Connect Air 

Mr. David Christofano 

DOT/Office oflntemational Aviation 

202-366-0584 

5414 11th Street NE 

Calgary Alberta T2E 7E9 

P: 403-291 -3227 

F: 403-291-3295 

info@connectair.ca 

Jan 30, 2015 

Please find attached with this letter copies of the financial information you requested. 

Connect Air has operated solely in Canadian funds and only generates revenue from 

passenger flights at j is time. 

If you require anythirW further or have a questions please do not hesitate to contact 

us. We are very interested in providing flights to the United States and have had 

client requests to do so as early as this March. 

Best Regards, 

(") 

i .,.../ 

c~~. ,tt~--~-=-=-) __ _ --~·4-rn-~ 

Gord Peariso 
--------------------+-- --. 

CONNECT AIR LTD. 

FINANCIAL STATEMENTS 

(Unaudited -See Notice To Reader) 

DECEMBER 31, 2013 

.. 
Michael Peter Smith 

CHARTERED ACCOUNTANT 

4951 Vantage Crescent N.W. 

Calgary, Alberta · 

T3A IX6 

Telephone (403) 286-5149 

Cellular (403) 540-0355 

Fax (403) 286-5149 

To: The Shareholders of 

CONNECT AI LTD. 

NOTICE TO READER 

On the basis of information provided by management I have compiled the balance sheet 

of Connect Ai~ Ltd as at December 31, 2013 and the statements of income and 

deficit and cash !flows for the year then ended. 

I have not performed an audit or review engagement m respect of these financial 

statements and rcordingly I express no assurance thereon. 

Readers are cautioned that these statements may not be appropriate for their purposes. 

Calgary, Alberta 

July 28,2014 

Michael Peter Smith 

CHARTERED ACCOUNTANT 

.· 
CONNECT AIR L TO. 

BALANCE SHEET AS AT DECEMBER 31,2013 

(Unaudited- See Notice To Reader) 

2013 2012 

ASSETS 

CURRENT ASSETS 

Cash $ 4,015 $ 4,052 

Accounts receivable 69,964 105,472 

GST recoverable 746 

Inventory 68,600 68,600 

Prepaid expenses 14,951 

143,325 $ 193,075 

PROPERTY, PLANT A 

Office furniture and eq 41,907 41,907 

Computer equipment 12,723 12,723 

Computer software 630 630 

55,260 55,260 

Less accumulated amorti 29,634 22,390 

25,626 32,870 

$ 168,951 $ 225,945 

LIABILITIES AND SHAREHOLDERS' EQUITY 

CURRENT LIABILITIES 

Accounts payable and liabilities $ 205,977 $ 223,065 

GST payable I ,322 

Due to shareholders 456,894 4 74,724 

662,871 699, Il l 

SHAREHOLDERS' EQU 

SHARE CAPITAL 101 10 1 

DEFICIT (494,021 ) (473 ,267) 

(493 ,920) (473, 166) 

$ 168,951 $ 225,945 

APPROVED BY: 

Director 

Director 
SALES 

EXPENSES 

Advertising and 

Aircraft charter 

Amortization 

Bank charges and interest 

Crew and comissary 

Fuel 

Insurance 

Landing fees 

Licences 

Miscellaneous 

Office supplies 

Professional fees 

Rent and utilities 

Repairs and maintenance 

Salaries, wages and benefits 

Telephone 

Training 

Travel and entertainment 

CONNECT AIR LTD. 

STATEMENT OF INCOME AND DEFICIT 

FOR THE YEAR ENDED DECEMBER 31, 2013 

(Unaudited - See Notice To Reader) 

NET INCOME (LOSS) FOR THE YEAR 

DEFICIT- Beginning of the year 

DEFICIT- End of the year 

$ 

$ 

2013 2012 

287,472 $ 977,950 

137 

274,370 773,856 

7,244 8,762 

8,811 8,360 

2,235 25,595 

28 9 

2,075 

1,029 

65 382 

4,083 2,299 

370 4,552 

3,800 12,632 

210 

190 2,598 

1,130 

1,035 2,672 

1,092 1,336 

3,902 13, 115 

308,226 860,000 

(20,7 54) 117,950 

(473,2 67) (59 1,2 17) 

(494,02 1) $ (4 73,267) 
CONNECT AIR LTD. 

