UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________________

FORM 10-K

_____________________________

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Fiscal Year ~~Ended~~ended December 31, ~~2024~~2025

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From to

Commission File Number 001-41104

VOLATO GROUP, INC.

(Exact name of Registrant as specified in its charter)

Delaware

4522

86-2707040

(State or other jurisdiction of

incorporation or organization)

(Primary Standard Industrial

Classification Code Number)

(I.R.S. Employer

Identification Number)

1954 Airport Road, Suite 124

Chamblee, GA 30341

Telephone: 844-399-8998

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of exchange on which registered
Class A Common stock, $0.0001 par value per share	SOAR	NYSE American LLC
Warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50	SOARW	OTC Markets Group, Inc.
Warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $287.50	SOARW	OTC Markets Group, Inc.

Securities registered pursuant to Section 12(g) of the Act:

None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.

See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

Accelerated Filer

Non-accelerated Filer

Smaller Reporting Company

Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.o

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. o

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No x

As of June 30, ~~2024~~2025, the aggregate market value of the registrant’s common stock held by non-affiliates of the registrant was $114,~~227~~627,~~045~~542 based on the closing sale price as reported on the NYSE American LLC. As of March 216, ~~2025~~2026, there were 116,~~900~~242,~~893~~827 shares of common stock outstanding.

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DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Registrant’s definitive Proxy Statement to be delivered to shareholders in connection with its 2025 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K (“Annual Report”) where indicated. Such proxy statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates.

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Portions of the Registrant’s definitive Proxy Statement to be delivered to shareholders in connection with its 2025 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. Such proxy statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates.

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VOLATO GROUP, INC.

FORM 10-K

FOR THE YEAR ENDED DECEMBER 31, 2024

INDEX

		Page
PART I
Item 1.	Business	46
	Available Information	1014
Item 1A.	Risk Factors	1215
Item 1B.	Unresolved Staff Comments	2933
Item 1C	Cybersecurity	29
Item 1C.	Cybersecurity	33
Item 2.	Properties	2933
Item 3.	Legal Proceedings	3034
Item 4.	Mine Safety Disclosures	3034
PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities	3135
Item 6.	[Reserved]	3236
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3337
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk	4346
Item 8.	Financial Statements and Supplementary Data	4446
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	7983
Item 9A.	Controls and Procedures	7983
	Report of Management on Internal Control over Financial Reporting	7983
	Report of Independent Registered Public Accounting Firm	55
Item 9B.	Other Information	85
Item 9B.	Other Information	81
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	85
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	81
PART III
Item 10.	Directors, Executive Officers, and Corporate Governance	8185
Item 11.	Executive Compensation	8185
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	8185
Item 13.	Certain Relationships and Related Transactions, and Director Independence	8185
Item 14.	Principal Accountant Fees and Services	8186
PART IV
Item 15.	Exhibit and Financial Statement Schedules	8287
Item 16.	Form 10-K Summary	8488
	Signatures	8589

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Special Note About Forward-Looking Statements

This report includes estimates, projections, statements relating to our business plans, objectives, and expected operating results that are “forward- looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. Forward- looking statements may appear throughout this report, including the following sections: “Business” (Part I, Item 1 of this ~~Form~~Annual ~~10- K~~Report), “Risk Factors” (Part I, Item 1A of this ~~Form~~Annual ~~10-K~~Report), and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (Part II, Item 7 of this ~~Form~~Annual ~~10- K~~Report). These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions or the negative of such terms. However, the absence of these words does not mean that a statement is not forward-looking. Forward -looking statements are based on current expectations and assumptions that are subject to risks and uncertainties that may cause actual results to differ materially. We describe certain risks and uncertainties that could cause actual results and events to differ materially in the sections entitled “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,.” ~~and “Quantitative and Qualitative Disclosures about Market Risk” (Part II, Item 7A of this Form 10 -K).~~ Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise.

Summary of Risk Factors

•We have a limited operating history and history of net losses, and may continue to experience net losses in the future.

•The Company may not be able to continue to operate its business if it is not successful in securing additional sources of capital and, as a result, may not be able to continue as a going concern.

•We may not be able to successfully implement our growth strategies.

•We may require substantial additional funding to finance our operations, but adequate additional financing may not be available when we need it, on commercially acceptable terms, or at all.

•Our business is dependent on third-party operators to provide flights for our customers. If third-party operators’ flights, which are required to serve a substantial portion of our business, are not available or do not perform adequately, our costs may increase and our business, financial condition, and results of operations could be adversely affected.

•Our Parslee platform depends on third-party artificial intelligence services, and our business could be adversely affected by changes in the availability, pricing, or performance of those services.

•We rely on our information technology systems to manage numerous aspects of our business. A cyber-based attack of these systems could disrupt our ability to deliver services to our customers and could lead to increased overhead costs, decreased revenues, and harm to our reputation.

•System failures, defects, errors, or vulnerabilities in our website, applications, backend systems, or other technology systems or those of third-party technology providers could harm our reputation and brand and adversely impact our business, financial condition, and results of operations.

•We rely on third parties maintaining open marketplaces to distribute our mobile and web applications and we rely on third parties to provide the software we use in certain of our products and services, including the provision of our flight management system. If these third parties interfere with the distribution of our products or services, with our use of the software, or with the interoperability of our platform with the software, our business would be adversely affected.

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~~PART~~•If Iwe are unable to adequately protect our intellectual property interests or are found to be infringing on the intellectual property interests of others, we may incur significant expense, and our business may be adversely affected.

•As part of our growth strategy, we may engage in future acquisitions that could disrupt our business and have an adverse impact on our financial condition.

•Because our software could be used to collect and store personal information, privacy concerns in the territories in which we operate could result in additional costs and liabilities to us or inhibit sales of our software.

•We are subject to the Telephone Consumer Protection Act and similar state laws in connection with our marketing activities, and noncompliance could result in significant financial exposure.

•Our obligations in connection with our contractual obligations, including debt financing obligations, could impair our liquidity and thereby harm our business, results of operations, and financial condition.

•Stockholders may experience dilution of their ownership interest due to the issuance of additional shares of Common Stock upon the conversion of certain convertible notes, especially since the notes have fluctuating conversion rates that are set at a discount to market prices of our shares of Common Stock during the period immediately following conversion.

•If we are unable to comply with the continued listing requirements of the NYSE American, then our Common Stock will be delisted from the NYSE American.

•If our Common Stock is delisted from the NYSE American, then we could face significant and material adverse consequences as a result and our investors will experience limitations upon their ability to effect transactions in our Common Stock.

•Issuances of our Common Stock in the future could dilute existing stockholders and adversely affect the market price of our Common Stock.

•Sales of Common Stock, or the perception of such sales, by us in the public market or otherwise, could cause the market price for our Common Stock to decline.

•Anti-takeover provisions contained in the Company’s Certificate of Incorporation and applicable laws could impair a takeover attempt.

•Our Certificate of Incorporation designates specific courts as the exclusive forum for substantially all stockholder litigation matters, which could limit the ability of our Stockholders to obtain a favorable forum for disputes with us or our directors, officers or employees.

•Our management team has limited experience managing a public company.

•The requirements of being a public company may strain our resources, divert our management’s attention, and affect our ability to attract and retain qualified board members.

•Because we became a publicly traded company by means other than a traditional underwritten initial public offering, our stockholders may face additional risks and uncertainties.

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•If securities or industry analysts do not publish research or reports about our business, if they change their recommendations regarding our Common Stock, or if our operating results do not meet their expectations, our Common Stock price and trading volume could decline.

The JOBS Act permits “emerging growth companies” like us to take advantage of certain exemptions from various reporting requirements applicable to other public companies that are not emerging growth companies.

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PART I.

ITEM 1. BUSINESS

Overview

Volato is an aviation technology company ~~advancing~~that ~~the~~connects ~~industry~~travelers ~~with~~to ~~innovative~~private, ~~solutions~~on-demand inflight ~~aviation~~access and develops proprietary software ~~and~~platforms ~~on-demand~~for ~~flight~~enterprise ~~access~~and operational applications. Historically, we generated revenue through our aircraft ownership program., ~~This program was~~ a focused commercial strategy ~~including~~that included deposit products, charter flights, and aircraft management services. Our aviation experience led to the development of ~~our~~ proprietary software, products and applications, including “Mission Control,” ~~and~~ “Vaunt,” and “Parslee.” Mission Control ~~drives~~is ~~efficiency~~an ~~across~~internal operations ~~and~~platform that supports ~~operators~~the inmanagement ~~managing~~of fractional ownership, charter, and ~~other~~related aviation services,. ~~and~~ Vaunt is an experiential private aviation platform that connects travelers to private, empty leg flights and is our primary revenue-generating business. During the fiscal year ended December 31, 2024, we began to generate revenue through the Vaunt platform. Additionally, Vaunt has surpassed ~~100~~190,000 app downloads and completed ~~598~~1,145 flights in ~~2024~~2025, reinforcing its role as a key growth driver for Volato. WeParslee ~~also~~is ~~have~~an aenterprise ~~new~~AI ~~patent-pending~~platform ~~technology~~ that ~~advances~~deploys ~~how~~autonomous ~~aircraft~~agents ~~generate~~within ~~revenue~~Microsoft by365 ~~repurposing~~environments ~~underutilized~~to ~~aircraft~~automate ~~resources~~workflows, synthesize information across systems, and execute multi-step business processes; the platform includes optional deterministic document processing capabilities for ~~cryptocurrency~~applications ~~mining~~requiring enhanced reliability and auditability, such as contract analysis and regulatory filings. During the third quarter of 2025, Parslee entered its first paying pilot programs with external customers. From time to time, we may also explore the potential development of other ancillary services or revenue -generating activities~~, such as further development of our patent-pending technology to facilitate Bitcoin mining activities using aircraft~~. With a commitment to advanced technology and customer-focused solutions, we are building scalable tools to elevate service quality and operational effectiveness in private aviation and enterprise software. Through its proposed merger with M2i Global, Inc., if consummated, Volato would expand into the critical minerals sector — leveraging its software expertise to bring greater transparency, traceability, and operational intelligence to supply chains essential for U.S. national security and advanced technologies.

Our History

We are a holding company for several wholly owned subsidiaries, including Volato, Inc., Fly Vaunt, LLC, ~~Gulf~~Parslee ~~Coast~~LLC, ~~Aviation~~Volato Merger Subsidiary, Inc., and GGulf CCoast Aviation, LLC (f/k/a Gulf Coast Aviation Inc.). The Company’s primary operating subsidiary, Volato, Inc., was founded in January 2021. During 2021, Volato, Inc. entered the private jet charter and fractional ownership market with our Part 135 HondaJet ownership program, taking delivery of our first jet in August 2021 and completing our first Part 135 charter flight in October of 2021. In March 2022, we acquired Gulf Coast Aviation, Inc., owner of G C Aviation, Inc., a Texas entity and Part 135 air carrier certificate holder. In March 2022, we placed orders for four Gulfstream G280s for delivery in 2024 and 2025. In September 2022, we started internal development on our full suite Flight Management Software platform Mission Control, and on October 4, 2023, we announced the commercial launch of Vaunt, our proprietary consumer facing empty leg platform.

On ~~December~~August 1, 2023, Volato, Inc., PROOF Acquisition Corp. I (“PACI”), and a wholly owned subsidiary of PACI (“PACI Merger Sub”) entered into ~~the~~a Business Combination Agreement, ~~dated August 1, 2023~~ (the “Business Combination Agreement”). Pursuant to the Business Combination Agreement, on December 1, 2023, a business combination between PACI and Volato Inc. was effected through the merger of PACI Merger Sub with and into Volato Inc., with Volato Inc. surviving the merger as a wholly-owned subsidiary of PACI (the “Business Combination”). In connection with the consummation of the Business Combination, PACI changed its name to “Volato Group, Inc.”

After thoroughly reviewing off-the-shelf flight management systems, we found that none fully met the needs of private aviation operators. Consequently, in September 2022, we committed to developing proprietary solutions that address the operational, scheduling, and customer engagement challenges unique to the private aviation sector. This decision led to the creation of our two flagship platforms: Mission Control and Vaunt.

Mission Control, our proprietary flight management system, addresses the limitations of traditional third-party solutions by leveraging real-time data, advanced automation, and a user-centric design, which collectively streamline complex workflows, improve fleet utilization, and enhance operational efficiency. Developed from the ground up, Mission Control was designed to be both scalable and adaptable to the evolving needs of the private aviation industry.

Vaunt, our customer platform, offers a subscription service for affordable private flights, giving members access to empty-leg flights while also optimizing fleet usage. Through Vaunt, we are able to reach a broader demographic of spontaneous travelers, who benefit from on-demand private travel without incurring the full costs typically associated with the sector. Since its introduction, Vaunt has quickly gained traction in the market, demonstrating strong consumer demand with over $1.5 million in ARR and a growing user base.6

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~~In September 2024~~Vaunt, weour ~~announced~~customer ~~an agreement with flyExclusive~~platform, ~~Inc.~~offers ~~(“flyExclusive”),~~ a ~~leading~~subscription ~~provider~~service offor affordable private ~~jet charter services~~flights, togiving ~~transition~~members ~~the~~access ~~management~~to ofempty-leg ~~our~~flights ~~aircraft~~while ~~ownership~~also ~~program~~optimizing fleet ~~operations to flyExclusive~~usage. ~~This~~Through ~~move~~Vaunt, iswe ~~expected~~are toable ~~bring substantial cost savings and provide Volato with the opportunity~~ to ~~focus~~reach ona ~~its~~broader ~~high-growth~~demographic ~~areas, including aircraft sales and proprietary software. We will continue to take delivery~~ of ~~new~~spontaneous ~~aircraft.~~travelers, ~~Volato~~who ~~will~~ benefit from ~~the margins~~ on-demand ~~aircraft~~private ~~sales~~travel without incurring the ~~burden~~full ~~of operational~~ costs, ~~while~~typically ~~also~~associated ~~generating~~with ~~revenue~~the ~~from~~sector. Since its ~~proprietary software~~introduction, ~~including the~~ Vaunt ~~platform,~~has ~~our~~quickly ~~successful~~gained ~~empty~~traction ~~leg~~in ~~consumer app. In~~ the ~~fourth quarter of 2024~~market, wedemonstrating ~~transferred~~strong ~~the~~consumer ~~aircraft~~demand ~~lease~~with ~~agreements~~over to$1.5 ~~flyExclusive~~million ~~and~~in weannual ~~have~~recurring norevenue ~~further~~(ARR) ~~obligations~~and ~~under~~a ~~the~~growing ~~aircraft~~user ~~lease agreements~~base.

In September 2024, we announced an agreement with flyExclusive, Inc. (“flyExclusive”), a leading provider of private jet charter services, to transition the management of our aircraft ownership program fleet operations to flyExclusive. This move brought substantial cost savings and provided Volato with the opportunity to focus on its high-growth areas, including aircraft sales and proprietary software. We continued to take delivery of new aircraft. We benefited from the margins on aircraft sales without the burden of operational costs, while also generating revenue from our proprietary software, including the Vaunt platform, our successful empty leg consumer app. In the fourth quarter of 2024, we transferred our aircraft lease agreements to flyExclusive and we have no further obligations under the aircraft lease agreements.

On October 1, 2025, the Company entered into a Fourth Amendment (the “Amendment”) to Aircraft Management Services Agreement (as amended the “Agreement”) with flyExclusive to bring the Agreement in line with Company’s anticipated shift in operations, new business directives, and to better accommodate the proposed Merger with M2i. The Amendment served to, (i) modify the term of the Agreement; (ii) grant flyExclusive, subject to certain terms and conditions, the right to purchase certain aviation-related assets from the Company and assume certain obligations of the Company (the “flyExclusive Asset Option”); (iii) grant the Company, subject to certain terms and conditions, the right to sell certain aviation-related assets to flyExclusive and assign certain obligations of the Company to flyExclusive (the “Company Asset Option,” and collectively with the flyExclusive Asset Option, the “Asset Options”); (iv) obligate flyExclusive to pay the Company $100,000 upon execution of the Amendment as settlement of net payables owed by flyExclusive to the Company under the terms of the Agreement (the “Net Payables Obligation”); and (v) modify the material terms of flyExclusive’s right to cause the Company to merge with and into a wholly owned subsidiary of flyExclusive (the “flyExclusive Merger Option”), including that the flyExclusive Merger Option is to be only exercisable in the event that the Company and M2i terminate the Merger Agreement. The purchase price for the Asset Options and the Net Payables Obligations may be paid by flyExclusive in cash or shares of flyExclusive Class A common stock, at the sole discretion of flyExclusive. flyExclusive elected to pay the Net Payables Obligation by issuing the Company 20,576 shares of Class A common stock.

As consideration for the execution of the Amendment, flyExclusive agreed to pay $2,000,000 to the Company, in cash or shares of flyExclusive Class A common stock, in exchange for the right to receive either (i) the net proceeds that the Company receives from the sale of a certain G280 aircraft, which is expected to be delivered to the Company pursuant to an existing agreement (the “G280 Agreement”) with Gulfstream Aerospace Corporation (“Gulfstream”), or (ii) if, and only if, Gulfstream provides written consent, assignment of the G280 Agreement from the Company to flyExclusive subject to the execution of an asset purchase agreement relating solely to the transfer of the G280 Agreement. flyExclusive elected to pay all of the $2,000,000 in shares of its Class A common stock and issued an aggregate of 411,523 shares of its Class A common stock to the Company.

On March 6, 2026, the Company signed amendment number five to the Agreement with flyExclusive, pursuant to which the Company sold certain unused intellectual property assets for $1.3 million payable in cash or shares of flyExclusive’s Class A common stock. Such assets represent a portion of the total assets which were anticipated to be sold under one of the Asset Options as described above. Following the sale of the intellectual property assets pursuant to the fifth amendment, there is $700,000 in remaining assets that may be sold to flyExclusive under the terms of the Agreement, as amended.

On March 20, 2025 we sold our former subsidiary, GC Aviation, Inc., which holds the FAA Part 135 certificate, for $2.0 million, of which $1.8 million was a note receivable.

On July 28, 2025, we entered into an Agreement and Plan of Merger and Reorganization (as amended, the “Merger Agreement”) with Volato Merger Subsidiary, Inc., a Nevada corporation and wholly-owned subsidiary of Volato (“Merger Sub”), and M2i Global, Inc., a Nevada corporation (“M2i”), pursuant to which Merger Sub will merge with and into M2i, with M2i surviving the merger as a wholly-owned subsidiary of Volato (together with all other transactions contemplated by the Merger Agreement, the “Merger”). The Merger is subject to approval by each company’s stockholders and other customary closing conditions. Upon consummation of the Merger, it is currently expected that M2i’s stockholders will own approximately 85% of the combined company.

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In September 2025, we launched Parslee, an enterprise AI based software platform for Microsoft 365 that combines document intelligence with autonomous workflow agents and entered our first paying pilot programs with external customers.

The private aviation industry, historically under-innovated, faces challenges in asset utilization, operational complexity, and customer service. Volato’s software offerings are built to address these challenges directly, establishing Volato as a knowledgeable innovator in aviation software. Our approach positions us to meet increasing demand for streamlined, scalable, and customer-centric solutions, setting a new standard in private aviation technology and unlocking additional value across the sector.

Mission Control: Addressing Operational Challenges in Private Aviation

The private aviation industry faces unique operational challenges, particularly for Part 135 operators who must manage complex scheduling, crew assignments, and customer engagement processes while ensuring regulatory compliance. Traditional third-party software solutions in the market have proven inadequate for meeting these specific needs, often requiring significant customization or workarounds that add complexity and inefficiency.

Mission Control, a cloud-based software, was developed by Volato as a direct response to these challenges, experienced firsthand as a flight operator. Our proprietary, cloud-based software provides a robust, API-first solution for Part 135 operators, streamlining critical functions across flight scheduling, customer relationship management (CRM), crew management, and more. Mission Control not only addresses operational needs but also enhances data transparency and customer engagement, positioning Volato as an innovative leader in aviation technology.

Mission Control Key Modules

Mission Control centralizes and automates a wide range of workflows, allowing operators to reduce operational overhead and improve service quality. The platform is organized into several key modules:

1.Flight Scheduling and Optimization: Mission Control allows operators to manage and adjust schedules in real-time. The system’s Fast Feasibility and Disruption Cost modules enable rapid adjustments for unexpected changes, such as Aircraft on Ground (AOG) situations, with options for both optimized packing and maximum resilience in case of recovery needs.

Image 1 - MC control Fliht scheudling results output.jpg

Figure: Mission Control Flight Scheduling results output Figure: Mission Control Flight Optimization

2.Integrated Crew Management: Mission Control offers tools to manage crew assignments, duty logs, scheduling, and compliance. The platform tracks pilot qualifications, duty times, and crew preferences, making it easy for operators to ensure that the right personnel are assigned to each flight. The Crew App supports pilots in logging trips, submitting duty data, and receiving updated itineraries, all from a mobile interface.

53.Omnichannel Communications: Mission Control’s omnichannel communication system consolidates customer interactions across email, SMS, in-app messaging, automated calls, and recorded calls. Each flight is assigned a unique service ticket, consolidating and tracking all relevant communication for easy access by team members. This feature enhances service consistency, reduces response times, and improves the overall customer experience.

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Image 3 - flight omnichannel communications.jpg

34.Real-Time Analytics and Dashboards: Mission Control’s ~~omnichannel~~provides ~~communication~~operators ~~system~~with ~~consolidates~~comprehensive ~~customer~~KPI ~~interactions~~and ~~across~~daily ~~email,~~dashboards ~~SMS,~~that inoffer real-~~app~~time ~~messaging,~~insights ~~automated~~into ~~calls,~~key ~~and~~operational ~~recorded calls~~metrics. ~~Each~~Mission ~~flight~~Control isoffers ~~assigned~~operators areal-time ~~unique~~dashboards ~~service~~with ~~ticket~~insights into key metrics, ~~consolidating~~from ~~and~~fleet ~~tracking~~performance ~~all~~to ~~relevant~~customer ~~communication~~satisfaction. ~~for~~These ~~easy~~dashboards ~~access~~enable bydata-driven ~~team~~decision-making ~~members~~at every level of the organization. ~~This~~Aggregate ~~feature~~Net ~~enhances~~Promoter ~~service~~Score ~~consistency~~(NPS) results, ~~reduces~~gathered ~~response times~~post-flight, ~~and~~are ~~improves~~visible to the ~~overall~~entire ~~customer~~team, ~~experience~~fostering a culture of continuous improvement.

4.Real-Time Analytics and Dashboards: Mission Control provides operators with comprehensive KPI and daily dashboards that offer real-time insights into key operational metrics. Mission Control offers operators real-time dashboards with insights into key metrics, from fleet performance to customer satisfaction. From fleet performance to customer satisfaction scores, these dashboards enable data-driven decision-making at every level of the organization. Aggregate Net Promoter Score (NPS) results, gathered post-flight, are visible to the entire team, fostering a culture of continuous improvement.

Figure: Mission Control Aircraft Dashboard

65.Sales and Customer Engagement Tools: Mission Control includes built-in CRM tools for managing customer contacts, owner programs, and referral incentives. Through features like JetQuote and Pocket Sales Calculator, operators can provide instant quotes, generate contracts, and capture e-signatures. This suite of tools enables operators to deliver streamlined sales and service processes, enhancing customer engagement and conversion rates.

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5.Sales and Customer Engagement Tools: Mission Control includes built-in CRM tools for managing customer contacts, owner programs, and referral incentives. Through features like JetQuote, Pocket Sales Calculator, operators can provide instant quotes, generate contracts, and capture e-signatures. This suite of tools enables operators to deliver streamlined sales and service processes, enhancing customer engagement and conversion rates.

Figure: Our proprietary instant-pricing system and e-signature platform reduces overhead while providing customers with improved service.

Image 8 - signed contracts - Omnichannel.jpg

Figure: Signed contracts are assigned a service ticket and moved into the Omnichannel client communications module where all customer and intra-company interactions pertaining to the trip are recorded and accessible from one place.

6.Third-Party Integrations: To further enhance operational efficiency, Mission Control integrates seamlessly with industry-standard platforms, such as Schedaero, ForeFlight, FuelerLinx, and QuickBooks, as well as general-purpose tools like Microsoft Teams. These integrations ensure real-time data synchronization across systems, enabling operators to manage tasks and data from a single interface.

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Mission Control Commercialization Strategy

With flyExclusive, a top Part 135 operator, onboarded as the first third-party user, Mission Control has launched as a commercial solution for other operators. Our goal is to address widespread gaps in the aviation software market, offering a platform tailored to the unique requirements of Part 135 operators while leveraging our proven, scalable solution.

Mission Control is designed for Part 135 operators, of all sizes. Ideal customers are operators seeking to enhance operational efficiency, improve customer satisfaction, and reduce costs associated with scheduling, crew management, and customer communications. Mission Control directly addresses industry-specific needs with an integrated, customizable solution, positioning it as a strong alternative to standard aviation software.

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Volato’s flexible subscription model allows operators to benefit from enhanced customer engagement, operational tools, and data transparency. By enabling third-party operators to leverage this platform, Volato aims to set a new standard in private aviation software, increasing the availability of optimized operational solutions across the industry.

Vaunt Platform

Empty Leg Industry Background

The private aviation industry produces a large number of empty leg repositioning flights, with empty leg percentages for floating fleet operators typically ranging between 30-40% of all flight activity. This represents significant inefficiency and lost revenue opportunities.

Operators have traditionally tried to sell these empty legs. However, successfully marketing these flights to traditional private aviation customers has been challenging, as they prioritize the flexibility of flying on their own schedules, rather than flying at a discount on pre-set routes and times generated from someone else’s flight schedule.

Vaunt: Realizing Revenue and Expanding Access

We believe that an opportunity exists to match empty legs with a different customer segment under a different business model, by marketing them to a different segment of customers who private aviation has traditionally ignored. Vaunt addresses this inefficiency by providing a platform that attracts a broader, under-targeted market segment, presenting affordable access to private aviation while helping operators capitalize on idle inventory.

How Vaunt Works

Vaunt is intended to make it easy and affordable through a proprietary platform and mobile apps for spontaneous and frequent travelers to have a chance to fly private while addressing this empty-leg issue. Vaunt members pay an annual membership fee and have access to the listed flights, at no additional cost to fly.

Vaunt aggregates empty leg flights from Part 135 operators and lists this flight inventory typically 2-5 days before the scheduled flight departure in its Apple iOS and Android mobile apps. Users who have downloaded the app are able to review these flights. Vaunt’s paid members can join the waitlist for flights, if they are placed first on the waitlist when the flight closes they are offered the flight, if they decline, the flight is offered to the next inline member. Members secure the entire aircraft on their flights, allowing them to bring other passengers and pets at no additional cost, providing an experience that mirrors private aviation exclusivity.

Vaunt uses a proprietary algorithm to determine waitlist priority, calculated using several variables, including but not limited ~~including~~to referrals, prior flight no-shows, and the length of time since your last Vaunt flight.

As part of an annual Vaunt Membership members can purchase one “Priority Upgrade” per subscription cycle. A Priority Upgrade allows you to jump to the top of the waitlist and secure the #1 position, guaranteeing the member top spot for the flight. If two members wish to use their Priority Upgrade on the same flight, the first member to purchase and use theirs has the priority.

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Vaunt Expansion Strategy

To further expand its platform and fleet offerings, Vaunt seeks to onboard additional Part 135 operators to the Vaunt platform enabling them to gain value and monetize the sunk costs associated with empty leg flights. Vaunt provides these operators with access to its established customer base and technology, offering a revenue-sharing subscription model as an incentive to list their flight inventory on Vaunt’s platform.

Through these operator relationships, Vaunt aims to grow its inventory, deliver greater flight variety and availability for members, and further establish itself as the leading platform for affordable private aviation access.

