2

current ownership structure was adopted. Exhibit 305 of the original application is an unaudited

balance sheet for Ultimate Jet LLC as at 12/31/2010 and an unaudited Profit and Loss Statement

for the period October 2010 to the end of the year. Note 7 describes the accounting treatment for

the effects of the sale. Exhibit 302 presents financial statements for Ultimate JETCHARTERS

LLC for the year ending 12/31/2010. Ultimate is attaching these exhibits for your convenience.

For the more recent time periods, the application included consolidated financial

statements in conformity with GAAP. Exhibit 303 is a copy of reviewed financial statements

prepared by an independent accountant for the period ending December 31, 2011. The

submission also included schedules that set forth relevant information on the wholly owned

subsidiaries, Ultimate JETCHARTERS and Ultimate Real Estate. The last 5 pages of the

supporting schedules provide information on transactions among each of the affiliated entities.

Pursuant to your request, Ultimate is now submitting unaudited financial statements for Ultimate

Jet LLC and Ultimate JETCHARTERS LLC for 2011. Exhibits ULTIMATE- 307 and 308,

respectively. These submissions do not conform with Generally Accepted Accounting Principles.

At the time the application was filed, Ultimate did not have adequate information to

produce a financial statement for the year ending December 31, 2012, but instead submitted

interim financial statements as Exhibit ULTIMATE - 304. As noted in the July 8 cover letter, on

June 17, Ultimate supplied the full-year financial statements, and the first quarter 2013

information, noting that the pertinent information on the affiliated entities was included in

schedules attached to the consolidated financial statements for the year ended December 31,

2012. Pursuant to your request, Ultimate is now producing unaudited financial statements for

Ultimate Jet LLC and Ultimate JETCHARTERS LLC for 2012 that do not conform with

Generally Accepted Accounting Principles. Exhibits ULTIMATE- 309 and 310.

Given the passage of time since filing of the application, you have requested interim

financial statements for the period ending June 30, 2013. The applicant is submitting interim

financial statements for the Ultimate Jet parent and Ultimate JETCHARTERS subsidiary, both of

which are not in conformity with GAAP. Exhibits ULTIMATE - 311 and 312.

Ultimate Jet LLC has no present intention of providing funding to support the operations

of Ultimate JETCHARTERS. As set forth in the application, the airline is currently profitable

and has secured a dedicated line of credit to support the expanded service. Application ¶ 19.

The terms of the letter of credit extended by the Fifth Third Bank have not changed. The

credit facility is in the amount of $750,000.00 for expansion of Ultimate JETCHARTERS’

Public Charter business. ULTIMATE Exhibit – 711. Ultimate has drawn on the line of credit in

the amount of $250,000.00 to finance acquisition of a landing gear for an aircraft to be used in

the proposed service. Attached is a letter from Fifth Third Bank dated August 14, 2013

confirming that $500,000.00 is currently available. This funding is more than adequate to finance

the applicant’s proposal to increase the frequency of its current charter program.


Exhibit ULTIMATE - 307

Ultimate Jet LLC

Balance Sheet as of

12/31/2011

Unaudited

Assets

Cash - $ 

Accounts Recievable - $ 

Notes Recievable - Shareholder - $ 

Interest Recievable - Shareholder - $ 

Investment in Ultimate JETCHARTERS LLC 47,168.00 $ 

Investment in Ultimate Real Estate LLC 4,281,170.00 $ 

Total Assets 4,328,338.00 $ 

Liabilities & Owners Equity

Accounts Payable - $ 

Notes Payable - $ 

Members Equity 4,328,338.00 $ 

Retained Earnings - $ 

Current Year Profit/Loss - $ 

Total Liabilities & Equity 4,328,338.00 $ 

checksum $ -
Ultimate Jet LLC

Profit and Loss Statement for the Period

01/1/2011 to 12/31/2011

Income

Revenue - $ 

Expense

Cost of Operations - $ 

Gross Profit - $ 

SG&A Expenses - $ 

EBITDA - $ 

Interest Income

Interest Expense - $ 

Depreciation - $ 

Net Income (Loss) - $ 
Notes to the Ultimate Jet LLC December 31, 2011 Financial Statements 

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

Nature of Operations 

Ultimate Jet LLC (hereinafter “UJ” or the “Company”) is an Ohio Limited Liability Company 

formed as a holding company for other business entities. It commenced operations on 

October 1, 2010. UJ presently has two wholly-owned subsidiaries: Ultimate JETCHARTER 

LLC, an Ohio Limited Liability Company: a full-service, air charter and fixed base operator 

located at the Akron-Canton Regional Airport in Ohio. Ultimate Real Estate LLC, an Ohio 

Limited Liability Company: an owner/lessor of real property. The financial results of these 

subsidiaries have not been consolidated in UJ’s December 31, 2011 financial statements. The 

Company is a limited liability company. The members' liability is limited to their investment. 

The Company headquarters is located in North Canton, Ohio at the Akron-Canton Regional 

Airport. 

Use of Estimates 

Management uses estimates and assumptions in preparing financial statements. Those 

estimates and assumptions affect the reported amounts of assets and liabilities, the 

disclosure of contingent assets and liabilities, and reported revenues and expenses. 

Trade Receivables 

The Company has no trade receivables. 

Prepaid Expenses 

The Company has no prepaid expenses. 

Investments 

Investments are at stated cost plus earnings reinvested. The value does not reflect current 

market value of unrealized gains or losses. On December 31, 2011, UJ held 100% equity 

interests in the following entities: 

 Amount Invested 

Ultimate JETCHARTER LLC $4,281,170 

Ultimate Real Estate LLC $ 47,168 

 

1 
Notes to the Ultimate Jet LLC December 31, 2011 Financial Statements (continued) 

Inventory 

UJ has no inventory. 

Property and Equipment 

The Company has no property or equipment. 

Accounts Payable 

UJ has no accounts payable. 

Short Term Liabilities 

UJ has no short term liabilities. 

Long Term Liabilities 

The Company has no long term liabilities. 

Income Taxes 

The Company has elected to be treated as a Partnership for federal and state income tax 

purposes. UJ's taxable income or losses, as well as, certain other tax attributes, are 

passed through directly to the Company's members and are reported in each member's 

individual income tax return. Consequently, these consolidated financial statements do not 

include any provision for federal or state income tax expense or liability. 

NOTE B -COMMITMENTS AND CONTINGENCIES 

The Company had at December 31, 2011, no important unfilled contracts for the purchase of 

material, merchandise, or equipment in excess of normal requirements or at prices 

substantially in excess of market at that date; or for the performance of services at prices that 

are expected to result in a loss upon completion. 

The Company has adopted the guidance for uncertainty in income taxes in FASB ASC 740-

1065-1. The Company will record a liability for uncertain tax positions when it is probable that 

a loss has been incurred and the amount can be reasonably estimated. The Company 

continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in 

tax law and new authoritative rulings. 

The Company's evaluation on December 31, 2011 revealed no tax positions that would have 

a material impact on the financial statements. The 2010 tax year remains subject to 

examination by the IRS. In addition, the tax year 2010 remains subject to examination by 

certain states. The Company does not believe that any reasonably possible changes will 

occur within the next six months that will have a material impact on the financial statements. 

2 
Notes to the Ultimate Jet LLC December 31, 2011 Financial Statements (continued) 

NOTE C – SUBSEQUENT EVENTS 

The Company has evaluated subsequent events through July 25, 2012, the date which the 

financial statements were available to be issued. No events have occurred which would have 

a material effect on the financial statements of the Company. 

3 
Exhibit ULTIMATE Exhibit ULTIMATE -- 308 308



ULTIMATE JETCHARTERS LLC 

NOTES TO YEAR END FINANCIAL STATEMENTS 

12 Months Beginning January 1, 2011 and Ending December 31, 2011 

1

Note 1. Nature of Business and Significant Accounting Policies 

Nature of Business 

Ultimate JETCHARTERS LLC (the “Company”) is a Part 135 Air Taxi operator located at the 

Akron Canton Regional Airport in Ohio. In addition to aircraft charter services, the Company 

sells fuel and provides maintenance services from its fixed base operation at the Akron-Canton 

regional airport. 

The Company is an Ohio limited liability company. The members' liability is limited to their 

investment. 

The Company was formed as an Ohio “C” corporation in 2003. Shortly after it was formed, it 

acquired the Air Taxi, fueling, and aircraft maintenance business assets of Gordon Air 

Management, Inc., an Ohio corporation. The Company conducted those operations from 2003 

until 2007, when it sold its operating assets to Ultimate Jet Charter Acquisitions, Inc., a 

Delaware corporation. In September 2010, the Company was acquired by Ultimate Jet LLC and 

continued its Air Taxi, fueling, and aircraft maintenance operations. Concurrent with the 

acquisition by Ultimate Jet LLC, the Company filed a Certificate of Conversion with the Ohio 

Secretary of State changing its entity type from a corporation to a Limited Liability Company. 

The Company owns aircraft and has entered into lease arrangements with the owners of various 

30 seat Dornier 328 jets, providing charter flight services to a variety of customers. There are 

two types of aircraft leases. Under the first type is a “dry lease” under which the Company makes 

a fixed monthly payment to the owner to use the aircraft and the Company is responsible 

for all costs of operations and maintenance. Under the terms of the second type of aircraft lease, 

the owner of the aircraft receives 90% of the revenue and is responsible for all of the aircraft’s 

ownership, maintenance, and operating expenses. 

The complied financial statements of the Company reflect the application of certain policies 

described in this note.

Use of Estimates 

The preparation of financial statements in conformity with generally accepted accounting 

principles requires management to make estimates and assumptions that affect certain reported 

amounts and disclosures. Accordingly, actual results could differ from those estimates. 

