Mega Matrix (MPU) 10-Q/A 11 May 17 2017 Q1 Quarterly report (amended) Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 11, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	AEROCENTURY CORP
Entity Central Index Key	1,036,848
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		1,416,699
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Assets:
Cash and cash equivalents	$ 2,808,600	$ 2,194,400
Accounts receivable, including deferred rent of $874,700 and $604,800 at March 31, 2017 and December 31, 2016, respectively	4,695,100	4,046,100
Finance leases receivable	26,145,000	17,468,300
Aircraft and aircraft engines held for lease, net of accumulated depreciation of $34,344,700 and $32,639,600 at March 31, 2017 and December 31, 2016, respectively	186,015,000	192,799,800
Assets held for sale	1,995,800	1,998,100
Prepaid expenses and other	372,100	229,400
Total assets	222,031,600	218,736,100
Liabilities:
Accounts payable and accrued expenses	1,097,900	1,218,100
Notes payable and accrued interest, net of unamortized debt issuance costs of $1,799,600 and $1,999,900 at March 31, 2017 and December 31, 2016, respectively	129,253,200	125,837,900
Maintenance reserves	29,167,500	29,424,100
Accrued maintenance costs	355,100	965,000
Security deposits	4,361,200	3,933,200
Unearned revenues	3,832,900	1,903,900
Deferred income taxes	13,145,300	12,830,500
Income taxes payable	209,500	123,200
Total liabilities	181,422,600	176,235,900
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value, 2,000,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $0.001 par value, 10,000,000 shares authorized, 1,629,999 shares issued, 1,416,699 and 1,566,699 shares outstanding at March 31, 2017 and December 31, 2016, respectively	1,600	1,600
Paid-in capital	14,780,100	14,780,100
Retained earnings	28,864,100	28,222,600
Shareholders equity before treasury stock	43,645,800	43,004,300
Treasury stock at cost, 213,300 and 63,300 shares at March 31, 2017 and December 31, 2016, respectively	(3,036,800)	(504,100)
Total stockholders' equity	40,609,000	42,500,200
Total liabilities and stockholders' equity	$ 222,031,600	$ 218,736,100

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Assets:
Accounts receivable, deferred rent	$ 874,700	$ 604,800
Aircraft and aircraft engines held for lease, accumulated depreciation	34,344,700	32,639,600
Liabilities:
Unamortized debt issuance costs	$ 1,799,600	$ 1,999,900
Stockholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in shares)	2,000,000	2,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	10,000,000	10,000,000
Common stock, issued (in shares)	1,629,999	1,629,999
Common stock, outstanding (in shares)	1,416,699	1,566,699
Treasury stock (in shares)	213,300	63,300

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues and other income:
Operating lease revenue, net	$ 7,316,900	$ 6,044,300
Finance lease revenue	325,400	185,100
Net gain on disposal of assets	13,900	5,400
Net gain on sales-type finance leases	297,400	0
Other income	200	1,300
Total Income	7,953,800	6,236,100
Expenses:
Depreciation	2,936,100	2,079,500
Interest	1,610,300	1,289,000
Management fees	1,506,800	1,264,000
Professional fees, general and administrative and other	506,100	424,700
Maintenance	256,100	319,900
Insurance	73,200	76,600
Other taxes	22,600	22,700
Provision for impairment in value of aircraft	0	75,000
Total expenses	6,911,200	5,551,400
Income before income tax provision	1,042,600	684,700
Income tax provision	401,100	251,000
Net income	$ 641,500	$ 433,700
Earnings per share:
Basic (in dollars per share)	$ 0.41	$ 0.28
Diluted (in dollars per share)	$ 0.41	$ 0.28
Weighted average shares used in earnings per share computations:
Basic (in shares)	1,550,032	1,566,699
Diluted (in shares)	1,550,032	1,566,699

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Condensed Consolidated Statements of Cash Flows (Unaudited) [Abstract]
Net cash provided by operating activities	$ 4,258,100	$ 5,529,000
Investing activities:
Proceeds from sale of aircraft and aircraft engines held for lease, net of re-sale fees	570,100	1,485,600
Proceeds from sale of assets held for sale, net of re-sale fees	16,200	1,755,900
Investment in direct financing leases	(7,354,100)	0
Investment in aircraft parts and acquisition costs	(62,800)	0
Net cash (used in)/provided by investing activities	(6,830,600)	3,241,500
Financing activities:
Issuance of notes payable - Credit Facility	7,000,000	0
Repayment of notes payable - Credit Facility	(2,800,000)	(8,600,000)
Repayment of notes payable - special purpose financing	(1,013,300)	0
Net cash provided by/(used in) financing activities	3,186,700	(8,600,000)
Net increase in cash and cash equivalents	614,200	170,500
Cash and cash equivalents, beginning of year	2,194,400	2,721,000
Cash and cash equivalents, end of year	$ 2,808,600	$ 2,891,500

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Condensed Consolidated Statements of Cash Flows (Unaudited) [Abstract]
Interest paid	$ 1,402,600	$ 1,115,500
Income taxes paid	$ 0	$ 0

