BAERW filing — read by section

Item 1. Financial Statements

Item 1. Financial Statements. 
 
 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS 
 (All amounts in U.S. dollars) 
 
 As of
September 30, 2023 As of
December 31, 2022 
 ASSETS 
 Current assets: 
 Cash and cash equivalents $ 19,378,525 $ 30,162,475 
 Restricted cash 12,292,731 12,297,151 
 Investments in marketable securities 2,249,068 54,980,156 
 Accounts and note receivable 25,401,837 28,902 
 Aircraft support parts 488,145 1,761,270 
 Prepaid expenses and other current assets 3,968,810 1,835,032 
 Deferred offering costs — 5,800,144 
 Total current assets 63,779,116 106,865,130 
 Property, plant and equipment, net 198,472,301 192,091,413 
 Intangible assets, net 1,428,956 208,196 
 Goodwill 13,134,371 2,457,937 
 Other noncurrent assets 1 
 13,896,708 4,356,225 
 Total assets $ 290,711,452 $ 305,978,901 
 LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ DEFICIT 
 Current liabilities: 
 Accounts payable $ 1,351,970 $ 3,170,354 
 Accrued expenses and other current liabilities 10,536,129 18,669,572 
 Operating right-of-use current liability 2 
 1,531,567 21,484 
 Current portion of long-term debt, net of debt issuance costs 1,940,914 2,445,594 
 Total current liabilities 15,360,580 24,307,004 
 Long-term accrued expenses and other noncurrent liabilities 12,821,049 45,659 
 Operating right-of-use noncurrent liability 3 
 6,764,776 754,673 
 Long-term debt, net of debt issuance costs 4 
 205,219,737 205,471,958 
 Total liabilities $ 240,166,142 $ 230,579,294 
 COMMITMENTS AND CONTINGENCIES 
 MEZZANINE EQUITY 
 Series A Preferred Stock, $ 0.0001 par value; 315,789.473684 shares authorized, issued and outstanding at September 30, 2023 
 348,786,994 — 
 Legacy Bridger Series C Preferred Shares, $ 0.001 par value; 315,789.473684 shares authorized, issued and outstanding at December 31, 2022 
 — 489,021,545 
 STOCKHOLDERS’ DEFICIT 
 Common Stock, $ 0.0001 par value; 1,000,000,000 shares authorized; 44,776,926 shares issued and outstanding at September 30, 2023; 39,081,744 shares issued and outstanding at December 31, 2022 
 4,949 3,908 
 Additional paid-in capital 82,776,619 — 
 Accumulated deficit ( 382,566,331 ) ( 415,304,343 ) 
 Accumulated other comprehensive income 1,543,079 1,678,497 
 Total stockholders’ deficit ( 298,241,684 ) ( 413,621,938 ) 
 Total liabilities, mezzanine equity, and stockholders’ deficit $ 290,711,452 $ 305,978,901 

 1 Includes related party operating lease right-of-use assets of approximately $ 6,569,000 for the two Pilatus PC-12 leases as of September 30, 2023. 
 2 Includes related party operating lease right-of-use current liabilities of approximately $ 1,173,000 for the two Pilatus PC-12 leases as of September 30, 2023 . 
 3 Includes related party operating lease right-of-use noncurrent liabilities of approximately $ 5,396,000 for the two Pilatus PC-12 leases as of September 30, 2023. 
 4 Includes related party debt of $ 10,000,000 for the 2022 taxable industrial revenue bond as of September 30, 2023 and December 31, 2022, respectively. 
 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 
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 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
 (All Amounts in U.S. dollars) 
 
 For the Three Months Ended
September 30, For the Nine Months Ended
September 30, 
 2023 2022 2023 2022 
 Revenues 1 
 $ 53,619,117 $ 32,452,593 $ 65,599,770 $ 45,275,556 
 Cost of revenues: 
 Flight operations 9,673,769 7,120,107 19,706,152 16,635,021 
 Maintenance 5,534,423 5,498,105 13,260,850 11,932,078 
 Total cost of revenues 15,208,192 12,618,212 32,967,002 28,567,099 
 Gross income 38,410,925 19,834,381 32,632,768 16,708,457 
 Selling, general and administrative expense 2 
 15,826,474 18,058,418 64,242,773 28,635,304 
 Operating income (loss) 22,584,451 1,775,963 ( 31,610,005 ) ( 11,926,847 ) 
 Interest expense 3 
 ( 5,970,547 ) ( 6,984,901 ) ( 17,175,959 ) ( 12,993,129 ) 
 Other income (expense) 559,992 ( 441,788 ) 2,253,320 ( 166,634 ) 
 Income (loss) before income taxes 17,173,896 ( 5,650,726 ) ( 46,532,644 ) ( 25,086,610 ) 
 Income tax benefit 314,080 — 314,080 — 
 Net income (loss) $ 17,487,976 $ ( 5,650,726 ) $ ( 46,218,564 ) $ ( 25,086,610 ) 
 Series A Preferred Stock – adjustment for deemed dividend upon Closing $ — $ — $ ( 48,300,000 ) $ — 
 Series A Preferred Stock – adjustment to eliminate 50% multiplier $ — $ — $ 156,362,598 $ — 
 Series A Preferred Stock – adjustment to maximum redemption value $ ( 6,048,025 ) $ — $ ( 16,128,047 ) $ — 
 Legacy Bridger Series A Preferred Shares – adjustment for redemption, extinguishment, accrued interest, and change in fair value $ — $ — $ — $ ( 85,663,336 ) 
 Legacy Bridger Series C Preferred Shares - adjustment to maximum redemption value $ — $ ( 5,643,337 ) $ — $ ( 196,884,119 ) 
 Net income (loss) attributable to Common stockholders - basic and diluted $ 11,439,951 $ ( 11,294,063 ) $ 45,715,987 $ ( 307,634,065 ) 
 Net income (loss) per Common Stock - basic $ 0.25 $ ( 0.29 ) $ 1.02 $ ( 7.93 ) 
 Net income (loss) per Common Stock - diluted $ 0.15 $ ( 0.29 ) $ 0.59 $ ( 7.93 ) 
 Weighted average Common Stock outstanding – basic 45,905,962 38,770,646 44,936,629 38,770,646 
 Weighted average Common Stock outstanding – diluted 78,895,759 38,770,646 77,903,350 38,770,646 

 1 Includes related party revenues of approximately $ 68,000 and $ 501,000 for the three and nine months ended September 30, 2023, respectively. 
 2 Includes related party lease expense of approximately $ 139,000 for the three and nine months ended September 30, 2023, respectively. 
 3 Includes related party interest for the 2022 taxable industrial revenue bond of approximately $ 293,000 and $ 856,000 for the three and nine months ended September 30, 2023, respectively, and $ 95,000 for three and nine months ended September 30, 2022, respectively. 
 
 

 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 
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 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) 
 (All Amounts in U.S. dollars) 
 
 For the Three Months Ended
September 30, For the Nine Months Ended
September 30, 
 2023 2022 2023 2022 
 Net income (loss) $ 17,487,976 $ ( 5,650,726 ) $ ( 46,218,564 ) $ ( 25,086,610 ) 
 Other comprehensive income (loss), net of tax 
 Foreign currency translation adjustment ( 43,687 ) ( 96 ) ( 43,281 ) ( 359 ) 
 Unrealized gain on derivative instruments 180,525 459,150 112,191 1,443,185 
 Unrealized (loss) gain on investments in marketable securities ( 12,942 ) 28,212 277,402 28,212 
 Reclassification of realized gains on investments in marketable securities to earnings ( 100,388 ) — ( 481,730 ) — 
 Total other comprehensive income (loss), net of tax 23,508 487,266 ( 135,418 ) 1,471,038 
 Comprehensive income (loss) $ 17,511,484 $ ( 5,163,460 ) $ ( 46,353,982 ) $ ( 23,615,572 ) 

 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 
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 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 UNAUDITED CONDENSED CONSOLIDATED STOCKHOLDERS’ DEFICIT 
 For the Nine Months Ended September 30, 2022 
 (All Amounts in U.S. dollars, except share amounts) 
 
 Legacy Bridger Series A Preferred
Shares Legacy Bridger
Series B Preferred
Shares Legacy Bridger
Series C Preferred
Shares / Series A
Preferred Stock Common Stock Additional
Paid-in
Capital Accumulated Deficit Accumulated Other Comprehensive Income Total Stockholders' Deficit 
 Share Value Share Value Share Value Share Value 
 Balance at December 31, 2021 10,500,000 $ 1,050 60,000,000 $ 6,000 — $ — 39,081,744 $ 3,908 $ — $ ( 84,843,803 ) $ 24,706 $ ( 84,815,189 ) 
 Liquidation preference on Legacy Bridger Series A Preferred Shares — — — — — — — — — ( 4,339,767 ) — ( 4,339,767 ) 
 Unrealized gain on derivative instruments — — — — — — — — — — 674,381 674,381 
 Foreign currency translation adjustment — — — — — — — — — — ( 287 ) ( 287 ) 
 Stock based compensation attributable to Legacy Bridger holders prior to reverse recapitalization — — — — — — — — — 2,558 — 2,558 
 Net loss — — — — — — — — — ( 14,873,009 ) — ( 14,873,009 ) 
 Balance at March 31, 2022 10,500,000 $ 1,050 60,000,000 $ 6,000 — $ — 39,081,744 $ 3,908 $ — $ ( 104,054,021 ) $ 698,800 $ ( 103,351,313 ) 
 Legacy Bridger Series A Preferred Shares adjustment for redemption, extinguishment and revaluation — — — — — — — — — ( 81,323,569 ) — ( 81,323,569 ) 
 Legacy Bridger Series C Preferred Shares adjustment to maximum redemption value — — — — — — — — — ( 191,240,782 ) — ( 191,240,782 ) 
 Unrealized gain on derivative instruments — — — — — — — — — — 309,654 309,654 
 Foreign currency translation adjustment — — — — — — — — — — 24 24 
 Stock based compensation attributable to Legacy Bridger holders prior to reverse recapitalization — — — — — — — — — 2,222 — 2,222 
 Net loss — — — — — — — — — ( 4,562,875 ) — ( 4,562,875 ) 
 Balance at June 30, 2022 10,500,000 $ 1,050 60,000,000 $ 6,000 — $ — 39,081,744 $ 3,908 $ — $ ( 381,179,025 ) $ 1,008,478 $ ( 380,166,639 ) 
 Legacy Bridger Series C Preferred Shares adjustment to maximum redemption value — — — — — — — — — ( 5,643,337 ) — ( 5,643,337 ) 
 Unrealized gain on derivative instruments — — — — — — — — — — 459,150 459,150 
 Unrealized gain on investments in marketable securities — — — — — — — — — — 28,212 28,212 
 Foreign currency translation adjustment — — — — — — — — — — ( 96 ) ( 96 ) 
 Stock based compensation attributable to Legacy Bridger holders prior to reverse recapitalization — — — — — — — — — 2,223 — 2,223 
 Net loss — — — — — — — — — ( 5,650,726 ) — ( 5,650,726 ) 
 Balance at September 30, 2022 10,500,000 $ 1,050 60,000,000 $ 6,000 — $ — 39,081,744 $ 3,908 $ — $ ( 392,470,865 ) $ 1,495,744 $ ( 390,971,213 ) 

 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 
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 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 UNAUDITED CONDENSED CONSOLIDATED STOCKHOLDERS’ DEFICIT 
 For the Nine Months Ended September 30, 2023 
 (All Amounts in U.S. dollars, except share amounts) 
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 Legacy Bridger Series A Preferred
Shares Legacy Bridger
Series B Preferred
Shares Legacy Bridger
Series C Preferred
Shares / Series A
Preferred Stock Common Stock Additional
Paid-in
Capital Accumulated Deficit Accumulated Other Comprehensive Income Total Stockholders' Deficit 
 Share Value Share Value Share Value Share Value 
 Balance at December 31, 2022 — $ — — $ — 315,789 $ 489,021,545 39,081,744 $ 3,908 $ — $ ( 415,304,343 ) $ 1,678,497 $ ( 413,621,938 ) 
 Unrealized loss on derivative instruments — — — — — — — — — — ( 271,801 ) ( 271,801 ) 
 Unrealized gain on investment in marketable securities — — — — — — — — — — 318,645 318,645 
 Reclassification of realized gains on investments in marketable securities to earnings — — — — — — — — — — ( 173,152 ) ( 173,152 ) 
 Foreign currency translation adjustment — — — — — — — — — — 192 192 
 Net loss — — — — — — — — — ( 44,684,938 ) — ( 44,684,938 ) 
 Effect of the Closing — — — — — ( 156,362,597 ) 4,687,546 684 52,084,522 78,956,576 — 131,041,782 
 Series A Preferred Stock adjustment to maximum redemption value — — — — — 4,274,439 — — ( 4,274,439 ) — — ( 4,274,439 ) 
 Stock based compensation after reverse recapitalization — — — — — — 2,400,354 240 25,596,776 — — 25,597,016 
 Balance at March 31, 2023 — $ — — $ — 315,789 $ 336,933,387 46,169,644 $ 4,832 $ 73,406,859 $ ( 381,032,705 ) $ 1,552,381 $ ( 306,068,633 ) 
 Unrealized gain on derivative instruments — — — — — — — — — — 203,467 203,467 
 Unrealized loss on investment in marketable securities — — — — — — — — — — ( 28,301 ) ( 28,301 ) 
 Reclassification of realized gains on investments in marketable securities to earnings — — — — — — — — — — ( 208,190 ) ( 208,190 ) 
 Foreign currency translation adjustment — — — — — — — — — — 214 214 
 Net loss — — — — — — — — — ( 19,021,602 ) — ( 19,021,602 ) 
 
 Series A Preferred Stock adjustment to maximum redemption value — — — — — 5,805,582 — — ( 5,805,582 ) — — ( 5,805,582 ) 
 Bonuses paid in Class A Common Stock — — — — — — 736,554 74 4,927,546 — 4,927,620 
 Stock based compensation after reverse recapitalization — — — — — — — — 6,448,568 — — 6,448,568 
 Balance at June 30, 2023 — $ — — $ — 315,789 $ 342,738,969 46,906,198 $ 4,906 $ 78,977,391 $ ( 400,054,307 ) $ 1,519,571 $ ( 319,552,439 ) 
 Unrealized gain on derivative instruments — — — — — — — — — — 180,525 180,525 
 Unrealized loss on investment in marketable securities — — — — — — — — — — ( 12,942 ) ( 12,942 ) 
 Reclassification of realized gains on investments in marketable securities to earnings — — — — — — — — — — ( 100,388 ) ( 100,388 ) 
 Foreign currency translation adjustment — — — — — — — — — — ( 43,687 ) ( 43,687 ) 
 Net income — — — — — — — — — 17,487,976 — 17,487,976 
 
 Series A Preferred Stock adjustment to maximum redemption value — — — — — 6,048,025 — — ( 6,048,025 ) — — ( 6,048,025 ) 
 Class A Common Stock issued in Acquisition — — — — — — 426,531 43 3,241,957 — — 3,242,000 
 Stock based compensation after reverse recapitalization — — — — — — — — 6,605,296 — — 6,605,296 
 Balance at September 30, 2023 — $ — — $ — 315,789 $ 348,786,994 47,332,729 $ 4,949 $ 82,776,619 $ ( 382,566,331 ) $ 1,543,079 $ ( 298,241,684 ) 

 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 
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 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
 (All Amounts in U.S. dollars) 
 
