. The Company elected the lessee practical expedient to combine the lease and non-lease components.
 
(h) Aircraft Capitalization and Depreciation
 
The Company’s interests in aircraft and aircraft engines are recorded at cost, which includes acquisition costs. Since inception, the Company has typically purchased only used aircraft and aircraft engines. It is the Company’s policy to hold aircraft for approximately twelve years unless market conditions dictate otherwise. Therefore, depreciation of aircraft is initially computed using the straight-line method over the anticipated holding period to an estimated residual value based on appraisal. For an aircraft engine held for lease as a spare, the Company estimates the length of time that it will hold the aircraft engine based upon estimated usage, repair costs and other factors, and depreciates it to the appraised residual value over such period using the straight-line method.
 
The Company periodically reviews plans for lease or sale of its aircraft and aircraft engines and changes, as appropriate, the remaining expected holding period for such assets. Estimated residual values are reviewed and adjusted periodically, based upon updated estimates obtained from an independent appraiser. Decreases in the fair value of aircraft could affect not only the current value, discussed below, but also the estimated residual value.
 
Assets that are held for sale are not subject to depreciation and are separately classified on the balance sheet. Such assets are carried at the lower of their carrying value or estimated fair values, less costs to sell.
 
(i) Property, Equipment and Furnishings
 
The Company’s interests in equipment are recorded at cost and depreciated using the straight-line method over five years. The Company’s leasehold improvements are recorded at cost and amortized using the straight-line method over the shorter of the lease term or the estimated useful lives of the respective assets.
 
(j) Impairment of Long-lived Assets
 
The Company reviews assets for impairment when there has been an event or a change in circumstances indicating that the carrying amount of a long-lived asset may not be recoverable. In addition, the Company routinely reviews all long-lived assets for impairment semi-annually. Recoverability of an asset is measured by comparison of its carrying amount to the future estimated undiscounted cash flows (without interest charges) that the asset is expected to generate. Estimates are based on currently available market data and independent appraisals and are subject to fluctuation from time to time. If these estimated future cash flows are less than the carrying value of an asset at the time of evaluation, any impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value.  Fair value is determined by reference to independent appraisals and other factors considered relevant by management. Significant management judgment is required in the forecasting of future operating results that are used in the preparation of estimated future undiscounted cash flows and, if different conditions prevail in the future, material write-downs may occur.
 
As discussed in Note 9, the Company recorded impairment losses totaling $31.0 million and $3.0 million in 2019 and 2018, respectively, as a result of the Company’s determination that the carrying values for certain aircraft were not recoverable.
 
The 2019 impairment losses consisted of (i) $24.0 million resulting from appraised values for four aircraft that are held for sale, assuming sale in a reasonably short time (“Orderly Liquidation Value”) and (ii) $7.0 million resulting from estimated or actual sales proceeds for five assets held for sale, three of which were sold during 2019.
 
The 2018 impairment losses consisted of (i) $2.7 million resulting from Orderly Liquidation Values for four aircraft held for sale and (ii) $0.3 million resulting from writing a fifth aircraft down to its appraised value.
 
 
29
 
 
(k) Deferred Financing Costs and Commitment Fees
 
Costs incurred in connection with debt financing are deferred and amortized over the term of the debt using the effective interest method or, in certain instances where the differences are not material, using the straight-line method. Costs incurred in connection with the MUFG Credit Facility are deferred and amortized using the straight-line method. Commitment fees for unused funds are expensed as incurred.
 
(l) Security Deposits
 
The Company’s leases are typically structured so that if any event of default occurs under a lease, the Company may apply all or a portion of the lessee’s security deposit to cure such default. If such application of the security deposit is made, the lessee typically is required to replenish and maintain the full amount of the deposit during the remaining lease term. All of the security deposits received by the Company are refundable to the lessee at the end of the lease upon satisfaction of all lease terms.
 
(m) Taxes
 
As part of the process of preparing the Company’s consolidated financial statements, management estimates income taxes in each of the jurisdictions in which the Company operates. This process involves estimating the Company’s current tax exposure under the most recent tax laws and assessing temporary differences resulting from differing treatment of items for tax and GAAP purposes. These differences result in deferred tax assets and liabilities, which are included in the balance sheet. Management also assesses the likelihood that the Company’s deferred tax assets will be recovered from future taxable income, and, to the extent management believes it is more likely than not that some portion or all of the deferred tax assets will not be realized, the Company establishes a valuation allowance. To the extent the Company establishes a valuation allowance or changes the allowance in a period, the Company reflects the corresponding increase or decrease within the tax provision in the statement of operations. Significant management judgment is required in determining the Company’s future taxable income for purposes of assessing the Company’s ability to realize any benefit from its deferred taxes. After considering the Company’s significant amounts of net deferred tax liabilities which are future reversing taxable temporary differences, the Company has determined that no valuation allowance is required for its deferred tax assets.
 
The Company accrues non-income based sales, use, value added and franchise taxes as other tax expense in the statement of operations.
 
(n) Revenue Recognition, Accounts Receivable and Allowance for Doubtful Accounts
 
Revenue from leasing of aircraft assets pursuant to operating leases is recognized on a straight-line basis over the terms of the applicable lease agreements. Deferred payments are recorded as accrued rent when the cash rent received is lower than the straight-line revenue recognized. Such receivables decrease over the term of the applicable leases. Interest income is recognized on finance leases based on the interest rate implicit in the lease and the outstanding balance of the lease receivable.
 
Maintenance reserves retained by the Company at lease-end are recognized as maintenance reserves revenue.
 
In instances where collectability is not reasonably assured, the Company recognizes revenue as cash payments are received. The Company estimates and charges to income a provision for bad debts based on its experience with each specific customer, the amount and length of payment arrearages, and its analysis of the lessee’s overall financial condition. If the financial condition of any of the Company’s customers deteriorates, it could result in actual losses exceeding any estimated allowances.
 
The Company had an allowance for doubtful accounts of $2,908,600 and $0 at December 31, 2019 and 2018, respectively.
 
 
30
 
 
(o) Comprehensive Income
 
The Company reflects changes in the fair value of its interest rate swap derivatives that are designated as hedges in other comprehensive income/(loss). Such amounts are reclassified into earnings in the periods in which the hedged transaction occurs, and are included in interest expense.
 
(p) Finance Leases
 
As of December 31, 2019, the Company had three aircraft subject to sales-type finance leases and three aircraft subject to direct financing leases. All six leases contain lessee bargain purchase options at prices substantially below the subject asset’s estimated residual value at the exercise date for the option. Consequently, the Company has classified each of these six leases as finance leases for financial accounting purposes. For such finance leases, the Company reports 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, as a finance lease receivable on its balance sheet, and accrues interest on the balance of the finance lease receivable based on the interest rate inherent in the applicable lease over the term of the lease. For each of the three sales-type finance leases, the Company recognized as a gain or loss the amount equal to (i) the net investment in the sales-type finance lease plus any initial direct costs and lease incentives less (ii) the net book value of the subject aircraft at inception of the applicable lease.
 
The Company recognized interest earned on finance leases in the amount of $852,600 and $1,251,000 in 2019 and 2018, respectively. As a result of payment delinquencies by two customers that lease three of the Company’s aircraft subject to finance leases, the Company recorded a bad debt allowance of $2,957,800 during 2019.
 
(q)            
Maintenance Reserves and Accrued Maintenance Costs
 
Maintenance costs under the Company’s triple net leases are generally the responsibility of the lessees. Some 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 and be applied by the Company toward reimbursement of most or all of the cost of the lessees’ performance of certain maintenance obligations under the leases. Such reimbursements reduce the associated maintenance reserve liability.
 
Maintenance reserves are characterized as either refundable or non-refundable depending on their disposition at lease-end. The Company retains non-refundable maintenance reserves at lease-end, even if the lessee has met all of its obligations under the lease, including any return conditions applicable to the leased asset, while refundable reserves are returned to the lessee under such circumstances. Any reserves retained by the Company at lease-end are recorded as revenue at that time.
 
Accrued maintenance costs include (i) maintenance for work performed for off-lease aircraft, which is not related to the release of maintenance reserves received from lessees and which is expensed as incurred, and (ii) lessor maintenance obligations assumed and recognized as a liability upon acquisition of aircraft subject to a lease with such provisions.
 
(r) Interest Rate Hedging
 
During the first quarter of 2019, the Company entered into certain derivative instruments to mitigate its exposure to variable interest rates under the Term Loans debt and a portion of the MUFG Credit Facility debt. Hedge accounting is applied to such a transaction only if specific criteria have been met, the transaction is deemed to be “highly effective” and the transaction has been designated as a hedge at its inception. Under hedge accounting treatment, generally, the effects of derivative transactions are recorded in earnings for the period in which the hedge transaction affects earnings. A change in value of a hedging instrument is reported as a component of other comprehensive income/(loss) and is reclassified into earnings in the period in which the transaction being hedged affects earnings.
 
If at any time after designation of a cash flow hedge, such as those entered into by the Company, it is no longer probable that the forecasted cash flows will occur, hedge accounting is no longer permitted and a hedge is “dedesignated.” After dedesignation, if it is still considered reasonably possible that the forecasted cash flows will occur, the amount previously recognized in other comprehensive income/(loss) will continue to be reversed as the forecasted transactions affect earnings. However, if after dedesignation it is probable that the forecasted transactions will not occur, amounts deferred in accumulated other comprehensive income/(loss) will be recognized in earnings immediately.
 
As noted in Note 7, in October 2019 the Company became aware that, as a result of certain defaults under its MUFG Credit Facility, certain of the forecasted transactions related to its MUFG Credit Facility interest rate swaps are no longer probable of occurring and, hence, those swaps were dedesignated from hedge accounting at that time. As discussed in Note 15, the two swaps related to the MUFG Credit Facility were terminated in March 2020 and the Company incurred a $3.1 million obligation in connection with such termination.
 
 
31
 
 
(s) Recent Accounting Pronouncements
 
ASU 2016-13
 
The FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), in June of 2016 (“ASU 2016-13”). ASU 2016-13 provides that financial assets measured at amortized cost are to be presented as a net amount, reflecting a reduction for a valuation allowance to present the amount expected to be collected (the “current expected credit loss” model of reporting). As such, expected credit losses will be reflected in the carrying value of assets and losses will be recognized before they become probable, as is required under the Company’s present accounting practice. In the case of assets held as available for sale, the amount of the valuation allowance will be limited to an amount that reflects the marketable value of the debt instrument. This amendment to GAAP is effective  in the first quarter of 2023 for calendar-year SEC filers that are smaller reporting companies as of the one-time determination date. Early adoption is permitted beginning in 2019. The Company plans to adopt the new guidance on January 1, 2023, and has not determined the impact of this adoption on its consolidated financial statements.
 
ASU 2019-12
 
In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), a new accounting standard update to simplify the accounting for income taxes. The new guidance removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. It also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. This guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and related disclosures.
 
2. Aircraft Lease Assets
 
As discussed in Note 1, the Company adopted Topic 842 on January 1, 2019, and elected to use certain practical expedients that resulted in continuing the classification of capitalized indirect cost associated with its operating and finance leases. As such, there was no adjustment to its accounts related to the carrying value of its sales-type and finance leases, assets held for lease or capitalized initial direct costs, and its leases continue to be accounted for in the same manner as they had been before adoption of the new accounting standard.
 
The Company’s leases are normally “triple net leases” under which the lessee is obligated to bear all costs, including tax, maintenance and insurance, on the leased assets during the term of the lease. In most cases, the lessee is obligated to provide a security deposit or letter of credit to secure its performance obligations under the lease, and in some cases, is required to pay maintenance reserves based on utilization of the aircraft, which reserves are available for qualified maintenance costs during the lease term and may or may not be refundable at the end of the lease. Typically, the leases also contain minimum return conditions, as well as an economic adjustment payable by the lessee (and in some instances by the lessor) for amounts by which the various aircraft or engine components are worse or better than a targeted condition set forth in the lease. Some leases contain renewal or purchase options, although the Company’s sales-type and finance leases all contain a bargain purchase option at lease end which the Company expects the lessees to exercise or require that the lessee purchase the aircraft at lease-end for a specified price.
 
Because all of the Company’s leases transfer use and possession of the asset to the lessee and contain no other substantial undertakings by the Company, the Company has concluded that all of its lease contracts qualify for lease accounting under Topic 842. Certain lessee payments of what would otherwise be lessor costs (such as insurance and property taxes) are excluded from both revenue and expense.
 
The Company evaluates the expected return on its leased assets by considering both the rents receivable over the lease term, any expected additional consideration at lease end, and the residual value of the asset at the end of the lease. In some cases, the Company depreciates the asset to the expected residual value because it expects to sell the asset at lease end; in other cases, it may expect to re-lease the asset to the same or another lessee and the depreciation term and related residual value will differ from the initial lease term and initial residual value. Residual value is estimated by considering future estimates provided by independent appraisers, although it may be adjusted by the Company based on expected return conditions or location, specific lessee considerations, or other market information.
 
Two of the Company’s operating lease assets are subject to manufacturer residual value guarantees at the end of their lease terms in the fourth quarter of 2020 and totaling approximately $20 million. Three additional aircraft are subject to residual value guarantees, but the Company expects to retain the aircraft after the date of such guarantees and re-lease them to the current or other lessees. The Company considers the best market for managing and/or selling its assets at the end of its leases, although it does not expect to retain ownership of the assets under finance leases given the lessees’ bargain purchase options or required purchase.
 
 
32
 
 
(a) Assets Held for Lease
 
At December 31, 2019 and December 31, 2018, the Company’s aircraft and aircraft engines held for lease consisted of the following:
 
 
 
December 31, 2019
 
 
December 31, 2018
 
Type
 
Number
Owned
 
 
% of net book value
 
 
Number
owned
 
 
% of net book value
 
Regional jet aircraft
  9 
  80%
  13 
  81%
Turboprop aircraft
  2 
  20%
  4 
  18%
Engines
  - 
  -%
  1 
  1%
 
The Company did not purchase any aircraft held for lease during 2019. During the third quarter, the Company terminated the leases for four of its aircraft held for lease as a result of significant past due payments from the customer and repossessed the aircraft. The customer subsequently ceased operations and declared bankruptcy. The Company applied the security deposits and a portion of collected maintenance reserves it held to the past due rent due from the customer and recorded $16,968,400 of maintenance reserves revenue for the balance of the collected maintenance reserves. The Company also recorded impairment losses totaling $28,424,000 for the four aircraft based on appraised values for three of the aircraft and expected sales proceeds for the fourth aircraft, and reclassified the four aircraft to held for sale. As a result of the lease terminations, the appraised values were based on the maintenance-adjusted condition of the aircraft, rather than the previous basis, which reflected future cash flows under the leases. One of the aircraft was sold during the fourth quarter of 2019.
 
None of the Company’s aircraft held for lease were off lease at December 31, 2019. As discussed below, the Company has seven off-lease aircraft that are held for sale: (i) two turboprop aircraft that were reclassified to held for sale in the third quarter of 2018, one of which is subject to a short-term lease, (ii) three regional jet aircraft that were reclassified to held for sale during 2019 and (iii) two turboprop aircraft that are being sold in parts.
 
As of December 31, 2019, minimum future lease revenue payments receivable under non-cancelable operating leases were as follows:
 
Years ending December 31
 
 
 
 
 
 
 
2020
 $17,650,900 
2021
  10,392,000 
2022
  8,639,600 
2023
  8,639,600 
2024
  6,826,100 
Thereafter
  1,683,300 
 
 $53,831,500 
 
The remaining weighted average lease term of the Company’s assets under operating leases was 41 months and 58 months at December 31, 2019 and December 31, 2018, respectively.
 
 
33
 
 
(b) Sales-Type and Finance Leases
 
As a result of a lease amendment containing a purchase option for an older aircraft at lease end during the second quarter of 2019, the Company reclassified an asset that was previously held for lease to a sales-type finance lease receivable and recorded a loss of $170,600. The aircraft was sold to the lessee at lease expiration during the fourth quarter.
 
During 2019, the Company also amended the sales-type leases for two aircraft to accommodate the lessee’s request to transfer a portion of future lease payment obligations from one of the leases to the other, as well as to assign one of the leases and related aircraft to a different lessee. Payments for both leases were also amended to reflect a higher implicit interest rate, such that the fair value of the leases after amendment equaled the carrying value of the leases before the amendment. No gain or loss was recognized as a result of these lease modifications. As a result of payment delinquencies by these two customers, the Company recorded a bad debt allowance of $2,907,800. As discussed in Note 15, the leases for these two aircraft were further amended in January 2020 and a third aircraft leased to one of the lessees was sold to the lessee.
 
At December 31, 2019 and December 31, 2018, the net investment included in sales-type finance leases and direct financing leases receivable were as follows:
 
 
 
December 31,
2019
 
 
December 31,
2018
 
Gross minimum lease payments receivable
 $9,096,400 
 $17,107,100 
Less unearned interest
  (286,600)
  (1,856,200)
Difference between minimum lease payments receivable and collateral value of leases
  (7,700)
  - 
Finance leases receivable
 $8,802,100 
 $15,250,900 
 
As of December 31, 2019, minimum future payments receivable under finance leases were as follows:
 
Years ending December 31
 
 
 
 
 
 
 
2020
 $3,817,200 
2021
  2,608,200 
2022
  2,114,000 
2023
  557,000 
 
 $9,096,400 
 
The remaining weighted average lease term of the Company’s assets under sales-type and finance leases was 20 months and 32 months at December 31, 2019 and December 31, 2018, respectively.
 
As discussed in Note 15, the customer for three of the Company’s aircraft that are subject to direct financing leases purchased the aircraft in March 2020.
 
The following is a roll forward of the Company’s allowance for doubtful accounts from December 31, 2018 to December 31, 2019:
 
Balance, December 31, 2018
 $- 
Additions charged to expense
  2,908,600 
Balance, December 31, 2019
 $2,908,600 

 
34
 
 
3. Assets Held for Sale
 
As discussed in Note 2(a), during 2019, the Company reclassified four regional jet aircraft that had been held for lease to held for sale after repossession from a customer. One of the aircraft was sold during 2019.
 
Assets held for sale at December 31, 2019 included three of the regional jet aircraft that were repossessed and two turboprop aircraft, one of which is subject to a short-term operating lease, and airframe parts from two turboprop aircraft. During 2019, the Company recorded an impairment loss of $1,000,000 related to the airframe parts from one of the aircraft, based on estimated sales proceeds.
 
During 2019, the Company received $820,800 in cash and accrued $117,400 in receivables for parts sales. These amounts were accounted for as follows: $133,100 reduced accounts receivable for parts sales accrued in the fourth quarter of 2018; $731,700 reduced the carrying value of the parts; and $73,400 was recorded as gains in excess of the carrying value of the parts. 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.
 
4. Operating Segments
 
The Company operates in one business segment, the leasing of regional aircraft to foreign and domestic regional airlines, and therefore does not present separate segment information for lines of business.
 
Approximately 30% and 28% of the Company’s operating lease revenue was derived from lessees domiciled in the United States during 2019 and 2018, respectively. All revenues relating to aircraft leased and operated internationally, with the exception of rent payable in Euros for two of the Company’s aircraft, are denominated and payable in U.S. dollars.
 
The tables below set forth geographic information about the Company’s operating lease revenue and net book value for leased aircraft and aircraft equipment, grouped by domicile of the lessee: 
 
 
 
For the Years Ended December 31,
 
Operating Lease Revenue
 
2019
 
 
2018
 
 
 
 
 
 
 
 
Europe and United Kingdom
 $15,174,900 
 $16,258,800 
North America
  10,119,100 
  10,119,100 
Asia
  315,000 
  1,259,600 
 
 $25,609,000 
 $27,637,500 
 
 
35
 
 
 
 
December 31,
 
Net Book Value of Aircraft and Aircraft Engines Held for Lease
 
2019
 
 
2018
 
 
 
 
 
 
 
 
Europe and United Kingdom
 $44,569,000 
 $110,069,000 
North America
  63,799,600 
  68,485,400 
Asia
  - 
  5,465,500 
 
 $108,368,600 
 $184,019,900 
 
The table below sets forth geographic information about the Company’s finance lease revenue, grouped by domicile of the lessee: 
 
 
 
For the Years Ended December 31,
 
Finance Lease Revenue
 
2019
 
 
2018
 
 
 
 
 
 
 
 
Africa
 $487,000 
 $832,800 
Europe and United Kingdom
  365,600 
  418,200 
 
 $852,600 
 $1,251,000 
 
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, 2019, the Company had seven significant customers, five of which individually accounted for 23%, 23%, 16%, 14% and 10%, respectively, of operating lease revenue and two of which accounted for 57% and 38%, respectively, of finance lease revenue. For the year ended December 31, 2018, the Company had five significant customers, four of which individually accounted for 30%, 21%, 15% and 13%, respectively, of operating lease revenue and one of which accounted for 67% of finance lease revenue.
 
At December 31, 2019, the Company had receivables from one customer totaling $828,000 related to rents for 2019, representing 74% of the Company’s total accounts receivable, all of which was for accrued rent that is due in March 2020. At December 31, 2018, the Company had receivables from three customers totaling $3,413,500, representing 87% of the Company’s total accounts receivable.
 
 
 
36
 
 
6. Notes Payable and Accrued Interest
 
At December 31, 2019 and December 31, 2018, the Company’s notes payable and accrued interest consisted of the following:
 
 
 
December 31,
2019
 
 
December 31,
2018
 
MUFG Credit Facility:
 
 
 
 
 
 
   Principal
 $84,084,100 
 $122,400,000 
   Unamortized debt issuance costs
  (3,084,200)
  (674,300)
   Accrued interest
  376,200 
  139,300 
Special-purpose financing:
    
    
   Principal:
    
    
      UK SPE Financing
  - 
  9,211,200 
      Nord Term Loans
  30,914,500 
  - 
   Unamortized debt issuance costs
  (741,500)
  - 
   Accrued interest
  89,300 
  16,000 
 
 $111,638,400 
 $131,092,200 
 
(a) MUFG Credit Facility
 
The unused amount of the MUFG Credit Facility was $915,900 and $47,600,000 as of December 31, 2019 and December 31, 2018, respectively. The weighted average interest rate on the MUFG Credit Facility was 10.23% and 5.92% at December 31, 2019 and December 31, 2018 respectively.
 
In addition to payment obligations (including principal and interest payments on outstanding borrowings and commitment fees based on the amount of any unused portion of the MUFG Credit Facility), the MUFG Credit Facility agreement contains financial covenants with which the Company must comply, including, but not limited to, positive earnings requirements, minimum net worth standards and certain ratios, such as debt to equity ratios.
 
As of December 31, 2018, the Company was not in compliance with the interest coverage, debt service coverage, no-net-loss and revenue concentration covenants under the MUFG Credit Facility agreement. The noncompliance resulted primarily from the Company recording aircraft impairment charges and losses on sales of aircraft totaling $3.4 million during 2018. The amendments included in the MUFG Credit Facility agreement in February 2019 discussed below cured the December 31, 2018 noncompliance and revised the compliance requirements through the extended maturity date of the MUFG Credit Facility.
 
In February 2019, the MUFG Credit Facility, which was to expire on May 31, 2019, was extended to February 19, 2023, and was amended in certain other respects. Also, four aircraft that previously served as collateral under the MUFG Credit Facility and two aircraft that previously served as collateral under special-purpose subsidiary financings were refinanced in February 2019 using non-recourse term loans (the Nord Term Loans) with an aggregate principal of $44.3 million.
 
During the third quarter of 2019 as a result of significant past due payments from the customer, the Company terminated the leases for, and repossessed, four of its aircraft held for lease The customer, a European regional airline and one of the Company’s largest customers based on operating lease revenue, subsequently ceased operations and declared bankruptcy. The Company applied the security deposits and a portion of collected maintenance reserves it held against past due rent due from the customer. The remaining balance of collected maintenance reserves equal to $17.0 million was recognized as maintenance reserves revenue. The Company also recorded impairment losses totaling $22.3 million for the four aircraft, one of which was sold during the fourth quarter, based on appraised values for three of the aircraft and expected sales proceeds for the fourth. As a result of the lease terminations, the three aircraft were newly appraised based on the maintenance-adjusted condition of the aircraft, rather than the basis previously used for their appraisal, which considered future cash flows under the leases.
 
 
37
 
 
During the third quarter of 2019, the Company also recorded impairment losses of $15,000 on another of its aircraft held for sale and $1.0 million related to airframe parts that are held for sale, both of which were based on estimated sales proceeds. As a result of payment delinquencies by two other customers that lease three of the Company’s aircraft subject to finance leases, the Company also recorded a bad debt allowance of $2.9 million during 2019. As a result of the aforementioned impairment losses and bad debt allowance, as of September 30, 2019, the Company was in default of its borrowing base covenant under the MUFG Credit Facility (the “Borrowing Base Default”), due to the outstanding balance under the MUFG Credit Facility exceeding the required minimum collateral value coverage set forth in the MUFG Credit Facility (a “Borrowing Base Deficit”) by approximately $9.4 million. Subsequent updated appraisal values for assets included in the borrowing base of the MUFG Credit Facility resulted in an increase in the Borrowing Base Deficit to $29.8 million at December 31, 2019. At that time, the Company reclassified two aircraft that were repossessed during the third quarter from held for lease to held for sale. The Company also reduced its bad debt allowance during the fourth quarter based on payments received in January.
 
The Company was not in compliance with various covenants contained in the MUFG Credit Facility agreement, including those related to interest coverage and debt service coverage ratios and a no-net-loss requirement under the MUFG Credit Facility, at September 30, 2019 and at December 31, 2019.
 
On October 15, 2019, the agent bank for the Credit Facility Lenders delivered a Reservation of Rights Letter to the Company which contained notice of the Borrowing Base Default and a demand for repayment of the amount of the Borrowing Base Deficit by January 13, 2020, and also contained formal notices of default under the MUFG Credit Facility relating to the alleged material adverse effects on the Company’s business as a result of the early termination of leases for three aircraft and potential financial covenant noncompliance based on the Company’s financial projections provided to the Credit Facility Lenders (the Borrowing Base Default and such other defaults referred to as the “Specified Defaults”). The Reservation of Rights Letter also informed the Company that further advances under the MUFG Credit Facility agreement would no longer be permitted due to the existence of such defaults.
 
In October, November and December 2019, the Company, agent bank and the Credit Facility Lenders entered into a Forbearance Agreement and amendments extending the Forbearance Agreement with respect to the Specified Defaults under the MUFG Credit Facility. The Forbearance Agreement (i) provided that the Credit Facility Lenders temporarily forbear from exercising default remedies under the MUFG Credit Facility agreement for the Specified Defaults, (ii) reduced the maximum availability under the MUFG Credit Facility to $85 million and (iii) extended the cure period for the Borrowing Base Deficit from January 13, 2020 to February 12, 2020. The Forbearance Agreement also allowed the Company to continue to use LIBOR as its benchmark interest rate, but increased the margin on the Company’s LIBOR-based loans under the MUFG Credit Facility from a maximum of 3.75% to 6.00% and set the margin on the Company’s prime rate-based loans at 2.75%, as well as added a provision for paid-in-kind interest (“PIK Interest) of 2.5% to be added to the outstanding balance of the MUFG Credit Facility debt in lieu of a cash payment. The Company paid cash fees of $406,250 in connection with the Forbearance Agreement and amendments, as well as a fee of $832,100, which was added to the outstanding balance of the MUFG Credit Facility debt in lieu of a cash payment. The Forbearance Agreement was in effect until December 30, 2019, after which the Company and the Credit Facility Lenders agreed not to further amend the Forbearance Agreement. On February 12, 2020, the agent bank for the Credit Facility Lenders delivered a Reservation of Rights Letter to the Company which contained notice of the failure to cure the Borrowing Base Default by February 12, 2020.
 
The Company is currently in negotiations with the Credit Facility Lenders to convert the MUFG Credit Facility into the MUFG Term Loan. Therefore, the MUFG Credit Facility is expected to no longer be a source of acquisition financing. The Company has engaged an investment banking advisor to help (i) formulate a Recapitalization Plan and analyze various strategic financial alternatives to address the Company’s capital structure, strategic and financing needs, as well as corporate level transactions aimed at achieving maximum value for the Company’s stockholders; and (ii) locate and negotiate with potential lenders, investors or transaction partners who would play a role in the Company’s Recapitalization Plan. The Company’s ability to develop, obtain approval for and achieve its Recapitalization Plan is subject to a variety of factors. If the Company is not able to satisfy the requirements under the Recapitalization Plan, maintain compliance with its MUFG Indebtedness or raise sufficient capital to repay all amounts owed under the MUFG Indebtedness, the Company’s financial condition and liquidity would be materially adversely affected and its ability to continue operations could be materially jeopardized.
 
(b) Nord Term Loans 
 
On February 8, 2019, the Company, through four wholly-owned subsidiary limited liability companies (“LLC Borrowers”), entered into a term loan agreement with the U.S. branch of a German bank (“Term Loan Lender”) that provides for six separate term loans with an aggregate principal amount of $44.3 million. Each of the Nord Term Loans is secured by a first priority security interest in a specific aircraft (“Term Loan Collateral Aircraft”) owned by an LLC Borrower, the lease for such aircraft, and a pledge by the Company of its membership interest in each of the LLC Borrowers, pursuant to a Security Agreement (the “Security Agreement”) among the LLC Borrowers and a security trustee, and certain pledge agreements. Two of the Term Loan Collateral Aircraft that are owned by the Company’s two UK special-purpose entities were previously financed using special-purpose financing. The interest rates payable under the Nord Term Loans vary by aircraft, and are based on a fixed margin above either 30-day or 3-month LIBOR. The proceeds of the Nord Term Loans were used to pay down the MUFG Credit Facility and pay off the UK LLC SPE Financing. The maturity of each Nord Term Loan varies by aircraft, with the first Nord Term Loan maturing in October 2020 and the last Nord Term Loan maturing in May 2025. The debt under the Term Loans is expected to be fully amortized by rental payments received by the LLC Borrowers from the lessees of the Term Loan Collateral Aircraft during the terms of their respective leases and remarketing proceeds.
 
 
38
 
 
The Nord Term Loans include covenants that impose various restrictions and obligations on the LLC Borrowers, including covenants that require the LLC Borrowers to obtain the Term Loan Lender’s consent before they can take certain specified actions, and certain events of default. If an event of default occurs, subject to certain cure periods for certain events of default, the Term Loan Lender would have the right to terminate its obligations under the Term Loans, declare all or any portion of the amounts then outstanding under the Term Loans to be accelerated and due and payable, and/or exercise any other rights or remedies it may have under applicable law, including foreclosing on the assets that serve as security for the Nord Term Loans. The Company was in compliance with all covenants under the Nord Term Loans at December 31, 2019.
 
One of the aircraft that was subject to Nord Term Loan financing was sold during the fourth quarter of 2019 and the related interest rate swap was terminated.
 
As discussed in Note 15, in March 2020, one of the Company’s customers, which leases two regional jet aircraft subject to Nord Term Loan financing, did not make its quarterly rent payment which, in turn, resulted in a loan payment default by the Company’s special-purpose subsidiary that owns the aircraft. The Company is currently discussing remedies with both the customer and Nord.
 
7. Derivative Instruments
 
The Company was not party to any derivative instruments in 2018.
 
In the first quarter of 2019, the Company entered into eight fixed pay/receive variable interest rate swaps.
 
Six of the interest rate swaps were entered into by the LLC Borrowers, one of which terminated in the fourth quarter of 2019 in connection with the sale of the related aircraft, and provided for reduced notional amounts that mirror the amortization under the Nord Term Loans entered into by the LLC Borrowers, effectively converting each of the six Nord Term Loans from a variable to a fixed interest rate, ranging from 5.38% to 6.30%. Each of these six interest rate swaps extended for the duration of the corresponding Term Loan, with maturities from 2020 through 2025.
 
The other two interest rate swaps, the MUFG Swaps related to the Company’s MUFG Credit Facility, were entered into by AeroCentury and had notional amounts totaling $50 million and were to extend through the maturity of the MUFG Credit Facility in February 2023. Under the ISDA agreement for these interest rate swaps, defaults under the MUFG Credit Facility give the swap counterparty the right to terminate the interest rate swaps with any breakage costs being the liability of the Company. The counterparty agreed under the Forbearance Agreement and subsequent amendments to refrain from exercising any termination or other remedies as a result of the Company’s defaults under the MUFG Credit Facility during the forbearance period under the Forbearance Agreement. In March 2020, the Company was notified that the counterparties had terminated the MUFG Swaps.
 
The Company entered into the interest rate swaps in order to reduce its exposure to the risk of increased interest rates. With respect to the six interest rate swaps entered into by the LLC Borrowers, the swaps were deemed necessary so that the anticipated cash flows of such entities, which arise entirely from the lease rents for the aircraft owned by such entities, would be sufficient to make the required Term Loan principal and interest payments, thereby preventing default so long as the lessees met their lease rent payment obligations. The two interest rate swaps entered into by AeroCentury were intended to protect against the exposure to interest rate increases on $50 million of the Company’s MUFG Credit Facility debt.
 
The Company estimates the fair value of derivative instruments using a discounted cash flow technique and uses creditworthiness inputs that corroborate observable market data evaluating the Company’s and counterparties’ risk of non-performance. Valuation of the derivative instruments requires certain assumptions for underlying variables and the use of different assumptions would result in a different valuation. Management believes it has applied assumptions consistently during the period.
 
The Company designated seven of its interest rate swaps as cash flow hedges. Changes in the fair value of the hedged swaps are included in other comprehensive income/(loss), which amounts are reclassified into earnings in the period in which the transaction being hedged affects earnings (i.e., with future settlements of the interest rate swaps). One of the interest rate swaps was not eligible under its terms for hedge treatment and was terminated in 2019 when the associated asset was sold and the related debt was paid off. Changes in fair value of non-hedge derivatives are reflected in earnings in the periods in which they occur.
 
In October 2019, the Company determined that it was no longer probable that forecasted cash flows for its two interest rate swaps with a nominal value of $50 million would occur as scheduled as a result of the Company’s defaults under the MUFG Credit Facility. Therefore, those swaps were no longer subject to hedge accounting and changes in fair market value thereafter were recognized in earnings as they occurred. As discussed in Note 15, the MUFG Swaps were terminated in the first quarter of 2020 and the amount of accumulated other comprehensive income/(loss) related to such cash flows will be recognized as an expense at such time in the first quarter of 2020.
 
 
39
 
 
The Company has reflected the following amounts in its net loss:
 
 
 For the Years Ended December 31,
 
 
 
2019
 
 
2018
 
Change in value of interest rate swaps
 $255,200 
 $- 
Other items
  147,400 
  - 
Included in interest expense
 $402,600 
 $- 
 
    
    
The following amount was included in other comprehensive income/(loss), before tax
 
    
    
Unrealized loss on derivative instruments
 $(1,932,100)
 $- 
Other items
  186,400 
  - 
Change in value of hedged interest rate swaps
 $(1,745,700)
 $- 
 
Before the termination of the MUFG Swaps discussed in Note 15, approximately $575,000 of the current balance of accumulated other comprehensive income/(loss) was expected to be reclassified in the next twelve months, although certain additional amounts may be recognized in the event the Company determines that some of the forecasted cash flows that are intended to be hedged under the interest rate swaps related to its MUFG Credit Facility are probable of not occurring.
 
At December 31, 2019, the fair value of the Company’s interest rate swaps was as follows:
 
Designated interest rate hedges fair value
 $(570,900)
Other interest rate swaps
  (1,253,600)
Total derivative (liability)
 $(1,824,500)
 
The Company evaluates the creditworthiness of the counterparties under its hedging agreements. The swap counterparties for the Company’s interest rate swaps are large financial institutions in the United States that possess an investment grade credit rating. Based on this rating, the Company believes that the counterparties are creditworthy and that their continuing performance under the hedging agreements is probable.
 
8. Lease Right of Use Asset and Liability
 
The Company is a lessee under a lease of the office space it occupies in Burlingame, California, which expires in June of 2020, but also provides for two, successive one-year lease extension options for amounts that are substantially below the market rent for the property. The lease provides for monthly rental payments according to a fixed schedule of increasing rent payments. As a result of the below-market extension options, the Company determined that it was reasonably certain that it would extend the lease and has, therefore, included such extended term in its calculation of the right of use asset (“ROU Asset”) and lease liability recognized in connection with the lease.
 
In addition to a fixed monthly payment schedule, the office lease also includes an obligation for the Company to make future variable payments for certain common areas and building operating and lessor costs, which have been and will be recognized as expense in the periods in which they are incurred. As a direct pass-through of applicable expense, such costs have not been allocated as a component of the lease.
 
The ROU Asset includes the amortized value of both the amount of liability recognized at January 1, 2019 upon adoption of Topic 842 and the amount attributable to the below market lease component recognized upon acquisition of JHC on October 1, 2018.
 
 
 
40
 
 
The lease liability associated with the office lease was calculated by discounting the fixed, minimum lease payments over the remaining lease term, including the below-market extension periods, at a discount rate of 7.25%, which represents the Company’s estimate of the incremental borrowing rate for a collateralized loan for the type of underlying asset that was the subject of the office lease at the time the lease liability was evaluated. The Company estimates that the maturities of operating lease base rent of its office space were as follows as of December 31, 2019:
 
 
 
December 31,
2019
 
2020
 $145,000 
2021
  147,200 
2022
  74,700 
 
  366,900 
Discount
  (30,500)
Lease liability at December 31, 2019
 $336,400 
 
At December 31, 2018, the Company estimated that the future minimum lease commitments for its office space, including both the base rent and operating expenses, and storage facility were as follows:
 
 
 
December 31,
2018
 
2019
 $193,500 
2020
  196,400 
2021
  199,300 
2022
  101,100 
 
  $                     690,300 
Discount
   
Lease liability at December 31, 2019
   


During the year ended December 31, 2019, the Company recognized amortization, finance costs and other expense related to the office lease as follows:
 
Fixed rental expense during the year
 $443,500 
Variable lease expense
  116,000 
Total lease expense during the year
 $559,500 
 
The Company expects that the variable lease expense will total approximately $7,500 per month through the end of the lease, including the two extension periods.
 
 
41
 
 
9. 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
 
As of December 31, 2019, the Company measured the fair value of its interest rate swaps of $80,914,500 (notional amount) based on Level 2 inputs, due to the usage of inputs that can be corroborated by observable market data. The Company estimates the fair value of derivative instruments using a discounted cash flow technique and has used creditworthiness inputs that corroborate observable market data evaluating the Company’s and counterparties’ risk of non-performance. The interest rate swaps had a net fair value liability of $1,824,500 as of December 31, 2019. In the year ended December 31, 2019, $255,200 was realized through the income statement as an increase in interest expense.
 
The following table shows, by level within the fair value hierarchy, the Company’s assets and liabilities at fair value on a recurring basis as of December 31, 2019 and December 31, 2018: 
 
 
 
December 31, 2019
 
 
December 31, 2018
 
 
 
Total
 
 
Level 1
 
 
Level 2
 
 
Level 3
 
 
Total
 
 
Level 1
 
 
Level 2
 
 
Level 3
 
Money market funds
 $400 
 $400 
 $- 
 $- 
 $656,400 
 $656,400 
 $- 
 $- 
Derivatives
  (1,824,500)
  - 
  (1,824,500)
  - 
  - 
  - 
  - 
  - 
Total
 $(1,824,100)
 $400 
 $(1,824,500)
 $- 
 $656,400 
 $656,400 
 $- 
 $- 
 
There were no transfers between Level 1 and Level 2 during 2019 or 2018, and there were no transfers into or out of Level 3 during the same periods.
 
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 and these and other assets held for sale, by reference to independent appraisals, quoted market prices (e.g., offers to purchase) and other factors. These are considered Level 3 within the fair value hierarchy. 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 asset’s carrying value exceeds its fair value. The Company recorded impairment charges totaling $31,007,400 (of which $5,351,300 was related to assets sold in 2019) on nine of its assets held for sale in 2019, which had an aggregate fair value of $25,880,700. The impairment charges were comprised of (i) $7,031,300 based on estimated sales amounts and (ii) $23,976,100 based on third-party appraisals. The Company recorded impairment charges totaling $2,673,300 on four of its aircraft held for sale in 2018, which had an aggregate fair value of $9,900,000. The Company also recorded an impairment charge of $298,200 on one of its aircraft held for lease in 2018.
 
As discussed in Note 8, in December 2019, the Company adjusted its ROU Asset valuation and lease liability balance to reflect a reduction in lease space and rent effective January 1, 2020. The effects of the adjustment were reductions of $119,100 to the ROU asset and lease liability balance.
 
 
42
 
 
The following table shows, by level within the fair value hierarchy, the Company’s assets at fair value on a nonrecurring basis as of December 31, 2019 and December 31, 2018:
 
 
 
Assets Written Down to Fair Value
 
 
Total Losses
 
 
 
December 31, 2019
 
 
December 31, 2018
 
 
For the Years Ended December 31,
 
 
 
 
 
 
Level
 
 
 
 
 
Level
 
 
 
 
 
Total
 
  1 
  2 
  3 
 
Total
 
  1 
  2 
  3 
  2019 
  2018 
Assets held for sale
 $25,880,700 
 $- 
 $- 
 $25,880,700 
 $5,800,000 
 $- 
 $- 
 $5,800,000 
 $25,656,100 
 $837,500 
 
There were no transfers between Level 1 and Level 2 in 2019, and there were no transfers into or out of Level 3 during the same periods.
 
Fair Value of Other Financial Instruments
 
The Company’s financial instruments, other than cash and cash equivalents, consist principally of finance leases receivable, amounts borrowed under the MUFG Credit Facility, notes payable under special-purpose financing and its derivative instruments. The fair value of accounts receivable, accounts payable and the Company’s maintenance reserves and accrued maintenance costs approximates the carrying value of these financial instruments because of their short-term maturity. The fair value of finance lease receivables approximates the carrying value as discussed in Note 1(p). The fair value of the Company’s derivative instruments is discussed in Note 7 and in this note above in “Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis.”
 
Borrowings under the Company’s MUFG 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 under the MUFG Credit Facility approximates current market rates for such indebtedness at the dates of the consolidated balance sheets, and therefore that the outstanding principal and accrued interest of $84,460,300 and $122,539,300 at December 31, 2019 and December 31, 2018, respectively, approximate their fair values on such dates. The fair value of the Company’s outstanding balance of its MUFG Credit Facility is categorized as a Level 3 input under the GAAP fair value hierarchy.
 
Before their repayment in February 2019 in connection with the Term Loans refinancing, the amounts payable under the UK LLC SPE Financing were payable through the fourth quarter of 2020 and bore a fixed rate of interest. As discussed above, during February 2019, the UK LLC SPE Financing and four assets that previously served as collateral under the MUFG Credit Facility were refinanced using the Term Loans. The Company believes the effective interest rate under the special-purpose financings approximates current market rates for such indebtedness at the dates of the consolidated balance sheets, and therefore that the outstanding principal and accrued interest of $31,003,800 and $9,227,200 approximate their fair values at December 31, 2019 and December 31, 2018, respectively. Such fair value is categorized as a Level 3 input under the GAAP fair value hierarchy.
 
There were no transfers in or out of assets or liabilities measured at fair value under Level 3 during 2019 and 2018.
 
 
43
 
 
10. Acquisition of Management Company
 
In October 2017, AeroCentury, JHC and certain other parties entered into the Merger Agreement for the acquisition of JHC by AeroCentury for consideration of approximately $2.9 million in cash and 129,217 shares of common stock of AeroCentury, as determined pursuant to the Merger Agreement. JHC is the sole shareholder of JMC, which is the manager of the Company’s assets as described in Note 14 below. The Merger was consummated on October 1, 2018.
 
As a subsidiary of the Company, JHC’s results are included in the Company’s consolidated financial statements beginning on October 1, 2018. In April 2018, subsequent to the execution of the Merger Agreement for the acquisition of JHC, which was signed in October 2017, the Company, JHC and JMC entered into a waiver and reimbursement agreement (the “Waiver/Reimbursement Agreement”), pursuant to which JHC and JMC agreed to waive their right to receive management and acquisition fees (“Contract Fees”) otherwise owed by the Company to JMC pursuant to the Management Agreement for all periods after March 31, 2018 and until the consummation of the Merger, and in return, the Company agreed to reimburse JMC for expenses incurred in providing management services set forth under the Management Agreement. As a result of the Waiver/Reimbursement Agreement, the Company became responsible for all expenses incurred by JMC in managing the Company as of April 1, 2018, including employee salaries, office rent and all other general and administrative expenses. As a result of the Merger, the Company assumed all of JHC’s assets, comprised primarily of securities, prepaid expenses and an office lease, as well as liabilities of approximately $0.9 million.
 
During the year ended December 31, 2018, the Company accrued $485,000 of expenses related to the Merger transaction. Such expenses are included in professional fees, general and administrative and other in the Company’s consolidated statements of operations.
 
During the fourth quarter of 2018, the Company also recorded a settlement loss of $2,527,000 related to the Merger. The settlement loss amount was estimated using an income approach. The Company assessed the contractual terms and conditions of the previous management agreement between the company and JMC (the “Management Agreement”) as compared to current market conditions and the historical and expected financial performance of the Company and JMC. Based on the analysis performed, the Company determined that the contractual payment terms were above market rates. The present value of the expected differential between payments previously required by the Management Agreement and those that would be required if the contract reflected current market terms was calculated over the Management Agreement contractual term. As the management fee previously paid by the Company was deemed to be above market and the settlement of this pre-existing relationship resulted in a loss, the loss was recognized in the consolidated statement of operations at the acquisition date and reduced the estimated purchase consideration transferred.
 
The Company did not recognize any goodwill on its acquisition of JHC because the only customer relationship JHC had was through its contract with the Company for management of the Company’s assets and the Company cannot recognize goodwill attributable to its relationship with itself.
 
 
 
 
 
 
The following table shows the allocation of the purchase price paid by the Company for its acquisition of JHC, the assets and liabilities that were assumed as a result of the Merger and calculation of the settlement loss.
 
