0001534525
2012-09-01
2012-11-30
0001534525
2013-01-16
0001534525
2012-11-30
0001534525
2012-08-31
0001534525
2011-08-11
0001534525
2011-08-22
0001534525
2011-08-12
2012-03-31
0001534525
2012-08-06
0001534525
2011-09-01
2011-11-30
0001534525
2011-11-30
0001534525
2011-08-31
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
xbrli:pure
GAIF:Integer
GENERAL AIRCRAFT INC.
0001534525
10-Q
2012-11-30
false
--08-30
No
No
Yes
Smaller Reporting Company
Q1
2012
13500000
32005
32005
8175
10000
132072
99108
164077
131113
187706
193019
351783
324132
229600
190667
16757
13560
246357
204227
212813
212813
212813
459170
417040
13500
13500
31500
31500
152387
137908
-107387
-92908
351783
324132
32964
13749
12000
3534
11936
1416
7752
2325
7245
17724
5313
3542
25
44246
28566
-11282
-14817
-3197
-3352
-3197
-3352
-14479
-18169
-0.01
-0.00
13500000
10000000
-14479
-18169
5313
3542
-32964
-7688
38933
17138
3197
3352
-1825
212500
-1825
0.001
0.001
0.001
0.001
10000000
10000000
90000000
90000000
13500000
13500000
0
0
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><u>(A) Basis of Presentation</u></i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying unaudited Condensed Financial
Statements of General Aircraft, Inc. (the “Company”) have been prepared in accordance with accounting principles generally
accepted in the United States for interim financial information and Article 8 of Regulation S-X. Accordingly, they do not include
all of the information and footnotes required by accounting principles accepted in the United States for complete financial statements.
The unaudited Condensed Financial Statements for the interim period ended November 30, 2012 include all adjustments which are,
in the opinion of management, necessary for a fair presentation of the results for the interim period. This includes all normal
and recurring adjustments, but does not include all of the information and footnotes required by generally accepted accounting
principles (“GAAP”) for complete financial statements. Financial results for the Company can be seasonal in nature.
Operating results for the three-months ended November 30, 2012 are not necessarily indicative of the results that may be expected
for the year ended August 31, 2013. For further information, refer to the Financial Statements and footnotes thereto included in
the Company’s Form S-1/A for the year ended August 31, 2012 filed with the Commission on December 14, 2012.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company has adopted an August 31 year end.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company is in the development stage in accordance with Accounting
Standards Codification (“ASC”) Topic No. 915.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><u>(B) Use of Estimates</u></i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In preparing financial statements in conformity
with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported
amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements
and expenses during the reported period. Actual results could differ from those estimates. Changes in facts and circumstances may
result in revised estimates, which are recorded in the period in which they become known.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><u>(C) Cash and Cash Equivalents</u></i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company considers all highly liquid
temporary cash investments with an original maturity of three months or less to be cash equivalents. At November 30, 2012 and August
31, 2012, the Company had no cash equivalents.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><u>(D) Overhaul Costs</u></i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Overhaul requirements established by the
Federal Aviation Administration, aircraft airframes and engines must be overhauled within specific intervals. The value and usefulness
of an aircraft can be heavily dependent on its stage of overhaul. For accounting purposes, airframe and aircraft engine overhauls
encompass all inspections or replacements of major components, which the civil air regulations require at specific maximum periodic
intervals to recertify that the frame or engine is completely airworthy.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company reports its overhaul costs
in accordance with ASC Topic 908-360-30 (b). Overhaul costs are recorded utilizing the deferral method which requires the capitalization
of costs when they are incurred. Under the deferral method, the actual cost of each overhaul is amortized to the next overhaul.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><u>(E) Property and Equipment </u></i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Property and equipment are stated at cost
less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method and
with useful lives used in computing depreciation. When property and equipment are retired or otherwise disposed of, the related
cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Expenditures