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Organization and Summary of Significant Accounting Policies [Abstract]
Organization and Summary of Significant Accounting Policies	1. (a) AeroCentury Corp., a Delaware corporation incorporated in 1997, typically acquires used regional aircraft and engines for lease to foreign and domestic regional carriers. In August 2016, AeroCentury Corp. formed two wholly-owned subsidiaries, ACY 19002 Limited ("ACY 19002") and ACY 19003 Limited ("ACY 19003") for the purpose of acquiring aircraft using a combination of cash and financing separate from the parent's credit facility. Financial information for AeroCentury Corp., ACY 19002 and ACY 19003 (collectively, the "Company") is presented on a consolidated basis in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All intercompany balances and transactions have been eliminated in consolidation. For further information, refer to the financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2016. (b) The Company's condensed consolidated financial statements have been prepared in accordance with GAAP. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable for making judgments that are not readily apparent from other sources. The most significant estimates with regard to these condensed consolidated financial statements are the residual values and useful lives of the Company's long lived assets, the amount and timing of future cash flows associated with each asset that are used to evaluate whether assets are impaired, accrued maintenance costs, accounting for income taxes, and the amounts recorded as allowances for doubtful accounts. (c) Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs, to the extent possible. The fair value hierarchy under GAAP is based on three levels of inputs. Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis The carrying amount of the Company's money market funds included in cash and cash equivalents was $1,848,300 and $1,348,100 at March 31, 2017 and December 31, 2016, respectively. The fair value of the Company's money market funds is categorized as Level 1 under the GAAP fair value hierarchy. As of March 31, 2017 and December 31, 2016, there were no liabilities that were required to be measured and recorded at fair value on a recurring basis. Assets Measured and Recorded at Fair Value on a Nonrecurring Basis The Company determines fair value of long-lived assets held and used, such as aircraft and aircraft engines held for lease and assets held for sale, by reference to independent appraisals, quoted market prices (e.g., offers to purchase) and other factors. An impairment charge is recorded when the Company believes that the carrying value of an asset will not be recovered through future net cash flows and that the asset's carrying value exceeds its fair value. Assets held for sale The Company recorded no impairment charges on its aircraft held for sale during the three months ended March 31, 2017. Fair Value of Other Financial Instruments The Company's financial instruments, other than cash and cash equivalents, consist principally of finance leases receivable, amounts borrowed under its credit facility (the "Credit Facility") and notes payable under special purpose financing. The fair value of accounts receivable, finance leases receivable, accounts payable and the Company's maintenance reserves and accrued maintenance costs approximates the carrying value of these financial instruments. Borrowings under the Company's Credit Facility bear floating rates of interest that reset periodically to a market benchmark rate plus a credit margin. The Company believes the effective interest rate under the Credit Facility approximates current market rates for such indebtedness at the balance sheet date, and therefore that the outstanding principal and accrued interest of $114,393,800 and $110,183,600 at March 31, 2017 and December 31, 2016, respectively, approximate their fair values on such dates. The fair value of the Company's outstanding balance of its Credit Facility would be categorized as Level 3 under the GAAP fair value hierarchy. The amounts payable under the Company's special purpose financing are payable through the fourth quarter of 2020 and bear a fixed rate of interest, as described in Note 4(b) to the condensed consolidated financial statements. The outstanding principal and accrued interest of $16,639,000 and $17,654,200 approximates the fair value of such notes at March 31, 2017 and December 31, 2016. Such fair value would be categorized as Level 3 under the GAAP fair value hierarchy. (d) As of March 31, 2017, the Company had nine aircraft finance leases that contain lessee purchase options at prices substantially below the assets' estimated residual values at the exercise date for the options. Consequently, the Company considers the purchase options to be bargain purchase options and has classified the leases as finance leases for financial accounting purposes. The Company reports the discounted present value of (i) future minimum lease payments (including the bargain purchase option) and (ii) any residual value not subject to a bargain purchase option as a finance lease receivable on its balance sheet and accrues interest on the balance of the finance lease receivable based on the interest rate inherent in the applicable lease over the term of the lease. For sales-type finance leases, the Company recognizes as a gain or loss the amount equal to (i) the net investment in sales-type finance leases plus any initial direct costs and lease incentives less (ii) the net book value of the aircraft. The Company recognized interest earned on finance leases as "finance lease revenue" in the amount of $325,400 and $185,100 in the three months ended March 31, 2017 and 2016, respectively. (e) In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09 that created the new Topic 606 ("Topic 606") in the Accounting Standards Codification ("ASC"). Topic 606 also included numerous conforming additions and amendments to other Topics within the ASC. Topic 606 established new rules that affect the amount and timing of revenue recognition for contracts with customers, but does not affect lease accounting and reporting. As such, adoption of these provisions will not affect the Company's lease revenues but may affect the reporting of other of the Company's revenues. On August 12, 2015, the FASB deferred the effective date of the provisions included in Topic 606 to years commencing after December 15, 2017. Topic 606 can be adopted early for years commencing after December 15, 2016, and may be reflected using either a full retrospective method or a simplified method that does not recast prior periods but does disclose the effect of the adoption on the current period consolidated financial statements. The Company has not yet determined either the potential impact on its consolidated financial statements or the method it will elect to use in connection with the adoption of the changes included in Topic 606. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) The new standard requires a lessor to classify leases as sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor does not convey risks and rewards or control, an operating lease results. A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company has reviewed those agreements under which it is the lessor, and believes that the accounting for its existing operating and finance leases will not be affected by adoption of ASU 2016-02, nor does it expect classification of its future leases to be significantly affected by adoption. The Company does expect that certain pre-lease costs that are currently capitalized and amortized over operating lease terms or offset against gain on sale in sales-type leases will instead be expensed when incurred under the new standards, but since such future amounts will be based on future facts and circumstances, the Company cannot determine the future effect of such requirement. The Company does not expect to adopt ASU 2016-02 early, and does expect to elect practical expedients in connection with its adoption, including not re-evaluating lease classification or capitalized initial direct costs on existing leases. The Company is not an obligor under any agreements that would be considered leases under ASU 2016-02, and so would be unaffected with respect to its adoption with respect to lessee accounting. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) In January 2017, the FASB issued ASU 2017-04, Intangibles -- Goodwill and Other (Topic 350)

