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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2026

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from __________ to __________

 

PREMIER AIR CHARTER HOLDINGS INC.

(Exact name of registrant as specified in its charter)

 

Nevada 000-56312 99-0385465
(State or other jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification Number)
     
2006 Palomar Airport Road, Suite 210, Carlsbad, CA 92011
(Address of principal executive offices) (Zip Code)

 

  (858) 239-0788  
(Registrant’s Telephone Number)

 

Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such filings). Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer ☐ Accelerated filer ☐
Non-accelerated filer Smaller reporting company
  Emerging growth company 

   

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No

 

At May 15, 2026, there were 280,848,293 shares of the registrant’s $0.001 par value common stock issued and outstanding.

 

 

 

   

 

 

TABLE OF CONTENTS

 

    Page No.
     
  PART I - FINANCIAL INFORMATION  
     
Item 1. Unaudited Financial Statements 4
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 21
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 24
     
Item 4. Controls and Procedures 24
     
  PART II - OTHER INFORMATION  
     
Item 1. Legal Proceedings 25
     
Item 1A. Risk Factors 25
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 25
     
Item 3. Defaults Upon Senior Securities 25
     
Item 4. Mine Safety Disclosures 25
     
Item 5. Other Information 25
     
Item 6. Exhibits 26
     
  Signatures 28

 

 

 

 

 2 

 

 

Forward-Looking Statements

 

This Quarterly Report on Form 10-Q contains “forward-looking statements.” When contained in this Report, the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside our management’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements due to numerous factors discussed from time to time in this Report, including the risks described under Item 2 - “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Report and in other documents which we file with the Securities and Exchange Commission (“SEC”). These forward-looking statements are based on information available as of the date and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

 

Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors discussed from time to time in this Report, including the risks described under Item 2 - “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Report and in other documents which we file with the Securities and Exchange Commission (“SEC”). In addition, such statements could be affected by risks and uncertainties related to:

 

  · the ability to implement business plans, forecasts, and other expectations and identify and realize additional opportunities;
  · cessation of related party financial support;
  · inability to secure third-party debt or equity financing on acceptable terms or at all;
  · Aircraft downtime, maintenance delays, or loss of key charter contracts;
  · Adverse regulatory changes in FAA oversight or private aviation;
  · Default under aircraft leases or financing agreements
  · the ability to implement business plans, forecasts, and other expectations and identify and realize additional opportunities;
  · our results of operations and financial condition;
  · costs related to being a public company;
  · limited liquidity and trading of our securities;
  · that the price of our securities may be volatile due to a variety of factors, including changes in the competitive and highly regulated industry in which we operate, variations in operating performance across competitors, changes in laws and regulations affecting our business and any changes in our capital structure;
  · the risk of downturns in the aviation industry, including due to increases in fuel costs in light of the war in Ukraine, the Israel and Hamas conflict in Gaza and other global political and economic issues;
  · a changing regulatory landscape in the highly competitive aviation industry;
  · risks associated with the overall economy, including recent and expected future increases in interest rates and the potential for recession; and
  · other risks and uncertainties set forth in our filings entitled “Risk Factors” including in our Annual Report on Form 10-K.

 

Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may vary in material respects from those expressed or implied by these forward- looking. The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof, except as required by law. Investors should not place undue reliance on these statements.

 

 

 

 3 

 

 

PART I - FINANCIAL INFORMATION

 

ITEM 1. UNAUDITED FINANCIAL STATEMENTS

 

PREMIER AIR CHARTER HOLDINGS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

           
   March 31, 2026
(unaudited)
   December 31, 2025
(audited)
 
Assets          
Cash  $288,412   $213,175 
Accounts receivable, net allowance of $1,801,299 and $1,568,030, respectively   3,467,396    2,902,173 
Other receivables   226,062    226,062 
Due from related parties, current portion   181,163    60,479 
Prepaid expenses and other current assets   325,883    325,883 
Total current assets   4,488,916    3,727,772 
Property and equipment, net   8,589,690    8,412,922 
Right of use assets - operating   11,456,797    9,449,375 
Right of use assets - financing   11,195,314    11,356,858 
Investment - related party   58,851    46,240 
Maintenance reserves   2,988,566    3,058,945 
Total assets  $38,778,134   $36,052,112 
           
Liabilities and Stockholder's Equity (Deficit)          
Accounts payable and accrued expenses  $6,356,275   $4,838,507 
Deferred revenue   296,776    733,785 
Due to related parties   3,871,977    2,701,004 
Right of use liabilities - operating   2,431,222    1,974,051 
Right of use liabilities - financing   1,872,283    1,895,018 
Long-term debt, current portion   3,849,230    4,036,728 
Long-term debt, related parties, current portion   154,127    154,127 
Total current liabilities   18,831,890    16,333,220 
Right of use liabilities - operating, net of current portion   8,944,330    7,475,324 
Right of use liabilities - financing, net of current portion   7,857,496    7,943,661 
Long-term debt, net of current portion        
Long-term debt, related parties, net of current portion   331,593    331,593 
Total liabilities   35,965,309    32,083,798 
           
Commitments and contingencies (Note 8)        
           
Stockholders' Equity          
Series A Preferred stock: par value $0.001; 155,000 shares authorized; 145,410 issued and outstanding at March 31, 2026 and December 31, 2025   9,351,465    9,351,465 
Common stock: par value $0.001; 5,000,000,000 shares authorized; 280,848,293 and 280,848,293 issued and outstanding, respectively   280,848    280,848 
Additional paid-in capital   82,417    81,500 
Accumulated deficit   (6,901,905)   (5,745,499)
Stockholders' equity   2,812,825    3,968,314 
Total liabilities and total stockholders' equity  $38,778,134   $36,052,112 

 

The accompanying notes are an integral part of these financial statements.

 

 

 

 4 

 

 

PREMIER AIR CHARTER HOLDINGS INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

 

           
   Three Months Ended March 31 
   2026
(unaudited)
   2025
(audited)
 
Revenue  $7,203,459   $5,875,523 
Cost of sales   6,666,359    5,728,935 
Gross profit   537,100    146,588 
Operating expenses          
Payroll and related expenses   407,683    368,745 
Selling, general and administrative   869,880    633,521 
Total operating expenses   1,277,563    1,002,266 
Loss from operations   (740,463)   (855,678)
Other (income) expense, net          
Interest expense   435,178    306,521 
Other   (19,235)   61,406 
Other expense (income), net   415,943    367,927 
Net loss  $(1,156,406)  $(1,223,605)
           
Net loss per basic and diluted  $(0.00)  $(0.00)
Weighted average number of common shares outstanding, basic and diluted   280,848,293    247,199,325 

 

The accompanying notes are an integral part of these financial statements.

 

 

 

 

 5 

 

 

PREMIER AIR CHARTER HOLDINGS INC.