~~Volato Aircraft Sales~~ 11

~~Volato~~Table ~~expects to take delivery~~ of three Gulfstream G280 aircraft in 2025. Each aircraft is expected to generate cashflow from the sale of the aircraft which includes an estimated $4.0 million to $5.0 million in gross profit earned on sale and the return of $3 million in cash on deposit for each aircraft. Using our industry relationships and experience Volato may opportunistically source or acquire additional aircraft in the future. Contents

Parslee

Parslee is an enterprise AI platform. The platform's offerings include Parslee Core, an LLM-based product featuring Parslee's orchestration-layer Knowledge Base, which provides customer-specific context to large language models, with Microsoft 365 integrations for calendar and email. The platform also includes domain-specific AI Employees, LLM-enabled agents which execute workflows and manage multi-step business processes within Microsoft 365 enterprise environments. Organizational Document Intelligence, a structured deterministic preprocessing layer for complex documents such as contracts and regulatory filings, is available as an optional platform enhancement. All current Parslee products are in beta. Parslee entered its first paying pilot programs with external customers in the third quarter of 2025.

Key features of Parslee include:

•Parslee Core – LLM-based product with Knowledge Base context layer and Microsoft 365 calendar and email integration.

•AI Employees – domain-specific task capabilities, autonomous execution of approved workflows, and multi-step process management within enterprise environments.

•Knowledge Base – per-customer contextual data layer for large language models, managed within Parslee's orchestration layer.

•Enterprise Integration – supports Microsoft 365 including SharePoint, OneDrive, Outlook, Teams, and Microsoft applications such as Word, Excel, and Planner.

•Organizational Document Intelligence (optional) – structured preprocessing of complex documents for use with large language models, with tracking of result origins for compliance purposes.

Privacy and Data Protection

Compliance with laws governing the collection, use, transfer, security, storage, destruction, and other processing of personally identifiable information and other data relating to individuals is important for our business. As our technology platform is an integral part of our operations, adherence to federal, state, local, municipal, and foreign laws and regulations, as well as industry standards, is necessary to enhance the user experience of our mobile application and marketing site relevant to our business.

We receive, collect, store, process, transmit, share, and use personal information, and other customer data, including health information. We also rely on third parties to manage certain aspects of these operations and to receive, collect, store, process, transmit, share, and use such personal information, including payment information. The collection, storage, processing, sharing, use, retention, and security of this information are governed by various laws and regulations.

Certain of our products, including Parslee, transmit customer data to third-party large language model providers for processing. We rely on contractual and technical safeguards to protect customer data in connection with these services, and we select providers whose data handling practices are consistent with applicable privacy requirements. However, our ability to protect such data is dependent in part on the practices and policies of these third-party providers.

The California Consumer Privacy Act (“CCPA”) establishes a privacy framework for covered businesses regarding data privacy rights for California residents. Compliance with the CCPA is necessary for businesses to provide certain disclosures to California residents, respond to their requests for disclosures regarding their personal information, and offer them the right to opt out of sales of personal information. The CCPA also provides for severe statutory damages for noncompliance and private rights of action for certain breaches of personal information resulting from a covered business's failure to implement reasonable security procedures and practices. Furthermore, the California Privacy Rights Act, which took effect on January 1, 2023, expands California residents' rights under the CCPA.

Given that we collect personal information from California residents through the air transportation services we have offered in California in the past and direct marketing to California residents for those services, as well as our plans to offer future services in California, we believe that we are subject to compliance with California's privacy laws.

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Employees

Our employees are central to our and our customers’ success. As of March 213, ~~2025~~2026, we have 1213 full time employees and no part-time employees. All full-time employees are located within the United States and fulfill a range of roles in corporate functions.

To date, we have not experienced any work stoppages. Furthermore, none of our employees are currently represented by a labor organization or subject to collective bargaining agreements. Our human capital objectives include, as applicable, identifying, recruiting, retaining, incentivizing and integrating our existing and new employees. The principal purposes of our incentive plans are to attract, retain and motivate selected employees and consultants through the granting of stock-based compensation awards.

Facilities

We are a remote-first company, founded during the COVID-19 crisis. All our facilities are located on land that is leased from third parties. We believe that these facilities meet our current and future anticipated needs. ~~In addition, primarily for aircraft ownership program participants’ flight pricing, we designate a few other physical locations as~~

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operational bases, which may or may not have personnel or facilities, but which our owners are not charged repositioning fees to fly from.

Intellectual Property

Safeguarding our proprietary technology and other intellectual property is important for our business. We employ a combination of strategies, including trademarks, contractual commitments and security procedures to protect our intellectual property. We require our employees and relevant consultants to sign confidentiality agreements and certain third parties to sign nondisclosure agreements. We routinely evaluate our technology development initiatives and branding strategy to identify potential new intellectual property. We have ~~pending~~ U.S. ~~and~~trademarks ~~certain~~for ~~foreign~~“Volato” ~~trademark~~and ~~applications, including the~~ “~~Volato~~Vaunt” word ~~mark~~marks and the Dragonfly design mark. We have a pending U.S. trademark application for the “Parslee” word mark.

WePresently, ~~have~~we aown ~~new~~the ~~patent-pending~~Internet ~~technology~~domains “flyvolato.com”, ~~filed~~“flyvaunt.com”, and “Parslee.ai”. The regulation of domain names in ~~2023~~the United States is subject to change, ~~that~~and ~~advances~~regulatory ~~how~~authorities ~~aircraft~~may ~~generate~~create ~~revenue~~additional bytop-level ~~repurposing~~domains, ~~underutilized~~appoint ~~aircraft~~additional ~~resources~~domain name registrars, or change the prerequisites for ~~cryptocurrency~~holding ~~mining~~domain names. As a result, we may not be able to acquire or maintain all domain names that incorporate the name “Volato”, “Vaunt” or “Parslee” or are otherwise relevant to or descriptive of our business.

Presently, we own the Internet domain “flyvolato.com.” The regulation of domain names in the United States is subject to change, and regulatory authorities may create additional top-level domains, appoint additional domain name registrars, or change the prerequisites for holding domain names. As a result, we may not be able to acquire or maintain all domain names that incorporate the name “Volato” or are otherwise relevant to or descriptive of our business.

Although software can be protected by copyright law, we have chosen to rely primarily on trade secret law to protect our proprietary software and have chosen not to register any copyrights in these works. In the United States, copyright law requires registration to bring a claim for infringement and to obtain certain types of remedies. However, even if we decide to register a copyright in our software to bring an infringement action, the remedies and damages available to us for unauthorized use of our software may be limited.

It is important to note that intellectual property laws, contractual commitments, and security procedures provide only limited protection, and our intellectual property rights may be challenged, invalidated, circumvented, infringed upon, or misappropriated. Furthermore, trade secrets, know-how, and other proprietary materials may be independently developed by our competitors or revealed to the public or our competitors, and may no longer provide protection for the related intellectual property.

Additionally, intellectual property laws vary from country to country, and we have not sought trademark registrations in every foreign jurisdiction in which we have or may operate. As a result, we may be unable to protect certain aspects of our brands or other intellectual property in other jurisdictions.

Legal Proceedings

From time to time we are a party to various litigation matters incidental to the conduct of our business. We are not presently party to any legal proceedings the resolution of which we believe would have a material adverse effect on our business, prospects, financial condition, liquidity, results of operation, cash flows or capital levels.

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AVAILABLE INFORMATION

Our Internet address is www.flyvolato.com. At our Investor Relations website, www.ir.flyvolato.com, we make available free of charge a variety of information for investors. ~~Our~~The ~~goal~~information on our websites is not, and shall not be deemed to ~~maintain~~be, ~~the~~part ~~Investor~~of ~~Relations~~this ~~website~~Annual Report or incorporated into any other filings we make with the SEC, except as aexpressly ~~portal~~set ~~through~~forth ~~which~~by ~~investors~~specific ~~can~~reference ~~easily~~in ~~find~~any orsuch ~~navigate~~filings. All website addresses in this Annual Report are intended to ~~pertinent~~be ~~information~~inactive ~~about~~textual ~~us,~~references ~~including:~~only.

Our goal is to maintain the Investor Relations website as a portal through which investors can easily find or navigate to pertinent information about us, including:

•Our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports, as soon as reasonably practicable after we electronically file that material with or furnish it to the Securities and Exchange Commission (“SEC”) at www.sec.gov.

•Information on our business strategies, financial results, and metrics for investors.

•Announcements of investor conferences, speeches, and events at which our executives talk about our product, service, and competitive strategies. Archives of these events are also available.

•Press releases on quarterly earnings, product and service announcements, legal developments, and international news.

•Corporate governance information including our governance guidelines, committee charters, codes of conduct and ethics, and other governance-related policies.

•Other news and announcements that we may post from time to time that investors might find useful or interesting.

•Opportunities to sign up for email alerts to have information pushed in real time.

10In addition to our website, the public may read or copy any document we file with the SEC at the SEC’s website, www.sec.gov (File No. 001-41104). The information found on our websites is not part of, or incorporated by reference into, this or any other report we file with, or furnish to, the SEC. In addition to these channels, we use social media to communicate to the public. It is possible that the information we post on social media could be deemed to be material to investors. We encourage investors, the media, and others interested in Volato to review the information we post on the social media channels listed on our Investor Relations website.

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In addition to our website, the public may read or copy any document we file with the SEC at the SEC’s website, http://www.sec.gov (File No. 001-41104). The information found on our websites is not part of, or incorporated by reference into, this or any other report we file with, or furnish to, the SEC. In addition to these channels, we use social media to communicate to the public. It is possible that the information we post on social media could be deemed to be material to investors. We encourage investors, the media, and others interested in Volato to review the information we post on the social media channels listed on our Investor Relations website.

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ITEM 1A. RISK FACTORS

Unless the context otherwise requires, all references in this subsection to “we” and “our” refers to the business ~~the business~~ of Volato Group and our consolidated subsidiaries. The occurrence of one or more of the events or circumstances described in these risk factors, alone or in combination with other events or circumstances, may have a material adverse effect on the business, financial condition, results of operations, cash flows and future prospects of Volato, in which event the market price of the Common Stock of Volato Group could decline, and you could lose part or all of your investment.

Risks Related to Our Limited Operating History, Business and Industry

We have a limited operating history and history of net losses, and may continue to experience net losses in the future.

You should consider our business and prospects in light of the risks, expenses, and difficulties encountered by companies in their early stage of development. We launched our business through Volato, Inc. on January 7, 2021. Accordingly, we have limited operating history upon which to base an evaluation of our business and prospects. The Company’s current and proposed operations are subject to all business risks associated with newer enterprises. These include likely fluctuations in operating results as the Company reacts to developments in its markets, difficulty in managing its growth and the entry of competitors into the market.

We have experienced significant net losses since our inception and, given our limited operating history, we may experience continuing net losses for the foreseeable future and may never become profitable (as determined by U.S. Generally Accepted Accounting Principles (“GAAP”) or otherwise). We may not accurately anticipate how quickly we might use our funds and whether such funds are sufficient to bring the business to profitability and pay our liabilities. Even if we achieve profitability, we cannot be certain that we will be able to sustain or increase profitability. To achieve and sustain profitability, we must accomplish numerous objectives, including broadening and stabilizing our sources of revenue and increasing the number of customers that utilize our ~~service~~services. Accomplishing these objectives may require significant capital investments. We cannot assure you that we will be able to achieve these objectives.

The Company may not be able to continue to operate its business if it is not successful in securing additional sources of capital and, as a result, may not be able to continue as a going concern.

The Company is dependent on funds from its operations, proceeds from its financing arrangements and additional fundraising in order to sustain its ongoing operations. The Company has suffered recurring losses from operations and has a significant accumulated deficit. As a result of these recurring losses from operations, negative cash flows from operating activities and the need for additional capital there is substantial doubt of the Company’s ability to continue as a going concern. Therefore, our independent registered public accounting firm included an explanatory paragraph expressing substantial doubt about the Company’s ability to continue as a going concern in its report on the Company’s audited financial statements for the year ended December 31, ~~2024~~2025. The financial statements have been prepared in accordance with GAAP, which contemplate that the Company will continue to operate as a going concern. The Company’s financial statements do not contain any adjustments that might result if it is unable to continue as a going concern. There are no assurances that management will be able to raise capital on terms acceptable to the Company. If the Company is unable to obtain sufficient amounts of additional capital, the Company may be required to reduce the near-term scope of its planned development and operations, which could delay implementation of the Company’s business plan and harm its business, financial condition and operating results. In such circumstances, the Company may have to significantly reduce its operations or delay, scale back or discontinue the development of one or more of its products, seek alternative financing arrangements, declare bankruptcy or terminate its operations entirely.

Significant reliance on Gulfstream aircraft and parts poses risks to our business and prospects.

As part of our business strategy, we have historically flown HondaJet aircraft, manufactured by Honda Aircraft Company (“Honda”). The purchase agreement between the Company and Honda was terminated on September 10, 2024. We expect to take delivery of and sell Gulfstream aircraft, manufactured by Gulfstream Aerospace, LP (“Gulfstream”). If Gulfstream experiences interruptions or disruptions in production or provision of services due to, for example, bankruptcy, natural disasters, labor strikes, or disruption of their supply chain, we may experience a significant delay in the delivery of or fail to receive previously ordered aircraft and parts, which would adversely affect our revenue and results of operations and could jeopardize our ability to meet the demands of our customers.

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If we cannot internally or externally finance our aircraft or generate sufficient funds to make payments to external financing sources, we may not succeed.

As is customary in the aviation industry, we are reliant on external financing for the acquisition of aircraft, and we are likely to need additional financing in the future in order to acquire aircraft. If we are unable to generate sufficient revenue or other funding to make payments on these financing arrangements, the lender may default us under the financing arrangement, which would have a material adverse effect on our business and reputation. Furthermore, if we do not have access to external financing for future aircraft, for whatever reason, including reasons relating to our business or prospects or the broader economy, we may not be in a position to grow and/or operate as a going concern.

We may not be able to successfully implement our growth strategies.

Our growth strategies include, among other things, attracting new customers and retaining existing customers, expanding our addressable market by opening up private aviation to customers that have not historically used private aviation services, expanding into new markets and developing adjacent businesses. We face numerous challenges in implementing our growth strategies, including our ability to execute on market, business, product/service and geographic expansions. For example, our continued growth could increase the strain on our resources, and we could experience operating difficulties, including difficulties in hiring, training, and managing an increasing number of employees. These difficulties may result in the erosion of our brand image, divert the attention of our management and key employees, and impact our financial and operational results.

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Our strategies for growth are dependent on, among other things, our ability to expand existing products and services and launch new products and services. Although we may devote significant financial and other resources to the expansion of our products and service offerings, our efforts may not be commercially successful or achieve the desired results. Our financial results and our ability to maintain or improve our competitive position will depend on our ability to effectively gauge the direction of our key marketplaces and successfully identify, develop, market, and sell new or improved products and services in these changing marketplaces. Our inability to successfully implement our growth strategies could have a material adverse effect on our business, financial condition, and results of operations and any assumptions underlying estimates of expected cost savings or expected revenues may be inaccurate.

Our growth also depends in part on our ability to successfully enter new markets and offer new services and products. Significant changes to our existing geographic coverage or the introduction of new and unproven markets may require us to obtain and maintain applicable permits, authorizations, or other regulatory approvals. Developing and launching new or expanded locations involves significant risks and uncertainties, including risks related to the reception of such locations by existing and potential future customers, increases in operational complexity, unanticipated delays or challenges in implementing such new locations or enhancements, increased strain on our operational and internal resources (including an impairment of our ability to accurately forecast customer demand), and negative publicity in the event such new or enhanced locations are perceived to be unsuccessful. Significant new initiatives may result in operational challenges affecting our business. In addition, developing and launching new or expanded service offerings may involve significant upfront investment, such as additional marketing and such expenditures may not generate a return on investment. Any of the foregoing risks and challenges could negatively impact our ability to attract and retain customers. If these new or expanded service offerings are unsuccessful or fail to attract a sufficient number of customers to be profitable, our business, financial condition, and results of operations could be adversely affected.

We are exposed to the risk of a decrease in demand for private aviation services.

Our business is concentrated on private aviation services, which are vulnerable to changes in consumer preferences, discretionary spending, and other market changes impacting luxury goods and discretionary purchases. In addition, demand for private aviation services may be significantly and adversely impacted by factors affecting air travel generally, such as adverse weather changes, the occurrence of geopolitical events such as war, such as the current conflicts in Ukraine, terrorism, civil unrest, political instability, market volatility, environmental or climatic factors, natural disaster, pandemic or epidemic outbreak, public health crisis and general economic conditions. The global economy has in the past, and may in the future, experience recessionary periods and periods of economic instability such as the business disruption and related financial impact resulting from the global COVID-19 health crisis. During such periods, our current and future users may choose not to make discretionary purchases or may reduce overall spending on discretionary purchases. These changes could result in reduced consumer demand for air transportation, including our private aviation services, or could shift demand from our private aviation services to other methods of air or ground transportation for which we do not offer a competing service.

13Any of these factors that cause the demand for private aviation services to decline may also result in delays that could reduce the attractiveness of private air charter travel versus other means of transportation, particularly for shorter distance travel. Delays could frustrate passengers, affecting our reputation and potentially reducing demand for our services as a result of flight cancellations and increased costs. We may also experience decreased demand, as well as a loss of reputation, in the event of an accident involving an aircraft booked through our platform or any actual or alleged misuse of our platform or aircraft booked through our platform by customers in violation of law. Any of the foregoing circumstances or events which reduced the demand for private jet charters could negatively impact the Company’s ability to establish its business and achieve profitability. If we are unable to generate demand or there is a future shift in consumer spending away from private aviation services, our business, financial condition, and results of operations could be adversely affected.

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Any of these factors that cause the demand for private aviation services to decline may also result in delays that could reduce the attractiveness of private air charter travel versus other means of transportation, particularly for shorter distance travel. Delays could frustrate passengers, affecting our reputation and potentially reducing demand for our services as a result of flight cancellations and increased costs. We may also experience decreased demand, as well as a loss of reputation, in the event of an accident involving one of its aircraft or an aircraft booked through our platform or any actual or alleged misuse of its platform or aircraft by customers in violation of law. Any of the foregoing circumstances or events which reduced the demand for private jet charters could negatively impact the Company’s ability to establish its business and achieve profitability. If we are unable to generate demand or there is a future shift in consumer spending away from private aviation services, our business, financial condition, and results of operations could be adversely affected.

We may require substantial additional funding to finance our operations, but adequate additional financing may not be available when we need it, on commercially acceptable terms, or at all.

Our operations are capital intensive, and we require sufficient liquidity levels for our operations and strategic growth plans. We have financed our operations and capital expenditures primarily through private financing rounds credit agreements, convertible debt, and through financing of aircraft pre-delivery payment obligations. In the future, we expect to need to raise additional capital through public or private financing or other arrangements. This financing may not be available on acceptable terms, or at all, and our failure to raise capital when needed could harm our business. Numerous factors may affect our ability to obtain financing or access the capital markets in the future on terms attractive to us, including our liquidity, operating cash flows, and the timing of capital requirements, credit status and any credit ratings assigned to us, market conditions in the private aviation industry, U.S. and global economic conditions, and conditions in the capital markets generally, and the availability of our assets as collateral for future financings. We may sell equity securities or debt securities in one or more transactions at prices and in a manner as we may determine from time to time. If we sell any such securities in subsequent transactions, our current investors may be materially diluted. Any debt financing, if available, may involve restrictive covenants and could reduce our operational flexibility or profitability. If we cannot raise funds on commercially acceptable terms, we may not be able to grow our business or respond to competitive pressures and our business, results of operations, and financial condition could be materially adversely affected.

The loss of key personnel upon whom we depend on to operate our business or the inability to attract additional qualified personnel could adversely affect our business.

We believe that our future success will depend in large part on our ability to retain or attract highly qualified management, and technical and other personnel. We may not be successful in retaining key personnel or in attracting other highly qualified personnel. Any inability to retain or attract significant numbers of qualified management and other personnel would have a material adverse effect on our business, results of operations, and financial condition.

Federal, state, and local tax rules can adversely impact our results of operations and financial position.

We are subject to federal, state, and local taxes in the United States. Significant judgment is required in sourcing revenue among various jurisdictions, and in determining the provision for income taxes. We believe our income tax estimates are reasonable, but such estimates assume no changes in current tax rates. In addition, if the Internal Revenue Service or other taxing authority disagrees with a tax position we have taken, as to sourcing, tax rates, or otherwise, and upon final adjudication, we are required to change our position, we could incur additional tax liability, including interest and penalties. These costs and expenses could have a material adverse impact on our financial condition, results of operations, and cash flows. Additionally, the taxability of our offerings is subject to various interpretations within the taxing jurisdictions in which we operate. Consequently, in the ordinary course of business, a jurisdiction may contest our reporting positions with respect to the application of our tax code to our offerings. A conflicting position taken by a state or local taxation authority on the taxability of our offerings could result in additional tax liabilities and could negatively impact our competitive position in that jurisdiction. If we fail to comply with applicable tax laws and regulations, we could suffer civil or criminal penalties in addition to the delinquent tax assessment. To the extent our offerings are or may be determined to be taxable in a given jurisdiction, the jurisdiction may still increase the tax rate assessed on such offerings. The property and gross receipts taxation of a mobile asset business such as aviation also varies widely among U.S. jurisdictions. The Company seeks to directly or indirectly pass-through such taxes to our customers. In the event we are not able to pass-through any such taxes, our results of operations, financial condition, and cash flows could be adversely impacted.

14For example, several tax proposals have been set forth that would, if enacted, make significant changes to U.S. tax laws. Congress may consider, and could include some or all of these proposals in connection with tax reform that may be undertaken. It is unclear whether these or similar changes will be enacted and, if enacted, how soon any such changes could take effect. The passage of any legislation as a result of these proposals and other similar changes in U.S. federal income tax laws could adversely affect the Company’s business and future profitability.

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For example, several tax proposals have been set forth that would, if enacted, make significant changes to U.S. tax laws. Such prior proposals have included an increase in the U.S. income tax rate applicable to corporations (such as the Company) from 21% to 28%. Congress may consider, and could include some or all of these proposals in connection with tax reform that may be undertaken. It is unclear whether these or similar changes will be enacted and, if enacted, how soon any such changes could take effect. The passage of any legislation as a result of these proposals and other similar changes in U.S. federal income tax laws could adversely affect the Company’s business and future profitability.

The Company may seek to expand its business operations, including to jurisdictions in which tax laws may not be favorable, its obligations may change or fluctuate, become significantly more complex or become subject to greater risk of examination by taxing authorities, any of which could adversely affect the Company’s after-tax profitability and financial results.

In the event that the Company’s business expands domestically or internationally, its effective tax rates may fluctuate widely in the future. Future effective tax rates could be affected by operating losses in jurisdictions where no tax benefit can be recorded under GAAP, changes in deferred tax assets and liabilities, or changes in tax laws. Factors that could materially affect the Company’s future effective tax rates include, but are not limited to: (a) changes in tax laws or the regulatory environment, (b) changes in accounting and tax standards or practices, (c) changes in the composition of operating income by tax jurisdiction, and (d) pre-tax operating results of the Company’s business.

Additionally, the Company may be subject to significant income, withholding, and other tax obligations in the United States and may become subject to taxation in numerous additional U.S. state and local and non-U.S. jurisdictions with respect to income, operations and subsidiaries related to those jurisdictions. The Company’s after-tax profitability and financial results could be subject to volatility or be affected by numerous factors, including (a) the availability of tax deductions, credits, exemptions, refunds and other benefits to reduce tax liabilities, (b) changes in the valuation of deferred tax assets and liabilities, if any, (c) the expected timing and amount of the release of any tax valuation allowances, (d) the tax treatment of stock-based compensation, (e) changes in the relative amount of earnings subject to tax in the various jurisdictions, (f) the potential business expansion into, or otherwise becoming subject to tax in, additional jurisdictions, (g) changes to existing intercompany structure (and any costs related thereto) and business operations, (h) the extent of intercompany transactions and the extent to which taxing authorities in relevant jurisdictions respect those intercompany transactions, and (i) the ability to structure business operations in an efficient and competitive manner. Outcomes from audits or examinations by taxing authorities could have an adverse effect on the Company’s after-tax profitability and financial condition. Additionally, the Internal Revenue Service and several foreign tax authorities have increasingly focused attention on intercompany transfer pricing with respect to sales of products and services and the use of intangibles. Tax authorities could disagree with the Company’s intercompany charges, cross-jurisdictional transfer pricing or other matters and assess additional taxes. If the Company does not prevail in any such disagreements, the Company’s profitability may be affected.

The Company’s after-tax profitability and financial results may also be adversely affected by changes in relevant tax laws and tax rates, treaties, regulations, administrative practices and principles, judicial decisions and interpretations thereof, in each case, possibly with retroactive effect.

The Company’s ability to utilize its net operating loss and tax credit carryforwards to offset future taxable income may be subject to certain limitations.

In general, under Section 382 of the Internal Revenue Code of 1986, as amended (the “IRC”), a corporation that undergoes an “ownership change” is subject to limitations on its ability to use its pre-change net operating loss carryforwards (“NOLs”) to offset future taxable income. The limitations apply if a corporation undergoes an “ownership change,” which is generally defined as a greater than 50 percentage point change (by value) in its equity ownership by certain stockholders over a three-year period. If the Company has experienced an ownership change at any time since its incorporation, the Company may be subject to limitations on its ability to utilize its existing NOLs and other tax attributes to offset taxable income or tax liability. In addition, future changes in the Company’s stock ownership, which may be outside of the Company’s control, may trigger an ownership change. Similar provisions of state tax law may also apply to limit the Company’s use of accumulated state tax attributes. As a result, even if the Company earns net taxable income in the future, its ability to use its pre-change NOL carryforwards and other tax attributes to offset such taxable income or tax liability may be subject to limitations, which could potentially result in increased future income tax liability to the Company.

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Our aviation business is dependent on third-party operators to provide flights for our customers. If third-party operators’ flights, which are required to serve a substantial portion of our business, are not available or do not perform adequately, our costs may increase and our business, financial condition, and results of operations could be adversely affected.

We rely on flyExclusive as a third-party operator to provide flights for our Vaunt product. As such, we are subject to the risk of disruptions to their operations, which has in the past and may in the future result from many of the same risk factors disclosed in this Annual Report, such as the impact of adverse economic conditions and the inability of third parties to hire or retain skilled personnel, including pilots and mechanics. We expect that as competition in the private aviation market grows, the use of exclusive contractual arrangements with third-party aircraft operators, sometimes requiring volume guarantees and prepayments or deposits, may increase. This may require us to purchase or lease additional aircraft that may not be available or require us to incur significant capital or operating expenditures.

If our efforts to continue to build our strong brand identity and achieve high customer satisfaction and loyalty are not successful, we may not be able to attract or retain customers, and our operating results may be adversely affected.

Maintaining a good reputation globally is important to our business. We must continue to build and maintain a strong brand identity for our products and services, which have expanded over time. We believe that a strong brand identity will continue to be important in attracting customers. If our efforts to promote and maintain our brand are not successful, our operating results and our ability to attract customers will be adversely affected. From time to time, our customers may express dissatisfaction with our products and services, in part due to factors that could be outside of our control, such as the timing and availability of aircraft and service interruptions driven by prevailing political, regulatory, or natural conditions. To the extent dissatisfaction with our products and services is widespread or not adequately addressed, our brand may be adversely impacted, and our ability to attract and retain customers may be adversely affected. With respect to our planned expansion into additional markets, we will also need to establish our brand, and to the extent it is not successful, our business in new markets would be adversely impacted.

Through our marketing, advertising, and communications with our customers, we set the tone for the brand as aspirational but also within reach. We strive to create high levels of customer satisfaction through the experience provided by our team and representatives. The ease and reliability of our services, including our ability to provide high-quality customer support, helps us attract and retain customers. Our ability to provide effective and timely support is largely dependent on our ability to attract and retain skilled employees who can support our customers and are sufficiently knowledgeable about our product and services. As we continue to grow our business and improve our platform, we will face challenges related to providing quality support at an increased scale. Any failure to provide efficient customer support, or a market perception that we do not maintain high-quality support, could adversely affect our reputation, brand, business, financial condition, and results of operations.

