**Exhibit 99.1**








**CONSOLIDATED
      FINANCIAL STATEMENTS OF SJJC AVIATION SERVICES, LLC AND
      SUBSIDIARIES**




**Contents**





**Consolidated
                Financial Statements**Consolidated
                statements of income
            1Consolidated
                balance sheet
            2-3Consolidated
                statements of cash flows
            4Notes
                to consolidated financial statements
            5-12







**SJJC
                  Aviation Services, LLC****and
                  Subsidiaries****Consolidated
                  Statements of Income**




Six-Month
                    Period EndedJune
                    30, 2007
                
                June
                    30, 2006(Unaudited)
                
                (Unaudited)Revenue
                    (Note 9):Fuel
                    sales
                
                $
                17,259,550
                
                $
                18,662,749Aircraft
                    charter
                
                
                7,398,127
                
                
                7,559,533Aircraft
                    maintenance and cleaning
                
                
                7,233,908
                
                
                2,236,250Aircraft
                    management
                
                
                746,600
                
                
                681,200Airline
                    service
                
                
                1,280,464
                
                
                1,336,766Hangar
                    rental and ramp fees
                
                
                4,165,146
                
                
                3,611,019Office
                    rental
                
                
                770,657
                
                
                783,846Other
                
                
                448,237
                
                
                307,82039,302,689
                
                
                35,179,183Cost
                    of goods sold (Notes 2 and 10)
                
                
                24,158,762
                
                
                20,808,661**Gross
                    profit**
                
                
                15,143,927
                
                
                14,370,522Operating
                    expenses:Salaries
                    and employee benefits
                
                
                5,460,367
                
                
                5,356,611Administrative
                    expenses
                
                
                1,795,112
                
                
                1,602,704Depreciation
                    and amortization
                
                
                1,038,513
                
                
                914,705Rent
                    and property tax expense
                
                
                1,214,804
                
                
                1,157,555Occupancy
                    expenses
                
                
                622,518
                
                
                741,614Truck
                    and equipment expenses
                
                
                334,599
                
                
                296,01610,465,913
                
                
                10,069,205**Operating
                    income**
                
                
                4,678,014
                
                
                4,301,317Interest
                    expense
                
                
                (234,067
                )
                
                (225,018
                )Interest
                    income
                
                
                54,639
                
                
                42,920**Income
                    before income taxes**
                
                
                4,498,586
                
                
                4,119,219State
                    taxes as reported
                
                
                (41,333
                )
                
                (7,172
                )**Net
                    income as reported**
                
                $
                4,457,253
                
                $
                4,112,047**Income
                    before income taxes as reported**
                
                $
                4,498,586
                
                $
                4,119,219Proforma
                    income taxes
                
                
                (1,799,000
                )
                
                (1,648,000
                )**Proforma
                    net income after taxes**
                
                $
                2,699,586
                
                $
                2,471,219
  See
        Notes
        to Consolidated Financial Statements.





1




**SJJC
                  Aviation Services, LLC****and
                  Subsidiaries****Consolidated
                  Balance Sheet****June
                  30, 2007**
  **Assets
                  (Note 2)**
              
              (Unaudited)Current
                  Assets:Cash
              
              $
              1,508,251Accounts
                  receivable, less allowance for doubtfulaccounts
                  2007 $21,844; 2006 $20,000 (Note 9)
              
              
              11,853,415Inventories
              
              
              445,879Prepaid
                  expenses and deposits
              
              
              907,489**Total
                  current assets**
              
              
              14,715,034Property
                  and Equipment:Buildings,
                  tenant improvements and fuel facility
              
              
              24,542,925Vehicles
              
              
              5,070,226Equipment
              
              
              2,387,536Construction
                  in progress
              
              
              753,97732,754,664Less
                  accumulated depreciation
              
              
              14,592,27918,162,385Notes
                  Receivable
              
              
              630,582Other
                  Assets:Goodwill
              
              
              5,930,973Intangible
                  asset, FAA charter certificate
              
              
              916,667Intangible
                  asset, airport ground lease
              
              
              4,290,000Interest
                  rate swap (Note 3)
              
              
              24,10011,161,740**Total
                  assets**
              
              $
              44,669,741


See
        Notes
        to Consolidated Financial Statements.