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT)

 

                                    
   Preferred Stock   Common Stock             
   Shares   Amount   Shares   Amount   Additional Paid-in Capital   Accumulated Deficit   Total Stockholder's Equity (Deficit) 
Balance, December 31, 2024      $    237,871,049   $237,871   $40,000   $(1,837,901)  $(1,560,030)
Acquisition of Premier Air Charter Inc.           41,977,244    41,977        (41,977)    
Net loss                       (1,223,605)   (1,223,605)
Balance, March 31, 2025   145,410   $9,351,465    279,848,293   $279,848   $40,000   $(3,103,483)  $2,783,635 
                                    
                                    
                                    
   Preferred Stock   Common Stock             
   Shares   Amount   Shares   Amount   Additional Paid-in Capital   Accumulated Deficit   Total Stockholder's Equity (Deficit) 
Balance, December 31, 2025   145,410   $9,351,465    280,848,293   $280,848   $81,500   $(5,745,499)  $3,968,314 
Stock-based compensation                   917        917 
Net loss                       (1,156,406)   (1,156,406)
Balance, March 31, 2026   145,410   $9,351,465    280,848,293   $280,848   $82,417   $(6,901,905)  $2,812,825 

 

The accompanying notes are an integral part of these financial statements.

 

 

 

 6 

 

 

PREMIER AIR CHARTER HOLDINGS INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

           
   Three Months Ended March 31, 
   2026
(unaudited)
   2025
(unaudited)
 
Cash flows from operating activities          
Net loss  $(1,156,406)  $(1,223,605)
Adjustments to reconcile net loss to net cash provided by operating activities:          
Provision for bad debt expense   233,270     
Depreciation and amortization   576,342    263,853 
(Income) loss on investment in related party   (12,611)   65,857 
Stock based compensation   917     
Changes in operating assets and liabilities:          
Accounts receivable   (798,493)   (48,342)
Other receivables       13,737 
Due from/to related parties   1,050,289    1,221,750 
Accounts payable and accrued expenses   1,517,768    519,631 
Deferred revenue   (437,009)   181,988 

Right of use assets/liabilities - operating

   (81,245)    
Net cash provided by operating activities   892,822    994,869 
           
Cash flows from investing activities          
Acquisition of property and equipment   (367,274)   (691,055)
Capitalized of engine reserves   (153,913)   (280,552)
Net cash used in investing activities   (521,187)   (971,607)
           
Cash flows from financing activities          
Payments on financing lease obligations   (108,900)   (101,900)
Repayments of long-term debt   (187,498)    
Net cash provided by (used in) financing activities   (296,398)   (101,900)
           
Net change in cash   75,237    (78,638)
Cash at beginning of period   213,175    225,228 
Cash at end of the period  $288,412   $146,590 
           
Supplemental disclosure of cash flow information          
Non-cash investing and financing activities:          
Right of use assets and liabilities - operating  $2,489,173   $ 
           
Cash paid during the year for:          
Interest  $435,178   $306,521 
Income taxes  $   $ 

 

The accompanying notes are an integral part of these financial statements.

 

 

 

 7 

 

 

PREMIER AIR CHARTER HOLDINGS INC.

(FORMERLY ALTAIR INTERNATIONAL CORP.)

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

 

 

1.          Organization and Business

 

Formation and Business of the Company

 

Altair International Corp., formerly Premier Air Charter, LLC, (“Premier”) was acquired by Tipp Aviation, LLC (“Tipp Aviation” or “Tipp”) on July 1, 2019 (acquisition date). Premier was a 100% owned subsidiary of Tipp Aviation. Tipp Aviation is a subsidiary of Tipp Investments, LLC.

 

Premier is a San Diego-based jet charter company that provides private charter flights, aircraft management services, and aircraft maintenance. The Premier has its registered office address at 2006 Palomar Airport Road, Suite 210, Carlsbad, CA 92011, which is also the principal place of business.

 

On February 16, 2024, Premier converted to a C-Corporation whereby the 300,000 membership units outstanding at Premier Air Charter, LLC were exchanged for 10,000 shares of the Company’s no par value common stock.

 

On May 30, 2025, Altair International Corp. changed its name to Premier Air Charter Holdings Inc. and a change in its trading symbol to “PREM”.

 

Going Concern and Liquidity

 

The Company’s financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, the realization of assets, and liquidation of liabilities in the normal course of business. During the most recent calendar year and for the three months ended March 31, 2026, the Company has incurred a net loss.

 

There can be no assurance that the Company will be successful in obtaining additional funding, or that the Company’s projections of its future working capital needs will prove accurate, or that any additional funding will be sufficient to continue operations in future years. In addition, support of the Company’s operations is dependent on receiving support from related parties which primarily consists of financial support for revenue and operating expenses. If the Company cannot collect all receivables owed or secure adequate additional funding, the Company may be forced to make reductions in spending, extend payment terms with supplies, liquidate assets where possible, and/or suspend or curtail planned programs. Any of these actions could materially harm the Company’s business, results of operations, and prospects. The Company’s ability to raise additional capital may be adversely impacted by potential worsening global economic conditions and disruptions to, and volatility in, financial markets in the United States and worldwide resulting from ongoing global issues. Accordingly, there is substantial doubt about the Company’s ability to continue as a going concern.

 

2.          Summary of Significant Accounting Policies

 

Basis of Presentation

 

The Company’s unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”), and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and reflect all adjustments, consisting of normal recurring adjustments, which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company as of and for the three months ended March 31, 2026, and not necessarily indicative of the results to be expected for the full year ending December 31, 2026. These unaudited financial statements should be read in conjunction with the financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

 

 

 

 8 

 

 

Use of Estimates

 

The preparation of the Company’s financial statements requires management to make estimates and assumptions that impact the reported amounts of assets, liabilities, revenue, and expenses and the disclosure in the Company’s financial statements and accompanying notes. The Company based its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. By their nature, estimates are subject to an inherent degree of uncertainty and, as such, actual results may differ from management’s estimates.

 

Assets and liabilities that are subject to judgment and use of estimates include the determination of an allowance for doubtful accounts, deferred revenue, determination of the incremental borrowing rate used and the classification of right of use leases, recoverability of long-lived assets, including engine reserves and estimates used in the Company’s going concern analysis.

 

Concentration of Credit Risk

 

Accounts receivable are spread over many customers. Credit quality is monitored on an ongoing basis, and reserves for estimated credit losses are recorded as needed. There was one customer that accounted for 44% and 9% of revenue for the three months ended March 31, 2026 and 2025, respectively. There were two customers that accounted for 93% and 97% of accounts receivable as of March 31, 2026 and December 31, 2025, respectively.

  

Fair Value of Financial Instruments

 

ASC Topic 820, Fair Value Measurement, establishes a fair value hierarchy for instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing an asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances.

 

ASC 820 identifies fair value as the exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a three-tier fair value hierarchy that distinguishes between the following:

 

Level 1:  Observable inputs such as quoted prices in active markets for identical assets or liabilities.

Level 2:  Inputs, other than quoted prices in active markets, that are observable for the asset or liability, either directly or indirectly.

Level 3:  Unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions.

 

Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability. The Company’s financial assets are subject to fair value measurements on a recurring basis. As of March 31, 2026 and December 31, 2025, The Company’s investment – related party is considered a level 2 item as the fair market value is based upon the common stock of Dalrada Financial Corporation.

 

 

 

 9 

 

 

Revenues

 

The Company’s disaggregated revenues comprised of the following for the three months ended March 31:

        
   March 31,   March 31, 
   2026   2025 
         
Charter sales  $6,965,996   $5,801,367 
Management fees   22,058    12,750 
Maintenance revenues   173,808    59,552 
Other revenues   41,597    1,854 
Total:  $7,203,459   $5,875,523 

 

Net Income Per Share

 

Net income per share is computed by dividing net income by the weighted average shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, “Earnings per Share”. Basic earnings per share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares outstanding during the year. Diluted earnings per share calculations are determined by dividing net income by the weighted average number of shares and dilutive share equivalents outstanding. The Company has potentially dilutive shares related to convertible preferred shares outstanding for the periods presented within these financial statements.