Our reputation or brand image also could be adversely impacted by, among other things, any failure to maintain high ethical, social, and environmental sustainability practices for all of our operations and activities, our impact on the environment, public pressure from investors or policy groups to change our policies, such as movements to institute a “living wage,” customer perceptions of our advertising campaigns, sponsorship arrangements or marketing programs, customer perceptions of our use of social media, or customer perceptions of statements made by us, our employees and executives, agents or other third parties. We operate in a highly visible industry that has significant exposure to social media. Negative publicity, including as a result of misconduct by our customers, vendors, or employees, can spread rapidly through social media. Should we not respond in a timely and appropriate manner to address negative publicity, our brand and reputation may be significantly harmed. Damage to our reputation or brand image or loss of customer confidence in our services could adversely affect our business and financial results as well as require additional resources to rebuild or repair our reputation.

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A delay or failure to identify and devise, invest in, and implement certain important technology, business, and other initiatives could have a material impact on our business, financial condition and results of operations.

Our business ~~and~~is ~~the aircraft we operate are~~ characterized by changing technology, introductions and enhancements of models of aircraft and services, and shifting customer demands, including technology preferences. Our future growth and financial performance will depend in part upon our ability to develop, market, and integrate new services and to accommodate the latest technological advances and customer preferences. In addition, the introduction of new technologies or services that compete with our products and services could result in our revenues decreasing over time. If we are unable to upgrade our operations or fleet with the latest technological advances in a timely manner, or at all, our business, financial condition, and results of operations could suffer.

16Our Parslee platform depends on third-party artificial intelligence services, and our business could be adversely affected by changes in the availability, pricing, or performance of those services.

Our Parslee platform relies on large language model APIs provided by third-party vendors, including Microsoft Azure OpenAI, to deliver its core functionality. We do not develop or operate our own large language models. As a result, our ability to deliver Parslee's products and services is dependent on the continued availability, reliability, and performance of these third-party services on commercially reasonable terms. These vendors may change their pricing, modify or discontinue their APIs, impose usage restrictions, degrade service quality, or experience outages, any of which could disrupt Parslee's functionality, increase our operating costs, or require us to identify and integrate alternative providers, which we may be unable to do in a timely manner or at all.

All customer data requiring LLM operations through Parslee is transmitted to these third-party large language model providers. Although we rely on contractual and technical safeguards to protect customer data, a security incident, data breach, or unauthorized use of customer data by a third-party provider could expose us to regulatory action, litigation, reputational harm, and loss of customer confidence. We do not control the data handling practices of these third-party providers, and their practices may change in ways that are inconsistent with our contractual commitments to our customers or with applicable law.

Large language models may generate inaccurate, incomplete, or misleading outputs. Parslee is designed for use in enterprise environments involving complex documents such as contracts and regulatory filings, where accuracy is important. If a customer relies on Parslee's output and that output contains errors attributable to the underlying language model, we could face claims of liability, loss of customers, or damage to our reputation, regardless of whether the error originated with our platform or the third-party model.

The regulatory landscape governing artificial intelligence is evolving rapidly at the federal, state, and international levels. A number of jurisdictions have enacted or proposed legislation addressing AI use in commercial settings, including requirements related to transparency, automated decision-making, data governance, and the use of personal information in AI systems. As our AI-related product offerings develop, we may become subject to additional or changing regulatory requirements. The costs of compliance, or our failure to comply, could have a material effect on our business, financial condition, and results of operations.

Parslee is in an early stage of commercial development, with all current products in beta. Parslee entered its first paying pilot programs in the third quarter of 2025. There is no assurance that Parslee will achieve broader commercial adoption or generate material revenue. Our ability to grow Parslee's business will depend on, among other things, our ability to retain and expand customer relationships, maintain reliable access to third-party AI services, and adapt to a rapidly changing competitive and regulatory environment.

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We rely on our information technology systems to manage numerous aspects of our business. A cyber-based attack of these systems could disrupt our ability to deliver services to our customers and could lead to increased overhead costs, decreased revenues, and harm to our reputation.

We rely on information technology networks and systems to operate and manage our business. Our information technology networks and systems process, transmit, and store personal and financial information, and proprietary information of our business, and also allow us to coordinate our business across our operation bases. Information technology systems also allow us to communicate with our employees and externally with customers, suppliers, partners, and other third parties. While we believe we take reasonable steps to secure these information technology networks and systems, and the data processed, transmitted, and stored thereon, the networks, systems, and data may be susceptible to cyberattacks, viruses, malware, or other unauthorized access or damage (including by environmental, malicious, or negligent acts), which could result in unauthorized access to, or the release and public exposure of, our proprietary information and our customers’ personal information. In addition, cyberattacks, viruses, malware, or other damage or unauthorized access to our information technology networks and systems, could result in damage, disruptions, or shutdowns to our platform. Any of the foregoing could cause substantial harm to our business, require us to make notifications to our customers, governmental authorities, or the media, and could result in litigation, investigations, or inquiries by government authorities, or subject us to penalties, fines, and other losses relating to the investigation and remediation of an attack or other unauthorized access or damage to our information technology systems and networks.

System failures, defects, errors, or vulnerabilities in our website, applications, backend systems, or other technology systems or those of third-party technology providers could harm our reputation and brand and adversely impact our business, financial condition, and results of operations.

Our systems, or those of third parties upon which we rely, may experience service interruptions, outages, or degradation because of hardware and software defects or malfunctions, human error, or malfeasance by third parties or our employees, contractors, or service providers, earthquakes, hurricanes, floods, fires, natural disasters, power losses, disruptions in telecommunications services, fraud, military or political conflicts, terrorist attacks, cyberattacks, or other events. Our insurance may not be sufficient, and we may not have sufficient remedies available from our third-party service providers, to cover all of the losses that may result from interruptions, outages, or degradation.

We may experience system failures and other events or conditions from time to time that interrupt the availability or reduce or affect the speed or functionality of our technology platform. These events could result in losses of revenue due to increased difficulty of booking services through our technology platform, impacts on on-time performance, and resultant errors in operating our business. A prolonged interruption in the availability or reduction in the availability or other functionality of our platform could adversely affect our business and reputation and could result in negative publicity, customer dissatisfaction, or the loss of customers.

We rely on third parties maintaining open marketplaces to distribute our mobile and web applications and we rely on third parties to provide the software we use in certain of our products and services, including the provision of our flight management system. If these third parties interfere with the distribution of our products or services, with our use of the software, or with the interoperability of our platform with the software, our business would be adversely affected.

Our platform’s mobile applications rely on third parties maintaining open marketplaces, including the Apple App Store and Google Play, which make applications available for download. We additionally rely on such third-party marketplaces for access to certain third-party applications that we use to provide our services. We cannot be assured that the marketplaces through which we distribute our applications will maintain their current structures or that such marketplaces will not charge us fees to list our applications for download.

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We rely upon certain third-party software and integrations with certain third-party applications to provide our platform and products and services. As our products expand and evolve, we may use additional third-party software or have an increasing number of integrations with other third-party applications, software, products and services. Third-party applications, software, products and services are constantly evolving, and we may not be able to maintain or modify our platform, including our mobile and web-based applications and our flight management system, to ensure our compatibility with third-party offerings following development changes. Moreover, some of our competitors or technology partners may take actions which disrupt the interoperability of our products or services with their own products or services, or exert strong business influence on our ability to, and the terms on which we may, operate our platform and provide our products and services to customers. In addition, if any of our third-party providers cease to provide access to the third-party software that we use, do not provide access to such software on terms that we believe to be attractive or reasonable, do not provide us with the most current version of such software, modify their products, standards or terms of use in a manner that degrades the functionality or performance of our platform or is otherwise unsatisfactory to us, or give preferential treatment to competitive products or services, we may be required to seek comparable software from other sources, which may be more expensive or inferior, or may not be available at all. Any of these events could adversely affect our business, financial condition, and results of operations.

If we are unable to adequately protect our intellectual property interests or are found to be infringing on the intellectual property interests of others, we may incur significant expense, and our business may be adversely affected.

We believe that our intellectual property, such as our trademarks, domain names, website, mobile and web-based applications, software, copyrights, trade secrets, and inventions, among others, plays an important role in protecting our brand and the competitiveness of our business. If we do not adequately protect our intellectual property, our brand and reputation may be adversely affected, and our ability to compete effectively may be impaired. The Company protects its intellectual property through a combination of trademark, copyright, contracts, and policies. However, the steps we take to protect our intellectual property may be inadequate, and unauthorized parties may attempt to copy or reverse engineer aspects of our intellectual property or obtain and use information that we regard as proprietary and, if successful, may potentially cause us to lose market share, harm our ability to compete, and result in reduced revenue. In addition, our business is subject to the risk of third parties infringing our intellectual property. We may not always be successful in securing protection for, or identifying or stopping infringements of, our intellectual property and we may need to resort to litigation in the future to enforce our rights in this regard. Any such litigation could result in significant costs and a diversion of resources. Further, such enforcement efforts may result in a ruling that our intellectual property rights are unenforceable.

Moreover, companies in the aviation and technology industries are frequently subject to litigation based on allegations of intellectual property infringement, misappropriation, or other violations. As we expand and raise our profile, the likelihood of intellectual property claims being asserted against us grows. Further, we may acquire or introduce new products or services, which may increase our exposure to patent and other intellectual property claims. Any intellectual property claims asserted against us, whether or not having any merit, could be time-consuming and expensive to settle or litigate. If we are unsuccessful in defending a claim, we may be required to pay substantial damages or could be subject to an injunction or agree to a settlement that may prevent us from using our intellectual property or making our Common Stock, products, or services available to customers. Some intellectual property claims may require us to seek a license to continue our operations, and those licenses may not be available on commercially reasonable terms or may significantly increase our operating expenses. If we are unable to procure a license, we may be required to develop non-infringing technological alternatives, which could require significant time and expense. Any of these events could adversely affect our business, financial condition, or operations.

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As part of our growth strategy, we may engage in future acquisitions that could disrupt our business and have an adverse impact on our financial condition.

We have, and intend to continue to explore potential strategic acquisitions of assets and businesses, including partnerships or joint ventures with third parties. Our management has limited experience with acquiring and integrating acquired strategic assets and companies into our business, and there is no assurance that any future acquisitions will be successful. We may not be successful in identifying appropriate targets for transactions. In addition, we may not be able to continue the operational success of acquired businesses or successfully finance or integrate any assets or businesses that we acquire or with which we form a partnership or joint venture. We may have potential write-offs of acquired assets or an impairment of any goodwill recorded as a result of acquisitions. Furthermore, the integration of any acquisition may divert management’s time and resources from our core business and disrupt our operations or may result in conflicts with our business. Any acquisition, partnership, or joint venture may reduce our cash reserves, may negatively affect our earnings and financial performance, and, to the extent financed with the proceeds of debt, may increase our indebtedness, and, to the extent acquired or financed through equity issuance, dilute our current investors. We cannot ensure that any acquisition, partnership, or joint venture we make will not have a material adverse effect on our business, financial condition, and results of operations.

Acquisition transactions involve risks, including, but not limited to:

•insufficient revenue to offset liabilities assumed;

•inability to obtain any required third-party approvals;

•requirements to enter into restrictive covenants in connection with obtaining third-party consents;

•inadequate return of capital;

•regulatory or compliance issues, including securing and maintaining regulatory approvals;

•unidentified issues not discovered in due diligence;

•integrating the operations or (as applicable) separately maintaining the operations;

•financial reporting;

•managing geographically dispersed operations;

•potential unknown risks associated with an acquisition;

•unanticipated expenses related to acquired businesses or technologies and their integration into our existing business or technology;

•the potential loss of key employees, customers or partners of an acquired business; or

•the tax effects of any acquisitions.

We may never realize the full value of our intangible assets or our long-lived assets, causing us to record impairments that may materially adversely affect our financial conditions and results of operations.

In accordance with applicable accounting standards, we are required to test our indefinite-lived intangible assets for impairment on an annual basis, or more frequently where there is an indication of impairment. In addition, we are required to test certain of our other assets for impairment where there is any indication that an asset may be impaired, such as our market capitalization being less than the book value of our equity.

We may be required to recognize losses in the future due to, among other factors, ~~extreme fuel price volatility,~~ tight credit markets, government regulatory changes, decline in the fair values of certain tangible or intangible assets, unfavorable trends in historical or forecasted results of operations and cash flows, and an uncertain economic environment, as well as other uncertainties.

We can provide no assurance that a material impairment loss of tangible or intangible assets will not occur in a future period. The value of our aircraft could also be impacted in future periods by changes in supply and demand for these aircraft. Such changes in supply and demand for certain aircraft types could result from the grounding of aircraft. An impairment loss could have a material adverse effect on our financial condition and results of operations.

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Risks Related to Legal and Regulatory Matters

Because our software could be used to collect and store personal information, privacy concerns in the territories in which we operate could result in additional costs and liabilities to us or inhibit sales of our software.

The regulatory framework for privacy issues worldwide is rapidly evolving and is likely to remain uncertain for the foreseeable future. Many government bodies and agencies have adopted or are considering adopting laws and regulations regarding the collection, use, storage, and disclosure of personal information and breach notification procedures. We are also required to comply with laws, rules, and regulations relating to data security. Interpretation of these laws, rules, and regulations and their application to our software and professional services in applicable jurisdictions is ongoing and cannot be fully determined at this time.

In the United States, these include rules and regulations promulgated under the authority of the Federal Trade Commission, the Electronic Communications Privacy Act, the Computer Fraud and Abuse Act, the California Consumer Privacy Act of 2018 (the “CCPA”), and other state and federal laws relating to privacy and data security. By way of example, the CCPA requires covered businesses to provide new disclosures to California residents, provide them new ways to opt-out of certain disclosures of personal information, and allows for a new cause of action for data breaches. It includes a framework that includes potential statutory damages and private rights of action. There is some uncertainty as to how the CCPA, and similar privacy laws emerging in other states, could impact our business as it depends on how these laws will be interpreted. As we expand our operations, compliance with privacy laws may increase our operating costs.

We are subject to the Telephone Consumer Protection Act and similar state laws in connection with our marketing activities, and noncompliance could result in significant financial exposure.

In connection with our marketing efforts, including those related to our Vaunt subscription program and other consumer-facing products and services, we engage in various outbound communications to prospective and existing customers, including telephone calls, text messages, and email campaigns. These activities are subject to the Telephone Consumer Protection Act of 1991, as amended (the “TCPA”), and its implementing regulations, as well as analogous state consumer protection statutes. The TCPA imposes significant restrictions on the use of autodialed and prerecorded telephone calls and text messages to wireless numbers, and requires prior express written consent for certain marketing communications. Violations of the TCPA may be enforced through private class action lawsuits and by the Federal Communications Commission and state attorneys general, with statutory damages ranging from $500 to $1,500 per violation. Because each unsolicited call or text message to a single recipient may constitute a separate violation, aggregate exposure in class action litigation can be substantial.

Although we have implemented policies and procedures designed to comply with the TCPA and similar laws, the legal landscape surrounding the TCPA continues to evolve, including ongoing judicial and regulatory developments regarding the definition of an "automatic telephone dialing system," the scope of consent requirements, and the FCC's one-to-one consent rules. There can be no assurance that our compliance measures, or those of third-party vendors conducting outreach on our behalf, will be deemed adequate under current or future interpretations of the law. To the extent any third-party vendor uses methods or contacts individuals in a manner that does not satisfy applicable consent requirements, we could face vicarious liability for such conduct. Any actual or alleged noncompliance with the TCPA or similar laws could result in costly litigation, significant settlement payments or judgments, reputational harm, and increased compliance costs, any of which could have a material adverse effect on our business, financial condition, and results of operations.

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Risks Related to Our Contractual Obligations

Our obligations in connection with our contractual obligations, including debt financing obligations, could impair our liquidity and thereby harm our business, results of operations, and financial condition.

We have significant debt financing obligations, and we may incur additional obligations as we expand our operations. OnThe ~~October~~ability 5,to ~~2022,~~timely wepay ~~entered~~our ~~into~~existing aor ~~Pre-Delivery~~future ~~Payment~~contractual ~~Agreement~~obligations, ~~(“PDP~~including ~~Agreement”)~~required ~~with~~payments aunder ~~Shearwater~~the ~~Global~~Convertible ~~Capital~~Notes ~~entity~~(as ~~for~~described ~~the~~below), ~~financing~~will ofdepend ~~PDP~~on ~~Agreement~~the ~~payments~~results onof ~~four~~our ~~Gulfstream~~operations, ~~G280s~~cash ~~under~~flow, ~~four~~liquidity, ~~separate~~and ~~purchase~~ability ~~agreements~~to ~~executed~~secure inadditional ~~March~~financing, ~~2022~~which ~~(“G280~~will ~~Purchase~~in ~~Agreements”).~~turn ~~The~~depend ~~PDP~~on, ~~Agreement~~among isother ~~secured~~things, bythe ~~all~~success of our ~~rights~~current inbusiness ~~the~~strategy, ~~G280~~U.S. ~~Purchase~~and ~~Agreements,~~global ~~all~~economic ofand ~~the~~political ~~reserves~~conditions, ~~under~~ the ~~PDP~~availability ~~Agreement,~~and ~~each~~cost of ~~the Aircraft~~financing, and ~~all~~other ~~present~~factors orthat ~~future~~may ~~additions,~~be ~~attachments,~~beyond orour ~~accessories~~control. ~~thereto~~If ~~and~~our ~~replacements~~liquidity ~~thereof~~is materially diminished, ~~all~~our ~~engines~~cash ~~and~~flow ~~avionics,~~available ~~all~~to ~~tools,~~fund ~~manuals~~our working capital requirements, debt service ~~records~~obligations, ~~software~~capital expenditures, and ~~similar~~strategic ~~information~~initiatives ~~and~~may ~~materials~~be ~~related~~materially toand ~~each~~adversely ~~G280~~affected, ~~all~~or ~~payments,~~we ~~amounts,~~may ~~refunds,~~not ~~rebates,~~be ~~and~~able ~~all~~to ~~other~~realize ~~amounts~~the benefits of, ~~any~~or ~~kind~~otherwise ~~whatsoever~~maintain, ~~relating~~certain torelationships ~~any~~with orour ~~all~~business ofpartners. ~~the~~We ~~Purchase~~cannot ~~Agreements~~be ~~and/or~~assured ~~any~~that orour ~~all~~operations ofwill ~~the~~generate ~~aircraft,~~sufficient ~~and~~cash ~~the~~flow ~~products,~~to ~~proceeds,~~make ~~rents,~~any ~~and~~required ~~profits~~payments, ~~therefrom~~ or ~~thereof.~~that ~~The~~we ~~PDP~~will ~~Agreement~~be ~~provides~~able ~~for~~to aobtain ~~Twelve~~financing ~~and~~to ~~Half~~make ~~Percent~~expenditures ~~(12.5%)~~in ~~interest~~pursuit ~~rate~~of onour ~~all~~strategic ~~PDP~~initiatives. ~~Agreement~~The ~~promissory~~amount ~~notes~~of ~~(“PDP~~our ~~Notes”)~~contractual ~~issued~~obligations byand ~~the~~timing ~~lender~~of ~~for~~required payments ~~made~~could ~~under~~have ~~the~~a ~~PDP~~material ~~Agreement,~~adverse ~~for~~effect anon ~~aggregate~~our ~~principal~~business, ~~balance~~results of upoperations, toand ~~$40.5~~financial ~~million~~condition.

The ability to timely pay our existing or future contractual obligations, including required payments under the PDP Notes and the Notes, will depend on the results of our operations, cash flow, liquidity, and ability to secure additional financing, which will in turn depend on, among other things, the success of our current business strategy, U.S. and global economic and political conditions, the availability and cost of financing, and other factors that may be beyond our control. If our liquidity is materially diminished, our cash flow available to fund our working capital requirements, debt service obligations, capital expenditures, and strategic initiatives may be materially and adversely affected, or we may not be able to realize the benefits of, or otherwise maintain, certain relationships with our business partners. We cannot be assured that our operations will generate sufficient cash flow to make any required payments, or that we will be able to obtain financing to make expenditures in pursuit of our strategic initiatives. The amount of our contractual obligations and timing of required payments could have a material adverse effect on our business, results of operations, and financial condition.

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Agreements governing our debt obligations include financial and other covenants that provide limitations on our business and operations under certain circumstances, and failure to comply with any of the covenants in such agreements could adversely impact us.

Our financing agreements, including those in connection with the ~~PDP~~Convertible Notes, ~~the~~(as ~~Notes~~defined below), and other financing agreements that we may enter into from time to time, contain certain affirmative, negative, and financial covenants, and other customary events of default. Certain covenants in our financing agreements are subject to important exceptions, qualifications, and cure rights, including, under limited circumstances, the requirement to provide additional collateral or prepay or redeem certain obligations. In addition, certain of our financing agreements are or may be cross-collateralized, such that an event of default or acceleration of indebtedness under one agreement could result in an event of default under other financing agreements. If we fail to comply with such covenants, if any other events of default occur for which no waiver or amendment is obtained, or if we are unable to timely refinance the debt obligations subject to such covenants or take other mitigating actions, the holders of our indebtedness could, among other things, declare outstanding amounts immediately due and payable and, subject to the terms of relevant financing agreements, repossess or foreclose on collateral, including certain of our aircraft or other assets used in our business. The acceleration of significant indebtedness or actions to repossess or foreclose on collateral may cause us to renegotiate, repay, or refinance the affected obligations, and there is no assurance that such efforts would be successful or on terms we deem attractive. In addition, any acceleration or actions to repossess or foreclose on collateral under our financing agreements could result in a downgrade of any credit ratings then applicable to us, which could result in additional events of default or limit our ability to obtain additional financing.

Stockholders may experience dilution of their ownership interest due to the issuance of additional shares of Common Stock upon the conversion of ~~the~~certain ~~Notes~~convertible notes, especially since the ~~Notes~~notes have fluctuating conversion rates that are set at a discount to market prices of our shares of Common Stock during the period immediately following conversion.

On December 4, 2024, the Company entered into a Securities Purchase Agreement (“Securities Purchase Agreement”)., ~~Under~~pursuant ~~the~~to ~~Securities~~which ~~Purchase Agreement,~~ the Company has agreed to issue 10% original issue discount senior unsecured convertible promissory notes (“Convertible Notes”) in an aggregate original principal amount of up to $36,000,000, which ~~will~~are be convertible into shares of the Company’s common stock. The closing of the first tranche was consummated on December 4, 2024, and the Company issued the initial Convertible Note for an aggregate original principal amount of $4,500,000. The closing of the second tranche was consummated on June 13, 2025, and the Company issued the second tranche Convertible Note for an aggregate original principal amount of $1,500,000. The closing of the third tranche was consummated on July 21, 2025, and the Company issued the third tranche Convertible Note for an aggregate original principal amount of $3,000,000. The closing of the fourth tranche was consummated on October 16, 2025, and the Company issued the fourth tranche Convertible Note for an aggregate original principal amount of $2,220,000. Issuances of additional ~~Note~~Convertible Notes are subject to the terms and conditions of the Securities Purchase Agreement. The shares of Common Stock issuable upon full conversion of the Convertible Notes issued and issuable under the Securities Purchase Agreement would result in significant dilution to existing stockholders.

The following table sets forth, for illustrative purposes only, the aggregate amount of our common stock issuable upon conversion of the notes that may be issued under the Securities Purchase Agreement at varying purchase prices and the percentage of outstanding common stock after giving effect to the applicable 4.99% or 9.99% Beneficial Ownership Limitation.25

Assumed Average Price Per Share (1)	Number of Common Shares to be Issued, After Giving Effect to the 4.99% Beneficial Ownership Limitation	Percentage of Outstanding Common Stock After Giving Effect to the Issuance to the Investor, Subject to the 4.99% Beneficial Ownership Limitation (2)	Number of Common Shares to be Issued, After Giving Effect to the 9.99% Beneficial Ownership Limitation	Percentage of Outstanding Common Stock After Giving Effect to the Issuance to the Investor, Subject to the 9.99% Beneficial Ownership Limitation (3)
$1.83(4)	99,836	4.99%	210,975	9.99%
$1.879(5)	99,836	4.99%	210,975	9.99%
$1.91(6)	99,836	4.99%	210,975	9.99%

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(1) For the avoidance of any doubt, this price reflects the purchase price after calculation (i.e. after discounts to the market price of our shares) in accordance with the terms of the initial tranche Note and the Securities Purchase Agreement.

(2) The denominator is based on 1,900,893 shares of our common stock outstanding as of March 21, 2025, adjusted to include the issuance of the number of shares of common stock set forth in the second column which we would have issued to the investor based on the applicable assumed purchase price per share and assuming that (i) all Notes remain outstanding until their respective maturity dates and (ii) the Payment Premium (as defined in the Notes) and interest on the Notes are paid in shares of common stock subject to the limitation on issuance pursuant to the 4.99% Beneficial Ownership Limitation.

(3) The denominator is based on 1,900,893 shares of our common stock outstanding as of March 21, 2025, adjusted to include the issuance of the number of shares of common stock set forth in the second column which we would have issued to the Investor based on the applicable assumed purchase price per share and assuming that (i) all Notes remain outstanding until their respective maturity dates and (ii) the Payment Premium (as defined in the Notes) and interest on the Notes are paid in shares of common stock, subject to the limitation on issuance pursuant to the 9.99% Beneficial Ownership Limitation.

(4) Represents the initial Floor Price of the Note issued in the initial tranche, as adjusted pursuant to the 1-for-25 reverse stock split effected by the Company on February 24, 2025.

(5) Represents the midpoint between the initial Floor Price and current Conversion Price of the Note issued in the Initial Tranche, as adjusted pursuant to the 1-for-25 reverse stock split effected by the Company on February 24, 2025.

(6) Represents the current Conversion Price of the Note issued in the Initial Tranche, as adjusted pursuant to the 1-for-25 reverse stock split effected by the Company on February 24, 2025.

In addition, in order to raise additional capital, we may in the future offer additional shares of our Common Stock or other securities convertible into or exchangeable for our Common Stock at prices that may not be the same as the price per share as prior issuances of Common Stock. This includes, without limitation, consummating additional transactions involving the Notes. We may not be able to sell shares or other securities in any other offering at a price per share that is equal to or greater than the price per share previously paid by investors, and investors purchasing shares or other securities in the future could have rights superior to existing stockholders. The price per share at which we sell additional shares of our Common Stock or securities convertible into Common Stock in future transactions may be higher or lower than the prices per share. We cannot predict the effect, if any, that market sales of those shares of Common Stock or the availability of those shares for sale will have on the market price of our Common Stock.

Risks Related to Ownership of Our Securities and Being a Public Company

If we are unable to comply with the continued listing requirements of the NYSE American, ~~including satisfying the obligations set forth in the Deficiency Letter with respect to our stockholders’ equity being below the NYSE American’s minimum level,~~ then our Common Stock will be delisted from the NYSE American.

Our Common Stock is currently listed on the NYSE American under the symbol “SOAR”. If we are unable to comply with the continued listing requirements of the NYSE American, our Common Stock will be delisted from the NYSE American, which will limit investors’ ability to effect transactions in our Common Stock and subject us to additional trading restrictions. For example, in order to maintain our listing, we must maintain a minimum amount of stockholders’ equity. In addition to this objective standard, NYSE American may delist the securities of any issuer for other reasons involving the judgment of NYSE American, including if our common stock sells at a low price per share for a substantial period of time.