CASH FLOWS S ATEMENT 

FOR THE YEAR ENDED DECEMBER 31,2013 

(Unaudited- See Nolice To Reader) 

CASH FLOWS FROM OPERATIONS 

Net income (loss) for the ear 

Adjustment for: 

Amortization 

Changes in non-cash work "ng capital 

Accounts receivable 

GST recoverable 

Inventory 

Prepaid expenses and de osits 

GST payable 

Accounts payable . 

Cosh flows pmvided by opf ting adiviti" 

CASH FLOWS FROM INVI STING ACTIVITIES 

Shareholders 

Property, plant and equip ent 

Cash flows pmvided by (user in) investing activities 

Net increase (decrease) in cas 

Cash at the beginning of the year 

Cash at the end of the yea r 

'· 

2013 2012 

$ (20,754) $ 117,950 

7,244 8,762 

(13,5 10) 126,712 

35,508 55,084 

(746) 124 

(42, I 00) 

14,951 ( 13,922) 

( I ,322) I ,322 

( 17,088) ( 126,920) 

31,303 (126,41 2) 

17,793 300 

(17,831) 5,5 16 

(3 ,039) 

(17,831) 2,477 

(38) 2,777 

4,052 I ,275 

$ 4,014 $ 4,052 
- ---- .=___=:._-~--=- --

CONNECT AIR LTD. 

FINANCIAL STATEMENTS 

(Unaudited -See Notice To Reader) 

DECEMBER 31 2012 

'• 

•' 
STATEMENT OF 

STATEMENT OF 

CONNECT 

FINANCIAL 

co 

•' 
4951 Vantage 

Calgary, Alberta 

T3A IX6 

CHARTERED A 

NOTICE TO 

UNTANT 

DER 

Telephone (403) 286-5149 

Cellular (403) 540-0355 

Fax (403) 286-5149 

On the basis · infonnation provided by in '""'"'"'"""' I have compiled the balance sheet 

r Ltd as at December 31, and the statements of income and 

I have not 

that these statements m 

Calgary, 

June 30,2014 

t in respect of these financial 

not be appropriate for their purposes. 

Michael Peter Smith 

CHARTERED ACCOUNTANT 

.. 
------------~~~----~--~-------~ 

CONNECT AIR LTD. 

BALANCE SHEET AS AT dECEMBER 31,2012 

(Unaudited - See Notice! To Reader_) ____ _ 

2012 2011 

ASSETS 

Director ------------------+-----------
SALES 

EXPENSES 

Advertising and promotion 

Aircraft charter 

Aircraft lease 

Airport improvement fees 

Airport security fees 

Amortization 

Bank charges and interest 

Credit card charges 

Crew and comissary 

Fuel 

Ground handling 

Insurance 

Landing fees 

Licences 

Miscellaneous 

Nav Canada fees 

Office supplies 

Professional fees 

Rent and utilities 

Repairs and maintenance 

Salaries, wages and benefits 

Telephone 

Training 

Travel and entertainment 

CONNECT A 

STATEMENT OF 

FOR THE YEAR ENDED u.I!.~LJ1'J 

NET INCOME (LOSS) FOR THE YEAR 

DEFICIT- Beginning of the year 

DEFICIT- End of the year 

~ . ;;..·.··~ .. - -=--- - - -· . ·--- 4 • 

31,2012 

2012 2011 

$ 977,950 $ 1 ' 113, 131 

137 2,399 

773,856 377,221 

114,000 

2,773 

4,735 

8,762 8,007 

8,360 11,062 

7,159 

25,595 30,099 

289 155,428 

2 1,103 

2,075 27,738 

17,960 

382 

2,299 3,860 

37, 184 

4,552 2,398 

12,632 19,179 

210 35,104 

2,598 108,602 

1,130 207,438 

2,672 3,595 

1,336 

13,115 13,250 

860,000 1,210,294 

117,950 (97,163) 

(591,217) (494,054) 

$ (473,267) $ (591 ,2 17) 
CONNECT AIR LTD. 