 

Operating Segments and Related Disclosures

 

We manage our company as one reportable operating segment, The segment information aligns with how the Company’s Chief Operating Decision Maker (“CODM”) reviews and manages our business. The Company’s CODM is the Company’s Chief Executive Officer. Financial information and annual operating plans and forecasts are prepared and reviewed by the CODM at a consolidated level. The CODM assesses performance for the company and decides how to better allocate resources based on consolidated net loss that is reported on the Consolidated Statements of Operations. Our objective in making resource allocation decisions is to optimize the consolidated financial results. The accounting policies of our operations segment are the same as those described in the summary of significant accounting policies herein. The CODM primarily uses net loss, which is located on the condensed statement of operations, as the key measure of segment performance. This metric is used to assess the Company’s overall profitability and to make decisions regarding resource allocation.

 

Recent Accounting Pronouncements

 

The FASB issues ASUs to amend the authoritative literature in ASC. There have been several ASUs issued to date, that amend the original text of ASC. Management believes that those issued to date either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to us or (iv) are not expected to have a significant impact on our financial statements.

 

 

 

 10 

 

 

In November 2024, the FASB issued the ASC 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-04) Disaggregation of Income Statement Expenses, which requires additional disclosure of the nature of expenses included in the income statement in response to requests from investors for more information about an entity’s expenses. The new standard requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as disclosures about selling expenses. The guidance is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods within annual reporting periods beginning after December 15, 2027. The requirements will be applied prospectively with the option for retrospective application. Early adoption is permitted. The Company is currently evaluating the impact this new guidance will have on its financial statements and disclosures.

  

3.          Financial Statement Elements

 

Property and Equipment

 

Property and equipment, net, as of March 31, 2026 and December 31, 2025 consists of the following:

        
   March 31,   December 31, 
   2026   2025 
         
Aircraft and improvements  $9,623,270   $9,255,997 
Equipment   126,872    126,872 
Building Signage   12,885    12,885 
Vehicles   3,000    3,000 
Furniture   11,239    11,239 
Total:   9,777,266    9,409,993 
Less accumulated depreciation   (1,187,576)   (997,071)
Total property and equipment  $8,589,690   $8,412,922 

 

Depreciation related to property and equipment was $190,506 and $102,309 for the three months ended, 2026 and 2025, respectively.

 

Aircraft Engine Long Term Service Contracts

 

The Company is a party to long-term service contracts to perform engine replacement and major maintenance. These contracts extend the useful life of an engine by providing major maintenance and/or replacement engines to mitigate risk of lost charter revenue due to aircraft downtime. Under these arrangements, the Company makes periodic payments in advance of services being performed or replacement parts being provided. These payments are generally based on contractual minimum usage requirements as well as variable usage in excess of such minimum thresholds. Payments made for such contracts for aircraft operated under operating leases are expensed as incurred. In the case of long-term service contracts for aircraft owned or financed, the Company evaluates the economic substance of these arrangements and accounts for the related payments based on their underlying nature as follows:

 

  · Reserve balances – Amounts funded under these programs represent prepaid maintenance funding and are recorded as an asset on the balance sheet. These balances are amortized over the remaining term of the respective agreements based on estimated level-rate engine hours over the contractual term of the maintenance arrangements. The amortization reflects the pattern of consumption of the underlying economic benefit and is periodically adjusted based on updated estimates of future aircraft utilization.
  · Minimum usage component – Payments associated with contractual minimum usage requirements are considered part of the overall reserve funding structure. Increases in reserve balances resulting from such minimum funding are included within the engine reserve asset and are amortized over the remaining contractual term based on estimated level-rate engine hours over the term of the maintenance arrangements. This amortization reflects the pattern of consumption of the underlying economic benefit and is periodically adjusted based on updated estimates of future aircraft utilization.
  · Incremental usage component – Payments associated with usage in excess of contractual minimum thresholds represent variable, usage-based consumption of engine life and are expensed as incurred.

 

 

 

 11 

 

 

When major maintenance or replacement events occur under these programs, the Company evaluates the nature of the costs incurred. To the extent such costs represent a significant restoration or extension of engine life and are not otherwise satisfied through previously funded reserves, such amounts may be capitalized and amortized over the expected period of benefit.

 

Investment - Related Party

 

The Company holds 420,366 shares of Dalrada Financial Corporation (“DFC”) Convertible Series “G” preferred stock (“Series G”). The stated amount of the investment was $420,366. The Series G are convertible at a fixed rate conversion price of $0.30 per common share, for a total of 1,401,220 common shares of DFC. The ownership in DFC is less than 20%. The Company accounts for the investment at fair market value.

 

During the three months ended March 31, 2026 and 2025, the Company recorded a gain (loss) of $12,611 and ($65,857), respectively. The Company bases the fair market value of the investment on the closing stock price of DFC’s common stock which is considered a similar investment.

 

Accounts Payable and Accrued Expenses

 

Accounts payable and accrued expenses as of March 31, 2026 and December 31, 2025 consist of the following:

        
  

March 31,

2026

  

December 31,

2025

 
         
Accounts payable  $5,962,710   $4,256,149 
Payroll liabilities   263,243    441,772 
Credit cards payable   130,322    140,586 
Total:  $6,356,275   $4,838,507 

 

Deferred revenue is recorded when payments are received in advance of the Company performing its service obligations and are recognized over the service period. Deferred revenue primarily relates to prepayments of chartered flights as customers pay upfront for flights. Deferred revenue as of March 31, 2026 and December 31, 2025 was $296,776 and $733,785, respectively. All deferred revenue as of December 31, 2025 was recognized as of March 31, 2026 and all deferred revenue as of March 31, 2026, is expected to be recorded as revenue in calendar 2026.

 

4. Aircraft Lease Agreements

 

The Company entered into aircraft lease and management agreements with Paradigm Jet Management (“Paradigm”), pursuant to which the Company provided aircraft access and related services.

 

General Description

 

Under the terms of the agreements, the Company made aircraft available to Paradigm for charter operations. The Company retained operational control of the aircraft and was responsible for providing flight services, maintenance coordination, and related support. The agreements included provisions for minimum guaranteed usage as well as variable usage based on actual flight hours.

 

 

 

 

 12 

 

 

Payment Terms

 

The agreements generally provided for:

 

  · A minimum guaranteed number of flight hours, typically 50 hours per month per aircraft;
  · An hourly rate of approximately $7,000 per flight hour; and
  · Additional charges for certain operating costs, maintenance-related items, and other reimbursable expenses.

 

The Customer was obligated to pay for the minimum guaranteed usage regardless of actual flight activity.

 

Revenue Recognition

 

Revenue under these agreements is recognized in accordance with ASC 842. Fixed minimum payments are recognized on a straight-line basis over the lease term, reflecting the Company’s right to consideration as the lessee uses the underlying asset. Variable payments based on usage, such as flight hours, are recognized as lease revenue in the period in which the underlying usage occurs.

 

Accounts Receivable and Contractual Amounts

 

As of March 31, 2026, the Company has recognized amounts due under these agreements, including amounts associated with minimum guaranteed usage that had not yet been invoiced. Certain amounts remain outstanding and are subject to ongoing collection efforts, including potential legal proceedings.