Concentration of Credit Risk 

The Company maintains its cash in bank deposit accounts which, at times, may exceed federally 

insured limits. The Company has not experienced any losses in such accounts, and management 

believes it is not exposed to any significant credit risk on cash. 
ULTIMATE JETCHARTERS LLC 

NOTES TO YEAR END FINANCIAL STATEMENTS 

12 Months Beginning January 1, 2011 and Ending December 31, 2011 

2

Note 1. Nature of Business and Significant Accounting Policies (Continued) 

The Company grants credit to customers, substantially all of which are located in the United 

States of America. The Company has a comprehensive credit management program that includes 

ongoing credit evaluation of its customers, generally does not require collateral, and monitors 

potential credit losses. Credit losses have historically been within management’s expectation. 

Revenue Recognition 

Revenue from passenger transportation is recognized when provided. Revenue from sales of fuel 

and maintenance are recognized on a time-and-material basis. Deposits received on flights are 

recorded as unearned revenue and recognized at the time services are provided. 

Deposits received from customers for flights that will take place in the future are recorded in 

account 2330-00-00 Unearned Revenue on the balance sheet. The amounts in accounts 

receivable include any amounts in the Company’s USDOT public charter escrow account. These 

deposits are recognized as sales income at the time services are provided. If services are not 

provided to the customer by the Company, the deposit is generally returned to the customer. The 

Company may retain a percentage of the deposit as cancellation fee if the customer cancels the 

trip or is otherwise responsible for the trip not taking place. The Company always adheres to 

USDOT requirements when making refunds to public charter passengers. 

At 12/31/2011, the Company’s Unearned Revenue account had $718,858.06 of customer 

deposits for trips scheduled to take place in the future. 

Fair Value of Financial Instruments 

The carrying amounts of financial instruments, including cash, accounts receivable, accounts 

payable, accrued liabilities, and short-term borrowings approximates fair value due to the short 

maturity of these instruments. The carrying amount of long-term debt approximates fair value 

because the interest rates fluctuate with market interest. 

Cash & Cash Equivalents 

For purpose of the statement of cash flows, the Company considers all highly liquid debt 

instruments purchased with a maturity of three months or less to be cash equivalents. 

Accounts Receivable 

Accounts receivable are carried at the original invoice amount less an estimate made for doubtful 

receivables based on a review of all outstanding amounts on a monthly basis. Management 

determines the allowance for doubtful accounts by identifying troubled accounts. At December 

31, 2011, management had determined that no allowance for doubtful receivables was required. 

Receivables are written off when deemed uncollectible. Recoveries of receivables previously 

written off are recorded when received. 
ULTIMATE JETCHARTERS LLC 

NOTES TO YEAR END FINANCIAL STATEMENTS 

12 Months Beginning January 1, 2011 and Ending December 31, 2011 

3

Note 1. Nature of Business and Significant Accounting Policies (Continued) 

Inventories 

Inventories consist of aircraft replacement parts, fuel, and supplies held for resale. Inventories 

are valued at the lower of cost or market. Cost is determined by the first-in, first-out (FIFO) 

method. 

Property and Equipment 

Property and equipment are recorded at cost. Gains and losses on disposition of property and 

equipment are recognized as a component of current operations. Maintenance and repairs are 

expensed as incurred. Provisions for depreciation are computed principally by using the straightline method. Useful lives of property and equipment are as follows: 

Depreciation expense for the 12 month period beginning January 1 2011 and ending December 

31, 2011 was $727,317. 

Impairment of Long-Lived Assets 

The Company assesses potential impairment to its long-lived assets when events or changes in 

circumstances have made recovery of the assets carrying value unlikely and the carrying amount 

of the assets exceeds the estimated future undiscounted cash flows. If the assessment indicates 

that the carrying amounts may not be recoverable, an impairment loss would reduce the assets 

carrying amount to its estimated fair value based on the present value of the estimated future 

cash flows. 

Advertising 

The Company expenses advertising as incurred. For the calendar year ended December 31, 2011, 

advertising expenses were $200,421. 

Building 40 years 

Aircraft 12 years 

Equipment and tooling 7-10 years 

Furniture and fixtures 7 years 

Vehicles 5 years 

Leasehold Improvements 20 years 
ULTIMATE JETCHARTERS LLC 

NOTES TO YEAR END FINANCIAL STATEMENTS 

12 Months Beginning January 1, 2011 and Ending December 31, 2011 

4

Note 1. Nature of Business and Significant Accounting Policies (Continued) 

Presentation of Sales Taxes 

The State of Ohio imposes a sales tax on certain of the Company’s sales to nonexempt 

customers. The Company collects that sales tax from customers and remits the entire amount to 

the State. The Company’s accounting policy is to exclude the tax collected and remitted to the 

State from revenues and cost of sales. 

Income Taxes 

The Company has elected to be treated as a Partnership for federal and state income tax 

purposes. The Company’s taxable income or losses, as well as, certain other tax attributes, are 

passed through directly to the Company’s members and are reported in each member’s 

individual income tax return. Consequently, these consolidated financial statements do not 

include any provision for federal or state income tax expense or liability. 

Note 2. Short-Term Borrowings 

The Company has a term note which bears interest at an overnight LIBOR plus 3.75%, or at the 

bank prime rate plus 2%, floating, for an effective interest rate of 5.25% at December 31, 2011. 

Interest is payable monthly. The Company is also required to pay a monthly principal payment 

of $25,000.00. 

The term loan is restricted by cash, a blanket lien on the Company’s accounts receivable, 

inventory and equipment, the assignment of rights and proceeds in certain aircraft and guarantees 

of certain stockholders. The outstanding balance at December 31, 2011 was $1,603,297. 

Note 3. Long-Term Debt

Long-term debt consists of the following at December 31, 2011: 

 Principal Amount 

Commercial mortgage, due in 2012 $865,98 

Note payable to a bank, due in 2011 $3,669,600 

Note payable to a bank, due in 2013 $2,197,291 

Note payable - officer $1,589,179 

 $9,042,048 

Less current portion ($4,726,308 ) 

 $4,315,740 
ULTIMATE JETCHARTERS LLC 

NOTES TO YEAR END FINANCIAL STATEMENTS 

12 Months Beginning January 1, 2011 and Ending December 31, 2011 

5

The commercial mortgage loan bears interest at either the 30 day LlSOR rate plus 2.75%, or the 

bank prime rate, floating (3.0625% at December 31,2011). However, the Company has entered 

into an interest-rate swap arrangement for the entire life of the loan so that the effective interest 

rate to the Company is a fixed 8.01%. Monthly payments are $4,567 principal plus interest until 

November 2012, at which time the remaining balance becomes payable. 

The term loan and commercial mortgage loan are collateralized by a blanket lien on the 

Company's accounts receivable, inventory and equipment, the assignment of rights and proceeds 

in certain aircraft and guarantees of certain stockholders. 

The Company has two notes payable, which are collateralized by aircraft. The first bears interest 

at the 6.38%. Payments are $31,024.25 principal plus interest until June 2013 when the 

remaining balance of is payable in full. The second bears interest at 7.44%. Payments are 

$32,000 per month until December 2011, when the remaining balance is payable in full. 

The amount of interest cost incurred for the period ended December 31, 2011 was $521,190, all 

of which was charged to operations.

Maturities of long-term debt for the years succeeding December 31, 2011 are as follows: 

Note 4 – Lease Obligations 

Operating Leases 

The Company conducts its operations from facilities that are leased under a five-year noncancelable operating lease expiring in July 2013. There is an option to renew the lease for two 

successive additional periods of five years each at an increased monthly rental. 

In addition, the Company leases aircraft under operating leases expiring in various years through 

December 31, 2013. Certain of these leases contain options to renew the lease for successive one 

year terms. 

The Company may also rent property, equipment, and transportation equipment on an as needed 

basis. 

2013 $ 642,150 

2014 $ 653,355 

2015 $ 992,412 

2016 $ 498,572 

2017 $5,755,929 
ULTIMATE JETCHARTERS LLC 

NOTES TO YEAR END FINANCIAL STATEMENTS 

12 Months Beginning January 1, 2011 and Ending December 31, 2011 

6

Note 4 – Lease Obligations (Continued) 

Minimum future rental payments under the con-cancelable operating lease having a remaining 

term in excess of one year as of December 31, 2013 for each of the next five years and in the 

aggregate are: 

Total Minimum Future Rental Payments $ 2,603,521 

Total rent expense under operating leases for 2011 was $863,938. 

Note 5. Related Party Transactions 

The Company leases two aircraft from an entity which is owned by an individual who is also a 

member of the Company. The terms of the leases are comparable to the Company's other aircraft 

leases and are described in Note 4. As of December 31, 2011 the Company was owed 

$2,842,122.26, by this lessor. 

The Company also had a balance due an individual who is a member of the Company for 

advances made to the company. The advances are unsecured. The balance owed to the individual 

as of December 31, 2011 was $1,589,179.07. 

Note 6 - Commitments and Contingencies 

The Company had at December 31, 2011, no important unfilled contracts for the purchase of 

material, merchandise, or equipment in excess of normal requirements or at prices substantially 

in excess of market at that date; or for the performance of services at prices that are expected to 

result in a loss upon completion. 

The Company has adopted the guidance for uncertainty in income taxes in FASB ASC 740-10-

65-1. The Company will record a liability for uncertain tax positions when it is probable that a 

loss has been incurred and the amount can be reasonably estimated. The Company continually 

evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and 

new authoritative rulings. 

The Company’s evaluation on December 31, 2011 revealed no tax positions that would have a 

material impact on the financial statements. The 2010 tax year remains subject to examination by 

the IRS. In addition, the tax year 2010 remains subject to examination by certain states. The 

Company does not believe that any reasonably possible changes will occur within the next 

twelve months that will have a material impact on the financial statements. 

