Form 1-A ASI Aviation, Inc.

May 18, 2022 1:13 PM EDT

Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.

  
    1-A
    
      LIVE
      
        
          0001669368
          XXXXXXXX
        
      
      
        true
      
    
  
  
    
      ASI Aviation, Inc.
      NV
      2015
      0001669368
      6799
      81-1014003
      2
      2
    
    
      11921 FREEDOM DRIVE
      SUITE 550
      RESTON
      VA
      20190-5667
      703-904-4315
      Louis A. Bevilacqua, Esq.,
      Other
      6001.00
      0.00
      5000.00
      0.00
      12999.00
      79537.00
      10000.00
      89537.00
      -76538.00
      12999.00
      0.00
      0.00
      0.00
      -84330.00
      -0.01
      -0.01
      Friedman LLP
    
    
      Common Stock
      10467350
      000000000
      N/A
    
    
      None
      0
      000000000
      N/A
    
    
      None
      0
      000000000
      N/A
    
    
      true
    
    
      true
    
    
      Tier2
      Audited
      Equity (common or preferred stock)
      Y
      Y
      N
      Y
      N
      N
      5000000
      10467350
      1.0000
      5000000.00
      0.00
      0.00
      0.00
      5000000.00
      Friedman LLP
      10000.00
      Bevilacqua PLLC
      15000.00
      Bevilacqua PLLC
      2500.00
      4967500.00
      Up to $500,000 may be paid in commissions if the maximum amount is sold and a registered broker-dealer is engaged as a placement agent. The Issuer will amend this Form 1-A to reflect the engagement of, and the fees payable to, any such broker-dealer.
    
    
      true
      AL
      AK
      AZ
      AR
      CA
      CO
      CT
      DE
      FL
      GA
      HI
      ID
      IL
      IN
      IA
      KS
      KY
      LA
      ME
      MD
      MA
      MI
      MN
      MS
      MO
      MT
      NE
      NV
      NH
      NJ
      NM
      NY
      NC
      ND
      OH
      OK
      OR
      PA
      RI
      SC
      SD
      TN
      TX
      UT
      VT
      VA
      WA
      WV
      WI
      WY
      DC
      PR
      A0
      A1
      A2
      A3
      A4
      A5
      A6
      A7
      A8
      A9
      B0
      Z4
      AL
      AK
      AZ
      AR
      CA
      CO
      CT
      DE
      FL
      GA
      HI
      ID
      IL
      IN
      IA
      KS
      KY
      LA
      ME
      MD
      MA
      MI
      MN
      MS
      MO
      MT
      NE
      NV
      NH
      NJ
      NM
      NY
      NC
      ND
      OH
      OK
      OR
      PA
      RI
      SC
      SD
      TN
      TX
      UT
      VT
      VA
      WA
      WV
      WI
      WY
      DC
      PR
      A0
      A1
      A2
      A3
      A4
      A5
      A6
      A7
      A8
      A9
      B0
      Z4
    
    
      ASI Aviation, Inc.
      Common Stock
      100000
      0
      $100,000
    
    
      4(a)(2)
    
  



 

Preliminary Offering Circular, Dated May 18, 2022

 

AN OFFERING STATEMENT PURSUANT TO REGULATION A RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. INFORMATION CONTAINED IN THIS PRELIMINARY OFFERING CIRCULAR IS SUBJECT TO COMPLETION OR AMENDMENT. THESE SECURITIES MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED BEFORE THE OFFERING STATEMENT FILED WITH THE COMMISSION IS QUALIFIED. THIS PRELIMINARY OFFERING CIRCULAR SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR MAY THERE BE ANY SALES OF THESE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL BEFORE REGISTRATION OR QUALIFICATION UNDER THE LAWS OF ANY SUCH STATE. WE MAY ELECT TO SATISFY OUR OBLIGATION TO DELIVER A FINAL OFFERING CIRCULAR BY SENDING YOU A NOTICE WITHIN TWO BUSINESS DAYS AFTER THE COMPLETION OF OUR SALE TO YOU THAT CONTAINS THE URL WHERE THE OFFERING CIRCULAR WAS FILED MAY BE OBTAINED.

 

ASI Aviation, Inc.

 

11921 Freedom Drive, Suite 550

Reston, VA 20190-5667

(703) 904-4315; www.asi-aviation.com

 

Best Efforts Offering of 10,000,000 Shares of Common Stock, including up to 5,000,000 bonus shares.

 

We are offering a maximum of 10,000,000 shares of common stock, of which 5,000,000 shares will be sold at a fixed price of $1.00 per share and up to 5,000,000 shares will be offered as bonus shares for no additional payment to certain qualified investors, in a “Tier 2 Offering” pursuant to Regulation A under Section 3(6) of the Securities Act of 1933, as amended, or the Securities Act, for Tier 2 offerings which we refer to as the offering. This offering is being conducted on a self-underwritten, “best efforts” basis with no minimum requirement and thus no escrow account. See “Plan of Distribution” and “Securities Being Offered” for a description of our common stock.

 

The offering will terminate on the earlier of: (i) the date at which the maximum offering amount has been sold; (ii) [ ], 2023; or (iii) the date at which the offering is earlier terminated by the company in its sole discretion. The company may undertake one or more closings on a rolling basis. After each closing, funds tendered by investors will be available to the company.

 

Our common stock is listed on the Pink tier operated by OTC Markets Group, Inc. under the symbol “ASAV.” We cannot assure you that an active market for our common stock will ever develop.

 

We are an “emerging growth company” as defined in the Jumpstart Our Business Startups Act, or the JOBS Act, and, as such, may elect to comply with certain reduced reporting requirements for this Offering Circular and certain future filings after this offering.

 

   Price to Public (1)   Underwriting discount and commissions   Proceeds to Issuer (2)   Proceeds to other persons 
Per share  $1.00   $0.10   $0.90   $0.00 
Total Minimum  $0.00   $0.00   $0.00   $0.00 
Total Maximum  $5,000,000   $500,000.00   $4,500,000   $0.00 

 

  (1) Does not include any effective discounts to the price per share due to the inclusion of “bonus shares” in this offering to qualified investors. See the “Plan of Distribution” section of this Offering Circular for a more detailed description of the bonus share allocation.
     
  (2) The Issuer will bear all legal, accounting and other expenses related to this offering, which are expected to total at least $32,500. The Issuer may pay up to a 10% commission to one or more broker-dealers registered with the SEC who may be engaged in the future to assist in the distribution of the offering. To this date, the Company has not engaged any broker-dealer.

 

The purchase of the securities offered through this Offering Circular involves a high degree of risk. You should carefully read the entire Offering Circular, including the section entitled “Risk Factors” beginning on page 5 before buying any common stock.

 

THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION DOES NOT PASS UPON THE MERITS OF OR GIVE ITS APPROVAL TO ANY SECURITIES OFFERED OR THE TERMS OF THE OFFERING, NOR DOES IT PASS UPON THE ACCURACY OR COMPLETENESS OF ANY OFFERING CIRCULAR OR OTHER SOLICITATION MATERIALS. THESE SECURITIES ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE COMMISSION; HOWEVER, THE COMMISSION HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE SECURITIES OFFERED ARE EXEMPT FROM REGISTRATION.

 

GENERALLY, NO SALE MAY BE MADE TO YOU IN THIS OFFERING IF THE AGGREGATE PURCHASE PRICE YOU PAY IS MORE THAN 10% OF THE GREATER OF YOUR ANNUAL INCOME OR NET WORTH. DIFFERENT RULES APPLY TO ACCREDITED INVESTORS AND NON-NATURAL PERSONS. BEFORE MAKING ANY REPRESENTATION THAT YOUR INVESTMENT DOES NOT EXCEED APPLICABLE THRESHOLDS, WE ENCOURAGE YOU TO REVIEW RULE 251(D)(2)(I)(C) OF REGULATION A. FOR GENERAL INFORMATION ON INVESTING, WE ENCOURAGE YOU TO REFER TO WWW.INVESTOR.GOV.

 

The Company is herein following the offering circular format described in Part II (a)(1)(ii) of Form 1-A.

 

The approximate date of commencement of proposed sale to the public under this amended Offering Circular is [  ], 2022.

 

 

 

 

TABLE OF CONTENTS

 

  Page
   
Summary 1
   
Risk Factors 5
   
Special Note Regarding Forward-Looking Statements 16
   
Dilution 17
   
Plan of Distribution 18
   
Use of Proceeds 22
   
Our Business 23
   
Management’s Discussion and Analysis of Financial Condition and Results of Operations 28
   
Directors, Executive Officers and Significant Employees 35
   
Compensation of Directors and Executive Officers 37
   
Security Ownership of Management and Certain Securityholders 39
   
Interest of Management and Others in Certain Transactions 39
   
Securities Being Offered 41
   
Legal Matters 43
   
Experts 43
   
Where You Can Find More Information 43

 

We have not authorized anyone to provide any information other than that contained or incorporated by reference in this Offering Circular prepared by us or to which we have referred you. We do not take responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. This Offering Circular is an offer to sell only the common stock offered hereby but only under circumstances and in jurisdictions where it is lawful to do so. The information contained in this Offering Circular is current only as of its date, regardless of the time of delivery of this Offering Circular or any sale of common stock.

 

For investors outside the United States: We have not done anything that would permit this offering or possession or distribution of this Offering Circular in any jurisdiction where action for that purpose is required, other than the United States. You are required to inform yourselves about and to observe any restrictions relating to this offering and the distribution of this Offering Circular.

 

Certain industry data and market data included in this Offering Circular were obtained from independent third-party surveys, market research, publicly available information, reports of governmental agencies and industry publications and surveys. Our estimates presented herein are based upon our review of independent third-party surveys and industry publications prepared by a number of sources and other publicly available information. The market data used in this Offering Circular involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. We believe that the information from these industry publications and surveys that is included in this Offering Circular is reliable. The industry in which we operate is subject to risks due to a variety of important factors, including those described in “Risk Factors.” These and other factors could cause results to differ materially from those expressed in the estimates made by the independent parties and by us.

 

i

 

 

SUMMARY

 

This summary highlights information contained elsewhere in this Offering Circular. This summary does not contain all of the information that you should consider before deciding whether to invest in our common stock. You should carefully read this entire Offering Circular, including the “Risk Factors” section, our historical financial statements and the notes thereto, each included elsewhere in this Offering Circular, before making an investment decision. Some of the statements in this Offering Circular are forward-looking statements. See the section entitled “Special Note Regarding Forward-Looking Statements.” Unless the context requires otherwise, references in this Offering Circular to “the Company,” “we,” “us” and “our” refer to ASI Aviation, Inc., a Nevada corporation.

 

Our Company

 

Overview

 

The Company was incorporated under the laws of the State of Nevada on December 29, 2015. We are a developmental stage company principally involved in the business of developing our aircraft, aircraft engines and aircraft spare parts leasing and sales operations, and aviation consultancy services. We also may develop our business through the acquisition of aircraft related assets, such as aircraft engines and spare parts inventories, or synergistic businesses operating in the general aviation industry. For the six-month periods ended September 30, 2021 and 2020 and the fiscal years ended March 31, 2021 (“FY 21”) and 2020 (“FY 20”), we did not generate any revenues. We had a stockholder’s deficit of $76,538 at September 30, 2021.

 

We plan to provide the following services:

 

  Aircraft, aircraft engines and aircraft spare parts leasing and sales, and related support functions
     
  Aviation consultancy
     
  On-site maintenance and operational support
     
  Aircraft charter and ferry services

 

We expect to generate future revenue from our aircraft, aircraft engines and aircraft spare parts leasing and sales business and aviation consultancy services. Our management has developed relationships with existing air carriers and companies operating government contracts with the U.S. Department of Defense, U.S. Marshals Service and the Department of Homeland Security. The Company hopes to be able to harness those relationships its team has already cultivated in order for our aviation consultancy services to succeed. The Company believes it has developed a capability and strategy in the leasing and buying of aircraft to support businesses that have commercial or government contracts requiring dry (aircraft only) or wet (aircraft with crew, maintenance services and insurance) aircraft lease operations.

 

The Impact of the COVID-19 Coronavirus Pandemic

 

Before the global COVID-19 pandemic hit, the aviation industry had anticipated high passenger volume and aircraft fleet growth over the next decade. However, with the arrival and spread of the COVID-19 pandemic in 2019 and more recently, the aviation industry suddenly faced a new environment in which operating fleet capacities were drastically reduced and passenger demand declined precipitously. Since mid-2021, however, after the world-wide introduction of COVID-19 vaccines, the COVID-19 pandemic, with its multiple variants, seems to be receding with the virus and its variants becoming endemic rather than pandemic and the aircraft and airline industries beginning to make a recovery. We believe that strong passenger confidence in travel is quickly returning. However, volatile economic conditions among many countries, relating to some extent to the outbreak of war between Russia and Ukraine will impact, we expect, the total number of passengers travelling, in both the domestic and international segments. As a result of this, we believe the passenger numbers will reach pre-pandemic levels at a slower rate, perhaps within 12 to 24 months.

 

- 1 -

 

 

The Market

 

Prior to the onset of the COVID-19 pandemic, the demand for new aircrafts was driven by the global demand for additional passenger and cargo capacity. This demand was closely tied to the GDP of both developed and emerging markets. In order to support this growth, the market for aircraft operating leases, and thus aircraft lessors, was becoming an increasingly important part of the aviation industry. According to Boeing’s report titled “Commercial Market Outlook 2021 to 2040,” aircraft leasing is again expected to grow in both size and importance. In this report, Boeing has estimated that the number of commercial aircraft will increase from 22,510 planes in 2015 to more than 49,405 by 2040. Now, that the COVID-19 pandemic is ending, it appears, based on ongoing and historical industry projections, that in the coming years the aviation industry will return to its historical growth patterns.

 

Our Growth Strategy

 

We plan to become a leading service provider in the aviation industry, despite the impact of the coronavirus pandemic, by pursuing the following objectives:

 

  Core Aviation Business Development: We plan to build out our core business of aviation consultancy services; aircraft, aircraft engine and spare parts sales and leasing; and onsite maintenance and operational support. We also expect to develop capabilities in the aircraft charter and ferry service businesses.
     
  Government Contracts: We plan to bid on various federal and state contracts for aviation services as a small business. There are opportunities set aside annually for small businesses by the U.S. federal government and by state governments. The Company would be positioned as one of only several smaller businesses in this industry, and thus would have a real chance of winning contracts as a result of its size and industry experience. We can give no assurances, of course, that we would be successful in bidding for any of these contracts.
     
  International Opportunities: We plan to explore opportunities to do business in the Middle East, South Asia, Africa, and Eastern Europe.
     
  Asset Acquisitions: We may develop our business capabilities through the acquisition of aircraft related assets such as aircraft engines and spare parts inventories, either individually or through the acquisition of all or substantially all of the assets or businesses of one or more synergistic companies operating in the aviation industry, although we do not have any potential acquisitions identified at this time.
     
    For a more detailed discussion of our business and growth strategy, please refer to the section below entitled “Business Overview.”

 

Our Corporate History and Structure

 

We were incorporated under the laws of the State of Nevada on December 29, 2015. The fiscal year-end of the Company is March 31. The Company is a development stage company focused on developing our aviation consultancy services and an aircraft and aircraft spare parts sales and leasing business. The Company is also exploring potential acquisitions of aircraft related assets such as aircraft engines and spare parts inventories or synergistic businesses operating in the aviation industry. The Company had been pursuing one potential acquisition, which is referenced it the notes to its audited financial statements below, however, it was not able to consummate that transaction due to lack of sufficient capital. Historically, we generated revenues through the provision of IT business development consulting services on a contractual basis to private companies operating in the federal government sector. We provided these services to one company prior to our fiscal year ended March 31, 2019 and we have not provided these services since that time.

 

Corporate Information

 

Our principal office is located at 11921 Freedom Drive, Suite 550, Reston, VA 20190-5667. Our telephone number is (703) 904-4315. We maintain a website at www.asi-aviation.com. Information available on our website is not incorporated by reference in and is not deemed a part of this Offering Circular.

 

- 2 -

 

 

The Offering

 

Securities Being Offered by the Company   5,000,000 shares of common stock on a self-underwritten, “best efforts” basis without a minimum offering amount, plus up to 5,000,000 bonus shares to be offered to qualified investors.
     
Offering Price per Share   $1.00 per share.
     
Maximum Number of Shares Offered by Us   5,000,000 shares of common stock ($5,000,000).
     
     
Minimum Investment Amount   The minimum investment amount per investor is $100 (100 shares of common stock).
     
Number of Shares Currently Outstanding   10,467,350 shares of common stock as of the date of this Offering Circular. Dr. B.B. Sahay owns 9,000,000 shares of the issued and outstanding common stock of the company.
     
Number of Shares Outstanding After the Offering if All the Shares Being Offered are Sold   A total of 20,467,350 shares of common stock will be issued and outstanding after this offering is completed, including 5,000,000 bonus shares, if all the shares being offered are sold.
     
U.S. Trading   Our common stock is listed for trading on the OTC market’s Pink tier under the symbol “ASAV.” We have engaged Glendale Securities, Inc., a Securities and Exchange Commission registered and FINRA member broker-dealer, as our market maker. There can be no assurance, however, that an active trading market will ever develop for our common stock.
     
Risk Factors   Investing in our common stock involves risks. See the section entitled “Risk Factors” in this Offering Circular and other information included in this Offering Circular for a discussion of factors you should carefully consider before deciding to invest in our common stock.
     
Offering Costs   We estimate our total offering costs to be at least $32,500. We may pay up to a maximum of 10% aggregated commissions that to lead underwriter that may be engaged by us in the future and to broker dealers who may choose to assist such lead underwriter. If we experience a shortage of funds prior to funding, our director has verbally agreed to advance funds to the Company to allow us to pay for the offering costs, filing fees, and correspondence with our shareholders; however, our director has no legal obligation to advance or loan funds to the Company.
     
Use of Proceeds   We intend to use the net proceeds of this offering to advance the development of our core business including the acquisition of facilities, furnishings and equipment, the acquisition of aircraft related assets such as spare parts inventories, engines and aircraft, or synergistic aviation related businesses, other capital expenditures, sales and marketing, the payment of executive compensation and the hiring of critical personnel, and working capital and general corporate purposes. For a more detailed discussion, please refer to the section entitled “Use of Proceeds.”

 

- 3 -

 

 

 

Termination of the Offering   The offering will terminate on the earlier of: (i) the date at which the maximum offering amount has been sold; (ii) [ ], 2023; or (iii) the date at which the offering is earlier terminated by the company in its sole discretion. The company may undertake one or more closings on a rolling basis. After each closing, funds tendered by investors will be available to the company.

 

Summary Risk Factors

 

We and our business are subject to a number of risk factors which are detailed more fully in “Risk Factors.” Risks include, but are not limited to, the following:

 

  we have not generated any revenues from our core aviation business operations, which makes it difficult for us to evaluate our future business prospects and make decisions based on those estimates of our future performance;
     
  we will be subject to penny stock regulations and restrictions and you may have difficulty selling shares of our common stock;
     
  our auditor has issued a going concern opinion;
     
  our Certificate of Incorporation and Bylaws limit the liability of, and provide indemnification for, our officers and directors;
     
  we are dependent on the sale of our securities to fund our operations;
     
  future acquisitions may expose us to numerous risks, unexpected expenses and may be difficult to effectively integrate;
     
   ● the impact of the COVID-19 coronavirus pandemic and other changes in general economic and demographic conditions as they may cause our business to fail.
     
  the number of aircraft in service in our markets, including consolidation of the airline industry or changes in fleet size by one or more of our commercial airline partners;
     
  the economic environment and other trends that affect both business and leisure travel;
     
  the aviation industry is subject to heavy government regulation;
     
  no public trading market exists for our securities;
     
  we are development stage company in the early stages of operations;
     
  our business is susceptible to liability claims related to personal injury or death;
     
  we may not be able to operate and grow our business effectively if we lose the services of any of our key personnel or are unable to attract qualified personnel in the future; and
     
  our growth strategy will require significant additional financial resources, which may not be available to us on acceptable terms.

 

- 4 -

 

 

RISK FACTORS

 

Investing in our common stock involves a high degree of risk. You should carefully consider each of the following risks, together with all other information set forth in this Offering Circular, including the financial statements and the related notes, before making a decision to buy our common stock. If any of the following risks actually occurs, our business could be harmed. In that case, the trading price of our common stock could decline, and you may lose all or part of your investment.

 

Risks Related to Our Business

 

The COVID-19 pandemic has had, and we expect will continue to have, certain negative impacts on our industry, and such impacts may have a material adverse effect on our future results of operations, financial condition, cash flows and stock price.

 

On January 30, 2020, the World Health Organization declared the COVID-19, or the coronavirus, outbreak in China a public health emergency of international concern. In recent months, the coronavirus pandemic has spread throughout the world. Given the high public health risks associated with the disease, governments around the world have imposed various degrees of travel and gathering restrictions and other quarantine measures. The coronavirus outbreak is currently having an indeterminable adverse impact on the global economy.