22In June 2024, the Company was notified by the NYSE American that the Company was not in compliance with NYSE American’s Minimum Stockholders’ Equity Requirements. The Company submitted its Compliance Plan on July 18, 2024, to the NYSE American outlining certain actions the Company has taken and will take to regain compliance with the Minimum Stockholders’ Equity Requirements by December 18, 2025. On September 5, 2024, NYSE American accepted the Compliance Plan and required quarterly updates from the Company on the progress that the Company has made regarding the Compliance Plan. NYSE American also granted the Company through December 18, 2025, to regain compliance with the Minimum Stockholders’ Equity Requirements. Until such date, the Company was subject to quarterly review by NYSE American to determine if the Company was making progress consistent with the Compliance Plan. If the Company did not regain compliance with the Minimum Stockholders’ Equity Requirements by December 18, 2025, or if the Company did not make sufficient progress consistent with its Compliance Plan, then the NYSE American could have initiated delisting proceedings to delist the Company’s Common Stock from the NYSE American.

~~Table~~On December 18, 2025, the Company received a letter from NYSE Regulation confirming which stated that the Company had regained compliance with all the NYSE American continued listing standards set forth in Part 10 of ~~Contents~~the Company Guide. Specifically, the Company resolved the continued listing deficiencies with respect to the Minimum Stockholders’ Equity Requirements. The Company will be subject to NYSE American’s normal continued listing monitoring. However, if the Company fails to comply with any of the continued listing requirements within one year of the date of the Compliance Notice, NYSE American will examine the relationship between the two incidents of noncompliance and re-evaluate the Company’s method of financial recovery from the first incident. As a result, NYSE American could, depending on the circumstances, truncate the compliance procedures described in the Company Guide, or immediately initiate delisting proceedings.

InThe ~~June 2024, the~~ Company ~~was notified by the NYSE American that the Company~~ is ~~not~~committed ~~in compliance with NYSE American’s Minimum Stockholders’ Equity Requirements. The Company submitted its Compliance Plan on July 18, 2024,~~ to ~~the~~maintaining ~~NYSE American outlining certain actions the Company has taken and will take to regain~~ compliance with the ~~Minimum~~continued ~~Stockholders’~~listing ~~Equity Requirements by December 18, 2025~~requirements. OnAlthough ~~September 5, 2024, NYSE American accepted~~ the ~~Compliance Plan and required quarterly updates from the~~ Company onbelieves ~~the~~it ~~progress~~will ~~that~~be ~~the~~able ~~Company has made regarding the Compliance Plan. NYSE American also granted the Company through December 18, 2025,~~ to ~~regain~~maintain compliance with ~~the Minimum Stockholders’ Equity Requirements. Until~~ such ~~date~~requirements, ~~the~~there ~~Company~~can ~~will~~ be ~~subject~~no toassurance ~~quarterly~~that ~~review~~it bywill ~~NYSE~~be ~~American~~able to ~~determine~~maintain ~~if the Company is making progress consistent with the Compliance Plan. If the Company does not regain~~ compliance with the Minimum Stockholders’ Equity Requirements by December 18, 2025, or if the Company does not make sufficient progress consistent with its Compliance Plan, then the NYSE American may initiate delisting proceedings to delist the Company’s Common Stock from the NYSE American.

Although the Company believes it will be able to achieve compliance with the Minimum Stockholders’ Equity Requirements and other NYSE American listing requirements, there can be no assurance that the Company will be able to regain compliance with all applicable requirements or maintain compliance with any other listing requirements within the time frame required by NYSE American or at all. NYSE American’s determination that we fail to meet the continued listing standards of NYSE American may result in our securities being delisted from NYSE American.

If our Common Stock is delisted from the NYSE American, then we could face significant and material adverse consequences as a result and our investors will experience limitations upon their ability to effect transactions in our Common Stock.

If the NYSE American delists our Common Stock from trading on its exchange, including if such delisting were to occur immediately without being able to submit a compliance plan or appeal such delisting, and we are not able to list our securities on another national securities exchange (though we expect the common stock would qualify to be quoted on an over-the-counter market), we could face significant material adverse consequences, including:

•a limited availability of market quotations for our securities;

•reduced liquidity for our securities;

•substantial impairment on our ability to raise additional funds;

•loss of institutional investor interest and a decreased ability to issue additional securities or obtain additional financing in the future;

•a determination that our Common Stock is a “penny stock,” which will require brokers trading in our Common Stock to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for our securities;

•a limited amount of news and analyst coverage; and

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•potential breaches of representations or covenants of our agreements pursuant to which we made representations or covenants relating to our compliance with applicable listing requirements, which, regardless of merit, could result in costly litigation, significant liabilities and diversion of our management’s time and attention and could have a material adverse effect on our financial condition, business and results of operations.

The National Securities Markets Improvement Act of 1996, which is a federal statute, prevents or preempts the states from regulating the sale of certain securities, which are referred to as “covered securities.” Because our Common Stock is listed on the NYSE American, our Common Stock qualifies as a covered securities under such statute. Although the states are preempted from regulating the sale of our securities, the federal statute does allow the states to investigate companies if there is a suspicion of fraud, and, if there is a finding of fraudulent activity, then the states can regulate or bar the sale of covered securities in a particular case. If we were no longer listed on the NYSE American, our Common Stock would not be a covered security, and we would be subject to regulation in each state in which we offer our Common Stock and other Company securities.

23The Company has identified material weaknesses in its internal control over financial reporting, which could, if not remediated, adversely affect its ability to report its financial condition and results of operations in a timely and accurate manner. If the Company fails to comply with requirements relating to internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act, the business could be harmed and its stock price could decline.

Rules adopted by the SEC pursuant to Section 404 of the Sarbanes-Oxley Act of 2002 require the Company to assess its internal control over financial reporting annually. The rules governing the standards that must be met for management to assess its internal control over financial reporting are complex. They require significant documentation, testing, and possible remediation of any significant deficiencies in and/or material weaknesses of internal controls in order to meet the detailed standards under these rules. Additionally, it is necessary for us to maintain effective internal control over financial reporting to prevent fraud and errors and to maintain effective disclosure controls and procedures so that we can provide timely and reliable financial and other information. These obligations are intended, among other things, to ensure that information required to be disclosed by us in filings with the SEC is recorded, processed, summarized and reported within the time periods specified in SEC rules, and that information required to be disclosed in reports under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is accumulated and communicated to our management, including our principal executive and financial officers. A failure to maintain adequate internal controls may adversely affect the Company’s ability to provide financial statements that accurately reflect its financial condition and report information on a timely basis. The Company has evaluated its internal control over financial reporting and determined that it was not effective as of December 31, 2025 and that material weaknesses existed as of that date, and the Company has also concluded that its disclosure controls and procedures were not effective as of December 31, 2025 due to material weaknesses in its internal control over financial reporting. See Item 9 – Controls and Procedures – Report of Management on Internal Control over Financial Reporting.

The Company has began, and will continue the process of remediating its identified material weakness. Management’s continuing evaluation and work to enhance the Company’s internal control over financial reporting has required and will continue to require the dedication of additional resources and management time and expense If the Company fails to maintain the effectiveness of its internal controls, including any failure to implement new or improved controls, or if the Company experiences difficulties in their implementation, the Company’s business and operating results could be harmed, and the Company could fail to meet its financial reporting obligations, which in turn could affect the market price of the Company’s securities. In addition, perceptions of the Company among customers, lenders, investors, securities analysts and others could also be adversely affected. The current material weaknesses or any weaknesses or deficiencies identified in the future could also hurt confidence in the Company’s business and the accuracy and completeness of the Company’s financial statements, and adversely affect the Company’s ability to do business with these groups.

The Company can give no assurances that the remediation measures it has implemented and will begin implementing, or any future measures it may take, will remediate the material weaknesses identified or that any additional material weaknesses will not arise or be identified in the future due to the Company’s failure to implement and maintain effective internal control over financial reporting. In addition, even if the Company is successful in strengthening its controls and procedures, those controls and procedures may not be effective to prevent or identify irregularities or ensure the fair and accurate presentation of the Company’s financial statements included in its periodic reports filed with the SEC.

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IfIssuances ~~we fail to maintain an effective system~~ of ~~disclosure controls and internal control over financial reporting,~~ our ~~ability~~Common toStock ~~produce~~in ~~timely~~the ~~and~~future ~~accurate financial statements or comply with applicable regulations~~ could bedilute ~~impaired,~~existing ~~which~~stockholders ~~may~~and adversely affect ~~investor confidence in us and, as a result,~~ the market price of ~~the~~our Common Stock.

We ~~are~~have ~~required~~the authority to ~~maintain~~issue ~~effective~~up ~~disclosure~~to ~~controls~~200,000,000 ~~and~~shares ~~procedures~~of ~~and~~Common ~~internal~~Stock ~~control~~and ~~over~~1,000,000 ~~financial~~shares ~~reporting.~~of Aspreferred astock, ~~newly~~and ~~public~~to ~~company,~~issue weoptions ~~continue~~and warrants to ~~refine~~purchase ~~our~~shares ~~disclosure~~of ~~controls~~our ~~and~~Common ~~other~~Stock ~~procedures~~without ~~that~~shareholder ~~are~~approval, ~~designed~~subject to ~~ensure~~certain ~~that~~limitations ~~information~~imposed ~~required~~by toapplicable bestock ~~disclosed~~exchange byrules. usIn inaddition, ~~filings~~during ~~with~~2025 we put an at-the-market ~~SEC~~(“ATM”) isprogram ~~recorded,~~in ~~processed,~~place ~~summarized~~to ~~and~~allow ~~reported~~us ~~within~~to ~~the~~sell ~~time~~up ~~periods~~to ~~specified~~$9,300,000 in ~~SEC~~shares ~~rules,~~of ~~and~~our Common Stock under that ~~information~~program ~~required~~from time to time. Future issuances of our securities could be ~~disclosed~~at inprices ~~reports~~substantially ~~under~~below the ~~Securities~~price ~~Exchange~~paid ~~Act~~for our Common Stock by our current stockholders. Issuances of ~~1934,~~our asCommon ~~amended~~Stock ~~(the~~could ~~“Exchange~~result ~~Act”),~~in isdilution ~~accumulated~~of ~~and~~the ~~communicated~~ownership tointerests ~~our~~of ~~management~~existing stockholders, ~~including~~which ~~our~~may ~~principal~~further ~~executive~~dilute common stock book value, and ~~financial~~that ~~officers.~~dilution may be material.

We will continue to refine our internal control over financial reporting. We will be required to make a formal assessment of the effectiveness of our internal control over financial reporting and once we cease to be an emerging growth company, we will be required to include an attestation report on internal control over financial reporting issued by our independent registered public accounting firm. To achieve compliance with these requirements within the prescribed time period, we have been engaging, and will continue to engage, in a process to document and evaluate our internal control over financial reporting. This process is both costly and challenging, and requires us to dedicate significant internal resources. We may also engage outside consultants and hire new employees with the requisite skill set and experience. We have assessed and documented the adequacy of our internal control over financial reporting, validated through testing that controls are functioning as documented and implemented a continuous reporting and improvement process for internal control over financial reporting. There is a risk that we will not be able to conclude, within the prescribed time period or at all, that our internal control over financial reporting is effective as required by Section 404 of the Sarbanes-Oxley Act. Moreover, our testing, or the subsequent testing by our independent registered public accounting firm, may reveal additional deficiencies in our internal control over financial reporting that are deemed to be material weaknesses.

Any failure to implement and maintain effective disclosure controls and procedures and internal control over financial reporting, including the identification of one or more material weaknesses, could cause investors to lose confidence in the accuracy and completeness of our financial statements and reports, which would likely adversely affect the market price of the Common Stock. In addition, we could be subject to sanctions or investigations by the NYSE American, the SEC and other regulatory authorities.

Sales of Common Stock, or the perception of such sales, by us in the public market or otherwise, could cause the market price for our Common Stock to decline.

The sale of Common Stock in the public market or otherwise, or the perception that such sales could occur, could harm the prevailing market price of our Common Stock. These sales, or the possibility that these sales may occur, also might make it more difficult for us to sell equity securities in the future at a time and at a price that we deem appropriate. Resales of Common Stock may cause the market price of our securities to drop significantly, even if our business is doing well.

In the future, we may also issue securities in connection with investments or acquisitions. The amount of shares of Common Stock issued in connection with an investment or acquisition could constitute a material portion of the then-outstanding shares of Common Stock. Ultimately, any issuance of additional securities in connection with investments or acquisitions may result in additional dilution to stockholders.

Anti-takeover provisions contained in the Company’s Certificate of Incorporation and applicable laws could impair a takeover attempt.

The Company’s Certificate of Incorporation affords certain rights and powers to the Company’s board of directors (the “Board”) that could contribute to the delay or prevention of an acquisition that it deems undesirable, such as establishing a classified Board so that not all members of our Board are elected at one time. Delaware law also permits the Company to take certain actions that could have the effect of rendering more difficult, delaying or preventing an acquisition deemed undesirable by our Board, such as:

•authorizing the issuance of “blank check” preferred stock that could be issued by our Board to increase the number of outstanding shares and thwart a takeover attempt;

•requiring cause to remove directors;

•requiring all stockholder actions to be taken at a meeting of our stockholders;

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•establishing advance notice and duration of ownership requirements for nominations for election to the board of directors or for proposing matters that can be acted upon by stockholders at stockholder meetings;

•prohibiting the use of cumulative voting for the election of directors; and

•limiting the ability of stockholders to call special meetings or amend our bylaws.

These provisions, alone or together, could delay or prevent hostile takeovers and changes in control or changes in our management to the extent permitted, whether by our Certificate of Incorporation or merely as a function of Delaware law. Any provision of our Certificate of Incorporation, Delaware law, or otherwise that has the effect of delaying, preventing or deterring a change in control could limit the opportunity for our stockholders to receive a premium for their shares of our Common Stock and could also affect the price that some investors are willing to pay for our Common Stock.

Claims for indemnification by our directors and officers may reduce our available funds to satisfy successful third-party claims against us and may reduce the amount of money available to us.

The Delaware General Corporation Law (the “DGCL”) empowers us to indemnify our directors and officers against expenses relating to certain actions, suits or proceedings as provided for therein. In order for such indemnification to be available, the applicable director or officer must not have acted in a manner that constituted a breach of his or her fiduciary duties and involved intentional misconduct, fraud or a knowing violation of law, or must have acted in good faith and reasonably believed that his or her conduct was in, or not opposed to, our best interests. In the event of a criminal action, the applicable director or officer must not have had reasonable cause to believe his or her conduct was unlawful.

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We may indemnify each of our present and future directors, officers, employees or agents who becomes a party or is threatened to be made a party to any suit or proceeding, whether pending, completed or merely threatened, and whether said suit or proceeding is civil, criminal, administrative, investigative, or otherwise, except an action by or in the right of the Company, by reason of the fact that he is or was a director, officer, employee, or agent of the Company, or is or was serving at the request of the Company as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, against expenses, including, but not limited to, attorneys’ fees, judgments, fines, and amounts paid in settlement actually and reasonably incurred by him in connection with the action, suit, proceeding or settlement, provided such person acted in good faith and in a manner which he reasonably believed to be in or not opposed to the best interest of the Company, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful.

The expenses of directors, officers, employees or agents of the Company incurred in defending a civil or criminal action, suit, or proceeding may be paid by the Company as they are incurred and in advance of the final disposition of the action, suit, or proceeding, if and only if the director, officer, employee or agent undertakes to repay said expenses to the Company if it is ultimately determined by a court of competent jurisdiction, after exhaustion of all appeals therefrom, that he is not entitled to be indemnified by the corporation.

No indemnification shall be applied, and any advancement of expenses to or on behalf of any director, officer, employee or agent must be returned to us, if a final adjudication establishes that the person’s acts or omissions involved a breach of any fiduciary duties, where applicable, intentional misconduct, fraud or a knowing violation of the law which was material to the cause of action.

The DGCL further provides that a corporation may purchase and maintain insurance or make other financial arrangements on behalf of any person who is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise for any liability asserted against him and liability and expenses incurred by him in his capacity as a director, officer, employee or agent, or arising out of his status as such, whether or not the corporation has the authority to indemnify him against such liability and expenses. We have secured a directors’ and officers’ liability insurance policy. We expect that we will continue to maintain such a policy.

25Our Certificate of Incorporation designates specific courts as the exclusive forum for substantially all stockholder litigation matters, which could limit the ability of our stockholders to obtain a favorable forum for disputes with us or our directors, officers or employees.

Our Certificate of Incorporation requires, to the fullest extent permitted by law, that derivative actions brought in our name, actions against current or former directors, officers or other employees for breach of fiduciary duty, any action asserting a claim arising pursuant to any provision of the DGCL, our Certificate of Incorporation or Bylaws, any action asserting a claim governed by the internal affairs doctrine of the State of Delaware or any other action asserting an “internal corporate claim” (as defined in Section 115 of the DGCL), confer jurisdiction to the Court of Chancery of the State of Delaware (or, if the Court of Chancery of the State of Delaware does not have jurisdiction, the federal district court for the District of Delaware or other state courts of the State of Delaware), unless we consent in writing to the selection of an alternative forum. This provision would not apply to suits brought to enforce a duty or liability created by the Exchange Act or any other claim for which the federal courts have exclusive jurisdiction. Our Certificate of Incorporation also provides that, unless we consent in writing to the selection of an alternative forum, the federal district courts of the United States shall be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act. This provision may limit a Stockholder’s ability to bring a claim in a judicial forum that it finds favorable for disputes with us and our directors, officers or other employees and may have the effect of discouraging lawsuits against our directors, officers and other employees. Furthermore, stockholders may be subject to increased costs to bring these claims, and the exclusive forum provision could have the effect of discouraging claims or limiting investors’ ability to bring claims in a judicial forum that they find favorable.

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Our Certificate of Incorporation designates specific courts as the exclusive forum for substantially all stockholder litigation matters, which could limit the ability of our Stockholders to obtain a favorable forum for disputes with us or our directors, officers or employees.

Our Certificate of Incorporation requires, to the fullest extent permitted by law, that derivative actions brought in our name, actions against current or former directors, officers or other employees for breach of fiduciary duty, any action asserting a claim arising pursuant to any provision of the DGCL, our Certificate of Incorporation or Bylaws, any action asserting a claim governed by the internal affairs doctrine of the State of Delaware or any other action asserting an “internal corporate claim” (as defined in Section 115 of the DGCL), confer jurisdiction to the Court of Chancery of the State of Delaware (or, if the Court of Chancery of the State of Delaware does not have jurisdiction, the federal district court for the District of Delaware or other state courts of the State of Delaware), unless we consent in writing to the selection of an alternative forum. This provision would not apply to suits brought to enforce a duty or liability created by the Exchange Act or any other claim for which the federal courts have exclusive jurisdiction. Our Certificate of Incorporation also provides that, unless we consent in writing to the selection of an alternative forum, the federal district courts of the United States shall be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act. This provision may limit a Stockholder’s ability to bring a claim in a judicial forum that it finds favorable for disputes with us and our directors, officers or other employees and may have the effect of discouraging lawsuits against our directors, officers and other employees. Furthermore, Stockholders may be subject to increased costs to bring these claims, and the exclusive forum provision could have the effect of discouraging claims or limiting investors’ ability to bring claims in a judicial forum that they find favorable.

In addition, the enforceability of similar exclusive forum provisions in other companies’ certificates of incorporation has been challenged in legal proceedings, and it is possible that, in connection with one or more actions or proceedings described above, a court could rule that this provision in our Certificate of Incorporation is inapplicable or unenforceable. In March 2020, the Delaware Supreme Court issued a decision in Salzberg, et al. v. Sciabacucchi which found that an exclusive forum provision providing for claims under the Securities Act to be brought in federal court is facially valid under Delaware law. We intend to enforce this provision, but we do not know whether courts in other jurisdictions will agree with this decision or enforce it. If a court were to find the exclusive forum provision contained in our Certificate of Incorporation to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions, which could harm our business, prospects, financial condition and operating results.

Our management team has limited experience managing a public company.

Although during the period prior to the Business Combination we expended a significant amount of time, money, and effort on preparing to be a public company, our management team has limited experience managing a publicly traded company, interacting with public company investors and research analysts, and complying with the increasingly complex laws and requirements pertaining to public companies, including those related to timely public disclosures, financial reporting, internal controls, and enterprise risk management. As a result, our management team may not efficiently manage our responsibilities as a public company. As a public company, we are subject to significant regulatory oversight, reporting obligations under U.S. securities laws, and the continuous scrutiny of securities analysts and investors. These obligations and constituents require significant attention from our senior management and could divert their attention away from the day-to-day management of our business, which could result in less time being devoted to management and the achievement of our growth strategy and operational goals.

Failure to adequately comply with the requirements of being a public company, including deficiencies in financial reporting or ineffective disclosure controls and procedures and internal control over financial reporting, could cause investors to lose confidence in our reported financial and other information and materially adversely affect our business, financial condition, and results of operation, as well as severely negatively affect the price of the Common Stock.

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The requirements of being a public company may strain our resources, divert our management’s attention, and affect our ability to attract and retain qualified board members.

We are subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act, and any rules promulgated thereunder, as well as the rules of the NYSE American. The requirements of these rules and regulations increase our legal and financial compliance costs, make some activities more difficult, time-consuming, or costly, and increase demand on our systems and resources. These laws, regulations, and standards are subject to varying interpretations and may evolve over time as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. The Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure controls and procedures and internal controls for financial reporting. In order to maintain and, if required, improve our disclosure controls and procedures and internal control over financial reporting to meet this standard, significant resources and management oversight are required and, as a result, our management’s attention may be diverted from other business concerns.

These rules and regulations can also make it more difficult for us to attract and retain qualified independent members of our Board. Additionally, these rules and regulations make it more difficult and more expensive for us to obtain director and officer liability insurance. We may be required to accept reduced coverage or incur substantially higher costs to obtain coverage. The increased costs of compliance with public company reporting requirements and our potential failure to satisfy these requirements can have a material adverse effect on our operations, business, financial condition, or results of operations.

We may be subject to securities litigation, which is expensive and could divert our management’s attention.

The per share price of our common stock may be volatile and, in the past, companies that have experienced volatility in the market price of their stock have been subject to securities litigation, including class action litigation. Litigation of this type could result in substantial costs and diversion of our management’s attention and resources, which could have a material adverse effect on our business, financial condition, and results of operations. Any adverse determination in litigation could also subject us to significant liabilities.

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Because we became a publicly traded company by means other than a traditional underwritten initial public offering, our stockholders may face additional risks and uncertainties.

Because we became a publicly traded company by means of consummating the Business Combination rather than by means of a traditional underwritten initial public offering, there was no independent third-party underwriter selling the shares of our common stock, and, accordingly, our stockholders did not have the benefit of an independent review and investigation of the type normally performed by an unaffiliated, independent underwriter in a public security offering. Due diligence reviews typically include an independent investigation of the background of the company, any advisors, and their respective affiliates, review of the offering documents and independent analysis of the plan of business and any underlying financial assumptions. Although PACI performed a due diligence review and investigation of Volato, Inc. in connection with the Business Combination, the lack of an independent due diligence review and investigation increases the risk of investment in us because PACI’s due diligence review and investigation may not have uncovered facts that would be important to a potential investor that may have been uncovered by a third-party investigation.

If we became a public company through an underwritten public offering, the underwriters would be subject to liability under Section 11 of the Securities Act for material misstatements and omissions in the initial public offering registration statement. In general, an underwriter is able to avoid liability under Section 11 if it can prove that it “had, after reasonable investigation, reasonable grounds to believe and did believe, at the time the registration statement became effective, that the statements therein (other than the audited financial statements) were true and that there was no omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading.”

The amount of due diligence conducted by PACI and its advisors in connection with the Business Combination may not be as high as would have been undertaken by an underwriter in connection with an initial public offering of Volato, Inc. Accordingly, it is possible that defects in our business operations or problems with our management that would have been discovered if we had conducted an underwritten public offering ~~will~~were not be discovered in connection with the Business Combination, which could adversely affect the market price of our common stock.

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In addition, because we did not become a publicly traded company by means of a traditional underwritten initial public offering, security or industry analysts may not provide, or be less likely to provide, coverage of us. Investment banks may also be less likely to agree to underwrite secondary offerings on behalf of us than they might otherwise be if we had become a publicly traded company by means of a traditional underwritten initial public offering because they may be less familiar with us as a result of more limited coverage by analysts and the media. The failure to receive research coverage or support in the market for our common stock could have an adverse effect on our ability to develop a liquid market for our common stock. The lack of a liquid market for our common stock will adversely affect the stock price.

If securities or industry analysts do not publish research or reports about our business, if they change their recommendations regarding our Common Stock, or if our operating results do not meet their expectations, our Common Stock price and trading volume could decline.

The trading market for our Common Stock will depend in part on the research and reports that securities or industry analysts publish about us and our businesses. If equity research analysts do not commence coverage of us, the trading price for our common stock could be negatively impacted. To the extent equity research analysts do provide research coverage of our Common Stock, we will not have any control over the content and opinions included in their reports. The trading price of our Common Stock could decline if one or more equity research analysts downgrade our securities or publish unfavorable research about our businesses, or if our operating results do not meet analyst expectations. If any equity research analysts cease coverage of us or fail to publish reports on us regularly, demand for our Common Stock could decrease, which could cause the price and trading volume of our Common Stock to decline.

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We qualify as an “emerging growth company” as defined in Section 2(a)(19) of the Securities Act, as modified by the JOBS Act. As such, we take advantage of certain exemptions from various reporting requirements applicable to other public companies that are not emerging growth companies, including (a) the exemption from the auditor attestation requirements with respect to internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act, (b) the exemptions from say-on-pay, say-on-frequency and say-on-golden parachute voting requirements and (c) reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements. As a result, our stockholders may not have access to certain information they deem important. We will remain an emerging growth company until the earliest of (a) the last day of the fiscal year (i) following December 3, 2026, the fifth anniversary of our initial public offering, which closed on December 3, 2021, (ii) in which we have total annual gross revenue of at least $1.235 billion (as adjusted for inflation pursuant to SEC rules from time to time) or (iii) in which we are deemed to be a large accelerated filer, which means the market value of shares of our Common Stock that are held by non-affiliates exceeds $700 million as of the last business day of our prior second fiscal quarter, and (b) the date on which we have issued more than $1.0 billion in non-convertible debt during the prior three year period.

In addition, Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the exemption from complying with new or revised accounting standards provided in Section 7(a)(2)(B) of the Securities Act as long as we are an emerging growth company. An emerging growth company can therefore delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies, but any such election to opt out is irrevocable. We have elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, we, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of our financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

We cannot predict if investors will find our Common Stock less attractive because we will rely on these exemptions. If some investors find our Common Stock less attractive as a result, there may be a less active trading market for our Common Stock and our share price may be more volatile.

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ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 1C. CYBERSECURITY

CYBERSECURITY

Governance

The Company has multi-layer processes to assess, identify, manage and mitigate material risks from cybersecurity threats.

Members of senior leadership, including the ~~Volato Group~~ Board ~~(“Board”)~~, ~~assesses~~assess potential material risks to the business and the Company’s ability to meet strategic priorities, including risks from cybersecurity threats. The Company’s senior leadership receives updates from relevant functional heads or other subject matter specialists on these potential material risks as well as the processes or other steps being taken to manage or mitigate the risks. The senior leadership team includes senior leaders in areas of importance to Company priorities. The Company’s senior leadership assesses and prioritizes risk based on impact to shareholders, operations, and strategic priorities, among other factors. Members of senior leadership ~~discusses~~discuss enterprise risks and compliance programs with the Audit Committee of the Board. The Audit Committee makes reports to the Board, who also receive updates from members of senior management on material risks to the Company.

Risk Management and Strategy

There are no management positions directly responsible for overseeing our cybersecurity risk. The Chief Operating Officer (“COO”) who functions as our head of IT and certain members of management assist with our cybersecurity efforts and risk assessments. The COO has over 10 years of prior experience in information technology and security.

