Saker Aviation Plunges into Loss Post-Heliport Exit

TL;DR

**SKAS is a shell of its former self after losing the heliport; avoid until a new business model emerges.**

AI Summary

Saker Aviation Services, Inc. (SKAS) reported a significant decline in financial performance for the nine months ended September 30, 2025, primarily due to the termination of its Downtown Manhattan Heliport concession agreement. Revenue plummeted to $1,260,756, a drastic 80.5% decrease from $6,466,973 in the same period of 2024. This led to a net loss of $(944,870) for the nine months ended September 30, 2025, a sharp reversal from a net income of $736,868 in the prior year. The company ceased all operations at the Heliport on March 29, 2025, resulting in zero revenue for the three months ended September 30, 2025, compared to $2,505,488 in the prior year's quarter. Operating loss for the nine months widened to $(1,129,323) from an operating income of $1,900,270. SKAS is actively reviewing alternative business activities to generate future revenue, having invested its excess working capital of $4,790,773 in cash and cash equivalents and $3,669,746 in investments, primarily U.S. Treasury Notes and Bills.

Why It Matters

This filing signals a critical juncture for Saker Aviation Services, as the loss of its primary revenue source, the Downtown Manhattan Heliport concession, has decimated its financial performance. Investors face significant uncertainty regarding future revenue streams and profitability, as the company is 'currently reviewing alternative business activities.' Employees previously associated with the heliport operations are directly impacted by the cessation of activities. For customers, the change in heliport operators means a shift in service providers, potentially affecting pricing or service quality. In the broader market, this highlights the inherent risks of single-asset or single-contract business models, especially in competitive urban infrastructure concessions.

Risk Assessment

Risk Level: high — The company's revenue dropped from $6,466,973 to $1,260,756 for the nine months ended September 30, 2025, and was $0 for the three months ended September 30, 2025, indicating a complete loss of its primary business. This resulted in a net loss of $(944,870) for the nine months, a significant deterioration from a net income of $736,868 in the prior year. The company explicitly states it is 'currently reviewing alternative business activities as a source of revenue,' signifying a lack of a defined future business model.

Analyst Insight

Investors should exercise extreme caution and likely avoid SKAS shares until the company articulates a clear, viable new business strategy with concrete revenue projections. Current shareholders should consider divesting, as the company lacks a primary revenue source and faces significant uncertainty.

Financial Highlights

revenue

$1,260,756

net Income

$(944,870)

cash Position

$4,790,773

revenue Growth

-80.5%

Revenue Breakdown

Key Numbers

• $1,260,756 — Revenue for nine months ended Sept 30, 2025 (Decreased 80.5% from $6,466,973 in 2024 due to heliport termination.)
• $(944,870) — Net loss for nine months ended Sept 30, 2025 (Reversed from a net income of $736,868 in 2024.)
• $0 — Revenue for three months ended Sept 30, 2025 (Indicates complete cessation of operations after March 29, 2025.)
• $(1,129,323) — Operating loss for nine months ended Sept 30, 2025 (Worsened from an operating income of $1,900,270 in 2024.)
• $4,790,773 — Cash and cash equivalents as of Sept 30, 2025 (Represents available liquidity after a $507,949 decrease from Dec 31, 2024.)
• $3,669,746 — Investments as of Sept 30, 2025 (Primarily U.S. Treasury Notes and Bills, an increase from $3,553,000 in 2024.)
• $8,812,218 — Working capital surplus as of Sept 30, 2025 (Provides some financial cushion despite operational losses.)
• $276,923 — Covenant Not To Compete payment liability (Payments over 18 months starting April 2025 to Brian Tolbert.)
• $423,345 — Net cash used in operating activities for nine months ended Sept 30, 2025 (Reflects the impact of the net loss on cash flow.)
• 997,182 — Common shares outstanding as of Nov 7, 2025 (Reflects minimal change in share count.)

Key Players & Entities

• Saker Aviation Services, Inc. (company) — Registrant and parent company
• Downtown Manhattan Heliport (company) — Former primary business operation
• City of New York (regulator) — Grantor of the concession agreement
• NYCEDC (regulator) — Notified Saker of concession termination
• Brian Tolbert (person) — Manager of the Downtown Manhattan Heliport, party to a Covenant Not To Compete agreement
• Wachtel & Missry, LLP (company) — Law firm providing legal services to Saker
• William B. Wachtel (person) — Chairman of Saker's Board of Directors and managing partner of Wachtel & Missry, LLP
• UBS Financial Services Inc. (company) — Financial institution holding Saker's investments
• FirstFlight Heliports, LLC (company) — Wholly-owned subsidiary of Saker Aviation Services, Inc.
• Empire Aviation (company) — Related party with a management agreement

