AerSale Corp

Previous wording

Our Asset Management Solutions segment focuses on mid-life Flight Equipment. Asset Management Solutions’ activities include monetization of assets through the lease or sale of whole assets, or through disassembly activities in support of our USM-related activities. Our monetizing services have been developed to maximize returns on mid-life Flight Equipment throughout their operating life, in conjunction with realizing the highest residual value of Flight Equipment at its retirement. We accomplish this by utilizing deep market and technical knowledge related to the management of Flight Equipment sales, leasing and MRO services. To extract value from the remaining flight time on whole assets, we provide flexible short-term (generally less than five years) leasing solutions of Flight Equipment to passenger and cargo operators across the globe. Once the value from the Flight Equipment’s flight time has been extracted, Flight Equipment is considered to be at or near the end of its useful life and is analyzed for return maximization as either whole asset sales or disassembled for sale as USM parts. Revenue from this segment is segregated between Aircraft and Engine depending on the asset type that generated the revenue. Lease revenue and the related depreciation from aircraft and engines installed on those aircraft are recognized under the Aircraft category. Revenue from sales of whole aircraft and related cost of sales are allocated between the Aircraft and Engine categories based on the allocated cost basis of the asset sold.

Current wording

Our Asset Management Solutions segment focuses on mid-life Flight Equipment. Asset Management Solutions’ activities include monetization of assets through the lease or sale of whole assets, or through disassembly activities in support of our USM-related activities. Our monetizing services have been developed to maximize returns on mid-life Flight Equipment throughout their operating life, in conjunction with realizing the highest residual value of Flight Equipment at its retirement. We accomplish this by utilizing deep market and technical knowledge related to the management of Flight Equipment sales, leasing and MRO services. To extract value from the remaining flight time on whole assets, we provide flexible short-term (generally less than five years) leasing solutions of Flight Equipment to passenger and cargo operators across the globe. Once the value from the Flight Equipment’s flight time has been extracted,

Previous wording

Although we are not aware of any specific event or circumstance that would require updates to our estimates or judgments, disruption in the global economy and financial markets, geopolitical instability, and government actions related to trade policies, tariffs and immigration continue to create uncertainty. We source parts and components for our business from various suppliers around the world. Current geopolitical conditions, including trade restrictive actions and strained intercountry relations, could cause significant materials and parts shortages, as well as delivery delays, labor shortages, distribution issues, energy cost increases and price increases. Furthermore, the U.S. government’s adoption of new approaches to trade policy and imposition of tariffs on certain foreign goods (as well as the possibility of imposing significant, additional tariffs in the future) may make it more difficult or costly for us to procure components and other material supplies and, in turn, may increase the cost to our customers, which may materially and adversely impact demand for our products and services, our results of operations or our financial condition. We continue to monitor the current economic environment and its potential impact on our business, results of operations or financial condition, as well as potential impact on our end customers whose demand for our products and services may be adversely impacted as a result of changes in policies by the U.S. or other governments, and closely manage our costs and capital resources so that we can respond appropriately as circumstances change. Our estimates may change as new events occur and additional information is obtained. Actual results could differ from these estimates under different assumptions or conditions.

Current wording

Although we are not aware of any specific event or circumstance that would require updates to our estimates or judgments, disruption in the global economy and financial markets, geopolitical instability, and government actions related to trade policies, tariffs and immigration continue to create uncertainty. We source parts and components for our business from various suppliers around the world. Current geopolitical conditions, including trade restrictive actions, strained intercountry relations, and the continued shutdown of the U.S. government, could cause significant materials and parts shortages, as well as delivery delays, labor shortages, disruptions to government contracts such as delayed payments or halted projects, effects on supply chains due to reduced staffing for customs, inspections and transportation oversight, or delays in regulatory approvals, distribution issues, energy cost increases and price increases. Furthermore, the U.S. government’s adoption of new approaches to trade policy and imposition of tariffs on certain foreign goods (as well as the possibility of imposing significant, additional tariffs in the future) may make it more difficult or costly for us to procure components and other material supplies and, in turn, may increase the cost to our customers, which may materially and adversely impact demand for our products and services, our results of operations or our financial condition. We continue to monitor the current economic environment and its potential impact on our business, results of operations or financial condition, as well as potential impact on our end customers whose demand for our products and services may be adversely impacted as a result of changes in policies by the U.S. or other governments, and closely manage our costs and capital resources so that we can respond appropriately as circumstances change. Our estimates may change as new events occur and additional information is obtained. Actual results could differ from these estimates under different assumptions or conditions.