Consideration paid in the merger:
 
  Cash consideration
$ 2,915,000
  ACY stock consideration
2,003,000
 
4,918,000
 
 
Fair value of assets acquired/(liabilities assumed):
 
  Cash
40,000
  Securities
121,000
  Accounts & note receivable
28,000
  Prepaid expenses
157,000
  Property, equipment and furnishings
79,000
  Office leasehold
925,000
  Accounts payable
 (85,000)
  Accrued vacation
 (93,000)
  Taxes payable
 (722,000)
  Deferred taxes
 (138,000)
 
312,000
 
 
Excess of consideration paid over net assets acquired
4,606,000
 
 
Waiver of JMC Margin payable
 (1,517,000)
Settlement of payable to JMC
(562,000)
 
 
Settlement Loss on Management Agreement with JMC
$ 2,527,000
 
11. Commitments and Contingencies
 
In the ordinary course of the Company’s business, the Company may be subject to lawsuits, arbitrations and administrative proceedings from time to time. The Company believes that the outcome of any existing or known threatened proceedings, even if determined adversely, should not have a material adverse effect on the Company's business, financial condition, liquidity or results of operations.
 
 
44
 
 
12. Income Taxes
 
The items comprising the income tax provision are as follows:
 
 
 
For the Years Ended December 31,
 
 
 
2019
 
 
2018
 
Current tax provision:
 
 
 
 
 
 
Federal
 $(34,100)
 $- 
State
  3,300 
  3,200 
Foreign
  418,300 
  414,000 
Current tax provision
  387,500 
  417,200 
Deferred tax benefit:
    
    
Federal
  (4,553,700)
  (1,270,400)
State
  (78,800)
  (26,100)
Foreign
  (262,800)
  (93,500)
Deferred tax benefit
  (4,895,300)
  (1,390,000)
Total income tax benefit
 $(4,507,800)
 $(972,800)
 
Total income tax benefit differs from the amount that would be provided by applying the statutory federal income tax rate to pretax earnings as illustrated below:
 
 
 
For the Years Ended December 31,
 
 
 
2019
 
 
2018
 
 
 
 
 
 
 
 
Income tax benefit at statutory federal income tax rate
 $(4,444,900)
 $(1,901,400)
State tax benefit, net of federal benefit
  (75,900)
  (44,500)
Non-deductible Merger expenses
  - 
  647,200 
Non-deductible management and acquisition fees
  7,600 
  325,900 
Other non-deductible expenses
  5,400 
  - 
Total income tax benefit
 $(4,507,800)
 $(972,800)
 
Temporary differences and carry-forwards that give rise to a significant portion of deferred tax assets and liabilities as of December 31, 2019 and 2018 were as follows:
 
 
 
December 31,
 
 
 
2019
 
 
2018
 
Deferred tax assets:
 
 
 
 
 
 
Current and prior year tax losses
 $4,980,100 
 $4,065,100 
Foreign tax credit
  758,400 
  611,900 
Deferred interest expense
  269,800 
  81,800 
Maintenance reserves
  470,000 
  3,100,800 
Deferred derivative losses
  452,100 
  - 
Deferred maintenance, bad debt allowance and other
  19,800 
  92,500 
Alternative minimum tax credit
  11,400 
  45,500 
Deferred tax assets
  6,961,600 
  7,997,600 
Deferred tax liabilities:
    
    
Accumulated depreciation on aircraft and aircraft engines
  (8,666,700)
  (14,773,800)
Deferred income
  (175,600)
  (320,600)
       Leasehold interest
  (131,400)
  (185,400)
Net deferred tax liabilities
 $(2,012,100)
 $(7,282,200)
 
 
45
 
 
 
 
December 31,
 
Reported as:
 
2019
 
 
2018
 
      Deferred tax asset
 $517,700 
 $254,900 
      Deferred income taxes (liability)
  (2,529,800)
  (7,537,100)
              Net deferred tax liabilities
 $(2,012,100)
 $(7,282,200)
 
Consolidated deferred federal income taxes arise from temporary differences between the valuation of assets and liabilities as determined for financial reporting purposes and federal income tax purposes and are measured at enacted tax rates. The Company’s deferred tax items are measured at an effective federal tax rate of 21% as of December 31, 2019 and December 31, 2018. Although realization is not assured, management believes it is more likely than not that the entire deferred federal income tax asset will be realized. The amount of the deferred federal income tax assets considered realizable could be reduced in the near term if estimates of future taxable income are reduced.
 
The Company is required to include on its U.S. income tax return its global intangible low-taxed income (“GILTI”) in excess of an allowable return on its foreign subsidiaries’ tangible assets. Per guidance issued by the FASB, companies can either account for deferred taxes related to GILTI or treat tax arising from GILTI as a period cost. Both are acceptable methods subject to an accounting policy election. On December 31, 2018, the Company finalized its policy and has elected to use the period cost method for GILTI. In 2018 and 2019, the Company did not include any GILTI from its Canadian subsidiary because all the subsidiary’s income was exempt from GILTI.
 
In addition, interest deductions are limited to 30% of the Company’s adjusted taxable income. The Company’s adjusted taxable income is computed without regard to any: (1) item of income, gain, deduction or loss, which is not allocable to its trade or business; (2) business interest income or expense; (3) net operating loss deduction; and (4) depreciation, amortization or depletion for tax years beginning before January 1, 2022, but taking into account depreciation, amortization, and depletion thereafter. The amount of interest deferred under this provision may be carried forward and deducted in years with excess positive adjusted taxable income. The Company had total disallowed interest expense for the years ended December 31, 2019 and 2018, of $583,300 and $380,900, respectively. The cumulative deferred interest expense of $964,200 may be carried forward indefinitely until the Company has excess positive adjusted taxable income against which it can deduct the deferred interest balance.
 
The current year federal operating loss carryovers of approximately $23.6 million will be available to offset 80% of annual taxable income in future years. Approximately $16 million of federal net operating loss carryovers may be carried forward through 2037 and the remaining $7.6 million federal net operating loss carryovers may be carried forward indefinitely. The current year state operating loss carryovers of approximately $385,300 will be available to offset taxable income in the two preceding years and in future years through 2039.  The Company expects to utilize the net operating loss carryovers remaining at December 31, 2019 in future years.
 
During the year ended December 31, 2019, the Company had pre-tax loss from domestic sources of approximately $100,000 and pre-tax loss from foreign sources of approximately $21.1 million. The Company had pre-tax loss from domestic sources of approximately $6.0 million and pre-tax loss from foreign sources of approximately $3.1 million for the year ended December 31, 2018. The foreign tax credit carryover will be available to offset federal tax expense in future years through 2029.
 
The Tax Cuts and Jobs Act of 2017 repealed the corporate alternative minimum tax for tax years beginning after 2017. In addition, beginning in 2018, the Company’s alternative minimum tax credit (“MTC”) was available to offset federal tax expense and is refundable in an amount equal to 50% of the excess MTC for the tax year over the amount of the credit allowable for the year against regular tax liability. In 2021, any remaining MTC will be fully refundable.
 
The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2015. At December 31, 2019, the Company had a balance of accrued tax, penalties and interest totaling $94,400 related to unrecognized tax benefits on its non-U.S. operations included in the Company’s accounts and taxes payable. The Company does not anticipate any significant changes to the unrecognized tax benefits within twelve months of this reporting date. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
 
 
 
December 31,
 
 
 
2019
 
 
2018
 
Balance at January 1
 $85,400 
  - 
Additions for prior years’ tax positions
  9,000 
  85,400 
Balance at December 31
 $94,400 
 $85,400 
 
The Company accounts for interest related to uncertain tax positions as interest expense, and for income tax penalties as tax expense.
 
All of the Company's tax years remain open to examination other than as barred in the various jurisdictions by statutes of limitation.
 
46
 
13. Computation of Loss Per Share
 
Basic and diluted earnings per share are calculated as follows:
 
 
 
 For the Years Ended
December 31,
 
 
 
2019
 
 
2018
 
Net loss
 $(16,658,500)
 $(8,081,200)
Weighted average shares outstanding for the period
  1,545,884 
  1,449,261 
Basic loss per share
 $(10.78)
 $(5.58)
Diluted loss per share
 $(10.78)
 $(5.58)
 
Basic loss per common share is computed using net loss and the weighted average number of common shares outstanding during the period. Diluted loss per common share is computed using net (loss)/income and the weighted average number of common shares outstanding, assuming dilution. Weighted average common shares outstanding, assuming dilution, include potentially dilutive common shares outstanding during the period. There were no anti-dilutive shares outstanding during 2019 or 2018.
 
14. Related Party Transactions
 
See the description of the Merger Agreement between the Company and JHC in Note 10, pursuant to which the Company acquired JHC in the Merger and JHC became a wholly-owned subsidiary of the Company on October 1, 2018.
 
Before completion of the Merger, the Company’s portfolio of aircraft assets was managed and administered under the terms of a management agreement with JMC (the “Management Agreement”). Certain officers of the Company were also officers of JHC and JMC and held significant ownership positions in both JHC and the Company, and JHC was also a significant stockholder of AeroCentury. Under the Management Agreement, JMC received a monthly management fee based on the net asset value of the Company’s assets under management. JMC also received an acquisition fee for locating assets for the Company. Acquisition fees were included in the cost basis of the asset purchased. JMC also received a remarketing fee in connection with the re-lease or sale of the Company’s assets. Remarketing fees were amortized over the applicable lease term or included in the gain or loss on sale.
 
In April 2018, subsequent to the execution of the Merger Agreement for the acquisition of JHC, JHC agreed to waive its right to receive management and acquisition fees (“Contract Fees”) otherwise owed by the Company to JHC pursuant to the Management Agreement for all periods after March 31, 2018 and until the earlier of the consummation of the Merger or August 15, 2018. In return, the Company agreed to reimburse JMC for expenses (“Management Expense”) incurred in providing management services set forth under the Management Agreement. In July 2018, JHC agreed to extend the expiration of this agreement (the “Waiver and Reimbursement Agreement”) through October 15, 2018. Thus, if the Merger Agreement was terminated on or before October 15, 2018 or the Merger did not close by October 15, 2018, the Company would have become obligated to pay JMC any excess (the “JMC Margin”) of (i) the Contract Fees that would have been paid to JMC since April 1, 2018 in the absence of the Waiver and Reimbursement Agreement over (ii) the Management Expenses actually paid by the Company to JMC since April 1, 2018. For the nine months ended September 30, 2018, Contract Fees exceeded the reimbursed Management Expense by $1,023,000 of management fees and $494,000 of acquisition fees. Notwithstanding the Waiver and Reimbursement Agreement, until the closing or termination of the Merger Agreement, the Company accrued as an expense the total Contract Fees that would have been due under the Management Agreement. Because the Merger closed on October 1, 2018, the Waiver and Reimbursement Agreement for the period from April 1, 2018 through September 30, 2018 was considered in the acquisition accounting for the calculation of the settlement loss recognized by the Company when the Merger was consummated.
 
The Company incurred management fees and acquisition fees of $4,482,800 and $494,400, respectively, during 2018.
 
 
47
 
 
15. Subsequent Events
 
Effective January 1, 2020, the Company reduced both the size of the office space leased and the amount of rent payable in the future. As such, in 2020 the Company will recognize a reduction in both the capitalized amount related to the surrendered office space and a proportionate amount of the liability associated with its future lease obligations. In January 2020, the Company recorded a loss of $160,000 related to the reduction in its ROU Asset, net of the reduction in its operating lease liability, and will recognize amortization of $308,100, $317,600 and $162,600 in 2020, 2021 and the first half of 2022, respectively.
 
In January 2020, the Company amended the leases for three of its assets that are subject to sales-type finance leases. The amendments provided for (i) the sale of one aircraft to the customer in January 2020, (ii) application of collected maintenance reserves and a security deposit held by the Company to past due amounts for the other two aircraft, (iii) required payments totaling $585,000 in January for two of the leases and (iv) reduced the amount of future payments due under the two leases.
 
In January 2020, the lessee for an aircraft leased pursuant to a direct financing lease notified the Company of its intention to exercise the lease-end purchase option for the aircraft in March 2020. In February 2020, the Company and the same lessee agreed to the early exercise of lease-end purchase options for direct financing leases that were to expire in March 2021 and March 2022. All three aircraft were sold to the lessee in March 2020.
 
In March 2019, the Company entered into two interest rate derivative instruments in connection with the MUFG Credit Facility. In March 2020, the counterparties to the MUFG Swaps terminated the MUFG Swaps and the Company became obligated to pay $3.1 million to the counterparties.
 
In January 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus and the risks to the international community as the virus spreads globally (the “COVID-19 Outbreak”). In March 2020, the WHO classified the COVID-19 Outbreak as a pandemic, based on the rapid increase in exposure globally. The ongoing COVID-19 Outbreak has had an overwhelming effect on all forms of transportation globally, but most acutely for the airline industry. The combined effect of fear of infection during air travel and international and domestic travel restrictions has caused a dramatic decrease in passenger loads in all areas of the world, not just in those countries with active clusters of COVID-19, but in airline ticket net bookings (i.e. bookings made less bookings canceled) of flights as well. This has led to significant cash flow issues for airlines, including some of the Company’s customers, and some airlines may be unable to timely meet their obligations under their lease obligations with the Company unless government financial support is received, of which there can be no assurance. Any significant nonpayment or late payment of lease payments by a significant lessee or combination of lessees could in turn impose limits on the Company’s ability to fund its ongoing operations as well as cause new defaults under the Company’s debt obligations, which in turn could lead to an immediate acceleration of debt and foreclosure upon the Company’s assets. Furthermore, for the duration of the pandemic and a period of financial recovery thereafter, sale and acquisition transactions are likely to be curtailed entirely or delayed while the industry returns to financial stability, which could impact the Company’s ability to implement its Recapitalization Plan. No impairments were recorded as of the balance sheet date as no triggering events or changes in circumstances had occurred as of year-end; however, due to significant uncertainty surrounding the situation, management's judgment regarding this could change in the future. In addition, while the Company’s results of operations, cash flows and financial condition could be negatively impacted, the extent of the impact cannot be reasonably estimated at this time.
 
However, as a result of the COVID-19 Outbreak, in March 2020, one of the Company’s customers, which leases two regional jet aircraft subject to Nord Term Loan financing, did not make its quarterly rent payment of approximately $1.4 million. The nonpayment led to a corresponding Nord Term Loan financing payment event of default under the Nord Term Loans for each of those subsidiaries. The Company is currently reviewing its options for remedies against the lessee. It has also entered into negotiations with Nord regarding a workout for the corresponding overdue Nord Term Loan payments.   As a result of the non-payment on the two regional jets by the Company’s customer and potential consequent uncertainty concerning future interest payments under the related Nord Term Loans, as well as potential uncertainty related to rent payments and related debt payments on the other three Nord Term Loans, the Company is reevaluating its hedge accounting for the five interest rate derivatives associated with those loans.
 
 
 
48
 
 
Item 9.  Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.
 
None.
 
Item 9A. Controls and Procedures.
 
CEO and CFO Certifications. Attached as exhibits to this Annual Report on Form 10-K are certifications of the Company’s Chief Executive Officer (the “CEO”) and the Company’s Chief Financial Officer(the “CFO”), which are required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (the “Section 302 Certifications”). This Item 9A includes information concerning the evaluation of disclosure controls and procedures referred to in the Section 302 Certifications and should be read in conjunction with the Section 302 Certifications for a more complete understanding of the topics presented.
 
Evaluation of the Company’s Disclosure Controls and Procedures. Disclosure controls and procedures (“Disclosure Controls”) are controls and other procedures that are designed to ensure that information required to be disclosed in the Company’s reports filed or submitted under the Exchange Act, such as this report, is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to the Company’s management, including the CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.
 
In the course of the review of the consolidated financial results of the Company for the three months and nine months ended September 30, 2018, the Company identified a material weakness in its internal control over financial reporting (“Internal Control”) at June 30, 2018 related to the Company’s incorrect accounting for management fees and acquisition fees associated with the Management Agreement between JHC and the Company.  A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis.  Although the Company implemented controls over identifying the proper accounting treatment for the JHC acquisition and those controls operated as of December 31, 2018, the Company’s tax review control did not identify a complex component of the acquisition accounting, resulting in an adjustment to the Company’s tax expense in 2018. Management has determined that this deficiency continues to constitute a material weakness as of December 31, 2019. Management is in the process of enhancing the tax review control related to unusual transactions the Company may encounter.
 
The Company’s management, with the participation of the CEO and CFO, evaluated the effectiveness of the Company’s Disclosure Controls as of December 31, 2019. Based on this evaluation, the CEO and CFO concluded that the Company’s Disclosure Controls were not effective as of December 31, 2019 due to the material weakness described above.
 
Changes in Internal Control. No change in the Company’s Internal Control occurred during the fiscal quarter ended December 31, 2019 that has materially affected, or is reasonably likely to materially affect, the Company’s Internal Control.
 
Inherent Limitations of Disclosure Controls and Internal Control. In designing its Disclosure Controls and Internal Control, the Company’s management recognizes that any controls and procedures, no matter how well-designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of the Company’s controls and procedures must reflect the fact that there are resource constraints, and management necessarily applies its judgment in evaluating the benefits of possible controls and procedures relative to their costs. Because of these inherent limitations, the Company’s Disclosure Controls and Internal Control may not prevent or detect all instances of fraud, misstatements or other control issues. In addition, projections of any evaluation of the effectiveness of disclosure or internal controls to future periods are subject to risks, including, among others, that controls may become inadequate because of changes in conditions or that compliance with policies or procedures may deteriorate.
 
Management’s Annual Report on the Company’s Internal Control
 
Internal Control is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes policies and procedures that (1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of management and directors; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on the financial statements.
 
The Company's management is responsible for establishing and maintaining adequate Internal Control. Management evaluated the Company's Internal Control based on the framework set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control – Integrated Framework (2013). Based on such evaluation, management concluded that the Company's Internal Control was not effective as of December 31, 2019 due to the material weakness described under “Evaluation of the Company’s Disclosure Controls and Procedures.
 
 
49
 
 
This report does not include an attestation report on Internal Control by the Company's independent registered public accounting firm because such an attestation report is not required for smaller reporting companies pursuant to the rules of the SEC.
 
Changes in Internal Control. No change in the Company’s Internal Control occurred during the fiscal quarter ended December 31, 2019 that has materially affected, or is reasonably likely to materially affect, the Company’s Internal Control.
  
Item 9B. Other Information.
 
None.
 
 
50
 
 
PART III
 
Item 10.  Directors, Executive Officers and Corporate Governance.
 
The information required by this item is included in the Company’s definitive proxy statement (“Proxy Statement”) to be filed in connection with the Company’s 2020 Annual Meeting of Stockholders, under (i) “Proposal 1: Election of Directors,” “Information Regarding the Company’s Directors and Executive Officers—Current Board of Directors,” “Information Regarding the Company’s Directors and Executive Officers—Key Employees” and “Information Regarding the Company’s Directors and Executive Officers—Family Relationships” as it relates to the information about the Company’s directors, executive officers and certain key employees required by Item 401 of Regulation S-K, (ii) “Delinquent Section 16(a) Reports” as it relates to the information concerning Section 16(a) beneficial ownership reporting compliance required by Item 405 of Regulation S-K, (iii) “Information Regarding the Company’s Directors and Executive Officers—Board Meetings and Committees—Audit Committee” as it relates to the information about the Audit Committee of the Board of Directors and the “audit committee financial expert” required by Item 407(d)(4) and (d)(5) of Regulation S-K, and (iv) “Information Regarding the Company’s Directors and Executive Officers—Director Nominations” as it relates to any changes to procedures by which security holders may recommend nominees to the Board of Directors as required by Item 407(c)(3) of Regulation S-K, and all such information is incorporated herein by reference.
 
The Company has adopted a code of business conduct and ethics, or the “code of conduct.” The code of conduct applies to all of the Company’s employees, including its executive officers, and non-employee directors, and it qualifies as a “code of ethics” within the meaning of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules promulgated thereunder. A copy of the code of conduct is available on the Company’s website at http://www.aerocentury.com/code-of-conduct.php or upon written request to the Investor Relations Department, 1440 Chapin Avenue, Suite 310, Burlingame, California 94010. To the extent required by law, any amendments to, or waivers from, any provision of the code of conduct will be promptly disclosed publicly. To the extent permitted by such requirements, the Company intends to make such public disclosure on its website in accordance with SEC rules.
 
Item 11. Executive Compensation.
 
The information required by this item is included in the Proxy Statement under “Information Regarding the Company’s Directors and Officers—Director Compensation” and “Information Regarding the Company’s Directors and Officers—Executive Compensation” and is incorporated herein by reference.
 
Item 12.  Security Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters.
 
The information required by this item is included in the Proxy Statement under “Security Ownership of Certain Beneficial Owners and Management” and is incorporated herein by reference.
 
Item 13.  Certain Relationships and Related Transactions, and Director Independence.
 
The information required by this item is included in the Proxy Statement under “Related Party Transactions” and “Information Regarding the Company’s Directors and Officers—Board Independence” and is incorporated herein by reference.
 
Item 14.  Principal Accountant Fees and Services.
 
The information required by this item is included in the Proxy Statement under “Information Regarding Auditor” and is incorporated herein by reference.
 
51
 
 
PART IV
 
Item 15.  Exhibits, Financial Statements Schedules.
 
(a)(1)            
The following financial statements of the Company are filed in Item 8 of this report:
 
Report of Independent Registered Public Accounting Firm
Consolidated Balance Sheets as of December 31, 2019 and 2018
Consolidated Statements of Operations for the Years Ended December 31, 2019 and 2018
Consolidated Statements of Comprehensive Loss for the Years Ended December 31, 2019 and 2018
Consolidated Statements of Stockholders’ Equity for the Years Ended December 31, 2019 and 2018
Consolidated Statements of Cash Flows for the Years Ended December 31, 2019 and 2018
Notes to Consolidated Financial Statements
 
(a)(2)            
All financial statement schedules have been omitted because the required information is presented in the consolidated financial statements or is not applicable.
 
(a)(3)            
The following exhibits are filed with or incorporated by reference in this report:
 

Exhibit Number
 
Description
 
2.1§
 
3.1.1^
 
3.1.2^
 
3.1.3
 
3.1.4
 
3.2
 
4.1
Reference is made to Exhibit 3.1.4.
 
 
52
 
 
4.2
Description of Registrant’s Securities
 
10.1+
 
10.2
 
10.3
 
10.4
 
10.5
 
10.6
 
 
10.7
 
10.8
 
10.9
 
10.10
 
 
 
53
 
 
10.11
 
21.1
 
24.1
Power of Attorney (included on the signature page hereto)
 
31.1
31.2
 
32.1*
 
32.2*
101.INS
XBRL Instance Document
 
101.SCH
XBRL Schema Document
 
101.CAL
XBRL Calculation Linkbase Document
 
101.LAB
XBRL Label Linkbase Document
 
101.PRE
XBRL Presentation Linkbase Document
 
101.DEF
XBRL Definition Linkbase Document
 
* These certificates are furnished to, but shall not be deemed to be filed with, the SEC.
 
§  Schedules and other similar attachments have been omitted pursuant to Item 601(b)(2) of Regulation S-K promulgated by the SEC. The signatory hereby undertakes to furnish supplemental copies of any of the omitted schedules and attachments upon request by the SEC.
 
+  Management contract or compensatory plan or arrangement.
 
^ Originally filed in paper format.
 
 
Item 16.  Form 10-K Summary.
 
The Company has elected not to provide summary information.
 
 
54
 
 
SIGNATURES
 
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
AEROCENTURY CORP.
 
By: /s/ Harold M. Lyons
Harold M. Lyons
Senior Vice President-Finance and
Chief Financial Officer
 
Date March 30, 2020
 
POWER OF ATTORNEY
 
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Harold M. Lyons, or his attorneys-in-fact, with the power of substitution, for him in any and all capacities, to sign any amendments to this Report on Form 10-K and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, hereby ratifying and confirming all that said attorneys-in-fact, or his substitute or substitutes, may do or cause to be done by virtue hereof.
 
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated.
 
Signature
Title
Dated
 
 
 
/s/ Michael G. Magnusson
Director and President of the Registrant (Principal Executive Officer)
 March 30, 2020
Michael G. Magnusson
 
 
 
 
 
/s/ Harold M. Lyons
Senior Vice President-Finance and Secretary of the Registrant (Principal Financial and Accounting Officer)
 March 30, 2020
Harold M. Lyons
 
 
 
 
 
 
/s/ Evan M. Wallach
Director and Chairman of the Board of Directors of the Registrant
 March 30, 2020
Evan M. Wallach
 
 
 
 
 
/s/ Roy E. Hahn
Director
 March 30, 2020
Roy E. Hahn
 
 
 
 
 
/s/ Toni M. Perazzo
Director
 March 30, 2020
Toni M. Perazzo
 
 
 
/s/ David P. Wilson
Director
 March 30, 2020
David P. Wilson
 
 
 
55

EX-4.2 2 exhibit42.htm INSTRUMENTS DEFINING THE RIGHTS OF SECURITY HOLDERS, INCLUDING INDENTURES exhibit42
Exhibit 4.[2]
DESCRIPTION OF THE REGISTRANT’S SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934
 
The following is a brief description of the common stock, $0.001 par value per share (the “Common Stock”), of AeroCentury Corp. (the “Company”), which is the only security of the Company registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended.
 
Description of Common Stock
 
General
 
The following summary of the material features of our Common Stock and certain provisions of Delaware law do not purport to be complete and is subject to, and qualified in its entirety by, the provisions of our Amended and Restated Certificate of Incorporation, our Amended and Restated Bylaws, the Delaware General Corporation Law (“DGCL”) and other applicable law. Copies of our Amended and Restated Certificate of Incorporation and our Amended and Restated Bylaws have been filed with the Securities and Exchange Commission (the “SEC”) as Exhibit 3.1 and Exhibit 3.2, respectively, to our Annual Report on Form 10-K. All of our outstanding Common Stock are validly issued, fully paid and non-assessable. Our Common Stock is listed on the NYSE American and trades under the symbol “ACY.”
 
Common Stock
 
Dividend rights
 
Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of Common Stock will be entitled to share equally, identically and ratably in any dividends that the board of directors may determine to issue from time to time out of legally available funds. We have never paid cash dividends on our Common Stock and do not anticipate paying periodic cash dividends on our Common Stock for the foreseeable future.
 
Voting rights
 
Each holder of our Common Stock is entitled to one vote for each share on all matters submitted to a vote of the stockholders. Subject to any rights that may be applicable to any then outstanding preferred stock, our Common Stock votes as a single class on all matters relating to the election and removal of directors on our board of directors and as provided by law. Holders of our Common Stock do not have cumulative voting rights. Except in respect of matters relating to the election and removal of directors on our board of directors and as otherwise provided in our Amended and Restated Certificate of Incorporation or required by law, all matters to be voted on by our stockholders must be approved by a majority of the shares present in person or by proxy at the meeting and entitled to vote on the subject matter. In the case of election of directors, all matters to be voted on by our stockholders must be approved by a plurality of the votes entitled to be cast by all shares of our Common Stock.
 
Liquidation Rights
 
In the event of any voluntary or involuntary liquidation, dissolution or winding up of our affairs, holders of our Common Stock would be entitled to share ratably in our assets that are legally available for distribution to stockholders after payment of our debts and other liabilities. If we have any preferred stock outstanding at such time, holders of the preferred stock may be entitled to distribution and/or liquidation preferences. In either such case, we must pay the applicable distribution to the holders of our preferred stock before we may pay distributions to the holders of our Common Stock.
 
No Preemptive or Similar Rights
 
Our stockholders have no preemptive, conversion or other rights to subscribe for additional shares of our Common Stock. All outstanding shares of our Common Stock are, and all shares of our Common Stock offered by this prospectus will be, when sold, validly issued, fully paid and nonassessable.
 
Limitation on Rights of Holders of Common Stock – Preferred Stock
 
The rights, preferences and privileges of the holders of Common Stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of preferred stock that we may designate in the future.
 
Our Amended and Restated Certificate of Incorporation authorizes our Board of Directors, without further stockholder action, to provide for the issuance of up to 2,000,000 shares of preferred stock. Our board of directors may, without further action by our stockholders, fix the rights, preferences, privileges and restrictions of up to an aggregate of shares of preferred stock in one or more series and authorize their issuance. These rights, preferences and privileges could include dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms and the number of shares constituting any series or the designation of such series, any or all of which may be greater than the rights of our Common Stock. The issuance of our preferred stock could adversely affect the voting power of holders of our Common Stock and the likelihood that such holders will receive dividend payments and payments upon liquidation. In addition, the issuance of preferred stock could have the effect of delaying, deferring or preventing a change of control or other corporate action.
 
Certain Anti-Takeover Matters
 
Amended and Restated Certificate of Incorporation and Amended and Restated Bylaw Provisions
 
Our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws contain certain provisions that are intended to enhance the likelihood of continuity and stability in the composition of our board of directors and in the policies formulated by our board of directors and to discourage an unsolicited takeover of our company if our board of directors determines that such a takeover is not in the best interests of our company and stockholders. However, these provisions could have the effect of discouraging certain attempts to acquire us or remove incumbent management even if some or a majority of our stockholders deemed such an attempt to be in their best interests, including those attempts that might result in a premium over the market price for the shares of our Common Stock held by stockholders.
 
Our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws provide that our board of directors is classified into three classes of directors. A third party may be discouraged from making a tender offer or otherwise attempting to obtain control of us as it is more difficult and time consuming for stockholders to replace a majority of the directors on a classified board of directors.
 
Our Amended and Restated Bylaws establish advance notice procedures with regard to stockholder proposals and the nomination, other than by or at the direction of the board of directors or a committee thereof, of candidates for election as directors. We may reject a stockholder proposal or nomination that is not made in accordance with such procedures. In addition, our Amended and Restated Bylaws provide that:
special meetings of the stockholders of the Company may be called, for any purpose as is a proper matter for stockholder action under Delaware law, by only the directors or by any officers instructed by the directors to call the meeting;
a director may not be removed from office without cause unless by the vote of the holders of 66 2/3% or more of the outstanding shares of our Common Stock entitled to vote at a special meeting of stockholders; and
our Amended and Restated Bylaws may be altered, amended or repealed at any regular meeting of the stockholders (or at any special meeting thereof duly called for such purpose) by the affirmative vote of holders of at least 66 2/3% of our entire capital stock that is issued, outstanding and entitled to vote.
 
Section 203 of the Delaware General Corporation Law
 
We are subject to the provisions of Section 203 of the DGCL. Under Section 203, we would generally be prohibited from engaging in any business combination with any interested stockholder for a period of three years following the time that this stockholder became an interested stockholder unless:
prior to this time, the board of directors of the corporation approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder;
upon consummation of the transaction that resulted in the stockholder’s becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding shares owned by persons who are directors and also officers, and by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or
at or subsequent to such time, the business combination is approved by the board of directors and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66 2⁄3% of the outstanding voting stock that is not owned by the interested stockholder.
 
Under Section 203, a “business combination” includes:
any merger or consolidation involving the corporation and the interested stockholder;
any sale, transfer, pledge or other disposition of 10% or more of the assets of the corporation involving the interested stockholder;
any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder, subject to limited exceptions;
any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series of the corporation beneficially owned by the interested stockholder; or
the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation
 
            
In general, Section 203 defines an interested stockholder as an entity or person beneficially owning 15% or more of the outstanding voting stock of the corporation and any entity or person affiliated with or controlling or controlled by such entity or person.
 
Limitation of Liability and Indemnification Matters
 
Our Amended and Restated Certificate of Incorporation and our Amended and Restated Bylaws provide for indemnification of our directors, officers, employees and other agents to the maximum extent permitted by applicable law. We also have entered into indemnification agreements with our executive officers and directors and provide indemnity insurance pursuant to which directors and officers are indemnified or insured against liability or loss under certain circumstances which may include liability or related loss under the Securities Act and the Exchange Act.
 
 
 
EX-21.1 3 exh211acysubsdiaries.htm SUBSIDIARIES OF THE REGISTRANT exh211acysubsdiaries
 
EHXIBIT 21.1
 
 
 
Subsidiaries
 
ACY E-175 LLC, a Delaware limited liability company
 
ACY SN 15129 LLC,  a Delaware limited liability company
 
ACY SN 19002 Limited,  an English limited liability company
 
ACY SN 19003 Limited,  an English limited liability company
 
JetFleet Holding Corp., a California corporation
 
JetFleet Management Corp., a California corporation
 
1314401 Alberta Inc., d/b/a JetFleet Canada, an Alberta, Canada corporation



 
 
 
 
EX-31.1 4 mgm302cert.htm CERTIFICATION PURSUANT TO RULE 13A-14(A)/15D-14(A) CERTIFICATIONS SECTION 302 OF THE SARBANES-OXLY ACT OF 2002 mgm302cert
 
Exhibit 31.1
CERTIFICATION
 
 

I, Michael G. Magnusson, certify that:
 

1.     I have reviewed this annual report on Form 10-K of AeroCentury Corp.;
 

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 

4.    The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:
 

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 

(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 

(c)    Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 

(d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the  registrant's most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
 

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
 
 
 
 
 
 
 
 
March 30, 2020
By:
/s/ Michael G. Magnusson     
 
 
 
Name: Michael G. Magnusson
 
 
 
Title: President & Chief Executive Officer
 
 
 
 
 

 
 
EX-31.2 5 hml302cert.htm CERTIFICATION PURSUANT TO RULE 13A-14(A)/15D-14(A) CERTIFICATIONS SECTION 302 OF THE SARBANES-OXLY ACT OF 2002 hml302cert
 

Exhibit 31.2
CERTIFICATION
 
 

I, Harold M. Lyons, certify that:
 

1.     I have reviewed this annual report on Form 10-K of AeroCentury Corp.;
 

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 

4.    The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:
 

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 

(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 

(c)    Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 

(d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the  registrant's most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
 

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
 
 
 
 
 
 
 
 
March 30, 2020
By:
/s/ Harold M. Lyons   
 
 
 
Name: Harold M. Lyons
 
 
 
Title: Sr. V.P. Finance & Chief Financial Officer
 
 
 
 
 
 
 
 
 
EX-32.1 6 mgm906cert.htm CERTIFICATE PURSUANT TO SECTION 18 U.S.C. PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 mgm906cert
 

Exhibit 32.1
CERTIFICATION
 
 
In connection with this annual report of AeroCentury Corp. (the “Company”) on Form 10-K for the period ended December 31, 2019, as filed with the Securities and Exchange Commission (the “Report”), I, Michael G. Magnusson, Chief Executive Officer of the Company, hereby certify as of the date hereof, solely for purposes of Title 18, Chapter 63, Section 1350 of the United States Code, that to the best of my knowledge:
 

(1)  the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and
 

(2)  the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.  
 
This Certification has not been, and shall not be deemed, “filed” with the Securities and Exchange Commission.
 
 
 
 
 
 
 
 
 
March 30, 2020
By:
/s/ Michael G. Magnusson    
 
 
 
Name: Michael G. Magnusson
 
 
 
Title: President and Chief Executive Officer
 
 
 
 
 
 
 
EX-32.2 7 hml906cert.htm CERTIFICATE PURSUANT TO SECTION 18 U.S.C. PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 hml906cert
 
Exhibit 32.2
CERTIFICATION
 
 
In connection with this annual report of AeroCentury Corp. (the “Company”) on Form 10-K for the period ended December 31, 2019, as filed with the Securities and Exchange Commission (the “Report”), I, Harold M. Lyons, Chief Financial Officer of the Company, hereby certify as of the date hereof, solely for purposes of Title 18, Chapter 63, Section 1350 of the United States Code, that to the best of my knowledge:
 

(1)  the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and
 

(2)  the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.  
 
This Certification has not been, and shall not be deemed, “filed” with the Securities and Exchange Commission.
 
 
 
 
 
 
 
 
 
March 30, 2020
By:
/s/ Harold M. Lyons
 
 
 
Name: Harold M. Lyons
 
 
 
Title: Sr. Vice President -Finance and Chief Financial Officer
 
 
 
 
 