FAQ

Risk Factors

• Cessation of Key Business Operations [high — operational]: The company ceased all operations at the Downtown Manhattan Heliport on March 29, 2025, due to the termination of its concession agreement. This resulted in zero revenue for the third quarter of 2025 and a substantial year-over-year revenue decline.
• Dependence on Future Business Activities [high — financial]: With the primary revenue source terminated, the company is actively reviewing alternative business activities. The success of these new ventures is uncertain and critical for future revenue generation.
• Concession Agreement Termination [high — legal]: The termination of the Downtown Manhattan Heliport concession agreement by NYCEDC led to the cessation of operations. The terms and implications of this termination, including any potential disputes or penalties, represent a significant risk.
• Operating Losses [high — financial]: The company reported an operating loss of $(1,129,323) for the nine months ended September 30, 2025, a reversal from an operating income of $1,900,270 in the prior year. This indicates a severe deterioration in operational profitability.
• Negative Net Income [high — financial]: A net loss of $(944,870) was incurred for the nine months ended September 30, 2025, compared to a net income of $736,868 in the same period of 2024. This highlights the significant financial impact of the operational changes.
• Covenant Not To Compete Liability [medium — financial]: The company has a liability of $276,923 for a Covenant Not To Compete payment, to be paid over 18 months starting April 2025. While structured as a liability, its impact on cash flow needs to be managed.

Industry Context

The aviation services industry, particularly heliport operations, is highly dependent on specific contracts and regulatory approvals. The termination of a major concession agreement, as seen with Saker Aviation Services, can have an immediate and devastating impact on revenue. Companies in this sector often face intense competition and require significant capital investment for infrastructure and compliance.

Regulatory Implications

The termination of the Downtown Manhattan Heliport concession agreement highlights the significant regulatory and contractual risks inherent in operating public infrastructure. Changes in city policy or contract disputes can lead to abrupt cessation of operations, requiring companies to navigate complex legal and administrative processes.

What Investors Should Do

1. Monitor the company's progress in identifying and securing new revenue-generating business activities.
2. Analyze the composition and performance of the company's investment portfolio.
3. Evaluate the company's cash burn rate and the adequacy of its cash reserves ($4,790,773) to fund new initiatives and operational expenses.

Key Dates

• 2025-03-29: Cessation of Downtown Manhattan Heliport Operations — Marked the end of the company's primary revenue-generating activity due to concession agreement termination.
• 2025-03-04: Notification of Concession Agreement Termination — Formal notice from NYCEDC that the heliport concession would be terminated, signaling the impending operational shutdown.
• 2025-04-01: Start of Covenant Not To Compete Payments — Initiation of 18-month payment schedule for $276,923 liability, impacting cash outflow.

Glossary

Concession Agreement

A contract granting permission to operate a business or service in a specific location, often involving fees or revenue sharing with the grantor. (The termination of this agreement with the City of New York for the Downtown Manhattan Heliport was the primary cause of the company's revenue collapse.)

Covenant Not To Compete

A contractual clause where one party agrees not to enter into or start a similar profession or trade in competition against another party. (The company has a payment liability of $276,923 related to such a covenant, impacting its financial obligations.)

Cash and cash equivalents

Highly liquid financial instruments with original maturities of three months or less, readily convertible to known amounts of cash. (SKAS holds $4,790,773 in cash and cash equivalents as of September 30, 2025, representing its available liquidity.)

Investments

Assets held by a company with the expectation of generating income or appreciation. (SKAS has $3,669,746 in investments, primarily U.S. Treasury Notes and Bills, indicating a strategy to preserve capital.)

Working capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health and operational efficiency. (The company has a surplus of $8,812,218 in working capital, providing a financial cushion despite operational challenges.)

Year-Over-Year Comparison

Saker Aviation Services has experienced a dramatic downturn in financial performance compared to the prior year. Revenue for the nine months ended September 30, 2025, plummeted by 80.5% to $1,260,756, a stark contrast to $6,466,973 in the same period of 2024. This revenue collapse has led to a significant swing from a net income of $736,868 to a net loss of $(944,870). The operating results have also reversed from a healthy operating income to a substantial operating loss of $(1,129,323). A new risk factor is the company's complete reliance on developing new business activities, as its core operation has ceased.

Key Financial Figures

• $0.03 — had 997,182 shares of its common stock, $0.03 par value, issued and outstanding. i
• $0 — ree months ended September 30, 2025 was $0. We had no operations in the three mont
• $1,260,756 — ine months ended September 30, 2025 was $1,260,756 as compared with corresponding prior-ye
• $6,466,973 — responding prior-year period revenue of $6,466,973. For the nine months ended September 30
• $297,000 — uel and related items was approximately $297,000 as compared to approximately $1,604,000
• $1,604,000 — y $297,000 as compared to approximately $1,604,000 in the nine months ended September 30,
• $937,000 — ices and supply items was approximately $937,000 as compared to approximately $4,568,000
• $4,568,000 — y $937,000 as compared to approximately $4,568,000 in the nine months ended September 30,
• $27,000 — 25, all other revenue was approximately $27,000 as compared to approximately $295,000 i
• $295,000 — ly $27,000 as compared to approximately $295,000 in the nine months ended September 30,
• $1,245,862 — ended September 30, 2025 as compared to $1,245,862 in the three months ended September 30,
• $749,396 — ber 30, 2024. Total cost of revenue was $749,396 in the nine months ended September 30,
• $3,183,418 — ended September 30, 2025 as compared to $3,183,418 in the nine months ended September 30,
• $1,259,626 — ded September 30, 2025 as compared with $1,259,626 in the three months ended September 30,
• $511,360 — tember 30, 2024. Total gross profit was $511,360 in the nine months ended September 30,

