Mega Matrix (MPU) 10-Q 15 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 15, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	AEROCENTURY CORP
Entity Central Index Key	0001036848
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		1,545,884
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Assets:
Cash and cash equivalents	$ 8,045,200	$ 1,542,500
Securities	121,000	121,000
Accounts receivable, including deferred rent of $1,250,000 and $869,600 at March 31, 2019 and December 31, 2018, respectively	5,131,100	3,967,200
Finance leases receivable	14,249,300	15,250,900
Aircraft and aircraft engines held for lease, net of accumulated depreciation of $36,133,500 and $36,675,500 at March 31, 2019 and December 31, 2018, respectively	174,310,900	184,019,900
Assets held for sale	10,134,800	10,223,300
Property, equipment and furnishings, net of accumulated depreciation of $4,000 and $2,200 at March 31, 2019 and December 31, 2018, respectively	68,500	69,100
Lease right of use, net of accumulated amortization of $100,300 at March 31, 2019	1,372,500	0
Favorable lease acquired, net of accumulated amortization of $61,700 at December 31, 2018	0	863,300
Deferred tax asset	315,100	254,900
Prepaid expenses and other assets	365,300	840,100
Total assets	214,113,700	217,152,200
Liabilities:
Accounts payable and accrued expenses	412,100	1,025,600
Accrued payroll	100,600	78,600
Notes payable and accrued interest, net of unamortized debt issuance costs of $5,497,700 and $674,300 at March 31, 2019 and December 31, 2018, respectively	131,230,700	131,092,200
Derivative liability	941,000	0
Lease liability	573,900	0
Maintenance reserves	25,796,900	28,527,500
Accrued maintenance costs	666,700	463,300
Security deposits	3,052,800	3,367,800
Unearned revenues	4,594,600	3,274,800
Deferred income taxes	7,020,400	7,537,100
Income taxes payable	172,100	497,400
Total liabilities	174,561,800	175,864,300
Commitments and contingencies (Note 9)
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, 1,759,216 shares issued and 1,545,884 outstanding at March 31, 2019 and December 31, 2018	1,800	1,800
Paid-in capital	16,782,800	16,782,800
Retained earnings	26,232,400	27,540,600
Accumulated other comprehensive income	(427,800)	0
Shareholders equity before treasury stock	42,589,200	44,325,200
Treasury stock at cost, 213,332 shares at March 31, 2019 and December 31, 2018, respectively	(3,037,300)	(3,037,300)
Total stockholders' equity	39,551,900	41,287,900
Total liabilities and stockholders' equity	$ 214,113,700	$ 217,152,200

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Assets:
Accounts receivable, deferred rent	$ 1,250,000	$ 869,600
Aircraft and aircraft engines held for lease, accumulated depreciation	36,133,500	36,675,500
Accumulated depreciation	4,000	2,200
Accumulated amortization, lease right of use	100,300
Accumulated amortization, favorable lease acquired		61,700
Liabilities:
Unamortized debt issuance costs	$ 5,497,700	$ 674,300
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)	1,759,216	1,759,216
Common stock, outstanding (in shares)	1,545,884	1,545,884
Treasury stock (in shares)	213,332	213,332

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenues and other income:
Operating lease revenue	$ 7,148,300	$ 6,462,900
Maintenance reserves revenue, net	0	1,050,000
Finance lease revenue	236,100	379,000
Net gain/(loss) on disposal of assets	178,300	(8,200)
Other income	4,200	1,400
Total Income	7,566,900	7,885,100
Expenses:
Depreciation	3,200,700	2,941,900
Interest	2,912,400	2,254,100
Provision for impairment in value of aircraft	1,408,400	0
Professional fees, general and administrative and other	825,500	577,400
Salaries and employee benefits	599,000	0
Management fees	0	1,446,800
Maintenance	107,400	91,200
Insurance	140,500	79,700
Other taxes	37,600	22,600
Total expenses	9,231,500	7,413,700
(Loss)/income before income tax benefit	(1,664,600)	471,400
Income tax (benefit)/provision	(356,400)	154,100
Net (loss)/income	$ (1,308,200)	$ 317,300
(Loss)/earnings per share:
Basic (in dollars per share)	$ (0.85)	$ 0.22
Diluted (in dollars per share)	$ (0.85)	$ 0.22
Weighted average shares used in (loss)/earnings per share computations:
Basic (in shares)	1,545,884	1,416,699
Diluted (in shares)	1,545,884	1,416,699

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Condensed Consolidated Statements of Comprehensive Income (Unaudited) [Abstract]
Net (loss)/income	$ (1,308,200)	$ 317,300
Other comprehensive loss:
Unrealized losses on derivative instruments	(544,800)	0
Tax benefit related to items of other comprehensive loss	117,000	0
Other comprehensive loss	(427,800)	0
Total comprehensive (loss)/income	$ (1,736,000)	$ 317,300

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income [Member]	Total
Balance at Dec. 31, 2017	$ 1,600	$ 14,780,100	$ 35,621,800	$ (3,036,800)	$ 0	$ 47,366,700
Balance (in shares) at Dec. 31, 2017	1,416,699
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ 0	0	317,300	0	0	317,300
Accumulated other comprehensive income						0
Balance at Mar. 31, 2018	$ 1,600	14,780,100	35,939,100	(3,036,800)	0	47,684,000
Balance (in shares) at Mar. 31, 2018	1,416,699
Balance at Dec. 31, 2018	$ 1,800	16,782,800	27,540,600	(3,037,300)	0	$ 41,287,900
Balance (in shares) at Dec. 31, 2018	1,545,884					1,545,884
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ 0	0	(1,308,200)	0	0	$ (1,308,200)
Accumulated other comprehensive income	0	0	0	0	(427,800)	(427,800)
Balance at Mar. 31, 2019	$ 1,800	$ 16,782,800	$ 26,232,400	$ (3,037,300)	$ (427,800)	$ 39,551,900
Balance (in shares) at Mar. 31, 2019	1,545,884					1,545,884

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Condensed Consolidated Statements of Cash Flows (Unaudited) [Abstract]
Net cash provided by operating activities	$ 3,957,200	$ 4,552,000
Investing activities:
Proceeds from sale of aircraft and aircraft engines held for lease, net of re-sale fees	1,710,600	3,195,000
Proceeds from sale of assets held for sale, net of re-sale fees	1,079,900	1,683,500
Investment in aircraft parts and acquisition costs	0	(1,236,000)
Net cash provided by investing activities	2,790,500	3,642,500
Financing activities:
Issuance of notes payable - Credit Facility	5,100,000	0
Repayment of notes payable - Credit Facility	(33,800,000)	(11,000,000)
Issuance of notes payable - Term Loans	44,310,000	0
Repayment of notes payable - UK LLC SPE Financing	(9,211,100)	0
Repayment of notes payable - Term Loans	(1,580,700)	(1,059,200)
Debt issuance costs	(5,063,200)	0
Net cash used in financing activities	(245,000)	(12,059,200)
Net increase/(decrease) in cash and cash equivalents	6,502,700	(3,864,700)
Cash and cash equivalents, beginning of period	1,542,500	8,657,800
Cash and cash equivalents, end of period	$ 8,045,200	$ 4,793,100

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Condensed Consolidated Statements of Cash Flows (Unaudited) [Abstract]
Interest paid	$ 2,014,200	$ 2,055,100
Income taxes paid	$ 421,400	$ 0