 
EX-101.INS 8 acy-20181231.xml XBRL INSTANCE DOCUMENT 0001036848 2019-01-01 2019-12-31 0001036848 2018-12-31 0001036848 2019-12-31 0001036848 2018-01-01 2018-12-31 0001036848 srt:AfricaMember 2018-01-01 2018-12-31 0001036848 srt:AfricaMember 2019-01-01 2019-12-31 0001036848 2017-12-31 0001036848 us-gaap:CommonStockMember 2017-12-31 0001036848 us-gaap:CommonStockMember 2018-12-31 0001036848 us-gaap:CommonStockMember 2019-12-31 0001036848 acy:CustomerThreeMember acy:OperatingLeaseRevenueMember 2019-01-01 2019-12-31 0001036848 acy:CustomerTwoMember acy:OperatingLeaseRevenueMember 2018-01-01 2018-12-31 0001036848 acy:CustomerOneMember acy:OperatingLeaseRevenueMember 2018-01-01 2018-12-31 0001036848 acy:CustomerOneMember acy:OperatingLeaseRevenueMember 2019-01-01 2019-12-31 0001036848 acy:CustomerFourMember acy:OperatingLeaseRevenueMember 2019-01-01 2019-12-31 0001036848 acy:CustomerThreeMember acy:OperatingLeaseRevenueMember 2018-01-01 2018-12-31 0001036848 acy:CustomerFourMember acy:OperatingLeaseRevenueMember 2018-01-01 2018-12-31 0001036848 acy:CustomerFiveMember acy:FinanceLeaseRevenueMember 2018-01-01 2018-12-31 0001036848 acy:CustomerTwoMember acy:OperatingLeaseRevenueMember 2019-01-01 2019-12-31 0001036848 us-gaap:LineOfCreditMember 2018-12-31 0001036848 us-gaap:LineOfCreditMember 2019-12-31 0001036848 acy:SpecialPurposeFinancingMember 2018-12-31 0001036848 acy:SpecialPurposeFinancingMember 2019-12-31 0001036848 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-12-31 0001036848 us-gaap:CommonStockMember 2019-01-01 2019-12-31 0001036848 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-12-31 0001036848 us-gaap:TreasuryStockMember 2019-01-01 2019-12-31 0001036848 us-gaap:RetainedEarningsMember 2019-01-01 2019-12-31 0001036848 us-gaap:CommonStockMember 2018-01-01 2018-12-31 0001036848 us-gaap:RetainedEarningsMember 2018-01-01 2018-12-31 0001036848 srt:AsiaMember 2019-01-01 2019-12-31 0001036848 srt:AsiaMember 2018-01-01 2018-12-31 0001036848 acy:EuropeAndUnitedKingdomMember 2018-01-01 2018-12-31 0001036848 srt:NorthAmericaMember 2019-01-01 2019-12-31 0001036848 srt:NorthAmericaMember 2018-01-01 2018-12-31 0001036848 acy:EuropeAndUnitedKingdomMember 2019-01-01 2019-12-31 0001036848 srt:NorthAmericaMember 2018-12-31 0001036848 srt:AsiaMember 2019-12-31 0001036848 acy:EuropeAndUnitedKingdomMember 2018-12-31 0001036848 srt:AsiaMember 2018-12-31 0001036848 srt:NorthAmericaMember 2019-12-31 0001036848 acy:EuropeAndUnitedKingdomMember 2019-12-31 0001036848 us-gaap:TreasuryStockMember 2018-01-01 2018-12-31 0001036848 us-gaap:TreasuryStockMember 2017-12-31 0001036848 us-gaap:RetainedEarningsMember 2017-12-31 0001036848 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001036848 us-gaap:TreasuryStockMember 2019-12-31 0001036848 us-gaap:RetainedEarningsMember 2019-12-31 0001036848 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001036848 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001036848 us-gaap:TreasuryStockMember 2018-12-31 0001036848 us-gaap:RetainedEarningsMember 2018-12-31 0001036848 acy:TurbopropAircraftMember 2019-12-31 0001036848 acy:EnginesMember 2018-12-31 0001036848 acy:RegionalJetAircraftMember 2019-12-31 0001036848 acy:RegionalJetAircraftMember 2018-12-31 0001036848 acy:TurbopropAircraftMember 2018-12-31 0001036848 acy:EnginesMember 2019-12-31 0001036848 acy:ThreeCustomersMember 2018-12-31 0001036848 acy:ThreeCustomersMember 2018-01-01 2018-12-31 0001036848 acy:SpecialPurposeFinancingMember acy:UKSPEFinancingMember 2019-12-31 0001036848 acy:SpecialPurposeFinancingMember acy:TermLoansMember 2019-12-31 0001036848 acy:SpecialPurposeFinancingMember acy:UKSPEFinancingMember 2018-12-31 0001036848 acy:SpecialPurposeFinancingMember acy:TermLoansMember 2018-12-31 0001036848 us-gaap:MoneyMarketFundsMember 2019-12-31 0001036848 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0001036848 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0001036848 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0001036848 us-gaap:DerivativeMember 2019-12-31 0001036848 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0001036848 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0001036848 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0001036848 us-gaap:FairValueInputsLevel1Member 2019-12-31 0001036848 us-gaap:FairValueInputsLevel2Member 2019-12-31 0001036848 us-gaap:FairValueInputsLevel3Member 2019-12-31 0001036848 us-gaap:MoneyMarketFundsMember 2018-12-31 0001036848 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member 2018-12-31 0001036848 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel2Member 2018-12-31 0001036848 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel3Member 2018-12-31 0001036848 us-gaap:DerivativeMember 2018-12-31 0001036848 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel1Member 2018-12-31 0001036848 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel2Member 2018-12-31 0001036848 us-gaap:DerivativeMember us-gaap:FairValueInputsLevel3Member 2018-12-31 0001036848 us-gaap:FairValueInputsLevel1Member 2018-12-31 0001036848 us-gaap:FairValueInputsLevel2Member 2018-12-31 0001036848 us-gaap:FairValueInputsLevel3Member 2018-12-31 0001036848 2019-06-28 0001036848 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-12-31 0001036848 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-12-31 0001036848 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001036848 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001036848 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001036848 acy:CustomerFiveMember acy:OperatingLeaseRevenueMember 2019-01-01 2019-12-31 0001036848 acy:CustomerSixMember acy:FinanceLeaseRevenueMember 2019-01-01 2019-12-31 0001036848 acy:CustomerSevenMember acy:FinanceLeaseRevenueMember 2019-01-01 2019-12-31 0001036848 acy:OneCustomerMember 2019-12-31 0001036848 acy:OneCustomerMember 2019-01-01 2019-12-31 0001036848 us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0001036848 us-gaap:NondesignatedMember 2019-12-31 0001036848 2020-03-30 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure acy:Unit false --12-31 2019-12-31 No No Yes Non-accelerated Filer AEROCENTURY CORP 0001036848 2019 FY 10-K false false true Yes DE 001-13387 8565600 3967200 1139700 121000 0 1542500 2350200 863300 0 0 948300 69100 62900 10223300 26036600 184019900 108368600 68485400 0 110069000 5465500 63799600 44569000 15250900 8802100 254900 517700 840100 292800 217152200 149595800 131092200 111638400 78600 164200 1025600 736000 175864300 126337200 497400 175000 7537100 2529800 3274800 3039200 3367800 1034300 463300 446300 28527500 4413100 0 336400 0 1824500 570900 1253600 217152200 149595800 41287900 23258600 47366700 1600 1800 1800 -3036800 35621800 14780100 -3037300 10882100 16782800 16782800 -3037300 27540600 0 0 -1370800 1800 1800 16782800 16782800 27540600 10882100 0 -1370800 44325200 26295900 3037300 3037300 0 0 869600 828000 0 2908600 36675500 31338700 2200 9600 0 405400 61700 0 674300 3825700 674300 3084200 0 741500 0.001 .001 2000000 2000000 0 0 0 0 0.001 .001 10000000 10000000 1545884 1545884 1545884 1545884 213332 213332 43599100 27116400 12800 7600 -170600 0 326900 -3408700 852600 1251000 832800 48700 418200 365600 16968400 1629000 25609000 27637500 315000 1259600 16258800 10119100 10119100 15174900 64765400 36170400 0 -2527000 0 4482800 114300 90200 621300 383700 850800 636000 2367500 592300 2908600 0 4005100 2343800 11302900 9506000 11587500 12637100 31007400 2971500 -16658500 -8081200 -16658500 -8081200 -4507800 -972800 -21166300 -9054000 -10.78 -5.58 -10.78 -5.58 1545884 1449261 1545884 1449261 -186400 0 -374900 0 -1370800 0 -1370800 -18029300 -8081200 129217 2002900 2002700 200 32 500 500 1416699 1545884 1545884 -154000 0 -4895200 -1390000 3376300 1615500 0 61700 11587500 12637100 0 42700 -170600 0 326900 -3408700 8169700 17941200 -322400 -677200 -32100 827300 0 -4100 -14016200 3552600 336400 0 310200 -147100 85600 -14800 -277300 1802700 5600 -22500 -551700 457800 -263400 133100 5962800 537400 16930400 -9085800 0 2875100 0 22844300 15107000 4945200 1702400 11688400 44310000 0 44300000 32600000 5984100 21000000 9211100 4300700 13395600 0 6527700 70000 -23215500 -15970700 8123100 8173900 617600 1063200 0 2908600 2 1 9 13 4 0 .20 .01 0.80 0.81 .18 .00 17650900 10392000 8639600 8639600 6826100 1683300 53831500 17107100 9096400 1856200 286600 0 7700 15250900 8802100 3817200 2608200 2114000 557000 9096400 0.16 .21 .30 .23 0.14 .15 .13 .67 .23 .87 .10 .57 .38 .74 3413500 828000 122400000 84084100 0 30914500 9211200 0 139300 376200 16000 89300 47600000 915900 .0592 .1023 255200 0 147400 0 402600 -1932100 0 186400 0 -1745700 0 193500 196400 145000 199300 147200 101100 74700 690300 366900 30500 443500 116000 559500 400 400 0 0 656400 656400 0 0 5800000 25880700 0 0 25880700 0 0 5800000 25656100 837500 0 494400 85400 94400 0 9000 85400 -34100 0 3300 3200 418300 414000 387500 417200 -4553700 -1270400 -78800 -26100 -262800 -93500 -4444900 -1901400 -75900 -44500 0 647200 7600 325900 5400 0 7997600 6961600 45500 11400 92500 19800 3100800 470000 81800 269800 611900 758400 4065100 4980100 0 452100 185400 131400 320600 175600 14773800 8666700 -7282200 -2012100 254900 517700 7537100 2529800 1824500 0 1824500 0 0 0 0 0 656400 -1824100 400 -1824500 0 656400 0 0 <table cellpadding="0" cellspacing="0" style="font: 8pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 12pt; text-align: justify">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td colspan="31" style="border-bottom: Black 1pt solid; text-align: center">Assets Written Down to Fair Value</td><td style="padding-bottom: 1pt">&#160;</td> <td colspan="7" style="border-bottom: Black 1pt solid; text-align: center">Total Losses</td></tr> <tr style="vertical-align: bottom"> <td style="font-size: 12pt; text-align: justify">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td colspan="15" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2019</td><td style="padding-bottom: 1pt">&#160;</td> <td colspan="15" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2018</td><td style="padding-bottom: 1pt">&#160;</td> <td colspan="7" style="border-bottom: Black 1pt solid; text-align: center">For the Years Ended December 31,</td></tr> <tr style="vertical-align: bottom"> <td style="font-size: 12pt; text-align: justify">&#160;</td><td style="font-size: 12pt; padding-bottom: 1pt">&#160;</td> <td colspan="3" style="font-size: 12pt; text-align: center">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td colspan="11" style="border-bottom: Black 1pt solid; text-align: center">Level</td><td style="font-size: 12pt; padding-bottom: 1pt">&#160;</td> <td colspan="3" style="font-size: 12pt; text-align: center">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td colspan="11" style="border-bottom: Black 1pt solid; text-align: center">Level</td><td style="font-size: 12pt; padding-bottom: 1pt">&#160;</td> <td colspan="7" style="font-size: 12pt; text-align: center">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 40%; font-size: 12pt; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">&#160;</td><td style="width: 1%; padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center">&#160;</td><td style="border-bottom: Black 1pt solid; width: 3%; text-align: center"><font style="font-size: 8pt">Total</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: center">&#160;</td><td style="text-align: center; width: 1%; padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center">&#160;</td><td style="border-bottom: Black 1pt solid; width: 3%; text-align: center">1</td><td style="width: 1%; padding-bottom: 1pt; text-align: center">&#160;</td><td style="text-align: center; width: 1%; padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center">&#160;</td><td style="border-bottom: Black 1pt solid; width: 3%; text-align: center">2</td><td style="width: 1%; padding-bottom: 1pt; text-align: center">&#160;</td><td style="text-align: center; width: 1%; padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center">&#160;</td><td style="border-bottom: Black 1pt solid; width: 3%; text-align: center">3</td><td style="width: 1%; padding-bottom: 1pt; text-align: center">&#160;</td><td style="text-align: center; width: 1%; padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center">&#160;</td><td style="border-bottom: Black 1pt solid; width: 3%; text-align: center"><font style="font-size: 8pt">Total</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: center">&#160;</td><td style="text-align: center; width: 1%; padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center">&#160;</td><td style="border-bottom: Black 1pt solid; width: 3%; text-align: center">1</td><td style="width: 1%; padding-bottom: 1pt; text-align: center">&#160;</td><td style="text-align: center; width: 1%; padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center">&#160;</td><td style="border-bottom: Black 1pt solid; width: 3%; text-align: center">2</td><td style="width: 1%; padding-bottom: 1pt; text-align: center">&#160;</td><td style="text-align: center; width: 1%; padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center">&#160;</td><td style="border-bottom: Black 1pt solid; width: 3%; text-align: center">3</td><td style="width: 1%; padding-bottom: 1pt; text-align: center">&#160;</td><td style="text-align: center; width: 1%; padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center">&#160;</td><td style="border-bottom: Black 1pt solid; width: 3%; text-align: center">2019</td><td style="width: 1%; padding-bottom: 1pt; text-align: center">&#160;</td><td style="text-align: center; width: 1%; padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center">&#160;</td><td style="border-bottom: Black 1pt solid; width: 3%; text-align: center">2018</td><td style="width: 1%; padding-bottom: 1pt; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Assets held for sale</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">25,880,700</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">25,880,700</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">5,800,000</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">5,800,000</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">25,656,100</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">837,500</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr> </table> 1545884 121000 0 75200 0 0 1076900 948300 0 -863300 0 1884600 -7115300 1542500 3427100 8657800 <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><i>(a)&#160;The Company and Basis of Presentation</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">AeroCentury Corp. (&#8220;AeroCentury&#8221;) is a Delaware corporation incorporated in 1997. AeroCentury together with its consolidated subsidiaries is referred to as the &#8220;Company.&#8221;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2016, AeroCentury formed two wholly-owned subsidiaries, ACY 19002 Limited (&#8220;ACY 19002&#8221;) and ACY 19003 Limited (&#8220;ACY 19003&#8221;) for the purpose of acquiring aircraft using a combination of cash and third-party financing (&#8220;UK LLC SPE Financing&#8221; or &#8220;special-purpose financing&#8221;) separate from AeroCentury&#8217;s credit facility (the &#8220;MUFG Credit Facility&#8221;). The UK LLC SPE Financing was repaid in full in February 2019 as part of a refinancing involving new non-recourse term loans totaling approximately $44.3 million (&#8220;Nord Term Loans&#8221;) made to ACY 19002, ACY 19003, and two other newly formed special-purpose subsidiaries of AeroCentury. See Note 6(b) for more information about the Nord Term Loans.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 1, 2018, AeroCentury acquired JetFleet Holding Corp. (&#8220;JHC&#8221;) in a reverse triangular merger (&#8220;Merger&#8221;) for consideration of approximately $2.9 million in cash and 129,217 shares of common stock of AeroCentury, as determined pursuant to an Agreement and Plan of Merger (the &#8220;Merger Agreement&#8221;) entered into by AeroCentury, JHC and certain other parties in October 2017. JHC is the parent company of JetFleet Management Corp. (&#8220;JMC&#8221;), which is an integrated aircraft management, marketing and financing business and the manager of the Company&#8217;s assets. Upon completion of the Merger, JHC became a wholly-owned subsidiary of the Company, and as a result, JHC's results are included in the Company's consolidated financial statements beginning on October 1, 2018.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In November 2018, AeroCentury formed two wholly-owned subsidiaries, ACY SN 15129 LLC (&#8220;ACY 15129&#8221;) and ACY E-175 LLC (&#8220;ACY E-175&#8221;), for the purpose of refinancing four of the Company&#8217;s aircraft using the Nord Term Loans. Because the Nord Term Loans did not close until February 2019, the subject aircraft remained as collateral under the MUFG Credit Facility as of December 31, 2018, and ACY 15129 and ACY E-175 had no activity in 2018.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Financial information for AeroCentury and its consolidated subsidiaries is presented on a consolidated basis in accordance with accounting principles generally accepted in the United States of America (&#8220;GAAP&#8221;) based upon the continuation of the business as a going concern. All intercompany balances and transactions have been eliminated in consolidation.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>(b)&#160;Going Concern</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As discussed in Note 6, the Company was in default under its MUFG Credit Facility as of December 31, 2019. The MUFG Credit Facility lenders (&#8220;Credit Facility Lenders&#8221;) have the right to exercise any and all remedies for default under the MUFG Credit Facility agreement. Such remedies include, but are not limited to, declaring the entire indebtedness immediately due and payable and, if the Company were unable to repay such accelerated indebtedness (including its obligation in connection with the termination of two interest rate swaps entered into in connection with the MUFG Credit Facility (the &#8220;MUFG Swaps&#8221;), foreclosing upon the assets of the Company that secure the MUFG Indebtedness, which consist of all of the Company&#8217;s assets except for certain assets held in the Company&#8217;s single asset special-purpose financing subsidiaries. In addition, as discussed in Note 15, the coronavirus pandemic has led to significant cash flow issues for airlines, including some of the Company&#8217;s customers, and some airlines may be unable to timely meet their obligations under their lease obligations with the Company unless government financial support is received, of which there can be no assurance. Any significant nonpayment or late payment of lease payments by a significant lessee or combination of lessees could in turn impose limits on the Company&#8217;s ability to fund its ongoing operations as well as cause new defaults under the Company&#8217;s debt obligations, which in turn could lead to an immediate acceleration of debt and foreclosure upon the Company&#8217;s assets.&#160; As a result of these factors, there is substantial doubt regarding the Company&#8217;s ability to continue as a going concern.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is currently in negotiations with the Credit Facility Lenders to convert the MUFG Credit Facility into a term loan facility (as converted, the The Company is currently in negotiations with the Credit Facility Lenders to convert the MUFG Credit Facility into a term loan facility (as converted, the &#8220;MUFG Term Loan&#8221; and, collectively with the MUFG Credit Facility, &#8220;MUFG Indebtedness&#8221;). The Company has engaged an investment banking advisor to assist in obtaining additional debt or equity financing (the &#8220;Recapitalization Plan&#8221;) which, if successful, would be used to repay the MUFG Indebtedness.&#160; However, there is no assurance that this will occur.&#160; This is further exacerbated by the significance of the COVID-19 uncertainties discussed in Note 15.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The consolidated financial statements presented in this Annual Report on Form 10-K have been prepared on a going concern basis and do not include any adjustments that might arise as a result of uncertainties about the Company&#8217;s ability to continue as a going concern.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><i>(c)&#160;Use of Estimates</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&#8217;s consolidated financial statements have been prepared in accordance with GAAP. The preparation of consolidated 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 consolidated 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.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The most significant estimates with regard to these consolidated financial statements are the residual values and useful lives of the Company&#8217;s long-lived assets, the amount and timing of future cash flows associated with each asset that are used to evaluate whether assets are impaired, accrued maintenance costs, accounting for income taxes, the assumptions used to value the Company&#8217;s derivative instruments, the valuation of the right of use asset and related lease liability associated with the Company&#8217;s office, and the amounts recorded as allowances for doubtful accounts.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>(d)&#160;Comprehensive Income/(Loss)</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company reflects changes in the fair value of its interest rate swap derivatives that are designated as hedges in other comprehensive income/(loss). Such amounts are reclassified into earnings in the periods in which the hedged transaction occurs or when it is probable that the hedged transactions will no longer occur, and are included in interest expense.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>(e)&#160;Cash, Cash Equivalents and Restricted Cash</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers highly liquid investments readily convertible into known amounts of cash, with original maturities of 90 days or less from the date of acquisition, as cash equivalents.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&#8217;s restricted cash is held in an account with the agent for the Company&#8217;s MUFG Credit Facility and disbursements from the account are subject to the control and discretion of the agent for payment of principal on the MUFG Credit Facility as well as for the Company&#8217;s operating expenses.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>(f)&#160;Securities</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At December 31, 2018, the Company owned 121 shares of non-voting preferred stock in a non-public company. The stock, which had a cumulative preferred annual dividend of 10% and a liquidation value of $1,000 per share, was sold during 2019.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>(g)&#160;Lease Accounting, Favorable Lease Acquired and Lease Right of Use Asset</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In February 2016, the Financial Accounting Standards Board (&#34;FASB&#34;) issued Topic 842 - <i>Leases</i> in the Accounting Standards Codification (&#34;ASC&#34;). Topic 842 substantially modifies lessee accounting for leases, requiring that lessees recognize lease assets and liabilities for leases extending beyond one year. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The Company adopted Topic 842 on January 1, 2019, electing to apply its provisions on the date of adoption and to record the cumulative effect as an adjustment to retained earnings. Lessor accounting under Topic 842 is similar to the prior accounting standard and the Company has elected to apply practical expedients under which the Company will not have to reevaluate whether a contract is a lease, the classification of its existing leases or its capitalized initial direct costs. In addition, the Company, as lessor, has elected the practical expedient to combine lease and non-lease components as one combined component for its leased aircraft for purposes of determining whether that combined component should be accounted for under Topic 606, which establishes rules that affect the amount and timing of revenue recognition for contracts with customers, or Topic 842.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The new standard requires a lessor to classify leases as sales-type, finance, or operating. A lease is treated as sales-type if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a finance lease. If the lessor does not convey risks and rewards or control, an operating lease results. As a result of application of the practical expedients, the Company was not required to alter the classification or carrying value of its leased or finance lease assets.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In connection with the Company&#8217;s acquisition of JHC, as discussed in Note 10, the Company recognized that the lease of its office facilities had rents that were substantially below the market for such office space. Consequently, the Company recorded $925,000 as the value of below-market rents at the October 1, 2018 date of the JHC acquisition, and amortized such amount on a level basis over the remaining term of the office lease, including two one-year bargain renewal options. The Company recorded $61,700 of amortization in 2018.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Lessee reporting was changed by the new standard, requiring that the balance sheet reflect a liability for most operating lease obligations as well as a &#8220;right of use&#8221; asset. As such, in January 2019, the Company was required to record a lease obligation of approximately $610,000 in connection with the lease of its headquarters office, and to increase the capitalized leasehold interest / right of use asset by $610,000, as discussed in Note 8. There was no effect on retained earnings recorded as a result of adoption of the standard. The Company elected the lessee practical expedient to combine the lease and non-lease components.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><i>(h)&#160;Aircraft Capitalization and Depreciation</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&#8217;s interests in aircraft and aircraft engines are recorded at cost, which includes acquisition costs. Since inception, the Company has typically purchased only used aircraft and aircraft engines. It is the Company&#8217;s policy to hold aircraft for approximately twelve years unless market conditions dictate otherwise. Therefore, depreciation of aircraft is initially computed using the straight-line method over the anticipated holding period to an estimated residual value based on appraisal. For an aircraft engine held for lease as a spare, the Company estimates the length of time that it will hold the aircraft engine based upon estimated usage, repair costs and other factors, and depreciates it to the appraised residual value over such period using the straight-line method.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company periodically reviews plans for lease or sale of its aircraft and aircraft engines and changes, as appropriate, the remaining expected holding period for such assets. Estimated residual values are reviewed and adjusted periodically, based upon updated estimates obtained from an independent appraiser. Decreases in the fair value of aircraft could affect not only the current value, discussed below, but also the estimated residual value.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Assets that are held for sale are not subject to depreciation and are separately classified on the balance sheet. Such assets are carried at the lower of their carrying value or estimated fair values, less costs to sell.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><i>(i)&#160;Property, Equipment and Furnishings</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&#8217;s interests in equipment are recorded at cost and depreciated using the straight-line method over five years. The Company&#8217;s leasehold improvements are recorded at cost and amortized using the straight-line method over the shorter of the lease term or the estimated useful lives of the respective assets.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><i>(j)&#160;Impairment of Long-lived Assets</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company reviews assets for impairment when there has been an event or a change in circumstances indicating that the carrying amount of a long-lived asset may not be recoverable. In addition, the Company routinely reviews all long-lived assets for impairment semi-annually. Recoverability of an asset is measured by comparison of its carrying amount to the future estimated undiscounted cash flows (without interest charges) that the asset is expected to generate. Estimates are based on currently available market data and independent appraisals and are subject to fluctuation from time to time. If these estimated future cash flows are less than the carrying value of an asset at the time of evaluation, any impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value.&#160; Fair value is determined by reference to independent appraisals and other factors considered relevant by management. Significant management judgment is required in the forecasting of future operating results that are used in the preparation of estimated future undiscounted cash flows and, if different conditions prevail in the future, material write-downs may occur.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As discussed in Note 9, the Company recorded impairment losses totaling $31.0 million and $3.0 million in 2019 and 2018, respectively, as a result of the Company&#8217;s determination that the carrying values for certain aircraft were not recoverable.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The 2019 impairment losses consisted of (i) $24.0 million resulting from appraised values for four aircraft that are held for sale, assuming sale in a reasonably short time (&#8220;Orderly Liquidation Value&#8221;) and (ii) $7.0 million resulting from estimated or actual sales proceeds for five assets held for sale, three of which were sold during 2019.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The 2018 impairment losses consisted of (i) $2.7 million resulting from Orderly Liquidation Values for four aircraft held for sale and (ii) $0.3 million resulting from writing a fifth aircraft down to its appraised value.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>(k)&#160;Deferred Financing Costs and Commitment Fees</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Costs incurred in connection with debt financing are deferred and amortized over the term of the debt using the effective interest method or, in certain instances where the differences are not material, using the straight-line method. Costs incurred in connection with the MUFG Credit Facility are deferred and amortized using the straight-line method. Commitment fees for unused funds are expensed as incurred.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>(l)&#160;Security Deposits</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&#8217;s leases are typically structured so that if any event of default occurs under a lease, the Company may apply all or a portion of the lessee&#8217;s security deposit to cure such default. If such application of the security deposit is made, the lessee typically is required to replenish and maintain the full amount of the deposit during the remaining lease term. All of the security deposits received by the Company are refundable to the lessee at the end of the lease upon satisfaction of all lease terms.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><i>(m)&#160;Taxes</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As part of the process of preparing the Company&#8217;s consolidated financial statements, management estimates income taxes in each of the jurisdictions in which the Company operates. This process involves estimating the Company&#8217;s current tax exposure under the most recent tax laws and assessing temporary differences resulting from differing treatment of items for tax and GAAP purposes. These differences result in deferred tax assets and liabilities, which are included in the balance sheet. Management also assesses the likelihood that the Company&#8217;s deferred tax assets will be recovered from future taxable income, and, to the extent management believes it is more likely than not that some portion or all of the deferred tax assets will not be realized, the Company establishes a valuation allowance. To the extent the Company establishes a valuation allowance or changes the allowance in a period, the Company reflects the corresponding increase or decrease within the tax provision in the statement of operations. Significant management judgment is required in determining the Company&#8217;s future taxable income for purposes of assessing the Company&#8217;s ability to realize any benefit from its deferred taxes. After considering the Company&#8217;s significant amounts of net deferred tax liabilities which are future reversing taxable temporary differences, the Company has determined that no valuation allowance is required for its deferred tax assets.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accrues non-income based sales, use, value added and franchise taxes as other tax expense in the statement of operations.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>(n)&#160;Revenue Recognition, Accounts Receivable and Allowance for Doubtful Accounts</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenue from leasing of aircraft assets pursuant to operating leases is recognized on a straight-line basis over the terms of the applicable lease agreements. Deferred payments are recorded as accrued rent when the cash rent received is lower than the straight-line revenue recognized. Such receivables decrease over the term of the applicable leases. Interest income is recognized on finance leases based on the interest rate implicit in the lease and the outstanding balance of the lease receivable.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Maintenance reserves retained by the Company at lease-end are recognized as maintenance reserves revenue.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In instances where collectability is not reasonably assured, the Company recognizes revenue as cash payments are received. The Company estimates and charges to income a provision for bad debts based on its experience with each specific customer, the amount and length of payment arrearages, and its analysis of the lessee&#8217;s overall financial condition. If the financial condition of any of the Company&#8217;s customers deteriorates, it could result in actual losses exceeding any estimated allowances.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company had an allowance for doubtful accounts of $2,908,600 and $0 at December 31, 2019 and 2018, respectively.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><i>(o)&#160;Comprehensive Income</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company reflects changes in the fair value of its interest rate swap derivatives that are designated as hedges in other comprehensive income/(loss). Such amounts are reclassified into earnings in the periods in which the hedged transaction occurs, and are included in interest expense.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><i>(p)&#160;Finance Leases</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">As of December 31, 2019, the Company had three aircraft subject to sales-type finance leases and three aircraft subject to direct financing leases. All six leases contain lessee bargain purchase options at prices substantially below the subject asset&#8217;s estimated residual value at the exercise date for the option. Consequently, the Company has classified each of these six leases as finance leases for financial accounting purposes. For such finance leases, the Company reports 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, as a finance lease receivable on its balance sheet, and accrues interest on the balance of the finance lease receivable based on the interest rate inherent in the applicable lease over the term of the lease. For each of the three sales-type finance leases, the Company recognized as a gain or loss the amount equal to (i) the net investment in the sales-type finance lease plus any initial direct costs and lease incentives less (ii) the net book value of the subject aircraft at inception of the applicable lease.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognized interest earned on finance leases in the amount of $852,600 and $1,251,000 in 2019 and 2018, respectively. As a result of payment delinquencies by two customers that lease three of the Company&#8217;s aircraft subject to finance leases, the Company recorded a bad debt allowance of $2,957,800 during 2019.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><font style="font-size: 8pt"><i>(q)&#160;Maintenance Reserves and Accrued Maintenance Costs</i></font></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Maintenance costs under the Company&#8217;s triple net leases are generally the responsibility of the lessees. Some of the Company&#8217;s leases require payment of maintenance reserves, which are based upon lessee-reported usage and billed monthly, and are intended to accumulate and be applied by the Company toward reimbursement of most or all of the cost of the lessees&#8217; performance of certain maintenance obligations under the leases. Such reimbursements reduce the associated maintenance reserve liability.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Maintenance reserves are characterized as either refundable or non-refundable depending on their disposition at lease-end. The Company retains non-refundable maintenance reserves at lease-end, even if the lessee has met all of its obligations under the lease, including any return conditions applicable to the leased asset, while refundable reserves are returned to the lessee under such circumstances. Any reserves retained by the Company at lease-end are recorded as revenue at that time.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accrued maintenance costs include (i) maintenance for work performed for off-lease aircraft, which is not related to the release of maintenance reserves received from lessees and which is expensed as incurred, and (ii) lessor maintenance obligations assumed and recognized as a liability upon acquisition of aircraft subject to a lease with such provisions.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><i>(r)&#160;Interest Rate Hedging</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the first quarter of 2019, the Company entered into certain derivative instruments to mitigate its exposure to variable interest rates under the Term Loans debt and a portion of the MUFG Credit Facility debt. Hedge accounting is applied to such a transaction only if specific criteria have been met, the transaction is deemed to be &#8220;highly effective&#8221; and the transaction has been designated as a hedge at its inception. Under hedge accounting treatment, generally, the effects of derivative transactions are recorded in earnings for the period in which the hedge transaction affects earnings. A change in value of a hedging instrument is reported as a component of other comprehensive income/(loss) and is reclassified into earnings in the period in which the transaction being hedged affects earnings.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">If at any time after designation of a cash flow hedge, such as those entered into by the Company, it is no longer probable that the forecasted cash flows will occur, hedge accounting is no longer permitted and a hedge is &#8220;dedesignated.&#8221; After dedesignation, if it is still considered reasonably possible that the forecasted cash flows will occur, the amount previously recognized in other comprehensive income/(loss) will continue to be reversed as the forecasted transactions affect earnings. However, if after dedesignation it is probable that the forecasted transactions will not occur, amounts deferred in accumulated other comprehensive income/(loss) will be recognized in earnings immediately.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As noted in Note 7, in October 2019 the Company became aware that, as a result of certain defaults under its MUFG Credit Facility, certain of the forecasted transactions related to its MUFG Credit Facility interest rate swaps are no longer probable of occurring and, hence, those swaps were dedesignated from hedge accounting at that time. As discussed in Note 15, the two swaps related to the MUFG Credit Facility were terminated in March 2020 and the Company incurred a $3.1 million obligation in connection with such termination.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><i>(s)&#160;Recent Accounting Pronouncements</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><u>ASU 2016-13</u></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The FASB issued ASU 2016-13, <i>Financial Instruments &#8211; Credit Losses (Topic 326)</i>, in June of 2016 (&#8220;ASU 2016-13&#8221;)<i>.</i> ASU 2016-13 provides that financial assets measured at amortized cost are to be presented as a net amount, reflecting a reduction for a valuation allowance to present the amount expected to be collected (the &#8220;current expected credit loss&#8221; model of reporting). As such, expected credit losses will be reflected in the carrying value of assets and losses will be recognized before they become probable, as is required under the Company&#8217;s present accounting practice. In the case of assets held as available for sale, the amount of the valuation allowance will be limited to an amount that reflects the marketable value of the debt instrument. This amendment to GAAP is effective&#160; in the first quarter of 2023 for calendar-year SEC filers that are smaller reporting companies as of the one-time determination date. Early adoption is permitted beginning in 2019. The Company plans to adopt the new guidance on January 1, 2023, and has not determined the impact of this adoption on its consolidated financial statements.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>ASU 2019-12</u></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In December 2019, the FASB issued ASU 2019-12, <i>Income Taxes (Topic 740),</i> a new accounting standard update to simplify the accounting for income taxes. The new guidance removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. It also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. This guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and related disclosures.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As discussed in Note 1, the Company adopted Topic 842 on January 1, 2019, and elected to use certain practical expedients that resulted in continuing the classification of capitalized indirect cost associated with its operating and finance leases. As such, there was no adjustment to its accounts related to the carrying value of its sales-type and finance leases, assets held for lease or capitalized initial direct costs, and its leases continue to be accounted for in the same manner as they had been before adoption of the new accounting standard.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&#8217;s leases are normally &#8220;triple net leases&#8221; under which the lessee is obligated to bear all costs, including tax, maintenance and insurance, on the leased assets during the term of the lease. In most cases, the lessee is obligated to provide a security deposit or letter of credit to secure its performance obligations under the lease, and in some cases, is required to pay maintenance reserves based on utilization of the aircraft, which reserves are available for qualified maintenance costs during the lease term and may or may not be refundable at the end of the lease. Typically, the leases also contain minimum return conditions, as well as an economic adjustment payable by the lessee (and in some instances by the lessor) for amounts by which the various aircraft or engine components are worse or better than a targeted condition set forth in the lease. Some leases contain renewal or purchase options, although the Company&#8217;s sales-type and finance leases all contain a bargain purchase option at lease end which the Company expects the lessees to exercise or require that the lessee purchase the aircraft at lease-end for a specified price.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Because all of the Company&#8217;s leases transfer use and possession of the asset to the lessee and contain no other substantial undertakings by the Company, the Company has concluded that all of its lease contracts qualify for lease accounting under Topic 842. Certain lessee payments of what would otherwise be lessor costs (such as insurance and property taxes) are excluded from both revenue and expense.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company evaluates the expected return on its leased assets by considering both the rents receivable over the lease term, any expected additional consideration at lease end, and the residual value of the asset at the end of the lease. In some cases, the Company depreciates the asset to the expected residual value because it expects to sell the asset at lease end; in other cases, it may expect to re-lease the asset to the same or another lessee and the depreciation term and related residual value will differ from the initial lease term and initial residual value. Residual value is estimated by considering future estimates provided by independent appraisers, although it may be adjusted by the Company based on expected return conditions or location, specific lessee considerations, or other market information.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Two of the Company&#8217;s operating lease assets are subject to manufacturer residual value guarantees at the end of their lease terms in the fourth quarter of 2020 and totaling approximately $20 million. Three additional aircraft are subject to residual value guarantees, but the Company expects to retain the aircraft after the date of such guarantees and re-lease them to the current or other lessees. The Company considers the best market for managing and/or selling its assets at the end of its leases, although it does not expect to retain ownership of the assets under finance leases given the lessees&#8217; bargain purchase options or required purchase.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><i>(a)&#160;Assets Held for Lease</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At December 31, 2019 and December 31, 2018, the Company&#8217;s aircraft and aircraft engines held for lease consisted of the following:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">December 31, 2019</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">December 31, 2018</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td> <p style="border-bottom: black 0.75pt solid; font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">Type</p></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">Number</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">Owned</p></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">% of net book value</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">Number</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">owned</p></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">% of net book value</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 50%"><font style="font-size: 8pt">Regional jet aircraft</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">9</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">80</font></td> <td style="width: 2%"><font style="font-size: 8pt">%</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">13</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">81</font></td> <td style="width: 2%"><font style="font-size: 8pt">%</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Turboprop aircraft</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">2</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">20</font></td> <td><font style="font-size: 8pt">%</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">4</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">18</font></td> <td><font style="font-size: 8pt">%</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Engines</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td><font style="font-size: 8pt">%</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">1</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">1</font></td> <td><font style="font-size: 8pt">%</font></td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company did not purchase any aircraft held for lease during 2019. During the third quarter, the Company terminated the leases for four of its aircraft held for lease as a result of significant past due payments from the customer and repossessed the aircraft. The customer subsequently ceased operations and declared bankruptcy. The Company applied the security deposits and a portion of collected maintenance reserves it held to the past due rent due from the customer and recorded $16,968,400 of maintenance reserves revenue for the balance of the collected maintenance reserves. The Company also recorded impairment losses totaling $28,424,000 for the four aircraft based on appraised values for three of the aircraft and expected sales proceeds for the fourth aircraft, and reclassified the four aircraft to held for sale. As a result of the lease terminations, the appraised values were based on the maintenance-adjusted condition of the aircraft, rather than the previous basis, which reflected future cash flows under the leases. One of the aircraft was sold during the fourth quarter of 2019.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">None of the Company&#8217;s aircraft held for lease were off lease at December 31, 2019. As discussed below, the Company has seven off-lease aircraft that are held for sale: (i) two turboprop aircraft that were reclassified to held for sale in the third quarter of 2018, one of which is subject to a short-term lease, (ii) three regional jet aircraft that were reclassified to held for sale during 2019 and (iii) two turboprop aircraft that are being sold in parts.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">As of December 31, 2019, minimum future lease revenue payments receivable under non-cancelable operating leases were as follows:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Years ending December 31</font></td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 88%; text-align: justify"><font style="font-size: 8pt">2020</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">17,650,900</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">2021</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">10,392,000</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">2022</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">8,639,600</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">2023</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">8,639,600</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">2024</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">6,826,100</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Thereafter</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,683,300</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">53,831,500</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The remaining weighted average lease term of the Company&#8217;s assets under operating leases was 41 months and 58 months at December 31, 2019 and December 31, 2018, respectively.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><i>(b)&#160;Sales-Type and Finance Leases</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result of a lease amendment containing a purchase option for an older aircraft at lease end during the second quarter of 2019, the Company reclassified an asset that was previously held for lease to a sales-type finance lease receivable and recorded a loss of $170,600. The aircraft was sold to the lessee at lease expiration during the fourth quarter.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During 2019, the Company also amended the sales-type leases for two aircraft to accommodate the lessee&#8217;s request to transfer a portion of future lease payment obligations from one of the leases to the other, as well as to assign one of the leases and related aircraft to a different lessee. Payments for both leases were also amended to reflect a higher implicit interest rate, such that the fair value of the leases after amendment equaled the carrying value of the leases before the amendment. No gain or loss was recognized as a result of these lease modifications. As a result of payment delinquencies by these two customers, the Company recorded a bad debt allowance of $2,907,800. As discussed in Note 15, the leases for these two aircraft were further amended in January 2020 and a third aircraft leased to one of the lessees was sold to the lessee.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At December 31, 2019 and December 31, 2018, the net investment included in sales-type finance leases and direct financing leases receivable were as follows:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">December 31,</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">2019</p></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">December 31,</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">2018</p></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 76%; text-align: justify"><font style="font-size: 8pt">Gross minimum lease payments receivable</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">9,096,400</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">17,107,100</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Less unearned interest</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(286,600</font></td> <td><font style="font-size: 8pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(1,856,200</font></td> <td><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Difference between minimum lease payments receivable and collateral value of leases</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(7,700</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Finance leases receivable</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">8,802,100</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">15,250,900</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">As of December 31, 2019, minimum future payments receivable under finance leases were as follows:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Years ending December 31</font></td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 88%; text-align: justify"><font style="font-size: 8pt">2020</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">3,817,200</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">2021</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">2,608,200</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">2022</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">2,114,000</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">2023</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">557,000</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">9,096,400</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The remaining weighted average lease term of the Company&#8217;s assets under sales-type and finance leases was 20 months and 32 months at December 31, 2019 and December 31, 2018, respectively.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As discussed in Note 15, the customer for three of the Company&#8217;s aircraft that are subject to direct financing leases purchased the aircraft in March 2020.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following is a roll forward of the Company&#8217;s allowance for doubtful accounts from December 31, 2018 to December 31, 2019:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="width: 90%"><font style="font-size: 8pt">Balance, December 31, 2018</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 7%; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Additions charged to expense</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">2,908,600</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Balance, December 31, 2019</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">2,908,600</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As discussed in Note 2(a), during 2019, the Company reclassified four regional jet aircraft that had been held for lease to held for sale after repossession from a customer. One of the aircraft was sold during 2019.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Assets held for sale at December 31, 2019 included three of the regional jet aircraft that were repossessed and two turboprop aircraft, one of which is subject to a short-term operating lease, and airframe parts from two turboprop aircraft. During 2019, the Company recorded an impairment loss of $1,000,000 related to the airframe parts from one of the aircraft, based on estimated sales proceeds.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During 2019, the Company received $820,800 in cash and accrued $117,400 in receivables for parts sales. These amounts were accounted for as follows: $133,100 reduced accounts receivable for parts sales accrued in the fourth quarter of 2018; $731,700 reduced the carrying value of the parts; and $73,400 was recorded as gains in excess of the carrying value of the parts. 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.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company operates in one business segment, the leasing of regional aircraft to foreign and domestic regional airlines, and therefore does not present separate segment information for lines of business.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Approximately 30% and 28% of the Company&#8217;s operating lease revenue was derived from lessees domiciled in the United States during 2019 and 2018, respectively. All revenues relating to aircraft leased and operated internationally, with the exception of rent payable in Euros for two of the Company&#8217;s aircraft, are denominated and payable in U.S. dollars.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">The tables below set forth geographic information about the Company&#8217;s operating lease revenue and net book value for leased aircraft and aircraft equipment, grouped by domicile of the lessee:<b>&#160;</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">For the Years Ended December 31,</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt"><b>Operating Lease Revenue</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2019</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2018</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%; text-align: justify"><font style="font-size: 8pt">Europe and United Kingdom</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">15,174,900</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">16,258,800</font></td> <td style="width: 2%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">North America</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">10,119,100</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">10,119,100</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Asia</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">315,000</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,259,600</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">25,609,000</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">27,637,500</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">December 31,</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt"><b>Net Book Value of Aircraft and Aircraft Engines Held for Lease</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2019</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2018</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%; text-align: justify"><font style="font-size: 8pt">Europe and United Kingdom</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">44,569,000</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">110,069,000</font></td> <td style="width: 2%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">North America</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">63,799,600</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">68,485,400</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Asia</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">5,465,500</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">108,368,600</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">184,019,900</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">The table below sets forth geographic information about the Company&#8217;s finance lease revenue, grouped by domicile of the lessee:<b>&#160;</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">For the Years Ended December 31,</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt"><b>Finance Lease Revenue</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2019</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2018</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%; text-align: justify"><font style="font-size: 8pt">Africa</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">487,000</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">832,800</font></td> <td style="width: 2%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Europe and United Kingdom</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">365,600</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">418,200</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">852,600</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">1,251,000</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the year ended December 31, 2019, the Company had seven significant customers, five of which individually accounted for 23%, 23%, 16%, 14% and 10%, respectively, of operating lease revenue and two of which accounted for 57% and 38%, respectively, of finance lease revenue. For the year ended December 31, 2018, the Company had five significant customers, four of which individually accounted for 30%, 21%, 15% and 13%, respectively, of operating lease revenue and one of which accounted for 67% of finance lease revenue.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At December 31, 2019, the Company had receivables from one customer totaling $828,000 related to rents for 2019, representing 74% of the Company&#8217;s total accounts receivable, all of which was for accrued rent that is due in March 2020. At December 31, 2018, the Company had receivables from three customers totaling $3,413,500, representing 87% of the Company&#8217;s total accounts receivable.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At December 31, 2019 and December 31, 2018, the Company&#8217;s notes payable and accrued interest consisted of the following:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">December 31,</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">2019</p></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">December 31,</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">2018</p></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">MUFG Credit Facility:</font></td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 76%; text-align: justify"><font style="font-size: 8pt">&#160;&#160;&#160;Principal</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">84,084,100</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">122,400,000</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;&#160;&#160;Unamortized debt issuance costs</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(3,084,200</font></td> <td><font style="font-size: 8pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(674,300</font></td> <td><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;&#160;&#160;Accrued interest</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">376,200</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">139,300</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Special-purpose financing:</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;&#160;&#160;Principal:</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;&#160;&#160;&#160;&#160;&#160;UK SPE Financing</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">9,211,200</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;&#160;&#160;&#160;&#160;&#160;Nord Term Loans</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">30,914,500</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;&#160;&#160;Unamortized debt issuance costs</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(741,500</font></td> <td><font style="font-size: 8pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;&#160;&#160;Accrued interest</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">89,300</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">16,000</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">111,638,400</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">131,092,200</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><i>(a)&#160;MUFG Credit Facility</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The unused amount of the MUFG Credit Facility was $915,900 and $47,600,000 as of December 31, 2019 and December 31, 2018, respectively. The weighted average interest rate on the MUFG Credit Facility was 10.23% and 5.92% at December 31, 2019 and December 31, 2018 respectively.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition to payment obligations (including principal and interest payments on outstanding borrowings and commitment fees based on the amount of any unused portion of the MUFG Credit Facility), the MUFG Credit Facility agreement contains financial covenants with which the Company must comply, including, but not limited to, positive earnings requirements, minimum net worth standards and certain ratios, such as debt to equity ratios.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2018, the Company was not in compliance with the interest coverage, debt service coverage, no-net-loss and revenue concentration covenants under the MUFG Credit Facility agreement. The noncompliance resulted primarily from the Company recording aircraft impairment charges and losses on sales of aircraft totaling $3.4 million during 2018. The amendments included in the MUFG Credit Facility agreement in February 2019 discussed below cured the December 31, 2018 noncompliance and revised the compliance requirements through the extended maturity date of the MUFG Credit Facility.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In February 2019, the MUFG Credit Facility, which was to expire on May 31, 2019, was extended to February 19, 2023, and was amended in certain other respects. Also, four aircraft that previously served as collateral under the MUFG Credit Facility and two aircraft that previously served as collateral under special-purpose subsidiary financings were refinanced in February 2019 using non-recourse term loans (the Nord Term Loans) with an aggregate principal of $44.3 million.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the third quarter of 2019 as a result of significant past due payments from the customer, the Company terminated the leases for, and repossessed, four of its aircraft held for lease The customer, a European regional airline and one of the Company&#8217;s largest customers based on operating lease revenue, subsequently ceased operations and declared bankruptcy. The Company applied the security deposits and a portion of collected maintenance reserves it held against past due rent due from the customer. The remaining balance of collected maintenance reserves equal to $17.0 million was recognized as maintenance reserves revenue. The Company also recorded impairment losses totaling $22.3 million for the four aircraft, one of which was sold during the fourth quarter, based on appraised values for three of the aircraft and expected sales proceeds for the fourth. As a result of the lease terminations, the three aircraft were newly appraised based on the maintenance-adjusted condition of the aircraft, rather than the basis previously used for their appraisal, which considered future cash flows under the leases.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the third quarter of 2019, the Company also recorded impairment losses of $15,000 on another of its aircraft held for sale and $1.0 million related to airframe parts that are held for sale, both of which were based on estimated sales proceeds. As a result of payment delinquencies by two other customers that lease three of the Company&#8217;s aircraft subject to finance leases, the Company also recorded a bad debt allowance of $2.9 million during 2019. As a result of the aforementioned impairment losses and bad debt allowance, as of September 30, 2019, the Company was in default of its borrowing base covenant under the MUFG Credit Facility (the &#8220;Borrowing Base Default&#8221;), due to the outstanding balance under the MUFG Credit Facility exceeding the required minimum collateral value coverage set forth in the MUFG Credit Facility (a &#8220;Borrowing Base Deficit&#8221;) by approximately $9.4 million. Subsequent updated appraisal values for assets included in the borrowing base of the MUFG Credit Facility resulted in an increase in the Borrowing Base Deficit to $29.8 million at December 31, 2019. At that time, the Company reclassified two aircraft that were repossessed during the third quarter from held for lease to held for sale. The Company also reduced its bad debt allowance during the fourth quarter based on payments received in January.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company was not in compliance with various covenants contained in the MUFG Credit Facility agreement, including those related to interest coverage and debt service coverage ratios and a no-net-loss requirement under the MUFG Credit Facility, at September 30, 2019 and at December 31, 2019.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 15, 2019, the agent bank for the Credit Facility Lenders delivered a Reservation of Rights Letter to the Company which contained notice of the Borrowing Base Default and a demand for repayment of the amount of the Borrowing Base Deficit by January 13, 2020, and also contained formal notices of default under the MUFG Credit Facility relating to the alleged material adverse effects on the Company&#8217;s business as a result of the early termination of leases for three aircraft and potential financial covenant noncompliance based on the Company&#8217;s financial projections provided to the Credit Facility Lenders (the Borrowing Base Default and such other defaults referred to as the &#8220;Specified Defaults&#8221;). The Reservation of Rights Letter also informed the Company that further advances under the MUFG Credit Facility agreement would no longer be permitted due to the existence of such defaults.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In October, November and December 2019, the Company, agent bank and the Credit Facility Lenders entered into a Forbearance Agreement and amendments extending the Forbearance Agreement with respect to the Specified Defaults under the MUFG Credit Facility. The Forbearance Agreement (i) provided that the Credit Facility Lenders temporarily forbear from exercising default remedies under the MUFG Credit Facility agreement for the Specified Defaults, (ii) reduced the maximum availability under the MUFG Credit Facility to $85 million and (iii) extended the cure period for the Borrowing Base Deficit from January 13, 2020 to February 12, 2020. The Forbearance Agreement also allowed the Company to continue to use LIBOR as its benchmark interest rate, but increased the margin on the Company&#8217;s LIBOR-based loans under the MUFG Credit Facility from a maximum of 3.75% to 6.00% and set the margin on the Company&#8217;s prime rate-based loans at 2.75%, as well as added a provision for paid-in-kind interest (&#8220;PIK Interest) of 2.5% to be added to the outstanding balance of the MUFG Credit Facility debt in lieu of a cash payment. The Company paid cash fees of $406,250 in connection with the Forbearance Agreement and amendments, as well as a fee of $832,100, which was added to the outstanding balance of the MUFG Credit Facility debt in lieu of a cash payment. The Forbearance Agreement was in effect until December 30, 2019, after which the Company and the Credit Facility Lenders agreed not to further amend the Forbearance Agreement. On February 12, 2020, the agent bank for the Credit Facility Lenders delivered a Reservation of Rights Letter to the Company which contained notice of the failure to cure the Borrowing Base Default by February 12, 2020.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is currently in negotiations with the Credit Facility Lenders to convert the MUFG Credit Facility into the MUFG Term Loan. Therefore, the MUFG Credit Facility is expected to no longer be a source of acquisition financing. The Company has engaged an investment banking advisor to help (i) formulate a Recapitalization Plan and analyze various strategic financial alternatives to address the Company&#8217;s capital structure, strategic and financing needs, as well as corporate level transactions aimed at achieving maximum value for the Company&#8217;s stockholders; and (ii) locate and negotiate with potential lenders, investors or transaction partners who would play a role in the Company&#8217;s Recapitalization Plan. The Company&#8217;s ability to develop, obtain approval for and achieve its Recapitalization Plan is subject to a variety of factors. If the Company is not able to satisfy the requirements under the Recapitalization Plan, maintain compliance with its MUFG Indebtedness or raise sufficient capital to repay all amounts owed under the MUFG Indebtedness, the Company&#8217;s financial condition and liquidity would be materially adversely affected and its ability to continue operations could be materially jeopardized.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><i>(b)</i>&#160;<i>Nord Term Loans</i><b>&#160;</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 8, 2019, the Company, through four wholly-owned subsidiary limited liability companies (&#8220;LLC Borrowers&#8221;), entered into a term loan agreement with the U.S. branch of a German bank (&#8220;Term Loan Lender&#8221;) that provides for six separate term loans with an aggregate principal amount of $44.3 million. Each of the Nord Term Loans is secured by a first priority security interest in a specific aircraft (&#8220;Term Loan Collateral Aircraft&#8221;) owned by an LLC Borrower, the lease for such aircraft, and a pledge by the Company of its membership interest in each of the LLC Borrowers, pursuant to a Security Agreement (the &#8220;Security Agreement&#8221;) among the LLC Borrowers and a security trustee, and certain pledge agreements. Two of the Term Loan Collateral Aircraft that are owned by the Company&#8217;s two UK special-purpose entities were previously financed using special-purpose financing. The interest rates payable under the Nord Term Loans vary by aircraft, and are based on a fixed margin above either 30-day or 3-month LIBOR. The proceeds of the Nord Term Loans were used to pay down the MUFG Credit Facility and pay off the UK LLC SPE Financing. The maturity of each Nord Term Loan varies by aircraft, with the first Nord Term Loan maturing in October 2020 and the last Nord Term Loan maturing in May 2025. The debt under the Term Loans is expected to be fully amortized by rental payments received by the LLC Borrowers from the lessees of the Term Loan Collateral Aircraft during the terms of their respective leases and remarketing proceeds.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Nord Term Loans include covenants that impose various restrictions and obligations on the LLC Borrowers, including covenants that require the LLC Borrowers to obtain the Term Loan Lender&#8217;s consent before they can take certain specified actions, and certain events of default. If an event of default occurs, subject to certain cure periods for certain events of default, the Term Loan Lender would have the right to terminate its obligations under the Term Loans, declare all or any portion of the amounts then outstanding under the Term Loans to be accelerated and due and payable, and/or exercise any other rights or remedies it may have under applicable law, including foreclosing on the assets that serve as security for the Nord Term Loans. The Company was in compliance with all covenants under the Nord Term Loans at December 31, 2019.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">One of the aircraft that was subject to Nord Term Loan financing was sold during the fourth quarter of 2019 and the related interest rate swap was terminated.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As discussed in Note 15, in March 2020, one of the Company&#8217;s customers, which leases two regional jet aircraft subject to Nord Term Loan financing, did not make its quarterly rent payment which, in turn, resulted in a loan payment default by the Company&#8217;s special-purpose subsidiary that owns the aircraft. The Company is currently discussing remedies with both the customer and Nord.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company was not party to any derivative instruments in 2018.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In the first quarter of 2019, the Company entered into eight fixed pay/receive variable interest rate swaps.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Six of the interest rate swaps were entered into by the LLC Borrowers, one of which terminated in the fourth quarter of 2019 in connection with the sale of the related aircraft, and provided for reduced notional amounts that mirror the amortization under the Nord Term Loans entered into by the LLC Borrowers, effectively converting each of the six Nord Term Loans from a variable to a fixed interest rate, ranging from 5.38% to 6.30%. Each of these six interest rate swaps extended for the duration of the corresponding Term Loan, with maturities from 2020 through 2025.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The other two interest rate swaps, the MUFG Swaps related to the Company&#8217;s MUFG Credit Facility, were entered into by AeroCentury and had notional amounts totaling $50 million and were to extend through the maturity of the MUFG Credit Facility in February 2023. Under the ISDA agreement for these interest rate swaps, defaults under the MUFG Credit Facility give the swap counterparty the right to terminate the interest rate swaps with any breakage costs being the liability of the Company. The counterparty agreed under the Forbearance Agreement and subsequent amendments to refrain from exercising any termination or other remedies as a result of the Company&#8217;s defaults under the MUFG Credit Facility during the forbearance period under the Forbearance Agreement. In March 2020, the Company was notified that the counterparties had terminated the MUFG Swaps.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company entered into the interest rate swaps in order to reduce its exposure to the risk of increased interest rates. With respect to the six interest rate swaps entered into by the LLC Borrowers, the swaps were deemed necessary so that the anticipated cash flows of such entities, which arise entirely from the lease rents for the aircraft owned by such entities, would be sufficient to make the required Term Loan principal and interest payments, thereby preventing default so long as the lessees met their lease rent payment obligations. The two interest rate swaps entered into by AeroCentury were intended to protect against the exposure to interest rate increases on $50 million of the Company&#8217;s MUFG Credit Facility debt.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company estimates the fair value of derivative instruments using a discounted cash flow technique and uses creditworthiness inputs that corroborate observable market data evaluating the Company&#8217;s and counterparties&#8217; risk of non-performance. Valuation of the derivative instruments requires certain assumptions for underlying variables and the use of different assumptions would result in a different valuation. Management believes it has applied assumptions consistently during the period.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company designated seven of its interest rate swaps as cash flow hedges. Changes in the fair value of the hedged swaps are included in other comprehensive income/(loss), which amounts are reclassified into earnings in the period in which the transaction being hedged affects earnings (i.e., with future settlements of the interest rate swaps). One of the interest rate swaps was not eligible under its terms for hedge treatment and was terminated in 2019 when the associated asset was sold and the related debt was paid off. Changes in fair value of non-hedge derivatives are reflected in earnings in the periods in which they occur.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In October 2019, the Company determined that it was no longer probable that forecasted cash flows for its two interest rate swaps with a nominal value of $50 million would occur as scheduled as a result of the Company&#8217;s defaults under the MUFG Credit Facility. Therefore, those swaps were no longer subject to hedge accounting and changes in fair market value thereafter were recognized in earnings as they occurred. As discussed in Note 15, the MUFG Swaps were terminated in the first quarter of 2020 and the amount of accumulated other comprehensive income/(loss) related to such cash flows will be recognized as an expense at such time in the first quarter of 2020.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">The Company has reflected the following amounts in its net loss:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="6" style="text-align: center"><font style="font-size: 8pt">&#160;For the Years Ended December 31,</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2019</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2018</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%; text-align: justify"><font style="font-size: 8pt">Change in value of interest rate swaps</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">255,200</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="width: 2%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Other items</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">147,400</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Included in interest expense</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">402,600</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr> <td colspan="3" style="vertical-align: bottom"><font style="font-size: 8pt">The following amount was included in other comprehensive income/(loss), before tax</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Unrealized loss on derivative instruments</font></td> <td>&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">(1,932,100</font></td> <td><font style="font-size: 8pt">)</font></td> <td>&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Other items</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">186,400</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Change in value of hedged interest rate swaps</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(1,745,700</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Before the termination of the MUFG Swaps discussed in Note 15, approximately $575,000 of the current balance of accumulated other comprehensive income/(loss) was expected to be reclassified in the next twelve months, although certain additional amounts may be recognized in the event the Company determines that some of the forecasted cash flows that are intended to be hedged under the interest rate swaps related to its MUFG Credit Facility are probable of not occurring.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">At December 31, 2019, the fair value of the Company&#8217;s interest rate swaps was as follows:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="width: 88%; text-align: justify"><font style="font-size: 8pt">Designated interest rate hedges fair value</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">(570,900</font></td> <td style="width: 1%"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Other interest rate swaps</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(1,253,600</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Total derivative (liability)</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(1,824,500</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company evaluates the creditworthiness of the counterparties under its hedging agreements. The swap counterparties for the Company&#8217;s interest rate swaps are large financial institutions in the United States that possess an investment grade credit rating. Based on this rating, the Company believes that the counterparties are creditworthy and that their continuing performance under the hedging agreements is probable.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is a lessee under a lease of the office space it occupies in Burlingame, California, which expires in June of 2020, but also provides for two, successive one-year lease extension options for amounts that are substantially below the market rent for the property. The lease provides for monthly rental payments according to a fixed schedule of increasing rent payments. As a result of the below-market extension options, the Company determined that it was reasonably certain that it would extend the lease and has, therefore, included such extended term in its calculation of the right of use asset (&#8220;ROU Asset&#8221;) and lease liability recognized in connection with the lease.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition to a fixed monthly payment schedule, the office lease also includes an obligation for the Company to make future variable payments for certain common areas and building operating and lessor costs, which have been and will be recognized as expense in the periods in which they are incurred. As a direct pass-through of applicable expense, such costs have not been allocated as a component of the lease.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The ROU Asset includes the amortized value of both the amount of liability recognized at January 1, 2019 upon adoption of Topic 842 and the amount attributable to the below market lease component recognized upon acquisition of JHC on October 1, 2018.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The lease liability associated with the office lease was calculated by discounting the fixed, minimum lease payments over the remaining lease term, including the below-market extension periods, at a discount rate of 7.25%, which represents the Company&#8217;s estimate of the incremental borrowing rate for a collateralized loan for the type of underlying asset that was the subject of the office lease at the time the lease liability was evaluated. The Company estimates that the maturities of operating lease base rent of its office space were as follows as of December 31, 2019:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">December 31,</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">2019</p></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 87%; text-align: justify"><font style="font-size: 8pt">2020</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 10%; text-align: right"><font style="font-size: 8pt">145,000</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">2021</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">147,200</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">2022</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">74,700</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt; text-align: right"><font style="font-size: 8pt">366,900</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Discount</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(30,500</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Lease liability at December 31, 2019</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">336,400</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At December 31, 2018, the Company estimated that the future minimum lease commitments for its office space, including both the base rent and operating expenses, and storage facility were as follows:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">December 31,</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">2018</p></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 87%; text-align: justify"><font style="font-size: 8pt">2019</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 10%; text-align: right"><font style="font-size: 8pt">193,500</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">2020</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">196,400</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">2021</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">199,300</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">2022</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">101,100</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: black 1pt solid"><font style="font-size: 8pt">$&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">&#160;690,300</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 12pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 12pt">During the year ended December 31, 2019, the Company recognized amortization, finance costs and other expense related to the office lease as follows:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="width: 88%; text-align: justify"><font style="font-size: 8pt">Fixed rental expense during the year</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">443,500</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Variable lease expense</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">116,000</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Total lease expense during the year</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">559,500</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company expects that the variable lease expense will total approximately $7,500 per month through the end of the lease, including the two extension periods.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 1 - Quoted prices in active markets for identical assets or liabilities.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><u>Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis</u></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2019, the Company measured the fair value of its interest rate swaps of $80,914,500 (notional amount) based on Level 2 inputs, due to the usage of inputs that can be corroborated by observable market data. The Company estimates the fair value of derivative instruments using a discounted cash flow technique and has used creditworthiness inputs that corroborate observable market data evaluating the Company&#8217;s and counterparties&#8217; risk of non-performance. The interest rate swaps had a net fair value liability of $1,824,500 as of December 31, 2019. In the year ended December 31, 2019, $255,200 was realized through the income statement as an increase in interest expense.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">The following table shows, by level within the fair value hierarchy, the Company&#8217;s assets and liabilities at fair value on a recurring basis as of December 31, 2019 and December 31, 2018:<u>&#160;</u></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="14" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">December 31, 2019</font></td> <td>&#160;</td> <td>&#160;</td> <td colspan="14" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">December 31, 2018</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Total</font></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Level 1</font></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Level 2</font></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Level 3</font></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Total</font></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Level 1</font></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Level 2</font></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Level 3</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 14%; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Money market funds</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 7%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">400</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 7%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">400</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 7%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 7%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="width: 4%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 7%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">656,400</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 7%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">656,400</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 7%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="width: 7%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td style="width: 4%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Derivatives</font></td> <td>&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(1,824,500</font></td> <td><font style="font: 8pt Times New Roman, Times, Serif">)</font></td> <td>&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(1,824,500</font></td> <td><font style="font: 8pt Times New Roman, Times, Serif">)</font></td> <td>&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Total</font></td> <td>&#160;</td> <td style="border-bottom: black 1pt double"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(1,824,100</font></td> <td><font style="font: 8pt Times New Roman, Times, Serif">)</font></td> <td>&#160;</td> <td style="border-bottom: black 1pt double"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">400</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt double"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(1,824,500</font></td> <td><font style="font: 8pt Times New Roman, Times, Serif">)</font></td> <td>&#160;</td> <td style="border-bottom: black 1pt double"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt double"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">656,400</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt double"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">656,400</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt double"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt double"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td>&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">There were no transfers between Level 1 and Level 2 during 2019 or 2018, and there were no transfers into or out of Level 3 during the same periods.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Assets Measured and Recorded at Fair Value on a Nonrecurring Basis</u></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company determines fair value of long-lived assets held and used, such as aircraft and aircraft engines held for lease and these and other assets held for sale, by reference to independent appraisals, quoted market prices (e.g., offers to purchase) and other factors. These are considered Level 3 within the fair value hierarchy. 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 asset&#8217;s carrying value exceeds its fair value. The Company recorded impairment charges totaling $31,007,400 (of which $5,351,300 was related to assets sold in 2019) on nine of its assets held for sale in 2019, which had an aggregate fair value of $25,880,700. The impairment charges were comprised of (i) $7,031,300 based on estimated sales amounts and (ii) $23,976,100 based on third-party appraisals. The Company recorded impairment charges totaling $2,673,300 on four of its aircraft held for sale in 2018, which had an aggregate fair value of $9,900,000. The Company also recorded an impairment charge of $298,200 on one of its aircraft held for lease in 2018.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As discussed in Note 8, in December 2019, the Company adjusted its ROU Asset valuation and lease liability balance to reflect a reduction in lease space and rent effective January 1, 2020. The effects of the adjustment were reductions of $119,100 to the ROU asset and lease liability balance.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">The following table shows, by level within the fair value hierarchy, the Company&#8217;s assets at fair value on a nonrecurring basis as of December 31, 2019 and December 31, 2018:&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: justify">&#160;</td> <td>&#160;</td> <td colspan="31" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Assets Written Down to Fair Value</font></td> <td>&#160;</td> <td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Total Losses</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify">&#160;</td> <td>&#160;</td> <td colspan="15" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">December 31, 2019</font></td> <td>&#160;</td> <td colspan="15" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">December 31, 2018</font></td> <td>&#160;</td> <td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">For the Years Ended December 31,</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify">&#160;</td> <td>&#160;</td> <td colspan="3" style="text-align: center">&#160;</td> <td>&#160;</td> <td colspan="11" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Level</font></td> <td>&#160;</td> <td colspan="3" style="text-align: center">&#160;</td> <td>&#160;</td> <td colspan="11" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Level</font></td> <td>&#160;</td> <td colspan="7" style="text-align: center">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 40%; padding-left: 5.4pt; text-align: justify">&#160;</td> <td style="width: 1%">&#160;</td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center">&#160;</td> <td style="border-bottom: black 1pt solid; width: 3%; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Total</font></td> <td style="width: 1%; text-align: center">&#160;</td> <td style="width: 1%; text-align: center">&#160;</td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center">&#160;</td> <td style="border-bottom: black 1pt solid; width: 3%; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">1</font></td> <td style="width: 1%; text-align: center">&#160;</td> <td style="width: 1%; text-align: center">&#160;</td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center">&#160;</td> <td style="border-bottom: black 1pt solid; width: 3%; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">2</font></td> <td style="width: 1%; text-align: center">&#160;</td> <td style="width: 1%; text-align: center">&#160;</td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center">&#160;</td> <td style="border-bottom: black 1pt solid; width: 3%; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">3</font></td> <td style="width: 1%; text-align: center">&#160;</td> <td style="width: 1%; text-align: center">&#160;</td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center">&#160;</td> <td style="border-bottom: black 1pt solid; width: 3%; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">Total</font></td> <td style="width: 1%; text-align: center">&#160;</td> <td style="width: 1%; text-align: center">&#160;</td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center">&#160;</td> <td style="border-bottom: black 1pt solid; width: 3%; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">1</font></td> <td style="width: 1%; text-align: center">&#160;</td> <td style="width: 1%; text-align: center">&#160;</td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center">&#160;</td> <td style="border-bottom: black 1pt solid; width: 3%; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">2</font></td> <td style="width: 1%; text-align: center">&#160;</td> <td style="width: 1%; text-align: center">&#160;</td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center">&#160;</td> <td style="border-bottom: black 1pt solid; width: 3%; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">3</font></td> <td style="width: 1%; text-align: center">&#160;</td> <td style="width: 1%; text-align: center">&#160;</td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center">&#160;</td> <td style="border-bottom: black 1pt solid; width: 3%; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">2019</font></td> <td style="width: 1%; text-align: center">&#160;</td> <td style="width: 1%; text-align: center">&#160;</td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center">&#160;</td> <td style="border-bottom: black 1pt solid; width: 3%; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">2018</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 5.4pt; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">Assets held for sale</font></td> <td>&#160;</td> <td style="border-bottom: black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">25,880,700</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">25,880,700</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">5,800,000</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">5,800,000</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">25,656,100</font></td> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">837,500</font></td> <td>&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: white"></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: white">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">There were no transfers between Level 1 and Level 2 in 2019, and there were no transfers into or out of Level 3 during the same periods.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Fair Value of Other Financial Instruments</u></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&#8217;s financial instruments, other than cash and cash equivalents, consist principally of finance leases receivable, amounts borrowed under the MUFG Credit Facility, notes payable under special-purpose financing and its derivative instruments. The fair value of accounts receivable, accounts payable and the Company&#8217;s maintenance reserves and accrued maintenance costs approximates the carrying value of these financial instruments because of their short-term maturity. The fair value of finance lease receivables approximates the carrying value as discussed in Note 1(<i>p)</i>. The fair value of the Company&#8217;s derivative instruments is discussed in Note 7 and in this note above in &#8220;Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis.&#8221;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Borrowings under the Company&#8217;s MUFG 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 under the MUFG Credit Facility approximates current market rates for such indebtedness at the dates of the consolidated balance sheets, and therefore that the outstanding principal and accrued interest of $84,460,300 and $122,539,300 at December 31, 2019 and December 31, 2018, respectively, approximate their fair values on such dates. The fair value of the Company&#8217;s outstanding balance of its MUFG Credit Facility is categorized as a Level 3 input under the GAAP fair value hierarchy.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Before their repayment in February 2019 in connection with the Term Loans refinancing, the amounts payable under the UK LLC SPE Financing were payable through the fourth quarter of 2020 and bore a fixed rate of interest. As discussed above, during February 2019, the UK LLC SPE Financing and four assets that previously served as collateral under the MUFG Credit Facility were refinanced using the Term Loans. The Company believes the effective interest rate under the special-purpose financings approximates current market rates for such indebtedness at the dates of the consolidated balance sheets, and therefore that the outstanding principal and accrued interest of $31,003,800 and $9,227,200 approximate their fair values at December 31, 2019 and December 31, 2018, respectively. Such fair value is categorized as a Level 3 input under the GAAP fair value hierarchy.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">There were no transfers in or out of assets or liabilities measured at fair value under Level 3 during 2019 and 2018.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In October 2017, AeroCentury, JHC and certain other parties entered into the Merger Agreement for the acquisition of JHC by AeroCentury for consideration of approximately $2.9 million in cash and 129,217 shares of common stock of AeroCentury, as determined pursuant to the Merger Agreement. JHC is the sole shareholder of JMC, which is the manager of the Company&#8217;s assets as described in Note 14 below. The Merger was consummated on October 1, 2018.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a subsidiary of the Company, JHC&#8217;s results are included in the Company&#8217;s consolidated financial statements beginning on October&#160;1, 2018. In April&#160;2018, subsequent to the execution of the Merger Agreement for the acquisition of JHC, which was signed in October 2017, the Company, JHC and JMC entered into a waiver and reimbursement agreement (the &#8220;Waiver/Reimbursement Agreement&#8221;), pursuant to which JHC and JMC agreed to waive their right to receive management and acquisition fees (&#8220;Contract Fees&#8221;) otherwise owed by the Company to JMC pursuant to the Management Agreement for all periods after March 31, 2018 and until the consummation of the Merger, and in return, the Company agreed to reimburse JMC for expenses incurred in providing management services set forth under the Management Agreement. As a result of the Waiver/Reimbursement Agreement, the Company became responsible for all expenses incurred by JMC in managing the Company as of April 1, 2018, including employee salaries, office rent and all other general and administrative expenses. As a result of the Merger, the Company assumed all of JHC&#8217;s assets, comprised primarily of securities, prepaid expenses and an office lease, as well as liabilities of approximately $0.9 million.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended December 31, 2018, the Company accrued $485,000 of expenses related to the Merger transaction. Such expenses are included in professional fees, general and administrative and other in the Company&#8217;s consolidated statements of operations.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the fourth quarter of 2018, the Company also recorded a settlement loss of $2,527,000 related to the Merger. The settlement loss amount was estimated using an income approach. The Company assessed the contractual terms and conditions of the previous management agreement between the company and JMC (the &#8220;Management Agreement&#8221;) as compared to current market conditions and the historical and expected financial performance of the Company and JMC. Based on the analysis performed, the Company determined that the contractual payment terms were above market rates. The present value of the expected differential between payments previously required by the Management Agreement and those that would be required if the contract reflected current market terms was calculated over the Management Agreement contractual term. As the management fee previously paid by the Company was deemed to be above market and the settlement of this pre-existing relationship resulted in a loss, the loss was recognized in the consolidated statement of operations at the acquisition date and reduced the estimated purchase consideration transferred.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company did not recognize any goodwill on its acquisition of JHC because the only customer relationship JHC had was through its contract with the Company for management of the Company&#8217;s assets and the Company cannot recognize goodwill attributable to its relationship with itself.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table shows the allocation of the purchase price paid by the Company for its acquisition of JHC, the assets and liabilities that were assumed as a result of the Merger and calculation of the settlement loss.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="width: 89%"><font style="font-size: 8pt">Consideration paid in the merger:</font></td> <td style="width: 11%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;Cash consideration</font></td> <td style="text-align: right"><font style="font-size: 8pt">$ 2,915,000</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;ACY stock consideration</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">2,003,000</font></td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">4,918,000</font></td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Fair value of assets acquired/(liabilities assumed):</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;Cash</font></td> <td style="text-align: right"><font style="font-size: 8pt">40,000</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;Securities</font></td> <td style="text-align: right"><font style="font-size: 8pt">121,000</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;Accounts &#38; note receivable</font></td> <td style="text-align: right"><font style="font-size: 8pt">28,000</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;Prepaid expenses</font></td> <td style="text-align: right"><font style="font-size: 8pt">157,000</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;Property, equipment and furnishings</font></td> <td style="text-align: right"><font style="font-size: 8pt">79,000</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;Office leasehold</font></td> <td style="text-align: right"><font style="font-size: 8pt">925,000</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;Accounts payable</font></td> <td style="text-align: right"><font style="font-size: 8pt">&#160;(85,000)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;Accrued vacation</font></td> <td style="text-align: right"><font style="font-size: 8pt">&#160;(93,000)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;Taxes payable</font></td> <td style="text-align: right"><font style="font-size: 8pt">&#160;(722,000)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;Deferred taxes</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">&#160;(138,000)</font></td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">312,000</font></td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Excess of consideration paid over net assets acquired</font></td> <td style="text-align: right"><font style="font-size: 8pt">4,606,000</font></td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Waiver of JMC Margin payable</font></td> <td style="text-align: right"><font style="font-size: 8pt">&#160;(1,517,000)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Settlement of payable to JMC</font></td> <td style="text-align: right"><font style="font-size: 8pt">(562,000)</font></td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Settlement Loss on Management Agreement with JMC</font></td> <td style="border-bottom: black 1.5pt double; text-align: right"><font style="font-size: 8pt">$ 2,527,000</font></td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In the ordinary course of the Company&#8217;s business, the Company may be subject to lawsuits, arbitrations and administrative proceedings from time to time. The Company believes that the outcome of any existing or known threatened proceedings, even if determined adversely, should not have a material adverse effect on the Company's business, financial condition, liquidity or results of operations.