LAW OFFICES 

# PIERRE MURPHY SUITE590 1200 NEW HAMPSHIREAVENUE, NW WASHINGTON, D.C. 20036

TELEPHONE: (202) 776-3980 TELECOPIER: (202) 776·3975 

## December 9, 2014
VIA EMAIL (ORIGINAL VIA OVERNIGHT DELIVERY)


## Attn: Lauralyn J. Remo Chief Attn: Barbara Snoden Transportation Industry Analyst Air Carrier Fitness Division, X-56 Office ofAviation Analysis US DepartmentofTransportation 1200 NewJersey Avenue, SE Room W86-307 Washington, DC 20590 E·MAIL: PMURPHY@LOPMURPHY.COM



## Re: Harris Aircraft Services, Inc. [Docket DOT-OST-2014-0145]; Response to InformationRequest DatedNovember 13, 2014
DearMs. Remo & Ms. Snoden:
I respectfullyrefer to your office'sInformation Request dated November 13, 2014 and Applicantresponds as follows to your questions.


## 1. In reference to 

## Exhibit/Tab 

## 7of the application:

a. In the ProfitandLossJanuary through December 2012 statement,page 5, net income is shown as $142,798 on total revenue of$2,454,574 (page 2). However, on the "Income Statement" datedDecember31, 2013, the January through December 2012 column shows net income of$46,233. Please explain the discrepancyandsubmita revisedor correctedversion of the ProfitandLoss statement.
Harris Air's Response:
The December 2012 P&L Statementprovided inExhibit/Tab 7 was printed out on February 19, 2013. However, the comparative 2013 & 2012 P&L Statement also provided in Exhibit/Tab 7 was printed on May 2, 2014 approximately 15 months later.

## The discrepancy youhave identified is accounted for by an adjustment for 2012 P&L figures due to CPA tax adjustments on the owners' personal tax returns. A corrected version of the 2012 P&L Statement is attached hereto atTab 1and a corrected version ofthe December 31, 2012 Balance Sheetis attached hereto at Tab 2.
As a result ofthese adjustments, the following items were changed inthe 2012 P&L figures altering the 2012 Net Income: (i) A Depreciation Expense Was Added for $113,171 [See: Tab 1, page 2]:
This information is received from the CPA aftertaxes are prepared. Atthe time oftheFebruary 19,2013 printed version ofthe 2012 P&L's,this information was not available. (ii) 

## AircraftRepairs & Maintenance Expenses of<$143,872> Were Re-Classified [See: Tab 1, page 2]:
This Aircraft & Repairs Maintenance Expenses amount was re-classifiedto the December 31, 2012 Balance Sheetunderfixed assets, Aircraft Engines. See: Tab 2, page 

## 1.

I. b. On the December 31, 2012 balance sheet, total current assets of$713,766are shown. However, on the multi-year201212013 balance sheetDecember 31, 2012 column (page I of2), total currentassetsfor 2012 are $351,396. Please explain the discrepancy andsubmit a revisedor correctedversion of the balance sheet.

Harris Air's Response:
A revised version ofthe December 31, 2012 Balance Sheetreviewedby Applicant's CPA is submittedhereto atTab 2. This shows a total current assets figure of$455,145.32. The explanation for the discrepancy youhave identified is addressed inthe response to 1(a) above. The discrepancy between the December 31, 2012 Balance Sheettotal current assets amount of$713,766 submitted in Exhibit/Tab 7 and the comparative 2013/2014 Balance Sheet total current assets amount of$315,396 submitted in Exhibit/Tab 7 is accountedfor by a reduction bythe CPA ofthe Total Inventory Asset amount from $375,825.06 to $14,164.00 which was uncharacteristically low, thereby increasingthe Cost-of-Goods-Sold item onthe 2012 P&L from $13,491.41 to $140,080.24. This was corrected on the corrected December 31, 2012 Balance Sheet showing a revisedtotal current assets amount of$455,145.32 [See: Tab 2, page 1] and the revised Cost-of-Goods-Sold amount of$140,080.24 [See: Tab 1, page 2].

## 1. c. Please explain the negativeAPBchecking balance shown on the multi-year 2012/2013 balance sheet as of December31, 2013. Additionally,please explain the negative $42,142forAPCchecking on the multi-year 2013/2014 balance sheetas of May 31, 2014.
Harris Air's Response: 

## Applicant's common practice is to keep low funds in the checking account andtransfer funds from other account(s), as needed. On December 31,2013, checkspayable were printed in the evening (fromthe home office)therebyreducingthe balances inthe checking account inthe computer. The checks were then processed and held until Tuesday, January 2, 2014 when deposits totaling $44,563.25 were posted onJanuary 2, 2014, afterthe New Year's banking holiday.
The same issue happened onMay 31,2014. Checks payable were cuton Saturday, May 31,2014from the home office, followed by transferring $50,000 from the credit cardbank account and a deposit of$31,543.50 was made at the beginning ofthe work week.
Neither ofthese negative balances were anything otherthan a timing issue between working from the home office afternormal business hours and when money was transferred or depositedby the business office duringbusiness hours.



## 1. d. 

## Please explain the "Lawsuit Proceeds of$110,000" under "other current assets" on the May 31, 2014 balance sheet.
Harris Air's Response:


## As stated inthe May 31, 2014 Balance Sheet line item referenced, this $110,000 amountrepresents mediation proceeds due to Harris Air as aresult ofa mediatedbreach-ofcontract claim Harris had against a customer. On June 20,2014, these settlementfunds were received and deposited, and are reflected as income onthe January 1- September 30, 2014 P&L Statement submittedherewith atTab 3, page 1 ("Emergency Flight Services- Chieftain Contract Flights").



## 2. Please submita September 30, 2014 balance sheetand income statementending thatsame date.
Harris Air's Response:


## A September 30, 2014 Balance Sheetis submitted hereto at Tab 4 and a P&L Statement for the period ending September 30, 2014 is submitted atTab 3.

## Also submitted are themostrecentP&L Statements datedNovember 30 (atTabS) and Balance Sheet datedNovember 30(atTab 6). Shouldyouhave any questions orconcernsregarding this matter, please do nothesitate to contactme. 