2




**SJJC
                    Aviation Services, LLC****and
                    Subsidiaries****Consolidated
                    Balance Sheet - **(continued)******June
                    30, 2007**


**Liabilities
                and Members' Equity**
            
            (Unaudited)Current
                Liabilities:Notes
                payable (Note 2)
            
            $
            865,138Current
                maturities of long-term debt (Note 2)
            
            
            599,008Accounts
                payable (Note 10)
            
            
            3,325,599Accrued
                expenses
            
            
            2,234,503Income
                taxes payable
            
            
            12,160Deferred
                rents and deposits
            
            
            4,829,157**Total
                current liabilities**
            
            
            11,865,565Long-Term
                Debt, net of current maturities (Note 2)
            
            
            7,612,732Commitment
                and Contingent Liabilities (Notes 2, 4 and 5)Members'
                Equity:Members'
                capital
            
            
            25,167,344Accumulated
                other comprehensive income
            
            
            24,10025,191,444**Total
                liabilities and members' equity**
            
            $
            44,669,741





See
      Notes
      to Consolidated Financial Statements.





3


**SJJC
                Aviation Services, LLC****and
                Subsidiaries****Consolidated
                Statements of Cash Flows**




Six-Month
                  Period EndedJune
                  30, 2007
              
              June
                  30, 2006(Unaudited)
              
              (Unaudited)Cash
                  Flows from Operating Activities:Net
                  income
              
              $
              4,457,253
              
              $
              4,112,047Adjustments
                  to reconcile net income to net cashprovided
                  by operating activities:Depreciation
              
              
              948,514
              
              
              898,038Amortization
              
              
              89,999
              
              
              16,667(Gain)
                  loss on disposal of equipment
              
              
              (61,716
              )
              
              6,885Long-term
                  debt forgiven
              
              
              (46,508
              )
              
              (15,168
              )Long-term
                  executive compensation
              
              
              25,002
              
              
              1,838Changes
                  in assets and liabilities:(Increase)
                  in accounts receivable
              
              
              (1,392,736
              )
              
              (886,276
              )(Increase)
                  decrease in inventories
              
              
              (237,739
              )
              
              (73,187
              )(Increase)
                  decrease in prepaid expenses and other assets
              
              
              612,026
              
              
              101,120Increase
                  (decrease) in accounts payable and accrued expenses
              
              
              (775,112
              )
              
              112,061Increase
                  (decrease) in income taxes payable,deferred
                  rents and deposits
              
              
              (674,432
              )
              
              112,894**Net
                  cash provided by operating activities**
              
              
              2,944,551
              
              
              4,386,919Cash
                  Flows from Investing Activities:Purchase
                  of property and equipment
              
              
              (1,751,558
              )
              
              (299,199
              )Proceeds
                  from disposal of equipment
              
              
              212,148
              
              
              225,678(Advances)
                  collection on note receivable
              
              
              6,398
              
              
              (293
              )**Net
                  cash (used in) investing activities**
              
              
              (1,533,012
              )
              
              (73,814
              )Cash
                  Flows from Financing Activities:Net
                  borrowings on note payable
              
              
              865,138
              
              
              —Borrowings
                  on long-term debt
              
              
              1,400,000
              
              
              250,000Principal
                  payments on long-term debt
              
              
              (200,165
              )
              
              (2,175,200
              )Distributions
                  paid
              
              
              (3,200,000
              )
              
              (1,500,000
              )**Net
                  cash (used in) financing activities**
              
              
              (1,135,027
              )
              
              (3,425,200
              )**Increase
                  in cash**
              
              
              276,512
              
              
              887,905Cash:Beginning
              
              
              1,231,739
              
              
              1,148,428Ending
              
              $
              1,508,251
              
              $
              2,036,333Supplemental
                  Disclosures of Cash Flow Information, cash payments for:Interest
              
              $
              194,262
              
              $
              211,400Income
                  taxes
              
              
              43,452
              
              
              5,650Supplemental
                  Disclosure of Noncash Investing andFinancing
                  Activities, change in fair value of interest rate swap
              
              
              8,877
              
              
              —


See
        Notes
        to Consolidated Financial Statements.
 