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The items comprising the income tax provision are as follows:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">For the Years Ended December 31,</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2019</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2018</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Current tax provision:</font></td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%; padding-left: 0.25in"><font style="font-size: 8pt">Federal</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">(34,100</font></td> <td style="width: 1%"><font style="font-size: 8pt">)</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="width: 2%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">State</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">3,300</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">3,200</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">Foreign</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">418,300</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">414,000</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">Current tax provision</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">387,500</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">417,200</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Deferred tax benefit:</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">Federal</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(4,553,700</font></td> <td><font style="font-size: 8pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(1,270,400</font></td> <td><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">State</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(78,800</font></td> <td><font style="font-size: 8pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(26,100</font></td> <td><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">Foreign</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(262,800</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(93,500</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Deferred tax benefit</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(4,895,300</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(1,390,000</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Total income tax benefit</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(4,507,800</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(972,800</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Total income tax benefit differs from the amount that would be provided by applying the statutory federal income tax rate to pretax earnings as illustrated below:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">For the Years Ended December 31,</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2019</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2018</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%"><font style="font-size: 8pt">Income tax benefit at statutory federal income tax rate</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">(4,444,900</font></td> <td style="width: 1%"><font style="font-size: 8pt">)</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">(1,901,400</font></td> <td style="width: 2%"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">State tax benefit, net of federal benefit</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(75,900</font></td> <td><font style="font-size: 8pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(44,500</font></td> <td><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Non-deductible Merger expenses</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">647,200</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Non-deductible management and acquisition fees</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">7,600</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">325,900</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Other non-deductible expenses</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">5,400</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Total income tax benefit</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(4,507,800</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(972,800</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Temporary differences and carry-forwards that give rise to a significant portion of deferred tax assets and liabilities as of December 31, 2019 and 2018 were as follows:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">December 31,</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2019</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2018</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Deferred tax assets:</font></td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%; padding-left: 0.25in"><font style="font-size: 8pt">Current and prior year tax losses</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">4,980,100</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">4,065,100</font></td> <td style="width: 2%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">Foreign tax credit</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">758,400</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">611,900</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">Deferred interest expense</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">269,800</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">81,800</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">Maintenance reserves</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">470,000</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">3,100,800</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">Deferred derivative losses</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">452,100</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">Deferred maintenance, bad debt allowance and other</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">19,800</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">92,500</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">Alternative minimum tax credit</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">11,400</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">45,500</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.5in"><font style="font-size: 8pt">Deferred tax assets</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">6,961,600</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">7,997,600</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Deferred tax liabilities:</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">Accumulated depreciation on aircraft and aircraft engines</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(8,666,700</font></td> <td><font style="font-size: 8pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(14,773,800</font></td> <td><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">Deferred income</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(175,600</font></td> <td><font style="font-size: 8pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(320,600</font></td> <td><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Leasehold interest</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(131,400</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(185,400</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.5in"><font style="font-size: 8pt">Net deferred tax liabilities</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(2,012,100</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(7,282,200</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">December 31,</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Reported as:</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2019</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2018</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%"><font style="font-size: 8pt">&#160;&#160;&#160;&#160;&#160;&#160;Deferred tax asset</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">517,700</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">254,900</font></td> <td style="width: 2%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;&#160;&#160;&#160;&#160;Deferred income taxes (liability)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(2,529,800</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(7,537,100</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Net deferred tax liabilities</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(2,012,100</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(7,282,200</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Consolidated deferred federal income taxes arise from temporary differences between the valuation of assets and liabilities as determined for financial reporting purposes and federal income tax purposes and are measured at enacted tax rates. The Company&#8217;s deferred tax items are measured at an effective federal tax rate of 21% as of December 31, 2019 and December 31, 2018. Although realization is not assured, management believes it is more likely than not that the entire deferred federal income tax asset will be realized. The amount of the deferred federal income tax assets considered realizable could be reduced in the near term if estimates of future taxable income are reduced.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is required to include on its U.S. income tax return its global intangible low-taxed income (&#8220;GILTI&#8221;) in excess of an allowable return on its foreign subsidiaries&#8217; tangible assets. Per guidance issued by the FASB, companies can either account for deferred taxes related to GILTI or treat tax arising from GILTI as a period cost. Both are acceptable methods subject to an accounting policy election. On December 31, 2018, the Company finalized its policy and has elected to use the period cost method for GILTI. In 2018 and 2019, the Company did not include any GILTI from its Canadian subsidiary because all the subsidiary&#8217;s income was exempt from GILTI.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition, interest deductions are limited to 30% of the Company&#8217;s adjusted taxable income. The Company&#8217;s adjusted taxable income is computed without regard to any: (1) item of income, gain, deduction or loss, which is not allocable to its trade or business; (2) business interest income or expense; (3) net operating loss deduction; and (4) depreciation, amortization or depletion for tax years beginning before January 1, 2022, but taking into account depreciation, amortization, and depletion thereafter. The amount of interest deferred under this provision may be carried forward and deducted in years with excess positive adjusted taxable income. The Company had total disallowed interest expense for the years ended December 31, 2019 and 2018, of $583,300 and $380,900, respectively. The cumulative deferred interest expense of $964,200 may be carried forward indefinitely until the Company has excess positive adjusted taxable income against which it can deduct the deferred interest balance.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The current year federal operating loss carryovers of approximately $23.6 million will be available to offset 80% of annual taxable income in future years.&#160;Approximately $16 million of federal net operating loss carryovers may be carried forward through 2037 and the remaining $7.6 million federal net operating loss carryovers may be carried forward indefinitely. The current year state operating loss carryovers of approximately $385,300 will be available to offset taxable income in the two preceding years and in future years through 2039.&#160; The Company expects to utilize the net operating loss carryovers remaining at December 31, 2019 in future years.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended December 31, 2019, the Company had pre-tax loss from domestic sources of approximately $100,000 and pre-tax loss from foreign sources of approximately $21.1 million. The Company had pre-tax loss from domestic sources of approximately $6.0 million and pre-tax loss from foreign sources of approximately $3.1 million for the year ended December 31, 2018. The foreign tax credit carryover will be available to offset federal tax expense in future years through 2029.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Tax Cuts and Jobs Act of 2017 repealed the corporate alternative minimum tax for tax years beginning after 2017. In addition, beginning in 2018, the Company&#8217;s alternative minimum tax credit (&#8220;MTC&#8221;) was available to offset federal tax expense and is refundable in an amount equal to 50% of the excess MTC for the tax year over the amount of the credit allowable for the year against regular tax liability. In 2021, any remaining MTC will be fully refundable.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2015. At December 31, 2019, the Company had a balance of accrued tax, penalties and interest totaling $94,400 related to unrecognized tax benefits on its non-U.S. operations included in the Company&#8217;s accounts and taxes payable. The Company does not anticipate any significant changes to the unrecognized tax benefits within twelve months of this reporting date. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="6" style="text-align: center"><font style="font-size: 8pt">December 31,</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2019</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2018</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%"><font style="font-size: 8pt">Balance at January 1</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">85,400</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="width: 2%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Additions for prior years&#8217; tax positions</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">9,000</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">85,400</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Balance at December 31</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">94,400</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">85,400</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for interest related to uncertain tax positions as interest expense, and for income tax penalties as tax expense.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">All of the Company's tax years remain open to examination other than as barred in the various jurisdictions by statutes of limitation.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: right">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">Basic and diluted earnings per share are calculated as follows:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;For the Years Ended</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">December 31,</p></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2019</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2018</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%"><font style="font-size: 8pt">Net loss</font></td> <td style="width: 1%; padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; width: 9%; text-align: right"><font style="font-size: 8pt">(16,658,500</font></td> <td style="width: 1%; padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td> <td style="width: 1%; padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; width: 9%; text-align: right"><font style="font-size: 8pt">(8,081,200</font></td> <td style="width: 2%; padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Weighted average shares outstanding for the period</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">1,545,884</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">1,449,261</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Basic loss per share</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(10.78</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(5.58</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Diluted loss per share</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(10.78</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(5.58</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic loss per common share is computed using net loss and the weighted average number of common shares outstanding during the period. Diluted loss per common share is computed using net (loss)/income and the weighted average number of common shares outstanding, assuming dilution. Weighted average common shares outstanding, assuming dilution, include potentially dilutive common shares outstanding during the period. There were no anti-dilutive shares outstanding during 2019 or 2018.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">See the description of the Merger Agreement between the Company and JHC in Note 10, pursuant to which the Company acquired JHC in the Merger and JHC became a wholly-owned subsidiary of the Company on October 1, 2018.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Before completion of the Merger, the Company&#8217;s portfolio of aircraft assets was managed and administered under the terms of a management agreement with JMC (the &#8220;Management Agreement&#8221;). Certain officers of the Company were also officers of JHC and JMC and held significant ownership positions in both JHC and the Company, and JHC was also a significant stockholder of AeroCentury. Under the Management Agreement, JMC received a monthly management fee based on the net asset value of the Company&#8217;s assets under management. JMC also received an acquisition fee for locating assets for the Company. Acquisition fees were included in the cost basis of the asset purchased. JMC also received a remarketing fee in connection with the re-lease or sale of the Company&#8217;s assets. Remarketing fees were amortized over the applicable lease term or included in the gain or loss on sale.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In April 2018, subsequent to the execution of the Merger Agreement for the acquisition of JHC, JHC agreed to waive its right to receive management and acquisition fees (&#8220;Contract Fees&#8221;) otherwise owed by the Company to JHC pursuant to the Management Agreement for all periods after March 31, 2018 and until the earlier of the consummation of the Merger or August 15, 2018. In return, the Company agreed to reimburse JMC for expenses (&#8220;Management Expense&#8221;) incurred in providing management services set forth under the Management Agreement. In July 2018, JHC agreed to extend the expiration of this agreement (the &#8220;Waiver and Reimbursement Agreement&#8221;) through October 15, 2018. Thus, if the Merger Agreement was terminated on or before October 15, 2018 or the Merger did not close by October 15, 2018, the Company would have become obligated to pay JMC any excess (the &#8220;JMC Margin&#8221;) of (i) the Contract Fees that would have been paid to JMC since April 1, 2018 in the absence of the Waiver and Reimbursement Agreement over (ii) the Management Expenses actually paid by the Company to JMC since April 1, 2018. For the nine months ended September 30, 2018, Contract Fees exceeded the reimbursed Management Expense by $1,023,000 of management fees and $494,000 of acquisition fees. Notwithstanding the Waiver and Reimbursement Agreement, until the closing or termination of the Merger Agreement, the Company accrued as an expense the total Contract Fees that would have been due under the Management Agreement. Because the Merger closed on October 1, 2018, the Waiver and Reimbursement Agreement for the period from April 1, 2018 through September 30, 2018 was considered in the acquisition accounting for the calculation of the settlement loss recognized by the Company when the Merger was consummated.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company incurred management fees and acquisition fees of $4,482,800 and $494,400, respectively, during 2018.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Effective January 1, 2020, the Company reduced both the size of the office space leased and the amount of rent payable in the future. As such, in 2020 the Company will recognize a reduction in both the capitalized amount related to the surrendered office space and a proportionate amount of the liability associated with its future lease obligations. In January 2020, the Company recorded a loss of $160,000 related to the reduction in its ROU Asset, net of the reduction in its operating lease liability, and will recognize amortization of $308,100, $317,600 and $162,600 in 2020, 2021 and the first half of 2022, respectively.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In January 2020, the Company amended the leases for three of its assets that are subject to sales-type finance leases. The amendments provided for (i) the sale of one aircraft to the customer in January 2020, (ii) application of collected maintenance reserves and a security deposit held by the Company to past due amounts for the other two aircraft, (iii) required payments totaling $585,000 in January for two of the leases and (iv) reduced the amount of future payments due under the two leases.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In January 2020, the lessee for an aircraft leased pursuant to a direct financing lease notified the Company of its intention to exercise the lease-end purchase option for the aircraft in March 2020. In February 2020, the Company and the same lessee agreed to the early exercise of lease-end purchase options for direct financing leases that were to expire in March 2021 and March 2022. All three aircraft were sold to the lessee in March 2020.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In March 2019, the Company entered into two interest rate derivative instruments in connection with the MUFG Credit Facility. In March 2020, the counterparties to the MUFG Swaps terminated the MUFG Swaps and the Company became obligated to pay $3.1 million to the counterparties.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In January 2020, the World Health Organization (&#8220;WHO&#8221;) announced a global health emergency because of a new strain of coronavirus and the risks to the international community as the virus spreads globally (the &#8220;COVID-19 Outbreak&#8221;). In March 2020, the WHO classified the COVID-19 Outbreak as a pandemic, based on the rapid increase in exposure globally. The ongoing COVID-19 Outbreak has had an overwhelming effect on all forms of transportation globally, but most acutely for the airline industry. The combined effect of fear of infection during air travel and international and domestic travel restrictions has caused a dramatic decrease in passenger loads in all areas of the world, not just in those countries with active clusters of COVID-19, but in airline ticket net bookings (i.e. bookings made less bookings canceled) of flights as well. This has led to significant cash flow issues for airlines, including some of the Company&#8217;s customers, and some airlines may be unable to timely meet their obligations under their lease obligations with the Company unless government financial support is received, of which there can be no assurance. Any significant nonpayment or late payment of lease payments by a significant lessee or combination of lessees could in turn impose limits on the Company&#8217;s ability to fund its ongoing operations as well as cause new defaults under the Company&#8217;s debt obligations, which in turn could lead to an immediate acceleration of debt and foreclosure upon the Company&#8217;s assets. Furthermore, for the duration of the pandemic and a period of financial recovery thereafter, sale and acquisition transactions are likely to be curtailed entirely or delayed while the industry returns to financial stability, which could impact the Company&#8217;s ability to implement its Recapitalization Plan. No impairments were recorded as of the balance sheet date as no triggering events or changes in circumstances had occurred as of year-end; however, due to significant uncertainty surrounding the situation, management's judgment regarding this could change in the future. In addition, while the Company&#8217;s results of operations, cash flows and financial condition could be negatively impacted, the extent of the impact cannot be reasonably estimated at this time.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">However, as a result of the COVID-19 Outbreak, in March 2020, one of the Company&#8217;s customers, which leases two regional jet aircraft subject to Nord Term Loan financing, did not make its quarterly rent payment of approximately $1.4 million. The nonpayment led to a corresponding Nord Term Loan financing payment event of default under the Nord Term Loans for each of those subsidiaries. The Company is currently reviewing its options for remedies against the lessee. It has also entered into negotiations with Nord regarding a workout for the corresponding overdue Nord Term Loan payments. &#160; As a result of the non-payment on the two regional jets by the Company&#8217;s customer and potential consequent uncertainty concerning future interest payments under the related Nord Term Loans, as well as potential uncertainty related to rent payments and related debt payments on the other three Nord Term Loans, the Company is reevaluating its hedge accounting for the five interest rate derivatives associated with those loans.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">AeroCentury Corp. (&#8220;AeroCentury&#8221;) is a Delaware corporation incorporated in 1997. AeroCentury together with its consolidated subsidiaries is referred to as the &#8220;Company.&#8221;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2016, AeroCentury formed two wholly-owned subsidiaries, ACY 19002 Limited (&#8220;ACY 19002&#8221;) and ACY 19003 Limited (&#8220;ACY 19003&#8221;) for the purpose of acquiring aircraft using a combination of cash and third-party financing (&#8220;UK LLC SPE Financing&#8221; or &#8220;special-purpose financing&#8221;) separate from AeroCentury&#8217;s credit facility (the &#8220;MUFG Credit Facility&#8221;). The UK LLC SPE Financing was repaid in full in February 2019 as part of a refinancing involving new non-recourse term loans totaling approximately $44.3 million (&#8220;Nord Term Loans&#8221;) made to ACY 19002, ACY 19003, and two other newly formed special-purpose subsidiaries of AeroCentury. See Note 6(b) for more information about the Nord Term Loans.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 1, 2018, AeroCentury acquired JetFleet Holding Corp. (&#8220;JHC&#8221;) in a reverse triangular merger (&#8220;Merger&#8221;) for consideration of approximately $2.9 million in cash and 129,217 shares of common stock of AeroCentury, as determined pursuant to an Agreement and Plan of Merger (the &#8220;Merger Agreement&#8221;) entered into by AeroCentury, JHC and certain other parties in October 2017. JHC is the parent company of JetFleet Management Corp. (&#8220;JMC&#8221;), which is an integrated aircraft management, marketing and financing business and the manager of the Company&#8217;s assets. Upon completion of the Merger, JHC became a wholly-owned subsidiary of the Company, and as a result, JHC's results are included in the Company's consolidated financial statements beginning on October 1, 2018.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In November 2018, AeroCentury formed two wholly-owned subsidiaries, ACY SN 15129 LLC (&#8220;ACY 15129&#8221;) and ACY E-175 LLC (&#8220;ACY E-175&#8221;), for the purpose of refinancing four of the Company&#8217;s aircraft using the Nord Term Loans. Because the Nord Term Loans did not close until February 2019, the subject aircraft remained as collateral under the MUFG Credit Facility as of December 31, 2018, and ACY 15129 and ACY E-175 had no activity in 2018.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Financial information for AeroCentury and its consolidated subsidiaries is presented on a consolidated basis in accordance with accounting principles generally accepted in the United States of America (&#8220;GAAP&#8221;) based upon the continuation of the business as a going concern. All intercompany balances and transactions have been eliminated in consolidation.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As discussed in Note 6, the Company was in default under its MUFG Credit Facility as of December 31, 2019. The MUFG Credit Facility lenders (&#8220;Credit Facility Lenders&#8221;) have the right to exercise any and all remedies for default under the MUFG Credit Facility agreement. Such remedies include, but are not limited to, declaring the entire indebtedness immediately due and payable and, if the Company were unable to repay such accelerated indebtedness (including its obligation in connection with the termination of two interest rate swaps entered into in connection with the MUFG Credit Facility (the &#8220;MUFG Swaps&#8221;), foreclosing upon the assets of the Company that secure the MUFG Indebtedness, which consist of all of the Company&#8217;s assets except for certain assets held in the Company&#8217;s single asset special-purpose financing subsidiaries. In addition, as discussed in Note 15, the coronavirus pandemic has led to significant cash flow issues for airlines, including some of the Company&#8217;s customers, and some airlines may be unable to timely meet their obligations under their lease obligations with the Company unless government financial support is received, of which there can be no assurance. Any significant nonpayment or late payment of lease payments by a significant lessee or combination of lessees could in turn impose limits on the Company&#8217;s ability to fund its ongoing operations as well as cause new defaults under the Company&#8217;s debt obligations, which in turn could lead to an immediate acceleration of debt and foreclosure upon the Company&#8217;s assets.&#160; As a result of these factors, there is substantial doubt regarding the Company&#8217;s ability to continue as a going concern.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is currently in negotiations with the Credit Facility Lenders to convert the MUFG Credit Facility into a term loan facility (as converted, the The Company is currently in negotiations with the Credit Facility Lenders to convert the MUFG Credit Facility into a term loan facility (as converted, the &#8220;MUFG Term Loan&#8221; and, collectively with the MUFG Credit Facility, &#8220;MUFG Indebtedness&#8221;). The Company has engaged an investment banking advisor to assist in obtaining additional debt or equity financing (the &#8220;Recapitalization Plan&#8221;) which, if successful, would be used to repay the MUFG Indebtedness.&#160; However, there is no assurance that this will occur.&#160; This is further exacerbated by the significance of the COVID-19 uncertainties discussed in Note 15.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The consolidated financial statements presented in this Annual Report on Form 10-K have been prepared on a going concern basis and do not include any adjustments that might arise as a result of uncertainties about the Company&#8217;s ability to continue as a going concern.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&#8217;s consolidated financial statements have been prepared in accordance with GAAP. The preparation of consolidated 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 consolidated 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.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The most significant estimates with regard to these consolidated financial statements are the residual values and useful lives of the Company&#8217;s long-lived assets, the amount and timing of future cash flows associated with each asset that are used to evaluate whether assets are impaired, accrued maintenance costs, accounting for income taxes, the assumptions used to value the Company&#8217;s derivative instruments, the valuation of the right of use asset and related lease liability associated with the Company&#8217;s office, and the amounts recorded as allowances for doubtful accounts.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company reflects changes in the fair value of its interest rate swap derivatives that are designated as hedges in other comprehensive income/(loss). Such amounts are reclassified into earnings in the periods in which the hedged transaction occurs or when it is probable that the hedged transactions will no longer occur, and are included in interest expense.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers highly liquid investments readily convertible into known amounts of cash, with original maturities of 90 days or less from the date of acquisition, as cash equivalents.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&#8217;s restricted cash is held in an account with the agent for the Company&#8217;s MUFG Credit Facility and disbursements from the account are subject to the control and discretion of the agent for payment of principal on the MUFG Credit Facility as well as for the Company&#8217;s operating expenses.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At December 31, 2018, the Company owned 121 shares of non-voting preferred stock in a non-public company. The stock, which had a cumulative preferred annual dividend of 10% and a liquidation value of $1,000 per share, was sold during 2019.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In February 2016, the Financial Accounting Standards Board (&#34;FASB&#34;) issued Topic 842 - <i>Leases</i> in the Accounting Standards Codification (&#34;ASC&#34;). Topic 842 substantially modifies lessee accounting for leases, requiring that lessees recognize lease assets and liabilities for leases extending beyond one year. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The Company adopted Topic 842 on January 1, 2019, electing to apply its provisions on the date of adoption and to record the cumulative effect as an adjustment to retained earnings. Lessor accounting under Topic 842 is similar to the prior accounting standard and the Company has elected to apply practical expedients under which the Company will not have to reevaluate whether a contract is a lease, the classification of its existing leases or its capitalized initial direct costs. In addition, the Company, as lessor, has elected the practical expedient to combine lease and non-lease components as one combined component for its leased aircraft for purposes of determining whether that combined component should be accounted for under Topic 606, which establishes rules that affect the amount and timing of revenue recognition for contracts with customers, or Topic 842.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The new standard requires a lessor to classify leases as sales-type, finance, or operating. A lease is treated as sales-type if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a finance lease. If the lessor does not convey risks and rewards or control, an operating lease results. As a result of application of the practical expedients, the Company was not required to alter the classification or carrying value of its leased or finance lease assets.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In connection with the Company&#8217;s acquisition of JHC, as discussed in Note 10, the Company recognized that the lease of its office facilities had rents that were substantially below the market for such office space. Consequently, the Company recorded $925,000 as the value of below-market rents at the October 1, 2018 date of the JHC acquisition, and amortized such amount on a level basis over the remaining term of the office lease, including two one-year bargain renewal options. The Company recorded $61,700 of amortization in 2018.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Lessee reporting was changed by the new standard, requiring that the balance sheet reflect a liability for most operating lease obligations as well as a &#8220;right of use&#8221; asset. As such, in January 2019, the Company was required to record a lease obligation of approximately $610,000 in connection with the lease of its headquarters office, and to increase the capitalized leasehold interest / right of use asset by $610,000, as discussed in Note 8. There was no effect on retained earnings recorded as a result of adoption of the standard. The Company elected the lessee practical expedient to combine the lease and non-lease components.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&#8217;s interests in aircraft and aircraft engines are recorded at cost, which includes acquisition costs. Since inception, the Company has typically purchased only used aircraft and aircraft engines. It is the Company&#8217;s policy to hold aircraft for approximately twelve years unless market conditions dictate otherwise. Therefore, depreciation of aircraft is initially computed using the straight-line method over the anticipated holding period to an estimated residual value based on appraisal. For an aircraft engine held for lease as a spare, the Company estimates the length of time that it will hold the aircraft engine based upon estimated usage, repair costs and other factors, and depreciates it to the appraised residual value over such period using the straight-line method.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company periodically reviews plans for lease or sale of its aircraft and aircraft engines and changes, as appropriate, the remaining expected holding period for such assets. Estimated residual values are reviewed and adjusted periodically, based upon updated estimates obtained from an independent appraiser. Decreases in the fair value of aircraft could affect not only the current value, discussed below, but also the estimated residual value.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Assets that are held for sale are not subject to depreciation and are separately classified on the balance sheet. Such assets are carried at the lower of their carrying value or estimated fair values, less costs to sell.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&#8217;s interests in equipment are recorded at cost and depreciated using the straight-line method over five years. The Company&#8217;s leasehold improvements are recorded at cost and amortized using the straight-line method over the shorter of the lease term or the estimated useful lives of the respective assets.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company reviews assets for impairment when there has been an event or a change in circumstances indicating that the carrying amount of a long-lived asset may not be recoverable. In addition, the Company routinely reviews all long-lived assets for impairment semi-annually. Recoverability of an asset is measured by comparison of its carrying amount to the future estimated undiscounted cash flows (without interest charges) that the asset is expected to generate. Estimates are based on currently available market data and independent appraisals and are subject to fluctuation from time to time. If these estimated future cash flows are less than the carrying value of an asset at the time of evaluation, any impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value.&#160; Fair value is determined by reference to independent appraisals and other factors considered relevant by management. Significant management judgment is required in the forecasting of future operating results that are used in the preparation of estimated future undiscounted cash flows and, if different conditions prevail in the future, material write-downs may occur.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As discussed in Note 9, the Company recorded impairment losses totaling $31.0 million and $3.0 million in 2019 and 2018, respectively, as a result of the Company&#8217;s determination that the carrying values for certain aircraft were not recoverable.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The 2019 impairment losses consisted of (i) $24.0 million resulting from appraised values for four aircraft that are held for sale, assuming sale in a reasonably short time (&#8220;Orderly Liquidation Value&#8221;) and (ii) $7.0 million resulting from estimated or actual sales proceeds for five assets held for sale, three of which were sold during 2019.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The 2018 impairment losses consisted of (i) $2.7 million resulting from Orderly Liquidation Values for four aircraft held for sale and (ii) $0.3 million resulting from writing a fifth aircraft down to its appraised value.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Costs incurred in connection with debt financing are deferred and amortized over the term of the debt using the effective interest method or, in certain instances where the differences are not material, using the straight-line method. Costs incurred in connection with the MUFG Credit Facility are deferred and amortized using the straight-line method. Commitment fees for unused funds are expensed as incurred.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&#8217;s leases are typically structured so that if any event of default occurs under a lease, the Company may apply all or a portion of the lessee&#8217;s security deposit to cure such default. If such application of the security deposit is made, the lessee typically is required to replenish and maintain the full amount of the deposit during the remaining lease term. All of the security deposits received by the Company are refundable to the lessee at the end of the lease upon satisfaction of all lease terms.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As part of the process of preparing the Company&#8217;s consolidated financial statements, management estimates income taxes in each of the jurisdictions in which the Company operates. This process involves estimating the Company&#8217;s current tax exposure under the most recent tax laws and assessing temporary differences resulting from differing treatment of items for tax and GAAP purposes. These differences result in deferred tax assets and liabilities, which are included in the balance sheet. Management also assesses the likelihood that the Company&#8217;s deferred tax assets will be recovered from future taxable income, and, to the extent management believes it is more likely than not that some portion or all of the deferred tax assets will not be realized, the Company establishes a valuation allowance. To the extent the Company establishes a valuation allowance or changes the allowance in a period, the Company reflects the corresponding increase or decrease within the tax provision in the statement of operations. Significant management judgment is required in determining the Company&#8217;s future taxable income for purposes of assessing the Company&#8217;s ability to realize any benefit from its deferred taxes. After considering the Company&#8217;s significant amounts of net deferred tax liabilities which are future reversing taxable temporary differences, the Company has determined that no valuation allowance is required for its deferred tax assets.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accrues non-income based sales, use, value added and franchise taxes as other tax expense in the statement of operations.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenue from leasing of aircraft assets pursuant to operating leases is recognized on a straight-line basis over the terms of the applicable lease agreements. Deferred payments are recorded as accrued rent when the cash rent received is lower than the straight-line revenue recognized. Such receivables decrease over the term of the applicable leases. Interest income is recognized on finance leases based on the interest rate implicit in the lease and the outstanding balance of the lease receivable.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Maintenance reserves retained by the Company at lease-end are recognized as maintenance reserves revenue.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In instances where collectability is not reasonably assured, the Company recognizes revenue as cash payments are received. The Company estimates and charges to income a provision for bad debts based on its experience with each specific customer, the amount and length of payment arrearages, and its analysis of the lessee&#8217;s overall financial condition. If the financial condition of any of the Company&#8217;s customers deteriorates, it could result in actual losses exceeding any estimated allowances.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company had an allowance for doubtful accounts of $2,908,600 and $0 at December 31, 2019 and 2018, respectively.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company reflects changes in the fair value of its interest rate swap derivatives that are designated as hedges in other comprehensive income/(loss). Such amounts are reclassified into earnings in the periods in which the hedged transaction occurs, and are included in interest expense.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">As of December 31, 2019, the Company had three aircraft subject to sales-type finance leases and three aircraft subject to direct financing leases. All six leases contain lessee bargain purchase options at prices substantially below the subject asset&#8217;s estimated residual value at the exercise date for the option. Consequently, the Company has classified each of these six leases as finance leases for financial accounting purposes. For such finance leases, the Company reports 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, as a finance lease receivable on its balance sheet, and accrues interest on the balance of the finance lease receivable based on the interest rate inherent in the applicable lease over the term of the lease. For each of the three sales-type finance leases, the Company recognized as a gain or loss the amount equal to (i) the net investment in the sales-type finance lease plus any initial direct costs and lease incentives less (ii) the net book value of the subject aircraft at inception of the applicable lease.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognized interest earned on finance leases in the amount of $852,600 and $1,251,000 in 2019 and 2018, respectively. As a result of payment delinquencies by two customers that lease three of the Company&#8217;s aircraft subject to finance leases, the Company recorded a bad debt allowance of $2,957,800 during 2019.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Maintenance costs under the Company&#8217;s triple net leases are generally the responsibility of the lessees. Some of the Company&#8217;s leases require payment of maintenance reserves, which are based upon lessee-reported usage and billed monthly, and are intended to accumulate and be applied by the Company toward reimbursement of most or all of the cost of the lessees&#8217; performance of certain maintenance obligations under the leases. Such reimbursements reduce the associated maintenance reserve liability.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Maintenance reserves are characterized as either refundable or non-refundable depending on their disposition at lease-end. The Company retains non-refundable maintenance reserves at lease-end, even if the lessee has met all of its obligations under the lease, including any return conditions applicable to the leased asset, while refundable reserves are returned to the lessee under such circumstances. Any reserves retained by the Company at lease-end are recorded as revenue at that time.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accrued maintenance costs include (i) maintenance for work performed for off-lease aircraft, which is not related to the release of maintenance reserves received from lessees and which is expensed as incurred, and (ii) lessor maintenance obligations assumed and recognized as a liability upon acquisition of aircraft subject to a lease with such provisions.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the first quarter of 2019, the Company entered into certain derivative instruments to mitigate its exposure to variable interest rates under the Term Loans debt and a portion of the MUFG Credit Facility debt. Hedge accounting is applied to such a transaction only if specific criteria have been met, the transaction is deemed to be &#8220;highly effective&#8221; and the transaction has been designated as a hedge at its inception. Under hedge accounting treatment, generally, the effects of derivative transactions are recorded in earnings for the period in which the hedge transaction affects earnings. A change in value of a hedging instrument is reported as a component of other comprehensive income/(loss) and is reclassified into earnings in the period in which the transaction being hedged affects earnings.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">If at any time after designation of a cash flow hedge, such as those entered into by the Company, it is no longer probable that the forecasted cash flows will occur, hedge accounting is no longer permitted and a hedge is &#8220;dedesignated.&#8221; After dedesignation, if it is still considered reasonably possible that the forecasted cash flows will occur, the amount previously recognized in other comprehensive income/(loss) will continue to be reversed as the forecasted transactions affect earnings. However, if after dedesignation it is probable that the forecasted transactions will not occur, amounts deferred in accumulated other comprehensive income/(loss) will be recognized in earnings immediately.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As noted in Note 7, in October 2019 the Company became aware that, as a result of certain defaults under its MUFG Credit Facility, certain of the forecasted transactions related to its MUFG Credit Facility interest rate swaps are no longer probable of occurring and, hence, those swaps were dedesignated from hedge accounting at that time. As discussed in Note 15, the two swaps related to the MUFG Credit Facility were terminated in March 2020 and the Company incurred a $3.1 million obligation in connection with such termination.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><u>ASU 2016-13</u></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The FASB issued ASU 2016-13, <i>Financial Instruments &#8211; Credit Losses (Topic 326)</i>, in June of 2016 (&#8220;ASU 2016-13&#8221;)<i>.</i> ASU 2016-13 provides that financial assets measured at amortized cost are to be presented as a net amount, reflecting a reduction for a valuation allowance to present the amount expected to be collected (the &#8220;current expected credit loss&#8221; model of reporting). As such, expected credit losses will be reflected in the carrying value of assets and losses will be recognized before they become probable, as is required under the Company&#8217;s present accounting practice. In the case of assets held as available for sale, the amount of the valuation allowance will be limited to an amount that reflects the marketable value of the debt instrument. This amendment to GAAP is effective&#160; in the first quarter of 2023 for calendar-year SEC filers that are smaller reporting companies as of the one-time determination date. Early adoption is permitted beginning in 2019. The Company plans to adopt the new guidance on January 1, 2023, and has not determined the impact of this adoption on its consolidated financial statements.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>ASU 2019-12</u></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In December 2019, the FASB issued ASU 2019-12, <i>Income Taxes (Topic 740),</i> a new accounting standard update to simplify the accounting for income taxes. The new guidance removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. It also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. This guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and related disclosures.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">December 31, 2019</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">December 31, 2018</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td> <p style="border-bottom: black 0.75pt solid; font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">Type</p></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">Number</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">Owned</p></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">% of net book value</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">Number</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">owned</p></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">% of net book value</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 50%"><font style="font-size: 8pt">Regional jet aircraft</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">9</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">80</font></td> <td style="width: 2%"><font style="font-size: 8pt">%</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">13</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">81</font></td> <td style="width: 2%"><font style="font-size: 8pt">%</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Turboprop aircraft</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">2</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">20</font></td> <td><font style="font-size: 8pt">%</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">4</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">18</font></td> <td><font style="font-size: 8pt">%</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Engines</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td><font style="font-size: 8pt">%</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">1</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">1</font></td> <td><font style="font-size: 8pt">%</font></td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Years ending December 31</font></td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 88%; text-align: justify"><font style="font-size: 8pt">2020</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">17,650,900</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">2021</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">10,392,000</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">2022</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">8,639,600</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">2023</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">8,639,600</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">2024</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">6,826,100</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Thereafter</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,683,300</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">53,831,500</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">December 31,</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">2019</p></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">December 31,</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">2018</p></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 76%; text-align: justify"><font style="font-size: 8pt">Gross minimum lease payments receivable</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">9,096,400</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">17,107,100</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Less unearned interest</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(286,600</font></td> <td><font style="font-size: 8pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(1,856,200</font></td> <td><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Difference between minimum lease payments receivable and collateral value of leases</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(7,700</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Finance leases receivable</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">8,802,100</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">15,250,900</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Years ending December 31</font></td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 88%; text-align: justify"><font style="font-size: 8pt">2020</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">3,817,200</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">2021</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">2,608,200</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">2022</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">2,114,000</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">2023</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">557,000</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">9,096,400</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="width: 90%"><font style="font-size: 8pt">Balance, December 31, 2018</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 7%; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Additions charged to expense</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">2,908,600</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Balance, December 31, 2019</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">2,908,600</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">December 31,</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt"><b>Net Book Value of Aircraft and Aircraft Engines Held for Lease</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2019</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2018</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%; text-align: justify"><font style="font-size: 8pt">Europe and United Kingdom</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">44,569,000</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">110,069,000</font></td> <td style="width: 2%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">North America</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">63,799,600</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">68,485,400</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Asia</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">5,465,500</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">108,368,600</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">184,019,900</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">For the Years Ended December 31,</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt"><b>Operating Lease Revenue</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2019</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2018</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%; text-align: justify"><font style="font-size: 8pt">Europe and United Kingdom</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">15,174,900</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">16,258,800</font></td> <td style="width: 2%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">North America</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">10,119,100</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">10,119,100</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Asia</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">315,000</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,259,600</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">25,609,000</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">27,637,500</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">For the Years Ended December 31,</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt"><b>Finance Lease Revenue</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2019</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2018</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%; text-align: justify"><font style="font-size: 8pt">Africa</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">487,000</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">832,800</font></td> <td style="width: 2%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Europe and United Kingdom</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">365,600</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">418,200</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">852,600</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">1,251,000</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">December 31,</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">2019</p></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">December 31,</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">2018</p></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">MUFG Credit Facility:</font></td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 76%; text-align: justify"><font style="font-size: 8pt">&#160;&#160;&#160;Principal</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">84,084,100</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">122,400,000</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;&#160;&#160;Unamortized debt issuance costs</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(3,084,200</font></td> <td><font style="font-size: 8pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(674,300</font></td> <td><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;&#160;&#160;Accrued interest</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">376,200</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">139,300</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Special-purpose financing:</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;&#160;&#160;Principal:</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;&#160;&#160;&#160;&#160;&#160;UK SPE Financing</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">9,211,200</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;&#160;&#160;&#160;&#160;&#160;Nord Term Loans</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">30,914,500</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;&#160;&#160;Unamortized debt issuance costs</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(741,500</font></td> <td><font style="font-size: 8pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;&#160;&#160;Accrued interest</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">89,300</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">16,000</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">111,638,400</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">131,092,200</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="6" style="text-align: center"><font style="font-size: 8pt">&#160;For the Years Ended December 31,</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2019</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2018</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%; text-align: justify"><font style="font-size: 8pt">Change in value of interest rate swaps</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">255,200</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="width: 2%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Other items</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">147,400</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Included in interest expense</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">402,600</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr> <td colspan="3" style="vertical-align: bottom"><font style="font-size: 8pt">The following amount was included in other comprehensive income/(loss), before tax</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Unrealized loss on derivative instruments</font></td> <td>&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">(1,932,100</font></td> <td><font style="font-size: 8pt">)</font></td> <td>&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Other items</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">186,400</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Change in value of hedged interest rate swaps</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(1,745,700</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="width: 88%; text-align: justify"><font style="font-size: 8pt">Designated interest rate hedges fair value</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">(570,900</font></td> <td style="width: 1%"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Other interest rate swaps</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(1,253,600</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Total derivative (liability)</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(1,824,500</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">December 31,</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">2019</p></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 87%; text-align: justify"><font style="font-size: 8pt">2020</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 10%; text-align: right"><font style="font-size: 8pt">145,000</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">2021</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">147,200</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">2022</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">74,700</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt; text-align: right"><font style="font-size: 8pt">366,900</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Discount</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(30,500</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Lease liability at December 31, 2019</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">336,400</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">December 31,</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">2018</p></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 87%; text-align: justify"><font style="font-size: 8pt">2019</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 10%; text-align: right"><font style="font-size: 8pt">193,500</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">2020</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">196,400</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">2021</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">199,300</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">2022</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">101,100</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: black 1pt solid"><font style="font-size: 8pt">$&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">&#160;690,300</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 12pt">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="width: 88%; text-align: justify"><font style="font-size: 8pt">Fixed rental expense during the year</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">443,500</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Variable lease expense</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">116,000</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Total lease expense during the year</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">559,500</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="14" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">December 31, 2019</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="14" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">December 31, 2018</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Total</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Level 1</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Level 2</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Level 3</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Total</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Level 1</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Level 2</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Level 3</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 14%; text-align: justify"><font style="font-size: 8pt">Money market funds</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 7%; text-align: right"><font style="font-size: 8pt">400</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 7%; text-align: right"><font style="font-size: 8pt">400</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 7%; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 7%; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="width: 4%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 7%; text-align: right"><font style="font-size: 8pt">656,400</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 7%; text-align: right"><font style="font-size: 8pt">656,400</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 7%; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 7%; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="width: 4%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Derivatives</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(1,824,500</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(1,824,500</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">Total</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(1,824,100</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">400</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(1,824,500</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">656,400</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">656,400</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="width: 89%"><font style="font-size: 8pt">Consideration paid in the merger:</font></td> <td style="width: 11%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;Cash consideration</font></td> <td style="text-align: right"><font style="font-size: 8pt">$ 2,915,000</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;ACY stock consideration</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">2,003,000</font></td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">4,918,000</font></td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Fair value of assets acquired/(liabilities assumed):</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;Cash</font></td> <td style="text-align: right"><font style="font-size: 8pt">40,000</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;Securities</font></td> <td style="text-align: right"><font style="font-size: 8pt">121,000</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;Accounts &#38; note receivable</font></td> <td style="text-align: right"><font style="font-size: 8pt">28,000</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;Prepaid expenses</font></td> <td style="text-align: right"><font style="font-size: 8pt">157,000</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;Property, equipment and furnishings</font></td> <td style="text-align: right"><font style="font-size: 8pt">79,000</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;Office leasehold</font></td> <td style="text-align: right"><font style="font-size: 8pt">925,000</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;Accounts payable</font></td> <td style="text-align: right"><font style="font-size: 8pt">&#160;(85,000)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;Accrued vacation</font></td> <td style="text-align: right"><font style="font-size: 8pt">&#160;(93,000)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;Taxes payable</font></td> <td style="text-align: right"><font style="font-size: 8pt">&#160;(722,000)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;Deferred taxes</font></td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">&#160;(138,000)</font></td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">312,000</font></td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Excess of consideration paid over net assets acquired</font></td> <td style="text-align: right"><font style="font-size: 8pt">4,606,000</font></td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Waiver of JMC Margin payable</font></td> <td style="text-align: right"><font style="font-size: 8pt">&#160;(1,517,000)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Settlement of payable to JMC</font></td> <td style="text-align: right"><font style="font-size: 8pt">(562,000)</font></td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Settlement Loss on Management Agreement with JMC</font></td> <td style="border-bottom: black 1.5pt double; text-align: right"><font style="font-size: 8pt">$ 2,527,000</font></td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">For the Years Ended December 31,</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2019</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2018</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Current tax provision:</font></td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%; padding-left: 0.25in"><font style="font-size: 8pt">Federal</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">(34,100</font></td> <td style="width: 1%"><font style="font-size: 8pt">)</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="width: 2%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">State</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">3,300</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">3,200</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">Foreign</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">418,300</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">414,000</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">Current tax provision</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">387,500</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">417,200</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Deferred tax benefit:</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">Federal</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(4,553,700</font></td> <td><font style="font-size: 8pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(1,270,400</font></td> <td><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">State</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(78,800</font></td> <td><font style="font-size: 8pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(26,100</font></td> <td><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">Foreign</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(262,800</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(93,500</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Deferred tax benefit</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(4,895,300</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(1,390,000</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Total income tax benefit</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(4,507,800</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(972,800</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">For the Years Ended December 31,</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2019</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2018</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%"><font style="font-size: 8pt">Income tax benefit at statutory federal income tax rate</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">(4,444,900</font></td> <td style="width: 1%"><font style="font-size: 8pt">)</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">(1,901,400</font></td> <td style="width: 2%"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">State tax benefit, net of federal benefit</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(75,900</font></td> <td><font style="font-size: 8pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(44,500</font></td> <td><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Non-deductible Merger expenses</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">647,200</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Non-deductible management and acquisition fees</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">7,600</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">325,900</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Other non-deductible expenses</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">5,400</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Total income tax benefit</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(4,507,800</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(972,800</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">December 31,</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2019</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2018</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Deferred tax assets:</font></td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%; padding-left: 0.25in"><font style="font-size: 8pt">Current and prior year tax losses</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">4,980,100</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">4,065,100</font></td> <td style="width: 2%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">Foreign tax credit</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">758,400</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">611,900</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">Deferred interest expense</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">269,800</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">81,800</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">Maintenance reserves</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">470,000</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">3,100,800</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">Deferred derivative losses</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">452,100</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">Deferred maintenance, bad debt allowance and other</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">19,800</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">92,500</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">Alternative minimum tax credit</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">11,400</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">45,500</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.5in"><font style="font-size: 8pt">Deferred tax assets</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">6,961,600</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">7,997,600</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Deferred tax liabilities:</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">Accumulated depreciation on aircraft and aircraft engines</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(8,666,700</font></td> <td><font style="font-size: 8pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(14,773,800</font></td> <td><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.25in"><font style="font-size: 8pt">Deferred income</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(175,600</font></td> <td><font style="font-size: 8pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(320,600</font></td> <td><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Leasehold interest</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(131,400</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(185,400</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.5in"><font style="font-size: 8pt">Net deferred tax liabilities</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(2,012,100</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(7,282,200</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">December 31,</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Reported as:</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2019</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2018</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%"><font style="font-size: 8pt">&#160;&#160;&#160;&#160;&#160;&#160;Deferred tax asset</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">517,700</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">254,900</font></td> <td style="width: 2%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;&#160;&#160;&#160;&#160;Deferred income taxes (liability)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(2,529,800</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(7,537,100</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Net deferred tax liabilities</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(2,012,100</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(7,282,200</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="6" style="text-align: center"><font style="font-size: 8pt">December 31,</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2019</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2018</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%"><font style="font-size: 8pt">Balance at January 1</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">85,400</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="width: 2%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Additions for prior years&#8217; tax positions</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">9,000</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">85,400</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Balance at December 31</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">94,400</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">85,400</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;For the Years Ended</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">December 31,</p></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2019</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">2018</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%"><font style="font-size: 8pt">Net loss</font></td> <td style="width: 1%; padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; width: 9%; text-align: right"><font style="font-size: 8pt">(16,658,500</font></td> <td style="width: 1%; padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td> <td style="width: 1%; padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; width: 9%; text-align: right"><font style="font-size: 8pt">(8,081,200</font></td> <td style="width: 2%; padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Weighted average shares outstanding for the period</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">1,545,884</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">1,449,261</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Basic loss per share</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(10.78</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(5.58</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Diluted loss per share</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(10.78</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(5.58</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td></tr> </table> 2908600 0 4918000 2003000 2915000 2527000 -562000 -1517000 4606000 40000 121000 28000 157000 79000 925000 85000 93000 722000 138000 312000 EX-101.SCH 9 acy-20181231.xsd XBRL TAXONOMY EXTENSION SCHEMA 00000001 - Document - Document and Entity Information link:presentationLink link:calculationLink link:definitionLink 00000002 - Statement - Consolidated Balance Sheets link:presentationLink link:calculationLink link:definitionLink 00000003 - Statement - Consolidated Balance Sheets (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 00000004 - Statement - Consolidated Statements of Operations link:presentationLink link:calculationLink link:definitionLink 00000005 - Statement - Consolidated Statements of Comprehensive Loss link:presentationLink link:calculationLink link:definitionLink 00000006 - Statement - Consolidated Statements of Stockholders' Equity link:presentationLink link:calculationLink link:definitionLink 00000007 - Statement - Consolidated Statements of Cash Flows link:presentationLink link:calculationLink link:definitionLink 00000008 - Statement - Consolidated Statements of Cash Flows (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 00000009 - Disclosure - Organization and Summary of Significant Accounting Policies link:presentationLink link:calculationLink link:definitionLink 00000010 - Disclosure - Aircraft Lease Assets link:presentationLink link:calculationLink link:definitionLink 00000011 - Disclosure - Assets Held for Sale link:presentationLink link:calculationLink link:definitionLink 00000012 - Disclosure - Operating Segments link:presentationLink link:calculationLink link:definitionLink 00000013 - Disclosure - Concentration of Credit Risk link:presentationLink link:calculationLink link:definitionLink 00000014 - Disclosure - Notes Payable and Accrued Interest link:presentationLink link:calculationLink link:definitionLink 00000015 - Disclosure - Derivative Instruments link:presentationLink link:calculationLink link:definitionLink 00000016 - Disclosure - Lease Right of Use Asset and Liability link:presentationLink link:calculationLink link:definitionLink 00000017 - Disclosure - Fair Value Measurements link:presentationLink link:calculationLink link:definitionLink 00000018 - Disclosure - Acquisition of Management Company link:presentationLink link:calculationLink link:definitionLink 00000019 - Disclosure - Commitments and Contingencies link:presentationLink link:calculationLink link:definitionLink 00000020 - Disclosure - Income Taxes link:presentationLink link:calculationLink link:definitionLink 00000021 - Disclosure - Computation of Loss Per Share link:presentationLink link:calculationLink link:definitionLink 00000022 - Disclosure - Related Party Transactions link:presentationLink link:calculationLink link:definitionLink 00000023 - Disclosure - Subsequent Events link:presentationLink link:calculationLink link:definitionLink 00000024 - Disclosure - Organization and Summary of Significant Accounting Policies (Policies) link:presentationLink link:calculationLink link:definitionLink 00000025 - Disclosure - Aircraft Lease Assets (Tables) link:presentationLink link:calculationLink link:definitionLink 00000026 - Disclosure - Operating Segments (Tables) link:presentationLink link:calculationLink link:definitionLink 00000027 - Disclosure - Notes Payable and Accrued Interest (Tables) link:presentationLink link:calculationLink link:definitionLink 00000028 - Disclosure - Derivative Instruments (Tables) link:presentationLink link:calculationLink link:definitionLink 00000029 - Disclosure - Lease Right of Use Asset and Liability (Tables) link:presentationLink link:calculationLink link:definitionLink 00000030 - Disclosure - Fair Value Measurements (Tables) link:presentationLink link:calculationLink link:definitionLink 00000031 - Disclosure - Acquisition of Management Company (Tables) link:presentationLink link:calculationLink link:definitionLink 00000032 - Disclosure - Income Taxes (Tables) link:presentationLink link:calculationLink link:definitionLink 00000033 - Disclosure - Computation of Loss Per Share (Tables) link:presentationLink link:calculationLink link:definitionLink 00000034 - Disclosure - Organization and Summary of Significant Accounting Policies (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000035 - Disclosure - Aircraft Lease Assets (Details) link:presentationLink link:calculationLink link:definitionLink 00000036 - Disclosure - Aircraft Lease Assets (Details 1) link:presentationLink link:calculationLink link:definitionLink 00000037 - Disclosure - Aircraft Lease Assets (Details 2) link:presentationLink link:calculationLink link:definitionLink 00000038 - Disclosure - Aircraft Lease Assets (Details 3) link:presentationLink link:calculationLink link:definitionLink 00000039 - Disclosure - Aircraft Lease Assets (Details 4) link:presentationLink link:calculationLink link:definitionLink 00000040 - Disclosure - Operating Segments (Details) link:presentationLink link:calculationLink link:definitionLink 00000041 - Disclosure - Operating Segments (Details 1) link:presentationLink link:calculationLink link:definitionLink 00000042 - Disclosure - Concentration of Credit Risk (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000043 - Disclosure - Notes Payable and Accrued Interest (Details) link:presentationLink link:calculationLink link:definitionLink 00000044 - Disclosure - Notes Payable and Accrued Interest (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000045 - Disclosure - Derivative Instruments (Details) link:presentationLink link:calculationLink link:definitionLink 00000046 - Disclosure - Derivative Instruments (Details 1) link:presentationLink link:calculationLink link:definitionLink 00000047 - Disclosure - Lease Right of Use Asset and Liability (Details) link:presentationLink link:calculationLink link:definitionLink 00000048 - Disclosure - Lease Right of Use Asset and Liability (Details 1) link:presentationLink link:calculationLink link:definitionLink 00000049 - Disclosure - Lease Right of Use Asset and Liability (Details 2) link:presentationLink link:calculationLink link:definitionLink 00000050 - Disclosure - Fair Value Measurements (Details) link:presentationLink link:calculationLink link:definitionLink 00000051 - Disclosure - Fair Value Measurements (Details 1) link:presentationLink link:calculationLink link:definitionLink 00000052 - Disclosure - Acquisition of Management Company (Details) link:presentationLink link:calculationLink link:definitionLink 00000053 - Disclosure - Income Taxes (Details) link:presentationLink link:calculationLink link:definitionLink 00000054 - Disclosure - Income Taxes (Details 1) link:presentationLink link:calculationLink link:definitionLink 00000055 - Disclosure - Income Taxes (Details 2) link:presentationLink link:calculationLink link:definitionLink 00000056 - Disclosure - Income Taxes (Details 3) link:presentationLink link:calculationLink link:definitionLink 00000057 - Disclosure - Computation of Loss Per Share (Details) link:presentationLink link:calculationLink link:definitionLink 00000058 - Disclosure - Related Party Transactions (Details Narrative) link:presentationLink link:calculationLink link:definitionLink EX-101.CAL 10 acy-20181231_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE EX-101.DEF 11 acy-20181231_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE EX-101.LAB 12 acy-20181231_lab.xml XBRL TAXONOMY EXTENSION LABEL LINKBASE Geographical [Axis] Africa Equity Components [Axis] Common Stock Major Customers [Axis] Customer Three Concentration Risk Benchmark [Axis] Operating Lease Revenue Customer Two Customer One Customer Four Customer Five Finance Lease Revenue Credit Facility [Axis] MUFG Credit Facility Debt Instrument [Axis] Special Purpose Financing Additional Paid-in Capital Treasury Stock Retained Earnings Asia Europe and United Kingdom North America Aircraft Type [Axis] Turboprop Aircraft Engines Regional Jet Aircraft Three Customers UK SPE Financing Nord Term Loans Asset Class [Axis] Money Market Funds Fair Value Hierarchy and NAV [Axis] Level 1 Level 2 Level 3 Derivatives Accumulated Other Comprehensive Loss Customer Six Customer Seven One Customer Hedging Designation [Axis] Designated Interest Rate Hedges Fair Value Other Interest Rate Swap Document and Entity Information [Abstract] Entity Registrant Name Entity Central Index Key Current Fiscal Year End Date Entity Well-known Seasoned Issuer Entity Voluntary Filers Entity Current Reporting Status Entity Shell Company Entity Filer Category Entity Small Business Entity Emerging Growth Company Entity Interactive Data Current Entity Incorporation, State or Country Code Entity File Number Entity Public Float Entity Common Stock, Shares Outstanding Document Type Amendment Flag Document Period End Date Document Fiscal Year Focus Document Fiscal Period Focus Statement of Financial Position [Abstract] ASSETS Cash and cash equivalents Restricted cash Securities Accounts receivable, including deferred rent of $828,000 and $869,600 at December 31, 2019 and December 31, 2018, respectively Finance leases receivable, net of allowance for doubtful accounts of $2,908,600 and $0 at December 31, 2019 and December 31, 2018, respectively Aircraft and aircraft engines held for lease, net of accumulated depreciation of $31,338,700 and $36,675,500 at December 31, 2019 and December 31, 2018, respectively Assets held for sale Property, equipment and furnishings, net of accumulated depreciation of $9,600 and $2,200 at December 31, 2019 and December 31, 2018, respectively Office lease right of use, net of accumulated amortization of $405,400 at December 31, 2019 Favorable office lease acquired, net of accumulated amortization of $61,700 at December 31, 2018 Deferred tax asset Prepaid expenses and other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Accounts payable and accrued expenses Accrued payroll Notes payable and accrued interest, net of unamortized debt issuance costs of $3,825,700 and $674,300 at December 31, 2019 and December 31, 2018, respectively Derivative liability Lease liability Maintenance reserves Accrued maintenance costs Security deposits Unearned revenues Deferred income taxes Income taxes payable Total liabilities Commitments and contingencies (Note 11) Stockholders' equity: Preferred stock, $0.001 par value, 2,000,000 shares authorized, no shares issued and outstanding Common stock, $0.001 par value, 10,000,000 shares authorized, 1,545,884 outstanding at December 31, 2019 and December 31, 2018, respectively Paid-in capital Retained earnings Accumulated other comprehensive income Shareholders equity before treasury stock Treasury stock at cost, 213,332 shares at December 31, 2019 and December 31, 2018 Total stockholders' equity Total liabilities and stockholders' equity Accounts receivable, deferred rent Finance lease receivable, allowance for doubtful accounts Aircraft and aircraft engines held for lease, accumulated depreciation Accumulated depreciation Accumulated amortization, lease right of use Accumulated amortization, favorable lease acquired Unamortized debt issuance costs Preferred stock, par value Preferred stock, authorized Preferred stock, issued Preferred stock, outstanding Common stock, par value Common stock, authorized Common stock, issued Common stock, outstanding Treasury stock Income Statement [Abstract] Revenues and other income: Operating lease revenue Maintenance reserves revenue, net Finance lease revenue Net gain (loss) on disposal of assets Net loss on sales-type finance leases Other income Total income Expenses: Provision for impairment in value of aircraft Depreciation Interest Professional fees, general and administrative and other Bad debt expense Salaries and employee benefits Maintenance Insurance Other taxes Management fees Settlement loss Total expenses Loss before income tax benefit Income tax benefit Net loss Loss per share: Basic Diluted Weighted average shares used in loss per share computations: Basic Diluted Statement of Comprehensive Income [Abstract] Net loss Other comprehensive loss: Unrealized losses on derivative instruments Reclassification of net unrealized losses on derivative instruments to interest expense Tax benefit related to items of other comprehensive loss Other comprehensive loss Total comprehensive loss Statement [Table] Statement [Line Items] Balance (in shares) Balance Acquisition of JHC by AeroCentury (in shares) Acquisition of JHC by AeroCentury Common stock shares held by JHC prior to the acquisition of JHC and retained as treasury stock (in shares) Common stock shares held by JHC prior to the acquisition of JHC and retained as treasury stock Accumulated other comprehensive loss Balance (in shares) Balance Statement of Cash Flows [Abstract] Operating activities: Adjustments to reconcile net loss to net cash provided by operating activities: Net gain on disposal of assets Net loss on sales-type finance leases Non-cash income Depreciation Amortization Provision for bad debts Non-cash interest Deferred income taxes Derivative valuations Changes in operating assets and liabilities: Accounts receivable Finance leases receivable Office lease right of use Favorable office lease acquired Prepaid expenses and other Taxes receivable Accounts payable and accrued expenses Accrued payroll Accrued interest on notes payable Office lease liability Maintenance reserves and accrued costs Security deposits Unearned revenue Income taxes payable Net cash provided by operating activities Investing activities: Proceeds from sale of aircraft and aircraft engines held for lease, net of re-sale fees Proceeds from sale of assets held for sale, net of re-sale fees Purchases of aircraft and aircraft engines Proceeds from sale of securities Acquisition of JHC, net of cash acquired Net cash provided by/(used in) investing activities Financing activities: Issuance of notes payable - MUFG Credit Facility Repayment of notes payable - MUFG Credit Facility Issuance of notes payable - Nord Term Loans Repayment of notes payable - UK LLC SPE Financing Repayment of notes payable - Nord Term Loans Debt issuance costs Settlement of interest rate swap Net cash used in financing activities Net increase/(decrease) in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, beginning of year Cash, cash equivalents and restricted cash, end of year Cash, cash equivalents and restricted cash shown in the statement of cash flows Interest paid Income taxes paid Accounting Policies [Abstract] Organization and Summary of Significant Accounting Policies Aircraft Lease Assets [Abstract] Aircraft Lease Assets Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract] Assets Held for Sale Segment Reporting [Abstract] Operating Segments Risks and Uncertainties [Abstract] Concentration of Credit Risk Debt Disclosure [Abstract] Notes Payable and Accrued Interest Derivative Instruments and Hedging Activities Disclosure [Abstract] Derivative Instruments Leases [Abstract] Lease Right of Use Asset and Liability Fair Value Disclosures [Abstract] Fair Value Measurements Business Combinations [Abstract] Acquisition of Management Company Commitments and Contingencies Disclosure [Abstract] Commitments and Contingencies Income Tax Disclosure [Abstract] Income Taxes Earnings Per Share [Abstract] Computation of Loss Per Share Related Party Transactions [Abstract] Related Party Transactions Subsequent Events [Abstract] Subsequent Events The Company and Basis of Presentation Going Concern Use of Estimates Comprehensive Income/(Loss) Cash and Cash Equivalents Securities Lease Accounting, Favorable Lease Acquired and Lease Right of Use Asset Aircraft Capitalization and Depreciation Property, Equipment and Furnishings Impairment of Long-lived Assets Deferred Financing Costs and Commitment Fees Security Deposits Taxes Revenue Recognition, Accounts Receivable and Allowance for Doubtful Accounts Comprehensive Income Finance Leases Maintenance Reserves and Accrued Maintenance Costs Interest Rate Hedging Recent Accounting Pronouncements Aircraft and aircraft engines held for lease Minimum future lease revenue payments receivable Net investment included in finance leases and direct financing leases receivable Minimum future payments receivable under finance leases Changes in allowance for doubtful accounts Geographic information of operating and finance lease revenue Net book value of aircraft and aircraft engines held for lease Notes payable and accrued interest Amounts in income and other comprehensive income amounts Fair value of swaps Estimated future minimum lease commitments Amortization, finance costs and other expenses Assets (liabilities) measured and recorded at fair value on a recurring basis Assets measured and recorded at fair value on a nonrecurring basis Purchase price allocation Income tax provision Income tax reconciliation Deferred tax assets and liabilities Unrecognized tax benefits Basic and diluted earnings per share Allowance for doubtful accounts Interest earned on finance lease Bad debt allowance Number owned Percentage of net book value 2020 2021 2022 2023 2024 Thereafter Total Gross minimum lease payments receivable Less unearned interest Difference between minimum lease payments receivable and collateral value of leases Finance leases receivable 2020 2021 2022 2023 Total Allowance for doubtful accounts, beginning Additions charged to expense Allowance for doubtful accounts, ending Net book value of aircraft and aircraft engines held for lease Customer [Axis] Lease revenues and receivables from significant customers Receivables Principal Unamortized debt issuance costs Accrued interest Notes payable and accrued interest Unused amount of the credit facility Weighted average interest rate on credit facility Change in value of Swaps Other items Included in interest expense Unrealized loss on derivative instruments Other items Change in value of hedged interest rate swaps Total derivative (liability) 2020 2021 2022 Total lease liability Discount 2019 Fixed rental expense during the year Variable lease expense Total lease expense during the year Assets at fair value Liabilities at fair value Total Assets held for sale Total losses Cash consideration ACY stock consideration Consideration paid in the merger Cash Securities Accounts & note receivable Prepaid expenses Property, equipment and furnishings Office leasehold Accounts payable Accrued vacation Taxes payable Deferred taxes Fair value of assets acquired/(liabilities assumed) Excess of consideration paid over net assets acquired Waiver of JMC margin payable Settlement of payable to JMC Settlement loss on management agreement with JMC Current tax provision: Federal State Foreign Current tax provision Deferred tax benefit: Federal State Foreign Deferred tax benefit Total income tax benefit Income tax benefit at statutory federal income tax rate State tax benefit, net of federal benefit Non-deductible expenses Non-deductible management and acquisition fees Other non-deductible expenses Total income tax benefit Deferred tax assets Current and prior year tax losses Foreign tax credit Deferred interest expense Maintenance reserves Deferred derivative losses Deferred maintenance, bad debt allowance and other Alternative minimum tax credit Deferred tax assets Deferred tax liabilities Accumulated depreciation on aircraft and aircraft engines Deferred income Favorable Lease Net deferred tax liabilities Deferred tax asset Deferred income taxes (liability) Net deferred tax liabilities Balance, beginning Additions for prior years' tax positions Balance, ending Weighted average shares outstanding for the period Basic loss per share Diluted loss per share Mangement fees incurred Acquisition fees The accrued maintenance costs incurred and directly related to services rendered by an entity during the reporting period. Includes the cost of inspections and repairs, materials and routine maintenance costs for all aircraft and engines. Amount after amortization of lease acquired as part of a real property acquisition at below market lease rate with a finite life. Number of shares of the entity that were held by a subsidiary prior to an acquisition and are being held in treasury. Value of shares of the entity that were held by a subsidiary prior to an acquisition and are being held in treasury. Refundable consideration, usually cash, held by the entity pending satisfactory completion of the entity's obligations or pending the closing of a contract. Significant customer that accounts for 10 percent or more of the entity's revenues. Significant customer that accounts for 10 percent or more of the entity's revenues. Significant customer that accounts for 10 percent or more of the entity's revenues. Significant customer that accounts for 10 percent or more of the entity's revenues. Significant customer that accounts for 10 percent or more of the entity's revenues. Amount, before allocation of valuation allowance, of deferred tax asset attributable to deductible temporary differences for interest expense. Amount of the difference between reported income tax expense (benefit) and expected income tax expense (benefit) computed by applying the domestic federal statutory income tax rates to pretax income (loss) from continuing operations attributable to nondeductible management expenses and acquisitions costs. Engine aircraft type. The name of a geographic segment. Refers to customers related to financing lease revenues. Amount of increase (decrease) of consideration received in advance for rent that provides economic benefits in future periods. The increase (decrease) during the period in the amount of maintenance reserves and accrued maintenance costs, which include 1) refundable maintenance payments billed to lessees, which are paid as maintenance is performed or at end of lease, 2) for lessees who pay non-refundable maintenance reserves, estimated maintenance costs accrued at the time a reimbursement claim or sufficient information is received regarding maintenance work performed, and 3) maintenance for work performed for off-lease aircraft. Disclosure of accounting policy for derivative interest rate on hedging instrument. Refers to the name of the entity acquired. The pre-paid amount received for maintenance reserves. Maintenance reserves directly related to inspections and repairs, materials and routine maintenance for all aircraft and engines under lease obligations. The portion of pre-paid maintenance reserves retained by the entity at the end of a finance lease net of the refundable amount of the maintenance reserves returned to the lessee. The number of aircraft or aircraft engines owned and available for lease as of the date of the latest balance sheet. The name of a geographic segment. Refers to customers related to operating lease revenues. Percentage of net book value of all aircraft or aircraft engines combined. Amount of an obligation related to consideration received in advance for rent that provides economic benefits within a future period. Regional jet aircraft type. Disclosure of accounting policy for security deposits, i.e. money paid in advance to protect the provider of a product or service, such as a lessor, against damage or nonpayment by the buyer or tenant (lessee) during the term of the agreement. Refers to special purpose financing. Number of customers for the period. Refers to type of aircraft. Refers to special purpose financing with UK LLC SPE Financing. Amount of accumulated amortization of lessee's right to use underlying asset under operating lease. The cash outflow for a borrowing supported by a written promise to pay an obligation from UK LLC SPE financing. Present value of lease payments not yet received by lessor and amount expected to be derived from underlying asset, following end of lease term guaranteed by lessee or other third party unrelated to lessor, from sales-type and direct financing lease. Amount of unearned interest income from lease receivable of sales-type and direct financing lease. Assets Liabilities Stockholders' Equity before Treasury Stock Treasury Stock, Value Stockholders' Equity Attributable to Parent Liabilities and Equity Revenues Gain (Loss) Related to Litigation Settlement Operating Expenses Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest Weighted Average Number of Shares Outstanding, Diluted Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent Comprehensive Income (Loss), Net of Tax, Attributable to Parent Shares, Outstanding Common Stock, Held by Subsidiary, Retained to Treasury, shares Common Stock, Held by Subsidiary, Retained to Treasury, value Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property Gain (Loss) on Sale of Capital Leases, Net Other Noncash Income Depreciation, Nonproduction Deferred Income Tax Expense (Benefit) Derivative, Gain (Loss) on Derivative, Net Increase (Decrease) in Accounts Receivable Increase (Decrease) in Finance Receivables IncreaseDecreaseInOfficeLeaseRightOfUse FavorableOfficeLeaseAcquired Increase (Decrease) in Prepaid Expense and Other Assets Increase (Decrease) in Income Taxes Receivable Increase (Decrease) in Accounts Payable and Accrued Liabilities Increase (Decrease) in Accrued Salaries Increase (Decrease) in Customer Deposits Increase (Decrease) in Income Taxes Payable Net Cash Provided by (Used in) Operating Activities Payments for Flight Equipment Payments to Acquire Businesses, Net of Cash Acquired Net Cash Provided by (Used in) Investing Activities Repayments of Long-term Lines of Credit Repayments of Notes Payable, Special Financing Repayments of Notes Payable Payments of Debt Issuance Costs SettlementOfInterestRateSwap Net Cash Provided by (Used in) Financing Activities Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect Investment, Policy [Policy Text Block] Operating Leases, Future Minimum Payments Receivable Sales-type and Direct Financing Lease, Unearned Interest Income, Lease Receivable DifferenceBetweenMinimumLeasePaymentsReceivableAndCollateralValueOfLeases Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, Next Twelve Months Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, Two Years Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, Three Years Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, Four Years Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge Lessee, Operating Lease, Liability, Payments, Due Year Two Lessee, Operating Lease, Liability, Payments, Due Year Three Lessee, Operating Lease, Liability, Payments, Due Year Four Lessee, Operating Lease, Liability, Payments, Due Lessee, Operating Lease, Liability, Undiscounted Excess Amount Lease, Cost Financial and Nonfinancial Liabilities, Fair Value Disclosure Assets Held-for-sale, Long Lived, Fair Value Disclosure Business Combination, Consideration Transferred Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesAccruedVacation BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesTaxesPayable Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net Current Income Tax Expense (Benefit) Deferred Federal Income Tax Expense (Benefit) Deferred State and Local Income Tax Expense (Benefit) Deferred Foreign Income Tax Expense (Benefit) Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals Deferred Tax Assets, Gross Deferred Tax Liabilities, Property, Plant and Equipment Deferred Tax Liabilities, Tax Deferred Income Deferred Tax Liabilities, Leasing Arrangements Deferred Tax Assets, Net of Valuation Allowance Deferred Tax Liabilities, Net Unrecognized Tax Benefits EX-101.PRE 13 acy-20181231_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE XML 14 R24.htm IDEA: XBRL DOCUMENT v3.20.1
Organization and Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
The Company and Basis of Presentation