We have developed and implemented cybersecurity and data privacy processes and procedures that are informed by recognized cybersecurity frameworks and standards, including Microsoft Azure CSPM and SOC 2. We use this framework, together with information collected from periodic manual assessments and automated testing, to tailor aspects of our cybersecurity practices given the nature of our assets, operations and business. The Company’s processes to assess, identify and manage material risks from cybersecurity threats include, but are not limited to, the following:

•The members of the information technology team actively monitor threats to the information technology environment. They work with a third party to provide additional 24/7 monitoring of cyber threats. These internal and external cybersecurity teams are empowered to contain network access through various application controls. Structural protections are also in place to mitigate risks of end point failures and provide for continuity of operations.

•The Company uses various systems to manage threats, for example, firewall protections, anti-virus protections, vulnerability scans, among others. Such systems are regularly reviewed for adequacy and potential enhancements.

•The Company employs an information security and training program for our employees, including regular internal communications and ongoing end-user testing to measure the effectiveness of our information security program.

•The Company utilizes a third-party service that provides real-time threat intelligence feeds and global threat data to enhance threat detection capabilities and proactively defend against emerging cyber threats.

•We monitor the location of our geographic location of data sent to third party systems.

In 2023, we conducted an enterprise risk assessment that included an assessment of cybersecurity risk in context with other enterprise-level risks. For additional information regarding potential cybersecurity risks, see relevant business and operational risks under Item 1A, "Risk Factors", of this Annual Report ~~on Form 10-K~~.

In the last three years, we have not experienced a material information security breach incident, or any penalties or settlements related to the same, and the expenses we have incurred from information security breach incidents were immaterial.

ITEM 2. PROPERTIES

We are a remote-first company, founded during the COVID-19 crisis. All of our facilities are located on land that is leased from third parties. We believe that these facilities meet our current and future anticipated needs.

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ITEM 3. LEGAL PROCEEDINGS

From time to time, we are a defendant or plaintiff in various legal proceedings which arise in the normal course of business. As such, we are required to assess the likelihood of any adverse outcomes to these proceedings as well as potential ranges of probable losses. If one or more legal matters were resolved against us in a reporting period for amounts above management’s expectations, our financial condition and operating results for that reporting period could be materially adversely affected.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

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PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information

The Common Stock is listed on NYSE American under the symbol “SOAR” ~~and our Public Warrants are quoted on the over the counter pink market under the symbol “SOARW”~~. On March 10, 2025, the closing price of the Common Stock and our Public Warrants was $1.66 per share and $0.034 per warrant, respectively. The bid quotations reported on the pink market reflect inter-dealer prices, without retail mark-up, mark-down, or commission, and may not represent actual transactions.

Our Public Warrants were listed on the NYSE American until September 10, 2024, and thereafter have been quoted on the over the counter pink market. The following sets forth the high and low bid prices for our Public Warrants during the third and fourth quarters of 2024:

a.Quarter Ended September 30, 2024: High: $0.0379 | Low: $0.0006

b.Quarter Ended December 31, 2024: High: $0.0399 | Low: $0.0007

Holders

As of March 103, ~~2025~~2026, there were approximately ~~483~~450 holders of record of Common Stock. Such number does not include beneficial owners holding shares of the Common Stock through nominees.

Dividend Policy

We have not paid any cash dividends on the Common Stock since inception. We currently intend to retain any future earnings and do not expect to pay any cash dividends in the foreseeable future. Our ability to pay dividends on the Common Stock could be restricted by the terms of any agreement governing other indebtedness we may incur. Any future determination to declare ~~cash~~ dividends will be made at the discretion of the Board, subject to applicable laws, and will depend on a number of factors, including our financial condition, results of operations, capital requirements, contractual restrictions, general business conditions and other factors that the Board may deem relevant.

Recent Sales of Unregistered Securities

~~None~~The Company did not sell any unregistered securities during the year ended December 31, 2025 which were not previously reported in a Current Report on Form 8-K filed by the Company with the SEC.

~~Securities Authorized for Issuance Under Equity Compensation Plans~~ 35

The 2023 Stock Incentive Plan (the “2023 Plan”) was approved at the November 28, 2023 special meeting of PACI stockholders held, in part, to ask such stockholders to vote on a proposal to approve the Business Combination (the “PACI Special Meeting”). In accordance with the 2023 Plan, we have reserved 224,347 shares of Common Stock (as adjusted for the 1-for-25 reverse stock split effected in February 2025) for issuance pursuant to future awards under the 2023 Plan. See “Executive Compensation.”

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ITEM 6. [RESERVED]

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ITEM 7. 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 consolidated financial statements and the related notes. This discussion contains forward-looking statements which involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements for many reasons, including the risks faced by us described in “Risk Factors” ~~starting~~section ~~on page 12~~ and elsewhere in this Annual Report. Unless the context otherwise requires, references in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section to “we,” “us,” “our,” and “the Company” are intended to mean the business and operations of Volato Group, Inc.

Overview of Our Business

Our ~~revenue~~historical ismission ~~generated~~has ~~through~~been ~~airplane~~to ~~sales~~provide ~~and~~our ~~software-as-a-service~~customers ~~subscriptions.~~more ~~Our~~time ~~aircraft~~for ~~ownership~~the ~~program~~rest ~~was~~of antheir ~~asset-lite~~lives ~~model~~by ~~whereby~~providing weconvenient ~~sell each fleet aircraft to a limited liability company (LLC)~~ and ~~sell LLC membership interests to third~~high-~~party~~quality ~~owners.~~travel ~~The~~by ~~LLC~~using ~~then leased~~ the right aircraft ~~back to us~~ for ~~management and charter operation on behalf of~~ the ~~LLC~~mission ~~under~~and 14by ~~C.F.R.~~developing ~~Part 135.~~proprietary Intechnology ~~turn,~~designed ~~program participants (JetShare owners) invested in those special purpose entities~~ to ~~fund~~make the ~~aircraft~~travel ~~purchase.~~experience Wemore ~~operated~~seamless. ~~the~~Our ~~aircraft~~revenue onis ~~behalf~~generated ofthrough ~~the~~airplane ~~special~~sales ~~purpose entity~~ and ~~entered~~software-as-a-service ~~into charter agreements with the individual JetShare owners to provide preferential access and charter pricing for our HondaJet fleet~~subscriptions.

In September 2024, we entered into an agreement with flyExclusive, a leading provider of private jet charter services, to transition our aircraft ownership program fleet operations to flyExclusive. This move iswas ~~expected~~intended to bring substantial cost savings and provide Volato with the opportunity to focus on what it believes to be its high-growth areas, including aircraft sales and products and services utilizing our proprietary software. Volato ~~expects~~sought to benefit from the margins on aircraft sales without the burden of operational costs, while also generating revenue from its proprietary software, including the Vaunt platform, Volato’s ~~successful~~ empty leg consumer app. In the fourth quarter of 2024, we transferred the aircraft lease agreements to flyExclusive and have no further obligations under the aircraft lease agreements or control over such flight operations. Items related to our aircraft ownership program fleet operations are now included in discontinued operations.

Financial highlights for the ~~year~~twelve months ended December 31, ~~2024~~2025 include:

•We generated total revenue of $4678.36 million, an increase of $1039.75 million, or 30101%, compared to the year ended December 31, ~~2023~~2024, primarily related to an increase in aircraft sales as we took delivery of ~~$16.7~~three ~~million~~Gulfstream asG280’s in 2025 (whereas we took delivery of ~~our~~one ~~first~~aircraft ~~Gulfstream~~in ~~G280;~~2024).

•~~Net~~Operating ~~loss~~income ~~from continuing operations~~ was $214.90 million compared to an operating loss of $208.6 million in ~~2023~~2024. ~~The~~Operating ~~decrease~~income inwas ~~net~~primarily ~~loss~~the ~~from~~result ~~continuing~~of ~~operations~~cost ~~was~~reductions ~~the~~implemented ~~result~~during of2024 ~~higher~~that ~~plane~~continued during 2025 together with the sale ~~revenue~~of ~~mentioned~~three ~~above,~~Gulfstream ~~and;~~G280s during 2025.

•WeNet ~~incurred~~income was $5.2 million compared to a net loss of $40.6 million ~~for~~in 2024. Net income in 2025 was primarily the ~~year~~result ~~ended~~of ~~December~~settlements ~~31,~~of ~~2024~~member deposits, ~~representing~~insider deposits and liabilities at a ~~$12.2~~gain, ~~million~~that ~~decrease~~are inreflected ~~loss~~as ~~over~~“Other income, net” or “Net income from discontinued operations, net of taxes” in the ~~prior~~statements ~~year~~of operations.

Recent Developments

On July 28, 2025, the Company entered into the Merger Agreement with Merger Sub and M2i, pursuant to which Merger Sub will merge with and into M2i, with M2i surviving the Merger as a wholly-owned subsidiary of Volato. The Merger is subject to approval by the Company’s stockholders and various other customary closing conditions. M2i’s business focuses on providing its partners with access to turnkey solutions, facilitating expanded business opportunities, securing offtake agreements, influencing strategic government policy, and engaging with aligned organizations and laboratories. M2i specializes in the development and execution of a complete global value supply chain for critical minerals, including the creation of a private critical minerals reserve. Upon consummation of the Merger it is currently expected that M2i’s stockholders will own approximately 85% of the combined company.

In July 2025, the Company began development of an enterprise AI “Artificial Intelligence” platform that deploys autonomous agents within Microsoft 365 environments to automate workflows, synthesize information across systems, and execute multi-step business processes; the platform includes optional deterministic document processing capabilities for applications requiring enhanced reliability and auditability, such as contract analysis and regulatory filings.

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On October 16, 2025, pursuant to the Securities Purchase Agreement the Company issued a fourth tranche Convertible Note in the principal amount of $2.2 million for a purchase price of $2.0 million, representing an original issue discount of ten percent (10%). The Convertible Note matures on October 16, 2026.

On December 16, 2025 the Company announced a stock dividend of shares of flyExclusive stock to Volato shareholders of record as of December 26, 2025. The dividend was effected in January 2026.

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Key Factors Affecting Results of Operations

We believe that the ~~following~~below key factors have affected our financial condition and results of operations and ~~are~~may ~~expected to~~ continue to have a significant effect:. In addition, upon closing the Merger our financial condition and results of operations will be impacted by those of M2i and its industry.

Airplane Sales

~~Historically~~During 2024, we ~~have~~took ~~taken~~ delivery of ~~HondaJet~~one Gulfstream G280 aircraft, ~~manufactured~~which bywas ~~Honda~~delivered ~~Aircraft~~and ~~Company~~sold ~~(“Honda”)~~to ~~and~~a ~~Gulfstream~~third ~~G280~~party ~~aircraft~~in ~~manufacture~~the bythird ~~Gulfstream~~quarter ~~Aerospace~~of ~~Corporation~~2024. (“In January 2025, we took delivery of one Gulfstream”) ~~and~~G280 ~~sold~~aircraft, ~~these~~which ~~airplanes~~was delivered and sold to a third ~~parties~~party in February 2025. ~~Airplane~~In ~~manufacturing~~April is2025, ~~subject~~we took delivery of one Gulfstream G280 aircraft, which was delivered and sold to ~~interruptions~~a orthird ~~supply~~party ~~chain~~in ~~disruption~~June 2025. ~~The~~We ~~purchase~~took ~~agreement~~delivery ~~with~~of ~~Honda~~the ~~was~~fourth ~~terminated~~Gulfstream onG280 ~~September~~in ~~10,~~October ~~2024~~2025 and sold to a third party in December 2025. ~~Our~~We ~~revenue~~do isnot ~~subject~~expect to ~~timing~~take of delivery ~~and~~of ~~sale~~additional ofaircraft ~~airplanes~~in 2026.

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Costs and Expense Management

In 2022 and 2023, we invested in the core business systems, processes and people required to safely operate a growing, publicly traded private aviation company. In September 2024, we entered into an agreement with flyExclusive to transition our fleet operations to flyExclusive. This move ~~has~~ resulted in substantial cost savings and ~~provides~~provided us with the opportunity to focus on what we believe to be our high-growth areas, including aircraft sales and proprietary software. We ~~will~~have ~~continue~~benefited ~~to take delivery of and sell new aircraft. We expect to benefit~~ from the margins on aircraft sales without the burden of operational costs, while also generating revenue from ~~its~~our proprietary software, including the Vaunt platform, our ~~successful~~ empty leg consumer app.

Economic Conditions

The private aviation industry is volatile and affected by economic cycles and trends. Our financial performance is susceptible to economically driven changes in demand ~~particularly~~ for our ~~discretionary~~Vaunt ~~charter and deposit products~~platform. ~~Our~~Historically, our cost structure and private aviation demand levels had been greatly impacted by the price of jet fuel, pilot salaries and availability, changes in government regulations, consumer confidence, safety concerns, and other factors.

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Results of Operations

Comparison of ~~year~~twelve months ended December 31, ~~2024~~2025 and ~~2023~~2024

The following table sets forth our results of operations for the ~~years~~twelve months ended December 31, ~~2024~~2025 and ~~2023~~2024 (in thousands, except percentages):

	For the Years Ended December 31,				Change In
					Twelve Months Ended December 31,				Change In
	2024		2023		$		%
									2025		2024		$		%
Revenue	$	~~46,288~~	$	~~35,573~~	$	~~10,715~~	30	%	$	78,559	$	39,064	$	39,495	101	%
Costs and expenses:
Cost of revenue	~~38,792~~		~~30,779~~		~~8,013~~		26	%	63,871		32,181		31,690		98	%
Selling, general and administrative	~~16,861~~		~~9,235~~		~~7,626~~		83	%	10,728		15,506		(4,778)		(31)	%
Total costs and expenses	~~55,653~~		~~40,014~~		~~15,639~~		39	%	74,599		47,687		26,912		56	%
Operating Loss	(9,365)		(4,440)		(4,925)		111	%
Operating income (loss)									3,960		(8,623)		12,583		(146)	%
Other income (expenses):
Gain from sale of consolidated entity	—		387		(387)		(100)	%
Other income, net									10,139		212		9,927		N/M
Other income	212		180		32		18	%
Other expense									(6,116)		—		(6,116)		N/M
Loss from change in fair value forward purchase agreement	(2,983)		(13,403)		10,420		(78)	%
Loss from change in fair value of financial instruments									(2,074)		(2,983)		909		(30)	%
Loss on extinguishment of debt	~~(2,804)~~		—		~~(2,804)~~		~~100~~	%	—		(2,804)		2,804		N/M
Interest expense, net	~~(7,493)~~		~~(3,358)~~		~~(4,135)~~		~~123~~	%	(4,848)		(7,493)		2,645		(35)	%
Other income (expenses)	(13,068)		(16,194)		3,126		(19)	%
Other income (expenses), net									(2,899)		(13,068)		10,169		(78)	%
Loss before provision for income taxes and discontinued operations	(22,433)		(20,634)		(1,799)		9	%
Income (loss) before provision for income taxes and discontinued operations									1,061		(21,691)		22,752		(105)	%
Provision for incomes taxes (benefit)	(507)		2		(509)		(25449)	%
Provision for (benefit from) incomes taxes									207		(507)		714		N/M
Net loss from continuing operations	(21,926)		(20,636)		(1,290)		6	%
Net income (loss) from continuing operations									854		(21,184)		22,038		(104)	%
Net loss from discontinued operations	(18,719)		(32,186)		13,467		(42)	%
Net income (loss) from discontinued operations, net of taxes									4,319		(19,461)		23,780		(122)	%
Net loss	$	(40,645)	$	(52,822)	$	12,177	(23)	%
Net income (loss)									$	5,173	$	(40,645)	$	45,818	(113)	%

34N/M - the percentage change is not meaningful

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Revenue

Revenue consists of the following (in thousands, except percentages):

	Year EndedDecember 31,				Change In
					Twelve Months Ended December 31,				Change In
	2024		2023		$		%
									2025		2024		$		%
Aircraft sales	$	~~38,150~~	$	~~21,443~~	$	~~16,707~~	78	%	$	77,100	$	38,150	$	38,950	102	%
Managed Aircraft	7,224		14,107		(6,883)		(49)	%
Subscription									1,459		914		545		60	%
Subscription	914		23		891		3874	%
Total									$	78,559	$	39,064	$	39,495	101	%
Total	$	46,288	$	35,573	$	10,715	30	%

Revenue increased by $1039.75 ~~million~~ for the ~~year~~twelve months ended December 31, ~~2024~~2025, compared to the ~~year~~twelve months ended December 31, ~~2023~~2024. The increase in revenue was ~~primarily~~ the result of an increase in aircraft sales of $1639.70 million, ~~during~~as ~~the~~we ~~year~~took ~~ended~~delivery ~~December~~of ~~31,~~three ~~2024~~aircraft ~~compared~~during to the ~~prior~~ year., ~~The~~and an increase in ~~revenue~~subscription ~~from~~based ~~aircraft~~revenue ~~sales~~of ~~was~~$0.5 ~~the~~million ~~result~~during of the ~~delivery~~twelve ~~and~~months ~~sale~~ended ofDecember 31, ~~our~~2025 ~~first~~compared ~~Gulfstream~~to ~~G280~~the inprior ~~2024~~year period. WeThe ~~have~~increase ~~orders for three additional Gulfstream G280s and expect delivery~~ in ~~2025. Our~~ subscription based revenues ~~are~~is attributable to our Vaunt platform which began to generate revenue during the 2024 fiscal year. ~~The increase in aircraft sales~~ and ~~our~~continuing ~~subscription~~throughout ~~revenues year over year was partially offset by the approximately 49% decrease in our revenues from our managed aircraft operations~~2025.

Cost of Revenue

Cost of revenue comprises expenses tied to the associated revenue streams: aircraft sales, ~~managed aircraft~~ and subscription based revenue. Aircraft sales cost of revenue is ~~our~~the purchase price of the aircraft. ~~Managed~~Subscription ~~aircraft~~ cost ofinclude ~~revenue includes all~~ costs ~~incurred in our managed aircraft including the cost of flight crews, fuel, maintenance, and landing and other airport fees. Subscription costs includes costs~~ we incur related to our proprietary software, the Vaunt platform.

~~Costs~~Cost of revenue consists of the following (in thousands, except percentages):

	Year EndedDecember 31,				Change In
					Twelve Months Ended December 31,				Change In
	2024		2023		$		%
									2025		2024		$		%
Aircraft sales	$	~~32,037~~	$	~~17,765~~	$	~~14,272~~	80	%	$	63,365	$	32,037	$	31,328	98	%
Managed aircraft	6,610		12,900		(6,290)		(49)	%
Subscription									506		145		361		249	%
Subscription	145		114		31		27	%
Total									$	63,871	$	32,182	$	31,689	98	%
Total	$	38,792	$	30,779	$	8,013	26	%

Cost of revenue increased by $831.07 million for the ~~year~~twelve months ended December 31, ~~2024~~2025 compared to the ~~year~~twelve months ended December 31, ~~2023~~2024. The increase in cost of revenue was primarily a result of an increase in aircraft sales as we purchased and took delivery of ~~our~~three ~~first Gulfstream G280~~ aircraft induring the ~~year~~twelve months ended December 31, ~~2024~~2025. ~~However, offsetting our increased costs attributable to our aircraft sales was the decrease in costs attributable to our managed aircraft which decreased approximately 49% year over year.~~

Selling, general and administrative

Selling, general and administrative expenses ~~increased~~decreased by $74.68 million for the ~~year~~twelve months ended December 31, ~~2024 to $16.9 million~~2025, compared to the ~~year~~twelve months ended December 31, ~~2023~~2024. The ~~increase~~decrease in selling, general and administrative is primarily related to ~~higher professional fees and other costs associated with~~ the ~~being~~cost asavings ~~public~~initiatives ~~company.~~implemented ~~Approximately~~during ~~$2.3~~2024 ~~million of our general~~ and ~~administrative~~that ~~costs~~continued ~~are~~through attributable to costs to support and administer our public reporting and compliance obligations, such as legal fees, audit fees, fees owed to maintain our NYSE American listing, printing and SEC filing fees, and higher advertising and marketing fees of $1.3 million for our Vaunt platform. As a result of the transition of our flight operations to flyExclusive, we substantially reduced our projected costs and expect selling, general and administration costs to be approximately $1.9 million per quarter in 2025.

~~Gain~~Loss ~~from~~on ~~sale~~change ofin ~~consolidated~~fair ~~entity~~value of financial instruments

~~Gain~~For the twelve months ended December 31, 2025, the loss on ~~sale~~change in fair value of ~~consolidated~~financial ~~entity~~instruments ~~consists~~relates to the fair value adjustments on the 2024 Convertible Notes resulting in a non-cash loss of $1.5 million. The loss also includes a loss on the Investment in M2i share exchange of $0.9 million, a loss on the Investment of flyExclusive of $41 thousand offset by a gain on the ~~sale~~fair value of ~~Fly~~the ~~Dreams~~aviation ~~LLC~~asset ~~during~~of ~~2023~~$0.3 million for the twelve months ended December 31, 2025.

35For the twelve months ended December 31, 2024, the loss on change in fair value of $3.0 million was the result of the fair value adjustment on the Forward Purchase Agreement (as defined below). In July 2024, the Forward Purchase Agreement was terminated.

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~~Loss~~Interest onExpense, ~~change~~Net ~~in value of forward purchase agreement~~

AsInterest ~~part of the Business Combination~~expense, wenet ~~entered~~primarily ~~into~~consists anof ~~agreement~~interest ~~for~~related anto ~~OTC~~our ~~Equity~~aircraft ~~Prepaid~~brokerage ~~Forward~~and ~~Transaction~~services ~~(the~~agreement ~~“Forward~~with ~~Purchase~~OgaraJets ~~Agreement”).~~LLC Weand ~~recorded a fair value adjustment on~~ the ~~Forward~~pre-delivery ~~Purchase~~payment ~~Agreement~~agreement ~~resulting~~with inSAC aLeasing ~~$13~~G280 LLC.4 ~~million~~Both ~~loss~~agreements onwere ~~the~~terminated ~~change~~ in ~~fair value as of December 31, 2023~~2025. InInterest ~~July~~expense ~~2024, the Forward Purchase Agreement~~ was ~~terminated.~~offset Asby ofinterest ~~December~~income ~~31, 2024, we recorded a fair value adjustment~~ on the ~~Forward~~note ~~Purchase~~receivable ~~Agreement~~related ~~resulting~~to aour ~~non-cash~~sale ~~loss~~ of ~~$3.0~~GC ~~million~~Aviation, ~~for~~Inc. ~~the~~in ~~year~~March ~~ended December 31, 2024~~2025.

~~Loss~~Interest onexpense, ~~extinguishment~~net decreased $2.6 million during the twelve months ended December 31, 2025 compared to the twelve months ended December 31, 2024 primarily as a result of ~~debt~~the interest related to the pre-delivery payment agreement with SAC Leasing G280 LLC in 2024.

The loss on extinguishment of debt upon relates to the settlement of certain liabilities by the issuance of shares of common stock at a discount.

Interest Expense

Interest expense primarily consists of interest related to our aircraft purchase and sale agreement with TVPX Aircraft Solutions, Inc., the business loan and security agreement with TVT Capital Source LLC, credit facilities and convertible notes and amortization of debt issuance costs. Interest expense increased $4.1 million during the year ended December 31, 2024 as compared to the year ended December 31, 2023 primarily as a result of the aircraft purchase agreement and the business loan and security agreement.

Liquidity and Capital Resources

Overview

Our principal sources of liquidity have historically consisted of financing activities, including proceeds from the issuance of stock, borrowings under our credit facilities, and ~~capital~~proceeds ~~raises~~ from ~~convertible~~sales of debt and ~~preferred~~equity ~~stock~~securities. We additionally ~~managed~~generate ~~liquidity~~revenue through ~~the~~ aircraft sales ~~which~~and ~~provides~~sales upsubscriptions ~~front~~to ~~deposits from~~ our ~~customers~~software ~~and aircraft usage~~application. As of December 31, ~~2024~~2025, we had $24.2 7 million of cash and cash equivalents ~~and $1~~.8 million in restricted cash which will become available in Q1 2025. During the year ended December 31, 2024, the Company entered into a Securities Purchase Agreement (“Securities Purchase Agreement”). Under the Securities Purchase Agreement, the Company has agreed to issue 10% original issue discount senior unsecured convertible promissory notes (“Notes”) in an aggregate original principal amount of up to $36.0 million, which will be convertible into shares of the Company’s Class A common stock. The closing of the first tranche was consummated on December 4, 2024, and the Company issued the initial Note for an aggregate original principal amount of $4.5 million (the “Initial Tranche”). The second Note is expected to be an aggregate original principal amount of $1.5 million, and will be issued after the satisfaction of certain conditions precedent, including the Company having an effective registration statement for the resale of the shares of common stock issuable pursuant to the Notes. Any additional Notes will be aggregate principal amounts agreed to by the parties; provided, that no additional Note will be in an amount in excess of $4.0 million, unless otherwise mutually agreed to by the Company and the investor. Further, no additional Notes will be issued at any time when the aggregate principal balance outstanding on all previously issued Notes is greater than $2.0 million. It is also a condition to closing of any additional Notes that during the twenty (20) trading days immediately preceding the most recent additional closing, a minimum of $500 thousand in shares of common stock has been traded and the daily VWAP (as defined in the Notes) of the common stock is greater than the Conversion Price (as defined in the Notes). Each Note will mature twelve (12) months after the issuance date.

~~During~~Our ~~2023,~~primary ~~the~~needs ~~pre-business~~for ~~combination~~liquidity ~~Company~~are ~~closed~~to afund ~~series~~working ofcapital, ~~preferred~~debt ~~stock~~service ~~subscriptions~~requirements, ~~raising a total of $24.2 million~~ and ~~converted~~for ~~$38.4 million~~general ofcorporate ~~convertible promissory notes into shares of the Company’s preferred stock~~purposes.

~~Our~~We believe the primary ~~needs~~factors ~~for~~that could affect our liquidity include whether the closing conditions under the Securities Purchase Agreement are met (or waived) such that we are able to issue one or more additional convertible notes under that arrangement, our ability to raise additional funds on favorable terms, the timing and extent of spending on software development and other growth initiatives, our ability to manage our expense, and overall economic conditions. To the extent that our current liquidity is insufficient to fund ~~working~~future activities, we will need to raise additional capital. We may attempt to raise additional capital through the sale of equity securities, ~~acquisitions~~through debt financing arrangements, or both. Raising additional capital by issuing equity securities will dilute the ownership of existing stockholders. The occurrence of additional debt financing would result in debt service ~~requirements~~obligations, and any future instruments governing such debt could provide for ~~general~~operating ~~corporate~~and ~~purposes~~financing covenants that could restrict our operations. In the event that additional capital is required from outside sources, we may not be able to raise it on terms acceptable to us or at all.

36Except for our 2025 fiscal year, we have historically incurred negative cash flows from operating activities and significant losses from operations. Management believes that its current cash position, along with proceeds from future debt and/or equity financings, when combined with prudent expense management, will allow the Company to continue as a going concern and to fund its operations for at least one year from the date of this Annual Report. There are no assurances, however, that management will be able to raise capital or debt on terms acceptable to the Company. If the Company is unable to obtain sufficient additional capital or debt on terms acceptable to the Company, the Company may be required to reduce the near-term scope of its planned development and operations, which could delay implementation of the Company’s business plan and harm its business, financial condition, and operating results. These above matters raise substantial doubt about the Company's ability to continue as a going concern.

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We believe factors that could affect our liquidity include the ability of Gulfstream to meet our delivery schedule and our ability to sell those aircraft, our ability to raise additional funds on favorable terms, the timing and extent of spending on software development and other growth initiatives, our ability to manage our expense, and overall economic conditions. To the extent that our current liquidity is insufficient to fund future activities, we will need to raise additional funds. We may attempt to raise additional capital through the sale of equity securities, through debt financing arrangements, or both. Raising additional funds by issuing equity securities will dilute the ownership of existing shareholders. The occurrence of additional debt financing would result in debt service obligations, and any future instruments governing such debt could provide for operating and financing covenants that could restrict our operations. In the event that additional funds are required from outside sources, we may not be able to raise it on terms acceptable to us or at all.

