Corporate Flight Management, Inc. 

Smyrna, Tennessee 

Compiled Financial Statements 

Year Ended August 31, 2010 
ASSETS

Current Assets

Checking/Savings

100.000 · Cash 339,348.23

101.000 · Petty Cash 900.00

Total Checking/Savings 340,248.23

Accounts Receivable

120.000 · A/R 1,349,885.37

Total Accounts Receivable 1,349,885.37

Other Current Assets

121.000 · Other Accounts Receivable 238,572.83

122.000 · Receivables - Affiliates 2,217,135.76

125.000 · Notes Receivable 25,828.50

130.000 · Inventory 2,581,029.51

131.000 · Plane Inventory 4,428,181.26

135.000 · Prepaids 474,667.10

150.000 · Employee Receivables 16,167.78

Total Other Current Assets 9,981,582.74

Total Current Assets 11,671,716.34

Fixed Assets

140.000 · Fixed Assets 2,545,785.61

141.000 · Accumulated Depreciation -1,235,724.76

Total Fixed Assets 1,310,060.85

Other Assets

160.000 · Affiliate Interests -297,161.82

Total Other Assets -297,161.82

TOTAL ASSETS 12,684,615.37

CORPORATE FLIGHT MANAGEMENT, INC

Compiled Balance Sheet

Year Ended August 31, 2010

 Page 1 of 2
LIABILITIES & EQUITY

Liabilities

Current Liabilities

Accounts Payable

200.000 · Accounts Payable 2,874,312.32

Total Accounts Payable 2,874,312.32

Credit Cards

201.900 · Fifth Third Mastercard 53,950.59

Total Credit Cards 53,950.59

Other Current Liabilities

204.000 · Bank Lines of Credit 1,520,830.14

205.000 · Current Loans Payable 204,883.20

207.000 · Notes Payable - Owners 13,853.08

210.000 · Accrued Expenses 113,188.21

225.001 · Refundable A/R Deposits 1,251,453.31

230.003 · Refundable Insurance Deposits 148,995.66

Total Other Current Liabilities 3,253,203.60

Total Current Liabilities 6,181,466.51

Long Term Liabilities

206.000 · Long Term Liabilities 4,539,075.27

Total Long Term Liabilities 4,539,075.27

Total Liabilities 10,720,541.78

Equity

300.001 · Net Profit/Retained Earnings 2,359,581.45

300.002 · Capital Stock 10,000.00

301.000 · Paid in Capital 81,885.00

302.000 · Treasury Stock -67,346.26

Net Income -420,046.60

Total Equity 1,964,073.59

TOTAL LIABILITIES & EQUITY 12,684,615.37

 Page 2 of 2
Ordinary Income/Expense

Income

400.000 · Fuel Sales 4,038,742.25

405.000 · Parts Sales 6,091,493.51

410.000 · Labor Sales 3,229,757.78

420.000 · Aircraft Charter Dept.Services 8,097,690.71

430.000 · Rental Income 722,791.40

440.000 · Management Fees 228,610.43

450.700 · Aircraft Sales 473,810.00

460.800 · Ground Logistics Income 8,535.51

777.777 · MAP Policy Insurance 0.00

999.999 · adjusting acct 0.00

Total Income 22,891,431.59

Cost of Goods Sold

500.000 · Cost of Goods Sold - Fuel 4,250,051.70

505.000 · Cost of Goods Sold - Parts 4,340,151.26

505.700 · Aircraft Sales Cost 586,655.53

510.000 · Cost of Goods Sold-Charter Svcs 4,316,404.56

515.000 · Cost of Goods -Aircraft Rental 91,854.10

520.000 · Cost of Goods Sold-Labor 3,898,297.12

520.700 · Labor - Aircraft Sales 192,220.60

Total COGS 17,675,634.87

Gross Profit 5,215,796.72

Expense

600.000 · Personnel Expenses 2,840,384.88

604.000 · Contributions 2,082.00

605.000 · Hangar Rash/Insurance Ded. 16,115.28

610.000 · Insurance Expense 380,179.12

611.000 · Travel Expenses 43,220.22

612.000 · Vehicle Expense 33,756.28

613.000 · Licenses & Fees 47,164.37

614.000 · Building Repairs 68,709.70

615.000 · Equipment Repair 34,065.26

616.000 · Dues and Subscriptions 236,902.36

617.000 · Equipment Rental 678.02

618.000 · Professional Fees 83,983.50

620.000 · Facilities Rent 741,390.00

621.000 · Equipment Lease 138,258.21

CORPORATE FLIGHT MANAGEMENT, INC

Compiled Income Statement

Year Ended August 31, 2010

 Page 1 of 2
622.000 · Finance Charge 92,665.16

623.000 · Small Equipment 5,710.46

624.000 · Advertising & Promotions 49,909.91

625.000 · Postage & Delivery 6,481.95

630.000 · Web Development Expense 27,400.47

640.000 · Utilities 306,651.38

645.000 · Computer Supplies Exp. 8,515.46

655.000 · Supplies 76,075.53

656.000 · Office Supplies 19,042.74

657.000 · Miscellaneous Expenses 6,268.28

660.000 · Bad Debts 56,332.71

670.000 · Bad Debts Recovery -96,098.16

680.000 · Penalties & Fines 6,973.43

690.000 · Taxes 83,932.82

691.000 · Depreciation/Amortization 83,390.96

710.000 · Interest Expense 170,109.18

750.000 · Fees 125,809.46

Total Expense 5,696,060.94

Net Ordinary Income -480,264.22

Other Income/Expense

Other Income

490.000 · Miscellaneous Income 59,762.16

700.000 · Interest Income 10,014.46

Total Other Income 69,776.62

Other Expense

760.000 · Loss on Investments 9,559.00

Total Other Expense 9,559.00

Net Other Income 60,217.62

Net Income -420,046.60

 Page 2 of 2
Corporate Flight Management, Inc Year Ended August 31, 2010                                                                   

NOTES TO COMPILED FINANCIAL STATEMENT

August 31, 2010

Note 1 – Financial Statement 

This statement is a compilation of Corporate Flight Management, Inc, (CFM) the operating 

subsidiary of C.F.M. Holdings, Inc. This statement is prepared for the use of the U.S. 

Department of Transportation for the purpose of obtaining Financial Fitness Accreditation. 

Management does not represent that the statements are in compliance with GAAP rules as it 

relates to its affiliates. Generally, a proper representation of the financial information under 

generally accepted accounting principles would require a consolidation of all affiliates of the 

parent company, CFM Holdings, Inc. The information presented in this report is a financial 

representation of the operating company only. Affiliate relationships will be noted in the financial 

notes. 

Business Activity. 

Corporate Flight Management, Inc. was incorporated on July 26, 1982, in accordance with the 

Tennessee General Corporation Act. The Company’s primary purpose is to conduct business in 

the field of aviation, charter, maintenance, aircraft management, flight school, brokerage sales 

of aircraft, and the FBO. The main offices and operations of the company are located in 

Smyrna, Tennessee. 

 

Note 2 – Credit Risks 

The company maintains its cash balances in four financial institutions located in Nashville, 

Tennessee. The balances at each bank are insured by the Federal Deposit Insurance 

Corporation. 

Note 3 – Accounts Receivable Trade 

An aging of Accounts Receivable at August 31, 2010 are as follows: 

August 31, 2010 

 Current 1,067,182 

 30 Days 104,947 

 60 Days 57,663 

 90 Days and over 120,093 

 Total Trade Receivables 1,349,885 

Note 4. Accounts Receivable – Affiliates 

Affiliate revenue of $2,458,553 represents10.7% of total revenue for the company, of which 

$1,884,159, 76.6% of the affiliate revenue, is primarily refurbishment work for Jetstream Sales, 

LLC, a 50% partnership engaged in the purchase and resale of rebuilt aircraft. Other significant 

revenue includes $224,525 in maintenance and upkeep on three aircraft owned by Jetstream 

Air, LLC and used in the company’s charter fleet, $173,429 in revenue from the JWN Wings of 

Eagles, LLC for fuel purchases and other services for the flight school, and fuel and upkeep 

revenue of $80,161 for three aircraft leased to the flight school at the Smyrna flight school. 

These aircraft are owned by Wings of Eagles, LLC. 
Corporate Flight Management, Inc Year Ended August 31, 2010                                                                   

NOTES TO COMPILED FINANCIAL STATEMENT

August 31, 2010

In accordance to accepted accounting procedures, a portion of the charges to the affiliate 

companies are pass through income that are not credited to revenue accounts. The following 

table describes the revenue and the pass through activity in the affiliate receivable accounts. 

Funding for the in-process refurbishment of Jetstream Sales aircraft was provided by the 

affiliate. Refurbishment for the aircraft, BAE J-32, is in the range of $500,000 to $800,000. The 

debt to the affiliate is recorded in the Affiliate Receivable account. At the close of books for the 

year, one aircraft was in process. The corresponding debt to the affiliate at closing is $625,043. 

The following is a table recording the affiliate activity for the year. 

Affiliate Revenue and Pass Through Activity 

122.000 · Receivables - Affiliates 

 Revenue 

for 

Services 

to Affiliates 

 Pass 

through 

Charge to 

Affiliates 

Payment or 

Payables 

from the 

Affiliates 

Net 

Increase 

(decrease) 

to Affiliate 

Receivable 

 122.002 · CFM Airport Development Co, LLC 0 64,539 60,000 4,539 

 122.003 · CFM Holdings, Inc. 0 125 0 125 

 122.006 · Jetstream Air, LLC 224,525 0 127,906 96,619 

 122.012 · JetStream Sales, LLC 1,884,159 262,665 2,680,361 -533,537 

 122.013 · MQY Wings of Eagles 40,090 558 42,724 -2,076 

 122.020 · Wings of Eagles 80,161 7,521 6,017 81,665 

 122.030 · JWN Wings of Eagles 173,429 -14,834 155,828 2,767 

 122.032 · CFM Automotive, LLC 0 20,062 7,200 12,862 

 122.037 · 410 Investors, LLC 0 0 0 0 

 122.040 · Jet Quik,LLC 56,189 127,380 197,877 -14,308 

 122.041 · CFM-HL Joint Venture 0 150,668 134,722 15,946 

Total 122.000 · Receivables - Affiliates 2,458,553 618,684 3,412,635 -335,398 

The following table records the balance on account for the affiliates. 

August 31, 2010 

Jetstream Air, LLC 1,388,137 

Jetstream Sales, LLC -625,043 

CFM Airport Development 177,399 

CFM Automotive, LLC 22,324 

MQY - Wings of Eagles 293 

Wings of Eagles 432,645 

JWN Wings of Eagles, LLC 2,766 

CFM Holdings, Inc (parent company) 607,561 

JetQuick, LLC 125,939 
Corporate Flight Management, Inc Year Ended August 31, 2010                                                                   

NOTES TO COMPILED FINANCIAL STATEMENT

August 31, 2010

410 Investors, LLC 69,164 

CFM Joint Venture 15,946 

Total Accounts Receivable - Affiliate 2,217,136 

Note 5 - Notes Receivable 

 

Notes receivable consist of two separate notes from Chuck Howell and David Augustin, two of 

the principle owners of the Company. At August 31, 2010 the balances of Notes receivable 

belonging to Howell and Augustin were $19,020 and $6,808 respectively. 

Note 6 - Inventories 

Inventories consisted of the following at year end. 

August 31, 2010 

Aircraft 4,428,181.26 

Parts 1,288,520.34 

Work In Process 1,198,427.00 

Fuel 94,082.24 

Total Inventory 7,009,210.84 

Note 7 – Restricted Cash Deposits 

The Company holds insurance in escrow deposits for its managed aircraft fleet, and it also 

secures a stand–by letter of credit with a one year $100,000 Certificate of Deposit. Restricted 

deposits were equal to $269,642. 

Note 8 – Investments 

Investment in related entities consisted of the following at year end: 

 

Affiliate Interest Balance 

Wings of Eagles, LLC -374,248 

JWN Wings of Eagles, LLC 19,247 

CFM Auto, LLC -239 

CFM –HL Joint Venture -9,547 

MQY Wings of Eagles, LLC -23,387 

Jetstream Sales, LLC 139,119 

JetQuick, LLC -48,286 

Total Investments -297,161 
Corporate Flight Management, Inc Year Ended August 31, 2010                                                                   

NOTES TO COMPILED FINANCIAL STATEMENT

August 31, 2010

 

Note 9 - Credit Cards Payable 

The company currently has a $500,000 limit credit card for operating aircraft and parts inventory 

purchases. As of August 31, 2010 the balance was $53,950. 

Note 10 – Refundable Customer Deposits 

The Company requires customer deposits before undertaking large maintenance projects or 

booking pre-paid blocks flight times. The following is a summary of all refundable customer 

deposits at August 31, 2010. 

