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Item 1. Financial Statements

2025-08-14 compared with 2025-05-15 · 109 added, 87 removed, 574 unchanged (25% of the section changed)

25 unchanged sentences

Preferred stock, 10,000,000 shares authorized, $ .001 par value, of which 200,000 shares are authorized as Class A Convertible stock.

No shares issued and outstanding at March 31, 2025 and September 30, 2024

No shares issued and outstanding at June 30, 2025 and September 30, 2024

Common stock, $ .001 par value:

75,000,000 shares authorized, 19,651,771 and 19,599,052 issued at March 31, 2025 and September 30, 2024, respectively

75,000,000 shares authorized, 19,716,152 and 19,599,052 issued at June 30, 2025 and September 30, 2024, respectively

Additional paid-in capital

Retained earnings

Treasury stock, at cost, 2,096,451 shares at March 31, 2025 and at September 30, 2024, respectively

Treasury stock, at cost, 2,096,451 shares at June 30, 2025 and at September 30, 2024, respectively

( 21,368,537 )

5 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended March 31,

Six Months Ended March 31,

Three Months Ended June 30,

Nine Months Ended June 30,

Total net sales

7 unchanged sentences

Interest expense

( 1,221,926 )

Interest income

15 unchanged sentences

( 21,368,537 )

Share-based compensation

Balance, June 30, 2025

( 21,368,537 )

See accompanying notes to the unaudited condensed consolidated financial statements.

9 unchanged sentences

( 21,368,537 )

Share-based compensation

Balance, June 30, 2024

( 21,368,537 )

See accompanying notes to the unaudited condensed consolidated financial statements.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Six Months Ended March 31,

For the Nine Months Ended June 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

4 unchanged sentences

Restricted stock awards, MSOs and MSUs

(Gain) / Loss on disposal of property and equipment

Gain on disposal of property and equipment

Deferred income taxes

1 unchanged sentence

Accounts receivable

( 1,210,605 )

Contract assets

2 unchanged sentences

Prepaid expenses and other current assets

( 1,177,053 )

Other non-current assets

17 unchanged sentences

( 4,768,490 )

( 19,185,614 )

Net cash used in financing activities

( 4,768,490 )

( 9,640,926 )

Net increase (decrease) in cash and cash equivalents

8 unchanged sentences

Transfer from prepaid inventory to purchases of property and equipment

Transfer from prepaid inventory to goodwill

Transfer from prepaid inventory to intangible assets, net

Transfer from prepaid expenses and other current assets to PP&E

Transfer from other assets to PP&E

Transfer from intangible assets to goodwill

13 unchanged sentences

The condensed consolidated balance sheet as of September 30, 2024 is derived from the audited financial statements of the Company.

Operating results for the three- and six- months ended March 31, 2025 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2025 which cannot be determined at this time.

Operating results for the three and nine months ended June 30, 2025 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2025 which cannot be determined at this time.

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes of the Company included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2024.

5 unchanged sentences

Actual results could differ from those estimates.

Estimates are used in accounting for, among other items, valuation of tangible and intangible assets acquired, long term contracts, evaluation of allowances for doubtful accounts, inventory obsolescence, product warranty cost liabilities, income taxes, revenue recognition on Engineering Development Contracts (“EDC”) programs, percentage of completion on EDC contracts, the useful lives of long-lived assets for depreciation and amortization, the recoverability of long-lived assets, evaluation of goodwill impairment and contingencies.

Estimates are used in accounting for, among other items, valuation of tangible and intangible assets acquired, long term contracts, evaluation of allowances for doubtful accounts, inventory obsolescence, product warranty cost liabilities, income taxes, revenue recognition on Engineering Development Contracts (“EDC”) programs, the useful lives of long-lived assets for depreciation and amortization, the recoverability of long-lived assets, evaluation of goodwill impairment and contingencies.

Estimates and assumptions are reviewed periodically and the effects of changes, if any, are reflected in the condensed consolidated statements of operations in the period they are determined.

1 unchanged sentence

Historically, the Company presented Customer service and Engineering and development contracts Net Sales and Cost of sales separately on the Consolidated Statements of Operations.

For the three and six months ended March 31, 2025, the Company has aggregated these items into one category, “Services” and reclassified Customer service and Engineering and development contracts revenues as well as Cost of sales to conform the presentation of the Consolidated Statements of Operations for three and six months ended March 31, 2024.