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2019
Organization and Summary of Significant Accounting Policies [Abstract]
Organization and Summary of Significant Accounting Policies	1. Organization and Summary of Significant Accounting Policies (a) The Company and Basis of Presentation AeroCentury Corp. (“AeroCentury”) is a Delaware corporation incorporated in 1997. AeroCentury together with its consolidated subsidiaries is referred to as the “Company.” In August 2016, AeroCentury 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 third-party financing (“UK LLC SPE Financing” or “special purpose financing”) separate from AeroCentury’s credit facility (the “Credit Facility”). The UK LLC SPE Financing was repaid in full in February 2019 as part of a refinancing involving new non-recourse term loans totaling approximately $44.3 million (“Term Loans”) made to ACY 19002, ACY 19003 and two other newly formed special purpose subsidiaries of AeroCentury. See Note 4(b) for more information about the Term Loans. On October 1, 2018, AeroCentury acquired JetFleet Holding Corp. (“JHC”) in a reverse triangular merger (“Merger”) for consideration of approximately $2.9 million in cash and 129,217 shares of common stock of AeroCentury, as determined pursuant to an Agreement and Plan of Merger (the “Merger Agreement”) entered into by AeroCentury, JHC and certain other parties in October 2017. JHC is the sole shareholder of JetFleet Management Corp. (“JMC”), which is an integrated aircraft management, marketing and financing business and the manager of the Company’s assets. Upon completion of the Merger, JHC became a wholly-owned subsidiary of the Company, and as a result, JHC’s results are included in the Company’s consolidated financial statements beginning on October 1, 2018. In November 2018, AeroCentury formed two wholly-owned subsidiaries, ACY SN 15129 LLC (“ACY 15129”) and ACY E-175 LLC (“ACY E-175”), for the purpose of refinancing four of the Company’s aircraft using the Term Loans. Because the Term Loans did not close until February 2019, the subject aircraft remained as collateral under the Credit Facility as of December 31, 2018, and ACY 15129 and ACY E-175 had no activity in 2018. Financial information for AeroCentury and its consolidated subsidiaries 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 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. March All intercompany balances and transactions have been eliminated in consolidation. (b) Use of Estimates 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 condensed 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, the assumptions used to value the Company’s derivative instruments and the amounts recorded as allowances for doubtful accounts. (c) Comprehensive Income The Company reflects changes in the fair value of its interest rate swap derivatives that are designated as hedges in other comprehensive income. Such amounts are reclassified into earnings in the periods in which the hedged transaction occurs, and are included in interest expense. (d) Finance Leases As of March 31 The Company recognized interest earned on finance leases in the amount of and $379,000 in the first quarters of 2019 and 2018, respectively. (e) Interest Rate Hedging During the first quarter of 2019, the Company entered into certain derivative instruments to mitigate its exposure to variable interest rates under the Term Loans debt and a portion of the Credit Facility debt. Hedge accounting is applied to such a transaction only if specific criteria have been met, the transaction is deemed to be “highly effective” and the transaction has been designated as a hedge at its inception. Under hedge accounting treatment, generally, the effects of derivative transactions are recorded in earnings for the period in which the hedge transaction affects earnings. A change in value of a hedging instrument is reported as a component of other comprehensive income and is reclassified into earnings in the period in which the transaction being hedged affects earnings. (f) Recent Accounting Pronouncements Topic 842 In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (“ ”) The new standard requires a lessor to classify leases as sales-type, finance, or operating. A lease is treated as sales-type 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 finance lease. If the lessor does not convey risks and rewards or control, an operating lease results. As a result of application of the practical expedients, the Company was not required to alter the classification or carrying value of its leased or finance lease assets. Lessee reporting was changed by the new standard, requiring that the balance sheet reflect a liability for most operating lease obligations as well as a “right of use” asset. As such, the Company was required to record a lease obligation of approximately $600,000 in connection with the lease of its headquarters office, and to increase the capitalized leasehold interest / right of use asset by a similar amount upon adoption, as discussed in Note 6. There was no effect on retained earnings recorded as a result of adoption of the standard. The Company did not elect the lessee practical expedient to combine the lease and non-lease components. ASU 2016-13 The FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) . ASU 2017-12 In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ASU 2018-13 In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820)

Aircraft Lease Assets

Aircraft Lease Assets	3 Months Ended
	Mar. 31, 2019
Aircraft Lease Assets [Abstract]
Aircraft Lease Assets	2. Aircraft Lease Assets As discussed in Note 1, the Company adopted Topic 842 on January 1, 2019, and elected to use certain practical expedients that resulted in continuing the classification and capitalized indirect cost associated with its operating and finance leases. As such, there was no adjustment to its accounts related to the carrying value of its sales-type and finance leases or capitalized initial direct costs, and its leases continue to be accounted for the same as they had been before adoption of the new accounting standard. The Company’s leases are normally “triple net leases” under which the lessee is obligated to bear all costs, including tax, maintenance and insurance, on the leased assets during the term of the lease. In most cases, the lessee is obligated to provide a security deposit or letter of credit to secure its performance obligations under the lease, and in some cases is required to pay maintenance reserves based on utilization of the aircraft, which reserves are available for qualified maintenance costs during the lease term and may or may not be refundable at the end of the lease. Typically, the leases also contain minimum return conditions, as well as one form or another of economic adjustment payable by the lessee (and in some instances by the lessor) for amounts by which the various aircraft or engine components are worse or better than a targeted condition set forth in the lease. Some leases contain renewal or purchase options, although the Company’s sales-type and finance leases all contain a bargain purchase option at lease end which the Company expects the lessees to exercise. Because all of the Company’s aircraft or engine leases transfer use and possession of the aircraft or engine to the lessee and contain no other substantial undertakings by the Company, the Company has concluded that all of its lease contracts qualify for lease accounting under Topic 842. Certain lessee payments of what would otherwise be lessor costs (such as insurance and property taxes) are excluded from both revenue and expense. The Company evaluates the expected return on its leased assets by considering both the rents receivable over the lease term, any expected additional consideration at lease end, and the residual value of the asset at the end of the lease. In some cases, the Company depreciates the asset to the expected residual value because it expects to sell the asset at lease end; in other cases, it may expect to re-lease the asset to the same or another lessee and the depreciation term and related residual value will differ from the initial lease term and residual value. Residual value is estimated by considering future estimates provided by independent appraisers, although it may be adjusted by the Company based on expected return conditions or location, specific lessee considerations, or other market information. Two of the Company’s operating lease assets are subject to manufacturer residual value guarantees at the end of their lease terms in the fourth quarter of 2020 and totaling approximately $20 million. Three additional aircraft are subject to residual value guarantees, but the Company expects to retain the aircraft after the date of such guarantees and re-lease them to the current or other lessees. The Company considers the best market for managing and/or selling its assets at the end of its leases, although it does not expect to retain ownership of the assets under finance leases given the lessees’ bargain purchase options. (a) Assets Held for Lease At March 31, 2019 March 31 December 31 Type Number Owned % of net book value Number owned % of net book value Regional jet aircraft 13 85 % 13 81 % Turboprop aircraft 3 15 % 4 18 % Engines - - % 1 1 % The Company purchased no aircraft during the first quarter of 2019. During the first quarter of 2019, the Company sold one aircraft held for lease for cash and recorded a net gain of $151,600. The Company also reclassified an engine from held for lease to held for sale. None of the Company’s aircraft and engines held for lease were off lease at March As of March 31 Years ending December 31 Remainder of 2019 $ 20,493,300 2020 25,701,400 2021 18,600,000 2022 16,642,400 2023 12,959,600 Thereafter 21,547,500 $ 115,944,200 (b) Sales-Type and Finance Leases At March 31, 2019 March 31 2019 December 31, 2018 Gross minimum lease payments receivable $ 15,869,400 $ 17,107,100 Less unearned interest (1,620,100 ) (1,856,200 ) Finance leases receivable $ 14,249,300 $ 15,250,900 As of March 31, 2019 Years ending December 31 Remainder of 2019 $ 3,647,800 2020 4,208,600 2021 4,805,000 2022 3,208,000 $ 15,869,400

