Global Crossing Airlines Group Inc.

Previous wording

GlobalX operates a U.S. Part 121 domestic flag and supplemental airline using the Airbus A320 family of aircraft, operating both passenger and cargo aircraft. GlobalX’s business model is to (1) provide services on an ACMI using wet-lease contracts to airlines and non-airlines, and (2) on a Charter basis, to provide passenger aircraft charter services to customers by charging an “all-in” fee that includes fuel, insurance, landing fees, navigation fees and most other operational fees and costs. GlobalX operates within the United States, Europe, Canada, Central and South America.

Current wording

GlobalX operates a U.S. Part 121 domestic flag and supplemental airline using the Airbus A320 family of aircraft, operating both passenger and cargo aircraft. GlobalX’s business model is to (1) provide services on an ACMI basis using wet-lease contracts to airlines and non-airlines, and (2) on a Charter basis, provide passenger aircraft charter services to customers by charging an “all-in” fee that includes fuel, insurance, landing fees, navigation fees and most other operational fees and costs. GlobalX operates within the United States, Europe, Canada, Central and South America.

Previous wording

During the three month period ended March 31, 2026, the Company devoted efforts towards our stated goal of creating the largest narrow body charter operation in North America generating sustainable, long-term profits. To achieve this goal, GlobalX continues to invest in its three key assets– certifications, aircraft, and crew.

Current wording

During the six month period ended June 30, 2026, the Company devoted efforts towards our stated goal of creating the largest narrow body charter operation in North America generating sustainable, long-term profits. To achieve this goal, GlobalX continues to invest in its three key assets–certifications, aircraft, and crew.

Previous wording

GlobalX achieved the following during the three month period ended March 31, 2026:

Current wording

GlobalX achieved the following during the six month period ended June 30, 2026:

Previous wording

Took delivery of two A319 passenger aircraft.

Current wording

Took delivery of two A319 passenger aircraft and one A320 passenger aircraft.

Previous wording

Completed one heavy maintenance event and seven non-heavy maintenance events.

Current wording

Completed six heavy maintenance events and twenty-three non-heavy maintenance events.

Previous wording

GlobalX added the A321F aircraft to its operating certificate during the first quarter of 2023. The Company believes that the A321F will eventually be a highly sought-after cargo aircraft as a replacement for the aging and retiring Boeing B757 freighter fleet. During the three months ended March 31, 2026, we had two cargo aircraft operating and two temporarily parked. During the three months ended March 31, 2026, GlobalX saw a 16.5% decrease in Block Hours operated compared to the same period in 2025. This decreased activity level demonstrates the cargo charter market continues to be a significant drag on earnings. This is primarily due to the low rates being offered by brokers and customers and the relatively low utilization rates on a per aircraft basis, relative to the rates offered. We expect this dynamic to continue, and consequently, we are exploring all options to mitigate future losses, including, but not limited to, leasing out engines, utilizing engines in our passenger fleet, parking aircraft, and/or returning one or more of our freighter aircraft to lessors.

Current wording

GlobalX added the A321F aircraft to its operating certificate during the first quarter of 2023. The Company believes that the A321F will eventually become a highly sought-after cargo aircraft as a replacement for the aging and retiring Boeing B757 freighter fleet. During the six months ended June 30, 2026, the Company had three cargo aircraft operating and had one temporarily parked. During the six months ended June 30, 2026, GlobalX's Block Hours operated decreased 34.9% compared to the same period in 2025. The cargo charter market continues to be soft due to general economic conditions and excess capacity in the North American freight market. This decreased activity level demonstrates that the cargo charter market continues to be a significant drag on earnings, primarily due to the low rates offered by brokers and customers and the relatively low utilization rates on a per-aircraft basis relative to the rates offered. The Company expects this dynamic to continue and, consequently, is exploring all options to mitigate future losses, including, but not limited to, leasing out engines, utilizing engines in its passenger fleet, parking aircraft, and/or returning one or more of its freighter aircraft to lessors.

Previous wording

Unlike the cargo charter market, the passenger charter market continues to demonstrate strong demand and has served as the economic engine for GlobalX during the three months ended March 31, 2026. There are several macro factors, including the supply of aircraft, reduced direct competition, increased reliance on air charter by college sports teams and general increased customer demand, which are driving increased demand for our services. GlobalX anticipates the high level of demand will continue throughout 2026. To address this demand, the Company has prioritized the passenger charter market over the cargo charter market, devoted sales and operational resources to develop long-term relationships with key customers and looked to expand the markets served as opportunities arise.