 

The coronavirus has a particular adverse impact on the international airline industry. The outbreak in China and throughout the world since December 2019 has led to a precipitous decrease in the number of daily departures and arrivals for domestic and international flights. According to the International Air Transport Association (IATA) Airlines Financial Monitor dated April – May 2020, air passenger demand posted its largest decline on record in April 2020 due to the widespread lockdowns and border closures and the passenger load factor declined by 41% versus last year. As a result in this drastic drop in passenger demand, operating airline fleet capacities have been drastically reduced as most, if not all, commercial airlines have grounded considerable portions of their fleets.

 

As a pre-revenue, development stage company, the ongoing COVID-19 pandemic has not materially adversely affected our financial condition or results of operations through our six months ended September 30, 2021 However, the ongoing and continuing effects of the COVID-19 pandemic could make it extremely difficult for us to develop our business in the future, and, in particular, it may hamper or our ability or prevent us from completing any acquisitions and our ability to raise additional capital under this Regulation A offering. The extent to which COVID-19 may adversely impact our planned business depends on future developments, the severity and duration of the pandemic and the effectiveness of actions taken globally to contain or mitigate its effects, all of which are highly uncertain and unpredictable.

 

Given the uncertainty of the outbreak, the spread of the coronavirus may be prolonged and worsened. If this outbreak persists, commercial activities throughout the world could be curtailed with decreased consumer spending, business operation disruptions, interrupted supply chain, difficulties in travel, and reduced workforces. The duration and intensity of disruptions resulting from the epidemic is uncertain. It is unclear as to when the outbreak will be contained, and we also cannot predict if the impact will be short-lived or long-lasting. The extent to which the coronavirus impacts our operations and financial results will depend on its future developments. If the coronavirus outbreak is not effectively controlled in a short period of time, our business operation, financial condition and stock price may be materially and adversely affected as a result of a slowdown in economic growth, a contraction in the airline sector, depressed customer demand, operation disruptions or other factors that we cannot foresee.

 

Our company is in the development stage and has a limited operating history, which may make it difficult to evaluate our current business and predict our future performance.

 

Our company is in the development stage and faces all of the risks and uncertainties associated with a new and unproven business. The limited operating history of our business may make it difficult to accurately evaluate the business and predict its future performance. Any assessments of our current business and predictions that we or you make about our future success or viability may not be as accurate as they could be if we had a longer operating history. We have encountered and will continue to encounter risks and difficulties frequently experienced by growing companies in rapidly changing industries, and the size and nature of our market opportunity will change as we scale our business and increase deployment of our service. If we do not address any of the foregoing risks successfully, our business will be harmed.

 

Our having generated no revenues from our core business operations makes it difficult for us to evaluate our future business prospects and make decisions based on those estimates of our future performance.

 

For the fiscal years ended March 31, 2021 and 2020 and for the six-month periods ended September 30, 2021 and 20, we did not generate any revenues and, as of September 30, 2021, we had a stockholder’s deficit of $76,538. As a consequence, it is difficult, if not impossible, to forecast our future results based upon our historical data. Because of the related uncertainties, we may be hindered in our ability to anticipate and timely adapt to increases or decreases in revenues and expenses. If we make poor budgetary decisions as a result of unreliable data, we may never become profitable or incur losses, which may result in a decline in our stock price.

 

- 5 -

 

 

Our auditor has indicated in its report that there is substantial doubt about our ability to continue as a going concern as a result of our lack of revenues and if we are unable to generate significant revenue or secure financing we may be required to cease or curtail our operations.

 

Our auditor has indicated in its report that our lack of revenues raises substantial doubt about our ability to continue as a going concern. The financial statements do not include adjustments that might result from the outcome of this uncertainty. If we are unable to generate significant revenue or secure financing we may be required to cease or curtail our operations.

 

Our Certificate of Incorporation and Bylaws limit the liability of, and provide indemnification for, our officers and directors.

 

Our Certificate of Incorporation, generally limits our officers’ and directors’ personal liability to the Company and its stockholders for breach of fiduciary duty as an officer or director except for breach of the duty of loyalty or acts or omissions not made in good faith or which involve intentional misconduct or a knowing violation of law. Our Certificate of Incorporation and Bylaws, provide indemnification for our officers and directors to the fullest extent authorized by the Nevada Corporations Code against all expense, liability, and loss, including attorney’s fees, judgments, fines excise taxes or penalties and amounts to be paid in settlement reasonably incurred or suffered by an officer or director in connection with any action, suit or proceeding, whether civil or criminal, administrative or investigative to which the officer or director is made a party or is threatened to be made a party, or in which the officer or director is involved by reason of the fact that he is or was an officer or director of the Company, or is or was serving at the request of the Company whether the basis of the action, suit or proceeding, whether civil or criminal, administrative or investigative is an alleged action in an official capacity as an officer or director, or in any other capacity while serving as an officer or director. Thus, the Company may be prevented from recovering damages for certain alleged errors or omissions by the officers and directors for liabilities incurred in connection with their good faith acts for the Company. Such an indemnification payment might deplete the Company’s assets. Stockholders who have questions regarding the fiduciary obligations of the officers and directors of the Company should consult with independent legal counsel. It is the position of the SEC that exculpation from and indemnification for liabilities arising under the Securities Act and the rules and regulations thereunder is against public policy and therefore unenforceable.

 

We are dependent on the sale of our securities to fund our operations.

 

We are dependent on the sale of our securities to fund our operations and will remain so until we generate sufficient revenues to pay for our operating costs. Our officers and directors have made no written commitments with respect to providing a source of liquidity in the form of cash advances, loans and/or financial guarantees. There can be no guarantee that we will be able to successfully sell our equity or debt securities.

 

There is no minimum dollar amount that the Company must raise in this offering, thus investors purchasing our securities might own stock of a company that has insufficient funding to conduct planned operations.

 

In order to implement the Company’s plan of operations for the next twelve (12) month period, we require a minimum of $500,000 of funding from this offering. We anticipate that after the initial twelve (12) month period we may need additional financing. If the Company is unable to successfully find clients, we may quickly use up the proceeds from this offering and will need to find alternative sources of operating capital. If we need additional cash and cannot raise it on acceptable terms, we will either have to suspend operations until we do raise the cash or cease operations entirely.

 

Expenses required to operate as a public company will reduce funds available to develop our business and could negatively affect our stock price and adversely affect our results of operations, cash flow and financial condition.

 

Operating as a public company is more expensive than operating as a private company, including additional funds required to obtain outside assistance from legal, accounting, investor relations, or other professionals that result in more expenses than originally estimated. We may also be required to hire additional staff to comply with additional SEC reporting requirements. We anticipate that the cost of SEC reporting will be at least $50,000 annually. Our failure to comply with reporting requirements and other provisions of securities laws could negatively affect our stock price and adversely affect our results of operations, cash flow and financial condition. If we fail to meet these requirements, we will be unable to secure a qualification for quotation of our securities on the OTC Market, or, if we have secured a qualification, we may lose the qualification and our securities would no longer trade on the OTC Market. Further, if we fail to meet these obligations and consequently fail to satisfy our SEC reporting obligations, investors will then own stock in a company that does not provide the disclosure available in quarterly, annual reports and other required SEC reports that would be otherwise publicly available making it increasingly difficult to sell their stock.

 

- 6 -

 

 

The airline industry faces specific problems that may adversely affect our financial performance.

 

Problems in the airline industry could adversely affect our business. Since our customers will consist primarily of passenger and cargo air carriers and aircraft leasing companies, the threat of terrorist activities continues to adversely impact the airline industry and consequently may adversely impact our business. However, it does affect our business to a much lesser extent than it affects other firms that rely heavily on major airlines for business. When economic factors adversely affect the airline industry, they tend to reduce the overall demand for maintenance, repair, and leasing services, causing downward pressure on pricing and increasing the credit risks associated with doing business with airlines. We cannot assure you that economic and other factors, which may affect the airline industry, will not adversely impact our business, financial condition or results of operations. Such adverse effects in the airline industry, can also adversely affect our aircraft parts sales business. Any event or occurrence that adversely impacts the aircraft maintenance industry will also adversely impact the aircraft parts sales industry because aircraft parts sales are directly related to the demand for maintenance of aircraft.

 

The continued threat of terrorist actions may result in less demand for public and private aviation and, as a result, our revenue may be adversely affected and we may not be able to continue successful operations.

 

Terrorist actions involving public and private aircraft may have a significant adverse impact on us. As a result of these actions, individuals and corporate customers may cease using private or public aircraft as a means of transportation or reduce their use of such aircraft, or we could become subject to burdensome regulations that would have an adverse effect on our results of operations. In either event, we may be unable to generate sales and may be unable to build any viable operations.

 

Our business is susceptible to liability claims.

 

Our business will expose us to possible claims for personal injury or death which may result if we were negligent in providing faulty parts to an airplane or repairing an airplane. We cannot assure you that claims will not arise in the future or that our insurance coverage will be adequate to protect us in all circumstances. Additionally, we cannot assure you that we will be able to maintain adequate insurance coverages in the future at an acceptable cost. Any possible liability claims not covered by adequate insurance could materially adversely affect our business, financial condition or results of operations.

 

The aviation industry is subject to heavy government regulation.

 

The aviation industry is highly regulated by the Federal Aviation Administration, or FAA, in the United States and by similar agencies in other countries. We may be required to become certified by the FAA, and in some cases authorized by the original equipment manufacturers, in order to repair aircraft components and to perform maintenance and repair services on aircraft. Commercial jets, like any other complex vehicles, require periodic maintenance to allow for their safe and economical operation. Unlike many vehicles, the repair and modification of such aircraft is highly regulated by the various aviation authorities in each country of operation around the world.

 

We may be subject to fines and disqualification for non-compliance with Federal Aviation Administration regulations.

 

We will be subject to regulation by the FAA under the provisions of the Federal Aviation Act of 1958, as amended. The FAA prescribes standards and licensing requirements for aircraft and aircraft components. We are subject to inspections by the FAA and may be subjected to fines and other penalties for noncompliance with FAA regulations. Our failure to comply with applicable regulations could result in the termination of or our disqualification from some of our potential contracts, which could have a material adverse effect on our operations.

 

From time to time, the aircraft industry may experience periods of oversupply during which lease rates and aircraft values may decline, and any future oversupply could materially adversely affect our sales and leasing business, financial condition or results of operations.

 

In the past, the business of leasing, financing and selling aircraft has experienced prolonged periods of equipment shortages and oversupply of aircraft. The oversupply of a specific type of aircraft typically depresses the lease rates for, and the value of, that type of aircraft. An increase in the global supply of aircraft without a commensurate increase in passenger air travel demand may have a material adverse effect on lease renewal rates and the value of our assets. The supply and demand for aircraft may be materially adversely affected by various cyclical and non-cyclical factors that are outside of our control, including:

 

- 7 -

 

 

  passenger air travel demand;
     
  increased supply due to the sale of aircraft portfolios;
     
  governmental regulation;
     
  interest rates;
     
  the cost and availability of credit;
     
  cancellations of orders for aircraft;
     
  delays in delivery by manufacturers; or
     
  manufacturer production levels and technological innovation.

 

These factors could produce sharp decreases in aircraft lease rates and values and have a material adverse effect on our ability to lease or re-lease our aircraft and on our ability to sell such aircraft or aircraft parts at acceptable prices.

 

We are indirectly subject to many of the economic and political risks associated with emerging markets, which could materially adversely affect our business, financial condition or results of operations.

 

We intend to capitalize on potential opportunities in emerging market countries, including, possibly, Russia, India, and Myanmar. We also may decide to conduct operations in other emerging market countries in the future.

 

Emerging market countries have less developed economies that are more vulnerable to economic and political problems and may experience significant fluctuations in gross domestic product, interest rates and currency exchange rates, as well as civil disturbances, government instability, nationalization and expropriation of private assets and the imposition of taxes or other charges by government authorities. The occurrence of any of these events in markets served by our clients and the resulting economic instability that may arise could adversely affect the value of our ownership interest in aircraft subject to lease in such countries, or the ability of our potential lessees, which operate in these markets to meet their lease obligations. As a result, lessees which operate in emerging market countries may be more likely to default on leases than lessees that operate in developed countries. In addition, legal systems in emerging market countries may be less developed, which could make it more difficult for us to enforce our legal rights in such countries. Our business, financial condition or results of operations may be materially adversely affected.

 

We will likely need additional financing to execute our business plan or new initiatives, which we may not be able to secure on acceptable terms, or at all.

 

We will require additional financing in the near and long term to fully execute our business plan. Our success may depend on our ability to raise such additional financing on reasonable terms and on a timely basis. Conditions in the economy and the financial markets may make it more difficult for us to obtain necessary additional capital or financing on acceptable terms, or at all. If we cannot secure sufficient additional financing, we may be forced to forego strategic opportunities or delay, scale back or eliminate additional service deployment, operations and investments or employ internal cost savings measures.

 

Competition from a number of companies, as well as other market forces, could result in price reduction, reduced revenue and loss of market share and could harm our results of operations.

 

We face strong competition from large corporations that provide aircraft leasing and spare parts supply services. Competition from such providers could have an adverse effect on our ability to gain market share. Most of our competitors are larger, more diversified corporations and have greater financial, marketing, production, and research and development resources. As a result, they may be better able to withstand the effects of periodic economic downturns or may offer more service offerings to customers. Competition could increase our sales and marketing expenses and related customer acquisition costs. We may not have the financial resources, technical expertise or marketing and support capabilities to compete successfully. A failure to effectively respond to competitors could have a material adverse impact on our business and results of operations.

 

- 8 -

 

 

We may be unsuccessful in pursuing our international opportunities.

 

Our ability to pursue international opportunities in Myanmar, India and Russia involves various risks, including the need to invest significant resources in unfamiliar markets and the possibility that we may not realize a return on our investments in the near future or at all. In addition, we may incur significant expenses before we generate any material revenue in these new markets.

 

Any future international opportunities may fail to succeed due to risks inherent in foreign operations, including:

 

  legal and regulatory restrictions, including aerospace and liability standards and enforcement practices;
     
  changes in international regulatory requirements and tariffs;
     
  restrictions on the ability of U.S. companies to do business in foreign countries;
     
  compliance with the Foreign Corrupt Practices Act, the (U.K.) Bribery Act 2010 and other similar corruption laws and regulations;
     
  currency fluctuations; and
     
  potential adverse tax consequences.

 

As a result of these obstacles, we may find it difficult or prohibitively expensive to pursue our international opportunities or we may be unsuccessful in our attempt to do so, which could harm our future operating results and financial condition.

 

If we fail to effectively manage our growth, it may adversely affect our business, brand and reputation, results of operations, and financial condition.

 

Once we begin operations, we may experience a rapid growth in operations, which may place significant demands on our management team and our operational and financial infrastructure. To continue to grow, we must effectively identify, integrate, develop and motivate new employees, and maintain the beneficial aspects of our corporate culture. To attract top talent, we believe we will have to offer attractive compensation packages. The risks of over-hiring or over compensating and the challenges of integrating a rapidly growing employee base may impact profitability.

 

Additionally, if we do not effectively manage our future growth, the quality of our services could suffer, which could adversely affect our business, brand and reputation, results of operations and financial condition. If operational, technology and infrastructure improvements are not implemented successfully, our ability to manage our future growth will be impaired and we may have to make significant additional expenditures to address these issues. To effectively manage our growth, we will need to continue to improve our operational, financial and management controls and our reporting systems and procedures. This will require that we refine our information technology systems to maintain effective online services and enhance information and communication systems to ensure that our employees effectively communicate with each other and our growing base of customers. These system enhancements and improvements will require significant incremental and ongoing capital expenditures and allocation of valuable management and employee resources. If we fail to implement these improvements and maintenance programs effectively, our ability to manage our expected growth and comply with the rules and regulations that are applicable to publicly reporting companies will be impaired and we may incur additional expenses.

 

We depend heavily on key personnel, and turnover of key senior management could harm our business.

 

Our future business and results of operations depend in significant part upon the continued contributions of our Chief Executive Officer and Chairman, Dr. B.B. Sahay, and our President, Mr. James Flynn. If we lose the services of these officers or if they fail to perform in their current positions, or if we are not able to attract and retain skilled employees as needed, our business could suffer. Significant turnover in our senior management could significantly deplete our institutional knowledge held by our existing senior management team. We depend on the skills and abilities of these key employees in managing the product acquisition, marketing and sales aspects of our business, any part of which could be harmed by turnover in the future.

 

We anticipate future losses and negative cash flow, and it is uncertain if or when we will become profitable.

 

We have not yet demonstrated our ability to generate revenue in our core business, but we hope to generate revenue and operate on a profitable basis in the future. As a result, we have incurred losses since our inception and even though we expect to see some operating revenue in the foreseeable future, losses and negative cash flow for the foreseeable future is a possibility.

 

- 9 -

 

 

We expect to expend significant resources on hiring of personnel and startup costs, including payroll and benefits, research and acquisitions, marketing and promotion, capital expenditures, working capital, general and administrative expenses, and fees and expenses associated with this offering. We expect to incur costs and expenses related to consulting costs, marketing and other promotional activities, hiring of personnel and the continued development of relationships with strategic business partners. We are attempting to obtain the necessary working capital for operations, of which this offering is a part, but we may not be able to obtain financing in a sufficient amount or at all. We anticipate our losses will continue to increase from current levels during our development stage.

 

We may allocate the net proceeds from this offering in ways that differ from the estimates discussed in the section titled “Use of Proceeds” and with which you may not agree.

 

The allocation of net proceeds of the offering set forth in the “Use of Proceeds” section below represents our estimates based upon our current plans and assumptions regarding industry and general economic conditions, and our further revenues and expenditures.

 

The amounts and timing of our actual expenditures will depend on numerous factors, including market conditions, cash generated by our operations, business developments and related rate of growth. We may find it necessary or advisable to use portions from this offering for other purposes. Circumstances that may give rise to a change in the use of proceeds and the alternate purposes for which the proceeds may be used are discussed in the section entitled “Use of Proceeds” below. You may not have an opportunity to evaluate the economic, financial or other information on which we base our decisions on how to use our proceeds. As a result, you and other stockholders may not agree with our decisions. See “Use of Proceeds” for additional information.

 

Adverse economic conditions may have a material adverse effect on our business.

 

Macro-economic challenges are capable of creating volatile and unpredictable environments for doing business. We cannot predict the nature, extent, timing or likelihood of any economic slowdown or the strength or sustainability of any economic recovery, worldwide, in the United States or in the airline industry. For many travelers, air travel and spending on in-flight internet access are discretionary purchases that they can eliminate in difficult economic times. Additionally, a weaker business environment may lead to a decrease in overall business travel, which is an important contributor to our service revenue. These conditions may make it more difficult or less likely for customers to purchase our equipment and services. If economic conditions in the United States or globally deteriorate further or do not show improvement, we may experience material adverse effects to our business, cash flow and results of operations.

 

Assets, technologies or businesses we may acquire could prove difficult to integrate, disrupt our ongoing business, dilute stockholder value or have an adverse effect on our results of operations.

 

As part of our business strategy, we may engage in acquisitions of aircraft, engine and spare parts inventories, all or substantially all of the assets of one or more businesses operating in the aircraft spare parts market or one or more synergistically related businesses or technologies in the aviation industry, to augment our organic or internal growth. We do not have any relevant experience with integrating and managing acquired assets or businesses. Acquisitions involve challenges and risks in negotiation, execution, valuation and integration. Moreover, we may not be able to find suitable acquisition opportunities on terms that are acceptable to us. Even if successfully negotiated, closed and integrated, certain acquisitions may not advance our business strategy, may fall short of expected return-on-investment targets or may fail. Any future acquisition could involve numerous risks, including:

 

  potential disruption of our ongoing business and distraction of management;
     
  difficulty integrating the assets, operations and products from the selling business;
     
  use of cash to fund the acquisition or for unanticipated expenses;
     
  exposure to unknown liabilities, including litigation against the assets we acquire;
     
  additional costs due to differences in culture, geographical locations and duplication of key talent;
     
  delays associated with or resources being devoted to regulatory review and approval;
     
  acquisition-related accounting charges affecting our balance sheet and operations;
     
  difficulty integrating the financial results of an acquired business in our financial statements;
     
  controls in an acquired business;
     
  potential impairment of goodwill;
     
  dilution to our current stockholders from the possible issuance of equity securities; and
     
  potential loss of key employees or customers of any acquired business.

 

- 10 -

 

 

In the event that we enter into any agreement to acquire an existing company, closing of such a transaction could be delayed or prevented by regulatory approval requirements, including antitrust review, or other conditions. We may not be successful in addressing these risks or any other problems encountered in connection with any attempted acquisition, and we could assume the economic risks of any such failed or unsuccessful acquisition.

 

Risks Relating to our Industry

 

Our business is highly dependent on the airline industry, which is itself affected by factors beyond the airlines’ control. The airline industry is highly competitive and sensitive to changing economic conditions.

 

Our business is directly affected by the number of passengers flying on commercial aircrafts, the financial condition of the airlines and other economic factors. If consumer demand for air travel declines, or the number of aircraft and flights shrinks due to, among other reasons, reductions in capacity by airlines, it would have a material adverse effect on our business and results of operations. Unfavorable general economic conditions and other events that are beyond the airlines’ control, including higher unemployment rates, higher interest rates, reduced stock prices, reduced consumer and business spending, terrorist attacks or threats and pandemics could have a material adverse effect on the airline industry. A general reduction or shift in discretionary spending can result in decreased demand for leisure and business travel and lead to a reduction in airline flights offered and the number of passengers flying. Further, unfavorable economic conditions could also limit airlines’ ability to counteract increased fuel, labor or other costs though raised prices. Any of these events would have a material adverse effect on our business prospects, financial condition and results of operations.