Assets Held for Sale

Assets Held for Sale	3 Months Ended
	Mar. 31, 2019
Assets Held for Sale [Abstract]
Assets Held for Sale	3. Assets Held for Sale During the first quarter of 2019, based on its sales price, the Company reclassified a spare engine that was previously held for lease as being held for sale and recorded an impairment provision of $487,400. The Company also recorded impairment provisions totaling $921,000 for two turboprop aircraft based on expected sales proceeds. The Company expects the sales of the engine and two aircraft to occur during the second quarter. In addition to the spare engine and two aircraft noted above, assets held for sale at March During the first quarter of 2019, the Company received $216,900 in cash and accrued $94,400 in receivables for parts sales. These amounts were accounted for as follows: $133,100 reduced accounts receivable for parts sales accrued in 2018; $151,500 reduced the carrying value of the parts; and $26,700 was recorded as gains in excess of the carrying value of the parts. During the first quarter of 2018, the Company received $931,800 in cash and accrued $10,600 in receivables for parts sales. These amounts were accounted for as follows: $779,700 reduced accounts receivable for parts sales accrued in 2017; $144,600 reduced the carrying value of the parts; and $18,100 was recorded as gains in excess of the carrying value of the parts.

Notes Payable and Accrued Inter

Notes Payable and Accrued Interest	3 Months Ended
	Mar. 31, 2019
Notes Payable and Accrued Interest [Abstract]
Notes Payable and Accrued Interest	4. Notes Payable and Accrued Interest At March 31, 2019 and December 31, 2018, the Company’s notes payable and accrued interest consisted of the following: March 31 2019 December 31 2018 Credit Facility: Principal $ 93,700,000 $ 122,400,000 Unamortized debt issuance costs (4,129,200 ) (674,300 ) Accrued interest 180,700 139,300 Special purpose financing: Principal: UK SPE Financing - 9,211,200 Term Loans 42,729,400 - Unamortized debt issuance costs (1,368,500 ) - Accrued interest 118,300 16,000 $ 131,230,700 $ 131,092,200 (a) Credit Facility Before modification, the Company’s Credit Facility was provided by a syndicate of banks and was secured by all of the assets of the Company, including its aircraft and engine portfolio, except for the two aircraft in the UK LLC SPE Financing. In February 2019, the Company entered into a Third Amended and Restated Loan and Security Agreement to the Credit Facility (the “Restated Loan Agreement”) which, among other things, extended the maturity date of the Credit Facility with the lenders thereunder from May 31, 2019 to February 19, 2023; decreased the maximum availability thereunder from $170 million (with the ability for the Company to request an increase up to $180 million) to $145 million (with the ability for the Company to request an increase to up to $160 million); and modified certain of the Company’s financial ratio covenants. Borrowings under the Credit Facility will continue to bear interest at floating rates that reset periodically to a market benchmark rate plus a credit margin, and the Company will also continue to be obligated to pay a quarterly fee on any unused portion of the Credit Facility at a rate of 0.50%. The Credit Facility requires that within 30 days after closing of the financing, the Company enter into an interest rate protection derivative instrument with respect to a minimum $50 million of the outstanding loan balance at closing. In March 2019, the Company entered into interest rate protection instruments with respect to $50 million of its Credit Facility debt. The borrowings under the Restated Loan Agreement are secured by a first priority lien on all of the Company’s assets, including the Company’s aircraft portfolio, except those aircraft that are subject to the Term Loans. The Restated Loan Agreement requires the Company to comply with certain covenants relating to payment of taxes, preservation of existence, maintenance of property and insurance, and periodic financial reporting, as well as compliance with several financial ratio covenants. The Restated Loan Agreement restricts the Company with respect to certain corporate level transactions and transactions with affiliates or subsidiaries without consent of the lenders. Events of default under the Restated Loan Agreement include failure to make a required payment within three business days of a due date or to comply with other obligations under the Restated Loan Agreement (subject to specified cure periods for certain events of default), a default under other indebtedness of the Company, and a change in control of the Company. Remedies for default under the Restated Loan Agreement include acceleration of the outstanding debt and exercise of any remedies available under applicable law, including foreclosure on the collateral securing the borrowings under the Credit Facility. As of December 31, 2018, the Company was not in compliance with the interest coverage, debt service coverage, no-net-loss and revenue concentration covenants under the Credit Facility. The noncompliance resulted primarily from the Company recording aircraft impairment charges and losses on sale of aircraft totaling $3,408,700 during 2018. The amendments included in the Restated Loan Agreement in February 2019 discussed above cured the December 31, 2018 noncompliance and revised the compliance requirements through the extended maturity date of the Credit Facility. The unused amount of the Credit Facility was $51,300,000 and $47,600,000 as of March 31, 2019 The weighted average interest rate on the Credit Facility was 6.00% and 5.92% at March 31, 2019 and December 31, 2018 respectively. (b) Term Loans On February 8, 2019, the Company, through four wholly owned subsidiary limited liability companies (“LLC Borrowers”), each entered into a Term Loan Agreement with the U.S. branch of a German bank (“Term Loan Lender”) that provides for six separate term loans with an aggregate principal amount of $44.3 million. Each of the Term Loans is secured by a first priority security interest in a specific aircraft (“Term Loan Collateral Aircraft”) owned by an LLC Borrower, the lease for such aircraft, and a pledge by the Company of its membership interest in each of the LLC Borrowers, pursuant to a Security Agreement (the “Security Agreement”) among the LLC Borrowers and a security trustee, and certain pledge agreements. Two of the Term Loan Collateral Aircraft that are owned by the Company’s two UK special purpose entities were previously financed using special purpose financing. The interest rates payable under the Term Loans vary by aircraft, and are based on a fixed margin above either 30-day or 3-month LIBOR. The proceeds of the Term Loans were used to pay down the Credit Facility and pay off the UK LLC SPE Financing. The maturity of each Term Loan varies by aircraft, with the first Term Loan maturing in October 2020 and the last Term Loan maturing in May 2025. The debt under the Term Loans is expected to be fully amortized by rental payments received by the LLC Borrowers from the lessees of the Term Loan Collateral Aircraft during the terms of their respective leases and remarketing proceeds. The Term Loans include covenants that impose various restrictions and obligations on the LLC Borrowers, including covenants that require the LLC Borrowers to obtain the Term Loan Lender’s consent before they can take certain specified actions and certain events of default. If such an event of default occurs, subject to certain cure periods for certain events of default, the Term Loan Lender would have the right to terminate its obligations under the Term Loans, declare all or any portion of the amounts then outstanding under the Term Loans to be accelerated and due and payable, and/or exercise any other rights or remedies it may have under applicable law, including foreclosing on the assets that serve as security for the Term Loans.