Current wording

Unlike the cargo charter market, the passenger charter market continues to demonstrate strong demand and has served as the economic engine for GlobalX during the six months ended June 30, 2026. There are several macro factors, including the supply of aircraft, reduced direct competition, increased reliance on air charter by college sports teams, FIFA World Cup, and general increased customer demand, which are driving increased demand for our services. GlobalX anticipates the high level of demand will continue throughout 2026. To address this demand, the Company has prioritized the passenger charter market over the cargo charter market, devoted sales and operational resources to develop long-term relationships with key customers and looked to expand the markets served as opportunities arise.

Previous wording

Critical to GlobalX’s business model is maintaining a fleet of modern and cost-effective aircraft. To achieve this objective, GlobalX has selected what it believes to be the best overall single-aisle aircraft family to operate. This approach differs from that of traditional airlines, which purchase a variety of aircraft, often from different manufacturers, to achieve their operational flight sectors, resulting in increased training, operating and maintenance costs. GlobalX conducted research to determine the best aircraft to fly in competition with other narrow-body charter airlines in the single-aisle seat market and after such research GlobalX selected the A320 aircraft family.

Current wording

Critical to GlobalX’s business model is maintaining a fleet of modern and cost-effective aircraft. To achieve this objective, GlobalX has selected what it believes to be the best overall single-aisle aircraft family to operate. This approach differs from that of traditional airlines, which purchase a variety of aircraft, often from different manufacturers, to achieve their operational flight sectors, resulting in increased training, operating and maintenance costs. GlobalX conducted extensive research and determined the best aircraft to fly in competition with other narrow-body charter airlines in the single-aisle seat market selected the A320 aircraft family.

Previous wording

Our management team has extensive operating and leadership experience in the airfreight, airline, and aircraft leasing, maintenance, and management industries at companies such as Virgin America, American Airlines, US Airways, Atlas Air, DHL, Eastern Airlines Express, Emirates, North American Airlines, Miami Air, Spirit Airlines, Continental Airlines, Pan Am, and Flair Airlines, as well as the United States Army, and Air Force. In addition, our management team has a diversity of experience from other industries at companies such as KBR, Teladoc, Halliburton, Lehman Brothers, and the Burger King Corporation.

Current wording

Our management team has extensive operating and leadership experience in the airfreight, airline, and aircraft leasing, maintenance, and management industries at companies such as Virgin America, American Airlines, US Airways, Atlas Air, DHL, FedEx, Emirates, North American Airlines, Miami Air, Spirit Airlines, Continental Airlines, Pan Am, and Flair Airlines, as well as the United States Army, and Air Force. In addition, our management team has a diversity of experience from other industries at companies such as KBR, Teladoc, Halliburton, Lehman Brothers, and the Burger King Corporation.

Previous wording

The analysis of GlobalX results for the three month period ended March 31, 2026, and 2025 requires an understanding of how the Company fundamentally evolved during that time period. 2025 was our fourth year of full operations and was a period where the Company was focused on securing additional customers, entering additional markets and flying to new locations, primarily in the domestic and Caribbean markets and within the European market. As a growing company, we were also focused on operating effectively and efficiently.

Current wording

The analysis of GlobalX results for the three month period ended on June 30, 2026 and 2025 requires an understanding of how the Company fundamentally evolved during that time period. 2025 was the fourth year of full operations and was a period where the Company was focused on securing additional customers, entering additional markets and flying to new locations, primarily in the domestic and Caribbean markets and within the European market. As a growing company, we were also focused on operating effectively and efficiently.

Previous wording

In 2025, GlobalX continued expanding existing governmental agency relationships, acquired new partners, secured long-term cargo contracts, expanded operations in the European ACMI market and continued its operations with existing airlines. Our key metrics are Block Hours flown and Block Hours flown per available aircraft, which are the measures by which the Company tracks commercial activity. While other airlines discuss available seat miles, revenue per available seat mile, and cost per available seat mile, these metrics are not germane to our business model as an ACMI and Charter operator. GlobalX charters the entire aircraft, does not take fuel risk, and does not take third-party risk; therefore, our results are evaluated on a Block Hour and Utilization basis.