We have incurred negative cash flows from operating activities and significant losses from operations historically. We believe our cash on hand, together with our results of operations including our planned sale of aircraft during the year ending December 31, 2025, and any additional capital raise will be sufficient to meet our projected working capital and capital expenditure requirements for a period of at least 12 months from the date of this report.

Cash Flows

The following table summarizes our cash flows for the twelve months ended December 31, ~~2024~~2025, and ~~2023~~2024 (in thousands):

	Year Ended December 31,
	Twelve Months Ended December 31,
	2024		2023
	2025		2024
Net cash used in operating activities	(16,919)		(30,393)
Net cash provided by (used in) operating activities	$	3,492	$	(16,919)
Net cash (used in) provided by investing activities	(115)		1,776
Net cash used in investing activities	(8,076)		(115)
Net cash provided by financing activities	45,~~311~~282		374,~~461~~311
Net (Decrease) Increase In cash and restricted cash	$	(12,723)	$	8,844
Net increase (decrease) in cash and restricted cash	$	698	$	(12,723)

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Cash Flow from Operating Activities

Net cash used in operating activities for the ~~year~~twelve months ended December 31, ~~2024~~2025 was $163.95 million. The cash outflow from operating activities consisted of our net ~~loss~~income of $405.6 2 million, non-cash items of $60.8 4 million, and a change in net operating assets and liabilities of $167.98 million. The ~~increase~~change in net operating assets and liabilities was primarily as a result of ana ~~increase~~decrease in ~~customer~~prepaid ~~deposits~~ and ~~deferred~~other ~~revenue~~current assets of $80.7 5 million, a decrease in ~~aircraft~~accounts ~~deposits~~payable and accrued liabilities of $40.31 million ~~and~~offset anby ~~increase~~a decrease in ~~accounts~~deposits ~~payable~~of $8.2 million and ~~accrued~~an ~~liabilities~~increase in contract assets of $20.6 million. The change in net assets and liabilities for discontinued operations for the twelve months ended December 31, ~~2024~~2025 was $~~52 thousand~~9.1 million.

Net cash used in operating activities for the ~~year~~twelve months ended December 31, ~~2023~~2024 was $3016.49 million. The cash outflow from operating activities consisted of our net loss of $5240.86 million, ~~and~~ non-cash items of $~~13.~~6.8 million and a change in net operating assets and liabilities of $17.0 million. The increase in net operating assets and liabilities was primarily as a result of an increase in customer deposits and deferred revenue of $9.1 million, a decrease in aircraft deposits of $4.3 million and an increase in accounts payable and accrued liabilities of $2.8 million. The change in net assets and liabilities for discontinued operations for the twelve months ended December 31, ~~2023~~2024 was $~~9.1~~100 ~~million~~thousand.

Cash Flow from Investing Activities

Net cash used byin investing activities for the ~~year~~twelve months ended December 31, ~~2024~~2025 was $~~115~~8.1 ~~thousand~~million. The cash flow from investing activities consisted ~~primarily~~of the payoff of the G280 liability issued for the flyExclusive investment, the purchase of property and equipment, offset by the sale of property and equipment.

Net cash ~~provided~~used byin investing activities for the ~~year~~twelve months ended December 31, ~~2023~~2024 was $1115 thousand.~~8 million.~~ The cash flow from investing activities ofconsisted ~~discontinued~~primarily ~~operations~~ of ~~$2.4~~the ~~million,~~purchase ~~offset~~of byproperty ~~$0.6~~and ~~million for capital expenditures~~equipment.

Cash Flow from Financing Activities

Net cash ~~from~~provided by financing activities for the ~~year~~twelve months ended December 31, ~~2024~~2025 was $45.3 million. Cash flow ~~from~~provided by financing activities consisted of the proceeds from the issuance of convertible promissory notes totaling $76.90 million (as described in Notes 10) and $0.5 million from the ~~issuance~~proceeds of ~~the~~common ~~term~~stock ~~loan~~issued ~~and~~in ~~convertible~~our ~~notes.~~at-the-market ~~This~~offering ~~was~~program, offset by the ~~payments~~repayment on ~~debt~~loans of $31.71 million.

37Net cash used in financing activities for the twelve months ended December 31, 2024 was $4.3 million. Cash flow from financing activities consisted of proceeds of $8.1 million from the issuance of the term loan described in Note 11 and a convertible note. This was offset by the payments on debt of $3.9 million. The cash used in financing from discontinued operations was $0.1 million for the twelve months ended December 31, 2024.

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Net cash provided by financing activities for December 31, 2023 was $37.5 million. Cash flow from financing activities consisted proceeds of $24.2 million from the sale of preferred stock, $16.7 million from the Business Combination, net of closing costs, $12.7 million from the issuance of convertible notes, $2.5 million in proceeds from the forward purchase agreement and $1 million from our line of credit. This was offset by the payment for a forward purchase agreement of $18.9 and $0.8 million for the repayment of a loan.

Sources of Liquidity

To date, we have financed our operations primarily ~~through~~as a result of the 2023 business combination, ~~sale~~sales of preferred stock, borrowings of long-term and short-term debt, loans and convertible notes. As of December 31, ~~2024~~2025, we had anegative working capital ~~deficit~~ of approximately $183.9 million. Asand ~~of December 31, 2024,~~ our primary ~~sources~~source of liquidity ~~were~~was cash totaling ~~approximately~~ $24.27 million. Based on our recent trends, we expect to fund our operations in ~~2025~~2026 from our cash on hand, cash from operations, one or more sales of ~~Notes~~convertible ~~(as~~promissory ~~defined~~notes ~~below)~~in accordance with the Securities Purchase Agreement described in Note 2 and Note 10 to our unaudited financial statements in this Annual Report and potentially additional sales of equity or debt securities (including potential sales of common stock in our at-the-market sales program described below and elsewhere in this Annual report). The Company believes it has the ability to generate and obtain enough cash to ~~meets~~meet its obligations for the next 12 months.

During the year ended December 31, 2022, the Company executed a series of purchase agreements with Gulfstream Aerospace, LP for the acquisition of four (4) Gulfstream G-280 aircraft. The first Gulfstream G280 was delivered in the third quarter of 2024. As of December 31, 2024, total consideration due on the remaining three Gulfstream G280s was $62.6 million with expected deliveries in 2025. Deposits on the Gulfstream G280s of $36.0 million were funded and paid through December 31, 2024, through a credit facility from SAC leasing G 280 for $28.5 million and $7.5 million through cash deposits. 43

The maturity date is the earlier of the delivery date of the aircraft or September 14, 2025, which is thirty-five (35) months from the date of funding. The purchase agreement contracts were assigned to SAC G280 LLC as collateral on this credit facility. In the third quarter of 2024, $9 million was repaid to SAC G280 LLC as a result of the delivery of the first Gulfstream G280. In the first quarter of 2025, an addition $18 million was repaid to SAC G280 LLC as a result of the delivery of the second Gulfstream G280 and the return of $9 million in deposits related to the fourth Gulfstream G280. After the delivery of the second Gulfstream G280 and the deposit return related to the fourth Gulfstream G280, the outstanding balance of the credit facility from SAC Leasing was $9 million.

In July 2024, the Company entered into a business loan and security agreement (the “Loan”) with TVT Capital Sources LLC (the “Lender”), which provides for a term loan in the amount of $4.0 million. Net proceeds of $3.8 million were received by the Company and used to fund operations. The Loan bears interest at an annual percentage rate of 165% and matures on January 28, 2025, with principal and interest payments made weekly. The Loan provides for events of default customary for term loans. As of December 31, 2024 the Company was in compliance with all covenants. The Loan is collateralized by all assets of the Company with the exception of the purchase agreements of G280 aircraft or any collateral pledged to SAC Leasing G280. In the first quarter of 2025, the term loan was repaid in full.

On November 4, 2024, the Company entered into a Settlement Agreement and Stipulation (the "Settlement Agreement”) with Sunpeak Holdings Corporation ("SHC”), which became effective on November 6, 2024, to settle outstanding claims owed to SHC. Pursuant to the Settlement Agreement, SHC agreed to purchase certain outstanding payables between the Company and designated vendors of the Company totaling approximately $4.7 million (the "Claims”) and exchange such Claims for a settlement amount payable in shares of common stock of the Company (the "Settlement Shares”). The Settlement Shares were priced at the closing price of the Company’s common stock on November 4, 2024, subject to adjustment pursuant to the terms of the Settlement Agreement. The Company also issued to SHC, 100,000 freely trading shares pursuant to Section 3(a)(10) of the Securities Act in accordance herewith as a Settlement Fee (the "Settlement Fee Shares”).

In December 2024, the Company entered into the Securities Purchase Agreement, described above, and closed on the Initial Tranche. Interest under the Note issued as the Initial Tranche is payable quarterly at the Company’s option shall either be (i) paid in cash; (ii) paid-in-kind in shares of common stock; or (iii) compound and become additional principal outstanding. The Company recorded $14 thousand of accrued interest expense in the twelve months ended December 31, 2024. As described above, subject to the satisfaction of certain conditions, the Company may issue additional Notes during 2025.

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OnThe ~~December 9, 2021, the~~ Company entered into athe ~~revolving~~pre-delivery ~~loan~~payment agreement ~~with~~on ~~Dennis~~October ~~Liotta~~5, an2022, ~~affiliate~~with ofSAC ~~the~~Leasing ~~Company~~G280, ~~for~~LLC ato ~~total~~obtain loans in the aggregate amount of $8 40.5 million ~~which~~for ~~was~~the ~~set~~purchase of four (4) Gulfstream G280 aircraft to ~~mature~~be ondelivered ~~January~~in 12024 and 2025. The maturity date was the earlier of the delivery date of the aircraft or September 14, ~~2023~~2025, ~~(“December~~which ~~2021~~is ~~note”~~thirty-five (35) months from the date of funding. The ~~Company~~purchase ~~was~~agreement ~~required~~contracts were assigned to ~~make~~SAC ~~monthly~~Leasing ~~payments~~G280 ofLLC ~~interest~~as atcollateral aon ~~fixed~~this ~~rate~~credit facility. In the third quarter of 42024, $9.0% ~~per~~million ~~annum.~~was Inrepaid ~~conjunction~~to ~~with~~SAC Leasing G280 LLC as a result of the ~~execution~~delivery of the ~~revolving~~first ~~note~~Gulfstream G280. In the first quarter of 2025, ~~both~~an ~~parties~~additional ~~executed~~$19.5 million was repaid to SAC Leasing G280 LLC as a ~~security~~result ~~agreement,~~of ~~under~~the ~~which~~delivery of the ~~Company~~second ~~granted~~Gulfstream aG280 ~~continuing~~and ~~security~~the ~~interest~~return of $9.0 million in ~~all~~deposits related to the fourth Gulfstream G280. After the delivery of the ~~assets~~second Gulfstream G280 and the deposit return related to the fourth Gulfstream G280, the outstanding balance of the ~~Company~~credit facility from SAC Leasing G280 was $8.5 million, net. In the second quarter of 2025, with the delivery of the third G280, the remaining outstanding balance of the SAC Leasing G280 credit facility was paid in full.

~~During~~On ~~the year ended~~ December 315, ~~2022~~2025, the Company ~~did~~entered ~~not~~into ~~remit~~an ~~its~~Equity ~~interest~~Distribution ~~payments~~Agreement ~~in connection~~ with ~~the~~Virtu ~~December~~Americas ~~2021~~LLC ~~note~~(the ~~to this related party~~“Agent”), ~~thus~~pursuant ~~triggering a default and increasing the interest rate~~ to 9%which ~~plus an additional 5% on~~ the ~~missed~~Agent ~~payments.~~will ~~The~~act ~~agreement~~as ~~stipulated that in~~ the ~~event~~Company’s ofsole ~~default,~~sales ~~the~~agent ~~entire~~or ~~unpaid~~ principal ~~balance together~~ with ~~all~~respect ~~accrued~~to ~~but~~the ~~unpaid~~offer ~~interest~~and ~~shall~~sale befrom ~~due~~time-to-time ~~and~~of ~~payable~~shares ~~regardless~~ of the ~~maturity~~Company’s ~~date.~~Class IfA ~~the~~Common ~~default occurred and remained uncured beyond the applicable grace period~~Stock, ~~then~~having ~~the~~an ~~entire~~aggregate ~~unpaid~~gross ~~principal~~sales ~~balance~~price ~~would bear interest at a default interest~~ of ~~500~~an ~~basis~~aggregate ~~points (5%) over the regular interest or nine percent (9%). Events~~ of ~~default~~up ~~include the failure~~ to ~~make principal or interest payments when due, any judgement in excess of~~ $~~500,000,~~9.3 ~~indebtedness cross default, or bankruptcy proceedings~~million.

On March 15, 2023, the outstanding balance of the December 2021 note and accrued interest was converted into a convertible note with a principal balance of $6.0 million bearing interest at 4%, maturing on March 31, 2024.

On March 15, 2023, the Company entered into a promissory note agreement with Dennis Liotta, an affiliate of the Company, for a total amount of $1.0 million, with an effective date of February 27, 2023, which matures on March 31, 2024 (“March 2023 note”). The entire outstanding principal balance together with accrued but unpaid interest are due at the maturity date. The March 2023 note includes a ten percent (10%) interest rate per annum, which will be increased to twenty percent (20%) upon an event of default. Events of default include the failure to make any principal and accrued interest when due, any legal proceedings against the Company or a voluntary federal bankruptcy. The March 2023 note may be prepaid at any time without penalties.

During the year ended December 31, 2022 and year ended December 31, 2023, we issued a series of convertible notes (“Series CN-001”) with various investors for an aggregate principal amount of $19.1 million. The notes were due and payable at any time on or after December 31, 2023 upon the written demand of the majority holders, which could be extended at the sole election of the Company to December 31, 2024, should the Company submit or file a prospectus, proxy statement or registration statement with the SEC. The convertibles notes carried a five percent (5%) interest per annum. The Company could not prepay the convertible notes prior to maturity without the written consent of a majority of the holders. During the year ended December 31, 2023, the Company issued a series of convertible notes (“Series CN-002”) in an aggregate principal amount of $16.4 million, of which $10.4 million was funded and $6.0 million was issued pursuant to the conversion of the line of credit with a related party (see above). The notes (principal and interest) were due and payable at any time on or after March 31, 2024, upon the written demand of the majority holders, which can be extended at the sole election of the Company to September 30, 2024, should the Company submit or file a prospectus, proxy statement or registration statement with the SEC. The convertibles notes carried a four percent (4%) coupon per annum effective July 1, 2023. The Company could not prepay the convertible notes prior to maturity without the written consent of a majority of the holders.

On July 21, 2023, Volato entered into a Series A Preferred Stock Purchase Agreement by and among (i) Volato, (ii) the PROOF.vc SPV, (iii) Proof Acquisition Sponsor I, LLC (“PASI”), and (iv) the holders of then-outstanding Series CN-001 and Series CN-0002 convertible promissory notes (the “Convertible Notes”), whereby (a) Volato may issue and sell up to a maximum aggregate of $60.0 million of Series A-1 Preferred Stock (the “Series A-1 Preferred Stock”) at a price of $10 per share, with $10.0 million of Series A-1 Preferred Stock issued and sold at an initial closing to the PROOF Investors, and (b) the Convertible Notes were converted into the amount of Series A-2 Preferred Stock (the “Series A-2 Preferred Stock”) or Series A-3 Preferred Stock (the “Series A-3 Preferred Stock” and together with the Series A-1 Preferred Stock and the Series A-2 Preferred Stock, the “Series A Preferred Stock”) at a conversion price of, in the case of the Series A-2 Preferred Stock, $5.9820 per share and in the case of the Series A-3 Preferred Stock, $9.00 per share (collectively, the “Private Financing”, such agreement, the “Series A Preferred Stock Purchase Agreement”).

During the year ended December 31, 2023, the Company issued Series A-1 Preferred Stock and raised $24.2 million in cash from the issuance of Series A-1 Preferred Stock and converted $38.4 million of convertible promissory notes. During 2023, PROOF Acquisition Sponsor I, LLC purchased 1,308,398 shares of Series A-1 Preferred Stock (equal to 1,328,132 shares of Common Stock) and the PROOF.vc SPV purchased 1,102,689 shares of Series A-1 Preferred Stock (equal to 1,119,321 shares of Common Stock, respectively), at a purchase price of $10 per share.

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For further information on the credit facilities and promissory notes, see Note 12 “Revolving Loan and Promissory Note – Related Party”, Note 13“Unsecured Convertible Notes”, and Note 14 “Credit Facility and Other Loans” of the accompanying Notes to Consolidated Financial Statements included elsewhere in this Annual Report.

Contractual Obligations and Commitments

Our principal contractual commitments consist of ~~contractual cash~~ obligations under our ~~credit~~convertible ~~facilities,~~promissory ~~operating~~notes ~~leases~~ and ~~the~~operating ~~Notes~~leases. We have committed to acquire three (3) additional Gulfstream G-280 aircraft for total consideration of $62.6 million with expected deliveries in 2025, of which $36 million was funded and paid through December 31, 2024.

Our obligations under our credit facilities and the Notes are described in “—Sources of Liquidity” above. For further information on leases see Note 18 “Commitments and Contingencies” of the accompanying Notes to Consolidated Financial Statements included elsewhere in this Annual Report.

On November 28, 2023, the Company and Vellar entered into an agreement (the “Forward Purchase Agreement”) for an OTC Equity Prepaid Forward Transaction (the “Forward Purchase Transaction”).

Pursuant to the terms of the Forward Purchase Agreement, Vellar purchased 1.7 million shares of the Company’s Class A common stock (the “Number of Shares”) prior to the closing of the Business Combination from third parties through a broker in the open market.

Pursuant to the Forward Purchase Agreement, Vellar was paid $18.9 million by the Company in connection with its purchase of shares of the Company’s Class A common stock on December 1, 2023.

From time to time and on any date following the Business Combination (any such date, an “OET Date”), Vellar may, in its absolute discretion, terminate the Forward Purchase Agreement in whole or in part by providing written notice to the Counterparty (the “OET Notice”) that specifies the quantity by which the Number of Shares shall be reduced (such quantity, the “Terminated Shares”). The effect of an OET Notice shall be to reduce the Number of Shares by the number of Terminated Shares specified in such OET Notice with effect as of the related OET Date. As of each OET Date, the Company shall be entitled to an amount from Vellar, and Vellar shall pay to the Company an amount, equal to the product of (x) the number of Terminated Shares and (y) the Reset Price (as that term is defined in the Forward Purchase Agreement) in respect of such OET Date. The Reset Price is equal to $10.81, but is subject to reduction upon a Dilutive Offering Reset (as that term is defined in the Forward Purchase Agreement).

Vellar delivered an OET Notice on December 29, 2023, reducing the Number of Shares by 233,646. The Company received a payment of $2.5 million on December 29, 2023 in connection with its delivery of the OET Notice.

In July 2024, Vellar notified the Company of the termination of the Forward Purchase Agreement, following a delivery of a notice establishing the Valuation Date (as defined in the Forward Purchase Agreement); upon termination, Vellar was not obligated to pay the Company a cash amount.

Critical Accounting Policies and Estimates

Our management’s discussion and analysis of our financial condition and results of our operations is based on our consolidated financial statements and accompanying notes, which have been prepared in accordance with GAAP. Certain amounts included in or affecting the consolidated financial statements presented in this Annual Report and related disclosure must be estimated, requiring management to make assumptions with respect to values or conditions which cannot be known with certainty at the time the consolidated financial statements are prepared. Management believes that the accounting policies set forth below comprise the most important “critical accounting policies” for the company. A “critical accounting policy” is one which is both important to the portrayal of our financial condition and results of operations and that involves difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Management evaluates such policies on an ongoing basis, based upon historical results and experience, consultation with experts and other methods that management considers reasonable in the particular circumstances under which the judgments and estimates are made, as well as management’s forecasts as to the manner in which such circumstances may change in the future.

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Revenue Recognition

Revenues are recognized on a gross basis and presented on the consolidated statements of operations net of rebates, discounts, and taxes collected concurrent with revenue-producing activities. The transaction price in the Company’s contracts with its customers is fixed at the time control of goods and services are transferred to the customer. Therefore, the Company does not estimate variable consideration or perform a constraint analysis for our contracts.

The Company determines revenue recognition pursuant to Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, through the following steps:

1.Identification of the contract, or contracts, with a customer.

2.Identification of the performance obligation(s) in the contract.

3.Determination of the transaction price.

4.Allocation of the transaction to the performance obligation(s) in the contract.

~~The~~5.Recognize ~~Company generates~~ revenue ~~primarily~~when ~~through:~~or ~~(i) the sale of aircraft, (ii) aircraft management services and (iii) our Vaunt software-~~as~~-a-subscription~~ ~~platform. Revenue is recognized when control of~~ the ~~promised~~entity ~~service~~satisfies ~~is transferred to~~ a customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies, as a performance obligation~~, each promise to transfer a good or service to a customer that is distinct~~. To identify its performance obligations, the Company considers all of the goods and services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices.

For each revenue stream, we evaluate whether our obligation is to provide the good or service itself, as the principal or to arrange for the good or service to be provided by the other party, as the agent, using the control model. For certain services provided to the customer, primarily in our aircraft management services revenue stream, the Company directs third-party providers to assist in our fulfillment of the performance obligation in contracts with our customers. Any cost reimbursements and third-party costs are recognized in revenue on a gross basis as Volato has pre-negotiated these costs and takes a certain amount of risk that it will not fully recover the costs incurred. In such circumstances, the Company is primarily responsible for satisfying the overall performance obligation with the customer and is considered the principal in the relationship because the Company has the ability to direct the third parties to provide services to our customers.44

Revenue from aircraft sales is recognized upon the delivery of the aircraft.

The Company’s contracts for managing aircraft provide for fixed monthly management fees and reimbursement of operating expenses at a predetermined margin. Generally, contracts require two months advance deposit of estimated expenses.

Intangible Assets

We record our intangible assets acquired in a business combination at cost in accordance with ASC 350, Intangibles – Goodwill and Other. Following initial recognition, intangible assets are carried at cost less accumulated amortization and impairment losses, if any, and are amortized on a straight-line basis over the estimated useful life of the asset, which was determined based on management’s estimate of the period over which the asset will contribute to our future cash flows. We periodically reassess the useful lives of our definite-lived intangible assets when events or circumstances indicate that useful lives have significantly changed from the previous estimate.

We review the intangible assets for impairment on an annual basis or if events or changes in circumstances indicate it is more likely than not that they are impaired. These events could include a significant change in the business climate, legal factors, a decline in operating performance, competition, sale, or disposition of a significant portion of the business, or other factors. If the carrying amount of a long-lived asset or asset group is determined not to be recoverable, an impairment loss is recognized and a write-down to fair value is recorded.

Goodwill

Goodwill represents the excess of the aggregate purchase price paid over the fair value of the net assets acquired in a business combination. Goodwill is not amortized and is tested for impairment at least annually or whenever events or

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~~changes~~The inCompany ~~circumstances~~generates ~~indicate~~revenue ~~that~~primarily ~~the~~through: ~~carrying~~(i) ~~value~~the ~~may~~sale ~~not~~of beaircraft ~~recoverable.~~and ~~Events~~(ii) orour ~~changes~~Vaunt insoftware-as-a-subscription ~~circumstances~~platform. ~~that~~Revenue ~~could~~is ~~trigger~~recognized anwhen ~~impairment~~control ~~review~~of ~~include~~the apromised ~~significant~~service ~~adverse~~is ~~change~~transferred into ~~business~~a ~~climate~~customer, in an ~~adverse~~amount ~~action~~that orreflects ~~assessment~~the byconsideration athe ~~regulator,~~Company ~~unanticipated~~expects ~~competition,~~to abe ~~loss~~entitled ofto ~~key~~in ~~personnel,~~exchange ~~significant~~for ~~changes~~those inservices. ~~the~~At ~~manner~~contract ofinception, ~~our~~the ~~use~~Company ofassesses the ~~acquired~~goods ~~assets~~and orservices ~~the~~promised ~~strategy~~in ~~for~~its ~~our~~contracts ~~overall~~with ~~business,~~customers ~~significant~~and ~~negative~~identifies, ~~industry~~as ora ~~economic~~performance ~~trends~~obligation, oreach ~~significant~~promise ~~underperformance relative~~ to ~~expected~~transfer ~~historical~~a good or ~~projected~~service ~~future~~to ~~results~~a ofcustomer ~~operations.~~that Weis ~~have~~distinct. ~~the~~To ~~option~~identify toits ~~first~~performance ~~assess~~obligations, ~~qualitative~~the ~~factors~~Company toconsiders ~~determine~~all ~~whether~~of the ~~existence~~goods ofand ~~events~~services orpromised ~~circumstances~~in ~~leads to a determination that it is more likely than not that~~ the ~~fair~~contract ~~value~~regardless of awhether ~~reporting~~they ~~unit~~are isexplicitly ~~less~~stated ~~than~~or ~~its~~are ~~carrying~~implied ~~value,~~by ~~including~~customary ~~goodwill.~~business practices.

IfFor each revenue stream, ~~after~~we ~~assessing~~evaluate ~~the~~whether ~~totality~~our ofobligation ~~events~~is to provide the good or ~~circumstances~~service itself, weas ~~determine~~the ~~that~~principal itor isto ~~not~~arrange ~~more~~for ~~likely~~the ~~than~~good ~~not~~or ~~that~~service to be provided by the ~~fair~~other ~~value~~party, ofas athe ~~reporting~~agent, ~~unit~~using isthe ~~less~~control ~~than~~model. ~~its~~In ~~carrying~~such ~~amount~~circumstances, ~~additional~~the ~~impairment~~Company ~~testing~~ is ~~not~~primarily ~~required.~~responsible Wefor ~~test~~satisfying ~~for~~the ~~goodwill~~overall ~~impairment~~performance ~~annually~~obligation ~~during~~with the ~~fourth~~customer ~~quarter.~~and is considered the principal in the relationship.

~~Investment~~Revenue -from ~~Equity~~aircraft ~~Method~~sales is recognized upon the delivery of the aircraft.

The Company accounts for its equity method investment at cost, adjusted for the Company’s share of the investee’s earnings or losses, which is reflected in the consolidated statement of operations. The Company periodically reviews the investment for other than temporary declines in fair value below cost and more frequently when events or changes in circumstances indicate that the carrying value of an asset may not be recoverable.

Stock-Based Compensation

The Company accounts for stock-based compensation costs under the provisions of ASC 718, Compensation—Stock Compensation (“ASC 718”), which requires the measurement and recognition of compensation expense related to the fair value of stock-based compensation awards that are ultimately expected to vest. The Company recognizes the cost of services received in exchange for awards of equity instruments based on the grant-date fair value of equity awards. This cost is recognized as expense over the employee’s requisite vesting period or over the nonemployee’s period of providing goods or services. Any forfeitures of stock-based compensation are recorded as they occur.

The Company utilizes the Black Scholes valuation model to value the issuance of stock-based compensation. See Note 1714, “Shareholders’ Equity (Deficit)” of the accompanying Notes to Consolidated Financial Statements.

JOBS Act

We are an “emerging growth company” as defined in the JOBS Act. The JOBS Act permits emerging growth companies to take advantage of an extended transition period to comply with new or revised accounting standards, delaying the adoption of these accounting standards until they would apply to private companies. We have elected to use this extended transition period under the JOBS Act until the earlier of the date we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates. The Company’s financial statements have not been impacted by the JOBS Act as of December 31, 2025.