# I**Re~:ectfulltsubmitted,** 

## /

. 1. ' 1: ----·-**···---'~··-~·-····** 

### . 

## Pierr'eVurphy

·

# Attom~y for

Harris Aircraft Services, Inc.

cc: LauralynJ. Remo (viaemail)

## 18 U.S.C. §1001 Certification



## Pursuant to Title 18 ofthe United States Code Section 1 001, I, 

## R. Laura 

## L. Kronsperger, in my individual capacity and as Vice President 

## & Secretary ofHarris
Aircraft Services, Inc. have not in any manner knowingly and willfully falsified,
concealed orcovered up any material fact or made any false, fictitious, or fraudulent

statement or knowingly used any documents which contain such statements in connection
with the preparation, filing or prosecution ofthis application. I understand that an
individual who is found to have violated the provisions of 18 U.S.C. §1001 shall be fined

not more than $10,000 or imprisoned not more than five years, or both.

# December~. 2014 

# "'\

# on~s~p~er~g~~=-~ Vice President 

## & Secre 

## ry Harris Aircraft Services, Inc.

# Tab 19:53PM 11/24114 Accrual Basis 

## Harris Aircraft Services, Inc. 

# Profit 

# &Loss Januarythrough December 2012

Ordinary Income/Expense Income

Beaver Flight Services

Charters Destinations Flightseeing Seat Fares Standby Total Beaver Flight Services Cessna 185 Flight Services Charters Destinations Flightseeing Seat Fares Standby Total Cessna 185 Flight Services Chieftain Flight Services

Charters Destinations Seat Fares Standby Total Chieftain Flight Services Emergency Flight Services

Beaver Flights Beaver Standby Chieftain Contract Flights Chieftain Excess Flights Total Emergency Flight Services Freight Fees

Animals Excess Baggage Freight HazMat Freight Fees

- Other Total Freight Fees Hangar Storage Maintenance Services Labor Outside Repair Reimbursements Part Sales Shipping Fee Reimbursements Total Maintenance Services Miscellaneous Sales

Clothing Hats Shirts Sweatshirts Total Clothing Fuel Reimbursements

AVGas Kicker Total Fuel Reimbursements Jan· Dec 12



### 81,549.90 207,457.57

10,581.32 149,414.51

4,326.50 453,329.80
70,533.50 133,026.17

8,949.42 126,320.72

8,054.25 346,884.06
15,635.24 89,189.73 753,220.22 330.00 858,375.19
25,830.00

6,692.50 507,000.00

17,595.00 557,117.50
3,000.00 20,166.98 42,245.07 50.00 -67.48 65,394.57 42,240.00 76,500.66

2,743.46 41,312.70

1,393.41

1,971.79

266.24

66.66 121,950.23

2,304.69
2,648.75

-47.24 2,601.51

Page 19:53PM 11124/14 Accrual Basis 

## Harris Aircraft Services, Inc.

PilotTips Received Returned Checks Service Charges Trade Services Vending Commissions Miscellaneous Sales ·Other Total Miscellaneous Sales Rental Equipment Storage Freezer Luggage Parking Total Storage
Total Income Cost ofGoods Sold

Cost ofGoods Sold Freight Outside Repairs Parts Satellite Phone Cost ofGoods Sold • Other Total Cost ofGoods Sold
Total COGS 

# Profit & Loss January through December 2012

Gross Profit Expense

Advertising Aircraft Repair & Maintenance 185 (6590E) Beaver (60TF) Chieftain (200SJ) Chieftain (3590N) Chieftain (38KC) Aircraft Repair & Maintenance • Other Total Aircraft Repair & Maintenance Bank Fees Chargebacks Checking Fees Direct Deposit Fees Loan Fees NSF QB Credit Card Discounts (Intuit CC Discounts) Wires Bank Fees • Other Total Bank Fees Delivery Charges Expedited Shipping Freight Postage Total Delivery Charges Depreciation Expense (ForTAXES only) Donations Dues 

### & Subscriptions Jan. Dec 12 

### 0.00 340.00

17.00 -2,479.50

208.04 2,688.44 5,680.18 1,760.00
933.99

61.36 171.03 1,166.38 2,453,897.91

48.97 3,750.35 5,128.79 1,800.81 129,351.32 140,080.24 140,080.24 2,313,817.67
13,377.49 59,591.25 95,469.56 122,598.98 23,221.86 10.00 -143,872.00 157,019.65

0.00 39.22 531.30 7,555.83

320.30 23,779.16 26.50 180.59 32,432.90
7,036.69 12,074.15 2,740.88 21,851.72 113,171.00

2,923.58 4,634.30

Page29:53PM 11/24/14 Accrual Basis

Equipment Fuel Beaver (60TF) Boat BulkAvGas Cessna 185 (6590E) Chieftain (200SJ) Chieftain (3590N) Chieftain (38KC) Propane Trucks Tugs Total Equipment Fuel Equipment Leases Boat(23' Packman) Chieftain (200SJ) Chieftain (3590N) Total Equipment Leases Equipment Maintenance Boat Bulk Fuel Tank Chrysler Van Cooler Ford Truck Scales Tugs/ATVs 

## Harris Aircraft Services, Inc. 

# Profit 

# &Loss Januarythrough December 2012

Equipment Maintenance

- Other Total Equipment Maintenance Facility Maintenance & Repair KLW Terminal SIT HWH Hangar SIT Metal Shop SIT SEARHC Building Facility Maintenance 

### & Repair- Other Total Facility Maintenance & Repair Flight Expenses Hangar Expenses Insurance

401k Plan Boat General Liability Insurance Property Vehicle Liability Workers Compensation Total Insurance Interest Expense Beaver Cessna 185 Excise Tax Loan-#3174 Ford F250 Internal Revenue Service (Interest paid on Federal Excise Tax Audit) Line ofCredit-#3162 Other Interest Total Interest Expense Memberships & Dues Miscellaneous Non-Taxable Expenses Jan- Dec 12


