2.	Revenue recognition

The Company accounts for revenue in accordance with ASC

606,

which was adopted on

April 1, 2018,

using the modified retrospective method. As substantially all of the Company’s revenue is derived from contracts with an initial expected duration of

one

year or less the Company has applied the practical expedient to exclude consideration of significant financing components from the determination of transaction price, to expense costs incurred to obtain a contract, and to

not

disclose the value of unsatisfied performance obligations.

The following is a description of the Company’s performance obligations.

Type of Revenue	Nature, Timing of Satisfaction of Performance Obligations, and Significant Payment Terms
Product Sales	The Company generates revenue from sales of various distinct products such as parts, aircraft equipment, printing equipment, jet engines, airframes, and scrap metal to its customers. A performance obligation is created when the Company accepts an order from a customer to provide a specified product. Each product ordered by a customer represents a performance obligation. The Company recognizes revenue when obligations under the terms of the contract are satisfied; generally, this occurs at a point-in-time upon shipment or when control is transferred to the customer. Transaction prices are based on contracted terms, which are at fixed amounts based on standalone selling prices. While the majority of the Company's contracts do not have variable consideration, for the limited number of contracts that do, the Company records revenue based on the standalone selling price less an estimate of variable consideration (such as rebates, discounts or prompt payment discounts). The Company estimates these amounts based on the expected incentive amount to be provided to customers and reduces revenue accordingly. Performance obligations are short-term in nature and customers are typically billed upon transfer of control. The Company records all shipping and handling fees billed to customers as revenue. The terms and conditions of the customer purchase orders or contracts are dictated by either the Company’s standard terms and conditions or by a master service agreement or contract.
Support Services	The Company provides a variety of support services such as aircraft maintenance, printer maintenance, and short-term repair services to its customers. Additionally, the Company operates certain aircraft routes on behalf of FedEx. A performance obligation is created when the Company agrees to provide a particular service to a customer. For each service, the Company recognizes revenues over time as the customer simultaneously receives the benefits provided by the Company's performance. This revenue recognition can vary from when the Company has a right to invoice to the output or input method depending on the structure of the contract and management’s analysis. For repair-type services, the Company records revenue over-time based on an input method of costs incurred to total estimated costs. The Company believes this is appropriate as the Company is enhancing an asset that the customer controls as repair work, such as labor hours are incurred and parts installed, is being performed. The vast majority of repair-services are short term in nature and are typically billed upon completion of the service. Some of the Company’s contracts contain a promise to stand ready as the Company is obligated to perform certain maintenance or administrative services. For most of these contracts, the Company applies the 'as invoiced' practical expedient as the Company has a right to consideration from the customer in an amount that corresponds directly with the value of the entity's performance completed to date. A small number of contracts are accounted for as a series and recognized equal to the amount of consideration the Company is entitled to less an estimate of variable consideration (typically rebates). These services are typically ongoing and are generally billed on a monthly basis.

In addition to the above type of revenues, the Company also has Leasing Revenue, which is in scope under Topic

840

(Leases) and out of scope under Topic

606

and Other Revenues (Freight, Management Fees, etc.) which are immaterial for disclosure under Topic

606.

The following table summarizes disaggregated revenues by type:

	Three Months Ended		Six Months Ended
	September 30, 2018		September 30, 2018
Product Sales
Air Cargo	$	5,003,482	$	10,523,093
Ground equipment sales		12,447,475		18,616,578
Ground support services		2,293,684		4,716,265
Commercial jet engines and parts		7,379,607		32,408,721
Printing equipment and maintenance		122,238		408,880
Corporate		-		-
Support Services
Air Cargo		11,985,052		24,081,926
Ground equipment sales		148,118		248,710
Ground support services		6,180,353		12,785,618
Commercial jet engines and parts		1,327,328		2,293,154
Printing equipment and maintenance		12,293		19,951
Corporate		16,475		16,475
Leasing Revenue
Air Cargo		-		-
Ground equipment sales		15,357		46,359
Ground support services		-		-
Commercial jet engines and parts		1,825,861		3,027,372
Printing equipment and maintenance		-		-
Corporate		32,182		72,249
Other
Air Cargo		76,066		100,240
Ground equipment sales		227,847		311,930
Ground support services		-		19,795
Commercial jet engines and parts		109,995		233,719
Printing equipment and maintenance		5,414		9,937
Corporate		131,950		267,275

Total	$	49,340,777	$	110,208,246

The following table summarizes total revenues by segment:

	Three Months Ended		Six Months Ended
	September 30, 2018		September 30, 2018
Air Cargo	$	17,064,600	$	34,705,258
Ground equipment sales		12,838,796		19,223,577
Ground support services		8,474,037		17,521,677
Commercial jet engines and parts		10,642,791		37,962,966
Printing equipment and maintenance		139,945		438,768
Corporate		180,608		356,000

Total	$	49,340,777	$	110,208,246

See Note

for the Company's disaggregated revenues by geographic region and Note

for the Company’s disaggregated revenues by segment. These notes disaggregate revenue recognized from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.

Contract Balances and Costs

The Company does

not

have material contract assets, liabilities or costs associated with arrangements with its customers at

September 30, 2018.