 4
 
 **SJJC
          Aviation Services, LLC**


**and
      Subsidiaries**





**Notes
      to Consolidated Financial Statements**




**Note
      1.** **Nature
      of Business and Significant Accounting Policies**




**Nature
      of business:**





SJJC
      Aviation Services, LLC (the “Company”) operates two fixed base facilities
      catering to general aviation and corporate aircraft customers located at the
      San
      Jose International Airport, San Jose, California (Airport). The Company has
      the
      following five wholly-owned operating subsidiaries:





·
            SJJC
                FBO Services, LLC provides flight support services, including: fueling,
                ramp and hangar rentals and other
                services.


·
            Jet
                Center Property Services, LLC provides office space rentals and is
                responsible for one of the ground leases.


·
            SJJC
                Airline Services, LLC provides fueling services to commercial airlines.


·
            ACM
                Aviation, LLC provides flight support services, including: fueling,
                ramp
                and hanger rentals, aircraft management and other services.


·
            ACM
                Property Services, LLC is responsible for ACM Aviation, LLC’s ground
                lease.





**Significant
      accounting policies:**





Basis
      of presentation :
      The
      condensed financial statements have been prepared in accordance with accounting
      principles generally accepted in the United States of America for interim
      financial information and with the instructions to Form 10-Q and Article 10
      of
      Regulation S-X. Accordingly, they do not include all of the information and
      footnotes required by accounting principles generally accepted in the United
      States of America for complete financial statements. In the opinion of
      management, all adjustments (consisting of normal recurring accruals) considered
      necessary for a fair presentation have been included. Operating results for
      the
      six-month period ended June 30, 2007 are not necessarily indicative of the
      results that may be expected for the year ending December 31, 2007.





Principles
      of consolidation :
      The
      consolidated financial statements include the accounts of the Company and its
      wholly-owned subsidiaries: SJJC FBO Services, LLC, Jet Center Property Services,
      LLC, SJJC Airline Services, LLC, ACM Aviation, LLC and ACM Property Services,
      LLC. All significant intercompany accounts and transactions have been eliminated
      in consolidation.





Use
      of
      estimates :
      The
      preparation of financial statements, in conformity with accounting principles
      generally accepted in the United States of America, requires management to
      make
      estimates and assumptions that affect the reported amounts of assets and
      liabilities and disclosure of contingent assets and liabilities at the date
      of
      the financial statements and the reported amounts of revenues and expenses
      during the reporting period. Actual results could differ from those
      estimates.





Significant
      estimates :
      The
      recoverability of long-term assets, valuation of goodwill and the estimated
      fair
      value of assets acquired in business acquisitions involve significant estimates
      made by management. These estimates are reviewed by management routinely and
      it
      is reasonably possible that circumstances that exist as of June 30, 2007 may
      change in the near-term future and that effect could be material to the
      consolidated financial statements.





5





**SJJC
      Aviation Services, LLC**


**and
      Subsidiaries**





**Notes
      to Consolidated Financial Statements**




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





Revenue
      recognition :
      Revenue
      from fuel sales, charter services, aircraft management maintenance and airline
      services is recognized at the point of sale or time of service. Hangar rent,
      ramp fees and office rental revenue is recognized over the term of the related
      agreements. Federal fuel taxes are paid to the fuel suppliers as part of cost
      of
      goods sold. California fuel taxes are collected from the customer by the Company
      and remitted to the state and are not included in revenue or cost of goods
      sold.