### 1,396.78

826.37 493,124.00 437.27 3,133.08 2,270.49 3,519.19

385.80 3,321.97 86.28

508,501.23
7,800.00 35,431.80 95,583.03 138,814.83
1,695.18

424.00 2,792.06 1,979.68 3,009.02 2,130.32

296.71 800.00 13,126.97
5,028.87

186.99 1,000.00 1,605.07

216.61 8,037.54 1,687.45 4,560.84
85.00 605.00 113,571.00

1,338.00 2,213.79 41,014.00 158,826.79
12,245.37

804.41 7,009.09

245.91 27,324.04

1,131.63

893.20 49,653.65

2,905.00 1,700.87

400.00

Page39:53PM 11124114 Accrual Basis

Office Supplies General Software & Technology Office Supplies- Other Total Office Supplies Personnel Costs

401(k) Plan Fees Airport ID Drug Testing Housing (Temporary) Moving Expenses Training Various 

## Harris Aircraft Services, Inc. 

# Profit & Loss Januarythrough December 2012

Wellness Center Membership Total Personnel Costs Professional Fees

Accounting Information Technology Legal Total Professional Fees Rent

KLW Terminal Land Lease SIT HWH Hangar SIT Metal Shop Land Lease SIT SEARHC Hangar Total Rent Salaries and Wages Bonuses Mechanic OfficeWages Officer/Mechanic PilotWages Ramp Support Total Salaries and Wages Salaries and Wages 401 k Expense Salary& Wage Payroll Taxes

AK Unemployment Federal Unemployment Medicare Social Security Total Salary & Wage Payroll Taxes Supplies

Aircraft Oil SIT Supplies

- Other Total Supplies Taxes Airplane Property Boat Property General Property Metal Shop Land Property Total Taxes Tools Expense Jan- Dec 12



### 675.60 9,998.08 5,058.68 15,732.36

600.00

75.00 1,636.00 5,300.00 11,151.59

595.00 1,407.55 1,496.35 22,261.49

892.50 525.00 1,323.75 2,741.25
1,639.00 31,875.00

1,652.00 38,400.00 73,566.00
41,150.00 214,884.01 105,468.26 60,000.00 297,683.73

22,160.60 741,346.60

16,314.83 13,292.38 855.27 10,749.51 45,963.49 70,860.65
6,888.50 6,044.54 16,768.55 29,701.59
4,260.00 50.00 21.00 597.00 4,928.00 6,156.47

Page49:53PM 

### 11/24/14 Accrual Basis 

## Harris Aircraft Services, Inc.

Travel Lodging Meals Transportation Total Travel Utilities Electric, Water & Garbage KLW Terminal 

# Profit & 

# Loss January through December 2012

SIT Apartment (319 Seward StAptA) SIT HWH Hangar (365 Airport Rd) SIT Metal Shop (485 Airport Rd) SIT SEARHC Bldg(551 Airport Rd) Total Electric, Water & Garbage Heating Fuel KLW Terminal SIT HWH Hangar (Tank B) SIT Metal Shop (Tank C) SIT SEARHC Building (Tank A) Total Heating Fuel Telephone KLWTerminal SIT Cell Service SIT Long-Distance SITTerminal Total Telephone
Total Utilities
Total Expense
NetOrdinary Income
Net Income Jan· Dec 12


### 1,426.43 1,323.39 4,954.15

848.58 1,691.65 3,367.36

781.45 11,262.66 7,703.97

17,951.70

619.74 2,013.89

577.89 8,287.13 11,498.65

726.78 3,920.71 6,806.70 1,740.63 13,194.82 42,645.17 2,267,584.19 46,233.48 46,233.48

PageS

# Tab29:52PM 11/24114 Accrual Basis

ASSETS 

## Harris Aircraft Services, Inc. 

# Balance Sheet As of December 31,2012

CurrentAssets Checking/Savings Checking QB Credit Card Deposits (Chkg) Total Checking/Savings Accounts Receivable Accounts Receivable Total Accounts Receivable OtherCurrentAssets InventoryAsset Parts InventoryAsset• Other Total InventoryAsset N/R Michael Elwess Prepaid Utility Deposit Undeposited Funds Total Other Current Assets
Total CurrentAssets Fixed Assets 1989 Chevrolet K2500 Truck

Accumulated Depreciation 1989 Chevrolet K2500 Truck- Other Total1989 Chevrolet K2500 Truck 1990 17' BostonWhaler+Trailer

Accumulated Depreciation 1990 17' Boston Whaler+Trailer

- Other Total1990 17' Boston Whaler+Trailer 1995 GMC Pickup

Accumulated Depreciation 1995 GMC Pickup· Other Total1995 GMC Pickup 2001 ChryslerVan 2009 Ford F250 Accumulated Depreciation 2009 Ford F250- Other Total 2009 Ford F250 Accumulated Depreciation Aeronca Sedan 15AC (N1272H) Accumulated Depreciation Aeronca Sedan 15AC (N1272H)

- Other Total Aeronca Sedan 15AC (N1272H) Aircraft Engines AircraftTug Accumulated Depreciation AircraftTug

- Other Total AircraftTug Cessna 185, Amphib (N6590E) Accumulated Depreciation Cessna 185, Amphib (N6590E)- Other Total Cessna 185, Amphib (N6590E) Dec 31, 12



### 49,084.13 228,085.90 277,170.03



### 46,409.91 46,409.91

141,876.75 -23,964.01 117,912.74

4,750.00

300.00 8,602.64 131,565.38 455,145.32

-15,778.00 15,778.00

-13,127.00 13,127.00

-16,900.00 16,900.00 0.00

0.00

0.00 6,000.00 -25,320.00 42,199.45 16,879.45 -183,902.00 -2,500.00 2,500.00 0.00 143,872.00 -8,969.52 14,314.52 5,345.00
-197,375.00 197,375.00 0.00

Page 19:52PM 11/24/14 Accrual Basis 

## Harris Aircraft Services, Inc. 

# Balance Sheet As of December 31, 2012

DeHavilland BeaverAmphib N60TF

Accumulated Depreciation DeHavilland BeaverAmphib N60TF ·Other Total DeHavilland BeaverAmphib N60TF FlightAssets

Accumulated Depreciation Cooler Honda 9.9hp kicker FlightAssets • Other Total FlightAssets HangarAssets