 

5.          Right of Use Assets and Liabilities

 

Right of Use - Operating

 

The Company has a month-to-month lease for its office, ramp and hanger space in Carlsbad, California. The Company entered into a lease amendment on February 14, 2023, increasing the monthly rent to $7,108. The Company entered into another lease amendment on February 1, 2024 which increased the monthly rent to $9,438. Effective September 1, 2024, the Company entered into a revised lease agreement for a period of 60 months expiring on August 31, 2029. Under the terms of the agreement, the Company’s initial monthly payment is $28,371 increasing by a minimum of 3% per annum each subsequent year. On September 1, 2024, the Company recorded a right of use asset and liability – operating of $1,317,020. The Company used an imputed interest rate of 12.9%.

 

As discussed in Note 7, in May 2024, the Company and Demeter signed an Aircraft Asset Rights Transfer Agreement which included leases on four aircraft. At the time of assignment, the Company recorded right of use assets and liabilities – operating of $4,558,913 and $4,558,193, and right of use assets and liabilities – financing of $12,433,818 and $10,520,064, respectively. The Company accounted for the assets and liabilities assumed at their carrying value due to both entities being under common control. The operating leases are payable in monthly payments ranging from $25,000 to approximately $32,000 through December 2029 and contained an initial imputed interest rates ranging from 7.75% to 12.90% and are secured by the equipment being leased.

 

On December 15, 2025, the Company entered into a lease agreement for a 2004 Cessna 750. The lease agreement is for 60 months and includes monthly payments of $56,509. During the term of the lease, the Company is responsible for any and all maintenance required to keep the Cessna 750 in regulatory compliance and airworthy in accordance with manufacturer and/or FAA regulations. On January 1, 2026, the Company recorded a right of use asset and liability – operating of $2,489,173. The Company used an imputed interest rate of 12.9%.

 

For the three months ended March 31, 2026 and 2025, the Company recorded total operating lease expense of approximately $249,012 and $111,000, respectively. As of March 31, 2026, the weighted average remaining lease term and the weighted average discount rate for the operating leases was 4.1 years and 10.7%, respectively.

 

 

 

 13 

 

 

Right of Use - Financing

 

The financing leases are payable in monthly payments ranging from $14,698 to $53,077 through dates ranging from July 2024 to October 2028, contain original imputed interest rates ranging from 3.85% to 7.75%, and are secured by the equipment being leased. Additionally, the leases have balloon payments due at the end of the leases totaling $8,894,298.

 

For the three months ended March 31, 2026 and 2025, the Company recorded total financing lease expense of approximately $174,746 and $71,000, respectively. As of March 31, 2026, the weighted average remaining lease term and the weighted average discount rate for the financing leases was 2.5 years and 6.5%, respectively.

 

6.          Notes Payable

 

As part of the transfer from Demeter as noted in Note 7, the Company assumed a loan with a third party of $1,050,259. The loan incurs interest at 12.0% per annum and requires monthly payments of $20,154 and a balloon payment of $1,040,169 in July 2024. The loan was secured by the aircraft. In July 2024, the aircraft securing the loan was sold and a portion of the sales proceeds were used to satisfy the loan in full.

 

In September 2024, in connection with the purchase of an aircraft, the Company entered into a loan with a third party for $3.8 million. The loan incurs interest at 12.9% per annum and requires 24 monthly payments of $48,377 and a balloon payment of $3,595,153 on September 2, 2026. The loan is secured by the aircraft and guaranteed by the Company’s shareholder. The outstanding loan balance at March 31, 2026 and December 31, 2025 was $3,642,317 and $3,769,402, respectively.

 

In April 2025, the Company received a loan of $107,000 from a third party to be used in operations. The monthly loan payments of $10,118 commenced on May 3, 2025 and will continue until May 3, 2026. The loan incurs interest at a rate of 24.00% per annum. The outstanding balance at March 31, 2026 and December 31, 2025, was $0, and $29,178, respectively.

 

In September 2025, the Company received a loan of $482,500 from a third party to be used in operations. The loan requires weekly payments of $15,796 commencing in September 2025 and will continue until paid off which is expected to be in July 2026. The loan incurs an effective interest rate of 90.67% per annum. The loan is guaranteed by the primary shareholder of the Company. The outstanding loan balance at March 31, 2026 and December 31, 2025 was $206,913 and $337,860, respectively.

 

In September 2025, the Company converted amounts due of $662,488 to a lessor previously recorded as accounts payable to a loan payable. The loan requires weekly payments of $42,638 commencing in September 2025 and will continue until paid off which is expected to be in December 2025. The loan incurs an effective interest rate of 18.00% per annum. Under a default, the lessor has the right to terminate the leasing arrangements. The outstanding loan balance at March 31, 2026 and December 31, 2025 was $0 and $0, respectively.

 

All remaining debt balances are due within the year end December 31, 2026.

 

 

 

 

 14 

 

 

7.          Related Party Transactions

 

The tables below summarize the Company’s transactions and balances with its related parties as of March 31, 2026 and for the three months ended March 31, 2026 and 2025:

 

For the Three Months Ended March 31, 2026

                
Entity Name  Nature of Transactions  Transaction
Amount, Net During the Period Ended
March 31, 2026
   Outstanding
Balance as of March 31, 2026
   Affiliation, Terms and Conditions
Due from Related Parties                
Demeter Harvest  Charter Sales  $(500)  $   Refer to (a)
Demeter N207JB  Charter Sales   22,448       Refer to (a)
Demeter N265AV  Charter Sales   (20,750)   (2,152)  Refer to (a)
Demeter N555DH  Charter Sales   (3,493)      Refer to (a)
Demeter N713FL  Charter Sales   (2,000)      Refer to (a)
Demeter N813MS  Charter Sales   (39,067)      Refer to (a)
Tipp Investments  Charter Sales   188,250    183,315   Refer to (a)
           $181,163    
Due to Related Parties                
Afinida - Note  Promissory note payable      $485,720   Refer to (b)
Afinida - Marketing  Marketing  $11,095    5,510   Refer to (c)
Innoworks  Payroll Advances Accounts Payable   1,107,266    3,766,467   Refer to (b)
Tipp Investments  Marketing   40,000    100,000   Refer to (c)
           $4,357,697    
Others                
Dalrada Financial Corp.  Investment  $12,611   $58,851   Refer to Note 3

 

 

 

 15 

 

 

For the Three Months Ended March 31, 2025

               
Entity Name  Nature of Transactions 

Transaction
Amount, Net During the Quarter ended

March 31, 2025

  

Outstanding
Balance as of

March 31, 2025

   Affiliation, Terms and Conditions
Due from Related Parties                
Demeter Harvest  Charter Sales  $   $5,144   Refer to (a)
Demeter N207JB  Charter Sales       4,125   Refer to (a)
Demeter N614AF  Charter Sales       39,067   Refer to (a)
Demeter N265AV  Charter Sales       20,750   Refer to (a)
Demeter N555DH  Charter Sales       3,493   Refer to (a)
Demeter N713FL  Charter Sales       2,000   Refer to (a)
Dalrada Energy Services  Charter Sales       (3,789)  Refer to (a)
           $70,790    
Due to Related Parties                
Afinida - Note  Promissory note payable  $   $485,720   Refer to (b)
Prime Capital Inc - Note  Promissory note payable       366,549   Refer to (b)
Innoworks - Note  Promissory note payable       6,419,269   Refer to (b)
Innoworks - Advances  Accounts payable - Payroll   1,115,942    1,115,942   Refer to (b)
Afinida - Marketing  Marketing   50,834    5,877   Refer to (c)
CSL Staffing  Staffing services   9,048    9,048   Refer to (c)
Tipp Investments  Marketing   20,000       Refer to (c)
           $8,402,405    
Others                
Dalrada Financial Corp.  Investment  $(65,857)  $19,617    

 

(a) Revenues and pass-through costs

 

Pass-through costs

Per the terms of management agreements between the Company and aircraft owners, certain aircraft expenses are the responsibility of the owners. However, the Company will pay for these costs on behalf of the owners and then invoice for the recovery of these amounts, which the Company refers to as “pass-through” costs. The Company has an aircraft management agreement for aircraft usage from Demeter Harvest Corp. (“Demeter”), an affiliated company owned by Sandra DiCicco Bonar, the majority owner of Tipp.