 

Air traffic congestion at airports, air traffic control inefficiencies, weather conditions, such as hurricanes or blizzards, increased security measures, new travel-related taxes, the outbreak of disease or any other similar event could harm the airline industry.

 

Airlines are subject to cancellations or delays caused by factors beyond their control. Cancellations or delays due to weather conditions or natural disasters, air traffic control problems, breaches in security or other factors could reduce the number of passengers on commercial flights and thereby reduce demand for our services and harm our businesses, results of operations and financial condition.

 

Risks Related to Ownership of our Common Stock

 

There is no public market for the common stock being sold in this offering and one may never develop.

 

There is no established public trading market for the common stock being offered in our Regulation A offering. We expect that a public market will develop, although we can make no assurances to this effect. In 2019, we engaged Glendale Securities, Inc., a Securities and Exchange Commission registered and FINRA member broker-dealer, as our market maker and, through an application to FINRA, our common stock was approved for quotation on the OTC Markets Group Inc. Pink Tier under the symbol “ASAV.” There can be no assurance, however, that an active trading market will ever develop in our common stock. Without an active market, the liquidity of the common stock will be limited.

 

Due to the lack of a current public market for our stock, investors may have difficulty in selling stock they purchase.

 

Prior to our previous Regulation A offering, no public trading market existed for the Company’s securities. There can be no assurance that a public trading market for the Company’s common stock will develop or that a public trading market, if developed, will be sustained. Although we have engaged Glendale Securities, Inc. as our market maker and our common stock is now listed for quotation on the OTC Markets Group Pink Tier, it is anticipated that, initially, there will be little or no market for the shares. As a result, an investor may find it difficult to dispose of any shares purchased hereunder. Because there may be no public market for the Company’s stock, the Company may not be able to secure future equity financing which would have a material adverse effect on the Company.

 

Furthermore, when and if the Company’s common stock is eligible for quotation on the OTC Market, there can also be no assurance as to the depth or liquidity of any market for the common stock or the prices at which holders may be able to sell the shares.

 

- 11 -

 

 

As a result, investors could find it more difficult to trade, or to obtain accurate quotations of the market value of, the stock as compared to securities that are traded on the NASDAQ trading market or on an exchange. Moreover, an investor may find it difficult to dispose of any shares purchased hereunder.

 

Investors may have difficulty in reselling their shares due to the lack of market or state Blue Sky laws.

 

Our common stock is currently quoted on OTC Market’s Pink tier. Although no active trading market may ever develop for our common stock, or if developed, may not be sustained in the future. The holders of our shares of common stock and persons who desire to purchase them in any trading market that might develop in the future should be aware that there may be significant state law restrictions upon the ability of investors to resell our shares. Accordingly, even though we have been successful in having the shares sold in this offering available for trading on the OTC Market’s Pink tier, investors should consider any secondary market for the Company’s securities to be a limited one. We intend to seek coverage and publication of information regarding the company in an accepted publication which permits a “manual exemption.” This manual exemption permits a security to be distributed in a particular state without being registered if the company issuing the security has a listing for that security in a securities manual recognized by the state. However, it is not enough for the security to be listed in a recognized manual. The listing entry must contain (1) the names of issuers, officers, and directors, (2) an issuer’s balance sheet, and (3) a profit and loss statement for either the fiscal year preceding the balance sheet or for the most recent fiscal year of operations. We may not be able to secure a listing containing all of this information. Furthermore, the manual exemption is a non-issuer exemption restricted to secondary trading transactions, making it unavailable for issuers selling newly issued securities. Most of the accepted manuals are those published in Standard and Poor’s, Moody’s Investor Service, Fitch’s Investment Service, and Best’s Insurance Reports, and many states expressly recognize these manuals. A smaller number of states declare that they “recognize securities manuals” but do not specify the recognized manuals. The following states do not have any provisions and therefore do not expressly recognize the manual exemption: Alabama, Georgia, Illinois, Kentucky, Louisiana, Montana, South Dakota, Tennessee, Vermont and Wisconsin. Accordingly, our shares should be considered totally illiquid, which inhibits investors’ ability to resell their shares.

 

We will be subject to penny stock regulations and restrictions and you may have difficulty selling shares of our common stock.

 

The SEC has adopted regulations which generally define so-called “penny stocks” to be an equity security that has a market price less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exemptions. We anticipate that our common stock will become a “penny stock”, and we will become subject to Rule 15g-9 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or the “Penny Stock Rule.” This rule imposes additional sales practice requirements on broker-dealers that sell such securities to persons other than established customers. For transactions covered by Rule 15g-9, a broker-dealer must make a special suitability determination for the purchaser and have received the purchaser’s written consent to the transaction prior to sale. As a result, this rule may affect the ability of broker-dealers to sell our securities and may affect the ability of purchasers to sell any of our securities in the secondary market.

 

For any transaction involving a penny stock, unless exempt, the rules require delivery, prior to any transaction in a penny stock, of a disclosure schedule prepared by the SEC relating to the penny stock market. Disclosure is also required to be made about sales commissions payable to both the broker-dealer and the registered representative and current quotations for the securities. Finally, monthly statements are required to be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny stock.

 

We do not anticipate that our common stock will qualify for exemption from the Penny Stock Rule. In any event, even if our common stock were exempt from the Penny Stock Rule, we would remain subject to Section 15(b)(6) of the Exchange Act, which gives the SEC the authority to restrict any person from participating in a distribution of penny stock, if the SEC finds that such a restriction would be in the public interest.

 

Sales of our common stock under Rule 144 could reduce the price of our stock.

 

There are 1,467,350 shares of our common stock held by non-affiliates and 9,000,000 shares held by affiliates that Rule 144 of the Securities Act defines as restricted securities. 10,000,000 new shares (including the 5,000,000 bonus shares) are being qualified in this offering, however all of the remaining shares will still be subject to the resale restrictions of Rule 144. In general, persons holding restricted securities, including affiliates, must hold their shares for a period of at least six months, may not sell in any 90-day period more than the greater of (i) one percent of the total issued and outstanding shares and (ii) the average weekly trading volume of such shares during the four calendar weeks preceding the filing of a notice on Form 144 with respect to the sale, and must resell the shares in an unsolicited brokerage transaction at the market price. The availability for sale of substantial amounts of common stock under Rule 144 could reduce prevailing market prices for our securities.

 

- 12 -

 

 

Because we do not have an audit or compensation committee, shareholders will have to rely on the entire board of directors, no member of which is independent, to perform these functions.

 

We do not have any audit or compensation committee. These functions are performed by the board of directors as a whole. No members of the board of directors are independent directors. Thus, there is a potential conflict in that board members who are also part of management will participate in discussions concerning management compensation and audit issues that may affect management decisions.

 

Our Chief Executive Officer and Director owns the majority (85.98%) of our outstanding voting securities which could reduce the ability of minority shareholders to effect certain corporate actions.

 

Our Chief Executive Officer and Chairman, Dr. B.B. Sahay, currently owns 85.98% of our outstanding voting securities. Even if the maximum amount of shares being offered in this offering are sold, Dr. Sahay will continue to own over 60% of all outstanding shares. As a result, currently, and after the offering, he will possess a significant influence and can elect a majority of our board of directors and authorize or prevent proposed significant corporate transactions. His ownership and control may also have the effect of delaying or preventing a future change in control, impeding a merger, consolidation, takeover or other business combination or discourage a potential acquirer from making a tender offer.

 

There may not be funds available for net income because our Chief Executive Officer and Director maintains significant control and can determine his own salary and perquisites.

 

Our Chief Executive Officer and Chairman, Dr. B.B. Sahay, owns all of our outstanding voting securities. As a result, there may not be funds available for net income because he maintains significant control and can determine his own salary and perquisites.

 

We may, in the future, issue additional shares of common stock, which would reduce investors’ percent of ownership and may dilute our share value.

 

Our Articles of Incorporation authorize the issuance of 100,000,000 shares of common stock. As of the date of this Offering Circular the Company had 10,467,350 shares of common stock outstanding. Accordingly, we may issue up to an additional 89,532,650 shares of common stock. The future issuance of common stock, including the issuance of bonus shares in this offering, may result in substantial dilution in the percentage of our common stock held by our then existing shareholders. We may value any common stock issued in the future on an arbitrary basis. The issuance of common stock for future services or acquisitions or other corporate actions may have the effect of diluting the value of the shares held by our investors, and might have an adverse effect on any trading market for our common stock.

 

Our potential issuance of bonus shares may result in a discounted offering price being paid by certain investors in this offering.

 

Certain investors who satisfy certain criteria may be entitled to bonus shares (effectively a discount) in this offering. See the “Plan of Distribution” section of this Offering Circular. These bonus shares may immediately dilute the value of your shares. Therefore, the value of shares of investors who pay the full price in this offering will be diluted by investments made by investors entitled to these bonus shares.

 

We are subject to compliance with securities laws, which exposes us to potential liabilities, including potential rescission rights.

 

We may offer to sell our common stock to investors pursuant to certain exemptions from the registration requirements of the Securities Act, as well as those of various state securities laws. The basis for relying on such exemptions is factual; that is, the applicability of such exemptions depends upon our conduct and that of those persons contacting prospective investors and making the offering. We may not seek any legal opinion to the effect that any such offering would be exempt from registration under any federal or state law. Instead, we may elect to relay upon the operative facts as the basis for such exemption, including information provided by investor themselves.

 

If any such offering did not qualify for such exemption, an investor would have the right to rescind its purchase of the securities if it so desired. It is possible that if an investor should seek rescission, such investor would succeed. A similar situation prevails under state law in those states where the securities may be offered without registration in reliance on the partial preemption from the registration or qualification provisions of such state statutes under the National Securities Markets Improvement Act of 1996. If investors were successful in seeking rescission, we would face severe financial demands that could adversely affect our business and operations. Additionally, if we did not in fact qualify for the exemptions upon which it has relied, we may become subject to significant fines and penalties imposed by the SEC and state securities agencies.

 

Anti-takeover effects of certain provisions of Nevada state law hinder a potential takeover of the Company.

 

Though not now, we may be or in the future we may become subject to Nevada’s control share law. A corporation is subject to Nevada’s control share law if it has more than 200 stockholders, at least 100 of whom are stockholders of record and residents of Nevada, and it does business in Nevada or through an affiliated corporation. The law focuses on the acquisition of a “controlling interest” which means the ownership of outstanding voting shares sufficient, but for the control share law, to enable the acquiring person to exercise the following proportions of the voting power of the corporation in the election of directors: (i) one-fifth or more but less than one-third, (ii) one-third or more but less than a majority, or (iii) a majority or more. The ability to exercise such voting power may be direct or indirect, as well as individual or in association with others.

 

- 13 -

 

 

The effect of the control share law is that the acquiring person, and those acting in association with it, obtains only such voting rights in the control shares as are conferred by a resolution of the stockholders of the corporation, approved at a special or annual meeting of stockholders. The control share law contemplates that voting rights will be considered only once by the other stockholders. Thus, there is no authority to strip voting rights from the control shares of an acquiring person once those rights have been approved. If the stockholders do not grant voting rights to the control shares acquired by an acquiring person, those shares do not become permanent non-voting shares. The acquiring person is free to sell its shares to others. If the buyers of those shares themselves do not acquire a controlling interest, their shares do not become governed by the control share law.

 

If control shares are accorded full voting rights and the acquiring person has acquired control shares with a majority or more of the voting power, any stockholder of record, other than an acquiring person, who has not voted in favor of approval of voting rights is entitled to demand fair value for such stockholder’s shares.

 

Nevada’s control share law may have the effect of discouraging takeovers of the corporation.

 

In addition to the control share law, Nevada has a business combination law which prohibits certain business combinations between Nevada corporations and “interested stockholders” for three years after the “interested stockholder” first becomes an “interested stockholder,” unless the corporation’s board of directors approves the combination in advance. For purposes of Nevada law, an “interested stockholder” is any person who is (i) the beneficial owner, directly or indirectly, of ten percent (10%) or more of the voting power of the outstanding voting shares of the corporation, or (ii) an affiliate or associate of the corporation and at any time within the three previous years was the beneficial owner, directly or indirectly, of ten percent (10%) or more of the voting power of the then outstanding shares of the corporation. The definition of the term “business combination” is sufficiently broad to cover virtually any kind of transaction that would allow a potential acquiror to use the corporation’s assets to finance the acquisition or otherwise to benefit its own interests rather than the interests of the corporation and its other stockholders.

 

The effect of Nevada’s business combination law is to potentially discourage parties interested in taking control of the Company from doing so if it cannot obtain the approval of our board of directors.

 

Because we do not intend to pay any cash dividends on our common stock, our stockholders will not be able to receive a return on their shares unless they sell them.

 

We intend to retain any future earnings to finance the development and future expansion of our business. We do not anticipate paying any cash dividends on our common stock in the foreseeable future. Unless we pay dividends, our stockholders will not be able to receive a return on their shares unless they sell them, subject to resale restrictions. There is no assurance that stockholders will be able to sell shares when desired.

 

Opt-in right for emerging growth company

 

We have elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(2) of the Jobs Act, that allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates.

 

Implications of Being an Emerging Growth Company.

 

As a company with less than $1 billion in revenue during its last fiscal year, we qualify as an “emerging growth company” as defined in the JOBS Act. For as long as a company is deemed to be an emerging growth company, it may take advantage of specified reduced reporting and other regulatory requirements that are generally unavailable to other public companies. These provisions include:

 

  A requirement to have only two years of audited financial statements and only two years of related Management’s Discussion and Analysis included in an initial public offering registration statement;
     
  an exemption to provide less than five years of selected financial data in an initial public offering registration statement;
     
  an exemption from the auditor attestation requirement in the assessment of the emerging growth company’s internal controls over financial reporting;
     
  an exemption from the adoption of new or revised financial accounting standards until they would apply to private companies;
     
  an exemption from compliance with any new requirements adopted by the Public Company Accounting Oversight Board requiring mandatory audit firm rotation or a supplement to the auditor’s report in which the auditor would be required to provide additional information about the audit and the financial statements of the issuer; and
     
  reduced disclosure about the emerging growth company’s executive compensation arrangements.

 

- 14 -

 

 

An emerging growth company is also exempt from Section 404(b) of Sarbanes Oxley which requires that the registered accounting firm shall, in the same report, attest to and report on the assessment on the effectiveness of the internal control structure and procedures for financial reporting. Similarly, as a Smaller Reporting Company we are exempt from Section 404(b) of the Sarbanes-Oxley Act and our independent registered public accounting firm will not be required to formally attest to the effectiveness of our internal control over financial reporting until such time as we cease being a Smaller Reporting Company.

 

As an emerging growth company, we are exempt from Section 14A (a) and (b) of the Exchange Act which require the shareholder approval of executive compensation and golden parachutes.

 

Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.

 

We would cease to be an emerging growth company upon the earliest of:

 

  the first fiscal year following the fifth anniversary of this offering;
     
  the first fiscal year after our annual gross revenues are $1 billion or more;
     
  the date on which we have, during the previous three-year period, issued more than $1 billion in non-convertible debt securities; or
     
  as of the end of any fiscal year in which the market value of our common stock held by non-affiliates exceeded $700 million as of the end of the second quarter of that fiscal year.

 

This offering is being conducted on a self-underwritten “best efforts” basis without a minimum and we may not be able to execute our growth strategy if the $5,000,000 million maximum is not sold.

 

If you invest in the common stock and less than all of the offered shares are sold, the risk of losing your entire investment will be increased. We are offering our common stock on a self-underwritten “best efforts” basis without a minimum, and we can give no assurance that all of the offered common stock will be sold. Even if we subsequently engage an SEC registered broker-dealer to assist in the offering, such broker-dealer will also be offering and selling the shares on a “best efforts” basis. If less than $5,000,000 million of common stock shares offered are sold, we may be unable to fund all the intended uses described in this Offering Circular from the net proceeds anticipated from this offering without obtaining funds from alternative sources or using working capital that we generate. Alternative sources of funding may not be available to us at what we consider to be a reasonable cost, and the working capital generated by us may not be sufficient to fund any uses not financed by offering net proceeds.

 

This is a fixed price offering and the fixed offering price may not accurately represent the current value of us or our assets at any particular time. Therefore, the purchase price you pay for our shares may not be supported by the value of our assets at the time of your purchase.

 

This is a fixed price offering, which means that the offering price for our shares is fixed and will not vary based on the underlying value of our assets at any time. Our board of directors has determined the offering price in its sole discretion without the input of an investment bank or other third party. The fixed offering price for our shares has not been based on appraisals of any assets we own or may own, or of our company as a whole, nor do we intend to obtain such appraisals. Therefore, the fixed offering price established for our shares may not be supported by the current value of our company or our assets at any particular time.

 

- 15 -

 

 

We have broad discretion in the use of the net proceeds from this offering, and our use of the offering proceeds may not yield a favorable return on your investment.

 

We expect to use most of the net proceeds from this offering for working capital, business development, product development and capital expenditure. However, our management has broad discretion over how these proceeds are to be used and based on unforeseen technical, commercial or regulatory issues could spend the proceeds in ways with which you may not agree. Moreover, the proceeds may not be invested effectively or in a manner that yields a favorable or any return, and consequently, this could result in financial losses that could have a material adverse effect on our business, financial condition and results of operations.

 

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

This Offering Circular contains forward-looking statements. The forward-looking statements are contained principally in the sections entitled “Summary,” “Risk Factors,” “Our Business” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to, the factors described in the section captioned “Risk Factors” above. In some cases, you can identify forward-looking statements by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “would” and similar expressions intended to identify forward-looking statements. Forward-looking statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements. These forward-looking statements include, among other things, statements relating to:

 

  our ability to develop our aircraft, aircraft engine and spare parts sales and leasing operation, as well as our aviation consulting services;
     
  our ability to pursue international opportunities and comply with local and international regulations;
     
  our ability to manage a rapidly growing company;
     
  the impact of the COVID-19 coronavirus pandemic and other changes in general economic and demographic conditions as they may affect our business plans;
     
  the number of aircrafts in service in our markets, including consolidation of the airline industry or changes in fleet size by one or more of our future commercial airline partners;
     
  the economic environment and other trends that affect both business and leisure travel;
     
  the continued demand for aircraft spare parts and leasing operations;
     
  our ability to obtain required aviation and other licenses and approvals necessary for our operations; and
     
  our ability to enter into agreements to acquire aviation related assets such as spare parts inventories, or synergistic businesses operating in the aviation industry; and
     
  changes in laws, regulations and interpretations affecting aviation.

 

While we believe we have identified material risks, these risks and uncertainties are not exhaustive. Other sections of this Offering Circular describe additional factors that could adversely impact our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties, such as the ongoing COVID-19 coronavirus pandemic, emerge from time to time, and it is not possible to predict all risks and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

 

Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. We are under no duty to update any of these forward-looking statements after the date of this Offering Circular to conform our prior statements to actual results or revised expectations, and we do not intend to do so.

 

- 16 -

 

 

DILUTION

 

We are offering up to 5,000,000 shares of our common stock at an offering purchase price of $1.00 per share in this offering. In addition, up to an aggregate of 5,000,000 shares may be issued as bonus shares for which we will receive no consideration. If we sell all 5,000,000 shares of our common stock and issue the maximum of 5,000,000 additional shares as bonus shares, we would receive $5,000,000 for 10,000,000 total shares, an effective purchase price per share of $0.50.

 

Purchasers of our common stock in this offering will experience an immediate dilution of net tangible book value per share from the public offering price. Dilution in net tangible book value per share represents the difference between the amount per share paid by the purchasers of shares of common stock and the net tangible book value per share immediately after this offering.

 

As of September 30, 2021, our net tangible book value was $(76,538) or $(0.01) per share of common stock. Net tangible book value per share represents the amount of our total tangible assets (excluding deferred offering costs) less total liabilities, divided by 10,367,350, the number of shares of common stock outstanding at September 30, 2021.

 

The following table sets forth as of September 30, 2021, the number of shares of common stock purchased from us and the total consideration paid by our existing stockholder and by new investors in this offering if new investors purchase 25%, 50%, 75% or 100% of the offering, after deduction of offering expenses, assuming a purchase price in this offering of $1.00 per share of common stock.