Accumulated Depreciation Cabinets Compressor Crown Stacker Scales Scissor Lift Work Platform HangarAssets • Other Total HangarAssets Metal ShopAssets Accumulated Depreciation Metal Shop Assets • Other Total Metal Shop Assets Office Equipment Accumulated Depreciation Office Equipment·Other Total Office Equipment Prince ofWales Island Terminal (Portable cabin) Total Fixed Assets TOTAL ASSETS LIABILITIES & EQUITY Liabilities

Current Liabilities Accounts Payable

Accounts Payable Total Accounts Payable Credit Cards Gold VISA (#4225-Supplies) Total CreditCards OtherCurrent Liabilities Direct Deposit Liabilities Federal ExciseTax Payable

Transportation Tax (7.5%) Total Federal Excise Tax Payable Payroll Liabilities

AK Unemployment Compensation FUTA Liability Total Payroll Liabilities Security Deposits Payable Sitka Sales Tax Payable Total Other Current Liabilities Total Current Liabilities Dec 31,12


### -549,833.34 549,833.34

-19,579.31 15,762.20 2,855.00 17,423.31 0.00

16,461.20
-16,891.72

4,241.48 11,884.00 3,060.00 11,588.75 8,150.00 4,418.00 4,639.00 31,089.51
-50,000.00 50,000.00

-19,685.19 30,235.11 0.00

10,549.92 40,612.60 86,907.68 542,053.00



### 48,047.08 48,047.08
15,428.27 15,428.27
35,651.61 10,728.42 10,728.42
1,824.29

149.62 1,973.91

900.00 804.84 50,058.78 113,534.13 Page29:52PM 11/24114 Accrual Basis 

## Harris Aircraft Services, Inc.

Long Term Liabilities

AK Pacific Bank 

# Balance Sheet As of December 31, 2012

Dehavilland Beaver (Loan #2665. Term 1117) IRS Loan #3174 (Loan for IRS Excise Tax Audit) Line ofCredit·#3162 Total AK Pacific Bank Ford MotorCredit

2009 Ford F250 Super Duty Total Ford MotorCredit
Total Long Term Liabilities
Total Liabilities Equity Paid in Capital Retained Earnings Net Income Total Equity
TOTAL LIABILITIES & EQUITY Dec 31,12



### 194,126.42 250,263.21

35,131.63 479,521.26
3,260.98 3,260.98 482,782.24 596,316.37
194,330.10 -294,826.95

46,233.48 -54,263.37 542,053.00

Page3

# Tab33:35PM 11123114 Accrual Basis 

## Harris Aircraft Services, Inc.

Ordinary lncomeiExpense Income 

# Profit 

# &Loss January through September2014

Beaver Flight Services

Charters Destinations Flightseeing Seat Fares Seat Fares (SEARHC) Standby Total Beaver Flight Services Cessna 185 Flight Services Charters Destinations Flightseeing Seat Fares Seat Fares (SEARHC) Standby Total Cessna 185 Flight Services Chieftain Flight Services Charters Destinations Seat Fares Seat Fares (SEARHC) Standby Total Chieftain Flight Services Emergency Flight Services Beaver Standby Chieftain Contract Flights Reconfiguration Fee Total Emergency Flight Services Freight Fees

Animals Excess Baggage Freight Total Freight Fees Hangar Storage Maintenance Services Labor Outside Repair Reimbursements Part Sales Shipping Fee Reimbursements Shop Supplies Total Maintenance Services Miscellaneous Sales

Cancellation Fee Clothing Hats Shirts Sweatshirts Total Clothing Fuel Reimbursements

AVGas Diesel Fuel Handling Kicker Total Fuel Reimbursements Jan- Sep 14



### 109,932.45 160,608.78 23,974.55 131,878.43 30.711.91 4,423.25 461,529.37
106,384.40 111,675.74 13,943.37 83,174.54 22,400.12

5,134.25 342,712.42
43,051.16 75,469.99 624,241.61 298,235.38 634.88 1,041,633.02

726.00 110,000.00 400.00

111,126.00
2,500.00 29,930.51 57,231.22 89,661.73 29,258.35 65,625.02 250.00 52,219.22

1,198.58

467.22

855.19 811.38 438.85 119,760.04

75.00

2,105.42
2,102.94 20.00 -176.39

80.00 2,026.55

Page 13:35PM 11/23/14 Accrual Basis 

## Harris Aircraft Services, Inc.

GiftCertificates Interest Income 

# Profit & Loss January through September 2014

Invoice Reimbursements PilotTips Received Returned Checks Vending Commissions Miscellaneous Sales -Other Total Miscellaneous Sales Rental Equipment Storage Cooler Freezer Parking Total Storage
Total Income CostofGoods Sold Cost ofGoods Sold Clothing Freight Outside Repairs Satellite Phone Total Cost ofGoods Sold
Total COGS
Gross Profit Expense

Advertising JNU PSG SIT WRG Total Advertising Aircraft Repair & Maintenance 185 (6590E) Beaver (60TF) Chieftain (200SJ) Chieftain (38KC) Total Aircraft Repair & Maintenance Bad Debt Bank Fees

Avalon CreditCard Discounts Checking Fees Direct Deposit Fees Loan Fees NSF QB Credit Card Discounts (Intuit CC Discounts) Wires Total Bank Fees Cash <Over>/Short Delivery Charges Expedited Shipping Freight Postage Total Delivery Charges Donations Dues & Subscriptions Jan- Sep 14 

### 980.00

23.83 4,833.96 20.00 -460.00 194.34

0.00

9,799.10 2,190.00
85.72 458.54 332.63876.89 2,208,546.92

3,623.08 82.60 4,500.00

579.99 8,785.67 8,785.67 2,199,761.25

455.38 1,057.35 6,449.59

741.51 8,703.83
26,973.62 16,190.17 34,276.05 163,798.40 241,238.24 800.40
7.00 78.15 456.70 1,769.50