CASH FLOWS ST 1 TEMENT 

FOR THE YEAR ENDED DECEMBER 31,2012 

(Unaudited- See Notic~ To Reader) 

CASH FLOWS FROM OPERATIONS 

Net income (loss) for the year $ 

Adjustment for: 

Amortization 

Changes in non-cash working capital 

Accounts receivable 

GST recoverable 

Inventory 

Prepaid expenses and deposits 

GSTpayable 

Accounts payable 

Cash flows provided by (used in) operating activities 

CASH FLOWS FROM INVESTING ACTIVITIES 

Shareholders 

Property, plant and equipment 

Cash flows provided by investing activities 

CASH FLOWS FROM FINANCING ACTIVITIES 

Bank loan 

Cash flows provided by financing activities 

Net increase in cash 

Cash at the beginning of the year 

Cash at the end of the year $ 

See accompanying notes 

2012 2011 

117,950 $ (97,163) 

8,762 8,007 

126,712 (89, 156) 

55,084 11 1,79 1 

124 ( 124) 

(42, 100) (26,500) 

(13,922) 37,107 

1,322 (47 1) 

(126,920) (101,233) 

(126,412) 20,570 

300 (68,586) 

5,516 81,319 

(3,039) (21 ,867) 

2,477 59,452 

9,765 

9,765 

2,777 631 

1,275 644 

4,052 $ 1,275 
onnect Air Ltd. 

a lance Sheet As at Dec 31, 2014 

)SET 

~urrent Assets 

Bank of Montreal 

TD Bank 

Scotia bank 

Petty Cash 

TD USD Bank Account 

Scotia Bank 

Total Cash 

Accounts Receivable 

Allowance for Doubtful Accounts 

Payroll Advances 

Total Receivable 

Purchase Prepayments 

Prepaid Expenses 

Inventory 

Inventory 

Deposit C-TWK 

Deposit Rent 

Total Current Assets 

Capital Assets 

Leasehold Improvements 

Computer Equipment 

Accum. Amort. Computer Equip ... 

Computer Software 

Accum. Amort. Computer Softw 

... 

Office Furniture & Equipment 

Accum. Amort. -Furn. & Equip. 

Net- Furniture & Equipment 

Vehicle 

Accum. Amort. -Vehicle 

Net - Vehicle 

Building 

Accum. Amort. -Building 

Net - Building 

Total Capital Assets 

Other Non-Current Assets 

Computer Software 

Goodwill 

Incorporation Cost 

Total other Non-Current Assets 

TOTAL ASSET 

LIABILITY 

Current Liabilities 

Accounts Payable 

Accrued liabilities 

Bank Loan 

- Current Portion 

Bank Advances Visa Payable 

MasterCard Payable 

American Express Payable 

Other Credit Card Payable 

Total Credit Card Payables 

Corporate Taxes payable 

Vacation payable 

Vacation Payable correction 

El Payable 

Printed On: Jan 26, 2015 

0.00 0.00 

0.00 

0.00 

0.00 

15,801.70 0.00 

0.00 0.00 

0.00 

12,723.37 

-8,037.76 

629.97 

-629.97 

41,907.45 

-20,966.50 

0.00 

0.00 

0.00 0.00 

0.00 

0.00 

0.00 0.00 

0.00 

15,801.70 

0.00 

0.00 

0.00 

0.00 

68,600.00 

0.00 0.00 

84,401.70 

25,626.56 0.00 

0.00 

25,626.56 

0.00 0.00 

0.00 

0.00 

110,028.26 

80,783.49 

4,000

.00 

0.00 0.00 

0.00 

0.00 

8,068

.57 

-8,068.57 

Page 1 
Connect Air Ltd. 

B.alance Sheet As at Dec 31, 2014 

CPP Payable 

Federal Income Tax Payable 

Total Receiver General 

WCB Payable 

GST Charged on Sales 

GST Paid on Purchases 

lTC Adjustments 

GST Owing (Refund) 

Prepaid Sales/Deposits 

Total Current Liabilities 

Long Term Liabilities 

Bank Loans Scotiaban k 

Mortgage Payable 

Loans from Owners 

Total Long Term Liabilities 

TOTAL LIABILITY 

EQUITY 

Owners Equity 

Gordon Peariso Shareholders 

Integra Air as per agree AP POt ... 