Filing Documents

• skas20250930_10q.htm (10-Q) — 515KB
• ex_876775.htm (EX-31.1) — 10KB
• ex_876776.htm (EX-31.2) — 10KB
• ex_876777.htm (EX-32.1) — 6KB
• 0001437749-25-032770.txt ( ) — 2190KB
• skas-20250930.xsd (EX-101.SCH) — 21KB
• skas-20250930_def.xml (EX-101.DEF) — 126KB
• skas-20250930_lab.xml (EX-101.LAB) — 135KB
• skas-20250930_pre.xml (EX-101.PRE) — 140KB
• skas-20250930_cal.xml (EX-101.CAL) — 25KB
• skas20250930_10q_htm.xml (XML) — 163KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Balance Sheets as of September 30, 2025 (unaudited) and December 31, 2024 3 4 5 6

Notes to Financial Statements (unaudited)

Notes to Financial Statements (unaudited) 7 ITEM 2.

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

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 10 ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 13 ITEM 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 14

- OTHER INFORMATION

PART II - OTHER INFORMATION ITEM 1A.

RISK FACTORS

RISK FACTORS 15 ITEM 6. EXHIBITS 15

SIGNATURES

SIGNATURES 16 ii SAKER AVIATION SERVICES, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS September 30, 2025 (unaudited) December 31, 2024 (audited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 4,790,773 $ 5,298,722 Investments 3,669,746 3,553,000 Accounts receivable 0 316,027 Inventories 0 6,647 Prepaid expenses 626,089 1,607,476 Total current assets 9,086,608 10,781,872 PROPERTY AND EQUIPMENT , net of accumulated depreciation 0 102,073 TOTAL ASSETS $ 9,086,608 $ 10,883,945 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 79,831 $ 227,050 Customer deposits 0 263,032 Deferred liability 184,613 0 Accrued expenses 9,946 718,067 Total current liabilities 274,390 1,208,149 TOTAL LIABILITIES 274,390 1,208,149 STOCKHOLDERS ' EQUITY Preferred stock - $ 0.03 par value; authorized 333,306 ; none issued and outstanding Common stock - $ 0.03 par value; authorized 3,333,334 ; 997,182 and 995,939 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 29,916 29,878 Additional paid-in capital 20,085,463 20,004,209 Accumulated deficit ( 11,303,161 ) ( 10,358,291 ) TOTAL STOCKHOLDERS' EQUITY 8,812,218 9,675,796 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 9,086,608 $ 10,883,945 See accompanying notes to consolidated financial statements. 3 SAKER AVIATION SERVICES, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2025 2024 2025 2024 REVENUE $ 0 $ 2,505,488 $ 1,260,756 $ 6,466,973 COST OF REVENUE 0 1,245,862 749,396 3,183,418 GROSS PROFIT 0 1,259,626 511,360 3,283,555 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 264,319 456,132 1,640,683 1,383,285 OPERATING (LOSS) INCOME ( 264,319 ) 803,494 ( 1,129,323 ) 1,900

- Management ' s Discussion and Analysis of Financial Condition and Results of Operations

Item 2 - Management ' s Discussion and Analysis of Financial Condition and Results of Operations The following discussion should be read together with the accompanying unaudited condensed consolidated financial statements and related notes in this report. This Item 2 contains forward-looking statements that involve risks and uncertainties. Undue reliance should not be placed on these forward-looking statements, which speak only as of the date of this report. Actual results may differ materially from those expressed or implied in such forward-looking statements. Factors which could cause actual results to differ materially are discussed throughout this report and include, but are not limited to, those set forth at the end of this Item 2 under the heading "Cautionary Statement Regarding Forward Looking Statements." Additional factors are under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. The terms "we", "us", and "our" are used below to refer collectively to the Company and its subsidiary through which our businesses was conducted. Overview Saker Aviation Services, Inc. is a Nevada corporation. Our common stock, $0.03 par value per share (the "common stock"), is quoted on the OTCID Basic Market ("OTCID") under the symbol "SKAS". 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 were carried out by FirstFlight Heliports, LLC d/b/a Saker Aviation Services ("FFH"), a wholly-owned subsidiary, as the operator of the Downtown Manhattan Heliport via a concession agreement (the

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