251.50 33,175.29 53.00

35,791.14 -8.34 7,794.36 1,599.61 2,487.09 11,881.06

1,181.68 1,204.50 Page23:35PM 11/23/14 Accrual Basis 

## Harris Aircraft Services, Inc. 

# Profit & Loss January through September 2014

Equipment Fuel Beaver (60TF) Boat BulkAvGas Chieftain (38KC) Propane Trucks Tugs Total Equipment Fuel Equipment Leases Boat (23' Packman) Chieftain (200SJ) Chieftain (38KC) Total Equipment Leases Equipment Maintenance Boat Bulk Fuel Tank Chrysler Van Ford Truck Freezer Total Equipment Maintenance Equipment Rentals Facility Maintenance & Repair

KLW Terminal SIT HWH Hangar SIT Metal Shop SIT SEARHC Building Total Facility Maintenance & Repair Flight Expenses

General Subscriptions Takeflite Total Flight Expenses Gifts Hangar Expenses Insurance

401k Plan General Liability Insurance Vehicle Liability Workers Compensation Total Insurance Interest Expense

·Beaver Excise Tax Loan-#3174 Line ofCredlt-#3162 Other Interest Total Interest Expense Licenses and Permits Memberships & Dues Miscellaneous Office Supplies 

## KAE KLW PSG SIT Total Office Supplies Jan- Sep 14



### 108.10 239.91 468,924.48

2,106.17

361.27 2,991.97 72.30

474,804.20
5,850.00 33,750.00 33,750.00 73,350.00

881.31 1,735.35

903.78 400.00 116.60 4,037.04 94.14
121.99 645.77 

### 2,251.69 3,533.94 6,553.39
3,644.85 1,711.56 4,839.67 10,196.08 96.75 1,170.00
85.00 61,555.50

2,202.63 35,650.05 99,493.18
5,434.07 8,796.30 1'197.54 2,687.41 18,115.32

725.00 2,899.00

914.28
81.42 32.65 1,149.98 4,574.57 5,838.62

Page33:35PM 11/23/14 Accrual Basis

Personnel Costs 

## Harris Aircraft Services, Inc. 

# Profit 

# &Loss January through September 2014

401(k) Plan Fees AirportiD Drug Testing Housing (Temporary) Travel Various Wellness Center Membership Total Personnel Costs Professional Fees

Accounting Legal Total Professional Fees Purchased Transportation 

## KAE Total Purchased Transportation Rent

JNU Airport Lease PSG Airport Lease SIT HWH Hangar SIT Metal Shop Land Lease SIT SEARHC Hangar Total Rent Salaries and Wages Bonuses Flight Coordinators Hangar/Maintenance Assistant Mechanic OfficeWages Officer/Mechanic PilotWages Ramp Support Vacation Pay Total Salaries and Wages Salaries and Wages 401 k Expense Salary & Wage Payroll Taxes AK Unemployment Federal Unemployment Medicare Social Security Total Salary & Wage Payroll Taxes Supplies

AircraftOil 

## KAE SIT Total Supplies Taxes

Airplane Property JNU Terminal Property Total Taxes Jan· Sep 14



### 600.00 512.15 1,462.30 4.654.18

673.70 1,919.25 2,345.79 12,167.37
1,590.00 49,038.23 50,628.23

380.00

4.474.53 5,750.00 24,075.00

3,673.04 28,800.00380.00

66,772.57

0.00 35,684.13

1,701.38 172,968.64 122,762.92 45,000.00 236,614.46

17,246.06 12,189.51 644,167.10

9,904.78 11,881.81

1,092.72 9,301.55 39,772.19 62,048.27
8,490.95

460.14 10.437.64 19,388.73
3,182.70

154.94 3,337.64

Page43:35PM 11/23/14 Accrual Basis

Technology 

## Harris Aircraft Services, Inc. 

# Profit 

# &Loss Januarythrough September 2014

Domain Hosting NetworkAdministration Software Supplies Website Technology· Other Total Technology Tools Expense Travel Lodging Transportation Total Travel Utilities Electric, Water & Garbage KLW Terminal PSG Terminal· SIT HWH Hangar (365 Airport Rd) SIT Metal Shop (485 Airport Rd) SIT SEARHC Bldg(551 Airport Rd) Total Electric, Water & Garbage Heating Fuel

SIT HWH Hangar (Tank B) SIT Metal Shop (Tank C) SIT SEARHC Building (Tank A) Total Heating Fuel Internet Communications KLW Terminal SIT SEARHC Building Total InternetCommunications Telephone JNU Terminal KLW Terminal PSG Terminal SIT Cell Service SIT Terminal WRG Terminal Total Telephone
Total Utilities
Total Expense
Net Ordinary Income
Net Income Jan. Sep 14



### 438.11 7,893.26 2,577.86 3,061.77 1,590.00 2,779.88 18,340.88 91.95
416.25 2,203.39

1,057.16

989.20 3,530.30 1,155.66 9,851.31 2,619.64

16,583.63
1,254.98

920.23 3,631.25 5,806.46
1,062.84 9,281.01 10,343.85

840.22 505.62 534.69 4,019.91 2,411.77

526.72 8,838.93 41,572.87 1,930,499.54

269,261.71 269,261.71

PageS

# Tab43:35PM 11/23/14 Accrual Basis

ASSETS 

## Harris Aircraft Services, Inc. 

# Balance Sheet As of September30, 2014

CurrentAssets Checking/Savings Checking QB CreditCard Deposits (Chkg) TF Credit Card Deposits (Svgs) Total Checking/Savings Accounts Receivable Accounts Receivable Total Accounts Receivable Other CurrentAssets InventoryAsset Parts InventoryAsset

- Other Total InventoryAsset N/R Michael Elwess Prepaid Utility Deposit Undeposited Funds Total OtherCurrentAssets
Total CurrentAssets Fixed Assets 1989 Chevrolet K2500 Truck

Accumulated Depreciation 1989 Chevrolet K2500 Truck· Other Total1989 Chevrolet K2500 Truck 1990 17' Boston Whaler+Trailer

Accumulated Depreciation 1990 17' Boston Whaler+Trailer- Other Total1990 17' Boston Whaler+Trailer 1995 GMC Pickup