Finance Leases Receivable

Finance Leases Receivable	3 Months Ended
	Mar. 31, 2017
Finance Leases Receivable [Abstract]
Finance Leases Receivable	2. During the first quarter of 2017, the Company leased a turboprop aircraft pursuant to a sales-type finance lease and recorded a related gain of $297,400. During the same period, the Company used cash of $7,354,100 for the acquisition of three regional jet aircraft, which are recorded as direct financing leases. During the first quarter of 2016, the Company recorded a gain of $5,400 At March 31, 2017 and December 31, 2016, the net investment included in finance leases and direct financing leases receivable were as follows: March 31 2017 December 31, 2016 Gross minimum lease payments receivable $ 30,904,500 $ 20,829,200 Less unearned interest (4,759,500 ) (3,360,900 ) Finance leases receivable $ 26,145,000 $ 17,468,300 As of March 31, 2017, minimum future payments receivable under finance leases were as follows: Years ending Remainder of 2017 $ 4,280,700 2018 5,811,600 2019 7,087,600 2020 5,036,600 2021 5,381,000 Thereafter 3,307,000 $ 30,904,500

Aircraft and Aircraft Engines H

Aircraft and Aircraft Engines Held for Lease or Sale	3 Months Ended
	Mar. 31, 2017
Aircraft and Aircraft Engines Held for Lease or Sale [Abstract]
Aircraft and Aircraft Engines Held for Lease or Sale	3. (a) At March 31, 2017 and December 31, 2016, the Company's aircraft and aircraft engines held for lease consisted of the following: March 31, 2017 December 31 Type Number owned % of net book value Number owned % of net book value Turboprop aircraft 11 23% 12 23% Regional jet aircraft 12 74% 12 73% Engines 3 3% 4 4% In addition to its investment in direct financing leases discussed in Note 2, during the first quarter of 2017, the Company used $62,800 for equipment to be installed on an aircraft and for acquisition costs related to aircraft acquired in 2016. During the first quarter of 2016, the Company used no cash for asset acquisitions. As discussed in Note 9, during the first quarter of 2017, the Company exchanged one of its spare engines for 150,000 shares of common stock of the Company held by a stockholder. The Company recorded no gain or loss related to the exchange. During the first quarter of 2017, the Company leased a turboprop aircraft that had been off lease at December 31, 2016. Three of the Company's assets held for lease, comprised of two turboprop aircraft and one engine, were off lease at March 31, 2017, representing 4% of the net book value of the Company's aircraft and engines held for lease. As discussed in Note 9, two turboprop aircraft and two engines were returned to the Company in April 2017. As of March 31, 2017, minimum future lease revenue payments receivable under noncancelable operating leases were as follows: Years ending Remainder of 2017 $ 18,931,000 2018 22,282,900 2019 21,855,200 2020 19,403,000 2021 12,301,600 Thereafter 30,908,100 $ 125,681,800 (b) Assets Held for Sale Assets held for sale at March 31, 2017 consist of three turboprop airframes being sold in parts and a turboprop aircraft. During the three months ended March 31, 2017 and 2016, the Company received $16,100 and $38,800, respectively, from the sale of parts installed on the airframes. Of such amounts, $2,300 and $38,800, respectively, reduced the carrying value of the airframes. In the 2017 period, the Company received an amount in excess of the carrying value for one of the airframes, and recorded a gain of $13,900.