for maintenance and repairs are charged to operations as incurred; additions, renewals and betterments are capitalized.</p>
<p style="font: 10pt/115% Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><u>(F) Long-Lived Assets </u></i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for its long-lived
assets in accordance with ASC Topic 360-10. ASC Topic 360-10 requires that long-lived assets be reviewed for impairment whenever
events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The
Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from
the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment
loss is recorded equal to the difference between the asset's carrying value and fair value or disposable value.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i><u>(G) Financial Instruments</u></i></b><i>
</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Financial instruments consist of cash,
accounts receivable, accounts payable, and notes payable. Recorded values of cash, receivables, payables and accrued liabilities
approximate fair values due to the short maturities of such instruments. Recorded values for notes payable and related liabilities
approximate fair values, since their stated or imputed interest rates are commensurate with prevailing market rates for similar
obligations.</p>
<p style="font: 10pt Calibri, Helvetica, Sans-Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><u>(H) Loss Per Share</u></i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company reports earnings (loss) per
share in accordance with ASC Topic 260-10. Basic earnings (loss) per share is computed by dividing income (loss) available to common
shareholders by the weighted average number of common shares available. Diluted earnings (loss) per share is computed similar to
basic earnings (loss) per share except that the denominator is increased to include the number of additional common shares that
would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. As
of November 30, 2012, there were no potential common shares underlying warrants or options.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><u>(I) Revenue Recognition</u></i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenue is recognized in accordance with
Staff Accounting Bulletin (“SAB”) No. 101, Revenue Recognition in Financial Statements, as revised by SAB No. 104.
As such, the Company recognizes revenue when persuasive evidence of an arrangement exists, title transfer has occurred, the price
is fixed or readily determinable and collectability is probable. Sales are recorded net of sales discounts.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenues, which do not require production,
modification or customization and do not have multiple elements, are recognized when (i) persuasive evidence of an arrangement
exists; (ii) service has occurred; (iii) the Company's fee is fixed and determinable; and (iv) collectability is probable.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><u>(J) Income Taxes</u></i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Income taxes are accounted for under the
asset and liability method in accordance with ASC Topic 740-10. Deferred tax assets and liabilities are recognized for the future
tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities
and their respective tax bases and operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted
tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or
settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that
includes the enactment date. When it is considered to be more likely than not that a deferred tax asset will not be realized, a
valuation allowance is provided for the excess.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><u>(I) Recent Accounting Pronouncements</u></i></b></p>
<p style="color: #252525; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We do not believe there
are any recently issued accounting standards that have not yet been adopted that will have a material impact on the Company’s
financial statements.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><u>(A) Basis of Presentation</u></i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying unaudited Condensed Financial
Statements of General Aircraft, Inc. (the “Company”) have been prepared in accordance with accounting principles generally
accepted in the United States for interim financial information and Article 8 of Regulation S-X. Accordingly, they do not include
all of the information and footnotes required by accounting principles accepted in the United States for complete financial statements.
The unaudited Condensed Financial Statements for the interim period ended November 30, 2012 include all adjustments which are,
in the opinion of management, necessary for a fair presentation of the results for the interim period. This includes all normal
and recurring adjustments, but does not include all of the information and footnotes required by generally accepted accounting
principles (“GAAP”) for complete financial statements. Financial results for the Company can be seasonal in nature.