Previous wording

Total revenue for the six months ended June 30, 2025 increased $5.5 million or 3.3% compared to the six months ended June 30, 2024, driven by an increase of $14.4 million, or 14.3%, in revenue within Asset Management Solutions and a decrease of $8.9 million, or 13.4%, in revenue within TechOps.

Current wording

Total revenue for the three months ended September 30, 2025 decreased $11.5 million, or 13.9%, compared to the three months ended September 30, 2024, driven by a decrease of $11.2 million, or 22.2%, in revenue within Asset Management Solutions, and a decrease of $0.3 million, or 0.9%, in revenue within TechOps.

Previous wording

Sales in the Asset Management Solutions segment increased $34.5 million or 82.5%, to $76.3 million for the three months ended June 30, 2025, due to a $1.3 million, or 14.4%, increase in revenue from Aircraft and a $33.2 million, or 101.4%, increase in revenue from Engine. The increase in Aircraft revenue is due to higher leasing activity in the B757 product line in the amount of $1.1 million. The increase in Engine revenue is primarily attributable tohigher activity in the PW4000 and CF6-80 product lines due to higher Flight Equipment sales in the amount of $16.6 million, higher leasing activity of $2.7 million, and higher USM sales of $13.9 million, as we monetize our previous feedstock acquisitions.

Current wording

Revenue in the Asset Management Solutions segment decreased $11.2 million or 22.2%, to $39.2 million for the three months ended September 30, 2025, due to a $0.7 million, or 7.7%, decrease in revenue from Aircraft and a $10.5 million, or 25.4%, decrease in revenue from Engine. The decrease in Aircraft revenue is due to lower USM revenue across multiple product lines in the amount of $2.0 million, as well as lower Flight Equipment sales, partly offset by higher leasing activity in the B757 product line in the amount of $1.6 million. The decrease in Engine revenue is primarily attributable tolower activity in the CFM56 and RB211 product lines due to lower Flight Equipment sales in the amount of $21.9 million, partly offset by higher leasing activity of $0.9 million, and higher USM sales of $10.5 million in the CF6-80 and PW4000 product lines, as we monetize our previous feedstock acquisitions.

Previous wording

Cost of sales in Asset Management Solutions increased $22.9 million or 86.5%, to $49.3 million for the three months ended June 30, 2025, compared to the prior year period. The increase in cost of sales was primarily driven by the sales increase discussed above. Gross profit in the Asset Management Solutions segment increased $11.6 million, or 75.5%, to $27.0 million for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The gross profit increase is mainly attributable to higher revenue generated for the three months ended June 30, 2025, as noted above.

Current wording

Cost of sales in Asset Management Solutions decreased $5.3 million or 17.1%, to $25.8 million for the three months ended September 30, 2025, compared to the prior year period. The decrease in cost of sales was primarily driven by the sales decrease discussed above. Gross profit in the Asset Management Solutions segment decreased $5.9 million, or 30.6%, to $13.4 million for the three months ended September 30, 2025, compared to the three months ended

Previous wording

Aircraft gross profit margins increased to 42.0% for the three months ended June 30, 2025, from 37.6% for the three months ended June 30, 2024 due to higher margin contribution from leasing revenue and USM product mix. Engine gross profit margin was 34.3% for the three months ended June 30, 2025, a decrease from 36.5% for the three months ended June 30, 2024, which was primarily the result of lower margins on USM sales due to product mix.

Current wording

Aircraft gross profit margins increased to 40.3% for the three months ended September 30, 2025, from 33.7% for the three months ended September 30, 2024 due to higher margin contribution from leasing revenue. Engine gross profit margin was 32.5% for the three months ended September 30, 2025, a decrease from 39.3% for the three months ended September 30, 2024, which was primarily the result of changes in the revenue mix, mainly lower Flight Equipment sales which, historically, tend to generate higher margins.

Previous wording

Our revenue from TechOps decreased by $4.2 million or 11.9%, to $31.1 million for the three months ended June 30, 2025, compared to the prior year period. The decrease was driven by lower sales volume in our Goodyear, Arizona and Roswell, New Mexico facilities, partly offset by higher revenue from the Company’s component MROs.

Current wording

Our revenue from TechOps decreased by $0.3 million or 0.9%, to $32.0 million for the three months ended September 30, 2025, compared to the prior year period. The decrease was driven by lower sales volume in our Goodyear, Arizona and Roswell, New Mexico facilities, partly offset by higher revenue from the Company’s component MROs.