Accounts
      receivable :
      Accounts receivable are carried at 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
      regularly evaluating individual customer receivables and considering a
      customer’s financial condition, credit history and current economic conditions.
      Accounts receivable are written off when deemed uncollectible. Recoveries of
      accounts receivable previously written off are recorded when received. An
      account receivable is considered past due if any portion of the receivable
      balance is outstanding for more than 60 days. A variable rate of interest is
      charged on past due receivable balances based on customer payment history.
      Administrative expenses on the accompanying consolidated statements of income
      for the six-month periods ended June 30, 2007 and 2006 include bad debt expense
      of approximately $2,000 and $2,500, respectively.





Inventories :
      Inventories are stated at the lower of cost or market with cost determined
      on
      the first-in, first-out method (FIFO).





Property
      and equipment :
      Property and equipment is carried at cost. Depreciation is computed on the
      straight-line method over the following estimated useful lives:




YearsBuildings,
                  tenant improvements and fuel facility
              3
                  -
                  39Vehicles
              5
                  -
                  10Equipment
              3
                  -
                  10




Goodwill :
      The
      Company has adopted the provisions of FASB Statement No. 142. As a result,
      goodwill is not being amortized, but is tested for impairment at least annually.
      Management has determined there was no impairment as of June 30,
      2007.





Intangible
      assets :
      The
      intangible assets on the accompanying consolidated balance sheets primarily
      relate to the rights to the ground lease held by ACM Property Services, LLC
      and
      a FAA charter certificate held by ACM Aviation, LLC, both acquired in the
      January 1, 2005 business combination. The charter certificate is being amortized
      over 30 years and the accumulated amortization totaled $83,333 as of June 30,
      2007. The ground lease is being amortized over the 30-year initial term which
      commenced in October 2006 when access to the property was obtained. The
      accumulated amortization totaled $110,000 as of June 30, 2007. Amortization
      expense included in the consolidated statements of income was $89,999 and
      $16,667 for the six-month periods ended June 30, 2007 and 2006,
      respectively.




6




**SJJC
      Aviation Services, LLC**


**and
      Subsidiaries**





**Notes
      to Consolidated Financial Statements**




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





The
      following is a schedule by year of estimated amortization expenses:




Year
                    ending December 31:2007
                
                $
                180,0002008
                
                
                180,0002009
                
                
                180,0002010
                
                
                180,0002011
                
                
                180,000Thereafter
                
                
                4,396,666$
                5,296,666


Advertising
      costs :
      Advertising costs, which are immaterial, are expensed as incurred.





Deferred
      rents and deposits :
      Deferred rents and deposits consist of prepaid rents and security deposits
      from
      tenants.





Interest
      rate swap agreement :
      The
      Company has a derivative in the form of an interest rate swap agreement as
      described in Note 3, which is carried at fair value. The Company has elected
      hedge accounting, therefore, the change in the fair value of the swap is
      included in accumulated other comprehensive income in the members’ equity
      section of the consolidated balance sheets.





Fair
      value of financial instruments :
      Financial instruments are described as cash or contractual obligations or rights
      to pay or to receive cash. The fair value for certain financial instruments
      approximates the carrying value because of the short-term maturity of these
      instruments which include cash, accounts receivable, accounts payable and
      accrued expenses. The Company’s interest rate swap liability is carried at fair
      value on the consolidated balance sheets. The long-term bank notes payable
      approximates fair value due to the interest rate being variable. The fair value
      of the note payable, major fuel supplier, is not determinable as the note is
      potentially forgivable. The fair value of the note payable, related party
      approximates carrying value as of June 30, 2007.





Comprehensive
      income :
      Comprehensive income is defined as the change in equity during a period from
      transactions and other events from non-owner sources. Comprehensive income
      is
      the total of net income and other comprehensive income (loss) which for the
      Company is comprised entirely of fair value adjustments for the interest rate
      swap.