AeroCentury Corp. (“AeroCentury”) is a Delaware corporation incorporated in 1997. AeroCentury together with its consolidated subsidiaries is referred to as the “Company.”

 

In August 2016, AeroCentury formed two wholly-owned subsidiaries, ACY 19002 Limited (“ACY 19002”) and ACY 19003 Limited (“ACY 19003”) for the purpose of acquiring aircraft using a combination of cash and third-party financing (“UK LLC SPE Financing” or “special-purpose financing”) separate from AeroCentury’s credit facility (the “MUFG Credit Facility”). The UK LLC SPE Financing was repaid in full in February 2019 as part of a refinancing involving new non-recourse term loans totaling approximately $44.3 million (“Nord Term Loans”) made to ACY 19002, ACY 19003, and two other newly formed special-purpose subsidiaries of AeroCentury. See Note 6(b) for more information about the Nord Term Loans.

 

On October 1, 2018, AeroCentury acquired JetFleet Holding Corp. (“JHC”) in a reverse triangular merger (“Merger”) for consideration of approximately $2.9 million in cash and 129,217 shares of common stock of AeroCentury, as determined pursuant to an Agreement and Plan of Merger (the “Merger Agreement”) entered into by AeroCentury, JHC and certain other parties in October 2017. JHC is the parent company of JetFleet Management Corp. (“JMC”), which is an integrated aircraft management, marketing and financing business and the manager of the Company’s assets. Upon completion of the Merger, JHC became a wholly-owned subsidiary of the Company, and as a result, JHC's results are included in the Company's consolidated financial statements beginning on October 1, 2018.