Operating results for the three-months ended November 30, 2012 are not necessarily indicative of the results that may be expected
for the year ended August 31, 2013. For further information, refer to the Financial Statements and footnotes thereto included in
the Company’s Form S-1/A for the year ended August 31, 2012 filed with the Commission on December 14, 2012.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company has adopted an August 31 year end.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company is in the development stage in accordance with Accounting
Standards Codification (“ASC”) Topic No. 915.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><u>(B) Use of Estimates</u></i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In preparing financial statements in conformity
with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported
amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements
and expenses during the reported period. Actual results could differ from those estimates. Changes in facts and circumstances may
result in revised estimates, which are recorded in the period in which they become known.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><u>(C) Cash and Cash Equivalents</u></i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company considers all highly liquid
temporary cash investments with an original maturity of three months or less to be cash equivalents. At November 30, 2012 and August
31, 2012, the Company had no cash equivalents.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><u>(D) Overhaul Costs</u></i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Overhaul requirements established by the
Federal Aviation Administration, aircraft airframes and engines must be overhauled within specific intervals. The value and usefulness
of an aircraft can be heavily dependent on its stage of overhaul. For accounting purposes, airframe and aircraft engine overhauls
encompass all inspections or replacements of major components, which the civil air regulations require at specific maximum periodic
intervals to recertify that the frame or engine is completely airworthy.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company reports its overhaul costs
in accordance with ASC Topic 908-360-30 (b). Overhaul costs are recorded utilizing the deferral method which requires the capitalization
of costs when they are incurred. Under the deferral method, the actual cost of each overhaul is amortized to the next overhaul.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><u>(E) Property and Equipment </u></i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Property and equipment are stated at cost
less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method and
with useful lives used in computing depreciation. When property and equipment are retired or otherwise disposed of, the related
cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Expenditures
for maintenance and repairs are charged to operations as incurred; additions, renewals and betterments are capitalized.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><u>(F) Long-Lived Assets </u></i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for its long-lived
assets in accordance with ASC Topic 360-10. ASC Topic 360-10 requires that long-lived assets be reviewed for impairment whenever
events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The
Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from
the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment
loss is recorded equal to the difference between the asset's carrying value and fair value or disposable value.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i><u>(G) Financial Instruments</u></i></b><i>
</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Financial instruments consist of cash,
accounts receivable, accounts payable, and notes payable. Recorded values of cash, receivables, payables and accrued liabilities
approximate fair values due to the short maturities of such instruments. Recorded values for notes payable and related liabilities
approximate fair values, since their stated or imputed interest rates are commensurate with prevailing market rates for similar
obligations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><u>(H) Loss Per Share</u></i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company reports earnings (loss) per
share in accordance with ASC Topic 260-10. Basic earnings (loss) per share is computed by dividing income (loss) available to common
shareholders by the weighted average number of common shares available. Diluted earnings (loss) per share is computed similar to
basic earnings (loss) per share except that the denominator is increased to include the number of additional common shares that
would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. As
of November 30, 2012, there were no potential common shares underlying warrants or options.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><u>(I) Revenue Recognition</u></i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenue is recognized in accordance with
Staff Accounting Bulletin (“SAB”) No. 101, Revenue Recognition in Financial Statements, as revised by SAB No. 104.
As such, the Company recognizes revenue when persuasive evidence of an arrangement exists, title transfer has occurred, the price
is fixed or readily determinable and collectability is probable. Sales are recorded net of sales discounts.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenues, which do not require production,
modification or customization and do not have multiple elements, are recognized when (i) persuasive evidence of an arrangement
exists; (ii) service has occurred; (iii) the Company's fee is fixed and determinable; and (iv) collectability is probable.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><u>(J) Income Taxes</u></i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Income taxes are accounted for under the
asset and liability method in accordance with ASC Topic 740-10. Deferred tax assets and liabilities are recognized for the future
tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities
and their respective tax bases and operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted
tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or
settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that
includes the enactment date. When it is considered to be more likely than not that a deferred tax asset will not be realized, a
valuation allowance is provided for the excess.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><u>(I) Recent Accounting Pronouncements</u></i></b></p>
<p style="color: #252525; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We do not believe there
are any recently issued accounting standards that have not yet been adopted that will have a material impact on the Company’s
financial statements.</p>
0
0
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying financial statements have
been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the
normal course of business. The Company has incurred a net loss of $152,387 for the period of August 9, 2011 (inception) to November
30, 2012, and it is expected that it will continue to have negative cash flows as the business plan is implemented.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These conditions give rise to doubt about
the Company’s ability to continue as a going concern. These financial statements do not include adjustments relating to the
recoverability and classification of reported asset amounts or the amount and classification of liabilities that might be necessary
should the Company be unable to continue as a going concern. The Company’s continuation as a going concern is dependent upon
its ability to obtain additional financing or sale of its common stock as may be required and ultimately to attain profitability.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 11, 2011, the Company entered
into an Aircraft Purchase/Sales Agreement with an unrelated and unaffiliated third party for the acquisition of a 2002 Robinson
R44 Raven II helicopter for the purchase price of $212,500. Pursuant to paragraph 7 of the agreement, the Seller warrants that
the Aircraft is in airworthy condition and has a currently effective Standard Category airworthiness certificate issued by the
Federal Aviation Administration (“FAA”) and that all Airworthiness Directives have been complied with. In September
2011, the Company engaged the services of an independent third party to perform the FAA required annual inspection without incident.