Accumulated Depreciation 1995 GMC Pickup- Other Total1995 GMC Pickup 2001 ChryslerVan 2009 Ford F250 Accumulated Depreciation 2009 Ford F250 • Other Total 2009 Ford F250 Accumulatep Depreciation Aeronca Sedan 15AC (N1272H) Accumulated Depreciation Aeronca Sedan 15AC (N1272H)- Other Total Aeronca Sedan 15AC (N1272H) Aircraft Engines AircraftTug Accumulated Depreciation AircraftTug -Other Total AircraftTug Cessna 185, Amphib (N6590E)

Accumulated Depreciation Cessna 185, Amphib (N6590E)

- Other Total Cessna 185, Amphib (N6590E) Sep 30,14



### -14,654.47 24,509.23 277,410.16 287,264.92
155,783.73 155,783.73

815,770.00 -437,689.87 378,080.13 -982.00 300.00 1,463.95 378,862.08 821,910.73

-15,778.00 15,778.00

-13,127.00 13,127.00

-16,900.00 16,900.00 0.00

0.00

0.00 6,000.00 -25,320.00 42,199.45 16,879.45 -183,902.00 -2,500.00 2,500.00 0.00 143,872.00 -8,969.52 14,314.52 5,345.00
-197,375.00 197,375.00 0.00

Page 13:35PM 11/23/14 Accrual Basis 

## Harris Aircraft Services, Inc. 

# Balance Sheet As ofSeptember30, 2014

DeHavilland Beaver Amphib N60TF

Accumulated Depreciation DeHavilland BeaverAmphib N60TF -Other Total DeHavilland BeaverAmphib N60TF FlightAssets

Accumulated Depreciation Cooler Honda 9.9hp kicker FlightAssets -Other Total FlightAssets HangarAssets

Accumulated Depreciation Cabinets Compressor Crown Stacker Scales Scissor Lift Work Platform Hangar Assets

- Other Total HangarAssets Metal ShopAssets

Accumulated Depreciation Metal ShopAssets

- Other Total Metal ShopAssets Metal Shop Building Office Equipment

Accumulated Depreciation Office Equipment- Other Total Office Equipment Prince ofWales Island Terminal (Portable cabin) Total Fixed Assets
TOTAL. ASSETS L.IABIL.ITIES & EQUITY

Liabilities Current Liabilities

Accounts Payable

Accounts Payable Total Accounts Payable Credit Cards Business VISA (#1107-Parts) Gold VISA (#4225--Supplies) Total Credit Cards Other Current Liabilities Federal Excise Tax Payable

Transportation Tax (7.5%) Total Federal Excise Tax Payable Payroll Liabilities

401(k) Deferrals AK Unemployment Compensation Federal Withholding Liability FICAISS FUTAL.iability Medicare Total Payroll Liabilities Sep 30,14


### -549,833.34 549,833.34

-19,579.31 15,762.20 2,855.00 18,425.01 0.00

17,462.90
-16,891.72

4,241.48 11,884.00 3,060.00 11,588.75 8,150.00 4,418.00 4,639.00 31,089.51
-50,000.00 50,000.00 0.00 53,000.00 -19,685.19 60,811.41 41,126.22 40,612.60 171,485.68 993,396.41



### 121,041.15 121,041.15

2,167.61 12,824.67 14,992.28

1,051.87 1,051.87

0.50 4,542.97

-518.01 -209.02 144.18 -48.92 3,911.70
Page 23:35PM 11/23/14 Accrual Basis 

## Harris Aircraft Services, Inc. 

# Balance Sheet As ofSeptember 30, 2014

Security Deposits Payable Sitka Sales Tax Payable Total Other Current Liabilities
Total Current Liabilities Long Term Liabilities

AK Pacific Bank Dehavilland Beaver (Loan #2665- Term 1/17) IRS Loan #3174 (Loan for IRS Excise Tax Audit) Line ofCredit

- #3162 Total AK Pacific Bank K.Meyers Note Total Long Term Liabilities
Total Liabilities· Equity

Common Dividends Paid Paid in Capital Retained Earnings Net Income Total Equity TOTAL LIABILITIES & EQUITY Sep 30,14

### 900.00 2,887.86 8,751.43 144,784.86

114,017.87 212,610.10

20,038.33 346,666.30

53,000.00 399,666.30 544,451.16
-10,000.00 349,630.10 -159,700.56 269,261.71 449,191.25 993,642.41

Page3

# TabS2:15PM 12/08/14 Accrual Basis

Ordinary Income/Expense Income 

## Harris Aircraft Services, Inc. 

# Profit & Loss January through November 2014

Beaver Flight Services Charters Destinations Fllghtseeing Seat Fares Seat Fares (SEARHC) Standby Total Beaver Flight Services Cessna 185 Flight Services Charters Destinations Flightseeing Seat Fares Seat Fares (SEARHC) Standby Total Cessna 185 Flight Services Chieftain Flight Services Charters Destinations Seat Fares Seat Fares (SEARHC) Standby Total Chieftain Flight Services Emergency Flight Services Beaver Standby Chieftain Contract Flights Reconfiguratlon Fee Total Emergency FlightServices Freight Fees

Animals Excess Baggage Freight Freight Fees • Other Total Freight Fees HangarStorage Maintenance Services Labor Outside Repair Reimbursements Part Sales Shipping Fee Reimbursements Shop Supplies Total Maintenance Services Miscellaneous Sales Cancellation Fee Clothing Hats Shirts Sweatshirts Total Clothing Fuel Reimbursements

AVGas Diesel Fuel Handling Kicker Propane Total Fuel Reimbursements Jan- Nov 14



### 121,005.95 177,808.43 24,281.15 177,415.29 38,544.43 4,707.50 543,762.75
109,650.40 125,505.05

13,943.37 86,929.08 23,135.00

5,261.75 364,424.65
43,051.16 105,237.38 788,903.79 360,774.41 634.88

1,298,601.62
1,071.00 110,000.00 800.00 111,871.00
3,250.00 36,574.26 68,828.26 -2,124.45 106,528.07 35,508.35 73,904.12 250.00 53,314.40

1,198.58

491.93

911.80 830.25 438.85 129,159.03

75.00

2,180.90
2,811.44 86.00 -176.39

80.00 18.95 2,820.00 Page 12:15PM 12/08/14 Accrual Basis 

## Harris Aircraft Services, Inc.

Gift Certificates Interest Income 

# Profit & Loss January through November2014

Invoice Reimbursements PilotTips Received Returned Checks Vending Commissions Miscellaneous Sales