We have chosen to rely on the other exemptions and reduced reporting requirements provided by the JOBS Act. Subject to certain conditions set forth in the JOBS Act, as an “emerging growth company” we are not required to, among other things, (i) provide an auditor’s attestation report on our system of internal control over financial reporting pursuant to Section 404 of SOX, (ii) provide all of the compensation disclosure that may be required of non-emerging growth public companies, (iii) comply with any requirement that may be adopted by the Public Company Accounting Oversight Board (United States) regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the consolidated financial statements (auditor discussion and analysis) and (iv) disclose certain executive compensation-related items, such as the correlation between executive compensation and performance and comparisons of the chief executive officer’s compensation to median employee compensation. We may remain an emerging growth company until the last day of the fiscal year ending after the fifth anniversary of our IPO, although circumstances could cause us to lose that status earlier, including if we become a “large accelerated filer” as defined in Rule 12b-2 under the Exchange Act or if we have total annual gross revenue of $1.235 billion or more during any fiscal year before that time, in which cases we would no longer be an emerging growth company as of the following December 31 or, if we issue more than $1.0 billion in non-convertible debt during any three year period before that time, we would cease to be an emerging growth company immediately.

Recent Accounting Pronouncements

For further information on recent accounting pronouncements, see Note 2 “Summary of Significant Accounting Policies” of the accompanying consolidated financial statements included elsewhere in this Annual Report.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

InThe ~~the~~Company ~~ordinary~~is ~~course~~not ofrequired ~~operating our business, we are exposed~~ to ~~market~~provide ~~risks. Market risk represents~~ the ~~risk~~information ofrequired ~~loss~~by ~~that~~this ~~may~~Item ~~impact~~as ~~our~~it ~~financial~~is ~~position~~a or“smaller ~~results~~reporting ofcompany,” ~~operations~~as ~~due~~defined ~~to adverse changes~~ in ~~financial~~Rule ~~market~~12b-2 ~~prices~~of ~~and~~the ~~rates.~~Exchange ~~Our principal market risks are related to interest rates and aircraft fuel~~Act.

~~Interest~~ITEM ~~Rates~~8. FINANCIAL STATEMENTS

We are subject to market risk associated with changing interest rates on certain of our credit facilities, which are variable rate debt. Interest rates applicable to our variable rate debt could potentially rise and increase the amount of interest expense incurred. We do not purchase or hold any derivative instruments to protect against the effects of changes in interest rates.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

INDEX TO THE CONSOLIDATED FINANCIAL STATEMENTS

VOLATO GROUP, INC.

Audited Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm (PCAOB ID 468)			45
Report of Independent Registered Public Accounting Firm (PCAOB ID 149)			47
Consolidated Balance Sheets as of December 31, 2024 and 2023			46
Consolidated Balance Sheets as of December 31, 2025 and 2024			49
Consolidated Statements of Operations for the years ended December 31, 2024 and 2023			47
Consolidated Statements of Operations for the years ended December 31, 2025 and 2024			50
Consolidated Statements of Shareholders’ Equity (Deficit) for the years ended December 31, 2024 and 2023			48
Consolidated Statements of Shareholders’ Equity (Deficit) for the years ended December 31, 2025 and 2024			51
Consolidated Statements of Cash Flows for the years ended December 31, 2024 and 2023			49
Consolidated Statements of Cash Flows for the years ended December 31, 2025 and 2024			52
Notes to the Consolidated Financial Statements			5154

4446

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Directors

Volato Group, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheet of Volato Group, Inc. and its subsidiaries (the “Company”) as of December 31, 2025, and the related consolidated statements of operations, changes in shareholders’ equity (deficit) and cash flows for the year then ended, and the related notes to the consolidated financial statements (collectively, the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

We have also audited the adjustments to the December 31, 2024 consolidated financial statements to retrospectively apply the adjustments to the reporting of discontinued operations related to GC Aviation, Inc. for the year ended December 31, 2024, as described in Notes 2 and 3. In our opinion, such adjustments are appropriate and have been properly applied. We were not engaged to audit, review, or apply any procedures to the December 31, 2024 consolidated financial statements of the Company other than with respect to the adjustments and, accordingly, we do not express an opinion or any other form of assurance on the December 31, 2024 consolidated financial statements taken as a whole.

Substantial Doubt about the Company’s Ability to Continue as a Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company has an accumulated deficit and a working capital deficit. These conditions raise substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 2. 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 audit. 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 U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit 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 audit, 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 audit 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 audit 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 audit provides a reasonable basis for our opinion.

/s/ Elliott Davis, PLLC

We have served as the Company’s auditor since 2025.

Elliott Davis

Charlotte, North Carolina

March 12, 2026

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders

Volato Group, Inc.

Opinion on the Financial Statements

We have audited, before the effects of the adjustments to apply the accounting for discontinued operations of GC Aviation, Inc. described in Note 3, the accompanying consolidated balance sheets of Volato Group, Inc. and Subsidiaries (the Company) as of December 31, 2024, and ~~2023 and~~ the related statements of operations, shareholders’ equity (deficit), and cash flows for ~~each of~~ the ~~years in the two-~~year ~~period~~ ended December 31, 2024, and the related notes to the consolidated financial statements (collectively referred to as the consolidated financial statements). The 2024 consolidated financial statements before the effects of the adjustments for discontinued operations of GC Aviation, Inc. discussed in Note 3 are not presented herein. In our opinion, the consolidated financial statements, before the effects of the adjustments to apply the accounting for discontinued operations of GC Aviation, Inc. described in Note 3, present fairly, in all material respects, the financial position of the Company as of December 31, 2024 ~~and 2023~~, and the results of its operations and its cash flows for ~~each of~~ the ~~years in the two-~~year ~~period~~ ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

Explanatory Paragraph – Going Concern

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company has incurred significant operating losses and negative cash flows from operations, and has limited positive working capital. These conditions 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. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated 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 consolidated 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~~We ~~audits~~were ~~included~~not ~~performing~~engaged ~~procedures~~ to ~~assess~~audit, ~~the risks of material misstatement of the consolidated financial statements~~review, ~~whether due to error~~ or ~~fraud,~~apply ~~and~~any ~~performing~~ procedures ~~that~~to ~~respond~~adjustments to ~~those~~apply ~~risks.~~the ~~Such~~accounting ~~procedures~~for ~~included~~discontinued ~~examining,~~operations onof aGC ~~test basis~~Aviation, ~~evidence~~Inc. ~~regarding~~described ~~the amounts and disclosures~~ in ~~the~~Note ~~consolidated~~3 ~~financial~~and, ~~statements.~~accordingly, ~~Our~~we ~~audits~~do ~~also~~not ~~included~~express ~~evaluating~~an ~~the~~opinion ~~accounting~~or ~~principles~~any ~~used~~other ~~and~~form ~~significant~~of ~~estimates~~assurance ~~made~~about bywhether ~~management,~~such asadjustments ~~well~~are asappropriate ~~evaluating~~and ~~the~~have ~~overall~~been ~~presentation~~properly ~~of the consolidated financial statements~~applied. WeThose ~~believe~~adjustments ~~that~~were ~~our~~audited ~~audits~~by ~~provides~~Elliott aDavis, ~~reasonable basis for our opinion~~PLLC.

We have served as the Company’s auditor since 2022.

Rose, Snyder & Jacobs LLP

We served as the Company’s auditor from 2022 to 2025.

Encino, California

March 31, 2025

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VOLATO GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except par value amounts)

	December 31, 2024		December 31,2023
	December 31,2025		December 31,2024
ASSETS
Current assets:
Cash	$	24,~~161~~698	$	142,~~486~~161
Restricted cash	~~1,839~~—		—1,839
Accounts receivable, net	2101		~~442~~2
Deposits	36,000		25,125
Contract assets, net	636		—
Prepaid expenses and other current assets	1,070		1,873
Deposits	70		36,000
Current assets - discontinued operations	2,242		4,572
Note receivable, current	206		—
Total current assets	43,314		46,498
Investment in M2i	1,197		—
Property and equipment, net	683		846
Investment in flyExclusive	1,739		—
Operating lease, right-of-use assets	167		—
Aviation asset option	324		—
Deposits	300		15,250
Prepaid expenses and other current assets	572		1,031
Forward purchase agreement	—		2,982
Current assets - discontinued operations	267		2,281
Restricted cash	—		2,237
Total current assets	9,810		43,314
Intangibles, net	1,200		1,391
Property and equipment, net	323		680
Goodwill	635		635
Operating lease, right-of-use assets	128		167
Non-current assets - discontinued operations	—		1,873
Deposits	—		300
Total assets	$	46,299	$	71,712
Note receivable, non-current	1,693		—
Non-current assets - discontinued operations	—		1,838
Total assets	$	11,954	$	46,299
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable and accrued liabilities	$	53,~~710~~394	$	45,~~255~~452
Loan from related party	—		1,000
Dividend payable	1,637		—
Convertible notes, net	4,~~050~~230		—4,050
Operating lease liability	3943		—39
Merger transaction costs payable in shares	—		4,250
Credit facility and other loans	—		28,855
Credit facility and other loans	28,855		20,107
Customer deposits and deferred revenue	2,823		11,386
Customer deposits and deferred revenue	11,538		2,831
Current liabilities - discontinued operations	1,591		12,418
Current liabilities - discontinued operations	12,008		15,194
Total current liabilities	13,718		62,200
Total current liabilities	62,200		47,637
Operating lease liability, non-current	85		128
Deferred income tax liability	305		305
Non-current liabilities - discontinued operations	—		305
Operating lease liability, non-current	128		—
Total liabilities	$	13,803	$	62,633
Credit facility, non-current	—		8,054
COMMITMENTS AND CONTINGENCIES (Note 15)
Non-current liabilities - discontinued operations	—		965
Shareholders’ deficit:
Total liabilities	$	62,633	$	56,961
Common Stock Class A, $0.0001 par value; 200,000,000 authorized; 9,510,784 and 1,843,852 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively	$	5	$	5
COMMITMENTS AND CONTINGENCIES (Note 18)
Additional paid-in capital	98,917		87,968
Shareholders’ equity (deficit):
Accumulated deficit	(100,771)		(104,307)
Common Stock Class A, $0.0001 par value; 200,000,000 authorized; 1,843,852 and 1,121,738 shares issued and outstanding as of December 31, 2024 and 2023, respectively	5		3
Total shareholders’ deficit	(1,849)		(16,334)
Additional paid-in capital	87,968		78,410
Total liabilities and shareholders’ equity	$	11,954	$	46,299
Stock subscriptions receivable	—		—
Accumulated deficit	(104,307)		(63,662)
Total shareholders’ equity (deficit)	(16,334)		14,751
Total liabilities and shareholders’ equity (deficit)	46,299		$	71,712

46The accompanying notes are an integral part of these consolidated financial statements.

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VOLATO GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except share data)

	For the Years Ended December 31,
			Twelve Months Ended December 31,
	2024		2023
					2025		2024
Revenue	$	~~46,288~~	$	~~35,573~~	$	78,559	$	39,064
Costs and expenses:
Cost of revenue	~~38,792~~		~~30,779~~		63,871		32,181
Selling, general and administrative	~~16,861~~		~~9,235~~		10,728		15,506
Total costs and expenses	~~55,653~~		~~40,014~~		74,599		47,687
Operating Loss	(9,365)		(4,440)
Operating income (loss)					3,960		(8,623)
Other income (expenses):
Gain from sale of consolidated entity	—		387
Other income, net					10,139		212
Other income	212		180
Other expense					(6,116)		—
Loss from change in fair value forward purchase agreement	(2,983)		(13,403)
Loss from change in fair value of financial instruments					(2,074)		(2,983)
Loss on extinguishment of debt	~~(2,804)~~		—		—		(2,804)
Interest expense, net	~~(7,493)~~		~~(3,358)~~		(4,848)		(7,493)
Other income (expenses)	(13,068)		(16,194)
Other income (expenses), net					(2,899)		(13,068)
Loss before provision for income taxes and discontinued operations	(22,433)		(20,634)
Income (loss) before provision for income taxes and discontinued operations					1,061		(21,691)
Provision for incomes taxes (benefit)	(507)		2
Provision for (benefit from) incomes taxes					207		(507)
Net loss from continuing operations	(21,926)		(20,636)
Net income (loss) from continuing operations					854		(21,184)
Net loss from discontinued operations	(18,719)		(32,186)
Net income (loss) from discontinued operations, net of taxes					4,319		(19,461)
Net loss	$	(40,645)	$	(52,822)
Net income (loss)					$	5,173	$	(40,645)
Basic and diluted net loss per share
Basic and diluted net loss per share:
Net loss per share from continuing operations, basic and diluted	$	(13.17)	$	(33.84)
Net income (loss) per share from continuing operations, basic					$	0.19	$	(12.73)
Net loss per share from discontinued operations, basic and diluted	$	(11.25)	$	(52.78)
Net income (loss) per share from continuing operations, diluted					$	0.19	$	(12.73)
Net loss per share, basic and diluted	$	(24.42)	$	(86.62)
Net income (loss) per share from discontinued operations, basic					$	0.98	$	(11.69)
Weighted average common share outstanding:
Net income (loss) per share from discontinued operations, diluted					$	0.98	$	(11.69)
Basic and diluted	1,664,502		609,800
Net income (loss) per share, basic					$	1.18	$	(24.42)
Net income (loss) per share, diluted					$	1.18	$	(24.42)
Weighted average common shares outstanding:
Basic					4,386,829		1,664,502
Diluted					4,386,829		1,664,502

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

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VOLATO GROUP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (DEFICIT)

(Amounts in thousands, except shares)

	Class A Common Stock		Additional Paid-in Capital			~~Subscription Receivable~~		Retained Deficit		Total Shareholders’ Equity (Deficit)
		Shares			Amount
Balance as of December 31, 2022, As adjusted		450,755	1			5,185		(15)		(10,840)		(5,669)
Balance as of December 31, 2023, as adjusted		1,121,738	$	3		$	78,410			$	(63,662)	$	14,751
Cash collected from subscription receivable		—	—			—		15		—		15
Stock-based compensation		—	—			211				—		211
Stock-based compensation		—	—			82		—		—		82
Exercise of stock options		34,052	—			94				—		94
Issuance of common stock to employees		378	—			94		—		—		94
Issuance of common stock		639,720	2			5,003				—		5,005
Reverse capitalization, net of transaction costs		346,039	1			10,461		—		—		10,462
Common stock and warrant reclass from in-kind liability to APIC		48,342	—			4,250				—		4,250
Exercise of stock options		8,294	—			23		—		—		23
Net loss		—	—			—				(40,645)		(40,645)
Issuance of Preferred series A-1 shares, converted to Class A common stock following business combination		97,898	—			24,204		—		—		24,204
Balance as of December 31, 2024		1,843,852	$	5		$	87,968			$	(104,307)	$	(16,334)
Issuance of Preferred series A-2 and A-3 shares from conversion of notes payable, converted to Class A common stock following business combination		218,375	1			38,361		—		—		38,362
Stock-based compensation		—	—			605				—		605
Net loss		—	—			—		—		(52,822)		(52,822)
Issuance of common stock		7,666,932	—			10,344				—		10,344
Balance as of December 31, 2023, As Adjusted		1,121,738	$	3		$	78,410	$	—	$	(63,662)	$	14,751
Dividends payable		—	—			—				(1,637)		(1,637)
Net income		—	—			—				5,173		5,173
Balance at December 31, 2025		9,510,784	$	5		$	98,917			$	(100,771)	$	(1,849)

	Class A Common Stock			Additional Paid-in Capital		Retained Deficit		Total Shareholders’ Equity (Deficit)
	Shares	Amount
Balance at December 31, 2023, as Adjusted	1,121,738	$	3	$	78,410	$	(63,662)	$	14,751
Stock-based compensation	—	—		211		—		211
Exercise of stock options	34,052	—		94		—		$	94
Issuance of common stock	639,720	2		5,003		—		5,005
Common stock and warrant reclass from in-kind liability to APIC	48,342	—		4,250		—		4,250
Net loss	—	—		—		(40,645)		(40,645)
Balance at December 31, 2024, as Adjusted	1,843,852	$	5	$	87,968	$	(104,307)	$	(16,334)

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

~~The accompanying notes are an integral part of these audited consolidated financial statements.~~ 51

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VOLATO GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	For the Years ended December 31,
	2024		2023
Operating activities:
Net loss from continuing operations	(21,926)		(20,636)
Net loss from discontinued operations	(18,719)		(32,186)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization expense	341		200
Stock compensation expense	211		82
Fair value of common stock issued to employees	—		94
Gain from sale of property and equipment	(2)		—
Loss on extinguishment of debt	2,804		—
Loss on impairment of intangible assets	130		—
Gain from sale of consolidated entity	—		(387)
Amortization right-of-use asset	34		—
Amortization of debt discount	301		183
Change in fair value forward purchase agreement	2,983		13,403
Changes in assets and liabilities:
Accounts receivable	441		296
Prepaid and other current assets	804		(1,589)
Deposits	4,325		(3,104)
Account payable and accrued liabilities	2,629		2,451
Operating lease liability	(34)		—
Customers’ deposits and deferred revenue	8,707		1,733
Change in assets and liabilities of discontinued operations	52		9,067
Net cash used in operating activities	(16,919)		(30,393)
Investing activities:
Cash payment for property and equipment	(145)		(637)
Proceeds from the sale of property and equipment	30		—
Cash from investing activities - discontinued operations	—		2,413
Net cash (used in) provided by investing activities	(115)		1,776
Financing activities:
Proceeds from lines of credit	—		1,000
Repayments of lines of credit	(1,000)		—
Collection on subscription receivable	—		15
Proceeds from issuance of term loan	3,884		—
Proceeds from issuance of convertible notes, net	4,050		12,670
Purchase of forward purchase agreement	—		(18,911)
Proceeds from forward purchase agreement	—		2,525
Repayment on loans	(2,717)		(787)
Proceeds from business combination	—		19,081
Business combination closing costs	—		(2,359)
Proceeds from the sale of preferred stock	—		24,204
Proceeds from exercise of stock options	94		23
Net cash provided by financing activities	4,311		37,461
Net (decrease) increase in cash	(12,723)		8,844
Cash and restricted cash, beginning of year	16,723		7,879
Cash and restricted cash, end of period	$	4,000	$	16,723
Supplemental disclosure of cash flow information:
Cash paid for interest	$	5,640	$	2,268
Non-Cash Investing and Financing Activities:
Credit facility for the aircraft deposits	—		24,000
Conversion of line of credit to convertible note with related party	—		6,001
Original debt discount	—		230
Conversion of preferred stock to common stock class A	—		62,565

(Amounts in thousands)


	Twelve Months Ended December 31,
	2025		2024
Operating activities:
Net income (loss) from continuing operations	$	854	$	(21,184)
Net income (loss) from discontinued operations	4,319		(19,461)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
Loss on G280 option from flyExclusive amendment	6,116		—
Depreciation and amortization expense	297		341
Non-monetary exchange	238		—
Stock compensation expense	605		211
Loss (gain) from sale of property and equipment	6		(2)
Loss on extinguishment of debt	—		2,804
Loss on impairment of intangible assets	—		130


Loss from sale of consolidated entity	35		—
Gain on settlement of liabilities	(10,049)


Amortization right-of-use asset	39		34
Amortization of debt discount	283		301
Change in fair value forward purchase agreement	—		2,983
Change in fair value of convertible notes	1,488		—
Loss on investment in M2i	869		—
Loss on investment in flyExclusive	41		—
Gain on aviation asset option	(324)		—

Changes in assets and liabilities:
Accounts receivable	(199)		—

Contract assets, net	(636)		—
Prepaid and other current assets	459		751
Deposits	8,237		4,325
Account payable and accrued liabilities	(110)		2,845
Operating lease liability	—		(34)


Customers’ deposits and deferred revenue	38		9,137
Net cash provided by operating activities from continuing operations	8,287		2,642
Net cash used in operating activities from discontinued operations	(4,795)		(19,561)
Net cash provided by (used in) operating activities	3,492		(16,919)
Investing activities:
Payoff of liability issued for flyExclusive investment	(7,796)
Cash payment for property and equipment	(211)		(145)
Proceeds from the sale of property and equipment	30		33
Interests on Note receivable	(99)		—






Cash used in investing activities - discontinued operations	—		(3)
Net cash used in investing activities	(8,076)		(115)
Financing activities:

Principal payment on lease obligations	(39)		—
Repayments of lines of credit	—		(1,000)

Proceeds from issuance of term loan	—		4,000
Proceeds from issuance of convertible notes, net	6,048		4,050

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Merger transaction cost payable in stock	—		4,250
Proceeds from issuance of shares under at-the-market sales plan	463
Liabilities assumed in merger transaction unpaid at 12/31/2023	—		1,722
Costs of share issuance	(66)		—
Repayment on loans	(1,124)		(2,928)
Proceeds from exercise of stock options	—		94
Cash provided by financing activities - discontinued operations	—		95
Net cash provided by financing activities	5,282		4,311
Net increase (decrease) in cash	698		(12,723)
Cash and restricted cash, beginning of period	4,000		16,723
Cash and restricted cash, end of period	$	4,698	$	4,000
Supplemental disclosure of cash flow information:
Cash paid for interest	$	989	$	5,640
Cash paid for income taxes	$	497	$	—
Non-Cash Investing and Financing Activities:
Note receivable from sale of GC Aviation, Inc.	$	1,800	$	—
Non-cash interest	$	3,981	$	—
Credit facility for the aircraft deposits	$	(28,500)	$	—
In-kind dividend payable	$	1,637	$	—
Issuance of shares for convertible notes	$	7,356	$	—
Investment in M2i - share exchange	$	(2,065)	$	—
Investment in flyExclusive	$	(1,780)	$	—
Liability issued for flyExclusive investment	$	7,796	$	—
Financing for aircraft purchase	$	55,861	$	—
Settlement on liability for aircraft purchase	$	(55,950)	$	—
Financed deposits on aircraft	$	28,500	$	—
Issuance of shares in exchange for debt reduction	$	523	$	—
Release of receivable via investment in flyExclusive	$	100
Initial recognition of right-of-use asset	$	—	$	201

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

5053

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VOLATO GROUP, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, ~~2024~~2025

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS

Volato Group, Inc. (“we”, “us”, “the Company”, or “Volato”) is a holding company for several wholly owned subsidiaries, including Volato, Inc., Fly Vaunt, LLC, Gulf Coast Aviation, LLC (f/k/a Gulf Coast Aviation, Inc.), Volato Merger Subsidiary, Inc., and GCParslee, ~~Aviation~~LLC. The Company’s primary operating subsidiary was founded in 2021. That year, the Company entered the private jet charter and fractional ownership market with its Part 135 HondaJet ownership program, taking delivery of its first jet in August 2021 and completing its first Part 135 charter flight in October of 2021. In March 2022, the Company acquired Gulf Coast Aviation, Inc. (n/k/a Gulf Coast Aviation, LLC), owner of G C Aviation, Inc., a Texas entity and Part 135 air carrier certificate holder. In March 2022, the Company placed orders for four Gulfstream G280s for delivery in 2024 and 2025. In September 2022, the Company started internal development on its full suite Flight Management Software platform Mission Control, and onin ~~October~~the 4,fourth quarter of 2023 the Company ~~announced~~commercially ~~the~~launched ~~commercial launch of~~ Vaunt, our proprietary consumer facing empty leg platform.

OnIn ~~December~~September 12024, ~~2023,~~the ~~Volato~~Company entered into an agreement with flyExclusive, Inc., (“~~Legacy Volato~~flyExclusive”), a ~~Georgia~~leading ~~corporation,~~provider ~~PROOF~~of ~~Acquisition~~private ~~Corp~~jet Icharter services, ato ~~Delaware~~transition ~~corporation~~the ~~(“PACI”)~~management ~~and~~of ~~PACI~~its ~~Merger~~aircraft ~~Sub,~~ownership ~~Inc.,~~fleet aoperations ~~Delaware~~to ~~corporation~~flyExclusive. ~~and~~This amove ~~direct,~~was ~~wholly-owned~~intended ~~subsidiary~~to ofbring ~~PACI~~substantial ~~(“Merger~~cost ~~Sub”),~~savings ~~consummated~~and ~~the~~allow ~~business~~Volato ~~combination~~to ~~pursuant~~focus toon ~~the~~its ~~Business~~potential ~~Combination~~high-growth ~~Agreement~~areas, ~~dated~~including ~~August~~aircraft 1,sales ~~2023~~and ~~(the~~proprietary ~~“Business~~software ~~Combination Agreement”)~~products. ~~Pursuant~~The toCompany ~~the~~has ~~Business~~continued ~~Combination~~to ~~Agreement,~~take adelivery ~~business~~of ~~combination~~new ~~between~~aircraft ~~PACI~~ and ~~Legacy~~also ~~Volato~~generate ~~was~~revenue ~~effected~~from ~~through~~its ~~the~~proprietary ~~merger~~software, ofincluding ~~Merger~~the ~~Sub~~Vaunt ~~with~~platform, ~~and~~its ~~into~~empty ~~Legacy~~leg ~~Volato,~~consumer ~~with~~app. ~~Legacy~~In ~~Volato~~the ~~surviving~~fourth ~~the~~quarter ~~merger~~of as2024, awe ~~wholly-owned~~transferred ~~subsidiary~~our ofaircraft ~~PACI~~lease ~~(the~~agreements ~~“Business~~to ~~Combination,”~~flyExclusive and ~~together~~have ~~with~~no ~~the~~further ~~other~~obligations ~~transactions~~under ~~contemplated by~~ the ~~Business~~aircraft ~~Combination~~lease ~~Agreement~~agreements ~~and~~or ~~the~~control ~~other~~over ~~agreements~~flight ~~contemplated~~operations. ~~thereby,~~The ~~the~~Company ~~“Transactions”).~~has Inretained ~~connection~~insider ~~with~~card ~~the~~liabilities ~~consummation~~ of ~~the~~$0.3 million ~~Business~~that ~~Combination~~is ~~(the~~included ~~“Closing”),~~in ~~PACI~~discontinued ~~changed~~operations ~~its~~as ~~name~~of ~~to “Volato Group~~December 31, ~~Inc~~2025.”

~~Legacy~~On ~~Volato~~February ~~was~~24, ~~deemed~~2025, the ~~accounting~~Company ~~acquirer~~effected ina ~~the~~reverse ~~business~~stock ~~combination.~~split ~~This~~of ~~determination~~its ~~was~~issued ~~primarily~~and ~~based~~outstanding onClass ~~Legacy~~A ~~Volato’s~~common ~~stockholders~~stock ~~prior~~(also referred to ~~the~~as ~~business~~“common ~~combination~~stock” ~~having a majority of the voting power~~ in ~~the~~this ~~combined~~Annual ~~company~~Report), ~~Legacy~~at ~~Volato having the ability to appoint~~ a ~~majority~~ratio of ~~the~~1-for-25 ~~board of directors of the combined company~~ (the “~~Board~~Reverse Stock Split”), ~~Legacy~~with ~~Volato’s~~no ~~existing~~change ~~management~~in ~~comprising~~par ~~the~~value. ~~senior~~All ~~management~~share ofamounts ~~the~~have ~~combined~~been ~~company,~~retroactively ~~Legacy~~adjusted ~~Volato~~to ~~comprising~~account ~~the~~for ~~ongoing operations of~~ the ~~combined~~split ~~company,~~as ~~Legacy~~if ~~Volato~~it ~~being~~occurred ~~the~~at ~~larger entity based on historical revenues and business operations, and the combined company assuming Legacy Volato’s name~~inception.

~~Accordingly,~~On ~~for~~March ~~accounting~~20, ~~purposes~~2025, the ~~business~~Company ~~combination~~sold ~~was~~its ~~treated~~former assubsidiary ~~the~~GC ~~equivalent of Legacy Volato issuing stock for the net assets of PACI~~Aviation, ~~accompanied by a recapitalization~~Inc. ~~Under this method of accounting~~, ~~PACI~~which ~~who~~holds ~~was~~ the ~~legal~~FAA ~~acquirer,~~Part is135 ~~treated~~certificate ~~as the “acquired” company (“accounting acquiree”)~~ for ~~financial reporting purposes~~$2.0 ~~The net assets of PACI are stated at historical cost~~million, ~~with no goodwill or other intangible assets recorded. The equity structure has been restated in all comparative periods up to the closing date to reflect the number~~ of ~~shares~~which ~~of the Company’s Common Stock,~~ $01.~~0001~~8 ~~par~~million ~~value~~was ~~per~~a ~~share,~~note ~~issued to Legacy Volato stockholders in connection with the business combination~~receivable.