Current wording

In 2026, GlobalX continued expanding existing governmental agency relationships, acquired new partners, secured long-term cargo contracts, and continued its operations with existing airlines. Our key metrics are Block Hours flown and Block Hours flown per available aircraft, which are the measures by which the Company tracks commercial activity. While other airlines discuss available seat miles, revenue per available seat mile, and cost per available seat mile, these metrics are not germane to our business model as an ACMI and Charter operator. GlobalX charters the entire aircraft, does not take fuel risk, and does not take third-party risk; therefore, our results are evaluated on a Block Hour and Utilization basis.

Previous wording

Aircraft fuel increased by $0.4 million or 5.5% from $7.4 million to $7.8 million. Approximately 50.0% or $0.2 million of this increase is attributable to the increase in the amount of Charter and Non-Revenue Block Hours and approximately 50.0% or $0.2 million is attributable to an increase in the price of base jet fuel.

Current wording

Aircraft fuel increased by $1.0 million or 34.2% from $3.0 million to $4.0 million. The increase was primarily driven by a $1.5 million increase in the price of base jet fuel. The increase was partially offset by $0.5 million decrease in the amount of Charter and Non-Revenue Block Hours.

Previous wording

Depreciation and amortization increased by $2.4 million or 107.6%, from $2.2 million in 2025 to $4.7 million, primarily driven by aircraft deliveries secured on finance leases, the purchase of an A320 aircraft, and an increase in rotable parts owned.

Current wording

Depreciation and amortization increased by $3.0 million or 113.8%, from $2.6 million in 2025 to $5.6 million in 2026, primarily driven by aircraft deliveries secured on finance leases, the purchase of an A320 aircraft, and an increase in rotable parts owned.

Previous wording

Contracted ground and aviation services expenses increased by $0.9 million or 15.0%, from $6.3 million in 2025 to $7.2 million in 2026. This was primarily driven by an increased rate since contracted ground and aviation services are not associated with ACMI services.

Current wording

Contracted ground and aviation services expenses increased by $0.4 million or 9.9%, from $4.5 million in 2025 to $4.9 million in 2026. This was primarily driven by an increased rate since contracted ground and aviation services are not associated with ACMI services.

Previous wording

Aircraft rent decreased $1.8 million or 11.6%, from $15.2 million in 2025 to $13.5 million in 2026, primarily driven by a $1.1 million decrease in the number of sub-service hours required. Adding to the savings was a decrease in base rent expenses of $1.3 million or 17.3% due to the decrease in the average number of aircraft on operating leases from 15.0 to 13.0 aircraft in the fleet. Offsetting the savings, was an increase in supplemental rent expenses of $0.6 million or 10.5% from $6.0 million in 2025 to $6.6 million in 2026 driven by a year-over-year increase in Block Hours.

Current wording

Aircraft rent decreased $1.5 million or 11.0%, from $13.9 million in 2025 to $12.4 million in 2026, primarily driven by a decrease in base rent expenses of $1.1 million or 16.0% due to the decrease in the average number of aircraft on operating leases from 15.0 to 13.3 aircraft in the fleet. Adding to the savings was a decrease in supplemental rent expenses of $0.5 million or 7.2% from $6.7 million in 2025 to $6.2 million in 2026 driven by a year-over-year decrease in Block Hours on leased aircraft. Offsetting the savings, was a $0.1 million increase in the number of sub-service hours required.

Previous wording

Net Income, for the period, due to events noted above, increased by $2.3 million, from a net income of $0.5 million in 2025 to a net income of $2.8 million in 2026.

Current wording

Net (Loss) Income attributable to the Company for the period, due to events noted above, swung by $1.9 million, from $0.6 million income in 2025 to a $1.3 million loss in 2026.

Previous wording

Charter revenue for the period increased $3.7 million or 12.3%, from $30.5 million in 2025 to $34.2 million in 2026. This increase was primarily driven by an increase in the rate for Charter flying of 31.6% from $13,588 per Block Hour in 2025 to $17,881 per Block Hour in 2026 resulting in an $8.2 million increase in revenue. This increase was partially offset by a decrease in Charter Block Hours of 14.7% from 2,246 Block Hours in 2025 to 1,916 Block Hours in 2026, which resulted in a $4.5 million decrease in revenue. The primary driver for the per Block Hour increase was related to both high market demand and a shortage of supply as competitors reduced capacity. The decrease in Charter Block Hours was due to an intentional focus on an increased level of flying on an ACMI basis and the Company’s exit from the Cuba-based charter market.

