Saker Aviation Services, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Saker Aviation Services, Inc. has filed its 2023 10-K, detailing financial performance, historical company changes, and ongoing legal and operational matters.</b>

AI Summary

Saker Aviation Services, Inc. (SKAS) filed a Annual Report (10-K) with the SEC on April 1, 2024. Saker Aviation Services, Inc. filed its 2023 Form 10-K on April 1, 2024, reporting on the fiscal year ending December 31, 2023. The company was formerly known as FirstFlight, Inc., FBO AIR, INC., and SHADOWS BEND DEVELOPMENT INC. The filing includes details on discontinued operations related to GCK, with specific dates and financial periods mentioned. Information regarding arbitration with Empire Aviation LLC is noted, with a subsequent event date of March 14, 2024. The report references various plans, including the SafeHarbor 401K Plan and The 2005 Plan, with associated dates and member types.

Why It Matters

For investors and stakeholders tracking Saker Aviation Services, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Saker Aviation Services' financial health and operational status for the fiscal year 2023, which is crucial for investors to assess the company's performance and future prospects. The inclusion of details on discontinued operations, arbitration, and various employee benefit plans offers insight into the company's strategic decisions, potential liabilities, and employee-related financial commitments.

Risk Assessment

Risk Level: medium — Saker Aviation Services, Inc. shows moderate risk based on this filing. The company has a history of name changes and mentions arbitration with Empire Aviation LLC, indicating potential ongoing legal or financial disputes that could impact its operations and financial stability.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand the company's current financial position and any potential headwinds.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-04-01 — Filing Date (Filed as of date)
• 2024-03-14 — Subsequent Event Date (Arbitration with Empire Aviation LLC)
• 2022-01-01 — Start Date for GCK Discontinued Operations (GCK Member)
• 2023-01-01 — Start Date for GCK Discontinued Operations (GCK Member)

Key Players & Entities

• Saker Aviation Services, Inc. (company) — Filer name
• FirstFlight, Inc. (company) — Former company name
• FBO AIR, INC. (company) — Former company name
• SHADOWS BEND DEVELOPMENT INC (company) — Former company name
• Empire Aviation LLC (company) — Party in arbitration
• GCK (company) — Related to discontinued operations
• Wachtel Missry LLP (company) — Mentioned in relation to specific periods
• 2023-12-31 (date) — Fiscal year end

FAQ

Risk Factors

• Arbitration with Empire Aviation LLC [medium — legal]: The company is involved in an arbitration with Empire Aviation LLC, which could result in significant financial or operational impacts.

Key Dates

• 2023-12-31: Fiscal Year End — Reporting period for the 10-K
• 2024-04-01: 10-K Filing Date — Date the annual report was submitted to the SEC
• 2024-03-14: Subsequent Event Date — Related to arbitration with Empire Aviation LLC

Key Financial Figures

• $0.03 — ct: Title of each class Common Stock, $0.03 par value Indicate by check mark if t
• $5,000,000 — to pay the greater of 18% of the first $5,000,000 in any program year based on cash colle
• $100,000 — of monthly Gross Receipts in excess of $100,000 as Concession fees for this period. In
• $682,000 — 023 and 2022, we incurred approximately $682,000 and $1,509,000 in concession fees, resp
• $1,509,000 — we incurred approximately $682,000 and $1,509,000 in concession fees, respectively, which
• $5,000 — tive fee to the NYCEDC in the amount of $5,000. During the twelve months ended Decembe
• $40,000 — December 31, 2023, the Company incurred $40,000 in administrative fees which are record
• $1,036,811 — mpany is required to pay the greater of $1,036,811 or 30% of Gross Receipts during the Ini
• $518,406 — ing the Initial Term and the greater of $518,406 or 30% of Gross Receipts during both Re
• $1.6 million — onal Airport in Garden City, Kansas for $1.6 million. On October 31, 2022 (the "Closing Dat
• $1.5 million — tain closing adjustments, approximately $1.5 million. The Buyer paid the purchase price on t
• $160,000 — purchase price on the Closing Date less $160,000, which was subsequently paid on the fir
• $184,000 — ree customers represented approximately $184,000, or 75%, of the balance of accounts rec
• $248,000 — our customers represented approximately $248,000, or 84.1%, of the balance of accounts r

Filing Documents

• skas20231231_10k.htm (10-K) — 965KB
• ex_643983.htm (EX-21.1) — 2KB
• ex_643852.htm (EX-23.1) — 2KB
• ex_643853.htm (EX-31.1) — 11KB
• ex_643854.htm (EX-31.2) — 12KB
• ex_643851.htm (EX-32.1) — 6KB
• 0001437749-24-010272.txt (&nbsp;) — 4631KB
• skas-20231231.xsd (EX-101.SCH) — 43KB
• skas-20231231_def.xml (EX-101.DEF) — 312KB
• skas-20231231_lab.xml (EX-101.LAB) — 295KB
• skas-20231231_pre.xml (EX-101.PRE) — 337KB
• skas-20231231_cal.xml (EX-101.CAL) — 41KB
• skas20231231_10k_htm.xml (XML) — 501KB

BUSINESS

BUSINESS 4 ITEM 1A.

