0001558370-25-002624 | 10-K | XBRL Viewer

Year ended December 31,

Inventory reserves

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FINANCING ARRANGEMENTS - Revolving credit facility (Details) - USD ($)			12 Months Ended
	Nov. 22, 2024	Jun. 30, 2023	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Jul. 25, 2023	Jul. 20, 2018
Financing arrangements
Deferred financing costs, net			$ 1,296,000	$ 1,506,000
Interest expense			4,849,000	733,000	$ 2,000
Outstanding balance			41,049,000	37,559,000
Letters of credit \| Wells Fargo
Financing arrangements
Maximum borrowing capacity							$ 10,000,000
Revolving Credit Agreement \| Wells Fargo
Financing arrangements
Debt instrument, face amount			180,000,000	$ 180,000,000		$ 180,000,000
Aggregate amount of revolver commitments							$ 110,000,000
Maximum borrowing capacity, expandable amount						$ 200,000,000
Available borrowing capacity			$ 138,100,000
Spread on variable rate (in %)			2.75%
Interest rate			7.52%	7.69%
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]			us-gaap:SecuredOvernightFinancingRateSofrMember
Outstanding balance			$ 39,235,000	$ 29,000,000
Equipment Loan \| Synovus
Financing arrangements
Debt instrument, face amount			10,000,000	$ 10,000,000
Spread on variable rate (in %)		3.50%
Interest rate				8.84%
Interest expense			200,000	$ 400,000
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]		us-gaap:SecuredOvernightFinancingRateSofrMember
Effective Interest Rate (in %)		7.96%
Maximum borrowing capacity		$ 10,000,000
Outstanding balance			0	8,559,000
Equipment Loan \| CIBC
Financing arrangements
Debt instrument, face amount			10,000,000	$ 10,000,000
Spread on variable rate (in %)	3.00%
Interest expense			$ 0
Debt instrument, term	36 months
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]	us-gaap:SecuredOvernightFinancingRateSofrMember
Effective Interest Rate (in %)			7.37%
Maximum borrowing capacity	$ 10,000,000
Outstanding balance			$ 1,814,000

DESCRIPTION OF THE BUSINESS (Details)	Dec. 31, 2024 facility
DESCRIPTION OF THE BUSINESS
Number of FAA Certified Repair Facilities (MRO's)	6

BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2024

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,
	2024		2023		2022
Nondiscretionary contributions	$	1,564	$	1,495	$	1,250

INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2024

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, 2024		December 31, 2023
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

In the first quarter of 2024, the Company identified a triggering event indicating the fair value of one or more of the Company’s reporting units more likely than not did not exceed their carrying values. The triggering event was due to the significant decline in the market price of the Company’s common stock. As a result and due to the lack of recovery of the Company’s stock price during the year ended December 31, 2024, the Company performed a quantitative goodwill

impairment test for the Asset Management Solutions and ACT reporting units for each of the quarters ended March 31, 2024, June 30, 2024, September 30, 2024, and December 31, 2024, and determined that the fair values exceeded the carrying values for each reporting unit of as the end of each quarter tested. As such, the quantitative tests did not result in a goodwill impairment for the Company’s reporting units. In addition, the Company performed a qualitative assessment as of July 1, 2024 of other intangible assets with indefinite lives and concluded it was unlikely that they were impaired.

The Company performed a quantitative impairment analysis as of October 1, 2023 on the goodwill for the Asset Management Solutions and TechOps segment, and concluded there was no impairment. The Company performed a qualitative impairment analysis as of July 1, 2024, and a quantitative impairment analysis as of July 1, 2023 on the intangible assets with indefinite lives and concluded there were no impairments, respectively.

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


	Useful Life
	In Years	December 31, 2024		December 31, 2023
Qwest:
Customer relationships	10	$	4,187	$	5,163
ALGS:
Customer relationships	10		10		30
ACS:
Customer relationships	10		823		1,033
ACT:
Customer relationships	10		4,505		5,430
AerSale:
AerAware Flight manuals	10		675		-
Total intangible assets with definite lives, net		$	10,200	$	11,656

Amortization expense was as follows (in thousands):


	Year ended December 31,
	2024		2023		2022
Amortization expense	$	2,131	$	2,126	$	2,136

The estimated aggregate amount of amortization expense for intangible assets as follows (in thousands):


Year ending December 31:
2025	$	2,189
2026		2,179
2027		2,179
2028		2,162
2029		1,155
Thereafter		336
Total Estimated Aggregate Amortization Expense	$	10,200

Accumulated amortization amounted to $11.5 million and $9.3 million as of December 31, 2024 and December 31, 2023, respectively.

There has been no goodwill activity for the years ended December 31, 2024 and 2023.

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.

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Consolidated Balance Sheets
Allowance for credit losses	$ 1,173	$ 978
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	53,252,563	52,954,430
Common Stock, Shares, Outstanding	53,252,563	52,954,430

DESCRIPTION OF THE BUSINESS

12 Months Ended

Dec. 31, 2024

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” or “we”), 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 is based in Doral, Florida, with additional offices, hangars, and warehouses located 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 provides highly specialized technical support to our MRO facilities, as well as developing advanced technical repairs, modifications and products marketed as Engineered Solutions. Engineered Solutions includes the design, manufacture, and installation of new products, systems, and services that can enhance aircraft performance, safety, and service life.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2024

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of Allowance for doubtful accounts

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


	Year ended December 31,
	2024		2023
Balance at beginning of year	$	978	$	1,074
Provision		195		-
Write-offs		-		(96)
Balance at end of year	$	1,173	$	978

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):

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
EARNINGS PER SHARE
Net income (loss)	$ 5,851	$ (5,563)	$ 43,861
Less: change in FV of warrants	(2,301)	(2,270)	525
Income (loss) attributable to common shareholders for EPS, Basic	5,851	(7,833)	43,861
Income (loss) attributable to common shareholders for EPS, Diluted	$ 5,851	$ (7,833)	$ 43,861
Weighted-average number of shares outstanding - basic	53,113,508	51,291,424	51,568,436
Additional shares from assumed exercise of warrants		166,397	141
Additional shares from assumed stock-settled restricted stock units	245,577		1,577,062
Additional shares from assumed exercise of warrants			212,540
Weighted-average number of shares outstanding - diluted	53,359,085	51,457,821	53,145,639
Earnings (loss) per share - basic:
Earnings (loss) per share - basic:	$ 0.11	$ (0.11)	$ 0.85
Earnings (loss) per share - diluted:
Earnings (loss) per share - diluted:	$ 0.11	$ (0.15)	$ 0.83
Anti-dilutive shares/units excluded from earnings per share - diluted:
Additional shares from assumed stock-settled restricted stock units		192,687

INCOME TAXES

12 Months Ended

Dec. 31, 2024

INCOME TAXES

INCOME TAXES

NOTE M - INCOME TAXES

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


	Current		Deferred		Total
Year ended December 31, 2024:
U.S. federal	$	(410)	$	1,456	$	1,046
U.S. state		360		562		922
Foreign		4		14		18
Total income tax (benefit) expense	$	(46)	$	2,032	$	1,986


	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 expense (benefit)	$	(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

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, 2024, 2023 and 2022 due to the following (in thousands):


	Year ended December 31,
	2024		2023		2022
Provision for income tax at the federal statutory rate	$	1,646	$	(1,613)	$	12,155
State taxes		846		165		1,959
Permanent differences		(332)		(328)		218
Change in valuation allowance		-		(1,313)		17
Executive compensation		-		3,016		2,562
Return to provision		(91)		151		591
FDII deduction		-		-		(3,014)
R&D credit		(538)		(1,174)		-
Stock-based compensation		467		(1,020)		-
Other		(12)		-		(467)
Total income tax (benefit) expense	$	1,986	$	(2,116)	$	14,021

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, 2024 and 2023 are as follows (in thousands):


	Year ended December 31,
	2024		2023
Deferred tax assets:
Net operating losses	$	2,986	$	2,005
Foreign tax credit carryforwards		768		1,109
Inventory basis differences		8,544		9,269
Maintenance deposit payments		10		-
Deferred revenue		420		726
Allowance for doubtful accounts		276		237
Start up costs		566		634
Stock-based compensation		1,003		966
Business interest expense - 163(j) limitation		1,343		-
Accrued expenses		11		22
Section 174 capitalization		4,472		2,971
Lease obligations		8,010		7,010
R&D credit		1,055		434
Other		162		445
Total deferred tax assets		29,626		25,828
Deferred tax liabilities:
Fixed assets		(11,081)		(6,489)
Right-of-use assets		(7,582)		(6,659)
Intangible assets		(792)		(477)
Total deferred tax liabilities		(19,455)		(13,625)
Deferred income taxes, net	$	10,171	$	12,203

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. After considering all of the evidence, both positive and negative, it was determined more likely than not that the Company's net deferred tax asset in the U.S. jurisdiction will be realizable as of December 31, 2024.

At December 31, 2024 and December 31, 2023, the Company had net operating losses available for carry-forward for Federal income tax purposes of approximately $13.8 million and $7.8 million, respectively. These net operating loss carryforwards acquired prior to 2024 will expire on various dates through 2034. Utilization of the net operating loss carryforwards as of December 31, 2024 are subject to annual limitations 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 2020 through 2023 are open for examination by the U.S. Internal Revenue Service and tax years beginning in 2019 through 2023 are open for examination by various state taxing jurisdictions in which the Company is subject to tax. Tax years beginning in 2019 through 2023 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, 2024 and 2023, there was no reserve for uncertain tax positions.

- Definition

The entire disclosure for income tax.

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+ Details

INTANGIBLE ASSETS - Assets with definite lives (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Intangible assets
Total intangible assets with definite lives	$ 10,200	$ 11,656
AerAware Flight manuals
Intangible assets
Useful life (in years)	10 years
Total intangible assets with definite lives	$ 675
Asset Management Solutions \| Qwest \| Customer relationships
Intangible assets
Useful life (in years)	10 years
Total intangible assets with definite lives	$ 4,187	5,163
TechOps \| ALGS \| Customer relationships
Intangible assets
Useful life (in years)	10 years
Total intangible assets with definite lives	$ 10	30
TechOps \| ACS \| Customer relationships
Intangible assets
Useful life (in years)	10 years
Total intangible assets with definite lives	$ 823	1,033
TechOps \| ACT \| Customer relationships
Intangible assets
Useful life (in years)	10 years
Total intangible assets with definite lives	$ 4,505	$ 5,430

BUSINESS SEGMENTS - Geographic (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 345,066	$ 334,503	$ 408,544
Total long-lived assets	144,568	96,013
Domestic
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	215,198	145,076	169,878
Total long-lived assets	130,086	96,013
Foreign
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	129,868	$ 189,427	$ 238,666
Total long-lived assets	$ 14,482

- 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.

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-Subparagraph (a)
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 280
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-4

+ Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2024

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.

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 revenue, 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):


	Year ended December 31,
	2024		2023
Balance at beginning of year	$	978	$	1,074
Provision		195		-
Write-offs		-		(96)
Balance at end of year	$	1,173	$	978

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 Statements of Operations.