Derivative Instruments

Derivative Instruments	3 Months Ended
	Mar. 31, 2019
Derivative Instruments [Abstract]
Derivative Instruments	5. Derivative Instruments The Company was not party to any derivative instruments in 2018. In the first quarter of 2019, the Company entered into eight fixed pay/receive variable interest rate swaps (the “Swaps”). Six of the Swaps were entered into by the LLC Borrowers and have reduced notional amounts that mirror the amortization under the six Term Loans entered into by the LLC Borrowers, effectively converting each of the six Term Loans from variable to fixed rate. Each of these six Swaps extend for the duration of the corresponding Term Loan, with maturities from 2020 through 2025. The other two Swaps were entered into by the Company and have notional amounts that total $50 million and extend through the maturity of the Credit Facility in February of 2023. The Company entered into the Swaps in order to reduce its exposure to the risk of increased interest rates. With respect to the six Swaps entered into by the LLC Borrowers, it was deemed necessary so that the anticipated cash flows of such entities, which arise entirely from the lease rents for the aircraft owned by such entities, would be sufficient to make the required loan principal and interest payments, thereby preventing default so long as the lessees met their lease rent obligations. The two Swaps entered into by the parent company protect against the exposure to interest rate increases on $50 million of the Company’s Credit Facility debt. The Company estimates the fair value of derivative instruments using a discounted cash flow technique and uses creditworthiness inputs that corroborate observable market data evaluating the Company’s and counterparties’ risk of non-performance. Valuation of the derivative instruments requires certain assumptions for underlying variables and the use of different assumptions would result in a different valuation. Management believes it has applied assumptions consistently during the period. The Company applies hedge accounting for seven of its eight swaps and accounts for the change in fair value of its cash flow hedges through other comprehensive income for all derivative instruments. The Company has designated seven of the Swaps as cash flow hedges. Changes in the fair value of the hedged swaps are included in other comprehensive income, which amounts are reclassified into earnings in the period in which the transaction being hedged affects earnings. One of the Swaps is not eligible under its terms for hedge treatment. Changes in fair value of non-hedge derivatives are reflected in earnings in the periods in which they occur. As such, the Company has reflected the following amounts in its income and other comprehensive income amounts: Change in value of Swaps $ 408,400 Other items (1,300 ) Included in interest expense $ 407,100 The following amount was included in other comprehensive income, before tax: Change in value of hedged Swaps $ (544,800 ) Amounts included in other comprehensive income will be reclassified into earnings in the period in which the hedged item affects earnings, i.e. with future settlements of the Swaps. None of the current balance of accumulated other comprehensive income is expected to be reclassified in the next twelve months. At March 31, 2019, the fair value of the Company’s Swaps was as follows: Designated interest rate hedges fair value $ (895,800 ) Other interest rate swap (45,200 ) Total derivative (liability) $ (941,000 ) The Company evaluates the creditworthiness of the counterparties under its hedging agreements. The swap counterparties for the Swaps are large financial institutions in the United States that possessed an investment grade credit rating. Based on this rating, the Company believes that the counterparties were creditworthy and that their continuing performance under the hedging agreements was probable.

Lease Right of Use Asset and Li

Lease Right of Use Asset and Liability	3 Months Ended
	Mar. 31, 2019
Lease Right of Use Asset and Liability [Abstract]
Lease Right of Use Asset and Liability	6. Lease Right of Use Asset and Liability The Company is a lessee under a lease of the office space it occupies in Burlingame, California, which expires in June of 2020, but also provides for two, successive one-year lease extension options for amounts that are substantially below the market rent for the property. The lease provides for monthly rental payments according to a fixed schedule of increasing rent payments. As a result of the below-market extension options, the Company has determined that it is reasonably certain that it will extend the lease and has, therefore, included such extended term in its calculation of the right of use asset (“ROU Asset”) and lease liability recognized in connection with the lease. In addition to a fixed monthly payment schedule, the office lease also includes an obligation for the Company to make future variable payments for certain common areas and building operating and lessor costs, which have been and will be recognized as expense in the periods in which they are incurred. As a direct pass-through of applicable expense, such costs have not been allocated as a component of the lease. The ROU Asset includes the amortized value of both the amount of liability recognized at January 1, 2019 upon adoption of Topic 842 and the amount attributable to the below market lease component recognized upon acquisition of JHC on October 1, 2018. The lease liability associated with the office lease was calculated by discounting the fixed, minimum lease payments over the remaining lease term, including the below-market extension periods, at a discount rate of 7.25%, which represents the Company’s estimate of the incremental borrowing rate for a collateralized loan for the type of underlying asset that was the subject of the office lease at the time the lease liability was evaluated. The Company estimates that the future minimum lease commitments for base rent of its office space were as follows as of March 31, 2019 and December 31, 2018.: March 31, 2019 December 31, 2018 2019 $ 145,800 $ 193,500 2020 196,400 196,400 2021 199,300 199,300 2022 101,100 101,100 642,600 $ 690,300 Discount (68,700 ) Lease liability at March 31, 2019 $ 573,900 During the quarter ended March 31, 2019, the Company recognized amortization, finance costs and other expense related to the office lease as follows: Fixed rental expense during the quarter $ 110,900 Variable lease expense 32,000 Total lease expense during the quarter $ 142,900 The Company expects that the variable lease expense will total approximately $10,700 monthly through the end of the lease, including the two extension periods.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2019
Fair Value Measurements [Abstract]
Fair Value Measurements	7. Fair Value Measurements 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 As of March 31, 2019, the Company measured the fair value of its interest rate swaps of $92,729,400 (notional amount) based on Level 2 inputs, due to the usage of inputs that can be corroborated by observable market data. The Company estimates the fair value of derivative instruments using a discounted cash flow technique and has used creditworthiness inputs that corroborate observable market data evaluating the Company’s and counterparties’ risk of non-performance. The Swaps had a net fair value of negative $941,000 as of March 31, 2019. In the first quarter of 2019, $408,400 was realized through the income statement as an increase in interest expense. The following table shows, by level within the fair value hierarchy, the Company’s assets at fair value as of March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Money market funds $ 3,157,500 $ 3,157,500 $ - $ - $ 656,400 $ 656,400 $ - $ - Derivatives (941,000 ) - (941,000 ) - - - - - Total $ 2,216,500 $ 3,157,500 $ (941,000 ) $ - $ 656,400 $ 656,400 $ - $ - There were no transfers between Level 1 and Level 2 in either the first quarter of 2019 or 2018, and there were no transfers into or out of Level 3 during the same periods. 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 these and other assets held for sale, by reference to independent appraisals, quoted market prices (e.g., offers to purchase) and other factors. These are considered Level 3 within the fair value hierarchy. 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. The Company recorded impairment charges totaling $1,408,400 on three of its assets held for sale in the first quarter of 2019, which had an aggregate fair value of $3,363,000. The Company recorded no impairment charges during the first quarter of 2018. 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 the Credit Facility, notes payable under special purpose financing and its derivative instruments. The fair value of accounts receivable, accounts payable and the Company’s maintenance reserves and accrued maintenance costs approximates the carrying value of these financial instruments because of their short-term maturities. The fair value of finance lease receivables approximates the carrying value as discussed in Note 1( d) 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 dates of the condensed consolidated balance sheets, and therefore that the outstanding principal and accrued interest of $93,880,700 and $122,539,300 at March Before their repayment in February 2019 in connection with the Term Loans refinancing, the amounts payable under the UK LLC SPE Financing were payable through the fourth quarter of 2020 and bore a fixed rate of interest, as described in Note 4(b). As discussed above, during February 2019, the UK LLC SPE Financing and four assets that previously served as collateral under the Credit Facility were refinanced using the Term Loans. The Company believes the effective interest rate under the special purpose financings approximates current market rates for such indebtedness at the dates of the condensed consolidated balance sheets, and therefore that the outstanding principal and accrued interest of $42,847,700 and $9,227,200 approximate their fair values at March 31 There were no transfers in or out of assets or liabilities measured at fair value under Level 3 during 2018 or the three months ended March 31, 2019.