 

   25% of
Offering Sold
   50% of
Offering Sold
   75% of
Offering Sold
   100% of
Offering Sold
 
Offering Price Per share  $1.00   $1.00   $1.00   $1.00 
Post Offering Net Tangible Book Value  $1,016,962   $2,141,962   $3,265,962   $4,390,962 
Post Offering Net Tangible Book Value Per Share, including the maximum number of full-price and bonus shares issuable in this offering,  $0.09   $0.16   $0.21   $0.22 
Pre-Offering Net Tangible Book Value Per Share  $(0.01)  $(0.01)  $(0.01)  $(0.01)
Increase (Decrease) Net Tangible Book Value Per Share After Offering for Original Shareholder  $0.10   $0.17   $0.22   $0.23 
Dilution Per Share for New Shareholders, including the maximum number of full-price and bonus shares issuable in this Offering,  $0.91   $0.84   $0.79   $0.78 
Percentage Dilution Per Share for New Shareholders   91.49%   84.39%   79.29%   78.44%
                     
Capital Contribution by Purchasers of Shares  $1,250,000   $2,500,000   $3,750,000   $5,000,000 
Capital Contribution by Existing Shares  $368,350   $368,350   $368,350   $368,350 
% Contribution by Purchasers of Shares   74.8%   85.8%   90.1%   92.4%
% Contribution by Existing Shareholder   25.2%   14.2%   9.9%   7.6%
# of Shares After Offering Held by Public Investors   1,575,000    3.350,000    5,400,000    10,000,000 
# of Shares After Offering Held by Existing Investors (1)   10,367,350    10,367,350    10,367,350    10,367,350 
Total Shares Issued and Outstanding   11,942,350    13,717,350    15,767,350    20,367,350 
% of Shares - Purchasers After Offering   13.19%   24.42%   34.25%   49.10%
% of Shares - Existing Shareholder After Offering   86.81%   75.58%   65.75%   50.90%

 

  (1) Assuming the Issuer sells the entire offering of 5,000,000 shares and issues the entire amount of 5,000,000 bonus shares, after giving effect to the sale of shares of common stock in this offering, and after deducting underwriting discounts and commissions (10%) and estimated offering expenses payable by us, our post-offering net tangible book value as of September 30, 2021 would be $4,390,962 or $0.22 per share. This amount represents an immediate increase in the post-offering net tangible book value of $0.23 per share to our existing stockholder and an immediate dilution in the post-offering net tangible book value of approximately $0.78 per share to new investors purchasing shares of common stock in this offering. We determine dilution by subtracting the as adjusted net tangible book value per share after the offering from the amount of cash that a new investor paid for a share of common stock.

 

- 17 -

 

 

PLAN OF DISTRIBUTION

 

Offering Amount

 

This offering relates to the sale of 5,000,000 shares of our common stock plus the issuance of up to 5,000,000 bonus shares to certain qualified investors.

 

Bonus Shares

 

We are offering bonus shares (effectively a discount) to qualifying investors in this offering, on a first come, first served basis. Shares of our common stock will be offered as additional shares to qualified investors who purchase a minimum number of shares in this offering. Up to a maximum of 5,000,000 shares of our common stock may be offered as bonus shares to certain qualified investors.

 

An investor will receive bonus shares depending on the amount he invests in the offering in accordance with the schedule below:

 

Amount of Investment

  Number of Bonus Shares
Minimum of $1,000,000 up to $1,999,999   325,000
Minimum of $2,000,000 up to $2,999,999   850,000
Minimum of $3,000,000 up to $3,999,999   1,650,000
Minimum of $4,000,000 up to $4,999,999   3,250,000
Investment of $5,000,000   5,000,000

 

We do not plan to use underwriters or pay any commissions. We will be selling our shares of common stock using our best efforts and no one has agreed to buy any of our shares of common stock. This Offering Circular permits our CEO to sell the shares of common stock directly to the public, with no commission or other remuneration payable to him for any shares of common stock he may sell. Currently, there is no plan or arrangement to enter into any contracts or agreements to sell the shares of common stock through a broker or dealer, although this may change in the future. Our CEO will sell the shares of common stock, and intends to offer them to friends, family members and business acquaintances. If we do engage a broker or dealer to act as a placement agent for this offering, we will amend this Offering Circular to reflect the engagement of, and the fees payable to, such broker or dealer.

 

There is no minimum amount of shares of common stock we must sell so no money raised from the sale of our shares of common stock will go into escrow, trust or another similar arrangement.

 

In the following states we cannot offer or sell our shares of common stock unless we register as an issuer dealer: Alabama, Arizona, Florida, Nebraska, Nevada, New Jersey, New York, North Dakota, Texas and Washington. We are currently qualified in New York and Texas as an issuer-dealer. If we wish to offer and sell our shares of common stock in the other states listed above, we will hire an SEC registered broker-dealer to serve as our placement agent. We may, however, decide to comply with other particular states’ issuer dealer registration requirements, if we deem it appropriate.

 

We have budgeted our use of proceeds to reflect a maximum of 10% aggregated commissions that may be paid any lead underwriter that may be engaged and broker dealers who may choose to assist such lead underwriter. None of our officers or directors will receive any commissions, directly or indirectly, in connection with sales in this offering. An Amendment shall be filed in the event an underwriter is engaged. After anticipated sales commissions to FINRA-registered broker dealers as may be engaged, a maximum of $4,500,000 will be received from the Offering.

 

Initially, the shares of common stock are being offered by Dr. B.B. Sahay, the Company’s Chief Executive Officer and Director. Dr. Sahay will be relying on the safe harbor in Rule 3a4-1 of the Securities Exchange Act to sell the shares of common stock. No sales commission will be paid for shares of common stock sold by Dr. Sahay. Dr. Sahay is not subject to a statutory disqualification and is not an associated person of a broker or dealer.

 

Additionally, Dr. Sahay primarily performs substantial duties on behalf of the registrant otherwise than in connection with transactions in securities. Dr. Sahay has not been a broker or dealer or an associated person of a broker or dealer within the preceding 12 months and he has not participated in selling an offering of securities for any issuer more than once every 12 months other than in reliance on paragraph (a)4(i) or (a)4(iii) of Rule 3a4-1 of the Securities Exchange Act.

 

The offering will commence on the date that the offering statement of which this Offering Circular is a part is qualified by the SEC and will terminate on or before the earliest event of the sale of the maximum offering, the termination of the offering by Company management or the passage of one (1) year from the qualification date, unless such date is extended in the sole discretion of the Company.

 

There are no finders.

 

Under the rules of the SEC, our common stock will come within the definition of a “penny stock” because the price of our common stock is below $5.00 per share. As a result, our common stock will be subject to the “penny stock” rules and regulations. Broker-dealers who sell penny stocks to certain types of investors are required to comply with the SEC’s regulations concerning the transfer of penny stock. These regulations require broker-dealers to:

 

- Make a suitability determination prior to selling penny stock to the purchaser;

 

- Receive the purchaser’s written consent to the transaction; and

 

- Provide certain written disclosures to the purchaser.

 

These requirements may restrict the ability of broker-dealers to sell our common stock, and may affect the ability to resell our common stock.

 

- 18 -

 

 

OTC Market Considerations

 

To be quoted on the OTC Market, a market maker must file an application on our behalf in order to make a market for our common stock. In 2019, we engaged Glendale Securities, Inc., a Securities and Exchange Commission registered and FINRA member broker-dealer, as our market maker and, through an application to FINRA, our common stock was approved for quotation on the OTC Markets Group Inc. Pink Tier under the symbol “ASAV.” There can be no assurance, however, that an active trading market will ever develop in our common stock.

 

The OTC Market is separate and distinct from the NASDAQ stock market. NASDAQ has no business relationship with issuers of securities quoted on the OTC Market. The SEC’s order handling rules, which apply to NASDAQ-listed securities, do not apply to securities quoted on the OTC Market.

 

Although the NASDAQ stock market has rigorous listing standards to ensure the high quality of its issuers, and can delist issuers for not meeting those standards, the lowest tier of the OTC Market where our stock currently trades, the OTC Pink tier, has no listing standards. Rather, it is the market maker who chooses to quote a security on the system, files the application, and is obligated to comply with keeping information about the issuer in its files. FINRA cannot deny an application by a market maker to quote the stock of a company. The only requirements for inclusion in the OTC Pink tier is that the issuer be current in its reporting requirements with the SEC and that it have a certain number of holders of the Company’s free trading stock. The Company currently meets these requirements.

 

Although we anticipate that our listing on the OTC Market will increase liquidity for our stock, investors may have greater difficulty in getting orders filled because our common stock is trading on the OTC Market’s Pink tier rather than on a NASDAQ market or on another exchange. Investors’ orders may be filled at a price much different than expected when an order is placed. Trading activity in general is not conducted as efficiently and effectively on the OTC market’s Pink tier as with NASDAQ-listed securities.

 

Investors must contact a broker-dealer to trade OTC Market securities. Investors do not have direct access to the OTC service. For OTC securities, there only has to be one market maker.

 

OTC stocks are usually not followed by analysts, there may be lower trading volume than for NASDAQ-listed securities.

 

Blue Sky Law Considerations

 

The holders of our shares of common stock and persons who desire to purchase them in any trading market that might develop in the future should be aware that there may be significant state law restrictions upon the ability of investors to resell our shares. Accordingly, even though we have been successful in having the shares of our common stock available for trading on the OTC Market, investors should consider any secondary market for the Company’s securities to be a limited one. There is no guarantee that an active trading market will ever develop for our stock on the OTC Market. We intend to seek coverage and publication of information regarding the company in an accepted publication, which permits a “manual exemption.” This manual exemption permits a security to be distributed in a particular state without being registered if the company issuing the security has a listing for that security in a securities manual recognized by the state. However, it is not enough for the security to be listed in a recognized manual. The listing entry must contain (1) the names of issuers, officers, and directors, (2) an issuer’s balance sheet, and (3) a profit and loss statement for either the fiscal year preceding the balance sheet or for the most recent fiscal year of operations. We may not be able to secure a listing containing all of this information. Furthermore, the manual exemption is a non-issuer exemption restricted to secondary trading transactions, making it unavailable for issuers selling newly issued securities. Most of the accepted manuals are those published in Standard and Poor’s, Moody’s Investor Service, Fitch’s Investment Service, and Best’s Insurance Reports, and many states expressly recognize these manuals. A smaller number of states declare that they “recognize securities manuals” but do not specify the recognized manuals. The following states do not have any provisions and therefore do not expressly recognize the manual exemption: Alabama, Georgia, Illinois, Kentucky, Louisiana, Montana, South Dakota, Tennessee, Vermont and Wisconsin.

 

We currently do not intend to and may not be able to qualify securities for resale in other states, which require shares to be qualified before they can be resold by our shareholders.

 

Offering Period and Expiration Date

 

This offering will start on the date the post-qualification amendment to the offering statement of which this this Offering Circular is a part is declared “qualified” by the SEC. The offering will terminate on the earlier of: (i) the date at which the maximum offering amount has been sold; (ii) [   ], 2023; or (iii) the date at which the offering is earlier terminated by the company in its sole discretion. The company may undertake one or more closings on a rolling basis. After each closing, funds tendered by investors will be available to the company.

 

- 19 -

 

 

Procedures for Subscribing

 

If you decide to subscribe for any common stock in this offering, you must:

 

  1. Receive, review, execute and deliver to us a Subscription Agreement; and
     
  2. Deliver a check or wire transfer for the amount set forth in the Subscription Agreement.

 

You must pay for the shares of our common stock at the time of your subscription. Subscription agreements may be submitted in paper form, or electronically. All checks should be made payable to ASI Aviation, Inc. Completed subscription agreements should be sent to us at the address set forth in the subscription agreement and payments should be sent to us or wired according to the instructions in the subscription agreement.

 

Any potential investor will have ample time to review the Subscription Agreement, along with their counsel, prior to making any final investment decision. We shall only deliver such Subscription Documents upon request after a potential investor has had ample opportunity to review this Offering Circular. Further, we will not accept any money until the SEC declares this Offering Circular qualified.

 

Investment Amount Limitations

 

Investors must answer certain questions to determine compliance with the investment limitation set forth in Rule 251(d)(2)(i)(C) under the Securities Act, which states that in offerings such as this one, where the securities will not be listed on a registered national securities exchange upon qualification, the aggregate purchase price to be paid by the investor for the securities cannot exceed ten percent (10%) of the greater of the investor’s annual income or net worth. In the case of an investor who is not a natural person, revenues or net assets for the investor’s most recently completed fiscal year are used instead. The investment limitation does not apply to accredited investors, as that term is defined in Rule 501 under the Securities Act. An individual is an accredited investor if he/she meets one of the following criteria:

 

  a natural person whose individual net worth, or joint net worth with the undersigned’s spouse, excluding the “net value” of his or her primary residence, at the time of this purchase exceeds $1,000,000 and having no reason to believe that net worth will not remain in excess of $1,000,000 for the foreseeable future, with “net value” for such purposes being the fair value of the residence less any mortgage indebtedness or other obligation secured by the residence, but subtracting such indebtedness or obligation only if it is a liability already considered in calculating net worth;
     
  a natural person who has individual annual income in excess of $200,000 in each of the two most recent years or joint annual income with that person’s spouse in excess of $300,000 in each of those years and who reasonably expects an income in excess of those levels in the current year or
     
  a natural person who holds one of the following licenses in good standing: General Securities Representative license (Series 7), the Private Securities Offerings Representative license (Series 82), or the Investment Adviser Representative license (Series 65).

 

An entity other than a natural person is an accredited investor if it falls within any one of the following categories:

 

  a corporation, partnership, trust, limited liability company, or other entity in which all of the equity owners are “accredited investors”;
     
  a trust with total assets in excess of USD $5,000,000 and was not formed for the specific purpose of acquiring the shares, the Trustee of which has such knowledge and experience in real estate investing and/or financial and business matters that it is capable of evaluating the merits and risks of investing in the shares;
     
  a bank, savings and loan association or other financial institution, a registered securities broker or securities dealer, or an insurance company;
     
  an investment adviser registered pursuant to section 203 of the Investment Advisers Act of 1940 or registered pursuant to the laws of a state, or who is relying on the exemption from registering with the Securities and Exchange Commission under section 203(l) or (m) of the Investment Advisers Act of 1940;

 

- 20 -

 

 

  a registered investment company or business development company, a licensed Small Business Investment Company, or a private business development company;
     
  a state-sponsored pension plan with total assets in excess of USD $5,000,000;
     
  an employee benefit plan which either (a) has a fiduciary that is a bank, savings and loan association, insurance company, or registered investment adviser; (b) has total assets in excess of USD $5,000,000; or (c) is a self-directed plan and investment decisions are made solely by persons that are “accredited investors”;
     
  a non-profit organization described in section 501(c)(3) of the Internal Revenue Code that was not formed for the specific purpose of acquiring Company Interests having total assets in excess of USD $5,000,000;
     
  any other entity not formed for the specific purpose of acquiring the securities offered, owning investments in excess of $5,000,000;
     
  a “family office,” as defined under the Investment Advisers Act of 1940: (i) with assets under management in excess of $5,000,000, (ii) that is not formed for the specific purpose of acquiring the securities offered, and (iii) whose prospective investment is directed by a person who has such knowledge and experience in financial and business matters that such family office is capable of evaluating the merits and risks of the prospective investment;
     
  a “family client,” as defined under the Investment Advisers Act of 1940, of a family office meeting the requirements in paragraph (xiii) above and whose prospective investment in the issuer is directed by such family office; or
     
  a director, executive officer, or manager of the Company or a director, executive officer, or manager of the Company’s manager.

 

Right to Reject Subscriptions

 

After we receive your complete, executed Subscription Agreement and the funds required under the Subscription Agreement, we have the right to review and accept or reject your subscription in whole or in part, for any reason or for no reason. We will return all monies from rejected subscriptions promptly to you, without interest or deductions.

 

Acceptance of Subscriptions

 

Upon our acceptance of a Subscription Agreement and receipt of full payment, we shall countersign the Subscription Agreement and issue to you a share certificate for the number of shares of our common stock purchased by you, along with a copy of the Subscription Agreement.

 

Once you submit the Subscription Agreement and it is accepted, you may not revoke or change your subscription or request a refund of monies paid. All accepted Subscription Agreements are irrevocable, even if you subsequently learn information about the Company that you consider to be materially unfavorable.

 

- 21 -

 

 

USE OF PROCEEDS

 

Our offering is being made on a self-underwritten, best efforts basis and no minimum number of shares must be sold. After deducting the estimated $32,500 expenses of this offering, we expect the net proceeds of a fully subscribed offering to the issuer will be approximately $4,967,500, assuming a public offering price of $1.00 per share. In addition, we have projected an aggregate sales commission of 10% in the use of funds table below in anticipation of the Company engaging one or more SEC registered broker-dealers to distribute and syndicate the offering, also on a “best efforts” basis.

 

Assuming the maximum amount in this offering is raised, we intend to use approximately $2,480,000 of the offering proceeds to acquire inventories of aircraft spare parts, aircraft engines and whole aircraft, either individually or as part of the acquisition of all or substantially all of the assets, or capital stock, of one or more third party businesses. We plan to utilize approximately $1,900,000 of the offering proceeds for general business development, capital expenditures, sales and marketing, executive compensation and staffing, working capital and other general corporate purposes. We do not intend to employ any material amount of the net proceeds to discharge any current or future indebtedness of the Company.

 

Because the offering is a “best efforts” offering with no minimum offering amount, we may conduct a number of closings and then terminate the offering without sufficient funds for the intended purposes set out above and below.

 

The following table sets forth the uses of proceeds assuming the sale of 25%, 50%, 75% and 100%, respectively, of the securities offered for sale by the Company in the offering. There is no guarantee, however, that we will receive any proceeds from the offering.

 

   25% of
Offering Sold
   50% of
Offering Sold
   75% of
Offering Sold
   100% of
Offering Sold
 
Offering Proceeds                    
                     
Shares Sold  $1,250,000   $2,500,000   $3,750,000   $5,000,000 
Gross Proceeds  $1,250,000   $2,500,000   $3,750,000   $5,000,000 
Total Before Expenses  $1,250,000   $2,500,000   $3,750,000   $5,000,000 
                     
Offering Expenses                    
Legal & Accounting  $25,000   $25,000   $25,000   $25,000 
Publishing/EDGAR  $4,000   $4,000   $4,000   $4,000 
Transfer Agent  $2,000   $2,000   $3,000   $3,000 
SEC Filing Fee  $500   $500   $500   $500 
Commissions (1)  $125,000   $250,000   $375,000   $500,000 
                     
Total Offering Expenses  $156,500   $281,500   $407,500   $532,500 
                     
Net Offering Proceeds  $1,093,500   $2,218,500   $3,342,500   $4,467,500 
                     
Operating Expenditures                    
Facilities, Furnishings and Equipment  $88,919   $180,137   $271,282   $362,500 
Legal & Accounting  $47,209   $47,209   $71,095   $95,000 
Executive officers and Consultants - Compensation  $96,219   $194,926   $293,553   $392,260 
Operations Personnel  $278,931   $565,072   $850,985   $1,137,127 
Acquisitions of Spare Parts Inventories, Engines and Aircraft  $582,222   $1,231,156   $1,855,585   $2,480,613 
Total Expenditures  $1,093,500   $2,218,500   $3,342,500   $4,467,500 

 

  (1) An aggregate maximum of 10% commission may be distributed to any SEC registered broker-dealers that may be engaged by us to assist in the distribution of the offering. We have not paid any commissions on the 367,350 shares of our common stock sold in our previous Regulation A offering.

 

The above figures represent only estimated costs. This expected use of net proceeds from this offering represents our intentions based upon our current plans and business conditions. The amounts and timing of our actual expenditures may vary significantly depending on numerous factors, including the status of and results from operations. As a result, our management will retain broad discretion over the allocation of the net proceeds from this offering. We may find it necessary or advisable to use the net proceeds from this offering for other purposes, and we will have broad discretion in the application of net proceeds from this offering. In order to implement our plan of operations for the next 12-month period, we require a minimum of $500,000 of funding from this offering. We anticipate that after the initial 12-month period we many need additional funding.

 

In the event we are not successful in selling all of the securities we would utilize any available funds raised in the following order of priority:

 

  for general administrative expenses, including legal and accounting fees and administrative support expenses incurred in connection with our reporting obligations with the SEC;
     
  for office lease expenses and office equipment;
     
  for sales and marketing; and
     
  for development of aviation capabilities and additional services.

 

We will have broad discretion in the way that we use these proceeds. See “Risk Factors—Risks Related to Ownership of our Common Stock - We have broad discretion in the use of the net proceeds from this offering, and our use of the offering proceeds may not yield a favorable return on your investment.” The Company reserves the right to change the above use of proceeds if management believes it is in the best interests of the Company.

 

- 22 -

 

 

OUR BUSINESS

 

Business Overview

 

The Company was incorporated under the laws of the State of Nevada on December 29, 2015. We are a developmental stage company principally involved in the business of developing our aircraft and aircraft spare parts sales and leasing business, and developing our aviation consultancy services. For the fiscal years ended March 31, 2021 (“FY 21”) and 2020 (“FY 20”), we did not generate any revenues. We had a stockholder’s deficit of $76,538 at September 30, 2021.

 

We plan to provide the following core aviation business services:

 

  Leasing and Sales - We plan to offer aircraft, aircraft engines and aircraft spare parts leasing and sales, and related support functions and to represent various parties as brokers, providing search and procurement services with respect to various types of commercial aircraft.
     
  Aviation Consultancy - We plan to provide consulting services to domestic, commercial vendors and governments including airline market analysis, selection of airline management teams, airline financial projections, selection of aircraft, aircraft purchase or leasing recommendations, and preparation and processing US government procurement solicitations.
     
  On-Site Maintenance and Operational Support - We plan to provide recommendation in the hiring and training of personnel needed to support aircraft maintenance operations and spare parts inventory, maintenance of aircraft records, and flight crew hiring and training.
     