Inventory

Inventory, which consists of complete Flight Equipment held for sale, as well as related parts, is valued at the Lower of Cost or Net Realizable Value (“NRV”) 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 Flight Equipment to disassemble and supply its engine and airframe parts inventory. For aircraft and engine parts that originate from such dismantled Flight Equipment, 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. Our allocation of inventory between short term and long term reflects the inventory’s operating cycle, which is longer than one year due to teardown and repair lead times. Inventory expected to be monetized within 18 months as well as work-in-process and inventory used in MROs are reported under current assets on the Consolidated Balance Sheets. 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 net realizable value at the time of the review. The Company recorded additional inventory reserves due to this NRV 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 assets - 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 current useful life is 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 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 1 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.

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.

In the first quarter of 2024, the Company identified a triggering event that may indicate the fair value of one or more of the Company’s reporting units more likely than not did not exceed their carrying values. The triggering event was due to the significant decline in the market price of the Company’s common stock. As a result and due to the lack of recovery of the Company’s stock price during the year ended December 31, 2024, the Company performed a quantitative goodwill impairment test for the Asset Management Solutions and ACT reporting units for each of the quarters ended March 31, 2024, June 30, 2024, September 30, 2024, and December 31, 2024, and determined that the fair values exceeded the carrying values for each reporting unit of as the end of each quarter tested. As such, the quantitative tests did not result in a goodwill impairment for the Company’s reporting units.

The Company performed a quantitative impairment analysis as of October 1, 2023 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, concluding that the fair value of each reporting unit exceeded its carrying value, and thus no impairment was recorded.

Other Intangible Assets

Intangibles arising from business combinations, including customer relationships, FAA certificates, and AerAware flight manuals, 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 qualitative impairment analysis as of July 1, 2024, and a quantitative impairment analysis as of July 1, 2023 on the indefinite lived intangible assets and concluded there were no impairments, respectively.

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

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, 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 (“ASC 815”). ASC 815 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

Revenue from sales of USM is 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

Revenue from whole asset sales is 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 and would cause the revenue recognition. 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 existing maintenance deposit payments and other 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

Revenue for services 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 costs, 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, 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 revenue on our consolidated statements of operations is 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 (“ASC 718”). 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. Our policy is to recognize forfeitures as they occur.

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 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 earnings (loss) per share is computed by dividing net earnings (loss) attributable to the Company’s common stockholders by the weighted average number of common shares outstanding during the periods. Diluted earnings (loss) 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.

Deferred insurance proceeds

In April 2024, one of the Company’s leased secondary parts warehouses in Roswell, New Mexico, was destroyed by a fire. Inside the warehouse were various aircraft parts typically sold by the Company as USM. The Company carries insurance covering these parts, with a limit of $100 million and a $10,000 deductible. The Company filed a claim for the replacement value of the inventory that was destroyed or rendered not sellable by the fire in the amount of $67.6 million. The cost basis of the destroyed inventory was $6.0 million. During the year ended December 31, 2024, the Company collected interim funding from the insurance companies associated with this claim in the amount of $30.9 million and collected $3.7 million subsequent to the balance sheet date. The Company has deferred the recognition of a gain on insurance proceeds collected under this claim in excess of the loss amount until a full settlement of the claim is reached with our insurers. The deferred gain in the amount of $24.9 million as of December 31, 2024 is presented under deferred insurance proceeds in the Consolidated Balance Sheets.

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.

Revision of Prior Period Financial Statements

Certain balances in the Consolidated Balance Sheet as of December 31, 2023 and the Consolidated Statements of Cash Flows for the years ended December 31, 2023 and 2022 have been reclassified to conform to the presentation in the consolidated financial statements as of and for the year ended December 31, 2024, primarily including the reclassification of deposits for Flight Equipment purchases from deposits, prepaid expenses, and other current assets to advance vendor payments. Such reclassification did not impact net income (loss), stockholders’ equity or total cash flows from operating activities, and did not have a material impact on the consolidated financial statements.

New Accounting Pronouncements Adopted

In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). The amendments in ASU 2023-07 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 amendments in ASU 2023-07 were adopted by the Company as of January 1, 2024 and retrospectively applied. Refer to Note P – Business Segments, for disclosures resulting from the adoption of ASU 2023-07. The Company’s results of operations, cash flows, and financial condition were not impacted by the adoption of this ASU.

New Accounting Pronouncements Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. This guidance is required to be adopted by us in the first quarter of 2025. We are currently evaluating the impact of this guidance on our consolidated financial statements and disclosure.

In November 2024, the FASB issued ASU 2024-03, Reporting Comprehensive Income—Expense Disaggregation Disclosures, which requires public entities to disclose, in a tabular presentation, the following expense items (1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, (5) depreciation, depletion, and amortization recognized as part of oil- and gas-producing activities or other types of depletion expenses, as well as other types of expenses when applicable. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements and disclosure.

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.

STOCKHOLDERS' EQUITY - Stock options activity (Details)	12 Months Ended
STOCKHOLDERS' EQUITY - Stock options activity (Details)	Dec. 31, 2024 $ / shares shares
Shares
Granted \| shares	646,301
Ending balance \| shares	646,301
Weighted average Exercise price per share
Granted \| $ / shares	$ 7.02
Ending balance \| $ / shares	$ 7.02
Weighted Average Remaining Contractual Life (Years)
Outstanding December 31	9 years 5 months 8 days
Granted	9 years 5 months 8 days

STOCKHOLDERS' EQUITY - 2020 Plan and ESPP (Details) - USD ($) $ in Millions		12 Months Ended
	Dec. 22, 2023	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
STOCKHOLDERS' EQUITY
Shares remain available for future issuance		317,596
2020 Plan
STOCKHOLDERS' EQUITY
Common stock issuable (in shares)		6,200,000
Common stock remain available for future grants		1,294,229
2021 PSUs
STOCKHOLDERS' EQUITY
Vesting in the period (in shares)		726,109
Vesting percentage (in %)		200.00%
Remaining vested provisions		654,168
Share-based compensation expense			$ 7.9	$ 14.2
2021 PSUs \| Minimum
STOCKHOLDERS' EQUITY
Vesting percentage (in %)		50.00%
Remaining vested term		1 year
2021 PSUs \| Maximum
STOCKHOLDERS' EQUITY
Vesting percentage (in %)		200.00%
Remaining vested term		3 years
2020 Employee Stock Purchase Plan
STOCKHOLDERS' EQUITY
Common stock issuable (in shares)		500,000
Shares issued (in shares)		89,923	45,755
2020 Employee Stock Purchase Plan \| 2021 PSUs \| Maximum level of 200% Vesting on December 22, 2023
STOCKHOLDERS' EQUITY
Vesting in the period (in shares)	1,063,333
Vesting percentage (in %)	200.00%
Restricted Stock Units ("RSUs") vested and settled (in share)	526,888

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Balance at beginning of year	$ 978	$ 1,074
Provision	195		$ (395)
Write-offs		(96)
Balance at end of year	$ 1,173	$ 978	$ 1,074

INCOME TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Current
U.S. federal	$ (410)	$ (1,570)	$ 10,537
U.S. state	360	128	3,015
Foreign	4	242	2,856
Total income tax (benefit) expense, Current	(46)	(1,200)	16,408
Deferred
U.S. federal	1,456	(806)	(862)
U.S. state	562	(110)	(405)
Foreign	14		(1,120)
Total income tax (benefit) expense, Deferred	2,032	(916)	(2,387)
Total
U.S. federal	1,046	(2,376)	9,675
U.S. state	922	18	2,610
Foreign	18	242	1,736
Total income tax (benefit) expense	$ 1,986	$ (2,116)	$ 14,021

AIRCRAFT AND ENGINES HELD FOR LEASE AND LEASE, NET - Future payments received (Details) $ in Thousands	Dec. 31, 2024 USD ($)
AIRCRAFT AND ENGINES HELD FOR LEASE AND LEASE, NET
2025	$ 23,277
2026	14,136
2027	6,973
2028	2,341
2029	2,335
Thereafter	2,200
Total minimum lease payments	$ 51,262

INVENTORY (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
INVENTORY
USM	$ 118,025	$ 58,857
Whole assets	141,770	186,845
Work-in-process	27,358	22,270
MRO and engineered solutions	68,637	61,196
Inventory net	355,790	329,168
Less short term	(224,832)	(177,770)
Long term	$ 130,958	$ 151,398

PROPERTY AND EQUIPMENT, NET - Depreciation expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
PROPERTY AND EQUIPMENT, NET
Depreciation expense	$ 5,501	$ 3,736	$ 2,242

REVENUE

12 Months Ended

Dec. 31, 2024

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.

Contract assets are as follows (in thousands):


	December 31, 2024		December 31, 2023		Change
Contract assets	$	6,166	$	6,474	$	(308)

Contract assets are reported within deposits, prepaid expenses, and other current assets on our Consolidated Balance Sheets. Changes in contract assets primarily result from the timing difference between the performance of services. Contract liabilities are reported as deferred revenue on our Consolidated Balance Sheets and amounted to $3.0 million as of December 31, 2023, of which $2.7 million was related to contract liabilities for services to be performed. For the year ended December 31, 2024, the Company recognized as revenue the entire opening balance of our contract liabilities included in the deferred revenue beginning balance for services performed as the timing between customer payments and our performance of the services is 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,
	2024
	Asset Management
	Solutions		TechOps		Total Revenue
USM	$	83,174	$	16,454	$	99,628
Whole asset sales		110,147		-		110,147
Engineered solutions		-		5,175		5,175
Total products		193,321		21,629		214,950
Leasing		22,146		-		22,146
Services		-		107,970		107,970
Total revenue	$	215,467	$	129,599	$	345,066


	Year ended December 31,
	2023
	Asset Management
	Solutions		TechOps		Total Revenue
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 revenue	$	215,167	$	119,336	$	334,503


	Year ended December 31,
	2022
	Asset Management
	Solutions		TechOps		Total Revenue
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 revenue	$	277,607	$	130,937	$	408,544

- 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
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-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
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-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
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-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

ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
ACCRUED EXPENSES
Accrued compensation and related benefits	$ 3,457	$ 2,241
Accrued legal fees	741	854
Commission fee accrual	758	260
Accrued federal, state and local taxes and fees	120	105
Other	2,324	2,018
Total accrued expenses	$ 7,400	$ 5,478

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2024

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 as follows:


	Year ended December 31,
	2024		2023		2022
Net income (loss)	$	5,851	$	(5,563)	$	43,861
Less: change in FV of warrants		-		(2,270)		-
Income (loss) attributable to common stockholders for EPS	$	5,851	$	(7,833)	$	43,861

Weighted-average number of shares outstanding - basic		53,113,508		51,291,424		51,568,436
Additional shares from assumed exercise of warrants		-		166,397		141
Additional shares from assumed stock-settled restricted stock units		245,577		-		1,577,062
Weighted-average number of shares outstanding - diluted		53,359,085		51,457,821		53,145,639