Previous wording

Cost of sales in TechOps decreased $6.2 million or 21.4%, to $22.7 million for the three months ended June 30, 2025 compared to the prior year period. This was driven by lower revenue as discussed above and a shift to more profitable work. Gross profit in TechOps increased $2.0 million, or 31.8% for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, driven by higher gross profit of $1.2 million on MRO services, as a result of focus on higher margin opportunities and implementation of process efficiencies that allowed us to increase gross margins, which fully offset lower revenue. Gross profit margin increased to 26.9% for the three months ended June 30, 2025 compared to 18.0% for the prior year period, due to the initiatives discussed above which increased MRO margins from 15.5% in the prior year period to 23.6% for the three months ended June 30, 2025.

Current wording

Cost of sales in TechOps decreased $4.0 million or 14.3%, to $23.9 million for the three months ended September 30, 2025 compared to the prior year period. This was driven by lower revenue as discussed above and a shift to more profitable work. Gross profit in TechOps increased $3.7 million, or 84.6% for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, driven by higher gross profit of $2.1 million on MRO services, as a result of focus on higher margin opportunities and implementation of process efficiencies that allowed us to increase gross margins, which fully offset the lower revenue. Gross profit margin increased to 25.3% for the three months ended September 30, 2025 compared to 13.6% for the prior year period, due to the initiatives discussed above which increased MRO margins from 11.3% in the prior year period to 21.2% for the three months ended September 30, 2025.

Previous wording

We account for our private warrants as a liability at their fair value, with changes in fair value recognized in our results from operations for the period. The fair value of our private warrants is determined using a Black Scholes option pricing model. For each of the three months ended June 30, 2025 and 2024, we recorded a $0.1 million change in fair value of warrant liability income.

Current wording

We account for our private warrants as a liability at their fair value, with changes in fair value recognized in our results from operations for the period. The fair value of our private warrants is determined using a Black Scholes option pricing model. For the three months ended September 30, 2025, the amount recorded for change in fair value of warrant liability loss was not significant, compared to a $0.2 million income in the prior year period.

Previous wording

Interest expense, net was $2.5 million for the three months ended June 30, 2025, compared to $1.5 million interest expense, net for the three months ended June 30, 2024. The increase in interest expense is primarily driven by higher borrowings under our debt facilities during the current year period driven by increased feedstock acquisitions to continue our growth and funding of a stock buyback executed in the first quarter of 2025.

Current wording

Interest expense, net was $2.4 million for the three months ended September 30, 2025, compared to $1.8 million interest expense, net for the three months ended September 30, 2024. The increase in interest expense is primarily driven by higher borrowings under our debt facilities during the current year period driven by increased feedstock acquisitions to continue our growth and funding of a stock buyback executed in the first quarter of 2025.

Previous wording

The effective tax rate for the three months ended June 30, 2025, was 17.0% compared to (15.8%) for the three months ended June 30, 2024. The difference between the effective tax rate and the statutory tax rate of 21% for the three months ended June 30, 2025, is primarily due to the impact of state income taxes, offset by the foreign derived intangible income deduction and R&D tax credits. The difference between the effective tax rate and the statutory tax rate of 21% for the three months ended June 30, 2024 was primarily due to the exclusion of the foreign derived intangible income deduction and the change in fair market value of the warrants.

Current wording

The effective tax rate for the three months ending September 30, 2025 was 119.6% compared to 13.3% for the three months ended September 30, 2024. The difference between the effective tax rate and the statutory tax rate of 21.0% for the three months ended September 30, 2025, is primarily due to the impact of state income taxes and stock-based compensation. The difference between the effective tax rate and the statutory tax rate of 21.0% for the three months ended September 30, 2024, is primarily due to the impact of state income taxes and stock-based compensation.

Previous wording

Sales and gross profit for AerSale’s two business segments for the six months ended June 30, 2025 and 2024 were as follows:

Current wording

Sales and gross profit for AerSale’s two business segments for the nine months ended September 30, 2025 and 2024 were as follows:

Previous wording

Total revenue for the three months ended June 30, 2025 increased $30.3 million or 39.3% compared to the three months ended June 30, 2024, driven by an increase of $34.5 million, or 82.5%, in revenue within Asset Management Solutions, offset by a decrease of $4.2 million, or 11.9%, in revenue within TechOps.