Acquisition of Management Compa

Acquisition of Management Company	3 Months Ended
	Mar. 31, 2019
Acquisition of Management Company [Abstract]
Acquisition of Management Company	8. Acquisition of Management Company In October 2017, AeroCentury, JHC and certain other parties entered into the Merger Agreement for the acquisition of JHC by AeroCentury for consideration of approximately $2.9 million in cash and 129,217 shares of common stock of AeroCentury, as determined pursuant to the Merger Agreement. JHC is the sole shareholder of JMC, which is the manager of the Company’s assets as described in Note 11 below. The Merger was consummated on October 1, 2018. AeroCentury As a result of the Merger, the Company indirectly assumed all of JHC’s assets, comprised primarily of securities, prepaid expenses and an office lease, as well as liabilities of approximately $0.9 million. As a subsidiary of the Company, JHC’s results are included in the Company’s condensed consolidated financial statements beginning on October 1, 2018. During the quarters ended March 31, 2019 and 2018, the Company accrued $0 and $200,000, respectively, of expenses related to the Merger transaction. Such expenses are included in professional fees, general and administrative and other in the Company’s condensed consolidated statements of operations.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies In the ordinary course of the Company’s business, the Company may be 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 (Loss)_Earnings

Computation of (Loss)/Earnings Per Share	3 Months Ended
	Mar. 31, 2019
Computation of (Loss)/Earnings Per Share [Abstract]
Computation of Earnings Per Share	10. Computation of (Loss)/Earnings Per Share Basic and diluted earnings per share are calculated as follows: For the Three Months Ended March 2019 2018 Net (loss)/income $ (1,308,200 ) $ 317,300 Weighted average shares outstanding for the period used in computation of basic and diluted (loss)/earnings per share 1,545,884 1,416,699 Basic (loss)/earnings per share $ (0.85 ) $ 0.22 Diluted (loss)/earnings per share $ (0.85 ) $ 0.22 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 is 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, 2019
Related Party Transactions [Abstract]
Related Party Transactions	11 Related Party Transactions See the description of the Merger Agreement between the Company and JHC in Note 8 above, pursuant to which the Company acquired JHC in the Merger and JHC became a wholly owned subsidiary of the Company on October 1, 2018. Before completion of the Merger, the Company’s portfolio of aircraft assets was managed and administered under the terms of a management agreement with JMC (the “Management Agreement”). Certain officers of the Company were also officers of JHC and JMC and held significant ownership positions in both JHC and the Company, and JHC was also a significant stockholder of AeroCentury. Under the Management Agreement, JMC received a monthly management fee based on the net asset value of the Company’s assets under management. JMC also received an acquisition fee for locating assets for the Company. Acquisition fees were included in the cost basis of the asset purchased. JMC also received a remarketing fee in connection with the re-lease or sale of the Company’s assets. Remarketing fees were amortized over the applicable lease term or included in the gain or loss on sale. Fees incurred during the three months ended March 31, 2018 consisted of $1,446,800 of management fees.

Organization and Summary of S_2

Organization and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
Organization and Summary of Significant Accounting Policies [Abstract]
The Company and Basis of Presentation	(a) The Company and Basis of Presentation AeroCentury Corp. (“AeroCentury”) is a Delaware corporation incorporated in 1997. AeroCentury together with its consolidated subsidiaries is referred to as the “Company.” In August 2016, AeroCentury 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 third-party financing (“UK LLC SPE Financing” or “special purpose financing”) separate from AeroCentury’s credit facility (the “Credit Facility”). The UK LLC SPE Financing was repaid in full in February 2019 as part of a refinancing involving new non-recourse term loans totaling approximately $44.3 million (“Term Loans”) made to ACY 19002, ACY 19003 and two other newly formed special purpose subsidiaries of AeroCentury. See Note 4(b) for more information about the Term Loans. On October 1, 2018, AeroCentury acquired JetFleet Holding Corp. (“JHC”) in a reverse triangular merger (“Merger”) for consideration of approximately $2.9 million in cash and 129,217 shares of common stock of AeroCentury, as determined pursuant to an Agreement and Plan of Merger (the “Merger Agreement”) entered into by AeroCentury, JHC and certain other parties in October 2017. JHC is the sole shareholder of JetFleet Management Corp. (“JMC”), which is an integrated aircraft management, marketing and financing business and the manager of the Company’s assets. Upon completion of the Merger, JHC became a wholly-owned subsidiary of the Company, and as a result, JHC’s results are included in the Company’s consolidated financial statements beginning on October 1, 2018. In November 2018, AeroCentury formed two wholly-owned subsidiaries, ACY SN 15129 LLC (“ACY 15129”) and ACY E-175 LLC (“ACY E-175”), for the purpose of refinancing four of the Company’s aircraft using the Term Loans. Because the Term Loans did not close until February 2019, the subject aircraft remained as collateral under the Credit Facility as of December 31, 2018, and ACY 15129 and ACY E-175 had no activity in 2018. Financial information for AeroCentury and its consolidated subsidiaries 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 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. March
Use of Estimates	(b) Use of Estimates 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 condensed 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, the assumptions used to value the Company’s derivative instruments and the amounts recorded as allowances for doubtful accounts.
Comprehensive Income	(c) Comprehensive Income The Company reflects changes in the fair value of its interest rate swap derivatives that are designated as hedges in other comprehensive income. Such amounts are reclassified into earnings in the periods in which the hedged transaction occurs, and are included in interest expense.
Finance Leases	(d) Finance Leases As of March 31 The Company recognized interest earned on finance leases in the amount of and $379,000 in the first quarters of 2019 and 2018, respectively.
Interest Rate Hedging	(e) Interest Rate Hedging During the first quarter of 2019, the Company entered into certain derivative instruments to mitigate its exposure to variable interest rates under the Term Loans debt and a portion of the Credit Facility debt. Hedge accounting is applied to such a transaction only if specific criteria have been met, the transaction is deemed to be “highly effective” and the transaction has been designated as a hedge at its inception. Under hedge accounting treatment, generally, the effects of derivative transactions are recorded in earnings for the period in which the hedge transaction affects earnings. A change in value of a hedging instrument is reported as a component of other comprehensive income and is reclassified into earnings in the period in which the transaction being hedged affects earnings.
Recent Accounting Pronouncements	(f) Recent Accounting Pronouncements Topic 842 In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (“ ”) The new standard requires a lessor to classify leases as sales-type, finance, or operating. A lease is treated as sales-type 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 finance lease. If the lessor does not convey risks and rewards or control, an operating lease results. As a result of application of the practical expedients, the Company was not required to alter the classification or carrying value of its leased or finance lease assets. Lessee reporting was changed by the new standard, requiring that the balance sheet reflect a liability for most operating lease obligations as well as a “right of use” asset. As such, the Company was required to record a lease obligation of approximately $600,000 in connection with the lease of its headquarters office, and to increase the capitalized leasehold interest / right of use asset by a similar amount upon adoption, as discussed in Note 6. There was no effect on retained earnings recorded as a result of adoption of the standard. The Company did not elect the lessee practical expedient to combine the lease and non-lease components. ASU 2016-13 The FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) . ASU 2017-12 In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ASU 2018-13 In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820)