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

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

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Cash flows from operating activities:
Net income (loss)	$ 5,851	$ (5,563)	$ 43,861
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Depreciation and amortization	16,048	10,459	10,984
Amortization of debt issuance costs	337	400	455
Amortization of operating lease assets	365	359	873
Inventory reserve	3,695	1,507	2,376
Impairment of aircraft held for lease			857
Provision for doubtful accounts	195		(395)
Deferred income taxes	2,032	(916)	(2,387)
Change in fair value of warrant liability	(2,301)	(2,270)	525
Share-based compensation	4,347	12,051	16,498
Gain on legal settlement			(1,695)
Changes in operating assets and liabilities:
Accounts receivable	(3,601)	(2,966)	(1,029)
Income tax receivable	(366)	(1,628)
Inventory	(78,029)	(168,632)	(37,637)
Deposits, prepaid expenses, and other current assets	1,450	(1,772)	5,211
Other assets	(745)	103	893
Advance vendor payments	28,954	(5,884)	(15,586)
Accounts payable	4,287	8,768	1,164
Income tax payable			(3,443)
Accrued expenses	1,832	(3,537)	417
Deferred revenue	(1,217)	1,643	(1,505)
Lessee and customer purchase deposits	3,152	(15,668)	(18,027)
Deferred insurance proceeds	24,910
Other liabilities	(12)	(604)	(2,523)
Net cash provided by (used in) operating activities	11,184	(174,150)	(113)
Cash flows from investing activities:
Proceeds from sale of assets	12,900	14,450	52,771
Proceeds from legal settlement, net			4,195
Acquisition of aircraft and engines held for lease, including capitalized cost	(14,978)		(7,133)
Purchase of property and equipment	(14,052)	(11,359)	(8,462)
Net cash (used in) provided by investing activities	(16,130)	3,091	41,371
Cash flows from financing activities:
Proceeds from long-term debt	2,429	8,559
Repayments of long-term debt	(9,174)
Proceeds from revolving credit facility	192,644	82,700
Repayments of revolving credit facility	(182,409)	(53,700)
Payments of debt issuance costs	(126)	(1,362)
Purchase of treasury stock			(22,204)
Taxes paid related to net share settlement of equity awards	(124)	(7,019)	(2,592)
Proceeds from the issuance of Employee Stock Purchase Plan shares	531	566	538
Net cash provided by (used in) financing activities	3,771	29,744	(24,258)
(Decrease) increase in cash and cash equivalents	(1,175)	(141,315)	17,000
Cash and cash equivalents, beginning of period	5,873	147,188	130,188
Cash and cash equivalents, end of period	4,698	5,873	147,188
Supplemental disclosure of cash activities
Income tax (refunds) payments, net	(13)	1,159	21,489
Interest paid	5,648	1,520	573
Supplemental disclosure of noncash investing activities
Reclassification of aircraft and aircraft engines inventory to (from) aircraft and engine held for lease, net	$ 43,210	$ 7,036	(25,803)
Reclassification of customer purchase deposits to sale of assets			$ 12,500

BUSINESS SEGMENTS (Details)	12 Months Ended
BUSINESS SEGMENTS (Details)	Dec. 31, 2024 segment
BUSINESS SEGMENTS
Number of business segments	2
Number of reportable segments	2

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2024

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 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 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.

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, 2021	$ 5	$ 313,901	$ 94,973		$ 408,879
Balance at beginning (in shares) at Dec. 31, 2021	51,673,099
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation		16,498			16,498
Shares issued upon exercise of warrants (in shares)	47,867
Shares issued under the 2020 Employee Stock Purchase Plan		538			538
Shares issued under the 2020 Employee Stock Purchase Plan (in shares)	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 income (loss)			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
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 income (loss)			(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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation		4,347			4,347
Shares issued under the 2020 Employee Stock Purchase Plan		531			531
Shares issued under the 2020 Employee Stock Purchase Plan (in shares)	89,923
Shares issued under the 2020 Equity Incentive Plan (in shares)	208,210
Shares surrendered for tax withholdings on equity awards		(124)			(124)
Net income (loss)			5,851		5,851
Balance at ending at Dec. 31, 2024	$ 5	$ 316,493	$ 139,122		$ 455,620
Balance at ending (in shares) at Dec. 31, 2024	53,252,563

ACCRUED EXPENSES

12 Months Ended

Dec. 31, 2024

ACCRUED EXPENSES

ACCRUED EXPENSES

NOTE J - ACCRUED EXPENSES

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


	December 31, 2024		December 31, 2023
Accrued compensation and related benefits	$	3,457	$	2,241
Accrued legal fees		741		854
Commission fee accrual		758		260
Accrued federal, state and local taxes and fees		120		105
Other		2,324		2,018
	$	7,400	$	5,478

INTANGIBLE ASSETS - Amortization expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
INTANGIBLE ASSETS
Amortization expense	$ 2,131	$ 2,126	$ 2,136
Estimated aggregate amount of amortization expense for intangible assets
2025	2,189
2026	2,179
2027	2,179
2028	2,162
2029	1,155
Thereafter	336
Total Estimated Aggregate Amortization Expense	10,200	11,656
Accumulated amortization	11,500	9,300
Increase in goodwill	$ 0	$ 0

WARRANT LIABILITY (Details) - $ / shares	12 Months Ended
WARRANT LIABILITY (Details) - $ / shares	Dec. 31, 2022	Dec. 31, 2024	Dec. 31, 2023
Warrant Liability
Number of warrants outstanding (in shares)		623,834	623,834
Private Placement
Warrant Liability
Number of shares of common stock called by each warrant (in shares)		1
Exercise price of warrants (in $ per share)	$ 11.5	$ 11.5
Cashless exercise of warrants	126,166
Common stock issued based on fair value	47,867
Share price	$ 18.5306

BUSINESS SEGMENTS (Tables)

12 Months Ended

Dec. 31, 2024

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,
	2024		2023		2022
Revenue
Asset Management Solutions
Aircraft	$	41,749	$	80,877	$	101,511
Engine		173,718		134,290		176,096
		215,467		215,167		277,607
TechOps
MRO services		107,970		102,535		95,258
Product sales		21,629		16,583		11,942
Whole asset sales		-		218		23,737
		129,599		119,336		130,937
Total	$	345,066	$	334,503	$	408,544


	Year ended December 31,
	2024		2023		2022
Cost of sales and operating expenses
Asset Management Solutions
Aircraft	$	27,223	$	58,138	$	65,355
Engine		105,803		89,374		94,021
		133,026		147,512		159,376
TechOps
MRO services		91,510		82,107		74,147
Product sales		16,594		12,822		7,545
Whole asset sales		-		(359)		16,082
		108,104		94,570		97,774
Total	$	241,130	$	242,082	$	257,150


	Year ended December 31,
	2024		2023		2022
Gross profit
Asset Management Solutions
Aircraft	$	14,526	$	22,739	$	36,156
Engine		67,915		44,916		82,075
		82,441		67,655		118,231
TechOps
MRO services		16,460		20,428		21,111
Product sales		5,035		3,761		4,397
Whole asset sales		-		577		7,655
		21,495		24,766		33,163
Total	$	103,936	$	92,421	$	151,394


	Year ended December 31,
	2024		2023
Total Assets
Asset Management Solutions	$	383,336	$	372,326
TechOps		205,655		163,883
Corporate		15,732		17,729
	$	604,723	$	553,938


	Year ended December 31,
	2024		2023		2022

Total Depreciation and Amortization Expense
Asset Management Solutions	$	9,909	$	6,043	$	7,807
TechOps		5,042		3,549		2,609
Corporate		1,097		867		568
	$	16,048	$	10,459	$	10,984
Total Capital Expenditures
Asset Management Solutions	$	15,350	$	488	$	8,288
TechOps		11,755		9,206		6,078
Corporate		1,925		1,665		1,229
	$	29,030	$	11,359	$	15,595

Summary of reconciliation segment gross profit to income (loss) before income tax provision


	Year ended December 31,
	2024						2023						2022
	Asset Management Solutions			TechOps		Total	Asset Management Solutions			TechOps		Total	Asset Management Solutions			TechOps		Total
Gross Profit	$	82,441	$	21,495	$	103,936	$	67,655	$	24,766		92,421	$	118,231	$	33,163	$	151,394
Operating expenses		(11,870)		(10,933)		(22,803)		(15,588)		(11,341)		(26,929)		(12,480)		(9,694)		(22,174)
Selling, general and administrative expenses		(15,567)		(18,884)		(34,451)		(15,362)		(16,956)		(32,318)		(16,619)		(20,018)		(36,637)
Segment income (loss) from operations		55,004		(8,322)		46,682		36,705		(3,531)		33,174		89,132		3,451		92,583
Other corporate expenses⁽¹⁾						(36,938)						(43,944)						(37,537)
Income (loss) from operations						9,744						(10,770)						55,046
Other (expenses) income:
Interest (expense) income, net						(5,703)						155						1,093
Other income, net						1,495						666						2,268
Change in fair value of warrant liability						2,301						2,270						(525)
Income (loss) before income tax provision					$	7,837					$	(7,679)					$	57,882

(1)

Other corporate expenses include other unapplied payroll expenses and benefits, telecommunications and IT support, professional fees, office rent, and depreciation, among others.

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

The following table presents revenue 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):


	Year ended December 31,
Revenue	2024		2023		2022
Domestic	$	215,198	$	145,076	$	169,878
Foreign		129,868		189,427		238,666
Total revenue	$	345,066	$	334,503	$	408,544


	Year ended December 31,
Long-lived assets	2024		2023
Domestic	$	130,086	$	96,013
Foreign		14,482		-
Total long-lived assets	$	144,568	$	96,013

Summary of intersegment revenues

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


	Year ended December 31,
	2024		2023		2022
Asset Management Solutions	$	828	$	1,599	$	4,978
TechOps		11,921		21,359		22,783
Total intersegment revenue	$	12,749	$	22,958	$	27,761

FINANCING ARRANGEMENTS - Outstanding debt obligations (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Jul. 25, 2023
Financing arrangements
Total	$ 41,049	$ 37,559
Less current portion	(605)	(1,278)
Total long-term portion	40,444	36,281
Wells Fargo \| Revolving Credit Agreement
Financing arrangements
Total	39,235	29,000
Debt instrument, face amount	180,000	180,000	$ 180,000
CIBC \| Equipment Loan
Financing arrangements
Total	1,814
Debt instrument, face amount	10,000	10,000
Synovus \| Equipment Loan
Financing arrangements
Total	0	8,559
Debt instrument, face amount	$ 10,000	$ 10,000

LEASES (Tables)

12 Months Ended

Dec. 31, 2024

LEASES

Schedule of lease expense

The components of lease expense for the years ended December 31, 2024, 2023 and 2022 were as follows (in thousands):


	Year ended December 31,
	2024		2023		2022
Operating lease cost	$	6,763	$	7,001	$	5,005
Short-term lease cost		1,139		392		170
Variable lease cost		869		397		1,071
	$	8,771	$	7,790	$	6,246


	2024	2023
Remaining lease term (years)	7.80	7.13
Discount Rate	6.83%	6.34%

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

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

Our operating leases expire at various dates through 2035. Maturities of our operating lease payments as of December 31, 2024 are as follows (in thousands):


