0001558370-24-002777 | 10-K | XBRL Viewer

Year Ended December 31,

Inventory reserves

STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Restricted Stock Unit activity


				Weighted Average
		Weighted Average		Remaining Contractual
	Amount	Grant Date Fair Value		Life (Years)
Outstanding at December 31, 2022	1,374,383	$	10.72		2.88
Granted	390,887		14.96
Forfeited	(40,516)		14.87
Vested ⁽¹⁾	(1,192,355)		11.14
Outstanding December 31, 2023	532,399	$	14.82		1.84


				Weighted Average
		Weighted Average		Remaining Contractual
	Amount	Grant Date Fair Value		Life (Years)
Outstanding at December 31, 2021	1,669,300	$	10.10		2.02
Granted	278,473		14.80
Forfeited	(15,080)		13.69
Vested ⁽²⁾	(558,310)		10.80
Outstanding December 31, 2022	1,374,383	$	10.72		2.88

(1)

Includes 1,063,333 performance units that vested at the 200% vesting target effective December 22, 2023, for which 526,888 shares of common stock underlying vested RSUs were withheld to cover tax obligations. The shares withheld are again available for issuance under the plan.

(2)

Includes 531,667 performance units that vested at the 200% vesting target effective December 22, 2022, for which 167,007 shares of common stock underlying vested RSUs were withheld to cover tax obligations. The shares withheld are again available for issuance under the plan.

LEASES - Lease costs (Details) - USD ($)	12 Months Ended
LEASES - Lease costs (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
LEASES
Operating lease cost	$ 7,001,000	$ 5,005,000
Short-term lease cost	392,000	170,000
Variable lease cost	397,000	1,071,000
Total Lease cost	$ 7,790,000	$ 6,246,000

STOCKHOLDERS' EQUITY - Common Stock (Details) - USD ($)	Nov. 08, 2022	Dec. 31, 2023	Dec. 31, 2022
STOCKHOLDERS' EQUITY
Number of shares authorized to repurchase	1,500,000
Par value per share	$ 0.0001	$ 0.0001	$ 0.0001
Repurchase price per share	$ 14.8025
Repurchase value	$ 22,203,750
Shares authorized		200,000,000	200,000,000
Shares issued		52,954,430	51,189,461
Shares outstanding		52,954,430	51,189,461

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Total
Balance at beginning at Dec. 31, 2020	$ 4	$ 292,593	$ 58,858		$ 351,455
Balance at beginning (in shares) at Dec. 31, 2020	41,046,216
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of Earn-Out shares		(694)			(694)
Issuance of Earn-Out shares (in shares)	3,709,803
Shares issued upon exercise of warrants		9,282			9,282
Shares issued upon exercise of warrants (in shares)	807,114
Shares tendered for cashless redemption of public warrants	$ 1	(1)
Shares tendered for cashless redemption of public warrants (in shares)	6,079,966
Share-based compensation		12,721			12,721
Share-based compensation (in shares)	30,000
Net (loss) income			36,115		36,115
Balance at ending at Dec. 31, 2021	$ 5	313,901	94,973		408,879
Balance at ending (in shares) at Dec. 31, 2021	51,673,099
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued upon exercise of warrants (in shares)	47,867
Share-based compensation		16,498			16,498
Shares issued under the 2020 Employee Stock Purchase Plan		538			$ 538
Shares issued under the 2020 Employee Stock Purchase Plan (in shares)	46,726				46,726
Shares issued under the 2020 Equity Incentive Plan (in shares)	921,769
Shares surrendered for tax withholdings on equity awards		(2,592)			$ (2,592)
Purchase of treasury stock				$ (22,204)	(22,204)
Purchase of treasury stock (in shares)				1,500,000
Retirement of treasury stock		(22,204)		$ 22,204
Retirement of treasury stock (in shares)	(1,500,000)			(1,500,000)
Net (loss) income			43,861		43,861
Balance at ending at Dec. 31, 2022	$ 5	306,141	138,834		444,980
Balance at ending (in shares) at Dec. 31, 2022	51,189,461
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation		12,051			12,051
Shares issued under the 2020 Employee Stock Purchase Plan		566			$ 566
Shares issued under the 2020 Employee Stock Purchase Plan (in shares)	45,755				45,755
Shares issued under the 2020 Equity Incentive Plan (in shares)	1,719,214
Shares surrendered for tax withholdings on equity awards		(7,019)			$ (7,019)
Net (loss) income			(5,563)		(5,563)
Balance at ending at Dec. 31, 2023	$ 5	$ 311,739	$ 133,271		$ 445,015
Balance at ending (in shares) at Dec. 31, 2023	52,954,430

AIRCRAFT AND ENGINES HELD FOR LEASE AND LEASE RENTAL

12 Months Ended

Dec. 31, 2023

AIRCRAFT AND ENGINES HELD FOR LEASE AND LEASE RENTAL

AIRCRAFT AND ENGINES HELD FOR LEASE AND LEASE RENTAL

NOTE H - AIRCRAFT AND ENGINES HELD FOR LEASE AND LEASE RENTAL

Aircraft and engines held for operating leases, net, consists of the following (in thousands):


	December 31, 2023		December 31, 2022
Aircraft and engines held for lease	$	58,136	$	83,902
Less accumulated depreciation		(31,661)		(52,614)
	$	26,475	$	31,288

The Company did not record an impairment of leased assets during the years ended December 31, 2023 and 2021, respectively. The Company recorded an impairment $0.9 million for the year ended December 31, 2022, and is included in cost of leasing in the Consolidated Statements of Operations.

Total depreciation expense included in cost of leasing in the Consolidated Statements of Operations is as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Depreciation expense	$	4,597	$	6,606	$	8,869

Contingent rental fees recognized as revenues related to supplemental rent were as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Contingent rental fees	$	7,693	$	12,776	$	8,218

The Company’s current operating lease agreements for Flight Equipment on lease expire over the next two to nine months. The minimum future lease rentals contracted to be received under these existing operating leases of Flight Equipment at December 31, 2023 are $5.1 million, all expected to be received in 2024. These amounts are based upon the assumption that Flight Equipment under operating leases will remain on lease for the length of time specified by the respective lease agreements.

BUSINESS SEGMENTS - Additional information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenue, Major Customer [Line Items]
Revenue from contract with customer	$ 334,503	$ 408,544	$ 340,437
Customer concentration \| Revenue \| Customer One
Revenue, Major Customer [Line Items]
Concentration risk (in percent)		19.00%	14.00%
Revenue from contract with customer		$ 77,200
Customer concentration \| Revenue \| Customer Two
Revenue, Major Customer [Line Items]
Concentration risk (in percent)	25.00%
Revenue from contract with customer	$ 82,200
Customer concentration \| Revenue \| Customer Two \| TechOps
Revenue, Major Customer [Line Items]
Revenue from contract with customer	35,700
Customer concentration \| Revenue \| Customer Two \| Asset Management Solutions
Revenue, Major Customer [Line Items]
Revenue from contract with customer	$ 46,500
Customer concentration \| Sales \| Customer One
Revenue, Major Customer [Line Items]
Concentration risk (in percent)	10.00%
Customer concentration \| Sales \| Customer Two
Revenue, Major Customer [Line Items]
Concentration risk (in percent)	10.00%

RELATED-PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2021	Nov. 10, 2021
RELATED-PARTY TRANSACTIONS
Unrealized loss on investment		$ (5,421)
AerLine Holdings \| Discontinued operations
RELATED-PARTY TRANSACTIONS
Reclassification of due from related party to investment			$ 5,400
Unrealized loss on investment	$ 5,400

BUSINESS SEGMENTS - Intersegment revenues (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Revenue from contract with customer	$ 334,503	$ 408,544	$ 340,437
Intersegment
Segment Reporting Information [Line Items]
Revenue from contract with customer	22,958	27,761	28,754
Asset Management Solutions \| Intersegment
Segment Reporting Information [Line Items]
Revenue from contract with customer	1,599	4,978	6,822
TechOps \| Intersegment
Segment Reporting Information [Line Items]
Revenue from contract with customer	$ 21,359	$ 22,783	$ 21,932

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

PROPERTY AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2023

PROPERTY AND EQUIPMENT, NET

Schedule of Property and equipment, net

Property and equipment, net, consisted of the following (in thousands):


	Useful Life
	In Years	December 31, 2023		December 31, 2022
Tooling and equipment	7 - 15	$	16,024	$	14,649
Furniture and other equipment	5		12,076		10,090
Computer software	5		2,374		2,152
Leasehold improvements	3 - 10		16,269		7,390
Equipment under capital lease	5		192		192
Flight equipment held for R&D	2		7,784		-
			54,719		34,473
Less accumulated depreciation			(27,027)		(21,835)
		$	27,692	$	12,638

Schedule of depreciation expense on property, plant and equipment

Depreciation expense, which includes amortization of equipment under capital lease, was as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Depreciation expense	$	3,736	$	2,242	$	1,997

BENEFIT PLANS (Details) - USD ($) $ in Thousands	12 Months Ended
BENEFIT PLANS (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
BENEFIT PLANS
Percentage of nondiscretionary Safe Harbor contributions	3.00%
Nondiscretionary contributions	$ 1,495	$ 1,250	$ 929

ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
ACCRUED EXPENSES
Accrued compensation and related benefits	$ 2,241	$ 6,040
Accrued legal fees	854	716
Commission fee accrual	260	251
Accrued federal, state and local taxes and fees	105	142
Other	2,018	1,694
Total accrued expenses	$ 5,478	$ 8,843

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Inventory reserves		$ 1,845
Scrap loss reserves	$ 1,507	$ 261

REVENUE - Disaggregation (Details) - USD ($) $ in Thousands	12 Months Ended
REVENUE - Disaggregation (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenue disaggregation
Total revenue	$ 334,503	$ 408,544	$ 340,437
Product
Revenue disaggregation
Total revenue	217,455	284,554	209,881
Leasing
Revenue disaggregation
Total revenue	14,513	28,732	30,657
Services
Revenue disaggregation
Total revenue	102,535	95,258	99,899
Operating segments
Revenue disaggregation
Total revenue	334,503	408,544	340,437
Operating segments \| Product
Revenue disaggregation
Total revenue	217,455	284,554	209,881
Operating segments \| USM
Revenue disaggregation
Total revenue	78,696	58,271	49,293
Operating segments \| Whole Asset Sales
Revenue disaggregation
Total revenue	137,454	222,487	156,944
Operating segments \| Engineered Solutions
Revenue disaggregation
Total revenue	1,305	3,796	3,644
Operating segments \| Leasing
Revenue disaggregation
Total revenue	14,513	28,732	30,657
Operating segments \| Services
Revenue disaggregation
Total revenue	102,535	95,258	99,899
Asset Management Solutions \| Operating segments
Revenue disaggregation
Total revenue	215,167	277,607	232,010
Asset Management Solutions \| Operating segments \| Product
Revenue disaggregation
Total revenue	200,654	248,875	201,353
Asset Management Solutions \| Operating segments \| USM
Revenue disaggregation
Total revenue	63,418	50,125	44,409
Asset Management Solutions \| Operating segments \| Whole Asset Sales
Revenue disaggregation
Total revenue	137,236	198,750	156,944
Asset Management Solutions \| Operating segments \| Leasing
Revenue disaggregation
Total revenue	14,513	28,732	30,657
TechOps \| Operating segments
Revenue disaggregation
Total revenue	119,336	130,937	108,427
TechOps \| Operating segments \| Product
Revenue disaggregation
Total revenue	16,801	35,679	8,528
TechOps \| Operating segments \| USM
Revenue disaggregation
Total revenue	15,278	8,146	4,884
TechOps \| Operating segments \| Whole Asset Sales
Revenue disaggregation
Total revenue	218	23,737
TechOps \| Operating segments \| Engineered Solutions
Revenue disaggregation
Total revenue	1,305	3,796	3,644
TechOps \| Operating segments \| Services
Revenue disaggregation
Total revenue	$ 102,535	$ 95,258	$ 99,899

LEASES - Supplemental information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
LEASES
Remaining lease term (years)	7 years 1 month 17 days	7 years 9 months 18 days
Discount Rate	6.34%	6.40%
Cash paid for amounts included in the measurement of lease liabilities	$ 4,700	$ 2,860
Operating lease liabilities arising from obtaining ROU assets	$ 961	$ 22,194

PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment
Property and equipment, gross	$ 54,719	$ 34,473
Less accumulated depreciation	(27,027)	(21,835)
Property and equipment, net	27,692	12,638
Tooling and equipment
Property, Plant and Equipment
Property and equipment, gross	16,024	14,649
Furniture and other equipment
Property, Plant and Equipment
Property and equipment, gross	$ 12,076	10,090
Useful life (in years)	5 years
Computer software
Property, Plant and Equipment
Property and equipment, gross	$ 2,374	2,152
Useful life (in years)	5 years
Leasehold improvements
Property, Plant and Equipment
Property and equipment, gross	$ 16,269	7,390
Equipment under capital lease
Property, Plant and Equipment
Property and equipment, gross	$ 192	$ 192
Useful life (in years)	5 years
Flight equipment held for R&D
Property, Plant and Equipment
Property and equipment, gross	$ 7,784
Useful life (in years)	2 years
Minimum
Property, Plant and Equipment
Useful life (in years)	2 years
Minimum \| Tooling and equipment
Property, Plant and Equipment
Useful life (in years)	7 years
Minimum \| Leasehold improvements
Property, Plant and Equipment
Useful life (in years)	3 years
Maximum
Property, Plant and Equipment
Useful life (in years)	15 years
Maximum \| Tooling and equipment
Property, Plant and Equipment
Useful life (in years)	15 years
Maximum \| Leasehold improvements
Property, Plant and Equipment
Useful life (in years)	10 years

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Pay vs Performance Disclosure
Net Income (Loss)	$ (5,563)	$ 43,861	$ 36,115

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

STOCKHOLDERS' EQUITY - Cumulative Preferred Shares (Details)	Dec. 31, 2022 $ / shares
STOCKHOLDERS' EQUITY
Share price	$ 18.5306

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

INCOME TAXES

Summary of income tax expense

Income tax (benefit) expense consists of (in thousands):


	Current		Deferred		Total
Year Ended December 31, 2023:
U.S. federal	$	(1,570)	$	(806)	$	(2,376)
U.S. state		128		(110)		18
Foreign		242		-		242
Total income tax (benefit) expense	$	(1,200)	$	(916)	$	(2,116)


	Current		Deferred		Total
Year Ended December 31, 2022:
U.S. federal	$	10,537	$	(862)	$	9,675
U.S. state		3,015		(405)		2,610
Foreign		2,856		(1,120)		1,736
Total income tax expense (benefit)	$	16,408	$	(2,387)	$	14,021


	Current		Deferred		Total
Year Ended December 31, 2021:
U.S. federal	$	11,003	$	(1,899)	$	9,104
U.S. state		1,780		(402)		1,378
Foreign		2,068		(891)		1,177
Total income tax expense (benefit)	$	14,851	$	(3,192)	$	11,659

Summary of tax rate reconciliation

The provision for income taxes on pre-tax income differs from the amount computed by applying the U.S. federal statutory income tax rate of 21.0% for the years ended December 31, 2023, 2022 and 2021 due to the following (in thousands):


	2023		2022		2021
Provision for income tax at the federal statutory rate	$	(1,613)	$	12,155	$	10,033
State taxes		165		1,959		1,357
Permanent differences		(328)		218		755
Change in valuation allowance		(1,313)		17		1,012
Executive compensation		3,016		2,562		1,934
Return to provision		151		591		659
FDII deduction		-		(3,014)		(4,093)
R&D credit		(1,174)		-		-
Stock-based compensation		(1,020)		-		-
Other		-		(467)		2
Total income tax (benefit) expense	$	(2,116)	$	14,021	$	11,659

Summary of significant components of deferred taxes


	2023		2022
Deferred tax assets:
Net operating losses	$	2,005	$	94
Foreign tax credit carryforwards		1,109		67
Inventory basis differences		9,269		10,511
Maintenance deposit payments		-		154
Deferred revenue		726		328
Allowance for doubtful accounts		237		285
Start up costs		634		688
Stock-based compensation		966		1,408
Outside basis difference		-		1,313
Accrued expenses		22		908
Section 174 capitalization		2,971		1,722
Lease obligations		7,010		7,922
R&D credit		434		-
Other		445		190
Total deferred tax assets		25,828		25,590
Deferred tax liabilities:
Fixed assets		(6,489)		(5,167)
Right-of-use assets		(6,659)		(7,659)
Intangible assets		(477)		(164)
Total deferred tax liabilities		(13,625)		(12,990)
Valuation Allowances		-		(1,313)
Deferred income taxes, net	$	12,203	$	11,287

WARRANT LIABILITY - Black-Scholes option pricing model (Details)	Dec. 31, 2023 Y	Dec. 31, 2022 Y
Risk-free interest rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants and rights outstanding, measurement input	0.0384	0.0399
Expected volatility of common stock
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants and rights outstanding, measurement input	0.4166	0.4244
Expected option term in years
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants and rights outstanding, measurement input	2.0	3.0

AIRCRAFT AND ENGINES HELD FOR LEASE AND LEASE RENTAL - Components (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Impairment of leased assets	$ 0	$ 900	$ 0
Depreciation expense	4,597	6,606	8,869
Contingent rental fees	7,693	12,776	$ 8,218
Aircraft and Engines
Aircraft and engines held for lease	58,136	83,902
Less accumulated depreciation	(31,661)	(52,614)
Property held for operating leases, net	26,475	$ 31,288
Flight Equipment
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Operating leases	$ 5,100
Flight Equipment \| Minimum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Lease term (in months)	2 months
Flight Equipment \| Maximum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Lease term (in months)	9 months

INTANGIBLE ASSETS - Estimated useful lives (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Intangible assets
Total intangible assets with definite lives	$ 11,656	$ 13,782
Asset Management Solutions \| Qwest \| Customer relationships
Intangible assets
Useful life (in years)	10 years
Total intangible assets with definite lives	$ 5,163	6,136
TechOps \| ALGS \| Customer relationships
Intangible assets
Useful life (in years)	10 years
Total intangible assets with definite lives	$ 30	50
TechOps \| ACS \| Customer relationships
Intangible assets
Useful life (in years)	10 years
Total intangible assets with definite lives	$ 1,033	1,243
TechOps \| ACT \| Customer relationships
Intangible assets
Useful life (in years)	10 years
Total intangible assets with definite lives	$ 5,430	$ 6,353

FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2023

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

NOTE I - FAIR VALUE MEASUREMENTS

Fair value measurements and disclosures require the use of valuation techniques to measure fair value that maximize the use of observable inputs and minimize use of unobservable inputs. These inputs are prioritized as follows:

●

Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities.