 For the Nine Months Ended September 30, 
 2023 2022 
 Cash Flows from Operating Activities: 
 Net loss $ ( 46,218,564 ) $ ( 25,086,610 ) 
 Adjustments to reconcile net loss to net cash used in operating activities, net of acquisitions 
 Loss on sale/disposal of fixed assets 423,187 1,588,361 
 Depreciation and amortization 10,233,947 8,561,926 
 Impairment of long-lived assets 626,848 — 
 Stock based compensation expense 38,650,880 7,003 
 Loss on extinguishment of debt — 844,925 
 Change in fair value of the Warrants 1,865,500 — 
 Change in fair value of freestanding derivative 50,559 ( 59,309 ) 
 Amortization of debt issuance costs 725,524 288,853 
 Interest accrued on Legacy Bridger Series B Preferred Shares — 3,586,586 
 Change in fair value of Legacy Bridger Series C Preferred Shares — 3,918,636 
 Change in fair value of Series A Preferred Stock ( 45,378 ) — 
 Realized gain on investments in marketable securities ( 561,905 ) — 
 Changes in operating assets and liabilities 
 Accounts and note receivable ( 25,372,935 ) ( 10,885,879 ) 
 Aircraft support parts 1,273,125 183,390 
 Prepaid expense and other current and noncurrent assets ( 4,057,674 ) ( 305,096 ) 
 Accounts payable, accrued expenses and other liabilities ( 19,084,478 ) 9,398,500 
 Net cash used in operating activities ( 41,491,364 ) ( 7,958,714 ) 
 Cash Flows from Investing Activities: 
 Investments in construction in progress – buildings — ( 7,739,841 ) 
 Proceeds from sales and maturities of marketable securities 53,088,665 — 
 Sale of property, plant and equipment 817,000 286,400 
 Purchases of property, plant and equipment ( 18,054,137 ) ( 23,818,386 ) 
 Purchases of marketable securities — ( 38,508,475 ) 
 Net cash provided by (used in) investing activities 35,851,528 ( 69,780,302 ) 
 Cash Flows from Financing Activities: 
 Payment to Legacy Bridger Series A Preferred Shares members — ( 236,250,000 ) 
 Payment to Legacy Bridger Series B Preferred Shares members — ( 69,999,223 ) 
 Borrowing from Legacy Bridger Series C Preferred shares members, net of issuance costs — 288,684,675 
 Borrowings from 2022 Taxable Industrial Revenue bond — 160,000,000 
 Extinguishment of 2021 Taxable Industrial Revenue bond — (7,549,900) 
 Payment of finance lease liability ( 22,790 ) — 
 Proceeds from the Closing 3,193,536 — 
 Costs incurred related to the Closing ( 6,793,574 ) — 
 Borrowings from various First Interstate Bank vehicle loans — 202,216 
 Payment of debt issuance costs — ( 4,417,806 ) 
 Payment of offering costs — (896,108) 
 Repayments on debt ( 1,482,425 ) ( 1,463,862 ) 
 Net cash (used in) provided by financing activities ( 5,105,253 ) 128,309,992 
 Effects of exchange rate changes ( 43,281 ) ( 359 ) 
 Net change in cash, cash equivalents and restricted cash ( 10,788,370 ) 50,570,617 
 Cash, cash equivalents and restricted cash – beginning of the period 42,459,626 17,261,132 
 Cash, cash equivalents and restricted cash – end of the period $ 31,671,256 $ 67,831,749 
 Less: Restricted cash – end of the period 12,292,731 12,224,970 
 Cash and cash equivalents – end of the period $ 19,378,525 $ 55,606,779 
 Supplemental disclosure of non-cash operating and financing activities 
 Assumption of Jack Creek liabilities $ 7,463,673 $ — 
 Recognition of warrant liabilities $ 5,863,000 $ — 
 Recognition of Deferred underwriting fee $ 1,500,000 $ — 
 Recognition of new right-of-use asset and corresponding operating lease liability $ 7,940,044 $ — 
 Bonuses paid in Class A Common Stock $ 4,927,620 $ — 
 Purchase consideration of Ignis acquisition paid in Class A Common Stock $ 3,242,000 $ — 
 Deferred offering costs included in accrued expenses and other current liabilities $ — $ 3,762,322 
 Issuance costs on Legacy Bridger Series C Preferred Shares $ — $ 5,000,000 
 Supplemental cash flow information 
 Interest paid 1 
 $ 21,995,073 $ 11,936,730 
 Fixed assets in accounts payable $ 16,847 $ 448,850 
 Conversion of Promissory Note to Common Stock $ 897,400 $ — 
 Series A Preferred Stock – adjustment for deemed dividend upon Closing $ 48,300,000 $ — 
 Series A Preferred Stock – adjustment to eliminate 50% multiplier $ 156,362,597 $ — 
 Series A Preferred Stock - adjustment to maximum redemption value $ 16,128,046 $ — 
 Legacy Bridger Series A Preferred Shares – adjustment for redemption, extinguishment and accrued interest $ — $ 85,663,336 
 Legacy Bridger Series C Preferred Shares - adjustment for maximum redemption value $ — $ 196,884,119 

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 1 Includes related party interest paid of approximately $ 1,150,000 for the 2022 taxable industrial revenue bond for the nine months ended September 30, 2023. 
 
 
 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 
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 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 
 
 
 Note 1 – Organization and Basis of Presentation 
 Nature of Business 
 Bridger Aerospace Group Holdings, Inc. and its subsidiaries (“Bridger”, “the Company,” “we,” “us” or “our”) provide aerial wildfire management, relief and suppression and delivery of firefighting services using next generation technology and sustainable and environmentally safe firefighting methods. 
 As of September 30, 2023, the Company owns 17 aircraft, including 4 Twin Commander surveillance platforms, 4 Quest Kodiaks, 6 Viking CL415EAFs, 2 Aurora eVOTL Skirons, and 1 Pilatus PC-12. 
 Basis of Presentation 
 The unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”). The unaudited condensed consolidated financial statements include the financial statements of the Company, all entities that are wholly-owned by the Company and all entities in which the Company has a controlling financial interest. 
 Reverse Recapitalization 
 On January 24, 2023, (the “Closing Date”), Jack Creek Investment Corp (“JCIC”) completed the reverse recapitalization (the “Closing” and the “Reverse Recapitalization”) with the Company’s predecessor, Bridger Aerospace Group Holdings, LLC and its subsidiaries (collectively, “Legacy Bridger”), which operated the majority of the historical business and was identified as the acquirer and predecessor upon the consummation of the transactions contemplated by the agreement and plan of merger (the “Transaction Agreements”) entered into on August 3, 2022. On the Closing Date, pursuant to the Transaction Agreements, JCIC and Legacy Bridger became wholly owned subsidiaries of a new public entity that was renamed Bridger Aerospace Group Holdings, Inc, and JCIC shareholders and Legacy Bridger equity holders converted their equity ownership in JCIC and Legacy Bridger, respectively, into equity ownership in Bridger. 
 Upon the consummation of the Reverse Recapitalization, Bridger issued Common Stock to the Legacy Bridger equity holders and Series A Preferred Stock (as defined below) as summarized below: 
 • the surrender and exchange of all 606,061 Legacy Bridger incentive units (“Incentive Units”) into 583,308 shares of Bridger’s common stock, par value $ 0.0001 , (“Common Stock”) at a deemed value of $ 10.00 per share as adjusted by the per share Common Stock consideration of approximately 0.96246 (the “Exchange Ratio”), rounded down to the nearest share for each holder; 
 • the direct or indirect surrender and exchange of the remaining 40,000,000 issued and outstanding shares of Legacy Bridger common shares (excluding Incentive Units) into 38,498,436 shares of Common Stock at a deemed value of $ 10.00 per share as adjusted by the Exchange Ratio, rounded down to the nearest share for each holder; and 
 • the surrender and exchange of all 315,789.473684 issued and outstanding Series C preferred shares of Legacy Bridger (the “Legacy Bridger Series C Preferred Shares”), which were surrendered and exchanged on a one -to-one basis in connection with the Reverse Recapitalization into 315,789.473684 shares of preferred stock of Bridger that have the rights, powers, designations, preferences, and qualifications, limitations and restrictions set forth in Section 4.5 of the Amended and Restated Certificate of Incorporation (the “Series A Preferred Stock”). The Series A Preferred Stock are convertible at the election of the holders into shares of Common Stock, without the payment of additional consideration by the holders into such number of shares of Common Stock as determined by dividing the original issue price, plus accrued interest by a conversion price equal to $ 11 at the time of conversion. 
 Other related events occurred in connection with the Reverse Recapitalization, are summarized below: 
 • the filing and effectiveness of the Amended and Restated Certificate of Incorporation of Bridger and the effectiveness of the Amended and Restated Bylaws of Bridger, each of which occurred immediately prior to the Closing; 
 • the adoption and assumption of the 2023 Omnibus Incentive Plan and any grants or awards issued thereunder and adoption of the 2023 Employee Stock Purchase Plan upon the Closing to grant equity awards to Bridger employees; and 
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 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 • during the period from the Closing until five years following the Closing, JCIC subjected 20 % of JCIC’s issued and outstanding common stock (“Sponsor Earnout Shares”), comprised of two separate tranches of 50 % of the Sponsor Earnout Shares per tranche, to potential forfeiture to Bridger for no consideration until the occurrence (or deemed occurrence) of certain triggering events. 
 Immediately after giving effect to the Transaction Agreements, the following were outstanding: 
 • 43,769,290 shares of Common Stock; 
 • 315,789.473684 shares of Bridger Series A Preferred Stock; 
 • 9,400,000 private placement warrants (“Private Placement Warrants”) to purchase shares of Common Stock at an exercise price of $ 11.50 per share; 
 • 17,250,000 public warrants (“Public Warrants”) to purchase shares of Common Stock at an exercise price of $ 11.50 per share; and 
 • 6,581,497 restricted stock units issued to the executives and senior management of the Company. 
 In connection with the Reverse Recapitalization, the Company paid transaction costs of $ 10,302 thousand as of the Closing. 
 The transactions contemplated by the Transaction Agreements were accounted for as a reverse recapitalization in accordance with GAAP. Under this method of accounting, JCIC was treated as the “acquired” company for financial reporting purposes. Accordingly, for accounting purposes, the financial statements of Bridger represent a continuation of the financial statements of Legacy Bridger with the Reverse Recapitalization treated as the equivalent of Legacy Bridger issuing stock for the net assets of JCIC, accompanied by a recapitalization. The net assets of JCIC will be stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Reverse Recapitalization will be those of Legacy Bridger in future reports of Bridger. 
 Legacy Bridger has been determined to be the accounting acquirer based on evaluation of the following facts and circumstances: 
 • Legacy Bridger equity holders have a relative majority of the voting power of Bridger; 
 • Bridger’s board of directors (the “Board”) has nine (9) members, and representatives or designees of the Legacy Bridger equity holders comprise the majority of the members of the Board; 
 • Legacy Bridger’s senior management comprise the senior management roles and are responsible for the day-to-day operations of Bridger; 
 • Bridger assumed Legacy Bridger’s name of business; 
 • The strategy and operations of Bridger continue Legacy Bridger’s former strategy and operations; and 
 • The Reverse Recapitalization created an operating public company, with management continuing to use Legacy Bridger operations to grow the business. 
 The Sponsor Earnout Shares are determined to be equity classified instruments of Bridger and the Public Warrants and Private Placement Warrants are determined to remain liability classified instruments upon the Closing. 
 In accordance with guidance applicable to these circumstances, the equity structure has been recast in all comparative periods up to the Closing to reflect the number of shares of Common Stock issued to Legacy Bridger’s stockholders in connection with the Reverse Recapitalization. As such, the shares and corresponding capital amounts and earnings per share related to Legacy Bridger’s common stock prior to the Reverse Recapitalization have been retroactively recasted as shares of Common Stock using the Exchange Ratio. 
 On January 25, 2023, shares of the Company’s Common Stock began trading on the Nasdaq Global Market under the ticker symbol “BAER.” 
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 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 Note 2 - Summary of Significant Accounting Policies 
 Principles of Consolidation 
 The Company consolidates those entities in which it, through the existing owners, has control over significant operating, financial or investing decisions of the entity. All significant intercompany balances and transactions have been eliminated in consolidation. 
 Variable Interest Entities 
 The Company follows ASC 810-10-15 guidance with respect to accounting for variable interest entities (“VIE”). These entities do not have sufficient equity at risk to finance their activities without additional subordinated financial support from other parties or whose equity investors lack any of the characteristics of a controlling financial interest. A variable interest is an investment or other interest that will absorb portions of a VIE’s expected losses or receive portions of its expected returns and are contractual, ownership or pecuniary in nature and that change with changes in the fair value of the entity’s net assets. A reporting entity is the primary beneficiary of a VIE and must consolidate it when that party has a variable interest, or combination of variable interests, that provide it with a controlling financial interest. A party is deemed to have a controlling financial interest if it meets both of the power and loss/benefits criteria. The power criterion is the ability to direct the activities of the VIE that most significantly impact its economic performance. The losses/benefits criterion is the obligation to absorb losses from, or right to receive benefits from, the VIE that could potentially be significant to the VIE. The VIE model requires an ongoing reconsideration of whether a reporting entity is the primary beneficiary of a VIE due to changes in the facts and circumstances. 
 Northern Fire Management Services, LLC (“NFMS, LLC”) is considered to be a VIE, as it lacks sufficient equity and is consolidated in the Company’s financial statements. For the three and nine months ended September 30, 2022, Mountain Air, LLC (“MA, LLC”) was considered to be a VIE, as it lacked sufficient equity and is consolidated in the Company’s financial statements. For the three and nine months ended September 30, 2023 and 2022 and the year ended December 31, 2022, NFMS, LLC held immaterial assets and liabilities in its financial statements. For the three and nine months ended September 30, 2022, MA, LLC held immaterial assets and liabilities in its financial statements. For the three and nine months ended September 30, 2023 and 2022 and the year ended December 31, 2022, the following entities were considered to be VIEs but were not consolidated in the unaudited condensed consolidated financial statements due to the lack of the power criterion or the losses/benefits criterion: AE Côte-Nord Canada (“Côte-Nord”) and Ensyn BioEnergy Canada, Inc. 
 Northern Fire Management Services, LLC: The Company assisted in designing and organizing NFMS, LLC with a business purpose of employing Canadian aviation professionals for the Company. A master services agreement exists between NFMS, LLC, the Company, and Bridger Air Tanker, LLC, a wholly owned subsidiary of the Company, to transfer all annual expenses incurred to the Company in exchange for the Canadian employees to support the Company’s water scooper aircraft. NFMS, LLC is 50 % owned by a Canadian citizen, and 50 % owned by Bridger Aerospace Group, LLC. The Company is responsible for the decisions related to all of NFMS, LLC’s expenditures, which solely relates to payroll. Based on these facts, it was determined that the Company is the primary beneficiary of NFMS, LLC. Therefore, NFMS, LLC has been consolidated by the Company. All intercompany expenses associated with NFMS, LLC and its service agreement have been eliminated in consolidation. 
 Mountain Air, LLC: As of November 7, 2022, MA, LLC was a wholly-owned subsidiary of Bridger. Prior to MA, LLC becoming a wholly-owned subsidiary of the Company, MA, LLC was owned 50 % by Timothy Sheehy, the Chief Executive Officer and a director of Bridger, and 50 % by an entity affiliated with Matthew Sheehy, a director of Bridger. MA, LLC is a Federal Aviation Administration (“FAA”) part 135 certificate holder and is designed to hold aerial firefighting contracts. Bridger Aviation Services, LLC (“Bridger Aviation”), a wholly-owned subsidiary of Bridger, was a party to a certain Management Services Agreement (the “Aviation Agreement”), dated April 13, 2018, with MA, LLC. Pursuant to the Aviation Agreement, Bridger Aviation leased certain aircraft to MA, LLC. MA, LLC operated the aircraft and paid Bridger Aviation a fee equal to 99 % of all revenue it received from the use and deployment of Bridger Aviation’s aircraft. MA, LLC was obligated to operate and maintain the aircraft in accordance with applicable FAA standards. 
 Timothy Sheehy originally conducted aerial operations through MA, LLC before Bridger’s current legal organizational structure was put into place, which created the need for the Aviation Agreement and resulting VIE treatment. 
 Seasonality 
 The Company’s business is generally seasonal, with a significant portion of total revenue occurring during the second and third quarters of the fiscal year due to the North American fire season. However, the weather dependency and seasonal 
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 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 fluctuation in the need to fight wildfires based upon location and the varying intensity of the fire season may lead our operating results to fluctuate significantly from quarter to quarter and year to year. 
 Use of Estimates 
 The preparation of financial statements in conformity with US GAAP, requires management to make assumptions and estimates that affect the reported amounts of assets and liabilities, disclosure of gain or loss contingencies as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from their estimates and such differences could be material to the unaudited condensed consolidated financial statements. Significant items subject to such estimates and assumptions include: (a) excess and aging aircraft support parts reserves, (b) allowance for doubtful accounts, (c) useful lives of property, plant and equipment, net, (d) allocation of the purchase price to the fair value of assets acquired and liabilities assumed, (e) impairment of long-lived assets, goodwill and other intangible assets, (f) disclosure of fair value of financial instruments, (g) variable interest entities, (h) accounting for Series A Preferred Stock and Legacy Bridger Series C Preferred Shares, (i) revenue recognition, (j) estimates and assumptions made in determining the carrying values of goodwill, other intangible assets, and contingent consideration, (k) incentive units and (l) Public Warrants and Private Placement Warrants. 
 Reclassifications 
 Certain amounts from prior periods have been reclassified to conform to the current period presentation. The Company previously separately presented General and administrative and Business development operating expenses, which are now presented combined within Selling, general and administrative expense on the Unaudited Condensed Consolidated Statements of Operations. The reclassification had no impact on previously reported Net loss or Accumulated deficit. 
 Accounts and Note Receivable 
 Accounts receivable consist of amounts due from our customers. The Company maintains an allowance for doubtful accounts equal to the estimated losses expected to be incurred based upon a review of the outstanding accounts receivable, historical collection information and existing economic conditions. For the three and nine months ended September 30, 2023 and 2022, the Company did not record any bad debt expense as accounts receivable have historically been collected in accordance with the policy and there is not history of write-offs. 
 Note receivable consists of a promissory note to pay a specific sum, with interest, within a defined period. Each reporting period, the Company evaluates the collectability of the outstanding note receivable balance. If the promissory note is deemed uncollectible, the Company will record the value of the note and the accrued interest as bad debt expense. For the three and nine months ended September 30, 2023 and 2022, the Company did not record any bad debt expense based on the assessment of the receivable. 
 Deferred Offering Costs 
 Deferred offering costs primarily consist of capitalized legal, accounting and other third-party costs incurred that are directly related to the Reverse Recapitalization, which has been accounted for as a reverse recapitalization. These costs were charged to Stockholders’ deficit as a reduction of Additional paid-in capital generated upon the completion of the Reverse Recapitalization. As of September 30, 2023, the Company charged $ 17,961 thousand to Stockholders’ deficit. As of December 31, 2022, the Company recorded $ 5,800 thousand of deferred offering costs in the Unaudited Condensed Consolidated Balance Sheets. 
 Revenue Recognition 
 The Company charges daily and hourly rates depending upon the type of firefighting services rendered and under which contract the services are performed. These services are primarily split into flight revenue and standby revenue. Flight revenue is primarily earned at an hourly rate when the engines of the aircraft are started and stopped upon request of the customer, tracked via a Hobbs meter. Standby revenue is earned primarily as a daily rate when aircraft are available for use at a fire base, awaiting request from the customer for flight deployment. 
 The Company enters into short, medium and long-term contracts with customers, primarily with government agencies to deploy aerial fire management assets during the firefighting season. Revenue is recognized when performance obligations under the terms of a contract with our customers are satisfied and payment is typically due within 30 days of invoicing. Invoicing occurs as the services are rendered and includes the use of the aircraft, pilot and field maintenance personnel to support the contract. 
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 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 Contracts are based on either a Call-When-Needed (“CWN”) or Exclusive Use (“EU”) basis. Rates established are generally more competitive based on the security of the revenue from the contract (i.e., an EU versus only on an as-needed basis in CWN). These rates are delineated by the type of service, generally flight time or time available for deployment. Once an aircraft is deployed on a contract the fees are earned at these rates, the aircraft cannot be obligated to another customer. Contracts have no financing components and consideration is at pre-determined rates. No variable considerations are constrained within the contracts. 
 The transaction prices are allocated on the service performed and tracked real-time by each operator in a duty log. On at least a monthly basis, the services performed and rates are validated by each customer. Acceptance by the customer is evidenced by their funded task order or accepted invoice. 
 The Company has not incurred incremental costs for obtaining contracts with customers. In addition, the Company evaluates whether or not it should capitalize the costs of fulfilling a contract. Such costs would be capitalized when they are not within the scope of other standards and: (1) are directly related to a contract; (2) generate or enhance resources that will be used to satisfy performance obligations; and (3) are expected to be recovered. The Company has elected to use the practical expedient detailed in ASC 340-40, Other Assets and Deferred Costs—Contracts with Customers , to expense any costs to fulfill a contract as they are incurred when the amortization period would be one year or less. 
 Contract assets are classified as a receivable when the reporting entity’s right to consideration is unconditional, which is when payment is due only upon the passage of time. As the Company invoices customers for performance obligations that have been satisfied, at which point payment is unconditional, contracts do not typically give rise to contract assets. Contract liabilities are recorded when cash payments are received or due in advance of performance. 
 Payment terms vary by customer and type of revenue contract. The Company generally expects that the period of time between payment and transfer of promised goods or services will be less than one year. In such instances, the Company has elected the practical expedient to not evaluate whether a significant financing component exists. As permitted under the practical expedient available under ASC 606, Revenue from Contracts with Customers (“ASC 606”), the Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, and (ii) contracts for which the Company recognizes revenue at the amount which it has the right to invoice for services performed. 
 Other revenue consists of leasing revenues for facilities as well as external repair work performed on customer aircraft. 
 Sales taxes and value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from Revenues. 
 Revenue Disaggregation 
 The following shows the disaggregation of revenue by service for the three and nine months ended September 30, 2023 and September 30, 2022. 
 