- Other Total Miscellaneous Sales Rental Equipment Storage Cooler Freezer Parking Total Storage
Total Income CostofGoods Sold Cost ofGoods Sold Clothing Freight Outside Repairs Satellite Phone CostofGoods Sold

- Other Total Cost of Goods Sold
Total COGS
Gross Profit Expense

Advertising JNU PSG SIT WRG Total Advertising Aircraft Repair & Maintenance 185 (6590E) Beaver (60TF) Chieftain (200SJ) Chieftain (38KC) Total Aircraft Repair & Maintenance Bad Debt Bank Fees

Avalon Credit Card Discounts Checking Fees Direct Deposit Fees Loan Fees NSF QB Credit Card Discounts (Intuit CC Discounts) Wires Total Bank Fees Cash <Over>/Short Delivery Charges Expedited Shipping Freight Postage Total Delivery Charges Donations Dues & Subscriptions Jan- Nov 14 

### 980.00

23.83 13.433.96 0.00 -460.00 283.91 7,318.05 26,655.65

2,190.00
85.72 496.28 418.35 1,000.35 2,619,701.47

3,623.08

214.26 13,175.00

1,037.83

69.99 18,120.16 18,120.16 2,601 ,581.31

455.38 1,076.43 11,419.76

741.51 13,693.08

27.790.65 13,298.17 37,319.15 166,514.38 244.922.35 800.40
116.00 78.15 555.90 1,769.50

251.50 37,865.04 53.00

40,689.09 -8.86 8,064.52 1.599.61 2,759.32 12.423.45

1.231.68 4,707.14 Page22:15PM 12/08114 Accrual Basis 

## Harris Aircraft Services, Inc.

Equipment Fuel Beaver (60TF) Boat BulkAvGas Chieftain (38KC) Propane Trucks Tugs 

# Profit 

# &Loss January through November2014

Total Equipment Fuel Equipment Leases Boat (23' Packman) Chieftain (200SJ) Chieftain (38KC) Total Equipment Leases Equipment Maintenance Boat Bulk Fuel Tank ChryslerVan Ford Truck Freezer Total Equipment Maintenance Equipment Rentals Facility Maintenance & Repair KLW Terminal SIT HWH Hangar SIT Metal Shop SIT SEARHC Building Total Facility Maintenance & Repair FlightExpenses General Subscriptions Takeflite Total Flight Expenses Gifts Hangar Expenses Insurance

401k Plan General Liability Insurance Vehicle Liability Workers Compensation Total Insurance Interest Expense Beaver Excise Tax Loan-#3174 Line ofCredit-#3162 Other Interest Interest Expense •Other Total Interest Expense Licenses and Permits Memberships & Dues Miscellaneous Office Supplies 

## KAE KLW PSG SIT Total Office Supplies Jan. Nov 14



### 108.10 1,234.19 573,100.74

3,652.71

361.27 3,423.21 72.30

581,952.52
7,150.00 41,250.00 41,250.00 89,650.00
1,324.51 1,984.35

903.78 639.23 116.60 4,968.47 94.14
121.99 645.77 2,251.69 4,084.94 7,104.39
3,644.85 3,680.59 6,479.78 13,805.22 96.75 1,170.00
85.00 79,131.62

2,202.63 28,894.05 110,313.30
6,477.31 10,592.37

1,090.77 3,320.40 4.65

21,485.50 725.00 5,299.00

947.17
81.42 32.65 1'149.98 5,774.66 7,038.71
Page 32:15PM 12/08/14 Accrual Basis 

## Harris Aircraft Services, Inc.

Personnel Costs

401(k) Plan Fees Airport ID 

# Profit 

# &Loss January through November 2014

Drug Testing Housing (Temporary) Travel Various Wellness Center Membership Total Personnel Costs Professional Fees

Accounting Legal Total Professional Fees Purchased Transportation 

### KAE Total Purchased Transportation Rent

JNU Airport Lease PSG Airport Lease SIT HWH Hangar SIT Metal Shop Land Lease SIT SEARHC Hangar Total Rent Salaries and Wages Bonuses Flight Coordinators Hangar/Maintenance Assistant Mechanic OfficeWages Officer/Mechanic PilotWages Ramp Support Vacation Pay Total Salaries and Wages Salaries and Wages 401 k Expense Salary &Wage Payroll Taxes AK Unemployment Federal Unemployment Medicare Social Security Total Salary & Wage Payroll Taxes Supplies

Aircraft Oil 

## KAE SIT Total Supplies Taxes Airplane Property Boat Property JNU Terminal Property Metal Shop Land Property Total Taxes Jan- Nov 14



### 600.00 562.15 1,647.30 5,492.23

673.70 2,344.36 2,345.79 13,665.53
1,590.00 52,581.67 54,171.67

530.00

4,474.53 6,325.00 29,425.00

3,673.04 36,280.00530.00

80,177.57

0.00 54,159.21

1,701.38 208,681.98 137,863.01 55,000.00 295,651.48

17,449.19 14,590.79 785,097.04

12,544.84 13,059.73

1,148.74 11,345.06 48,509.88 74,063.41
9,676.75

460.14 11,788.15 21,925.04
6,079.80 55.50 154.94 662.67 6,952.91

Page42:15PM 12/08/14 Accrual Basis 

## Harris Aircraft Services, Inc. 

# Profit & Loss Januarythrough November 2014

Technology Domain Hosting NetworkAdministration Software Supplies Website Technology• Other Total Technology Tools Expense Travel Lodging Transportation Total Travel Utilities Electric, Water & Garbage KLW Terminal PSG Terminal SIT HWH Hangar (365 Airport Rd) SIT Metal Shop (485 Airport Rd) SIT SEARHC Bldg(551 Airport Rd) Total Electric, Water & Garbage Heating Fuel KLW Terminal SIT HWH Hangar (Tank B) SIT Metal Shop (Tank C) SIT SEARHC Building (TankA) Total Heating Fuel Internet Communications KLW Terminal SIT SEARHC Building Total Internet Communications Telephone