  Aircraft Charter and Ferry Services – We plan to arrange for passenger air transportation with existing certificated air carrier(s) with aircraft charter services provided on an hourly, monthly or yearly basis, and to arrange for flight crews for the movement of aircraft from point of origin to final destination, for governments, and domestic, commercial vendors.

 

We expect to generate future revenue from our aviation consultancy services and aircraft, aircraft spare parts and aircraft engine sales and leasing. Our management has developed relationships with existing air carriers and companies operating government contracts with the U.S. Department of Defense, U.S. Marshals Service and the Department of Homeland Security. The Company hopes to be able to harness those relationships its team has already cultivated in order to allow its management consulting services to gain traction. The Company has developed a capability and strategy in the leasing and buying of aircraft to support businesses on commercial or government contracts requiring dry (aircraft only) or wet (aircraft with crew, maintenance services and insurance) aircraft lease operations.

 

Our Corporate History and Background

 

We were incorporated under the laws of the State of Nevada on December 29, 2015. The fiscal year-end of the Company is March 31. The Company is a development stage company focused on developing our aviation management consulting services and aircraft, aircraft engines and aircraft spare parts leasing and sales.

 

Prior to 2019, we generated revenues through the provision of IT business development consulting services on a contractual basis to private companies operating in the federal government sector. We no longer provide those services

 

In 2019, we engaged Glendale Securities, Inc., a Securities and Exchange Commission registered and FINRA member broker-dealer, as our market maker and, through an application to FINRA, our common stock was approved for quotation on the OTC Markets Group Inc. Pink Tier under the symbol “ASAV.” There can be no assurance, however, that an active trading market will ever develop in our common stock.

 

We are an emerging growth company under the JOBS Act.

 

Corporate Information

 

Our principal office is located at 11921 Freedom Drive, Suite 550, Reston, VA 20190-5667. Our telephone number is (703) 904-4315. We maintain a website at www.asi-aviation.com. Information available on our website is not incorporated by reference in and is not deemed a part of this Offering Circular.

 

- 23 -

 

 

The Market

 

The demand for new aircraft is being driven by the global demand for additional passenger and cargo capacity, which is closely tied to the GDP of both developed and emerging markets. In order to support this growth, the market for aircraft operating leases, and thus aircraft lessors, is becoming an increasingly important part of the aviation industry. Due to the impact of the ongoing, worldwide COVID-19 pandemic, however, global growth in the aviation industry has been significantly negatively affected and, although it appears that the severity and impact of the COVID-19 pandemic is beginning to recede, there is no way to gauge the long-term effect of the pandemic on the aviation industry at this time.

 

According to Boeing’s report titled “Commercial Market Outlook 2021 to 2040,” aircraft leasing is again expected to grow in both size and importance. In this report, Boeing has estimated that the number of commercial aircraft will increase from 22,510 planes in 2015 to more than 49,405 by 2040. According to the Boeing report, the global market for commercial aircraft in terms of owned or leased asset portfolio value is projected to reach US$9.54 billion by 2040. Now, that the COVID-19 pandemic is winding down, it looks as if, based on ongoing and historical industry projections, in the coming years the aviation industry will return to its historical growth patterns.

 

Our Growth Strategy

 

We plan to become a leading service provider in the aviation industry by pursuing the following objectives:

 

  Core Aviation Business Development: We plan to build out our core business of aviation consultancy services; aircraft, aircraft engine and spare parts sales and leasing; and onsite maintenance and operational support. We also expect to develop capabilities in the aircraft charter and ferry service businesses.

 

  Government Contracts: We plan to bid on various federal and state contracts for aviation services as a small business. There are opportunities set aside annually for small businesses by the U.S. federal government and by state governments. The Company would be positioned as one of only several smaller businesses in this industry, and thus would have a real chance of winning contracts as a result of its size and industry experience. We can give no assurances, of course, that we would be successful in bidding for any of these contracts.
     
  International Opportunities: We plan to explore opportunities to do business in the Middle East, South Asia, Africa, and Eastern Europe.
     
  Asset Acquisitions: We may develop our business capabilities through the acquisition of aircraft related assets such as aircraft engines and spare parts inventories, either individually or through the acquisition of all or substantially all of the assets or businesses of one or more synergistic companies operating in the aviation industry. As of the date hereof we have not identified any potential acquisitions.

 

Industry Overview

 

The COVID-19 Impact:

 

Before the global COVID-19 pandemic hit, the aviation industry had anticipated high passenger volume and aircraft fleet growth over the next decade. Over the past two years, however, with the arrival of the COVID-19 pandemic, the aviation industry entered a new environment where operating fleet capacities were drastically reduced and passenger demand declined precipitously. During the peak period of the COVID-19 pandemic, privately operated airports and related service companies faced difficulties in keeping costs down during a period when there was negligible revenue generation. The uncertain nature of the coronavirus pandemic severely marred passenger confidence, Weak passenger confidence in travel and declining economic conditions among many countries negatively impacted the total number of passengers travelling, in both the domestic and international segments. Although the severe effects of the COVID-19 pandemic seem to be lessening, with multiple coronavirus variants continuing to surface in various locations around the globe, we expect that it will take a number of years for passenger confidence and travel numbers to return to pre-pandemic levels. With expect uncertain economic conditions to remain for the foreseeable future, we believe that it will take time for the aviation industry to rebuild following the post COVID-19 crisis.

 

- 24 -

 

 

Aviation Industry:

 

The aviation industry supports the transportation of passengers and freight globally. Demand for key aviation assets, primarily commercial aircraft and jet engines, is tied to the underlying demand for passenger and freight movement. Commercial air travel and air freight activity have historically been long-term growth sectors, broadly correlated with world economic activity and expanding at a rate of one to two times the rate of global GDP growth. According to Boeing, as reported prior to start of the COVID-19 pandemic, global demand for passenger traffic was growing at an average annual rate of 4.7%, outpacing global GDP of 2.8% in the same period. According to Boeing’s new, post-COVID-19 Commercial Market Outlook 20121-2040, the number of commercial aircraft will increase from 22,510 planes in 2015 to more than 49,405 by 2040. According to the Boeing report, the global market for commercial aircraft in terms of owned or leased asset portfolio value is projected to reach US$9.54 billion by 2040.

 

Aircraft Leasing:

 

Due to the cost of aircraft acquisitions, aircraft financing complexities and airlines’ need for fleet flexibility, the role of operating lessors has grown significantly over the past twenty years. Historically, airlines owned 100% of the fleet which they operated and acquisitions were financed through traditional loans and bank debt that was collateralized with the assets themselves. Over time, however, as airlines consolidated and grew in fleet size, the need for non-traditional financing sources drove the emergence of operating leases. As a result of this, operators are now able to quickly grow a fleet while carrying fewer assets on their balance sheets. With the COVID-19 pandemic winding down, numerous airline operators have returned to pre-pandemic flight schedules with increasing numbers of aircraft returning to operation. With a return of passenger confidence, some airlines are now experiencing a shortage of flight crews and flight attendants causing some flight disruption and we expect these new conditions will continue until at least late 2022.

 

Commercial Aircraft Maintenance, Repair & Overhaul (MRO) Industry:

 

The commercial aircraft MRO market is a vital part of the commercial air transport industry. MRO is required to ensure that passenger and cargo carrying aircraft are maintained in conditions of airworthiness as defined by strict international and national regulations, which are regulated by civil aviation authorities.

 

The global commercial aircraft MRO market, pre-COVID-19, was worth $64.3 billion in 2015, according to IFC International 2016 MRO Forecast, with expected growth to $96 billion in 2025. Over the next decade, the sector was expected to experience moderate growth, driven by the rising volume of air traffic but offset by factors such as continuing financial pressures faced by airlines. However, due to the COVID-19 pandemic, there was no growth in the MRO market in 2020 and 2021 and many MROs have struggled to survive this period with some going out of business.

 

Demand for maintenance and repair services is driven by air transportation activity and the size and age of aircraft fleets. The profitability of individual companies depends on efficient operations. Large companies have an advantage in their ability to serve major customers and enjoy economies of scale in parts purchasing. Small companies can compete effectively by serving local markets and smaller customers.

 

Proposed Operations

 

Core Aviation Business Development

 

We plan to develop our core business of aviation consultancy services; aircraft, aircraft engine and spare parts sales and leasing; and onsite maintenance and operational support to fill important needs in the fragmented aircraft spare parts marketplace. We intend to build our company to create the business advantages set forth below and to provide a superior level of support to equipment or airline operators through proprietary technological enhancements.

 

We expect that our spare parts business should create various opportunities for potential revenue streams through multiple support options, which may include any or all of the following:

 

  Sales and exchange of rotable parts inventory;
     
  Sales of expendables (lighting, hoses, batteries, hardware, etc.);
     
  Sales of consumable product lines (lubricants, fluids, adhesives, sealants, etc.);
     
  Complete support of hazardous material supplies;
     
  OEM warranty support centers and distributorship opportunities;
     
  Substantial outlet for existing airline spare inventory;
     
  Full wheel and brake supply center;
     
  Support in aircraft tooling requests; and
     
  Co-operative access to exchange pools of inventory.

 

- 25 -

 

 

 

Additionally, we expect that a successful completion of this offering will enable the development of our core business and the generation of revenue through internal growth and the possible acquisition of significant value added assets or an industry related business. A successful completion of this offering should enable us to operate with the following advantages:

 

  Ability to provide immediate needs fulfillment for grounded aircraft;
     
  Elimination of costly Aircraft On Ground (“AOG”) material shipping;
     
  Reduction of risks involved with moving critically needed materials;
     
  Elimination of AOG Hazardous Material shipping;
     
  Ability to provide vertical supply chain support; and
     
  Increased operational efficiencies.

 

Government Contracts

 

The Company also plans to bid on various federal and state contracts for aviation services as a small business. There are opportunities set aside annually for small businesses by the U.S. federal government and by state governments. These larger opportunities typically have small business sub-contracting plan requirements as a mandate for bidding. The Company would be positioned as one of only several smaller businesses in this industry, and thus would have a real chance of winning those contracts as a result of its size and industry experience.

 

Opportunities in India

 

Prior to the onset of the COVID-19 pandemic, India had been one of the fastest growing aviation markets in the world. In response to this growing aviation market, several new airlines had been established in India, including Air Asia India, Air Costa, Vistara Airlines, and Air Pegasus. Although we cannot estimate what the long term impact will be on the aviation market in India as a result of the COVID-19 pandemic, we plan to continue to explore the opportunities for sales and leasing of aircraft and spare parts in India. We had previously established a base in India’s capital, and we expect to be rededicating our business development efforts in India if and when we have the financial resources to do so.

 

Marketing Strategy

 

The Company plans to implement strategic marketing campaigns focused on brand name recognition. Advertising campaigns will generally focus on print and web, utilizing aviation industry publications. Although other means of advertising will also be considered and implemented, these forms of advertising have been identified as being the most effective means for reaching potential clients in our target markets. The company has created a website as a means of advertising and as an electronic brochure for generating leads and increasing market awareness.

 

Competition

 

The market for our products and services is extremely competitive, and we face competition from a number of sources. Our competitors include aircraft service companies and other companies providing MRO services, as well as aircraft manufacturers and other companies involved in aircraft and parts sales and leasing. We believe that our experienced staff, scope of services, small business focus, availability of parts, and focus on customer service increase the competitiveness of our business. Most of our competitors, however, have substantially greater financial and other resources than are available to us. We cannot assure anyone that competitive pressures will not materially adversely affect our business, financial conditions or results of operations or that we will ever attain any competitive position within our market.

 

- 26 -

 

 

Government Regulation

 

The air transportation industry is highly regulated. Because we do not operate aircraft, we generally are not directly subject to most of these laws, such as regulations of the U.S. Department of Transportation and the FAA or their counterpart organizations in foreign countries regarding the operation of aircraft for public transportation of passengers and property. However, we are subject to government regulation in a number of respects. In addition, potential buyers and lessees of our aircrafts and parts are subject to extensive regulation under the laws of the jurisdiction in which they are registered or under which they operate. These laws govern, among other things, the registration, operation, maintenance and condition of aircraft.

 

Most of our aircraft will be registered in the jurisdictions in which the lessees of our aircraft are certified as air operators. Each aircraft registered to fly must have a Certificate of Airworthiness, which is a certificate demonstrating the aircraft’s compliance with applicable government rules and regulations and that the aircraft is considered airworthy, or a ferry flight permit, which is authorization to operate an aircraft on a specific route. Our lessees will be obligated to maintain Certificates of Airworthiness for the aircraft they lease from us.

 

We are also subject to the regulatory authority of the U.S. Department of Treasury and the U.S. Department of Commerce to the extent such authority relates to the export of aircraft for lease or sale. Also, the U.S. Department of Treasury and the U.S. Department of Commerce (through the OFAC), impose restrictions on the operation of U.S. goods, such as aircraft and engines, to and in sanctioned countries, as well as on the ability of U.S. companies and persons to conduct business with entities and individuals in those countries or on any restricted parties lists.

 

Environmental Laws

 

We are subject to a variety of federal, state and local environmental laws and regulations, including those that govern health and safety requirements, the discharge of pollutants into the air or water, the management and disposal of hazardous substances and wastes and the responsibility to investigate and clean-up contaminated sites that are or were owned, leased, operated or used by us or our predecessors. Some of these laws and regulations may require us to obtain permits, which contain terms and conditions that impose limitations on our ability to emit and discharge hazardous materials into the environment and may be periodically subject to modification, renewal and revocation by issuing authorities. Fines and penalties may be imposed for non-compliance with applicable environmental laws and regulations and the failure to have or to comply with the terms and conditions of required permits. We intend to comply with these laws and regulations.

 

Intellectual Property

 

At present, we do not have any patents, trademarks, licenses, franchises, concessions, and royalty agreements, labor contracts or other proprietary interests.

 

Description of Property

 

Currently, our principal executive offices are located at 11921 Freedom Drive, Suite 550, Reston, VA 22190. The company leases the office space from Regus, Inc. for $1,468 per month. The lease is on a month-to-month term and renews automatically.

 

Assuming sufficient funds are raised from this offering, the company plans to extend the lease agreement for a longer period.

 

Legal Proceedings

 

We are not a party to any pending legal proceedings. In the future, we may from time to time, become involved in various legal proceedings. We believe that all such litigation is routine in nature and incidental to the conduct of our business, and we believe that no such litigation will have a material adverse effect on our financial condition, cash flows or results of operations.

 

Employees

 

As of September 30, 2021 we had a total of four employees, two of whom are full-time employees. The following table sets forth the number of our full-time employees by function.

 

Function  Number of
Employees
 
Operations  1 
Sales and Marketing  1 
Total  2 

 

None of our employees belongs to a union or is a party to any collective bargaining or similar agreement. We consider our relationships with our employees to be good.

 

- 27 -

 

 

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

 

The following discussion of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes, and other financial information included in this Form 1-A.

 

Our Management’s Discussion and Analysis contains not only statements that are historical facts, but also statements that are forward-looking. Forward-looking statements are, by their very nature, uncertain and risky. These risks and uncertainties include international, national, and local general economic and market conditions; our ability to sustain, manage, or forecast growth; our ability to successfully make and integrate acquisitions; new product development and introduction; existing government regulations and changes in, or the failure to comply with, government regulations; adverse publicity; competition; the loss of significant customers or suppliers; fluctuations and difficulty in forecasting operating results; change in business strategy or development plans; business disruptions; the ability to attract and retain qualified personnel; the ability to protect technology; the risk of foreign currency exchange rate; risks related to the effects of the COVID-19 pandemic and other risks that might be detailed from time to time in our filing with the SEC.

 

Although the forward-looking statements in this Form 1-K reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by them. Consequently, and because forward-looking statements are inherently subject to risks and uncertainties, the actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. You are urged to carefully review and consider the various disclosures made by us in this report and in our other reports as we attempt to advise interested parties of the risks and factors that may affect our business, financial condition, and results of operations and prospects.

 

Overview

 

Business Overview

 

The Company was incorporated under the laws of the State of Nevada on December 29, 2015. We are a developmental stage company principally involved in the business of developing our aircraft, aircraft engines and aircraft spare parts leasing and sales operations, and aviation consultancy services. The Company will also be exploring potential acquisitions of aviation related assets such as spare parts inventories or synergistic businesses in the aviation industry and international opportunities. We cannot provide any assurance, however, that we will be able to close any acquisitions.

 

Plan of Operation

 

We believe our cash balance as reported in our financial statements is not sufficient to fund our growth plan for any period of time. In order to fully implement our plan of operations for the next 12-month period, we will need to raise a significant amount of funds in the offering. The discussion below is based on the assumption that we will be able to raise the $5 million maximum amount in the offering. After the next 12-month period we may need to raise additional financing. We do not currently have any arrangements for such additional financing.

 

We have generated minimal revenues to date and, although we expect to begin generating significant revenues during the next 12-months and to raise significant capital in the offering, there can be no assurances that we will be successful in these endeavors. This means that there is substantial doubt that we can continue as a going concern for the next 12-months unless we obtain additional capital to execute our plan of operations. We believe that the actions presently being taken to further implement our business plan and generate revenues provide the opportunity for us to continue as a going concern.

 

During the next 12 months, we expect to engage in the following business development activities:

 

  Leasing, Sales and Support – We plan to offer aircraft, aircraft engines and aircraft spare parts leasing and sales, and related support functions, and to represent various parties as brokers, providing search and procurement services with respect to various types of commercial aircraft.
     
  Aviation Consultancy – We plan to provide consulting services to domestic, commercial vendors and governments including airline market analysis, selection of airline management teams, airline financial projections, selection of aircraft, aircraft purchase or leasing recommendations, and preparation and processing US government procurement solicitations.

 

- 28 -

 

 

  On-Site Maintenance and Operational Support – We plan to provide recommendations in the hiring and training of personnel needed to support aircraft maintenance operations and spare parts inventory, maintenance of aircraft records, and flight crew hiring and training.
     
  Aircraft Charter and Ferry Services We plan to arrange for passenger air transportation with existing certificated air carrier(s) with aircraft charter services provided on an hourly, monthly or yearly basis, and to arrange for flight crews for the movement of aircraft from point of origin to final destination, for governments, and domestic, commercial vendors.
     
  IT Business Development Consulting Services – We intend to continue to offer IT Business Development, Messaging and Capture Management services on a contractual basis to private companies operating in the federal government sector.

 

Assuming we are successful in raising at least $500,000 in the offering, although there can be no assurances that we will do so, we plan to take the following steps to develop our core aviation business: (1) Finalize our selection of initial spare parts inventories/engines/aircraft for inspection, audit, appraisals, negotiations and purchase; (2) Advertise for the hiring of qualified personnel for key positions within the Company; (3) Select and build out office and spare parts facilities, including warehousing space, and acquire furnishings and equipment for daily operations; (4) Begin purchasing and receiving spare parts inventories and engines at the warehousing facilities; (5) Move acquired aircraft to designated areas in our facility where engines and all parts will be removed and shipped for repairs and overhaul, prepared and inventoried for future sales; (6) Begin marketing the spare parts and engines that we have acquired for sales and leasing to various participants in the aviation industry; (7) Begin the brokerage of aircraft for sales and/or leasing to commercial and government aviation operators; and (8) Begin paying our executives compensation as designated elsewhere in this Form 1-K.

 

More specifically, we plan to reach the following milestones during the initial 12 months following a successful completion of this Regulation A offering:

 

Milestone   Time Frame for Reaching Milestone   Estimated Milestone Expense
(assuming the $5,000,000
maximum amount is raised in
our Regulation A offering)

Acquisition of Facilities – Corporate Offices and Warehousing:

 

● Corporate Offices Lease

● Corporate Office Security Deposit

● Warehouse Facility Lease

● Warehouse Facility Security Deposit

● Insurance Liability/damage

● Utilities Electric/security monitoring

● Furnishings and Equipment

  The funding of a minimum of $500,000 is raised in this Regulation A offering.   $362,500
         
Legal and Accounting       $95,000
         
Executive Officer, Director and Consultant Payments: Initially to Dr. B. B. Sahay, James Flynn, James Silvester and L. Carl Jacobson   Monthly payments of approximately $35,000 will be made to existing executives once a minimum of $500,000 is raised in this Regulation A offering.   $392,260
         

Personnel Hiring:

 

● Buyers and Sales Representatives

● Director of Maintenance

● Director of Records

● Director of Quality Assurance

● Corp. General Staffing

● Warehouse Staffing

● Taxes and Benefits 20%

● G & A Expenses

  The funding of a minimum of $500,000 is raised in this Regulation A offering.   $1,137,127
         

Acquisition of Spare Parts Inventories:

 

● Initial Cost Functions: Travel, audit and appraisal

● Purchases: Spare parts/engines

● Purchase Related Costs: Repair and overhaul of inventory/engines; delivery

  The funding of a minimum of $500,000 is raised in this Regulation A offering.   $2,480,613

 

- 29 -

 

 

We expect that sources of funding for the above listed milestones will be derived from our new Regulation A offering, the sale of spare parts and engines, aircraft sales commissions, consulting fees, engine leasing and additional debt and/or equity financings.