●

Level 2: Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities or market corroborated inputs.

●

Level 3: Unobservable inputs for which there is little or no market data and which require the Company to develop our own assumptions about how market participants price the asset or liability. The valuation techniques that may be used to measure fair value are as follows:

●

Market approach–Uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

●

Income approach–Uses valuation techniques to convert future amounts to a single present amount based on current market expectation about those future amounts.

●

Cost approach–Based on the amount that currently would be required to replace the service capacity of an asset (replacement cost).

The Company would measure the fair value of certain assets and liabilities on a nonrecurring basis, when U.S. GAAP requires the application of fair value, including events or changes in circumstances that indicate that the carrying amounts of assets may not be recoverable. Assets subject to these measurements include intangible assets acquired in business combinations.

The Company’s financial instruments, other than cash, consist principally of accounts receivable and accounts payable. The fair value of such approximates the carrying value of these financial instruments because of their short-term nature.

Borrowings under the Revolving Credit Agreement (as defined in Note L – Financing Arrangements) approximate fair value due to the variable interest rate on the facility and the recent amendment during the year. The Company’s borrowings under the Revolving Credit Agreement are carried at historical cost and adjusted for principal payments.

Borrowings under the Equipment Loan (as defined in Note L – Financing Arrangements) approximate fair value due to the variable interest rate on the loan and its origination during the year ended December 31, 2023. The Company’s borrowings under the Equipment Loan are carried at historical cost and adjusted for principal payments.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands			12 Months Ended
	Nov. 30, 2022	Jun. 09, 2014	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Allowance rollforward
Balance at beginning of year			$ 1,074	$ 1,692
Provision				(395)	$ 212
Write-offs			(96)	(223)
Balance at end of year			$ 978	1,074	1,692
Asset impairment		$ 2,500
Estimated residual value		$ 1,100
Insurance receivable					$ 2,500
Other income				$ 1,695
Terrorist Attack
Allowance rollforward
Insurance proceeds net of expenses	$ 4,200
Other income	$ 1,700
Gain on Business Interruption Insurance Recovery, Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Nonoperating Income (Expense)

BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2023

BUSINESS SEGMENTS

BUSINESS SEGMENTS

NOTE P - BUSINESS SEGMENTS

Consistent with how our chief operating decision maker (Chairman and Chief Executive Officer) evaluates performance and utilizes gross profit as a profitability measure, we report our activities in two business segments:

●

Asset Management Solutions-comprised of activities to extract value from strategic asset acquisitions through leasing, trading, or disassembling for product sales

●

TechOps - comprised of MRO activities; and product sales of internally developed engineered solutions and other serviceable products.

The Asset Management Solutions segment provides short-term and long-term leasing solutions of Flight Equipment to passenger and cargo operators worldwide. Assets considered to be at or near the end of their useful lives, supplied by our leasing portfolio or acquisitions, are analyzed for return maximization to assess whether they will be sold as whole assets or disassembled and sold as individual spare parts and components.

The TechOps segment consists of aftermarket support and services businesses that provide maintenance support for aircraft and aircraft components, and sale of engineered solutions. Our MRO business also engages in longer term projects such as aircraft modifications, cargo conversions of wide-body aircraft, and aircraft storage. The segment also includes MRO of landing gear, thrust reversers, and other components. Cost of sales consists principally of the cost of product, direct labor, and overhead. Our engineered solutions revenues consist of sales of products internally developed as permitted by Supplemental Type Certificates issued by the FAA. These products are proprietary in nature and function as non-original equipment manufacturer solutions to airworthiness directives and other technical challenges for operators. In order to develop these products, we engage in research and development activities. Periodically, our TechOps division will engage in the repair and sale of used serviceable materials through their ability to overhaul existing inventory.

The accounting policies for the segments are the same as those described in Note B. Gross Profit is calculated by subtracting cost of sales from revenues. The assets and certain expenses related to corporate activities are not allocated to the segments. Our reportable segments are aligned principally around the differences in products and services. The segment reporting excludes the allocation of selling, general and administrative expenses, interest expense, interest income, other income, net, unrealized loss on investment, change in fair value of warrant liability, and income tax expense.

Selected financial information for each segment is as follows (in thousands):


	Year ended December 31,
	2023		2022		2021
Revenue
Asset Management Solutions
Aircraft	$	80,877	$	101,511	$	87,461
Engine		134,290		176,096		144,549
		215,167		277,607		232,010
TechOps
MRO services		102,535		95,258		99,899
Product sales		16,583		11,942		8,528
Whole asset sales		218		23,737		—
		119,336		130,937		108,427
Total	$	334,503	$	408,544	$	340,437

	Year Ended December 31,
	2023		2022		2021
Gross profit
Asset Management Solutions
Aircraft	$	22,739	$	36,156	$	30,157
Engine		44,916		82,075		59,389
		67,655		118,231		89,546
TechOps
MRO services		20,428		21,111		28,133
Product sales		3,761		4,397		1,713
Whole asset sales		577		7,655		—
		24,766		33,163		29,846
Total	$	92,421	$	151,394	$	119,392


	2023		2022
Total Assets
Asset Management Solutions	$	372,326	$	233,034
TechOps		163,883		141,406
Corporate		17,729		157,139
	$	553,938	$	531,579


	2023		2022		2021

Total Depreciation and Amortization Expense
Asset Management Solutions	$	6,043	$	7,807	$	10,163
TechOps		3,549		2,609		2,506
Corporate		867		568		329
	$	10,459	$	10,984	$	12,998
Total Capital Expenditures
Asset Management Solutions	$	488	$	8,288	$	2,383
TechOps		9,206		6,078		1,224
Corporate		1,665		1,229		284
	$	11,359	$	15,595	$	3,891

The following table reconciles segment gross profit to net income from continuing operations for the years ended December 31, (in thousands):


	Year Ended December 31,
	2023		2022		2021
Segment gross profit	$	92,421	$	151,394	$	119,392
Selling, general and administrative expenses		(103,191)		(96,348)		(77,498)
Payroll support program proceeds		-		-		14,768
Interest (expense) income, net		155		1,093		(980)
Other income, net		666		2,268		458
Unrealized loss on investment		-		-		(5,421)
Change in fair value of warrant liability		2,270		(525)		(2,945)
(Loss) income before income tax provision	$	(7,679)	$	57,882	$	47,774

The following table presents revenues based on the customers’ geographic location and long-lived assets located in the United States, our country of domicile, for the years ended December 31, (in thousands):


Revenues	2023		2022		2021
Domestic	$	145,076	$	169,878	$	133,911
Foreign		189,427		238,666		206,526
Total revenues	$	334,503	$	408,544	$	340,437


Long-lived assets	2023		2022
Domestic	$	96,013	$	87,898
Foreign		-		-
Total long-lived assets	$	96,013	$	87,898

For the year ended December 31, 2023, the Company had two customers from which revenues generated exceeded 10% of total sales. Total sales to these two customers amounted to $82.2 million, of which $35.7 million was included in TechOps segment and $46.5 million was included in the Asset Management Solutions segment. As of December 31, 2022, the Company had one customer from which revenues generated exceeded 10% of total sales. Total sales to this customer amounted to $77.2 million, which was included in the Asset Management Solutions segment.

Intersegment sales includes amounts invoiced by a segment for work performed for another segment. Amounts are based on actual work performed or products sold and agreed-upon pricing which is intended to be reflective of the contribution made by the supplying business segment. All intersegment transactions have been eliminated upon consolidation. Intersegment revenue is as follows (in thousands):


	Year ended December 31,
	2023		2022		2021
Asset Management Solutions	$	1,599	$	4,978	$	6,822
TechOps		21,359		22,783		21,932
Total intersegment revenues	$	22,958	$	27,761	$	28,754

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

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-Topic 280
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-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

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-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2023

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE B -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation and Basis of Presentation

The accompanying consolidated financial statements include the accounts of the Company and all of its wholly owned subsidiaries. All significant intercompany balances and transactions are eliminated upon consolidation.

Emerging Growth Company

The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statement with another public company that is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

Cash and Cash Equivalents

The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Company’s cash equivalents are held primarily in interest-bearing accounts.

Foreign Currency

The Company has determined that the functional currency for its foreign subsidiaries is the U.S. dollar. The primary economic environment in which the entities generate or expend cash is in U.S. dollars as evidenced by the cash flows in or out from revenues, operating expenses, investing, and financings. Only general office expenses and payroll transactions are denominated in local currency of our foreign subsidiaries.

Accounts Receivable

Accounts receivable include amounts receivable from customers for aircraft and engine parts sales, aircraft and engine basic and supplemental rents, and aircraft services. Contingent rents, also referred to as supplemental rent, which are unbilled, are also included in accounts receivable.

The Company sells to a variety of customers worldwide. For certain transactions and customers not requiring payment in full prior to shipment of goods, the Company extends credit based on an evaluation of the customers’ financial condition. The Company monitors exposure to credit losses and maintains an allowance for doubtful accounts for estimated losses in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses, current market conditions, customers’ financial condition, amount of receivables in dispute, current receivables aging, and current payment patterns. Account balances are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. A rollforward of the allowance for credit losses is as follows (in thousands):


	2023		2022
Balance at beginning of year	$	1,074	$	1,692
Provision		-		(395)
Write-offs		(96)		(223)
Balance at end of year	$	978	$	1,074

On June 9, 2014, an aircraft leased to Air Indus suffered significant damage as the result of a terrorist attack. At that time, the Company recorded an impairment to the asset of $2.5 million to adjust the carrying amount to the estimated residual value of $1.1 million. The Company filed an insurance claim and recorded an insurance receivable of $2.5 million, offsetting the impairment loss, which was recorded in accounts receivable in the Company’s Consolidated Balance Sheet as of December 31, 2021. In accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), the probable amount of the insurance recovery, limited to the amount of the loss recognized, was recorded as the insurance receivable. Effective November 30, 2022, a final settlement was reached and insurance proceeds net of expenses of $4.2 million were received, of which $1.7 million was classified as other income, net on the Consolidated Statement of Operations.

Inventory

Inventory, which consists of complete aircraft and engines held for sale, as well as related parts, is valued at the Lower of Cost or Market (“LCM”) value. For purchases of whole aircraft and engines for sale or lease, cost is determined using the specific identification method whereby total cost is the cost paid, including certain capitalizable asset acquisition costs, to acquire such assets as a whole.

Additionally, the Company purchases certain whole aircraft and engines to disassemble and supply its engine and airframe parts inventory. For aircraft and engine parts that originate from such dismantled aircraft and engines, cost is determined using a ratio calculated based on the relationship of the cost of the dismantled aircraft or engine at the time of purchase to the total estimated sales value of the dismantled aircraft or engine at the time of purchase. At the time of sale, this ratio is applied to the sale price of each individual airframe and/or engine part to determine its allocated cost. At the time of sale, the sum of an individual part’s allocated cost and actual repair or overhaul costs incurred represent the total cost for such part. Inventory not expected to be sold within the operating cycle is classified as noncurrent inventory on the Consolidated Balance Sheets.

The Company evaluates this ratio periodically, and if necessary, updates sales value estimates and makes prospective adjustments to this ratio on a product line basis. Any amounts identified with an estimated sales value lower than the carrying value is reduced to the estimated sales value at the time of the review. The Company recorded additional inventory reserves due to this LCM valuation, which is reflected as a component of cost of products in the Consolidated Statements of Operations. These additional inventory reserves were as follows (in thousands):

Expenditures required for the repair of engine and airframe parts are capitalized as inventory and are expensed as cost of products when associated parts are sold.

The Company periodically evaluates its complete aircraft and engines in inventory and Flight Equipment held for lease to determine if events or market circumstances indicate that the assets’ most likely disposition has changed. Should conditions prevail at the time of the Company’s Consolidated Balance Sheets that would suggest a more likely use as an asset held for lease rather than sale or disassembly for parts inventory or vice versa, it will be reclassified at its then-current book value between inventory and fixed asset - aircraft and engines held for lease, net. This transaction is a noncash item and if it occurs, is reflected in the schedule of supplemental cash flows.

The carrying value of inventory is reviewed regularly, giving consideration to factors such as its physical condition, sales patterns, and expected future demand to estimate the amount necessary to write down our slow-moving, obsolete, or damaged inventory. Such inventory may be held for periods beyond one year. The Company recorded inventory scrap losses which are reflected as a component of cost of products in the accompanying Consolidated Statements of Operations. These scrap losses are as follows (in thousands):

Flight Equipment Held for Lease

Flight Equipment held for lease is stated at cost, less accumulated depreciation. Certain internal and external professional fees, major improvements, modifications, and maintenance incurred in connection with the acquisition of Flight Equipment that are required to get the Flight Equipment ready for initial service are capitalized and depreciated over the remaining life of the Flight Equipment, and are reported in the investing activities section of the Consolidated Statements of Cash Flows. Subsequent to placing Flight Equipment into service, the cost of maintenance and improvements to Flight Equipment is normally expensed unless the improvements materially increase the long-term value of the Flight Equipment or extend the useful life of the Flight Equipment. The capitalized cost is depreciated over the lesser of the remaining useful life of the Flight Equipment or the estimated useful life of the capitalized improvements. Aircraft airframe components are depreciated over the assets’ useful life using the straight-line method to the estimated residual value based on the total remaining life before disassembly or outright scrap metal value. Aircraft useful lives range from 0 to 7 years. Engines are depreciated using the straight-line method to the estimated residual value based on the total life remaining before disassembly. To arrive at the total engine life remaining before disassembly, the remaining life of the engine’s life-limited parts, the estimated utilization, and condition, as well as the aircraft fleet supported by the engine model are considered. Upon completion of its estimated service life as a leased asset, Flight Equipment is reclassified to inventory at its carrying value. The Company discontinues the depreciation of Flight Equipment when it is held as inventory for ultimate parts sales. Differences between estimates of useful lives and residual values and actual experience may result in future impairments of aircraft or engines and/or additional gains or losses upon disposal. The Company reviews residual values of aircraft and engines periodically based on knowledge of current residual values and residual value trends to determine if they are appropriate and records adjustments as necessary. Cash flows related to the purchase and sale of Flight Equipment are presented as operating activities when the predominant source of cash flows related to the asset is from the ultimate parts sales of the assets. If the predominant source of cash flows related to the asset is expected to be from leasing of the asset, the cash flows are presented as investing activities.

Property and Equipment

Property and equipment are recorded at cost less accumulated depreciation. Depreciation is recognized over the estimated useful lives of the respective assets on a straight-line basis, ranging from 2 to 15 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the terms of the respective leases and the estimated useful lives of the respective assets. Property and equipment held under capital leases are amortized on a straight-line basis over the shorter of the lease term or estimated useful life of the asset. Repairs and maintenance expenditures are expensed as incurred, unless such expenses extend the useful life of the asset, in which case they are capitalized.