	Operating
	Leases
Year ending December 31:
2025	$	6,557
2026		6,247
2027		5,544
2028		5,354
2029		4,407
Thereafter		17,577
Total undiscounted payments		45,686
Less: imputed interest		(10,765)
Present value of minimum lease payments		34,921
Less: Operating lease liabilities - current		(4,356)
Operating lease liabilities - non-current	$	30,565

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2024	Mar. 06, 2025	Jun. 28, 2024
Document and Entity Information [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2024
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	9850 NW 41st Street
Entity Address, Address Line Two	Suite 400
Entity Address, City or Town	Doral
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33178
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	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 240
Entity Common Stock, Shares Outstanding		53,278,368
Documents Incorporated by Reference [Text Block]	Portions of the registrant’s definitive Proxy Statement for the registrant’s 2025 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission within 120 days of the end of the registrant’s fiscal year ended December 31, 2024 are incorporated by reference into Part III of this Annual Report on Form 10-K
Entity Central Index Key	0001754170
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	FY
Amendment Flag	false
Auditor Name	GRANT THORNTON LLP
Auditor Firm ID	248
Auditor Location	Miami, Florida

LEASES

12 Months Ended

Dec. 31, 2024

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 right-of-use (“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, 2024, 2023 and 2022 were as follows (in thousands):


	Year ended December 31,
	2024		2023		2022
Operating lease cost	$	6,763	$	7,001	$	5,005
Short-term lease cost		1,139		392		170
Variable lease cost		869		397		1,071
	$	8,771	$	7,790	$	6,246

Our operating leases expire at various dates through 2035. Maturities of our operating lease payments as of December 31, 2024 are as follows (in thousands):


	Operating
	Leases
Year ending December 31:
2025	$	6,557
2026		6,247
2027		5,544
2028		5,354
2029		4,407
Thereafter		17,577
Total undiscounted payments		45,686
Less: imputed interest		(10,765)
Present value of minimum lease payments		34,921
Less: Operating lease liabilities - current		(4,356)
Operating lease liabilities - non-current	$	30,565

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


	2024	2023
Remaining lease term (years)	7.80	7.13
Discount Rate	6.83%	6.34%

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

FINANCING ARRANGEMENTS (Tables)

12 Months Ended

Dec. 31, 2024

FINANCING ARRANGEMENTS

Schedule of outstanding debt obligations

Outstanding debt obligations as of December 31, 2024 and 2023 consisted of the following (in thousands):


	December 31,		December 31,
	2024		2023
$180.0 million Wells Fargo Senior Secured Revolving Credit Agreement	$	39,235	$	29,000
$10.0 million CIBC Property and Equipment Revolving Term Loan		1,814		-
$10.0 million Synovus Property and Equipment Revolving Term Loan		-		8,559
Total		41,049		37,559
Less current portion		(605)		(1,278)
Total long-term portion	$	40,444	$	36,281

Schedule of amortization expense

Amortization expense was as follows (in thousands):


	Year ended December 31,
	2024		2023		2022
Amortization expense	$	337	$	400	$	455

Schedule of interest expense

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


	Year ended December 31,
	2024		2023		2022
Interest expense	$	4,849	$	733	$	2

Schedule of payments on the equipment loan

Maturities of the Equipment Loan as of December 31, 2024 are as follows (in thousands):


Year ending December 31:
2025	$	605
2026		605
2027		604
Total payments	$	1,814

- 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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(22))
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-Topic 210
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69B

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69E

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
-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 5: http://www.xbrl.org/2009/role/commonPracticeRef
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-SubTopic 30
-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482925/835-30-45-2

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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-Paragraph 3
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-URI https://asc.fasb.org/1943274/2147481112/505-10-50-3

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI https://asc.fasb.org/1943274/2147481112/505-10-50-7

+ Details

PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment
Property and equipment, gross	$ 67,931	$ 54,719
Less accumulated depreciation	(31,600)	(27,027)
Property and equipment, net	36,331	27,692
Tooling and equipment
Property, Plant and Equipment
Property and equipment, gross	17,481	16,024
Furniture and other equipment
Property, Plant and Equipment
Property and equipment, gross	13,985	12,076
Computer software
Property, Plant and Equipment
Property and equipment, gross	2,555	2,374
Leasehold improvements
Property, Plant and Equipment
Property and equipment, gross	25,527	16,269
Equipment under capital lease
Property, Plant and Equipment
Property and equipment, gross		192
Flight equipment held for R&D
Property, Plant and Equipment
Property and equipment, gross	$ 8,383	$ 7,784
Useful life (in years)	1 year
Minimum
Property, Plant and Equipment
Useful life (in years)	1 year
Minimum \| Tooling and equipment
Property, Plant and Equipment
Useful life (in years)	5 years
Minimum \| Furniture and other equipment
Property, Plant and Equipment
Useful life (in years)	3 years
Minimum \| Computer software
Property, Plant and Equipment
Useful life (in years)	3 years
Minimum \| Leasehold improvements
Property, Plant and Equipment
Useful life (in years)	2 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 \| Furniture and other equipment
Property, Plant and Equipment
Useful life (in years)	15 years
Maximum \| Computer software
Property, Plant and Equipment
Useful life (in years)	5 years
Maximum \| Leasehold improvements
Property, Plant and Equipment
Useful life (in years)	15 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Useful lives, impairment and reclassification (Details) - USD ($) $ in Thousands				12 Months Ended
	Jul. 01, 2024	Oct. 01, 2023	Jul. 01, 2023	Dec. 31, 2023	Dec. 31, 2024
Property, Plant and Equipment
Impairment of goodwill		$ 0		$ 0
Impairment of indefinite lived intangible	$ 0		$ 0
Customer relationships
Property, Plant and Equipment
Amortization term (in years)					10 years
Aircraft
Property, Plant and Equipment
Useful life (in years)					7 years
Minimum
Property, Plant and Equipment
Useful life (in years)					1 year
Maximum
Property, Plant and Equipment
Useful life (in years)					15 years

Insider Trading Policies and Procedures	12 Months Ended
Insider Trading Policies and Procedures	Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]
Insider Trading Policies and Procedures Adopted	true

PROPERTY AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2024

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, 2024		December 31, 2023
Tooling and equipment	5 – 15	$	17,481	$	16,024
Furniture and other equipment	3 – 15		13,985		12,076
Computer software	3 – 5		2,555		2,374
Leasehold improvements	2 – 15		25,527		16,269
Equipment under capital lease	-		-		192
Flight equipment held for R&D	1		8,383		7,784
			67,931		54,719
Less accumulated depreciation			(31,600)		(27,027)
		$	36,331	$	27,692

Schedule of depreciation expense on property, plant and equipment

Depreciation expense was as follows (in thousands):


	Year ended December 31,
	2024		2023		2022
Depreciation expense	$	5,501	$	3,736	$	2,242

BUSINESS SEGMENTS - Additional information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2024 USD ($) customer	Dec. 31, 2023 USD ($) customer	Dec. 31, 2022 USD ($) customer
Revenue, Major Customer [Line Items]
Revenue from contract with customer	$ 345,066	$ 334,503	$ 408,544
Customer concentration \| Revenue
Revenue, Major Customer [Line Items]
Number of customers \| customer	1	2
Customer concentration \| Revenue \| Customer One
Revenue, Major Customer [Line Items]
Number of customers \| customer	1		1
Concentration risk (in percent)	15.00%		19.00%
Revenue from contract with customer	$ 50,900
Customer concentration \| Revenue \| Customer One \| TechOps
Revenue, Major Customer [Line Items]
Revenue from contract with customer	33,500
Customer concentration \| Revenue \| Customer One \| Asset Management Solutions
Revenue, Major Customer [Line Items]
Revenue from contract with customer	$ 17,400
Customer concentration \| Revenue \| Customer Two
Revenue, Major Customer [Line Items]
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 \| Revenue \| Minimum \| Customer One
Revenue, Major Customer [Line Items]
Concentration risk (in percent)	10.00%	10.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2024

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE B -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation and Basis of Presentation

Cash and Cash Equivalents

Foreign Currency

Accounts Receivable


	Year ended December 31,
	2024		2023
Balance at beginning of year	$	978	$	1,074
Provision		195		-
Write-offs		-		(96)
Balance at end of year	$	1,173	$	978

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.

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

Property and Equipment

Goodwill

Other Intangible Assets

Impairment of Long-Lived Assets

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

exercised or converted into common stock and is calculated using the treasury stock method for stock options and unvested shares.

Deferred insurance proceeds

Income Taxes

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

Revision of Prior Period Financial Statements

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.

BUSINESS SEGMENTS - Depreciation and Amortization Expense and Capital expenditures (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
BUSINESS SEGMENTS
Total Depreciation and Amortization Expense	$ 16,048	$ 10,459	$ 10,984
Total Capital Expenditures	29,030	11,359	15,595
Asset Management Solutions
BUSINESS SEGMENTS
Total Depreciation and Amortization Expense	9,909	6,043	7,807
Total Capital Expenditures	15,350	488	8,288
TechOps
BUSINESS SEGMENTS
Total Depreciation and Amortization Expense	5,042	3,549	2,609
Total Capital Expenditures	11,755	9,206	6,078
Corporate
BUSINESS SEGMENTS
Total Depreciation and Amortization Expense	1,097	867	568
Total Capital Expenditures	$ 1,925	$ 1,665	$ 1,229

INVENTORY (Tables)

12 Months Ended

Dec. 31, 2024

INVENTORY

Schedule of inventory

Inventory consisted of the following (in thousands):


	December 31, 2024		December 31, 2023
USM	$	118,025	$	58,857
Whole assets		141,770		186,845
Work-in-process		27,358		22,270
MRO and engineered solutions		68,637		61,196
	$	355,790		329,168
Less short term		(224,832)		(177,770)
Long term	$	130,958	$	151,398

WARRANT LIABILITY

12 Months Ended

Dec. 31, 2024

WARRANT LIABILITY

WARRANT LIABILITY

NOTE K - WARRANT LIABILITY

As of December 31, 2024 and 2023, warrants to purchase a total of 623,834 shares of the Company’s common stock were outstanding (the “Private Warrants”).

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 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 815. 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 was determined using the Black-Scholes option pricing model. 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, 2024 and 2023:


	December 31, 2024	December 31, 2023
Risk-free interest rate	4.38%	3.84%
Expected volatility of common stock	41.71%	41.66%
Expected option term in years	1.0	2.0

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.

FINANCING ARRANGEMENTS

12 Months Ended

Dec. 31, 2024

FINANCING ARRANGEMENTS

FINANCING ARRANGEMENTS

NOTE L - FINANCING ARRANGEMENTS

Outstanding debt obligations as of December 31, 2024 and 2023 consisted of the following (in thousands):


	December 31,		December 31,
	2024		2023
$180.0 million Wells Fargo Senior Secured Revolving Credit Agreement	$	39,235	$	29,000
$10.0 million CIBC Property and Equipment Revolving Term Loan		1,814		-
$10.0 million Synovus Property and Equipment Revolving Term Loan		-		8,559
Total		41,049		37,559
Less current portion		(605)		(1,278)
Total long-term portion	$	40,444	$	36,281

At December 31, 2024 and 2023, total deferred financing costs were $1.3 million and $1.5 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,
	2024		2023		2022
Amortization expense	$	337	$	400	$	455

$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 initially provided for a $110.0 million aggregate amount of revolver commitments subject to borrowing base. The Revolving Credit Agreement included a $10.0 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, 2024, the Company had $138.1 million of availability, subject to borrowing base limitations.