 

Maintenance revenue

The Company began performing in-house maintenance on aircrafts in 2022. In prior years, aircrafts were sent to third party mechanics for service.

 

Management fees

Per the terms of the management agreements between the Company and aircraft owners, a management fee is invoiced to owners on a monthly basis for the management of the aircraft, which primarily consists of handling administrative tasks in order to manage the rental of the planes. For the year ended December 31, 2025 and 2024, the Company has a management agreement with one affiliated company, Demeter.

 

 

 

 16 

 

 

Charter sales

These entities are either 100% or majority owned by Sandra DiCicco Bonar or controlled by a direct family member of Sandra DiCicco Bonar. The Company does not have stated payment terms as it applies to related party sales.

 

(b) Debt and advances

 

Afinida, Inc.

Afinida Inc. (“Afinida”) is a payroll processing company that is a subsidiary of Trucept, Inc.; Sandra DiCicco Bonar’s family member is the Chairman of the Board at Trucept, Inc. From the period July 1, 2019 through January 30, 2022, Afinida paid certain payroll costs (salaries and wages) for the Company. It was verbally agreed that the Company would pay Afinida for these amounts in the future, but formal terms were not documented until June 2022, when a formal Promissory Note was put in place. The Promissory Note converted outstanding payroll services invoices due to Afinida as of December 31, 2021 in the amount of $1,674,032 into a note, payable over 36 months with a simple interest of 5%, and with the first payment due on July 1, 2022. On March 19, 2025, the Company entered into an amended and rested note with Afinida for $501,483 which represented the amounts due to Afinida at December 31, 2024. Under the terms of the amended note, monthly principal and interest payments of $15,715 will commence on October 1, 2025 for period of 36 months. The amended note incurs an annual interest rate of 8%.

 

Innoworks Employment Services

Innoworks Employment Services (“Innoworks”) is a professional employer organization (“PEO”) in which a family member of Sandra DiCicco Bonar exercises significant influence over the operations. From the period February 1, 2022 through December 31, 2023, Innoworks paid certain payroll costs (salaries and wages) for the Company. It was verbally agreed that the Company would pay Innoworks for these amounts in the future. As of December 31, 2023, no written agreement existed. However, in February 2024, a formal Promissory Note was put in place. The Promissory Note converted all outstanding payroll services invoice due to Innoworks as of December 31, 2023 in the amount of $2,756,327 into a note, payable over 96 months, with a simple interest of 5%, and with the first payment due on March 1, 2024.

 

The Company entered into a note payable with Innoworks for $1,629,954 on August 1, 2024 for unpaid accounts from January 1, 2024 to June 30, 2024. The note is payable in monthly installments of $23,042 over a period of eight years and incurs interest at 8% per annum. First payment was to be made on December 1, 2024. No payments were made on this loan.

 

On March 19, 2025, the Company entered into an amended and rested note with Innoworks for $6,419,269 which represented the amounts due to Innoworks at December 31, 2024. Under the terms of the amended note, monthly principal and interest payments of $55,680 will commence on October 1, 2025 for period of 120 months. The amended note incurs an annual interest rate of 8%.

 

On August 5, 2025, related party notes payable and amounts due to Innoworks of $6,419,269 was converted into 100,000 shares of Series A Preferred Stock (“Series A”). The note is convertible in to shares of common stock at $0.04 per share which represented the fair market value of the common stock on that date. On October 21, 2025, the conversion price of the Series A was modified to $0.25 per share. There was no impact on the financial statements due to the modification

 

On August 13, 2025, the Company entered into a note payable with Innoworks for $2,565,646, which represented amounts due to Innoworks through June 30, 2025. Under the terms of the note, monthly principal and interest payments of $39,989 will commence on December 1, 2025 for period of 84 months. The note incurs an annual interest rate of 8%.

 

On November 11, 2025, related party notes payable and amounts due to Innoworks of $2,565,646 was converted into 39,970 shares of Series A. The note is convertible into shares of common stock at $0.25 per share which was determined to be in excess of the Company’s common stock on that date.

 

During the year ended December 31, 2025 and 2024, additional advances from Innoworks for payroll related items were $5,224,847 and $3,770,465, respectively, and had an outstanding balance of $2,659,201 as of December 31, 2025. See above for 2025 and 2024 amounts converted into a promissory note.

 

 

 

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Prime Capital

Prime Capital (“Prime”), which has a family member of the Company employed at Prime, has an agreement with Tipp to collect funds for and disperse such funds on behalf of Tipp; as such, it is a related party. From the period January 1, 2021 through December 31, 2021, Prime provided $153,514 to Premier to help finance operations. As of December 31, 2021, Prime had advanced a total of $817,209 to Premier. It was verbally agreed that the Company would pay Prime for these amounts in the future, but formal terms were not documented until July 2022, when a formal Promissory Note was put in place. The Promissory Note in the amount of $817,209 represents the amount due to Prime as of December 31, 2021, payable over 42 months, with a simple interest of 5%, and with the first payment due on August 1, 2022. On March 19, 2025, the Company entered into an amended and rested note with Prime for $386,821 which represented the amounts due to Prime at December 31, 2024. Under the terms of the amended note, monthly principal and interest payments of $17,495 will commence on October 1, 2025 for period of 24 months. The amended note incurs an annual interest rate of 8%.

 

On November 11, 2025, related party notes payable and amounts due to Prime of $366,549 was converted into 5,710 shares of Series A. The note is convertible into shares of common stock at $0.25 per share which was determined to be in excess of the Company’s common stock on that date.

 

Tipp Investments, LLC

The Company acquired a $3,000,000 line of credit with Tipp Investments, LLC on August 1, 2024, with annual interest of 12% and a maturity date of December 31, 2025. As of December 31, 2025, there have been no draws on the line of credit.

 

(c) Marketing and other

 

The Company paid Trucept, Inc. to perform marketing research, launch social media campaigns and improve website performance. Sandra DiCicco Bonar’s family member is the Chairman of the Board at Trucept, Inc.

 

From time to time the Company utilizes related entities to provide catering, repair work and placement agent services.

 

(d) Note from receivable from Demeter and asset transfer

 

On January 9, 2023, the Company signed a Promissory Note agreement with Demeter. The Promissory Note converted outstanding net amounts due from Demeter as of December 31, 2021 in the amount of $2,164,913 into a note receivable, payable over 46 months, with a simple interest of 5%, and with the first payment of $49,417 to be received on February 1, 2023. As of December 31, 2023, the remaining balance of the note receivable is $2,027,453. See below for exchange of this note receivable for aircraft and right-of-use assets and lease liabilities during the year ended December 31, 2024.

