Avantair, Inc

CIK:0001303849|SEC Filings

Operations and Management's Plans (Tables)

9 Months Ended

Mar. 31, 2013

Operations and Management's Plans [Abstract]


	Unit Sales for the Three Months Ended				Unit Sales for the Nine Months Ended
	March 31, 2013		March 31, 2012		March 31, 2013		March 31, 2012

New Fractional Ownership program shares sold		10		6.5		10		8.5
Axis Lease program shares leased		—		11.5		25		54
Axis Club Memberships ⁽¹⁾		—		—		—		1
Flight hour cards		74		81		198		271

⁽¹⁾	Replaced by Axis Lease program in March 2011.

Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (10,504)	$ (4,318)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	3,679	3,173
Amortization of deferred interest related to capital lease obligation		109
Capitalized interest		35
Gain on receipt of used share	(254)
Gain on debt extinguishment		(439)
Accretion of discount on indebtedness	189
Change in fair value of derivative liabilities	1,232
Goodwill impairment	1,141
Loss on sale of assets, net of gain	417	(624)
Stock-based compensation	470	534
Bad debt expense	503	559
Other	30
Changes in operating assets and liabilities:
Accounts receivable	(356)	1,329
Inventory	325	56
Aircraft costs related to fractional share sales	7,295	18,892
Prepaid expenses and other current assets	19	505
Cash-restricted	211	136
Deposits on aircraft	(148)	914
Other assets	628	(2,844)
Accounts payable	3,344	2,863
Accrued liabilities	3,429	5,722
Customer deposits	49	1,342
Deferred revenue related to fractional aircraft share sales	(8,000)	(18,387)
Unearned management fee, flight hour card and club membership revenue	(10,789)	(884)
Other liabilities	590	(40)
Net cash (used in) provided by operating activities	(6,500)	8,633
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of asset		628
Capital expenditures	(1,645)	(3,110)
Net cash used in investing activities	(1,645)	(2,482)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under long-term debt		2,000
Proceeds from issuance of senior secured convertible promissory notes	7,732
Dividends paid		(1,026)
Principal payments on short-term debt	(250)	(500)
Principal payments on long-term debt	(2,222)	(5,122)
Net cash provided by (used in) financing activities	5,260	(4,648)
Net (decrease) increase in cash and cash equivalents	(2,885)	1,503
Cash and cash equivalents, beginning of the period	5,302	5,643
Cash and cash equivalents, end of the period	2,417	7,146
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid	3,336	3,377
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING AND INVESTING ACTIVITIES:
Accretion of Series A convertible preferred stock	68	68
Dividends accrued on Series A convertible preferred stock	1,065	342
Common shares surrendered in lieu of payroll taxes		15
Aircraft acquired through capital lease	4,770	6,100
Shares acquired in exchange for fractional lease	754
Shares acquired in noncash, reciprocal transfer	1,348
Shares acquired in noncash, non-reciprocal transfer	180
Warrants/restricted stock/convertible senior promissory note issued in connection with capital/operating leases	5,960
Additional aircraft cost in connection with modification of capital lease	151
Conversion of short-term note payable to capital lease		5,200
Conversion of short-term note payable to operating lease	5,750
Flight hour cards issued in consideration for repurchase of fractional aircraft shares		119
Short-term notes payable repayment upon completion of aircraft delivery rights transfer		$ 1,300

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Jun. 30, 2012
Current Assets
Cash and cash equivalents	$ 2,417	$ 5,302
Accounts receivable, net of allowance of $1,515 and $1,340, respectively	9,458	11,707
Inventory	82	155
Current portion of aircraft costs related to fractional share sales	2,458	8,458
Prepaid expenses and other current assets	5,630	3,830
Total current assets	20,045	29,452
Long-Term Assets
Aircraft costs related to fractional share sales, net of current portion	396	1,691
Property and equipment, net	38,838	40,136
Cash-restricted	2,015	2,226
Deposits on aircraft	7,341	7,193
Goodwill		1,141
Other assets	9,617	9,443
Total long-term assets	58,207	61,830
Total assets	78,252	91,282
Current Liabilities
Accounts payable	11,447	9,051
Accrued liabilities	9,815	6,393
Customer deposits	3,164	3,115
Short-term debt	6,853	12,000
Current portion of long-term debt	7,657	4,652
Current portion of deferred revenue related to fractional aircraft share sales	3,248	9,995
Unearned management fee, flight hour card and membership revenue	49,433	60,015
Total current liabilities	91,617	105,221
Long-Term Liabilities
Long-term debt, net of current portion	12,614	13,753
Senior secured convertible promissory notes	3,367
Derivative liabilities	8,164
Deferred revenue related to fractional aircraft share sales, net of current portion	6,603	8,179
Deferred revenue related to membership revenue, net of current portion	6	213
Other liabilities	2,741	2,465
Total long-term liabilities	33,495	24,610
Total liabilities	125,112	129,831
COMMITMENTS AND CONTINGENCIES
Series A convertible preferred stock, $.0001 par value, authorized 300,000 shares 152,000 share issued and outstanding	14,867	14,799
STOCKHOLDERS' DEFICIT
Preferred stock, $.0001 par value, authorized 700,000 shares; none issued or outstanding
Common stock, Class A, $.0001 par value, 75,000,000 shares authorized, 40,901,634 and 26,497,468 shares issued and outstanding as of March 31, 2013 and June 30, 2012, respectively	4	3
Additional paid-in capital	61,019	57,830
Accumulated deficit	(122,750)	(111,181)
Total stockholders' deficit	(61,727)	(53,348)
Total liabilities and stockholders' deficit	$ 78,252	$ 91,282