 For the Three Months Ended
September 30, For the Nine Months Ended
September 30, 
 2023 2022 2023 2022 
 Fire suppression $ 46,153,645 $ 26,550,505 $ 56,603,073 $ 38,232,768 
 Aerial surveillance 7,355,172 5,831,625 8,478,925 6,833,650 
 Other services 110,300 70,463 517,772 209,138 
 Total revenues $ 53,619,117 $ 32,452,593 $ 65,599,770 $ 45,275,556 

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 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 The following shows the disaggregation of revenue by type for the three and nine months ended September 30, 2023 and September 30, 2022. 
 
 For the Three Months Ended
September 30, For the Nine Months Ended
September 30, 
 2023 2022 2023 2022 
 Flight revenue $ 28,322,994 $ 18,167,660 $ 34,117,309 $ 24,585,180 
 Standby revenue 25,006,298 14,094,682 30,142,235 20,305,658 
 Other revenue 289,825 190,251 1,340,226 384,718 
 Total revenues $ 53,619,117 $ 32,452,593 $ 65,599,770 $ 45,275,556 

 Concentration Risk 
 For the three and nine months ended September 30, 2023, the Company had one customer who individually accounted for 75 % and 67 % of total revenues, respectively. For the three and nine months ended September 30, 2022, the Company had one customer who individually accounted for 96 % and 97 % of total revenues, respectively. As of September 30, 2023, two customers accounted for 45 % and 32 % of accounts receivable, respectively. As of December 31, 2022, one customer accounted for 62 % of accounts receivable. 
 Business Combinations 
 The Company records tangible and intangible assets acquired and liabilities assumed in business combinations under the acquisition method of accounting in accordance with ASC 805, Business Combinations . Under the acquisition method of accounting, amounts paid for the acquisition are allocated to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition inclusive of identifiable intangible assets. Acquisition consideration includes contingent consideration with payment terms based on the achievement of certain targets of the acquired business. The estimated fair value of identifiable assets and liabilities, including intangibles, are based on valuations that use information and assumptions available to management. The Company allocates any excess purchase price over the fair value of the tangible and identifiable intangible assets acquired and liabilities assumed to goodwill. Significant management judgments and assumptions are required in determining the fair value of assets acquired and liabilities assumed, particularly acquired intangible assets, including estimated useful lives. The valuation of purchased intangible assets is based upon estimates of the future performance and discounted cash flows of the acquired business. Each asset acquired or liability assumed is measured at estimated fair value from the perspective of a market participant. 
 Contingent consideration, represents an obligation of the acquirer to transfer additional assets or equity interests to the seller if future events occur or conditions are met, is recognized when probable and reasonably estimable. Contingent consideration recognized is included in the initial cost of the assets acquired and recorded in Accrued expenses and other current liabilities and Long-term accrued expenses and other noncurrent liabilities within the Unaudited Condensed Consolidated Balance Sheets. Subsequent changes in the estimated fair value of contingent consideration are recognized as Selling, general and administrative expenses within the Unaudited Condensed Consolidated Statements of Operations. 
 Hedging Transactions and Derivative Financial Instruments 
 The Company is directly and indirectly affected by changes in certain market conditions. These changes in market conditions may adversely impact the Company’s financial performance and are referred to as “market risks.” The Company, when deemed appropriate, uses derivatives as a risk management tool to mitigate the potential impact of certain market risks. The Company manages interest rate risk through the use of derivative instruments, such as swap agreements. A swap agreement is a contract between two parties to exchange cash flows based on specified underlying notional amounts, assets and/or indices. The Company does not enter into derivative financial instruments for trading purposes. 
 The accounting for gains and losses that result from changes in the fair values of derivative instruments depends on whether the derivatives have been designated and qualify as hedging instruments and the type of hedging relationships. The changes in fair values of derivatives that have been designated and qualify as cash flow hedges are recorded in Accumulated other comprehensive income and are reclassified into the line item on the Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) in which the hedged items are recorded in the same period the hedged items affect earnings. The changes in fair values of freestanding derivatives with no hedging designation are recorded in earnings through interest expense on the Unaudited Condensed Consolidated Statements of Operations. 
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 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 The Company formally assesses whether the financial instruments used in hedging transactions are effective at offsetting changes in either the fair values or cash flows of the related underlying exposures. Any ineffective portion of a financial instrument’s change in fair value is immediately recognized into earnings. The fair value is based on prevailing market data and using standard valuation models based on reasonable estimates about future relevant market conditions. Refer to “Note 14 – Long-Term Debt.” The notional amounts of the derivative financial instruments do not necessarily represent amounts exchanged by the parties and, therefore, are not a direct measure of the Company’s exposure to the financial risks described above. 
 Warrant Liabilities 
 The Company accounts for the Public Warrants and Private Placement Warrants (collectively, the “Warrants”) issued in connection with the Reverse Recapitalization in accordance with the guidance contained in accordance with ASC 480, Distinguishing Liabilities from Equity and ASC 815-40, Derivatives and Hedging—Contracts in Entity’s Own Equity , under which the Warrants do not meet the criteria for equity treatment and must be recorded as liabilities. Accordingly, the Company classifies the Warrants as liabilities at their fair value and adjusts the Warrants to fair value at each reporting period. The warrant liabilities are subject to remeasurement at each balance sheet date until exercised, and any change in fair value is recorded in earnings through Selling, general and administrative expense on the Unaudited Condensed Consolidated Statements of Operations. 
 Income Taxes 
 For periods prior to the Reverse Recapitalization, Bridger Aerospace Group Holdings, LLC is a partnership for federal income tax purposes. Consequently, federal income taxes are not payable or provided for by Legacy Bridger. Members are taxed individually on their pro rata ownership share of Legacy Bridger’s earnings. Legacy Bridger’s net income or loss is allocated among the members in accordance with the Company’s operating agreement. 
 Subsequent to the Reverse Recapitalization, Bridger Aerospace Group Holdings, Inc. became the successor of Legacy Bridger as discussed in “Note 1 – Organization and Basis of Presentation.” Bridger is subject to U.S. federal income taxes, in addition to state and local income taxes, with respect to net taxable income or loss and any related tax credits of the Company. Bridger is also subject to taxes in foreign jurisdictions in which it operates. 
 The Company provides for income taxes and the related accounts under the asset and liability method. Income tax expense, deferred tax assets and liabilities and reserves for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. The Company is subject to income taxes predominantly in the U.S. these tax laws are often complex and may be subject to different interpretations. 
 Deferred income taxes arise from temporary differences between the financial statement carrying amount and the tax basis of assets and liabilities and are measured using the enacted tax rates expected to be in effect during the year in which the basis difference reverses. In evaluating the ability to recover its deferred tax assets within the jurisdiction from which they arise, the Company considers all available positive and negative evidence. If based upon all available positive and negative evidence, it is more likely than not that the deferred tax assets will not be realized, a valuation allowance is established. The valuation allowance may be reversed in a subsequent reporting period if Bridger determines that it is more likely than not that all or part of the deferred tax asset will become realizable. 
 Net Income (Loss) Per Share 
 Basic net income (loss) per share is based on the weighted average number of shares of Common Stock outstanding during the period. Diluted net income (loss) per share is based on the weighted average number of shares of Common Stock used for the basic net income (loss) per share calculation, adjusted for the dilutive effect of restricted stock units (“RSUs”), Warrants, and Incentive Units, if any, using the “treasury stock” method, the Series A Preferred Stock that is convertible into shares of Common Stock, and the Sponsor Earnout Shares that will fully vest upon certain stock price metrics being achieved. In addition, net income (loss) for diluted net income (loss) per share is adjusted for the after-tax impact of changes to the fair value of the Warrants, to the extent they are dilutive. 
 As noted above, the Company accounted for the Closing as a reverse recapitalization. Net income (loss) per share calculations for all periods prior to the Closing have been retrospectively adjusted by the Exchange Ratio for the equivalent number of shares of Common Stock outstanding immediately after the Closing to effect the reverse recapitalization. Subsequent to the Closing, net income (loss) per share is calculated based on the weighted average number of shares of Common Stock outstanding. 
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 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 Collaboration Agreements 
 The Company analyzes its collaboration arrangement to assess if it is within the scope of ASC 808, Collaborative Agreements (“ASC 808”) by determining whether such an arrangement involves joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities. This assessment is performed throughout the life of the arrangement based on changes in the responsibilities of all parties in the arrangement. If the Company concluded that it has a customer relationship with its collaborator, the collaboration arrangement would be accounted for under ASC 606. 
 Stock-Based Compensation 
 The Company accounts for its stock-based compensation in accordance with provisions of ASC 718, Compensation-Stock Compensation at the grant date fair value. 
 Legacy Bridger granted Incentive Units which contain service and performance vesting conditions to select board members and an executive officer. Compensation cost for Incentive Units is measured at their grant-date fair value and is equal to the value of the Legacy Bridger’s Class D Common shares, which was estimated using an option pricing model. Compensation cost for service-based units is recognized over the requisite service period on a straight-line basis. For performance related units, expense is recognized when the performance related condition is considered probable. 
 In connection with the Closing, the Company along with the Board established and approved and assumed the Bridger Aerospace Group Holdings, Inc. 2023 Omnibus Incentive Plan (the “Plan”) which allowed the Company to grant RSUs to Bridger employees (the “Participants”). Upon satisfying the vesting conditions, each RSU provides the Participants the right to receive one share of Common Stock. The fair value of RSUs is determined based on the number of shares granted and the quoted market price of the Common Stock on the date of grant. Compensation cost for the RSUs is recognized as the performance condition of the Closing of the transaction was met and over the requisite service period based on the graded-vesting method. The Company accounts for forfeitures as they occur. Stock-based compensation is included in Selling, general and administrative expense on the Unaudited Condensed Consolidated Statements of Operations. 
 Advertising Expense 
 Advertising costs are expensed as incurred and are included in Selling, general and administrative expense on the Unaudited Condensed Consolidated Statements of Operations. Advertising expense for the three and nine months ended September 30, 2023 was approximately $ 52 thousand and $ 104 thousand, respectively, and for the three and nine months ended September 30, 2022 was approximately $ 153 thousand and $ 520 thousand, respectively. 
 Recent Accounting Pronouncements 
 Recently Adopted Accounting Pronouncements 
 In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this ASU replace the incurred loss model for recognition of credit losses with a methodology that reflects expected credit losses over the life of the loan and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. The Company adopted this standard on January 1, 2023. The adoption of this standard did not have a significant impact on the Company’s unaudited condensed consolidated financial statements. 
 In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment. This update modifies the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. In order to reduce complexity, an entity no longer will determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. The Company adopted this standard on January 1, 2023. The adoption of this standard did not have a significant impact on the Company’s unaudited condensed consolidated financial statements. 
 Recently Issued Accounting Pronouncements 
 In September 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and in January 2021, issued ASU No. 2021-01, Reference Rate Reform: Scope. These updates provide optional expedients and exceptions for applying US GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The optional guidance is 
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 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 provided to ease the potential burden of accounting for reference rate reform. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, to extend the temporary accounting rules under Topic 848 from December 31, 2022 to December 31, 2024. The Company is currently evaluating the impact of adopting the new accounting guidance on the Company’s unaudited condensed consolidated financial statements. 
 