August 31, 2010 

Charter Block Time 241,981.00 

Maintenance Refurbishment 767,057.00 

Maintenance Prepays 66,785.00 

FBO-Pre-purchases 16,130.00 

Aircraft Sales Deposits 159,500.00 

Total Refundable Customer Deposits 1,251,453.00 

Note 11 – Refundable Insurance Deposits 

The Company offers the managed aircraft owners the opportunity to participate in the 

Company’s fleet insurance program, which usually affords some discounts on premiums due to 

volume buying. As part of the fleet insurance program, the insurance company requires a 

deposit as a reserve against monthly premiums. The Company is obligated to reimburse each 

aircraft owner when the aircraft leaves the insurance program. The balance of refundable 

deposits is $148,995 at the close of the year. 

Note 12 – Notes Payable 

See Schedule B for a schedule of debt. 
Corporate Flight Management, Inc Year Ended August 31, 2010                                                                   

NOTES TO COMPILED FINANCIAL STATEMENT

August 31, 2010

Note 13 – Taxes Payable 

August 31, 2010 

Sales Tax 21,241.00 

Payroll Taxes 48,524.23 

State Taxes 308.68 

Federal Taxes - FET 21,445.82 

Property Taxes 14,229.00 

County and City Taxes 33,096.00 

Total Taxes Payable 145,798.33 

Note 14 – Contingent Liabilities 

See Schedule B for a schedule of debt. 

Note 15 – Other Income 

Income from investments is as follows. 

August 31, 2010 

CFM Automotive, LLC 1,975.00 

Jetstream Sales, LLC -19,000.00 

CFM HL Joint Venture -9,547.00 

MQY Wings of Eagles, LLC 27,294.00 

JetQuik,LLC 16,782.00 

JWN WOE 28,092.00 

Wings of Eagles, LLC -55,155.00 

Total -9,559.00 
Note Holder Purpose Collateral

Maximum Liability 

8-31-10

Monthly 

Payment Origination Date

Original Note 

Amount 

205.021 First Insurance Group Insurance Premium Financing none 187,815.90 22,410.49 04/01/10 356,710.00 

205.017 First Tennessee refurb for 507T Airplane 507T 40,494.99 348.29 10/23/08 45,250.00 

205.019 Civic Bank and Trust Finance of Employee Car Buyout Inv, furn, fixt,equipment, AR 19,797.11 625.00 205.105 First Tennessee Purchase Jetstream for resale/950 Aircraft Jetstream MSN 950 255,821.37 3,285.28 03/30/07 336,000.00 205.235 Bancorpsouth Bank Construct FBO and term out West Side FBO Building 928,391.86 8,896.63 07/26/04 1,071,000.00 

205.022 Reliant Bank Build out 926AE None 23,541.25 127.56 09/14/09 150,000.00 206.110 John Floyd Investor Financed 10UP None 503,769.68 0.00 12/21/07 800,000.00 205.441 Bancorp South Jeep Wrangler for Blake Tumbleson Jeep Wrangler 14,785.38 593.22 11/20/09 29,358.00 

206.018 Ricardo Tostada Balance due from Sale of 913 none 393,928.08 0.00 12/31/08 393,928.08

TOTALS 2,368,345.62 36,286.47

Investor Related Loans - On Balance Sheet

204.150 Pinnacle Bank Guaranteed Debt by two investors for 

refurb. CFM took the debt and ownership of the asset to protect Investors from 

product liability prot. 

Two J-32 Aircraft 865CY and 858CY

1,420,830.14 int only 04/29/08 1,600,000.00 

205.107 First Tennessee Tom Chappell Purchase of 564HK. He pays 

the payment.

Aircraft 565HK 1,624,717.52 11,453.27 09/17/08 1,801,000.00 

205.400 Hvizdak Loan Parts Plane #2/unsecured None 155,419.00 Interest annually 11/29/06 510,000.00 

JetStream Air, LLC - Off Balance Sheet

Beacon Federal Acquisition of aircraft Aircraft 242BM 559,605.94 11,114.95 08/17/05 972,000.00 

Beacon Federal Rebuild Engine Aircraft 242BM 65,276.51 1,413.56 08/17/05 123,615.00 First Tennessee Acquisition of aircraft Aircraft 643JX 718,376.43 8,478.59 07/21/05 920,000.00 

Pinnacle Acquisition of aircraft Aircraft 657BA 393,165.74 7,929.96 08/12/05 657,801.00 

CFM Airport Development, LLC - Off Balance Sheet

Regions Bank Refinance acquisition loan Real Estate - 20 Hangar 

Condo Unit at Smyrna 

Airport

214,453.72 4,151.97 03/31/05 377,044.11 

Other Notes Off Balance Sheet

Hl Aviaition Hangar 2 at John Tune (recently 

compltely). This note is from HL-CFM Joint Venture. CFM is a co-maker on the note. The Hangar is the collateral valued at 

$1.8M

Real Estate - Hangar 2 John Tune Airpoert

1,073,646.43 10,000.00 02/19/09 1,153,500.00 

Arvest Bank CFM is guarantor on $3,000,000 line of 

credit to Jetstream Sales, LLC. Ken Mourton is personal guarantee and provides significant financial strength in support of the debt. Payments are paid by Ken Mourton. Collateral is seven J-32"s 

valued at $3.05M

Seven Aircraft, J - 32 BAE purchased at $350,000 per aircraft. Two aircraft interiors.

 15,763.45 2,652,960 12/03/07 3,000,000 

Regions Bank CFM is guarantor of Wings of Eagles note 

for Flight Simulator (collateral) valued at $100,000

Flight Simulator located at Smyrna Aircraft

 869.35 03/20/08 42,466 

30,644

Beacon Federal CFM is guarantor for Note to Wings of 

Eagles for 223NH (collateral) valued at 120,000

Aircraft 223NH 67,460 1,145.28 04/06/01 118,079 

Beacon Federal CFM is guarantor for note to Wings of 

Eagles for 342DS (collateral) valued at $120,000

Aircraft 342DS 83,890 1,778.20 08/24/01 185,710 

Corporate Flight Management, Inc

Schedule of Debt

31-Aug-10
Civic Bank and Trust CFM is a guarantor for CFM Automotive, 

LLC. The company has ceased to operate. There are two vehicles remaining on the line. 

Mercedes, Lexus 30,369 156.90 03/03/09 200,000 

First Bank Personal Note to John Floyd and Allen 

Howell. The proceeds were used to fund loan to CFM for the acquisition 10UP. Allen Howell is a related party to CFM as a 38% owner

Aircraft 10UP 588,028.55 2,515.45 12/21/07 800,000.00 
Corporate Flight Management, Inc. 

Smyrna, Tennessee 

Compiled Financial Statements 

Year Ended August 31, 2011 
Ordinary Income/Expense

Income

400.000 · Fuel Sales 5,379,562.22

405.000 · Parts Sales 5,174,605.50

410.000 · Labor Sales 2,650,241.66

420.000 · Aircraft Charter Dept.Services 12,455,229.78

430.000 · Rental Income 1,371,099.24

440.000 · Management Fees 281,503.00

450.700 · Aircraft Sales 2,973,737.96

4999 · Uncategorized Income 173.13

777.777 · MAP Policy Insurance 0.00

999.999 · adjusting acct 0.00

Total Income 30,286,152.49

Cost of Goods Sold

500.000 · Cost of Goods Sold - Fuel 5,913,164.34

505.000 · Cost of Goods Sold - Parts 3,914,089.48

505.700 · Aircraft Sales Cost 2,535,006.55

510.000 · Cost of Goods Sold-Charter Svcs 7,108,384.75

515.000 · Cost of Goods -Aircraft Rental 457,682.74

520.000 · Cost of Goods Sold-Labor 3,524,725.78

520.700 · Labor - Aircraft Sales 212,544.50

Total COGS 23,665,598.14

Gross Profit 6,620,554.35

Expense

600.000 · Personnel Expenses 3,168,279.25

604.000 · Contributions 1,705.00

605.000 · Hangar Rash/Insurance Ded. 35,047.05

610.000 · Insurance Expense 215,470.46

611.000 · Travel Expenses 74,979.07

612.000 · Vehicle Expense 45,599.76

613.000 · Licenses & Fees -23,156.23

614.000 · Building Repairs 75,047.36

615.000 · Equipment Repair 29,097.24

616.000 · Dues and Subscriptions 103,588.12

617.000 · Equipment Rental 675.98

618.000 · Professional Fees 113,681.27

620.000 · Facilities Rent 777,154.18

621.000 · Equipment Lease 139,673.28

622.000 · Finance Charge 124,792.20

CORPORATE FLIGHT MANAGEMENT, INC

Compiled Income Statement

Year Ended August 31, 2011

 Page 1 of 2
623.000 · Small Equipment 20,888.42

624.000 · Advertising & Promotions 41,012.19

625.000 · Postage & Delivery 5,098.14

630.000 · Web Development Expense 6,138.88

640.000 · Utilities 337,003.25

645.000 · Computer Supplies Exp. 10,247.09

655.000 · Supplies 87,870.04

656.000 · Office Supplies 26,887.91

657.000 · Miscellaneous Expenses 35,182.74

660.000 · Bad Debts 695,007.48

680.000 · Penalties & Fines 9,750.62

690.000 · Taxes 70,246.54

691.000 · Depreciation/Amortization 1,037,472.80

710.000 · Interest Expense 129,643.85

750.000 · Fees 149,397.09

Total Expense 7,543,481.03

Net Ordinary Income -922,926.68

Other Income/Expense

Other Income

490.000 · Miscellaneous Income 281,474.72

700.000 · Interest Income 9,942.56

Total Other Income 291,417.28

Other Expense

760.000 · Loss on Investments -623,451.82

Total Other Expense -623,451.82

Net Other Income 914,869.10

Net Income -8,057.58

 Page 2 of 2
ASSETS

Current Assets

Checking/Savings

100.000 · Cash 252,636.03

101.000 · Petty Cash 900.00

Total Checking/Savings 253,536.03

Accounts Receivable

120.000 · A/R 3,138,541.76

Total Accounts Receivable 3,138,541.76

Other Current Assets

121.000 · Other Accounts Receivable 248,082.37

122.000 · Receivables - Affiliates 1,930,755.79

125.000 · Notes Receivable 23,941.08

130.000 · Inventory 4,179,183.44

131.000 · Plane Inventory 1,350,500.00

135.000 · Prepaids 366,122.87

150.000 · Employee Receivables 56.24

Total Other Current Assets 8,098,641.79

Total Current Assets 11,490,719.58

Fixed Assets

140.000 · Fixed Assets 4,297,451.00

141.000 · Accumulated Depreciation -2,273,197.56

Total Fixed Assets 2,024,253.44

Other Assets

160.000 · Affiliate Interests -110,204.83

Total Other Assets -110,204.83

TOTAL ASSETS 13,404,768.19

LIABILITIES & EQUITY

CORPORATE FLIGHT MANAGEMENT, INC

Compiled Balance Sheet

Year Ended August 31, 2011

 Page 1 of 2
CORPORATE FLIGHT MANAGEMENT, INC

LIABILITIES & EQUITY

Liabilities

Current Liabilities

Accounts Payable

200.000 · Accounts Payable 4,020,866.85

Total Accounts Payable 4,020,866.85

Credit Cards

201.900 · Fifth Third Mastercard 30,504.88

Total Credit Cards 30,504.88

Other Current Liabilities

204.000 · Bank Lines of Credit 587,387.93

205.000 · Current Loans Payable 152,182.96

207.000 · Notes Payable - Owners 30,000.00

210.000 · Accrued Expenses 231,291.38

225.001 · Refundable A/R Deposits 1,676,702.76

230.003 · Refundable Insurance Deposits 163,209.05

Total Other Current Liabilities 2,840,774.08

Total Current Liabilities 6,892,145.81

Long Term Liabilities

206.000 · Long Term Liabilities 4,557,106.37

Total Long Term Liabilities 4,557,106.37

Total Liabilities 11,449,252.18

Equity

300.001 · Net Profit/Retained Earnings 1,939,534.85

300.002 · Capital Stock 10,000.00

301.000 · Paid in Capital 81,885.00

302.000 · Treasury Stock -67,846.26

Net Income -8,057.58

Total Equity 1,955,516.01

TOTAL LIABILITIES & EQUITY 13,404,768.19

 Page 2 of 2
Corporate Flight Management, Inc Year Ended August 31, 2011                                                                   

NOTES TO COMPILED FINANCIAL STATEMENT

August 31, 2011

Note 1 – Financial Statement 

This statement is a compilation of Corporate Flight Management, Inc, (CFM) the operating 

subsidiary of C.F.M. Holdings, Inc. This statement is prepared for the use of the U.S. 

Department of Transportation for the purpose of obtaining Financial Fitness Accreditation. 

Management does not represent that the statements are in compliance with GAAP rules as it 

relates to its affiliates. Generally, a proper representation of the financial information under 

generally accepted accounting principles would require a consolidation of all affiliates where 

ownership by the parent company is greater than fifty percent. In this instance, C.F.M. Holdings, 

would be the parent company. The information presented in this report is a financial 

representation of the operating company only. Affiliate relationships will be noted in the financial 

notes. 