 

In November 2018, AeroCentury formed two wholly-owned subsidiaries, ACY SN 15129 LLC (“ACY 15129”) and ACY E-175 LLC (“ACY E-175”), for the purpose of refinancing four of the Company’s aircraft using the Nord Term Loans. Because the Nord Term Loans did not close until February 2019, the subject aircraft remained as collateral under the MUFG Credit Facility as of December 31, 2018, and ACY 15129 and ACY E-175 had no activity in 2018.

 

Financial information for AeroCentury and its consolidated subsidiaries is presented on a consolidated basis in accordance with accounting principles generally accepted in the United States of America (“GAAP”) based upon the continuation of the business as a going concern. All intercompany balances and transactions have been eliminated in consolidation.

 

Going Concern

As discussed in Note 6, the Company was in default under its MUFG Credit Facility as of December 31, 2019. The MUFG Credit Facility lenders (“Credit Facility Lenders”) have the right to exercise any and all remedies for default under the MUFG Credit Facility agreement. Such remedies include, but are not limited to, declaring the entire indebtedness immediately due and payable and, if the Company were unable to repay such accelerated indebtedness (including its obligation in connection with the termination of two interest rate swaps entered into in connection with the MUFG Credit Facility (the “MUFG Swaps”), foreclosing upon the assets of the Company that secure the MUFG Indebtedness, which consist of all of the Company’s assets except for certain assets held in the Company’s single asset special-purpose financing subsidiaries. In addition, as discussed in Note 15, the coronavirus pandemic has led to significant cash flow issues for airlines, including some of the Company’s customers, and some airlines may be unable to timely meet their obligations under their lease obligations with the Company unless government financial support is received, of which there can be no assurance. Any significant nonpayment or late payment of lease payments by a significant lessee or combination of lessees could in turn impose limits on the Company’s ability to fund its ongoing operations as well as cause new defaults under the Company’s debt obligations, which in turn could lead to an immediate acceleration of debt and foreclosure upon the Company’s assets.  As a result of these factors, there is substantial doubt regarding the Company’s ability to continue as a going concern.

 

The Company is currently in negotiations with the Credit Facility Lenders to convert the MUFG Credit Facility into a term loan facility (as converted, the The Company is currently in negotiations with the Credit Facility Lenders to convert the MUFG Credit Facility into a term loan facility (as converted, the “MUFG Term Loan” and, collectively with the MUFG Credit Facility, “MUFG Indebtedness”). The Company has engaged an investment banking advisor to assist in obtaining additional debt or equity financing (the “Recapitalization Plan”) which, if successful, would be used to repay the MUFG Indebtedness.  However, there is no assurance that this will occur.  This is further exacerbated by the significance of the COVID-19 uncertainties discussed in Note 15.

 

The consolidated financial statements presented in this Annual Report on Form 10-K have been prepared on a going concern basis and do not include any adjustments that might arise as a result of uncertainties about the Company’s ability to continue as a going concern.

 

Use of Estimates

The Company’s consolidated financial statements have been prepared in accordance with GAAP. The preparation of consolidated 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 consolidated 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 consolidated financial statements are the residual values and useful lives of the Company’s long-lived assets, the amount and timing of future cash flows associated with each asset that are used to evaluate whether assets are impaired, accrued maintenance costs, accounting for income taxes, the assumptions used to value the Company’s derivative instruments, the valuation of the right of use asset and related lease liability associated with the Company’s office, and the amounts recorded as allowances for doubtful accounts.

 

Comprehensive Income/(Loss)

The Company reflects changes in the fair value of its interest rate swap derivatives that are designated as hedges in other comprehensive income/(loss). Such amounts are reclassified into earnings in the periods in which the hedged transaction occurs or when it is probable that the hedged transactions will no longer occur, and are included in interest expense.

 

Cash and Cash Equivalents

The Company considers highly liquid investments readily convertible into known amounts of cash, with original maturities of 90 days or less from the date of acquisition, as cash equivalents.

 

The Company’s restricted cash is held in an account with the agent for the Company’s MUFG Credit Facility and disbursements from the account are subject to the control and discretion of the agent for payment of principal on the MUFG Credit Facility as well as for the Company’s operating expenses.

 

Securities

At December 31, 2018, the Company owned 121 shares of non-voting preferred stock in a non-public company. The stock, which had a cumulative preferred annual dividend of 10% and a liquidation value of $1,000 per share, was sold during 2019.

 

Lease Accounting, Favorable Lease Acquired and Lease Right of Use Asset

In February 2016, the Financial Accounting Standards Board ("FASB") issued Topic 842 - Leases in the Accounting Standards Codification ("ASC"). Topic 842 substantially modifies lessee accounting for leases, requiring that lessees recognize lease assets and liabilities for leases extending beyond one year. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The Company adopted Topic 842 on January 1, 2019, electing to apply its provisions on the date of adoption and to record the cumulative effect as an adjustment to retained earnings. Lessor accounting under Topic 842 is similar to the prior accounting standard and the Company has elected to apply practical expedients under which the Company will not have to reevaluate whether a contract is a lease, the classification of its existing leases or its capitalized initial direct costs. In addition, the Company, as lessor, has elected the practical expedient to combine lease and non-lease components as one combined component for its leased aircraft for purposes of determining whether that combined component should be accounted for under Topic 606, which establishes rules that affect the amount and timing of revenue recognition for contracts with customers, or Topic 842.

 

The new standard requires a lessor to classify leases as sales-type, finance, or operating. A lease is treated as sales-type if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a finance lease. If the lessor does not convey risks and rewards or control, an operating lease results. As a result of application of the practical expedients, the Company was not required to alter the classification or carrying value of its leased or finance lease assets.

 

In connection with the Company’s acquisition of JHC, as discussed in Note 10, the Company recognized that the lease of its office facilities had rents that were substantially below the market for such office space. Consequently, the Company recorded $925,000 as the value of below-market rents at the October 1, 2018 date of the JHC acquisition, and amortized such amount on a level basis over the remaining term of the office lease, including two one-year bargain renewal options. The Company recorded $61,700 of amortization in 2018.

 

Lessee reporting was changed by the new standard, requiring that the balance sheet reflect a liability for most operating lease obligations as well as a “right of use” asset. As such, in January 2019, the Company was required to record a lease obligation of approximately $610,000 in connection with the lease of its headquarters office, and to increase the capitalized leasehold interest / right of use asset by $610,000, as discussed in Note 8. There was no effect on retained earnings recorded as a result of adoption of the standard. The Company elected the lessee practical expedient to combine the lease and non-lease components.

 

Aircraft Capitalization and Depreciation

The Company’s interests in aircraft and aircraft engines are recorded at cost, which includes acquisition costs. Since inception, the Company has typically purchased only used aircraft and aircraft engines. It is the Company’s policy to hold aircraft for approximately twelve years unless market conditions dictate otherwise. Therefore, depreciation of aircraft is initially computed using the straight-line method over the anticipated holding period to an estimated residual value based on appraisal. For an aircraft engine held for lease as a spare, the Company estimates the length of time that it will hold the aircraft engine based upon estimated usage, repair costs and other factors, and depreciates it to the appraised residual value over such period using the straight-line method.

 

The Company periodically reviews plans for lease or sale of its aircraft and aircraft engines and changes, as appropriate, the remaining expected holding period for such assets. Estimated residual values are reviewed and adjusted periodically, based upon updated estimates obtained from an independent appraiser. Decreases in the fair value of aircraft could affect not only the current value, discussed below, but also the estimated residual value.

 

Assets that are held for sale are not subject to depreciation and are separately classified on the balance sheet. Such assets are carried at the lower of their carrying value or estimated fair values, less costs to sell.

 

Property, Equipment and Furnishings

The Company’s interests in equipment are recorded at cost and depreciated using the straight-line method over five years. The Company’s leasehold improvements are recorded at cost and amortized using the straight-line method over the shorter of the lease term or the estimated useful lives of the respective assets.

 

Impairment of Long-lived Assets

The Company reviews assets for impairment when there has been an event or a change in circumstances indicating that the carrying amount of a long-lived asset may not be recoverable. In addition, the Company routinely reviews all long-lived assets for impairment semi-annually. Recoverability of an asset is measured by comparison of its carrying amount to the future estimated undiscounted cash flows (without interest charges) that the asset is expected to generate. Estimates are based on currently available market data and independent appraisals and are subject to fluctuation from time to time. If these estimated future cash flows are less than the carrying value of an asset at the time of evaluation, any impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value.  Fair value is determined by reference to independent appraisals and other factors considered relevant by management. Significant management judgment is required in the forecasting of future operating results that are used in the preparation of estimated future undiscounted cash flows and, if different conditions prevail in the future, material write-downs may occur.

 

As discussed in Note 9, the Company recorded impairment losses totaling $31.0 million and $3.0 million in 2019 and 2018, respectively, as a result of the Company’s determination that the carrying values for certain aircraft were not recoverable.

 

The 2019 impairment losses consisted of (i) $24.0 million resulting from appraised values for four aircraft that are held for sale, assuming sale in a reasonably short time (“Orderly Liquidation Value”) and (ii) $7.0 million resulting from estimated or actual sales proceeds for five assets held for sale, three of which were sold during 2019.

 

The 2018 impairment losses consisted of (i) $2.7 million resulting from Orderly Liquidation Values for four aircraft held for sale and (ii) $0.3 million resulting from writing a fifth aircraft down to its appraised value.

 

Deferred Financing Costs and Commitment Fees

Costs incurred in connection with debt financing are deferred and amortized over the term of the debt using the effective interest method or, in certain instances where the differences are not material, using the straight-line method. Costs incurred in connection with the MUFG Credit Facility are deferred and amortized using the straight-line method. Commitment fees for unused funds are expensed as incurred.

 

Security Deposits

The Company’s leases are typically structured so that if any event of default occurs under a lease, the Company may apply all or a portion of the lessee’s security deposit to cure such default. If such application of the security deposit is made, the lessee typically is required to replenish and maintain the full amount of the deposit during the remaining lease term. All of the security deposits received by the Company are refundable to the lessee at the end of the lease upon satisfaction of all lease terms.

 

Taxes

As part of the process of preparing the Company’s consolidated financial statements, management estimates income taxes in each of the jurisdictions in which the Company operates. This process involves estimating the Company’s current tax exposure under the most recent tax laws and assessing temporary differences resulting from differing treatment of items for tax and GAAP purposes. These differences result in deferred tax assets and liabilities, which are included in the balance sheet. Management also assesses the likelihood that the Company’s deferred tax assets will be recovered from future taxable income, and, to the extent management believes it is more likely than not that some portion or all of the deferred tax assets will not be realized, the Company establishes a valuation allowance. To the extent the Company establishes a valuation allowance or changes the allowance in a period, the Company reflects the corresponding increase or decrease within the tax provision in the statement of operations. Significant management judgment is required in determining the Company’s future taxable income for purposes of assessing the Company’s ability to realize any benefit from its deferred taxes. After considering the Company’s significant amounts of net deferred tax liabilities which are future reversing taxable temporary differences, the Company has determined that no valuation allowance is required for its deferred tax assets.

 

The Company accrues non-income based sales, use, value added and franchise taxes as other tax expense in the statement of operations.

 

Revenue Recognition, Accounts Receivable and Allowance for Doubtful Accounts

Revenue from leasing of aircraft assets pursuant to operating leases is recognized on a straight-line basis over the terms of the applicable lease agreements. Deferred payments are recorded as accrued rent when the cash rent received is lower than the straight-line revenue recognized. Such receivables decrease over the term of the applicable leases. Interest income is recognized on finance leases based on the interest rate implicit in the lease and the outstanding balance of the lease receivable.

 

Maintenance reserves retained by the Company at lease-end are recognized as maintenance reserves revenue.

 

In instances where collectability is not reasonably assured, the Company recognizes revenue as cash payments are received. The Company estimates and charges to income a provision for bad debts based on its experience with each specific customer, the amount and length of payment arrearages, and its analysis of the lessee’s overall financial condition. If the financial condition of any of the Company’s customers deteriorates, it could result in actual losses exceeding any estimated allowances.

 

The Company had an allowance for doubtful accounts of $2,908,600 and $0 at December 31, 2019 and 2018, respectively.

 

Comprehensive Income

The Company reflects changes in the fair value of its interest rate swap derivatives that are designated as hedges in other comprehensive income/(loss). Such amounts are reclassified into earnings in the periods in which the hedged transaction occurs, and are included in interest expense.

 

Finance Leases

As of December 31, 2019, the Company had three aircraft subject to sales-type finance leases and three aircraft subject to direct financing leases. All six leases contain lessee bargain purchase options at prices substantially below the subject asset’s estimated residual value at the exercise date for the option. Consequently, the Company has classified each of these six leases as finance leases for financial accounting purposes. For such finance leases, the Company reports 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, as a finance lease receivable on its balance sheet, and accrues interest on the balance of the finance lease receivable based on the interest rate inherent in the applicable lease over the term of the lease. For each of the three sales-type finance leases, the Company recognized as a gain or loss the amount equal to (i) the net investment in the sales-type finance lease plus any initial direct costs and lease incentives less (ii) the net book value of the subject aircraft at inception of the applicable lease.

 

The Company recognized interest earned on finance leases in the amount of $852,600 and $1,251,000 in 2019 and 2018, respectively. As a result of payment delinquencies by two customers that lease three of the Company’s aircraft subject to finance leases, the Company recorded a bad debt allowance of $2,957,800 during 2019.

 

Maintenance Reserves and Accrued Maintenance Costs

Maintenance costs under the Company’s triple net leases are generally the responsibility of the lessees. Some 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 and be applied by the Company toward reimbursement of most or all of the cost of the lessees’ performance of certain maintenance obligations under the leases. Such reimbursements reduce the associated maintenance reserve liability.

 

Maintenance reserves are characterized as either refundable or non-refundable depending on their disposition at lease-end. The Company retains non-refundable maintenance reserves at lease-end, even if the lessee has met all of its obligations under the lease, including any return conditions applicable to the leased asset, while refundable reserves are returned to the lessee under such circumstances. Any reserves retained by the Company at lease-end are recorded as revenue at that time.

 

Accrued maintenance costs include (i) maintenance for work performed for off-lease aircraft, which is not related to the release of maintenance reserves received from lessees and which is expensed as incurred, and (ii) lessor maintenance obligations assumed and recognized as a liability upon acquisition of aircraft subject to a lease with such provisions.

 

Interest Rate Hedging

During the first quarter of 2019, the Company entered into certain derivative instruments to mitigate its exposure to variable interest rates under the Term Loans debt and a portion of the MUFG Credit Facility debt. Hedge accounting is applied to such a transaction only if specific criteria have been met, the transaction is deemed to be “highly effective” and the transaction has been designated as a hedge at its inception. Under hedge accounting treatment, generally, the effects of derivative transactions are recorded in earnings for the period in which the hedge transaction affects earnings. A change in value of a hedging instrument is reported as a component of other comprehensive income/(loss) and is reclassified into earnings in the period in which the transaction being hedged affects earnings.

 

If at any time after designation of a cash flow hedge, such as those entered into by the Company, it is no longer probable that the forecasted cash flows will occur, hedge accounting is no longer permitted and a hedge is “dedesignated.” After dedesignation, if it is still considered reasonably possible that the forecasted cash flows will occur, the amount previously recognized in other comprehensive income/(loss) will continue to be reversed as the forecasted transactions affect earnings. However, if after dedesignation it is probable that the forecasted transactions will not occur, amounts deferred in accumulated other comprehensive income/(loss) will be recognized in earnings immediately.

 

As noted in Note 7, in October 2019 the Company became aware that, as a result of certain defaults under its MUFG Credit Facility, certain of the forecasted transactions related to its MUFG Credit Facility interest rate swaps are no longer probable of occurring and, hence, those swaps were dedesignated from hedge accounting at that time. As discussed in Note 15, the two swaps related to the MUFG Credit Facility were terminated in March 2020 and the Company incurred a $3.1 million obligation in connection with such termination.

 

Recent Accounting Pronouncements

ASU 2016-13

 

The FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), in June of 2016 (“ASU 2016-13”). ASU 2016-13 provides that financial assets measured at amortized cost are to be presented as a net amount, reflecting a reduction for a valuation allowance to present the amount expected to be collected (the “current expected credit loss” model of reporting). As such, expected credit losses will be reflected in the carrying value of assets and losses will be recognized before they become probable, as is required under the Company’s present accounting practice. In the case of assets held as available for sale, the amount of the valuation allowance will be limited to an amount that reflects the marketable value of the debt instrument. This amendment to GAAP is effective  in the first quarter of 2023 for calendar-year SEC filers that are smaller reporting companies as of the one-time determination date. Early adoption is permitted beginning in 2019. The Company plans to adopt the new guidance on January 1, 2023, and has not determined the impact of this adoption on its consolidated financial statements.

 

ASU 2019-12

 

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), a new accounting standard update to simplify the accounting for income taxes. The new guidance removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. It also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. This guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and related disclosures.

 

XML 15 R20.htm IDEA: XBRL DOCUMENT v3.20.1
Income Taxes
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Income Taxes

The items comprising the income tax provision are as follows:

 

    For the Years Ended December 31,  
    2019     2018  
Current tax provision:            
Federal   $ (34,100 )   $ -  
State     3,300       3,200  
Foreign     418,300       414,000  
Current tax provision     387,500       417,200  
Deferred tax benefit:                
Federal     (4,553,700 )     (1,270,400 )
State     (78,800 )     (26,100 )
Foreign     (262,800 )     (93,500 )
Deferred tax benefit     (4,895,300 )     (1,390,000 )
Total income tax benefit   $ (4,507,800 )   $ (972,800 )

 

Total income tax benefit differs from the amount that would be provided by applying the statutory federal income tax rate to pretax earnings as illustrated below:

 

    For the Years Ended December 31,  
    2019     2018  
             
Income tax benefit at statutory federal income tax rate   $ (4,444,900 )   $ (1,901,400 )
State tax benefit, net of federal benefit     (75,900 )     (44,500 )
Non-deductible Merger expenses     -       647,200  
Non-deductible management and acquisition fees     7,600       325,900  
Other non-deductible expenses     5,400       -  
Total income tax benefit   $ (4,507,800 )   $ (972,800 )

 

Temporary differences and carry-forwards that give rise to a significant portion of deferred tax assets and liabilities as of December 31, 2019 and 2018 were as follows:

 

    December 31,  
    2019     2018  
Deferred tax assets:            
Current and prior year tax losses   $ 4,980,100     $ 4,065,100  
Foreign tax credit     758,400       611,900  
Deferred interest expense     269,800       81,800  
Maintenance reserves     470,000       3,100,800  
Deferred derivative losses     452,100       -  
Deferred maintenance, bad debt allowance and other     19,800       92,500  
Alternative minimum tax credit     11,400       45,500  
Deferred tax assets     6,961,600       7,997,600  
Deferred tax liabilities:                
Accumulated depreciation on aircraft and aircraft engines     (8,666,700 )     (14,773,800 )
Deferred income     (175,600 )     (320,600 )
       Leasehold interest     (131,400 )     (185,400 )
Net deferred tax liabilities   $ (2,012,100 )   $ (7,282,200 )

 

    December 31,  
Reported as:   2019     2018  
      Deferred tax asset   $ 517,700     $ 254,900  
      Deferred income taxes (liability)     (2,529,800 )     (7,537,100 )
              Net deferred tax liabilities   $ (2,012,100 )   $ (7,282,200 )

 

Consolidated deferred federal income taxes arise from temporary differences between the valuation of assets and liabilities as determined for financial reporting purposes and federal income tax purposes and are measured at enacted tax rates. The Company’s deferred tax items are measured at an effective federal tax rate of 21% as of December 31, 2019 and December 31, 2018. Although realization is not assured, management believes it is more likely than not that the entire deferred federal income tax asset will be realized. The amount of the deferred federal income tax assets considered realizable could be reduced in the near term if estimates of future taxable income are reduced.

 

The Company is required to include on its U.S. income tax return its global intangible low-taxed income (“GILTI”) in excess of an allowable return on its foreign subsidiaries’ tangible assets. Per guidance issued by the FASB, companies can either account for deferred taxes related to GILTI or treat tax arising from GILTI as a period cost. Both are acceptable methods subject to an accounting policy election. On December 31, 2018, the Company finalized its policy and has elected to use the period cost method for GILTI. In 2018 and 2019, the Company did not include any GILTI from its Canadian subsidiary because all the subsidiary’s income was exempt from GILTI.

 

In addition, interest deductions are limited to 30% of the Company’s adjusted taxable income. The Company’s adjusted taxable income is computed without regard to any: (1) item of income, gain, deduction or loss, which is not allocable to its trade or business; (2) business interest income or expense; (3) net operating loss deduction; and (4) depreciation, amortization or depletion for tax years beginning before January 1, 2022, but taking into account depreciation, amortization, and depletion thereafter. The amount of interest deferred under this provision may be carried forward and deducted in years with excess positive adjusted taxable income. The Company had total disallowed interest expense for the years ended December 31, 2019 and 2018, of $583,300 and $380,900, respectively. The cumulative deferred interest expense of $964,200 may be carried forward indefinitely until the Company has excess positive adjusted taxable income against which it can deduct the deferred interest balance.

 

The current year federal operating loss carryovers of approximately $23.6 million will be available to offset 80% of annual taxable income in future years. Approximately $16 million of federal net operating loss carryovers may be carried forward through 2037 and the remaining $7.6 million federal net operating loss carryovers may be carried forward indefinitely. The current year state operating loss carryovers of approximately $385,300 will be available to offset taxable income in the two preceding years and in future years through 2039.  The Company expects to utilize the net operating loss carryovers remaining at December 31, 2019 in future years.

 

During the year ended December 31, 2019, the Company had pre-tax loss from domestic sources of approximately $100,000 and pre-tax loss from foreign sources of approximately $21.1 million. The Company had pre-tax loss from domestic sources of approximately $6.0 million and pre-tax loss from foreign sources of approximately $3.1 million for the year ended December 31, 2018. The foreign tax credit carryover will be available to offset federal tax expense in future years through 2029.

 

The Tax Cuts and Jobs Act of 2017 repealed the corporate alternative minimum tax for tax years beginning after 2017. In addition, beginning in 2018, the Company’s alternative minimum tax credit (“MTC”) was available to offset federal tax expense and is refundable in an amount equal to 50% of the excess MTC for the tax year over the amount of the credit allowable for the year against regular tax liability. In 2021, any remaining MTC will be fully refundable.

 

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2015. At December 31, 2019, the Company had a balance of accrued tax, penalties and interest totaling $94,400 related to unrecognized tax benefits on its non-U.S. operations included in the Company’s accounts and taxes payable. The Company does not anticipate any significant changes to the unrecognized tax benefits within twelve months of this reporting date. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

 

    December 31,  
    2019     2018  
Balance at January 1   $ 85,400       -  
Additions for prior years’ tax positions     9,000       85,400  
Balance at December 31   $ 94,400     $ 85,400  

 

The Company accounts for interest related to uncertain tax positions as interest expense, and for income tax penalties as tax expense.

 

All of the Company's tax years remain open to examination other than as barred in the various jurisdictions by statutes of limitation.

 

XML 17 R28.htm IDEA: XBRL DOCUMENT v3.20.1
Derivative Instruments (Tables)
12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Amounts in income and other comprehensive income amounts
     For the Years Ended December 31,  
    2019     2018  
Change in value of interest rate swaps   $ 255,200     $ -  
Other items     147,400       -  
Included in interest expense   $ 402,600     $ -  
                 
The following amount was included in other comprehensive income/(loss), before tax            
                 
Unrealized loss on derivative instruments   $ (1,932,100 )   $ -  
Other items     186,400       -  
Change in value of hedged interest rate swaps   $ (1,745,700 )   $ -  
Fair value of swaps
Designated interest rate hedges fair value   $ (570,900 )
Other interest rate swaps     (1,253,600 )
Total derivative (liability)   $ (1,824,500 )
XML 18 R49.htm IDEA: XBRL DOCUMENT v3.20.1
Lease Right of Use Asset and Liability (Details 2)
12 Months Ended
Dec. 31, 2019
USD ($)
Leases [Abstract]  
Fixed rental expense during the year $ 443,500
Variable lease expense 116,000
Total lease expense during the year $ 559,500
XML 19 R41.htm IDEA: XBRL DOCUMENT v3.20.1
Operating Segments (Details 1) - USD ($)
Dec. 31, 2019
Dec. 31, 2018
Net book value of aircraft and aircraft engines held for lease $ 108,368,600 $ 184,019,900
Europe and United Kingdom    
Net book value of aircraft and aircraft engines held for lease 44,569,000 110,069,000
North America    
Net book value of aircraft and aircraft engines held for lease 63,799,600 68,485,400
Asia    
Net book value of aircraft and aircraft engines held for lease $ 0 $ 5,465,500
XML 20 R45.htm IDEA: XBRL DOCUMENT v3.20.1
Derivative Instruments (Details) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Change in value of Swaps $ 255,200 $ 0
Other items 147,400 0
Included in interest expense 402,600  
Unrealized loss on derivative instruments (1,932,100) 0
Other items 186,400 0
Change in value of hedged interest rate swaps $ (1,745,700) $ 0
XML 21 R6.htm IDEA: XBRL DOCUMENT v3.20.1
Consolidated Statements of Stockholders' Equity - USD ($)
Common Stock
Additional Paid-in Capital
Retained Earnings
Treasury Stock
Accumulated Other Comprehensive Loss
Total
Balance (in shares) at Dec. 31, 2017 1,416,699          
Balance at Dec. 31, 2017 $ 1,600 $ 14,780,100 $ 35,621,800 $ (3,036,800) $ 0 $ 47,366,700
Acquisition of JHC by AeroCentury (in shares) 129,217          
Acquisition of JHC by AeroCentury $ 200 2,002,700       2,002,900
Common stock shares held by JHC prior to the acquisition of JHC and retained as treasury stock (in shares) (32)          
Common stock shares held by JHC prior to the acquisition of JHC and retained as treasury stock       (500)   (500)
Net loss (8,081,200) (8,081,200)
Accumulated other comprehensive loss           0
Balance (in shares) at Dec. 31, 2018 1,545,884          
Balance at Dec. 31, 2018 $ 1,800 16,782,800 27,540,600 (3,037,300) 0 41,287,900
Net loss (16,658,500) (16,658,500)
Accumulated other comprehensive loss         (1,370,800) (1,370,800)
Balance (in shares) at Dec. 31, 2019 1,545,884          
Balance at Dec. 31, 2019 $ 1,800 $ 16,782,800 $ 10,882,100 $ (3,037,300) $ (1,370,800) $ 23,258,600
XML 22 R54.htm IDEA: XBRL DOCUMENT v3.20.1
Income Taxes (Details 1) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Income Tax Disclosure [Abstract]    
Income tax benefit at statutory federal income tax rate $ (4,444,900) $ (1,901,400)
State tax benefit, net of federal benefit (75,900) (44,500)
Non-deductible expenses 0 647,200
Non-deductible management and acquisition fees 7,600 325,900
Other non-deductible expenses 5,400 0
Total income tax benefit $ (4,507,800) $ (972,800)
XML 23 R50.htm IDEA: XBRL DOCUMENT v3.20.1
Fair Value Measurements (Details) - USD ($)
Dec. 31, 2019
Dec. 31, 2018
Total $ (1,824,100) $ 656,400
Level 1    
Total 400 656,400
Level 2    
Total (1,824,500) 0
Level 3    
Total 0 0
Money Market Funds    
Assets at fair value 400 656,400
Money Market Funds | Level 1    
Assets at fair value 400 656,400
Money Market Funds | Level 2    
Assets at fair value 0 0
Money Market Funds | Level 3    
Assets at fair value 0 0
Derivatives    
Liabilities at fair value (1,824,500) 0
Derivatives | Level 1    
Liabilities at fair value 0 0
Derivatives | Level 2    
Liabilities at fair value (1,824,500) 0
Derivatives | Level 3    
Liabilities at fair value $ 0 $ 0
XML 24 R2.htm IDEA: XBRL DOCUMENT v3.20.1
Consolidated Balance Sheets - USD ($)
Dec. 31, 2019
Dec. 31, 2018
ASSETS    
Cash and cash equivalents $ 2,350,200 $ 1,542,500
Restricted cash 1,076,900 0
Securities 0 121,000
Accounts receivable, including deferred rent of $828,000 and $869,600 at December 31, 2019 and December 31, 2018, respectively 1,139,700 3,967,200
Finance leases receivable, net of allowance for doubtful accounts of $2,908,600 and $0 at December 31, 2019 and December 31, 2018, respectively 8,802,100 15,250,900
Aircraft and aircraft engines held for lease, net of accumulated depreciation of $31,338,700 and $36,675,500 at December 31, 2019 and December 31, 2018, respectively 108,368,600 184,019,900
Assets held for sale 26,036,600 10,223,300
Property, equipment and furnishings, net of accumulated depreciation of $9,600 and $2,200 at December 31, 2019 and December 31, 2018, respectively 62,900 69,100
Office lease right of use, net of accumulated amortization of $405,400 at December 31, 2019 948,300 0
Favorable office lease acquired, net of accumulated amortization of $61,700 at December 31, 2018 0 863,300
Deferred tax asset 517,700 254,900
Prepaid expenses and other assets 292,800 840,100
Total assets 149,595,800 217,152,200
Liabilities:    
Accounts payable and accrued expenses 736,000 1,025,600
Accrued payroll 164,200 78,600
Notes payable and accrued interest, net of unamortized debt issuance costs of $3,825,700 and $674,300 at December 31, 2019 and December 31, 2018, respectively 111,638,400 131,092,200
Derivative liability 1,824,500 0
Lease liability 336,400 0
Maintenance reserves 4,413,100 28,527,500
Accrued maintenance costs 446,300 463,300
Security deposits 1,034,300 3,367,800
Unearned revenues 3,039,200 3,274,800
Deferred income taxes 2,529,800 7,537,100
Income taxes payable 175,000 497,400
Total liabilities 126,337,200 175,864,300
Commitments and contingencies (Note 11)
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, 1,545,884 outstanding at December 31, 2019 and December 31, 2018, respectively 1,800 1,800
Paid-in capital 16,782,800 16,782,800
Retained earnings 10,882,100 27,540,600
Accumulated other comprehensive income (1,370,800) 0
Shareholders equity before treasury stock 26,295,900 44,325,200
Treasury stock at cost, 213,332 shares at December 31, 2019 and December 31, 2018 (3,037,300) (3,037,300)
Total stockholders' equity 23,258,600 41,287,900
Total liabilities and stockholders' equity $ 149,595,800 $ 217,152,200
ZIP 25 0001654954-20-003499-xbrl.zip IDEA: XBRL DOCUMENT begin 644 0001654954-20-003499-xbrl.zip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htm IDEA: XBRL DOCUMENT v3.20.1
Related Party Transactions (Details Narrative) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Related Party Transactions [Abstract]    
Mangement fees incurred $ 0 $ 4,482,800
Acquisition fees $ 0 $ 494,400

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

XML 28 R16.htm IDEA: XBRL DOCUMENT v3.20.1
Lease Right of Use Asset and Liability
12 Months Ended
Dec. 31, 2019
Leases [Abstract]  
Lease Right of Use Asset and Liability

The Company is a lessee under a lease of the office space it occupies in Burlingame, California, which expires in June of 2020, but also provides for two, successive one-year lease extension options for amounts that are substantially below the market rent for the property. The lease provides for monthly rental payments according to a fixed schedule of increasing rent payments. As a result of the below-market extension options, the Company determined that it was reasonably certain that it would extend the lease and has, therefore, included such extended term in its calculation of the right of use asset (“ROU Asset”) and lease liability recognized in connection with the lease.

 

In addition to a fixed monthly payment schedule, the office lease also includes an obligation for the Company to make future variable payments for certain common areas and building operating and lessor costs, which have been and will be recognized as expense in the periods in which they are incurred. As a direct pass-through of applicable expense, such costs have not been allocated as a component of the lease.

 

The ROU Asset includes the amortized value of both the amount of liability recognized at January 1, 2019 upon adoption of Topic 842 and the amount attributable to the below market lease component recognized upon acquisition of JHC on October 1, 2018.

 

The lease liability associated with the office lease was calculated by discounting the fixed, minimum lease payments over the remaining lease term, including the below-market extension periods, at a discount rate of 7.25%, which represents the Company’s estimate of the incremental borrowing rate for a collateralized loan for the type of underlying asset that was the subject of the office lease at the time the lease liability was evaluated. The Company estimates that the maturities of operating lease base rent of its office space were as follows as of December 31, 2019:

 

   

December 31,

2019

 
2020   $ 145,000  
2021     147,200  
2022     74,700  
      366,900  
Discount     (30,500 )
Lease liability at December 31, 2019   $ 336,400  

 

At December 31, 2018, the Company estimated that the future minimum lease commitments for its office space, including both the base rent and operating expenses, and storage facility were as follows:

 

   

December 31,

2018

 
2019   $ 193,500  
2020     196,400  
2021     199,300  
2022     101,100  
     690,300  

 

During the year ended December 31, 2019, the Company recognized amortization, finance costs and other expense related to the office lease as follows:

 

Fixed rental expense during the year   $ 443,500  
Variable lease expense     116,000  
Total lease expense during the year   $ 559,500  

 

The Company expects that the variable lease expense will total approximately $7,500 per month through the end of the lease, including the two extension periods.

 

XML 29 R12.htm IDEA: XBRL DOCUMENT v3.20.1
Operating Segments
12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Operating Segments

The Company operates in one business segment, the leasing of regional aircraft to foreign and domestic regional airlines, and therefore does not present separate segment information for lines of business.

 

Approximately 30% and 28% of the Company’s operating lease revenue was derived from lessees domiciled in the United States during 2019 and 2018, respectively. All revenues relating to aircraft leased and operated internationally, with the exception of rent payable in Euros for two of the Company’s aircraft, are denominated and payable in U.S. dollars.

 

The tables below set forth geographic information about the Company’s operating lease revenue and net book value for leased aircraft and aircraft equipment, grouped by domicile of the lessee: 

 

    For the Years Ended December 31,  
Operating Lease Revenue   2019     2018  
             
Europe and United Kingdom   $ 15,174,900     $ 16,258,800  
North America     10,119,100       10,119,100  
Asia     315,000       1,259,600  
    $ 25,609,000     $ 27,637,500  

 

    December 31,  
Net Book Value of Aircraft and Aircraft Engines Held for Lease   2019     2018  
             
Europe and United Kingdom   $ 44,569,000     $ 110,069,000  
North America     63,799,600       68,485,400  
Asia     -       5,465,500  
    $ 108,368,600     $ 184,019,900  

 

The table below sets forth geographic information about the Company’s finance lease revenue, grouped by domicile of the lessee: 

 

    For the Years Ended December 31,  
Finance Lease Revenue   2019     2018  
             
Africa   $ 487,000     $ 832,800  
Europe and United Kingdom     365,600       418,200  
    $ 852,600     $ 1,251,000  

 

XML 30 report.css IDEA: XBRL DOCUMENT /* Updated 2009-11-04 */ /* v2.2.0.24 */ /* DefRef Styles */ ..report table.authRefData{ background-color: #def; border: 2px solid #2F4497; font-size: 1em; position: absolute; } ..report table.authRefData a { display: block; font-weight: bold; } ..report table.authRefData p { margin-top: 0px; } ..report table.authRefData .hide { background-color: #2F4497; padding: 1px 3px 0px 0px; text-align: right; } ..report table.authRefData .hide a:hover { background-color: #2F4497; } ..report table.authRefData .body { height: 150px; overflow: auto; width: 400px; } ..report table.authRefData table{ font-size: 1em; } /* Report Styles */ ..pl a, .pl a:visited { color: black; text-decoration: none; } /* table */ ..report { background-color: white; border: 2px solid #acf; clear: both; color: black; font: normal 8pt Helvetica, Arial, san-serif; margin-bottom: 2em; } ..report hr { border: 1px solid #acf; } /* Top labels */ ..report th { background-color: #acf; color: black; font-weight: bold; text-align: center; } ..report th.void { background-color: transparent; color: #000000; font: bold 10pt Helvetica, Arial, san-serif; text-align: left; } ..report .pl { text-align: left; vertical-align: top; white-space: normal; width: 200px; white-space: normal; /* word-wrap: break-word; */ } ..report td.pl a.a { cursor: pointer; display: block; width: 200px; overflow: hidden; } ..report td.pl div.a { width: 200px; } ..report td.pl a:hover { background-color: #ffc; } /* Header rows... */ ..report tr.rh { background-color: #acf; color: black; font-weight: bold; } /* Calendars... */ ..report .rc { background-color: #f0f0f0; } /* Even rows... */ ..report .re, .report .reu { background-color: #def; } ..report .reu td { border-bottom: 1px solid black; } /* Odd rows... */ ..report .ro, .report .rou { background-color: white; } ..report .rou td { border-bottom: 1px solid black; } ..report .rou table td, .report .reu table td { border-bottom: 0px solid black; } /* styles for footnote marker */ ..report .fn { white-space: nowrap; } /* styles for numeric types */ ..report .num, .report .nump { text-align: right; white-space: nowrap; } ..report .nump { padding-left: 2em; } ..report .nump { padding: 0px 0.4em 0px 2em; } /* styles for text types */ ..report .text { text-align: left; white-space: normal; } ..report .text .big { margin-bottom: 1em; width: 17em; } ..report .text .more { display: none; } ..report .text .note { font-style: italic; font-weight: bold; } ..report .text .small { width: 10em; } ..report sup { font-style: italic; } ..report .outerFootnotes { font-size: 1em; } XML 31 R39.htm IDEA: XBRL DOCUMENT v3.20.1
Aircraft Lease Assets (Details 4) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Aircraft Lease Assets [Abstract]    
Allowance for doubtful accounts, beginning $ 0  
Additions charged to expense 2,908,600 $ 0
Allowance for doubtful accounts, ending $ 2,908,600 $ 0
XML 32 R31.htm IDEA: XBRL DOCUMENT v3.20.1
Acquisition of Management Company (Tables)
12 Months Ended
Dec. 31, 2019
Business Combinations [Abstract]  
Purchase price allocation
Consideration paid in the merger:  
  Cash consideration $ 2,915,000
  ACY stock consideration 2,003,000
  4,918,000
   
Fair value of assets acquired/(liabilities assumed):  
  Cash 40,000
  Securities 121,000
  Accounts & note receivable 28,000
  Prepaid expenses 157,000
  Property, equipment and furnishings 79,000
  Office leasehold 925,000
  Accounts payable  (85,000)
  Accrued vacation  (93,000)
  Taxes payable  (722,000)
  Deferred taxes  (138,000)
  312,000
   
Excess of consideration paid over net assets acquired 4,606,000
   
Waiver of JMC Margin payable  (1,517,000)
Settlement of payable to JMC (562,000)
   
Settlement Loss on Management Agreement with JMC $ 2,527,000
XML 33 R35.htm IDEA: XBRL DOCUMENT v3.20.1
Aircraft Lease Assets (Details) - Unit
Dec. 31, 2019
Dec. 31, 2018
Regional Jet Aircraft    
Number owned 9 13
Percentage of net book value 80.00% 81.00%
Turboprop Aircraft    
Number owned 2 4
Percentage of net book value 20.00% 18.00%
Engines    
Number owned 0 1
Percentage of net book value 0.00% 1.00%
XML 34 R55.htm IDEA: XBRL DOCUMENT v3.20.1
Income Taxes (Details 2) - USD ($)
Dec. 31, 2019
Dec. 31, 2018
Deferred tax assets    
Current and prior year tax losses $ 4,980,100 $ 4,065,100
Foreign tax credit 758,400 611,900
Deferred interest expense 269,800 81,800
Maintenance reserves 470,000 3,100,800
Deferred derivative losses 452,100 0
Deferred maintenance, bad debt allowance and other 19,800 92,500
Alternative minimum tax credit 11,400 45,500
Deferred tax assets 6,961,600 7,997,600
Deferred tax liabilities    
Accumulated depreciation on aircraft and aircraft engines (8,666,700) (14,773,800)
Deferred income (175,600) (320,600)
Favorable Lease (131,400) (185,400)
Net deferred tax liabilities (2,012,100) (7,282,200)
Deferred tax asset 517,700 254,900
Deferred income taxes (liability) (2,529,800) (7,537,100)
Net deferred tax liabilities $ (2,012,100) $ (7,282,200)
XML 35 R7.htm IDEA: XBRL DOCUMENT v3.20.1
Consolidated Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Operating activities:    
Net loss $ (16,658,500) $ (8,081,200)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Net gain on disposal of assets (326,900) 3,408,700
Net loss on sales-type finance leases 170,600 0
Non-cash income 0 (42,700)
Depreciation 11,587,500 12,637,100
Amortization 0 61,700
Provision for impairment in value of aircraft 31,007,400 2,971,500
Provision for bad debts 2,908,600 0
Non-cash interest 3,376,300 1,615,500
Settlement loss 0 2,527,000
Deferred income taxes (4,895,200) (1,390,000)
Derivative valuations 154,000 0
Changes in operating assets and liabilities:    
Accounts receivable (5,962,800) (537,400)
Finance leases receivable 263,400 (133,100)
Office lease right of use (948,300) 0
Favorable office lease acquired 863,300 0
Prepaid expenses and other 551,700 (457,800)
Taxes receivable (5,600) 22,500
Accounts payable and accrued expenses (277,300) 1,802,700
Accrued payroll 85,600 (14,800)
Accrued interest on notes payable 310,200 (147,100)
Office lease liability 336,400 0
Maintenance reserves and accrued costs (14,016,200) 3,552,600
Security deposits 0 (4,100)
Unearned revenue (32,100) 827,300
Income taxes payable (322,400) (677,200)
Net cash provided by operating activities 8,169,700 17,941,200
Investing activities:    
Proceeds from sale of aircraft and aircraft engines held for lease, net of re-sale fees 1,702,400 11,688,400
Proceeds from sale of assets held for sale, net of re-sale fees 15,107,000 4,945,200
Purchases of aircraft and aircraft engines 0 (22,844,300)
Proceeds from sale of securities 121,000 0
Acquisition of JHC, net of cash acquired 0 (2,875,100)
Net cash provided by/(used in) investing activities 16,930,400 (9,085,800)
Financing activities:    
Issuance of notes payable - MUFG Credit Facility 5,984,100 21,000,000
Repayment of notes payable - MUFG Credit Facility (44,300,000) (32,600,000)
Issuance of notes payable - Nord Term Loans 44,310,000 0
Repayment of notes payable - UK LLC SPE Financing (9,211,100) (4,300,700)
Repayment of notes payable - Nord Term Loans (13,395,600) 0
Debt issuance costs (6,527,700) (70,000)
Settlement of interest rate swap (75,200) 0
Net cash used in financing activities (23,215,500) (15,970,700)
Net increase/(decrease) in cash, cash equivalents and restricted cash 1,884,600 (7,115,300)
Cash, cash equivalents and restricted cash, beginning of year 1,542,500 8,657,800
Cash, cash equivalents and restricted cash, end of year $ 3,427,100 $ 1,542,500
XML 36 R3.htm IDEA: XBRL DOCUMENT v3.20.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
Dec. 31, 2019
Dec. 31, 2018
ASSETS    
Accounts receivable, deferred rent $ 828,000 $ 869,600
Finance lease receivable, allowance for doubtful accounts 2,908,600 0
Aircraft and aircraft engines held for lease, accumulated depreciation 31,338,700 36,675,500
Accumulated depreciation 9,600 2,200
Accumulated amortization, lease right of use 405,400 0
Accumulated amortization, favorable lease acquired 0 61,700
Liabilities:    
Unamortized debt issuance costs $ 3,825,700 $ 674,300
Stockholders' equity:    
Preferred stock, par value $ .001 $ 0.001
Preferred stock, authorized 2,000,000 2,000,000
Preferred stock, issued 0 0
Preferred stock, outstanding 0 0
Common stock, par value $ .001 $ 0.001
Common stock, authorized 10,000,000 10,000,000
Common stock, issued 1,545,884 1,545,884
Common stock, outstanding 1,545,884 1,545,884
Treasury stock 213,332 213,332
XML 37 R51.htm IDEA: XBRL DOCUMENT v3.20.1
Fair Value Measurements (Details 1) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Assets held for sale $ 25,880,700 $ 5,800,000
Total losses 25,656,100 837,500
Level 1    
Assets held for sale 0 0
Level 2    
Assets held for sale 0 0
Level 3    
Assets held for sale $ 25,880,700 $ 5,800,000
XML 38 R17.htm IDEA: XBRL DOCUMENT v3.20.1
Fair Value Measurements
12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
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

 

As of December 31, 2019, the Company measured the fair value of its interest rate swaps of $80,914,500 (notional amount) based on Level 2 inputs, due to the usage of inputs that can be corroborated by observable market data. The Company estimates the fair value of derivative instruments using a discounted cash flow technique and has used creditworthiness inputs that corroborate observable market data evaluating the Company’s and counterparties’ risk of non-performance. The interest rate swaps had a net fair value liability of $1,824,500 as of December 31, 2019. In the year ended December 31, 2019, $255,200 was realized through the income statement as an increase in interest expense.

 

The following table shows, by level within the fair value hierarchy, the Company’s assets and liabilities at fair value on a recurring basis as of December 31, 2019 and December 31, 2018: 

 

    December 31, 2019     December 31, 2018  
    Total     Level 1     Level 2     Level 3     Total     Level 1     Level 2     Level 3  
Money market funds   $ 400     $ 400     $ -     $ -     $ 656,400     $ 656,400     $ -     $ -  
Derivatives     (1,824,500 )     -       (1,824,500 )     -       -       -       -       -  
Total   $ (1,824,100 )   $ 400     $ (1,824,500 )   $ -     $ 656,400     $ 656,400     $ -     $ -  

 

There were no transfers between Level 1 and Level 2 during 2019 or 2018, and there were no transfers into or out of Level 3 during the same periods.