Current wording

Total revenue for the nine months ended September 30, 2025 decreased $6.0 million, or 2.4%, compared to the nine months ended September 30, 2024, driven by a decrease of $9.2 million, or 9.3%, in revenue within TechOps, partially offset by an increase of $3.2 million, or 2.1%, in revenue within Asset Management Solutions.

Previous wording

Sales in the Asset Management Solutions segment increased $14.4 million or 14.3%, to $115.5 million for the six months ended June 30, 2025, due to a $22.1 million, or 29.2%, increase in revenue from Engine; offset by a $7.7 million, or 30.2%, decrease in revenue from Aircraft. The increase in Engine revenue is primarily attributable to increased activity in the CF6-80 and PW4000 product lines as a result of higher USM sales in the amount of $25.3 million and higher leasing revenue in the amount of $6.5 million, partly offset by lower sales of Flight Equipment. The decrease in Aircraft revenue is primarily attributable todecreased activity in the B737 product line due to lower Flight Equipment sales in the amount of $12.3 million, partially offset by higher leasing revenue from the B757 product line.

Current wording

Revenue in the Asset Management Solutions segment increased $3.2 million or 2.1%, to $154.7 million for the nine months ended September 30, 2025, due to a $11.6 million, or 9.9%, increase in revenue from Engine; offset by an $8.4 million, or 24.3%, decrease in revenue from Aircraft. The increase in Engine revenue is primarily attributable to increased activity in the CF6-80 and PW4000 product lines as a result of higher USM sales in the amount of $35.2 million and higher leasing revenue in the amount of $7.4 million, partly offset by lower sales of Flight Equipment. The decrease in Aircraft revenue is primarily attributable todecreased activity in the B737 product line due to lower Flight Equipment sales in the amount of $12.6 million, partially offset by higher leasing revenue from the B757 product line.

Previous wording

Cost of sales in Asset Management Solutions increased $13.4 million, or 21.3%, to $76.5 million for the six months ended June 30, 2025, compared to the prior year period. The increase in cost of sales was primarily driven by higher costs on USM sales driven by the sales increase noted above. Gross profit in the Asset Management Solutions segment increased $1.0 million, or 2.6%, to $39.0 million for the six months ended June 30, 2025, compared to the six months ended June 30, 2024. The gross profit increase is mainly attributable to the margin generated on higher leasing revenue and USM product mix for the six months ended June 30, 2025, as noted above.

Current wording

Cost of sales in Asset Management Solutions increased $8.1 million, or 8.6%, to $102.3 million for the nine months ended September 30, 2025, compared to the prior year period. The increase in cost of sales was primarily driven by higher costs on USM sales driven by the sales increase noted above. Gross profit in the Asset Management Solutions segment decreased $4.9 million, or 8.6%, to $52.4 million for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. The gross profit decrease is mainly attributable to changes in the revenue mix for the nine months ended September 30, 2025, mainly lower Flight Equipment sales which, historically, tend to generate higher margins.

Previous wording

Aircraft gross profit margin increased to 33.5% for the six months ended June 30, 2025, from 32.5% for the six months ended June 30, 2024, due to higher margins on USM product mix and leasing revenue. Engine gross profit margin was 33.8% for the six months ended June 30, 2025, a decrease from 39.4% for the six months ended June 30, 2024, which was primarily due to changes in the USM product mix, offset by higher margin on leasing revenue.

Current wording

Aircraft gross profit margin increased to 35.7% for the nine months ended September 30, 2025, from 32.8% for the nine months ended September 30, 2024, due to higher margins on leasing revenue. Engine gross profit margin was 33.5% for the nine months ended September 30, 2025, a decrease from 39.3% for the nine months ended September 30, 2024, which was primarily due to changes in the USM product mix, offset by higher margin on leasing revenue.

Previous wording

Our revenue from TechOps decreased by $8.9 million, or 13.4%, to $57.7 million for the six months ended June 30, 2025, compared to the prior year period. The decrease was primarily driven by lower MRO services.

Current wording

Our revenue from TechOps decreased by $9.2 million, or 9.3%, to $89.7 million for the nine months ended September 30, 2025, compared to the prior year period. The decrease was primarily driven by lower MRO services.

Previous wording

Cost of sales in TechOps decreased $10.7 million, or 19.8%, to $43.4 million for the six months ended June 30, 2025, compared to the prior year period, driven by the lower revenue discussed above. Gross profit in TechOps increased $1.8 million, or 14.3% for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, driven by higher profit generated on product sales. Gross profit margin increased to 24.8% for the six months ended June 30, 2025 compared to 18.8% for the six months ended June 30, 2024, and was largely attributable to higher margins from the Company’s on airport and Landing Gear MROs.