Proforma
      net income :
      Proforma income taxes are calculated to reflect the effect of income taxes
      not
      otherwise payable by SJJC Aviation Services, LLC and subsidiaries which are
      S-corporations. The proforma income taxes are based on an effective rate of
      40%.





Earnings
      per share :
      Earnings per share information for the Company is not presented since it is
      an
      LLC without membership units and this information is not meaningful to the
      acquiring company.





7


**SJJC
      Aviation Services, LLC**


**and
      Subsidiaries**





**Notes
      to Consolidated Financial Statements**




**Note
      2.** **Note
      Payable, Long-Term Debt and Pledged Assets**





The
      Company has a bank line of credit with maximum borrowings in the amount of
      $2,250,000 as of June 30, 2007 with interest at the prime rate plus .5% (8.75%
      as of June 30, 2007) or an optional alternative floating rate based on LIBOR,
      collateralized by inventories and accounts receivable of the Company. A portion
      of this line of credit is intended for financing a stand by letter of credit
      issued in the amount of $1,384,862 in favor of the City of San Jose to secure
      obligations under the ground lease. As of June 30, 2007 there were borrowings
      of
      $865,138 on the line of credit.





The
      Company has the following long-term debt as of June 30, 2007:


Note
                    payable, bank (A)
                
                $
                4,139,167Note
                    payable, major fuel supplier (B)
                
                
                775,148Note
                    payable, related party (C)
                
                
                1,400,000Long-term
                    executive incentive award plan liability (D)
                
                
                523,840Note
                    payable, bank (E)
                
                
                1,373,5858,211,740Less
                    current maturities
                
                
                599,008$
                7,612,732




(A)
              In
                  accordance with a bank business loan agreement, the Company has
                  drawn
                  $4,139,167 on a note payable as of June 30, 2007. The note payable,
                  which
                  matures in October 2014, bears interest at the prime rate plus
                  .5% (8.75%
                  as of June 30, 2007) or at an optional alternative floating rate
                  of LIBOR
                  plus 2% and is due in monthly installments of $28,958. The note
                  payable is
                  collateralized by the Company’s leasehold interest in its operating
                  facilities (see Note 5). The business loan agreement has various
                  covenants, including maintaining certain levels of tangible net
                  worth and
                  a certain debt-to-worth ratio, and restrictions on new
                  borrowings.





(B)
            Note
                payable, major fuel supplier, due in annual principal payments of
                $93,018
                through October 2015, collateralized by a subordinated security interest
                in buildings and improvements on leased land at the airport. The
                required
                payments due, including interest at 2% over prime, under this agreement
                will be forgiven annually as long as the Company is a customer of
                the
                major fuel supplier and purchases a specified number of gallons of
                fuel
                per year. In May 2006, the fuel supplier advanced an additional $250,000
                to the Company which was rolled into the existing note payable. The
                amount
                of principal and interest forgiven for the six-month periods ended
                June
                30, 2007 and 2006 was approximately $89,000 and $51,000, respectively.
                These amounts are included as a reduction of fuel cost of goods sold
                on
                the consolidated statements of
                income.





(C)
            Note
                payable, unsecured, related party, due in equal annual installments
                over
                five to six years without interest. The current maturities of long-term
                debt include $280,000 related to this
                note.





8


**SJJC
      Aviation Services, LLC**


**and
      Subsidiaries**





**Notes
      to Consolidated Financial Statements**




**Note
      2.** **Note
      Payable, Long-Term Debt and Pledged Assets (Continued)**





(D)
            Initial
                term of plan expired December 31, 2005 with amounts payable on or
                after
                April 1, 2008. When the sale of the Company occurred in August 2008,
                the
                sales price of the Company was used as the value of the Company in
                order
                to compute the payout amount under this plan. Based on the final
                cash
                sales price of the Company and the debt assumed by the buyer, the
                final
                payout of incentive compensation was approximately $4,000,000. The
                incremental payout associated with the sale of the Company became
                a
                liability at the closing of the sale, but was not be a liability
                assumed
                by the buying party.