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 applicable interest rate as of December 31, 2024 and 2023, was 7.52% and 7.69%, respectively.

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


	Year ended December 31,
	2024		2023		2022
Interest expense	$	4,849	$	733	$	2

The Company’s ability to borrow on the Revolving Credit Agreement is subject to ongoing compliance by the Company with various customary affirmative and negative covenants. The Revolving Credit Agreement requires the Company to meet certain financial and nonfinancial covenants. The Company was in compliance with these covenants as of December 31, 2024 and 2023.

$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 (“Synovus Equipment Loan”) with a total advance commitment of $10.0 million for the purpose of financing capital expenditures on property and equipment. This facility became a term loan during quarter ended June 30, 2024, with a maturity date of June 30, 2027. This loan is collateralized by the property and equipment it finances and requires principal and interest payments. The Synovus Equipment Loan bears interest at a rate per annum equal to 7.96%. As of December 31, 2024, there was no outstanding balance on the Synovus Equipment Loan.

The Synovus Equipment Loan bore interest at a rate per annum equal to one-month SOFR plus 3.50%, which was adjusted monthly. The effective rate on this facility was 8.84% as of December 31, 2023. Interest expense on the Equipment Loan was $0.2 million for the year ended December 31, 2024, compared to $0.4 million for the year ended December 31, 2023.

The Synovus 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.

$10.0 million CIBC Property and Equipment Revolving Term Loan

On November 22, 2024, the Company entered into a property and equipment revolving term loan (the “CIBC Equipment Loan”) with a total advance commitment of $10.0 million for the purpose of financing capital expenditures on property and equipment. Advances made by the lender are convertible into term loans at the option of the lender at a rate of SOFR plus 3.0% and have a maturity date of thirty-six (36) months from the term loan conversion date. Advances under this loan are collateralized by the property and equipment it finances and require interest only payment until converted to a term loan, at which point, principal and interest payments are required. As of December 31, 2024, borrowings under this facility were converted to a term loan maturing on December 23, 2027.

The effective rate on this facility as of December 31, 2024 was 7.37%. For the year ended December 31, 2024, there was no interest expense on the CIBC Equipment Loan. Maturities of the Equipment Loan as of December 31, 2024 are as follows (in thousands):


Year ending December 31:
2025	$	605
2026		605
2027		604
Total payments	$	1,814

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, 2024.

- 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 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (a)(1)
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-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
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-Section 50
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-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 8: 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 9: 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 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI https://asc.fasb.org/470/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Section 45
-Paragraph 2
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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-Subparagraph (g)
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-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Subparagraph (a)
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-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I

+ Details

INCOME TAXES - Deferred Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Deferred tax assets:
Net operating losses	$ 2,986	$ 2,005
Foreign tax credit carryforwards	768	1,109
Inventory basis differences	8,544	9,269
Maintenance deposit payments	10
Deferred revenue	420	726
Allowance for doubtful accounts	276	237
Start up costs	566	634
Stock-based compensation	1,003	966
Business interest expense - 163(j) limitation	1,343
Accrued expenses	11	22
Section 174 capitalization	4,472	2,971
Lease obligations	8,010	7,010
R&D credit	1,055	434
Other	162	445
Total deferred tax assets	29,626	25,828
Deferred tax liabilities:
Fixed assets	(11,081)	(6,489)
Right-of-use assets	(7,582)	(6,659)
Intangible assets	(792)	(477)
Total deferred tax liabilities	(19,455)	(13,625)
Deferred income taxes, net	$ 10,171	$ 12,203

FINANCING ARRANGEMENTS - Equipment Loan (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Maturities of equipment loan
Total payments	$ 1,209	$ 7,281
Equipment Loan \| CIBC
Maturities of equipment loan
2025	605
2026	605
2027	604
Total payments	$ 1,814

- Definition

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

+ References + Details

INCOME TAXES - Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
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	$ 1,646	$ (1,613)	$ 12,155
State taxes	846	165	1,959
Permanent differences	(332)	(328)	218
Change in valuation allowance		(1,313)	17
Executive compensation		3,016	2,562
Return to provision	(91)	151	591
FDII deduction			(3,014)
R&D credit	(538)	(1,174)
Stock-based compensation	467	(1,020)
Other	(12)		(467)
Total income tax (benefit) expense	$ 1,986	$ (2,116)	$ 14,021

STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2024

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 53,252,563 and 52,954,430 shares were issued and outstanding as of December 31, 2024 and 2023, respectively.

Effective November 8, 2022, the Board of Directors approved to 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.

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, it 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 1,294,229 shares of common stock remain available for future grants.

Restricted stock unit activity under the 2020 Plan for the year ended December 31, 2024 and 2023 was as follows:



		Weighted Average
	Amount	Grant Date Fair Value
Outstanding at December 31, 2023	532,399	$	14.82
Granted	1,148,201		7.07
Forfeited	(78,986)		14.66
Vested	(221,337)		14.90
Outstanding December 31, 2024	1,380,277	$	8.38



		Weighted Average
	Amount	Grant Date Fair Value
Outstanding at December 31, 2022	1,374,383	$	10.72
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)

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.

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 vesting restricted share awards granted with future performance conditions is evaluated at each reporting period and compensation expense is adjusted based on the probability assessment.

As of December 31, 2024, the Company’s restricted stock units include 726,109 performance-based awards that have vesting provisions subject to both time vesting and the achievement of certain performance milestones ranging from 50% to 200% vesting targets, while the remaining 654,168 awards vest over a period ranging from one to three years.

For the year ended December 31, 2024, the Company did not recognize share-based compensation expense for the performance-based awards given that the achievement of the performance milestones have been deemed not probable for accounting purposes. 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 was deemed probable for accounting purposes.

Stock Options

Stock options granted under the 2020 Plan have exercise terms of 10 years and vest in equal installments of one-third of the total number of options granted on each of the first three anniversaries from the grant date beginning one year after the date of grant, and are assigned an exercise price equal to the closing stock price on the day prior to the date of grant. Options are expensed on a straight-line basis over the grant vesting period, which is considered to be the requisite service period. In order for the options to vest, the employee must be in the continuous employment of the Company since the date of the grant. Except for qualifying retirement after the nine-month anniversary of the grant date, any portion of the grant that has not vested will be forfeited upon termination of employment

Under the 2020 Plan, the fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. When determining expected volatility, the Company considers the historical volatility of the Company’s stock price, or benchmark companies when the option exercise period exceeds period for which stock data is available for the Company. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant, based on the options’ expected term. The assumptions used in the Black-Scholes option-pricing model for options granted in 2024 are as follows:


	Grant Date	Grant Date
	June 7, 2024	July 1, 2024
Risk-free interest rate	4.42%	4.44%
Expected volatility of common stock	50.04%	50.03%
Dividend yield	-	-
Expected option term in years	6.0	6.0
Grant-date fair value (per share)	$ 3.73	$ 3.46

Stock option activity under the 2020 Plan for the year ended December 31, 2024 was as follows:


	Amount	Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value⁽¹⁾
Outstanding at December 31, 2023	-	$	-	-	-
Granted	646,301		7.02	9.44	-
Forfeited	-		-	-	-
Vested	-		-	-	-
Outstanding December 31, 2024	646,301	$	7.02	9.44

Exercisable	-	$	-	-	-

(1)

Total shares valued at the market price of the underlying stock as of December 31, 2024 less the exercise price.

As of December 31, 2024, the unrecognized compensation costs related to these awards was $1.6 million. The Company expects to recognize those costs over a weighted average period of 1.6 years. The total grant date fair value of stock options awarded during the year ended December 31, 2024 was $2.4 million.

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, 2024 and 2023, the Company issued 89,923 and 45,755 shares, respectively, pursuant to the ESPP and 317,596 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/1943274/2147477968/946-235-50-2

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/1943274/2147477968/946-235-50-2

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/1943274/2147478448/946-505-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

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

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

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
-Section 50
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-16

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
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-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
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-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

+ Details

AIRCRAFT AND ENGINES HELD FOR LEASE AND LEASE, NET

12 Months Ended

Dec. 31, 2024

AIRCRAFT AND ENGINES HELD FOR LEASE AND LEASE, NET

AIRCRAFT AND ENGINES HELD FOR LEASE AND LEASE, NET

NOTE H - AIRCRAFT AND ENGINES HELD FOR LEASE AND LEASE, NET

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


	December 31, 2024		December 31, 2023
Aircraft and engines held for lease	$	96,910	$	58,136
Less accumulated depreciation		(29,063)		(31,661)
	$	67,847	$	26,475

The Company did not record an impairment of leased assets during the years ended December 31, 2024 and 2023, 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,
	2024		2023		2022
Depreciation expense	$	8,416	$	4,597	$	6,606

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


	Year ended December 31,
	2024		2023		2022
Contingent rental fees	$	11,717	$	7,693	$	12,776

The Company’s current operating lease agreements for Flight Equipment on lease expire over the next month to six years. The minimum future lease rentals contracted to be received under these existing operating leases of Flight Equipment at December 31, 2024 are as follows (in thousands):


Year ending December 31:
2025	$	23,277
2026		14,136
2027		6,973
2028		2,341
2029		2,335
Thereafter		2,200
Total minimum lease payments	$	51,262

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 - Selected financial information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
BUSINESS SEGMENTS
Revenue	$ 345,066	$ 334,503	$ 408,544
Cost of revenue	241,130	242,082	257,150
Gross profit	103,936	92,421	151,394
Total assets	604,723	553,938
Products
BUSINESS SEGMENTS
Cost of revenue	141,152	155,376	176,074
Services
BUSINESS SEGMENTS
Cost of revenue	91,510	82,107	74,147
Asset Management Solutions
BUSINESS SEGMENTS
Revenue	215,467	215,167	277,607
Cost of revenue	133,026	147,512	159,376
Gross profit	82,441	67,655	118,231
Total assets	383,336	372,326
Asset Management Solutions \| Aircraft
BUSINESS SEGMENTS
Revenue	41,749	80,877	101,511
Cost of revenue	27,223	58,138	65,355
Gross profit	67,915	44,916	82,075
Asset Management Solutions \| Engine
BUSINESS SEGMENTS
Revenue	173,718	134,290	176,096
Cost of revenue	105,803	89,374	94,021
Gross profit	14,526	22,739	36,156
TechOps
BUSINESS SEGMENTS
Revenue	129,599	119,336	130,937
Cost of revenue	108,104	94,570	97,774
Gross profit	21,495	24,766	33,163
Total assets	205,655	163,883
TechOps \| Products
BUSINESS SEGMENTS
Revenue	21,629	16,583	11,942
Cost of revenue	16,594	12,822	7,545
Gross profit	5,035	3,761	4,397
TechOps \| Whole asset sales
BUSINESS SEGMENTS
Revenue		218	23,737
Cost of revenue		(359)	16,082
Gross profit		577	7,655
TechOps \| MRO services
BUSINESS SEGMENTS
Revenue	107,970	102,535	95,258
Cost of revenue	91,510	82,107	74,147
Gross profit	16,460	20,428	$ 21,111
Corporate
BUSINESS SEGMENTS
Total assets	$ 15,732	$ 17,729