 

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 and these and other assets held for sale, by reference to independent appraisals, quoted market prices (e.g., offers to purchase) and other factors. These are considered Level 3 within the fair value hierarchy. 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 asset’s carrying value exceeds its fair value. The Company recorded impairment charges totaling $31,007,400 (of which $5,351,300 was related to assets sold in 2019) on nine of its assets held for sale in 2019, which had an aggregate fair value of $25,880,700. The impairment charges were comprised of (i) $7,031,300 based on estimated sales amounts and (ii) $23,976,100 based on third-party appraisals. The Company recorded impairment charges totaling $2,673,300 on four of its aircraft held for sale in 2018, which had an aggregate fair value of $9,900,000. The Company also recorded an impairment charge of $298,200 on one of its aircraft held for lease in 2018.

 

As discussed in Note 8, in December 2019, the Company adjusted its ROU Asset valuation and lease liability balance to reflect a reduction in lease space and rent effective January 1, 2020. The effects of the adjustment were reductions of $119,100 to the ROU asset and lease liability balance.

 

The following table shows, by level within the fair value hierarchy, the Company’s assets at fair value on a nonrecurring basis as of December 31, 2019 and December 31, 2018: 

 

    Assets Written Down to Fair Value   Total Losses
    December 31, 2019   December 31, 2018   For the Years Ended December 31,
        Level       Level    
      Total       1       2       3       Total       1       2       3       2019       2018  
Assets held for sale   $ 25,880,700     $ -     $ -     $ 25,880,700     $ 5,800,000     $ -     $ -     $ 5,800,000     $ 25,656,100     $ 837,500  

 

There were no transfers between Level 1 and Level 2 in 2019, and there were no transfers into or out of Level 3 during the same periods.

 

Fair Value of Other Financial Instruments

 

The Company’s financial instruments, other than cash and cash equivalents, consist principally of finance leases receivable, amounts borrowed under the MUFG Credit Facility, notes payable under special-purpose financing and its derivative instruments. The fair value of accounts receivable, accounts payable and the Company’s maintenance reserves and accrued maintenance costs approximates the carrying value of these financial instruments because of their short-term maturity. The fair value of finance lease receivables approximates the carrying value as discussed in Note 1(p). The fair value of the Company’s derivative instruments is discussed in Note 7 and in this note above in “Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis.”

 

Borrowings under the Company’s MUFG 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 under the MUFG Credit Facility approximates current market rates for such indebtedness at the dates of the consolidated balance sheets, and therefore that the outstanding principal and accrued interest of $84,460,300 and $122,539,300 at December 31, 2019 and December 31, 2018, respectively, approximate their fair values on such dates. The fair value of the Company’s outstanding balance of its MUFG Credit Facility is categorized as a Level 3 input under the GAAP fair value hierarchy.

 

Before their repayment in February 2019 in connection with the Term Loans refinancing, the amounts payable under the UK LLC SPE Financing were payable through the fourth quarter of 2020 and bore a fixed rate of interest. As discussed above, during February 2019, the UK LLC SPE Financing and four assets that previously served as collateral under the MUFG Credit Facility were refinanced using the Term Loans. The Company believes the effective interest rate under the special-purpose financings approximates current market rates for such indebtedness at the dates of the consolidated balance sheets, and therefore that the outstanding principal and accrued interest of $31,003,800 and $9,227,200 approximate their fair values at December 31, 2019 and December 31, 2018, respectively. Such fair value is categorized as a Level 3 input under the GAAP fair value hierarchy.

 

There were no transfers in or out of assets or liabilities measured at fair value under Level 3 during 2019 and 2018.

 

 

XML 39 R13.htm IDEA: XBRL DOCUMENT v3.20.1
Concentration of Credit Risk
12 Months Ended
Dec. 31, 2019
Risks and Uncertainties [Abstract]  
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, 2019, the Company had seven significant customers, five of which individually accounted for 23%, 23%, 16%, 14% and 10%, respectively, of operating lease revenue and two of which accounted for 57% and 38%, respectively, of finance lease revenue. For the year ended December 31, 2018, the Company had five significant customers, four of which individually accounted for 30%, 21%, 15% and 13%, respectively, of operating lease revenue and one of which accounted for 67% of finance lease revenue.

 

At December 31, 2019, the Company had receivables from one customer totaling $828,000 related to rents for 2019, representing 74% of the Company’s total accounts receivable, all of which was for accrued rent that is due in March 2020. At December 31, 2018, the Company had receivables from three customers totaling $3,413,500, representing 87% of the Company’s total accounts receivable.

 

XML 40 R30.htm IDEA: XBRL DOCUMENT v3.20.1
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Assets (liabilities) measured and recorded at fair value on a recurring basis
    December 31, 2019     December 31, 2018  
    Total     Level 1     Level 2     Level 3     Total     Level 1     Level 2     Level 3  
Money market funds   $ 400     $ 400     $ -     $ -     $ 656,400     $ 656,400     $ -     $ -  
Derivatives     (1,824,500 )     -       (1,824,500 )     -       -       -       -       -  
Total   $ (1,824,100 )   $ 400     $ (1,824,500 )   $ -     $ 656,400     $ 656,400     $ -     $ -  
Assets measured and recorded at fair value on a nonrecurring basis
   Assets Written Down to Fair Value  Total Losses
   December 31, 2019  December 31, 2018  For the Years Ended December 31,
      Level     Level   
    Total    1    2    3    Total    1    2    3    2019    2018 
Assets held for sale  $25,880,700   $-   $-   $25,880,700   $5,800,000   $-   $-   $5,800,000   $25,656,100   $837,500 
XML 41 R34.htm IDEA: XBRL DOCUMENT v3.20.1
Organization and Summary of Significant Accounting Policies (Details Narrative) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Accounting Policies [Abstract]    
Allowance for doubtful accounts $ 2,908,600 $ 0
Interest earned on finance lease 852,600 1,251,000
Bad debt allowance $ 2,908,600 $ 0
XML 42 R38.htm IDEA: XBRL DOCUMENT v3.20.1
Aircraft Lease Assets (Details 3)
Dec. 31, 2019
USD ($)
Aircraft Lease Assets [Abstract]  
2020 $ 3,817,200
2021 2,608,200
2022 2,114,000
2023 557,000
Total $ 9,096,400
XML 43 R29.htm IDEA: XBRL DOCUMENT v3.20.1
Lease Right of Use Asset and Liability (Tables)
12 Months Ended
Dec. 31, 2019
Leases [Abstract]  
Estimated future minimum lease commitments
   

December 31,

2019

 
2020   $ 145,000  
2021     147,200  
2022     74,700  
      366,900  
Discount     (30,500 )
Lease liability at December 31, 2019   $ 336,400  

 

   

December 31,

2018

 
2019   $ 193,500  
2020     196,400  
2021     199,300  
2022     101,100  
     690,300  

 

Amortization, finance costs and other expenses
Fixed rental expense during the year   $ 443,500  
Variable lease expense     116,000  
Total lease expense during the year   $ 559,500  
XML 44 R25.htm IDEA: XBRL DOCUMENT v3.20.1
Aircraft Lease Assets (Tables)
12 Months Ended
Dec. 31, 2019
Aircraft Lease Assets [Abstract]  
Aircraft and aircraft engines held for lease
    December 31, 2019     December 31, 2018  

Type

 

Number

Owned

    % of net book value    

Number

owned

    % of net book value  
Regional jet aircraft     9       80 %     13       81 %
Turboprop aircraft     2       20 %     4       18 %
Engines     -       - %     1       1 %
Minimum future lease revenue payments receivable
Years ending December 31      
       
2020   $ 17,650,900  
2021     10,392,000  
2022     8,639,600  
2023     8,639,600  
2024     6,826,100  
Thereafter     1,683,300  
    $ 53,831,500  
Net investment included in finance leases and direct financing leases receivable
   

December 31,

2019

   

December 31,

2018

 
Gross minimum lease payments receivable   $ 9,096,400     $ 17,107,100  
Less unearned interest     (286,600 )     (1,856,200 )
Difference between minimum lease payments receivable and collateral value of leases     (7,700 )     -  
Finance leases receivable   $ 8,802,100     $ 15,250,900  
Minimum future payments receivable under finance leases
Years ending December 31      
       
2020   $ 3,817,200  
2021     2,608,200  
2022     2,114,000  
2023     557,000  
    $ 9,096,400  
Changes in allowance for doubtful accounts
Balance, December 31, 2018   $ -  
Additions charged to expense     2,908,600  
Balance, December 31, 2019   $ 2,908,600  
XML 45 R21.htm IDEA: XBRL DOCUMENT v3.20.1
Computation of Loss Per Share
12 Months Ended
Dec. 31, 2019
Loss per share:  
Computation of Loss Per Share

Basic and diluted earnings per share are calculated as follows:

 

   

 For the Years Ended

December 31,

 
    2019     2018  
Net loss   $ (16,658,500 )   $ (8,081,200 )
Weighted average shares outstanding for the period     1,545,884       1,449,261  
Basic loss per share   $ (10.78 )   $ (5.58 )
Diluted loss per share   $ (10.78 )   $ (5.58 )

 

Basic loss per common share is computed using net loss and the weighted average number of common shares outstanding during the period. Diluted loss per common share is computed using net (loss)/income and the weighted average number of common shares outstanding, assuming dilution. Weighted average common shares outstanding, assuming dilution, include potentially dilutive common shares outstanding during the period. There were no anti-dilutive shares outstanding during 2019 or 2018.

 

EXCEL 46 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx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�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

XML 47 R40.htm IDEA: XBRL DOCUMENT v3.20.1
Operating Segments (Details) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Operating lease revenue $ 25,609,000 $ 27,637,500
Finance lease revenue 852,600 1,251,000
Africa    
Finance lease revenue 48,700 832,800
Europe and United Kingdom    
Operating lease revenue 15,174,900 16,258,800
Finance lease revenue 365,600 418,200
North America    
Operating lease revenue 10,119,100 10,119,100
Asia    
Operating lease revenue $ 315,000 $ 1,259,600

XML 48 R44.htm IDEA: XBRL DOCUMENT v3.20.1
Notes Payable and Accrued Interest (Details Narrative) - USD ($)
Dec. 31, 2019
Dec. 31, 2018
Debt Disclosure [Abstract]    
Unused amount of the credit facility $ 915,900 $ 47,600,000
Weighted average interest rate on credit facility 10.23% 5.92%
XML 49 R48.htm IDEA: XBRL DOCUMENT v3.20.1
Lease Right of Use Asset and Liability (Details 1) - USD ($)
Dec. 31, 2019
Dec. 31, 2018
Leases [Abstract]    
2019   $ 193,500
2020 $ 145,000 196,400
2021 147,200 199,300
2022 74,700 101,100
Total lease liability $ 366,900 $ 690,300
XML 50 R9.htm IDEA: XBRL DOCUMENT v3.20.1
Organization and Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Organization and Summary of Significant Accounting Policies

(a) The Company and Basis of Presentation

 

AeroCentury Corp. (“AeroCentury”) is a Delaware corporation incorporated in 1997. AeroCentury together with its consolidated subsidiaries is referred to as the “Company.”

 

In August 2016, AeroCentury formed two wholly-owned subsidiaries, ACY 19002 Limited (“ACY 19002”) and ACY 19003 Limited (“ACY 19003”) for the purpose of acquiring aircraft using a combination of cash and third-party financing (“UK LLC SPE Financing” or “special-purpose financing”) separate from AeroCentury’s credit facility (the “MUFG Credit Facility”). The UK LLC SPE Financing was repaid in full in February 2019 as part of a refinancing involving new non-recourse term loans totaling approximately $44.3 million (“Nord Term Loans”) made to ACY 19002, ACY 19003, and two other newly formed special-purpose subsidiaries of AeroCentury. See Note 6(b) for more information about the Nord Term Loans.

 

On October 1, 2018, AeroCentury acquired JetFleet Holding Corp. (“JHC”) in a reverse triangular merger (“Merger”) for consideration of approximately $2.9 million in cash and 129,217 shares of common stock of AeroCentury, as determined pursuant to an Agreement and Plan of Merger (the “Merger Agreement”) entered into by AeroCentury, JHC and certain other parties in October 2017. JHC is the parent company of JetFleet Management Corp. (“JMC”), which is an integrated aircraft management, marketing and financing business and the manager of the Company’s assets. Upon completion of the Merger, JHC became a wholly-owned subsidiary of the Company, and as a result, JHC's results are included in the Company's consolidated financial statements beginning on October 1, 2018.

 

In November 2018, AeroCentury formed two wholly-owned subsidiaries, ACY SN 15129 LLC (“ACY 15129”) and ACY E-175 LLC (“ACY E-175”), for the purpose of refinancing four of the Company’s aircraft using the Nord Term Loans. Because the Nord Term Loans did not close until February 2019, the subject aircraft remained as collateral under the MUFG Credit Facility as of December 31, 2018, and ACY 15129 and ACY E-175 had no activity in 2018.

 

Financial information for AeroCentury and its consolidated subsidiaries is presented on a consolidated basis in accordance with accounting principles generally accepted in the United States of America (“GAAP”) based upon the continuation of the business as a going concern. All intercompany balances and transactions have been eliminated in consolidation.

 

(b) Going Concern

 

As discussed in Note 6, the Company was in default under its MUFG Credit Facility as of December 31, 2019. The MUFG Credit Facility lenders (“Credit Facility Lenders”) have the right to exercise any and all remedies for default under the MUFG Credit Facility agreement. Such remedies include, but are not limited to, declaring the entire indebtedness immediately due and payable and, if the Company were unable to repay such accelerated indebtedness (including its obligation in connection with the termination of two interest rate swaps entered into in connection with the MUFG Credit Facility (the “MUFG Swaps”), foreclosing upon the assets of the Company that secure the MUFG Indebtedness, which consist of all of the Company’s assets except for certain assets held in the Company’s single asset special-purpose financing subsidiaries. In addition, as discussed in Note 15, the coronavirus pandemic has led to significant cash flow issues for airlines, including some of the Company’s customers, and some airlines may be unable to timely meet their obligations under their lease obligations with the Company unless government financial support is received, of which there can be no assurance. Any significant nonpayment or late payment of lease payments by a significant lessee or combination of lessees could in turn impose limits on the Company’s ability to fund its ongoing operations as well as cause new defaults under the Company’s debt obligations, which in turn could lead to an immediate acceleration of debt and foreclosure upon the Company’s assets.  As a result of these factors, there is substantial doubt regarding the Company’s ability to continue as a going concern.

 

The Company is currently in negotiations with the Credit Facility Lenders to convert the MUFG Credit Facility into a term loan facility (as converted, the The Company is currently in negotiations with the Credit Facility Lenders to convert the MUFG Credit Facility into a term loan facility (as converted, the “MUFG Term Loan” and, collectively with the MUFG Credit Facility, “MUFG Indebtedness”). The Company has engaged an investment banking advisor to assist in obtaining additional debt or equity financing (the “Recapitalization Plan”) which, if successful, would be used to repay the MUFG Indebtedness.  However, there is no assurance that this will occur.  This is further exacerbated by the significance of the COVID-19 uncertainties discussed in Note 15.

 

The consolidated financial statements presented in this Annual Report on Form 10-K have been prepared on a going concern basis and do not include any adjustments that might arise as a result of uncertainties about the Company’s ability to continue as a going concern.

 

(c) Use of Estimates

 

The Company’s consolidated financial statements have been prepared in accordance with GAAP. The preparation of consolidated 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 consolidated 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 consolidated financial statements are the residual values and useful lives of the Company’s long-lived assets, the amount and timing of future cash flows associated with each asset that are used to evaluate whether assets are impaired, accrued maintenance costs, accounting for income taxes, the assumptions used to value the Company’s derivative instruments, the valuation of the right of use asset and related lease liability associated with the Company’s office, and the amounts recorded as allowances for doubtful accounts.

 

(d) Comprehensive Income/(Loss)

 

The Company reflects changes in the fair value of its interest rate swap derivatives that are designated as hedges in other comprehensive income/(loss). Such amounts are reclassified into earnings in the periods in which the hedged transaction occurs or when it is probable that the hedged transactions will no longer occur, and are included in interest expense.

 

(e) Cash, Cash Equivalents and Restricted Cash

 

The Company considers highly liquid investments readily convertible into known amounts of cash, with original maturities of 90 days or less from the date of acquisition, as cash equivalents.

 

The Company’s restricted cash is held in an account with the agent for the Company’s MUFG Credit Facility and disbursements from the account are subject to the control and discretion of the agent for payment of principal on the MUFG Credit Facility as well as for the Company’s operating expenses.

 

(f) Securities

 

At December 31, 2018, the Company owned 121 shares of non-voting preferred stock in a non-public company. The stock, which had a cumulative preferred annual dividend of 10% and a liquidation value of $1,000 per share, was sold during 2019.

 

(g) Lease Accounting, Favorable Lease Acquired and Lease Right of Use Asset

 

In February 2016, the Financial Accounting Standards Board ("FASB") issued Topic 842 - Leases in the Accounting Standards Codification ("ASC"). Topic 842 substantially modifies lessee accounting for leases, requiring that lessees recognize lease assets and liabilities for leases extending beyond one year. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The Company adopted Topic 842 on January 1, 2019, electing to apply its provisions on the date of adoption and to record the cumulative effect as an adjustment to retained earnings. Lessor accounting under Topic 842 is similar to the prior accounting standard and the Company has elected to apply practical expedients under which the Company will not have to reevaluate whether a contract is a lease, the classification of its existing leases or its capitalized initial direct costs. In addition, the Company, as lessor, has elected the practical expedient to combine lease and non-lease components as one combined component for its leased aircraft for purposes of determining whether that combined component should be accounted for under Topic 606, which establishes rules that affect the amount and timing of revenue recognition for contracts with customers, or Topic 842.

 

The new standard requires a lessor to classify leases as sales-type, finance, or operating. A lease is treated as sales-type if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a finance lease. If the lessor does not convey risks and rewards or control, an operating lease results. As a result of application of the practical expedients, the Company was not required to alter the classification or carrying value of its leased or finance lease assets.

 

In connection with the Company’s acquisition of JHC, as discussed in Note 10, the Company recognized that the lease of its office facilities had rents that were substantially below the market for such office space. Consequently, the Company recorded $925,000 as the value of below-market rents at the October 1, 2018 date of the JHC acquisition, and amortized such amount on a level basis over the remaining term of the office lease, including two one-year bargain renewal options. The Company recorded $61,700 of amortization in 2018.

 

Lessee reporting was changed by the new standard, requiring that the balance sheet reflect a liability for most operating lease obligations as well as a “right of use” asset. As such, in January 2019, the Company was required to record a lease obligation of approximately $610,000 in connection with the lease of its headquarters office, and to increase the capitalized leasehold interest / right of use asset by $610,000, as discussed in Note 8. There was no effect on retained earnings recorded as a result of adoption of the standard. The Company elected the lessee practical expedient to combine the lease and non-lease components.

 

(h) Aircraft Capitalization and Depreciation

 

The Company’s interests in aircraft and aircraft engines are recorded at cost, which includes acquisition costs. Since inception, the Company has typically purchased only used aircraft and aircraft engines. It is the Company’s policy to hold aircraft for approximately twelve years unless market conditions dictate otherwise. Therefore, depreciation of aircraft is initially computed using the straight-line method over the anticipated holding period to an estimated residual value based on appraisal. For an aircraft engine held for lease as a spare, the Company estimates the length of time that it will hold the aircraft engine based upon estimated usage, repair costs and other factors, and depreciates it to the appraised residual value over such period using the straight-line method.

 

The Company periodically reviews plans for lease or sale of its aircraft and aircraft engines and changes, as appropriate, the remaining expected holding period for such assets. Estimated residual values are reviewed and adjusted periodically, based upon updated estimates obtained from an independent appraiser. Decreases in the fair value of aircraft could affect not only the current value, discussed below, but also the estimated residual value.

 

Assets that are held for sale are not subject to depreciation and are separately classified on the balance sheet. Such assets are carried at the lower of their carrying value or estimated fair values, less costs to sell.

 

(i) Property, Equipment and Furnishings

 

The Company’s interests in equipment are recorded at cost and depreciated using the straight-line method over five years. The Company’s leasehold improvements are recorded at cost and amortized using the straight-line method over the shorter of the lease term or the estimated useful lives of the respective assets.

 

(j) Impairment of Long-lived Assets

 

The Company reviews assets for impairment when there has been an event or a change in circumstances indicating that the carrying amount of a long-lived asset may not be recoverable. In addition, the Company routinely reviews all long-lived assets for impairment semi-annually. Recoverability of an asset is measured by comparison of its carrying amount to the future estimated undiscounted cash flows (without interest charges) that the asset is expected to generate. Estimates are based on currently available market data and independent appraisals and are subject to fluctuation from time to time. If these estimated future cash flows are less than the carrying value of an asset at the time of evaluation, any impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value.  Fair value is determined by reference to independent appraisals and other factors considered relevant by management. Significant management judgment is required in the forecasting of future operating results that are used in the preparation of estimated future undiscounted cash flows and, if different conditions prevail in the future, material write-downs may occur.

 

As discussed in Note 9, the Company recorded impairment losses totaling $31.0 million and $3.0 million in 2019 and 2018, respectively, as a result of the Company’s determination that the carrying values for certain aircraft were not recoverable.

 

The 2019 impairment losses consisted of (i) $24.0 million resulting from appraised values for four aircraft that are held for sale, assuming sale in a reasonably short time (“Orderly Liquidation Value”) and (ii) $7.0 million resulting from estimated or actual sales proceeds for five assets held for sale, three of which were sold during 2019.

 

The 2018 impairment losses consisted of (i) $2.7 million resulting from Orderly Liquidation Values for four aircraft held for sale and (ii) $0.3 million resulting from writing a fifth aircraft down to its appraised value.

 

(k) Deferred Financing Costs and Commitment Fees

 

Costs incurred in connection with debt financing are deferred and amortized over the term of the debt using the effective interest method or, in certain instances where the differences are not material, using the straight-line method. Costs incurred in connection with the MUFG Credit Facility are deferred and amortized using the straight-line method. Commitment fees for unused funds are expensed as incurred.

 

(l) Security Deposits

 

The Company’s leases are typically structured so that if any event of default occurs under a lease, the Company may apply all or a portion of the lessee’s security deposit to cure such default. If such application of the security deposit is made, the lessee typically is required to replenish and maintain the full amount of the deposit during the remaining lease term. All of the security deposits received by the Company are refundable to the lessee at the end of the lease upon satisfaction of all lease terms.

 

(m) Taxes

 

As part of the process of preparing the Company’s consolidated financial statements, management estimates income taxes in each of the jurisdictions in which the Company operates. This process involves estimating the Company’s current tax exposure under the most recent tax laws and assessing temporary differences resulting from differing treatment of items for tax and GAAP purposes. These differences result in deferred tax assets and liabilities, which are included in the balance sheet. Management also assesses the likelihood that the Company’s deferred tax assets will be recovered from future taxable income, and, to the extent management believes it is more likely than not that some portion or all of the deferred tax assets will not be realized, the Company establishes a valuation allowance. To the extent the Company establishes a valuation allowance or changes the allowance in a period, the Company reflects the corresponding increase or decrease within the tax provision in the statement of operations. Significant management judgment is required in determining the Company’s future taxable income for purposes of assessing the Company’s ability to realize any benefit from its deferred taxes. After considering the Company’s significant amounts of net deferred tax liabilities which are future reversing taxable temporary differences, the Company has determined that no valuation allowance is required for its deferred tax assets.

 

The Company accrues non-income based sales, use, value added and franchise taxes as other tax expense in the statement of operations.

 

(n) Revenue Recognition, Accounts Receivable and Allowance for Doubtful Accounts

 

Revenue from leasing of aircraft assets pursuant to operating leases is recognized on a straight-line basis over the terms of the applicable lease agreements. Deferred payments are recorded as accrued rent when the cash rent received is lower than the straight-line revenue recognized. Such receivables decrease over the term of the applicable leases. Interest income is recognized on finance leases based on the interest rate implicit in the lease and the outstanding balance of the lease receivable.

 

Maintenance reserves retained by the Company at lease-end are recognized as maintenance reserves revenue.

 

In instances where collectability is not reasonably assured, the Company recognizes revenue as cash payments are received. The Company estimates and charges to income a provision for bad debts based on its experience with each specific customer, the amount and length of payment arrearages, and its analysis of the lessee’s overall financial condition. If the financial condition of any of the Company’s customers deteriorates, it could result in actual losses exceeding any estimated allowances.

 

The Company had an allowance for doubtful accounts of $2,908,600 and $0 at December 31, 2019 and 2018, respectively.

 

(o) Comprehensive Income

 

The Company reflects changes in the fair value of its interest rate swap derivatives that are designated as hedges in other comprehensive income/(loss). Such amounts are reclassified into earnings in the periods in which the hedged transaction occurs, and are included in interest expense.

 

(p) Finance Leases

 

As of December 31, 2019, the Company had three aircraft subject to sales-type finance leases and three aircraft subject to direct financing leases. All six leases contain lessee bargain purchase options at prices substantially below the subject asset’s estimated residual value at the exercise date for the option. Consequently, the Company has classified each of these six leases as finance leases for financial accounting purposes. For such finance leases, the Company reports 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, as a finance lease receivable on its balance sheet, and accrues interest on the balance of the finance lease receivable based on the interest rate inherent in the applicable lease over the term of the lease. For each of the three sales-type finance leases, the Company recognized as a gain or loss the amount equal to (i) the net investment in the sales-type finance lease plus any initial direct costs and lease incentives less (ii) the net book value of the subject aircraft at inception of the applicable lease.

 

The Company recognized interest earned on finance leases in the amount of $852,600 and $1,251,000 in 2019 and 2018, respectively. As a result of payment delinquencies by two customers that lease three of the Company’s aircraft subject to finance leases, the Company recorded a bad debt allowance of $2,957,800 during 2019.

 

(q) Maintenance Reserves and Accrued Maintenance Costs

 

Maintenance costs under the Company’s triple net leases are generally the responsibility of the lessees. Some 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 and be applied by the Company toward reimbursement of most or all of the cost of the lessees’ performance of certain maintenance obligations under the leases. Such reimbursements reduce the associated maintenance reserve liability.

 

Maintenance reserves are characterized as either refundable or non-refundable depending on their disposition at lease-end. The Company retains non-refundable maintenance reserves at lease-end, even if the lessee has met all of its obligations under the lease, including any return conditions applicable to the leased asset, while refundable reserves are returned to the lessee under such circumstances. Any reserves retained by the Company at lease-end are recorded as revenue at that time.

 

Accrued maintenance costs include (i) maintenance for work performed for off-lease aircraft, which is not related to the release of maintenance reserves received from lessees and which is expensed as incurred, and (ii) lessor maintenance obligations assumed and recognized as a liability upon acquisition of aircraft subject to a lease with such provisions.

 

(r) Interest Rate Hedging

 

During the first quarter of 2019, the Company entered into certain derivative instruments to mitigate its exposure to variable interest rates under the Term Loans debt and a portion of the MUFG Credit Facility debt. Hedge accounting is applied to such a transaction only if specific criteria have been met, the transaction is deemed to be “highly effective” and the transaction has been designated as a hedge at its inception. Under hedge accounting treatment, generally, the effects of derivative transactions are recorded in earnings for the period in which the hedge transaction affects earnings. A change in value of a hedging instrument is reported as a component of other comprehensive income/(loss) and is reclassified into earnings in the period in which the transaction being hedged affects earnings.

 

If at any time after designation of a cash flow hedge, such as those entered into by the Company, it is no longer probable that the forecasted cash flows will occur, hedge accounting is no longer permitted and a hedge is “dedesignated.” After dedesignation, if it is still considered reasonably possible that the forecasted cash flows will occur, the amount previously recognized in other comprehensive income/(loss) will continue to be reversed as the forecasted transactions affect earnings. However, if after dedesignation it is probable that the forecasted transactions will not occur, amounts deferred in accumulated other comprehensive income/(loss) will be recognized in earnings immediately.

 

As noted in Note 7, in October 2019 the Company became aware that, as a result of certain defaults under its MUFG Credit Facility, certain of the forecasted transactions related to its MUFG Credit Facility interest rate swaps are no longer probable of occurring and, hence, those swaps were dedesignated from hedge accounting at that time. As discussed in Note 15, the two swaps related to the MUFG Credit Facility were terminated in March 2020 and the Company incurred a $3.1 million obligation in connection with such termination.

 

(s) Recent Accounting Pronouncements

 

ASU 2016-13

 

The FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), in June of 2016 (“ASU 2016-13”). ASU 2016-13 provides that financial assets measured at amortized cost are to be presented as a net amount, reflecting a reduction for a valuation allowance to present the amount expected to be collected (the “current expected credit loss” model of reporting). As such, expected credit losses will be reflected in the carrying value of assets and losses will be recognized before they become probable, as is required under the Company’s present accounting practice. In the case of assets held as available for sale, the amount of the valuation allowance will be limited to an amount that reflects the marketable value of the debt instrument. This amendment to GAAP is effective  in the first quarter of 2023 for calendar-year SEC filers that are smaller reporting companies as of the one-time determination date. Early adoption is permitted beginning in 2019. The Company plans to adopt the new guidance on January 1, 2023, and has not determined the impact of this adoption on its consolidated financial statements.

 

ASU 2019-12

 

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), a new accounting standard update to simplify the accounting for income taxes. The new guidance removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. It also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. This guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and related disclosures.

 

XML 51 R5.htm IDEA: XBRL DOCUMENT v3.20.1
Consolidated Statements of Comprehensive Loss - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Statement of Comprehensive Income [Abstract]    
Net loss $ (16,658,500) $ (8,081,200)
Other comprehensive loss:    
Unrealized losses on derivative instruments (1,932,100) 0
Reclassification of net unrealized losses on derivative instruments to interest expense 186,400 0
Tax benefit related to items of other comprehensive loss 374,900 0
Other comprehensive loss (1,370,800) 0
Total comprehensive loss $ (18,029,300) $ (8,081,200)
XML 52 R57.htm IDEA: XBRL DOCUMENT v3.20.1
Computation of Loss Per Share (Details) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Loss per share:    
Net loss $ (16,658,500) $ (8,081,200)
Weighted average shares outstanding for the period 1,545,884 1,449,261
Basic loss per share $ (10.78) $ (5.58)
Diluted loss per share $ (10.78) $ (5.58)
XML 53 R53.htm IDEA: XBRL DOCUMENT v3.20.1
Income Taxes (Details) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Current tax provision:    
Federal $ (34,100) $ 0
State 3,300 3,200
Foreign 418,300 414,000
Current tax provision 387,500 417,200
Deferred tax benefit:    
Federal (4,553,700) (1,270,400)
State (78,800) (26,100)
Foreign (262,800) (93,500)
Deferred tax benefit (4,895,200) (1,390,000)
Total income tax benefit $ (4,507,800) $ (972,800)
XML 54 R1.htm IDEA: XBRL DOCUMENT v3.20.1
Document and Entity Information - USD ($)
12 Months Ended
Dec. 31, 2019
Mar. 30, 2020
Jun. 28, 2019
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 Shell Company false    
Entity Filer Category Non-accelerated Filer    
Entity Small Business true    
Entity Emerging Growth Company false    
Entity Interactive Data Current Yes    
Entity Incorporation, State or Country Code DE    
Entity File Number 001-13387    
Entity Public Float     $ 8,565,600
Entity Common Stock, Shares Outstanding   1,545,884  
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2019    
Document Fiscal Year Focus 2019    
Document Fiscal Period Focus FY    
XML 55 R32.htm IDEA: XBRL DOCUMENT v3.20.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Income tax provision
    For the Years Ended December 31,  
    2019     2018  
Current tax provision:            
Federal   $ (34,100 )   $ -  
State     3,300       3,200  
Foreign     418,300       414,000  
Current tax provision     387,500       417,200  
Deferred tax benefit:                
Federal     (4,553,700 )     (1,270,400 )
State     (78,800 )     (26,100 )
Foreign     (262,800 )     (93,500 )
Deferred tax benefit     (4,895,300 )     (1,390,000 )
Total income tax benefit   $ (4,507,800 )   $ (972,800 )
Income tax reconciliation
    For the Years Ended December 31,  
    2019     2018  
             
Income tax benefit at statutory federal income tax rate   $ (4,444,900 )   $ (1,901,400 )
State tax benefit, net of federal benefit     (75,900 )     (44,500 )
Non-deductible Merger expenses     -       647,200  
Non-deductible management and acquisition fees     7,600       325,900  
Other non-deductible expenses     5,400       -  
Total income tax benefit   $ (4,507,800 )   $ (972,800 )
Deferred tax assets and liabilities
    December 31,  
    2019     2018  
Deferred tax assets:            
Current and prior year tax losses   $ 4,980,100     $ 4,065,100  
Foreign tax credit     758,400       611,900  
Deferred interest expense     269,800       81,800  
Maintenance reserves     470,000       3,100,800  
Deferred derivative losses     452,100       -  
Deferred maintenance, bad debt allowance and other     19,800       92,500  
Alternative minimum tax credit     11,400       45,500  
Deferred tax assets     6,961,600       7,997,600  
Deferred tax liabilities:                
Accumulated depreciation on aircraft and aircraft engines     (8,666,700 )     (14,773,800 )
Deferred income     (175,600 )     (320,600 )
       Leasehold interest     (131,400 )     (185,400 )
Net deferred tax liabilities   $ (2,012,100 )   $ (7,282,200 )

 

    December 31,  
Reported as:   2019     2018  
      Deferred tax asset   $ 517,700     $ 254,900  
      Deferred income taxes (liability)     (2,529,800 )     (7,537,100 )
              Net deferred tax liabilities   $ (2,012,100 )   $ (7,282,200 )

 

Unrecognized tax benefits
    December 31,  
    2019     2018  
Balance at January 1   $ 85,400       -  
Additions for prior years’ tax positions     9,000       85,400  
Balance at December 31   $ 94,400     $ 85,400  
XML 56 R36.htm IDEA: XBRL DOCUMENT v3.20.1
Aircraft Lease Assets (Details 1)
Dec. 31, 2019
USD ($)
Aircraft Lease Assets [Abstract]  
2020 $ 17,650,900
2021 10,392,000
2022 8,639,600
2023 8,639,600
2024 6,826,100
Thereafter 1,683,300
Total $ 53,831,500
XML 57 R15.htm IDEA: XBRL DOCUMENT v3.20.1
Derivative Instruments
12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments

The Company was not party to any derivative instruments in 2018.

 

In the first quarter of 2019, the Company entered into eight fixed pay/receive variable interest rate swaps.

 

Six of the interest rate swaps were entered into by the LLC Borrowers, one of which terminated in the fourth quarter of 2019 in connection with the sale of the related aircraft, and provided for reduced notional amounts that mirror the amortization under the Nord Term Loans entered into by the LLC Borrowers, effectively converting each of the six Nord Term Loans from a variable to a fixed interest rate, ranging from 5.38% to 6.30%. Each of these six interest rate swaps extended for the duration of the corresponding Term Loan, with maturities from 2020 through 2025.

 

The other two interest rate swaps, the MUFG Swaps related to the Company’s MUFG Credit Facility, were entered into by AeroCentury and had notional amounts totaling $50 million and were to extend through the maturity of the MUFG Credit Facility in February 2023. Under the ISDA agreement for these interest rate swaps, defaults under the MUFG Credit Facility give the swap counterparty the right to terminate the interest rate swaps with any breakage costs being the liability of the Company. The counterparty agreed under the Forbearance Agreement and subsequent amendments to refrain from exercising any termination or other remedies as a result of the Company’s defaults under the MUFG Credit Facility during the forbearance period under the Forbearance Agreement. In March 2020, the Company was notified that the counterparties had terminated the MUFG Swaps.

 

The Company entered into the interest rate swaps in order to reduce its exposure to the risk of increased interest rates. With respect to the six interest rate swaps entered into by the LLC Borrowers, the swaps were deemed necessary so that the anticipated cash flows of such entities, which arise entirely from the lease rents for the aircraft owned by such entities, would be sufficient to make the required Term Loan principal and interest payments, thereby preventing default so long as the lessees met their lease rent payment obligations. The two interest rate swaps entered into by AeroCentury were intended to protect against the exposure to interest rate increases on $50 million of the Company’s MUFG Credit Facility debt.

 

The Company estimates the fair value of derivative instruments using a discounted cash flow technique and uses creditworthiness inputs that corroborate observable market data evaluating the Company’s and counterparties’ risk of non-performance. Valuation of the derivative instruments requires certain assumptions for underlying variables and the use of different assumptions would result in a different valuation. Management believes it has applied assumptions consistently during the period.

 

The Company designated seven of its interest rate swaps as cash flow hedges. Changes in the fair value of the hedged swaps are included in other comprehensive income/(loss), which amounts are reclassified into earnings in the period in which the transaction being hedged affects earnings (i.e., with future settlements of the interest rate swaps). One of the interest rate swaps was not eligible under its terms for hedge treatment and was terminated in 2019 when the associated asset was sold and the related debt was paid off. Changes in fair value of non-hedge derivatives are reflected in earnings in the periods in which they occur.

 

In October 2019, the Company determined that it was no longer probable that forecasted cash flows for its two interest rate swaps with a nominal value of $50 million would occur as scheduled as a result of the Company’s defaults under the MUFG Credit Facility. Therefore, those swaps were no longer subject to hedge accounting and changes in fair market value thereafter were recognized in earnings as they occurred. As discussed in Note 15, the MUFG Swaps were terminated in the first quarter of 2020 and the amount of accumulated other comprehensive income/(loss) related to such cash flows will be recognized as an expense at such time in the first quarter of 2020.

 

The Company has reflected the following amounts in its net loss:

 

     For the Years Ended December 31,  
    2019     2018  
Change in value of interest rate swaps   $ 255,200     $ -  
Other items     147,400       -  
Included in interest expense   $ 402,600     $ -  
                 
The following amount was included in other comprehensive income/(loss), before tax            
                 
Unrealized loss on derivative instruments   $ (1,932,100 )   $ -  
Other items     186,400       -  
Change in value of hedged interest rate swaps   $ (1,745,700 )   $ -  

 

Before the termination of the MUFG Swaps discussed in Note 15, approximately $575,000 of the current balance of accumulated other comprehensive income/(loss) was expected to be reclassified in the next twelve months, although certain additional amounts may be recognized in the event the Company determines that some of the forecasted cash flows that are intended to be hedged under the interest rate swaps related to its MUFG Credit Facility are probable of not occurring.

 

At December 31, 2019, the fair value of the Company’s interest rate swaps was as follows:

 

Designated interest rate hedges fair value   $ (570,900 )
Other interest rate swaps     (1,253,600 )
Total derivative (liability)   $ (1,824,500 )

 

The Company evaluates the creditworthiness of the counterparties under its hedging agreements. The swap counterparties for the Company’s interest rate swaps are large financial institutions in the United States that possess an investment grade credit rating. Based on this rating, the Company believes that the counterparties are creditworthy and that their continuing performance under the hedging agreements is probable.

 

XML 58 R11.htm IDEA: XBRL DOCUMENT v3.20.1
Assets Held for Sale
12 Months Ended
Dec. 31, 2019
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract]  
Assets Held for Sale

As discussed in Note 2(a), during 2019, the Company reclassified four regional jet aircraft that had been held for lease to held for sale after repossession from a customer. One of the aircraft was sold during 2019.

 

Assets held for sale at December 31, 2019 included three of the regional jet aircraft that were repossessed and two turboprop aircraft, one of which is subject to a short-term operating lease, and airframe parts from two turboprop aircraft. During 2019, the Company recorded an impairment loss of $1,000,000 related to the airframe parts from one of the aircraft, based on estimated sales proceeds.

 

During 2019, the Company received $820,800 in cash and accrued $117,400 in receivables for parts sales. These amounts were accounted for as follows: $133,100 reduced accounts receivable for parts sales accrued in the fourth quarter of 2018; $731,700 reduced the carrying value of the parts; and $73,400 was recorded as gains in excess of the carrying value of the parts. 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.

 

XML 59 R19.htm IDEA: XBRL DOCUMENT v3.20.1
Commitments and Contingencies
12 Months Ended
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

In the ordinary course of the Company’s business, the Company may be subject to lawsuits, arbitrations and administrative proceedings from time to time. The Company believes that the outcome of any existing or known threatened proceedings, even if determined adversely, should not have a material adverse effect on the Company's business, financial condition, liquidity or results of operations.

 

XML 60 R27.htm IDEA: XBRL DOCUMENT v3.20.1
Notes Payable and Accrued Interest (Tables)
12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Notes payable and accrued interest
   

December 31,

2019

   

December 31,

2018

 
MUFG Credit Facility:            
   Principal   $ 84,084,100     $ 122,400,000  
   Unamortized debt issuance costs     (3,084,200 )     (674,300 )
   Accrued interest     376,200       139,300  
Special-purpose financing:                
   Principal:                
      UK SPE Financing     -       9,211,200  
      Nord Term Loans     30,914,500       -  
   Unamortized debt issuance costs     (741,500 )     -  
   Accrued interest     89,300       16,000  
    $ 111,638,400     $ 131,092,200  
XML 61 R23.htm IDEA: XBRL DOCUMENT v3.20.1
Subsequent Events
12 Months Ended
Dec. 31, 2019
Subsequent Events [Abstract]  
Subsequent Events

Effective January 1, 2020, the Company reduced both the size of the office space leased and the amount of rent payable in the future. As such, in 2020 the Company will recognize a reduction in both the capitalized amount related to the surrendered office space and a proportionate amount of the liability associated with its future lease obligations. In January 2020, the Company recorded a loss of $160,000 related to the reduction in its ROU Asset, net of the reduction in its operating lease liability, and will recognize amortization of $308,100, $317,600 and $162,600 in 2020, 2021 and the first half of 2022, respectively.

 

In January 2020, the Company amended the leases for three of its assets that are subject to sales-type finance leases. The amendments provided for (i) the sale of one aircraft to the customer in January 2020, (ii) application of collected maintenance reserves and a security deposit held by the Company to past due amounts for the other two aircraft, (iii) required payments totaling $585,000 in January for two of the leases and (iv) reduced the amount of future payments due under the two leases.

 

In January 2020, the lessee for an aircraft leased pursuant to a direct financing lease notified the Company of its intention to exercise the lease-end purchase option for the aircraft in March 2020. In February 2020, the Company and the same lessee agreed to the early exercise of lease-end purchase options for direct financing leases that were to expire in March 2021 and March 2022. All three aircraft were sold to the lessee in March 2020.

 

In March 2019, the Company entered into two interest rate derivative instruments in connection with the MUFG Credit Facility. In March 2020, the counterparties to the MUFG Swaps terminated the MUFG Swaps and the Company became obligated to pay $3.1 million to the counterparties.

 

In January 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus and the risks to the international community as the virus spreads globally (the “COVID-19 Outbreak”). In March 2020, the WHO classified the COVID-19 Outbreak as a pandemic, based on the rapid increase in exposure globally. The ongoing COVID-19 Outbreak has had an overwhelming effect on all forms of transportation globally, but most acutely for the airline industry. The combined effect of fear of infection during air travel and international and domestic travel restrictions has caused a dramatic decrease in passenger loads in all areas of the world, not just in those countries with active clusters of COVID-19, but in airline ticket net bookings (i.e. bookings made less bookings canceled) of flights as well. This has led to significant cash flow issues for airlines, including some of the Company’s customers, and some airlines may be unable to timely meet their obligations under their lease obligations with the Company unless government financial support is received, of which there can be no assurance. Any significant nonpayment or late payment of lease payments by a significant lessee or combination of lessees could in turn impose limits on the Company’s ability to fund its ongoing operations as well as cause new defaults under the Company’s debt obligations, which in turn could lead to an immediate acceleration of debt and foreclosure upon the Company’s assets. Furthermore, for the duration of the pandemic and a period of financial recovery thereafter, sale and acquisition transactions are likely to be curtailed entirely or delayed while the industry returns to financial stability, which could impact the Company’s ability to implement its Recapitalization Plan. No impairments were recorded as of the balance sheet date as no triggering events or changes in circumstances had occurred as of year-end; however, due to significant uncertainty surrounding the situation, management's judgment regarding this could change in the future. In addition, while the Company’s results of operations, cash flows and financial condition could be negatively impacted, the extent of the impact cannot be reasonably estimated at this time.

 

However, as a result of the COVID-19 Outbreak, in March 2020, one of the Company’s customers, which leases two regional jet aircraft subject to Nord Term Loan financing, did not make its quarterly rent payment of approximately $1.4 million. The nonpayment led to a corresponding Nord Term Loan financing payment event of default under the Nord Term Loans for each of those subsidiaries. The Company is currently reviewing its options for remedies against the lessee. It has also entered into negotiations with Nord regarding a workout for the corresponding overdue Nord Term Loan payments.   As a result of the non-payment on the two regional jets by the Company’s customer and potential consequent uncertainty concerning future interest payments under the related Nord Term Loans, as well as potential uncertainty related to rent payments and related debt payments on the other three Nord Term Loans, the Company is reevaluating its hedge accounting for the five interest rate derivatives associated with those loans.