Notes Payable and Accrued Inter

Notes Payable and Accrued Interest	3 Months Ended
	Mar. 31, 2017
Notes Payable and Accrued Interest [Abstract]
Notes Payable and Accrued Interest	4. At March 31, 2017 and December 31, 2016, the Company's notes payable and accrued interest consisted of the following: March 31 2017 December 31 2016 Credit Facility: Principal $ 114,300,000 $ 110,100,000 Unamortized debt issuance costs (1,779,600 ) (1,999,900 ) Accrued interest 93,800 83,600 Special purpose financing: Principal 16,610,300 17,623,600 Accrued interest 28,700 30,600 $ 129,253,200 $ 125,837,900 (a) The Company's $150 million Credit Facility is provided by a syndicate of banks and is secured by all of the assets of the Company, including its aircraft and engine portfolio. The Credit Facility, which expires on May 31, 2019, can be expanded to a maximum of $180 million. The Company was in compliance with all covenants under the Credit Facility at March 31, 2017 and December 31, 2016. The unused amount of the Credit Facility was $35,700,000 and $39,900,000 as of March 31, 2017 and December 31, 2016, respectively. The weighted average interest rate on the Credit Facility was 4.40% and 4.15% at March 31, 2017 and 31, 2016, respectively. (b) In August 2016, the Company acquired two regional jet aircraft using cash and financing separate from its Credit Facility. The financing resulted in note obligations of $9,805,600 and $9,804,300, which are being paid from a portion of the rent payments on the related aircraft leases through October 3, 2020 and November 7, 2020, respectively, and which bear interest at the rate of 4.455%. The borrower under each note obligation is the special purpose entity that owns each aircraft. The notes are collateralized by the aircraft and are recourse only to the special purpose entity borrower and its aircraft asset, subject to standard exceptions for this type of financing. Payments due under the notes consist of quarterly principal and interest. The combined balance of the notes payable and accrued interest on these notes at March 31, 2017 and December 31, 2016 was $16,639,000 and $17,654,200, respectively.

Acquisition Costs

Acquisition Costs	3 Months Ended
	Mar. 31, 2017
Acquisition Costs [Abstract]
Acquisition Costs	5. During the first quarter of 2017, the Company accrued $101,800 of expenses related to a potential corporate acquisition. Such expenses are included in professional fees, general and administrative and other in the Company's condensed consolidated statements of operations.

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2017
Contingencies [Abstract]
Contingencies	6. In the ordinary conduct of the Company's business, the Company is subject to lawsuits, arbitrations and administrative proceedings from time to time. The Company believes that the outcome of any existing or known threatened proceedings, even if determined adversely, should not have a material adverse effect on the Company's business, financial condition, liquidity or results of operations.

Computation of Earnings Per Sha

Computation of Earnings Per Share	3 Months Ended
	Mar. 31, 2017
Computation of Earnings Per Share [Abstract]
Computation of Earnings Per Share	7. Basic and diluted earnings per share are calculated as follows: For the Three Months Ended March 2017 2016 Net income $ 641,500 $ 433,700 Weighted average shares outstanding for the period 1,550,032 1,566,699 Basic earnings per share $ 0.41 $ 0.28 Diluted earnings per share $ 0.41 $ 0.28 Basic earnings per common share is computed using net income and the weighted average number of common shares outstanding during the period. Diluted earnings per common share are computed using net income and the weighted average number of common shares outstanding, assuming dilution. Weighted average common shares

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	8 The Company's portfolio of leased aircraft assets is managed and administered under the terms of a management agreement with JetFleet Management Corp. ("JMC"), which is an integrated aircraft management, marketing and financing business and a subsidiary of JetFleet Holding Corp. ("JHC"). Certain officers of the Company are also officers of JHC and JMC and hold significant ownership positions in both JHC and the Company. Under the management agreement, JMC receives a monthly management fee based on the net asset value of the assets under management. JMC also receives an acquisition fee for locating assets for the Company. Acquisition fees are included in the cost basis of the asset purchased. JMC may receive a remarketing fee in connection with the re-lease or sale of the Company's assets. Remarketing fees are amortized over the applicable lease term or included in the gain or loss on sale. Fees incurred during the three months ended March 31, 2017 and 2016 were as follows: For the Three Months Ended March 2017 2016 Management fees $ 1,506,800 $ 1,264,000 Acquisition fees 220,500 - Remarketing fees 51,100 - In August 2009, the Company entered into an agreement (the "Assignment Agreement") with Lee G. Beaumont in which Mr. Beaumont assigned to the Company his rights to purchase certain aircraft engines from an unrelated third party seller. In January 2012, Mr. Beaumont became a "related person" with respect to the Company due to his open market acquisitions of shares representing over 5% of the Company's common stock. In March 2017, the Company exchanged one of the engines for 150,000 shares of common stock of the Company held by Mr. Beaumont. The Company recorded no gain or loss related to the exchange.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	9. In April 2017, one of the Company's lessees returned two turboprop aircraft prior to lease expiration. The Company recorded gains totaling $271,600, which represents the difference between the maintenance reserves held by the Company and retained by it upon the such return and the amount of deferred rent that had been recorded as income by the Company in previous periods. In April 2017, two spare engines that had been on lease were returned to the Company at lease expiration. In May 2017, the Company signed a letter of intent and made a deposit for the purchase of three Embraer 175 aircraft. The Company expects to acquire two of the aircraft during the second quarter and one during the third quarter.