The first mandatory FAA overhaul is required at 2,000 hobbs hours of operation which is anticipated to occur in the first quarter
of our second fiscal year. The aircraft was placed in service on October 1, 2011 and is estimated to have a useful life of approximately
10 years. As of November 30, 2012, and August 31, 2012, the Company recorded depreciation expense of $5,313 and $19,481, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Fixed assets consist of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 65%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">November 30, 2012</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">August 31, 2012</td></tr>
<tr style="background-color: rgb(204,238,204); vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt; width: 54%">Robinson R44 helicopter</td>
<td style="padding-bottom: 1pt; width: 1%"> </td>
<td style="border-bottom: black 1pt solid; text-align: left; width: 1%">$</td>
<td style="border-bottom: black 1pt solid; text-align: right; width: 20%">212,500</td>
<td style="text-align: left; padding-bottom: 1pt; width: 1%"> </td>
<td style="padding-bottom: 1pt; width: 1%"> </td>
<td style="border-bottom: black 1pt solid; text-align: left; width: 1%">$</td>
<td style="border-bottom: black 1pt solid; text-align: right; width: 20%">212,500</td>
<td style="text-align: left; padding-bottom: 1pt; width: 1%"> </td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">Total fixed assets</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">212,500</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">212,500</td>
<td style="text-align: left"> </td></tr>
<tr style="background-color: rgb(204,238,204); vertical-align: bottom">
<td style="padding-left: 5.4pt">Less:</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Accumulated depreciation</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">24,794</td>
<td style="text-align: left; padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">19,481</td>
<td style="text-align: left; padding-bottom: 1pt"> </td></tr>
<tr style="background-color: rgb(204,238,204); vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Total fixed assets, net</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">187,706</td>
<td style="text-align: left; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">193,019</td>
<td style="text-align: left; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 65%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">November 30, 2012</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">August 31, 2012</td></tr>
<tr style="background-color: rgb(204,238,204); vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt; width: 54%">Robinson R44 helicopter</td>
<td style="padding-bottom: 1pt; width: 1%"> </td>
<td style="border-bottom: black 1pt solid; text-align: left; width: 1%">$</td>
<td style="border-bottom: black 1pt solid; text-align: right; width: 20%">212,500</td>
<td style="text-align: left; padding-bottom: 1pt; width: 1%"> </td>
<td style="padding-bottom: 1pt; width: 1%"> </td>
<td style="border-bottom: black 1pt solid; text-align: left; width: 1%">$</td>
<td style="border-bottom: black 1pt solid; text-align: right; width: 20%">212,500</td>
<td style="text-align: left; padding-bottom: 1pt; width: 1%"> </td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">Total fixed assets</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">212,500</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">212,500</td>
<td style="text-align: left"> </td></tr>
<tr style="background-color: rgb(204,238,204); vertical-align: bottom">
<td style="padding-left: 5.4pt">Less:</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Accumulated depreciation</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">24,794</td>
<td style="text-align: left; padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">19,481</td>
<td style="text-align: left; padding-bottom: 1pt"> </td></tr>
<tr style="background-color: rgb(204,238,204); vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Total fixed assets, net</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">187,706</td>
<td style="text-align: left; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">193,019</td>
<td style="text-align: left; padding-bottom: 2.5pt"> </td></tr>
</table>
2011-08-11
P10Y
212500
212500
212500
212500
5313
19481
24794
19481
2000
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Accrued current liabilities consist of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 65%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">November 30, 2012</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">August 31, 2012</td></tr>
<tr style="background-color: rgb(204,238,204); vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt; width: 54%">Accounts payable</td>
<td style="width: 1%"> </td>
<td style="text-align: left; width: 1%">$</td>
<td style="text-align: right; width: 20%">229,600</td>
<td style="text-align: left; width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="text-align: left; width: 1%">$</td>
<td style="text-align: right; width: 20%">190,667</td>