Investments

Equity investments with readily determinable fair values are measured at fair value. Equity investments without readily determinable fair values are measured at cost and adjusted for impairments or observable price changes. We perform a qualitative assessment on an annual basis and recognize an impairment if there are sufficient indicators that the fair value of the investment is less than carrying value. Impairment charges are presented under “unrealized loss on investment” within the Consolidated Statements of Operations.

Goodwill

In accordance with Accounting Standards Codification (“ASC”) 350, “Intangibles — Goodwill and Other,” goodwill is tested at least annually for impairment, or when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable, by assessing qualitative factors or performing a quantitative analysis in determining whether it is more likely than not that its fair value exceeds the carrying value. A quantitative assessment involves determining the fair value of each reporting unit using market participant assumptions. An entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit. Our annual assessment date for goodwill is October 1st.

For purposes of reviewing impairment and the recoverability of goodwill, we must make various assumptions regarding estimated future cash flows and other factors in determining the fair values of the reporting unit, including market multiples, discount rates, etc.

The Company performed a quantitative impairment analysis as of October 1, 2023 and a qualitative impairment analysis as of October 1, 2022 on the goodwill for the Asset Management Solutions and TechOps segments (see Note P – Business Segments for a discussion about our business segments), and updated through December 31, 2023 and 2022, respectively, concluding that the fair value of each reporting unit exceeded their carrying values, and thus no impairment was recorded.

Other Intangible Assets

Intangibles arising from business combinations, including customer relationships and FAA certificates are initially recorded at fair market value. Customer relationships are amortized over ten years. Straight-line amortization is utilized. Where there are no legal, regulatory, contractual, or other factors that would reasonably limit the useful life of an intangible assets, that asset is classified as indefinite lived and such intangible assets are not amortized.

Other intangible assets with indefinite lives are assessed for impairment annually, or more frequently when events or circumstances indicate there may be an impairment. These assets are carried at the estimated fair value at the time of acquisition. Our annual assessment date for indefinite lived intangible assets is July 1st. The Company performed a quantitative impairment analysis as of July 1, 2023 and 2022 on the indefinite lived intangible assets and concluded there were no impairments.

Other intangible assets are reviewed for impairment if any event or change in circumstance indicates that an impairment may have occurred. The Company annually reviews the estimated lives and methods used to amortize other intangible assets. The actual amounts of amortization expense may differ materially from our estimates, depending on the results of our annual review.

Impairment of Long-Lived Assets

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Such events and circumstances include, but are not limited to, prolonged industry downturns, a significant decline in the Company’s market value, and significant reductions in the Company's projected cash flows. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary.

Obligations and Instruments Potentially Settled in the Company’s Common Stock

In connection with any obligations and instruments potentially to be settled in the Company’s stock, including the Company's earn-out shares, the Company accounts for the instruments in accordance with ASC Topic 815, “Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in a Company’s Own Stock.” This issue addresses the initial balance sheet classification and measurement of contracts that are indexed to, and potentially settled in, the Company’s stock. Under this pronouncement, contracts are initially classified as equity or as either assets or liabilities, depending on the situation. All contracts are initially measured at fair value and subsequently accounted for based on the then current classification. Contracts initially classified as equity do not recognize subsequent changes in fair value as long as the contracts continue to be classified as equity. For contracts classified as assets or liabilities, the Company reports changes in fair value in earnings and records these changes in the financial statements as long as the contracts remain classified as assets or liabilities. If contracts classified as assets or liabilities are ultimately settled in shares, any previously reported gains or losses on those contracts continue to be included in earnings. The classification of a contract is reassessed at each balance sheet date.

Revenue Recognition

Products Revenue — Used Serviceable Material (“USM”) Sales

Revenues from sales of USM are measured based on consideration specified in a contract with a customer, and excludes any sales commissions and taxes collected and remitted to government agencies. We recognize revenue when we satisfy a performance obligation by transferring control over a product or service to a customer. The parts are sold at a fixed price with no right of return. In determining the performance obligation, management has identified the promise in the contract to be the shipment of the spare parts to the customer. Title passes to the buyer when the goods are shipped, and the buyer is responsible for any loss in transit, and the Company has a legal right to payment for the spare parts once shipped. We generally sell our USM products under standard 30-day payment terms, subject to certain exceptions. Customers neither have the right to return products nor do they have the right to extended financing. The Company has determined that physical acceptance of the spare parts to be a formality in accordance with ASC 606 — Revenue from Contracts with Customers (“ASC 606”).

Spare parts revenue is based on a set price for a set number of parts as defined in the purchase order. The performance obligation is completed once the parts have shipped and, as a result, all of the transaction price is allocated to that performance obligation. The Company has determined that it is appropriate to recognize spare parts sales at a point in time (i.e., the date the parts are shipped) in accordance with ASC 606.

Products Revenue — Whole Asset Sales

Revenues from whole asset sales are measured based on consideration specified in the contract with the customer. The Company and customer enter into an agreement which outlines the place and date of sale, purchase price, condition of the whole asset, bill of sale, and the assignment of rights and warranties from the Company to the customer. The Company has identified the transfer of the whole asset as the performance obligation. The transaction price is set at a fixed dollar amount per fixed quantity (number of whole assets) and is explicitly stated in each contract. Whole asset sales

revenue is based on a set price for a set number of assets, which is allocated to the performance obligation discussed above, in its entirety. The Company has determined the date of transfer to the customer is the date the customer obtains control over the asset, resulting in the recognition of revenue. Payment is required in full upon customers’ acceptance of the whole asset on the date of the transfer, unless the Company extends credit terms to customers it deems creditworthy.

Leasing Revenue

The Company leases Flight Equipment under operating leases that contain monthly base rent and reports rental income straight line over the life of the lease as it is earned. Additionally, the Company’s leases provide for supplemental rent, which is calculated based on actual hours or cycles of utilization and, for certain components, based on the amount of time until maintenance of that component is required. In certain leases, the Company records supplemental rent paid by the lessees as maintenance deposit payments and other liabilities in recognition of the Company’s contractual commitment to reimburse qualifying maintenance. Reimbursements to the lessees upon receipt of evidence of qualifying maintenance work are charged against the existing maintenance deposit payments liabilities. In leases where the Company is responsible for performing certain repairs or replacement of aircraft components or engines, supplemental rent is recorded as revenue in the period earned. In the event of premature lease termination or lessee default on the lease terms, revenue recognition will be discontinued when outstanding balances are beyond the customers’ deposits held. Flight Equipment leases are billed in accordance with the lease agreement and invoices are due upon receipt.

Services Revenue

Services revenue is recognized as performance obligations are fulfilled and the benefits are transferred to the customer. At contract inception, we evaluate if the contract should be accounted for as a single performance obligation or if the contract contains multiple performance obligations. In some cases, our service contract with the customer is considered one performance obligation as it includes factors such as the good or service being provided is significantly integrated with other promises in the contract, the service provided significantly modifies or customizes the other good or service or the goods or services are highly interdependent or interrelated with each other. If the contract has more than one performance obligation, the Company determines the standalone price of each distinct good or service underlying each performance obligation and allocates the transaction price based on their relative standalone selling prices.

The transaction price of a contract, which can include both fixed and variable amounts, is allocated to each performance obligation identified. Some contracts contain variable consideration, which could include incremental fees or penalty provisions related to performance. Variable consideration that can be reasonably estimated based on current assumptions and historical information is included in the transaction price at the inception of the contract but limited to the amount that is probable that a significant reversal in the amount of cumulative revenue recognized will not occur.

For most service contracts, our performance obligations are satisfied over time as work progresses or at a point in time based on transfer of control of products and services to our customers. We receive payments from our customers based on billing schedules or other terms as written in our contracts.

For our performance obligations that are satisfied over time, we measure progress in a manner that depicts the performance of transferring control to the customer. As such, we utilize the input method of cost-to-cost to recognize revenue over time as this depicts when control of the promised goods or services are transferred to the customer. Revenue is recognized based on the relationship of actual costs incurred to date to the estimated total cost at completion of the performance obligation. We are required to make certain judgments and estimates, including estimated revenue and cost of sales, as well as inflation and the overall profitability of the arrangement. Key assumptions involved include future labor costs and efficiencies, overhead costs, and ultimate timing of product delivery. Differences may occur between the judgments and estimates made by management and actual program results. Under most of our MRO contracts, if the contract is terminated for convenience, we are entitled to payment for items delivered and fair compensation for work performed, the costs of settling and paying other claims, and a reasonable profit on the costs incurred or committed.

Changes in estimates and assumptions related to our arrangements accounted for using the input method based on labor hours are recorded using the cumulative catchup method of accounting. These changes are primarily adjustments to the estimated profitability for our long-term programs where we provide MRO services.

We have elected to use certain practical expedients permitted under ASC 606. Shipping and handling fees and costs incurred associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of sales in our Consolidated Statements of Operations, and are not considered a performance obligation to our customers. Our reported sales on our Consolidated Statements of Operations are net of any sales or related non income taxes.

Maintenance and Repair Costs

The cost of maintenance, repairs, and re-leasing of Flight Equipment that does not extend the useful life of Flight Equipment is expensed as incurred. Costs incurred for planned major maintenance activities that materially increase the long-term value of the Flight Equipment or extend the useful life of the Flight Equipment are capitalized and depreciated over the lesser of the remaining useful life of the Flight Equipment or the estimated useful life of the capitalized improvements.

Pursuant to certain of the Company’s aircraft leases, the lessee is responsible for performing required maintenance and repairs on the leased asset, and is required to make monthly maintenance reserve payments to the Company, in arrears following the usage month. Upon the lessee’s presentation of invoices evidencing the completion of qualifying maintenance, the Company will reimburse the lessee for the cost of the maintenance, up to the amount of the maintenance reserve payments that have been received by the Company. Unless otherwise provided in the contract, the Company records such maintenance reserve payments paid by the lessees as maintenance deposit payments and other liabilities in the accompanying Consolidated Balance Sheets to record the Company’s contractual commitment to reimburse such qualifying maintenance. Reimbursements to the lessees upon receipt of evidence for qualifying maintenance work are charged against the existing maintenance deposit payments and other liabilities.

For other lease contracts (primarily engine lease contracts) where the terms of the lease are designed specifically to allow the Company to directly manage the occurrence, timing, and associated cost of qualifying maintenance work on the Flight Equipment, maintenance reserve payments collected during the lease are recognized as leasing revenue in the period earned.

Any amounts of maintenance reserve payments remaining at the end of a lease contract are recognized as lease revenue or applied against outstanding accounts receivable at lease termination.

Share Based Compensation

The Company accounts for share-based compensation to employees in accordance with ASC 718, “Compensation—Stock Compensation.” Under ASC 718, the Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award and, for those awards subject only to service conditions, the Company recognizes the costs on a straight-line basis over the requisite service period for the entire award the employee is required to provide service in exchange for the award, which generally is the vesting period. For awards with performance and service conditions, we begin recording share-based compensation when achieving the performance criteria is probable and we recognize the costs using the accelerated attribution method.

The estimated number of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from the Company’s current estimates, such amount will be recorded as a cumulative adjustment in the period estimates are revised. Changes in the Company’s estimates and assumptions may cause us to realize material changes in share-based compensation expense in the future.

The Company has issued share-based awards with performance-based vesting criteria. Achievement of the milestones must be probable before the Company begins recording share-based compensation expense. When the performance-based vesting criteria is considered probable, the Company begins to recognize compensation expense at that time. In the period that achievement of the performance-based criteria is deemed probable, US GAAP requires the immediate recognition of all previously unrecognized compensation since the original grant date. As a result, compensation expense recorded in the period that achievement is deemed probable could include a substantial amount of previously

unrecorded compensation expense related to the prior periods. For any share-based awards where performance-based vesting criteria is no longer considered probable, previously recognized compensation cost would be reversed.

The Company applies Accounting Standards Update (“ASU”) 2018-07, “Improvements to Nonemployee Share-Based Payment Accounting,” which generally expands the scope of ASC 718, Compensation – Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees and supersedes the guidance in ASC 505-50, Equity-Based Payments to Non-employees, which previously included the accounting for nonemployee awards.

Sales Taxes

The Company’s policy is to present taxes collected from customers and remitted to governmental authorities on a net basis. The Company records the amounts collected as a current liability and relieves such liability upon remittance to the taxing authority without impacting revenue or expenses.

Earnings Per Share

Basic (loss) earnings per share is computed by dividing net (loss) earnings attributable to the Company’s common stockholders by the weighted average number of common shares outstanding during the periods. Diluted (loss) earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and is calculated using the treasury stock method for stock options and unvested shares.

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained on examination by the taxing authorities. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.

The Company records interest and penalties related to unrecognized tax benefits in the income tax provision.

New Accounting Pronouncements Adopted

On January 7, 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848). This new standard provides optional temporary guidance for entities transitioning away from London Interbank Offered Rate (“LIBOR”) to new reference interest rates so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions with Topic 848. These amendments do not apply to any contract modifications made after December 31, 2022, any new hedging relationships entered into after December 31, 2022, or to existing hedging relationships evaluated for effectiveness existing as of December 31, 2022, that apply certain optional practical expedients. This standard was effective immediately and may be applied (i) on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or (ii) on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final update, up to the date that financial statements are available to be issued. To ensure the relief in Topic 848 covers the period of time during which a significant number of modifications may take place, ASU 2022-06 defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. Based on our review of our key material contracts through December 31, 2023, ASU 2021-01 does not have a material impact to our consolidated financial statements.

On February 2016, FASB issued Leases (Topic 842), which generally requires companies to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet. In July 2018, FASB issued ASU No. 2018-10, Codification Improvements to Topic 842: Leases, and ASU No. 2018-11, Leases (Topic 842): Targeted Improvements. Topic 842 became effective for the Company for the annual period beginning on January 1, 2022, and the impact was recorded retroactively at the beginning of the period of adoption through a cumulative-effect adjustment. We elected the practical expedients, which permits us to not reassess (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired leases and (iii) indirect costs for any existing leases. In addition, we have elected the practical expedients to not separate lease and non-lease components for both lessee and lessor relationships and to not apply the recognition requirements to leases with terms of less than 12 months. Upon adoption of ASC 842 on January 1, 2022, we recognized operating lease right of use (“ROU”) assets of $13.2 million and operating lease liabilities of $13.4 million on our Consolidated Balance Sheet. The adoption of ASC 842 did not have a material impact on the Consolidated Statements of Operations or Cash Flows.

On May 3, 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. This new standard provides clarification and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (such as warrants) that remain equity classified after modification or exchange. This standard was effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Under this standard, issuers should apply the new standard prospectively to modifications or exchanges occurring after the effective date of the new standard. The standard was adopted and applied prospectively by the Company as of January 1, 2022, but the adoption and application did not have an impact on the Company's financial statements and disclosures, including interim periods.

On June 2016, the FASB issued ASU No. 2016-13 (“ASU 2016-13”), Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In November 2018, FASB issued ASU No. 2018-19, Codification Improvements to Topic 326: Financial Instruments — Credit Losses. ASU No. 2018-19 amends the scope and transition requirements of ASU 2016-13. ASU 2016-13 requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU 2016-13 became effective for the Company beginning January 1, 2023, and was adopted on a modified retrospective approach. This ASU did not have a material impact on our consolidated financial statements.

New Accounting Pronouncements Not Yet Adopted

In November 2023, the FASB issued ASU 2023-07, the amendments in the ASU are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The purpose of the amendments is to enable “investors to better understand an entity’s overall performance” and assess “potential future cash flows.” The amendments in ASU 2023-07 are effective for all public entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Management is currently evaluating the impact of this guidance on our financial statements.

There have been no other accounting pronouncements issued but not yet adopted by us which are expected to have a material impact on our consolidated financial statements.

CARES Act

The Company sought financial assistance under the CARES Act. Certain of the Company’s subsidiaries received $16.4 million from the U.S. Treasury Department (“Treasury”) through the Payroll Support Program (“PSP1”) under the

CARES Act, of which $12.7 million was received prior to December 31, 2020 and the remaining amount was received during the first quarter of 2021. As part of the Payroll Support Extension Law (“PSP Extension Law”), the Company entered into an agreement with the U.S. Department of the Treasury (“PSP2”) on March 4, 2021 for the receipt of relief funds of $5.5 million during 2021. Pursuant to the American Rescue Plan Act of 2021 (“ARP”), we entered into an agreement (“PSP3”) with the U.S. Department of the Treasury on April 16, 2021 and received relief funds of an additional $5.5 million, bringing the total to $14.7 million during 2021. No relief funds were received during 2023.

In connection with the financial assistance the Company received under the Payroll Support Program, it was required to comply with certain provisions of the CARES Act, all of which have expired as of December 31, 2023, including the requirement that funds provided pursuant to the Payroll Support Program be used exclusively for the continuation of payment of employee wages, salaries and benefits; and the requirement against involuntary terminations and furloughs and reductions in employee pay rates and benefits from the signing date of the Payroll Support Program agreement through September 30, 2021. The agreement required the Company to issue a recall to any employee who was terminated or furloughed between October 1, 2020 and March 4, 2021 and enable such employee to return to employment. In addition, the Company was limited on the payment of certain employee compensation through April 1, 2023. Since inception, we have been in compliance with all of the provisions of the CARES Act.