Business Activity. 

Corporate Flight Management, Inc. was incorporated on July 26, 1982, in accordance with the 

Tennessee General Corporation Act. The Company’s primary purpose is to conduct business in 

the field of aviation, charter, maintenance, aircraft management, flight school, brokerage sales 

of aircraft, and the FBO. The main offices and operations of the company are located in 

Smyrna, Tennessee. 

 

Note 2 – Credit Risks 

The company maintains its cash balances in four financial institutions located in Nashville, 

Tennessee. The balances at each bank are insured by the Federal Deposit Insurance 

Corporation. 

Note 3 – Accounts Receivable Trade 

An aging of Accounts Receivable at August 31, 2011 are as follows: 

August 31, 2011 

 Current 2,028,023 

 30 Days 530,894 

 60 Days 147,411 

 90 Days and over 432,212 

 Total Trade Receivables 3,138,540 

Note 4. Accounts Receivable – Affiliates 

During 2010-2011 financial year management closed several affiliate accounts. During the 

period, CFM Automotive, LLC ceased operations. The balance of $24,111 was charged off as 

bad debt. Additionally, management elected to charge off the balance of $501,730 of Wings of 

Eagles, LLC. In the prior periods, the affiliate ceased to operate as a Flight School, but 

remained an active corporation to hold three aircraft and lease it to the new school. The school 

operating loss was recognized at this time because there were no longer any continuing 

operations in the school to repay the debt. Finally, during the period, management closed 
Corporate Flight Management, Inc Year Ended August 31, 2011                                                                   

NOTES TO COMPILED FINANCIAL STATEMENT

August 31, 2011

JetQuik, LLC and folded its aircraft ferry services into the main operating company; a balance 

of $66,501was written off as bad debt. The total affiliate write offs for the period is $592,342. 

Affiliate revenue for the period of $2,365,450 represents 7.8% of total revenue for the company. 

This activity is entirely the work done on behalf of Jetstream Sales, LLC, a 50% partnership 

engaged in the purchase and resale of rebuilt aircraft. 

In accordance to accepted accounting procedures, a portion of the charges to the affiliate 

companies are pass through income that are not credited to revenue accounts. The following 

table describes the revenue and the pass through activity in the affiliate receivable accounts. 

 Affiliate Revenue and Pass Through Activity 

Affiliates 

 Revenue for 

Services to 

Affiliate 

 Pass through 

Charge to 

Affiliate 

Payment or 

Payables from 

the Affiliate 

Net Increase 

(decrease) to 

Affiliate 

Receivable 

 

122.002 · CFM Airport Development 

Co, LLC 0 65,555 63,421 2,134 

 122.003 · CFM Holdings, Inc. 0 100 0 100 

 122.006 · Jetstream Air, LLC 0 199,980 107,241 92,739 

 122.012 · JetStream Sales, LLC 2,254,450 17,657 2,102,039 170,069 

 122.037 · 410 Investors, LLC 0 6,000 0 6,000 

 122.041 · CFM-HL Joint Venture 0 163,853 141,306 22,547 

 2,254,450 453,146 2,414,007 293,589 

Funding for the in-process refurbishment of Jetstream Sales aircraft was provided by the 

affiliate. Average refurbishment costs for the aircraft, a BAE J-32, is in the range of $500,000 to 

$800,000. The debt to the affiliate is recorded in the Affiliate Receivable account. At the close of 

books for the year, one aircraft was in process. The corresponding debt to the affiliate at closing 

is $451,974. 

The following table records the balance on account for the affiliates. 

August 31, 2011 

Jetstream Air, LLC 1,480,877 

Jetstream Sales, LLC -454,975 

CFM Airport Development 183,533 

410 Investors, LLC 75,164 

CFM Holdings, Inc (parent company) 607,662 

CFM Joint Venture 38,494 

Total Accounts Receivable - Affiliate 1,930,755 
Corporate Flight Management, Inc Year Ended August 31, 2011                                                                   

NOTES TO COMPILED FINANCIAL STATEMENT

August 31, 2011

Note 5 - Notes Receivable 

 

Notes receivable consist of two separate notes from Chuck Howell and David Augustin, two of 

the principle owners of the Company. At August 31, 2011 the balances of Notes receivable 

belonging to Howell and Augustin were $2,328 and $12,501 respectively. 

Note 6 - Inventories 

Inventories consisted of the following at year end. 

August 31, 2011 

Aircraft 1,350,500 

Parts 1,436,732 

Work In Process 2,595,401 

Inventory FBO Flight Store 7,623 

Fuel 139,427 

Total Inventory 5,529,683 

Note 7 – Restricted Cash Deposits 

The Company holds insurance in escrow deposits for its managed aircraft fleet, and it also 

secures a stand–by letter of credit with a one year $100,000 Certificate of Deposit. Restricted 

deposits were equal to $290,048. 

Note 8 – Investments 

Investment in related entities consisted of the following at year end: 

 

Affiliate Interest Balance 

Wings of Eagles, LLC -130,652 

JWN Wings of Eagles, LLC 23,056 

CFM –HL Joint Venture -12,225 

MQY Wings of Eagles, LLC -2,909 

Jetstream Sales, LLC 7,237 

JetQuick, LLC -5,288 

Total Investments -110,204 

 

Note 9 - Credit Cards Payable 

The company currently has a $500,000 limit credit card for operating aircraft and parts inventory 

purchases. As of August 31, 2010 the balance was $30,504. 
Corporate Flight Management, Inc Year Ended August 31, 2011                                                                   

NOTES TO COMPILED FINANCIAL STATEMENT

August 31, 2011

Note 10 – Refundable Customer Deposits 

The Company requires customer deposits before undertaking large maintenance projects, 

booking pre-paid blocks flight times, prepaid fuel, or deposits to purchase aircraft. The following 

is a summary of all refundable customer deposits at August 31, 2011. 

August 31, 2011 

Charter 504,405 

Maintenance 601,038 

FBO-Pre-purchases 11,758 

Aircraft Sales Deposits 559,500 

Total Refundable Customer Deposits 1,676,702 

Note 11 – Refundable Insurance Deposits 

The Company offers the managed aircraft owners the opportunity to participate in the 

Company’s fleet insurance program, which usually affords some discounts on premiums due to 

volume buying. As part of the fleet insurance program, the insurance company requires a 

deposit as a reserve against monthly premiums. The Company is obligated to reimburse each 

aircraft owner when the aircraft leaves the insurance program. The balance of refundable 

deposits is $163,209 at the close of the year. 

Note 12 – Notes Payable 

See Schedule B for a schedule of debt. 
Corporate Flight Management, Inc Year Ended August 31, 2011                                                                   

NOTES TO COMPILED FINANCIAL STATEMENT

August 31, 2011

Note 13 – Taxes Payable 

August 31, 2011 

Sales Tax 42,488 

Payroll Taxes 123,912 

State Taxes 47,634 

Federal Taxes - FET 31,691 

Property Taxes 11,602 

County and City Taxes 37,874 

Total Taxes Payable 295,202 

Note 14 – Contingent Liabilities 

See Schedule B for a schedule of debt. 

Note 15 – Other Income 

Income from investments is as follows. 

August 31, 2011 

CFM Auto, LLC (final) 240 

CFM –HL Joint Venture-Interest -2,678 

Wings of Eagles, LLC (debt forgiveness from parent 

company CFM) 243,596 

JWN Wings of Eagles, LLC 23,629 

MQY Wings of Eagles, LLC 20,478 

Jetstream Sales, LLC 284,613 

JetQuick, LLC 53,574 

Total 623,452 

Other income for the year was significantly higher in August 31, 2011 as a result of the debt 

forgiveness (charge offs) of the parent company CFM to its affiliates. This resulted in a much 

higher income flow from the affiliates as the income from the debt forgiveness flowed back to 

the parent company at its percentage of ownership. The result is the $623,452 total income from 

the affiliates. Additionally, CFM sold an engine for $201,010 to Hvizdak Holdings that was 

considered extraordinary and not recorded in regular maintenance revenue. The following is a 

summary of other income for the year. 
Corporate Flight Management, Inc Year Ended August 31, 2011                                                                   

NOTES TO COMPILED FINANCIAL STATEMENT

August 31, 2011

Other Income 

 August 31, 2011 

Income from Affiliates 623,451.82 

Hvizdak Holdings Engine Swap 201,010.56 

Property Tax forgiven 11,977.93 

Forgiveness of Sales Force.com debt (disputed) 51,142.33 

Forgiveness of Finance Charges 6,164.00 

Interest Income 9,942.56 

Miscellaneous 11,179.80 

Total Other Income 914,869.00 
Note Holder Purpose Collateral Principal Balance Monthly Payment Origination Date

Original Note 

Amount Rate 

206.012 Chappell, Tom (564) Debt owed to Chappell at sale of 564HK none 97,735.75 na 08/31/10 125,985.97 0.00%206.014 Chappell Loan fund working capital - paid from sale of 565HK none 285,078.96 1,500.00 03/12/10 300,000.00 6.00% 206.016 Jetstream Sales Down Payment for Phenom Position/ engine swap none 128,500.00 0.00 04/25/08 65,000.00 na 206.018 Ricardo Tostada Balance due from Sale of 913 none 393,928.08 0.00 12/31/08 393,928.08 na 206.019 Civic Bank and Trust Finance of Employee Car Buyout Inv, furn, fixt,equipment, AR 6,042.40 625.00 06/17/09 20,000.00 7.70% 206.022 Reliant Bank Build out 926AE None 17,833.30 737.83 09/14/09 150,000.00 6.50% 

206.107 First Tennessee Tom Chappell Purchase of 564HK. Aircraft 565HK 1,523,560.39 11,453.27 09/17/08 1,801,000.00 3.25% 

206.110 John Floyd Investor Financed 10UP None 463,317.89 0.00 12/21/07 800,000.00 na 206.235 Bancorpsouth Bank Construct FBO and term out West Side FBO Building 887,589.47 8,896.63 07/26/04 1,071,000.00 6.25% 

206.400 Hvizdak Loan Parts Plane #2/unsecured None 117,255.96 0.00 11/29/06 510,000.00 10.00% 206.441 Bancorp South Jeep Wrangler for Blake Tumbleson Jeep Wrangler 9,017.73 593.22 11/20/09 29,358.00 7.75% 

205.023 Civic Bank and Trust Term out of line for CFM Auto $7200 pd down in AR, Inv 3,223.81 477.02 05/31/10 15,368.70 7.25% 204.100 Pinnacle Bank Operating Line of Credit AR, Inv 228,000.00 617.50 10/18/04 250,000.00 5.00% 206.103 Pinnacle Bank Guaranteed Debt by two investors for refurb. CFM 

took the debt and ownership of the asset to 

protect Investors from product liability prot. 

Two J-32 Aircraft 865CY and 858CY

627,324.14 9,840.12 03/11/11 1,420,830.14 5.50% 

204.150 Reliant Bank Line of Credit for planes N917AE, N924AE Two J-32 Aircraft 865CY and 

858CY

359,387.93 05/05/11 450,000.00

TOTALS 5,050,060.06 34,740.59JetStream Air, LLC - Off Balance Sheet

Beacon Federal Acquisition of aircraft Aircraft 242BM 408,215.34 11,114.95 08/17/05 972,000.00 6.57% 

Beacon Federal Rebuild Engine Aircraft 242BM 23,181.56 1,385.05 08/17/05 123,615.00 6.57% First Tennessee Acquisition of aircraft Aircraft 643JX 652,865.50 8,478.59 07/21/05 920,000.00 7.25% 

Pinnacle Acquisition of aircraft Aircraft 657BA 314,908.52 7,212.20 08/12/05 657,801.00 7.75% 

1,399,170.92 28,190.79

CFM Airport Development, LLC - Off Balance Sheet

Regions Bank Refinance acquisition loan Real Estate - 20 Hangar 

Condo Unit at Smyrna Airport

176,906.08 4,514.02 03/31/05 377,044.11 8.30% 176,906.08 4,514.02

Other Notes Off Balance Sheet

Hl Aviaition Hangar 2 at John Tune (recently complteted). This 

note is from HL-CFM Joint Venture. CFM is a comaker on the note. The Hangar is the collateral valued at $1.8M

Real Estate - Hangar 2 John Tune Airport

1,016,510.97 10,000.00 02/19/09 1,153,500.00 6.00% 

Arvest Bank CFM is guarantor on $3,000,000 line of credit to 

Jetstream Sales, LLC. Ken Mourton is personal guarantee and provides significant financial strength in support of the debt. Payments are paid by Ken Mourton. Collateral is seven J-32"s valued at $3.05M

Seven Aircraft, J - 32 BAE purchased at $350,000 per aircraft. Two aircraft interiors.