Current wording

Cost of sales in TechOps decreased $14.7 million, or 17.9%, to $67.3 million for the nine months ended September 30, 2025, compared to the prior year period, driven by the lower revenue discussed above. Gross profit in TechOps increased $5.5 million, or 32.6%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, driven by higher profit generated on product sales and a focus on higher margin work. Gross profit margin increased to 25.0% for the nine months ended September 30, 2025 compared to 17.1% for the nine months ended September 30, 2024, and was largely attributable to higher margins from the Company’s on airport and landing gear MROs.

Previous wording

We account for our private warrants as a liability at their fair value, with changes in fair value recognized in our results from operations for the period. The fair value of our private warrants is determined using a Black Scholes option pricing model. For the six months ended June 30, 2025, we recorded a change in fair value of the warrant liability income of $0.1 million, compared to a $2.1 million income in the prior year period.

Current wording

We account for our private warrants as a liability at their fair value, with changes in fair value recognized in our results from operations for the period. The fair value of our private warrants is determined using a Black Scholes option pricing model. For the nine months ended September 30, 2025, we recorded a change in fair value of the warrant liability income of $0.1 million, compared to a $2.3 million income in the prior year period.

Previous wording

Interest expense, net, was $3.6 million for the six months ended June 30, 2025, compared to $2.5 million for the six months ended June 30, 2024. This was primarily related to interest expense incurred on higher borrowings under our debt facilities during the current year period compared to the prior period related to increased feedstock acquisitions to continue our growth and funding of the stock buyback executed in the first quarter of 2025.

Current wording

Interest expense, net was $6.0 million for the nine months ended September 30, 2025, compared to $4.2 million for the nine months ended September 30, 2024. This was primarily related to interest expense incurred on higher borrowings under our debt facilities during the current year period compared to the prior period related to the timing of changes in working capital and funding of the stock buyback executed in the first quarter of 2025.

Previous wording

The effective tax rate for the six months ended June 30, 2025, was 23.8% compared to 3.5% for the six months ended June 30, 2024. The difference between the effective tax rate and the statutory tax rate of 21% for the six months ended June 30, 2025, is primarily due to the impact of state income taxes, offset by the foreign derived intangible income deduction and R&D tax credits. The difference between the effective tax rate and the statutory tax rate of 21% for the six months ended June 30, 2024 was primarily due to the benefit of R&D credits, change in fair market value of the warrants, and amended state tax returns.

Current wording

The effective tax rate for the nine months ended September 30, 2025 was 35.7% compared to 5.2% for the nine months ended September 30, 2024. The difference between the effective tax rate and the statutory tax rate of 21.0% for the nine months ended September 30, 2025, is primarily due to the impact of state income taxes and stock-based compensation. The difference between the effective tax rate and the statutory tax rate of 21.0% for the nine months ended September 30, 2024, is primarily due to the impact of state income taxes and stock-based compensation.

Previous wording

As of June 30, 2025, we had $5.7 million of cash and cash equivalents. We finance our growth through cash flows generated from operations and borrowings secured by our assets. We had $114.5 million outstanding under the Revolving Credit Agreement (as defined below) as of June 30, 2025, and we had $63.1 million of availability thereunder. We used cash in operations of $25.4 million for the six months ended June 30, 2025, primarily for feedstock acquisitions, and used cash in investing activities of $3.8 million for the six months ended June 30, 2025.

Current wording

As of September 30, 2025, we had $5.3 million of cash and cash equivalents. We finance our growth through cash flows generated from operations and borrowings secured by our assets. We had $123.8 million outstanding under the Revolving Credit Agreement (as defined below) as of September 30, 2025, and we had $53.6 million of availability

Previous wording

Net cash used in operating activities was $25.4 million for the six months ended June 30, 2025, compared to cash used of $36.8 million for the same period in 2024. The decrease in cash deployed of $11.4 million was primarily due to higher USM sales and higher results from operations during the six months ended June 30, 2025 compared to the prior year period.

Current wording

Net cash used in operating activities was $34.3 million for the nine months ended September 30, 2025, compared to cash used of $26.4 million for the same period in 2024. The increase in cash deployed of $8.0 million was primarily due to the timing of vendor advances associated with feedstock and changes in working capital levels during the nine months ended September 30, 2025 compared to the prior year period.