INVENTORY (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
INVENTORY
Used serviceable materials	$ 120,053	$ 73,827
Work-in-process	22,270	16,659
Whole assets	186,845	93,044
Inventory, Net, Total	329,168	183,530
Less short term	(177,770)	(117,488)
Long term	$ 151,398	$ 66,042

ACCRUED EXPENSES (Tables)

12 Months Ended

Dec. 31, 2023

ACCRUED EXPENSES

Schedule of Accrued expenses

The following is a summary of the components of accrued expenses (in thousands):


	December 31, 2023		December 31, 2022
Accrued compensation and related benefits	$	2,241	$	6,040
Accrued legal fees		854		716
Commission fee accrual		260		251
Accrued federal, state and local taxes and fees		105		142
Other		2,018		1,694
	$	5,478	$	8,843

STOCKHOLDERS' EQUITY - 2020 Plan and ESPP (Details) - USD ($) $ in Millions				12 Months Ended
	Jan. 01, 2024	Dec. 22, 2023	Dec. 22, 2022	Dec. 31, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued				45,755	46,726
Subsequent event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued	407,519
2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issuable					6,200,000
Common stock remain available for future grants				2,996,618
Performance-based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting provisions				10,403
Remaining vested provisions				521,996
Share-based compensation expense				$ 7.9	$ 14.2
Vesting percentage				200.00%
Performance-based Awards \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Remaining vested term				1 year
Vesting percentage				100.00%
Performance-based Awards \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Remaining vested term				3 years
Vesting percentage				200.00%
2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting provisions				1,192,355	558,310
2020 Plan \| Performance-based Awards \| Maximum level of 200% Vesting on December 22, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting provisions			531,667
Restricted Stock Units ("RSUs") vested and settled (in share)			167,007
Vesting percentage			200.00%
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issuable				500,000
ESPP \| Performance-based Awards \| Maximum level of 200% Vesting on December 22, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting provisions		1,063,333
Restricted Stock Units ("RSUs") vested and settled (in share)		526,888
Vesting percentage		200.00%

SIGNIFICANT RISKS AND UNCERTAINTIES

12 Months Ended

Dec. 31, 2023

SIGNIFICANT RISKS AND UNCERTAINTIES

SIGNIFICANT RISKS AND UNCERTAINTIES

NOTE C - SIGNIFICANT RISKS AND UNCERTAINTIES

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Significant items subject to such estimates and assumptions include the useful lives of property and equipment, useful lives and residual values of Flight Equipment held for lease, allowances for doubtful accounts and sales returns, the income tax provision, impairment of long-lived assets, valuation of inventory, and valuation and useful lives of intangibles, goodwill and contingencies.

Risks and Uncertainties

The Company is impacted by the general economic conditions of the commercial aviation industry. A decrease in passenger and/or air cargo traffic worldwide could result in strains on the Company’s lessees and cause them to default under their leases with the Company, which could negatively impact cash flows and results of operations. The value of Flight Equipment held for operating leases is subject to fluctuations in the values of commercial aircraft and engines worldwide. A material decrease in aircraft or engine values could have a downward impact on lease rentals and residual values and may require impairments to be taken on such assets. Additionally, impairment charges may be required to reduce the carrying value of inventory.

The nature of the Company’s business is capital intensive and demands significant capital requirements. To meet the Company’s current purchase commitments and future aircraft and engine acquisitions, the Company may need to (i) access committed debt facilities, and/or (ii) secure additional financing, and/or (iii) use existing available cash balances.

The Company is also subject to regulation by various governmental agencies with responsibilities over civil aviation. Increased regulations imposed by organizations such as the FAA may significantly affect industry operations.

The Company conducts business in certain foreign countries, some of which are politically unstable or subject to military or civil conflicts. Consequently, the Company is subject to a variety of risks such as civil strife, political risk, import and export regulations, compliance with foreign laws, treaties, regulations, uncertainties arising from foreign local business practices, difficulty in repossessing Flight Equipment when a lessee defaults, cultural considerations, restriction on fund transfers, and exposure to the FCPA and other anti-bribery laws.

The Company periodically reviews the carrying values of accounts receivable, inventory, goodwill, intangible assets, and long-lived assets; the recoverable value of deferred income tax assets, and the sufficiency of accruals and provisions, substantially all of which are sensitive to the above risks and uncertainties.

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to credit risk principally consist of cash and cash equivalents and accounts receivable.

During the year ended December 31, 2023, two customers accounted for 25% of total revenue. During the years ended December 31, 2022 and 2021, one customer accounted for 19% and 14% of total revenue, respectively, which was related to nonrecurring transactions with different customers that was collected during the respective years. One customer made up 20% of our trade receivable balance as of December 31, 2023. No customer made up more than 10% of our trade receivable balance as of December 31, 2022.

Cash

The Company maintains cash and cash equivalent balances with high-quality financial institutions, which at times exceed the Federal Deposit Insurance Corporation insurance limits. While the Company monitors daily the cash balances in its operating accounts and adjusts the balances as appropriate, these balances could be impacted if one or more of the financial institutions with which the Company deposits fails or is subject to other adverse conditions in the financial or credit markets. To date, the Company has experienced no loss or lack of access to its invested cash or cash equivalents; however, no assurance can be provided that access to invested cash and cash equivalents will not be impacted by adverse conditions in the financial and credit markets.

INVENTORY

12 Months Ended

Dec. 31, 2023

INVENTORY

INVENTORY

NOTE E-INVENTORY

Inventory consisted of the following (in thousands):


	December 31, 2023		December 31, 2022
Used serviceable materials	$	120,053	$	73,827
Work-in-process		22,270		16,659
Whole assets		186,845		93,044
	$	329,168		183,530
Less short term		(177,770)		(117,488)
Long term	$	151,398	$	66,042

BENEFIT PLANS

12 Months Ended

Dec. 31, 2023

BENEFIT PLANS

BENEFIT PLANS

NOTE T - BENEFIT PLANS

The Company sponsors an employee retirement savings plan that qualifies under Section 401(k) of the Internal Revenue Code. Participating employees may contribute, but not more than statutory limits. The Company makes nondiscretionary 3% safe harbor contributions of participants’ eligible earnings who have completed the plan’s eligibility requirements. The contributions are made to the plan on behalf of the employees. Total nondiscretionary contributions to the plan were as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Nondiscretionary contributions	$	1,495	$	1,250	$	929

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 70
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480794/715-70-50-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 17
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480482/715-20-55-17

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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-Name Accounting Standards Codification
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-Paragraph 1
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//715/tableOfContent

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
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-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (r)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480126/715-20-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 60
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480266/715-60-50-3

+ Details

AIRCRAFT AND ENGINES HELD FOR LEASE AND LEASE RENTAL (Tables)

12 Months Ended

Dec. 31, 2023

AIRCRAFT AND ENGINES HELD FOR LEASE AND LEASE RENTAL

Summary of aircraft and engines held for operating leases, net

Aircraft and engines held for operating leases, net, consists of the following (in thousands):


	December 31, 2023		December 31, 2022
Aircraft and engines held for lease	$	58,136	$	83,902
Less accumulated depreciation		(31,661)		(52,614)
	$	26,475	$	31,288

Schedule of total depreciation expense included in cost of leasing in the consolidated statement of operations, excluding amounts for assets leased to AerLine

Total depreciation expense included in cost of leasing in the Consolidated Statements of Operations is as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Depreciation expense	$	4,597	$	6,606	$	8,869

Schedule of contingent rental fees recognized as revenues related to supplemental rent

Contingent rental fees recognized as revenues related to supplemental rent were as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Contingent rental fees	$	7,693	$	12,776	$	8,218

STOCKHOLDERS' EQUITY - Warrants (Details) - $ / shares	Jan. 01, 2022	Nov. 29, 2021	Dec. 31, 2023	Dec. 31, 2022	Dec. 29, 2021	Dec. 22, 2020
STOCKHOLDERS' EQUITY
Exercise price of warrants	$ 0.01	$ 0.01			$ 0.01	$ 11.50
Number of warrants outstanding		16,442,886	623,834	623,834		17,250,000
Number of shares issued in exercise		6,079,966
Number of securities redeemed (in shares)	85,014	16,357,872

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

DESCRIPTION OF THE BUSINESS (Details)	Dec. 31, 2023 facility
DESCRIPTION OF THE BUSINESS
Number of FAA Certified Repair Facilities (MRO's)	6

WARRANT LIABILITY

12 Months Ended

Dec. 31, 2023

WARRANT LIABILITY

WARRANT LIABILITY

NOTE K - WARRANT LIABILITY

Warrants to purchase a total of 623,834 shares of the Company’s common stock were outstanding as of December 31, 2023 and 2022, respectively. 750,000 warrants were issued to founders in a private placement (the “Private Warrants”), and 17,250,000 warrants were public warrants (the “Public Warrants”) that were exercisable immediately following the Closing.

Each of the Company’s Public Warrants entitled the registered holder to purchase one share of the Company’s common stock at a price of $11.50 per share. On November 29, 2021, the Company provided notice to holders of all of the Public Warrants that the Company would be redeeming all of the Public Warrants for a redemption price of $0.01 per Public Warrant, and on December 29, 2021, such redemption was completed and the Public Warrants ceased trading on Nasdaq.

Each of the Private Warrants entitles the registered holder to purchase one share of the Company’s common stock at a price of $11.50 per share, subject to adjustment. During 2022, a private warrant holder initiated a cashless exercise of 126,166 warrants for the purchase of shares of common stock at an exercise price of $11.50 per share (remaining term on exercised warrants at December 31, 2023 was 2.0 years) and we issued 47,867 shares of common stock based on the fair value at the date of exercise of $18.5306 per share. The remaining Private Warrants will expire at 5:00 p.m., New York City time, on December 22, 2025, or earlier upon redemption or liquidation, as applicable. The Private Warrants include provisions that affect the settlement amount. Such variables are outside of those used to determine the fair value of a fixed-for-fixed instrument, and as such, the Private Warrants do not meet the criteria for equity treatment under guidance contained in ASC Topic 815, “Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in a

Company’s Own Stock.” The Company classifies the Private Warrants as a liability at their fair value subject to re-measurement at each balance sheet date and adjusted at each reporting period until exercised or expired, and any change in fair value is recognized in the Company's Consolidated Statements of Operations. The fair value of the Private Warrants as of December 31, 2021 was determined using the market price of the Company’s public warrants adjusted for their lack of liquidity. Effective December 29, 2021 all public warrants were redeemed on a cashless basis and ceased trading on Nasdaq. As a result, the Black-Scholes option pricing model was adopted to determine the fair value of the Private Warrants. The following table represents the assumptions for the Black-Scholes option-pricing model used in determining the fair value of the Private Warrants as of December 31, 2023 and 2022:


	December 31, 2023	December 31, 2022
Risk-free interest rate	3.84%	3.99%
Expected volatility of common stock	41.66%	42.44%
Dividend yield	-	-
Expected option term in years	2.0	3.0

The significant assumptions utilized in the Black-Scholes calculation consist of interest rate for U.S. Treasury Bonds, as published by the U.S. Federal Reserve, and expected volatility estimated using historical daily volatility of guideline public companies.

LEASES - Expense charged to operations under the operating lease agreements (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)
LEASES
Rent expense	$ 6,040

BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2023

BENEFIT PLANS

Schedule of total nondiscretionary contributions to the plan

Total nondiscretionary contributions to the plan were as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Nondiscretionary contributions	$	1,495	$	1,250	$	929

WARRANT LIABILITY (Details) - $ / shares	12 Months Ended
WARRANT LIABILITY (Details) - $ / shares	Dec. 31, 2022	Dec. 31, 2023	Jan. 01, 2022	Dec. 29, 2021	Nov. 29, 2021	Dec. 22, 2020
Class of Warrant or Right [Line Items]
Number of warrants outstanding	623,834	623,834			16,442,886	17,250,000
Number of shares of common stock called by each warrant						1
Exercise price of warrants			$ 0.01	$ 0.01	$ 0.01	$ 11.50
Share price	$ 18.5306
Private Placement
Class of Warrant or Right [Line Items]
Number of warrants outstanding		750,000
Number of shares of common stock called by each warrant		1
Exercise price of warrants	$ 11.50	$ 11.50
Cashless exercise of warrants	126,166
Remaining term		2 years
Common stock issued based on fair value	47,867

STOCKHOLDERS' EQUITY - Earn-Out Shares (Details)	Oct. 22, 2021 shares	Feb. 08, 2021 shares	Dec. 22, 2020 D $ / shares shares
Class of Stock [Line Items]
Number of earn-out shares issuable \| shares	1,854,169	1,855,634
If the closing price per share of the Company's common stock is greater than $13.50
Class of Stock [Line Items]
Stock price trigger for issuance of earn-out shares \| $ / shares			$ 13.50
Number of trading days considered for issuance of earn-out shares			20
Number of consecutive trading days considered for issuance of earn-out shares			30
Minimum Target Earn-out Shares, Percentage			50.00%
If the closing price per share of the Company's common stock is greater than $15.00
Class of Stock [Line Items]
Stock price trigger for issuance of earn-out shares \| $ / shares			$ 15.00
Number of trading days considered for issuance of earn-out shares			20
Number of consecutive trading days considered for issuance of earn-out shares			30
Monocle's founder shareholders
Class of Stock [Line Items]
Number of earn-out shares issuable \| shares			746,876
AerSale Aviation \| Pre-closing holders of AerSale Aviation's common stock and the holders of In-the-Money SARs \| Maximum
Class of Stock [Line Items]
Number of earn-out shares issuable \| shares			3,000,000

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 5,873	$ 147,188
Accounts receivable, net of allowance for credit losses of $978 and $1,074 as of December 31, 2023 and December 31, 2022	31,239	28,273
Income tax receivable	1,628
Inventory:
Aircraft, airframes, engines, and parts, net	177,770	117,488
Advance vendor payments	28,638	27,585
Deposits, prepaid expenses, and other current assets	19,626	13,022
Total current assets	264,774	333,556
Fixed assets:
Aircraft and engines held for lease, net	26,475	31,288
Property and equipment, net	27,692	12,638
Inventory:
Aircraft, airframes, engines, and parts, net	151,398	66,042
Operating lease right-of-use assets	27,519	31,624
Deferred income taxes	12,203	11,287
Deferred financing costs, net	1,506	544
Deferred customer incentives and other assets, net	525	628
Goodwill	19,860	19,860
Other intangible assets, net	21,986	24,112
Total assets	553,938	531,579
Current liabilities:
Accounts payable	29,899	21,131
Accrued expenses	5,478	8,843
Lessee and customer purchase deposits	1,467	17,085
Current operating lease liabilities	4,593	4,426
Current portion of long-term debt	1,278
Deferred revenue	2,998	1,355
Total current liabilities	45,713	52,840
Revolving credit facility	29,000
Long-term debt	7,281
Long-term lease deposits	102	152
Long-term operating lease liabilities	24,377	28,283
Maintenance deposit payments and other liabilities	64	668
Warrant liability	2,386	4,656
Total liabilities	108,923	86,599
Stockholders' equity:
Common stock, $0.0001 par value. Authorized 200,000,000 shares; issued and outstanding 52,954,430 and 51,189,461 shares as of December 31, 2023 and December 31, 2022	5	5
Additional paid-in capital	311,739	306,141
Retained earnings	133,271	138,834
Total stockholders' equity	445,015	444,980
Total liabilities and stockholders' equity	$ 553,938	$ 531,579

FINANCING ARRANGEMENTS

12 Months Ended

Dec. 31, 2023

FINANCING ARRANGEMENTS

FINANCING ARRANGEMENTS

NOTE L - FINANCING ARRANGEMENTS

Outstanding debt obligations as of December 31, 2023 and 2022 consisted of the following (in thousands):


	December 31,
	2023
$180.0 million Wells Fargo Senior Secured Revolving Credit Facility	$	29,000
$10.0 million Synovus Property and Equipment Revolving Term Loan		8,559
Total		37,559
Less current portion		(1,278)
Total long-term portion	$	36,281

At December 31, 2023 and 2022, total deferred financing costs were $1.5 and $0.5 million, respectively. Amortized debt issuance costs are recorded in interest expense through maturity of the related debt using the straight-line method, which approximates the effective interest method.

