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Mega Matrix Corp [MPU]
Date Filed : Nov 19, 2021
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Exhibit 99.1
AEROCENTURYCORP. REPORTS THIRD QUARTER 2021 FINANCIAL RESULTS
PALOALTO, CALIFORNIA, November 19, 2021 /PRNewswire/ -- AeroCentury Corp. (“AeroCentury” or the “Company”) (NYSE American:ACY), today announced financial results for its fiscal third quarter ended September 30, 2021.
Aspreviously reported, the Company and its U.S. subsidiaries previously filed voluntary petitions for relief under Chapter 11 of the BankruptcyCourt on March 29, 2021. On August 31, 2021, the Bankruptcy Court confirmed the Company’s Plan of Reorganization. On September 30,2021, the Company completed its Chapter 11 restructuring process and emerged from its Chapter 11 bankruptcy.
FinancialHighlights:
| · | Net income in the thirdquarter of 2021 was $27.5 million as compared to a net loss of $4.1 million in the same period in 2020. |
| · | The Company recorded$28.7 million of reorganization gains in the third quarter of 2021. |
| · | The Company adoptedfresh start reporting adjustments following its emergence from bankruptcy. |
YuchengHu, the Company’s Chief Executive Officer, said: “We are very pleased to announce the Company’s financial results forthe third quarter of 2021, representing the fresh start for the Company from both from financial and strategic perspectives. After thecompletion of the Company’s reorganization, we look forward to continuing to enjoy a portion of the growth and development of theCompany’s legacy aircraft leasing business through our majority stake in the Company’s previously wholly-owned subsidiary,JetFleet Holding Corp., but we will also be opportunistic and look for additional growth investments in the future to diversify our revenuestreams and potential high growth earnings to our shareholders.”
Third Quarter 2021 FinancialResults
Becausethe Company’s consolidated financial statements reflects fresh start reporting adjustments following its emergence from bankruptcy,any effects of the transactions contemplated by the Plan and Plan Sponsor Agreement, and financial information relating to results ofoperations, the Company cannot adequately benchmark the operating results of the 1-day period ended September 30, 2021 against any ofthe previous periods reported in its Condensed Consolidated Financial Statements. As such, the following operating results for the Company’sfiscal third quarter is based on the period from July 1, 2021 through September 29, 2021 (“2021 Q3”).
| l | Net income in 2021 Q3was $27.5 million as compared to a net loss of $4.1 million in 2020 Q3. |
| l | Revenues and other incomedecreased by 54% to $1.6 million in 2021 Q3 from $3.5 million in 2020 Q3, primarily due to a decrease in operating lease revenue and reducedrent for two assets. |
| l | In 2021 Q3, the Companyhad total operating expenses of $2.7 million as compared to $7.0 million in 2020 Q3, primarily comprised of professional fees and administrativeexpenses and salary and employee benefits, due to no impairment charges after the assets used to settle the liabilities subject to compromise,less interest expense accrued on the Drake Indebtedness after the Company’s Chapter 11 filing in late March 2021 and the decreaseddepreciation expenses. |
About AeroCentury: AeroCenturyis an independent global aircraft operating lessor and finance company specializing in leasing regional jet and turboprop aircraft andrelated engines. AeroCentury intends to focus on new lines of business other than the aircraft leasing business going forward.
Forward-LookingStatements
Thispress release contains forward-looking statements within the meaning of the "safe harbor" provisions of the United States PrivateSecurities Litigation Reform Act of 1995. All statements in this press release other than statements that are purely historical are forward-lookingstatements. When used in this press release, the words "estimates," "projected," "expects," "anticipates,""forecasts," "plans," "intends," "believes," "seeks," "may," "will,""should," "future," "propose," and variations of these words or similar expressions (or the negative versionsof such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guaranteesfor future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other importantfactors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from thosediscussed in the forward-looking statements. Important factors, among others, are: the ability to manage growth; ability to identify andintegrate other future acquisitions; ability to obtain additional financing in the future to fund capital expenditures; fluctuations ingeneral economic and business conditions; costs or other factors adversely affecting the Company's profitability; litigation involvingpatents, intellectual property, and other matters; potential changes in the legislative and regulatory environment; a pandemic or epidemic.The forward-looking statements in this press release and the Company’s future results of operations are subject to additional risksand uncertainties set forth under the heading “Factors that May Affect Future Results and Liquidity” in documents filed bythe Company with the Securities and Exchange Commission, including the Company's quarterly reports on Form 10-Q and the Company’slatest annual report on Form 10-K, and are based on information available to the Company on the date hereof. In addition, such risks anduncertainties include the Company’s inability to predict or control bankruptcy proceedings and the uncertainties surrounding theability to generate cash proceeds through the sale or other monetization of the Company’s assets. The Company undertakes no obligationto update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as requiredby applicable law. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date ofthis press release.
AeroCentury Corp.