Current wording

Charter revenue for the period increased $2.6 million or 5.6%, from $45.8 million in 2025 to $48.4 million in 2026. This increase was primarily driven by an increase in the rate for Charter flying of 32.6% from $13,481 per Block Hour in 2025 to $17,937 per Block Hour in 2026 resulting in a $12.0 million increase in revenue. This increase was partially offset by a 20.6% decrease in Charter Block Hours, from 3,400 Block Hours in 2025 to 2,698 Block Hours in 2026, which resulted in a $9.6 million decrease in revenue. The increase in the per-Block-Hour rate was primarily driven by high market demand, higher fuel prices, and a shortage of supply as competitors reduced capacity. The decrease in Charter Block Hours was due to an intentional focus on an increased level of flying on an ACMI basis and the Company’s exit from the Cuba-based charter market.

Previous wording

ACMI revenue for the period increased by $5.3 million or 15.6% from $34.3 million in 2025 to $39.7 million in 2026. This increase was driven by an increase in Block Hours from 5,076 in 2025 to 6,079 in 2026, an increase of 19.7% or 1,002 Block Hours resulting in a $7.3 million increase in revenue. This increase was partially offset by a decrease in the rate for ACMI flying of 4.5% from $6,740 per Block Hour in 2025 to $6,429 per Block Hour in 2026 resulting in a $1.9 million decrease in revenue. The primary driver for the Block Hour increase was related to both high market demand and a shortage of supply. The rate decrease is a result of longer term ACMI contracts with higher minimum hours resulting in a lower rate per hour.

Current wording

ACMI revenue for the period increased by $5.4 million or 6.9% from $78.9 million in 2025 to $84.3 million in 2026. This increase was driven by an increase in Block Hours from 11,860 in 2025 to 13,113 in 2026, an increase of 10.6% or 1,253 Block Hours resulting in a $8.3 million increase in revenue. This increase was partially offset by a decrease in the rate for ACMI flying of 3.0% from $6,648 per Block Hour in 2025 to $6,427 per Block Hour in 2026 resulting in a $2.9 million decrease in revenue. The primary driver for the Block Hour increase was related to both high market demand and a shortage of supply. The decrease in rates is a result of longer term ACMI contracts with higher minimum hours resulting in a lower rate per hour.

Previous wording

Other revenue for the period increased by $0.9 million from $1.8 million in 2025 to $2.7 million in 2026. The increase is primarily driven by more fueling and other administrative services provided to our customers.

Current wording

Other revenue for the period increased by $2.6 million from $3.3 million in 2025 to $5.9 million in 2026. The increase is primarily driven by more fueling and other administrative services provided to our customers.

Previous wording

Salaries, wages, and benefits increased $2.0 million or 10.6%, from $18.8 million in 2025 to $20.8 million in 2026, primarily due to expanded headcount across the organization to support the growing fleet and operations, as well as scheduled compensation adjustments reflecting market conditions and performance across all levels of the company. Pilots increased from 146 to 155, or by 6.2%.

Current wording

Salaries, wages, and benefits increased $2.4 million or 6.1%, from $38.7 million in 2025 to $41.1 million in 2026, primarily due to expanded headcount across the organization to support the growing fleet and operations, as well as scheduled compensation adjustments reflecting market conditions and performance across all levels of the company. This increase was partially offset by initiating several actions to reduce headcount and salaries including outsourcing line maintenance at GlobalX’s primary base. Pilots increased from 150 to 165 or 10.0%.

Previous wording

Operating income improved $3.0 million, from $3.1 million in 2025 to $6.1 million in 2026. Operating income as a percentage of revenue improved by 3.3% from 4.7% in 2025 to 8.0% in 2026. This improvement was a result of GlobalX’s ability to grow its revenue faster than its cost structure as the airline works towards achieving scale and profitability. Three factors drove these results: rates, utilization and scale. The Company’s Charter rate for the period grew 31.6%, from $13,588 per Block Hour in 2025 to $17,881 per Block Hour in 2026. The Company’s average utilization per available aircraft grew 24.9% for the period, from 442 Block Hours in 2025 to 552 Block Hours in 2026. The Company’s increasing scale also contributed to this positive result, for example, there were savings on a per Block Hour basis in travel and insurance, which combined with the other factors to drive the improvement.