Amortization expense was as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Amortization expense	$	400	$	455	$	494

$180.0 million Wells Fargo Senior Secured Revolving Credit Facility

On July 20, 2018, AerSale Inc. and other subsidiary borrowers entered in a secured amended and restated Revolving Credit Agreement (as amended, the “Revolving Credit Agreement”). The Revolving Credit Agreement provided for a $110.0 million aggregate amount of revolver commitments subject to borrowing base limitations and a maturity date of July 20, 2021. The Revolving Credit Agreement included a $10 million sub facility for letters of credit and for borrowings on same-day notice referred to as “swingline loans”. The maximum amount of such commitments available at any time for borrowings and letters of credit is determined according to a borrowing base calculation equal to the sum of eligible inventory and eligible accounts receivable reduced by the aggregate amount, if any, of trade payables of the loan parties, as defined in the Revolving Credit Agreement. Extensions of credit under the Revolving Credit Agreement are available for working capital and general corporate purposes.

On March 9, 2023, we amended the Revolving Credit Agreement to replace the benchmark rate from LIBOR to Secured Overnight Financing Rate (“SOFR”).

On July 25, 2023, the Revolving Credit Agreement was amended to increase the maximum commitments thereunder to $180.0 million aggregate amount, expandable to $200.0 million, subject to conditions and the availability of lender commitments and borrowing base limitations, and the maturity date was extended to July 24, 2028.

As of December 31, 2023, the outstanding balance under the Revolving Credit Agreement was $29.0 million and at December 31, 2023 the Company had $131.0 million of availability, subject to borrowing base limitations.

As of December 31, 2022, there was no outstanding balance under the Revolving Credit Agreement.

The obligations of AerSale, Inc. under the Revolving Credit Agreement are guaranteed by the Company, and other subsidiaries of AerSale, Inc. may be designated as borrowers on a joint and several basis. Such obligations are also secured by substantially all of the assets of the Company.

The interest rate applicable to loans outstanding on the Revolving Credit Agreement is a floating rate of interest per annum of SOFR plus a margin of 2.75%. The interest rate as of December 31, 2023 was 7.69%.

The interest rate applicable to loans outstanding on the Revolving Credit Agreement prior to March 9, 2023, was a floating rate of interest per annum of LIBOR plus a margin of 3.5%. The interest rate as of December 31, 2022 was 9.50%.

Interest expense on the Revolving Credit Agreement was as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Interest expense	$	733	$	2	$	4

The Company’s ability to borrow on the Revolving Credit Agreement is subject to ongoing compliance by the Company and the borrowers with various customary affirmative and negative covenants. The Revolving Credit Agreement requires the Company and borrowers to meet certain financial and nonfinancial covenants. The Company was in compliance with these covenants as of December 31, 2023 and 2022.

$10.0 million Synovus Property and Equipment Revolving Term Loan

On June 30, 2023, the Company entered into a Property and Equipment Revolving Term Loan (“Equipment Loan”) with a total advance commitment of $10.0 million for the purpose of financing capital expenditures on property and equipment. Once the total advance commitment is reached or commencing on June 30, 2024, whichever comes first, this facility will become a term loan with a maturity date of June 30, 2027. This loan is collateralized by the property and equipment it finances and requires interest only payment until converted to a term loan, at which point, principal and interest payments will be required.

The Equipment Loan bears interest at a rate per annum equal to one-month SOFR plus 3.50%, which will be adjusted monthly. The effective rate on this facility as of December 31, 2023 was 8.84%. Interest expense on the Equipment Loan for the year ended December 31, 2023 was $0.4 million. Maturities of the Equipment Loan as of December 31, 2023 are as follows (in thousands):


Year ending December 31:
2024	$	1,278
2025		2,727
2026		2,971
2027		1,583
Total payments	$	8,559

The Equipment Loan is subject to ongoing compliance by the Company in the form of various customary affirmative and negative covenants, as well as certain financial covenants. The Company was in compliance with these covenants as of December 31, 2023.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

BUSINESS SEGMENTS - Selected financial information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Segments
Revenue	$ 334,503	$ 408,544	$ 340,437
Gross profit	92,421	151,394	119,392
Total assets	553,938	531,579
Asset Management Solutions
Segments
Revenue	215,167	277,607	232,010
Gross profit	67,655	118,231	89,546
Total assets	372,326	233,034
Asset Management Solutions \| Aircraft
Segments
Revenue	80,877	101,511	87,461
Gross profit	22,739	36,156	30,157
Asset Management Solutions \| Engine
Segments
Revenue	134,290	176,096	144,549
Gross profit	44,916	82,075	59,389
TechOps
Segments
Revenue	119,336	130,937	108,427
Gross profit	24,766	33,163	29,846
Total assets	163,883	141,406
TechOps \| Product
Segments
Revenue	16,583	11,942	8,528
Gross profit	3,761	4,397	1,713
TechOps \| Whole Asset Sales
Segments
Revenue	218	23,737
Gross profit	577	7,655
TechOps \| MRO services
Segments
Revenue	102,535	95,258	99,899
Gross profit	20,428	21,111	$ 28,133
Corporate
Segments
Total assets	$ 17,729	$ 157,139

INCOME TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Current
U.S. federal	$ (1,570)	$ 10,537	$ 11,003
U.S. state	128	3,015	1,780
Foreign	242	2,856	2,068
Current Income Tax Expense (Benefit), Total	(1,200)	16,408	14,851
Deferred
U.S. federal	(806)	(862)	(1,899)
U.S. state	(110)	(405)	(402)
Foreign		(1,120)	(891)
Deferred Income Tax Expense (Benefit), Total	(916)	(2,387)	(3,192)
Total
U.S. federal	(2,376)	9,675	9,104
U.S. state	18	2,610	1,378
Foreign	242	1,736	1,177
Total income tax expense (benefit)	$ (2,116)	$ 14,021	$ 11,659

LEASES - Future minimum lease payments (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Future minimum lease payments
2024/2023	$ 6,272	$ 6,341
2025/2024	5,429	5,965
2026/2025	5,102	5,153
2027/2026	4,154	4,970
2028/2027	3,931	4,154
Thereafter	11,516	15,447
Total undiscounted payments	36,404	42,030
Less: imputed interest	(7,434)	(9,321)
Present value of minimum lease payments	28,970	32,709
Less: Operating lease liabilities - current	(4,593)	(4,426)
Operating lease liabilities - non-current	$ 24,377	$ 28,283

RELATED-PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2023

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS

NOTE S - RELATED-PARTY TRANSACTIONS

On November 10, 2021, AerLine, a former consolidated VIE, transferred its ownership in equity investments to the Company in settlement of amounts owed to the Company. As a result, the Company’s $5.4 million balance due from AerLine was reclassified to Investment on the Company’s Consolidated Balance Sheet.

Based on the financial deterioration of the undelaying company in which the Company held an equity investment, in the fourth quarter of 2021, the Company recognized an unrealized loss on the investment of $5.4 million during the three-month period ended December 31, 2021. This loss is reflected on the Consolidated Statement of Operations in unrealized loss on investment for the year ended December 31, 2021.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net (loss) income	$ (5,563)	$ 43,861	$ 36,115
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	10,459	10,984	12,998
Amortization of debt issuance costs	400	455	494
Amortization of operating lease assets	359	873
Inventory reserve	1,507	2,376	6,942
Impairment of aircraft held for lease		857
Provision for credit losses		(395)	212
Deferred income taxes	(916)	(2,387)	(3,192)
Change in fair value of warrant liability	(2,270)	525	2,945
Share-based compensation	12,051	16,498	12,721
Loss on related party investment			5,421
Gain on legal settlement		(1,695)
Changes in operating assets and liabilities:
Accounts receivable	(2,966)	(1,029)	(3,342)
Income tax receivable	(1,628)
Inventory	(168,632)	(37,637)	(35,672)
Deposits, prepaid expenses, and other current assets	(6,604)	2,923	12,685
Deferred customer incentives and other assets	103	893	(333)
Advance vendor payments	(1,052)	(13,298)	(8,090)
Accounts payable	8,768	1,164	3,603
Income tax payable		(3,443)	2,157
Accrued expenses	(3,537)	417	(1,280)
Deferred revenue	1,643	(1,505)	265
Lessee and customer purchase deposits	(15,668)	(18,027)	34,690
Other liabilities	(604)	(2,523)	(260)
Net cash (used in) provided by operating activities	(174,150)	(113)	79,079
Cash flows from investing activities:
Proceeds from sale of assets	14,450	52,771	17,095
Proceeds from legal settlement, net		4,195
Acquisition of aircraft and engines held for lease, including capitalized cost		(7,133)	(2,383)
Purchase of property and equipment	(11,359)	(8,462)	(1,508)
Net cash provided by investing activities	3,091	41,371	13,204
Cash flows from financing activities:
Proceeds from long-term debt	8,559
Proceeds from Revolving Credit Agreement	82,700
Repayments of Revolving Credit Agreement	(53,700)
Purchase of treasury stock		(22,204)
Cash paid for employee taxes on withholding shares			(694)
Taxes paid related to net share settlement of equity awards	(7,019)	(2,592)
Proceeds from exercise of warrants			9,282
Payments of debt issuance costs	(1,362)
Proceeds from the issuance of Employee Stock Purchase Plan shares	566	538
Net cash provided by (used in) financing activities	29,744	(24,258)	8,588
(Decrease) increase in cash and cash equivalents	(141,315)	17,000	100,871
Cash and cash equivalents, beginning of period	147,188	130,188	29,317
Cash and cash equivalents, end of period	5,873	147,188	130,188
Supplemental disclosure of cash activities
Income tax payments, net	1,159	21,489	8,340
Interest paid	1,520	573	595
Supplemental disclosure of noncash investing activities
Reclassification of aircraft and aircraft engines inventory to (from) aircraft and engine held for lease, net	$ 19,374	(25,803)	(7,002)
Reclassification of customer purchase deposits to sale of assets		$ 12,500
Reclassification of amounts due from related party to investments			$ 5,421

INCOME TAXES - Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Tax Rate Reconciliation
U.S. federal statutory income tax rate	21.00%	21.00%	21.00%
Provision for income tax at the federal statutory rate	$ (1,613)	$ 12,155	$ 10,033
State taxes	165	1,959	1,357
Permanent differences	(328)	218	755
Change in valuation allowance	(1,313)	17	1,012
Executive compensation	3,016	2,562	1,934
Return to provision	151	591	659
FDII deduction		(3,014)	(4,093)
R&D credit	(1,174)
Stock-based compensation	(1,020)
Other		(467)	2
Total income tax (benefit) expense	$ (2,116)	$ 14,021	$ 11,659

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenue:
Total revenue	$ 334,503	$ 408,544	$ 340,437
Cost of sales and operating expenses:
Total cost of sales	242,082	257,150	221,045
Gross profit	92,421	151,394	119,392
Selling, general, and administrative expenses	103,191	96,348	77,498
Payroll support program proceeds			(14,768)
(Loss) income from operations	(10,770)	55,046	56,662
Other income (expenses):
Interest income (expense), net	155	1,093	(980)
Other income, net	666	2,268	458
Unrealized loss on investment			(5,421)
Change in fair value of warrant liability	2,270	(525)	(2,945)
Total other income (expenses)	3,091	2,836	(8,888)
(Loss) income before income tax provision	(7,679)	57,882	47,774
Income tax benefit (expense)	2,116	(14,021)	(11,659)
Net (loss) income	(5,563)	43,861	36,115
Net income (loss) attributable to AerSale Corporation common stockholders	$ (7,833)	$ 43,861	$ 36,115
(Loss) earnings per share:
Basic (in dollars per share)	$ (0.11)	$ 0.85	$ 0.84
Diluted (in dollars per share)	$ (0.15)	$ 0.83	$ 0.76
Weighted average shares outstanding:
Basic (in shares)	51,291,424	51,568,436	43,193,995
Diluted (in shares)	51,457,821	53,145,639	47,310,100
Products
Revenue:
Total revenue	$ 217,455	$ 284,554	$ 209,881
Cost of sales and operating expenses:
Total cost of sales	155,376	176,074	139,475
Leasing
Revenue:
Total revenue	14,513	28,732	30,657
Cost of sales and operating expenses:
Total cost of sales	4,599	6,929	9,804
Services
Revenue:
Total revenue	102,535	95,258	99,899
Cost of sales and operating expenses:
Total cost of sales	$ 82,107	$ 74,147	$ 71,766

WARRANT LIABILITY (Tables)

12 Months Ended

Dec. 31, 2023

WARRANT LIABILITY

Assumptions of Black-Scholes option pricing model


	December 31, 2023	December 31, 2022
Risk-free interest rate	3.84%	3.99%
Expected volatility of common stock	41.66%	42.44%
Dividend yield	-	-
Expected option term in years	2.0	3.0

STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2023

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY

NOTE O - STOCKHOLDERS’ EQUITY

Common Stock

The Company’s common stock consist of $0.0001 par value, 200,000,000 shares authorized, of which 52,954,430 and 51,189,461 shares were issued and outstanding as of December 31, 2023 and 2022, respectively.

Effective November 8, 2022, the Board of Directors approved the repurchase, directly from selling stockholders, 1,500,000 shares of the Company’s common stock, par value $0.0001 per share, at a price of $14.8025 per share for a total of $22,203,750.

Earn-Out Shares

Upon consummation of the Merger, the pre-closing holders of AerSale Aviation’s common stock and the holders of in-the-money stock appreciation rights (“SARs”) received a contingent right to receive up to 3,000,000 additional shares of the Company’s common stock. Additionally, certain pre-closing holders of AerSale Aviation’s common stock received

a contingent right to receive 746,876 shares of the Company’s common stock, in the aggregate (the ‘‘Earn-out Shares’’), subject to the following:

Prior to the fifth anniversary of the Merger, if the closing price per share of the Company’s common stock is greater than $13.50 for any period of 20 trading days out of 30 consecutive trading days, the holders will be entitled to receive 50% of the Earn-out Shares in the aggregate (“Minimum Target Earn-out Shares”); and

Prior to the fifth anniversary of the Merger, if the closing price per share of the Company’s common stock is greater than $15.00 for any period of 20 trading days out of 30 consecutive trading days, the holders will be entitled to receive all of the remaining Earn-out Shares not yet issued in the aggregate.

Effective February 8, 2021, the contingency event related to the Minimum Target Earn-out Shares was met and 1,855,634 shares were issued. Effective October 22, 2021, the contingency event related to the Maximum Target Earn-out Shares was met and 1,854,169 shares were issued. The remaining shares pursuant to the contingent rights were withheld to cover employee taxes.

We determined the Earn-out Shares to be classified as equity under ASC Topic 815, “Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in a Company’s Own Stock” as the contingent right is indexed to the Company’s stock and accordingly, the accrual of the Earn-Out shares had no impact on our consolidated financial statements.

Unvested Founder Shares

Upon the Merger, certain pre-closing holders of AerSale Corporation’s common stock agreed to defer the vesting of an aggregate of 700,000 shares (the “Unvested Founder Shares”), half of which will vest at such time as the Minimum Target (as defined in the Merger Agreement) and the other half of which will vest at the Maximum Target (as defined in the Merger Agreement). The Unvested Founder Shares will also vest upon the occurrence of a Liquidity Event on or prior to the fifth anniversary of the date of the Amended and Restated Founder Shares Agreement, solely to the extent the Liquidity Event Consideration (as defined in the Merger Agreement) is greater than (i) $13.50, in which case half of the Unvested Founder Shares which will vest, or (ii) $15.00, in which case the other half of the Unvested Founder Shares will also vest.

Effective February 8, 2021, the contingency event related to the Minimum Target was met and half of the Unvested Founder Shares vested. Effective October 22, 2021, the contingent event related to the Maximum Target was met and the other half of the Unvested Founder Shares vested.

Public Warrants

On November 29, 2021, the Company provided notice to the then holders of all of our 16,442,886 outstanding Public Warrants to purchase shares of our common stock that were issued under the warrant agreement as part of the units sold in our initial public offering, that we would be redeeming all of the Public Warrants for a redemption price of $0.01 per Public Warrant on December 29, 2021 (the “Redemption”). In accordance with the warrant agreement, following delivery of notice of the Redemption, all of our Public Warrants could only be exercised on a cashless basis in lieu of being redeemed. On December 29, 2021, we completed the Redemption and the Public Warrants ceased trading on Nasdaq. A total of 16,357,872 Public Warrants were exercised on a cashless basis in lieu of being redeemed, resulting in net issuances of 6,079,966 shares of our common stock under such Public Warrants. The remaining 85,014 unredeemed Public Warrants were redeemed for a redemption price of $0.01 per Public Warrant effective January 2022. The Private Warrants that are still held by the initial holders or their permitted transferees were not subject to the Redemption.