For additional information, see Note, 3 Summary of Significant Accounting Policies, (“Reclassifications ”) to

the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2024.

For the three and nine months ended June 30, 2025, the Company has aggregated these items into one category, “Services” and reclassified Customer service and Engineering and development contracts revenues as well as Cost of sales to conform the presentation of the Consolidated Statements of Operations for three and nine months ended June 30, 2024.

For additional information, see Note, 3 Summary of Significant Accounting Policies, (“Reclassifications ”) to the

Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2024.

Business Combinations

61 unchanged sentences

These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.

The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2025 and September 30, 2024, according to the valuation techniques the Company used to determine their fair values.

Fair Value Measurement on March 31, 2025

The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2025 and September 30, 2024, according to the valuation techniques the Company used to determine their fair values.

Fair Value Measurement on June 30, 2025

Quoted Price in

11 unchanged sentences

Money market funds

The March 31, 2025 and September 30, 2024 money market funds balance differs from the cash and cash equivalents balance on the condensed consolidated balance sheet due to the timing of sweep transactions within the PNC cash investment accounts.

The June 30, 2025 and September 30, 2024 money market funds balance differs from the cash and cash equivalents balance on the condensed consolidated balance sheet due to the timing of sweep transactions within the PNC cash investment accounts.

Revenue from Contracts with Customers

43 unchanged sentences

The impact of adjustments in contract estimates on our operating earnings is typically reflected in consolidated revenues.

There were no material contract estimate adjustments to our condensed consolidated financial statements for the three and six months ended March 31, 2025.

There were no material contract estimate adjustments to our condensed consolidated financial statements for the three and nine months ended June 30, 2025.

Contract Balances

4 unchanged sentences

Amount transferred to receivables from contract assets

( 1,285,317 )

Contract asset additions

1 unchanged sentence

Increases due to invoicing prior to satisfaction of performance obligations

March 31, 2025

June 30, 2025

Concentrations

Major Customers and Products

In the three months ended March 31, 2025, five customers, Lockheed Martin Corporation (“Lockheed Martin”), Atlas Air Inc.

(“Atlas”), The Boeing Company (“Boeing”), Pilatus Aircraft Ltd (“Pilatus”) and Kalitta Air Inc.

(“Kalitta”), accounted for 48 %, 9 %, 5 %, 5 % and 5 % of net sales, respectively.

In the six months ended March 31, 2025, five customers, Lockheed Martin, Boeing, Pilatus, Atlas, and Kalitta, accounted for 44 %, 7 %, 6 %, 5 %, and 4 % of net sales, respectively.

In the three-months ended March 31, 2024, two customers, Pilatus and Textron Aviation, Inc.

(“Textron”), accounted for 28 % and 17 % of net sales, respectively.

In the six-months ended March 31, 2024, one customer, Pilatus accounted for 29 % of net sales.

In the three months ended June 30, 2025, one customer, Lockheed Martin Corporation (“Lockheed Martin”), accounted for 52 % of net sales.

In the nine months ended June 30, 2025, one customer, Lockheed Martin accounted for 47 % of net sales.

In the three months ended June 30, 2024, two customers, Pilatus Aircraft Ltd (“Pilatus”) and Lufthansa Technik AG, accounted for 21 % and 10 % of net sales, respectively.

In the nine months ended June 30, 2024, one customer, Pilatus accounted for 26 % of net sales.

Major Suppliers

1 unchanged sentence

Although there are a limited number of suppliers of particular components, management believes other suppliers could provide similar components on comparable terms.

For the three and six months ended March 31, 2025, the Company had one supplier that was individually responsible for greater than 10% of the Company’s total inventory related purchases.

For the three and six months ended March 31, 2024, the Company had one and two suppliers, respectively, that were individually responsible for greater than 10% of the Company’s total inventory related purchases.

For the three and nine months ended June 30, 2025, the Company had two and one suppliers, respectively, that were individually responsible for greater than 10% of the Company’s total inventory related purchases.

For the three and nine months ended June 30, 2024, the Company had two and one suppliers, respectively, that were individually responsible for greater than 10% of the Company’s total inventory related purchases.

Concentration of Credit Risk

35 unchanged sentences

price amount for the transaction and the allocation of the preliminary purchase consideration are preliminary estimates, and may be subject to change within the measurement period.