 7,933.08 1,586,616.26 12/03/07 3,000,000 6.00% 

Regions Bank CFM is guarantor of Wings of Eagles note for 

Flight Simulator (collateral) valued at $100,000

Flight Simulator located at Smyrna Aircraft

 869.35 03/20/08 42,466 8.30% 

15,338

Beacon Federal CFM is guarantor for Note to Wings of Eagles for 

223NH (collateral) valued at 120,000

Aircraft 223NH 54,235 1,145.28 04/06/01 118,079 8.25% 

Beacon Federal CFM is guarantor for note to Wings of Eagles for 

342DS (collateral) valued at $120,000

Aircraft 342DS 57,237 1,778.20 08/24/01 185,710 8.00% 

First Bank Personal Note to John Floyd and Allen Howell. The 

proceeds were used to fund loan to CFM for the acquisition 10UP. Allen Howell is a related party to CFM as a 38% owner

Aircraft 10UP 585,591.11 2,927.96 12/21/07 800,000.00 6.00% 

 24,653.87 3,315,528

Grand Total 9,941,664.76 92,099.27

Corporate Flight Management, Inc

Schedule of Debt

August 31, 2011
Corporate Flight Management, Inc. 

Smyrna, Tennessee 

Compiled Financial Statements 

Year Ended August 31, 2012 
Ordinary Income/Expense

Income

4001000 · Administration 64,440.00

4002000 · Charter Flight Operations 14,547,978.50

4003000 · Fixed Base Operations-FBO 6,876,212.71

4006000 · Maintenance 11,896,902.71

4007000 · Aircraft Sales and Leasing 1,495,376.40

Total Income 34,880,910.32

Cost of Goods Sold

5002000 · Charter Flight Dept. 12,194,454.04

5003000 · FBO- Fixed Base Operations 4,960,512.75

5006000 · Maintenance Dept. 9,214,678.53

5007000 · Aircraft Sales/Leasing Dept. 1,141,871.78

Total COGS 27,511,517.10

Gross Profit 7,369,393.22

Expense

6000000 · Personnel Expenses 3,748,094.06

6000100 · Advertising & Promotions 45,530.54

6000200 · Bad Debts -63,861.95

6000300 · Building Repairs/Maintenance 97,655.88

6000400 · Contributions/Donations 8,351.81

6000500 · Depreciation/Amortization 340,055.44

6000600 · Dues and Subscriptions 109,935.50

6000700 · Equipment Expense 190,555.19

6000800 · Facilities Rent 857,328.10

6000900 · Fees/Penalties/Fines 264,818.77

6001000 · Insurance Expense 322,856.21

6001100 · Interest Expense 158,714.64

6001200 · License & License Fees 6,202.00

6001300 · Postage & Delivery 4,536.52

6001400 · Professional Fees 121,747.07

6001500 · Small Equipment 30,026.15

6001600 · Supplies 139,978.51

6001700 · Taxes 90,177.34

6001800 · Travel Expenses 112,807.45

6001900 · Utilities 353,610.82

6002000 · Vehicle Expense 55,209.51

6002005 · Web Development Expense 9,444.60

Total Expense 7,003,774.16

CORPORATE FLIGHT MANAGEMENT, INC

Compiled Income Statement

Year Ended August 31, 2012

 <1 of 2>
CORPORATE FLIGHT MANAGEMENT, INC

Net Ordinary Income 365,619.06

Other Income/Expense

Other Income

7000000 · Interest Income 189.34

7000050 · Miscellaneous Income 101,659.32

7000105 · Gain(Loss) on Investments 63,055.60

7000200 · Future Investmnt/Developmnt -131,952.61

Total Other Income 32,951.65

Net Other Income 32,951.65

Net Income 398,570.71

 <2 of 2>
ASSETS

Current Assets

Checking/Savings

1000000 · Bank Accounts -190,013.15

1010000 · Cash/ Restricted 264,738.51

Total Checking/Savings 74,725.36

Accounts Receivable

1200000 · Accounts Receivable 3,822,724.23

Total Accounts Receivable 3,822,724.23

Other Current Assets

1210000 · Other Accounts Receivable 273,517.16

1220000 · Receivables - Affiliates 2,848,938.06

1250000 · Notes Receivable 14,839.06

1300000 · Inventory 4,118,144.27

1350000 · Prepaid Assets 398,889.89

1500000 · Employee Receivables 996.21

Total Other Current Assets 7,655,324.65

Total Current Assets 11,552,774.24

Fixed Assets

1400000 · Fixed Assets 4,467,733.20

1410000 · Accumulated Depreciation -1,907,742.98

Total Fixed Assets 2,559,990.22

Other Assets

1600000 · Affiliated Interests 16,350.45

Total Other Assets 16,350.45

TOTAL ASSETS 14,129,114.91

LIABILITIES & EQUITY

Liabilities

Current Liabilities

Accounts Payable

2000000 · Accounts Payable 4,332,455.49

Total Accounts Payable 4,332,455.49

CORPORATE FLIGHT MANAGEMENT, INC

Compiled Balance Sheet

Year Ended August 31, 2012

 <1 of 2>
CORPORATE FLIGHT MANAGEMENT, INC

Credit Cards

2010000 · Credit Card 47,952.06

Total Credit Cards 47,952.06

Other Current Liabilities

2040000 · Bank Lines of Credit 143,000.00

2050000 · Current Loans Payable 167,667.36

2070000 · Notes Payable - Owners 17,000.00

2100000 · Accrued Expenses 111,471.66

2250000 · Prepaid Accts Receivable 1,766,595.31

2300000 · Refundable Insurance Deposits 108,634.25

Total Other Current Liabilities 2,314,368.58

Total Current Liabilities 6,694,776.13

Long Term Liabilities

2060000 · Long Term Liabilities 4,662,154.25

Total Long Term Liabilities 4,662,154.25

Total Liabilities 11,356,930.38

Equity

3000000 · Equity 24,038.74

3000090 · Retained Earnings 2,349,575.08

Net Income 398,570.71

Total Equity 2,772,184.53

TOTAL LIABILITIES & EQUITY 14,129,114.91

 <2 of 2>
Corporate Flight Management, Inc Year Ended August 31, 2012                                                                   

NOTES TO COMPILED FINANCIAL STATEMENT

August 31, 2012

Note 1 – Financial Statement 

This statement is a compilation of Corporate Flight Management, Inc, (CFM) the operating 

subsidiary of C.F.M. Holdings, Inc. This statement is prepared for the use of the U.S. 

Department of Transportation for the purpose of obtaining Financial Fitness Accreditation. 

Management does not represent that the statements are in compliance with GAAP rules as it 

relates to its affiliates. Generally, a proper representation of the financial information under 

generally accepted accounting principles would require a consolidation of all affiliates where 

ownership by the parent company is greater than fifty percent. In this instance, C.F.M. Holdings, 

would be the parent company. The information presented in this report is a financial 

representation of the operating company only. Affiliate relationships will be noted in the financial 

notes. 

Business Activity. 

Corporate Flight Management, Inc. was incorporated on July 26, 1982, in accordance with the 

Tennessee General Corporation Act. The Company’s primary purpose is to conduct business in 

the field of aviation, charter, maintenance, aircraft management, flight school, brokerage sales 

of aircraft, and the FBO. The main offices and operations of the company are located in 

Smyrna, Tennessee. 

 

Note 2 – Credit Risks 

The company maintains its cash balances in four financial institutions located in Nashville, 

Tennessee. The balances at each bank are insured by the Federal Deposit Insurance 

Corporation. 

Note 3 – Accounts Receivable Trade 

An aging of Accounts Receivable at August 31, 2012 are as follows: 

August 31, 2012 

 Current 2,275,575 

 30 Days 369,063 

 60 Days 147,341 

 90 Days and over 1,030,743 

 Total Trade Receivables 3,822,724 

A listing of significant greater than 90 days accounts receivable are as follows: 

August 31, 2012 

BVI Airways 202,069.06 

Diamond Air Inc.- Parent Co. 22,869.29 

Jeffy Jet, LLC 16,505.50 

Jet Finance Group , LLC 107,013.58 

M.A.S 3, Inc. 176,327.64 
Corporate Flight Management, Inc Year Ended August 31, 2012                                                                   

NOTES TO COMPILED FINANCIAL STATEMENT

August 31, 2012

N6045S LLC 204,748.51 

Social Flights,Inc 102,500.73 

United States Aviation UW 18,089.07 

V1 Leasing - 41043 320UE 38,156.05 

V1 Leasing - 41063 325UE 67,864.47 

TOTAL 956,143.90 

Management has elected to use a direct write off method of bad debt. Consequently, debt that 

has a resolution remains in our Accounts Receivable account. The following is a brief status of 

each debt. 

BVI Airways is an American firm operating in the British Virgin Isles. The debt is at risk and 

may not be collectible 

Diamond Air Charter member charter invoices will be collected with the sale of refurbished 

King Air N6045S. Completion of the aircraft is anticipated in December 2012. The balance is not 

considered at risk. 

Jeffy Jet, LLC’s aircraft was destroyed in a tornado. Settlement is pending. A deposit is held by 

CFM for $35,000. No loss will be incurred. 

Jet Finance Group, LLC, the balance for an engine upgrade on 320UE is uncollectible. The 

work was done so that the aircraft could be sold and cleared from debt obligation. 

M.A.S 3, Inc. is repair invoices from a long time customer who was unable to pay the latest 

invoices. The aircraft is in our possession and on the market for sale. Proceeds of sale will pay 

the balance. 

N6045S LLC will be settled when the aircraft refurbishment is completed and the aircraft is sold 

to one of the current members. The balance is not at risk. 

Social Flights represents incubation capital of a new start up internet marketing firm. The debt 

is at risk. 

United States Aviation UW is a maintenance customer that is disputing insurance claim for 

loss from aircraft damage. The matter is expected to be settled and CFM paid in full in the 

following quarter. 

V1 Leasing the balance represents losses incurred from refurbishment and resale of the two 

aircraft. Balances remain open to settle accounts on the third airplane (319UE). 
Corporate Flight Management, Inc Year Ended August 31, 2012                                                                   

NOTES TO COMPILED FINANCIAL STATEMENT

August 31, 2012

Note 4. Accounts Receivable – Affiliates 

Affiliate revenue for the period of $1,897,464 represents 5.4% of total revenue for the company. 

This activity is entirely the work done on behalf of Jetstream Sales, LLC, a 50% partnership 

engaged in the purchase and resale of rebuilt aircraft. 

In accordance to accepted accounting procedures, a portion of the charges to the affiliate 

companies are pass through income that are not credited to revenue accounts. The following 

table describes the revenue and the pass through activity in the affiliate receivable accounts. 

 Affiliate Revenue and Pass Through Activity 

Affiliates 

 Revenue for 

Services to 

Affiliate 

 Pass through 

Charge to 

Affiliate 

Payment or 

Payables from 

the Affiliate 

Net Increase 

(decrease) to 

Affiliate 

Receivable 

 

122.002 · CFM Airport Development 

Co, LLC 0 68,297 60,749 7,549 

 122.003 · CFM Holdings, Inc. 0 42,696 0 42,696 

 122.006 · Jetstream Air, LLC 0 196,558 36,660 159,898 

 122.012 · JetStream Sales, LLC 1,897,464 669,389 1,868,434 698,419 

 122.041 · CFM-HL Joint Venture 0 213,185 128,400 84,785 

 1,897,464 1,190,126 2,094,243 993,346 

The following table records the balance on account for the affiliates. 

August 31, 2012 

Jetstream Air, LLC 1,640,775 

Jetstream Sales, LLC 243,444 

CFM Airport Development 191,082 

CFM Holdings, Inc (parent company) 650,358 

CFM-HL Joint Venture 123,279 

Total Accounts Receivable - Affiliate 2,848,938 

Note 5 - Notes Receivable 

 

Notes receivable consist of two separate notes from Chuck Howell and David Augustin, two of 

the principle owners of the Company. At August 31, 2012 the balances of Notes receivable 

belonging to Howell and Augustin were $2,328 and $12,510 respectively. 
Corporate Flight Management, Inc Year Ended August 31, 2012                                                                   

NOTES TO COMPILED FINANCIAL STATEMENT

August 31, 2012

Note 6 - Inventories 

Inventories consisted of the following at year end. 

August 31, 2012 

Aircraft 1,898,921 

Parts 1,255,395 

Work In Process 765,479 

Inventory FBO Flight Store 7,011 

Fuel 191,338 

Total Inventory 4,118,144 

Note 7 – Restricted Cash Deposits 

The Company holds insurance in escrow deposits for its managed aircraft fleet, and it also 

secures a stand–by letter of credit with a one year $100,000 Certificate of Deposit. Restricted 

deposits were equal to $263,838. 