Organization and Summary of S16

Organization and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Organization and Summary of Significant Accounting Policies [Abstract]
The Company and Basis of Presentation	(a) AeroCentury Corp., a Delaware corporation incorporated in 1997, typically acquires used regional aircraft and engines for lease to foreign and domestic regional carriers. In August 2016, AeroCentury Corp. formed two wholly-owned subsidiaries, ACY 19002 Limited ("ACY 19002") and ACY 19003 Limited ("ACY 19003") for the purpose of acquiring aircraft using a combination of cash and financing separate from the parent's credit facility. Financial information for AeroCentury Corp., ACY 19002 and ACY 19003 (collectively, the "Company") is presented on a consolidated basis in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All intercompany balances and transactions have been eliminated in consolidation. For further information, refer to the financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2016.
Use of Estimates	(b) The Company's condensed consolidated financial statements have been prepared in accordance with GAAP. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable for making judgments that are not readily apparent from other sources. The most significant estimates with regard to these condensed consolidated financial statements are the residual values and useful lives of the Company's long lived assets, the amount and timing of future cash flows associated with each asset that are used to evaluate whether assets are impaired, accrued maintenance costs, accounting for income taxes, and the amounts recorded as allowances for doubtful accounts.
Fair Value Measurements	(c) Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs, to the extent possible. The fair value hierarchy under GAAP is based on three levels of inputs. Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis The carrying amount of the Company's money market funds included in cash and cash equivalents was $1,848,300 and $1,348,100 at March 31, 2017 and December 31, 2016, respectively. The fair value of the Company's money market funds is categorized as Level 1 under the GAAP fair value hierarchy. As of March 31, 2017 and December 31, 2016, there were no liabilities that were required to be measured and recorded at fair value on a recurring basis. Assets Measured and Recorded at Fair Value on a Nonrecurring Basis The Company determines fair value of long-lived assets held and used, such as aircraft and aircraft engines held for lease and assets held for sale, by reference to independent appraisals, quoted market prices (e.g., offers to purchase) and other factors. An impairment charge is recorded when the Company believes that the carrying value of an asset will not be recovered through future net cash flows and that the asset's carrying value exceeds its fair value. Assets held for sale The Company recorded no impairment charges on its aircraft held for sale during the three months ended March 31, 2017. Fair Value of Other Financial Instruments The Company's financial instruments, other than cash and cash equivalents, consist principally of finance leases receivable, amounts borrowed under its credit facility (the "Credit Facility") and notes payable under special purpose financing. The fair value of accounts receivable, finance leases receivable, accounts payable and the Company's maintenance reserves and accrued maintenance costs approximates the carrying value of these financial instruments. Borrowings under the Company's Credit Facility bear floating rates of interest that reset periodically to a market benchmark rate plus a credit margin. The Company believes the effective interest rate under the Credit Facility approximates current market rates for such indebtedness at the balance sheet date, and therefore that the outstanding principal and accrued interest of $114,393,800 and $110,183,600 at March 31, 2017 and December 31, 2016, respectively, approximate their fair values on such dates. The fair value of the Company's outstanding balance of its Credit Facility would be categorized as Level 3 under the GAAP fair value hierarchy. The amounts payable under the Company's special purpose financing are payable through the fourth quarter of 2020 and bear a fixed rate of interest, as described in Note 4(b) to the condensed consolidated financial statements. The outstanding principal and accrued interest of $16,639,000 and $17,654,200 approximates the fair value of such notes at March 31, 2017 and December 31, 2016. Such fair value would be categorized as Level 3 under the GAAP fair value hierarchy.
Finance Leases	(d) As of March 31, 2017, the Company had nine aircraft finance leases that contain lessee purchase options at prices substantially below the assets' estimated residual values at the exercise date for the options. Consequently, the Company considers the purchase options to be bargain purchase options and has classified the leases as finance leases for financial accounting purposes. The Company reports the discounted present value of (i) future minimum lease payments (including the bargain purchase option) and (ii) any residual value not subject to a bargain purchase option as a finance lease receivable on its balance sheet and accrues interest on the balance of the finance lease receivable based on the interest rate inherent in the applicable lease over the term of the lease. For sales-type finance leases, the Company recognizes as a gain or loss the amount equal to (i) the net investment in sales-type finance leases plus any initial direct costs and lease incentives less (ii) the net book value of the aircraft. The Company recognized interest earned on finance leases as "finance lease revenue" in the amount of $325,400 and $185,100 in the three months ended March 31, 2017 and 2016, respectively.
Recent Accounting Pronouncements	(e) In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09 that created the new Topic 606 ("Topic 606") in the Accounting Standards Codification ("ASC"). Topic 606 also included numerous conforming additions and amendments to other Topics within the ASC. Topic 606 established new rules that affect the amount and timing of revenue recognition for contracts with customers, but does not affect lease accounting and reporting. As such, adoption of these provisions will not affect the Company's lease revenues but may affect the reporting of other of the Company's revenues. On August 12, 2015, the FASB deferred the effective date of the provisions included in Topic 606 to years commencing after December 15, 2017. Topic 606 can be adopted early for years commencing after December 15, 2016, and may be reflected using either a full retrospective method or a simplified method that does not recast prior periods but does disclose the effect of the adoption on the current period consolidated financial statements. The Company has not yet determined either the potential impact on its consolidated financial statements or the method it will elect to use in connection with the adoption of the changes included in Topic 606. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) The new standard requires a lessor to classify leases as sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor does not convey risks and rewards or control, an operating lease results. A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company has reviewed those agreements under which it is the lessor, and believes that the accounting for its existing operating and finance leases will not be affected by adoption of ASU 2016-02, nor does it expect classification of its future leases to be significantly affected by adoption. The Company does expect that certain pre-lease costs that are currently capitalized and amortized over operating lease terms or offset against gain on sale in sales-type leases will instead be expensed when incurred under the new standards, but since such future amounts will be based on future facts and circumstances, the Company cannot determine the future effect of such requirement. The Company does not expect to adopt ASU 2016-02 early, and does expect to elect practical expedients in connection with its adoption, including not re-evaluating lease classification or capitalized initial direct costs on existing leases. The Company is not an obligor under any agreements that would be considered leases under ASU 2016-02, and so would be unaffected with respect to its adoption with respect to lessee accounting. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) In January 2017, the FASB issued ASU 2017-04, Intangibles -- Goodwill and Other (Topic 350)