Year Amount 

2012 $1,363,040 

2013 $1,240,481 

2014 0 

2015 0 

2016 0 

Subsequent to Year 2016 0 
ULTIMATE JETCHARTERS LLC 

NOTES TO YEAR END FINANCIAL STATEMENTS 

12 Months Beginning January 1, 2011 and Ending December 31, 2011 

7

Note 6 -Commitments and Contingencies (Continued) 

Government Regulation Substantially all of the Company’s facilities are subject to federal, state, 

and local provisions regulating the discharge of materials into the environment. Compliance 

with these provisions has not had, nor does the Company expect such compliance to have, any 

material effect upon the capital expenditures, net income, financial condition or competitive 

position of the Company. Management believes that its current practices and procedures for the 

control and disposition of such waste comply with applicable federal and state requirements. 

Note 7 – Subsequent Events 

The Company has evaluated subsequent events through July 25, 2012 the date which the 

financial statements were available to be issued. No events have occurred which would have a 

material effect on the financial statements of the Company as of that date except as disclosed 

below. 

In July 2012, the Company entered into an extension of the Forbearance Agreement with Key 

Bank that extended the agreement through November 30, 2012. Also in July 2012, the Company 

acquired financing from Fifth Third Bank which allowed the Company to payoff all Key Bank 

loans except the 2 Jet Loans. 
Ultimate Jet LLC

Balance Sheet as of

12/31/2012

Unaudited

Assets

Cash - $ 

Accounts Recievable - $ 

Notes Recievable - Shareholder - $ 

Interest Recievable - Shareholder - $ 

Investment in Ultimate JETCHARTERS LLC 47,168.00 $ 

Investment in Ultimate Real Estate LLC 4,281,170.00 $ 

Total Assets 4,328,338.00 $ 

Liabilities & Owners Equity

Accounts Payable - $ 

Notes Payable - $ 

Members Equity 4,328,338.00 $ 

Retained Earnings - $ 

Current Year Profit/Loss - $ 

Total Liabilities & Equity 4,328,338.00 $ 

checksum $ -

Exhibit ULTIMATE - 309
Ultimate Jet LLC

Profit and Loss Statement for the Period

01/1/2012 to 12/31/2012

Income

Revenue - $ 

Expense

Cost of Operations - $ 

Gross Profit - $ 

SG&A Expenses - $ 

EBITDA - $ 

Interest Income

Interest Expense - $ 

Depreciation - $ 

Net Income (Loss) - $ 
Notes to the Ultimate Jet LLC December 31, 2012 Financial Statements 

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

Nature of Operations 

Ultimate Jet LLC (hereinafter “UJ” or the “Company”) is an Ohio Limited Liability Company 

formed as a holding company for other business entities. It commenced operations on 

October 1, 2010. UJ presently has two wholly-owned subsidiaries: Ultimate JETCHARTER 

LLC, an Ohio Limited Liability Company: a full-service, air charter and fixed base operator 

located at the Akron-Canton Regional Airport in Ohio. Ultimate Real Estate LLC, an Ohio 

Limited Liability Company: an owner/lessor of real property. The financial results of these 

subsidiaries have not been consolidated in UJ’s December 31, 2012 financial statements. The 

Company is a limited liability company. The members' liability is limited to their investment. 

The Company headquarters is located in North Canton, Ohio at the Akron-Canton Regional 

Airport. 

Use of Estimates 

Management uses estimates and assumptions in preparing financial statements. Those 

estimates and assumptions affect the reported amounts of assets and liabilities, the 

disclosure of contingent assets and liabilities, and reported revenues and expenses. 

Trade Receivables 

The Company has no trade receivables. 

Prepaid Expenses 

The Company has no prepaid expenses. 

Investments 

Investments are at stated cost plus earnings reinvested. The value does not reflect current 

market value of unrealized gains or losses. On December 31, 2012, UJ held 100% equity 

interests in the following entities: 

 Amount Invested 

Ultimate JETCHARTER LLC $4,281,170 

Ultimate Real Estate LLC $ 47,168 

 

1 
Notes to the Ultimate Jet LLC December 31, 2012 Financial Statements (continued) 

Inventory 

UJ has no inventory. 

Property and Equipment 

The Company has no property or equipment. 

Accounts Payable 

UJ has no accounts payable. 

Short Term Liabilities 

UJ has no short term liabilities. 

Long Term Liabilities 

The Company has no long term liabilities. 

Income Taxes 

The Company has elected to be treated as a Partnership for federal and state income tax 

purposes. UJ's taxable income or losses, as well as, certain other tax attributes, are 

passed through directly to the Company's members and are reported in each member's 

individual income tax return. Consequently, these consolidated financial statements do not 

include any provision for federal or state income tax expense or liability. 

NOTE B -COMMITMENTS AND CONTINGENCIES 

The Company had at December 31, 2012, no important unfilled contracts for the purchase of 

material, merchandise, or equipment in excess of normal requirements or at prices 

substantially in excess of market at that date; or for the performance of services at prices that 

are expected to result in a loss upon completion. 

The Company has adopted the guidance for uncertainty in income taxes in FASB ASC 740-

1065-1. The Company will record a liability for uncertain tax positions when it is probable that 

a loss has been incurred and the amount can be reasonably estimated. The Company 

continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in 

tax law and new authoritative rulings. 

The Company's evaluation on December 31, 2012 revealed no tax positions that would have 

a material impact on the financial statements. The 2010 and 2011 tax years remain subject to 

examination by the IRS. In addition, the tax years 2010 and 2011 remain subject to 

examination by certain states. The Company does not believe that any reasonably possible 

changes will occur within the next six months that will have a material impact on the financial 

statements. 

2 
Notes to the Ultimate Jet LLC December 31, 2012 Financial Statements (continued) 

NOTE C – SUBSEQUENT EVENTS 

The Company has evaluated subsequent events through March 18, 2013, the date which the 

financial statements were available to be issued. No events have occurred which would have 

a material effect on the financial statements of the Company. 

3 
Exhibit ULTIMATE - 310




ULTIMATE JETCHARTERS LLC 

NOTES TO YEAR END FINANCIAL STATEMENTS 

12 Months Beginning January 1, 2012 and Ending December 31, 2012 

1

Note 1. Nature of Business and Significant Accounting Policies 

Nature of Business 

Ultimate JETCHARTERS LLC (the “Company”) is a Part 135 Air Taxi operator located at the 

Akron Canton Regional Airport in Ohio. In addition to aircraft charter services, the Company 

sells fuel and provides maintenance services from its fixed base operation at the Akron-Canton 

regional airport. 

The Company is an Ohio limited liability company. The members' liability is limited to their 

investment. 

The Company was formed as an Ohio “C” corporation in 2003. Shortly after it was formed, it 

acquired the Air Taxi, fueling, and aircraft maintenance business assets of Gordon Air 

Management, Inc., an Ohio corporation. The Company conducted those operations from 2003 

until 2007, when it sold its operating assets to Ultimate Jet Charter Acquisitions, Inc., a 

Delaware corporation. In September 2010, the Company was acquired by Ultimate Jet LLC and 

continued its Air Taxi, fueling, and aircraft maintenance operations. Concurrent with the 

acquisition by Ultimate Jet LLC, the Company filed a Certificate of Conversion with the Ohio 

Secretary of State changing its entity type from a corporation to a Limited Liability Company. 

The Company owns aircraft and has entered into lease arrangements with the owners of various 

30 seat Dornier 328 jets, providing charter flight services to a variety of customers. There are 

two types of aircraft leases. Under the first type is a “dry lease” under which the Company makes 

a fixed monthly payment to the owner to use the aircraft and the Company is responsible 

for all costs of operations and maintenance. Under the terms of the second type of aircraft lease, 

the owner of the aircraft receives 90% of the revenue and is responsible for all of the aircraft’s 

ownership, maintenance, and operating expenses. 

The complied financial statements of the Company reflect the application of certain policies 

described in this note.

Use of Estimates 

The preparation of financial statements in conformity with generally accepted accounting 

principles requires management to make estimates and assumptions that affect certain reported 

amounts and disclosures. Accordingly, actual results could differ from those estimates. 

Concentration of Credit Risk 

The Company maintains its cash in bank deposit accounts which, at times, may exceed federally 

insured limits. The Company has not experienced any losses in such accounts, and management 

believes it is not exposed to any significant credit risk on cash. 
ULTIMATE JETCHARTERS LLC 

NOTES TO YEAR END FINANCIAL STATEMENTS 

12 Months Beginning January 1, 2012 and Ending December 31, 2012 

2

Note 1. Nature of Business and Significant Accounting Policies (Continued) 

The Company grants credit to customers, substantially all of which are located in the United 

States of America. The Company has a comprehensive credit management program that includes 

ongoing credit evaluation of its customers, generally does not require collateral, and monitors 

potential credit losses. Credit losses have historically been within management’s expectation. 

Revenue Recognition 

Revenue from passenger transportation is recognized when provided. Revenue from sales of fuel 

and maintenance are recognized on a time-and-material basis. Deposits received on flights are 

recorded as unearned revenue and recognized at the time services are provided. 

Deposits received from customers for flights that will take place in the future are recorded in 

account 2330-00-00 Unearned Revenue on the balance sheet. The amounts in accounts 

receivable include any amounts in the Company’s USDOT public charter escrow account. These 

deposits are recognized as sales income at the time services are provided. If services are not 

provided to the customer by the Company, the deposit is generally returned to the customer. The 

Company may retain a percentage of the deposit as cancellation fee if the customer cancels the 

trip or is otherwise responsible for the trip not taking place. The Company always adheres to 

USDOT requirements when making refunds to public charter passengers. 

At 12/31/2012, the Company’s Unearned Revenue account had $415,314.44 of customer 

deposits for trips scheduled to take place in the future. 