The following purchase price allocation table presents the Company's estimates of the fair value of assets acquired and liabilities assumed as of the acquisition date, and subsequent measurement period adjustments recorded during the three and six months ended March 31, 2025:

Amounts Recognized as of

24 unchanged sentences

The prepaid expense related to the 2024 TSA was determined using the with and without method.

For the three and six months ended

March 31, 2025, the Company recognized no additional adjustments to prepaid expenses and other current assets within the consolidated balance sheets for services received from Honeywell.

Acquisition and related costs

For the fiscal year ended September 30, 2024, the Company incurred $ 589,000 of acquisition costs included in SG&A expenses in connection with the June 2023 Honeywell Agreement.

The debt issuance costs related to the Term Loan were not material.

For the three and nine months ended

June 30, 2025, the Company recognized no additional adjustments to prepaid expenses and other current assets within the consolidated balance sheets for services received from Honeywell.

Unaudited actual and pro forma information

The following unaudited pro forma summary presents consolidated information of the Company, including the product lines, as if the transaction had occurred on October 1, 2023:

Three Months Ended March 31,

Six Months Ended March 31,

Three Months Ended June 30,

Nine Months Ended June 30,

These pro forma results are for illustrative purposes and are not indicative of the actual results of operations that would have been achieved, nor are they indicative of future results of operations.

60 unchanged sentences

The prepaid expense related to the 2023 TSA was determined using the with and without method.

As of the three months ended March 31, 2025, the 2023 TSA has been fully amortized.

As of the three months ended June 30, 2025, the 2023 TSA has been fully amortized.

On July 22, 2024, the Company completed the July 2024 Honeywell Asset Acquisition of certain additional assets related to its communication and navigation product lines, including a sale of certain inventory and customer-related documents;

16 unchanged sentences

The Company’s intangible assets other than goodwill are as follows:

As of March 31, 2025

As of June 30, 2025

Gross Carrying

17 unchanged sentences

The timing of future amortization expense is not determinable for the licensing and certification rights because they are amortized over a defined number of units.

The expected future amortization expense related to the customer relationships and backlog as of March 31, 2025 is as follows:

The expected future amortization expense related to the customer relationships and backlog as of June 30, 2025 is as follows:

Amortization Expense

2025 (six months remaining)

2025 (three months remaining)

Property and equipment

8 unchanged sentences

( 12,409,862 )

Depreciation and amortization related to property and equipment was $ 272,390 and $ 146,156 for the three months ended March 31, 2025 and 2024, respectively.

Depreciation and amortization related to property and equipment was $ 894,483 and $ 271,684 for the six months ended March 31, 2025 and 2024, respectively.

Depreciation and amortization related to property and equipment was $ 267,653 and $ 252,655 for the three months ended June 30, 2025 and 2024, respectively.

Depreciation and amortization related to property and equipment was $ 1,162,136 and $ 541,732 for the nine months ended June 30, 2025 and 2024, respectively.

In connection with June 2023 Honeywell Agreement, during the 18- month period following closing, which ended December 31, 2024, the Company received various inventory and PP&E, which was accounted for as of the acquisition date as prepaid inventory.

7 unchanged sentences

Adhering to the guidance found in ASC 250, the Company recognized the change in depreciation expense of Rotable assets prospectively as of January 1, 2025.

The change in accounting estimate decreased depreciation expense $0.4 million, or $ 0.02 per diluted share, for the three months ended March 31, 2025.

The change in accounting estimate decreased depreciation expense $ 0.4 million, or $ 0.02 per diluted share, and $ 0.7 million, or $ 0.04 for the three and nine months ended June 30, 2025, respectively.

Other assets consist of the following:

2 unchanged sentences

Other non-current assets

Other non-current assets as of March 31, 2025 and September 30, 2024 consists primarily of deposits for medical claims required under the Company’s medical plan.

Other non-current assets as of June 30, 2025 and September 30, 2024 consists primarily of deposits for medical claims required under the Company’s medical plan.

Accrued expenses

5 unchanged sentences

Income tax payable

Warranty cost and accrual information for the three and six months ended March 31, 2025 is highlighted below:

Warranty cost and accrual information for the three and nine months ended June 30, 2025 is highlighted below:

Three Months Ending

Six Months Ending

March 31, 2025

Nine Months Ending

June 30, 2025

Warranty accrual, beginning of period

4 unchanged sentences

If the Company were to determine that it would be able to realize additional state deferred tax assets in the future, it would make an adjustment to the valuation allowance which would reduce the provision for income taxes.