 Note 3 – Cash Equivalents and Investments in Marketable Securities 
 The investments in marketable securities are classified as available-for-sale debt securities with short-term maturities of less than one year. The fair values, gross unrealized gains and losses of the available-for-sale securities by type are as follows: 
 
 As of
September 30, 2023 As of
December 31, 2022 
 Carrying Value 
 Cash equivalents 
 Commercial paper $ — $ 29,890,313 
 Money market fund 6,893,438 12,640 
 Total cash equivalents $ 6,893,438 $ 29,902,953 
 Restricted cash 
 Money market fund $ 9,251,919 $ 9,284,362 

 
 
 As of September 30, 2023 
 Purchase
Price Unrealized
Gains Unrealized
Losses Fair Value 
 Investment in marketable securities 
 Commercial paper $ 1,908,494 $ 90,606 $ — $ 1,999,100 
 Corporate bonds and notes 246,465 3,503 — 249,968 
 Total marketable securities $ 2,154,959 $ 94,109 $ — $ 2,249,068 

 
 As of December 31, 2022 
 Purchase
Price Unrealized
Gains Unrealized
Losses Fair Value 
 Investment in marketable securities 
 Commercial paper $ 32,635,849 $ 277,674 $ — $ 32,913,523 
 Corporate bonds and notes 15,413,122 3,668 — 15,416,790 
 Government securities 6,658,634 — ( 8,791 ) 6,649,843 
 Total marketable securities $ 54,707,605 $ 281,342 $ ( 8,791 ) $ 54,980,156 

 The net unrealized gain included in total other comprehensive income (loss) for the three and nine months ended September 30, 2023 is $( 13 ) thousand and $ 277 thousand, respectively. The net unrealized gain included in total other comprehensive income (loss) for each of the three and nine months ended September 30, 2022 is $ 28 thousand. 
 The proceeds from sales of available-for-sale securities and gross realized gains included in earnings from sales of available-for-sale securities for the nine months ended September 30, 2023 are $ 53,089 thousand and $ 562 thousand, respectively. The Company determines gains and losses using the first-in first-out method. For the three and nine months ended September 30, 2023, $ 100 thousand and $ 482 thousand has been reclassified out of accumulated other comprehensive income, respectively. 
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 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 Note 4 – Accounts and Note Receivable 
 Accounts and note receivable consist of the following: 
 
 As of September 30,
2023 As of December 31,
2022 
 Trade accounts receivable $ 22,383,983 $ 28,902 
 Note receivable 3,000,000 — 
 Other receivables 17,854 — 
 Total accounts and note receivable $ 25,401,837 $ 28,902 

 On September 5, 2023, the Company entered into a secured promissory note in the amount of $ 3,000 thousand. This note accrues interest at a rate of 8.5 % per annum and is due and payable on the 60 th day after termination of the note. Other receivables consists primarily of accrued interest on the Note receivable. 
 
 Note 5 – Aircraft Support Parts 
 Aircraft support parts consist of the following: 
 
 As of September 30,
2023 As of December 31,
2022 
 Repairables and expendables $ 488,145 $ 1,734,292 
 Other support parts — 26,978 
 Total aircraft support parts $ 488,145 $ 1,761,270 

 
 Note 6 – Prepaid Expenses and Other Current Assets 
 Prepaid expenses and other current assets consist of the following: 
 
 As of September 30,
2023 As of December 31,
2022 
 Prepaid insurance $ 1,491,823 $ 968,721 
 Deposits 1,206,769 65,641 
 Prepaid subscriptions 1,207,655 770,724 
 Other current assets 62,563 29,946 
 Total prepaid expenses and other current assets $ 3,968,810 $ 1,835,032 

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 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 Note 7 – Property, Plant and Equipment, Net 
 Property, plant and equipment, net consist of the following: 
 
 As of September 30,
2023 As of December 31,
2022 
 Aircraft $ 188,595,020 $ 160,113,061 
 Less: Accumulated depreciation ( 25,368,693 ) ( 16,783,360 ) 
 Aircraft, net 163,226,327 143,329,701 
 Construction-in-progress—Aircraft — 16,992,010 
 Buildings 34,779,836 16,519,231 
 Vehicles and equipment 2,922,163 2,810,560 
 Construction-in-progress - Buildings 4,500 13,780,316 
 Finance lease right-of-use asset 130,378 130,378 
 Licenses 234,682 234,682 
 Less: Accumulated depreciation ( 2,825,585 ) ( 1,705,465 ) 
 Buildings and equipment, net 35,245,974 31,769,702 
 Total property, plant and equipment, net $ 198,472,301 $ 192,091,413 

 For the three and nine months ended September 30, 2023, the Company recorded $ 5,072 thousand and $ 9,057 thousand of depreciation expense in Cost of revenues, respectively, and $ 149 thousand and $ 1,097 thousand of depreciation expense in Selling, general and administrative expense, respectively. For the three and nine months ended September 30, 2022, the Company recorded $ 4,118 thousand and $ 7,590 thousand of depreciation expense in Cost of revenues, respectively, and $ 322 thousand and $ 910 thousand of depreciation expense in Selling, general and administrative expense, respectively. 
 Aircraft are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. In 2023, the Company identified indicators of impairment for one of the Twin Commander surveillance platforms. The Company determined this asset group is not a viable contract operating plane due to a significant adverse change in the physical state of the asset, preventing the asset from acting as a revenue generating asset and anticipating sure cash flow losses. The Company believes the lack of cash flow and continued maintenance expenditure render the carrying amount of the asset unrecoverable. For the three and nine months ended September 30, 2023, the Company recorded total impairment charges of zero and $ 627 thousand, respectively, in Selling, general and administrative expense on the Unaudited Condensed Consolidated Statements of Operations. For the three and nine months ended September 30, 2022, the Company recorded no impairment charges. 
 For the three and nine months ended September 30, 2023, the Company recorded a net loss on sale/disposal of assets of $ 34 thousand and $ 426 thousand, respectively, in Selling, general and administrative expense on the Unaudited Condensed Consolidated Statements of Operations. For the three and nine months ended September 30, 2022, the Company recorded a loss on disposals of assets related to the obsolescence of an aging aircraft of $ 807 thousand and $ 1,588 thousand, respectively, in Selling, general and administrative expense on the Unaudited Condensed Consolidated Statements of Operations. 
 For the three and nine months ended September 30, 2023, capitalized interest to equipment from debt financing was $ 419 thousand and $ 1,242 thousand, respectively. For the three and nine months ended September 30, 2022, capitalized interest to equipment from debt financing was $ 216 thousand and $ 358 thousand, respectively. Aircraft that is currently being manufactured is considered construction in process and is not depreciated until the aircraft is placed into service. Aircraft that is temporarily not in service is not depreciated until placed back into service. 
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 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 Note 8 – Acquisition Activity 
 During 2023, the Company completed the following acquisition of Ignis Technologies, Inc. (“Ignis”) with the intention of expanding the technology used in implementing our firefighting services. Ignis is a fire technology company delivering mission-critical intelligence and technology solutions to firefighting organizations. This acquisition was not individually material to our financial position, results of operations, or cash flows. 
 On September 12, 2023, the Company completed the acquisition of all the outstanding equity interests of Ignis (the “Acquisition”) for total consideration of $ 11,561 thousand, payable in unregistered shares of Bridger’s Common Stock, consisting of $ 3,242 thousand payable at closing. At the closing, 426,531 restricted shares of Common Stock were issued to the Ignis shareholders (determined based upon a volume-weighted average per-share price ("VWAP") of the Common Stock for the 30 consecutive trading days ended September 11, 2023). The remaining $ 8,319 thousand of Common Stock consideration is contingent upon the achievement of certain operational milestones and, assuming achievement of such milestones, will be issued to the Ignis shareholders in 2024, 2025, and 2026, with the price per share determined based upon a trailing 120 -day VWAP of the Common Stock at the time of each issuance. All of the shares of Common Stock to be issued in the Acquisition will be subject to transfer restrictions for a 12 -month period after each issuance, with 1/12th of the total shares of Common Stock vesting each month over the one -year period after each issuance. 
 None of the shares of Common Stock issued or issuable in connection with the Acquisition was or will be registered under the Securities Act of 1933, as amended (the “Securities Act”), at the time of sale in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act. Recipients of shares of Common Stock in connection with the Acquisition will have customary resale registration rights with respect to such shares of Common Stock pursuant to the terms and conditions of the Acquisition. 
 The Company accounted for the Acquisition under the acquisition method of accounting and has reported the results of operations of the Acquisition as of the respective date of the Acquisition. The Company based the estimated fair values of intangible assets on an income approach utilizing the relief from royalties model. The income approach utilizes management’s estimates of future operating results and cash flows using a weighted average cost of capital that reflects market participant assumptions. For all other assets acquired and liabilities assumed, the fair value reflects the carrying value of the asset or liability due to their short maturity. The Company recorded the excess of the fair value of the consideration transferred in the Acquisition over the fair value of net assets acquired as goodwill. The goodwill reflects our expectations of favorable future growth opportunities. The Company expects that substantially all of the goodwill will not be deductible for federal income tax purposes. 
 Acquisition-related costs associated with the Acquisition are included within Selling, general and administrative expense on the Unaudited Condensed Consolidated Statements of Operations. Acquisition-related costs incurred for the Acquisition completed during each of the three and nine months ended September 30, 2023 were $ 117 thousand. 
 The Company has not presented pro forma combined results for the Acquisition because the impact on previously reported statements of operations was not material. 
 Purchase Price Allocation 
 The Company has performed a preliminary valuation analysis of the fair market value of the assets acquired and liabilities assumed in the Acquisition. The final purchase price allocation will be determined when the Company has completed and fully reviewed the detailed valuations which could differ materially from the preliminary allocations. The final allocations 
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 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 may include changes in allocations of acquired intangible assets as well as goodwill and other changes to assets and liabilities, including deferred taxes. The estimated useful lives of acquired intangible assets are also preliminary. 
 The aggregate purchase price of this acquisition was allocated on a preliminary basis as follows : 
 
 Common Stock $ 11,561,000 
 Aggregate purchase price 11,561,000 
 
 Cash and cash equivalents 2,542 
 Intangible assets (Weighted average useful life of 5.0 years) 
 1,300,000 
 Accounts payable ( 36,716 ) 
 Long-term accrued expenses and other noncurrent liabilities ( 67,180 ) 
 Deferred tax liability ( 314,080 ) 
 Net assets acquired 884,566 
 Goodwill $ 10,676,434 

 
 Note 9 – Goodwill and Intangible Assets, Net 
 The Company’s goodwill as of December 31, 2022 originated from the acquisition of MA, LLC in April 2018. During the nine months ended September 30, 2023, the Company’s goodwill increased from the Acquisition. There were no impairment charges recorded for goodwill for the three and nine months ended September 30, 2023 and 2022. 
 The changes in the carrying amount of goodwill for the nine months ended September 30, 2023, are as follows: 
 
 As of December 31, 2022 $ 2,457,937 
 Addition from acquisition 10,676,434 
 As of September 30, 2023 $ 13,134,371 

 Intangible assets consisted of the following: 
 
 As of September 30, 2023 
 Estimated
Life
(Years) Gross
Carrying
Amount Accumulated
Amortization Net
Carrying
Amount 
 Licenses 10 $ 67,623 $ ( 52,249 ) $ 15,374 
 Internal-use software 3 296,675 ( 183,093 ) 113,582 
 In-process research and development (“IPR&D”) 5 $ 1,300,000 $ — $ 1,300,000 
 Total intangible assets $ 1,664,298 $ ( 235,342 ) $ 1,428,956 

 
 As of December 31, 2022 
 Estimated
Life
(Years) Gross
Carrying
Amount Accumulated
Amortization Net
Carrying
Amount 
 Licenses 10 $ 67,623 $ ( 47,177 ) $ 20,446 
 Internal-use software 3 296,675 ( 108,925 ) 187,750 
 Total intangible assets $ 364,298 $ ( 156,102 ) $ 208,196 

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 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 IPR&D was acquired in the Acquisition discussed in “Note 8 – Acquisition Activity.” Included in the IPR&D is the historical know-how, software, formula protocols, designs, and procedures expected to be needed to complete the technology asset and receive regulatory approval. The Company concluded that the IPR&D is an identifiable intangible asset that would be accounted for as a single asset in a business combination. Upon completion, the Company expects to amortize the IPR&D over its useful life of five years. The Company valued the IPR&D using an income approach based on significant unobservable inputs. 
 Amortization expense for intangible assets and other noncurrent assets was approximately $ 26 thousand and $ 79 thousand for the three and nine months ended September 30, 2023, respectively, and $ 27 thousand and $ 62 thousand for the three and nine months ended September 30, 2022, respectively. Amortization expense is included in Selling, general and administrative expense on the Unaudited Condensed Consolidated Statements of Operations. 
 
 Note 10 – Other Noncurrent Assets 
 Other noncurrent assets consisted of the following: 
 
 As of September 30,
2023 As of December 31,
2022 
 Investment in Overwatch $ 1,000,000 $ 1,000,000 
 Operating lease right-of-use asset 8,119,086 671,054 
 Prepaid subscriptions 3,226,388 1,246,128 
 Interest rate swap 1,519,326 1,407,135 
 Other assets 31,908 31,908 
 Total other noncurrent assets $ 13,896,708 $ 4,356,225 

 
 Note 11 – Accrued Expenses and Other Liabilities 
 Accrued expenses and other liabilities consisted of the following: 
 
 As of September 30,
2023 As of December 31,
2022 
 Accrued salaries, wages, and bonuses $ 1,661,912 $ 6,515,774 
 Finance right-of-use liability 50,903 68,310 
 Accrued professional fees 259,764 2,291,469 
 Embedded derivative of Legacy Bridger Series C Preferred Shares — 1,039,330 
 Embedded derivative of Series A Preferred Stock 993,952 — 
 Warrant liabilities 7,728,464 — 
 Deferred underwriting fee payable 1,500,000 — 
 Freestanding derivative on Legacy Bridger Series C Preferred Shares — 2,186,283 
 Contingent consideration 8,319,000 — 
 Accrued interest expense and other accrued liabilities 2,843,183 6,614,065 
 Total accrued expenses and other liabilities 23,357,178 18,715,231 
 Less: Current accrued expenses and other current liabilities ( 10,536,129 ) ( 18,669,572 ) 
 Total long-term accrued expenses and other noncurrent liabilities $ 12,821,049 $ 45,659 

 On May 24, 2023, the Company issued $ 4.9 million in Class A Common Stock in lieu of bonuses paid for the bonus pool accrued as of December 31, 2022. The Company’s bonus pool was accrued throughout the year and was based upon 2022 performance milestones. On August 19, 2022, the Company also granted $ 10.1 million of discretionary cash bonuses to employees and executives in connection with the issuance of the Legacy Bridger Series C Preferred Shares, issuance of the taxable industrial development revenue bond transaction under the CUSIP of Gallatin County for $ 160,000 thousand (“2022 Bonds”) and execution of the Transaction Agreements. 
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 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 Warrant liabilities 
 The warrant liabilities consist of the following Warrants issued by the Company in connection with the Reverse Recapitalization: 
 Public Warrants 
 The Company issued Public Warrants to purchase 17,250,000 shares of Common Stock at an exercise price of $ 11.50 per share in exchange for the 17,250,000 JCIC warrants originally issued by JCIC in its initial public offering. The Warrants may only be exercised for a whole number of shares of Common Stock. The exercise price and number of shares of Common Stock issuable upon exercise of the Warrants may also be adjusted in certain circumstances including in the event of a share dividend, recapitalization, reorganization, merger or consolidation. In no event will the Company be required to net cash settle any Warrant. 
 The Warrants became exercisable 30 days following the Reverse Recapitalization and will expire January 24, 2028. 
 Under certain circumstances, the Company may elect to redeem the Public Warrants at a redemption price of $ 0.01 per Public Warrant at any time during the term of the warrant in which the Common Stock trading price has been at least $ 18.00 per share for 20 trading days within the 30 trading-day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the Warrant holders. If the Company elects to redeem the Public Warrants, it must notify the Public Warrant holders in advance, who would then have at least 30 days from the date of notification to exercise their respective warrants. If the warrant is not exercised within that 30-day period, it will be redeemed pursuant to this provision. The Company may also elect to redeem the outstanding Warrants at a redemption price of $ 0.10 per Warrant at any time during the term of the Warrant in which the Common Stock trading price is between $ 10.00 per share and $ 18.00 per share (as adjusted for share splits, share dividends, rights issuances, subdivisions, reorganization, recapitalizations and the like) for any 20 trading days within the 30 trading-day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the Warrant holders. In such case, the Warrant holders will be able to exercise their Warrants on a cashless basis prior to the redemption for a number of shares of our Common Stock determined based on the redemption date and the fair market value of the Common Stock. 
 As of September 30, 2023, 17,249,874 Public Warrants remain outstanding. The Public Warrants are liability-classified with a balance of $ 5,002 thousand and a fair value of $ 0.29 per warrant as of September 30, 2023. 
 Private Placement Warrants 
 The Company issued Private Placement Warrants to purchase 9,400,000 shares of Common Stock at an exercise price of $ 11.50 per share in exchange for the 9,400,000 JCIC warrants originally purchased in a private placement by JCIC Sponsor, LLC (“JCIC Sponsor”) contemporaneously with JCIC’s initial public offering. JCIC Sponsor, or its permitted transferees, has the option to exercise the Private Placement Warrants on a cashless basis. If the Private Placement Warrants are held by holders other than JCIC Sponsor or its permitted transferees, the Private Placement Warrants will be redeemable by the Company in all redemption scenarios and exercisable by the holders on the same basis as the Public Warrants. 
 As of September 30, 2023, the Company had 9,400,000 outstanding Private Placement Warrants to purchase 9,400,000 shares of Common Stock. The Private Placement Warrants are liability-classified with a balance of $ 2,726 thousand and a fair value of $ 0.29 per warrant as of September 30, 2023. 
 Contingent consideration 
 The Company assumed Contingent consideration as part of the Acquisition discussed in “Note 8 – Acquisition Activity.” The Company is required to make contingent payments to the sellers based on the achievement of certain operational milestones. The preliminary fair value of the liability for the contingent payments recognized upon the acquisition as part of the purchase accounting opening balance sheet. The initial cost was recognized at fair value at closing with subsequent changes in estimated fair value recognized as Selling, general and administrative expenses within the Unaudited Condensed Consolidated Statements of Operations. As of September 30, 2023, the Company recognized $ 4,756 thousand in Accrued expenses and other current liabilities and $ 3,563 thousand in Long-term accrued expenses and other noncurrent liabilities within the Unaudited Condensed Consolidated Balance Sheets. 
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 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 Note 12 - Interest Rate Swap and Freestanding Derivative 
 Interest Rate Swap 
 The Company assesses interest rate cash flow risk by continually identifying and monitoring changes in interest rate exposures that may adversely affect expected future cash flows and by evaluating hedging opportunities. 
 The Company entered an interest rate swap with Rocky Mountain Bank (“RMB”) on March 12, 2020 to reduce risk related to variable-rate debt from the term loan, which was subject to changes in market rates of interest as discussed in “Note 14 – Long-Term Debt.” The interest rate swap is designated as a cash flow hedge. The Company records its corresponding derivative asset on a gross basis in Other noncurrent assets at fair value on the Unaudited Condensed Consolidated Balance Sheets. 
 Each month, the Company made interest payments to RMB under its loan agreement based on the current applicable one-month LIBOR rate plus the contractual LIBOR margin then in effect with respect to the term loan, without reflecting the interest rate swap until June 30, 2023. LIBOR was replaced by 1-month CME Term Secured Overnight Financing Rate (“SOFR”) plus 0.11448 % tenor spread adjustment. At the end of each calendar month, the Company receives or makes payments on the interest rate swap difference, if any, based on the received interest rate set forth in the table below. Interest payments on the Company’s term loan and payments received or made on the interest rate swap are reported net on the Unaudited Condensed Consolidated Statements of Operations as interest expense. 
 The Company had the following interest rate swap designated as a cash flow hedge: 
 