Fair Value of Financial Instruments 

The carrying amounts of financial instruments, including cash, accounts receivable, accounts 

payable, accrued liabilities, and short-term borrowings approximates fair value due to the short 

maturity of these instruments. The carrying amount of long-term debt approximates fair value 

because the interest rates fluctuate with market interest. 

Cash & Cash Equivalents 

For purpose of the statement of cash flows, the Company considers all highly liquid debt 

instruments purchased with a maturity of three months or less to be cash equivalents. 

Accounts Receivable 

Accounts receivable are carried at the original invoice amount less an estimate made for doubtful 

receivables based on a review of all outstanding amounts on a monthly basis. Management 

determines the allowance for doubtful accounts by identifying troubled accounts. At December 

31, 2012, management had determined that no allowance for doubtful receivables was required. 

Receivables are written off when deemed uncollectible. Recoveries of receivables previously 

written off are recorded when received. 
ULTIMATE JETCHARTERS LLC 

NOTES TO YEAR END FINANCIAL STATEMENTS 

12 Months Beginning January 1, 2012 and Ending December 31, 2012 

3

Note 1. Nature of Business and Significant Accounting Policies (Continued) 

Inventories 

Inventories consist of aircraft replacement parts, fuel, and supplies held for resale. Inventories 

are valued at the lower of cost or market. Cost is determined by the first-in, first-out (FIFO) 

method. 

Property and Equipment 

Property and equipment are recorded at cost. Gains and losses on disposition of property and 

equipment are recognized as a component of current operations. Maintenance and repairs are 

expensed as incurred. Provisions for depreciation are computed principally by using the straightline method. Useful lives of property and equipment are as follows: 

Depreciation expense for the 12 month period beginning January 1 2012 and ending December 

31, 2012 was $870,835. 

Impairment of Long-Lived Assets 

The Company assesses potential impairment to its long-lived assets when events or changes in 

circumstances have made recovery of the assets carrying value unlikely and the carrying amount 

of the assets exceeds the estimated future undiscounted cash flows. If the assessment indicates 

that the carrying amounts may not be recoverable, an impairment loss would reduce the assets 

carrying amount to its estimated fair value based on the present value of the estimated future 

cash flows. 

Advertising 

The Company expenses advertising as incurred. For the calendar year ended December 31, 2012, 

advertising expenses were $275,666.67. 

Building 40 years 

Aircraft 12 years 

Equipment and tooling 7-10 years 

Furniture and fixtures 7 years 

Vehicles 5 years 

Leasehold Improvements 20 years 
ULTIMATE JETCHARTERS LLC 

NOTES TO YEAR END FINANCIAL STATEMENTS 

12 Months Beginning January 1, 2012 and Ending December 31, 2012 

4

Note 1. Nature of Business and Significant Accounting Policies (Continued) 

Presentation of Sales Taxes 

The State of Ohio imposes a sales tax on certain of the Company’s sales to nonexempt 

customers. The Company collects that sales tax from customers and remits the entire amount to 

the State. The Company’s accounting policy is to exclude the tax collected and remitted to the 

State from revenues and cost of sales. 

Intangible Assets 

Loan Closing costs of $38,913 are being amortized on the straight-line method over the life of 

the loans ranging from 3-5 years. Accumulated amortization at December 31, 2013 related to 

loan closing costs was $4,119. 

Amortization expense charged to operations in 2012 was $4,119. The estimated amortization expense for 

each of the next 5 years is as follows: 

 

2013 $9,617 

2014 $9,617 

2015 $7,324 

2016 $5,031 

2017 $3,205 

Income Taxes 

The Company has elected to be treated as a Partnership for federal and state income tax 

purposes. The Company’s taxable income or losses, as well as, certain other tax attributes, are 

passed through directly to the Company’s members and are reported in each member’s 

individual income tax return. Consequently, these consolidated financial statements do not 

include any provision for federal or state income tax expense or liability. 

Note 2. Short-Term Borrowings 

Short-term notes payable consists of a revolving line of credit of up to $1,750,000. At December 

31, 2012, the balance was $1,194,710. This note is secured by security interest in all assets of the 

Company including but not limited to inventory, accounts receivable, aircraft, and fixed assets. 

Interest is payable monthly at an interest rate per annum equal to the rate being asked on an 

amount of Eurodollar deposits equal to the amount of advances subject to LIBOR Rate election 

on the first day of a LIBOR Interest Period and which has a maturity corresponding to the 

maturity of the LIBOR Interest Period, as reported by Telerate rate reporting system (or any 

successor) as determined by the Lender by noon on the effective date of the LIBOR Interest 

Period (rounded upwards, if necessary, to the next 1/8

th 

of 1%) (the “LIBOR Rate”), plus 350 

basis points. The interest rate at December 31, 2012 was 3.75%. Any outstanding principal and 

interest is due at maturity on July 12, 2013. 
ULTIMATE JETCHARTERS LLC 

NOTES TO YEAR END FINANCIAL STATEMENTS 

12 Months Beginning January 1, 2012 and Ending December 31, 2012 

5

The Company pays the Lender an unused portion fee in an amount equal to one-quarter of one 

percent (.25%) per annum of the average daily unborrowed principal amount available under the 

Revolving Loan as computed by Lender. The unused portion fee is paid quarterly. 

Note 3. Long-Term Debt

The Term Note is secured by security interest in all assets of the Company including but not 

limited to inventory, accounts receivable, aircraft, and fixed assets. Interest is payable monthly at 

an interest rate per annum equal to the rate being asked on an amount of Eurodollar deposits 

equal to the amount of advances subject to LIBOR Rate election on the first day of a LIBOR 

Interest Period and which has a maturity corresponding to the maturity of the LIBOR Interest 

Period, as reported by Telerate rate reporting system (or any successor) as determined by the 

Lender by noon on the effective date of the LIBOR Interest Period (rounded upwards, if 

necessary, to the next 1/8

th 

of 1%) (the “LIBOR Rate”), plus 400 basis points. The interest rate at 

December 31, 2012 was 4.25%. Fixed principal installments of $16,667.67 are due monthly with 

any outstanding principal and interest due at maturity on July 31, 2015. 

The mortgage loan is secured by security interest in real estate owned by the Company. Interest 

is payable monthly at an interest rate per annum equal to the rate being asked on an amount of 

Eurodollar deposits equal to the amount of advances subject to LIBOR Rate election on the first 

day of a LIBOR Interest Period and which has a maturity corresponding to the maturity of the 

LIBOR Interest Period, as reported by Telerate rate reporting system (or any successor) as 

determined by the Lender by noon on the effective date of the LIBOR Interest Period (rounded 

upwards, if necessary, to the next 1/8

th 

of 1%) (the “LIBOR Rate”), plus 350 basis points. The 

interest rate at December 31, 2012 was 3.75%. Fixed principal installments of $5,500 are due 

monthly with any outstanding principal and interest due at maturity on July 31, 2017. 

Long-term debt consists of the following at December 31, 2012: 

 Principal Amount 

Term Loan, due July 31, 2015 $ 916,667 

Mortgage Loan, due July 31, 2017 $1,292,500 

Note Payable for 359 SK Jet, due November 20, 2017 $2,780,693 

Note Payable for 406 Aircraft, due November 30, 2012 $3,532,654 

Note Payable for Vehicle, due October 28, 2016 $19,903 

Note Payable – Ultimate Real Estate LLC 

Note Payable -Officer 1,458,398 

 10,000,815 

Less current portion ( 642,150 ) 

 $9,358,665 
ULTIMATE JETCHARTERS LLC 

NOTES TO YEAR END FINANCIAL STATEMENTS 

12 Months Beginning January 1, 2012 and Ending December 31, 2012 

6

Note 3. Long-Term Debt (Continued) 

The Company has three notes payable, which are collateralized by aircraft. The first bears 

interest at the 4.69%. Payments are $30,250 including principal and interest until October 20, 

2017 when the remaining balance is payable in full. The second bears interest at 7.44%. 

Payments are $32,000 per month and was due November 30, 2012. The Lender has not called the 

loan and the Company continues to pay $32,000 per month as it negotiates loans with other 

banks. The Company considers this loan as long-term since it is probable that the loan will be 

refinanced with another Lender. The loan is being reported under similar conditions currently 

being negotiated. 

The note payable for vehicle is secured by a 2013 Dodge Caravan. Installments of $466.14 

including interest of 3.858% are due monthly to October 28, 2016. 

The amount of interest cost incurred for the period ended December 31, 2012 was $504,472, all 

of which was charged to operations. 

Maturities of long-term debt for the years succeeding December 31, 2012, are as follows: 

Note 4 – Lease Obligations 

Operating Leases 

The Company conducts its operations from facilities that are leased under a five-year noncancelable operating lease expiring in July 2013. There is an option to renew the lease for two 

successive additional periods of five years each at an increased monthly rental. 

In addition, the Company leases aircraft under operating leases expiring in various years through 

December 31, 2013. Certain of these leases contain options to renew the lease for successive one 

year terms. 

The Company may also rent property, equipment, and transportation equipment on an as needed 

basis. 

2013 $ 642,150 

2014 $ 653,355 

2015 $ 992,412 

2016 $ 498,572 

2017 $5,755,929 
ULTIMATE JETCHARTERS LLC 

NOTES TO YEAR END FINANCIAL STATEMENTS 

12 Months Beginning January 1, 2012 and Ending December 31, 2012 

7

Note 4 – Lease Obligations (Continued) 

Minimum future rental payments under the con-cancelable operating lease having a remaining 

term in excess of one year as of December 31, 2012 for each of the next five years and in the 

aggregate are: 

Total Minimum Future Rental Payments $ 1,240,481 

Total rent expense under operating leases for 2012 was $816,041. 