2020 Equity Incentive Plan

The Company maintains a 2020 Equity Incentive Plan (the “2020 Plan”) and has registered 6,200,000 shares of common stock issuable under the Plan. The 2020 Plan authorizes discretionary grants of incentive stock options to employees of the Company and its qualifying subsidiaries. The 2020 Plan also authorizes discretionary grants of non-

qualified stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalents or other equity or cash-based awards to employees and consultants of the Company and its subsidiaries and to members of the Board of Directors of the Company. To the extent that an award under the 2020 Plan expires, is cancelled, forfeited, terminated, settled in cash or is otherwise settled without issuance of the full number of shares to which it relates, will become or again be available for awards under the 2020 Plan. The 2020 Plan is administered by the Company's Compensation Committee. The Compensation Committee has complete, full and final authority to: designate participants; determine the types of awards to be granted; determine the terms of awards; interpret and administer the 2020 Plans and any agreements and awards thereunder. Approximately 2,996,618 shares of common stock remain available for future grants.

Restricted stock unit activity under the 2020 Plan for the year ended December 31, 2023 and 2022 was as follows:


				Weighted Average
		Weighted Average		Remaining Contractual
	Amount	Grant Date Fair Value		Life (Years)
Outstanding at December 31, 2022	1,374,383	$	10.72		2.88
Granted	390,887		14.96
Forfeited	(40,516)		14.87
Vested ⁽¹⁾	(1,192,355)		11.14
Outstanding December 31, 2023	532,399	$	14.82		1.84


				Weighted Average
		Weighted Average		Remaining Contractual
	Amount	Grant Date Fair Value		Life (Years)
Outstanding at December 31, 2021	1,669,300	$	10.10		2.02
Granted	278,473		14.80
Forfeited	(15,080)		13.69
Vested ⁽²⁾	(558,310)		10.80
Outstanding December 31, 2022	1,374,383	$	10.72		2.88

(1)

(2)

The Company’s restricted stock units include 10,403 performance-based awards that have vesting provisions subject to both time vesting and the achievement of certain performance milestones at 100% and 200% vesting targets, while the remaining 521,996 awards vest over a period ranging from one to three years.

For the restricted stock unit awards granted under the 2020 Plan containing both service and performance conditions, the Company recognizes compensation expense when the awards are considered probable of vesting. Restricted stock units are considered granted, and the service inception date begins, when a mutual understanding of the key terms and conditions between the Company and the employee have been established. The fair value of these awards is determined based on the closing price of the shares on the grant date. The probability of restricted share awards granted with future performance conditions is evaluated at each reporting period and compensation expense is adjusted based on the probability assessment.

For the years ended December 31, 2023 and 2022, the Company recognized share-based compensation expense for certain performance-based awards of $7.9 million and $14.2 million, respectively, given that the achievement of the performance milestones at the 200% vesting target have been deemed probable for accounting purposes.

2020 Employee Stock Purchase Plan

The Company also maintains a 2020 Employee Stock Purchase Plan (the “ESPP”) and has registered 500,000 shares of common stock issuable under the ESPP. For the years ended December 31, 2023 and 2022, the Company issued 45,755 and 46,726 shares, respectively, pursuant to the ESPP and approximately 407,519 shares remain available for future issuance.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 505
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481004/946-505-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
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-Section 50
-Paragraph 6
-Subparagraph (a)
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

+ Details

INCOME TAXES - Deferred Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deferred tax assets:
Net operating losses	$ 2,005	$ 94
Foreign tax credit carryforwards	1,109	67
Inventory basis differences	9,269	10,511
Maintenance deposit payments		154
Deferred revenue	726	328
Allowance for doubtful accounts	237	285
Start up costs	634	688
Stock-based compensation	966	1,408
Outside basis difference		1,313
Accrued expenses	22	908
Section 174 capitalization	2,971	1,722
Lease obligations	7,010	7,922
R&D credit	434
Other	445	190
Total deferred tax assets	25,828	25,590
Deferred tax liabilities:
Fixed assets	(6,489)	(5,167)
Right-of-use asset	(6,659)	(7,659)
Intangible assets	(477)	(164)
Total deferred tax liabilities	(13,625)	(12,990)
Valuation allowance	(1,300)	(1,313)
Deferred income taxes, net	$ 12,203	$ 11,287

REVENUE

12 Months Ended

Dec. 31, 2023

REVENUE.

REVENUE

NOTE D - REVENUE

The timing of revenue recognition, customer billings, and cash collections results in a contract asset or contract liability at the end of each reporting period. Contract assets consist of unbilled receivables or costs incurred where revenue recognized over time exceeds the amounts billed to customers. We record a receivable when revenue is recognized prior to invoicing and we have an unconditional right to consideration (only the passage of time is required before payment of that consideration is due) and a contract asset when the right to payment is conditional upon our future performance. Contract liabilities include advance payments and billings in excess of revenue recognized. Certain customers make advance payments prior to our satisfaction of our performance obligations on the contract. These amounts are recorded as contract liabilities until such performance obligations are satisfied. Contract assets and contract liabilities are determined on a contract by contract basis.

The contract assets are as follows (in thousands):


	December 31, 2023		December 31, 2022		Change
Contract assets	$	6,474	$	7,277	$	(803)

Contract assets are reported within deposits, prepaid expenses, and other current assets on our Consolidated Balance Sheets. Changes in contract assets primarily results from the timing difference between our performance of services. Contract liabilities are reported as deferred revenue on our Consolidated Balance Sheets and amounted to $1.4 million as of December 31, 2022, of which $1.1 million was related to contract liabilities for services to be performed. For the year ended December 31, 2023, we recognized as revenue the entire opening balance of our contract liabilities as the timing between customer payments and our performance of the services is a short period of time and generally no longer than six months.

Disaggregation of Revenue

The Company reports revenue by segment. The following tables present revenue by segment, as well as a reconciliation to total revenue (in thousands):


	Year Ended December 31,
	2023
	Asset Management
	Solutions		TechOps		Total Revenues
USM	$	63,418	$	15,278	$	78,696
Whole asset sales		137,236		218		137,454
Engineered solutions		-		1,305		1,305
Total products		200,654		16,801		217,455
Leasing		14,513		-		14,513
Services		-		102,535		102,535
Total revenues	$	215,167	$	119,336	$	334,503


	Year Ended December 31,
	2022
	Asset Management
	Solutions		TechOps		Total Revenues
USM	$	50,125	$	8,146	$	58,271
Whole asset sales		198,750		23,737		222,487
Engineered solutions		-		3,796		3,796
Total products		248,875		35,679		284,554
Leasing		28,732		-		28,732
Services		-		95,258		95,258
Total revenues	$	277,607	$	130,937	$	408,544


	Year Ended December 31,
	2021
	Asset Management
	Solutions		TechOps		Total Revenues
USM	$	44,409	$	4,884	$	49,293
Whole asset sales		156,944		-		156,944
Engineered solutions		-		3,644		3,644
Total products		201,353		8,528		209,881
Leasing		30,657		-		30,657
Services		-		99,899		99,899
Total revenues	$	232,010	$	108,427	$	340,437

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Section 50
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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-Subparagraph (d)
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

BUSINESS SEGMENTS - Depreciation and Amortization Expense and Capital expenditures (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Total Depreciation and Amortization Expense	$ 10,459	$ 10,984	$ 12,998
Acquisition of aircraft and engines held for lease		7,133	2,383
Asset Management Solutions
Segment Reporting Information [Line Items]
Total Depreciation and Amortization Expense	6,043	7,807	10,163
Payments to Acquire Other Property, Plant, and Equipment	488	8,288	2,383
TechOps
Segment Reporting Information [Line Items]
Total Depreciation and Amortization Expense	3,549	2,609	2,506
Payments to Acquire Other Property, Plant, and Equipment	9,206	6,078	1,224
Corporate
Segment Reporting Information [Line Items]
Total Depreciation and Amortization Expense	867	568	329
Payments to Acquire Other Property, Plant, and Equipment	1,665	1,229	284
Operating segments
Segment Reporting Information [Line Items]
Total Depreciation and Amortization Expense	10,459	10,984	12,998
Total Capital Expenditures	$ 11,359	$ 15,595	$ 3,891

FINANCING ARRANGEMENTS - Revolving credit facility (Details) - USD ($) $ in Thousands			12 Months Ended
	Jun. 30, 2023	Mar. 09, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Jul. 25, 2023	Jul. 20, 2018
Financing arrangements
Deferred financing costs, net			$ 1,506	$ 544
Interest expense			733	2	$ 4
Letters of credit
Financing arrangements
Maximum borrowing capacity							$ 10,000
Revolving credit agreement
Financing arrangements
Deferred financing costs, net			1,500	500
Outstanding borrowings			$ 29,000	$ 0
Interest rate			7.69%	9.50%
Available borrowing capacity			$ 131,000
Aggregate amount committed							$ 110,000
Revolving credit agreement \| Wells Fargo
Financing arrangements
Debt instrument, face amount			$ 180,000			$ 180,000
Maximum borrowing capacity, expandable amount						$ 200,000
Revolving credit agreement \| LIBOR
Financing arrangements
Spread on variable rate		3.50%
Revolving credit agreement \| SOFR
Financing arrangements
Spread on variable rate			2.75%
Equipment Loan \| Synovus
Financing arrangements
Debt instrument, face amount			$ 10,000
Maximum borrowing capacity	$ 10,000
Interest rate			8.84%
Interest expense			$ 400
Equipment Loan \| SOFR \| Synovus
Financing arrangements
Spread on variable rate	3.50%

INCOME TAXES

12 Months Ended

Dec. 31, 2023

INCOME TAXES

INCOME TAXES

NOTE M - INCOME TAXES

Income tax (benefit) expense consists of (in thousands):


	Current		Deferred		Total
Year Ended December 31, 2023:
U.S. federal	$	(1,570)	$	(806)	$	(2,376)
U.S. state		128		(110)		18
Foreign		242		-		242
Total income tax (benefit) expense	$	(1,200)	$	(916)	$	(2,116)


	Current		Deferred		Total
Year Ended December 31, 2022:
U.S. federal	$	10,537	$	(862)	$	9,675
U.S. state		3,015		(405)		2,610
Foreign		2,856		(1,120)		1,736
Total income tax expense (benefit)	$	16,408	$	(2,387)	$	14,021


	Current		Deferred		Total
Year Ended December 31, 2021:
U.S. federal	$	11,003	$	(1,899)	$	9,104
U.S. state		1,780		(402)		1,378
Foreign		2,068		(891)		1,177
Total income tax expense (benefit)	$	14,851	$	(3,192)	$	11,659

Tax Rate Reconciliation


	2023		2022		2021
Provision for income tax at the federal statutory rate	$	(1,613)	$	12,155	$	10,033
State taxes		165		1,959		1,357
Permanent differences		(328)		218		755
Change in valuation allowance		(1,313)		17		1,012
Executive compensation		3,016		2,562		1,934
Return to provision		151		591		659
FDII deduction		-		(3,014)		(4,093)
R&D credit		(1,174)		-		-
Stock-based compensation		(1,020)		-		-
Other		-		(467)		2
Total income tax (benefit) expense	$	(2,116)	$	14,021	$	11,659

Significant Components of Deferred Taxes

Deferred tax assets and liabilities reflect the net effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as of December 31, 2023 and 2022 are as follows (in thousands):


	2023		2022
Deferred tax assets:
Net operating losses	$	2,005	$	94
Foreign tax credit carryforwards		1,109		67
Inventory basis differences		9,269		10,511
Maintenance deposit payments		-		154
Deferred revenue		726		328
Allowance for doubtful accounts		237		285
Start up costs		634		688
Stock-based compensation		966		1,408
Outside basis difference		-		1,313
Accrued expenses		22		908
Section 174 capitalization		2,971		1,722
Lease obligations		7,010		7,922
R&D credit		434		-
Other		445		190
Total deferred tax assets		25,828		25,590
Deferred tax liabilities:
Fixed assets		(6,489)		(5,167)
Right-of-use assets		(6,659)		(7,659)
Intangible assets		(477)		(164)
Total deferred tax liabilities		(13,625)		(12,990)
Valuation Allowances		-		(1,313)
Deferred income taxes, net	$	12,203	$	11,287

The deferred tax assets are adjusted by a valuation allowance if, based on the weight of available evidence, it is more likely than not that a portion or all the deferred assets will not be realized. The Company has evaluated the positive and negative evidence bearing upon its ability to realize the deferred tax assets. After considering all of the evidence, both positive and negative, it was determined that it is more likely than not, that the benefit from an outside basis difference of an investment acquired in 2022 will not be realized. Accordingly, the Company has recorded a valuation allowance of $1.3 million on the deferred tax assets related to the outside basis difference as of December 31, 2023.

At December 31, 2023 and December 31, 2022, the Company had net operating losses available for carry-forward for Federal income tax purposes of approximately $7.8 million and $0.4 million, respectively. These net operating loss carryforwards acquired prior to 2023 will expire on various dates through 2034. Utilization of the net operating loss carryforwards as of December 31, 2023 are subject to annual limitation under Sec. 382 of the Internal Revenue Code. A deferred tax asset has been recorded only for those carryforwards that the Company expects to utilize prior to expiration.

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, various state jurisdictions, and in Ireland. Tax years beginning in 2019 through 2022 are open for examination by the U.S. Internal Revenue Service and tax years beginning in 2018 through 2022 are open for examination by various state taxing jurisdictions in which the Company is subject to tax. Tax years beginning in 2018 through 2022 are open for examination by the Irish taxing authorities.

ASC 740, Income Taxes, provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. ASC 740 also provides guidance on measurement, derecognition,

classification, interest and penalties, accounting in interim periods, and disclosure and transition. As of December 31, 2023 and 2022, there was no reserve for uncertain tax positions.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2023

COMMITMENTS AND CONTINGENCIES.

COMMITMENTS AND CONTINGENCIES

NOTE R - COMMITMENTS AND CONTINGENCIES

Management Compensation

Certain executive management entered into employment agreements with the Company. The contracts are for a period of three years, and the contracts provide that such management may earn discretionary bonuses, computed upon a sliding percentage scale of their base salaries, based on the overall financial performance of the Company and each individual’s contributions, subject to approval by the Company’s Board of Directors. Additionally, under certain termination conditions, such contracts provide for severance payments under the Company’s Severance Plan, including payment of base salary, bonus, and fringe benefits. The contracts include certain noncompete clauses commencing upon the employee’s separation from the Company.

Litigation

The Company could be involved in litigation incidental to the operation of the business. The Company intends to vigorously defend all matters in which the Company is named as a defendant, and, for insurable losses, maintain significant levels of insurance to protect against adverse judgments, claims or assessments that may affect the Company. Although the adequacy of existing insurance coverage of the outcome of any legal proceedings cannot be predicted with certainty, based on the current information available, the Company does not believe the ultimate liability associated with known

claims or litigation, if any, in which the Company is involved will materially affect the Company’s consolidated financial condition or results of operations.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Useful lives, impairment and reclassification (Details) - USD ($)					12 Months Ended
	Oct. 01, 2023	Jul. 01, 2023	Oct. 01, 2022	Jul. 01, 2022	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment
Impairment of goodwill	$ 0		$ 0		$ 0	$ 0
Impairment of indefinite lived intangible		$ 0		$ 0
Customer relationships
Property, Plant and Equipment
Amortization term (in years)					10 years
Minimum
Property, Plant and Equipment
Useful life (in years)					2 years
Minimum \| Aircraft
Property, Plant and Equipment
Useful life (in years)					0 years
Maximum
Property, Plant and Equipment
Useful life (in years)					15 years
Maximum \| Aircraft
Property, Plant and Equipment
Useful life (in years)					7 years

FINANCING ARRANGEMENTS -Outstanding debt obligations (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jul. 25, 2023
Debt Instrument [Line Items]
Total	$ 37,559
Less current portion	(1,278)
Total long-term portion	36,281
Wells Fargo \| Revolving credit agreement
Debt Instrument [Line Items]
Total	29,000
Debt instrument, face amount	180,000	$ 180,000
Synovus \| Equipment Loan
Debt Instrument [Line Items]
Total	8,559
Debt instrument, face amount	$ 10,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482900/835-30-50-1

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 1
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
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-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
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-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-3

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
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-Paragraph 1B
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+ Details

ACCRUED EXPENSES

12 Months Ended

Dec. 31, 2023

ACCRUED EXPENSES

ACCRUED EXPENSES

NOTE J - ACCRUED EXPENSES

The following is a summary of the components of accrued expenses (in thousands):


	December 31, 2023		December 31, 2022
Accrued compensation and related benefits	$	2,241	$	6,040
Accrued legal fees		854		716
Commission fee accrual		260		251
Accrued federal, state and local taxes and fees		105		142
Other		2,018		1,694
	$	5,478	$	8,843

STOCKHOLDERS' EQUITY - Unvested Founder Shares (Details)	12 Months Ended
	Dec. 31, 2022 $ / shares shares
If the closing price per share of the Company's common stock is greater than $13.50
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance Of Unvested Founder Shares, Stock Price Trigger	$ 13.50
If the closing price per share of the Company's common stock is greater than $15.00
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance Of Unvested Founder Shares, Stock Price Trigger	$ 15.00
Pre-closing holders of AerSale Aviation's common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested Founder Shares, Number of Shares Deferred for Vesting \| shares	700,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