RISK FACTORS

RISK FACTORS 7 ITEM 1B. UNRESOLVED STAFF COMMENTS 11 ITEM 1C. CYBER SECURITY 11 ITEM 2.

PROPERTIES

PROPERTIES 12 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 12 ITEM 4. MINE SAFETY DISCLOSURES 12 ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 12 ITEM 6. RESERVED 13 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 13 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 20 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA

FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA 21 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 36 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 36 ITEM 9B. OTHER INFORMATION 36 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 36 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE 37 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 39 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 41 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 44 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 44 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 45 ITEM 16. FORM 10-K SUMMARY 46

SIGNATURES

SIGNATURES 47 THIS FORM 10-K CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 27A OF THE SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. OUR ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE SET FORTH IN SUCH FORWARD-LOOKING STATEMENTS. CERTAIN FACTORS THAT MIGHT CAUSE SUCH A DIFFERENCE ARE DISCUSSED IN ITEM 1A, "RISK FACTORS" AND ITEM 7, "MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" OF THIS ANNUAL REPORT ON FORM 10-K. SEE ALSO "FORWARD-LOOKING STATEMENTS" WITHIN SUCH ITEM 7 OF THIS ANNUAL REPORT ON FORM 10-K. PART I ITEM 1.

BUSINESS

BUSINESS General Saker Aviation Services, Inc. ("we", "us", "our") is a Nevada corporation. Our common stock, $0.03 par value per share (the "common stock"), is quoted on the OTCQB Marketplace ("OTCQB") under the symbol "SKAS". Through our subsidiary, we operate in the aviation services segment of the general aviation industry, in which we serve as the operator of a heliport. We were formed on January 17, 2003 as a proprietorship and were incorporated in Arizona on January 2, 2004. We became a public company as a result of a reverse merger transaction on August 20, 2004 with Shadows Bend Development, Inc., an inactive public Nevada corporation, and subsequently changed our name to FBO Air, Inc. On December 12, 2006, we changed our name to FirstFlight, Inc. On September 2, 2009, we changed our name to Saker Aviation Services, Inc. Our business activities are carried out as the operator of the Downtown Manhattan (New York) Heliport and until October 31, 2022 as a fixed base operator ("FBO') and a provider of aircraft maintenance and repair services ("MRO") at the Garden City (Kansas) Regional Airport. FBOs provide ground-based services, such as fueling and aircraft storage for general aviation, commercial and military aircraft, and other miscellaneous services. Our business activities at the Downtown Manhattan (New York) Heliport facility (the "Downtown Manhattan Heliport") commenced in November 2008 when we were awarded the Concession Agreement by the City of New York to operate the Downtown Manhattan Heliport, which we assigned to our subsidiary, FirstFlight Heliports, LLC d/b/a Saker Aviation Services. We believe the market has been historically cyclical, with revenue correlated to general U.S. economic conditions. Although not truly seasonal in nature, the spring and summer months tend to generate higher levels of revenue and our operations generally follow that trend. Beginning in April 2022, following declined tourism due to the COVID-19 pandemic, sights

RISK FACTORS

RISK FACTORS Risks related to our business and operations: We could be adversely affected by increases in the price, or decreases in the availability, of jet fuel. Our operations could be significantly affected by the availability and price of jet fuel. The price and supply of jet fuel is unpredictable and fluctuates based on events we cannot control, such as geopolitical developments, including but not limited to heightened uncertainties and impacts resulting from Russian military actions in Ukraine and associated response, supply and demand for crude oil, actions by oil and jet fuel producers, actions by jet fuel refiners, conflict, unrest or economic instability in oil producing countries and regions, regional production patterns and weather conditions. A significant increase in the price of jet fuel would most likely have a material impact on our ability to achieve and maintain profitability unless we are able to pass on such costs to our customers. Due to the competitive nature of the industry, our ability to pass on increased fuel prices by increasing our rates is uncertain. Likewise, any potential benefit of lower fuel prices may be offset by increased competition and lower revenue, in general. If there are new outbreaks of hostility or other conflicts in oil producing areas or elsewhere, there could be a reduction in the availability of jet fuel or significant increases in costs to our business, as well as to the entire aviation industry, which in turn would adversely affect our business and results of operations. While we do not currently anticipate a significant reduction in fuel availability, dependency on foreign imports of crude oil and the impacts resulting from Russian military actions in Ukraine and possibility of changes in government policy on jet fuel production, transportation and marketing make it impossible to predict the future availability of jet fuel. As a result, any increases in these prices or decrease in the availability of fuel ma

View Full Filing

View this 10-K filing on SEC EDGAR