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Gain on insurance claims (Details)				1 Months Ended	12 Months Ended
	Mar. 06, 2025 USD ($)	Nov. 30, 2022 USD ($)	Jun. 09, 2014 USD ($)	Apr. 30, 2024 USD ($) warehouse	Dec. 31, 2024 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Subsequent Event [Line Items]
Number of properties damaged by fire \| warehouse				1
Insurance covering limit				$ 100,000,000
Insurance covering deductible				10,000
Replacement value of the inventory destroyed				67,600,000
Cost of the destroyed inventory				$ 6,000,000
Insurance proceeds net of expenses					$ 30,900,000
Deferred insurance proceeds					$ 24,910,000
Inventory impairment			$ 2,500,000
Estimated residual value			$ 1,100,000
Insurance receivable							$ 2,500,000
Other income						$ 1,695,000
Terrorist Attack
Subsequent Event [Line Items]
Insurance proceeds net of expenses		$ 4,200,000
Other income		$ 1,700,000
Gain on Business Interruption Insurance Recovery, Statement of Income or Comprehensive Income [Extensible Enumeration]		Other Nonoperating Income (Expense)
Subsequent Event
Subsequent Event [Line Items]
Insurance proceeds net of expenses	$ 3,700,000

STOCKHOLDERS' EQUITY - Stock Options (Details) $ in Millions	12 Months Ended
	Dec. 31, 2024 USD ($)
STOCKHOLDERS' EQUITY
Unrecognized compensation costs	$ 1.6
Weighted average period (in years)	1 year 7 months 6 days
Fair value of stock options	$ 2.4
2020 Plan
STOCKHOLDERS' EQUITY
Exercise terms (in years)	10 years
Vesting percentage (in %)	33.33%

- 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 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480483/718-10-35-1D

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480483/718-10-35-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(1)
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+ Details

REVENUE - Disaggregation (Details) - USD ($) $ in Thousands	12 Months Ended
REVENUE - Disaggregation (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Revenue disaggregation
Total revenue	$ 345,066	$ 334,503	$ 408,544
Total products
Revenue disaggregation
Total revenue	214,950	217,455	284,554
Leasing
Revenue disaggregation
Total revenue	22,146	14,513	28,732
Services
Revenue disaggregation
Total revenue	107,970	102,535	95,258
Operating segments
Revenue disaggregation
Total revenue	345,066	334,503	408,544
Operating segments \| Total products
Revenue disaggregation
Total revenue	214,950	217,455	284,554
Operating segments \| USM
Revenue disaggregation
Total revenue	99,628	78,696	58,271
Operating segments \| Whole asset sales
Revenue disaggregation
Total revenue	110,147	137,454	222,487
Operating segments \| Engineered solutions
Revenue disaggregation
Total revenue	5,175	1,305	3,796
Operating segments \| Leasing
Revenue disaggregation
Total revenue	22,146	14,513	28,732
Operating segments \| Services
Revenue disaggregation
Total revenue	107,970	102,535	95,258
Asset Management Solutions \| Operating segments
Revenue disaggregation
Total revenue	215,467	215,167	277,607
Asset Management Solutions \| Operating segments \| Total products
Revenue disaggregation
Total revenue	193,321	200,654	248,875
Asset Management Solutions \| Operating segments \| USM
Revenue disaggregation
Total revenue	83,174	63,418	50,125
Asset Management Solutions \| Operating segments \| Whole asset sales
Revenue disaggregation
Total revenue	110,147	137,236	198,750
Asset Management Solutions \| Operating segments \| Leasing
Revenue disaggregation
Total revenue	22,146	14,513	28,732
TechOps \| Operating segments
Revenue disaggregation
Total revenue	129,599	119,336	130,937
TechOps \| Operating segments \| Total products
Revenue disaggregation
Total revenue	21,629	16,801	35,679
TechOps \| Operating segments \| USM
Revenue disaggregation
Total revenue	16,454	15,278	8,146
TechOps \| Operating segments \| Whole asset sales
Revenue disaggregation
Total revenue		218	23,737
TechOps \| Operating segments \| Engineered solutions
Revenue disaggregation
Total revenue	5,175	1,305	3,796
TechOps \| Operating segments \| Services
Revenue disaggregation
Total revenue	$ 107,970	$ 102,535	$ 95,258

PROPERTY AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2024

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, 2024		December 31, 2023
Tooling and equipment	5 – 15	$	17,481	$	16,024
Furniture and other equipment	3 – 15		13,985		12,076
Computer software	3 – 5		2,555		2,374
Leasehold improvements	2 – 15		25,527		16,269
Equipment under capital lease	-		-		192
Flight equipment held for R&D	1		8,383		7,784
			67,931		54,719
Less accumulated depreciation			(31,600)		(27,027)
		$	36,331	$	27,692

Depreciation expense was as follows (in thousands):


	Year ended December 31,
	2024		2023		2022
Depreciation expense	$	5,501	$	3,736	$	2,242

WARRANT LIABILITY - Black-Scholes option pricing model (Details)	Dec. 31, 2024 Y	Dec. 31, 2023 Y
Risk-free interest rate
Warrant Liability
Warrants and rights outstanding, measurement input	0.0438	0.0384
Expected volatility of common stock
Warrant Liability
Warrants and rights outstanding, measurement input	0.4171	0.4166
Expected option term in years
Warrant Liability
Warrants and rights outstanding, measurement input	1	2

BENEFIT PLANS

12 Months Ended

Dec. 31, 2024

BENEFIT PLANS

BENEFIT PLANS

NOTE S - 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,
	2024		2023		2022
Nondiscretionary contributions	$	1,564	$	1,495	$	1,250

- 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
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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-Section S99
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147480266/715-60-50-3

+ Details

STOCKHOLDERS' EQUITY - Options granted (Details) - $ / shares	Jul. 01, 2024	Jun. 07, 2024
STOCKHOLDERS' EQUITY
Risk-free interest rate (in %)	4.44%	4.42%
Expected volatility of common stock (in %)	50.03%	50.04%
Expected option term in years	6 years	6 years
Grant-date fair value (per share)	$ 3.46	$ 3.73

FINANCING ARRANGEMENTS - Amortization expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
FINANCING ARRANGEMENTS
Amortization expense	$ 337	$ 400	$ 455

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 5,851	$ (5,563)	$ 43,861

- 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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-URI https://asc.fasb.org/1943274/2147483443/250-10-50-6

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+ Details

STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Dec. 31, 2024

STOCKHOLDERS' EQUITY

Schedule of restricted stock unit activity



		Weighted Average
	Amount	Grant Date Fair Value
Outstanding at December 31, 2023	532,399	$	14.82
Granted	1,148,201		7.07
Forfeited	(78,986)		14.66
Vested	(221,337)		14.90
Outstanding December 31, 2024	1,380,277	$	8.38



		Weighted Average
	Amount	Grant Date Fair Value
Outstanding at December 31, 2022	1,374,383	$	10.72
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)

Schedule of options granted


	Grant Date	Grant Date
	June 7, 2024	July 1, 2024
Risk-free interest rate	4.42%	4.44%
Expected volatility of common stock	50.04%	50.03%
Dividend yield	-	-
Expected option term in years	6.0	6.0
Grant-date fair value (per share)	$ 3.73	$ 3.46

Schedule of stock options activity


	Amount	Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value⁽¹⁾
Outstanding at December 31, 2023	-	$	-	-	-
Granted	646,301		7.02	9.44	-
Forfeited	-		-	-	-
Vested	-		-	-	-
Outstanding December 31, 2024	646,301	$	7.02	9.44

Exercisable	-	$	-	-	-

(1)

Total shares valued at the market price of the underlying stock as of December 31, 2024 less the exercise price.

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2024

EARNINGS PER SHARE

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


	Year ended December 31,
	2024		2023		2022
Net income (loss)	$	5,851	$	(5,563)	$	43,861
Less: change in FV of warrants		-		(2,270)		-
Income (loss) attributable to common stockholders for EPS	$	5,851	$	(7,833)	$	43,861

Weighted-average number of shares outstanding - basic		53,113,508		51,291,424		51,568,436
Additional shares from assumed exercise of warrants		-		166,397		141
Additional shares from assumed stock-settled restricted stock units		245,577		-		1,577,062
Weighted-average number of shares outstanding - diluted		53,359,085		51,457,821		53,145,639

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

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

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 4,698	$ 5,873
Accounts receivable, net of allowance for credit losses of $1,173 and $978 as of December 31, 2024 and December 31, 2023, respectively	34,646	31,239
Income tax receivable	1,994	1,628
Inventory:
Aircraft, airframes, engines, and parts, net	224,832	177,770
Advance vendor payments	6,803	35,757
Deposits, prepaid expenses, and other current assets	11,057	12,507
Total current assets	284,030	264,774
Fixed assets:
Aircraft and engines held for lease, net	67,847	26,475
Property and equipment, net	36,331	27,692
Inventory:
Aircraft, airframes, engines, and parts, net	130,958	151,398
Operating lease right-of-use assets	33,105	27,519
Deferred income taxes	10,171	12,203
Deferred financing costs, net	1,296	1,506
Other assets	595	525
Goodwill	19,860	19,860
Other intangible assets, net	20,530	21,986
Total assets	604,723	553,938
Current liabilities:
Accounts payable	34,184	29,899
Accrued expenses	7,400	5,478
Lessee and customer purchase deposits	1,734	1,467
Current operating lease liabilities	4,356	4,593
Current portion of long-term debt	605	1,278
Deferred revenue	1,781	2,998
Deferred insurance proceeds	24,910
Total current liabilities	74,970	45,713
Revolving credit facility	39,235	29,000
Long-term debt	1,209	7,281
Long-term lease deposits	2,987	102
Long-term operating lease liabilities	30,565	24,377
Maintenance deposit payments and other liabilities	52	64
Warrant liability	85	2,386
Total liabilities	149,103	108,923
Stockholders' equity:
Common stock, $0.0001 par value. Authorized 200,000,000 shares; issued and outstanding 53,252,563 and 52,954,430 shares as of December 31, 2024 and December 31, 2023	5	5
Additional paid-in capital	316,493	311,739
Retained earnings	139,122	133,271
Total stockholders' equity	455,620	445,015
Total liabilities and stockholders' equity	$ 604,723	$ 553,938