(E)
            In
                accordance with a bank business loan agreement, the Company has drawn
                $1,400,000 on a note payable as of June 30, 2007. The note payable,
                which
                matures in February 2016, bears interest at the prime rate plus .5%
                (8.75%
                as of June 30, 2007) or at an optional alternative floating rate
                of LIBOR
                plus 2% and is due in monthly installments of approximately $17,000.
                The
                note payable is collateralized by the Company’s leasehold interest in its
                operating facilities (see Note 5). The business loan agreement has
                various
                covenants, including maintaining certain levels of tangible net worth
                and
                a certain debt-to-worth ratio, and restrictions on new
                borrowings.





Annual
      maturities of the long-term debt for the next five years and thereafter are
      as
      follows:




Year
                    ending December 31:2007
                
                $
                720,5182008
                
                
                1,219,3562009
                
                
                720,5182010
                
                
                720,5182011
                
                
                720,518Thereafter
                
                
                2,931,983$
                7,033,411





**Note
      3.** **Interest
      Rate Swap Agreement**





The
      Company has entered into an interest rate swap agreement to reduce the impact
      of
      changes in interest rates on its variable rate long-term debt. The interest
      rate
      swap has been classified as a cash flow hedge. This agreement effectively
      changed the interest rate on a certain obligation from a variable rate based
      on
      LIBOR to a fixed rate of 5.64% as of June 30, 2007. The fair value of the swap,
      as of June 30, 2007 is an asset of $24,100. The notional amount of the swap,
      as
      of June 30, 2007, was approximately $1,531,000. The agreement matures in
      August 2008.





9


**SJJC
      Aviation Services, LLC**


**and
      Subsidiaries**





**Notes
      to Consolidated Financial Statements**








**Note
      4.** **Commitments
      and Contingencies**





A
      2003
      airport ground lease agreement with the City of San Jose, California, with
      an
      initial term of 30 years, requires the Company to construct hangar facilities
      on
      the land within two years of obtaining access to the property. Access was
      obtained in October 2006. The required minimum capital investment by the Company
      in the facilities is approximately $12,000,000, of which approximately
      $2,619,000 has been expended as of June 30, 2007. In June 2007, the Company
      entered into a construction contract with a general contractor which is
      partially owned by three shareholders of the Company. The total estimated cost
      of completion of the project is approximately $16,700,000 with expected
      completion in 2008. The project will be financed with a bank loan.





On
      August
      16, 2007, the Company sold substantially all the assets of the Company at an
      amount in excess of carrying value.





**Note
      5.** **Lease
      Commitments**





The
      Company leases land from the City of San Jose for its operations under lease
      agreements that expire in 2036 and 2038. The leases require the Company to
      pay
      all property taxes, insurance and maintenance plus monthly land rental payments.
      The leases contain provisions for annual rental adjustments based on the annual
      Consumer Price Index adjustments and revaluation of the leased land every five
      years.





Minimum
      rental commitments under the above noncancelable operating lease are
      approximately as follows:




Year
                  ending December 31:2007
              
              $
              1,831,0002008
              
              
              1,859,0002009
              
              
              1,731,0002010
              
              
              1,731,0002011
              
              
              1,731,000Thereafter
              
              
              45,261,000$
              54,144,000





The
      Company also leases other equipment on short-term leases.





Total
      rental expense for the six-month periods ended June 30, 2007 and 2006 was
      $997,692 and $947,141, respectively.




10


**SJJC
      Aviation Services, LLC**


**and
      Subsidiaries**





**Notes
      to Consolidated Financial Statements**




**Note
      6.** **Income
      Tax Matters**





As
      a
      Limited Liability Company (LLC), the Company is not obligated and, therefore,
      does not pay federal income tax relating to the income, deductions, losses
      and
      credits (“income items”) of the Company. Instead, the Company’s members report
      their allocable share of the Company’s income items on their respective tax
      returns and pay the appropriate federal and state taxes.