 As of September 30, 2023 
 Effective
Date Maturity
Date Notional
Amount Fair Value Pay Fixed Receive Rate 
 4/15/2020 3/15/2030 $ 10,627,419 $ 1,519,326 3.887 % 1 Month SOFR + 2.5 % 
 
 
 As of December 31, 2022 
 Effective
Date Maturity
Date Notional
Amount Fair Value Pay Fixed Receive Rate 
 4/15/2020 3/15/2030 $ 11,110,484 $ 1,407,135 3.887 % 1 Month LIBOR + 2.5 % 
 

 The Company accounts for the interest rate swap as a cash flow hedge for accounting purposes under US GAAP. The Company reflects the effect of this hedging transaction in the unaudited condensed consolidated financial statements. The unrealized gain is reported in other comprehensive income (loss). If the Company terminates the interest rate swap agreement, the cumulative change in fair value at the date of termination would be reclassified from Accumulated other comprehensive income, which is classified in stockholders’ deficit, into earnings on the Unaudited Condensed Consolidated Statements of Operations. 
 Freestanding Derivative 
 On April 9, 2022, JPMorgan Chase Funding Inc. (“JPMCF”) entered into a letter agreement with the Company to receive an excess hold fee of 5 % of the aggregate initial stated value of the Legacy Bridger Series C Preferred Shares held by JPMCF in excess of $ 157,894,736.84 as of March 15, 2023. The excess hold fee was considered a freestanding derivative instrument until March 15, 2023 and became a fee payable thereafter. The Company paid $ 1,119 thousand and the remaining $ 1,118 thousand of the excess hold fee in June and July 2023, respectively. 
 As of December 31, 2022, the fair value of the freestanding derivative on Legacy Bridger Series C Preferred Shares was $ 2,186 thousand. Realized gains and losses arising from changes in fair value of the freestanding derivative are recorded in earnings. For the three and nine months ended September 30, 2023, the Company recorded a realized loss of zero and $ 51 thousand in interest expense on the Unaudited Condensed Consolidated Statements of Operations, respectively. 
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 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 Note 13 - Fair Value Measurements 
 Long-term debt, net of debt issuance costs 
 As of September 30, 2023, the Company had $ 156,903 thousand of fixed rate and $ 50,258 thousand of variable rate debt outstanding, respectively. The majority of the fixed rate debt is based on current market rates. The Company estimated the fair value of the fixed rate debt using quoted market prices (Level 2 inputs) within the fair value hierarchy. The variable rate debt approximates fair value based on the closing or estimated market prices of similar securities comparable to the Company’s debts as of September 30, 2023 and December 31, 2022. Debt financing activities and loan agreements are further described in “Note 14 – Long-Term Debt.” 
 Recurring Fair Value Measurement 
 Our cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and other current assets and liabilities (excluding derivative instruments) are carried at amounts which reasonably approximate their fair values due to their short-term nature. 
 The following tables summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy: 
 
 As of September 30, 2023 
 Level 1 Level 2 Level 3 
 Assets 
 Cash $ 19,378,525 $ — $ — 
 
 
 
 Restricted cash: 
 Money market fund 9,251,919 — — 
 Other restricted cash 3,040,812 — — 
 Total Restricted cash 12,292,731 — — 
 Investments in marketable securities — 2,249,068 — 
 Interest rate swap — 1,519,326 — 
 Total assets $ 31,671,256 $ 3,768,394 $ — 
 Liabilities 
 Warrant liabilities – Public Warrants $ 5,002,000 $ — $ — 
 Warrant liabilities – Private Placement Warrants — 2,726,000 — 
 Contingent consideration — — 8,319,000 
 Embedded derivative of Series A Preferred Stock — — 993,952 
 Total liabilities $ 5,002,000 $ 2,726,000 $ 9,312,952 

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 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 
 As of December 31, 2022 
 Level 1 Level 2 Level 3 
 Assets 
 Cash $ 259,522 $ — $ — 
 Cash equivalents: 
 Commercial paper — 29,890,313 — 
 Money market fund 12,640 — — 
 Total Cash and cash equivalents 272,162 29,890,313 — 
 Restricted cash: 
 Money market fund 9,284,362 — — 
 Other restricted cash 3,012,789 — — 
 Total Restricted cash 12,297,151 — — 
 Investments in marketable securities — 54,980,156 — 
 Interest rate swap — 1,407,135 — 
 Total assets $ 12,569,313 $ 86,277,604 $ — 
 Liabilities 
 Freestanding derivative on Legacy Bridger Series C Preferred Shares $ — $ — $ 2,186,283 
 Embedded derivative of Legacy Bridger Series C Preferred Shares — — 1,039,330 
 Total liabilities $ — $ — $ 3,225,613 

 
 Interest Rate Swap and Freestanding Derivative 
 The Company’s derivative financial instruments are measured at fair value on a recurring basis based on quoted market prices or using standard valuation models as described in “Note 12 – Interest Rate Swap and Freestanding Derivative.” 
 The notional amounts of the derivative financial instruments do not necessarily represent amounts exchanged by the parties and, therefore, are not a direct measure of our exposure to the financial risks described in “Note 2 – Summary of Significant Accounting Policies.” 
 The fair value of the Company’s interest rate swap agreement was determined based on the present value of expected future cash flows using discount rates appropriate with the terms of the swap agreement. The fair value indicates an estimated amount the Company would be required to receive if the contracts were canceled or transferred to other parties. The Company used a Level 2 valuation methodology to measure this interest rate swap. 
 The fair value of the freestanding derivative was determined based on the present value of the excess hold fee expected to be owed on March 15, 2023, after taking into account the probability of such excess hold fee being outstanding on the same date. The excess hold fee was considered a freestanding derivative instrument until March 15, 2023 and became a fee payable thereafter, noted above as an excess hold fee payable on Series A Preferred Stock. The Company used a Level 3 valuation methodology to measure this freestanding derivative. 
 Mandatorily Redeemable Legacy Bridger Series B Preferred Shares 
 The Company’s mandatorily redeemable Legacy Bridger Series B Preferred Shares are measured at fair value based on capital contributions, plus accrued but unpaid interest. The Legacy Bridger Series B Preferred Shares were redeemed during the year ended December 31, 2022 as furthered discussed in “Note 20 – Mandatorily Redeemable Preferred Shares.” 
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 Table of Contents 
 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 Embedded derivative of Legacy Bridger Series C Preferred Shares and Series A Preferred Stock 
 The Company identified a redemption feature of the Legacy Bridger Series C Preferred Shares that required bifurcation from the host instrument as an embedded derivative liability, as discussed in “Note 19 – Mezzanine Equity.” The embedded derivative was initially valued and remeasured using a “with-and-without” method. The “with-and-without” methodology involved valuing the entire instrument both with and without the embedded derivative using a discounted cash flow approach. Under this methodology, the difference in the estimated fair value between the instrument with the embedded derivative and the instrument without the embedded derivative represents the estimated fair value of the embedded derivative. This valuation methodology is based on unobservable estimates and judgements, and therefore is classified as a Level 3 fair value measurement. The significant unobservable input used in the estimated fair value measurement of the embedded derivative is the timing for which the Company may be in default of certain financing facilities that would require an increase of 2 % interest per annum to be accrued by the holders of the Legacy Bridger Series C Preferred Shares. Legacy Bridger Series C Preferred Shares were re-issued as Series A Preferred Stock as part of the Closing, as further discussed in “Note 19 – Mezzanine Equity.” 
 Commercial paper and Investments in marketable securities 
 The fair values of the commercial paper and available-for-sale marketable securities are based on observable market prices, and therefore classified as a Level 2 fair value measurement. Refer to “Note 3 – Cash Equivalents and Investments in Marketable Securities” for additional details. 
 Warrant Liabilities 
 The Company issued Warrants in connection with the Reverse Recapitalization. The Company classifies the Warrants as liabilities at their fair value and adjust the Warrants to fair value at each reporting period. The warrant liabilities are subject to remeasurement at each balance sheet date until exercised, and any change in fair value are recorded in earnings through Selling, general and administrative expense on the Unaudited Condensed Consolidated Statements of Operations. 
 The Public Warrants are publicly traded under the symbol “BAERW,” and the fair value of the Public Warrants at a specific date is determined by the closing price of the Public Warrants as of that date. Therefore, the Public Warrants are classified as Level 1 of the fair value hierarchy. 
 The Public Warrants are redeemable at any time during the term of the warrant in which the Common Stock share trading price has been at least $ 18.00 per share for 20 trading days within the 30 trading-day period. JCIC Sponsor can redeem both the Private Placement Warrants and the Public Warrants when the stock price is between $ 10.00 to $ 18.00 . As such, it is economically beneficial for the Company to redeem the Private Placement Warrants any time before the stock price crosses the $ 18.00 threshold. Therefore, the Warrants have similar economic value, hence Private Placement Warrants are deemed to have the same value as the Public Warrants and are classified Level 2 of the fair value hierarchy. Refer to “Note 11 – Accrued Expenses and Other Liabilities” for additional details. 
 Contingent consideration 
 In connection with the Acquisition, the Company is required to make contingent payments to the sellers based on the achievement of certain operational milestones. The preliminary fair value of the liability for the contingent payments recognized upon the acquisition as part of the purchase accounting opening balance sheet totaled $ 8,319 thousand. The preliminary fair value of the contingent consideration was determined using the Monte-Carlo simulation-based model discounted to present value. Assumptions used in this calculation are equity volatility, estimated future stock prices and various probability factors. The ultimate settlement of the contingent consideration could deviate from current estimates based on the actual results of these financial measures. This liability is considered to be a Level 3 financial liability that is remeasured each reporting period. Changes in estimated fair value of contingent consideration are recognized as Selling, general and administrative expenses within the Unaudited Condensed Consolidated Statements of Operations. Refer to “Note 11 – Accrued Expenses and Other Liabilities” for additional details. 
 Non-Recurring Fair Value Measurements 
 The Company measures certain assets at fair value on a non-recurring basis, including long-lived assets and goodwill and cost and equity method investments, which are evaluated for impairment. Long-lived assets include property, plant and equipment, net, and certain intangible assets. The inputs used to determine the fair value of long-lived assets are considered Level 3 measurements due to their subjective nature. 
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 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 As of September 30, 2023 and December 31, 2022, the Company did not have any significant assets or liabilities that were remeasured at fair value on a non-recurring basis in periods subsequent to initial recognition. 
 
 Note 14 – Long-Term Debt 
 Long-term debt consisted of the following: 
 
 As of September 30,
2023 As of December 31,
2022 
 Permanent loan agreement, dated August 21, 2020, greater of Prime + 1.5 % or 4.75 % interest rate, maturing August 21, 2035 
 $ 18,592,258 $ 18,852,476 
 Permanent loan agreement, dated October 1, 2020, greater of Prime + 1.5 % or 4.75 % interest rate, maturing October 1, 2035 
 18,655,670 18,924,229 
 Term loan agreement dated September 30, 2019, LIBOR + 2.5 %, maturing March 15, 2030 
 10,627,419 11,110,484 
 Term loan agreement dated February 3, 2020, LIBOR + 2.5 %, maturing February 3, 2027 
 3,952,500 4,371,000 
 Taxable industrial revenue bonds, dated July 21, 2022, 11.5 % interest rates, maturing September 1, 2027 
 160,000,000 160,000,000 
 Various term loan agreements, with earliest start at September 9, 2021, 5 - 5.5 % interest rates, latest maturation on November 17, 2027 
 264,988 317,073 
 Loans payable 212,092,835 213,575,262 
 Less: noncurrent debt issuance costs ( 3,936,819 ) ( 4,664,552 ) 
 Less: current debt issuance costs ( 995,365 ) ( 993,157 ) 
 Less: current portion of long-term debt, net of debt issuance costs ( 1,940,914 ) (2,445,595) 
 Total long-term debt, net of debt issuance costs $ 205,219,737 $ 205,471,958 