 

We can provide no assurances, however, that we will be able to successfully raise sufficient funds in the offering to begin to execute these plans, to reach any of the above specified milestones, or to develop, offer and generate revenues from any of our designated business activities and development actions. Also, we cannot assure you that we will be able to raise additional capital or debt as and when needed on acceptable terms if at all.

 

We expect to generate future revenue from our aviation consultancy services and aircraft, aircraft spare parts and aircraft engine sales and leasing operations. Our management has developed relationships with existing air carriers and companies operating government contracts with the U.S. Department of Defense, U.S. Marshals Service and the Department of Homeland Security. The Company hopes to be able to harness those relationships its team has already cultivated in order to allow its management consulting services to gain traction. The Company has developed a unique capability and strategy in the leasing and buying of aircraft to support businesses on commercial or government contracts requiring dry (aircraft only) or wet (aircraft with crew, maintenance services and insurance) aircraft lease operations.

 

Our total revenues were $0 for each of the fiscal years ended March 31, 2021 and 2020 and $0 for each of the six month periods ended September 30, 2021 and 2020. Our net loss for the fiscal year ended March 31, 2021 was $120,818, as compared to a net loss of $143,416 for the fiscal year ended March 31, 2020, and our net loss for the six month period ended September 30, 2021 was $84,330, as compared to a net loss of $88,250 for the six month period ended September 30, 2020.

 

Results of Operations

 

Comparison for the six months ended September 30, 2021 and September 30, 2020

 

The following table sets forth key components of our results of operations during the six months ended September 30, 2021 and September 30, 2020.

 

   For the six months ended September 30,   Change 
   2021   2020   $   % 
Revenue  $-   $-   $-    - 
Cost of services   -    -    -    - 
Operating expenses   98,080    88,250    9,830    11%
Other Income (expenses)   (13,750)   -    (13,750)   100%
Income (loss) from operations before income taxes   84,330    88,250    (3,920)   (4)%
Tax Expense   -    -    -    - 
Net income (loss) after income tax  $84,330   $88,250   $(3,920)   (4)%

 

Operating expenses. Our operating expenses were $98,080 which represent cost of bonus, professional fees, corporate fees and taxes and other office expenses for the six months ended September 30, 2021, and $88,250 for the six months ended September 30, 2020. This increase in operating expenses was due to bonus and other expenses.

 

- 30 -

 

 

Other Income (expenses). Our other income (expenses) was $(13,750) for the six months ended September 30, 2021, and $0 for the six months ended September 30, 2020. This decrease is due to the forgiveness of the paycheck protection program loan.

 

Income (loss) before income taxes. We had net loss before income taxes of $84,330 for the six months ended September 30, 2021, compared to $(88,250) for the six months ended September 30, 2020. This decrease in loss was due to reduction in other expenses.

 

Income tax expense (benefit). Income tax expense was $0 for the six months ended September 30, 2021 and was $0 a for the six-month period ended September 30, 2020, therefore no tax benefit accrued for the both years.

 

Liquidity and Capital Resources

 

In order to implement the Company’s plan of operations for the next twelve (12) month period, we require a minimum of $500,000 of funding. We anticipate that after the next twelve (12) month period we will need additional financing.

 

As of September 30, 2021, we had cash and cash equivalents of $6,001. To date, we have financed our operations primarily through the sale of our common stock.

 

The following table provides detailed information about our net cash flow for all financial statement periods presented in this report:

 

Cash Flow

 

   For the six months ended 
   September 30, 
   2021   2020 
Net cash used in operating activities  $(83,201)  $(65,055)
Net cash provided by financing activities   25,000    8,750 
Net decrease in cash and cash equivalents   (58,201)   (56,305)
Cash at beginning of period   64,202    104,675 
Cash at end of period  $6,001   $48,370 

 

Financing Activities

 

As of six months ended September 30, 2021, the Company sold 25,000 shares of its common stock at the price of $1.00 per share for a total amount of $25,000 in its public offering pursuant to Regulation A, which terminated on July 28, 2021. The Company filed a Form 1-A (SEC File No. 024-10786) with the SEC on December 29, 2017 and the offering was qualified by the SEC on July 17, 2018. The Company’s most recent post-qualification amendment to its Form 1-A was qualified by the SEC on July 27 2020. Subsequently, since September 30, 2020, the Company has sold additional shares of common stock in its Regulation A offering. The total amount raised through the termination of this Regulation A offering on July 28, 2021 was $325,000. These funds have been used for general working capital purposes.

 

Operating Activities

 

Net cash is used to cover operating expenses such as bonus, accounting, auditing, legal, consultants, professional services, rent, telephone, licenses and taxes, which were higher in the six-month period ended September 30, 2021 compared to the same period in 2020. Currently available working capital will not be adequate to sustain our operations at our current levels from the date of this filing through the next 12 months. We expect to satisfy our working capital requirements over the next 12 months through the sale of equity or debt securities. However, we do not have any commitment from any third party to invest in our company or otherwise acquire any of our equity or debt securities. Furthermore, even if we successfully raise sufficient capital to satisfy our needs over the next twelve (12) months, in the future, we will require additional cash resources due to changed business conditions, implementation of our strategy to expand our business or other investments or acquisitions we may decide to pursue. If our own financial resources are insufficient to satisfy our capital requirements, we may seek to sell additional equity or debt securities or obtain additional credit facilities. The sale of additional equity securities could result in dilution to our stockholders. The incurrence of indebtedness would result in increased debt service obligations and could require us to agree to operating and financial covenants that would restrict our operations. Financing may not be available in amounts or on terms acceptable to us, if at all. Any failure by us to raise additional funds on terms favorable to us, or at all, could limit our ability to expand our business operations and could harm our overall business prospects.

 

- 31 -

 

 

Inflation

 

Inflation and changing prices have not had a material effect on our business and we do not expect that inflation or changing prices will materially affect our business in the foreseeable future. However, our management will closely monitor price changes in our industry and continually maintain effective cost control in operations.

 

Off Balance Sheet Arrangements

 

As of September 30, 2021, and March 31, 2021, we did not have any off-balance sheet arrangements.

 

Comparison of Fiscal Years Ended March 31, 2021 and 2020.

 

The following table sets forth key components of our results of operations during the fiscal years ended March 31, 2021 and 2020

 

   For the Year Ended March 31,   Change 
   2021   2020   $   % 
Revenue  $-   $-   $-    - 
Cost of services   -         -      
Operating expenses   120,818    143,416    22,598    16 
Loss from operations before income taxes   (120,818)   (143,416)   22,598    16 
Income tax expense (benefit)   -    -    -    - 
Net loss after income tax  $(120,818)   (143,416)   22,598    16 

 

Operating expenses. Our operating expenses for the fiscal year ended March 31, 2021 were $120,818, which represents cost of professional fees, corporate fees, bonus to our Chief Executive Officer, taxes and other office expenses, and $143,416 for the fiscal year ended March 31, 2020. The decrease, year over year, of $22,598 in operating expenses was mainly attributable to a decrease in professional fees and other expenses.

 

Loss before income taxes. We had loss before income taxes of $120,818 for the fiscal year ended March 31, 2021, and loss of $143,416 for the fiscal year ended March 31, 2020.

 

Liquidity and Capital Resources

 

In order to implement the Company’s plan of operations for the next twelve (12) month period, we require a minimum of $500,000 of funding from our Regulation A offering. We anticipate that after the next twelve (12) month period we may need additional financing.

 

As of March 31, 2021, we had cash of $64,202. To date, we have financed our operations primarily through the proceeds from the sale of our common stock and the related third party loans.

 

The following table provides detailed information about our net cash flow for all financial statement periods presented in this report:

 

Cash Flow

 

   For the Years Ended March 31, 
   2021   2020 
         
Net cash used in operating activities  $(124,223) 

(115,772

)
Net cash used in investing activities   (5,000)   

-

Net cash provided by financing activities   88,750    200,000 
Net (decrease) increase in cash   (40,473)   84,228 
Cash, beginning of year   104,675    20,447 
Cash, end of year  $64,202   $104,675 

 

- 32 -

 

 

Operating Activities

 

Net cash is used to cover operating expenses such as officer compensation, accounting, auditing, legal, consultants, professional services, rent, telephone, licenses and taxes. Currently available working capital will not be adequate to sustain our operations at our current levels from the date of this filing through the next 12 months. We expect to satisfy our working capital requirements over the next 12 months through the sale of equity or debt securities. However, we do not have any commitment from any third party to invest in our company or otherwise acquire any of our equity or debt securities. Furthermore, even if we successfully raise sufficient capital to satisfy our needs over the next 12 months, in the future, we will require additional cash resources due to changed business conditions, implementation of our strategy to expand our business or other investments or acquisitions we may decide to pursue. If our own financial resources are insufficient to satisfy our capital requirements, we may seek to sell additional equity or debt securities or obtain additional credit facilities. The sale of additional equity securities could result in dilution to our stockholders. The incurrence of indebtedness would result in increased debt service obligations and could require us to agree to operating and financial covenants that would restrict our operations. Financing may not be available in amounts or on terms acceptable to us, if at all. Any failure by us to raise additional funds on terms favorable to us, or at all, could limit our ability to expand our business operations and could harm our overall business prospects.

 

Financing Activities

 

Financing activities for the fiscal year ended March 31, 2021 were $88,750 consisting $75,000 in proceeds from the sale of common stock in our Regulation A offering and $13,750 proceeds from loans. Financing activities for the fiscal year ended March 31, 2020 were $200,000, consisting of $225,000 from the sale of common stock, $10,000 from a loan provided by a third party, and a loan repayment of $35,000 to the Company’s Chief Executive Officer.

 

Inflation

 

Inflation and changing prices have not had a material effect on our business and we do not expect that inflation or changing prices will materially affect our business in the foreseeable future. However, our management will closely monitor price changes in our industry and continually maintain effective cost control in operations.

 

Off Balance Sheet Arrangements

 

As of March 31, 2021, and March 31, 2020, we did not have any off-balance sheet arrangements.

 

Commitments and Contractual Obligations

 

The Company has entered into agreements with certain employees and contractors. The following is a complete list of those commitments as of May 18 2022.

 

Employment Agreements with Dr. B.B. Sahay and Mr. James Flynn. These agreements as currently in effect include a base annual salary of $150,000 and $120,000 for Dr. Sahay and Mr. James Flynn, respectively. Both are also eligible for up to five (5) performance-based bonuses of $30,000 for Dr. Sahay (for a total of up to $150,000) and $20,000 for Mr. Flynn (for a total of up to $100,000). These salaries and bonuses are subject to the Company meeting certain funding and performance milestones. No amounts were earned or owed under these agreements as of September 30, 2021 and March 31, 2021, excluding the CEO’s bonus. Additionally, On September 24, 2020 in a special meeting of ASI Board of Directors, the Board approved a Cash Bonus, in amount of $50,000 by Dr. Sahay, Chief Executive Officer for his valuable services, to be drawn down as and when, he deems appropriate. No amounts were earned or owed under these agreements as of September 30, 2021 and March 31, 2021, excluding the CEO’s $50,000 bonus earned in the six months ended September 30, 2021 and 2020.

 

Consulting Agreements with Dr. James L Sylvester and Dr. L. Carl Jacobsen. These engagement agreements as currently in effect include a base hourly rate of $125 for Dr. James L. Silvester, and a base hourly rate of $50 for Dr. L. Carl Jacobsen. These compensation arrangements are subject to funding and performance. No amounts were earned or owed under these agreements as of September 30, 2021 and March 31, 2021.

 

Effective August 2017, the Company entered into an agreement with independent contractor Nishant Goyal to serve as Director of Business Development in India. The Company has not determined the compensation for this position as the Company has not generated any revenues from its projects in India yet. No amounts were incurred or owed as of September 30, 2021and March 31, 2021.

 

- 33 -

 

 

On July 21, 2018, the Company entered into an agreement with Willis Kavin Ayieko an independent contractor, to serve as Analyst/Representative in Kenya for researching and advising ASI on aviation related projects developed through his networking and contacts in the aviation community within East Africa. His compensation will consist of a 10% commission of the gross earnings received by ASI for any and all projects developed by him or assigned by Mr. Flynn within East Africa. No amounts were incurred or owed as of September 30, 2021 and March 31,2021.

 

Seasonality

 

We do not believe that our business will be subject to significant seasonal variations.

 

Critical Accounting Policies

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires our management to make assumptions, estimates and judgments that affect the amounts reported, including the notes thereto, and related disclosures of commitments and contingencies, if any. We have identified certain accounting policies that are significant to the preparation of our financial statements. These accounting policies are important for an understanding of our financial condition and results of operation. Critical accounting policies are those that are most important to the portrayal of our financial condition and results of operations and require management’s difficult, subjective, or complex judgment, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods. Certain accounting estimates are particularly sensitive because of their significance to financial statements and because of the possibility that future events affecting the estimate may differ significantly from management’s current judgments. We believe the following critical accounting policies involve the most significant estimates and judgments used in the preparation of our financial statements.

 

Income Taxes

 

The Company follows FASB ASC 740, “Income Taxes,” when accounting for income taxes, which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for temporary differences between the financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. Tax years from 2017 through 2020 remain subject to examination by major tax jurisdictions.

 

Recent Accounting Pronouncements

 

In February 2016 FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes the existing guidance for lease accounting, Leases (Topic 840). ASU 2016-02 requires lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early application is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. In July 2018, the FASB issued ASU No. 2018-10, “Codification Improvements to Topic 842, Leases.” The amendments in ASU 2018-10 clarify, correct or remove inconsistencies in the guidance provided under ASU 2016-02 related to nineteen specific issues identified. Also in July 2018, the FASB issued ASU No. 2018-11 “Leases (Topic 842): Targeted Improvement” which now allows entities the option of recognizing the cumulative effect of applying the new standard as an adjustment to the opening balance of retained earnings in the year of adoption while continuing to present all prior periods under previous lease accounting guidance. The effective date and transition requirements for these two ASUs are the same as the effective date and transition requirements as ASU 2016-02. There was no effect to our financial statements upon adoption of this standard.

 

- 34 -

 

 

DIRECTORS, EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES

 

The board of directors elects our executive officers annually. A majority vote of the directors who are in office is required to fill vacancies. Each director shall be elected for the term of one year, and until his successor is elected and qualified, or until his earlier resignation or removal. Our directors and executive officers are as follows:

 

Directors, Executive Officers, Promoters and Control Persons

 

Name   Position   Age   Term of
Office
  Approximate hours
per week for
part-time
employees
Dr. Brajnandan B. Sahay   Chief Executive Officer and Chairman Director   77   December 29, 2015   40
Mr. James P. Flynn   President   74   March 23, 2016   40
Dr. James L. Silvester   Chief Financial Officer   70   March 1, 2016   8
Dr. L. Carl Jacobsen   VP Administration and Corporate Secretary   79   March 1, 2016   20

 

Dr. B.B. Sahay, CEO and Director

 

Dr. Sahay currently serves as the Chief Executive Officer and Chairman of the Board for ASI Aviation, Inc. and has served in these capacities since the Company’s founding. Dr. Sahay has served as a C-level executive at various companies, including TeleScience International, Inc. (“TII”), a privately held company which he founded in 1987 and where he served as President and CEO from 1987 to 2008 when TII became inactive. Dr. Sahay was successful in growing TII in the area of Healthcare and IT services in government contracting, competing for set-aside contracts with federal and state government agencies. Prior to establishing TII, Dr. Sahay held management and advisory positions with CONTEL (Continental Telephone Corporation), IBM’s Satellite Business Systems, MCI (Microwave Communications Incorporated) and MITRE Corporation. As a member of the GSA’s Federal Telecommunications System (FTS 2000) management evaluation team, he participated in awarding one of the largest civilian contracts in U.S. history to AT&T and Sprint. He earned a Ph.D. in Control Systems, Science, and Engineering from Washington University in St. Louis, Missouri.

 

Mr. James P. Flynn, President

 

Mr. Flynn has served as the President of ASI Aviation, Inc. since March 23, 2016. Mr. Flynn gained extensive experience in aircraft sales and leasing, aircraft acquisitions, operations, logistics and maintenance support, including spare parts sales for regional and commercial transport aircraft while serving as President of Aviation Enterprises, Inc. (“AEI”). In this capacity, he oversaw the daily operations of every aspect of AEI’s operations from August 1979 to December 2015. Mr. Flynn will continue his leadership role and oversee all aviation services operations for ASI Aviation. Mr. Flynn has more than 30 years’ experience in the aviation industry and managed several aviation ventures including a certificated Air Carrier operating under FAR Part 135 (aircraft operations with under 30 seats) and certificated Air Carrier operating under FAR 121 (aircraft operations with over 30 seats). His experience includes commercial and government aircraft programs both domestic and international, valued in the multimillions of dollars. He also has a thorough understanding of all aspects of the aircraft industry and strong financial and technical skills pertaining to developing enterprises in this space. From 2010 to 2013 he served as a full-time consultant to the CEO of Ryan International Airlines (“Ryan”), a certificated FAR 121 air carrier. Mr. Flynn advised Ryan in areas of crewing, staffing, aircraft selection and acquisition, and operational and maintenance issues related to commercial and government contracts supporting domestic and international transportation of illegal immigrate aliens and federal prisoners. From March 2013 to his resignation on December 31, 2016, he served as a managing partner of Justice Aviation, LLC (“Justice”). At Justice, he had overall responsibility for staffing, spare parts and engine support for the operation of three MD-83 aircraft supporting the Federal Prisoner Transportation System. Mr. Flynn held an Airline Transport Pilot License and was issued a Commercial License with Instrument rating and Flight Instructor Licenses from Beacon Flight School, Clinton, MD.

 

Dr. James L. Silvester, Chief Financial Officer

 

Dr. Silvester has served as the Chief Financial Officer of ASI Aviation, Inc. since March 1, 2016. For the past 26 years, Dr. Silvester has operated his own consulting firm, Dominion Business Systems, Inc., specializing in turnarounds, IPO’s, private placements, and corporate debt negotiations, and has served as an expert witness in many courts. He has served three federal courts in the mid-Atlantic region as an approved consultant working with attorneys, banks, commercial finance companies, and broker/dealers, covering diverse industries and businesses in the $2 to $70 million per annum revenue range. He has also worked with the SEC and FINRA and many of their top-level employees in assisting pre-IPO companies to enter the public marketplace. He holds four degrees from accredited universities, including a PhD in Business Administration. He has also authored several business books.

 

- 35 -

 

 

Dr. L. Carl Jacobsen, VP Administration and Corporate Secretary

 

Dr. Jacobsen has served as the Vice President of Administration and Corporate Secretary of ASI Aviation, Inc. since March 1, 2016. Dr. Jacobsen received his Ph.D. in Linguistics from UCLA in 1979 and his J.D. from Antioch School of Law in 1984, and is admitted to practice law in the District of Columbia. Since 2010 Dr. Jacobsen has worked as a self-employed reviewer of litigation documents with a specialty in anti-trust matters, including mergers, acquisitions, and divestitures.

 

Term of Office

 

The term of office of each director expires at our annual meeting of stockholders or until their successors are duly elected and qualified.

 

Code of Ethics Policy

 

We have not yet adopted a code of ethics that applies to our principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions.

 

Board Composition

 

Our Bylaws provide that the Board of Directors shall consist of no more than one (1) director. Each director of the Company serves until his successor is elected and qualified, subject to removal by the Company’s majority shareholders. Each officer shall hold their offices for such terms and shall exercise such powers and perform such duties as shall be determined by the Board of Directors, and shall hold his office until his successor is elected and qualified, or until his earlier resignation or removal. Currently, Dr. B.B. Sahay is our sole director.

 

Potential Conflicts of Interest

 

Since we do not have an audit or compensation committee comprised of independent directors, the functions that would have been performed by such committees are performed by our director. Thus, there is a potential conflict of interest in that our sole director and officers have the authority to determine issues concerning management compensation and audit issues that may affect management decisions. We are not aware of any other conflicts of interest with any of our executives or director.

 

Director Independence

 

Our board of directors has undertaken a review of the independence of each director and considered whether any director has a material relationship with us that could compromise his ability to exercise independent judgment in carrying out his responsibilities. As a result of this review, our board of directors determined that our sole director, Dr. B.B. Sahay, do not meet the independence requirements, according to the applicable rules and regulations of the SEC.

 

Corporate Governance

 

There have been no changes in any state law or other procedures by which security holders may recommend nominees to our board of directors. In addition to having no nominating committee for that purpose, we currently have no specific audit committee and no audit committee financial expert. Based on the fact that our current business affairs are simple, any such committees would be excessive and beyond the scope of our business and needs as they are presently constituted.

 

Family Relationships

 

None.

 

Involvement in Certain Legal Proceedings

 

Except as set forth below, no officer, director, or persons nominated for such positions, promoter or significant employee has been involved in the last ten years in any of the following:

 

● Any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time,

 

- 36 -

 

 

● Any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses),

 

● Being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting her involvement in any type of business, securities or banking activities,

 

● Being found by a court of competent jurisdiction (in a civil action), the SEC or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated.

 

● Having any government agency, administrative agency, or administrative court impose an administrative finding, order, decree, or sanction against them as a result of their involvement in any type of business, securities, or banking activity.

 

● Being the subject of a pending administrative proceeding related to their involvement in any type of business, securities, or banking activity.

 

● Having any administrative proceeding been threatened against you related to their involvement in any type of business, securities, or banking activity.