INTANGIBLE ASSETS - Assets with indefinite lives (Details) - USD ($) $ in Thousands		12 Months Ended
	Oct. 01, 2023	Jul. 01, 2024	Dec. 31, 2023	Dec. 31, 2024
Intangible assets
Goodwill			$ 19,860	$ 19,860
Total intangible assets with indefinite lives			30,190	30,190
Impairment of indefinite lived intangible		$ 0
Impairment of goodwill	$ 0		0
Impairment of intangible assets		$ 0
Asset Management Solutions \| Qwest
Intangible assets
Goodwill			13,416	13,416
Asset Management Solutions \| Qwest \| FAA Certifications
Intangible assets
Intangible assets with indefinite lives excluding goodwill			724	724
TechOps \| ALGS
Intangible assets
Goodwill			379	379
TechOps \| ALGS \| FAA Certifications
Intangible assets
Intangible assets with indefinite lives excluding goodwill			710	710
TechOps \| ACS
Intangible assets
Goodwill			63	63
TechOps \| ACS \| Trademarks
Intangible assets
Intangible assets with indefinite lives excluding goodwill			600	600
TechOps \| ACS \| FAA Certifications
Intangible assets
Intangible assets with indefinite lives excluding goodwill			7,300	7,300
TechOps \| ACT
Intangible assets
Goodwill			6,002	6,002
TechOps \| ACT \| Trademarks
Intangible assets
Intangible assets with indefinite lives excluding goodwill			200	200
TechOps \| ACT \| FAA Certifications
Intangible assets
Intangible assets with indefinite lives excluding goodwill			$ 796	$ 796

LEASES - Supplemental information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
LEASES
Remaining lease term (years)	7 years 9 months 18 days	7 years 1 month 17 days
Discount Rate	6.83%	6.34%
Cash paid for amounts included in the measurement of lease liabilities	$ 4,498	$ 4,700
Operating lease liabilities arising from obtaining ROU assets	$ 10,449	$ 961

INCOME TAXES - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
INCOME TAXES
Operating loss carryforwards	$ 13,800	$ 7,800
Reserve for uncertain tax positions	$ 0	$ 0

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2024
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

FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2024

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 measures 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 and cash equivalents, 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. The Company’s borrowings under the Revolving Credit Agreement are carried at historical cost and adjusted for principal payments.

Borrowings under the CIBC 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, 2024. 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.

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+ Details

LEASES - Lease costs (Details) - USD ($) $ in Thousands	12 Months Ended
LEASES - Lease costs (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
LEASES
Operating lease cost	$ 6,763	$ 7,001	$ 5,005
Short-term lease cost	1,139	392	170
Variable lease cost	869	397	1,071
Total Lease cost	$ 8,771	$ 7,790	$ 6,246

BUSINESS SEGMENTS - Gross profit to net income (loss) before income tax (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Segment Reporting, Revenue Reconciling Item [Line Items]
Gross Profit	$ 103,936	$ 92,421	$ 151,394
Selling, general and administrative expenses	(94,192)	(103,191)	(96,348)
Income (loss) from operations	9,744	(10,770)	55,046
Other (expenses) income:
Interest (expense) income, net	(5,703)	155	1,093
Other income, net	1,495	666	2,268
Change in fair value of warrant liability	2,301	2,270	(525)
Income (loss) before income tax provision	7,837	(7,679)	57,882
Asset Management Solutions
Segment Reporting, Revenue Reconciling Item [Line Items]
Gross Profit	82,441	67,655	118,231
TechOps
Segment Reporting, Revenue Reconciling Item [Line Items]
Gross Profit	21,495	24,766	33,163
Operating segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Gross Profit	103,936	92,421	151,394
Operating expenses	(22,803)	(26,929)	(22,174)
Selling, general and administrative expenses	(34,451)	(32,318)	(36,637)
Income (loss) from operations	46,682	33,174	92,583
Operating segments \| Asset Management Solutions
Segment Reporting, Revenue Reconciling Item [Line Items]
Gross Profit	82,441	67,655	118,231
Operating expenses	(11,870)	(15,588)	(12,480)
Selling, general and administrative expenses	(15,567)	(15,362)	(16,619)
Income (loss) from operations	55,004	36,705	89,132
Operating segments \| TechOps
Segment Reporting, Revenue Reconciling Item [Line Items]
Gross Profit	21,495	24,766	33,163
Operating expenses	(10,933)	(11,341)	(9,694)
Selling, general and administrative expenses	(18,884)	(16,956)	(20,018)
Income (loss) from operations	(8,322)	(3,531)	3,451
Corporate non segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Other corporate expenses	$ 36,938	$ 43,944	$ 37,537

INVENTORY

12 Months Ended

Dec. 31, 2024

INVENTORY

INVENTORY

NOTE E-INVENTORY

Inventory consisted of the following (in thousands):


	December 31, 2024		December 31, 2023
USM	$	118,025	$	58,857
Whole assets		141,770		186,845
Work-in-process		27,358		22,270
MRO and engineered solutions		68,637		61,196
	$	355,790		329,168
Less short term		(224,832)		(177,770)
Long term	$	130,958	$	151,398

BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2024

BUSINESS SEGMENTS

BUSINESS SEGMENTS

NOTE P - BUSINESS SEGMENTS

The Chairman and Chief Executive Officer is our Chief Operating Decision Maker (“CODM”). We report operational data to our CODM at the segment level, which he uses to evaluate performance and allocate resources based on gross profit and income from operations by segment. While the Company believes there are synergies between the two business segments, they are managed separately because they have different risks and opportunities. The two reportable segments are:

●

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 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 revenue 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. 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. Our reportable segments are aligned principally around the differences in products and services. Gross Profit is calculated by subtracting cost of sales from revenue; income from operations is calculated by subtracting unapplied operating expenses and selling, general and administrative expenses. The assets and certain expenses related to corporate activities are not allocated to the segments. The segment reporting excludes the allocation of interest expense, interest income, other income (expense), net, change in fair value of warrant liability and income tax expense (benefit).

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


	Year ended December 31,
	2024		2023		2022
Revenue
Asset Management Solutions
Aircraft	$	41,749	$	80,877	$	101,511
Engine		173,718		134,290		176,096
		215,467		215,167		277,607
TechOps
MRO services		107,970		102,535		95,258
Product sales		21,629		16,583		11,942
Whole asset sales		-		218		23,737
		129,599		119,336		130,937
Total	$	345,066	$	334,503	$	408,544


	Year ended December 31,
	2024		2023		2022
Cost of sales and operating expenses
Asset Management Solutions
Aircraft	$	27,223	$	58,138	$	65,355
Engine		105,803		89,374		94,021
		133,026		147,512		159,376
TechOps
MRO services		91,510		82,107		74,147
Product sales		16,594		12,822		7,545
Whole asset sales		-		(359)		16,082
		108,104		94,570		97,774
Total	$	241,130	$	242,082	$	257,150


	Year ended December 31,
	2024		2023		2022
Gross profit
Asset Management Solutions
Aircraft	$	14,526	$	22,739	$	36,156
Engine		67,915		44,916		82,075
		82,441		67,655		118,231
TechOps
MRO services		16,460		20,428		21,111
Product sales		5,035		3,761		4,397
Whole asset sales		-		577		7,655
		21,495		24,766		33,163
Total	$	103,936	$	92,421	$	151,394

The following table reconciles segment gross profit to income (loss) before income tax provision:


	Year ended December 31,
	2024						2023						2022
	Asset Management Solutions			TechOps		Total	Asset Management Solutions			TechOps		Total	Asset Management Solutions			TechOps		Total
Gross Profit	$	82,441	$	21,495	$	103,936	$	67,655	$	24,766		92,421	$	118,231	$	33,163	$	151,394
Operating expenses		(11,870)		(10,933)		(22,803)		(15,588)		(11,341)		(26,929)		(12,480)		(9,694)		(22,174)
Selling, general and administrative expenses		(15,567)		(18,884)		(34,451)		(15,362)		(16,956)		(32,318)		(16,619)		(20,018)		(36,637)
Segment income (loss) from operations		55,004		(8,322)		46,682		36,705		(3,531)		33,174		89,132		3,451		92,583
Other corporate expenses⁽¹⁾						(36,938)						(43,944)						(37,537)
Income (loss) from operations						9,744						(10,770)						55,046
Other (expenses) income:
Interest (expense) income, net						(5,703)						155						1,093
Other income, net						1,495						666						2,268
Change in fair value of warrant liability						2,301						2,270						(525)
Income (loss) before income tax provision					$	7,837					$	(7,679)					$	57,882

(1)

Other corporate expenses include other unapplied payroll expenses and benefits, telecommunications and IT support, professional fees, office rent, and depreciation, among others.


	Year ended December 31,
	2024		2023
Total Assets
Asset Management Solutions	$	383,336	$	372,326
TechOps		205,655		163,883
Corporate		15,732		17,729
	$	604,723	$	553,938


	Year ended December 31,
	2024		2023		2022

Total Depreciation and Amortization Expense
Asset Management Solutions	$	9,909	$	6,043	$	7,807
TechOps		5,042		3,549		2,609
Corporate		1,097		867		568
	$	16,048	$	10,459	$	10,984
Total Capital Expenditures
Asset Management Solutions	$	15,350	$	488	$	8,288
TechOps		11,755		9,206		6,078
Corporate		1,925		1,665		1,229
	$	29,030	$	11,359	$	15,595


	Year ended December 31,
Revenue	2024		2023		2022
Domestic	$	215,198	$	145,076	$	169,878
Foreign		129,868		189,427		238,666
Total revenue	$	345,066	$	334,503	$	408,544


	Year ended December 31,
Long-lived assets	2024		2023
Domestic	$	130,086	$	96,013
Foreign		14,482		-
Total long-lived assets	$	144,568	$	96,013

For the year ended December 31, 2024, the Company had one customer from which revenue generated exceeded 10% of total sales. Total sales to this customer amounted to $50.9 million, of which $33.5 million was included in TechOps segment and $17.4 million was included in the Asset Management Solutions segment. As of December 31, 2023, the Company had two customers from which revenue generated exceeded 10% of total sales. Total sales to these 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.

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,
	2024		2023		2022
Asset Management Solutions	$	828	$	1,599	$	4,978
TechOps		11,921		21,359		22,783
Total intersegment revenue	$	12,749	$	22,958	$	27,761

- 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.

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+ Details

INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2024

INTANGIBLE ASSETS

Schedule of intangible assets with indefinite lives

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


	December 31, 2024		December 31, 2023
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

Net book value of intangible assets with definite lives are as follows (in thousands):


	Useful Life
	In Years	December 31, 2024		December 31, 2023
Qwest:
Customer relationships	10	$	4,187	$	5,163
ALGS:
Customer relationships	10		10		30
ACS:
Customer relationships	10		823		1,033
ACT:
Customer relationships	10		4,505		5,430
AerSale:
AerAware Flight manuals	10		675		-
Total intangible assets with definite lives, net		$	10,200	$	11,656

Schedule of amortization expense on finite lived intangible assets

Amortization expense was as follows (in thousands):


	Year ended December 31,
	2024		2023		2022
Amortization expense	$	2,131	$	2,126	$	2,136

Schedule of estimated aggregate amount of amortization expense for intangible assets

The estimated aggregate amount of amortization expense for intangible assets as follows (in thousands):


Year ending December 31:
2025	$	2,189
2026		2,179
2027		2,179
2028		2,162
2029		1,155
Thereafter		336
Total Estimated Aggregate Amortization Expense	$	10,200

AIRCRAFT AND ENGINES HELD FOR LEASE AND LEASE, NET - Components (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Aircraft and Engines
Aircraft and engines held for lease	$ 96,910	$ 58,136
Less accumulated depreciation	(29,063)	(31,661)
Property held for operating leases, net	67,847	26,475
Impairment of leased assets	0	0	$ 900
Depreciation expense	8,416	4,597	6,606
Contingent rental fees	$ 11,717	$ 7,693	$ 12,776
Flight Equipment
Aircraft and Engines
Lease term (in years)	6 years

SIGNIFICANT RISKS AND UNCERTAINTIES (Details) - Customer concentration - customer	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Revenue
Concentration risk
Number of customers	1	2
Revenue \| Customer One
Concentration risk
Number of customers	1		1
Concentration risk (in percent)	15.00%		19.00%
Revenue \| Two customers
Concentration risk
Number of customers		2
Concentration risk (in percent)		25.00%
Trade receivable \| Customer One
Concentration risk
Number of customers		1
Concentration risk (in percent)		20.00%

REVENUE (Tables)

12 Months Ended

Dec. 31, 2024

REVENUE.