On July 4, 2025, the reconciliation bill, commonly referred to as the One Big Beautiful Bill Act (OBBB) was signed into law, which includes a broad range of tax reform provisions that may affect the Company's financial results.

The OBBB allows an elective deduction for domestic Research and Development (R&D), and a reinstatement of elective 100% first-year bonus depreciation, among other provisions.

The Company is currently evaluating the impact of these provisions which could affect the Company's effective tax rate and deferred tax assets in 2025 and future periods.

As a result of the 2017 Tax Cuts and Jobs Act, the Company must amortize amounts paid or incurred for specified research and development expenditures, including software development expenses, ratably over 60 months, beginning at the mid-point of the tax year in which the expenditures are paid or incurred.

The effective tax rate for the three months ended March 31, 2025 was 19.2 % and differs from the statutory tax rate primarily due to the effect of state income taxes, tax credits and certain nondeductible expenses.

The effective tax rate for the three months ended March 31, 2024 was 21.2 % and differs from the statutory tax rate primarily due to higher state taxes due to a taxable gain from the sale of the Company’s King Air aircraft.

The effective tax rate for the six months ended March 31, 2025 was 19.3 % and differs from the statutory tax rate primarily due to the effect of state income taxes, tax credits and certain nondeductible expenses.

The effective tax rate for the six-months ended March 31, 2024 was 21.5 % and differs from the statutory tax rate primarily due to higher state taxes due to a taxable gain from the sale of the Company’s King Air aircraft.

The effective tax rate for the three months ended June 30, 2025 was 21.5 % and differs from the statutory tax rate primarily due to the effect of state income taxes, tax credits, temporary tax differences related to stock based compensation and certain non-deductible expenses.

The effective tax rate for the three months ended June 30, 2024 was 17.6 % and differs from the statutory tax rate primarily due to an increased R&D credit, as well as permanent items and state taxes.

The effective tax rate for the nine months ended June 30, 2025 was 19.9 % and differs from the statutory tax rate primarily due to the effect of state income taxes, tax credits, temporary tax differences related to stock based compensation and certain non-deductible expenses.

The effective tax rate for the nine-months ended June 30, 2024 was 19.9 % and differs from the statutory tax rate primarily due to an increased R&D credit, as well as permanent items and state taxes.

Shareholders’ Equity and Share-Based Payments

9 unchanged sentences

On April 18, 2024, the Company amended the 2019 Plan to include an additional 1,950,000 authorized shares available for issuance.

As of March 31, 2025, there were 1,518,517 shares of common stock available for awards under the 2019 Plan.

As of June 30, 2025, there were 1,375,295 shares of common stock available for awards under the 2019 Plan.

If any award is forfeited, terminates or otherwise is settled for any reason without an actual distribution of shares to the participant, the related shares of common stock subject to such award will again be available for future grant.

7 unchanged sentences

or (iii) would require shareholder approval by law, regulation, or the rules of any stock exchange or automated quotation system.

2024 RSU Bonus Grants

On February 19, 2025, the Board authorized grants of 71,754 in Restricted Stock Units (“ 2024 RSU Bonus Grants ”) to key employees under the terms and conditions of the 2019 Plan as part of the Company’s initiatives to align employee compensation with Total Shareholder Return.

The Restricted Stock awards vest 50 % on the one year anniversary from date of grant and 50 % on the two year anniversary from date of grant, subject to the terms of the 2019 Plan.

Market-Based Restricted Stock Units

1 unchanged sentence

The MSU is a restricted stock unit containing vesting terms conditional upon the attainment of both 1) continued service to vesting and 2) stock price appreciation targets indexed against the Company’s actual stock price performance over a specified measurement period.

Under the terms of the 2019 Plan, no MSUs are eligible for vesting prior to the first anniversary of the date of grant of the award, with the exception of accelerated vesting permitted

under certain conditions subject to the plan provisions.

Under the terms of the 2019 Plan, no MSUs are eligible for vesting prior to the first anniversary of the date of grant of the award, with the exception of accelerated vesting permitted under certain conditions subject to the plan provisions.