 

On October 23, 2023, the Company signed a Promissory Note agreement with Demeter. The Promissory Note converted outstanding net amounts due from Demeter as of December 31, 2022 in the amount of $2,724,415 into a note receivable, payable over 72 months, with a simple interest of 5%, and with the first payment to be received on October 31, 2024. As of December 31, 2023, the remaining balance of the note receivable is $2,590,932. See below for exchange of this note receivable for aircraft and right-of-use assets and lease liabilities during the year ended December 31, 2024.

 

The Company leased aircraft owned by Demeter on an hourly basis; per the terms of the management agreement, the Company paid the aircraft owner a rate per hour that the plane is used in charter sales. Amounts due to Demeter for these lease payments was included in the exchange below.

 

 

 

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In May 2024, Demeter signed an Aircraft Asset Rights Transfer Agreement to include Right of Usage of aircraft tail numbers: N614AF, N207JB, N236CA, and N555DH. This agreement transferred the Right to Use (includes all Demeter revenue share) and the Net Book Value of the assets and liabilities to the Company. The net assets include various right-of-use assets and lease liabilities, improvements made to the right-of-use assets, deposits on engine reserves, and other deposits. The Company received assets totaling $21,639,368, assumed liabilities of $16,129,236 and relieved $6,403,529 in amounts due from Demeter resulting in a difference of $893,397 which was recorded as a reduction of capital. On the date of transfer, the Company recorded assets consisting of $2,320,690 in property and equipment, $2,325,946 in maintenance reserves, $16,992,731 in right of use assets and total liabilities of $16,129,236 related to right of use liabilities and assumed notes payable, The Company accounted for the assets and liabilities assumed at their carrying value due to both entities being under common control.

 

8.          Commitments and Contingencies

 

Indemnification

 

Under the Company’s amended and restated Certificate of Incorporation and amended and restated bylaws, the Company has indemnification obligations to its officers and directors for certain events or occurrences, subject to certain limits, while they are serving at the Company’s request in such capacity. There have been no claims to date, and the Company has a director and officer insurance policy that may enable it to recover a portion of any amounts paid for future claims.

 

Legal Proceedings

 

From time to time, the Company may be involved in legal proceedings arising in the ordinary course of our business. Except as set forth below, the Company is not currently a party, and Company property is not subject to, any other material pending legal proceedings, other than ordinary routine litigation incidental to the business.

 

On May 31, 2024, Demeter Harvest Corp. (“Demeter”) and Premier filed a Petition and Demand against Empyreal Jet, Inc. in the district court located in Harris County, Texas (Cause No. 2024-34231/Court: 281 claiming Breach of Contract, Promissory Estoppel seeking damages over $200,000 but no more than $1,000,000.

 

On March 11, 2025, a former employee filed a General Civil Complaint for Damages against Premier and Innoworks Employment Services, Inc. in the Superior Court of the State of California for the County of San Diego, Central Division claiming retaliation and wrongful employment termination seeking general and special damages each in the amount of $35,000 as well as punitive and exemplary damages, reasonable attorney fees, interest and such other relief.

 

On December 17, 2024, the Company received a notice of investigation from the Federal Aviation Administration’s San Diego Flight Standards Office (“FSDO”). The investigation was the result of a safety complaint from a former employee. The investigation was a series of inquiries related to compliance with regulations related to corrective maintenance actions, to which the Company has responded to all requests. Premier has since implemented new policies and procedures to ensure such errors do not happen again. These new policies and procedures were provided to the FDSO January 2025. The Company has been working with the FSDO and is still awaiting the results of the investigation, which may include penalties against the Company. At the time of this filing, such amounts, if any, are not estimable.

 

Regardless of outcome, litigation can have an adverse impact on us due to defense and settlement costs, diversion of management resources, negative publicity and reputational harm, and other factors.

 

 

 

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9.          Stockholders’ Equity

 

On August 5, 2025, the Company authorized the issuance of 100,000 shares of Series A. The Series A has a stated value of $64.19 per share and is convertible into common stock at $0.04 per share. The Series A holders vote on an as converted basis. On October 21, 2025, the Company filed an amended Certificate of Designation with the Nevada Secretary of State to amend the conversion price of the Series A Preferred Stock from $0.04 per share to $0.25 per share.

 

During the year ended December 31, 2025, the Company issued 1.0 million shares of common stock for legal and business advisory services. The shares vested upon issuance which the fair market value of $42,500 was based upon the closing market price of the Company’s common stock. During the year ended December 31, 2025, the entire value of $42,500 was recorded within selling, general and administrative expenses.

 

See Note 7 for discussion of related party notes converted into Series A.

 

10.          Stock-Based Compensation

 

On February 19, 2026, the Company issued 150,000 options to new members of the Board of Directors. The options vest over a 12-month period and hold an exercise price of $0.06 per share. The options expire in five years after issuance. The fair value of the options granted were $0.06 per share, or $8,250 which was calculated using the Black-Scholes model.

 

The options were valued using the Black-Scholes options pricing model with the following assumptions:

Option valuation assumptions used  
Market value of common stock on issuance date  $        8,250
Exercise price  $        0.063
Expected volatility 149.20%
Expected term (in years) 5.0
Risk-free interest rate 3.65%
Expected dividend yields 0.0

 

11.       Subsequent Events

 

On April 8, 2026, the Company executed a commercial loan in the amount of $710,000. The term of the loan is over 49 weeks, an origination fee of $28,663 and total interest expense of $269,800. $252,747 of the loan proceeds were used to pay off a prior loan.

 

 

 

  

 

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Premier Air Charter Holdings Inc. ("Premier Holdings" or together with its subsidiaries, the “Company”), a Nevada corporation was incorporated in Nevada on December 12, 2012. The Company primarily operates through its wholly owned subsidiary, Premier Air Charter, Inc., a California corporation (“Premier”). Premier Holdings together with its subsidiary, is referred to in this Form 10-K annual report (“Form 10-K”) as the Company. The terms “we”, “us” and “our” are also used in the Form 10-K to refer to the Company.

 

On March 11, 2025, Premier Holdings acquired Premier. As a result of this acquisition, Premier Holdings’ business is comprised solely of the business of Premier. This Merger was accounted for as a reverse recapitalization. Under this method of accounting, Premier Holdings is treated as the acquired company for financial statement reporting purposes.

 

In addition, these financial statements capture the capital structure of Premier Holdings and reflect only the 237,871,049 common shares issued to the former Premier shareholder as being outstanding from the inception of Premier. The 41,977,244 common shares retained by the historical Premier Holdings shareholders will be reflected as being issued on March 5, 2025, the closing date of the acquisition. As of the date of this filing, there are 280,848,293 shares of Premier Holdings common stock issued and outstanding. Any reference to the “Company” within these financial statements is a reference to Premier.

  

Results of operations for the three months ended March 31, 2026 and 2025

 

Revenues

 

Revenues for the three months ended March 31, 2026 as compared to March 31, 2025 totaled $7,203,459 and $5,875,523, respectively. Charter Sales increased by $1,164,629, or 20.1%, and was driven by new aircraft put into service during the fiscal year ended December 31, 2025. Maintenance Revenue increased by $114,256, or 191.9%.

 

Cost of Sales

 

Cost of Sales for the three months ended March 31, 2026 as compared to March 31, 2025 totaled $6,666,359 and $5,728,935, respectively, an increase of $937,424. The increase in cost of revenues was primarily the result of a rise in fuel prices due to geo political circumstances including the war in Iran. Additionally, there was an increase in expenses related to Engine Reserves in the amount of $540,972.

