v3.25.3
Financial Statement Elements
 9 Months Ended
Sep. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Financial Statement Elements

3.          Financial Statement Elements

 

Property and Equipment

 

Property and equipment, net, as of September 30, 2025 and December 31, 2024 consists of the following:

        
   September 30,   December 31, 
   2025   2024 
         
Aircraft and improvements  $8,586,598   $6,548,355 
Equipment   126,872    121,437 
Building Signage   12,885    12,885 
Vehicles   3,000    3,000 
Furniture   11,239    11,239 
Total:   8,740,594    6,696,916 
Less accumulated depreciation   (650,277)   (252,514)
Total property and equipment  $8,090,317   $6,444,402 

 

Maintenance Reserves

 

The Company is a party to long term service contracts to perform engine replacement and major maintenance. These contracts extend the useful life of an engine by providing major maintenance and/or replacement engines to mitigate risk of lost charter revenue due to aircraft downtime. These contracts require the Company to pay in advance, prior to services being performed or replacement parts being provided. Payments made for such contracts for aircraft operated under operating leases are expensed as incurred. Payments made for the long-term service contracts for aircraft owned or financed are capitalized as incurred on the balance sheet and not depreciated. When the engine reserve company replaces or performs major maintenance, the cost of that event is then capitalized and depreciated over the useful life of the replacement part/service life of the major maintenance/replacement.