 

XML 62 R42.htm IDEA: XBRL DOCUMENT v3.20.1
Concentration of Credit Risk (Details Narrative) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Customer One | Operating Lease Revenue    
Lease revenues and receivables from significant customers 23.00% 30.00%
Customer Two | Operating Lease Revenue    
Lease revenues and receivables from significant customers 23.00% 21.00%
Customer Three | Operating Lease Revenue    
Lease revenues and receivables from significant customers 16.00% 15.00%
Customer Four | Operating Lease Revenue    
Lease revenues and receivables from significant customers 14.00% 13.00%
Customer Five | Operating Lease Revenue    
Lease revenues and receivables from significant customers 10.00%  
Customer Five | Finance Lease Revenue    
Lease revenues and receivables from significant customers   67.00%
Customer Six | Finance Lease Revenue    
Lease revenues and receivables from significant customers 57.00%  
Customer Seven | Finance Lease Revenue    
Lease revenues and receivables from significant customers 38.00%  
One Customer    
Lease revenues and receivables from significant customers 74.00%  
Receivables $ 828,000  
Three Customers    
Lease revenues and receivables from significant customers   87.00%
Receivables   $ 3,413,500
XML 63 Show.js IDEA: XBRL DOCUMENT // Edgar(tm) Renderer was created by staff of the U.S. Securities and Exchange Commission. Data and content created by government employees within the scope of their employment are not subject to domestic copyright protection. 17 U.S.C. 105. var Show={};Show.LastAR=null,Show.showAR=function(a,r,w){if(Show.LastAR)Show.hideAR();var e=a;while(e&&e.nodeName!='TABLE')e=e.nextSibling;if(!e||e.nodeName!='TABLE'){var ref=((window)?w.document:document).getElementById(r);if(ref){e=ref.cloneNode(!0); e.removeAttribute('id');a.parentNode.appendChild(e)}} if(e)e.style.display='block';Show.LastAR=e};Show.hideAR=function(){Show.LastAR.style.display='none'};Show.toggleNext=function(a){var e=a;while(e.nodeName!='DIV')e=e.nextSibling;if(!e.style){}else if(!e.style.display){}else{var d,p_;if(e.style.display=='none'){d='block';p='-'}else{d='none';p='+'} e.style.display=d;if(a.textContent){a.textContent=p+a.textContent.substring(1)}else{a.innerText=p+a.innerText.substring(1)}}} XML 64 R46.htm IDEA: XBRL DOCUMENT v3.20.1
Derivative Instruments (Details 1) - USD ($)
Dec. 31, 2019
Dec. 31, 2018
Total derivative (liability) $ (1,824,500) $ 0
Designated Interest Rate Hedges Fair Value    
Total derivative (liability) (570,900)  
Other Interest Rate Swap    
Total derivative (liability) $ (1,253,600)  
XML 65 R26.htm IDEA: XBRL DOCUMENT v3.20.1
Operating Segments (Tables)
12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Geographic information of operating and finance lease revenue
    For the Years Ended December 31,  
Operating Lease Revenue   2019     2018  
             
Europe and United Kingdom   $ 15,174,900     $ 16,258,800  
North America     10,119,100       10,119,100  
Asia     315,000       1,259,600  
    $ 25,609,000     $ 27,637,500  

 

    For the Years Ended December 31,  
Finance Lease Revenue   2019     2018  
             
Africa   $ 487,000     $ 832,800  
Europe and United Kingdom     365,600       418,200  
    $ 852,600     $ 1,251,000  

 

Net book value of aircraft and aircraft engines held for lease
    December 31,  
Net Book Value of Aircraft and Aircraft Engines Held for Lease   2019     2018  
             
Europe and United Kingdom   $ 44,569,000     $ 110,069,000  
North America     63,799,600       68,485,400  
Asia     -       5,465,500  
    $ 108,368,600     $ 184,019,900  
XML 66 R22.htm IDEA: XBRL DOCUMENT v3.20.1
Related Party Transactions
12 Months Ended
Dec. 31, 2019
Related Party Transactions [Abstract]  
Related Party Transactions

See the description of the Merger Agreement between the Company and JHC in Note 10, pursuant to which the Company acquired JHC in the Merger and JHC became a wholly-owned subsidiary of the Company on October 1, 2018.

 

Before completion of the Merger, the Company’s portfolio of aircraft assets was managed and administered under the terms of a management agreement with JMC (the “Management Agreement”). Certain officers of the Company were also officers of JHC and JMC and held significant ownership positions in both JHC and the Company, and JHC was also a significant stockholder of AeroCentury. Under the Management Agreement, JMC received a monthly management fee based on the net asset value of the Company’s assets under management. JMC also received an acquisition fee for locating assets for the Company. Acquisition fees were included in the cost basis of the asset purchased. JMC also received a remarketing fee in connection with the re-lease or sale of the Company’s assets. Remarketing fees were amortized over the applicable lease term or included in the gain or loss on sale.

 

In April 2018, subsequent to the execution of the Merger Agreement for the acquisition of JHC, JHC agreed to waive its right to receive management and acquisition fees (“Contract Fees”) otherwise owed by the Company to JHC pursuant to the Management Agreement for all periods after March 31, 2018 and until the earlier of the consummation of the Merger or August 15, 2018. In return, the Company agreed to reimburse JMC for expenses (“Management Expense”) incurred in providing management services set forth under the Management Agreement. In July 2018, JHC agreed to extend the expiration of this agreement (the “Waiver and Reimbursement Agreement”) through October 15, 2018. Thus, if the Merger Agreement was terminated on or before October 15, 2018 or the Merger did not close by October 15, 2018, the Company would have become obligated to pay JMC any excess (the “JMC Margin”) of (i) the Contract Fees that would have been paid to JMC since April 1, 2018 in the absence of the Waiver and Reimbursement Agreement over (ii) the Management Expenses actually paid by the Company to JMC since April 1, 2018. For the nine months ended September 30, 2018, Contract Fees exceeded the reimbursed Management Expense by $1,023,000 of management fees and $494,000 of acquisition fees. Notwithstanding the Waiver and Reimbursement Agreement, until the closing or termination of the Merger Agreement, the Company accrued as an expense the total Contract Fees that would have been due under the Management Agreement. Because the Merger closed on October 1, 2018, the Waiver and Reimbursement Agreement for the period from April 1, 2018 through September 30, 2018 was considered in the acquisition accounting for the calculation of the settlement loss recognized by the Company when the Merger was consummated.

 

The Company incurred management fees and acquisition fees of $4,482,800 and $494,400, respectively, during 2018.

 

XML 67 R43.htm IDEA: XBRL DOCUMENT v3.20.1
Notes Payable and Accrued Interest (Details) - USD ($)
Dec. 31, 2019
Dec. 31, 2018
Unamortized debt issuance costs $ (3,825,700) $ (674,300)
Notes payable and accrued interest 111,638,400 131,092,200
Special Purpose Financing    
Unamortized debt issuance costs (741,500) 0
Accrued interest 89,300 16,000
MUFG Credit Facility    
Principal 84,084,100 122,400,000
Unamortized debt issuance costs (3,084,200) (674,300)
Accrued interest 376,200 139,300
UK SPE Financing | Special Purpose Financing    
Principal 0 9,211,200
Nord Term Loans | Special Purpose Financing    
Principal $ 30,914,500 $ 0
XML 68 R47.htm IDEA: XBRL DOCUMENT v3.20.1
Lease Right of Use Asset and Liability (Details) - USD ($)
Dec. 31, 2019
Dec. 31, 2018
Leases [Abstract]    
2020 $ 145,000 $ 196,400
2021 147,200 199,300
2022 74,700 101,100
Total lease liability 366,900 690,300
Discount (30,500)  
Lease liability $ 336,400 $ 0
XML 69 R56.htm IDEA: XBRL DOCUMENT v3.20.1
Income Taxes (Details 3) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Income Tax Disclosure [Abstract]    
Balance, beginning $ 85,400 $ 0
Additions for prior years' tax positions 9,000 85,400
Balance, ending $ 94,400 $ 85,400
XML 70 R4.htm IDEA: XBRL DOCUMENT v3.20.1
Consolidated Statements of Operations - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Revenues and other income:    
Operating lease revenue $ 25,609,000 $ 27,637,500
Maintenance reserves revenue, net 16,968,400 1,629,000
Finance lease revenue 852,600 1,251,000
Net gain (loss) on disposal of assets 326,900 (3,408,700)
Net loss on sales-type finance leases (170,600) 0
Other income 12,800 7,600
Total income 43,599,100 27,116,400
Expenses:    
Provision for impairment in value of aircraft 31,007,400 2,971,500
Depreciation 11,587,500 12,637,100
Interest 11,302,900 9,506,000
Professional fees, general and administrative and other 4,005,100 2,343,800
Bad debt expense 2,908,600 0
Salaries and employee benefits 2,367,500 592,300
Maintenance 850,800 636,000
Insurance 621,300 383,700
Other taxes 114,300 90,200
Management fees 0 4,482,800
Settlement loss 0 2,527,000
Total expenses 64,765,400 36,170,400
Loss before income tax benefit (21,166,300) (9,054,000)
Income tax benefit (4,507,800) (972,800)
Net loss $ (16,658,500) $ (8,081,200)
Loss per share:    
Basic $ (10.78) $ (5.58)
Diluted $ (10.78) $ (5.58)
Weighted average shares used in loss per share computations:    
Basic 1,545,884 1,449,261
Diluted 1,545,884 1,449,261
XML 71 R52.htm IDEA: XBRL DOCUMENT v3.20.1
Acquisition of Management Company (Details)
12 Months Ended
Dec. 31, 2018
USD ($)
Business Combinations [Abstract]  
Cash consideration $ 2,915,000
ACY stock consideration 2,003,000
Consideration paid in the merger 4,918,000
Cash 40,000
Securities 121,000
Accounts & note receivable 28,000
Prepaid expenses 157,000
Property, equipment and furnishings 79,000
Office leasehold 925,000
Accounts payable (85,000)
Accrued vacation (93,000)
Taxes payable (722,000)
Deferred taxes (138,000)
Fair value of assets acquired/(liabilities assumed) 312,000
Excess of consideration paid over net assets acquired 4,606,000
Waiver of JMC margin payable (1,517,000)
Settlement of payable to JMC (562,000)
Settlement loss on management agreement with JMC $ 2,527,000
XML 72 R8.htm IDEA: XBRL DOCUMENT v3.20.1
Consolidated Statements of Cash Flows (Parenthetical) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Statement of Cash Flows [Abstract]    
Cash and cash equivalents $ 2,350,200 $ 1,542,500
Restricted cash 1,076,900 0
Cash, cash equivalents and restricted cash shown in the statement of cash flows 3,427,100 1,542,500
Interest paid 8,123,100 8,173,900
Income taxes paid $ 617,600 $ 1,063,200
XML 73 FilingSummary.xml IDEA: XBRL DOCUMENT 3.20.1 html 100 372 1 false 34 0 false 5 false false R1.htm 00000001 - Document - Document and Entity Information Sheet http://aerocentury.com/role/DocumentAndEntityInformation Document and Entity Information Cover 1 false false R2.htm 00000002 - Statement - Consolidated Balance Sheets Sheet http://aerocentury.com/role/BalanceSheets Consolidated Balance Sheets Statements 2 false false R3.htm 00000003 - Statement - Consolidated Balance Sheets (Parenthetical) Sheet http://aerocentury.com/role/BalanceSheetsParenthetical Consolidated Balance Sheets (Parenthetical) Statements 3 false false R4.htm 00000004 - Statement - Consolidated Statements of Operations Sheet http://aerocentury.com/role/StatementsOfOperations Consolidated Statements of Operations Statements 4 false false R5.htm 00000005 - Statement - Consolidated Statements of Comprehensive Loss Sheet http://aerocentury.com/role/StatementsOfComprehensiveLoss Consolidated Statements of Comprehensive Loss Statements 5 false false R6.htm 00000006 - Statement - Consolidated Statements of Stockholders' Equity Sheet http://aerocentury.com/role/StatementsOfStockholdersEquity Consolidated Statements of Stockholders' Equity Statements 6 false false R7.htm 00000007 - Statement - Consolidated Statements of Cash Flows Sheet http://aerocentury.com/role/StatementsOfCashFlows Consolidated Statements of Cash Flows Statements 7 false false R8.htm 00000008 - Statement - Consolidated Statements of Cash Flows (Parenthetical) Sheet http://aerocentury.com/role/StatementsOfCashFlowsParenthetical Consolidated Statements of Cash Flows (Parenthetical) Statements 8 false false R9.htm 00000009 - Disclosure - Organization and Summary of Significant Accounting Policies Sheet http://aerocentury.com/role/OrganizationAndSummaryOfSignificantAccountingPolicies Organization and Summary of Significant Accounting Policies Notes 9 false false R10.htm 00000010 - Disclosure - Aircraft Lease Assets Sheet http://aerocentury.com/role/AircraftLeaseAssets Aircraft Lease Assets Notes 10 false false R11.htm 00000011 - Disclosure - Assets Held for Sale Sheet http://aerocentury.com/role/AssetsHeldForSale Assets Held for Sale Notes 11 false false R12.htm 00000012 - Disclosure - Operating Segments Sheet http://aerocentury.com/role/OperatingSegments Operating Segments Notes 12 false false R13.htm 00000013 - Disclosure - Concentration of Credit Risk Sheet http://aerocentury.com/role/ConcentrationOfCreditRisk Concentration of Credit Risk Notes 13 false false R14.htm 00000014 - Disclosure - Notes Payable and Accrued Interest Notes http://aerocentury.com/role/NotesPayableAndAccruedInterest Notes Payable and Accrued Interest Notes 14 false false R15.htm 00000015 - Disclosure - Derivative Instruments Sheet http://aerocentury.com/role/DerivativeInstruments Derivative Instruments Notes 15 false false R16.htm 00000016 - Disclosure - Lease Right of Use Asset and Liability Sheet http://aerocentury.com/role/LeaseRightOfUseAssetAndLiability Lease Right of Use Asset and Liability Notes 16 false false R17.htm 00000017 - Disclosure - Fair Value Measurements Sheet http://aerocentury.com/role/FairValueMeasurements Fair Value Measurements Notes 17 false false R18.htm 00000018 - Disclosure - Acquisition of Management Company Sheet http://aerocentury.com/role/AcquisitionOfManagementCompany Acquisition of Management Company Notes 18 false false R19.htm 00000019 - Disclosure - Commitments and Contingencies Sheet http://aerocentury.com/role/CommitmentsAndContingencies Commitments and Contingencies Notes 19 false false R20.htm 00000020 - Disclosure - Income Taxes Sheet http://aerocentury.com/role/IncomeTaxes Income Taxes Notes 20 false false R21.htm 00000021 - Disclosure - Computation of Loss Per Share Sheet http://aerocentury.com/role/ComputationOfLossPerShare Computation of Loss Per Share Notes 21 false false R22.htm 00000022 - Disclosure - Related Party Transactions Sheet http://aerocentury.com/role/RelatedPartyTransactions Related Party Transactions Notes 22 false false R23.htm 00000023 - Disclosure - Subsequent Events Sheet http://aerocentury.com/role/SubsequentEvents Subsequent Events Notes 23 false false R24.htm 00000024 - Disclosure - Organization and Summary of Significant Accounting Policies (Policies) Sheet http://aerocentury.com/role/OrganizationAndSummaryOfSignificantAccountingPoliciesPolicies Organization and Summary of Significant Accounting Policies (Policies) Policies http://aerocentury.com/role/OrganizationAndSummaryOfSignificantAccountingPolicies 24 false false R25.htm 00000025 - Disclosure - Aircraft Lease Assets (Tables) Sheet http://aerocentury.com/role/AircraftLeaseAssetsTables Aircraft Lease Assets (Tables) Tables http://aerocentury.com/role/AircraftLeaseAssets 25 false false R26.htm 00000026 - Disclosure - Operating Segments (Tables) Sheet http://aerocentury.com/role/OperatingSegmentsTables Operating Segments (Tables) Tables http://aerocentury.com/role/OperatingSegments 26 false false R27.htm 00000027 - Disclosure - Notes Payable and Accrued Interest (Tables) Notes http://aerocentury.com/role/NotesPayableAndAccruedInterestTables Notes Payable and Accrued Interest (Tables) Tables http://aerocentury.com/role/NotesPayableAndAccruedInterest 27 false false R28.htm 00000028 - Disclosure - Derivative Instruments (Tables) Sheet http://aerocentury.com/role/DerivativeInstrumentsTables Derivative Instruments (Tables) Tables http://aerocentury.com/role/DerivativeInstruments 28 false false R29.htm 00000029 - Disclosure - Lease Right of Use Asset and Liability (Tables) Sheet http://aerocentury.com/role/LeaseRightOfUseAssetAndLiabilityTables Lease Right of Use Asset and Liability (Tables) Tables http://aerocentury.com/role/LeaseRightOfUseAssetAndLiability 29 false false R30.htm 00000030 - Disclosure - Fair Value Measurements (Tables) Sheet http://aerocentury.com/role/FairValueMeasurementsTables Fair Value Measurements (Tables) Tables http://aerocentury.com/role/FairValueMeasurements 30 false false R31.htm 00000031 - Disclosure - Acquisition of Management Company (Tables) Sheet http://aerocentury.com/role/AcquisitionOfManagementCompanyTables Acquisition of Management Company (Tables) Tables http://aerocentury.com/role/AcquisitionOfManagementCompany 31 false false R32.htm 00000032 - Disclosure - Income Taxes (Tables) Sheet http://aerocentury.com/role/IncomeTaxesTables Income Taxes (Tables) Tables http://aerocentury.com/role/IncomeTaxes 32 false false R33.htm 00000033 - Disclosure - Computation of Loss Per Share (Tables) Sheet http://aerocentury.com/role/ComputationOfLossPerShareTables Computation of Loss Per Share (Tables) Tables http://aerocentury.com/role/ComputationOfLossPerShare 33 false false R34.htm 00000034 - Disclosure - Organization and Summary of Significant Accounting Policies (Details Narrative) Sheet http://aerocentury.com/role/OrganizationAndSummaryOfSignificantAccountingPoliciesDetailsNarrative Organization and Summary of Significant Accounting Policies (Details Narrative) Details http://aerocentury.com/role/OrganizationAndSummaryOfSignificantAccountingPoliciesPolicies 34 false false R35.htm 00000035 - Disclosure - Aircraft Lease Assets (Details) Sheet http://aerocentury.com/role/AircraftLeaseAssetsDetails Aircraft Lease Assets (Details) Details http://aerocentury.com/role/AircraftLeaseAssetsTables 35 false false R36.htm 00000036 - Disclosure - Aircraft Lease Assets (Details 1) Sheet http://aerocentury.com/role/AircraftLeaseAssetsDetails1 Aircraft Lease Assets (Details 1) Details http://aerocentury.com/role/AircraftLeaseAssetsTables 36 false false R37.htm 00000037 - Disclosure - Aircraft Lease Assets (Details 2) Sheet http://aerocentury.com/role/AircraftLeaseAssetsDetails2 Aircraft Lease Assets (Details 2) Details http://aerocentury.com/role/AircraftLeaseAssetsTables 37 false false R38.htm 00000038 - Disclosure - Aircraft Lease Assets (Details 3) Sheet http://aerocentury.com/role/AircraftLeaseAssetsDetails3 Aircraft Lease Assets (Details 3) Details http://aerocentury.com/role/AircraftLeaseAssetsTables 38 false false R39.htm 00000039 - Disclosure - Aircraft Lease Assets (Details 4) Sheet http://aerocentury.com/role/AircraftLeaseAssetsDetails4 Aircraft Lease Assets (Details 4) Details http://aerocentury.com/role/AircraftLeaseAssetsTables 39 false false R40.htm 00000040 - Disclosure - Operating Segments (Details) Sheet http://aerocentury.com/role/OperatingSegmentsDetails Operating Segments (Details) Details http://aerocentury.com/role/OperatingSegmentsTables 40 false false R41.htm 00000041 - Disclosure - Operating Segments (Details 1) Sheet http://aerocentury.com/role/OperatingSegmentsDetails1 Operating Segments (Details 1) Details http://aerocentury.com/role/OperatingSegmentsTables 41 false false R42.htm 00000042 - Disclosure - Concentration of Credit Risk (Details Narrative) Sheet http://aerocentury.com/role/ConcentrationOfCreditRiskDetailsNarrative Concentration of Credit Risk (Details Narrative) Details http://aerocentury.com/role/ConcentrationOfCreditRisk 42 false false R43.htm 00000043 - Disclosure - Notes Payable and Accrued Interest (Details) Notes http://aerocentury.com/role/NotesPayableAndAccruedInterestDetails Notes Payable and Accrued Interest (Details) Details http://aerocentury.com/role/NotesPayableAndAccruedInterestTables 43 false false R44.htm 00000044 - Disclosure - Notes Payable and Accrued Interest (Details Narrative) Notes http://aerocentury.com/role/NotesPayableAndAccruedInterestDetailsNarrative Notes Payable and Accrued Interest (Details Narrative) Details http://aerocentury.com/role/NotesPayableAndAccruedInterestTables 44 false false R45.htm 00000045 - Disclosure - Derivative Instruments (Details) Sheet http://aerocentury.com/role/DerivativeInstrumentsDetails Derivative Instruments (Details) Details http://aerocentury.com/role/DerivativeInstrumentsTables 45 false false R46.htm 00000046 - Disclosure - Derivative Instruments (Details 1) Sheet http://aerocentury.com/role/DerivativeInstrumentsDetails1 Derivative Instruments (Details 1) Details http://aerocentury.com/role/DerivativeInstrumentsTables 46 false false R47.htm 00000047 - Disclosure - Lease Right of Use Asset and Liability (Details) Sheet http://aerocentury.com/role/LeaseRightOfUseAssetAndLiabilityDetails Lease Right of Use Asset and Liability (Details) Details http://aerocentury.com/role/LeaseRightOfUseAssetAndLiabilityTables 47 false false R48.htm 00000048 - Disclosure - Lease Right of Use Asset and Liability (Details 1) Sheet http://aerocentury.com/role/LeaseRightOfUseAssetAndLiabilityDetails1 Lease Right of Use Asset and Liability (Details 1) Details http://aerocentury.com/role/LeaseRightOfUseAssetAndLiabilityTables 48 false false R49.htm 00000049 - Disclosure - Lease Right of Use Asset and Liability (Details 2) Sheet http://aerocentury.com/role/LeaseRightOfUseAssetAndLiabilityDetails2 Lease Right of Use Asset and Liability (Details 2) Details http://aerocentury.com/role/LeaseRightOfUseAssetAndLiabilityTables 49 false false R50.htm 00000050 - Disclosure - Fair Value Measurements (Details) Sheet http://aerocentury.com/role/FairValueMeasurementsDetails Fair Value Measurements (Details) Details http://aerocentury.com/role/FairValueMeasurementsTables 50 false false R51.htm 00000051 - Disclosure - Fair Value Measurements (Details 1) Sheet http://aerocentury.com/role/FairValueMeasurementsDetails1 Fair Value Measurements (Details 1) Details http://aerocentury.com/role/FairValueMeasurementsTables 51 false false R52.htm 00000052 - Disclosure - Acquisition of Management Company (Details) Sheet http://aerocentury.com/role/AcquisitionOfManagementCompanyDetails Acquisition of Management Company (Details) Details http://aerocentury.com/role/AcquisitionOfManagementCompanyTables 52 false false R53.htm 00000053 - Disclosure - Income Taxes (Details) Sheet http://aerocentury.com/role/IncomeTaxesDetails Income Taxes (Details) Details http://aerocentury.com/role/IncomeTaxesTables 53 false false R54.htm 00000054 - Disclosure - Income Taxes (Details 1) Sheet http://aerocentury.com/role/IncomeTaxesDetails1 Income Taxes (Details 1) Details http://aerocentury.com/role/IncomeTaxesTables 54 false false R55.htm 00000055 - Disclosure - Income Taxes (Details 2) Sheet http://aerocentury.com/role/IncomeTaxesDetails2 Income Taxes (Details 2) Details http://aerocentury.com/role/IncomeTaxesTables 55 false false R56.htm 00000056 - Disclosure - Income Taxes (Details 3) Sheet http://aerocentury.com/role/IncomeTaxesDetails3 Income Taxes (Details 3) Details http://aerocentury.com/role/IncomeTaxesTables 56 false false R57.htm 00000057 - Disclosure - Computation of Loss Per Share (Details) Sheet http://aerocentury.com/role/ComputationOfLossPerShareDetails Computation of Loss Per Share (Details) Details http://aerocentury.com/role/ComputationOfLossPerShareTables 57 false false R58.htm 00000058 - Disclosure - Related Party Transactions (Details Narrative) Sheet http://aerocentury.com/role/RelatedPartyTransactionsDetailsNarrative Related Party Transactions (Details Narrative) Details http://aerocentury.com/role/RelatedPartyTransactions 58 false false All Reports Book All Reports acy-20181231.xml acy-20181231.xsd acy-20181231_cal.xml acy-20181231_def.xml acy-20181231_lab.xml acy-20181231_pre.xml http://xbrl.sec.gov/dei/2019-01-31 http://fasb.org/srt/2019-01-31 http://fasb.org/us-gaap/2019-01-31 true true XML 74 R33.htm IDEA: XBRL DOCUMENT v3.20.1
Computation of Loss Per Share (Tables)
12 Months Ended
Dec. 31, 2019
Loss per share:  
Basic and diluted earnings per share
   

 For the Years Ended

December 31,

 
    2019     2018  
Net loss   $ (16,658,500 )   $ (8,081,200 )
Weighted average shares outstanding for the period     1,545,884       1,449,261  
Basic loss per share   $ (10.78 )   $ (5.58 )
Diluted loss per share   $ (10.78 )   $ (5.58 )
XML 75 R37.htm IDEA: XBRL DOCUMENT v3.20.1
Aircraft Lease Assets (Details 2) - USD ($)
Dec. 31, 2019
Dec. 31, 2018
Aircraft Lease Assets [Abstract]    
Gross minimum lease payments receivable $ 9,096,400 $ 17,107,100
Less unearned interest (286,600) (1,856,200)
Difference between minimum lease payments receivable and collateral value of leases (7,700) 0
Finance leases receivable $ 8,802,100 $ 15,250,900
XML 76 R18.htm IDEA: XBRL DOCUMENT v3.20.1
Acquisition of Management Company
12 Months Ended
Dec. 31, 2019
Business Combinations [Abstract]  
Acquisition of Management Company

In October 2017, AeroCentury, JHC and certain other parties entered into the Merger Agreement for the acquisition of JHC by AeroCentury for consideration of approximately $2.9 million in cash and 129,217 shares of common stock of AeroCentury, as determined pursuant to the Merger Agreement. JHC is the sole shareholder of JMC, which is the manager of the Company’s assets as described in Note 14 below. The Merger was consummated on October 1, 2018.

 

As a subsidiary of the Company, JHC’s results are included in the Company’s consolidated financial statements beginning on October 1, 2018. In April 2018, subsequent to the execution of the Merger Agreement for the acquisition of JHC, which was signed in October 2017, the Company, JHC and JMC entered into a waiver and reimbursement agreement (the “Waiver/Reimbursement Agreement”), pursuant to which JHC and JMC agreed to waive their right to receive management and acquisition fees (“Contract Fees”) otherwise owed by the Company to JMC pursuant to the Management Agreement for all periods after March 31, 2018 and until the consummation of the Merger, and in return, the Company agreed to reimburse JMC for expenses incurred in providing management services set forth under the Management Agreement. As a result of the Waiver/Reimbursement Agreement, the Company became responsible for all expenses incurred by JMC in managing the Company as of April 1, 2018, including employee salaries, office rent and all other general and administrative expenses. As a result of the Merger, the Company assumed all of JHC’s assets, comprised primarily of securities, prepaid expenses and an office lease, as well as liabilities of approximately $0.9 million.

 

During the year ended December 31, 2018, the Company accrued $485,000 of expenses related to the Merger transaction. Such expenses are included in professional fees, general and administrative and other in the Company’s consolidated statements of operations.

 

During the fourth quarter of 2018, the Company also recorded a settlement loss of $2,527,000 related to the Merger. The settlement loss amount was estimated using an income approach. The Company assessed the contractual terms and conditions of the previous management agreement between the company and JMC (the “Management Agreement”) as compared to current market conditions and the historical and expected financial performance of the Company and JMC. Based on the analysis performed, the Company determined that the contractual payment terms were above market rates. The present value of the expected differential between payments previously required by the Management Agreement and those that would be required if the contract reflected current market terms was calculated over the Management Agreement contractual term. As the management fee previously paid by the Company was deemed to be above market and the settlement of this pre-existing relationship resulted in a loss, the loss was recognized in the consolidated statement of operations at the acquisition date and reduced the estimated purchase consideration transferred.

 

The Company did not recognize any goodwill on its acquisition of JHC because the only customer relationship JHC had was through its contract with the Company for management of the Company’s assets and the Company cannot recognize goodwill attributable to its relationship with itself.

 

The following table shows the allocation of the purchase price paid by the Company for its acquisition of JHC, the assets and liabilities that were assumed as a result of the Merger and calculation of the settlement loss.

 

Consideration paid in the merger:  
  Cash consideration $ 2,915,000
  ACY stock consideration 2,003,000
  4,918,000
   
Fair value of assets acquired/(liabilities assumed):  
  Cash 40,000
  Securities 121,000
  Accounts & note receivable 28,000
  Prepaid expenses 157,000
  Property, equipment and furnishings 79,000
  Office leasehold 925,000
  Accounts payable  (85,000)
  Accrued vacation  (93,000)
  Taxes payable  (722,000)
  Deferred taxes  (138,000)
  312,000
   
Excess of consideration paid over net assets acquired 4,606,000
   
Waiver of JMC Margin payable  (1,517,000)
Settlement of payable to JMC (562,000)
   
Settlement Loss on Management Agreement with JMC $ 2,527,000

 

XML 77 R14.htm IDEA: XBRL DOCUMENT v3.20.1
Notes Payable and Accrued Interest
12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Notes Payable and Accrued Interest

At December 31, 2019 and December 31, 2018, the Company’s notes payable and accrued interest consisted of the following:

 

   

December 31,

2019

   

December 31,

2018

 
MUFG Credit Facility:            
   Principal   $ 84,084,100     $ 122,400,000  
   Unamortized debt issuance costs     (3,084,200 )     (674,300 )
   Accrued interest     376,200       139,300  
Special-purpose financing:                
   Principal:                
      UK SPE Financing     -       9,211,200  
      Nord Term Loans     30,914,500       -  
   Unamortized debt issuance costs     (741,500 )     -  
   Accrued interest     89,300       16,000  
    $ 111,638,400     $ 131,092,200  

 

(a) MUFG Credit Facility

 

The unused amount of the MUFG Credit Facility was $915,900 and $47,600,000 as of December 31, 2019 and December 31, 2018, respectively. The weighted average interest rate on the MUFG Credit Facility was 10.23% and 5.92% at December 31, 2019 and December 31, 2018 respectively.

 

In addition to payment obligations (including principal and interest payments on outstanding borrowings and commitment fees based on the amount of any unused portion of the MUFG Credit Facility), the MUFG Credit Facility agreement contains financial covenants with which the Company must comply, including, but not limited to, positive earnings requirements, minimum net worth standards and certain ratios, such as debt to equity ratios.

 

As of December 31, 2018, the Company was not in compliance with the interest coverage, debt service coverage, no-net-loss and revenue concentration covenants under the MUFG Credit Facility agreement. The noncompliance resulted primarily from the Company recording aircraft impairment charges and losses on sales of aircraft totaling $3.4 million during 2018. The amendments included in the MUFG Credit Facility agreement in February 2019 discussed below cured the December 31, 2018 noncompliance and revised the compliance requirements through the extended maturity date of the MUFG Credit Facility.

 

In February 2019, the MUFG Credit Facility, which was to expire on May 31, 2019, was extended to February 19, 2023, and was amended in certain other respects. Also, four aircraft that previously served as collateral under the MUFG Credit Facility and two aircraft that previously served as collateral under special-purpose subsidiary financings were refinanced in February 2019 using non-recourse term loans (the Nord Term Loans) with an aggregate principal of $44.3 million.

 

During the third quarter of 2019 as a result of significant past due payments from the customer, the Company terminated the leases for, and repossessed, four of its aircraft held for lease The customer, a European regional airline and one of the Company’s largest customers based on operating lease revenue, subsequently ceased operations and declared bankruptcy. The Company applied the security deposits and a portion of collected maintenance reserves it held against past due rent due from the customer. The remaining balance of collected maintenance reserves equal to $17.0 million was recognized as maintenance reserves revenue. The Company also recorded impairment losses totaling $22.3 million for the four aircraft, one of which was sold during the fourth quarter, based on appraised values for three of the aircraft and expected sales proceeds for the fourth. As a result of the lease terminations, the three aircraft were newly appraised based on the maintenance-adjusted condition of the aircraft, rather than the basis previously used for their appraisal, which considered future cash flows under the leases.

 

During the third quarter of 2019, the Company also recorded impairment losses of $15,000 on another of its aircraft held for sale and $1.0 million related to airframe parts that are held for sale, both of which were based on estimated sales proceeds. As a result of payment delinquencies by two other customers that lease three of the Company’s aircraft subject to finance leases, the Company also recorded a bad debt allowance of $2.9 million during 2019. As a result of the aforementioned impairment losses and bad debt allowance, as of September 30, 2019, the Company was in default of its borrowing base covenant under the MUFG Credit Facility (the “Borrowing Base Default”), due to the outstanding balance under the MUFG Credit Facility exceeding the required minimum collateral value coverage set forth in the MUFG Credit Facility (a “Borrowing Base Deficit”) by approximately $9.4 million. Subsequent updated appraisal values for assets included in the borrowing base of the MUFG Credit Facility resulted in an increase in the Borrowing Base Deficit to $29.8 million at December 31, 2019. At that time, the Company reclassified two aircraft that were repossessed during the third quarter from held for lease to held for sale. The Company also reduced its bad debt allowance during the fourth quarter based on payments received in January.

 

The Company was not in compliance with various covenants contained in the MUFG Credit Facility agreement, including those related to interest coverage and debt service coverage ratios and a no-net-loss requirement under the MUFG Credit Facility, at September 30, 2019 and at December 31, 2019.

 

On October 15, 2019, the agent bank for the Credit Facility Lenders delivered a Reservation of Rights Letter to the Company which contained notice of the Borrowing Base Default and a demand for repayment of the amount of the Borrowing Base Deficit by January 13, 2020, and also contained formal notices of default under the MUFG Credit Facility relating to the alleged material adverse effects on the Company’s business as a result of the early termination of leases for three aircraft and potential financial covenant noncompliance based on the Company’s financial projections provided to the Credit Facility Lenders (the Borrowing Base Default and such other defaults referred to as the “Specified Defaults”). The Reservation of Rights Letter also informed the Company that further advances under the MUFG Credit Facility agreement would no longer be permitted due to the existence of such defaults.

 

In October, November and December 2019, the Company, agent bank and the Credit Facility Lenders entered into a Forbearance Agreement and amendments extending the Forbearance Agreement with respect to the Specified Defaults under the MUFG Credit Facility. The Forbearance Agreement (i) provided that the Credit Facility Lenders temporarily forbear from exercising default remedies under the MUFG Credit Facility agreement for the Specified Defaults, (ii) reduced the maximum availability under the MUFG Credit Facility to $85 million and (iii) extended the cure period for the Borrowing Base Deficit from January 13, 2020 to February 12, 2020. The Forbearance Agreement also allowed the Company to continue to use LIBOR as its benchmark interest rate, but increased the margin on the Company’s LIBOR-based loans under the MUFG Credit Facility from a maximum of 3.75% to 6.00% and set the margin on the Company’s prime rate-based loans at 2.75%, as well as added a provision for paid-in-kind interest (“PIK Interest) of 2.5% to be added to the outstanding balance of the MUFG Credit Facility debt in lieu of a cash payment. The Company paid cash fees of $406,250 in connection with the Forbearance Agreement and amendments, as well as a fee of $832,100, which was added to the outstanding balance of the MUFG Credit Facility debt in lieu of a cash payment. The Forbearance Agreement was in effect until December 30, 2019, after which the Company and the Credit Facility Lenders agreed not to further amend the Forbearance Agreement. On February 12, 2020, the agent bank for the Credit Facility Lenders delivered a Reservation of Rights Letter to the Company which contained notice of the failure to cure the Borrowing Base Default by February 12, 2020.

 

The Company is currently in negotiations with the Credit Facility Lenders to convert the MUFG Credit Facility into the MUFG Term Loan. Therefore, the MUFG Credit Facility is expected to no longer be a source of acquisition financing. The Company has engaged an investment banking advisor to help (i) formulate a Recapitalization Plan and analyze various strategic financial alternatives to address the Company’s capital structure, strategic and financing needs, as well as corporate level transactions aimed at achieving maximum value for the Company’s stockholders; and (ii) locate and negotiate with potential lenders, investors or transaction partners who would play a role in the Company’s Recapitalization Plan. The Company’s ability to develop, obtain approval for and achieve its Recapitalization Plan is subject to a variety of factors. If the Company is not able to satisfy the requirements under the Recapitalization Plan, maintain compliance with its MUFG Indebtedness or raise sufficient capital to repay all amounts owed under the MUFG Indebtedness, the Company’s financial condition and liquidity would be materially adversely affected and its ability to continue operations could be materially jeopardized.

 

(b) Nord Term Loans 

 

On February 8, 2019, the Company, through four wholly-owned subsidiary limited liability companies (“LLC Borrowers”), entered into a term loan agreement with the U.S. branch of a German bank (“Term Loan Lender”) that provides for six separate term loans with an aggregate principal amount of $44.3 million. Each of the Nord Term Loans is secured by a first priority security interest in a specific aircraft (“Term Loan Collateral Aircraft”) owned by an LLC Borrower, the lease for such aircraft, and a pledge by the Company of its membership interest in each of the LLC Borrowers, pursuant to a Security Agreement (the “Security Agreement”) among the LLC Borrowers and a security trustee, and certain pledge agreements. Two of the Term Loan Collateral Aircraft that are owned by the Company’s two UK special-purpose entities were previously financed using special-purpose financing. The interest rates payable under the Nord Term Loans vary by aircraft, and are based on a fixed margin above either 30-day or 3-month LIBOR. The proceeds of the Nord Term Loans were used to pay down the MUFG Credit Facility and pay off the UK LLC SPE Financing. The maturity of each Nord Term Loan varies by aircraft, with the first Nord Term Loan maturing in October 2020 and the last Nord Term Loan maturing in May 2025. The debt under the Term Loans is expected to be fully amortized by rental payments received by the LLC Borrowers from the lessees of the Term Loan Collateral Aircraft during the terms of their respective leases and remarketing proceeds.

 

The Nord Term Loans include covenants that impose various restrictions and obligations on the LLC Borrowers, including covenants that require the LLC Borrowers to obtain the Term Loan Lender’s consent before they can take certain specified actions, and certain events of default. If an event of default occurs, subject to certain cure periods for certain events of default, the Term Loan Lender would have the right to terminate its obligations under the Term Loans, declare all or any portion of the amounts then outstanding under the Term Loans to be accelerated and due and payable, and/or exercise any other rights or remedies it may have under applicable law, including foreclosing on the assets that serve as security for the Nord Term Loans. The Company was in compliance with all covenants under the Nord Term Loans at December 31, 2019.

 

One of the aircraft that was subject to Nord Term Loan financing was sold during the fourth quarter of 2019 and the related interest rate swap was terminated.

 

As discussed in Note 15, in March 2020, one of the Company’s customers, which leases two regional jet aircraft subject to Nord Term Loan financing, did not make its quarterly rent payment which, in turn, resulted in a loan payment default by the Company’s special-purpose subsidiary that owns the aircraft. The Company is currently discussing remedies with both the customer and Nord.

 

XML 78 R10.htm IDEA: XBRL DOCUMENT v3.20.1
Aircraft Lease Assets
12 Months Ended
Dec. 31, 2019
Aircraft Lease Assets [Abstract]  
Aircraft Lease Assets

As discussed in Note 1, the Company adopted Topic 842 on January 1, 2019, and elected to use certain practical expedients that resulted in continuing the classification of capitalized indirect cost associated with its operating and finance leases. As such, there was no adjustment to its accounts related to the carrying value of its sales-type and finance leases, assets held for lease or capitalized initial direct costs, and its leases continue to be accounted for in the same manner as they had been before adoption of the new accounting standard.

 

The Company’s leases are normally “triple net leases” under which the lessee is obligated to bear all costs, including tax, maintenance and insurance, on the leased assets during the term of the lease. In most cases, the lessee is obligated to provide a security deposit or letter of credit to secure its performance obligations under the lease, and in some cases, is required to pay maintenance reserves based on utilization of the aircraft, which reserves are available for qualified maintenance costs during the lease term and may or may not be refundable at the end of the lease. Typically, the leases also contain minimum return conditions, as well as an economic adjustment payable by the lessee (and in some instances by the lessor) for amounts by which the various aircraft or engine components are worse or better than a targeted condition set forth in the lease. Some leases contain renewal or purchase options, although the Company’s sales-type and finance leases all contain a bargain purchase option at lease end which the Company expects the lessees to exercise or require that the lessee purchase the aircraft at lease-end for a specified price.

 

Because all of the Company’s leases transfer use and possession of the asset to the lessee and contain no other substantial undertakings by the Company, the Company has concluded that all of its lease contracts qualify for lease accounting under Topic 842. Certain lessee payments of what would otherwise be lessor costs (such as insurance and property taxes) are excluded from both revenue and expense.

 

The Company evaluates the expected return on its leased assets by considering both the rents receivable over the lease term, any expected additional consideration at lease end, and the residual value of the asset at the end of the lease. In some cases, the Company depreciates the asset to the expected residual value because it expects to sell the asset at lease end; in other cases, it may expect to re-lease the asset to the same or another lessee and the depreciation term and related residual value will differ from the initial lease term and initial residual value. Residual value is estimated by considering future estimates provided by independent appraisers, although it may be adjusted by the Company based on expected return conditions or location, specific lessee considerations, or other market information.

 

Two of the Company’s operating lease assets are subject to manufacturer residual value guarantees at the end of their lease terms in the fourth quarter of 2020 and totaling approximately $20 million. Three additional aircraft are subject to residual value guarantees, but the Company expects to retain the aircraft after the date of such guarantees and re-lease them to the current or other lessees. The Company considers the best market for managing and/or selling its assets at the end of its leases, although it does not expect to retain ownership of the assets under finance leases given the lessees’ bargain purchase options or required purchase.

 

(a) Assets Held for Lease

 

At December 31, 2019 and December 31, 2018, the Company’s aircraft and aircraft engines held for lease consisted of the following:

 

    December 31, 2019     December 31, 2018  

Type

 

Number

Owned

    % of net book value    

Number

owned

    % of net book value  
Regional jet aircraft     9       80 %     13       81 %
Turboprop aircraft     2       20 %     4       18 %
Engines     -       - %     1       1 %

 

The Company did not purchase any aircraft held for lease during 2019. During the third quarter, the Company terminated the leases for four of its aircraft held for lease as a result of significant past due payments from the customer and repossessed the aircraft. The customer subsequently ceased operations and declared bankruptcy. The Company applied the security deposits and a portion of collected maintenance reserves it held to the past due rent due from the customer and recorded $16,968,400 of maintenance reserves revenue for the balance of the collected maintenance reserves. The Company also recorded impairment losses totaling $28,424,000 for the four aircraft based on appraised values for three of the aircraft and expected sales proceeds for the fourth aircraft, and reclassified the four aircraft to held for sale. As a result of the lease terminations, the appraised values were based on the maintenance-adjusted condition of the aircraft, rather than the previous basis, which reflected future cash flows under the leases. One of the aircraft was sold during the fourth quarter of 2019.

 

None of the Company’s aircraft held for lease were off lease at December 31, 2019. As discussed below, the Company has seven off-lease aircraft that are held for sale: (i) two turboprop aircraft that were reclassified to held for sale in the third quarter of 2018, one of which is subject to a short-term lease, (ii) three regional jet aircraft that were reclassified to held for sale during 2019 and (iii) two turboprop aircraft that are being sold in parts.

 

As of December 31, 2019, minimum future lease revenue payments receivable under non-cancelable operating leases were as follows:

 

Years ending December 31      
       
2020   $ 17,650,900  
2021     10,392,000  
2022     8,639,600  
2023     8,639,600  
2024     6,826,100  
Thereafter     1,683,300  
    $ 53,831,500  

 

The remaining weighted average lease term of the Company’s assets under operating leases was 41 months and 58 months at December 31, 2019 and December 31, 2018, respectively.

 

(b) Sales-Type and Finance Leases

 

As a result of a lease amendment containing a purchase option for an older aircraft at lease end during the second quarter of 2019, the Company reclassified an asset that was previously held for lease to a sales-type finance lease receivable and recorded a loss of $170,600. The aircraft was sold to the lessee at lease expiration during the fourth quarter.

 

During 2019, the Company also amended the sales-type leases for two aircraft to accommodate the lessee’s request to transfer a portion of future lease payment obligations from one of the leases to the other, as well as to assign one of the leases and related aircraft to a different lessee. Payments for both leases were also amended to reflect a higher implicit interest rate, such that the fair value of the leases after amendment equaled the carrying value of the leases before the amendment. No gain or loss was recognized as a result of these lease modifications. As a result of payment delinquencies by these two customers, the Company recorded a bad debt allowance of $2,907,800. As discussed in Note 15, the leases for these two aircraft were further amended in January 2020 and a third aircraft leased to one of the lessees was sold to the lessee.

 

At December 31, 2019 and December 31, 2018, the net investment included in sales-type finance leases and direct financing leases receivable were as follows:

 

   

December 31,

2019

   

December 31,

2018

 
Gross minimum lease payments receivable   $ 9,096,400     $ 17,107,100  
Less unearned interest     (286,600 )     (1,856,200 )
Difference between minimum lease payments receivable and collateral value of leases     (7,700 )     -  
Finance leases receivable   $ 8,802,100     $ 15,250,900  

 

As of December 31, 2019, minimum future payments receivable under finance leases were as follows:

 

Years ending December 31      
       
2020   $ 3,817,200  
2021     2,608,200  
2022     2,114,000  
2023     557,000  
    $ 9,096,400  

 

The remaining weighted average lease term of the Company’s assets under sales-type and finance leases was 20 months and 32 months at December 31, 2019 and December 31, 2018, respectively.

 

As discussed in Note 15, the customer for three of the Company’s aircraft that are subject to direct financing leases purchased the aircraft in March 2020.

 

The following is a roll forward of the Company’s allowance for doubtful accounts from December 31, 2018 to December 31, 2019:

 

Balance, December 31, 2018   $ -  
Additions charged to expense     2,908,600  
Balance, December 31, 2019   $ 2,908,600