Schedule of contract assets

Contract assets are as follows (in thousands):


	December 31, 2024		December 31, 2023		Change
Contract assets	$	6,166	$	6,474	$	(308)

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,
	2024
	Asset Management
	Solutions		TechOps		Total Revenue
USM	$	83,174	$	16,454	$	99,628
Whole asset sales		110,147		-		110,147
Engineered solutions		-		5,175		5,175
Total products		193,321		21,629		214,950
Leasing		22,146		-		22,146
Services		-		107,970		107,970
Total revenue	$	215,467	$	129,599	$	345,066


	Year ended December 31,
	2023
	Asset Management
	Solutions		TechOps		Total Revenue
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 revenue	$	215,167	$	119,336	$	334,503


	Year ended December 31,
	2022
	Asset Management
	Solutions		TechOps		Total Revenue
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 revenue	$	277,607	$	130,937	$	408,544

STOCKHOLDERS' EQUITY - Restricted Stock Unit Activity (Details) - 2020 Plan - $ / shares	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Amount (in Shares)
Beginning balance	532,399	1,374,383
Granted	1,148,201	390,887
Forfeited	(78,986)	(40,516)
Vested	(221,337)	(1,192,355)
Ending balance	1,380,277	532,399
Weighted Average Grant Date Fair Value
Beginning Balance	$ 14.82	$ 10.72
Granted	7.07	14.96
Forfeited	14.66	14.87
Vested	14.9	11.14
Ending Balance	$ 8.38	$ 14.82

SIGNIFICANT RISKS AND UNCERTAINTIES

12 Months Ended

Dec. 31, 2024

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 revenue 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 the Company’s 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 instability, import and export regulations, compliance with foreign laws, treaties, regulations, uncertainties arising from foreign local

less developed 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, 2024, one customer accounted for 15% of total revenue. During the year ended December 31, 2023, two customers accounted for 25% of total revenue. During the year ended December 31, 2022, one customer accounted for 19% of total revenue.

No customer made up more than 10% of our trade receivable balance as of December 31, 2024. One customer made up 20% of our trade receivable balance as of December 31, 2023.

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.

Subsequent Events

The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the consolidated financial statements were issued.

BUSINESS SEGMENTS - Intersegment revenues (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
BUSINESS SEGMENTS
Revenue from contract with customer	$ 345,066	$ 334,503	$ 408,544
Intersegment
BUSINESS SEGMENTS
Revenue from contract with customer	12,749	22,958	27,761
Asset Management Solutions \| Intersegment
BUSINESS SEGMENTS
Revenue from contract with customer	828	1,599	4,978
TechOps \| Intersegment
BUSINESS SEGMENTS
Revenue from contract with customer	$ 11,921	$ 21,359	$ 22,783

- Definition

+ References

+ Details

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Revenue:
Total revenue	$ 345,066	$ 334,503	$ 408,544
Cost of sales and operating expenses:
Total cost of sales	241,130	242,082	257,150
Gross profit	103,936	92,421	151,394
Selling, general and administrative expenses	94,192	103,191	96,348
Income (loss) from operations	9,744	(10,770)	55,046
Other income (expense):
Interest (expense) income, net	(5,703)	155	1,093
Other income, net	1,495	666	2,268
Change in fair value of warrant liability	2,301	2,270	(525)
Total other (expense) income, net	(1,907)	3,091	2,836
Income (loss) before income tax provision	7,837	(7,679)	57,882
Income tax (expense) benefit	(1,986)	2,116	(14,021)
Net income (loss)	$ 5,851	$ (5,563)	$ 43,861
Earnings (loss) per share:
Basic (in dollars per share)	$ 0.11	$ (0.11)	$ 0.85
Diluted (in dollars per share)	$ 0.11	$ (0.15)	$ 0.83
Weighted average shares outstanding:
Basic (in shares)	53,113,508	51,291,424	51,568,436
Diluted (in shares)	53,359,085	51,457,821	53,145,639
Products
Revenue:
Total revenue	$ 214,950	$ 217,455	$ 284,554
Cost of sales and operating expenses:
Total cost of sales	141,152	155,376	176,074
Leasing
Revenue:
Total revenue	22,146	14,513	28,732
Cost of sales and operating expenses:
Total cost of sales	8,468	4,599	6,929
Services
Revenue:
Total revenue	107,970	102,535	95,258
Cost of sales and operating expenses:
Total cost of sales	$ 91,510	$ 82,107	$ 74,147

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

INCOME TAXES

Summary of income tax (benefit) expense

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


	Current		Deferred		Total
Year ended December 31, 2024:
U.S. federal	$	(410)	$	1,456	$	1,046
U.S. state		360		562		922
Foreign		4		14		18
Total income tax (benefit) expense	$	(46)	$	2,032	$	1,986


	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 expense (benefit)	$	(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

Summary of tax rate reconciliation


	Year ended December 31,
	2024		2023		2022
Provision for income tax at the federal statutory rate	$	1,646	$	(1,613)	$	12,155
State taxes		846		165		1,959
Permanent differences		(332)		(328)		218
Change in valuation allowance		-		(1,313)		17
Executive compensation		-		3,016		2,562
Return to provision		(91)		151		591
FDII deduction		-		-		(3,014)
R&D credit		(538)		(1,174)		-
Stock-based compensation		467		(1,020)		-
Other		(12)		-		(467)
Total income tax (benefit) expense	$	1,986	$	(2,116)	$	14,021

Summary of significant components of deferred taxes

effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as of December 31, 2024 and 2023 are as follows (in thousands):


	Year ended December 31,
	2024		2023
Deferred tax assets:
Net operating losses	$	2,986	$	2,005
Foreign tax credit carryforwards		768		1,109
Inventory basis differences		8,544		9,269
Maintenance deposit payments		10		-
Deferred revenue		420		726
Allowance for doubtful accounts		276		237
Start up costs		566		634
Stock-based compensation		1,003		966
Business interest expense - 163(j) limitation		1,343		-
Accrued expenses		11		22
Section 174 capitalization		4,472		2,971
Lease obligations		8,010		7,010
R&D credit		1,055		434
Other		162		445
Total deferred tax assets		29,626		25,828
Deferred tax liabilities:
Fixed assets		(11,081)		(6,489)
Right-of-use assets		(7,582)		(6,659)
Intangible assets		(792)		(477)
Total deferred tax liabilities		(19,455)		(13,625)
Deferred income taxes, net	$	10,171	$	12,203

WARRANT LIABILITY (Tables)

12 Months Ended

Dec. 31, 2024

WARRANT LIABILITY

Schedule of assumptions of black-scholes option pricing model used in determining fair value of private warrants


	December 31, 2024	December 31, 2023
Risk-free interest rate	4.38%	3.84%
Expected volatility of common stock	41.71%	41.66%
Expected option term in years	1.0	2.0

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Inventory reserves	$ 897
Scrap loss reserves	$ 2,798	$ 1,507

LEASES - Future minimum lease payments (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Future minimum lease payments
2025	$ 6,557
2026	6,247
2027	5,544
2028	5,354
2029	4,407
Thereafter	17,577
Total undiscounted payments	45,686
Less: imputed interest	(10,765)
Present value of minimum lease payments	34,921
Less: Operating lease liabilities - current	(4,356)	$ (4,593)
Operating lease liabilities - non-current	$ 30,565	$ 24,377

AIRCRAFT AND ENGINES HELD FOR LEASE AND LEASE, NET (Tables)

12 Months Ended

Dec. 31, 2024

AIRCRAFT AND ENGINES HELD FOR LEASE AND LEASE, NET

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, 2024		December 31, 2023
Aircraft and engines held for lease	$	96,910	$	58,136
Less accumulated depreciation		(29,063)		(31,661)
	$	67,847	$	26,475

Schedule of total depreciation expense 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,
	2024		2023		2022
Depreciation expense	$	8,416	$	4,597	$	6,606

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

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


	Year ended December 31,
	2024		2023		2022
Contingent rental fees	$	11,717	$	7,693	$	12,776

Summary of minimum future annual lease rentals contracted to be received under existing operating leases of flight equipment

The minimum future lease rentals contracted to be received under these existing operating leases of Flight Equipment at December 31, 2024 are as follows (in thousands):


Year ending December 31:
2025	$	23,277
2026		14,136
2027		6,973
2028		2,341
2029		2,335
Thereafter		2,200
Total minimum lease payments	$	51,262

STOCKHOLDERS' EQUITY - Common Stock (Details) - USD ($)	Nov. 08, 2022	Dec. 31, 2024	Dec. 31, 2023
STOCKHOLDERS' EQUITY
Par value per share	$ 0.0001	$ 0.0001	$ 0.0001
Shares authorized		200,000,000	200,000,000
Shares issued		53,252,563	52,954,430
Shares outstanding		53,252,563	52,954,430
Number of shares authorized to repurchase	1,500,000
Repurchase price per share	$ 14.8025
Repurchase value	$ 22,203,750

BENEFIT PLANS (Details) - USD ($) $ in Thousands	12 Months Ended
BENEFIT PLANS (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
BENEFIT PLANS
Percentage of nondiscretionary Safe Harbor contributions	3.00%
Nondiscretionary contributions	$ 1,564	$ 1,495	$ 1,250

ACCRUED EXPENSES (Tables)

12 Months Ended

Dec. 31, 2024

ACCRUED EXPENSES

Schedule of components of accrued expenses

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


	December 31, 2024		December 31, 2023
Accrued compensation and related benefits	$	3,457	$	2,241
Accrued legal fees		741		854
Commission fee accrual		758		260
Accrued federal, state and local taxes and fees		120		105
Other		2,324		2,018
	$	7,400	$	5,478

REVENUE (Details) - USD ($) $ in Thousands	12 Months Ended
REVENUE (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
ASC impact, balance sheet
Contract assets	$ 6,166	$ 6,474
Change in contract assets	(308)
Deferred revenue	$ 1,781	2,998
Maximum customer payment period (in months)	6 months
Services
ASC impact, balance sheet
Contract liabilities for services to be performed		$ 2,700