Mike Peariso Shareholders 

Share Capital 

Retained Earnings- Previous Year 

Current Earnings 

Total Owners Equity 

TOTAL EQUITY 

LIABILITIES AND EQUITY 

Printed On: Jan 26, 2015 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

---8(783:49 

225,891.01 

0.00 

0.00 

225,891.01 

310,674.50 

183,729.43 

50,209.38 

23,110.24 

101 .00 

-494,021 .27 

36,224.98 

-200,646.24 

-200,646.24 

110,028.26 

Page 2 
ConneGt Air Ltd. 

Income Statement Jan 01, 2014 to Dec 31, 2014 

REVENUE 

Sales Revenue 

Sales Schedule 

F

lights 

Sales Charters 

Sales Cou

rier 

Sales Maintenance 

Sales Other 

Net 

Sales 

Other Revenue 

Interest Revenue 

Miscellane

ous Revenue 

Total Other 

Revenue 

TOTAL REVENUE 

EXPENSE 

Cost of Goods Sold 

Fuel 

Landing Fee 

Ground Handling 

Airport Security 

Fee 

Airport Improvement Fee Red 

De ... 

Airport Improvement Fee Calgary Airport Improvement Fee Edmon ... Airport Improvement Fee Fort Me 

Commission 

Travel Agents 

ECMP engine 

Cost cancel flight Sub Charter Expenses for crew 

AOG 

C

harter 

Initial 

Low Utiliz

ati

on 4 

yr Maint 

Nav Canada Fees 

Aircraft 

S

upplies 

Landing gear Maintenance 

rent 

Lic

encing 

Lease Aircraft GTWK 

Parts Saab 340 B Propeller Maintenance 

rent 

H

angar Rent 

Shop Supplies Transwest Pilots expenses 

Tr

aining Saab 

Insurance C-TWK 

Wear and 

Tear may change thi. .. 

M

aintenance 

E

x

p

enses 

N

et 

Purchases 

Comissary 

Total Cost of Goods Sold 

Payroll Expenses 

Wages & Sa

laries 

Contract wage 

El Expense 

CPP Expense 

WCB Expense 

Employee Benefits 

Total Payroll Expense 

General & Administrative Expe 

.

.. 

Accounting & 

Legal 

Print

ed On: Jan 26, 2015 

0.00 0.00 

0.00 

0.00 

206

,445.30 

0.00 0.00 

0.00 

206,445.30 

0.00 0.00 0.00 

206,445.30 0.00 

0.00 0.00 

0.00 

0.00 

0.00 0.00 0.00 

0.00 

0.00 

0.00 

150

,812.45 

0.00 0.00 0.00 0.00 

0.00 0.00 

0.00 0.00 0.00 

0.00 

0.00 

0.00 0.00 

540.7 1 

0.00 

589

.62 

151

,942

.78 

0

.00 

0.00 

0.00 

0.00 

0.00 0.00 

0.00 

3

,168.00 

Page 1 
Connect Air Ltd. 

lricome Statement Jan 01, 2014 to Dec 31, 2014 

Advertising & Promotions 

Bad Debts 

Business Fees & Licenses 

Cash ShorUOver 

Courier & Postage 

Credit Card Charges 

Cleaning 

Consulting Programs Computer 

Amortization Expense 

Income Taxes 

Insurance 

Interest & Bank Charges 

Office Supplies 

Property Taxes 

Motor Vehicle Expenses 

Miscellaneous Expenses 

Realized Exchange Gain/Loss 

Rent 

Repair & Maintenance 

Shop Supplies 

Telephone 

Travel & Entertainment 

Travel & Ent:Non-Reimbursable 

Utilities 

Total General & Admin. Expen ... 

TOTAL EXPENSE 

NET INCOME 

Printed On: Jan 26, 2015 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

730.00 

9,389.82 

870.09 

0.00 

2,133.30 

0.00 

0.00 

0.00 

0.00 

0.00 

227.60 

1,758.73 

0.00 

0.00 

18,277.54 

170,220.32 

36,224.98 

Page 2