Current wording

Operating income improved by $1.1 million, from $6.4 million in 2025 to $7.5 million in 2026. Operating income as a percentage of revenue improved by 0.4% from 5.0% in 2025 to 5.4% in 2026. This improvement was a result of GlobalX’s ability to grow its revenue faster than its cost structure as the airline works towards achieving scale and profitability. Three factors drove these results: rates, utilization and scale. The Company’s Charter rate for the period grew 32.6%, from $13,481 per Block Hour in 2025 to $17,937 per Block Hour in 2026. The Company’s average utilization per available aircraft grew 19.1% for the period, from 902 Block Hours in 2025 to 1,075 Block Hours in 2026. The Company’s increasing scale also contributed to this positive result, for example, there were savings on a per Block Hour basis in travel and insurance, which combined with the other factors to drive the improvement.

Previous wording

The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), on a going concern basis which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. As of March 31, 2026, the Company had a working capital deficit of $63.6 million and retained deficit of $70.9 million. The Company began flight operations in August 2021. Without ongoing income generation or additional financing, the Company will be unable to fund general and administrative expenses and working capital requirements for the next 12 months. These material uncertainties raise substantial doubt as to the Company’s ability to continue as a going concern.

Current wording

The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), on a going concern basis which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. As of June 30, 2026, the Company had a working capital deficit of $67.7 million and retained deficit of $72.3 million. The Company began flight operations in August 2021. Without ongoing income generation or additional financing, the Company will be unable to fund general and administrative expenses and working capital requirements for the next 12 months. These material uncertainties raise substantial doubt as to the Company’s ability to continue as a going concern.

Previous wording

As of March 31, 2026, the Company had approximately $16.9 million in unrestricted cash and cash equivalents and approximately $3.1 million in restricted cash, an increase and decrease of approximately $0.2 million and $0.7 million, respectively, from December 31, 2025. The changes were primarily due to new aircraft deliveries, customer deposits, and cash flow from operations.

Current wording

As of June 30, 2026, the Company had approximately $9.9 million in unrestricted cash and cash equivalents and approximately $2.0 million in restricted cash, a decrease of approximately $6.8 million and $1.9 million, respectively, from December 31, 2025, primarily due to new aircraft deliveries, customer deposits, and cash flow from operations.

Previous wording

The Company has significant fixed and noncancelable lease commitments of aircraft, equipment and related maintenance checks. As of March 31, 2026, the Company had total of $26.7 million due in the next 12 months of future minimum lease payments under finance and operating leases. As of March 31, 2026, the Company had total of $98.5 million due after 12 months from the balance sheet date of future minimum lease payments under finance and operating leases, and approximately $39.9 million in notes payable included in the non-current liabilities presented in the Company’s consolidated balance sheet. The Company ended the period of January 1 to March 31, 2026 with fifteen passenger aircraft and four cargo aircraft and expects the fleet to increase to nineteen passenger aircraft and remain at four cargo aircraft by the end of 2026. To achieve the number of aircraft deliveries in 2026, the Company currently has three aircraft under lease with partial or total deposits paid.

Current wording

The Company has significant fixed and noncancelable lease commitments of aircraft, equipment and related maintenance checks. As of June 30, 2026, the Company had total of $28.3 million due in the next 12 months of future minimum lease payments under finance and operating leases. As of June 30, 2026, the Company had total of $101.7 million due after 12 months from the balance sheet date of future minimum lease payments under finance and operating leases, and approximately $39.4 million in notes payable included in the non-current liabilities presented in the Company’s consolidated balance sheet. The Company ended the period of January 1 to June 30, 2026 with nineteen passenger aircraft and four cargo aircraft and expects the fleet to increase to twenty-one passenger aircraft and remain at four cargo aircraft by the end of 2026. To achieve the number of aircraft deliveries in 2026, the Company currently has four aircraft under lease with partial or total deposits paid.