<td style="text-align: left; width: 1%"> </td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Accrued interest</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">16,757</td>
<td style="text-align: left; padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">13,560</td>
<td style="text-align: left; padding-bottom: 1pt"> </td></tr>
<tr style="background-color: rgb(204,238,204); vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Total accrued current liabilities, net</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">246,357</td>
<td style="text-align: left; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">204,227</td>
<td style="text-align: left; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" align="center" style="width: 65%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">November 30, 2012</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">August 31, 2012</td></tr>
<tr style="background-color: rgb(204,238,204); vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt; width: 54%">Accounts payable</td>
<td style="width: 1%"> </td>
<td style="text-align: left; width: 1%">$</td>
<td style="text-align: right; width: 20%">229,600</td>
<td style="text-align: left; width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="text-align: left; width: 1%">$</td>
<td style="text-align: right; width: 20%">190,667</td>
<td style="text-align: left; width: 1%"> </td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Accrued interest</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">16,757</td>
<td style="text-align: left; padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: left"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">13,560</td>
<td style="text-align: left; padding-bottom: 1pt"> </td></tr>
<tr style="background-color: rgb(204,238,204); vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Total accrued current liabilities, net</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">246,357</td>
<td style="text-align: left; padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: black 2.5pt double; text-align: right">204,227</td>
<td style="text-align: left; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 11, 2011, the Company entered
into a Purchase Money Promissory Note and Security Agreement in the amount of $212,813. The loan bears interest at a rate of 6%
per annum, is secured by all the assets of the Company and matures on August 11, 2016. Pursuant to the terms of the agreement,
the Company is required to make semi-annual interest only payments in the amount of $6,385 beginning on March 31, 2012 with the
unpaid principal and accrued interest due at maturity on August 11, 2016. In addition, the agreement provides for one ninety-day
extension at maturity upon the option of the holder. As of November 30, 2012 and August 31, 2012, the principal balance totaled
$212,813 and accrued interest was $16,757 and $13,560, respectively. Interest expense totaled $3,197 and $3,352, for the three month periods ending November 30, 2012 and 2011,
respectively.</p>
<p style="margin: 0pt"></p>
2011-08-11
2016-08-11
6385
2012-03-31
16757
13560
0.06
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 22, 2011, the Company issued
10,000,000 shares of its restricted common stock to its two officers and directors for cash totaling $10,000 or $0.001 per share.
On October 26, 2011, Mr. J. Duncan, CEO, CFO and Director tendered his resignation for all aforementioned positions effective immediately.
In addition, Mr. S. Mullin, COO and Secretary also tendered his resignation effective immediately. Prior to the resignation of
Mr. J. Duncan, the board appointed Mr. I. Johnson to act as President, Chief Executive Officer, Chief Financial Officer, Secretary
and Treasurer of the Company. In connection with the resignations of Messer’s Duncan and Mullin, each elected to sell their
respective restricted common shares of the Company totaling 10,000,000, to Mr. I. Johnson.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On September 1, 2011, the Company entered
into an Aircraft Use/Management Agreement with Elite Aviation VGT, LLC (“Elite”) Mr. Ian Johnson, our sole officer
is an employee of Elite. The term of the agreement is on a month to month basis with a ninety-day notification period for termination.
Elite is wholly owned by the Company’s former officers. Pursuant to the agreement, Elite has the authority to utilize the
Company’s Robison R44 helicopter in its ordinary course of business for rental and training purposes in exchange, Elite agrees
to provide hanger storage and maintenance services at industry standard rates. In addition, Elite Aviation VGT, LLC (“Elite”),
through their industry experience and contacts, assisted the Company in locating the R44 Raven. Elite also introduced the Company
to various lenders, one of which subsequently provided the financing for the acquisition of the aircraft. The Company may seek
Elite’s assistance in connection the future purchase and/or financing of an additional aircraft.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On November 1, 2012, the Company terminated the Aircraft Use/Management
Agreement with Elite Aviation VGT, LLC (“Elite”) and replaced it with a Helicopter Lease Agreement with the same company.