 2020 Loan Agreements 
 In 2020, the Company entered into two separate credit facilities brokered through Live Oak Bank (“LOB”) and backed by the U.S. Department of Agriculture for the completed purchase of the Company’s first two Viking Air Limited (“Viking”) CL415EAF aircraft. The Company issued two $ 19,000 thousand promissory notes to LOB, established as 15 -year maturity, first 2 years interest only payments monthly, then 13 -year term principal plus interest due monthly at the rate of the greater of prime plus 1.5 % or 4.75 % per annum. The first of these notes was issued on August 21, 2020 and the second was issued October 1, 2020 to BAT1, LLC and BAT2, LLC, respectively. Debt issuance costs for BAT1 and BAT2 were $ 951 thousand and $ 877 thousand, respectively. Both of these notes are subject to financial covenants requiring the Company to maintain a debt service coverage ratio (“DSCR”), generally calculated as the ratio of the net cash flow (as defined in the applicable note agreements) to the amount of interest and servicing fees required to be paid over the succeeding 12 months on the principal amount of the note, as applicable, that will be outstanding on the payment date following such date of determination, that exceeds 1.25 x at the aircraft or entity level and for the Company’s debt to worth ratio to not exceed 5.00 x at the aircraft or entity level. 
 On February 3, 2020, the Company entered into a credit facility with RMB to finance in part the purchase of four Quest Kodiak aircraft. A promissory note was issued for $ 5,580 thousand, established as a 7 -year maturity, first 8 months interest only payments monthly, 60 day draw period, then 76 -month term plus principal interest due monthly on a 10 -year amortization at the rate of 1 month LIBOR plus 2.5 %. Debt issuance costs for this loan was $ 86 thousand. 
 The Company also maintained a credit facility with RMB issued in 2019 for $ 12,882 thousand, established as a 10 -year maturity, 6 -month draw period, first 6 months interest only payments monthly, then 10 -year term principal plus interest due monthly on a 20 -year amortization at the rate of 1 month LIBOR plus 2.5 %. Debt issuance costs for this loan were $ 116 thousand. 
 Both of these notes with RMB are subject to financial covenants requiring the Company to maintain a DSCR, calculated as the ratio of adjusted EBITDA (as defined in the applicable note agreements) to the amount of interest and principal payments for the fiscal year ending on the compliance date, that exceeds 1.25 x for the Company. These notes are also subject to financial covenants requiring the Company to maintain a Senior Leverage Ratio on a quarterly basis not to 
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 Table of Contents 
 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 exceed 7 .00 to 1.00 through Quarter 3, 2024, 6 .00 to 1.00 through Quarter 3, 2025 and 5 .00 to 1.00 thereafter. This is calculated as Total Funded Senior Debt (as defined in the applicable note agreements) less municipal debt, divided by adjusted EBITDA (as defined in the applicable note agreements). 
 As of December 31, 2022, the Company was not in violation of the Senior Leverage Ratio requirement related to the credit facilities entered with RMB, as RMB amended the loan agreements prior to year-end. These amendments modified the definition of EBITDA to be used in the Senior Leverage Ratio calculation to include certain allowable addbacks and modified the timing requirement of the Senior Leverage Ratio. As of September 30, 2023, the Company was not in violation of the Senior Leverage Ratio requirement related to the credit facilities entered with RMB. 
 2021 Loan Agreements 
 On February 24, 2021, the Company issued taxable industrial development revenue bonds under the CUSIP of Gallatin County for $ 7,330 thousand (“2021 Bonds”). This was done through an offering of the first tranche of which the Company is approved to issue up to $ 160,000 thousand. These proceeds are designated to finance the construction and equipping of the Company’s third aircraft hangar in Belgrade, Montana. They were issued with a 15 -year maturity, first two years interest only payments monthly at the rate of 6.5 %. Debt issuance costs for this loan were $ 570 thousand. 
 On July 21, 2022, upon the closing of the 2022 Bonds, the Company redeemed in full the 2021 Bonds, and recorded a loss of $ 845 thousand on debt extinguishment in Other income (expense) in the Condensed Consolidated Statements of Operations. 
 The Company re-entered into a new short-term loan to finance aviation insurance premiums with IPFS on November 18, 2021. This was financed for $ 610 thousand with a maturity of one year and at a rate of 3.89 %. No debt issuance costs were incurred. 
 The Company entered into various term loan agreements for the purchase of vehicles through First Interstate Bank with the earliest date of September 9, 2021. These loans ranged from $ 29 thousand to $ 66 thousand and were at rates from 5 % to 5.5 % and at durations from 5 to 6 years, with the latest maturation on November 17, 2027. 
 2022 Loan Agreements 
 The Company entered into two term loan agreements for the purchase of vehicles through First Interstate Bank with the date of April 21, 2022. These loans were for $ 65 thousand and $ 72 thousand and were at a rate of 4.8 % and at a duration of 5 years, with the maturation on May 5, 2027. 
 On July 21, 2022, the Company closed on the 2022 Bonds, upon which the Company received from aggregate proceeds of $ 135,000 thousand on July 21, 2022 and $ 25,000 thousand on August 10, 2022. The proceeds were designated to redeem in full the 2021 Bonds and the Legacy Bridger Series A Preferred Shares, to finance the construction and equipping of the Company’s third and fourth aircraft hangar in Belgrade, Montana and to fund the purchase of four additional Viking CL415EAF aircraft. The 2022 Bonds mature on September 1, 2027, with an annual interest rate of 11.5 % payable semiannually on March 1 and September 1 of each year, commencing on September 1, 2022. Debt issuance costs for the 2022 Bonds were $ 4,224 thousand. 
 The 2022 Bonds are subject to redemption or prepayment prior to maturity, as follows: (a) optional redemption in whole or in part, on any day thereafter at par plus accrued interest, and on certain dates, a premium; (b) mandatory redemption at par plus any premium applicable to optional redemptions and a 3 % premium if such redemptions are made prior to September 1, 2025, in whole or in part, in the event of the occurrence of certain events; and (c) extraordinary redemption at par plus accrued interest due to the occurrence of certain casualty, condemnation, or other unexpected events. Optional redemptions are subject to 3 %, 2 %, and 0 % premiums if redemptions are made on or after September 1, 2025, September 2026, and September 2027, respectively. At the Company’s direction, the 2022 Bonds may be redeemed by Gallatin County at any time, at a redemption price equal to 100 % of the principal amount plus accrued interest upon the occurrence of certain events. 
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 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 The 2022 Bonds are subject to financial covenants requiring the Company to maintain a DSCR that exceeds 1.25 x commencing with the fiscal quarter ending December 31, 2023, operate in such a manner to produce gross revenues so as to be at all relevant times in compliance with the DSCR covenant and to maintain liquidity of $ 8,000 thousand in the form of unrestricted cash or investments (excluding margin accounts and retirement accounts) at all times and to be reported. The Company is in compliance with such financial covenants as of September 30, 2023. However, management anticipates that the Company will be in violation of the DSCR and liquidity covenants during the twelve-month period subsequent to the date of this filing, primarily due to lower than expected revenues and cash. The 2022 Bond agreement provides that, with regard to covenant violations, other than non-payment of principal or interest, no event of default shall be deemed to have occurred so long as a reasonable course of action to remedy a violation commences within 30 days of non-compliance and management diligently prosecutes the remediation plan to completion. 
 Management has consulted with bond counsel on the potential impact of future covenant violations and has proactively developed a cost reduction plan to remedy the anticipated covenant breaches in 2024. Management began to implement portions of the plan in November 2023. However, this plan is in progress and there is no assurance that management will be able diligently prosecute the remediation plan to completion, and the Company does not have sufficient liquidity to fund its outstanding obligations for the 2022 Bonds if they became immediately due and payable following subsequent compliance reporting dates. The uncertainty regarding the company’s ability to diligently prosecute remediation plan to completion and the potential impact on the bonds maturity as a result of the anticipated debt covenant violations at subsequent compliance dates could result in the 2022 Bonds becoming immediately due and payable, which raises substantial doubt about our ability to continue as a going concern. 
 Amortization of debt issuance costs was $ 242 thousand and $ 726 thousand for the three and nine months ended September 30, 2023, respectively, and $ 199 thousand and $ 289 thousand for the three and nine months ended September 30, 2022, respectively. 
 
 Note 15 – Commitments and Contingencies 
 Legal Matters 
 The Company is involved in legal proceedings and litigation in the ordinary course of business. Other than routine litigation incidental to the Company’s business, there are no material pending legal proceedings to which the Company is a party or to which any of the Company’s properties are subject. 
 Commitments 
 On April 13, 2018, the Company executed an aircraft purchase agreement with Longview Aviation Asset Management, Inc. and Viking for the purchase of six Viking CL415EAF aircraft. For the year ended December 31, 2022, the Company paid $ 9,098 thousand and received its sixth Viking CL415EAF, the final remaining aircraft under the aircraft purchase agreement, during the three months ended March 31, 2023. Un-invoiced commitments were $ 9,098 thousand as of December 31, 2022. 
 On March 23, 2022, the Company entered into an agreement with Sievert Construction, Inc (“Sievert”) for the construction of a hangar at the Bozeman Yellowstone International Airport in Belgrade, Montana. Payments made under the agreement were $ 1,289 thousand and $ 3,215 thousand for the three and nine months ended September 30, 2023. Un-invoiced commitments were zero and $ 3,756 thousand as of September 30, 2023 and December 31, 2022, respectively. 
 
 Note 16 – Collaborations 
 On February 22, 2022, the Company entered into a collaboration agreement (the “Collaboration Agreement”) with Overwatch Imaging, Inc. (“Overwatch”), a Delaware corporation, under which the Company and Overwatch collaborate to develop and implement FireTrac. FireTrac is a program in which the Company will collect timely imagery of areas affected by wildland fire using Overwatch’s products and services. 
 Overwatch agrees to provide the products and services at a discount to the Company under the Collaboration Agreement. Overwatch’s products and services under the Collaboration Agreement include, but are not limited to, imaging systems, software engineer labor related to software-as-a-service support, labor related to sensor operations, and cloud-based image data web service. In exchange, the Company agrees to pay Overwatch a 7.5 % share of revenue from FireTrac on a quarterly basis. FireTrac has not generated revenue since the Company entered into the Collaboration Agreement. 
 The Collaboration Agreement will end upon termination by (i) a mutual agreement between the Company and Overwatch, (ii) either or both parties upon revenue payment to Overwatch not meeting certain thresholds stipulated in the Collaboration 
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 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 Agreement within the second, third, or fourth anniversary of the effective date of the Collaboration Agreement, or (iii) either party upon a material breach of the Collaboration Agreement uncured within thirty (30) days after written notice from the non-breaching party. 
 The Company determined that both the Company and Overwatch are active participants and exposed to the significant risks and rewards of the collaboration under the Collaboration Agreement. The Company does not consider its obligations under the Collaboration Agreement as an output of the Company’s ordinary activities in exchange for consideration and Overwatch is not considered a customer under ASC 606. Therefore, the Company considers the collaboration to be within the scope of ASC 808. 
 For the three and nine months ended September 30, 2022, the Company recorded zero and $ 432 thousand of purchases of imaging systems under the Collaboration Agreement in Property, plant and equipment, net, and did not make any purchases during the three and nine months ended September 30, 2023. For the three and nine months ended September 30, 2022, the Company recorded $ 96 thousand and $ 241 thousand of engineering services provided by Overwatch under the Collaboration Agreement in Selling, general and administrative expense, respectively. For the three and nine months ended September 30, 2023, the Company recorded $ 14 thousand and $ 40 thousand of engineering services provided by Overwatch under the Collaboration Agreement in Selling, general and administrative expense, respectively. 
 
 Note 17 – Stock-Based Compensation 
 Incentive Units 
 During the years ended December 31, 2022 and 2021, Legacy Bridger granted Incentive Units to selected board members and executives. Within each grant, 80 % of the Incentive Units vest annually over a four-year period subject to continued service by the grantee (the “Time-Vesting Incentive Units”), and the remaining 20 % of the Incentive Units vest upon a qualifying change of control event (the “Exit-Vesting Incentive Units”). Notwithstanding the above, any unvested Time-Vesting Incentive Units will become vested if a qualifying change of control event occurs prior to the respective award’s four-year service-based vesting period. Upon termination of the board member or executive, the Company has the right, but not the obligation, to repurchase all or any portion of the vested Incentive Units at fair market value. 
 For the Time-Vesting Incentive Units, compensation cost is recognized over the requisite service period on a straight-line basis. Upon a qualifying change of control event, the unrecognized compensation expense related to the Time-Vesting Incentive Units will be recognized when the change of control event is considered probable. For the Exit-Vesting Incentive Units, expense is recognized when a qualifying change of control event is considered probable, which has not occurred as of September 30, 2023. 
 Compensation cost for the Incentive Units is measured at their grant-date fair value. Forfeitures are accounted for as they occur. 
 The fair value of the Incentive Units is derived through an option pricing model, which incorporates various assumptions. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs. Expected volatility was calculated based on the observed equity volatility for comparable companies. The expected time to liquidity event is based on management’s estimate of time to an expected liquidity event. The dividend yield was based on the Company’s expected dividend rate. The risk-free interest rate is based on U.S. Treasury zero-coupon issues. The weighted-average assumptions the Company used in the option pricing model for 2021 are as follows: 
 
 Dividend yield (%) 0 
 Expected volatility (%) 46.5 
 Risk-free interest rate (%) 1.26 
 Term (in years) 5.00 
 Discount for lack of marketability (%) 30 

 
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 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 Incentive Unit activity for the period from January 1, 2022 to September 30, 2023 was as follows: 
 
 Time-Vesting Incentive Units Exit-Vesting Incentive Units 
 Number of
Awards Weighted
average
grant date
fair value Number of
Awards Weighted
average
grant date
fair value 
 Unvested as of January 1, 2022 242,424 $ 0.15 80,808 $ 0.11 
 Granted — — — — 
 Vested 80,808 0.11 — — 
 Forfeited — — — — 
 Unvested as of December 31, 2022 161,616 $ 0.17 80,808 $ 0.11 
 Granted — — — — 
 Vested — — — — 
 Forfeited ( 121,212 ) 0.22 ( 40,404 ) 0.22 
 Unvested as of September 30, 2023 40,404 $ 0.01 40,404 $ 0.01 

 For the three and nine months ended September 30, 2023, the Company recognized stock-based compensation expense related to incentive units of $ 2 thousand and $ 7 thousand within Selling, general and administrative expense on the Unaudited Condensed Consolidated Statements of Operations, respectively. For the three and nine months ended September 30, 2022, the Company recognized stock-based compensation expense related to incentive units of $ 2 thousand and $ 7 thousand within Selling, general and administrative expense on the Unaudited Condensed Consolidated Statements of Operations, respectively. As of December 31, 2022, there was $ 27 thousand and $ 9 thousand of unrecognized compensation expense related to the unvested Time-Vesting Incentive Units and Exit-Vesting Incentive Units, respectively. 
 Restricted Stock Units 
 In January 2023, in connection with the Closing, the Company and its Board established and approved and assumed the Plan, which allowed the Company to grant RSUs to Bridger employees (the “Participants”). RSUs are settled in shares of Common Stock as the RSUs become vested. The RSUs accrue dividend equivalents associated with the underlying shares of Common Stock as the Company declares dividends. Dividends will be paid to holders of RSUs in cash upon the vesting date of the associated RSU and will be forfeited if the RSU does not vest. 
 On January 24, 2023, the Company granted 6,581,496 RSUs, of which 2,400,354 RSUs vested immediately upon Closing and will settle on or after January 24, 2024. The fair value of the RSUs that vested immediately upon Closing is the closing stock price on the date of grant, subject to a discount for lack of marketability due to the post-vesting restrictions. The remaining 4,181,142 RSUs vest over a period ranging from three to six years , subject to the participant’s continued employment. The fair value of the RSUs that vest over time is the closing stock price on the date of grant. Upon vesting of the award, the Company will issue shares of Common Stock to the award holder. 
 On April 13, 2023, the Company granted 2,234,750 RSUs to all employees of the Company. These RSUs vest over a period of one to six years , subject to the participant’s continued employment. The fair value of the RSUs that vest over time is the closing stock price on the date of grant. Upon vesting of the award, the Company will issue shares of Common Stock to the award holder. 
 On September 13, 2023, the Company granted 194,436 RSUs to one of the Company’s non-employee directors. These RSUs vest over a period of one to five years , subject to the participant’s service with the Company. The fair value of the 
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 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 RSUs that vest over time is the closing stock price on the date of grant. Upon vesting of the award, the Company will issue shares of Common Stock to the award holder. 
 The following is a summary of RSU activity for the period ended September 30, 2023: 
 
 Management Awards Employee Awards Non-Employee Director 
 Number of
Awards Weighted average
grant date fair
value Number of
Awards Weighted average
grant date fair
value Number of
Awards Weighted average
grant date fair
value 
 Unvested as of December 31, 2022 — $ — — $ — — $ — 
 Granted 6,581,496 9.76 2,234,750 4.56 194,436 7.59 
 Forfeited — — ( 135,875 ) 4.56 — — 
 Vested ( 2,400,354 ) 9.00 — — — — 
 Unvested as of September 30, 2023 4,181,142 $ 10.19 2,098,875 $ 4.56 194,436 $ 7.59 

 The total fair value of RSUs vested during the nine months ended September 30, 2023 was $ 21,603 thousand. 
 For the three and nine months ended September 30, 2023, the Company recorded stock-based compensation expense related to RSUs of $ 6,605 thousand and $ 38,651 thousand within Selling, general and administrative expense on the Unaudited Condensed Consolidated Statements of Operations. As of September 30, 2023, total compensation cost related to all RSUs not yet recognized was $ 36,605 thousand, which is expected to be recognized over a weighted-average period of 1.51 years. 
 
 Note 18 – Related Party Transactions 
 On July 10, 2023, the Company entered into two operating lease agreements, each for a Pilatus PC-12 under the ownership of Mr. Timothy Sheehy, the Chief Executive Officer. The Company recorded approximately $ 6,569 thousand of right-of-use assets, $ 1,173 thousand of right-of-use current liabilities, and $ 5,396 thousand of right-of-use noncurrent liabilities as of September 30, 2023, respectively. The Company incurred approximately $ 139 thousand in lease expense for each of the three and nine months ended September 30, 2023. 
 For the three and nine months ended September 30, 2023, the Company earned zero and $ 433 thousand, respectively, in revenues due to labor, maintenance and improvements to an aircraft under the ownership of Mr. Timothy Sheehy, the Chief Executive Officer. 
 On July 21, 2022, the Company closed on the 2022 Bonds, upon which the Company received aggregate proceeds of $ 135,000 thousand on July 21, 2022 and $ 25,000 thousand on August 10, 2022. In connection with the original issuance, three senior executives of the Company purchased approximately $ 10,000 thousand of the 2022 Bonds, which purchases were entered into on an arm’s length basis during the public offering for the 2022 Bonds, and on the same terms and conditions that were offered to all Bond purchasers. The Company paid $ 575 thousand and $ 1,150 thousand in interest to these three bond holders during the three and nine months ended September 30, 2023, respectively, and incurred approximately $ 293 thousand and $ 856 thousand in interest for the three and nine months ended September 30, 2023, respectively. The Company incurred approximately $ 95 thousand in interest for each of the three and nine months ended September 30, 2022. Refer to “Note 14 – Long-Term Debt.” 
 