Previous wording

Net cash used in investing activities was $3.8 million for the six months ended June 30, 2025, compared to cash used of $9.0 million in the same period for 2024. Cash used in investing activities was driven by purchases of property and equipment during the six months ended June 30, 2025 and June 30, 2024 due to the completion of the Company’s expansion projects.

Current wording

Net cash used in investing activities was $5.4 million for the nine months ended September 30, 2025, compared to cash used of $11.5 million in the same period for 2024. The reduction in cash used in investing activities was driven by purchases of property and equipment during the nine months ended September 30, 2025 and September 30, 2024 due to the completion of the Company’s expansion projects.

Previous wording

Net cash provided by financing activities was $30.2 million for the six months ended June 30, 2025, compared to cash provided of $44.2 million in the same period for 2024. Cash provided by financing activities during the six months ended June 30, 2025 resulted from borrowing under our Revolving Credit Agreement, offset by cash used in the repurchase of common stock in the first quarter of 2025. Cash provided by financing activities during the six months ended June 30, 2024 is the result of proceeds from net borrowings under the CIBC Equipment Loan (as defined below) and net borrowings under the Revolving Credit Agreement (as defined below).

Current wording

Net cash provided by financing activities was $40.3 million for the nine months ended September 30, 2025, compared to cash provided of $41.7 million in the same period for 2024. Cash provided by financing activities during the nine months ended September 30, 2025 resulted from net borrowings under our Revolving Credit Agreement and borrowings under the CIBC Equipment Loan (as defined below), offset by cash used in the repurchase of common stock in the first quarter of 2025. Cash provided by financing activities during the nine months ended September 30, 2024 is the result of proceeds from net borrowings under the Revolving Credit Agreement.

Previous wording

Effective July 25, 2023, we amended our revolving credit agreement (as amended, the “Revolving Credit Agreement”) to increase our maximum commitments under the Revolving Credit Agreement to $180.0 million aggregate amount, expandable to $200.0 million, subject to conditions and the availability of lender commitments and borrowing base limitations, and to extend the maturity date to July 24, 2028, subject to certain conditions.

Current wording

amount, expandable to $200.0 million, subject to conditions and the availability of lender commitments and borrowing base limitations, and to extend the maturity date to July 24, 2028, subject to certain conditions.

Previous wording

As of June 30, 2025, there was $114.5 million outstanding under the Revolving Credit Agreement and we had $63.1 million of availability thereunder. We were in compliance with our debt covenants for the Revolving Credit Agreement as of June 30, 2025.

Current wording

As of September 30, 2025, there was $123.8 million outstanding under the Revolving Credit Agreement and we had $53.6 million of availability thereunder. We were in compliance with our debt covenants for the Revolving Credit Agreement as of September 30, 2025.

Previous wording

During the six months ended June 30, 2025, the Company borrowed $0.2 million, which has not been converted to a term loan as of June 30, 2025. As of June 30, 2025, $1.7 million remained outstanding under this facility.

Current wording

During the nine months ended September 30, 2025, the Company borrowed an additional $1.2 million under this facility, converted to a term loan maturing on September 30, 2028. As of September 30, 2025, $2.5 million remained outstanding under this facility.

Previous wording

The Company has entered into a purchase commitment with Universal Avionics valued at $7.3 million for the acquisition of technical equipment for manufacturing our AerAware TM product. The commitment is expected to be satisfied in 2025.

Current wording

The Company has entered into a purchase commitment with Universal Avionics for the acquisition of technical equipment for manufacturing our AerAware TM product of which $6.8 million remain outstanding as of September 30, 2025. The commitment is expected to be satisfied in 2025.

Previous wording

The preparation of the condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires our 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 condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. A summary of our critical accounting estimates is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in the 2024 Form 10-K. We continually review these estimates and their underlying assumptions to ensure they are appropriate for the circumstances. Changes in the estimates and assumptions we use could have a material impact on our financial results. During the six months ended June 30, 2025, there were no material changes in our critical accounting estimates and policies.

Current wording

The preparation of the condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires our 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 condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. A summary of our critical accounting estimates is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in the 2024 Form 10-K. We continually review these estimates and their underlying assumptions to ensure they are appropriate for the circumstances. Changes in the estimates and assumptions we use could have a material impact on our financial results. During the nine months ended September 30, 2025, there were no material changes in our critical accounting estimates and policies.