Finance Leases Receivable (Tabl

Finance Leases Receivable (Tables)	3 Months Ended
	Mar. 31, 2017
Finance Leases Receivable [Abstract]
Net investment included in sales-type finance leases receivable	At March 31, 2017 and December 31, 2016, the net investment included in finance leases and direct financing leases receivable were as follows: March 31 2017 December 31, 2016 Gross minimum lease payments receivable $ 30,904,500 $ 20,829,200 Less unearned interest (4,759,500 ) (3,360,900 ) Finance leases receivable $ 26,145,000 $ 17,468,300
Minimum future lease revenue payments receivable under sales-type finance leases	As of March 31, 2017, minimum future payments receivable under finance leases were as follows: Years ending Remainder of 2017 $ 4,280,700 2018 5,811,600 2019 7,087,600 2020 5,036,600 2021 5,381,000 Thereafter 3,307,000 $ 30,904,500

Aircraft and Aircraft Engines18

Aircraft and Aircraft Engines Held for Lease or Sale (Tables)	3 Months Ended
	Mar. 31, 2017
Aircraft and Aircraft Engines Held for Lease or Sale [Abstract]
Aircraft and aircraft engines held for lease	At March 31, 2017 and December 31, 2016, the Company's aircraft and aircraft engines held for lease consisted of the following: March 31, 2017 December 31 Type Number owned % of net book value Number owned % of net book value Turboprop aircraft 11 23% 12 23% Regional jet aircraft 12 74% 12 73% Engines 3 3% 4 4%
Operating Leases of Lessee Disclosure	As of March 31, 2017, minimum future lease revenue payments receivable under noncancelable operating leases were as follows: Years ending Remainder of 2017 $ 18,931,000 2018 22,282,900 2019 21,855,200 2020 19,403,000 2021 12,301,600 Thereafter 30,908,100 $ 125,681,800

Notes Payable and Accrued Int19

Notes Payable and Accrued Interest (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Payable and Accrued Interest [Abstract]
Notes payable and accrued interest	At March 31, 2017 and December 31, 2016, the Company's notes payable and accrued interest consisted of the following: March 31 2017 December 31 2016 Credit Facility: Principal $ 114,300,000 $ 110,100,000 Unamortized debt issuance costs (1,779,600 ) (1,999,900 ) Accrued interest 93,800 83,600 Special purpose financing: Principal 16,610,300 17,623,600 Accrued interest 28,700 30,600 $ 129,253,200 $ 125,837,900

Computation of Earnings Per S20

Computation of Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Computation of Earnings Per Share [Abstract]
Computation of earnings per share	Basic and diluted earnings per share are calculated as follows: For the Three Months Ended March 2017 2016 Net income $ 641,500 $ 433,700 Weighted average shares outstanding for the period 1,550,032 1,566,699 Basic earnings per share $ 0.41 $ 0.28 Diluted earnings per share $ 0.41 $ 0.28

Related Party Transactions (Tab

Related Party Transactions (Tables)	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Related party fees	Fees incurred during the three months ended March 31, 2017 and 2016 were as follows: For the Three Months Ended March 2017 2016 Management fees $ 1,506,800 $ 1,264,000 Acquisition fees 220,500 - Remarketing fees 51,100 -