 

Operating Expenses

 

Operating Expenses for the three months ended March 31, 2026 as compared to March 31, 2025 totaled $1,277,563 and $1,002,266, respectively, an increase of $275,297. This increase is primarily due the additional payroll, insurance and taxes required to support additional aircraft flight activity..

 

Loss from Operations

 

Loss from Operations for the three months ended March 31, 2026 was ($740,463) compared to ($855,678) for the three months ended March 31, 2025. The loss from operations for the three months ending March 31, 2026 decreased by $115,215, or 13.5%, and was primarily driven by an increase in Charter Sales and Maintenance Revenue.

 

 

 

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Other Income (Expense)

 

Other (Income) Expense for the three months ended March 31, 2026 as compared to March 31, 2025 totaled $415,943 and $367,927, respectively, an increase of $48,016. This Other Expense decrease is primarily attributable interest expense related to aircraft leases and additional debt.

  

Net Income (Loss)

 

Net Loss for the three months ended March 31, 2026 was ($1,156,406) compared to ($1,223,605) for the three months ended March 31, 2025. The Net Loss for the three months ending March 31, 2026 decreased by $67,199, or 5.5%, and was a primarily a result of an increase in Charter Sales.

 

Cash Flows

 

   Three Months Ended 
   March 31, 
   2026   2025 
Net cash provided by operating activities  $892,822   $994,869 
Net cash used in investing activities   (521,187)   (971,607)
Net cash used financing activities   (296,398)   (101,900)
Net change in cash during the period  $75,237   $(78,638)

 

Cash flow from Operating Activities

 

During the three months ended March 31, 2026, the Company incurred a Net Loss of ($1,156,406) compared to ($1,223,605) for the first three months ending March 31, 2025. This decrease in cash provided was primarily driven by an increase in accounts receivable.

 

Cash flow from Investing Activities

 

During the three months ended March 31, 2026, the Company used $521,187 of cash investing in aircraft and supporting engine maintenance contracts, compared to cash used of $971,607 for the three months ended March 31, 2025.

 

Cash flow from Financing Activities

 

During the three months ended March 31, 2026, the Company used $296,398 in cash to pay down long-term debt and aircraft financing lease obligations compared to cash used of $101,900 for the three months ended March 31, 2025.

 

 

 

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Off-Balance Sheet Arrangements

 

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.

 

Liquidity and Capital Resources

 

At March 31, 2026, the Company had current assets of $4,488,916 and current liabilities of $18,831,890 compared with current assets of $3,727,772 and current liabilities of $16,333,220 at December 31, 2025. The continuation of the Company as a going concern is dependent upon generating additional charter revenue growth by improving current aircraft fleet charter operations, and obtaining cost effective financing to invest in additional charter aircraft, , as well as continued financial support from related parties.

 

Future Financings

 

We will continue to rely on related parties, equity sales of our common shares or debt financing arrangements in order to continue to fund our business operations. Issuance of additional shares will result in dilution to existing stockholders. There is no assurance that we will achieve any additional sales of the equity securities or arrange for debt or other financing to fund our operations and other activities. 

 

Going Concern and Liquidity

 

The Company’s financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, the realization of assets, and liquidation of liabilities in the normal course of business.

 

Premier Air Charter Holdings Inc. incurred net losses of $1,156,406 and $1,223,605 during the three months ended March 31, 2026 and 2025, respectively. Although these losses were primarily the result of investments in aircraft and supporting operational infrastructure, these losses and limited working capital raise substantial doubt about our ability to continue as a going concern.

 

There can be no assurance that the Company will be successful in obtaining additional funding, or that the Company’s projections of its future working capital needs will prove accurate, or that any additional funding will be sufficient to continue operations in future years. In addition, support of the Company’s operations is dependent on receiving support from related parties which primarily consists of financial support for revenue and operating expenses.

 

We will be required to raise substantial capital to fund our capital expenditures, working capital, and other cash requirements. We will continue to rely on related parties and seek other financing to complete our business plans. The successful outcome of future financing activities cannot be determined at this time and there are no assurances that, if achieved, we will have sufficient funds to execute our intended business plan or generate positive operational results.

 

 

 

 23 

 

 

In addition to our current deficit, we may incur additional losses during the foreseeable future, until we are able to successfully execute our business plan. There is no assurance that we will be able to obtain additional financing through private placements and/or public offerings necessary to support our working capital requirements. To the extent that funds generated from any private placements and/or public offerings are insufficient, we will have to raise additional working capital through other sources, such as bank loans and/or financings. No assurance can be given that additional financing will be available, or if available, will be on acceptable terms.

 

We are also incurring increased costs as a publicly traded company. As a public company, we incur significant legal, accounting and other expenses that we did not incur as a private company. In addition, the Sarbanes-Oxley Act of 2002, as well as new rules subsequently implemented by the Securities and Exchange Commission, have required changes in corporate governance practices of public companies. These new rules and regulations have increased our legal and financial compliance costs and have made some activities more time-consuming and costly. We cannot predict or estimate the amount of additional costs we may incur as a result of being a public company or the timing of such costs.

 

Critical Accounting Policies

 

Refer to our Premier Holdings audited financial statements for the years ended December 31, 2025, and 2024 financial statements for a full discussion of our critical accounting policies.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

 

ITEM 4. Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures

 

As of the end of the period covered by this Quarterly Report, our Chief Executive Officer and Principal Financial Officer performed an evaluation of the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act. Based on the evaluation, the Chief Executive Officer and Principal Financial Officer concluded that, as of March 31, 2026, the Company’s disclosure controls and procedures are not effective to ensure that the information required to be disclosed by the Company in the report that it files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms.

 

Changes in Internal Control over Financial Reporting

 

There were no changes in our internal control over financial reporting (as that term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the nine months ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 

 

 

 24 

 

 

PART II - OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

From time to time, the Company may be involved in legal proceedings arising in the ordinary course of our business. Except as set forth below, the Company is not currently a party, and Company property is not subject to, any other material pending legal proceedings, other than ordinary routine litigation incidental to the business.

 

On May 31, 2024, Demeter Harvest Corp. (“Demeter”) and Premier filed a Petition and Demand against Empyreal Jet, Inc. in the district court located in Harris County, Texas (Cause No. 2024-34231/Court: 281 claiming Breach of Contract, Promissory Estoppel seeking damages over $200,000 but no more than $1,000,000.

 

On March 11, 2025, a former employee filed a General Civil Complaint for Damages against Premier and Innoworks Employment Services, Inc. in the Superior Court of the State of California for the County of San Diego, Central Division claiming retaliation and wrongful employment termination seeking general and special damages each in the amount of $35,000 as well as punitive and exemplary damages, reasonable attorney fees, interest and such other relief.

 

On December 17, 2024, the Company received a notice of investigation from the Federal Aviation Administration’s San Diego Flight Standards Office (“FSDO”). The investigation was the result of a safety complaint from a former employee. The investigation was a series of inquiries related to compliance with regulations related to corrective maintenance actions, to which the Company has responded to all requests. Premier has since implemented new policies and procedures to ensure such errors do not happen again. These new policies and procedures were provided to the FDSO January 2025. The Company has been working with the FSDO and is still awaiting the results of the investigation, which may include penalties against the Company. At the time of this filing, such amounts, if any, are not estimable.