As
      a
      result of the federal income tax treatment surrounding the LLC structure, the
      consolidated financial statements do not include any provision for federal
      income taxes due on the income of the Company. It has been the Company’s policy
      to make distributions to its members to assist them in paying personal income
      taxes on the income of the Company.





In
      June
      2006, the FASB issued Interpretation No. 48, *Accounting
      for Uncertainty in Income Taxes, an Interpretation of FASB Statement
      109* (FIN
      48). This Statement clarifies the criteria that an individual tax position
      must
      satisfy for some or all of the benefits of that position to be recognized in
      a
      company’s financial statements. FIN 48 prescribes a recognition threshold of
      more likely than not, and a measurement attribute for all tax positions taken
      or
      expected to be taken on a tax return, in order for those tax positions to be
      recognized in the financial statements. The initial adoption of FIN 48 had
      no
      impact on our financial statements, and as a result, there was no cumulative
      effect related to adopting FIN 48.





**Note
      7.** **Retirement
      Plans**





The
      Company maintains a 401(k) safe harbor plan. This plan provides for elective
      employee contributions up to 100% of the employee’s compensation and matching
      employer contributions in an amount equal to 100% of the employee’s contribution
      up to 4% of the compensation for all employees eligible to receive a match.
      This
      plan was available for all employees of SJJC FBO Services, LLC, Jet Center
      Property Services, LLC, SJJC Airline Services, LLC and SJJC Aviation Services,
      LLC.





ACM
      Aviation, LLC and ACM Property Services, LLC had adopted plans which provided
      for elective employee contributions up to 100% of the employee’s compensation
      and matching employer contributions equal to 100% of the first 3% of the
      employee’s compensation and an additional 50% on deferrals of the employee’s
      next 2% of compensation. Effective January 1, 2006, the Company consolidated
      all
      employees under the ACM Aviation, LLC and ACM Property Services, LLC
      plan.





The
      Company’s contributions to the plans were approximately $77,000 and $72,000 for
      the six-month periods ended June 30, 2007 and 2006,
      respectively.





**Note
      8.** **Related
      Party Transactions**





The
      Company leases building space to an aircraft sales company that is owned and
      controlled by a stockholder of the Company. Rental income from this company
      was
      approximately $37,000 and $33,000 for the six-month periods ended June 30,
      2007
      and 2006, respectively. Total fuel and other sales to this company were
      approximately $7,000 and $18,000 for the six-month periods ended June 30, 2007
      and 2006, respectively.





The
      Company leases hangar space and provides aircraft management and fueling
      services to a stockholder of the Company. The revenue derived from these
      services totaled approximately $828,000 and $448,000 for the six-month periods
      ended June 30, 2007 and 2006, respectively.




11




**SJJC
      Aviation Services, LLC**


**and
      Subsidiaries**





**Notes
      to Consolidated Financial Statements**




**Note
      9.** **Major
      Customer**





The
      Company received revenue of approximately $3,232,000 and $2,372,000 from one
      customer for the six-month periods ended June 30, 2007 and 2006, respectively.
      Accounts receivable due from this customer was approximately $11,000 as of
      June
      30, 2007.





**Note
      10.** **Major
      Fuel Supplier**





The
      Company purchased approximately 80% of the Company’s fuel from one supplier
      during each of the six-month periods ended June 30, 2007 and 2006. Accounts
      payable due to this supplier were approximately $1,567,000 as of June 30,
      2007. The Company also had a note payable to this supplier with a balance of
      $775,148 as of June 30, 2007.





**Note
      11.** **Concentration
      of Credit Risk**





The
      Company has deposits in a financial institution which exceed federally insured
      limits as of June 30, 2007. The Company believes it is not exposed to any
      significant credit risk on cash and cash equivalents.





12