PROPERTY AND EQUIPMENT, NET - Depreciation expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
PROPERTY AND EQUIPMENT, NET
Depreciation expense	$ 3,736	$ 2,242	$ 1,997

INCOME TAXES - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
INCOME TAXES
Valuation allowance	$ 1,300	$ 1,313
Operating loss carryforwards	7,800	400
Reserve for uncertain tax positions	$ 0	$ 0

BUSINESS SEGMENTS (Details)	12 Months Ended
BUSINESS SEGMENTS (Details)	Dec. 31, 2023 segment
BUSINESS SEGMENTS
Number of business segments	2

FINANCING ARRANGEMENTS (Tables)

12 Months Ended

Dec. 31, 2023

FINANCING ARRANGEMENTS

Schedule of outstanding debt obligations


	December 31,
	2023
$180.0 million Wells Fargo Senior Secured Revolving Credit Facility	$	29,000
$10.0 million Synovus Property and Equipment Revolving Term Loan		8,559
Total		37,559
Less current portion		(1,278)
Total long-term portion	$	36,281

Schedule of amortization expense

Amortization expense was as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Amortization expense	$	400	$	455	$	494

Schedule of interest expense

Interest expense on the Revolving Credit Agreement was as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Interest expense	$	733	$	2	$	4

Schedule of payments on the equipment loan


Year ending December 31:
2024	$	1,278
2025		2,727
2026		2,971
2027		1,583
Total payments	$	8,559

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details

INTANGIBLE ASSETS - Amortization expense (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
INTANGIBLE ASSETS
Amortization expense	$ 2,126,000	$ 2,136,000	$ 2,132,000
Estimated aggregate amount of amortization expense for intangible assets
2024	2,100,000
2025	2,100,000
2026	2,100,000
2027	2,100,000
2028	2,100,000
Accumulated amortization	9,300,000	7,200,000
Increase in goodwill	$ 0	$ 0

LEASES

12 Months Ended

Dec. 31, 2023

LEASES

LEASES

NOTE Q - LEASES

The Company leases facilities, offices, and equipment. The Company evaluates whether a contractual arrangement that provides it with control over the use of an asset is a lease. The ROU asset and related operating lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the term of the lease. The implicit rate of our lease arrangements is not readily determinable nor is it disclosed by our lessors; therefore, the Company uses its incremental borrowing rate based on information available at the lease commencement date to discount the lease payments. The Company classifies a lease as operating or finance using the classification criteria set forth in ASC Topic 842. Some of our leases are non-cancellable and may include renewal or termination options. Renewal or termination options that are reasonably certain to be exercised are included in the determination of the term of a lease.

The Company’s lease agreements typically do not contain any significant residual value guarantees or restrictive covenants, and may include variable lease payments related to escalation clauses based on consumer price index rates, as well as maintenance and other services. Variable lease payments that depend on an index or rate are included in the determination of ROU asset and lease liabilities using the index or rate at the lease commencement date, whereas variable lease payments that do not depend on an index or rate are recorded as lease expense in the period incurred. Lease expense is recognized over the term of the lease on a straight-line basis unless another systematic basis is more representative of the pattern in which the Company expects to consume the asset’s future economic benefits.

ROU assets are evaluated for impairment in a manner consistent with the treatment of other long-lived assets. The Company made an accounting policy election to not recognize lease assets or liabilities for leases with a term of 12 months or less.

The components of lease expense for the years ended December 31, 2023 and 2022 were as follows (in thousands):


	Year Ended December 31,
	2023		2022
Operating lease cost		7,001		5,005
Short-term lease cost		392		170
Variable lease cost		397		1,071
	$	7,790	$	6,246

Expense charged to operations under the operating lease agreements for prior years were as follows (in thousands):



	2021
Rent expense	$	6,040

Our operating leases expire at various dates through 2032. Maturities of our operating lease payments as of December 31, 2023 are as follows (in thousands):


	Operating
	Leases
Year ending December 31:
2024	$	6,272
2025		5,429
2026		5,102
2027		4,154
2028		3,931
Thereafter		11,516
Total undiscounted payments		36,404
Less: imputed interest		(7,434)
Present value of minimum lease payments		28,970
Less: Operating lease liabilities - current		(4,593)
Operating lease liabilities - non-current	$	24,377

Maturities of our operating lease payments as of December 31, 2022, are as follows (in thousands):


	Operating
	Leases
Year ending December 31:
2023	$	6,341
2024		5,965
2025		5,153
2026		4,970
2027		4,154
Thereafter		15,447
Total undiscounted payments		42,030
Less: imputed interest		(9,321)
Present value of minimum lease payments		32,709
Less: Operating lease liabilities - current		(4,426)
Operating lease liabilities - non-current	$	28,283

Our weighted-average remaining lease term and weighted-average discount rate are as follows:


	2023	2022
Remaining lease term (years)	7.13	7.80
Discount Rate	6.34%	6.40%

Supplemental cash flow information related to leases were as follows (in thousands):

COMMITMENTS AND CONTINGENCIES (Details)	12 Months Ended
COMMITMENTS AND CONTINGENCIES (Details)	Dec. 31, 2023
COMMITMENTS AND CONTINGENCIES.
Employment agreements term	3 years

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Consolidated Balance Sheets
Allowance for doubtful accounts	$ 978	$ 1,074
Common Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	200,000,000	200,000,000
Common Stock, Shares, Issued	52,954,430	51,189,461
Common Stock, Shares, Outstanding	52,954,430	51,189,461

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2023	Mar. 05, 2024	Jun. 30, 2023
Document and Entity Information [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
Document Transition Report	false
Entity File Number	001-38801
Entity Registrant Name	AerSale Corporation
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-3976002
Entity Address, Address Line One	255 Alhambra Circle
Entity Address, Address Line Two	Suite 435
Entity Address, City or Town	Coral Gables
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33134
City Area Code	305
Local Phone Number	764-3200
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	ASLE
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
ICFR Auditor Attestation Flag	false
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 421
Entity Common Stock, Shares Outstanding		51,990,947
Auditor Name	GRANT THORNTON LLP
Auditor Firm ID	248
Auditor Location	Miami, Florida
Entity Central Index Key	0001754170
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Amendment Flag	false

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2023

EARNINGS PER SHARE

Summary of reconciliation of the computation for basic and diluted earnings per share

The following table provides a reconciliation of the computation for basic and diluted earnings per share for the years ended December 31, (in thousands, except share and per share data):


	2023		2022		2021
Net (loss) income	$	(5,563)	$	43,861	$	36,115
Less: change in FV of warrants		(2,270)		-		-
Income (loss) attributable to common shareholders for EPS	$	(7,833)	$	43,861	$	36,115

Weighted-average number of shares outstanding - basic		51,291,424		51,568,436		43,193,995
Additional shares from assumed exercise of warrants		166,397		141		3,070,762
Additional shares from assumed stock-settled restricted stock units		-		1,577,062		1,040,883
Additional shares issued under the Employee Stock Purchase Plan		-		-		4,460
Weighted-average number of shares outstanding - diluted		51,457,821		53,145,639		47,310,100

Earnings per share - basic:	$	(0.11)	$	0.85	$	0.84
Earnings per share - diluted:	$	(0.15)	$	0.83	$	0.76

Shares/units excluded from earnings per share - dilutive:
Additional shares from assumed exercise of Private Warrants		-		212,540		-
Additional shares from assumed stock-settled restricted stock units		192,687		-		-

BUSINESS SEGMENTS - Geographic (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 334,503	$ 408,544	$ 340,437
Revenues	334,503	408,544	340,437
Total long-lived assets	96,013	87,898
Domestic
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	145,076	169,878	133,911
Total long-lived assets	96,013	87,898
Foreign
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	189,427	238,666	206,526
Operating segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 334,503	$ 408,544	$ 340,437

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

+ References

+ Details

PROPERTY AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2023

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET

NOTE G - PROPERTY AND EQUIPMENT, NET

Property and equipment, net, consisted of the following (in thousands):


	Useful Life
	In Years	December 31, 2023		December 31, 2022
Tooling and equipment	7 - 15	$	16,024	$	14,649
Furniture and other equipment	5		12,076		10,090
Computer software	5		2,374		2,152
Leasehold improvements	3 - 10		16,269		7,390
Equipment under capital lease	5		192		192
Flight equipment held for R&D	2		7,784		-
			54,719		34,473
Less accumulated depreciation			(27,027)		(21,835)
		$	27,692	$	12,638

Depreciation expense, which includes amortization of equipment under capital lease, was as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Depreciation expense	$	3,736	$	2,242	$	1,997

INTANGIBLE ASSETS (Details) - USD ($)					12 Months Ended
INTANGIBLE ASSETS (Details) - USD ($)	Oct. 01, 2023	Jul. 01, 2023	Oct. 01, 2022	Jul. 01, 2022	Dec. 31, 2023	Dec. 31, 2022
Intangible assets
Goodwill					$ 19,860,000	$ 19,860,000
Total intangible assets with indefinite lives					30,190,000	30,190,000
Impairment of indefinite lived intangible		$ 0		$ 0
Impairment of goodwill	$ 0		$ 0		0	0
TechOps \| ACS
Intangible assets
Goodwill					63,000	63,000
TechOps \| ACS \| Certifications
Intangible assets
Intangible assets with indefinite lives excluding goodwill					7,300,000	7,300,000
TechOps \| ACS \| Trademarks
Intangible assets
Intangible assets with indefinite lives excluding goodwill					600,000	600,000
TechOps \| ALGS
Intangible assets
Goodwill					379,000	379,000
TechOps \| ALGS \| Certifications
Intangible assets
Intangible assets with indefinite lives excluding goodwill					710,000	710,000
TechOps \| ACT
Intangible assets
Goodwill					6,002,000	6,002,000
TechOps \| ACT \| FAA Certificates
Intangible assets
Intangible assets with indefinite lives excluding goodwill					796,000	796,000
TechOps \| ACT \| Trademarks
Intangible assets
Intangible assets with indefinite lives excluding goodwill					200,000	200,000
Asset Management Solutions \| Qwest \| Certifications
Intangible assets
Intangible assets with indefinite lives excluding goodwill					724,000	724,000
Goodwill					$ 13,416,000	$ 13,416,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2023

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of Allowance for doubtful accounts

A rollforward of the allowance for credit losses is as follows (in thousands):


	2023		2022
Balance at beginning of year	$	1,074	$	1,692
Provision		-		(395)
Write-offs		(96)		(223)
Balance at end of year	$	978	$	1,074

Schedule of additional inventory reserves

These additional inventory reserves were as follows (in thousands):

Schedule of scrap losses on inventory

These scrap losses are as follows (in thousands):

BUSINESS SEGMENTS - Gross profit to net income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
BUSINESS SEGMENTS
Segment gross profit	$ 92,421	$ 151,394	$ 119,392
Selling, general, and administrative expenses	(103,191)	(96,348)	(77,498)
Payroll support program proceeds			14,768
Interest (expense) income, net	155	1,093	(980)
Other income, net	666	2,268	458
Unrealized loss on investment			(5,421)
Change in fair value of warrant liability	2,270	(525)	(2,945)
(Loss) income before income tax provision	$ (7,679)	$ 57,882	$ 47,774

- Definition

Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity.

+ References

+ Details

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

DESCRIPTION OF THE BUSINESS

12 Months Ended

Dec. 31, 2023

DESCRIPTION OF THE BUSINESS

DESCRIPTION OF THE BUSINESS

NOTE A-DESCRIPTION OF THE BUSINESS

Organization

Monocle Acquisition Corporation (“Monocle”) was initially formed on August 20, 2018 for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or similar business combination with one or more businesses.

On December 22, 2020, (the “Closing Date”), Monocle consummated the previously announced business combination pursuant to that certain Amended and Restated Agreement and Plan of Merger, dated September 8, 2020 (the “Merger Agreement”) by and among Monocle, AerSale Corporation (f/k/a Monocle Holdings Inc.), a Delaware corporation (the “Company”), AerSale Aviation, Inc. (f/k/a AerSale Corp.), a Delaware corporation (“AerSale Aviation”), Monocle Merger Sub 1 Inc., a Delaware corporation (“Merger Sub 1”), Monocle Merger Sub 2 LLC, a Delaware limited liability company (“Merger Sub 2”), and Leonard Green & Partners, L.P., a Delaware limited partnership, solely in its capacity as the initial Holder Representative (as defined in the Merger Agreement). The transactions contemplated by the Merger Agreement are referred to herein as the “Merger” or the “Business Combination” and in connection therewith, Monocle merged with and into us, whereby we survived the merger and became the successor issuer to Monocle by operation of Rule 12g-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

Upon the consummation of the Merger: (a) Merger Sub 1 was merged with and into Monocle, with Monocle surviving the merger as a wholly-owned direct subsidiary of the Company (the “First Merger”), and (b) Merger Sub 2 was merged with and into AerSale Aviation, with AerSale Aviation surviving the merger as a wholly-owned indirect subsidiary of the Company (the “Second Merger”). In connection with the closing of the Business Combination (the “Closing”), AerSale Aviation changed its name from “AerSale Corp.” to “AerSale Aviation, Inc.” and the Company changed its name from “Monocle Holdings Inc.” to “AerSale Corporation.” Immediately following the Merger, the Company contributed all of its ownership in Monocle to AerSale Aviation which continued as a wholly owned subsidiary of the Company.

The Company’s corporate headquarters are based in Miami, Florida, with additional offices, hangars, and warehouses globally.

Description of the Business

The Company is a worldwide provider of aftermarket commercial aircraft and engines (“Flight Equipment”) and their parts to airlines, leasing companies, manufacturers of original equipment, government and defense contractors, and repair and overhaul service providers. We focus on mid-life assets and monetize them through our Asset Management Solutions segment. Asset Management Solutions activities include monetization of the assets through leasing or sale of whole asset components, or through teardown activities in support of our Used Serviceable Material (“USM”) activities. Our monetizing services have been developed to maximize returns on mid-life commercial aircraft and engines (“Flight Equipment”) throughout their operating life, in conjunction with realizing the highest residual value of Flight Equipment at their retirement. We do this by utilizing our deep market and technical knowledge in management of Flight Equipment sales, leasing and Maintenance, Repair, and Overhaul (“MRO”) activities. Beyond providing asset management services on our own Flight Equipment, we additionally provide asset management services to third-party clients complementing their infrastructure to optimize their Flight Equipment investments. While our offering to customers includes leasing of mid-life Flight Equipment, this service is offered in the context of a broader strategy to extract the maximum value from those assets. Frequently, we will offer a lease of an asset for the time period before its next scheduled overhaul (“green time”) on a short term or “spot” lease, with the intent of disassembling the asset at the conclusion of the lease. In turn, the vast majority of assets that we acquire are ultimately disassembled into parts once the remaining green time has been utilized.

Through its TechOps segment, the Company also operates six Federal Aviation Administration (“FAA”) Title 14 Code of Federal Regulations Part 145 Certified Repair Facilities (the MROs) located in Goodyear, Arizona, Millington, Tennessee, Roswell and Albuquerque, New Mexico, as well as two facilities in Miami, Florida. These facilities provide the Company flexibility and control to quickly prepare Company aircraft, engines, and inventory for market, as their selective refurbishment is frequently required to meet customers’ unique demand. In addition to maintaining the Company’s fleet of aircraft, the MROs provide external customer support for maintaining their aircraft with general maintenance, preservation, lease return work, repair services, and long-term storage programs. Leveraging its robust engineering team, TechOps also provide highly specialized technical support to our MRO facilities, as well as developing advanced technical repairs, modifications and products marketed as Engineered Solutions. This business unit includes the design, manufacture, and installation of new products, systems, and services that can enhance aircraft performance, safety, and service life.

INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2023

INTANGIBLE ASSETS

INTANGIBLE ASSETS

NOTE F -INTANGIBLE ASSETS

In accordance with ASC 350, “Intangibles—Goodwill and Other”, goodwill and other intangible assets deemed to have indefinite lives are not amortized, but are subject to annual impairment tests. The Company reviews and evaluates its goodwill and indefinite life intangible assets for potential impairment at a minimum annually or more frequently if circumstances indicate that impairment is possible.

The Company determined the fair value of assets acquired and liabilities assumed using a variety of methods. An income approach based on discounted cash flows was used to determine the values of our trademarks, customer relationships and FAA certifications. The assumptions we used to estimate the fair value of our reporting units are based on historical performance, as well as forecasts used in our current business plan and require considerable management judgment.