 

COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS

 

The following table sets forth information concerning the annual and long-term compensation awarded to, earned by, or paid to the named executive officers and directors for all services rendered in all capacities to our company for the fiscal year ended March 31, 2021.

 

Name:  Year End:  Salary, Fees, Commissions
($):
   Bonus
($):
   Stock Awards
($):
   Stock Options
($):
   All Other Compensation
($):
   Total
($):
 
Dr. B.B. Sahay
CEO, Director
  Mar. 31, 2021   -    50,000    -    -    -    50,000 
Mr. James P. Flynn
President
  Mar. 31, 2021   -    -    -    -    -    - 
Dr. James Silvester
CFO
  Mar. 31, 2021   -    -    -    -    -    - 
Dr. L. Carl Jacobsen
VP Administration & Corporate Secretary
  Mar. 31, 2021   -    -    -    -    -    - 

 

We will begin to pay compensation to our named executive officers in the amounts set forth below under “Employment Agreements” only if and when we close this offering with a minimum amount of $500,000.

 

We may elect to award a cash bonus to key employees, directors, officers and consultants based on meeting individual and corporate planned objectives.

 

Employment Agreements:

 

We have entered into employment agreements with Dr. B.B. Sahay, our director and CEO, and Mr. James Flynn, our President. These employment agreements provide for at-will employment and set forth each officer or director’s initial equity or stock option grant amount and eligibility for employee benefits. The key terms of these employment agreements are described below and copies of the agreements are attached hereto as exhibits and incorporated herein by reference. Other than the employment agreements described below, we have not entered into any arrangements providing for payments or benefits in connection with the resignation, severance, retirement or other termination of any of our named executive officers, changes in their compensation or a change in control. Both Dr. Sahay and Mr. Flynn have voluntarily waived both the receipt and/or accrual of any compensation prior to the consummation of this initial public offering.

 

- 37 -

 

 

Dr. B.B. Sahay Employment Agreement

 

The employment agreement with our Chairman and CEO, Dr. B.B. Sahay became effective January 1, 2016 and constitutes “at will” employment. The employment agreement may be terminated at any time with or without cause by the Executive or the Company.

 

Under the employment agreement, Dr. Sahay will receive an initial base compensation of $150,000 annually following the consummation of this offering, assuming that our common stock is then publicly traded and listed, with a material public float and trading volume as determined in good faith by our board of directors. Dr. Sahay will also be eligible to receive up to five (5) performance bonuses per year in the amount of $30,000 each, for a total of $150,000 annually. These bonuses will be payable with respect to the completion of each fiscal quarter, with one payable at the end of the fiscal year. The criteria for the payment of the performance bonuses will be based on the achievement of certain objectives as mutually agreed by the executive and the Company. No performance bonuses shall be earned during the period of the executive’s employment prior to the effectiveness of this public offering. The executive will also be eligible for all customary benefits available to senior executives of the Company. Although the performance bonus achievements have not been fully met, on November 11, 2019, in a special meeting of the Company’s Board of Directors, the Board approved a cash bonus in amount of $50,000 to our Chief Executive Officer for his services, all of which was drawn down as of September 30, 2020. Additionally, On September 24, 2020, in a special meeting of our Board of Directors, the Board approved an additional cash bonus in the amount of $50,000 to Dr. Sahay, Chief Executive Officer, for his services to the Company, to be drawn down as and when, he deems appropriate. As of September 30, 2021, $25,050 of the $50,000 bonus granted had been drawn down and the remaining $24,950 has been accrued for.

 

Dr. Sahay has agreed that the base compensation and performance bonuses agreed to in his employment agreement with us will not begin to accrue and be payable until the consummation of this offering. We will begin to pay Dr. Sahay his base compensation only if and when we raise a minimum of $500,000 in this offering.

 

Dr. Sahay is also subject to confidentiality restrictions that protect the Company’s proprietary information, developments and other intellectual property following termination of employment.

 

James Flynn Executive Employment Agreement

 

The executive employment agreement with our President, Mr. James Flynn, (attached hereto as Exhibit 6.4) became effective February 1, 2016, has no specific term and constitutes “at will” employment. The employment agreement may be terminated at any time with or without cause by the Executive or the Company.

 

Under the employment agreement, Mr. Flynn will receive an initial base compensation of $120,000 annually following the consummation of this offering, assuming that our common stock is then publicly traded and listed, with a material public float and trading volume as determined in good faith by our board of directors. Mr. Flynn will also be eligible to receive up to five (5) performance bonuses per year in the amount of $20,000 each, for a total of $100,000 annually. These bonuses will be payable with respect to the completion of each fiscal quarter, with one payable at the end of the fiscal year. The criteria for the payment of the performance bonuses will be based on the achievement of certain objectives as mutually agreed by the executive and the Company. No performance bonuses shall be earned during the period of the executive’s employment prior to the effectiveness of this public offering. The executive will also be eligible for all customary benefits available to senior executives of the Company.

 

Mr. Flynn has signed an affidavit of understanding with us (attached hereto as Exhibit 6.5) making it clear that the base compensation and performance bonuses agreed to in his employment agreement with us will not begin to accrue and be payable until the consummation of this offering. We will begin to pay Mr. Flynn only if and when we raise a minimum of $500,000 in this offering.

 

Mr. Flynn is also subject to confidentiality restrictions that protect the Company’s proprietary information, developments and other intellectual property following termination of employment.

 

Contractor Engagement Agreements

 

We have engaged the remainder of our executive staff – Dr. James L. Silvester, Dr. L. Carl Jacobsen and Mr. Nishant Goyal – as independent contractors. The terms of these agreements all provided for a base hourly compensation and repayment of certain expenses, as well as non-compete and non-solicitation provisions, and allow each to engage in outside business that does not constitute a conflict of interest with us. As of the date of this Offering Circular none of these contractors has earned, accrued, or been paid any compensation. We will begin to pay these contractors only if and when we raise a minimum of $500,000 in this offering.

 

Other than the terms described below, we have not entered into any agreements or arrangements with any of the officers.

 

James L. Silvester Engagement Agreement

 

The engagement agreement with our Chief Financial Officer, Dr. James L. Silvester, became effective March 1, 2016. Under this agreement, Dr. Silvester will be paid a fee of $125 per hour starting once the Company has raised a minimum of $500,000 in this or another offering. It is expected that Mr. Silvester will work for the Company approximately eight (8) hours per week.

 

Dr. Carl Jacobsen Engagement Agreement

 

The engagement agreement with our Vice president, Administration, Dr. Carl Jacobsen, became effective March 1, 2016. Under this agreement, Dr. Jacobsen will be paid a fee of $50 per hour starting once the Company has raised a minimum of $500,000 in this or another offering.

 

- 38 -

 

 

We may elect to award a cash bonus to key employees, directors, officers and consultants based on meeting individual and corporate planned objectives.

 

Director Compensation

 

We do not have any standard arrangements by which directors are compensated for any services provided as a director. No cash has been paid to the directors in their capacity as such.

 

SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITYHOLDERS

 

The following tables set forth the ownership, as of the date of this Offering Circular, of our common stock by each person known by us to be the beneficial owner of more than 5% of our outstanding common stock, our directors, and our executive officers and directors as a group. To the best of our knowledge, the persons named have sole voting and investment power with respect to such shares, except as otherwise noted. There are no pending or anticipated arrangements that may cause a change in control.

 

The information presented below regarding beneficial ownership of our voting securities has been presented in accordance with the rules of the SEC and is not necessarily indicative of ownership for any other purpose. Under these rules, a person is deemed to be a “beneficial owner” of a security if that person has or shares the power to vote or direct the voting of the security or the power to dispose or direct the disposition of the security. A person is deemed to own beneficially any security as to which such person has the right to acquire sole or shared voting or investment power within 60 days through the conversion or exercise of any convertible security, warrant, option or other right. More than one person may be deemed to be a beneficial owner of the same securities. The percentage of beneficial ownership by any person as of a particular date is calculated by dividing the number of shares beneficially owned by such person, which includes the number of shares as to which such person has the right to acquire voting or investment power within 60 days, by the sum of the number of shares outstanding as of such date plus the number of shares as to which such person has the right to acquire voting or investment power within 60 days. Consequently, the denominator used for calculating such percentage may be different for each beneficial owner. Except as otherwise indicated below and under applicable community property laws, we believe that the beneficial owners of our common stock listed below have sole voting and investment power with respect to the shares shown. The business address of the shareholders is 11921 Freedom Drive, Suite 550, Reston, VA 20190-5667.

 

Name  Shares   Percentage
Ownership
 
Dr. B.B. Sahay (1)   9,000,000    85.98%
Mr. James P. Flynn   100    0.001%
Dr. James L. Silvester (2)   100    0.001%
Dr. L. Carl Jacobsen   750    0.007%
           
All Directors and Officers as a group (4 persons)   9,000,950    86.07%

 

  (1) Dr. B.B. Sahay currently owns 9,000,000 shares of common stock. Dr. Sahay originally acquired 10,000,000 founder’s shares for which he paid $1,000. In FY 20, he gifted 1,000,000 of his shares.
     
  (2) On November 26, 2019, the Company signed a restricted stock unit agreement to issue to the Company’s Chief Financial Officer 500,000 restricted stock units. Each restricted stock unit represents the right to receive one share of the Company’s common stock. The restricted stock units are eligible for vesting only upon the achievement of a performance goal set forth in the agreement, i.e., the consummation of the Company’s first acquisition. No compensation cost was recorded as the share grant is contingent.

 

This table is based upon information derived from our stock records. Unless otherwise indicated in the footnotes to this table and subject to community property laws where applicable, each of the shareholders named in this table has sole or shared voting and investment power with respect to the shares indicated as beneficially owned. Except as set forth above, applicable percentages are based upon 10,467,350 shares of common stock outstanding as of the date of this Offering Circular.

 

INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS

 

The following includes a summary of transactions since the beginning of our 2020 fiscal year, or any currently proposed transaction, in which we were or are to be a participant and the amount involved exceeded or exceeds the lesser of $120,000 and one percent of the average of the Company’s total assets at year end for the last two completed fiscal years, and in which any related person had or will have a direct or indirect material interest (other than compensation described under “Compensation of Directors and Executive Officers”). We believe the terms obtained or consideration that we paid or received, as applicable, in connection with the transactions described below were comparable to terms available or the amounts that would be paid or received, as applicable, in arm’s-length transactions.

 

On November 26, 2019, the Company signed a restricted stock unit agreement to issue to the Company’s Chief Financial Officer, James Silvester, 500,000 restricted stock units. Each restricted stock unit represents the right to receive one share of the Company’s common stock. The restricted stock units are eligible for vesting only upon the achievement of a performance goal set forth in the agreement, i.e., the consummation of the Company’s first acquisition. No compensation cost was recorded as the share grant is contingent.

 

- 39 -

 

 

Our board of directors conducts an appropriate review of and oversees all related party transactions on a continuing basis and reviews potential conflict of interest situations where appropriate. Our board of directors has not adopted formal standards to apply when it reviews, approves or ratifies any related party transaction. However, our board of directors generally reviews related party transactions to ensure that they are fair and reasonable to our company and on terms comparable to those reasonably expected to be agreed to with independent third parties for the same goods and/or services at the time they are authorized by our board of directors.

 

Director Independence

 

SEC regulations define the related person transactions that require disclosure to include any transaction, arrangement or relationship in which the amount involved exceeds the lesser of $120,000 or one percent of the average of the Company’s total assets at year end for the last two completed fiscal years in which we were or are to be a participant and in which a related person had or will have a direct or indirect material interest. A related person is: (i) an executive officer, director or director nominee of the Company, (ii) a beneficial owner of more than 5% of our common stock, (iii) an immediate family member of an executive officer, director or director nominee or beneficial owner of more than 5% of our common stock, or (iv) any entity that is owned or controlled by any of the foregoing persons or in which any of the foregoing persons has a substantial ownership interest or control.

 

The registrant’s board of directors consists of Dr. B.B. Sahay. Dr. Sahay is not independent as such term is defined by a national securities exchange or an inter-dealer quotation system.

 

Advances from / to Related Parties

 

During the fiscal year ended March 31, 2020, the CEO provided to the Company and was repaid a $10,250 loan.

 

There is no formal written commitment for continued support of the Company by Dr. Sahay.

 

- 40 -

 

 

SECURITIES BEING OFFERED

 

We are offering 10,000,000 shares of our common stock, including up to 5,000,000 bonus shares, pursuant to this Offering Circular. The following summary is a description of the material terms of our capital stock and is not complete. You should also refer to our amended and restated certificate of incorporation, as amended, and our bylaws, which are included as exhibits to the offering statement of which this Offering Circular forms a part.

 

The following description as a summary of the material terms of the provisions of our Articles of Incorporation and Bylaws. The Articles of Incorporation and Bylaws have been filed as exhibits to the registration statement of which this Offering Circular is a part.

 

Common Stock

 

We are authorized to issue 100,000,000 shares of common stock with $0.0001 par value per share. As of the date of this offering circular, there were 10,467,350 shares of common stock issued and outstanding.

 

Each share of common stock entitles the holder to one vote, either in person or by proxy, at meetings of shareholders. The holders are not permitted to vote their shares cumulatively. Accordingly, the shareholders of our common stock who hold, in the aggregate, more than fifty percent of the total voting rights can elect all of our directors and, in such event, the holders of the remaining minority shares will not be able to elect any of such directors. The vote of the holders of a majority of the issued and outstanding shares of common stock entitled to vote thereon is sufficient to authorize, affirm, ratify or consent to such act or action, except as otherwise provided by law.

 

Holders of common stock are entitled to receive ratably such dividends, if any, as may be declared by the Board of Directors out of funds legally available. We have not paid any dividends since our inception, and we presently anticipate that all earnings, if any, will be retained for development of our business. Any future disposition of dividends will be at the discretion of our Board of Directors and will depend upon, among other things, our future earnings, operating and financial condition, capital requirements, and other factors.

 

Holders of our common stock have no preemptive rights or other subscription rights, conversion rights, redemption or sinking fund provisions. Upon our liquidation, dissolution or windup, the holders of our common stock will be entitled to share ratably in the net assets legally available for distribution to shareholders after the payment of all of our debts and other liabilities. There are not any provisions in our Articles of Incorporation or our Bylaws that would prevent or delay change in our control.

 

Our Articles of Incorporation do not provide for the issuance of any other class of shares.

 

VStock Transfer, LLC, located at 18 Lafayette Pl, Woodmere, NY 11598, is the registrant’s transfer agent.

 

Dividend Policy

 

We have never paid or declared any cash dividends on our common stock, and we do not anticipate paying any cash dividends on our common stock in the foreseeable future. We intend to retain all available funds and any future earnings to fund the development and expansion of our business. Any future determination to pay dividends will be at the discretion of our board of directors and will depend upon a number of factors, including our results of operations, financial condition, future prospects, contractual restrictions, restrictions imposed by applicable law and other factors our board of directors deems relevant.

 

Share Eligible for Future Sale

 

Prior to this offering, there was no public market for our common stock. We cannot predict the effect, if any, that market sales of shares of our common stock or the availability of shares of our common stock for sale will have on the market price of our common stock. Sales of substantial amounts of our common stock in the public market could adversely affect the market prices of our common stock and could impair our future ability to raise capital through the sale of our equity securities.

 

We have outstanding an aggregate of 10,467,350 shares of our common stock, 367,350 of which were sold in our previous Regulation A offering and are freely tradable. The 5,000,000 shares registered in this offering will be freely tradable without restriction or further registration under the Securities Act, unless those shares are purchased by affiliates, as that term is defined in Rule 144 under the Securities Act.

 

Of the remaining 10,000,000 shares of common stock outstanding after this offering, 9,100,000 are restricted as a result of securities laws and 1,000,000 are free trading as a result of having been gifted by the majority stockholder to unaffiliated third parties. Restricted securities may be sold in the public market only if they have been registered or if they qualify for an exemption from registration under Rule 144 under the Securities Act.

 

- 41 -

 

 

Rule 144

 

A person who has beneficially owned restricted shares of common stock for at least six months would be entitled to sell their shares provided that (1) such person is not deemed to have been one of our affiliates at the time of, or at any time during the three months preceding, a sale and (2) we are subject to the Exchange Act periodic reporting requirements for at least three months before the sale. Persons who have beneficially owned restricted shares of common stock for at least six months but who are our affiliates at the time of, or any time during the three months preceding, a sale, would be subject to additional restrictions, by which such person would be entitled to sell within any three-month period a number of shares that does not exceed the greater of either of the following:

 

  1% of the number of shares then outstanding, which will equal 150,000 shares of common stock immediately after this offering, assuming all 5,000,000 shares being offered are sold; and
     
  the average weekly trading volume of the shares of common stock during the four calendar weeks preceding the filing of a notice on Form 144 with respect to the sale.

 

Sales under Rule 144 are also limited by manner of sale provisions and notice requirements and to the availability of current public information about us.

 

Penny Stock Considerations

 

Our shares are “penny stocks”, as that term is generally defined in the Securities Exchange Act to mean equity securities with a price of less than $5.00. Thus, our shares will be subject to rules that impose sales practice and disclosure requirements on broker-dealers who engage in certain transactions involving a penny stock. Under the penny stock regulations, a broker-dealer selling a penny stock to anyone other than an established customer must make a special suitability determination regarding the purchaser and must receive the purchaser’s written consent to the transaction prior to the sale, unless the broker-dealer is otherwise exempt.

 

In addition, under the penny stock regulations, the broker-dealer is required to:

 

  - Deliver, prior to any transaction involving a penny stock, a disclosure schedule prepared by the SEC relating to the penny stock market, unless the broker-dealer or the transaction is otherwise exempt;
     
  - Disclose commissions payable to the broker-dealer and our registered representatives and current bid and offer quotations for the securities;
     
  - Send monthly statements disclosing recent price information pertaining to the penny stock held in a customer’s account, the account’s value, and information regarding the limited market in penny stocks; and
     
  - Make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser’s written agreement to the transaction, prior to conducting any penny stock transaction in the customer’s account.

 

Because of these regulations, broker-dealers may encounter difficulties in their attempt to sell shares of our Common Stock, which may affect the ability of selling shareholders or other holders to sell their shares in the secondary market, and have the effect of reducing the level of trading activity in the secondary market. These additional sales practice and disclosure requirements could impede the sale of our securities, if our securities become publicly traded. In addition, the liquidity for our securities may be decreased, with a corresponding decrease in the price of our securities. Our shares in all probability will be subject to such penny stock rules and our shareholders will, in all likelihood, find it difficult to sell their securities.

 

Transfer Agent

 

The transfer agent and registrar for our common stock is VStock Transfer, LLC. The transfer agent’s address is 18 Lafayette Place, Woodmere, New York 11598 and telephone number is (212) 828-8436.

 

- 42 -

 

 

LEGAL MATTERS

 

The validity of the common stock offered hereby has been passed upon for us by Sherman & Howard, local Nevada legal counsel.

 

EXPERTS

 

The financial statements of the Company included in this Offering Circular have been audited by Friedman LLP, an independent registered public accounting firm, as stated in their reports appearing herein. Such financial statements of the Company have been so included in reliance upon the reports of such firm given upon their authority as experts in accounting and auditing.

 

WHERE YOU CAN FIND MORE INFORMATION

 

We have filed with the SEC an offering statement on Form 1-A under the Securities Act with respect to the common stock offered by this Offering Circular. This Offering Circular does not contain all of the information included in the offering statement, portions of which are omitted as permitted by the rules and regulations of the SEC. For further information pertaining to us and the common stock to be sold in this offering, you should refer to the offering statement and its exhibits. Whenever we make reference in this Offering Circular to any of our contracts, agreements or other documents, the references are not necessarily complete, and you should refer to the exhibits attached to the offering statement for copies of the actual contract, agreement or other document filed as an exhibit to the offering statement or such other document, each such statement being qualified in all respects by such reference. We are subject to the informational requirements of Tier 2 of Regulation A and are required to file annual reports, semi-annual reports, current reports and other information with the SEC. We anticipate making these documents publicly available, free of charge, on our website as soon as reasonably practicable after filing such documents with the SEC.

 

You can read the offering statement and our filings with the SEC on the Internet at the SEC’s website at www.sec.gov.

 

- 43 -

 

 

ASI Aviation, Inc.

Condensed Financial Statements

For the six months ended September 30, 2021 and 2020

(Unaudited)

 

CONTENTS

 

  Page
   
Condensed financial statements (Unaudited)  
Condensed balance sheets as of September 30, 2021 and March 31, 2021 F-2
Condensed statements of operations for the six months ended September 30, 2021and 2020 F-3
Condensed statements of stockholders’ deficit for the six months ended September 30, 2021 and 2020 F-4
Condensed statements of cash flows for the six months ended September 30, 2021 and 2020 F-5
Notes to unaudited condensed financial statements F-6

 

F-1

 

 

ASI AVIATION, INC.