JNU Terminal KLW Terminal PSG Terminal SIT Cell Service SITTerminal WRG Terminal Total Telephone
Total Utilities
Total Expense
Net Ordinary Income
Net Income Jan· Nov 14



### 690.08 7,893.26 3,161.92 3,526.77 1,590.00 4,967.46 21,829.49 91.95
416.25 2,203.39

1,286.32 1,069.03 3,855.10 1,406.68 10,885.19 2,619.64

18,502.32

139.28 1,254.98

920.23 4,303.40 6,617.89
1,262.82 10,957.31 12,220.13

899.81 548.39 702.39 4,616.30 3,379.03

581.34 10,727.26 48,067.60 2,284,845.19

316,736.12 316,736.12

Page 5

# Tab62:13PM 12108/14 Accrual Basis

ASSETS 

## Harris Aircraft Services, Inc. 

# Balance Sheet As of November 30, 2014

CurrentAssets

Checking/Savings Checking QB Credit Card Deposits (Chkg) TF Credit Card Deposits (Svgs) Total Checking/Savings Accounts Receivable Accounts Receivable Total Accounts Receivable Other CurrentAssets InventoryAsset Parts InventoryAsset

- Other Total InventoryAsset N/R Michael Elwess Prepaid Utility Deposit Undeposited Funds Total Other CurrentAssets
Total CurrentAssets Fixed Assets

1989 Chevroiet K2500 Truck

Accumulated Depreciation 1989 Chevrolet K2500 Truck· Other Total1989 Chevrolet K2500 Truck 1990 17' Boston Whaler+Trailer

Accumulated Depreciation 1990 17' Boston Whaler+Trailer.Other Total1990 17' Boston Whaler+Trailer 1995 GMC Pickup

Accumulated Depreciation 1995 GMC Pickup· Other Total1995 GMC Pickup 2001 Chrysler Van 2009 Ford F250

Accumulated Depreciation 2009 Ford F250 • Other Total 2009 Ford F250 Accumulated Depreciation Aeronca Sedan 15AC (N1272H) Accumulated Depreciation Aeronca Sedan 15AC (N1272H)- Other TotalAeronca Sedan 15AC (N1272H) Aircraft Engines AircraftTug Accumulated Depreciation Aircraft Tug

- Other Total Aircraft Tug Cessna 185, Amphib (N6590E)

Accumulated Depreciation Cessna 185, Amphib (N6590E). Other Total Cessna 185, Amphib (N6590E) Nov 30,14



### 55,182.82 45,418.06 202,412.24 303,013.12
156,074.58 156,074.58

857,261.44 -451,966.07 405,295.37

-1,402.00

300.00 27,455.50 431,648.87 890,736.57

-15,778.00 15,778.00

-13,127.00 13,127.00

-16,900.00 16,900.00 0.00

0.00

0.00 6,000.00 -25,320.00 42,199.45 16,879.45 -183,902.00 -2,500.00 2,500.00 0.00 143,872.00 -8,969.52 14,314.52 5,345.00
-197,375.00 197,375.00 0.00

Page 12:13PM 12/08/14 Accrual Basis 

## Harris Aircraft Services, Inc. 

# Balance Sheet As of November 30, 2014

DeHavilland Beaver Arnphib N60TF

Accumulated Depreciation DeHavilland BeaverArnphib NSOTF ·Other Total DeHavilland BeaverArnphib NSOTF FlightAssets

Accumulated Depreciation Cooler Honda 9.9hp kicker FlightAssets • Other Total FlightAssets Hangar Assets

Accumulated Depreciation Cabinets Compressor Crown Stacker Scales Scissor Lift Work Platform Hangar Assets • Other Total Hangar Assets Metal ShopAssets

Accumulated Depreciation Metal ShopAssets • Other Total Metal Shop Assets Metal Shop Building Office Equipment

Accumulated Depreciation Office Equipment • Other Total Office Equipment Prince ofWales Island Terminal (Portable cabin) Total Fixed Assets TOTAL ASSETS LIABILITIES & EQUITY

Liabilities

Current Liabilities

Accounts Payable Accounts Payable Total Accounts Payable Credit Cards BusinessVISA (#1107--Parts) Gold VISA (#4225-Supplles) Total Credit Cards Other Current Liabilities Federal Excise Tax Payable

Transportation Tax (7.5%) Total Federal ExciseTax Payable Payroll Liabilities

401 (k) Deferrals AK Unemployment Compensation Federal Withholding Liability FICAISS FUTA Liability Medicare Total Payroll Liabilities Nov 30,14


### -549,833.34 549,833.34

-19,579.31 15,762.20 2,855.00 18,425.01 0.00

17,462.90
-16,891.72

4,241.48 11,884.00 3.060.00 11,588.75 8,150.00 4,418.00 4,639.00 31,089.51

-50.000.00 50,000.00 0.00 53,000.00 -19,685.19 61,261.87 41,576.68 40,612.60 171,936.14
1,062,672.71



### 162,889.86 162,889.86

1,722.35 9,677.19 11,399.54

4.496.47 4,496.47

0.50 1,448.89 -518.01 -209.02

56.02 -48.92 729.46
Page22:13PM 12108/14 Accrual Basis 

## Harris Aircraft Services, Inc. 

# Balance Sheet As of November30, 2014

Security Deposits Payable Sitka Sales Tax Payable Total Other Current liabilities
Total Current liabilities longTerm liabilities

AK Pacific Bank Dehavilland Beaver (loan #2665 ·Term 1/17) IRS loan#3174 (loan for IRS Excise Tax Audit) Line ofCredit· #3162 Total AK Pacific Bank K.Meyers Note Total Long Term liabilities
Total Liabilities Equity

Common Dividends Paid Paid in Capital Retained Earnings Net Income Total Equity TOTAL LIABIUTIES & EQUITY Nov 30,14 

### 900.00 767.26 6,893.19
181.182.59

106,074.85 208,833.19

18,931.56 333,839.60 51,035.86 384,875.46 566,058.05
-10,000.00 349,630.10 -159,700.56 316,736.12 496,665.66 1,062,723.71

Page3