Note 8 – Investments 

Investment in related entities consisted of the following at year end: 

 

Affiliate Interest Balance 

Wings of Eagles, LLC 1,793 

JWN Wings of Eagles, LLC 14,966 

CFM –HL Joint Venture -12,225 

MQY Wings of Eagles, LLC -72,909 

Jetstream Sales, LLC 75,954 

Total Investments 7,579 

 

Note 9 - Credit Cards Payable 

The company currently has a $500,000 limit credit card for operating aircraft and parts inventory 

purchases. As of August 31, 2012 the balance was $47,952. 
Corporate Flight Management, Inc Year Ended August 31, 2012                                                                   

NOTES TO COMPILED FINANCIAL STATEMENT

August 31, 2012

Note 10 – Refundable Customer Deposits 

The Company requires customer deposits before undertaking large maintenance projects, 

booking pre-paid blocks flight times, prepaid fuel, or deposits to purchase aircraft. The following 

is a summary of all refundable customer deposits at August 31, 2012. 

August 31, 2012 

Charter 745,943 

Maintenance 223,893 

FBO-Pre-purchases 157,561 

Leasing/Sales 639,197 

Total Refundable Customer Deposits 1,766,595 

Note 11 – Refundable Insurance Deposits 

The Company offers the managed aircraft owners the opportunity to participate in the 

Company’s fleet insurance program, which usually affords some discounts on premiums due to 

volume buying. As part of the fleet insurance program, the insurance company requires a 

deposit as a reserve against monthly premiums. The Company is obligated to reimburse each 

aircraft owner when the aircraft leaves the insurance program. The balance of refundable 

deposits is $108,634 at the close of the year. 

Note 12 – Notes Payable 

See Schedule B for a schedule of debt. 

Note 13 – Taxes Payable 

August 31, 2012 

Payroll Taxes 3,730 

City and County Taxes 50,681 

Sales Tax 42,938 

Federal Taxes - FET 61,279 

State Taxes 71,030 

Total Taxes Payable 229,658 
Corporate Flight Management, Inc Year Ended August 31, 2012                                                                   

NOTES TO COMPILED FINANCIAL STATEMENT

August 31, 2012

Note 14 – Contingent Liabilities 

See Schedule B for a schedule of debt. 

Note 15 – Other Income 

Income from investments is as follows. 

August 31, 2012 

Loss from sale of Phenom 100 Position on Aircraft -75,000 

Wings of Eagles, LLC Income from aircraft sale 132,445 

JWN WOE K-1 -8,090 

MQY Wings of Eagles 31,804 

Jetstream Sales, LLC -19,446 

CFM – HL Joint Venture -3,158 

Jetquick -429 

Gain on sale of asset 4,929 

Total 63,055.60 
C.F.M. Holding, Inc.

Smyrna, Tennessee

Compiled Financial Statements

Year Ending August 31, 2010
 CFM Holdings, Inc.

 Compiled Statement of Profit & Loss

 September 1 2009 through August 31 2010

Sep '09 - Aug 10

Ordinary Income/Expense

Expense

Interest Expense

Finance Charge 0.00

Total Interest Expense 0.00

Licenses and Permits 20.00

Penalties 2,133.00

Taxes

Federal 0.00

Local 100.00

State 100.00

Total Taxes 200.00

Total Expense 2,353.00

Net Ordinary Income -2,353.00

Other Income/Expense

Other Income

Gain (Loss) From Investments 229,828.00

Total Other Income 229,828.00

Net Other Income 229,828.00

Net Income 227,475.00

 Page 3 of 8
 CFM Holdings, Inc.

 Compiled Balance Sheet

 As of August 31, 2010

UNAUDITED

Aug 31, 10

ASSETS

Current Assets

Other Current Assets

Due From Stockholders -41,863.67

Prepaid Taxes 0.00

Total Other Current Assets -41,863.67

Total Current Assets -41,863.67

Other Assets

Investment - Corp. Flight Mgmt. 255,376.00

Investment in GBA Gyroplanes 138,472.00

Investment in Jetstream Air -1,282,357.00

Total Other Assets -888,509.00

TOTAL ASSETS -930,372.67

LIABILITIES & EQUITY

Liabilities

Current Liabilities

Other Current Liabilities

Accrued F&E Tax 100.00

Due To CFM Airport Development 17,316.33

Due to Corp. Flight Mgmt. 607,561.60

Total Other Current Liabilities 624,977.93

Total Current Liabilities 624,977.93

Total Liabilities 624,977.93

Equity

Capital Stock 255,376.00

Retained Earnings -2,038,201.60

Net Income 227,475.00

Total Equity -1,555,350.60

TOTAL LIABILITIES & EQUITY -930,372.67

 Page 4 of 8
C.F.M. Holding, Inc.

Notes to Compiled Financial Statements:  Fiscal Year 2010

Note 1 – Compiled Financial Statement 

This statement is a compilation of C.F.M. Holdings, Inc. This statement is prepared for the use 

of the U.S. Department of Transportation for the purpose of obtaining Financial Fitness 

Accreditation. Management does not represent that the statements are in compliance with 

GAAP rules as it relates to its affiliates. Generally, a proper representation of the financial 

information under generally accepted accounting principles would require a consolidation of all 

affiliates where ownership by the parent company is greater than fifty percent. At August 31, 

2010, C.F.M. Holdings, Inc. had an ownership interest in the following business entities: 

 Corporate Flight Management, Inc. 

 GBA Gyroplanes 

 Jetstream Air 

The information presented in this report is a financial representation of the holding company 

only. 

Note 2 – Accounts Receivable Trade 

There are no trade accounts receivable for the period for the Holding Company 

Note 3 – Due From Stockholders 

The -$41,863 .67 is loss from an investment in Courier Logistics, Inc that occurred in 2004. The 

account is misclassified and should be in other assets and not in current liabilities. 

Note 4 - Inventories 

There are no inventories held by the holding company 

Note 5 – Investments 

Investment in related entities consisted of the following as of August 31, 2010: 

Corporate Flight Management, Inc $ 255,376 

GBA Gyroplanes $ 138,472 

Jetstream Air, Inc. -$1,282,357 

Total Investments -$ 888,509 

Note 6 - Liabilities 

CFM Holdings has intercompany debt to Corporate Flight Management, Inc. in the amount of 

$607,562 which represents taxes, license, and fees that the operating company, Corporate 

Flight Management, Inc. has paid on behalf of C.F.M. Holding, Inc. In addition $17,316 is owed 

to CFM Airport Development, a commonly held company by the owners of C.F.M Holdings, Inc. 
C.F.M. Holding, Inc.

Smyrna, Tennessee

Compiled Financial Statements

Year Ending August 31, 2011
 CFM Holdings, Inc.

 Compiled Statement of Profit & Loss

 September 1 2010 through August 31 2011

Sep '10 - Aug 11

Ordinary Income/Expense

Expense

Interest Expense

Finance Charge 0.00

Total Interest Expense 0.00

Licenses and Permits 0.00

Penalties 0.00

Taxes

Federal 0.00

Local 0.00

State 100.00

Total Taxes 100.00

Total Expense 100.00

Net Ordinary Income -100.00

Other Income/Expense

Other Income

Gain (Loss) From Investments 71,340.00

Total Other Income 71,340.00

Net Other Income 71,340.00

Net Income 71,240.00

 Page 5 of 8
 CFM Holdings, Inc.

 Compiled Balance Sheet

 As of August 31, 2011

UNAUDITED

Aug 31, 11

ASSETS

Current Assets

Other Current Assets

Due From Stockholders -41,863.67

Prepaid Taxes 0.00

Total Other Current Assets -41,863.67

Total Current Assets -41,863.67

Other Assets

Investment - Corp. Flight Mgmt. 255,376.00

Investment in GBA Gyroplanes 138,472.00

Investment in Jetstream Air -1,211,017.00

Total Other Assets -817,169.00

TOTAL ASSETS -859,032.67

LIABILITIES & EQUITY

Liabilities

Current Liabilities

Other Current Liabilities

Accrued F&E Tax 100.00

Due To CFM Airport Development 17,316.33

Due to Corp. Flight Mgmt. 607,661.60

Total Other Current Liabilities 625,077.93

Total Current Liabilities 625,077.93

Total Liabilities 625,077.93

Equity

Capital Stock 255,376.00

Retained Earnings -1,810,726.60

Net Income 71,240.00

Total Equity -1,484,110.60

TOTAL LIABILITIES & EQUITY -859,032.67

 Page 6 of 8
C.F.M. Holding, Inc.

Notes to Compiled Financial Statements:  Fiscal Year 2011

Note 1 – Compiled Financial Statement 

This statement is a compilation of C.F.M. Holdings, Inc. This statement is prepared for the use 

of the U.S. Department of Transportation for the purpose of obtaining Financial Fitness 

Accreditation. Management does not represent that the statements are in compliance with 

GAAP rules as it relates to its affiliates. Generally, a proper representation of the financial 

information under generally accepted accounting principles would require a consolidation of all 

affiliates where ownership by the parent company is greater than fifty percent. At August 31, 

2011, C.F.M. Holdings, Inc. had an ownership interest in the following business entities: 

 Corporate Flight Management, Inc. 

 GBA Gyroplanes 

 Jetstream Air 

The information presented in this report is a financial representation of the holding company 

only. 

Note 2 – Accounts Receivable Trade 

There are no trade accounts receivable for the period for the Holding Company 

Note 3 – Due From Stockholders 

The -$41,863 .67 is loss from an investment in Courier Logistics, Inc that occurred in 2004. The 

account is misclassified and should be in other assets and not in current liabilities. 

Note 4 - Inventories 

There are no inventories held by the holding company 

Note 5 – Investments 

Investment in related entities consisted of the following as of August 31, 2011: 

Corporate Flight Management, Inc $ 255,376 

GBA Gyroplanes $ 138,472 

Jetstream Air, Inc. -$1,211,017 

Total Investments -$ 817,169 

Note 6 - Liabilities 

CFM Holdings has intercompany debt to Corporate Flight Management, Inc. in the amount of 

$607,662 which represents taxes, license, and fees that the operating company, Corporate 

Flight Management, Inc. has paid on behalf of C.F.M. Holding, Inc. In addition $17,316 is owed 

to CFM Airport Development, a commonly held company by the owners of C.F.M Holdings, Inc. 
C.F.M. Holding, Inc.

Smyrna, Tennessee

Compiled Financial Statements

Year Ending August 31, 2012
 CFM Holdings, Inc.

 Compiled Statement of Profit & Loss

 September 1 2011 through August 31 2012

Sep '11 - Aug 12

Ordinary Income/Expense

Expense

Interest Expense

Finance Charge 13.49

Total Interest Expense 13.49

Licenses and Permits 0.00

Penalties 2,312.52

Taxes

Federal 20,090.00

Local 0.00

State 0.00

Total Taxes 20,090.00

Total Expense 22,416.01

Net Ordinary Income -22,416.01

Other Income/Expense

Other Income

Gain (Loss) From Investments 0.00

Total Other Income 0.00

Net Other Income 0.00

Net Income -22,416.01

 Page 7 of 8
 CFM Holdings, Inc.

 Compiled Balance Sheet

 As of August 31, 2012

UNAUDITED

Aug 31, 12

ASSETS

Current Assets

Other Current Assets

Due From Stockholders -41,863.67

Prepaid Taxes 20,280.00

Total Other Current Assets -21,583.67

Total Current Assets -21,583.67

Other Assets

Investment - Corp. Flight Mgmt. 255,376.00

Investment in GBA Gyroplanes 138,472.00

Investment in Jetstream Air -1,282,357.00

Total Other Assets -888,509.00

TOTAL ASSETS -910,092.67

LIABILITIES & EQUITY

Liabilities

Current Liabilities

Other Current Liabilities

Accrued F&E Tax 100.00

Due To CFM Airport Development 17,316.33

Due to Corp. Flight Mgmt. 650,357.61

Total Other Current Liabilities 667,773.94

Total Current Liabilities 667,773.94

Total Liabilities 667,773.94

Equity

Capital Stock 255,376.00

Retained Earnings -1,810,826.60

Net Income -22,416.01

Total Equity -1,577,866.61

TOTAL LIABILITIES & EQUITY -910,092.67

 Page 8 of 8
C.F.M. Holding, Inc.

Notes to Compiled Financial Statements:  Fiscal Year 2012

Note 1 – Compiled Financial Statement 

This statement is a compilation of C.F.M. Holdings, Inc. This statement is prepared for the use 

of the U.S. Department of Transportation for the purpose of obtaining Financial Fitness 

Accreditation. Management does not represent that the statements are in compliance with 

GAAP rules as it relates to its affiliates. Generally, a proper representation of the financial 

information under generally accepted accounting principles would require a consolidation of all 

affiliates where ownership by the parent company is greater than fifty percent. At August 31, 

2012, C.F.M. Holdings, Inc. had an ownership interest in the following business entities: 

 Corporate Flight Management, Inc. 

 GBA Gyroplanes 

 Jetstream Air 

The information presented in this report is a financial representation of the holding company 

only. 