Note 5. Related Party Transactions 

The Company leases two aircraft from an entity which is owned by an individual who is also a 

member of the Company. The terms of the leases are comparable to the Company’s other aircraft 

leases and are described in Note 5. As of December 31, 2012, the Company was owed 

$2,789,312 by this lessor. 

The Company also had a balance due an individual who is a member of the Company for 

advances made to the company. The advances are unsecured. The balance owed to the individual 

as of December 31, 2012 was $1,423,028. 

Note 6 -Commitments and Contingencies 

The Company had at December 31, 2012, no important unfilled contracts for the purchase of 

material, merchandise, or equipment in excess of normal requirements or at prices substantially 

in excess of market at that date; or for the performance of services at prices that are expected to 

result in a loss upon completion. 

The Company has adopted the guidance for uncertainty in income taxes in FASB ASC 740-10-

65-1. The Company will record a liability for uncertain tax positions when it is probable that a 

loss has been incurred and the amount can be reasonably estimated. The Company continually 

evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and 

new authoritative rulings. 

The Company’s evaluation on December 31, 2012 revealed no tax positions that would have a 

material impact on the financial statements. The 2010 and 2011 tax years remain subject to 

examination by the IRS. In addition, the tax years 2010 and 2011 remain subject to examination 

by certain states. The Company does not believe that any reasonably possible changes will occur 

within the next twelve months that will have a material impact on the financial statements. 

Year Amount 

2013 $ 1,240,481 

2014 0 

2015 0 

2016 0 

2017 0 

Subsequent to Year 2017 0 
ULTIMATE JETCHARTERS LLC 

NOTES TO YEAR END FINANCIAL STATEMENTS 

12 Months Beginning January 1, 2012 and Ending December 31, 2012 

8

Note 6 -Commitments and Contingencies (Continued) 

Government Regulation Substantially all of the Company’s facilities are subject to federal, state, 

and local provisions regulating the discharge of materials into the environment. Compliance 

with these provisions has not had, nor does the Company expect such compliance to have, any 

material effect upon the capital expenditures, net income, financial condition or competitive 

position of the Company. Management believes that its current practices and procedures for the 

control and disposition of such waste comply with applicable federal and state requirements. 

Note 7 – Subsequent Events 

The Company has evaluated subsequent events through March 18, 2013, the date which the 

financial statements were available to be issued. No events have occurred which would have a 

material effect on the financial statements of the Company as of that date except as disclosed 

below. 

In February 2013, the Company purchased an aircraft that it previously had a lease arrangement 

with the aircraft owners. The company financed the aircraft purchase and was able to relieve the 

account receivable from the aircraft owners of $1,784,878. 
Ultimate Jet LLC

Balance Sheet as of

6/30/2013

Unaudited

Assets

Cash - $ 

Accounts Recievable - $ 

Notes Recievable - Shareholder - $ 

Interest Recievable - Shareholder - $ 

Investment in Ultimate JETCHARTERS LLC 47,168.00 $ 

Investment in Ultimate Real Estate LLC 4,281,170.00 $ 

Total Assets 4,328,338.00 $ 

Liabilities & Owners Equity

Accounts Payable - $ 

Notes Payable - $ 

Members Equity 4,328,338.00 $ 

Retained Earnings - $ 

Current Year Profit/Loss - $ 

Total Liabilities & Equity 4,328,338.00 $ 

checksum $ -

Exhibit ULTIMATE - 311
Ultimate Jet LLC

Profit and Loss Statement for the Period

01/1/2013 to 6/30/2013

Income

Revenue - $ 

Expense

Cost of Operations - $ 

Gross Profit - $ 

SG&A Expenses - $ 

EBITDA - $ 

Interest Income

Interest Expense - $ 

Depreciation - $ 

Net Income (Loss) - $ 
Notes to the Ultimate Jet LLC June 30, 2013 Interim Financial Statements 

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

Nature of Operations 

Ultimate Jet LLC (hereinafter “UJ” or the “Company”) is an Ohio Limited Liability Company 

formed as a holding company for other business entities. It commenced operations on 

October 1, 2010. UJ presently has two wholly-owned subsidiaries: Ultimate JETCHARTER 

LLC, an Ohio Limited Liability Company: a full-service, air charter and fixed base operator 

located at the Akron-Canton Regional Airport in Ohio. Ultimate Real Estate LLC, an Ohio 

Limited Liability Company: an owner/lessor of real property. The financial results of these 

subsidiaries have not been consolidated in UJ’s June 30, 2013 interim financial statements. 

The Company is a limited liability company. The members' liability is limited to their 

investment. The Company headquarters is located in North Canton, Ohio at the Akron-Canton 

Regional Airport. 

Use of Estimates 

Management uses estimates and assumptions in preparing financial statements. Those 

estimates and assumptions affect the reported amounts of assets and liabilities, the 

disclosure of contingent assets and liabilities, and reported revenues and expenses. 

Trade Receivables 

The Company has no trade receivables. 

Prepaid Expenses 

The Company has no prepaid expenses. 

Investments 

Investments are at stated cost plus earnings reinvested. The value does not reflect current 

market value of unrealized gains or losses. On June 30, 2013, UJ held 100% equity interests 

in the following entities: 

 Amount Invested 

Ultimate JETCHARTER LLC $4,281,170 

Ultimate Real Estate LLC $ 47,168 

 

1 
Notes to the Ultimate Jet LLC June 30, 2013 Interim Financial Statements (continued) 

Inventory 

UJ has no inventory. 

Property and Equipment 

The Company has no property or equipment. 

Accounts Payable 

UJ has no accounts payable. 

Short Term Liabilities 

UJ has no short term liabilities. 

Long Term Liabilities 

The Company has no long term liabilities. 

Income Taxes 

The Company has elected to be treated as a Partnership for federal and state income tax 

purposes. UJ's taxable income or losses, as well as, certain other tax attributes, are 

passed through directly to the Company's members and are reported in each member's 

individual income tax return. Consequently, these consolidated financial statements do not 

include any provision for federal or state income tax expense or liability. 

NOTE B -COMMITMENTS AND CONTINGENCIES 

The Company had at June 30, 2013, no important unfilled contracts for the purchase of 

material, merchandise, or equipment in excess of normal requirements or at prices 

substantially in excess of market at that date; or for the performance of services at prices that 

are expected to result in a loss upon completion. 

The Company has adopted the guidance for uncertainty in income taxes in FASB ASC 740-

1065-1. The Company will record a liability for uncertain tax positions when it is probable that 

a loss has been incurred and the amount can be reasonably estimated. The Company 

continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in 

tax law and new authoritative rulings. 

The Company's evaluation on June 30, 2013 revealed no tax positions that would have a 

material impact on the financial statements. The 2010, 2011, and 2012 tax years remain 

subject to examination by the IRS. In addition, the tax years 2010, 2011, and 2012 remain 

subject to examination by certain states. The Company does not believe that any reasonably 

possible changes will occur within the next six months that will have a material impact on the 

financial statements. 

2 
Notes to the Ultimate Jet LLC June 30, 2013 Interim Financial Statements (continued) 

NOTE C – SUBSEQUENT EVENTS 

The Company has evaluated subsequent events through July 26, 2013, the date which the 

financial statements were available to be issued. No events have occurred which would have 

a material effect on the financial statements of the Company. 

3 
Balance Sheet 

As of 6/30/2013 

Assets 

Current Assets 

1001-00-00 Petty Cash 

1005-00-00 Huntington Regular Account 

1050-00-00 Fifth Third Regular Account 

1055-00-00 Fifth Third Payroll Account 

1200-00-00 Accounts Receivable 

1205-00-00 Fuel Receivables 

1220-00-00 Escrow Receivables 

1295-00-00 Due from Owners 

1300-00-00 Parts 

1301-00-00 Prepaid Training 

1305-00-00 Prepaid Insurance 

1310-00-00 O/S Maintenance 

1350-04-00 FBO Fuel:FBO-Corp 

1400-00-00 Deposits 

1401-00-00 Lease Deposit 407 

1402-00-00 Lease Deposit 429 

1410-00-00 Engine Reserves 

Total Current Assets: 

Fixed Assets 

1600-00-01 Jets: 406FJ 

1600-00-03 Jets: 411FJ 

1600-00-10 Jets: 359SK 

1601-00-00 Jets: Improvements 

1601-00-01 Jets: Improvements: 406FJ 

1601-00-10 Jets: lmprovements:359SK 

1602-00-00 Jets: Engines 

1605-00-01 Accum Depree Jets:406FJ 

1605-00-10 Accum Depree Jets:359SK 

1610-00-00 Autos & Trucks 

1615-00-00 Accum Depree A& T 

1620-00-00 Equipment 

1625-00-00 Accum Depree Equip 

1630-00-00 Furniture & Fixtures 

1635-00-00 Accum Depree F&F 

1640-00-00 Tooling 

1645-00-00 Accum Depree Tooling 

1660-00-00 Financing Costs 

1665-00-00 Accum Amort Financing Costs 

1670-00-00 Accum Part 121 

1680-00-00 Leasehold Improvements 

1685-00-00 Accum Depree Leasehold Improvements 

1700-00-00 Prepaid Expense 

Total Fixed Assets: 

Total Assets: 

Run Date: 7/18/2013 1 :30:48PM 

G/L Date: 7/18/2013 

ULTIMATE JETCHARTERS LLC (UJC) 

$ 1,600.00 

$ 132.37 

$ 58,282.27 

$ 19.45 

$ 750,077.10 

$ 29,375.77 

$ 137,926.55 

$ 6,501,256.13 

$ 983,835.45 

$ 274,740.78 

$ 2,502.03 

$ 16,922.59 

$ 50,745.39 

$ 561,297.79 

$ 38,804.56 

$ 198,983.11 

$ 16,290.58 

$ 9,622,791.92 

$ 4, 126,572.00 

$ 2, 700,000.00 

$ 3,324,848.00 

$ 483,284.56 

$ 433,090.25 

$ 964,255.38 

$ 2,964,719.49 

$ (818,846.00) 