CONDENSED BALANCE SHEETS

(Unaudited)

 

   September 30, 2021   March 31, 2021 
ASSETS        
Current Assets:          
Cash  $6,001   $64,202 
Loan receivable   5,000    5,000 
Prepaid and other current assets   1,998    2,007 
Total Current Assets   12,999    71,209 
           
Total Assets  $12,999   $71,209 
           
LIABILITIES AND STOCKHOLDERS’ DEFICIT          
           
Current Liabilities:          
Accounts payable  $53,877   $60,217 
Accrued expenses   25,660    4,450 
Loans from Cares Act, current portion   -    6,302 
Total Current Liabilities:   79,537    70,969 
Loans   10,000    10,000 
Loans from Cares Act, long term   -    7,448 
Total Liabilities   89,537    88,417 
           
Commitments and Contingencies          
           
Stockholders’ Deficit:          
Common stock, par value $0.0001, 100,000,000 Authorized, 10,367,350 and 10,342,350 issued and outstanding as of September 30, 2021 and March 31, 2021, respectively   1,038    1,035 
Additional paid in capital   367,312    342,315 
Accumulated deficit   (444,888)   (360,558)
Total Stockholders’ Deficit   (76,538)   (17,208)
           
Total Liabilities and Stockholders’ Deficit  $12,999   $71,209 

 

The accompanying notes are an integral part of these unaudited condensed financial statements

 

F-2

 

 

ASI AVIATION, INC.

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

 

   For the six months ended 
   September 30, 2021   September 30, 2020 
Revenue  $-   $- 
Cost of services   -    - 
Gross profit   -    - 
           
Operating expenses:          
Professional fees   30,086    27,317 
Other expenses   67,994    60,933 
Total operating expenses   98,080    88,250 
Other Income (expenses):          
Paycheck protection program loan forgiveness   (13,750)   - 
Net loss before taxes   (84,330)   (88,250)
Tax expense   -    - 
Net loss  $(84,330)  $(88,250)
           
BASIC AND DILUTED LOSS PER COMMON SHARE  $(0.01)  $(0.01)
WEIGHTED AVERAGE NUMBER OF COMMON STOCK OUTSTANDING (BASIC AND DILUTED)   10,355,125    10,267,350 

 

The accompanying notes are an integral part of these unaudited condensed financial statements

 

F-3

 

 

ASI AVIATION, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)

(Unaudited)

 

   Six Months Ended September 30, 2021         
                 
   Common stock   Additional paid   Accumulated   Total Stockholders’ 
   Shares   Amount   in capital   deficit   deficit 
                     
Beginning balance, April 1, 2021   10,342,350   $1,035   $342,315   $(360,558)  $(17,208)
Issuance of common stock   25,000    3    24,997    -    25,000 
Net loss   -    -    -    (84,330)   (84,330)
Ending balance, September 30, 2021   10,367,350   $1,038   $367,312   $(444,888)  $(76,538)

 

   Six Months Ended September 30, 2020         
             
   Common stock   Additional paid   Accumulated   Total Stockholders’ 
   Shares   Amount   in capital   deficit   deficit 
Beginning balance, April 1, 2020   10,267,350   $1,027   $267,323   $(239,740)  $28,610 
Net loss   -    -    -    (88,250)   (88,250)
Ending balance, September 30, 2020   10,267,350   $1,027   $267,323   $(327,990)  $(59,640)

 

The accompanying notes are an integral part of these unaudited condensed financial statements

 

F-4

 

 

ASI AVIATION, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

 

   September 30, 2021   September 30, 2020 
Cash Flows From Operating Activities:          
Net loss  $(84,330)  $(88,250)
Changes in operating assets and liabilities:          
Prepaid and other current assets   9    - 
Accounts payable and accrued expenses   14,870    23,195 
Repayment of loans   (13,750)   - 
Net cash used in operating activities   (83,201)   (65,055)
           
           
Cash Flows From Financing Activities:          
Proceeds from loans   -    13,750 
Repayments of loan receivables   -    (5,000)
Proceeds from sale of common stock   25,000    - 
Net cash provided by financing activities   25,000    8,750 
           
Net decrease in cash   (58,201)   (56,305)
Cash, beginning of period   64,202    104,675 
Cash, end of period  $6,001   $48,370 
           
Supplemental disclosure of cash flow information:          
Cash paid for interest  $600   $1,134 
Cash paid for taxes  $-   $- 

 

The accompanying notes are an integral part of these unaudited condensed financial statements

 

F-5

 

 

ASI AVIATION, INC.

Notes to Condensed Financial Statements

(Unaudited)

For the six months ended September 30, 2021 and 2020

 

Note 1. Organization, History and Business

 

ASI Aviation, Inc. is a Nevada corporation (the “Company”), incorporated under the laws of the State of Nevada on December 29, 2015. The fiscal year-end of the Company is March 31. The business plan of the Company is to develop an aircraft and aircraft spare parts sales and leasing operation, as well as providing aviation management and business development consulting services to private and public companies/governments agencies. Also, the company plans to bid on the US federal and State government contracts for aviation services to expand its business in aviation sector. The Company will also be exploring potential acquisitions in the aviation industry.

 

The Jet X Aerospace Agreement

 

On February 10, 2020, ASI Aviation, Inc. (the “Company”), Jet X Aerospace LLC (“Jet X”) and David S. Carver, Jayson Carver and Demetri Xydas (the “Seller Members”) entered into an asset purchase agreement (the “Agreement”) pursuant to the terms of which the Company has agreed to acquire (the “Acquisition”), subject to certain conditions, substantially all of the assets of Jet X. This agreement has since been expired in March 25, 2021, ASI Aviation, Inc. (the “Company”), Jet X Aerospace LLC (“Jet X”) and David S. Carver, Jayson Carver and Demetri Xydas (the “Seller Members”) entered into a business and asset purchase agreement (the “Agreement”) pursuant to the terms of which the Company has agreed to acquire (the “Acquisition”), subject to certain conditions, substantially all of the assets of Jet X.

 

Jet X is in the business of providing customer support, solutions and management to the aviation industry including, spare parts inventory procurement and management, purchase support and supply chain management, component repair and vendor management, maintenance support for light, scheduled and heavy checks, power plant management and support and aviation industry consulting.

 

The Company has agreed to acquire all of the business assets of Jet X, subject to certain exclusions, and to assume certain of the obligations of Jet X relating to the to-be-acquired assets. The Company has agreed to pay a purchase price of $3,000,000 for the assets, consisting of the settlement and satisfaction of outstanding Jet X debt in the amount of $900,000 and the issuance to Jet X or its designees of 2,100,000 restricted shares (subject to a spare parts inventory appraisal of more than $2.8 million) of the Company’s common stock (these two components together, the “Purchase Price Consideration”). The Seller Members will also enter into five-year employment agreements with the Company whereby the Seller Members would become employees of the Company to manage and develop the Jet X business on behalf of the Company.

 

The closing of the Acquisition is subject to the following substantive conditions, among others, which must be met within 30 days of the signing of the Agreement, or August 25, 2021. This deadline, however, may be extended by the mutual consent of the Company and Jet X:

 

● Prior to the closing, the Company shall have completed a registered or qualified (Regulation A) public offering or a private placement or bank financing (the “Financing”) and shall have received equity and/or debt funding, from the public offering or otherwise, in the Financing in the amount of at least $1,200,000;

 

● The Company shall have completed to its satisfaction its due diligence review of Jet X and its assets; and

 

● Jet X and Heartland Bank and Trust shall have entered into a comprehensive settlement and release agreement pursuant to which Heartland Bank and Trust shall have agreed to cancel all Jet X’s debt owed to it and forever release Jet X from any and all claims relating to such debt for consideration and payment received.

 

Should the Company fail to meet the Financing condition by August 25, 2021, the Company may propose to modify the composition of the Purchase Price Consideration by adjusting the debt payment/cash to stock ratios and/or the amount of assumed obligations, subject to mutual written agreement between the Company and Jet X. Without such agreed modification this agreement shall expire on April 25 2021. Additionally, should the spare parts inventory appraisal result in a valuation of less than $2.8 million, the Company may adjust the number of shares it issues to Jet X.

 

F-6

 

 

ASI AVIATION, INC.

Notes to Condensed Financial Statements

(Unaudited)

For the six months ended September 30, 2021 and 2020

 

The Company cannot make any assurances at this time that all or any of the substantive conditions to closing will be met in a timely fashion, if at all.

 

The Agreement may be terminated at any time by mutual consent of the Company and Jet X and by Jet X if the preconditions required to be fulfilled by the Company are not completed by April 24, 2021, subject to that date being extended by mutual consent of Jet X and the Company.

 

This agreement has been extended by mutual consent of the parties IV times, latest being amendment No IV to the business and assets purchase agreement dated July 12, 2021 extending the closing date to December 31, 2021.

 

The COVID-19 Impact:

 

Before the global outbreak of the coronavirus disease (“COVID-19”) pandemic hit, the aviation industry had anticipated high passenger volume and aircraft fleet growth over the next decade. Now, however, with the arrival of the COVID-19 pandemic, the aviation industry is suddenly facing a new environment where operating fleet capacities have been drastically reduced and passenger demand has declined precipitously.

 

According to a report published on October 21, 2021 by the U.S. Government Accountability Office, the COVID-19 pandemic severely affected the aviation and aerospace sectors that depend on commercial passenger travel. As demand for air travel plummeted and remained low throughout 2020, effects cascaded across sectors including U.S. passenger airlines, airports, aviation manufacturers, and repair station operators.

 

Although airlines experienced a rebound in demand for U.S. leisure travel in 2021, operational challenges and concerns about the COVID-19 Delta variant, and now the Omicron variant, have slowed recovery. Forecasts suggest that industry recovery will be uneven as business and international air travel—the most profitable segments—are likely to lag.

 

We expect these unstable recovery conditions to remain for the foreseeable future. The prevailing economic conditions attributable to COVID-19 and its evolving strains have impacted drastically the Company’s ability to raise the debt and/or equity capital needed to make its first target acquisition. This has affected the Company’s plan for growth and expansion and has put a financial strain on the Company. However, the recent broad distribution of corona vaccines is expected to control the spread and intensity of COVID-19 infections and normalize financial conditions affecting the world economy over the next few years.

 

Although we expect that, in general, the airline industry will take considerable time to return to pre-COVID business levels, we also expect to see a marked improvement in 2022 as methods of treating COVID-19 and its variants improve and investors’ confidence for investments in airlines and aircraft returns to more normal levels.

 

Note 2. Going Concern

 

The accompanying unaudited condensed financial statements have been prepared assuming that the Company will continue as a going concern. Currently, the Company has limited operating history, has a net loss of $84,330 for the six months ended September 30, 2021, and had an accumulated deficit of $444,888 of September 30, 2021. The company as negative working capital of $66,538 and has yet to develop a source of revenue. Management believes that the Company’s capital requirements will depend on many factors including the success of the Company’s development efforts and its efforts to raise capital. Management also believes the Company needs to raise additional capital for working capital purposes. There is no assurance that such financing will be available in the future. The conditions described above raise substantial doubt about the Company’s ability to continue as a going concern. The unaudited condensed financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

F-7

 

 

ASI AVIATION, INC.

Notes to Condensed Financial Statements

(Unaudited)

For the six months ended September 30, 2021 and 2020

 

Note 3. Summary of Significant Accounting Policies

 

Basis of Presentation

 

The accompanying unaudited condensed financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”).

 

Use of Estimates

 

The preparation of unaudited condensed financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the six-month periods ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending March 31, 2022.

 

These unaudited condensed financial statements should be read in conjunction with the financial statements and footnotes thereto included in the Company’s 1-SA for the year ended March 31, 2021.

 

Income Taxes

 

The Company follows FASB ASC 740, “Income Taxes,” when accounting for income taxes, which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for temporary differences between the financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. Tax years from 2018 through 2021 remain subject to examination by major tax jurisdictions

 

Recent Accounting Pronouncements

 

In February 2016 FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes the existing guidance for lease accounting, Leases (Topic 840). ASU 2016-02 requires lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early application is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. In July 2018, the FASB issued ASU No. 2018-10, “Codification Improvements to Topic 842, Leases.” The amendments in ASU 2018-10 clarify, correct or remove inconsistencies in the guidance provided under ASU 2016-02 related to nineteen specific issues identified. Also, in July 2018, the FASB issued ASU No. 2018-11 “Leases (Topic 842): Targeted Improvement” which now allows entities the option of recognizing the cumulative effect of applying the new standard as an adjustment to the opening balance of retained earnings in the year of adoption while continuing to present all prior periods under previous lease accounting guidance. The effective date and transition requirements for these two ASUs are the same as the effective date and transition requirements as ASU 2016-02. The adoption of ASU 2016.02 did not have a material impact on the financial statements.

 

F-8

 

 

ASI AVIATION, INC.

Notes to Condensed Financial Statements

(Unaudited)

For the six months ended September 30, 2021 and 2020

 

Note 4. Loan Receivable

 

On September 21, 2020, the Company entered into a loan agreement with Jet X Aerospace LLC, in the amount of $5,000 with 3% interest per annum payable on or before 4 months from the date of execution of this note. This loan was later extended to and paid on December 21, 2021.

 

Note 5. Related Party Transactions

 

On November 11, 2019 in a special meeting of ASI Board of Directors, the Board approved a cash bonus, in amount of $50,000 by Dr. Sahay, Chief Executive Officer for his valuable services, to be drawn down as and when, he deems appropriate, of which all has drawn down as of September 30, 2020. Additionally, On September 24, 2020 in a special meeting of ASI Board of Directors, the Board approved a cash bonus, in amount of $50,000 by Dr. Sahay, Chief Executive Officer for his valuable services, to be drawn down as and when, he deems appropriate. As of September 30, 2021, $25,050 of the $50,000 bonus granted has been drawn down and the remaining $24,950 has been accrued for.

 

On November 26, 2019, Company signed a restricted stock unit agreement (vested upon performance threshold) to issue James Silvester 500,000 of restricted stock units. The restricted stock units shall be eligible for vesting under this agreement only upon the achievement of a performance goal set forth in this agreement i.e., which is upon the consummation of the Company’s first acquisition.

 

Note 6. Common Stock

 

The holders of the Company’s common stock are entitled to one vote per share of common stock held. During the six months ended September 30, 2021 and 2020, 25,000 and 0 commons stock were sold at one dollar per share, for a total amount of $25,000 and $0 respectively, under a Regulation A offering, under Regulation A offering.

 

Note 7. Commitments and Contingencies

 

The Company has entered into agreements with certain employees and contractors.

 

The Company entered into two executive employment agreements which include a base annual salary of $150,000 and $120,000 for Dr. Sahay and James Flynn, respectively. Both are also eligible for up to five performance-based bonuses of $30,000 (for Dr. Sahay; a total of up to $150,000) and $20,000 (for Mr. Flynn; a total of $100,000). These salaries and bonuses are subject to funding and performance. No amounts were earned or owed under these agreements as of September 30, 2021 and March 31, 2021 excluding the CEO’s $50,000 bonus earned in the six months ended September 30, 2021 and 2020.

 

The Company entered into two consulting agreements which include a base hourly rate of $125 for Dr. James L. Silvester, and $50 for Dr. L. Carl Jacobsen. No amounts were earned or owed under these agreements as of September 30, 2021 and March 31, 2021.

 

Effective August 2017, the Company entered into an agreement with independent contractor Nishant Goyal to serve as Director of Business Development in India. The Company has not determined the compensation for this agreement. position as the Company has not generated any revenues from its projects in India yet. No amounts were incurred or owed as of September 30, 2021 and March 31, 2021.

 

On July 21, 2018, the Company entered into an agreement with Willis Kavin Ayieko an independent contractor, to serve as Analyst/Representative in Kenya for researching and advising ASI on aviation related projects developed through his networking and contracts in the aviation community within East Africa. His compensation will consist of 10% commission of the gross earnings received by ASI for any and all projects developed by him or assigned by Mr. Flynn within East Africa. No amounts were incurred or owed as of September 30, 2021 and March 31, 2021.

 

F-9

 

 

ASI AVIATION, INC.

Notes to Condensed Financial Statements

(Unaudited)

For the six months ended September 30, 2021 and 2020

 

Note 8. Loans

 

On July 1, 2019, the Company entered into a loan agreement payable with third party for the amount of $10,000 with a 6% interest annum maturing on June 30, 2021. The loan outstanding balance was $10,000 and $10,000 as of March 31, 2021 and 2020, respectively. Subsequent to March 31, 2021, the loan agreement was amended to a maturity date of June 30, 2022.

 

Note 9. Income Taxes

 

The Company files corporate income tax returns in the United States (federal), Virginia and Nevada. The Company is subject to federal, state and local income tax examinations by tax authorities through inception.

 

The computation of the annual estimated effective tax rate at each period requires certain estimates and significant judgment including, but not limited to, the expected operating income for the year, projections of the proportion of income earned and taxed in various jurisdictions, permanent and temporary differences, and the likelihood of recovering deferred tax assets generated in the current year. The accounting estimates used to compute the provision for income taxes may change as new events occur, more experience is obtained, additional information becomes known or as the tax environment changes.

 

For the six months ended September 30, 2021 and 2020 we have recognized income tax expense (benefit) of $0 and $0, respectively, for our estimated federal and state income tax provision including both current and deferred income taxes. As of September 30, 2021, and March 31, 2021 our net deferred tax asset was $0 and $0, respectively.

 

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Deferred tax assets consist primarily of the tax effect of NOL carry-forwards. The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding its realizability.

 

F-10

 

 

Financial Statements

For the Years Ended March 31, 2021 and 2020

 

CONTENTS

 

  Page
   
Report of Independent Registered Public Accounting Firm F-12
Balance Sheets as of March 31, 2021 and 2020 F-13
Statements of Operations for the years ended March 31, 2021 and 2020 F-14
Statements of Stockholders’ Equity (Deficit) for the years ended March 31, 2021 and 2020 F-15
Statements of Cash Flows for the years ended March 31, 2021 and 2020 F-16
Notes to Financial Statements F-17

 

F-11

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Board of Directors and

Stockholders of ASI Aviation, Inc.

 

Opinion on the Financial Statements

 

We have audited the accompanying balance sheets of ASI Aviation, Inc. (the Company) as of March 31, 2021 and 2020 and the related statements of operations, stockholders’ equity (deficit), and cash flows for each of the years in the two-year period ended March 31, 2021, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of March 31, 2021 and 2020, and the results of its operations and its cash flows for each of the years in the two-year period ended March 31, 2021, in conformity with accounting principles generally accepted in the United States of America.

 

Going Concern

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As more fully described in Note 2 to the financial statements, the Company has limited operating history, has incurred operating losses, and had an accumulated deficit at March 31, 2021. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 2 to the financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Basis for Opinion

 

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 

/s/ Friedman LLP

 

We have served as the Company’s auditor since 2016.

Marlton, New Jersey

August 2, 2021

 

F-12

 

 

ASI AVIATION, INC.

BALANCE SHEETS

 

   March 31, 2021   March 31, 2020 
         
ASSETS          
Current Assets:          
Cash  $64,202   $104,675 
Loan receivable   5,000    - 
Prepaid and other current assets   2,007    521 
Total Current Assets   71,209    105,196 
           
Total Assets  $71,209   $105,196 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)          
           
Current Liabilities:          
Accounts payable  $60,217   $48,886 
Accrued expenses   4,450    17,700 
Loan from Cares Act, current portion   6,302    - 
Total Current Liabilities:   70,969    66,586 
Long Term Liabilities:          
Loans from Cares Act, long term portion   7,448    - 
Loan   10,000    10,000 
Total Liabilities   88,417    76,586 
           
Commitments and Contingencies          
           
Stockholders’ Equity (Deficit):          
Common stock, par value $0.0001, 100,000,000 Authorized, 10,342,350 and 10,267,350 issued and outstanding as of March 31, 2021 and March 31, 2020, respectively   1,035    1,027 
Additional paid in capital   342,315    267,323 
Accumulated deficit   (360,558)   (239,740)
Total Stockholders’ Equity (Deficit)   (17,208)   28,610 
           
Total Liabilities and Stockholders’ Equity (Deficit)  $71,209   $105,196 

 

The accompanying notes are an integral part of these financial statements.

 

F-13

 

 

ASI AVIATION, INC.

STATEMENTS OF OPERATIONS

 

   For the Years Ended March 31, 
   2021   2020 
         
Operating expenses:          
Professional fees  $37,546   $47,224 
Other expenses   83,272    96,192 
           
Total operating expenses   120,818    143,416 
           
Net loss before taxes   (120,818)   (143,416)
           
Net loss  $(120,818)  $(143,416)
           
BASIC AND DILUTED LOSS PER COMMON SHARE  $(0.01)  $(0.01)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING   10,277,418    10,165,301 

 

The accompanying notes are an integral part of these financial statements.

 

F-14

 

 

ASI AVIATION, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)

FOR THE YEARS ENDED MARCH 31, 2021 AND 2020

 

   Common stock   Additional paid in   Accumulated   Total
Stockholders’ equity
 
   Shares   Amount   capital   deficit   (deficit) 
                     
Beginning balance, April 1, 2019   10,042,350   $1,004   $42,346   $(96,324)  $(52,974)
Issuance of common stock   225,000    23    224,977    -    225,000 
Net Loss   -    -    -    (143,416)   (143,416)
Ending balance, March 31, 2020   10,267,350   $1,027   $267,323   $(239,740)  $28,610 
Issuance of common stock   75,000    8    74,992    -    75,000 
Net Loss   -    -    -    (120,818)   (120,818)