The lease agreement provides for income at a rate of $185 per Hobbs hour, and stipulates that the lessee will be responsible for
all maintenance and repairs, hangar parking fees, insurance fees, as well as fuel and oil costs in relation to the helicopter for
the duration of the lease, which is the sooner of December 31, 2014 or the date upon which the helicopter reaches a Hobbs register
reading of 2,200 hours.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Elite has the authority to adjust the end
user rental rate from time to time to allow for fluctuations in operating costs. During the three months ended November 30, 2012
the Company recognized an average rental rate was $122. All repairs are at the Company’s expense and billed by Elite at a
rate congruent with the average local rate. Parts required to be purchased by Elite for repair and maintenance are charged back
to the Company. In addition, the Company is responsible for payment of all debt service, applicable property and other taxes, license
and registration fees; hangar parking rate of $350 per month; fuel and regular operating oil, calculated using the actual VGT field
delivery rate of Elite. Management fees are paid as a percentage of gross revenue based upon the billable Hobbs hours each month
as follows: 1) 0 to 10 hours =15% of gross revenue, 2) 11 to 25 hours =17%, and 3) 26 + hours =19%. During the three months ended
November 30, 2012, the Company recorded revenue of $32,964 as a result of its agreement with Elite. The related costs incurred
for the three months totaled $26,047 which is comprised of aircraft fees of $6,359, fuel $11,936 and management fees totaling $7,752.</p>
<p style="margin: 0pt"></p>
10000000
2011-09-01
2012-11-01
2012-11-01
185
The lease agreement provides for income at a rate of $185 per Hobbs hour, and stipulates that the lessee
will be responsible for all maintenance and repairs, hangar parking fees, insurance fees, as well as fuel and oil costs in relation
to the helicopter for the duration of the lease, which is the sooner of December 31, 2014 or the date upon which the helicopter
reaches a Hobbs register reading of 2,200 hours.
In addition, the Company is responsible for payment of all debt service, applicable property and other
taxes, license and registration fees; hangar parking rate of $350 per month; fuel and regular operating oil, calculated using
the actual VGT field delivery rate of Elite. Management fees are paid as a percentage of gross revenue based upon the billable
Hobbs hours each month as follows: 1) 0 to 10 hours =15% of gross revenue, 2) 11 to 25 hours =17%, and 3) 26 + hours =19%.
2011-10-26
122
26047
6359
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is authorized to issue up to
90,000,000 shares of $0.001 par value common stock and 10,000,000 shares of $0.001 par value preferred stock. The Preferred Stock
may be issued in one or more series, with all rights and preferences being determined by the board of directors.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><u>Preferred Stock</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The voting rights, rate of dividends preference
in relation to other classes or series, and rights in the event of liquidation related to shares of Preferred Stock of any series
are determined by the board of directors and may vary from time to time.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><u>Common Stock</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Holders of common stock have voting rights
equal to one vote for each share of Common Stock held and are entitled to receive dividends when, and if declared by the board
of directors subject to the rights of any Preferred Stock having preference as to dividends. In the event of liquidation or dissolution,
subject to the rights of Preferred Stock</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Holders’ are entitled to share ratably
in the Corporations assets. Holders of Common Stock do not have conversion, redemption or preemptive rights.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 22, 2011, the Company issued
10,000,000 shares of its common stock to its two of its former officers and directors for cash totaling $10,000. (See Note 6)</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 6, 2012, the Company sold a total
of 3,500,000 shares of its common stock at a price of $0.01 per share pursuant to its initial public offering for total proceeds
of $35,000.</p>
<p style="margin: 0pt"></p>
10000000
10000000
3500000
10000
10000
35000
0.001
0.001
0.01
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with ASC 855, management
evaluated all activity of the Company through the issue date of the financial statements and concluded that no other subsequent
events have occurred that would require recognition or disclosure in the financial statements.</p>
<p style="margin: 0pt"></p>
246357
204227