$ (623,409.00) 

$ 89,333.02 

$ (27,373.00) 

$ 275,767.48 

$ (256,035.00) 

$ 26,204.06 

$ (4,027.00) 

$ 23,207.71 

$ (5,222.00) 

$ 151,423.54 

$ (2,303.00) 

$ 627,942.11 

$ 20,404.00 

$ (1,360.00) 

$ 33,005.55 

$ 14,505,482.15 

$ 24, 128,274.07 

Page: 1 

User Logan: carol 

Exhibit ULTIMATE - 312
Balance Sheet 

As of 6/30/2013 

Liabilities 

Current Liabilities 

2010-00-00 Accounts Payable 

2100-00-00 Term Note Payable - Fifth Third Bank 

2110-00-00 Line of Credit - Fifth Third Bank 

2115-00-00 2013 Dodge Caravan 

2200-00-00 Federal Payroll Taxes 

2210-00-00 Workers Comp 

2215-00-00 Local Withholding 

2220-00-00 FUTA 

2225-00-00 SUTA 

2250-00-00 Accrued Payroll 

2270-00-00 Sales Tax Payable 

2280-00-00 Accrued FET 

2300-00-00 JSSI Engine Reserve 

2310-00-00 Accrued Expense 

2320-00-00 Prepaid Fuel 

2330-00-00 Unearned Revenue 

2410-00-00 Loan JG 

Total Current Liabilities: 

Long-Term Liabilities 

2500-00-00 Note 359SK 

2501-00-00 Note 406FJ 

2502-00-00 Advance from Ultimate Real Estate 

2503-00-00 Note 411FJ 

Total Long-Term Liabilities: 

Total Liabilities: 

Equity 

3100-00-00 Common Stock 

3110-00-00 Addt'I Paid in Cap 

3300-00-00 Retained Earnings 

3300-00-00 Retained Earnings-Current Year 

3410-00-00 Owner Draws 

Total Equity: 

Total Liabilities & Equity: 

Run Date: 7/18/2013 1 :30:48PM 

G/L Date: 7/18/2013 

ULTIMATE JETCHARTERS LLC (UJC) 

$ 1,855,545.29 

$ 816,666.63 

$ 1,258,304.41 

$ 17,477.11 

$ 15,033.36 

$ 40,721.71 

$ 5,236.42 

$ 220.57 

$ 4,318.39 

$ 244,740.31 

$ 3,097.23 

$ 101,790.17 

$ 393,292.42 

$ 111,276.42 

$ 17,848.81 

$ 56, 160.68 

$ 1,390,957.44 

$ 6,332,687.37 

$ 2,663,258.38 

$ 3,730,382.75 

$ 309,095.04 

$ 2,606,836.35 

$ 9,309,572.52 

$ 15,642,259.89 

$ 1.00 

$ 2,400,000.00 

$ 4,659,406.27 

$ 1,669,899.91 

$ (243,293.00) 

$ 8,486,014.18 

$ 24, 128,274.07 

Page: 2 

User Logon: carol 
Income Statement 

For The 6 Periods Ended 6/30/2013 

Revenue 

Sales Flight 

Sales Contract Flight 

Sales Road Fuel 

Sales Home Fuel 

Sales Crewing 

Sales Fuel Surcharge 

Sales Catering 

Sales Aircraft Supplies 

Sales Ldg/Park Fees 

Sales Crew Overnight 

Sales Rent Hangar/Office 

Sales Maintenance-Labor 

Sales Maintenance-Other 

Sales Flight Attendent 

Sales Miscellaneous 

Sales Ground Transportation 

Total Revenue: 

Gross Profit: 

Expenses 

Cost of Goods Sold 

Cogs Road Fuel 

Cogs Home Fuel 

Cogs Insurance 

Engine Reserve 

Avionics Program 

Generator Program 

Cogs Catering 

Cogs A/C Supplies 

Cogs Ldg/Park Fees 

Cogs Hangar Rent 

Cogs Maintenance 

Cogs Contract Flight 

Cogs A/C Lease Payments 

Cogs Hotel/Food 

Cogs O/S Maintenance 

Commissions 

Cogs Ground Transportation 

COGS Booking Fees 

Cogs Due Owners 

Total Cost of Goods Sold: 

Operating Expenses 

Wages 

Wages Overtime 

Commissions 

Fica Tax Employer Expense 

Futa Expense 

Sula Expense 

Workers Comp Expense 

Health Insurance Expense 

AFLAC 

Car Allowance Expense 

Run Date: 7/18/2013 1:30:51PM 

G/L Date: 7/18/2013 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

Period to Date 

1,843,787.47 

0.00 

111,866.34 

231,991.68 

114,290.00 

38,892.52 

500.59 

5,083.41 

69,441.88. 

13, 195.00 

2,950.00 

9,360.00 

26,055.51 

17, 100.00 

799.90 

10,474.35 

2,495,788.65 

2,495, 788.65 

623,458.44 

198,111.37 

61,973.85 

89,836.20 

0.00 

6,717.75 

500.59 

12,766.04 

82,240.87 

6,850.00 

98,569.65 

0.00 

39,506.07 

73, 108.18 

3,500.00 

40,817.76 

6,144.04 

15,232.11 

279,669.80 

1,639,002.72 

371,588.97 

14,056.12 

57,752.73 

31,200.97 

50.40 

904.39 

5,819.95 

24,834.28 

0.02 

557.77 

ULTIMATE JETCHARTERS LLC (UJC) 

% of Revenue 

73.88 $ 

0.00 $ 

4.48 $ 

9.30 $ 

4.58 $ 

1.56 $ 

0.02 $ 

0.20 $ 

2.78 $ 

0.53 $ 

0.12 $ 

0.38 $ 

1.04 $ 

0.69 $ 

0.03 $ 

0.42 $ 

100.00 $ 

100.00 $ 

24.98 $ 

7.94 $ 

2.48 $ 

3.60 $ 

0.00 $ 

0.27 $ 

0.02 $ 

0.51 $ 

3.30 $ 

0.27 $ 

3.95 $ 

0.00 $ 

1.58 $ 

2.93 $ 

0.14 $ 

1.64 $ 

0.25 $ 

0.61 $ 

11.21 $ 

65.67 $ 

14.89 $ 

0.56 $ 

2.31 $ 

1.25 $ 

0.00 $ 

0.04 $ 

0.23 $ 

1.00 $ 

0.00 $ 

0.02 $ 

Year to Date 

13,243,866.14 

33,476.46 

1,843,320.86 

1,331, 766.86 

849,311.15 

701,669.75 

3, 185.42 

31,695.83 

586,986.12 

143,395.00 

24,988.46 

143,423.69 

535,249.95 

114,000.00 

5, 124.80 

49,511.66 

19,640,972.15 

19,640,972.15 

4,892,981.06 

1,207,271.19 

259,750.57 

349,017.30 

31,326.47 

41,018.48 

3,083.00 

79,839.95 

635, 188.50 

43,436.00 

964,739.00 

29,415.59 

269, 164.00 

370,831.57 

17, 110.00 

173,790.89 

35,877.38 

77, 143.44 

3,641,499.69 

13, 122,484.08 

2,239,395.30 

159,602.11 

383,694.82 

217,145.12 

2,646.87 

50,170.34 

37,876.62 

144,652.37 

11.25 

3,346.62 

% of Revenue 

Page: 1 

67.43 

0.17 

9.39 

6.78 

4.32 

3.57 

0.02 

0.16 

2.99 

0.73 

0.13 

0.73 

2.73 

0.58 

0.03 

0.25 

100.00 

100.00 

24.91 

6.15 

1.32 

1.78 

0.16 

0.21 

0.02 

0.41 

3.23 

0.22 

4.91 

0.15 

1.37 

1.89 

0.09 

0.88 

0.18 

0.39 

18.54 

66.81 

11.40 

0.81 

1.95 

1.11 

0.01 

0.26 

0.19 

0.74 

0.00 

0.02 

User Logon: carol 
Income Statement 

For The 6 Periods Ended 6/30/2013 

Operating Expenses 

Apt Allowance Expense 

Drug Testing 

Training Expense 

Per Diem Overnight Expense 

Per Diem Flight Expense 

Repairs & Upkeep 

License, Permit, Fees 

Office Supplies 

Computer Expenses 

Membership,Dues,Subscrip 

Telephone 

Television & Internet 

Freight 

Advertising-Sales 

Travel Expense 

Meals/Entertainment 

Postage 

Interest Expense 

Legal Expense 

Bank Fees 

Finance Charges 

Insurance Expense 

Shop Supplies 

Uniform Expense 

Rent Expense 

Equip Rent 

Electric 

Gas 

Other Utilities 

Flowage Fees 

Small Tools 

Employee Benefits 

Professional Fees 

Real Estate Taxes 

Other Taxes 

Total Operating Expenses: 

Total Expenses: 

Net Income From Operations: 

Other Income and Expense 

Discounts 

Rebate Bonus 

Interest Income 

Total Other Income and 

Earnings Before Income Tax: 

Net Income (Loss): 

Run Date: 7/18/2013 1 :30:51 PM 

G/L Date: 7/18/2013 

(Continued) 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

Period to Date 

1,195.00 

398.00 

1,569.48 

18,757.15 

31,719.64 

4,887.30 

2,566.67 

1,773.87 

15,086.35 

4,803.24 

3,589.62 

764.64 

4,840.37 

26,848.84 

7,594.35 

1,070.13 

15.77 

66,318.22 

14,740.25 

1,643.96 

3,388.62 

4,595.25 

370.19 

203.84 

12,113.52 

6,257.13 

1,995.37 

80.88 

315.00 

2,389.60 

323.71 

0.00 

379.17 

1,249.75 

3,283.01 

753,893.49 

2,392,896.21 

102,892.44 

0.00 

0.00 

0.00 

0.00 

102,892.44 

102,892.44 

ULTIMATE JETCHARTERS LLC (UJC) 