Subject to the terms of the 2019 Plan, under the terms of the grant, the MSU will vest as follows:

7 unchanged sentences

Number of MSUs Granted

November 20, 2024

Grant Date Stock Price

4 unchanged sentences

Utilizing Monte Carlo simulation, the MSUs grant date fair value was estimated to be $ 1,109,340 with a $ 5.52 weighted average grant date fair value per award and the derived vesting periods were estimated to be between 1.2 years and 1.7 years.

For the three and six months ended March 31, 2025, the Company recognized $ 112,834 and $ 229,942 , respectively of compensation expense related to MSU awards.

As of March 31, 2025, unrecognized compensation expense of $ 879,398 associated with non-vested MSUs will be recognized in future periods under the 2019 Plan.

During the three and six months ended March 31, 2025, no MSUs vested or were forfeited.

On February 13, 2025, the performance condition for 67,000 units of MSUs granted to the Company’s Chief Executive Officer was met, these shares will vest according to the Company’s Amended and Restated 2019 Stock-Based Incentive Compensation Plan.

For the three and nine months ended June 30, 2025, the Company recognized $ 253,779 and $ 483,722 , respectively of compensation expense related to MSU awards.

As of June 30, 2025, unrecognized compensation expense of $ 625,618 associated with non-vested MSUs will be recognized in future periods under the 2019 Plan.

During the three and nine months ended June 30, 2025, no MSUs vested or were forfeited.

On February 13, 2025, the market performance condition for 67,000 units of MSUs granted November 20, 2024 to the Company’s Chief Executive Officer was met, these shares will vest according to the Company’s Amended and Restated 2019 Stock-Based Incentive Compensation Plan.

Time Based Stock Options with market based exercisability conditions

3 unchanged sentences

Once this market threshold is met, the vested shares can be exercised according to the vesting schedule and the terms and conditions set forth in the 2019 Plan.

On June 16 th , 2025, the Company’s closing share price exceeded the $ 9.88 MSOs targeted market threshold condition for 20 consecutive trading days for the MSOs granted February 18, 2025, thus meeting the market condition for exercisability subject to the vesting schedule and terms and conditions set for in the 2019 Plan.

No MSOs are eligible for vesting or exercise prior to the first anniversary of the date of grant of the award, with the exception of accelerated vesting permitted under certain conditions subject to the plan provisions.

9 unchanged sentences

Utilizing Monte Carlo simulation, the aggregate MSOs grant date fair value was estimated to be $ 474,998 with a $ 4.51 weighted average grant date fair value per option and vesting periods were estimated to be between 1 years and 4 years with a 10 year contractual term.

For the three and six months ended March 31, 2025, the Company recognized $ 13,646 of compensation expense related to the MSO awards.

As of March 31, 2025, unrecognized compensation expense of $ 461,352 associated with non-vested MSOs will be recognized in future periods under the 2019 Plan.

During the three and six months ended March 31, 2025, no MSOs vested or were forfeited.

The compensation expense related to stock options, and restricted stock awards issued to employees under the 2019 Plan was $ 2 07,126 and $ 219,748 for the three months ended March 31, 2025 and 2024, respectively.

The compensation expense related to stock options, and restricted stock awards issued to employees under the 2019 Plan was $ 413,651 and $ 375,328 for the six months ended March 31, 2025 and 2024, respectively.

The compensation expense under the 2019 Plan related to restricted stock awards issued to non-employee members of the Board was $ 71,438 and $ 49,590 for the three months ended March 31, 2025 and 2024, respectively.

The compensation expense under the 2019 Plan related to restricted stock awards issued to non-employee members of the Board was $ 144,464 and $ 99,726 for the six months ended March 31, 2025 and 2024, respectively.

Total compensation expense associated with the 2019 Plan was $ 405,025 and $ 269,338 for the three months ended March 31, 2025 and 2024, respectively.

Total compensation expense associated with the 2019 Plan was $ 801,650 and $ 475,055 for the six months ended March 31, 2025 and 2024, respectively.

As of March 31, 2025, unrecognized compensation expense of approximately $ 1,431,266 net of forfeitures, related to non-vested restricted stock under the 2019 Plan, will be recognized in future periods.

As of March 31, 2025, unrecognized compensation expense of approximately $ 348,618 , net of forfeitures, related to non-vested stock options under the 2019 Plan, will be recognized in future periods.

For the three and nine months ended June 30, 2025, the Company recognized $ 85,111 and $ 98,757 , respectively of compensation expense related to the MSO awards.