 

Regardless of outcome, litigation can have an adverse impact on us due to defense and settlement costs, diversion of management resources, negative publicity and reputational harm, and other factors.

 

ITEM 1A. RISK FACTORS

 

Risk factors describing the major risks to our business can be found under Item 1A, “Risk Factors”, in our Annual Report on Form 10-K for the year ended December 31, 2025. There has been no material change in our risk factors from those previously discussed in the Annual Report on Form 10-K.

 

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

None.

 

ITEM 3. Defaults Upon Senior Securities

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable.

 

ITEM 5. OTHER INFORMATION

 

During the quarter ended March 31, 2026, no director or officer of the Company adopted or terminated, modified a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

 

 

 

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ITEM 6. EXHIBITS

 

Exhibit No.   Description   Incorporation by Reference
2.1   Agreement and Plan of Merger among Altair International Corp., Premier Air Charter, Inc., Premier Air Charter Merger Sub, Inc. and TIPP Aviation, LLC dated February 16, 2024   Incorporated by reference to Exhibit 10.1 filed on Form 8-K with the Securities and Exchange Commission on February 21, 2024
2.2   Agreement and Plan of Merger among Altair International Corp., Premier Air Charter, Inc., Premier Air Charter Merger Sub, Inc. and TIPP Aviation, LLC dated March 5, 2025   Incorporated by reference to Exhibit 2.2 filed on Form 8-K with the Securities and Exchange Commission on March 11, 2025
3.1   Articles of Incorporation dated December 20, 2012   Incorporated by reference to Exhibit 3.1 filed on Form S-1 with the Securities and Exchange Commission on July 29, 2013
3.2   Certificate of Amendment dated August 24, 2018   Incorporated by reference to Exhibit 3.2 filed on Form 10-K with the Securities and Exchange Commission on April 7, 2025
3.3   Certificate of Amendment dated October 1, 2021   Incorporated by reference to Exhibit 3.3 filed on Form 10-K with the Securities and Exchange Commission on April 7, 2025
3.4   Certificate of Amendment dated January 11, 2023   Incorporated by reference to Exhibit 3.4 filed on Form 10-K with the Securities and Exchange Commission on April 7, 2025
3.5   Bylaws   Incorporated by reference to Exhibit 3.2 filed on Form S-1 with the Securities and Exchange Commission on July 29, 2013
3.6   Certificate of Designation of Series A Preferred Stock of Premier Air Charter Holdings Inc. dated August 6, 2025   Incorporated by reference to Exhibit 3.1 filed on Form 8-K with the Securities and Exchange Commission on August 8, 2025
3.7   Amended Certificate of Designation of Series A Preferred Stock filed October 21, 2025   Incorporated by reference to Exhibit 3.2 filed on Form 8-K with the Securities and Exchange Commission on October 22, 2025
3.8   Certificate of Amendment to Designations of Preferences and Rights of Series A Preferred Stock, filed November 7, 2025   Incorporated by reference to Exhibit 3.1 filed on Form 8-K with the Securities and Exchange Commission on November 13, 2025
4.1   Description of the Registrant’s Securities   Incorporated by reference to Exhibit 4.1 filed on Form 10-K with the Securities and Exchange Commission on April 7, 2025
10.1   Amended and Restated Promissory Note payable to Innoworks Employment Services, Inc. dated March 19, 2025   Incorporated by reference to Exhibit 10.1 filed on Form 10-K with the Securities and Exchange Commission on April 7, 2025
10.2   Amended and Restated Promissory Note payable to Primer Capital HR dated March 19, 2025   Incorporated by reference to Exhibit 10.2 filed on Form 10-K with the Securities and Exchange Commission on April 7, 2025
10.3   Amended and Restated Promissory Installment Note payable to Afinida Inc. dated March 19, 2025   Incorporated by reference to Exhibit 10.3 filed on Form 10-K with the Securities and Exchange Commission on April 7, 2025
10.4   Conversion Agreement, dated as of August 5, 2025, by and between Premier Air Charter Holdings Inc. and Innoworks Employment Services, Inc.   Incorporated by reference to Exhibit 10.1 filed on Form 8-K with the Securities and Exchange Commission on August 8, 2025
10.5   Letter Agreement, dated October 21, 2025   Incorporated by reference to Exhibit 10.2 filed on Form 8-K with the Securities and Exchange Commission on October 22, 2025
10.6   Conversion Agreement dated November 11, 2025, by and between the Company and Innoworks Employment Services, Inc.   Incorporated by reference to Exhibit 10.1 filed on Form 8-K with the Securities and Exchange Commission on November 13, 2025
10.7   Conversion Agreement dated November 11, 2025, by and between the Company and Prime Loan   Incorporated by reference to Exhibit 10.2 filed on Form 8-K with the Securities and Exchange Commission on November 13, 2025

 

 

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Exhibit No.   Description   Incorporation by Reference
10.8   Form of Independent Director Engagement Agreement   Incorporated by reference to Exhibit 10. filed on Form 8-K with the Securities and Exchange Commission on February 25, 2026
10.9   Form of Nonstatutory Stock Option Agreement   Incorporated by reference to Exhibit 10.2 filed on Form 8-K with the Securities and Exchange Commission on February 25, 2026
14.1   Code of Ethics   Incorporated by reference to Exhibit 14.1 filed on Form 10-K with the Securities and Exchange Commission on April 7, 2025
16.1   Letter from Macias Gino & O’Connell LLC   Incorporated by reference to Exhibit 16.1 filed on Form 8-K with the Securities and Exchange Commission on June 27, 2025
19   Insider Trading Policy   Incorporated by reference to Exhibit 19 filed on Form 10-K with the Securities and Exchange Commission on April 7, 2025
21.1   List of Subsidiaries   Incorporated by reference to Exhibit 21.1 filed on Form 10-K with the Securities and Exchange Commission on April 7, 2025
31.1*   Certification of Chief Executive Officer and Principal Financial/Accounting Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act    
32.1*   Certification of Chief Executive Officer and Principal Financial/Accounting Officer pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002    
97.1   Policy for Recovery of Erroneously Awarded Compensation adopted March 27, 2025   Incorporated by reference to Exhibit 97.1 filed on Form 10-K with the Securities and Exchange Commission on April 7, 2025
99.1   Policy on Granting Equity Awards   Incorporated by reference to Exhibit 99.1 filed on Form 10-K with the Securities and Exchange Commission on April 7, 2025
101.INS   Inline XBRL Instances Document    
101.SCH   Inline XBRL Taxonomy Extension Schema Document    
101.CAL   Inline XBRL Taxonomy Extension Calculation Linkbase Document    
101.DEF   Inline XBRL Taxonomy Extension Definition Linkbase Document    
101.LAB   Inline XBRL Taxonomy Extension Label Linkbase Document    
101.PRE   Inline XBRL Taxonomy Extension Presentation Linkbase Document    
104   Cover Page Interactive Data File (formatted in IXBRL, and included in exhibit 101).    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Company caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

  PREMIER AIR CHARTER HOLDINGS INC.
   
Dated: May 15, 2026  
 

/s/ Sandra DiCicco Bonar       

Sandra DiCicco Bonar

Chief Executive Officer

(Principal Executive Officer and Principal Financial/Accounting Officer)

   
  /s/ Ross David Gourdie          
  Ross David Gourdie
  President, Treasurer and Director
  (Principal Accounting Officer)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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