% of Revenue 

0.05 $ 

0.02 $ 

0.06 $ 

0.75 $ 

1.27 $ 

0.20 $ 

0.10 $ 

0.07 $ 

0.60 $ 

0.19 $ 

0.14 $ 

0.03 $ 

0.19 $ 

1.08 $ 

0.30 $ 

0.04 $ 

0.00 $ 

2.66 $ 

0.59 $ 

0.07 $ 

0.14 $ 

0.18 $ 

0.01 $ 

0.01 $ 

0.49 $ 

0.25 $ 

0.08 $ 

0.00 $ 

0.01 $ 

0.10 $ 

0.01 $ 

0.00 $ 

0.02 $ 

0.05 $ 

0.13 $ 

30.21 $ 

95.88 $ 

4.12 $ 

0.00 $ 

0.00 $ 

0.00 $ 

0.00 $ 

4.12 $ 

Year to Date 

7, 170.00 

1,161.00 

132,070.27 

209,346.43 

226,533.21 

23,286.22 

10,393.23 

17,140.88 

48,430.44 

38,522.44 

20,761.99 

2,955.55 

20,111.49 

105,400.55 

24,096.91 

7,349.79 

538.75 

304,123.65 

64,157.19 

14,567.62 

25, 100.93 

34,323.46 

4,655.28 

1,865.82 

73,063.83 

44,254.29 

10,346.76 

8,707.13 

1,366.56 

17,101.95 

1,361.35 

483.32 

101,650.31 

7,465.71 

24,703.12 

4,873, 108.85 

17,995,592.93 

1,645,379.22 

234.60 

24,009.40 

276.69 

24,520.69 

1,669,899.91 

4.12 $ 1,669,899.91 

======= 

% of Revenue 

Page: 2 

0.04 

0.01 

0.67 

1.07 

1.15 

0.12 

0.05 

0.09 

0.25 

0.20 

0.11 

0.02 

0.10 

0.54 

0.12 

0.04 

0.00 

1.55 

0.33 

0.07 

0.13 

0.17 

0.02 

0.01 

0.37 

0.23 

0.05 

0.04 

0.01 

0.09 

0.01 

0.00 

0.52 

0.04 

0.13 

24.81 

91.62 

8.38 

0.00 

0.12 

0.00 

0.12 

8.50 

8.50 

User Logon: carol 
ULTIMATE JETCHARTERS LLC 

NOTES TO INTERIM FINANCIAL STATEMENTS 

6 Months Beginning January 1, 2013 and Ending June 30, 2013 

1

Note 1. Nature of Business and Significant Accounting Policies 

Nature of Business 

Ultimate JETCHARTERS LLC (the “Company”) is a Part 135 Air Taxi operator located at the 

Akron Canton Regional Airport in Ohio. In addition to aircraft charter services, the Company 

sells fuel and provides maintenance services from its fixed base operation at the Akron-Canton 

regional airport. 

The Company is an Ohio limited liability company. The members' liability is limited to their 

investment. 

The Company was formed as an Ohio “C” corporation in 2003. Shortly after it was formed, it 

acquired the Air Taxi, fueling, and aircraft maintenance business assets of Gordon Air 

Management, Inc., an Ohio corporation. The Company conducted those operations from 2003 

until 2007, when it sold its operating assets to Ultimate Jet Charter Acquisitions, Inc., a 

Delaware corporation. In September 2010, the Company was acquired by Ultimate Jet LLC and 

continued its Air Taxi, fueling, and aircraft maintenance operations. Concurrent with the 

acquisition by Ultimate Jet LLC, the Company filed a Certificate of Conversion with the Ohio 

Secretary of State changing its entity type from a corporation to a Limited Liability Company. 

The Company owns aircraft and has entered into lease arrangements with the owners of various 

30 seat Dornier 328 jets, providing charter flight services to a variety of customers. There are 

two types of aircraft leases. Under the first type is a “dry lease” under which the Company makes 

a fixed monthly payment to the owner to use the aircraft and the Company is responsible for all 

costs of operations and maintenance. Under the terms of the second type of aircraft lease, the 

owner of the aircraft receives 90% of the revenue and is responsible for all of the aircraft’s 

ownership, maintenance, and operating expenses. 

The complied financial statements of the Company reflect the application of certain policies 

described in this note. 

Use of Estimates 

The preparation of financial statements in conformity with generally accepted accounting 

principles requires management to make estimates and assumptions that affect certain reported 

amounts and disclosures. Accordingly, actual results could differ from those estimates. 

Concentration of Credit Risk 

The Company maintains its cash in bank deposit accounts which, at times, may exceed federally 

insured limits. The Company has not experienced any losses in such accounts, and management 

believes it is not exposed to any significant credit risk on cash. 
ULTIMATE JETCHARTERS LLC 

NOTES TO INTERIM FINANCIAL STATEMENTS 

6 Months Beginning January 1, 2013 and Ending June 30, 2013 

2

Note 1. Nature of Business and Significant Accounting Policies (Continued) 

The Company grants credit to customers, substantially all of which are located in the United 

States of America. The Company has a comprehensive credit management program that includes 

ongoing credit evaluation of its customers, generally does not require collateral, and monitors 

potential credit losses. Credit losses have historically been within management’s expectation. 

Revenue Recognition 

Revenue from passenger transportation is recognized when provided. Revenue from sales of fuel 

and maintenance are recognized on a time-and-material basis. Deposits received on flights are 

recorded as unearned revenue and recognized at the time services are provided. 

Deposits received from customers for flights that will take place in the future are recorded in 

account 2330-00-00 Unearned Revenue on the balance sheet. The amounts in accounts 

receivable include any amounts in the Company’s USDOT public charter escrow account. These 

deposits are recognized as sales income at the time services are provided. If services are not 

provided to the customer by the Company, the deposit is generally returned to the customer. The 

Company may retain a percentage of the deposit as cancellation fee if the customer cancels the 

trip or is otherwise responsible for the trip not taking place. The Company always adheres to 

USDOT requirements when making refunds to public charter passengers. 

At June 30, 2013, the Company’s Unearned Revenue account had $56,160 of customer deposits 

for trips scheduled to take place in the future. 

Fair Value of Financial Instruments 

The carrying amounts of financial instruments, including cash, accounts receivable, accounts 

payable, accrued liabilities, and short-term borrowings approximates fair value due to the short 

maturity of these instruments. The carrying amount of long-term debt approximates fair value 

because the interest rates fluctuate with market interest. 

Cash & Cash Equivalents 

For purpose of the statement of cash flows, the Company considers all highly liquid debt 

instruments purchased with a maturity of three months or less to be cash equivalents. 

Accounts Receivable 

Accounts receivable are carried at the original invoice amount less an estimate made for doubtful 

receivables based on a review of all outstanding amounts on a monthly basis. Management 

determines the allowance for doubtful accounts by identifying troubled accounts. At June 30, 

2013, management had determined that no allowance for doubtful receivables was required. 

Receivables are written off when deemed uncollectible. Recoveries of receivables previously 

written off are recorded when received. 
ULTIMATE JETCHARTERS LLC 

NOTES TO INTERIM FINANCIAL STATEMENTS 

6 Months Beginning January 1, 2013 and Ending June 30, 2013 

3

Note 1. Nature of Business and Significant Accounting Policies (Continued) 

Inventories 

Inventories consist of aircraft replacement parts, fuel, and supplies held for resale. Inventories 

are valued at the lower of cost or market. Cost is determined by the first-in, first-out (FIFO) 

method. 

Property and Equipment 

Property and equipment are recorded at cost. Gains and losses on disposition of property and 

equipment are recognized as a component of current operations. Maintenance and repairs are 

expensed as incurred. Provisions for depreciation are computed principally by using the straightline method. Useful lives of property and equipment are as follows: 

Building 40 years 

Aircraft 12 years 

Equipment and tooling 7-10 years 

Furniture and fixtures 7 years 

Vehicles 5 years 

Leasehold Improvements 20 years 

Depreciation expense for the 6 month period beginning January 1 2013 and ending June 30, 2013 

was $574,608 

The Company records all depreciation at year end. Therefore, the interim financial statements 

dated June 30, 2013 do not reflect the accumulated depreciation. Adjusting for depreciation, the 

net profit before amortization and taxes at June 30, 2013 is $1,095,292

Impairment of Long-Lived Assets 

The Company assesses potential impairment to its long-lived assets when events or changes in 

circumstances have made recovery of the assets carrying value unlikely and the carrying amount 

of the assets exceeds the estimated future undiscounted cash flows. If the assessment indicates 

that the carrying amounts may not be recoverable, an impairment loss would reduce the assets 

carrying amount to its estimated fair value based on the present value of the estimated future 

cash flows. 

Advertising 

The Company expenses advertising as incurred. For the calendar quarter ended June 30, 2013, 

advertising expenses were $105,401. 
ULTIMATE JETCHARTERS LLC 

NOTES TO INTERIM FINANCIAL STATEMENTS 

6 Months Beginning January 1, 2013 and Ending June 30, 2013 

4

Note 1. Nature of Business and Significant Accounting Policies (Continued) 

Presentation of Sales Taxes 

The State of Ohio imposes a sales tax on certain of the Company’s sales to nonexempt 

customers. The Company collects that sales tax from customers and remits the entire amount to 

the State. The Company’s accounting policy is to exclude the tax collected and remitted to the 

State from revenues and cost of sales. 