As of June 30, 2025, unrecognized compensation expense of $ 376,243 associated with non-vested MSOs will be recognized in future periods under the 2019 Plan.

During the three and nine months ended June 30, 2025, no MSOs vested or were forfeited.

The compensation expense related to stock options, and restricted stock awards issued to employees under the 2019 Plan was $ 355,653 and $ 191,623 for the three months ended June 30, 2025 and 2024, respectively.

The compensation expense related to stock options, and restricted stock awards issued to employees under the 2019 Plan was $ 769,304 and $ 566,952 for the nine months ended June 30, 2025 and 2024, respectively.

The compensation expense under the 2019 Plan related to restricted stock awards issued to non-employee members of the Board was $ 137,577 and $ 59,278 for the three months ended June 30, 2025 and 2024, respectively.

The compensation expense under the 2019 Plan related to restricted stock awards issued to non-employee members of the Board was $ 282,040 and $ 159,003 for the nine months ended June 30, 2025 and 2024, respectively.

Total compensation expense associated with the 2019 Plan was $ 832,120 and $ 250,901 for the three months ended June 30, 2025 and 2024, respectively.

Total compensation expense associated with the 2019 Plan was $ 1,633,823 and $ 725,955 for the nine months ended June 30, 2025 and 2024, respectively.

As of June 30, 2025, unrecognized compensation expense of approximately $ 1,997,084 net of forfeitures, related to non-vested restricted stock under the 2019 Plan, will be recognized in future periods.

As of June 30, 2025, unrecognized compensation expense of approximately $ 388,346 , net of forfeitures, related to non-vested stock options under the 2019 Plan, will be recognized in future periods.

Earnings Per Share

Three Months Ended March 31,

Six Months Ended March 31,

Three Months Ended June 30,

Nine Months Ended June 30,

Basic weighted average shares

2 unchanged sentences

Net income per common share:

Net income per share is calculated pursuant to ASC Topic 260, “ Earnings per Share” .

Basic EPS excludes potentially dilutive securities and is computed by dividing net income by the weighted average number of common shares outstanding for the period.

Net income per share is calculated pursuant to ASC Topic 260, “ Earnings per Share.” Basic EPS excludes potentially dilutive securities and is computed by dividing net income by the weighted average number of common shares outstanding for the period.

Diluted EPS is computed assuming the conversion, or exercise of all dilutive securities such as employee stock options MSUs and RSUs.

The number of incremental shares from the assumed exercise of time vested stock options , MSOs, and RSUs is calculated by using the treasury stock method.

The number of incremental shares from assumed vestings of MSUs is calculated using the ‘if-converted method.’ As of March 31, 2025 no outstanding MSUs were included in the three and six months ended March 31, 2025 weighted-average diluted shares calculation using the if converted method.

As of March 31, 2025 and 2024, there were 433,655 and 297,014 options to purchase common stock outstanding, respectively, and 201,000 and 0 MSUs subject to vesting outstanding, respectively.

As of March 31, 2025 and 2024, there were 194,914 and 173,555 shares of restricted stock units subject to vesting outstanding, respectively.

The weighted average outstanding diluted shares calculation excludes time vested options and MSOs with an exercise price that exceeds the average market price of shares during the period.

The number of incremental shares from assumed vestings of MSUs is calculated using the ‘if-converted method.’ As of June 30, 2025, 67,000 and 44,421 weighted average outstanding MSUs were included in the three and nine months ended June 30, 2025 weighted-average diluted shares calculation, respectively using the if converted method.

As of June 30, 2025 and 2024, there were 361,613 and 361,613 options to purchase common stock outstanding, respectively, and 201,000 and 0 MSUs subject to vesting outstanding, respectively.

As of June 30, 2025 and 2024, there were 339,782 and 250,975 shares of restricted stock units subject to vesting outstanding, respectively.

The weighted average outstanding diluted shares calculation excludes time vested options and MSOs with an exercise

price that exceeds the average market price of shares during the period.

Additionally, the weighted-average diluted shares calculation excludes RSUs that are deemed anti-dilutive when applying the treasury stock method.

For the three months ended March 31, 2025 and 2024, respectively, 136,613 and 243,749 diluted weighted-average shares outstanding were excluded from the computation of diluted EPS because the effect would be anti-dilutive.

For the six months ended March 31, 2025 and 2024, respectively, 249,113 and 228,579 diluted weighted-average shares outstanding were excluded from the computation of diluted EPS because the effect would be anti-dilutive.