Organization and Summary of S22

Organization and Summary of Significant Accounting Policies (Details)	Aug. 31, 2016Subsidiary	Mar. 31, 2017USD ($)Aircraft	Mar. 31, 2016USD ($)Aircraft	Dec. 31, 2016USD ($)
Organization and Summary of Significant Accounting Policies [Abstract]
Number of wholly owned subsidiaries | Subsidiary	2
Capital Leased Assets [Line Items]
Impairment charge		$ 0	$ 75,000
Notes payable and accrued interest		$ 129,253,200		$ 125,837,900
Finance Leases [Abstract]
Number of aircraft with finance leases that contain lessee purchase options | Aircraft		9
Interest earned on finance lease		$ 325,400	185,100
Special Purpose Financing [Member]
Capital Leased Assets [Line Items]
Notes payable and accrued interest		16,639,000		17,654,200
Credit Facility [Member]
Capital Leased Assets [Line Items]
Notes payable and accrued interest		114,393,800		110,183,600
Held for Sale [Member]
Capital Leased Assets [Line Items]
Impairment charge		2,300	38,800
Recurring [Member]
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis [Abstract]
Money market funds included in cash and cash equivalents		1,848,300		1,348,100
Liabilities recorded at fair value		0		$ 0
Aircraft [Member] | Held for Sale [Member]
Capital Leased Assets [Line Items]
Impairment charge		$ 0	$ 75,000
Number of aircraft held for sale | Aircraft			2

Finance Leases Receivable (Deta

Finance Leases Receivable (Details)	3 Months Ended
	Mar. 31, 2017USD ($)Aircraft	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Loans And Leases Receivable Disclosure [Line Items]
Payment to acquire aircraft	$ 7,354,100	$ 0
Net gain on sales-type finance leases	297,400	0
Net Investment [Abstract]
Gross minimum lease payments receivable	30,904,500		$ 20,829,200
Less unearned interest	(4,759,500)		(3,360,900)
Finance leases receivable	26,145,000		17,468,300
Minimum Future Lease Revenue Payments [Abstract]
Remainder of 2017	4,280,700
2,018	5,811,600
2,019	7,087,600
2,020	5,036,600
2,021	5,381,000
Thereafter	3,307,000
Total	30,904,500		$ 20,829,200
Turboprop Aircraft [Member] | Financing lease [member]
Loans And Leases Receivable Disclosure [Line Items]
Net gain on sales-type finance leases	297,400	$ 5,400
Regional Jet Aircraft [Member] | Financing lease [member]
Loans And Leases Receivable Disclosure [Line Items]
Payment to acquire aircraft	$ 7,354,100
Number of aircraft purchased | Aircraft	3

Aircraft and Aircraft Engines24

Aircraft and Aircraft Engines Held for Lease or Sale (Details)	1 Months Ended		3 Months Ended
	Apr. 30, 2017Aircraft	Apr. 30, 2017Asset	Mar. 31, 2017USD ($)AircraftEngineAssetshares	Mar. 31, 2016USD ($)	Dec. 31, 2016Aircraft
Aircraft and aircraft engines held for lease or sale [Abstract]
Payment for equipment and acquisition costs related to aircraft purchased			$ 7,354,100	$ 0
Minimum future lease revenue payments receivable under noncancelable operating leases [Abstract]
Remainder of 2017			18,931,000
2,018			22,282,900
2,019			21,855,200
2,020			19,403,000
2,021			12,301,600
Thereafter			30,908,100
Total			125,681,800
Proceeds from the sale of airframe parts			16,200	1,755,900
Asset Impairment Charges			$ 0	75,000
Turboprop Aircraft [Member]
Aircraft and aircraft engines held for lease or sale [Abstract]
Number owned | Aircraft			11		12
Percentage of net book value			23.00%		23.00%
Number of off leased assets leased | Aircraft			1
Minimum future lease revenue payments receivable under noncancelable operating leases [Abstract]
Percentage of net book value			23.00%		23.00%
Regional Jet Aircraft [Member]
Aircraft and aircraft engines held for lease or sale [Abstract]
Number owned | Aircraft			12		12
Percentage of net book value			74.00%		73.00%
Minimum future lease revenue payments receivable under noncancelable operating leases [Abstract]
Percentage of net book value			74.00%		73.00%
Engines [Member]
Aircraft and aircraft engines held for lease or sale [Abstract]
Number owned | Aircraft			3		4
Percentage of net book value			3.00%		4.00%
Minimum future lease revenue payments receivable under noncancelable operating leases [Abstract]
Percentage of net book value			3.00%		4.00%
Held for Lease [Member]
Aircraft and aircraft engines held for lease or sale [Abstract]
Percentage of net book value			4.00%
Payment for equipment and acquisition costs related to aircraft purchased			$ 62,800	0
Number of assets held for lease, off lease | Asset			3
Minimum future lease revenue payments receivable under noncancelable operating leases [Abstract]
Percentage of net book value			4.00%
Held for Lease [Member] | Turboprop Aircraft [Member]
Aircraft and aircraft engines held for lease or sale [Abstract]
Number of assets held for lease, off lease | Asset			2
Held for Lease [Member] | Turboprop Aircraft [Member] | Subsequent Event [Member]
Aircraft and aircraft engines held for lease or sale [Abstract]
Number of assets returned | Aircraft	2
Held for Lease [Member] | Engines [Member]
Aircraft and aircraft engines held for lease or sale [Abstract]
Number of assets exchanged for common shares held by a stock holder | Engine			1
Proceeds from sale of asset (in shares) | shares			150,000
Gain (loss) on exchange of sale of assets			$ 0
Number of assets held for lease, off lease | Asset			1
Held for Lease [Member] | Engines [Member] | Subsequent Event [Member]
Aircraft and aircraft engines held for lease or sale [Abstract]
Number of assets returned	2	2
Held for Sale [Member]
Minimum future lease revenue payments receivable under noncancelable operating leases [Abstract]
Proceeds from the sale of airframe parts			$ 16,100	38,800
Asset Impairment Charges			$ 2,300	$ 38,800
Held for Sale [Member] | Turboprop Aircraft [Member]
Minimum future lease revenue payments receivable under noncancelable operating leases [Abstract]
Number of assets held for sale | Aircraft			1
Held for Sale [Member] | Turboprop Airframe [Member]
Minimum future lease revenue payments receivable under noncancelable operating leases [Abstract]
Number of assets held for sale | Aircraft			3
Gain on sale of airframes			$ 13,900