Condensed Consolidated Balance Sheets
(Unaudited)
| Successor | Predecessor | |||||||||||
| September 30, | September 29, | December 31, | ||||||||||
| 2021 | 2021 | 2020 | ||||||||||
| Assets: | ||||||||||||
| Cash and cash equivalents | $ | 10,625,600 | $ | 10,527,200 | $ | 2,408,700 | ||||||
| Accounts receivable | - | - | 256,600 | |||||||||
| Finance leases receivable, net | 450,000 | 450,000 | 2,547,000 | |||||||||
| Aircraft held for lease, net | - | - | 45,763,100 | |||||||||
| Property, equipment and furnishings, net | - | - | 14,900 | |||||||||
| Office lease right of use, net | - | - | 142,400 | |||||||||
| Deferred tax asset | - | - | 1,150,900 | |||||||||
| Taxes receivable | 1,234,500 | 1,234,500 | - | |||||||||
| Prepaid expenses and other assets | 1,884,400 | 1,884,400 | 255,300 | |||||||||
| Goodwill | 4,688,600 | - | - | |||||||||
| Assets held for sale | - | 31,149,300 | 40,838,900 | |||||||||
| Total assets | $ | 18,883,100 | $ | 45,245,400 | $ | 93,377,800 | ||||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||||||
| Liabilities: | ||||||||||||
| Accounts payable and accrued expenses | $ | 1,512,100 | $ | 1,513,700 | $ | 367,700 | ||||||
| Accrued payroll | 232,100 | 232,100 | 190,100 | |||||||||
| Notes payable and accrued interest, net | - | - | 88,793,200 | |||||||||
| Derivative termination liability | - | - | 3,075,300 | |||||||||
| Lease liability | - | - | 172,000 | |||||||||
| Maintenance reserves | - | - | 2,000,600 | |||||||||
| Accrued maintenance costs | - | - | 46,100 | |||||||||
| Security deposits | - | - | 716,000 | |||||||||
| Unearned revenues | - | - | 1,027,400 | |||||||||
| Income taxes payable | 19,600 | 19,600 | 900 | |||||||||
| Deferred tax liabilities | 114,500 | 114,500 | - | |||||||||
| Subscription fee advanced from the Plan Sponsor | - | 10,953,100 | - | |||||||||
| Liabilities held for sale | - | - | 14,604,800 | |||||||||
| Liabilities subject to compromise | - | 42,029,100 | - | |||||||||
| Total liabilities | 1,878,300 | 54,862,100 | 110,994,100 | |||||||||
| Commitments and contingencies (Note 8) | ||||||||||||
| Stockholders’ deficit: | ||||||||||||
| Preferred stock, $0.001 par value, 2,000,000 shares authorized, no shares issued and outstanding | - | - | - | |||||||||
| Common stock, $0.001 par value, 10,000,000 shares authorized, 4,416,811 and 1,545,884 shares outstanding at September 30, 2021 and December 31, 2020 | 4,700 | 1,800 | 1,800 | |||||||||
| Paid-in capital | 17,000,100 | 16,817,800 | 16,782,800 | |||||||||
| Accumulated deficit | - | (23,399,000 | ) | (31,361,600 | ) | |||||||
| Accumulated other comprehensive loss | - | - | (2,000 | ) | ||||||||
| 17,004,800 | (6,579,400 | ) | (14,579,000 | ) | ||||||||
| Treasury stock at cost, 0 and 213,332 shares at September 30, 2021 and December 31, 2020 | - | (3,037,300 | ) | (3,037,300 | ) | |||||||
| Total stockholders’ deficit | 17,004,800 | (9,616,700 | ) | (17,616,300 | ) | |||||||
| Total liabilities and stockholders’ deficit | $ | 18,883,100 | $ | 45,245,400 | $ | 93,377,800 | ||||||
AeroCentury Corp.
Condensed Consolidated Statements of Operations andComprehensive Income (Loss)
(Unaudited)
| Successor | Predecessor | |||||||||||
| September 30, 2021 | Period from July 1, 2021 through September 29, 2021 | Three months ended September 30,2020 | ||||||||||
| Revenues and other income: | ||||||||||||
| Operating lease revenue | $ | - | $ | 1,546,300 | $ | 3,249,100 | ||||||
| Maintenance reserves revenue, net | - | 65,100 | 221,400 | |||||||||
| Net gain on disposal of assets | - | - | 19,800 | |||||||||
| Other income | - | 500 | - | |||||||||
| - | 1,611,900 | 3,490,300 | ||||||||||
| Expenses: | ||||||||||||
| Impairment in value of aircraft | $ | - | - | 439,000 | ||||||||
| Interest | - | 1,500 | 3,020,100 | |||||||||
| Professional fees, general and administrative and other | - | 2,001,000 | 1,370,600 | |||||||||
| Depreciation | - | 10,200 | 1,342,100 | |||||||||
| Salaries and employee benefits | - | 448,800 | 498,800 | |||||||||
| Insurance | - | 197,500 | 191,400 | |||||||||
| Maintenance | - | 33,300 | 78,000 | |||||||||
| Other taxes | - | 25,600 | 26,500 | |||||||||
| Total operating expenses | - | 2,717,900 | 6,966,500 | |||||||||
| Reorganization gains, net | - | 28,691,100 | - | |||||||||
| Gain (loss) before income tax provision | - | 27,585,100 | (3,476,200 | ) | ||||||||
| Income tax provision | - | 76,900 | 604,900 | |||||||||
| Net income (loss) | $ | - | $ | 27,508,200 | $ | (4,081,100 | ) | |||||
| Earnings (Loss) per share: | ||||||||||||
| Basic | $ | - | $ | 17.79 | $ | (2.64 | ) | |||||
| Diluted | $ | - | $ | 17.79 | $ | (2.64 | ) | |||||
| Weighted average shares used in loss per share computations: | ||||||||||||
| Basic | 4,416,811 | 1,545,884 | 1,545,884 | |||||||||
| Diluted | 4,416,811 | 1,545,884 | 1,545,884 | |||||||||
| Net income (loss) | - | 27,508,200 | (4,081,100 | ) | ||||||||
| Other comprehensive income/(loss): | ||||||||||||
| Unrealized losses on derivative instruments | - | - | - | |||||||||
| Reclassification of net unrealized losses on derivative instruments to interest expense | - | - | 149,100 | |||||||||
| Tax expense related to items of other comprehensive loss | - | - | (32,400 | ) | ||||||||
| Other comprehensive income | - | - | 116,700 | |||||||||
| Total comprehensive loss | $ | - | $ | 27,508,200 | $ | (3,964,400 | ) | |||||