Aircraft Lease Assets (Tables)

Aircraft Lease Assets (Tables)	3 Months Ended
	Mar. 31, 2019
Aircraft Lease Assets [Abstract]
Aircraft and Aircraft Engines Held for Lease	At March 31, 2019 March 31 December 31 Type Number Owned % of net book value Number owned % of net book value Regional jet aircraft 13 85 % 13 81 % Turboprop aircraft 3 15 % 4 18 % Engines - - % 1 1 %
Minimum Future Lease Revenue Payments Receivable	As of March 31 Years ending December 31 Remainder of 2019 $ 20,493,300 2020 25,701,400 2021 18,600,000 2022 16,642,400 2023 12,959,600 Thereafter 21,547,500 $ 115,944,200
Net Investment Included in Finance Leases and Direct Financing Leases Receivable	At March 31, 2019 March 31 2019 December 31, 2018 Gross minimum lease payments receivable $ 15,869,400 $ 17,107,100 Less unearned interest (1,620,100 ) (1,856,200 ) Finance leases receivable $ 14,249,300 $ 15,250,900
Minimum Future Payments Receivable Under Finance Leases	As of March 31, 2019 Years ending December 31 Remainder of 2019 $ 3,647,800 2020 4,208,600 2021 4,805,000 2022 3,208,000 $ 15,869,400

Notes Payable and Accrued Int_2

Notes Payable and Accrued Interest (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Payable and Accrued Interest [Abstract]
Notes Payable and Accrued Interest	At March 31, 2019 and December 31, 2018, the Company’s notes payable and accrued interest consisted of the following: March 31 2019 December 31 2018 Credit Facility: Principal $ 93,700,000 $ 122,400,000 Unamortized debt issuance costs (4,129,200 ) (674,300 ) Accrued interest 180,700 139,300 Special purpose financing: Principal: UK SPE Financing - 9,211,200 Term Loans 42,729,400 - Unamortized debt issuance costs (1,368,500 ) - Accrued interest 118,300 16,000 $ 131,230,700 $ 131,092,200

Derivative Instruments (Tables)

Derivative Instruments (Tables)	3 Months Ended
	Mar. 31, 2019
Derivative Instruments [Abstract]
Amounts in Income and Other Comprehensive Income Amounts	As such, the Company has reflected the following amounts in its income and other comprehensive income amounts: Change in value of Swaps $ 408,400 Other items (1,300 ) Included in interest expense $ 407,100 The following amount was included in other comprehensive income, before tax: Change in value of hedged Swaps $ (544,800 )
Fair Value of Swaps	At March 31, 2019, the fair value of the Company’s Swaps was as follows: Designated interest rate hedges fair value $ (895,800 ) Other interest rate swap (45,200 ) Total derivative (liability) $ (941,000 )

Lease Right of Use Asset and _2

Lease Right of Use Asset and Liability (Tables)	3 Months Ended
	Mar. 31, 2019
Lease Right of Use Asset and Liability [Abstract]
Estimated Future Minimum Lease Commitments	The Company estimates that the future minimum lease commitments for base rent of its office space were as follows as of March 31, 2019 and December 31, 2018.: March 31, 2019 December 31, 2018 2019 $ 145,800 $ 193,500 2020 196,400 196,400 2021 199,300 199,300 2022 101,100 101,100 642,600 $ 690,300 Discount (68,700 ) Lease liability at March 31, 2019 $ 573,900
Amortization, Finance Costs and Other Expenses	During the quarter ended March 31, 2019, the Company recognized amortization, finance costs and other expense related to the office lease as follows: Fixed rental expense during the quarter $ 110,900 Variable lease expense 32,000 Total lease expense during the quarter $ 142,900

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2019
Fair Value Measurements [Abstract]
Assets (Liabilities) Measured and Recorded at Fair Value on a Recurring Basis	The following table shows, by level within the fair value hierarchy, the Company’s assets at fair value as of March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Money market funds $ 3,157,500 $ 3,157,500 $ - $ - $ 656,400 $ 656,400 $ - $ - Derivatives (941,000 ) - (941,000 ) - - - - - Total $ 2,216,500 $ 3,157,500 $ (941,000 ) $ - $ 656,400 $ 656,400 $ - $ -

Computation of (Loss)_Earning_2

Computation of (Loss)/Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2019
Computation of (Loss)/Earnings Per Share [Abstract]
Basic and Diluted Earnings Per Share	Basic and diluted earnings per share are calculated as follows: For the Three Months Ended March 2019 2018 Net (loss)/income $ (1,308,200 ) $ 317,300 Weighted average shares outstanding for the period used in computation of basic and diluted (loss)/earnings per share 1,545,884 1,416,699 Basic (loss)/earnings per share $ (0.85 ) $ 0.22 Diluted (loss)/earnings per share $ (0.85 ) $ 0.22

Organization and Summary of S_3

Organization and Summary of Significant Accounting Policies, Company and Basis of Presentation (Details)	Feb. 08, 2019USD ($)Subsidiary	Nov. 30, 2018SubsidiaryAircraft	Oct. 01, 2018USD ($)shares	Aug. 31, 2016Subsidiary	Oct. 31, 2017USD ($)shares
Company and Basis of Presentation [Abstract]
Number of wholly owned subsidiaries formed | Subsidiary	4	2		2
Number of aircraft to be refinanced | Aircraft		4
Term Loans [Member]
Company and Basis of Presentation [Abstract]
Non-recourse term loan	$ 44,310,000
JHC [Member]
Company and Basis of Presentation [Abstract]
Consideration paid in cash			$ 2,900,000		$ 2,900,000
Equity consideration (in shares) | shares			129,217		129,217

Organization and Summary of S_4

Organization and Summary of Significant Accounting Policies, Finance Leases (Details)	3 Months Ended
	Mar. 31, 2019USD ($)AircraftLease	Mar. 31, 2018USD ($)
Finance Leases [Abstract]
Number of aircraft with sales type finance leases	3
Number of aircraft with direct financing leases	3
Number of finance leases | Lease	6
Interest earned on finance lease | $	$ 236,100	$ 379,000

Organization and Summary of S_5

Organization and Summary of Significant Accounting Policies, Recent Accounting Pronouncements (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Operating lease, liability	$ 573,900	$ 0
Operating lease, right to use assets	1,372,500	$ 0
ASU 2016-02 [Member]
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Operating lease, liability	600,000
Operating lease, right to use assets	$ 600,000

Aircraft Lease Assets (Details)