The Company’s goodwill and intangible assets as defined by ASC 350 are related to its acquired subsidiaries, AerSale Component Solutions (d/b/a AerSale Landing Gear Solutions) (“ALGS”), Avborne Component Solutions (d/b/a AerSale Component Solutions) (“ACS”), and Aircraft Composite Technologies (“ACT” or “AerSale AeroStructures - Miami”), which are included in the TechOps segment, as well as Qwest Air Parts (“Qwest”), which is included under the Asset Management Solutions segment.

Goodwill and other intangibles consisted of the following (in thousands):


	December 31, 2023		December 31, 2022
Qwest:
FAA Certifications	$	724	$	724
Goodwill		13,416		13,416
ALGS:
FAA Certifications		710		710
Goodwill		379		379
ACS:
Trademarks		600		600
FAA Certifications		7,300		7,300
Goodwill		63		63
ACT:
Trademarks		200		200
FAA Certificates		796		796
Goodwill		6,002		6,002
Total intangible assets with indefinite lives	$	30,190	$	30,190

The Company performed its annual quantitative impairment analysis as of July 1, 2023 and 2022 on the indefinite lived intangible assets and concluded there were no impairments. The Company performed a quantitative impairment analysis as of October 1, 2023 and a qualitative impairment analysis as of October 1, 2022 on the goodwill for the Asset Management Solutions and TechOps segment, and concluded there was no impairment.

Intangible assets with definite useful lives are amortized on a straight-line basis over their estimated useful lives. Intangible assets with definite lives are as follows (in thousands):


	Useful Life
	In Years	December 31, 2023		December 31, 2022
Qwest:
Customer relationships	10	$	5,163	$	6,136
ALGS:
Customer relationships	10		30		50
ACS:
Customer relationships	10		1,033		1,243
ACT:
Customer relationships	10		5,430		6,353
Total intangible assets with definite lives		$	11,656	$	13,782

Amortization expense was as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Amortization expense	$	2,126	$	2,136	$	2,132

The estimated aggregate amount of amortization expense for intangible assets in each fiscal year from 2024 through 2028 is $2.1 million. Accumulated amortization amounted to $9.3 and $7.2 million as of December 31, 2023 and December 31, 2022, respectively.

There has been no goodwill activity for the years ended December 31, 2023 and 2022.

Other intangible assets are reviewed at least annually or more frequently if any event or change in circumstance indicates that an impairment may have occurred. No triggering events have been identified for the periods reported.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2023

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation and Basis of Presentation

Emerging Growth Company

Cash and Cash Equivalents

Foreign Currency

Accounts Receivable


	2023		2022
Balance at beginning of year	$	1,074	$	1,692
Provision		-		(395)
Write-offs		(96)		(223)
Balance at end of year	$	978	$	1,074

Inventory

Expenditures required for the repair of engine and airframe parts are capitalized as inventory and are expensed as cost of products when associated parts are sold.

Flight Equipment Held for Lease

Property and Equipment

Investments

Goodwill

Other Intangible Assets

Impairment of Long-Lived Assets

Obligations and Instruments Potentially Settled in the Company's Common Stock

Obligations and Instruments Potentially Settled in the Company’s Common Stock

Revenue Recognition

Products Revenue — Used Serviceable Material (“USM”) Sales

Products Revenue — Whole Asset Sales

Leasing Revenue

Services Revenue

Maintenance and Repair Costs

Any amounts of maintenance reserve payments remaining at the end of a lease contract are recognized as lease revenue or applied against outstanding accounts receivable at lease termination.

Share Based Compensation

Sales Taxes

Earnings Per Share

Income Taxes

The Company records interest and penalties related to unrecognized tax benefits in the income tax provision.

New Accounting Pronouncements Adopted

New Accounting Pronouncements Not Yet Adopted

There have been no other accounting pronouncements issued but not yet adopted by us which are expected to have a material impact on our consolidated financial statements.

CARES Act

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Net Income (Loss)	$ (5,563)	$ 43,861	$ 36,115
Less: change in FV of warrants	(2,270)	525	2,945
Income (loss) attributable to common shareholders for EPS, Diluted	(7,833)	43,861	36,115
Income (loss) attributable to common shareholders for EPS, Basic	$ (7,833)	$ 43,861	$ 36,115
Weighted-average number of shares outstanding - basic	51,291,424	51,568,436	43,193,995
Additional shares from assumed exercise of warrants	166,397	141	3,070,762
Additional shares from assumed stock-settled restricted stock units		1,577,062,000	1,040,883,000
Additional shares issued under the Employee Stock Purchase Plan			4,460,000
Weighted-average number of shares outstanding - diluted	51,457,821	53,145,639	47,310,100
Earnings per share-basic
Earnings per share - basic:	$ (0.11)	$ 0.85	$ 0.84
Earnings per share-diluted
Earnings per share - diluted:	$ (0.15)	$ 0.83	$ 0.76
Shares/units excluded from earnings per share - dilutive:
Additional shares from assumed exercise of Private Warrants		212,540,000
RSU member
Shares/units excluded from earnings per share - dilutive:
Anti-dilutive excluded from (loss) earnings per share	192,687

FINANCING ARRANGEMENTS - Amortization expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
FINANCING ARRANGEMENTS
Amortization expense	$ 400	$ 455	$ 494

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - New Accounting Pronouncements Not Yet Adopted (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Jan. 01, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets	$ 27,519	$ 31,624
Operating lease liabilities	$ 28,970	$ 32,709
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets			$ 13,200
Operating lease liabilities			$ 13,400

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
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-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481925/310-20-65-2

Reference 92: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480424/946-10-50-3

+ Details

REVENUE (Tables)

12 Months Ended

Dec. 31, 2023

REVENUE.

Schedule of contract assets

The contract assets are as follows (in thousands):


	December 31, 2023		December 31, 2022		Change
Contract assets	$	6,474	$	7,277	$	(803)

Schedule of revenue by segment, as well as total revenue

The Company reports revenue by segment. The following tables present revenue by segment, as well as a reconciliation to total revenue (in thousands):


	Year Ended December 31,
	2023
	Asset Management
	Solutions		TechOps		Total Revenues
USM	$	63,418	$	15,278	$	78,696
Whole asset sales		137,236		218		137,454
Engineered solutions		-		1,305		1,305
Total products		200,654		16,801		217,455
Leasing		14,513		-		14,513
Services		-		102,535		102,535
Total revenues	$	215,167	$	119,336	$	334,503


	Year Ended December 31,
	2022
	Asset Management
	Solutions		TechOps		Total Revenues
USM	$	50,125	$	8,146	$	58,271
Whole asset sales		198,750		23,737		222,487
Engineered solutions		-		3,796		3,796
Total products		248,875		35,679		284,554
Leasing		28,732		-		28,732
Services		-		95,258		95,258
Total revenues	$	277,607	$	130,937	$	408,544


	Year Ended December 31,
	2021
	Asset Management
	Solutions		TechOps		Total Revenues
USM	$	44,409	$	4,884	$	49,293
Whole asset sales		156,944		-		156,944
Engineered solutions		-		3,644		3,644
Total products		201,353		8,528		209,881
Leasing		30,657		-		30,657
Services		-		99,899		99,899
Total revenues	$	232,010	$	108,427	$	340,437

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2023

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE N - EARNINGS PER SHARE

The computation of basic and diluted earnings per share (“EPS”) is based on the weighted average number of common shares outstanding during each period.

The following table provides a reconciliation of the computation for basic and diluted earnings per share for the years ended December 31, (in thousands, except share and per share data):


	2023		2022		2021
Net (loss) income	$	(5,563)	$	43,861	$	36,115
Less: change in FV of warrants		(2,270)		-		-
Income (loss) attributable to common shareholders for EPS	$	(7,833)	$	43,861	$	36,115

Weighted-average number of shares outstanding - basic		51,291,424		51,568,436		43,193,995
Additional shares from assumed exercise of warrants		166,397		141		3,070,762
Additional shares from assumed stock-settled restricted stock units		-		1,577,062		1,040,883
Additional shares issued under the Employee Stock Purchase Plan		-		-		4,460
Weighted-average number of shares outstanding - diluted		51,457,821		53,145,639		47,310,100

Earnings per share - basic:	$	(0.11)	$	0.85	$	0.84
Earnings per share - diluted:	$	(0.15)	$	0.83	$	0.76

Shares/units excluded from earnings per share - dilutive:
Additional shares from assumed exercise of Private Warrants		-		212,540		-
Additional shares from assumed stock-settled restricted stock units		192,687		-		-

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cares Act (Details) - Paycheck Protection Program, Cares Act - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2021	Apr. 16, 2021	Mar. 04, 2021
Short term debt
Debt instrument, face amount	$ 16.4	$ 14.7	$ 5.5	$ 5.5
Proceeds from short term debt	$ 12.7

REVENUE (Details) - USD ($) $ in Thousands	12 Months Ended
REVENUE (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
ASC impact, balance sheet
Contract assets	$ 6,474	$ 7,277
Increase (decrease) customer asset	(803)
Deferred revenue	$ 2,998	1,355
Contract liabilities for services to be performed		$ 1,100

INVENTORY (Tables)

12 Months Ended

Dec. 31, 2023

INVENTORY

Schedule of inventory

Inventory consisted of the following (in thousands):


	December 31, 2023		December 31, 2022
Used serviceable materials	$	120,053	$	73,827
Work-in-process		22,270		16,659
Whole assets		186,845		93,044
	$	329,168		183,530
Less short term		(177,770)		(117,488)
Long term	$	151,398	$	66,042

LEASES (Tables)

12 Months Ended

Dec. 31, 2023

LEASES

Schedule of lease expense

The components of lease expense for the years ended December 31, 2023 and 2022 were as follows (in thousands):


	Year Ended December 31,
	2023		2022
Operating lease cost		7,001		5,005
Short-term lease cost		392		170
Variable lease cost		397		1,071
	$	7,790	$	6,246


	2023	2022
Remaining lease term (years)	7.13	7.80
Discount Rate	6.34%	6.40%

Supplemental cash flow information related to leases were as follows (in thousands):

Schedule of expense charged to operations under the operating lease agreements

Expense charged to operations under the operating lease agreements for prior years were as follows (in thousands):



	2021
Rent expense	$	6,040

Summary of future minimum lease payments under non-cancelable operating leases

Our operating leases expire at various dates through 2032. Maturities of our operating lease payments as of December 31, 2023 are as follows (in thousands):


	Operating
	Leases
Year ending December 31:
2024	$	6,272
2025		5,429
2026		5,102
2027		4,154
2028		3,931
Thereafter		11,516
Total undiscounted payments		36,404
Less: imputed interest		(7,434)
Present value of minimum lease payments		28,970
Less: Operating lease liabilities - current		(4,593)
Operating lease liabilities - non-current	$	24,377

Maturities of our operating lease payments as of December 31, 2022, are as follows (in thousands):


	Operating
	Leases
Year ending December 31:
2023	$	6,341
2024		5,965
2025		5,153
2026		4,970
2027		4,154
Thereafter		15,447
Total undiscounted payments		42,030
Less: imputed interest		(9,321)
Present value of minimum lease payments		32,709
Less: Operating lease liabilities - current		(4,426)
Operating lease liabilities - non-current	$	28,283

INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2023

INTANGIBLE ASSETS

Schedule of intangible assets with indefinite lives

Goodwill and other intangibles consisted of the following (in thousands):


	December 31, 2023		December 31, 2022
Qwest:
FAA Certifications	$	724	$	724
Goodwill		13,416		13,416
ALGS:
FAA Certifications		710		710
Goodwill		379		379
ACS:
Trademarks		600		600
FAA Certifications		7,300		7,300
Goodwill		63		63
ACT:
Trademarks		200		200
FAA Certificates		796		796
Goodwill		6,002		6,002
Total intangible assets with indefinite lives	$	30,190	$	30,190

Schedule of intangible assets with definite lives

Intangible assets with definite useful lives are amortized on a straight-line basis over their estimated useful lives. Intangible assets with definite lives are as follows (in thousands):


	Useful Life
	In Years	December 31, 2023		December 31, 2022
Qwest:
Customer relationships	10	$	5,163	$	6,136
ALGS:
Customer relationships	10		30		50
ACS:
Customer relationships	10		1,033		1,243
ACT:
Customer relationships	10		5,430		6,353
Total intangible assets with definite lives		$	11,656	$	13,782

Schedule of amortization expense on finite lived intangible assets

Amortization expense was as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Amortization expense	$	2,126	$	2,136	$	2,132

SIGNIFICANT RISKS AND UNCERTAINTIES (Details) - Customer concentration	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenue \| Customer Two
Concentration risk
Concentration risk (in percent)	25.00%
Revenue \| Customer One
Concentration risk
Concentration risk (in percent)		19.00%	14.00%
Trade receivable \| Customer One
Concentration risk
Concentration risk (in percent)	20.00%

BUSINESS SEGMENTS (Tables)

12 Months Ended

Dec. 31, 2023

BUSINESS SEGMENTS

Summary of selected financial information for each segment

Selected financial information for each segment is as follows (in thousands):


	Year ended December 31,
	2023		2022		2021
Revenue
Asset Management Solutions
Aircraft	$	80,877	$	101,511	$	87,461
Engine		134,290		176,096		144,549
		215,167		277,607		232,010
TechOps
MRO services		102,535		95,258		99,899
Product sales		16,583		11,942		8,528
Whole asset sales		218		23,737		—
		119,336		130,937		108,427
Total	$	334,503	$	408,544	$	340,437

	Year Ended December 31,
	2023		2022		2021
Gross profit
Asset Management Solutions
Aircraft	$	22,739	$	36,156	$	30,157
Engine		44,916		82,075		59,389
		67,655		118,231		89,546
TechOps
MRO services		20,428		21,111		28,133
Product sales		3,761		4,397		1,713
Whole asset sales		577		7,655		—
		24,766		33,163		29,846
Total	$	92,421	$	151,394	$	119,392


	2023		2022
Total Assets
Asset Management Solutions	$	372,326	$	233,034
TechOps		163,883		141,406
Corporate		17,729		157,139
	$	553,938	$	531,579


	2023		2022		2021

Total Depreciation and Amortization Expense
Asset Management Solutions	$	6,043	$	7,807	$	10,163
TechOps		3,549		2,609		2,506
Corporate		867		568		329
	$	10,459	$	10,984	$	12,998
Total Capital Expenditures
Asset Management Solutions	$	488	$	8,288	$	2,383
TechOps		9,206		6,078		1,224
Corporate		1,665		1,229		284
	$	11,359	$	15,595	$	3,891

Summary of reconciliation segment gross profit to income before income tax provision

The following table reconciles segment gross profit to net income from continuing operations for the years ended December 31, (in thousands):


	Year Ended December 31,
	2023		2022		2021
Segment gross profit	$	92,421	$	151,394	$	119,392
Selling, general and administrative expenses		(103,191)		(96,348)		(77,498)
Payroll support program proceeds		-		-		14,768
Interest (expense) income, net		155		1,093		(980)
Other income, net		666		2,268		458
Unrealized loss on investment		-		-		(5,421)
Change in fair value of warrant liability		2,270		(525)		(2,945)
(Loss) income before income tax provision	$	(7,679)	$	57,882	$	47,774

Summary of revenues and long-lived assets based on the customers' geographic location


Revenues	2023		2022		2021
Domestic	$	145,076	$	169,878	$	133,911
Foreign		189,427		238,666		206,526
Total revenues	$	334,503	$	408,544	$	340,437


Long-lived assets	2023		2022
Domestic	$	96,013	$	87,898
Foreign		-		-
Total long-lived assets	$	96,013	$	87,898

Summary of intersegment revenues

All intersegment transactions have been eliminated upon consolidation. Intersegment revenue is as follows (in thousands):


	Year ended December 31,
	2023		2022		2021
Asset Management Solutions	$	1,599	$	4,978	$	6,822
TechOps		21,359		22,783		21,932
Total intersegment revenues	$	22,958	$	27,761	$	28,754

FINANCING ARRANGEMENTS - Equipment Loan (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Debt Instrument [Line Items]
Total payments	$ 7,281
Equipment Loan \| Synovus
Debt Instrument [Line Items]
2024	1,278
2025	2,727
2026	2,971
2027	1,583
Total payments	$ 8,559

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

STOCKHOLDERS' EQUITY - Restricted Stock Unit Activity (Details) - 2020 Plan - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Amount (in Shares)
Beginning balance	1,374,383	1,669,300
Granted	390,887	278,473
Forfeited	(40,516)	(15,080)
Vested	(1,192,355)	(558,310)
Ending balance	532,399	1,374,383	1,669,300
Weighted Average Grant Date Fair Value
Beginning Balance	$ 10.72	$ 10.10
Granted	14.96	14.80
Forfeited	14.87	13.69
Vested	11.14	10.80
Ending Balance	$ 14.82	$ 10.72	$ 10.10
Weighted Average Contractual Life (Years)
Outstanding	1 year 10 months 2 days	2 years 10 months 17 days	2 years 7 days