 Note 19 – Mezzanine Equity 
 Legacy Bridger Series C Preferred Shares 
 On April 25, 2022, Legacy Bridger authorized and issued 315,789.473684 Legacy Bridger Series C Preferred Shares for aggregate proceeds of $ 288,516 thousand, net of issuance costs of $ 11,484 thousand. The Legacy Bridger Series C Preferred Shares ranked senior to Legacy Bridger’s common shares and ranked subordinate to Legacy Bridger Series A Preferred Shares, which were later redeemed in 2022, with respect to the distribution of assets upon liquidation or certain triggering events. The Legacy Bridger Series C Preferred Shares did not participate in earnings of Legacy Bridger and were non-voting shares. 
 Prior to the consummation of the qualified public offering, the Legacy Bridger Series C Preferred Shares accrued interest daily at 7 % per annum for the first year, 9 % per annum for the second year and 11 % per annum thereafter and were 
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 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 compounded semi-annually at June 30th and December 31st of each year. Following the consummation of a qualified public offering, the Legacy Bridger Series C Preferred Shares were to accrue interest daily at 7 % per annum for the first 6 years, 9 % per annum for the seventh year and 11 % per annum thereafter, compounded semi-annually. Accrued interest for the Legacy Bridger Series C Preferred Shares was $ 15,344 thousand as of December 31, 2022 recorded to increase the redemption amount in mezzanine equity. 
 Upon the Closing, Legacy Bridger surrendered and exchanged all 315,789.473684 issued and outstanding Legacy Bridger Series C Preferred Shares into 315,789.473684 shares of Series A Preferred Stock. The Company’s Certificate of Incorporation included provisions of the Legacy Bridger Series C Preferred Shares that were already in effect prior to the consummation of the Reverse Recapitalization . As a result of the Reverse Recapitalization , the maximum redemption value of the Company’s Series A Preferred Stock changed to approximately $ 332,659 thousand and excluded the 50 % multiplier which had historically been included in the maximum redemption value of Legacy Bridger Series C Preferred Shares. 
 The Legacy Bridger Series C Preferred Shares were convertible at the election of the holder into shares of Legacy Bridger’s Class B common stock after the occurrence of certain specified events, including after a qualified public offering, without the payment of additional consideration by the holder into such number of Legacy Bridger Class B common stock as determined by dividing the original issue price, plus accrued interest by a conversion price in effect at the time of conversion. The conversion price of Legacy Bridger Series C Preferred Shares was initially equal to $ 12.929104 . The applicable conversion price was subject to future adjustments upon the occurrence of a qualified public offering. 
 The Legacy Bridger Series C Preferred Shares were mandatorily redeemable by Legacy Bridger on April 25, 2032 at an amount dependent on whether the redemption occurs prior or following a qualified public offering. If the mandatory redemption occurs prior to the consummation of a qualified public offering, the redemption amount was equal to the stated value, plus the initial issue price multiplied by 50 %, plus accrued but unpaid interest. If the mandatory redemption occurs following the consummation of a qualified public offering, the redemption amount was equal to the stated value, plus accrued but unpaid interest. The Legacy Bridger Series C Preferred Shares were also redeemable upon certain triggering events outside of the control of Legacy Bridger. The redemption events include redemption by the holder after March 29, 2027 and prior to a qualified public offering, or a fundamental change in Legacy Bridger’s voting and governance structure such as the sale of Legacy Bridger or its subsidiaries representing more than 50 % of Legacy Bridger’s voting stock or a similar liquidity event. 
 Given the conversion feature was considered substantive, the mandatory redemption date was not certain and the optional redemption was upon the occurrence of certain events that are considered not solely within Legacy Bridger’s control, the Legacy Bridger Series C Preferred Shares were classified as mezzanine equity. 
 The Company identified certain conversion and redemption features that are required to be bifurcated from the host instrument as embedded derivative liabilities. The Legacy Bridger Series C Preferred Shares contained a clause which allowed for an increase of 2 % interest per annum to be accrued by the holders of the Legacy Bridger Series C Preferred Shares in the event of a default under certain financing facilities, including noncompliance with certain financial covenants, during the period from 30 days after the occurrence of such default until such default was cured or remediated. The Company expected to be exposed to the 2 % interest rate increase for no more than 2 months. As of December 31, 2022, the fair value of the embedded derivative was $ 1,039 thousand recorded as a liability in the Condensed Consolidated Balance Sheets and remeasured to fair value at each balance sheet date with changes in fair value recorded within Interest expense in the Condensed Consolidated Statements of Operations. The Company also entered into a letter agreement with JPMCF on April 9, 2022 to pay an excess hold fee of 5 % of the aggregate initial stated value of the Legacy Bridger Series C Preferred Shares held by JPMCF in excess of $ 157,894,736.84 as of March 15, 2023. Further details of the freestanding derivative and subsequent excess hold fee payable are described in “Note 12 – Interest Rate Swap and Freestanding Derivative.” 
 The Company determined the fair value of the other features requiring bifurcation, both individually and in the aggregate were immaterial at inception and as of December 31, 2022. The fair value of these features will be assessed at each reporting date and will be recognized and remeasured at fair value, if material. 
 As of December 31, 2022, it was probable that the Legacy Bridger Series C Preferred Shares may become redeemable at either the holder’s option on or after March 29, 2027 and prior to the consummation of a qualified public offering or in the event of a qualified public offering. The Company elected to recognize changes in redemption value immediately, adjusting the Legacy Bridger Series C Preferred Shares to the maximum redemption value at each reporting date. As of December 31, 2022, the Legacy Bridger Series C Preferred Shares were carried at their redemption value of $ 489,022 thousand. 
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 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 Series A Preferred Stock 
 The Series A Preferred Stock are convertible at the election of the holders into shares of Common Stock, without the payment of additional consideration by the holders into such number of shares of Common Stock as determined by dividing the original issue price, plus accrued interest by a conversion price equal to $ 11.00 per share at the time of conversion. 
 Shares of Series A Preferred Stock are mandatorily redeemable by the Company on April 25, 2032 at a redemption amount that is equal to the stated value, plus accrued but unpaid interest. Accrued interest for the Series A Preferred Stock was $ 16,128 thousand as of September 30, 2023. Shares of Series A Preferred Stock are also redeemable upon certain triggering events outside of the control of the Company. The triggering events include redemption by the holder on or after April 25, 2027, or a fundamental change in the Company’s voting and governance structure such as the sale of the Company or its subsidiaries representing more than 50 % of the Company’s voting stock or a similar liquidity event. 
 As of the Closing Date and September 30, 2023, it is probable that the Series A Preferred Stock may become redeemable on April 25, 2032. The Company has elected to recognize changes in redemption value immediately, adjusting the preferred stock to the maximum redemption value at each reporting date. Upon Closing, the Series A Preferred Stock had both a carrying value and redemption value of $ 332,659 thousand, the 50 % multiplier, valued at $ 156,363 thousand, was removed. As of September 30, 2023, the Series A Preferred Stock had both a carrying value and redemption value of $ 348,787 thousand. Refer to table below. 
 As of September 30, 2023 the fair value of the embedded derivative related to the event of default is $ 994 thousand recorded as a liability on the Unaudited Condensed Consolidated Balance Sheets and remeasured to fair value at each balance sheet date with changes in fair value recorded within Interest expense or income on the Unaudited Condensed Consolidated Statements of Operations. 
 The Company determined the fair value of the other features requiring bifurcation, both individually and in the aggregate were immaterial at September 30, 2023. The fair value of these features will be assessed at each reporting date and will be recognized and remeasured at fair value, if material. 
 Additionally, the reduction of the conversion price from $ 12.90 per share to $ 11.00 per share triggered a down round conversion feature embedded in the Series A Preferred Stock upon Closing. The Company recognized the value of the effect of a down round feature as a deemed dividend, increasing loss available to common stockholders in the computation of the net income (loss) per share by approximately zero and $ 48 million during the three and nine months ended September 30, 2023. As of September 30, 2023, there are 31,158,962 shares of Common Stock issuable upon conversion. 
 
 Redeemable Series A Preferred Stock 
 Shares Amounts 
 Issued as of the Closing Date 315,789.473684 $ 332,658,947 
 Adjustment to maximum redemption value — 16,128,047 
 Balance as of September 30, 2023 315,789.473684 $ 348,786,994 

 
 Redeemable Legacy Bridger Series C
Preferred Shares 
 Shares Amounts 
 Issuance of Legacy Bridger Series C Preferred Shares 315,789.473684 $ 286,332,735 
 Adjustment to maximum redemption value — 202,688,810 
 Balance as of December 31, 2022 315,789.473684 $ 489,021,545 

 
 Note 20 – Mandatorily Redeemable Preferred Shares 
 Legacy Bridger Series B Preferred Shares 
 Legacy Bridger had 60,000,000 Legacy Bridger Series B Preferred Shares issued and outstanding as of December 31, 2021 at $ 1.00 per share. The Legacy Bridger Series B Preferred Shares were non-voting and accrued interest at 17.5 % per annum, compounded quarterly. A mandatory redemption period was required for the Legacy Bridger Series B Preferred Shares plus their accrued interest in March of 2022. 
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 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 The shares were mandatorily redeemable by Legacy Bridger at an amount equal to the capital contribution, plus accrued but unpaid interest on the earlier of certain redemption events or March 31, 2022. The redemption events included the sale of Legacy Bridger or its subsidiaries representing more than 50 % of Legacy Bridger’s voting stock or assets, a qualified IPO or a similar liquidity event. The shares were redeemable at any time at the option of Legacy Bridger at a redemption price equal to face value, plus accrued, but unpaid interest. The shares had preference to the common shares of Legacy Bridger, were non-voting and did not participate in the earnings of Legacy Bridger. These Legacy Bridger Series B Preferred Shares accrued interest at 17.5 % annually, compounded quarterly. If not redeemed on or prior to March 31, 2022, the Legacy Bridger Series B Preferred Shares would have accrued interest at 21.5 % annually, compounded quarterly. 
 As the Legacy Bridger Series B Preferred Shares were mandatorily redeemable at a specified date, the security was classified as a liability on the Unaudited Condensed Consolidated Balance Sheets. 
 On April 25, 2022, Legacy Bridger used a portion of the proceeds from the issuance of the Legacy Bridger Series C Preferred Shares to redeem all 60,000,000 of Legacy Bridger’s outstanding Legacy Bridger Series B Preferred Shares for $ 69,999 thousand, inclusive of $ 9,999 thousand in accrued interest. There were no Legacy Bridger Series B Preferred Shares as of September 30, 2023 and December 31, 2022. 
 Legacy Bridger Series A Preferred Shares 
 Legacy Bridger was authorized to issue 10,500,000 shares of Series A-1 and A-2 preferred shares (the “Legacy Bridger Series A-1 and A-2 Preferred Shares”) with a par value of $ 0.001 share for $ 105,000 thousand. The Legacy Bridger Series A-1 and A-2 Preferred Shares ranked senior to Legacy Bridger’s common shares and Legacy Bridger Series C Preferred Shares with respect to distribution of assets upon liquidation or certain triggering events, but did not participate in earnings of Legacy Bridger. The Legacy Bridger Series A-1 and A-2 Preferred Shares were voting and non-voting shares, respectively. 
 On April 25, 2022, Legacy Bridger used the proceeds from the issuance of the Legacy Bridger Series C Preferred Shares to redeem 4,444,444 shares of the Legacy Bridger Series A-1 and A-2 Preferred Shares for $ 100,000 thousand. The loss on redemption of $ 34,622 thousand was reflected as a reduction to Accumulated deficit on the Unaudited Condensed Consolidated Balance Sheets. 
 On April 25, 2022, Legacy Bridger and its investors included a new mandatory redemption provision requiring the Legacy Bridger Series A-1 and Series A-2 Preferred Shares to be redeemed on April 25, 2032. Due to the mandatory redemption provision, the Legacy Bridger Series A-1 and A-2 Preferred Shares have been reclassified from mezzanine equity to liability. Legacy Bridger elected the fair value option to measure the modification of the Legacy Bridger Series A-1 and A-2 Preferred Shares, recording a value of $ 132,331 thousand at modification. The modification of the Legacy Bridger Series A-1 and A-2 Preferred Shares have been accounted for as an extinguishment, with the change in fair value of $ 45,609 thousand recorded to Accumulated deficit on the Unaudited Condensed Consolidated Balance Sheets with no gain or loss recorded to net loss. The loss on extinguishment has been included in net loss attributable to common shareholders used to calculate net loss per share. 
 The Legacy Bridger Series A-1 and A-2 Preferred Shares accrued interest on a liquidation preference defined as the combined capital contributions plus accrued preferred interest amounts at a rate of 12 % per annum. 
 The Legacy Bridger Series A-1 and A-2 Preferred Shares were redeemable upon certain triggering events outside of the control of Legacy Bridger in the event of board expansion and deemed liquidation. Failure to pay the Legacy Bridger Series A-1 and A-2 Preferred Shares interest amount on a timely basis would trigger a board expansion event that provided the holders of the Legacy Bridger Series A-1 and A-2 Preferred Shares the option to obtain control of Legacy Bridger’s board of directors and initiate a triggering event. The triggering events included the sale of Legacy Bridger or its subsidiaries representing more than 50 % of Legacy Bridger’s voting stock or assets, a qualified IPO or a similar liquidity event. The Legacy Bridger Series A-1 and A-2 Preferred Shares were redeemable at any time at the option of Legacy Bridger at a redemption price equal to the greater of the product of the investment amount multiplied by 2.25 plus any indemnification amounts or aggregate liquidation preference. 
 Legacy Bridger identified certain redemption features that would be required to be considered for bifurcation. Legacy Bridger elected the fair value option and as such, valued the host preferred shares and embedded features as one instrument. 
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 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 On July 21, 2022 and August 10, 2022, Legacy Bridger used the proceeds from the 2022 Bonds plus cash on hand to redeem in full the remaining 6,055,556 shares of the Legacy Bridger Series A-1 and A-2 Preferred Shares for aggregate proceeds of $ 136,250 thousand. The fair values of the Legacy Bridger Series A-1 and A-2 Preferred Shares were increased by $ 3,919 thousand from interest accrued since the modification on April 25, 2022 and no gains or losses were recorded to net loss upon extinguishment. There were no Legacy Bridger Series A Preferred Shares outstanding as of September 30, 2023 and December 31, 2022. 
 
 Note 21 – Income Taxes 
 As a result of the Reverse Recapitalization, the Company became the successor of Legacy Bridger, as discussed in “Note 1 – Organization and Basis of Presentation , ” which is treated as a partnership for U.S. federal income tax purposes. As a partnership, Legacy Bridger’s net income or loss is allocated among the members in accordance with the Company’s operating agreement, and federal income taxes are not payable or provided for by Legacy Bridger. Members are taxed individually on their pro rata ownership share of Legacy Bridger’s earnings. Subsequent to the Reverse Recapitalization, the Company became the successor of Legacy Bridger. The Company is subject to U.S. federal income taxes, in addition to state and local income taxes, with respect to net taxable income or loss and any related tax credits of the Company. Bridger is also subject to taxes in foreign jurisdiction in which it operates. 
 For the three and nine months ended September 30, 2023, the Company recorded an income tax benefit of $ 314 thousand. The effective tax rate was 0.68 % for the nine months ended September 30, 2023. 
 The Company has assessed the realizability of the net deferred tax assets and in that analysis has considered the relevant positive and negative evidence available to determine whether it is more likely than not that some portion or all of the deferred tax assets will be realized. 
 The Company’s income tax filings will be subject to audit by various taxing jurisdictions. The Company will monitor the status of U.S. federal, state and local income tax returns that may be subject to audit in future periods. No U.S. federal, state and local income tax returns are currently under examination by the respective taxing authorities. 
 
