15. SUBSEQUENT EVENTS

On July 11, 2025, MSN 3101 Acquisition LLC, a wholly owned subsidiary of the Company, consummated the Company’s first aircraft acquisition, an Airbus A320 (MSN 3101), currently operating in its fleet as N630VA and powered by two CFM56-5B engines. The aircraft was purchased from former lessor Falcon 2019-1 Aerospace Limited, which lease agreement was terminated simultaneously with the consummation of the purchase of the aircraft. Total consideration including transaction costs, less deposits and cash maintenance reserves of approximately $2 million paid to seller was financed by Volofin Capital Management Ltd. of London.

Terms of the debt included monthly installments equal to (i) for the first twelve monthly payments, $375,000, (ii) for the subsequent twelve monthly payments, $300,000 and (iii) for each monthly payment thereafter, $225,000 and all remaining outstanding indebtedness shall be due and payable on the earlier of (a) March 1, 2031, and (b) the day immediately prior to the next scheduled 12Y-Check for the aircraft. Interest on the debt will accrue at the annual rate of 8.84 %.

The Company is expected to account for the transaction as an asset acquisition that did not meet the definition of a business. The total consideration is expected to be allocated based on the relative fair values of the assets acquired and liabilities assumed, and no goodwill is expected to be recognized. In addition, the Company is expected to retire related remaining ROU asset and liabilities from previous lease. This acquisition is part of the Company’s strategy that by owning aircraft, is expected to strengthen the Company’s balance sheet, manage long-term operating costs, plan maintenance and modifications more efficiently, build tangible asset value, improve key financial metrics, and position the Company for long-term success.