Note 2 – Accounts Receivable Trade 

There are no trade accounts receivable for the period for the Holding Company 

Note 3 – Due From Stockholders 

The -$41,863 .67 is loss from an investment in Courier Logistics, Inc that occurred in 2004. The 

account is misclassified and should be in other assets and not in current liabilities. 

Note 4 - Inventories 

There are no inventories held by the holding company 

Note 5 – Investments 

Investment in related entities consisted of the following as of August 31, 2012: 

Corporate Flight Management, Inc $ 255,376 

GBA Gyroplanes $ 138,472 

Jetstream Air, Inc. -$1,282,357 

Total Investments -$ 888,509 

Note 6 - Liabilities 

CFM Holdings has intercompany debt to Corporate Flight Management, Inc. in the amount of 

$650,358 which represents taxes, license, and fees that the operating company, Corporate 

Flight Management, Inc. has paid on behalf of C.F.M. Holding, Inc. In addition $17,316 is owed 

to CFM Airport Development, a commonly held company by the owners of C.F.M Holdings, Inc. 
CORPORATE FLIGHT MANAGEMENT, INC. 

Smyrna, Tennessee 

Compiled Financial Statements 

April 30, 2013 
 Corporate Flight Management, Inc.

 Compiled Balance Sheet

 As of April 30, 2013

UNAUDITED

Apr 30, 13

ASSETS

Current Assets

Checking/Savings

1000000 · Bank Accounts

1000110 · Capital Bank

1000115 · Capital Operating-8406 100.00

1000118 · Capital-Special-7106 100.00

Total 1000110 · Capital Bank 200.00

1000210 · Pinnacle

1000204 · Pinnacle Operating-2526 -140,843.01

1000205 · Pinnacle -JWN ZBA-2598 -848.70

1000206 · Pinnacle -MQY ZBA-2566 -29,466.47

1000207 · Pinnacle-Special Escrow-2534 204.53

1000208 · Pinnacle- Payroll-4422 -62,310.27

Total 1000210 · Pinnacle -233,263.92

1000211 · Regions

1000101 · Regions Operating-7653 9,449.66

1000103 · Regions Special Escrow-0801 6,806.35

Total 1000211 · Regions 16,256.01

1000212 · Other

1000320 · Cap Star - 61720 90.17

1000340 · Fifth Third merchant-7360851211 21,220.21

1000345 · Pay Pal 230.18

Total 1000212 · Other 21,540.56

Total 1000000 · Bank Accounts -195,267.35

1010000 · Cash/ Restricted

1010005 · Petty Cash - MQY 700.00

1010010 · Petty Cash - JWN 200.00

1010015 · Restricted Deposits 148,762.51

Total 1010000 · Cash/ Restricted 149,662.51

Total Checking/Savings -45,604.84

Accounts Receivable

1200000 · Accounts Receivable 2,695,363.45

Total Accounts Receivable 2,695,363.45

Other Current Assets

 <1 of 9>
 Corporate Flight Management, Inc.

 Compiled Balance Sheet

 As of April 30, 2013

UNAUDITED

Apr 30, 13

12000 · Undeposited Funds -795.40

1210000 · Other Accounts Receivable

1210050 · Officer Receivable A. Howell 88,194.94

1210075 · Officer Receivable - D Augustin 197,186.04

1210076 · Social Flights Receivable 165,125.98

1210077 · MAS Receivable 225,753.72

1210078 · Jet Finance Receivable 107,013.58

Total 1210000 · Other Accounts Receivable 783,274.26

1220000 · Receivables - Affiliates

1220005 · CFM Airport Development Co, LLC 196,870.37

1220010 · CFM Holdings, Inc. 650,487.61

1220015 · Jetstream Air, LLC 1,300,104.26

1220020 · JetStream Sales, LLC 6,572.12

1220055 · CFM-HL Joint Venture 123,438.88

Total 1220000 · Receivables - Affiliates 2,277,473.24

1250000 · Notes Receivable

1250020 · Note Receivable-D.Augustin 12,510.35

Total 1250000 · Notes Receivable 12,510.35

1300000 · Inventory

1300100 · Inventory Fuel and Oil

1300110 · Jet Fuel Inventory-JWN 36,234.92

1300115 · Avgas Inventory-JWN 58,788.85

1300120 · Oil & Supply Inventory-JWN 3,273.20

1300125 · Jet Fuel Inventory-MQY 38,872.39

1300130 · Avgas Inventory-MQY 36,830.14

1300140 · Oil & Supply Inventory-MQY 1,226.39

1300150 · Jet Fuel Inventory-DXR 42,244.63

Total 1300100 · Inventory Fuel and Oil 217,470.52

1300200 · Inventory Flight Store

1300205 · Flight Store Inventory-JWN 5,652.56

1300210 · Flight Store Inventory-MQY 2,266.98

Total 1300200 · Inventory Flight Store 7,919.54

1300300 · Inventory Mtx Parts

1300305 · Parts Inventory - MQY 1,520,564.83

1300310 · Cores-Engines 60,000.00

1300315 · Cores Inventory-MQY 167,298.62

1300320 · Work in Progress-MQY 611,197.37

Total 1300300 · Inventory Mtx Parts 2,359,060.82

 <2 of 9>
 Corporate Flight Management, Inc.

 Compiled Balance Sheet

 As of April 30, 2013

UNAUDITED

Apr 30, 13

1300400 · Inventory Planes

1300405 · N10UP 800,000.00

1300410 · N858CY 1,098,920.70

Total 1300400 · Inventory Planes 1,898,920.70

Total 1300000 · Inventory 4,483,371.58

1350000 · Prepaid Assets

1350100 · Prepaid Insurance Policies 493,318.67

1350200 · Prepaid Inventory/Contractors

1350205 · Airport Interior 1,393.28

1350208 · Honeywell UK 14,090.22

1350209 · Garmin 3,146.25

1350211 · API 49,793.43

1350215 · BAE 862.07

1350216 · MQY WOE 150.00

1350221 · APPH Runcorn, Inc. 1,682.97

1350223 · Learjet/Bombardier 50,860.54

1350226 · Safetech 160.50

1350227 · Universal Avionics 912.50

1350228 · Rockwell Collins 7,710.00

1350230 · EJP/Syracuse 14,040.00

1350234 · The Body Shop For You 150.00

1350238 · Duncan Aviation 343.20

1350251 · Newark 50.34

1350252 · Dixie Aerospace 145.78

1350253 · Sandel Avionics 310.00

1350254 · Miehlke, Ron 200.00

1350255 · Avidyne 750.00

1350256 · Aviation Inventory Resources -325.00

Total 1350200 · Prepaid Inventory/Contractors 146,426.08

1350300 · Prepaid Taxes 10,600.00

Total 1350000 · Prepaid Assets 650,344.75

1500000 · Employee Receivables

1500010 · Misc. Employees 499.32

1500020 · Martin, Richard L 1,306.86

Total 1500000 · Employee Receivables 1,806.18

Total Other Current Assets 8,207,984.96

 <3 of 9>
 Corporate Flight Management, Inc.

 Compiled Balance Sheet

 As of April 30, 2013

UNAUDITED

Apr 30, 13

Total Current Assets 10,857,743.57

Fixed Assets

1400000 · Fixed Assets

1400101 · Computer Equip & Sftwre-JWN 5,957.00

1400102 · Computer Equip & Sftwre-MQY-FBO 6,161.75

1400103 · Computer Equip & Sftwre-MQY-MTX 49,817.35

1400104 · Computer Equip & Software-ADM 112,812.56

1400105 · Computer Equip & Software-Chrtr 39,550.64

1400107 · Software-Mtx 60,482.25

1400201 · Furniture & Fixtures - JWN 23,162.24

1400202 · Furniture & Fixtures New FBO 62,991.00

1400203 · Furniture & Fixtures - MQY 176,362.86

1400205 · Furniture & Fixtures - Charter 44,089.41

1400301 · Ground Service Equipment-JWN 13,254.25

1400303 · Ground Service Equipment-MQY 56,890.53

1400304 · Ground Service Equipment-DXR 19,090.00

1400402 · Hangers & Other Bldgs 1,351,269.00

1400501 · Leasehold Improvements-JWN 101,138.91

1400503 · Leasehold Improvements-MQY 264,858.93

1400504 · Leasehold Improvements-DXR 8,250.77

1400601 · Radio & Comm Equipment 4,870.42

1400703 · Shop Equipment-MQY 285,492.32

1400800 · Transportation-Planes 1,710,545.84

1400801 · Transportation Equipment 85,752.17

Total 1400000 · Fixed Assets 4,482,800.20

1410000 · Accumulated Depreciation

1410001 · Accum. Amortization-LI -283,501.12

1410002 · Accum. Depn - Hanger & Bldgs -316,007.96

1410003 · Accum. Depn-Furn. & Fixtures -465,394.36

1410004 · Accum. Depn-Shop Equipment -289,530.59

1410005 · Accum. Depn - Planes -613,862.89

1410006 · Accum Depn - Transp Equip. -127,553.98

Total 1410000 · Accumulated Depreciation -2,095,850.90

Total Fixed Assets 2,386,949.30

Other Assets

1600000 · Affiliated Interests

1600003 · CFM-HL Joint Venture-Interest -2,225.00

1600025 · JetStream Sales-Interest -123,625.35

 <4 of 9>
 Corporate Flight Management, Inc.

 Compiled Balance Sheet

 As of April 30, 2013

UNAUDITED

Apr 30, 13

1600030 · JWN Wings of Eagles-Interest 14,966.00

1600035 · MQY Wings of Eagles Interest -97,909.00

1600045 · Wings of Eagles Interest -9,707.00

1600046 · Goose 5 LP Interest 140,000.00

Total 1600000 · Affiliated Interests -78,500.35

Total Other Assets -78,500.35

TOTAL ASSETS 13,166,192.52

LIABILITIES & EQUITY

Liabilities

Current Liabilities

Accounts Payable

2000000 · Accounts Payable 4,513,927.29

Total Accounts Payable 4,513,927.29

Credit Cards

2010000 · Credit Card

2019000 · Fifth Third Mastercard

2019005 · Allen - 6843 6,350.36

2019007 · Davidson - 0966 268.00

2019010 · Anderson - 8213 157.73

2019015 · Augustin - 9994/9391 -688.90

2019016 · Austin - 5561 61.98

2019025 · Barnum - 8529 3.35

2019041 · Brusch - 5760 -165.00

2019045 · Bullard - 1419 1,063.97

2019081 · Davis - 2723 285.00

2019090 · Denson - 5845 106.04

2019101 · Follis - 4731 473.83

2019102 · Cate - 1330 8,778.56

2019115 · Hart - 5878 81.95

2019120 · Hartle - 4721 605.75

2019140 · Hunsicker - 5910 257.95

2019141 · Jacks - 1643 218.80

2019166 · Norred - 5132 141.85

2019191 · Redding - 5553 575.00

2019196 · Ross - 8308 188.52

2019211 · Stevens S - 8282 1,370.18

2019216 · Szabo - 3145 115.00

2019230 · Warnecke - 1443 313.73

Total 2019000 · Fifth Third Mastercard 20,563.65

 <5 of 9>
 Corporate Flight Management, Inc.

 Compiled Balance Sheet

 As of April 30, 2013

UNAUDITED

Apr 30, 13

Total 2010000 · Credit Card 20,563.65

Total Credit Cards 20,563.65

Other Current Liabilities

2040000 · Bank Lines of Credit

2040001 · Bank Line of Credit 500,000.00

Total 2040000 · Bank Lines of Credit 500,000.00

2050000 · Current Loans Payable

2050002 · First Insurance Funding Group 443,039.60

Total 2050000 · Current Loans Payable 443,039.60

2070000 · Notes Payable - Owners

2070002 · Notes Payable - A.Howell 4,500.00

2070003 · Notes Payable - D.Cate 2,500.00

Total 2070000 · Notes Payable - Owners 7,000.00

2100000 · Accrued Expenses

2100002 · Workers Comp 7,611.08

2100003 · BCBS -72,066.97

2100004 · Dental -10,327.24

2100005 · Vision -1,459.11

2100006 · FSA 4,316.29

2100007 · Life, LTD and STD 4,117.15

2100008 · Accrued Misc. Expenses 27,827.60

2100010 · Fed. W/H 125.65

2100011 · Social Sec/Medicare -137.10

2100012 · FUTA 190.92

2100013 · SUTA 4,520.97

2100014 · State Withholding -1,504.76

2100015 · Business Tax 15,188.15

2100016 · Property Tax -6,087.97

2100017 · Sales Tax Payable 28,995.25

2100018 · FET 89,823.58

2100019 · Franchise Excise (F&E) -5,563.93

2100020 · KY landing tax 53,743.38

2100022 · HSA Contributions -1,193.73

Total 2100000 · Accrued Expenses 138,119.21

2250000 · Prepaid Accts Receivable

2250200 · Charter

 <6 of 9>
 Corporate Flight Management, Inc.