 Note 22 – Net Income (Loss) Per Share 
 Basic and diluted net income (loss) per share of Common Stock is calculated in accordance with ASC 260, Earnings per share. Net income (loss) per Common Stock – basic is calculated by dividing net income (loss) attributable to Common Stockholders by the weighted-average shares of Common Stock outstanding. 
 Net income (loss) per Common Stock – diluted is based on the average number of shares of Common Stock used for the basic earnings per share calculation, adjusted for the weighted-average number of common share equivalents outstanding for the period determined using the treasury stock method and if-converted method, as applicable. Net income (loss) attributable to Common Stockholders – diluted is adjusted for the impact of changes in the fair value of the Public Warrants and Private Placement Warrants, to the extent they are dilutive. 
 Earnings per share calculations for all periods prior to the Closing have been retrospectively adjusted by the Exchange Ratio for the equivalent number of shares outstanding immediately after the Closing to effect the reverse recapitalization. Subsequent to the Closing, net income (loss) per share is calculated based on the weighted average number of Common Stock outstanding. 
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 Table of Contents 
 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 The following table sets forth the computation of the Company’s basic and diluted income (loss) per share: 
 
 For the Three Months Ended
September 30, For the Nine Months Ended
September 30, 
 (in USD, except share data) 2023 2022 2023 2022 
 Numerator—basic and diluted 
 Net income (loss) $ 17,487,976 $ ( 5,650,726 ) $ ( 46,218,564 ) $ ( 25,086,610 ) 
 Series A Preferred Stock—adjustment for deemed dividend upon Closing — — ( 48,300,000 ) — 
 Legacy Bridger Series A Preferred Shares—adjustment for redemption, extinguishment and accrued interest — — — ( 85,663,336 ) 
 Legacy Bridger Series C Preferred Shares - adjustment to maximum redemption value — ( 5,643,337 ) — ( 196,884,119 ) 
 Series A Preferred Stock—adjustment to eliminate 50% multiplier — — 156,362,598 — 
 Series A Preferred Stock—adjustment to maximum redemptions value ( 6,048,025 ) — ( 16,128,047 ) — 
 Net income (loss) attributable to Common Stockholders – basic and diluted $ 11,439,951 $ ( 11,294,063 ) $ 45,715,987 $ ( 307,634,065 ) 
 Denominator—basic 
 Weighted average Common Stock outstanding—Legacy Bridger shareholders 38,848,420 38,770,646 38,848,420 38,770,646 
 Weighted average Common Stock outstanding—Public shareholders 2,084,357 — 1,908,752 — 
 Weighted average Common Stock outstanding—Sponsor and independent directors of JCIC 1,748,189 — 1,600,906 — 
 Weighted average vested restricted stock units outstanding 2,400,354 — 2,198,126 — 
 Weighted average Class A Common Stock outstanding - bonus paid to executives 736,554 — 350,740 — 
 Weighted average Class A Common Stock outstanding - Ignis acquisition 88,088 — 29,685 — 
 Weighted average Common Stock outstanding—basic 45,905,962 38,770,646 44,936,629 38,770,646 
 Denominator—diluted 
 Weighted average Common Stock outstanding—basic 45,905,962 38,770,646 44,936,629 38,770,646 
 Weighted average effect of dilutive securities: 
 Series A Preferred Stock 31,158,962 — 31,158,962 — 
 Unvested Restricted Stock Units 895,923 — 945,295 — 
 Unvested Legacy Bridger Incentive Units 79,912 — 79,497 — 
 Sponsor Earnout Shares 855,000 — 782,967 — 
 Weighted average Common Stock outstanding—diluted 78,895,759 38,770,646 77,903,350 38,770,646 
 Basic and diluted net income (loss) per share 
 Basic net income (loss) per Common Stock $ 0.25 $ ( 0.29 ) $ 1.02 $ ( 7.93 ) 
 Diluted net income (loss) per Common Stock $ 0.15 $ ( 0.29 ) $ 0.59 $ ( 7.93 ) 

 39 

 Table of Contents 
 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 The following table summarizes the potentially dilutive common shares that were excluded from diluted net income (loss) per share computations because the effect would have been anti-dilutive (in thousands): 
 
 For the Three Months Ended
September 30, For the Nine Months Ended
September 30, 
 2023 2022 2023 2022 
 Shares excluded from diluted net income (loss) per share 
 Series A Preferred Stock 315,789 — — — 
 Legacy Series C Preferred Shares — 315,789 — 315,789 
 Unvested Restricted Stock Units 6,280,017 — — — 
 Public Warrants 17,250,000 — 17,250,000 — 
 Private Placement Warrants 9,400,000 — 9,400,000 — 
 Unvested Legacy Bridger Incentive Units 77,775 323,232 — 323,232 
 Sponsor Earnout Shares 855,000 — — — 

 
 Note 23 – Stockholders' Deficit 
 For periods prior to the Closing, Legacy Bridger had Class A, Class B, Class C and Class D Common shares. As described in “Note 1 – Organization and Basis of Presentation,” on January 24, 2023, the Company consummated the Reverse Recapitalization between JCIC and Legacy Bridger. Subsequent to the Closing, the Company’s Common Stock is the only authorized and issued class of common stock. 
 Legacy Bridger Common Shares 
 Legacy Bridger had 30,000,000 Class A Common Shares issued and outstanding as of December 31, 2022. The holders of these shares were entitled to one vote for each share held of record on all matters submitted to a vote of our shareholders. These Class A Common Shares were issued to ElementCompany, LLC. 
 Legacy Bridger had 9,756,130 Class B Common Shares issued and outstanding as of December 31, 2022 and 2021. The holders of these shares were entitled to one vote for each share held of record on all matters submitted to a vote of our shareholders. 
 Legacy Bridger had 243,871 Class C Common Shares issued and outstanding as of December 31, 2022. Legacy Bridger also had 606,061 shares of Class D Common Shares issued and outstanding as of December 31, 2022. The Class C and Class D shares were non-voting shares. 
 The voting power of Legacy Bridger followed the structure of the elected Board members with 3 designees from the holders of Class A Common Shares and 2 designees from the holders of Class B Common Shares. This was planned to remain in place while the holders of Class B Common Shares in aggregate held at least 10 % of the common shares outstanding and prior to any initial public offering, at which point voting power would change, based on the relevant shares outstanding. 
 Bridger Common Stock 
 In connection with the Reverse Recapitalization, the Company issued 43,769,290 shares of Common Stock, of which 39,081,744 shares were issued to Legacy Bridger Common shareholders, 2,084,357 shares were issued to the public shareholders of JCIC and 2,603,189 shares were issued to JCIC Sponsor and independent directors of JCIC upon Closing. Of the shares issued to Legacy Bridger Common shareholders and JCIC Sponsor, 233,323 and 855,000 shares are subject to continuing vesting conditions, respectively. 
 In connection with the Acquisition, the Company issued 426,531 shares of Common Stock which were issued to the shareholders of the Seller. Refer to “Note 8 – Acquisition Activity.” 
 Holders of Common Stock are entitled to full economic rights, including the right to receive dividends when and if declared by the Board, subject to any statutory or contractual restrictions of the payment of dividends and any restrictions on the payment of dividends imposed by the vesting conditions of the unvested Common Stock. 
 Each holder of Common Stock is entitled to one vote for each Common Stock held. 
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 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 Note 24 – Revision of Previously Issued Financial Statements 
 The Company identified an immaterial error in its previously issued annual and interim financial statements. The error relates to accounting for the freestanding derivative instrument further described in the “Note 12 – Interest Rate Swap and Freestanding Derivative,” affecting annual financial statements as of and for the year ended December 31, 2022 and interim financial statements as of and for the six months ended June 30, 2022 and as of and for the nine months ended September 30, 2022. The impact of the error to prior periods’ financial statements were determined to be quantitatively and qualitatively immaterial. In order to improve the consistency and comparability of the financial statements, the Company has revised its previously issued annual and interim financial statements to correct the error. 
 The below tables present line items for prior period impacted financial statements that have been affected by the following error, referred to as the “Revision”: 
 (i) an error in the accounting for a freestanding instrument which requires separate accounting under ASC 815, Derivatives and Hedging related to Legacy Bridger Series C Preferred Shares’ features. 
 
 As of December 31, 2022 
 As Previously
Reported Impact of
Revision As Revised 
 Balance Sheets: 
 Total assets $ 305,978,901 $ — $ 305,978,901 
 Accrued expenses and other current liabilities 16,483,289 2,186,283 18,669,572 
 Total current liabilities 22,120,721 2,186,283 24,307,004 
 Total liabilities 228,393,011 2,186,283 230,579,294 
 Legacy Bridger Series C Preferred Shares 489,021,545 — 489,021,545 
 Accumulated deficit ( 413,118,060 ) ( 2,186,283 ) ( 415,304,343 ) 
 Total members’ deficit ( 411,435,655 ) ( 2,186,283 ) ( 413,621,938 ) 
 Total liabilities, mezzanine equity and members’ deficit $ 305,978,901 $ — $ 305,978,901 

 
 For the year ended December 31, 2022 
 As Previously
Reported Impact of
Revision As Revised 
 Statements of Operations: 
 Interest expense $ ( 20,017,177 ) $ ( 2,709 ) $ ( 20,019,886 ) 
 Net loss $ ( 42,121,959 ) $ ( 2,709 ) $ ( 42,124,668 ) 
 Legacy Bridger Series C Preferred Shares adjustment for maximum redemption value ( 200,505,236 ) ( 2,183,574 ) ( 202,688,810 ) 
 Net loss attributable to common shareholders $ ( 328,290,531 ) $ ( 2,186,283 ) $ ( 330,476,814 ) 
 Net loss per share attributable to common shareholders – basic and diluted $ ( 8.15 ) $ ( 0.05 ) $ ( 8.20 ) 

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 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 
 For the year ended December 31, 2022 
 As Previously
Reported Impact of
Revision As Revised 
 Statements of Members’ Equity: 
 Legacy Bridger Series C Preferred Shares adjustment for maximum redemption value $ ( 200,505,236 ) $ ( 2,183,574 ) $ ( 202,688,810 ) 
 Net loss ( 42,121,959 ) ( 2,709 ) ( 42,124,668 ) 
 Accumulated deficit ( 413,118,060 ) ( 2,186,283 ) ( 415,304,343 ) 
 Accumulated other comprehensive income 1,678,497 — 1,678,497 
 Total members’ deficit $ ( 411,435,655 ) $ ( 2,186,283 ) $ ( 413,621,938 ) 
 
 For the year ended December 31, 2022 
 As Previously
Reported Impact of
Revision As Revised 
 Statements of Cash Flows: 
 Cash Flows from Operating Activities: 
 Net loss $ ( 42,121,959 ) $ ( 2,709 ) $ ( 42,124,668 ) 
 Change in fair value of freestanding derivative — 2,709 2,709 
 Net cash used in operating activities ( 9,917,608 ) — ( 9,917,608 ) 
 Net change in cash, cash equivalents, and restricted cash 25,198,494 — 25,198,494 
 Cash, cash equivalents and restricted cash and cash equivalents – end of period $ 42,459,626 $ — $ 42,459,626 
 Cash and cash equivalents – end of period $ 30,162,475 $ — $ 30,162,475 

 
 As of September 30, 2022 
 As Previously
Reported Impact of
Revision As Revised 
 Balance Sheets: 
 Total assets $ 320,554,139 $ — $ 320,554,139 
 Accrued expenses and other current liabilities 12,355,584 2,124,265 14,479,849 
 Total current liabilities 19,472,020 2,124,265 21,596,285 
 Total liabilities $ 226,008,817 $ 2,124,265 $ 228,133,082 
 Series C Preferred shares 483,385,214 — 483,385,214 
 Accumulated deficit ( 390,307,424 ) ( 2,124,265 ) ( 392,431,689 ) 
 Total members’ deficit ( 388,839,892 ) ( 2,124,265 ) (391,036,037) 
 Total liabilities, mezzanine equity and members’ deficit $ 320,554,139 $ — $ 320,554,139 

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 Table of Contents 
 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 
 For the nine months ended September 30, 2022 
 As Previously
Reported Impact of
Revision As Revised 
 Statements of Operations: 
 Interest expense $ ( 13,052,438 ) $ 59,309 $ ( 12,993,129 ) 
 Net loss $ ( 25,117,707 ) $ 59,309 $ (25,058,398) 
 Legacy Bridger Series C Preferred Shares adjustment for maximum redemption value ( 194,700,545 ) ( 2,183,574 ) ( 196,884,119 ) 
 Net loss attributable to common shareholders $ ( 305,481,588 ) $ ( 2,124,265 ) $ (307,605,853) 
 Net loss per share attributable to common shareholders – basic and diluted $ ( 7.58 ) $ ( 0.06 ) $ (7.64) 
 
 For the nine months ended September 30, 2022 
 As Previously
Reported Impact of
Revision As Revised 
 Statements of Members’ Equity: 
 Legacy Bridger Series C Preferred Shares adjustment for maximum redemption value $ ( 194,700,545 ) $ ( 2,183,574 ) $ ( 196,884,119 ) 
 Net loss ( 25,117,707 ) 59,309 (25,058,398) 
 Accumulated deficit ( 390,307,424 ) ( 2,124,265 ) ( 392,431,689 ) 
 Total members’ deficit $ ( 388,839,892 ) $ ( 2,124,265 ) $ ( 390,964,157 ) 
 
 For the nine months ended September 30, 2022 
 As Previously
Reported Impact of
Revision As Revised 
 Statements of Cash Flows: 
 Cash Flows from Operating Activities: 
 Net loss $ ( 25,117,707 ) $ 59,309 $ (25,058,398) 
 Change in fair value of freestanding derivative — ( 59,309 ) ( 59,309 ) 
 Net cash used in by operating activities ( 7,930,502 ) — (7,930,502) 
 Net change in cash, cash equivalents, and restricted cash 89,107,304 — 89,107,304 
 Cash, cash equivalents and restricted cash and cash equivalents – end of period $ 106,368,436 $ — $ 106,368,436 
 Cash and cash equivalents – end of period $ 94,143,466 $ — $ 94,143,466 
 
 As of June 30, 2022 
 As Previously
Reported Impact of
Revision As Revised 
 Balance Sheets: 
 Total assets $ 309,603,293 $ — $ 309,603,293 
 Accrued expenses and other current liabilities 10,359,417 2,183,574 12,542,991 
 Total current liabilities 32,207,636 2,183,574 34,391,210 
 Total liabilities 209,837,425 2,183,574 212,020,999 
 Series C Preferred shares 477,741,883 — 475,558,309 
 Accumulated deficit ( 378,984,493 ) ( 2,183,574 ) ( 381,168,067 ) 
 Total members’ deficit ( 377,976,015 ) ( 2,183,574 ) (380,159,589) 
 Total liabilities, mezzanine equity and members’ deficit $ 309,603,293 $ — $ 309,603,293 

 
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 BRIDGER AEROSPACE GROUP HOLDINGS, INC. 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 (All amounts in U.S. dollars, except as stated) 

 
 For the six months ended June 30, 2022 
 As Previously
Reported Impact of
Revision As Revised 
 Statements of Operations: 
 Net loss $ ( 19,435,884 ) $ — $ ( 19,435,884 ) 
 Legacy Bridger Series C Preferred Shares adjustment for maximum redemption value ( 189,057,208 ) ( 2,183,574 ) ( 191,240,782 ) 
 Net loss attributable to common shareholders $ ( 294,156,428 ) $ ( 2,183,574 ) $ ( 296,340,002 ) 
 Net loss per share attributable to common shareholders – basic and diluted $ ( 7.30 ) $ ( 0.06 ) $ ( 7.36 ) 
 
 For the six months ended June 30, 2022 
 As Previously
Reported Impact of
Revision As Revised 
 Statements of Members’ Equity: 
 Legacy Bridger Series C Preferred Shares adjustment for maximum redemption value $ ( 189,057,208 ) $ ( 2,183,574 ) $ ( 191,240,782 ) 
 Net loss ( 19,435,884 ) — ( 19,435,884 ) 
 Accumulated deficit ( 378,984,493 ) ( 2,183,574 ) ( 381,168,067 ) 
 Accumulated other comprehensive income 1,008,478 — 1,008,478 
 Total members’ deficit $ ( 377,976,015 ) $ ( 2,183,574 ) $ ( 380,159,589 ) 

 
 
 Note 25 – Subsequent Events 
 The Company evaluated its activities through the date of the filing of the Unaudited Condensed Consolidated Financial Statements. 
 On October 13, 2023, the Company amended the purchase agreement with Ignis to limit the number of shares issuable as part of the Acquisition. Specifically, Ignis shareholders will have the contingent right to receive up to an aggregate maximum of 8,825,729 shares of Common Stock. The actual number of shares issued to satisfy the contingent consideration will be determined based upon a trailing 120-day VWAP of the Common Stock at the time of each issuance. Any adjustment to the contingent consideration liability as a result of this amendment will be made as part of the Company’s final purchase price allocation during the measurement period. 
 On July 21, 2023, we entered into a Purchase and Sale Agreement (the “Bighorn Purchase Agreement”), through our subsidiary Bridger Bighorn, LLC, with Robert Eisele and Christopher Eisele (the “Bighorn Sellers”), the owners of Big Horn Airways, Inc. (“Bighorn”), pursuant to which we agreed to acquire 100 % of the outstanding equity interests of Bighorn. The aggregate consideration for the Bighorn acquisition is $ 39.25 million, with $ 14.75 million payable in unregistered shares of Common Stock, and the remainder of $ 24.50 million payable in cash, as may be adjusted pursuant to the terms of the Bighorn Purchase Agreement, including for Bighorn’s cash, indebtedness, and net working capital as of the closing of the Bighorn acquisition. In November 2023, the Company and Bighorn sellers mutually agreed to terminate the Bighorn Purchase Agreement. There are no termination fees payable by either party and the Company has agreed to reimburse Bighorn for all fees incurred in connection with the proposed transaction. The amount of reimbursable transaction fees cannot be estimated at this time. 
 
 
 
 
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 Table of Contents
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.
Bridger Aerospace Group Holdings, Inc. 10-Q

Item 1. Financial Statements