Aircraft Lease Assets (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2019USD ($)AircraftAsset	Mar. 31, 2018USD ($)	Dec. 31, 2018USD ($)Aircraft	Dec. 31, 2017USD ($)
Aircraft and aircraft engines held for lease or sale [Abstract]
Number of operating lease assets subject to manufacturer residual value guarantees | Asset	2
Leased assets residual value	$ 20,000,000
Number of operating lease assets subject to manufacturer residual value guarantees expected to re-lease | Asset	3
Number owned | Aircraft	13		13
Percentage of net book value	85.00%		81.00%
Gain (loss) on sale of aircraft and aircraft parts	$ 178,300	$ (8,200)
Minimum future lease revenue payments receivable under noncancelable operating leases [Abstract]
Remainder of 2019	20,493,300
2020	25,701,400
2021	18,600,000
2022	16,642,400
2023	12,959,600
Thereafter	21,547,500
Total	115,944,200
Net Investment Included in Finance Leases and Direct Financing Leases Receivable [Abstract]
Gross minimum lease payments receivable	15,869,400		$ 17,107,100
Less unearned interest	(1,620,100)		(1,856,200)
Finance leases receivable	14,249,300		$ 15,250,900
Minimum Future Payments Receivable under Finance Leases [Abstract]
Remainder of 2019	3,647,800
2020	4,208,600
2021	4,805,000
2022	3,208,000
Total	$ 15,869,400
Turboprop Aircraft [Member]
Aircraft and aircraft engines held for lease or sale [Abstract]
Number owned | Aircraft	3		4
Percentage of net book value	15.00%		18.00%
Engines [Member]
Aircraft and aircraft engines held for lease or sale [Abstract]
Number owned | Aircraft	0		1
Percentage of net book value	0.00%		1.00%
Held for Sale [Member] | Turboprop Aircraft [Member]
Aircraft and aircraft engines held for lease or sale [Abstract]
Number of assets held for sale | Aircraft	2
Held for Sale [Member] | Aircraft [Member]
Aircraft and aircraft engines held for lease or sale [Abstract]
Number of assets held for sale | Aircraft			3
Held for Sale [Member] | Engines [Member]
Aircraft and aircraft engines held for lease or sale [Abstract]
Number of assets held for sale | Aircraft	1
Held for Sale [Member] | Aircraft Parts [Member]
Aircraft and aircraft engines held for lease or sale [Abstract]
Gain (loss) on sale of aircraft and aircraft parts			$ 26,700	$ 18,100
Held for Lease [Member] | Aircraft [Member]
Aircraft and aircraft engines held for lease or sale [Abstract]
Number of aircraft purchased | Aircraft	0
Number of aircraft sold | Aircraft	1
Gain (loss) on sale of aircraft and aircraft parts	$ 151,600

Assets Held for Sale (Details)

Assets Held for Sale (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2019USD ($)Aircraft	Mar. 31, 2018USD ($)	Dec. 31, 2018USD ($)Aircraft	Dec. 31, 2017USD ($)
Aircraft and aircraft engines held for lease or sale [Abstract]
Impairment charge	$ 1,408,400	$ 0
Proceeds from the sale of airframe parts	1,079,900	1,683,500
Gain (loss) on sale of aircraft and aircraft parts	178,300	(8,200)
Held for Sale [Member] | Turboprop Aircraft [Member]
Aircraft and aircraft engines held for lease or sale [Abstract]
Impairment charge	$ 921,000
Number of assets held for sale | Aircraft	2
Held for Sale [Member] | Engines [Member]
Aircraft and aircraft engines held for lease or sale [Abstract]
Impairment charge	$ 487,400
Number of assets held for sale | Aircraft	1
Held for Sale [Member] | Turboprop Airframe [Member]
Aircraft and aircraft engines held for lease or sale [Abstract]
Number of assets held for sale | Aircraft	2
Held for Sale [Member] | Aircraft [Member]
Aircraft and aircraft engines held for lease or sale [Abstract]
Number of assets held for sale | Aircraft			3
Held for Sale [Member] | Aircraft Parts [Member]
Aircraft and aircraft engines held for lease or sale [Abstract]
Proceeds from the sale of airframe parts	$ 216,900	931,800
Accrued receivables	$ 94,400	$ 10,600	$ 133,100	$ 779,700
Carrying value of parts sold			151,500	144,600
Gain (loss) on sale of aircraft and aircraft parts			$ 26,700	$ 18,100

Notes Payable and Accrued Int_3

Notes Payable and Accrued Interest, Components (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Notes Payable and Accrued Interest [Abstract]
Principal	$ 0	$ 9,211,200
Unamortized debt issuance costs	(5,497,700)	(674,300)
Notes payable and accrued interest	131,230,700	131,092,200
Special Purpose Financing [Member]
Notes Payable and Accrued Interest [Abstract]
Unamortized debt issuance costs	(1,368,500)	0
Accrued interest	118,300	16,000
Term Loans [Member]
Notes Payable and Accrued Interest [Abstract]
Principal	42,729,400	0
Credit Facility [Member]
Notes Payable and Accrued Interest [Abstract]
Principal	93,700,000	122,400,000
Unamortized debt issuance costs	(4,129,200)	(674,300)
Accrued interest	$ 180,700	$ 139,300

Notes Payable and Accrued Int_4

Notes Payable and Accrued Interest, Credit Facility (Details)	Feb. 19, 2019USD ($)	Mar. 31, 2019USD ($)Aircraft	Mar. 31, 2018USD ($)	Dec. 31, 2018USD ($)
Credit Facility [Abstract]
Gain (loss) on sale of aircraft and aircraft parts		$ 178,300	$ (8,200)
Credit Facility [Member]
Credit Facility [Abstract]
Date of expiration		Feb. 19, 2023		May 31, 2019
Credit facility current borrowing capacity	$ 145,000,000			$ 170,000,000
Credit facility maximum borrowing capacity	$ 160,000,000			180,000,000
Percentage of fee on unused portion of credit facility	0.50%
Number of days required to close the financing facility		30 days
Outstanding loan balance	$ 50,000,000
Events of default, number of business days		3 days
Gain (loss) on sale of aircraft and aircraft parts				(3,408,700)
Unused amount of the credit facility		$ 51,300,000		$ 47,600,000
Weighted average interest rate on credit facility		6.00%		5.92%
Credit Facility [Member] | UK LLC SPE Financing [Member]
Credit Facility [Abstract]
Number of aircraft financed | Aircraft		2

Notes Payable and Accrued Int_5

Notes Payable and Accrued Interest, Term Loans (Details)	Feb. 08, 2019USD ($)SubsidiaryAircraftLoanEntity	Nov. 30, 2018Subsidiary	Aug. 31, 2016Subsidiary	Mar. 31, 2019
Term Loans [Abstract]
Number of wholly owned subsidiaries formed | Subsidiary	4	2	2
Term Loans [Member]
Term Loans [Abstract]
Number of term loans | Loan	6
Aggregate principal amount | $	$ 44,310,000
Number of term loans collateral aircraft owned | Aircraft	2
Number of special purpose entities | Entity	2
Term Loans [Member] | LIBOR [Member] | Minimum [Member]
Term Loans [Abstract]
Term of variable rate				30 days
Term Loans [Member] | LIBOR [Member] | Maximum [Member]
Term Loans [Abstract]
Term of variable rate				3 months
First Term Loan [Member]
Term Loans [Abstract]
Term loan maturity date				Oct. 31, 2020
Last Term Loan [Member]
Term Loans [Abstract]
Term loan maturity date				May 31, 2025