 Compiled Balance Sheet

 As of April 30, 2013

UNAUDITED

Apr 30, 13

2250031 · Syracuse University 12,030.00

2250032 · Thorton Homes 38,834.99

2250036 · Gary Cosay VIP 16,915.19

2250037 · Richard Handler VIP 12,306.91

2250044 · Britt Sexton VIP 68,652.02

2250049 · Dotty Adams VIP 82,052.22

2250052 · Holborn Corp VIP 77,946.02

2250054 · Dollar General VIP 60,872.79

2250055 · Pink Dog VIP 41,877.91

2250058 · McNamara, Kevin VIP 20,300.75

2250067 · Jack Attaway 5,463.15

2250081 · American Addiction Centers 39,184.49

2250085 · Air Fax Inc 1,500.00

Total 2250200 · Charter 477,936.44

2250300 · Maintenance

2250029 · Southwest Florida Land Develop 536.34

2250057 · Samaritians Purse 23,648.00

2250073 · Missionary Flights and Services 10,850.53

2250083 · Flying Dragon 119,014.90

2250084 · Pan-Am Services 40,000.00

2250086 · MCE Aviation 3,150.63

Total 2250300 · Maintenance 197,200.40

2250400 · FBO

2250012 · Howard Graves 365.00

2250017 · Klaritch, Thomas 365.00

2250020 · Momentum Group 1,200.00

2250030 · Sutherland, Brian 365.00

2250038 · MC Aviation 2,000.00

2250039 · TCJS 45.00

Total 2250400 · FBO 4,340.00

2250500 · Leasing / Sales

2250045 · Vee Neal 56,400.00

2250051 · New Flight Evolution 25,000.00

2250077 · Public Charters, Inc 17,746.62

Total 2250500 · Leasing / Sales 99,146.62

Total 2250000 · Prepaid Accts Receivable 778,623.46

2300000 · Refundable Insurance Deposits

2300001 · 739 Flight Mgmt (569ST) 8,141.75

 <7 of 9>
 Corporate Flight Management, Inc.

 Compiled Balance Sheet

 As of April 30, 2013

UNAUDITED

Apr 30, 13

2300004 · Blue Canyon (32PE) 4,970.00

2300006 · CKU (701DA) 4,979.50

2300007 · CKU (874CP) 7,381.00

2300008 · Diamond Charter Holding, LLC 3,695.00

2300012 · Hvizdak (487UE) 3,605.11

2300013 · Jacobson, Harry 4,966.00

2300015 · JetStream Sales 1,763.75

2300018 · MRCLG, LLC - N23VP 4,060.00

2300020 · N365ea, LLC 4,603.25

2300021 · N560HG, LLC 5,191.50

2300023 · Signature Aviation, LLC - N525A 4,600.00

2300027 · Ten Thousand Air, 644rm 4,890.75

2300028 · Big Sky, 703rb 5,890.50

2300029 · B100,847d 3,695.25

2300030 · HL Aviation, 481ns 3,551.75

2300031 · UP Development-N100TW 3,812.00

Total 2300000 · Refundable Insurance Deposits 79,797.11

Total Other Current Liabilities 1,946,579.38

Total Current Liabilities 6,481,070.32

Long Term Liabilities

2060000 · Long Term Liabilities

2060001 · BanCorp South 822,169.44

2060003 · Chapell Smith-operating 249,259.96

2060004 · Chappell, Tom (564) 97,735.78

2060006 · First Tn - 564hk - 50053046 1,348,868.45

2060007 · Hvizdak Loan 44,998.73

2060008 · J.Floyd Loan 346,637.34

2060009 · Jetstream Sales 48,500.00

2060010 · Pinnacle Bank 91000 (865-858) 491,451.34

2060012 · Ricardo Tostado (913) 393,928.08

2060013 · Quantum Control 24,115.30

2060014 · Executive Group Holdings, LLC 100,000.00

2060015 · John R. Patrick 50,000.00

2060017 · Ally Financial (2012 van) 20,816.62

2060019 · Dell Financial Services 12,574.13

2060020 · Ally Financial (2011 van) 20,564.92

Total 2060000 · Long Term Liabilities 4,071,620.09

Total Long Term Liabilities 4,071,620.09

 <8 of 9>
 Corporate Flight Management, Inc.

 Compiled Balance Sheet

 As of April 30, 2013

UNAUDITED

Apr 30, 13

Total Liabilities 10,552,690.41

Equity

3000000 · Equity

3000002 · Capital Stock 10,000.00

3000005 · Paid in Capital 81,885.00

3000015 · Treasury Stock -67,846.26

Total 3000000 · Equity 24,038.74

3000090 · Retained Earnings 2,739,374.79

Net Income -149,911.42

Total Equity 2,613,502.11

TOTAL LIABILITIES & EQUITY 13,166,192.52

 <9 of 9>
 Corporate Flight Management, Inc.

 Compiled Profit & Loss

 September 2012 through April 2013

Sep '12 - Apr 13

Ordinary Income/Expense

Income

4001000 · Administration

4001005 · Accounting/Mgmt Svcs 38,583.36

Total 4001000 · Administration 38,583.36

4002000 · Charter Flight Operations

4002010 · Charter Hourly Rate 6,925,646.86

4002030 · Crew Per Diem 55,795.77

4002040 · Daily Crew Charge 339,397.20

4002050 · Fuel - Home 351,063.34

4002070 · Fuel Surcharge 356,740.24

4002080 · Hotel 43,681.93

4002090 · Landing Fees 311,135.88

4002100 · Management Fee 630,599.70

4002110 · Other Services 68,949.78

4002120 · Overnight 305,489.72

4002130 · Rental Car 37,443.83

4002140 · Wait Time 23,178.26

Total 4002000 · Charter Flight Operations 9,449,122.51

4003000 · Fixed Base Operations-FBO

4003010 · Aircraft Cleaning 13,849.98

4003020 · Catering 3,013.26

4003030 · Commissions/Rentals 9,516.63

4003040 · Flight Store 4,254.91

4003050 · Fuel - Avgas 945,575.72

4003070 · Fuel - Jet A 1,996,659.43

4003080 · Fuel Tax Credit 84,719.40

4003090 · Fueling Svcs-Into/flowage 361,234.29

4003100 · Ground Handling 91,148.07

4003110 · Hangar Rent 366,014.50

4003120 · Office Rent 53,030.00

4003130 · Oil Sales 5,106.28

4003140 · Tow/Tie Down 23,814.16

4003145 · Discounts or Adjustments -4,884.35

Total 4003000 · Fixed Base Operations-FBO 3,953,052.28

4006000 · Maintenance

4006010 · Commissions/Warranty 0.00

4006020 · Consumables 47,401.15

4006030 · Equipment Rental 0.00

4006040 · Freight 101,177.40

 <1 of 5>
 Corporate Flight Management, Inc.

 Compiled Profit & Loss

 September 2012 through April 2013

Sep '12 - Apr 13

4006050 · Labor Sales 1,687,893.17

4006060 · Manuals-Revisions-Subscriptions 0.00

4006070 · Other Services/Fees 414,748.95

4006080 · Parts Sales 3,788,702.27

4006090 · SubContract Sales 864,740.41

4006095 · Discounts or Adjustments -192,917.37

Total 4006000 · Maintenance 6,711,745.98

4007000 · Aircraft Sales and Leasing

4007020 · Aircraft Lease 767,975.35

4007030 · Broker Commission 116,935.04

4007040 · Consulting 150.00

4007050 · Sales 42,500.00

Total 4007000 · Aircraft Sales and Leasing 927,560.39

9999999 · Clearing Account 0.00

Total Income 21,080,064.52

Cost of Goods Sold

5002000 · Charter Flight Dept.

5002010 · Aircraft Lease- Hourly 3,154,664.87

5002020 · Aircraft Revenue/Profit Split 13,955.99

5002030 · Aircraft Lease Costs-Broker,mtx 669,504.61

5002040 · Catering 37,566.85

5002050 · Crew Cost - Other 18,860.47

5002060 · Crew Cost - Airline Tickets 10,565.79

5002070 · Crew Cost - Car Rental 41,840.76

5002080 · Crew Cost - Hotel 177,662.69

5002090 · Crew Per Diem 106,963.08

5002095 · Fuel Costs 1,990,879.67

5002100 · Labor-Pilots 1,288,775.08

5002110 · Labor - Fuel At Home 126,570.71

5002120 · Landing Fees 223,048.35

5002130 · Other Services 43,519.73

Total 5002000 · Charter Flight Dept. 7,904,378.65

5003000 · FBO- Fixed Base Operations

5003010 · Catering 270.53

5003020 · Flight Store 3,260.11

5003030 · Fuel - Adjustments -108,493.00

5003040 · Fuel - Avgas 742,323.93

5003050 · Fuel - Flowage/Into Fee 78,164.61

5003060 · Fuel - Jet A 1,658,022.09

 <2 of 5>
 Corporate Flight Management, Inc.

 Compiled Profit & Loss

 September 2012 through April 2013

Sep '12 - Apr 13

5003070 · Labor 423,030.09

5003080 · Oil 3,839.50

Total 5003000 · FBO- Fixed Base Operations 2,800,417.86

5006000 · Maintenance Dept.

5006010 · Commissions -30,777.04

5006020 · Consumables 35,047.22

5006040 · Freight 168,197.57

5006050 · Labor 1,542,747.58

5006070 · Other Services 381,860.81

5006080 · Parts 1,188,959.87

5006090 · SubContract 1,214,980.28

5006100 · Warranty -4,520.14

Total 5006000 · Maintenance Dept. 4,496,496.15

5007000 · Aircraft Sales/Leasing Dept.

5007010 · Aircraft Cost 55,110.75

5007020 · Aircraft For Sale Insurance 7,094.24

5007030 · Aircraft For Sale Interest Cost 18,607.80

5007040 · Aircraft For Sale Lease Pmts 281,168.30

5007060 · Aircraft mtx, fuel misc. 144,451.95

5007080 · Labor-salesmen 3,987.06

5007090 · Settlement/Closing Cost 8,470.00

Total 5007000 · Aircraft Sales/Leasing Dept. 518,890.10

Total COGS 15,720,182.76

Gross Profit 5,359,881.76

Expense

6000000 · Personnel Expenses

6000005 · Administrative/Office 636,977.38

6000015 · Hiring Costs 8,416.92

6000020 · Maintenance personnel 1,152,521.14

6000025 · Officers 437,710.08

6000030 · Charter Personnel 501,268.77

6000035 · FBO Personnel 146,259.55

6000040 · Training 264,631.02

6000045 · Uniforms 19,772.31

Total 6000000 · Personnel Expenses 3,167,557.17

6000100 · Advertising & Promotions 24,645.94

6000200 · Bad Debts

 <3 of 5>
 Corporate Flight Management, Inc.

 Compiled Profit & Loss

 September 2012 through April 2013

Sep '12 - Apr 13

6000205 · Bad Debt Write off 47,410.25

6000210 · Bad Debts Recovery 65.08

Total 6000200 · Bad Debts 47,475.33

6000300 · Building Repairs/Maintenance 48,279.75

6000400 · Contributions/Donations 1,728.23

6000500 · Depreciation/Amortization 188,107.92

6000600 · Dues and Subscriptions 80,858.16

6000700 · Equipment Expense

6000705 · Equipment Lease 99,999.06

6000710 · Equipment Rental 1,574.60

6000715 · Equipment Repair 35,236.86

Total 6000700 · Equipment Expense 136,810.52

6000800 · Facilities Rent 571,811.57

6000900 · Fees/Penalties/Fines

6000905 · Bank Fees 72,768.93

6000910 · Credit Card Fees 69,990.84

6000915 · Finance Charge 57,218.12

6000920 · Late Fee 22,873.48

6000925 · Fines -4,500.00

6000930 · Tax penalties 17,389.44

Total 6000900 · Fees/Penalties/Fines 235,740.81

6001000 · Insurance Expense

6001005 · Hangar Rash/Insurance Ded. 61,824.39

6001010 · Monthly Insurance Expense 321,548.76

Total 6001000 · Insurance Expense 383,373.15

6001100 · Interest Expense

6001105 · Bank or Loan Interest 117,218.10

Total 6001100 · Interest Expense 117,218.10

6001200 · License & License Fees 1,190.00

6001300 · Postage & Delivery 2,425.41

6001400 · Professional Fees 100,758.03

6001500 · Small Equipment 2,113.73

6001600 · Supplies

6001605 · Computer 10,490.16

6001610 · Office 8,702.32

6001615 · Printing 5,109.00

6001620 · Other 45,679.75

Total 6001600 · Supplies 69,981.23

 <4 of 5>
 Corporate Flight Management, Inc.