For the three months ended June 30, 2025 and 2024, respectively, 241,934 and 529,918 diluted weighted-average shares outstanding were excluded from the computation of diluted EPS because the effect would be anti-dilutive.

For the nine months ended June 30, 2025 and 2024, respectively, 246,720 and 329,026 diluted weighted-average shares outstanding were excluded from the computation of diluted EPS because the effect would be anti-dilutive.

Commitments and Contingencies

4 unchanged sentences

Prior balances are disclosed below for comparability.

Sales to Eclipse amounted to approximately $ 1 4,900 and $ 9,000 for the three months ended March 31, 2025 and 2024, respectively.

Sales to Eclipse amounted to approximately $ 17,600 and $ 93,000 for the six months ended March 31, 2025 and 2024, respectively.

A company in which Parizad Olver (Parchi), a former member of the Board, is the managing partner and has an ownership interest, received a consulting fee of $ 72,990 in November 2023 for services provided in connection with the sale of the Company’s 2008 Super King Air B200GT SN BY-50.

Sales to Eclipse amounted to approximately $ 55,317 and $ 110,000 for the three months ended June 30, 2025 and 2024, respectively.

Sales to Eclipse amounted to approximately $ 72,197 and $ 203,000 for the nine months ended June 30, 2025 and 2024, respectively.

On October 18, 2024, the Company entered into a consulting agreement with Peduzzi Associated, ltd.

3 unchanged sentences

The term of the agreement is for one year and in consideration for services the Company will pay PAL a retainer of $ 9,500 per month.

For the three and six months ended March 31, 2025, the Company paid PAL $ 28,500 and $ 57,000 , respectively.

For the three and nine months ended June 30, 2025, the Company paid PAL $ 28,500 and $ 85,500 , respectively.

Loan Agreement

14 unchanged sentences

The A&R Rider provides for how PNC will make advances to the Company under the AR Revolving Line of Credit.

The Company was in compliance with all applicable covenants throughout and at March 31, 2025.

As of the three months ended March 31, 2025, the outstanding balance drawn on the A&R Revolving Line of Credit was $ 27,401,323 with an effective interest rate of 5.9 percent.

As of March 31, 2025, the Company had availability of $ 7,598,677 under the A&R Revolving Line of Credit.

The Company was in compliance with all applicable covenants throughout and at June 30, 2025.

As of the three months ended June 30, 2025, the outstanding balance drawn on the A&R Revolving Line of Credit was $ 23,258,511 with an effective interest rate of 6.3 % percent.

As of June 30, 2025, the Company had availability of $ 11,741,489 under the A&R Revolving Line of Credit.

On July 18, 2025, the Company entered a new five-year , $ 100 million committed credit agreement (the "Credit Agreement") with a lending syndicate led and arranged by JPMorgan Chase Bank, N.A..

See footnote 9.

Subsequent Events, for additional disclosures related the July 18, 2025 Credit Agreement.

Subsequent Events

On July 10, 2025, the market performance condition for 67,000 units of MSUs granted to the Company’s Chief Executive Officer was met.

These shares will vest according to the Company’s Amended and Restated 2019 Stock-Based Incentive Compensation Plan.

On July 18, 2025, the Company entered a new five-year , $ 100 million committed credit agreement (the "Credit Agreement") with a lending syndicate led and arranged by JPMorgan Chase Bank, N.A.

The Credit Agreement replaces the Company's existing $ 35 million line of credit.

Under the terms of the Credit Agreement, the new credit facilities bear interest at Term SOFR plus 175 to 275 basis points, with the applicable margin determined by the Company’s total net leverage ratio, as calculated in accordance with the Credit Agreement.

The Credit Agreement provides for a $ 30 million secured revolving loan facility, a $ 25 million secured term loan, a $ 45 million secured delayed draw term facility, and an option, subject to certain conditions, to request up to $ 25 million in additional loan commitments under an accordion feature in the Credit Agreement.

The initial outstanding borrowing under the new Credit Agreement, as of the closing date, replaced the outstanding borrowings under the existing line of credit.

The new facility provides expanded liquidity and improved flexibility, better enabling the Company to execute on the its long-term growth strategy and capital allocation priorities, consistent with the Company’s focus on driving long-term value creation for its shareholders.

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What changed 10-Q

Item 1. Financial Statements