Previous wording

In 2026 GlobalX expects to continue its business growth by (i) providing services on an ACMI basis using wet lease contracts to airlines and non-airlines, (ii) on a Charter basis providing passenger and cargo aircraft charter services to customers by charging an “all-in” fee that includes fuel, insurance, landing fees, navigation fees and most other operational fees and costs, (iii) extending GlobalX current operations within the United States, Europe, Canada, Central and South America and continuing recruiting and maintaining a dynamic team of customer-centric flight crews, ground teams and management staff, (iv) increasing GlobalX’s passenger aircraft fleet to nineteen and GlobalX’s cargo aircraft fleet to remain at four by the end of 2026, and (v) achieving an increase in total revenue.

Current wording

In 2026 GlobalX expects to continue its business growth by (i) providing services on an ACMI basis using wet lease contracts to airlines and non-airlines, (ii) on a Charter basis providing passenger and cargo aircraft charter services to customers by charging an “all-in” fee that includes fuel, insurance, landing fees, navigation fees and most other operational fees and costs, (iii) extending GlobalX current operations within the United States, Europe, Canada, Central and South America and continuing recruiting and maintaining a dynamic team of customer-centric flight crews, ground teams and management staff, (iv) increasing GlobalX’s passenger aircraft fleet to twenty-one and GlobalX’s cargo aircraft fleet to remain at four by the end of 2026, and (v) achieving an increase in total revenue.

Previous wording

The Company expects to improve profitability during the year 2026, mainly as a result of GlobalX’s strategy implemented starting in 2024 of developing and implementing growth in its revenue faster than its cost structure. There are a few factors the Company expects to drive the improved margins, including securing higher rates for both ACMI and Charter contracts and increasing the number of passenger aircraft from 15 to 19 along with improving seasonality on Cargo aircraft contracts.

Current wording

The Company expects to improve profitability during the year 2026, mainly as a result of GlobalX’s strategy implemented starting in 2024 of developing and implementing growth in its revenue faster than its cost structure. There are a few factors the Company expects to drive the improved margins, including securing higher rates for both ACMI and Charter contracts and increasing the number of passenger aircraft from 19 to 21 along with improving seasonality on Cargo aircraft contracts.

Previous wording

There can be no assurance that additional capital or other types of financing will be available if needed or that, if available, the terms of such financing will be favorable to GlobalX. If additional financing is raised by GlobalX through the issuance of its securities, then shareholders may suffer significant dilution. If additional financing is not available, or if available, not available on satisfactory terms, then this could result in a material adverse effect or could require GlobalX to reduce, delay, scale back or eliminate portions of its actual or proposed operations or could prevent GlobalX from continuing as a going concern. GlobalX may also need to raise capital by incurring long-term or short-term indebtedness in order to fund its business objectives. This could result in increased interest expense and decreased net income. Investors are cautioned that there can be no assurance as to the terms of any such financing and whether any such financing will be available. The level of GlobalX’s indebtedness could impair its ability to obtain additional financing to timely take advantage of future business opportunities that may arise.

Current wording

There can be no assurance that additional capital or other types of financing will be available if needed or that, if available, the terms of such financing will be favorable to GlobalX. If additional financing is raised by GlobalX through the issuance of its securities, then shareholders may suffer significant dilution. If additional financing is not available, or if available, not available on satisfactory terms, then this could result in a material adverse effect or could require GlobalX to reduce, delay, scale back or eliminate portions of its actual or proposed operations or could prevent GlobalX from continuing as a going concern. GlobalX may also need to raise capital by incurring long-term or short-term indebtedness in order to fund its business objectives. This could result in increased interest expenses and decreased net income. Investors are cautioned that there can be no assurance as to the terms of any such financing and whether any such financing will be available. The level of GlobalX’s indebtedness could impair its ability to obtain additional financing to timely take advantage of future business opportunities that may arise.

Previous wording

The most significant liquidity events during the three months ended March 31, 2026, were as follows:

Current wording

The most significant liquidity events during the six months ended June 30, 2026, were as follows:

Previous wording

Operating activities. During the three months ended March 31, 2026, net cash provided by operating activities increased $8.9 million to $9.0 million, consisting primarily of $8.1 million in noncash adjustments for depreciation and amortization of fixed assets, operating lease right of use assets and debt issue costs, $2.8 million in net income, $1.7 million in interest on finance leases, $0.5 million of share-based payments, a decrease of $1.8 million in accounts receivable, an increase of $1.1 million in accounts payable, and a decrease of $0.3 million in assets held for sale. These were partially offset by an increase of $3.5 million in operating lease obligations, an increase of $3.4 million in accrued liabilities and other liabilities, and an increase of $0.7 million in prepaid expenses and other current assets. For 2025, net cash provided by operating activities during the three months ended March 31, 2025 increased $2.2 million to $0.1 million, consisting primarily of $6.3 million in noncash adjustments for depreciation and amortization of fixed assets, operating lease right of use assets and debt issue costs, $1.1 million in interest on finance leases, $0.5 million in net income, $0.5 million of share-based payments, and an increase of $0.2 million in accounts payable. These were partially offset by a decrease of $4.1 million in operating lease obligations, an increase of $2.2 million in accounts receivable, a decrease of $2.2 million in accrued liabilities and other liabilities, and an increase of $0.1 million in prepaid expenses and other current assets.

Current wording

Operating activities. During the six months ended June 30, 2026, net cash provided by operating activities decreased $1.5 million to $7.4 million, consisting primarily of $10.2 million of decrease in accrued liabilities and other liabilities, $7.0 million of decrease in operating lease obligations, and $1.9 million of increase in prepaid expenses and other current assets. These were partially offset by $17.3 million in noncash adjustments for depreciation and amortization of fixed assets, operating lease right of use assets and debt issue costs, $3.6 million in interest on finance leases, $1.4 million of net income, $1.1 million of share-based payments, $0.3 million of credit losses, $1.9 million of decrease in accounts receivable, $0.6 million of increase in accounts payable, and $0.3 million of decrease in assets held for sale. For 2025, net cash provided by operating activities during the six months ended June 30, 2025 increased $10.2 million to $8.9 million, consisting primarily of $13.2 million in noncash adjustments for depreciation and amortization of fixed assets, operating lease right of use assets and debt issue costs, $2.2 million in interest on finance leases, $1.1 million of net income, $1.3 million of share-based payments, and $0.6 million of increase in accounts payable. These were partially offset by $8.4 million of decrease in operating lease obligations, and $1.3 million of increase in prepaid expenses and other current assets.

Previous wording

Investing activities. During the three months ended March 31, 2026, net cash used in investing activities increased $3.2 million to $6.0 million, consisting of $3.7 million of Purchases of property and equipment and $2.3 million of increase of deposits, deferred costs and other assets. During the three months ended March 31, 2025, net cash used in investing activities decreased $0.4 million to $2.9 million, consisting of $2.7 million of Purchases of property and equipment and $0.1 million of increase of deposits, deferred costs and other assets.

Current wording

Investing activities. During the six months ended June 30, 2026, net cash used in investing activities increased $3.1 million to $9.7 million of net cash used in investing activities, consisting of $6.2 million of Purchases of property and equipment and $3.6 million of increase of deposits, deferred costs and other assets. During the six months ended June 30, 2025, net cash used in investing activities increased $1.4 million to $6.6 million, consisting of $5.4 million of Purchases of property and equipment and $1.2 million of increase of deposits, deferred costs and other assets.

Previous wording

Financing activities. During the three months ended March 31, 2026, net cash used in financing activities increased $2.5 million to $3.5 million of net cash used in financing activities, consisting of $2.7 million of Principal payments on finance leases and $0.9 million of Principal payments on note payable. During the three months ended March 31, 2025, net cash used in financing activities increased $0.9 million to $1.1 million of net cash used in financing activities, consisting primarily of $1.1 million of Principal payments on finance leases.

Current wording

Financing activities. During the six months ended June 30, 2026, net cash used in financing activities increased $4.0 million to $6.3 million, consisting of $4.7 million of Principal payments on finance leases, $1.7 million of Principal payments on note payable, and $0.1 million of Noncontrolling interest dividends paid to the holder of the Noncontrolling interest in Top Flight, a subsidiary in which the Company holds an 80% membership interest. These were partially offset by $0.1 million of Proceeds on issuance of shares. During the six months ended June 30, 2025, net cash used in financing activities increased $1.5 million to $2.3 million of net cash used in financing activities, consisting primarily of $2.4 million of Principal payments on finance leases and $0.1 million of Noncontrolling interest dividends paid to the holder of the Noncontrolling interest in Top Flight. These were partially offset by $0.2 million of Proceeds on issuance of shares. These distributions were made pursuant to Top Flight's operating agreement and do not represent dividends on the Company's common stock.