 Compiled Profit & Loss

 September 2012 through April 2013

Sep '12 - Apr 13

6001700 · Taxes

6001710 · Personal Property 9,275.79

6001715 · Personality Tax 25,278.88

6001720 · State Taxes 1,788.22

6001725 · F & E Tax 25,800.00

Total 6001700 · Taxes 62,142.89

6001800 · Travel Expenses

6001805 · Car Rental / Air travel 26,625.28

6001810 · Hotel/Lodging 17,731.13

6001815 · Meals & Entertainment 14,142.05

Total 6001800 · Travel Expenses 58,498.46

6001900 · Utilities

6001905 · Cable 1,796.70

6001910 · Electricity 72,728.28

6001915 · Gas 36,314.61

6001920 · Telephones 103,494.19

6001925 · Waste Disposal 6,367.76

6001930 · Water 10,260.39

Total 6001900 · Utilities 230,961.93

6002000 · Vehicle Expense 49,083.68

6002005 · Web Development Expense 10,987.00

Total Expense 5,591,749.01

Net Ordinary Income -231,867.25

Other Income/Expense

Other Income

7000000 · Interest Income 116.99

7000050 · Miscellaneous Income 223,111.69

7000200 · Future Investmnt/Developmnt

7000205 · Labor R&D -136,098.26

7000210 · Other Expenses R&D -5,174.59

Total 7000200 · Future Investmnt/Developmnt -141,272.85

Total Other Income 81,955.83

Net Other Income 81,955.83

Net Income -149,911.42

 <5 of 5>
Note Holder Purpose Collateral Principal Balance Monthly Payment Origination Date

Original Note 

Amount Rate Rate Type Maturity

2060001 Bancorpsouth Bank Construct FBO and term out West Side FBO Building 822,169.44 8,896.63 07/26/04 1,071,000.00 6.25% Prime + 3 08/01/24

2060002 Bancorp South PAID OFF Jeep Wrangler 0.00 0.00 11/20/09 29,358.00 7.75% fixed 11/20/12

2060003 Chappell Loan fund working capital - paid from sale of 565HK none 249,259.96 1,500.00 03/12/10 300,000.00 6.00% fixed 01/01/162060004 Tom Chappell Investment 564HK none 97,735.78 0.00 97,735.78 na na sale of aircraft2060006 First Tennessee Tom Chappell Purchase of 564HK. Aircraft 565HK 1,348,868.45 11,453.27 09/17/08 1,801,000.00 3.25% var/prime/360 09/25/13

2060007 Hvizdak Loan Parts Plane #2/unsecured None 44,998.73 0.00 11/29/06 510,000.00 10.00% fixed Demand2060008 John Floyd Investor Financed 10UP None 346,637.34 5,663.15 12/21/07 800,000.00 na na2060009 Jetstream Sales Down Payment for Phenom Position none 48,500.00 0.00 04/25/08 65,000.00 na na na

2060010 Pinnacle Bank Guaranteed Debt by one investor for refurb. CFM 

took the debt and ownership of the asset to protect Investor from product liability prot. 

 J-32 858CY 491,451.34 9,430.18 03/11/11 1,420,830.14 5.00% fixed 05/20/18

2060012 Ricardo Tostada Balance due from Sale of 913 none 393,928.08 0.00 12/31/08 393,928.08 na na na2060013 Quantum Control Maintenance Software Purchase - Software 24,115.30 2,332.60 12/16/11 53,650 na na 05/01/14

2060014 Executive Group Holdings Note with option to Convert to Stock, int qtrly none 100,000.00 int qrtly 12/20/11 100,000 5.00% fixed 11/20/14

2060015 John R Patrick Note with option to Convert to Stock, int qtrly none 50,000.00 int qrtly 01/24/12 50,000 5.00% fixed 01/12/17

2060016 M. Pacenka, JTWS PAID OFF in 2nd qtr of 2012-2013 none 0.00 balloon 03/20/12 100,000.00 7.00% fixed 09/15/12

2060017 Ally Financial (2012 Van) purchased new CFM Van for transport Ford Transit Van 20,816.62 527.35 04/19/12 24,899.64 9.69% fixed 04/19/172060018 Beacon Federal 6045S PAID OFF King Air 6045S 0.00 0.00 05/31/12 250,000.00 5.25% var/prime/360 05/15/13

2060019 Dell Financial Services Server for new maintenance Software computer equipment 12,574.13 414.51 05/01/12 16,403.71 9.80% fixed 04/01/16

2060020 Ally Financial (2011 Van) purchased new CFM Van for transport Ford Transit Van 20,564.92 513.97 05/30/12 24,218.57 9.95% fixed 05/30/17

TOTALS 4,071,620.09 40,731.66JetStream Air, LLC - Off Balance Sheet 488,779.92

Beacon Federal SOLD Aircraft 242BM 0.00 0.00 08/17/05 972,000.00 6.57% fixed - 5yr/360 08/15/15

First Tennessee Acquisition of aircraft traded for 643JX Aircraft 539PA and 529PA 501,043.22 8,478.59 07/21/05 920,000.00 7.25% fixed/360 08/05/13

Pinnacle Acquisition of aircraft Aircraft 657BA 191,339.00 7,212.20 08/12/05 657,801.00 7.75% fixed -5 yr var 08/01/15

692,382.22 15,690.79

CFM Airport Development, LLC - Off Balance Sheet

Regions Bank Refinance acquisition loan Real Estate - 20 Hangar 

Condo Unit at Smyrna 

Airport

106,935.11 4,514.02 03/31/05 377,044.11 8.30% fixed 06/24/15106,935.11 4,514.02

Other Notes Off Balance Sheet

Hl Aviaition Hangar 2 at John Tune (recently complteted). This 

note is from HL-CFM Joint Venture. CFM is a comaker on the note. The Hangar is the collateral valued at $1.8M

Real Estate - Hangar 2 John Tune Airport

913,564.00 10,000.00 02/19/09 1,153,500.00 6.00% fixed 10/20/23

Arvest Bank Acquisition of 10 aircraft at wholesale for the 

purpose of rebuilding and sale. One aircraft is remaining.

J - 32 BAE purchased a - - 12/03/07 3,000,000 6.00% fixed

Regions Bank PAID OFF Flight Simulator located at 

Smyrna Aircraft

0.00 0.00 03/20/08 42,466 8.30% fixed 03/20/13

Beacon Federal AIRCRAFT SOLD. Aircraft 223NH 0.00 0.00 04/06/01 118,079 8.25% fixed 04/05/16

Beacon Federal AIRCRAFT SOLD Aircraft 342DS 0.00 0.00 08/24/01 185,710 8.00% fixed 09/01/16First Bank Personal Note to John Floyd and Allen Howell. The 

proceeds were used to fund loan to CFM for the acquisition 10UP. Allen Howell is a related party to CFM as a 38% owner

Aircraft 10UP 478,620.87 5,663.15 12/21/07 800,000.00 6.00% prime floor 5.5

1,392,185 15,663.15

Grand Total 6,263,122.29 76,599.62

Corporate Flight Management, Inc

Schedule of Debt

April 30, 2013
NOTES TO INTERNAL COMPILED INTERIM FINANCIAL STATEMENT

April 30, 2013

Note 1 – Accounts Receivable Trade 

An aging of Accounts Receivable at April 30, 2013 are as follows: 

April 30, 2013 

 Current 1,770,920 

 30 Days 221,925 

 60 Days 95,436 

 90 Days and over 607,081 

 Total Trade Receivables 2,695,363 

Note 2 Accounts Receivable – Affiliates 

April 30, 2013 

Jetstream Air, LLC 1,300,104 

CFM Airport Development, LLC 198,870 

CFM Holding, Inc. 650,487 

Jetstream Sales, LLC 6,572 

CFM-HL Joint Venture 123,438 

Total Accounts Receivable - Affiliate 2,277,473 

Note 3 - Notes Receivable 

Notes receivable consist of a promissory note from David Augustin, a principle owner of the 

Company. At April 30, 2013 the balances of Note receivable belonging Augustin was $12,510. 

Note 4 - Inventories 

Inventories consisted of the following at year end. 

April 30, 2013 

Aircraft 1,898,921 

Parts 1,747,863 

Work In Process 611,197 

Fuel 217,471 

Flight Store 7,919 

Total Inventory 4,483,371 
NOTES TO INTERNAL COMPILED INTERIM FINANCIAL STATEMENT

April 30, 2013

Note 5 – Restricted Cash Deposits 

The Company holds insurance in escrow deposits for its managed aircraft fleet, and it also 

secures a stand –by letter of credit with a one year $100,000 Certificate of Deposit. Restricted 

deposits were equal to $148,762. 

 

Note 6 - Credit Cards Payable 

The company currently has a $500,000 limit credit card for operating aircraft and parts inventory 

purchases. As of April 30, 2013 the balance was $51,070 

Note 7 – Notes Payable 

See Schedule B for a schedule of debt. 
C.F.M. Holding, Inc. 

Smyrna, Tennessee 

Compiled Financial Statements 

 Interim Statement for the period through 5-31-13 
INTERNALLY PREPARED INTERIM STATEMENT 

May 31, 2013 

To the Board of Directors 

CFM Holdings, Inc. 

Smyrna, Tennessee 

The accounting staff of Corporate Flight Management, Inc., the primary operating company and 

subsidiary of CFM Holdings, Inc., has compiled the following balance sheet and income 

statement for C.F.M Holdings, Inc. representing the interim period ending May 31, 2013. In 

addition, notes to the financials have been prepared to support the statements. The numbers 

were not audited or reviewed internally or externally by an outside accounting firm. 

Generally, the company adheres to generally accepted accounting principles and accordingly 

endeavors to present a fair representation of the financial statements according to these 

principles. 

To the best of my knowledge, the information provided in the following report is accurate and 

fairly represents the financial results of the interim period ending May 31, 2013. 

 

Best regards, 

Doug Cate 

Chief Financial Officer 

Corporate Flight Management, Inc. 
 CFM Holdings, Inc.

 Compiled Balance Sheet

 As of May 31, 2013

UNAUDITED

May 31, 13

ASSETS

Current Assets

Other Current Assets

Due From Stockholders -41,863.67

Prepaid Taxes 20,280.00

Total Other Current Assets -21,583.67

Total Current Assets -21,583.67

Other Assets

Investment - Corp. Flight Mgmt. 255,376.00

Investment in GBA Gyroplanes 138,472.00

Investment in Jetstream Air -1,282,357.00

Total Other Assets -888,509.00

TOTAL ASSETS -910,092.67

LIABILITIES & EQUITY

Liabilities

Current Liabilities

Other Current Liabilities

Accrued F&E Tax 100.00

Due To CFM Airport Development 17,316.33

Due to Corp. Flight Mgmt. 650,487.61

Total Other Current Liabilities 667,903.94

Total Current Liabilities 667,903.94

Total Liabilities 667,903.94

Equity

Capital Stock 255,376.00

Retained Earnings -1,833,242.61

Net Income -130.00

Total Equity -1,577,996.61

TOTAL LIABILITIES & EQUITY -910,092.67

 Page 1 of 1
 CFM Holdings, Inc.

 Compiled Profit & Loss

 September 2012 through May 2013

Sep '12 - May 13

Ordinary Income/Expense

Expense

Licenses and Permits 130.00

Total Expense 130.00

Net Ordinary Income -130.00

Net Income -130.00

 Page 1 of 1
C.F.M. Holding, Inc.

Notes to Interim Internally‐Compiled Financial Statements:  May 31, 2013

Note 1 – Compiled Financial Statement 

This statement is a compilation of C.F.M. Holdings, Inc. This statement is prepared for the use 

of the U.S. Department of Transportation for the purpose of obtaining Financial Fitness 

Accreditation. Management does not represent that the statements are in compliance with 

GAAP rules as it relates to its affiliates. Generally, a proper representation of the financial 

information under generally accepted accounting principles would require a consolidation of all 

affiliates where ownership by the parent company is greater than fifty percent. At May 31, 2013, 

C.F.M. Holdings, Inc. had an ownership interest in the following business entities: 

 Corporate Flight Management, Inc. 

 GBA Gyroplanes 

 Jetstream Air 

The information presented in this report is a financial representation of the holding company 

only. 

Note 2 – Accounts Receivable Trade 

There are no trade accounts receivable for the period for the Holding Company 

Note 3 – Due From Stockholders 

The -$41,863 .67 is loss from an investment in Courier Logistics, Inc that occurred in 2004. The 

account is misclassified and should be in other assets and not in current liabilities. 

Note 4 - Inventories 

There are no inventories held by the holding company 

Note 5 – Investments 

Investment in related entities consisted of the following as of May 31, 2013: 

Corporate Flight Management, Inc $ 255,376 

GBA Gyroplanes $ 138,472 

Jetstream Air, Inc. -$1,282,357 

Total Investments -$ 888,509 

Note 6 - Liabilities 

CFM Holdings has intercompany debt to Corporate Flight Management, Inc. in the amount of 

$650,488 which represents taxes, license, and fees that the operating company, Corporate 

Flight Management, Inc. has paid on behalf of C.F.M. Holding, Inc. In addition $17,316 is owed 

to CFM Airport Development, a commonly held company by the owners of C.F.M Holdings, Inc.