Derivative Instruments (Details

Derivative Instruments (Details)	3 Months Ended
	Mar. 31, 2019USD ($)LoanDerivativeInstrument	Mar. 31, 2018USD ($)	Dec. 31, 2018USD ($)
The following amount was included in other comprehensive income, before tax: [Abstract]
Change in value of hedged Swaps	$ (544,800)	$ 0
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract]
Total derivative liability	(941,000)		$ 0
Designated as Hedging Instrument [Member]
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract]
Total derivative liability	(895,800)
Not Designated as Hedging Instrument [Member]
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract]
Total derivative liability	$ (45,200)
Swap [Member]
Derivative Instruments [Abstract]
Number of derivative instruments | DerivativeInstrument	8
Amounts in Income and Other Comprehensive Income Amounts [Abstract]
Change in value of Swaps	$ 408,400
Other items	(1,300)
Included in interest expense	407,100
The following amount was included in other comprehensive income, before tax: [Abstract]
Change in value of hedged Swaps	$ (544,800)
Swap [Member] | Designated as Hedging Instrument [Member]
Derivative Instruments [Abstract]
Number of derivative instruments | DerivativeInstrument	7
Swap [Member] | Not Designated as Hedging Instrument [Member]
Derivative Instruments [Abstract]
Number of derivative instruments | DerivativeInstrument	1
Swap [Member] | Term Loans [Member]
Derivative Instruments [Abstract]
Number of derivative instruments | DerivativeInstrument	6
Swap [Member] | Restated Loan Agreement [Member]
Derivative Instruments [Abstract]
Number of derivative instruments | DerivativeInstrument	2
Number of Term Loans | Loan	6
Notional amount	$ 50,000,000
Credit facility debt	$ 50,000,000

Lease Right of Use Asset and _3

Lease Right of Use Asset and Liability (Details)	3 Months Ended
	Mar. 31, 2019USD ($)Option	Dec. 31, 2018USD ($)
Lease Right of Use Asset and Liability [Abstract]
Number of extension options | Option	2
Period of lease extension options	1 year
Discount rate	7.25%
Future Minimum Lease Commitments [Abstract]
2019	$ 145,800	$ 193,500
2020	196,400	196,400
2021	199,300	199,300
2022	101,100	101,100
Total lease liability	642,600	690,300
Discount	(68,700)
Lease liability at March 31, 2019	573,900	$ 0
Amortization, Finance Costs and Other Expenses [Abstract]
Fixed rental expense during the quarter	110,900
Variable lease expense	32,000
Total lease expense during the quarter	142,900
Estimated variable lease expense through remaining extension periods	$ 10,700

Fair Value Measurements (Detail

Fair Value Measurements (Details)	3 Months Ended
	Mar. 31, 2019USD ($)Asset	Mar. 31, 2018USD ($)	Dec. 31, 2018USD ($)
Finance Leases [Abstract]
Impairment charge	$ 1,408,400	$ 0
Level 3 [Member]
Finance Leases [Abstract]
Principal and accrued interest	$ 42,847,700		$ 9,227,200
Level 3 [Member] | Term Loans [Member]
Finance Leases [Abstract]
Number of assets refinanced | Asset	4
Level 3 [Member] | Credit Facility [Member]
Finance Leases [Abstract]
Principal and accrued interest	$ 93,880,700		122,539,300
Recurring [Member]
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis [Abstract]
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount	0	0
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	0	0
Assets (Liabilities) Fair Value Disclosure [Abstract]
Assets (liabilities) at fair value	2,216,500		656,400
Recurring [Member] | Derivatives [Member]
Assets (Liabilities) Fair Value Disclosure [Abstract]
Liabilities at fair value	(941,000)		0
Recurring [Member] | Money Market Funds [Member]
Assets (Liabilities) Fair Value Disclosure [Abstract]
Assets at fair value	3,157,500		656,400
Recurring [Member] | Level 1 [Member]
Assets (Liabilities) Fair Value Disclosure [Abstract]
Assets (liabilities) at fair value	3,157,500		656,400
Recurring [Member] | Level 1 [Member] | Derivatives [Member]
Assets (Liabilities) Fair Value Disclosure [Abstract]
Liabilities at fair value	0		0
Recurring [Member] | Level 1 [Member] | Money Market Funds [Member]
Assets (Liabilities) Fair Value Disclosure [Abstract]
Assets at fair value	3,157,500		656,400
Recurring [Member] | Level 2 [Member]
Assets (Liabilities) Fair Value Disclosure [Abstract]
Assets (liabilities) at fair value	(941,000)		0
Recurring [Member] | Level 2 [Member] | Derivatives [Member]
Assets (Liabilities) Fair Value Disclosure [Abstract]
Liabilities at fair value	(941,000)		0
Recurring [Member] | Level 2 [Member] | Interest Rate Swap [Member]
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis [Abstract]
Notional amount	92,729,400
Increase in interest expense realized	408,400
Recurring [Member] | Level 2 [Member] | Money Market Funds [Member]
Assets (Liabilities) Fair Value Disclosure [Abstract]
Assets at fair value	0		0
Recurring [Member] | Level 3 [Member]
Assets (Liabilities) Fair Value Disclosure [Abstract]
Assets (liabilities) at fair value	0		0
Recurring [Member] | Level 3 [Member] | Derivatives [Member]
Assets (Liabilities) Fair Value Disclosure [Abstract]
Liabilities at fair value	0		0
Recurring [Member] | Level 3 [Member] | Money Market Funds [Member]
Assets (Liabilities) Fair Value Disclosure [Abstract]
Assets at fair value	0		$ 0
Nonrecurring [Member] | Level 3 [Member] | Held for Sale [Member] | Aircraft [Member]
Assets (Liabilities) Fair Value Disclosure [Abstract]
Assets (liabilities) at fair value	3,363,000
Finance Leases [Abstract]
Impairment charge	$ 1,408,400	$ 0
Number of assets held for sale | Asset	3

Acquisition of Management Com_2

Acquisition of Management Company (Details) - JHC [Member] - USD ($)	Oct. 01, 2018	Oct. 31, 2017	Mar. 31, 2019	Mar. 31, 2018
Acquisition of Management Company [Abstract]
Consideration paid in cash	$ 2,900,000	$ 2,900,000
Equity consideration (in shares)	129,217	129,217
Liabilities assumed			$ 900,000
Accrued acquisition costs			$ 0	$ 200,000

Computation of (Loss)_Earning_3

Computation of (Loss)/Earnings Per Share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Basic and diluted earnings per share [Abstract]
Net (loss)/income	$ (1,308,200)	$ 317,300
Weighted average shares outstanding for the period used in computation of basic and diluted (loss)/earnings per share (in shares)	1,545,884	1,416,699
Basic (loss)/earnings per share (in dollars per share)	$ (0.85)	$ 0.22
Diluted (loss)/earnings per share (in dollars per share)	$ (0.85)	$ 0.22

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Related party transaction [Abstract]
Mangement fees incurred	$ 0	$ 1,446,800
Jet Fleet Management Corp. [Member]
Related party transaction [Abstract]
Mangement fees incurred		$ 1,446,800