Intangible Assets 

Loan Closing costs of $38,913 are being amortized on the straight-line method over the life of 

the loans ranging from 3-5 years. Accumulated amortization at January 1, 2013 related to loan 

closing costs was $4,119. 

Amortization expense for the period January 1, 2013 to June 30, 2013 was $4,808. 

The Company records all amortization at year end. Therefore, the interim financial statements 

dated March 31, 2013 do not reflect the accumulated depreciation. Adjusting for amortization 

and depreciation, the net profit at March 31, 2013 is $1,090,484.

The estimated amortization expense for the remainder of 2013 and each of the next 4 years is as 

follows: 

 

2013 $4,809 

2014 $9,617 

2015 $7,324 

2016 $5,031 

2017 $3,205 

Income Taxes 

The Company has elected to be treated as a Partnership for federal and state income tax 

purposes. The Company’s taxable income or losses, as well as, certain other tax attributes, are 

passed through directly to the Company’s members and are reported in each member’s 

individual income tax return. Consequently, these consolidated financial statements do not 

include any provision for federal or state income tax expense or liability. 

Note 2. Short-Term Borrowings 

Short-term notes payable consists of a revolving line of credit of up to $1,750,000. At June 30, 

2013, the balance was $1,258,304.41. This note is secured by security interest in all assets of the 

Company including but not limited to inventory, accounts receivable, aircraft, and fixed assets. 
ULTIMATE JETCHARTERS LLC 

NOTES TO INTERIM FINANCIAL STATEMENTS 

6 Months Beginning January 1, 2013 and Ending June 30, 2013 

5

Note 2. Short-Term Borrowings (continued)

Interest is payable monthly at an interest rate per annum equal to the rate being asked on an 

amount of Eurodollar deposits equal to the amount of advances subject to LIBOR Rate election 

on the first day of a LIBOR Interest Period and which has a maturity corresponding to the 

maturity of the LIBOR Interest Period, as reported by Telerate rate reporting system (or any 

successor) as determined by the Lender by noon on the effective date of the LIBOR Interest 

Period (rounded upwards, if necessary, to the next 1/8

th 

of 1%) (the “LIBOR Rate”), plus 350 

basis points. The interest rate at June 30 2013 was 4.18%. Any outstanding principal and interest 

is due at maturity on July 12, 2013. 

The Company pays the Lender an unused portion fee in an amount equal to one-quarter of one 

percent (.25%) per annum of the average daily un-borrowed principal amount available under the 

Revolving Loan as computed by Lender. The unused portion fee is paid quarterly. 

Note 3. Long-Term Debt

Long-term debt consists of the following at June 30, 2013: 

 Principal Amount 

Term Loan, due July 31, 2015 $ 816,667 

Note Payable for 359 SK Jet, due November 20, 2017 $2,663,258 

Note Payable for 406 Aircraft, due November 30, 2012 $3,730,383 

Note Payable for 411FJ $2,606,836 

Note Payable for Vehicle, due October 28, 2016 $17,477 

Note Payable – Ultimate Real Estate LLC $309,095 

Note Payable -Officer $1,390,957 

Total: $11,534,673 

The Term Note is secured by security interest in all assets of the Company including but not 

limited to inventory, accounts receivable, aircraft, and fixed assets. Interest is payable monthly at 

an interest rate per annum equal to the rate being asked on an amount of Eurodollar deposits 

equal to the amount of advances subject to LIBOR Rate election on the first day of a LIBOR 

Interest Period and which has a maturity corresponding to the maturity of the LIBOR Interest 

Period, as reported by Telerate rate reporting system (or any successor) as determined by the 

Lender by noon on the effective date of the LIBOR Interest Period (rounded upwards, if 

necessary, to the next 1/8th of 1%) (the “LIBOR Rate”), plus 400 basis points. The interest rate 

at June 30, 2013 was 4.68%. Fixed principal installments of $16,667.67 are due monthly with 

any outstanding principal and interest due at maturity on July 31, 2015. 
ULTIMATE JETCHARTERS LLC 

NOTES TO INTERIM FINANCIAL STATEMENTS 

6 Months Beginning January 1, 2013 and Ending June 30, 2013 

6

Note 3. Long-Term Debt (Continued) 

The mortgage loan is secured by security interest in real estate owned by the Company. Interest 

is payable monthly at an interest rate per annum equal to the rate being asked on an amount of 

Eurodollar deposits equal to the amount of advances subject to LIBOR Rate election on the first 

day of a LIBOR Interest Period and which has a maturity corresponding to the maturity of the 

LIBOR Interest Period, as reported by Telerate rate reporting system (or any successor) as 

determined by the Lender by noon on the effective date of the LIBOR Interest Period (rounded 

upwards, if necessary, to the next 1/8

th 

of 1%) (the “LIBOR Rate”), plus 350 basis points. The 

interest rate at June 30, 2013 was 4.18%. Fixed principal installments of $5,500 are due monthly 

with any outstanding principal and interest due at maturity on July 31, 2017. 

The Company has three notes payable collateralized by aircraft. The first bears interest at the 

4.69%. Payments are $30,250 including principal and interest until October 20, 2017 when the 

remaining balance is payable in full. The second bears interest at 7.44%. Payments are $32,000 

per month and was due November 30, 2012. The Lender has not called the loan and the 

Company continues to pay $32,000 per month as it negotiates loans with other banks. The 

Company considers this loan as long-term since it is probable that the loan will be refinanced 

with another Lender. The loan is being reported under similar conditions currently being 

negotiated. In February 2013, the Company purchased an aircraft (N411FJ) that it previously had 

a lease arrangement with the aircraft owners. The company financed the aircraft purchase and 

was able to relieve the account receivable from the aircraft owners of $1,784,878. 

The note payable for vehicle is secured by a 2013 Dodge Caravan. Installments of $466.14 

including interest of 3.858% are due monthly to October 28, 2016. 

The amount of interest cost incurred for the period ended June 30, 2013 was $304,124, all of 

which was charged to operations. 

Maturities of long-term debt for 2013 and succeeding years are as follows: 

2013 $ 642,150 

2014 $653,355 

2015 $992,412 

2016 $498,572 

2017 $5,755,929 

Note 4. Lease Obligations 

Operating Leases 

The Company conducts its operations from facilities that are leased under a five-year noncancelable operating lease expiring in July 2013. There is an option to renew the lease for two 

successive additional periods of five years each at an increased monthly rental. 
ULTIMATE JETCHARTERS LLC 

NOTES TO INTERIM FINANCIAL STATEMENTS 

6 Months Beginning January 1, 2013 and Ending June 30, 2013 

7

Note 4 – Lease Obligations (Continued) 

In addition, the Company leases aircraft under operating leases expiring in various years through 

December 31, 2013. Certain of these leases contain options to renew the lease for successive one 

year terms. 

The Company may also rent property, equipment, and transportation equipment on an as needed 

basis. 

Minimum future rental payments under the con-cancelable operating lease having a remaining 

term in excess of one year as of January 1, 2013 for each of the next three years and in the 

aggregate are: 

Year Amount 

2013 $ 1,240,481 

2014 0 

2015 0 

Subsequent to Year 2015 0 

Total Minimum Future Rental Payments: $ 1,240,481 

Total rent expense under operating leases for the period January 1, 2013 to June 30, 2013 was 

$385,664. 

Note 5. Related Party Transactions 

The Company leases two aircraft from an entity which is owned by an individual who is also a 

member of the Company. The terms of the leases are comparable to the Company’s other aircraft 

leases and are described in Note 4. 

The Company also had a balance due an individual who is a member of the Company for 

advances made to the company. The advances are unsecured. The balance owed to the individual 

as of June 30, 2013 was $1,390,957. 

Note 6 - Commitments and Contingencies 

The Company had at June 30, 2013, no important unfilled contracts for the purchase of material, 

merchandise, or equipment in excess of normal requirements or at prices substantially in excess 

of market at that date; or for the performance of services at prices that are expected to result in a 

loss upon completion. 

The Company has adopted the guidance for uncertainty in income taxes in FASB ASC 740-10-

65-1. The Company will record a liability for uncertain tax positions when it is probable that a 

loss has been incurred and the amount can be reasonably estimated. The Company continually 

evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and 

new authoritative rulings. 
ULTIMATE JETCHARTERS LLC 

NOTES TO INTERIM FINANCIAL STATEMENTS 

6 Months Beginning January 1, 2013 and Ending June 30, 2013 

8

Note 6 -Commitments and Contingencies (Continued) 

The Company’s evaluation on June 30, 2013 revealed no tax positions that would have a material 

impact on the financial statements. The 2010, 2011, and 2012 tax years remain subject to 

examination by the IRS. In addition, the tax years 2010, 2011, and 2012 remain subject to 

examination by certain states. The Company does not believe that any reasonably possible 

changes will occur within the next twelve months that will have a material impact on the 

financial statements. 

Note 7 - Government Regulation 

Substantially all of the Company’s facilities are subject to federal, state, and local provisions 

regulating the discharge of materials into the environment. Compliance with these provisions 

has not had, nor does the Company expect such compliance to have, any material effect upon the 

capital expenditures, net income, financial condition or competitive position of the Company. 

Management believes that its current practices and procedures for the control and disposition of 

such waste comply with applicable federal and state requirements. 

Note 8 – Subsequent Events 

The Company has evaluated subsequent events through July 30, 2013, the date which the 

financial statements were available to be issued. No events have occurred which would have a 

material effect on the financial statements of the Company as of that date. 

During the month of July 2013, the rental agreement for the hangar building occupied by the 

Company was extended for a new five year term. Furthermore, the revolving line of credit with 

Fifth-Third Bank was renewed during July 2013 for an additional term. 
Exhibit ULTIMATE - 713