Notes Payable and Accrued Int25

Notes Payable and Accrued Interest (Details)	Aug. 31, 2016USD ($)Aircraft	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Credit Facility [Abstract]
Unamortized debt issuance costs		$ (1,799,600)	$ (1,999,900)
Special Purpose Financing [Abstract]
Notes payable and accrued interest		129,253,200	125,837,900
Special Purpose Financing [Member]
Special Purpose Financing [Abstract]
Principal		16,610,300	17,623,600
Interest rate	4.455%
Accrued interest		28,700	30,600
Notes payable and accrued interest		16,639,000	17,654,200
Special Purpose Financing [Member] | October 3, 2020 [Member]
Special Purpose Financing [Abstract]
Principal	$ 9,805,600
Special Purpose Financing [Member] | November 7, 2020 [Member]
Special Purpose Financing [Abstract]
Principal	$ 9,804,300
Special Purpose Financing [Member] | Regional Jet Aircraft [Member]
Special Purpose Financing [Abstract]
Number of aircraft purchased | Aircraft	2
Credit Facility [Member]
Credit Facility [Abstract]
Principal		114,300,000	110,100,000
Unamortized debt issuance costs		(1,779,600)	(1,999,900)
Credit facility maximum borrowing capacity		150,000,000
Credit facility potential maximum borrowing capacity		180,000,000
Unused amount of the credit facility		$ 35,700,000	$ 39,900,000
Weighted average interest rate on credit facility		4.40%	4.15%
Special Purpose Financing [Abstract]
Accrued interest		$ 93,800	$ 83,600

Acquisition Costs (Details)

Acquisition Costs (Details)	3 Months Ended
	Mar. 31, 2017USD ($)
Acquisition Costs [Abstract]
Acquisition costs	$ 101,800

Computation of Earnings Per S27

Computation of Earnings Per Share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Basic and diluted earnings per share [Abstract]
Net income	$ 641,500	$ 433,700
Weighted average shares outstanding for the period (in shares)	1,550,032	1,566,699
Basic earnings per share (in dollars per share)	$ 0.41	$ 0.28
Diluted earnings per share (in dollars per share)	$ 0.41	$ 0.28

Related Party Transactions (Det

Related Party Transactions (Details)	3 Months Ended
	Mar. 31, 2017USD ($)Aircraftshares	Mar. 31, 2016USD ($)	Jan. 31, 2012
Related Party Transaction [Line Items]
Management fees	$ 1,506,800	$ 1,264,000
Jet Fleet Management Corp. [Member]
Related Party Transaction [Line Items]
Management fees	1,506,800	1,264,000
Acquisition fees	220,500	0
Remarketing fees	$ 51,100	$ 0
Lee G. Beaumont [Member]
Related Party Transaction [Line Items]
Percentage of shares acquired by related party			5.00%
Lee G. Beaumont [Member] | Engines [Member]
Related Party Transaction [Line Items]
Number of aircraft engines exchanged | Aircraft	1
Number of shares held by the related party (in shares) | shares	150,000
Gain (loss) on exchange of sale of assets	$ 0

Subsequent Events (Details)

Subsequent Events (Details)	1 Months Ended				3 Months Ended
	May 31, 2017Aircraft	Apr. 30, 2017USD ($)	Apr. 30, 2017Aircraft	Apr. 30, 2017Asset	Sep. 30, 2017Aircraft	Jun. 30, 2017Aircraft	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)
Subsequent Event [Line Items]
Gain on financing lease | $							$ 297,400	$ 0
Embraer 175 Aircraft [Member] | Forecast [Member]
Subsequent Event [Line Items]
Number of aircraft purchased					1	2
Subsequent Event [Member] | Turboprop Aircraft [Member] | Held for Lease [Member]
Subsequent Event [Line Items]
Number of assets returned			2
Gain on financing lease | $		$ 271,600
Subsequent Event [Member] | Engines [Member] | Held for Lease [Member]
Subsequent Event [Line Items]
Number of assets returned			2	2
Subsequent Event [Member] | Embraer 175 Aircraft [Member]
Subsequent Event [Line Items]
Number of aircraft purchased	3