AsOn ~~such~~July 28, 2025, the ~~shares~~Company entered into an Agreement and ~~corresponding~~Plan ~~capital~~of ~~amounts~~Merger and ~~earnings~~Reorganization ~~per~~(the ~~share~~“Merger ~~related~~Agreement”) towith ~~Legacy~~Volato Merger Subsidiary, Inc., a Nevada corporation and wholly-owned subsidiary of Volato’s ~~common~~(“Merger ~~stock~~Sub”), ~~prior~~and M2i Global, Inc., a Nevada corporation (“M2i”), pursuant to ~~the~~which ~~business~~Merger ~~combination~~Sub ~~have~~will ~~been~~merge ~~retroactively~~with ~~restated~~and asinto ~~shares~~M2i, ~~reflecting~~with M2i surviving the ~~exchange~~merger ~~ratio~~as a wholly-owned subsidiary of ~~approximately~~Volato 1(together with all other transactions contemplated by the Merger Agreement, the “Merger”).~~01508~~ ~~pursuant~~The Merger is subject to approval by the ~~terms~~Company’s ofstockholders ~~the~~and ~~business~~other ~~combination.~~customary ~~Legacy~~closing ~~Convertible~~conditions. ~~Preferred~~Upon ~~Stock~~consummation ~~was~~of ~~retroactively~~the ~~adjusted~~Merger, ~~converted~~it ~~into~~is ~~Common~~currently ~~Stock,~~expected ~~and~~that ~~reclassified~~M2i’s tostockholders ~~permanent~~will asown aapproximately ~~result~~85% of the ~~reverse~~combined ~~recapitalization~~company.

In ~~September~~July ~~2024~~2025, the Company ~~entered~~began ~~into~~development of an ~~agreement~~Artificial ~~with~~Intelligence ~~flyExclusive,~~based ~~Inc.,~~software aplatform ~~leading~~designed ~~provider of private jet charter services,~~ to ~~transition~~enhance the ~~management~~reliability of ~~its~~leading ~~aircraft~~large ~~ownership~~language ~~fleet~~models ~~operations~~when toanalyzing ~~flyExclusive. This move is expected to bring substantial cost savings and provide Volato with the opportunity to focus on its high-growth areas~~contracts, ~~including~~SEC ~~aircraft~~filings ~~sales~~ and ~~proprietary software. The Company will continue to take delivery of new aircraft while also generating revenue from its proprietary software~~reports, ~~including the Vaunt platform, its empty leg consumer app. In the fourth quarter of 2024, we transferred the aircraft lease agreements to flyExclusive~~ and ~~have~~other nostructured ~~further obligations under the aircraft lease agreements or control over flight operations~~documents.

On February 12, 2025, the Board unanimously approved a reverse stock split of the Company’s Common Stock, at a ratio of 1-for-25 (the “Reverse Stock Split”). The Reverse Stock Split became effective on February 24, 2025, with no change in par value. All share amounts have been retroactively adjusted to account for the split as if it occurred at inception.54

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On October 1, 2025, the Company entered into a Fourth Amendment (the “Amendment”) to Aircraft Management Services Agreement (as amended the “Agreement”) with flyExclusive to bring the Agreement in line with Company’s anticipated shift in operations, new business directives, and to better accommodate the proposed Merger with M2i. The Amendment served to (i) modify the term of the Agreement; (ii) grant flyExclusive, subject to certain terms and conditions, the right to purchase certain aviation-related assets from the Company and assume certain obligations of the Company (the “flyExclusive Asset Option”); (iii) grant the Company, subject to certain terms and conditions, the right to sell certain aviation-related assets to flyExclusive and assign certain obligations of the Company to flyExclusive (the “Company Asset Option,” and collectively with the flyExclusive Asset Option, the “Asset Options”); (iv) obligate flyExclusive to pay the Company $100,000 upon execution of the Amendment as settlement of net payables owed by flyExclusive to the Company under the terms of the Agreement (the “Net Payables Obligation”); and (v) modify the material terms of flyExclusive’s right to cause the Company to merge with and into a wholly owned subsidiary of flyExclusive (the “flyExclusive Merger Option”), including that the flyExclusive Merger Option is to be only exercisable in the event that the Company and M2i terminate the Merger Agreement. flyExclusive paid the Net Payables Obligation by issuing the Company 20,576 shares of Class A common stock.

As consideration for the execution of the Amendment, flyExclusive agreed to pay $2,000,000 to the Company, in cash or shares of flyExclusive Class A common stock, in exchange for the right to receive either (i) the net proceeds that the Company receives from the sale of a certain G280 aircraft, or (ii) if, and only if, Gulfstream provides written consent, assignment of the G280 Agreement from the Company to flyExclusive subject to the execution of an asset purchase agreement relating solely to the transfer of the G280 Agreement. The G280 aircraft was later delivered to the Company pursuant to an existing agreement (the “G280 Agreement”) with Gulfstream Aerospace Corporation (“Gulfstream”). flyExclusive elected to pay all of the $2,000,000 in shares of its Class A common stock and issued an aggregate of 411,523 shares of its Class A common stock to the Company, which occurred in Q4 2025.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Going concern, liquidity, and capital resources

The Company has ~~only~~limited ~~recently~~operating ~~been formed~~history, ~~has~~and ~~limited~~although ~~operating~~the ~~history,~~Company has ~~recorded~~realized a net ~~loss~~income of approximately $405.62 million for the ~~year~~twelve months ended December 31, ~~2024~~2025, the Company has a ~~negative~~ working capital deficit of approximately $183.89 million, and ~~has~~ an accumulated deficit of approximately $~~104~~100.38 million as of December 31, ~~2024~~2025. ~~Net cash used in operating activities for the year ended December 31, 2024, was approximately $16.9 million.~~

These above matters raise substantial doubt about the Company's ability to continue as a going concern. During the next twelve months, the Company intends to fund its operations through the issuance of financial instruments including ~~debts~~debt or equity, ~~extend~~securities ~~the use of its line of credit~~ and ~~the~~revenues ~~sale~~from ~~of aircraft at a premium to cost~~operations.

Accordingly, management believes that its current cash position, along with its ~~anticipated margin from aircraft sales and~~ proceeds from future debt and/or equity financings, when combined with prudent expense management, will allow the Company to continue as a going concern and to fund its operations for at ~~lease~~least one year from the date of issuance of these financial statements. There are no assurances, however, that management will be able to raise capital or debt on terms acceptable to the Company. If the Company is unable to obtain sufficient additional capital or debt on terms acceptable to the Company, the Company may be required to reduce the near-term scope of its planned development and operations, which could delay implementation of the Company’s business plan and harm its business, financial condition, and operating results. The balance ~~sheet~~sheets ~~does~~do not include any adjustments that might result from these uncertainties.

Basis of presentation

The ~~Company’s~~accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”) on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. and following the requirements of the Securities and Exchange Commission (the “SEC”).

Reclassifications

Certain amounts in ~~2023~~2024 have been reclassified to conform with the current ~~year~~period’s presentation, ~~primarily~~ to reflect discontinued operations.

~~Principles of Consolidation~~ 55

The consolidated financial statements include the Company’s accounts and the accounts of its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated.

The accompanying consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, Volato, Inc., a company incorporated in the State of Georgia, Gulf Coast Aviation, Inc. renamed Volato Aircraft Management Service (“VAMS”), a company incorporated in the State of Texas, GC Aviation, Inc., a company incorporated in the State of Texas, Fly Vaunt, LLC, a company incorporated in the State of Georgia, and Fly Dreams LLC, until March 3, 2023.

The Company’s consolidated subsidiaries were as follows:

Name of Consolidated Subsidiaries or Entities	State or Other Jurisdiction of Incorporation or Organization	Attributable Interest
Volato, Inc. (Legacy Volato)	Georgia	100	%
Gulf Coast Aviation, Inc.	Texas	100	%
G C Aviation, Inc.	Texas	100	%
Fly Vaunt, LLC	Georgia	100	%
Fly Dreams, LLC (until March 3, 2023)	Georgia	100	%

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~~One~~Principles of ~~the~~consolidation components of the Company’s business model included the sale of aircraft and ownership program. The aircraft ownership program was a model whereby the Company sold each fleet aircraft to a limited liability company, which was previously referred to as “Plane Co”. The Plane Co, which is owned by third-party owners, leased the aircraft back to the Company for management and charter operations on behalf of the LLC under 14 C.F.R. Part 135 certificate.

The ~~Company~~consolidated ~~does~~financial ~~not~~statements ~~hold~~include ~~any~~the ~~controlling~~Company’s ~~interest~~accounts inand ~~any~~the ~~Plane~~accounts ~~Co as~~ of ~~December~~its ~~31,~~wholly ~~2024,~~owned ~~or 2023~~subsidiaries. InAll ~~October~~intercompany ~~2024,~~transactions asand ~~part~~balances ofhave ~~the~~been ~~agreement with flyExclusive, the Company sold its interest in the Plane Co’s to flyExclusive~~eliminated.

Fly Dreams held the Federal Aviation Agency (“FAA”) certificate and conducts air carrier operations through an aircraft charter Management and Dry Lease Agreement with each of the Plane Co’s. On March 3, 2023, Legacy Volato transferred its Fly Dreams LLC operation to its wholly owned subsidiary Gulf Coast Aviation (“GCA”) and sold all of its membership interest in Fly Dreams LLC, including Fly Dreams FAA part 135 Certificate. Legacy Volato now conducts its operations under GCA FAA Part 135 Certificate. The selling price was $550 thousand, which resulted in the recognition of $387 thousand in gain, which is presented in other income (expense) in the consolidated statement of operations for the year ended December 31, 2023.

The Company does not hold any controlling interest in any limited liability companies as of December 31, 2024 and 2023.

Use of estimates

The preparation of financial statements in conformity with U.S. 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. Accordingly, actual results could differ from those estimates. Such estimates include:

•Useful lives of property, plant, and equipment.

•Assumptions used in valuing debt or equity instruments.

•Deferred income taxes and related valuation allowance.

•Assessment of long-lived assets impairment.

•Assumptions used in the ~~valuation~~aviation ofasset ~~the~~put/call ~~forward purchase agreement~~option.

Cash and restricted cash

Cash consists primarily of cash on hand and bank deposits. The Company maintains cash deposits with financial institutions that may exceed federally insured limits at times. The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. At December 31, ~~2024~~2025 and ~~2023~~December 31, 2024, the Company had no cash equivalents besides what was in the cash balance as of ~~this~~that date. The Company ~~has~~had ~~$1.8~~zero ~~million~~ and $21.28 million of restricted cash at December 31, ~~2024~~2025, and ~~2023~~December 31, 2024, respectively, which ~~serves~~served as collateral for the credit facility with SAC Leasing G280 LLC described in Note 11 below.

~~Investment~~Accounts -receivable ~~Equity Method~~

~~The~~Accounts ~~Company~~receivables ~~accounts~~are ~~for~~reported ~~its~~on ~~equity~~the ~~method~~consolidated ~~investment~~balance sheets at ~~cost,~~the outstanding principal amount adjusted for ~~the~~any allowance for credit losses and any charge offs. The Company’s ~~share~~provides ofan allowance for credit losses to reduce trade receivables to their estimated net realizable value equal to the ~~investee’s~~amount ~~earnings~~that oris ~~losses,~~expected ~~which~~to be collected. This allowance is ~~reported~~estimated ~~under~~based ~~other~~on ~~income~~historical ~~(expense)~~collection inexperience, the ~~consolidated~~aging ~~statement~~of receivables, specific current and expected future macro-economic and market conditions, and assessments of ~~operations~~the current creditworthiness and economic status of customers. The Company ~~periodically~~considers ~~reviews~~a ~~its~~receivable ~~investment~~delinquent ~~for~~if ~~other~~it ~~than~~is ~~temporary~~unpaid ~~declines~~after inthe ~~fair~~term ~~value~~of ~~below~~the ~~cost~~related ~~and~~invoice ~~more~~has ~~frequently~~expired. ~~when~~Balances ~~events~~that orare ~~changes~~still inoutstanding ~~circumstances~~after ~~indicate~~management ~~that~~has ~~the~~used ~~carrying~~reasonable ~~value~~collection ofefforts anare ~~asset~~written ~~may~~off. ~~not~~The beCompany ~~recoverable~~reviews its allowance for credit losses on a quarterly basis.

During ~~As of December 31, 2023,~~ the ~~only~~twelve ~~equity-method~~months ~~investment~~ended ~~was Volato 158 LLC with a 3.13% equity interest. As of~~ December 31, ~~2023,~~2025 ~~management~~and ~~believes the carrying value of its equity method investments was recoverable in all material respects. In October~~ 2024, the Company ~~sold~~recognized ~~the~~$147 ~~interest~~thousand ~~in Volato 158 LLC to flyExclusive~~ and ~~recorded~~zero ~~a loss~~ of ~~$162 thousand~~bad indebt ~~the year ended December 31~~expense, ~~2024~~respectively.

53Fixed assets

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Accounts Receivable

Accounts receivables are reported on the consolidated balance sheets at the outstanding principal amount adjusted for any allowance for credit losses and any charge offs. The Company provides an allowance for credit losses to reduce trade receivables to their estimated net realizable value equal to the amount that is expected to be collected. This allowance is estimated based on historical collection experience, the aging of receivables, specific current and expected future macro-economic and market conditions, and assessments of the current creditworthiness and economic status of customers. The Company considers a receivable delinquent if it is unpaid after the term of the related invoice has expired. Balances that are still outstanding after management has used reasonable collection efforts are written off. The Company reviews its allowance for credit losses on a quarterly basis

The Company recognized approximately zero and $106 thousand of bad debt expense during the years ended December 31, 2024 and 2023, respectively.

Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets, which range from three to seven years:


Classification						Life
Machinery and equipment						3-7 years
Automobiles						5 years
Computer and office equipment						5 years
Website development costs						3 years

~~Computer Software Development~~ 56

Software development costs are accounted for in accordance with ASC 350-40, Internal Use Software. Internal software development costs are capitalized from the time the internal use software is considered probable of completion until the software is ready for use. Business analysis, system evaluation and software maintenance costs are expensed as incurred.

The capitalized computer software development costs are reported under the section fixed assets, net in the consolidated balance sheet and are amortized using the straight-line method over the estimated useful life of the software, generally three years from when the asset is placed in service. The Company capitalized $142 thousand and $323 thousand of internal software development costs incurred during the year ended December 31, 2024 and 2023, respectively. The Company recognized $132 thousand and $25 thousand of amortization expense during the year ended December 31, 2024 and December 31, 2023, respectively. The Company also expenses internal costs related to minor upgrades and enhancements, as it is impractical to separate these costs from normal maintenance activities.

Website development cost

The costs incurred for activities during the website application and infrastructure development stage are capitalized in accordance with the guidance on internal-use software in ASC 350-40. The Company capitalized approximately zero and $241 thousand of website development costs during the year ended December 31, 2024 and December 31, 2023, respectively. The Company recognized approximately $97 thousand and $56 thousand of amortization expense during the year ended December 31, 2024 and December 31, 2023, respectively.

Valuation of Long-Lived Assets:

In accordance with Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 360, property, plant, and equipment, and long-lived assets are analyzed for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. The Company evaluates at each balance sheet date whether events and circumstances have occurred that indicate possible impairment. If there are indications of impairment, the Company uses future undiscounted cash flows of the related asset or asset grouping over the remaining life in measuring whether the assets are recoverable. In the event such cash flows are not expected to be sufficient to recover the recorded asset values, the assets are written down to their estimated fair value. No impairment was recognized during the years ended December 31, 2024 and 2023.

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Computer software development

Software development costs are accounted for in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350-40, Internal Use Software. Internal software development costs are capitalized from the time the internal use software is considered probable of completion until the software is ready for use. Business analysis, system evaluation and software maintenance costs are expensed as incurred. The capitalized computer software development costs are reported under the section “Property and equipment, net” in the consolidated balance sheets and are amortized using the straight-line method over the estimated useful life of the software, generally three years from when the asset is placed in service. The Company capitalized $211 thousand and $142 thousand and of internal software development costs during the twelve months ended December 31, 2025 and 2024, respectively. The Company recognized $158 thousand and $132 thousand of amortization expense related to computer software development during the twelve months ended December 31, 2025 and 2024, respectively. The Company also expenses internal costs related to minor upgrades and enhancements, as it is impractical to separate these costs from normal maintenance activities. During the twelve months ended December 31, 2025, the Company reduced the value of software development cost by $238 thousand, related to a non-monetary exchange with a third party and their use of our mission control software. This software development cost was originally developed for internal use and has subsequently been licensed to a third party in a non-monetary transaction.

Website development cost

The costs incurred for activities during the website application and infrastructure development stage are capitalized in accordance with the guidance on internal-use software in FASB ASC 350-40. The Company capitalized zero of website development costs during the twelve months ended December 31, 2025 and 2024, respectively. The Company recognized $97 thousand and $97 thousand of amortization expense during the twelve months ended December 31, 2025 and 2024, respectively.

Valuation of long-lived assets

In accordance with FASB ASC 360, property, plant, and equipment, and long-lived assets are analyzed for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. The Company evaluates at each balance sheet date whether events and circumstances have occurred that indicate possible impairment. If there are indications of impairment, the Company uses future undiscounted cash flows of the related asset or asset grouping over the remaining life in measuring whether the assets are recoverable. In the event such cash flows are not expected to be sufficient to recover the recorded asset values, the assets are written down to their estimated fair value. No impairment was recognized during the twelve months ended December 31, 2025 and 2024, respectively.

Fair value of financial instruments

The Company adopted the provisions of FASB ~~Accounting Standards Codification (“~~ASC”) 820 (the “Fair Value Topic”) which defines fair value, establishes a framework for measuring fair value under U.S. GAAP, and expands disclosures about fair value measurements.

The Company measures fair value under a framework that utilizes a hierarchy prioritizing the inputs to relevant valuation techniques. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of inputs used in measuring fair value are:

▪Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company as the ability to access.

▪Level 2: Inputs to the valuation methodology include:

•Quoted prices for similar assets or liabilities in active markets.

•Quoted prices for identical or similar assets or liabilities in inactive markets.

•Inputs other than quoted prices that are observable for the asset or liability.

•Inputs that are derived principally from or corroborated by observable market date by correlation or other means; and

•If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

▪Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The fair value of the Company’s recorded forward purchase agreement (“FPA”) is determined based on unobservable inputs that are not corroborated by market data, which require a Level 3 classification. A Monte Carlo simulation model was used to determine the fair value as of December 31, 2023. The Company records the forward purchase agreement at fair value on the consolidated balance sheets with changes in fair value recorded in the consolidated statements of operation. On July 23, 2024, the Company received notice of termination of the Forward Purchase Agreement and recognized an impairment in the value of the Forward purchase Agreement in the second quarter of 2024 due to receipt of the termination notice. 57

In December 2024, the Company entered into a Securities Purchase Agreement (“Securities Purchase Agreement”). Under the Securities Purchase Agreement, the Company may issue a series of convertible notes the “2024 Convertible note” for an aggregate principal not to exceed $36.0 million. During the year ended December 31, 2024, the Company issued a single convertible note in an aggregate principal amount of $4.5 million, of which $4.1 million was funded as of December 31, 2024, representing an original issue discount of ten percent. The Company elected the fair value guidance under ASC 825-10 and the initial note was recognized at initial fair value as of the issuance date. The value of the convertible note issued in December 2024 at issuance approximated fair value as of December 31, 2024.

The following table presents balances of the fair value instruments as of December 31, 2024, in thousands:

	Fair Value Measurements as of December 31, 2024
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant OtherObservable Inputs (Level 2)		Significant UnobservableInputs (Level 3)		Total
Forward Purchase Agreement	$	—	$	—	$	—	$	—
2024 Convertible Notes	—		—		4,050		4,050
Total	$	—	$	—	$	4,050	$	4,050

The following table presents changes of the forward purchase agreement with significant unobservable inputs (Level 3) for the year ended December 31, 2024 and 2023, in thousand:

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	Forward PurchaseAgreement
Balance at December 31, 2022	$	—
Cash funded	18,911
Proceeds	(2,525)
Change in fair value	(13,403)
Balance December 31, 2023	$	2,983
Cash funded	—
Proceeds	—
Change in fair value	(2,983)
Balance December 31, 2024	$	—

On November 28, 2023, the Company entered into a forward purchase agreement (the “Forward Purchase Agreement”). The fair value of the Company’s recorded Forward Purchase Agreement was determined based on unobservable inputs that are not corroborated by market data, which require a Level 3 classification. A Monte Carlo simulation model was used to determine the fair value as of December 31, 2023. The Company recorded the Forward Purchase Agreement at fair value on the consolidated balance sheets with changes in fair value recorded in the consolidated statements of operations. On July 23, 2024, the Company received notice of termination of the Forward Purchase Agreement and recognized an impairment in the value of the Forward Purchase Agreement in the second quarter of 2024 due to receipt of the termination notice. A loss of $3.0 million was recorded due to the cancellation of the Forward Purchase Agreement in 2024.

~~The~~In December 2024, the Company ~~measured~~entered into a Securities Purchase Agreement (“Securities Purchase Agreement”) pursuant to which the ~~forward~~Company ~~purchase~~may ~~agreement~~issue ~~using~~a series of convertible notes for an aggregate principal amount not to exceed $36.0 million. During the year ended December 31, 2024, the Company issued a ~~Monte~~single ~~Carlo~~convertible ~~simulation~~note ~~valuation~~in ~~model~~the ~~using~~principal amount of $4.5 million, (the ~~following~~“2024 ~~assumptions:~~Convertible Note”), of which $4.1 million was funded as of December 31, 2024, representing an original issue discount of ten percent. The Company elected the fair value guidance under ASC 825-10 and the 2024 Convertible Note was recognized at initial fair value as of the issuance date. The value of the 2024 Convertible Note at issuance approximated fair value as of December 31, 2024. Any issuances of additional convertible notes are subject to the terms and conditions of the Security Purchase Agreement (see Note 10).

			For the Year EndedDecember 31, 2023
Volume Weighted average stock price ("VWAP")			$3.82
Initial Price			$10.81
Expected Volatility			87.0%
Term			1.92
Risk-free Rate			4.2%

On September 30, 2025, Company, entered into Share Exchange Agreements (the “Share Exchange Agreements”), with two investors (together the “Investors”). The Investors are shareholders of M2i whose common stock is publicly quoted on the OTCQB Venture Market of OTC Markets Group, Inc. under the symbol “MTWO”. Pursuant to the Share Exchange Agreements, the Company agreed to issue an aggregate of 1,197,604 shares of the Company’s Class A common stock to the Investors in exchange for an aggregate of 16,000,000 shares of M2i common stock (the “Investment in M2i”). At the date of the exchange, the Company recognized a loss of $115 thousand in “Loss from change in fair value of financial instruments” on the consolidated statement of operations for the difference between the fair value of the Volato shares issued and the fair value of the Investment in M2i.

Pursuant to ASC 321, the Investment in M2i is measured at fair value each reporting period, with unrealized gain or loss recognized in earnings. The ~~following~~Investment ~~table~~in ~~presents~~M2i ~~changes~~is classified within Level 2 of the ~~Convertible~~fair ~~Notes~~value ~~with~~hierarchy ~~significant~~under ~~unobservable~~ASC 820, as it is based on quoted prices for identical assets in inactive markets. The inputs ~~(Level~~are 3)obtained from OTC quoted prices for level II. During the ~~year~~twelve months ended December 31, ~~2024~~2025, inthe Company recorded a loss of $753 thousand: related to the change in fair value of the Investment in M2i.

	Convertible Notes
Balance at December 31, 2023	$	—
Fair value at issuance	4,050
Change in fair value	—
Balance at December 31, 2024	$	4,050

On October 1, 2025, the Company entered into the Amendment with flyExclusive, as described in Note 1. As part of the amendment, flyExclusive agreed to pay $2.1 million in cash or shares of common stock to the Company for the net payables option and the proceeds from the sale of the fourth G280. flyExclusive issued the Company 432,099 shares of Class A common stock (the “Investment in flyExclusive”) in the fourth quarter of 2025. At the date of the exchange, the Company recognized a loss of $6.1 million in Other expense in the consolidated statements of operations. During the twelve months ended December 31, 2025 the Company recorded a loss of $41 thousand related to the change in the fair value of the Investment in flyExclusive.

~~The~~Pursuant ~~carrying~~to ~~amount~~ASC of321, the ~~Company’s~~Investment ~~financial~~in ~~assets~~flyExclusive ~~and~~is ~~liabilities,~~measured ~~such~~at asfair ~~cash,~~value ~~accounts~~each ~~receivable,~~reporting ~~prepaid and other assets~~period, ~~accounts~~with ~~payable~~unrealized ~~and~~gain ~~accrued~~or ~~expenses,~~loss ~~deposits,~~recognized ~~and~~in ~~members’ deposit approximate their fair value because of the short maturity of those instruments~~earnings. The ~~Company’s~~Investment ~~credit~~in ~~facility,~~flyExclusive ~~convertible~~is ~~notes~~classified ~~and~~within ~~other~~Level ~~loans~~1 ~~approximate~~of the fair value ofhierarchy ~~such~~under ~~liabilities~~ASC ~~based~~820, ~~upon~~as ~~management’s~~it ~~best~~is ~~estimate~~traded ofin ~~interest~~an ~~rates~~active ~~that would be available to the Company for similar financial arrangements and due to the short-term maturity of these instruments at December 31, 2024 and 2023~~market.

Additionally, with the signing of the Amendment with flyExclusive, as described in Note 1, it granted flyExclusive the right to purchase certain aviation-related assets from the Company and assume certain obligations of the Company and granted the Company the right to sell certain obligations of the Company to flyExclusive. The fair value of the Company’s recorded Aviation Asset Option was determined based on unobservable inputs that are not corroborated by market data, which require a Level 3 classification. A Black-Scholes model was used to determine the fair value as of December 31, 2025. As of December 31, 2025 the Company fair valued the aviation asset and recorded a gain on the asset of $324 thousand.

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The following table presents balances of the fair value instruments as of December 31, 2025 and December 31, 2024, in thousands:


	Fair Value Measurements as of December 31, 2025
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Financial liabilities:
Third Tranche Note	$	—	$	—	$	3,148	$	3,148
Fourth Tranche Note	—		—		1,082		1,082
Total financial liabilities	$	—	$	—	$	4,230	$	4,230

Financial assets:
Investment in M2i	$	—	$	1,197	$	—	$	1,197
Investment in flyExclusive	1,739		—		—		1,739
Aviation asset option	—		—		324		324
Total financial assets	$	1,739	$	1,197	$	324	$	3,260


	Fair Value Measurements as of December 31, 2024
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total

2024 Convertible Note	$	—	$	—	$	4,050	$	4,050
Total	$	—	$	—	$	4,050	$	4,050

The following table presents changes of all convertible notes issued under the Securities Purchase Agreement (see Note 10) with significant unobservable inputs (Level 3) for the twelve months ended December 31, 2025, in thousands:


	2024 Convertible Note
Balance at December 31, 2024	$	4,050










Change in fair value	$	1,488
Conversions	$	(7,356)
Additions	$	6,048
Balance as of December 31, 2025	$	4,230

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The Company measured the Third and Fourth Tranche Notes using a Monte Carlo simulation valuation model using the following assumptions:


	Twelve months ended December 31, 2025
	Third Tranche Note		Fourth Tranche Note
Volume Weighted average stock price ("VWAP")	0.65		0.65
Simulation Period	0.56		0.79
Expected Volatility	114.0	%	119.7	%
Credit risk-adjusted rate	20.9	%	20.9	%
Risk-free Rate	3.58	%	3.53	%

The following table represents the change in the Aviation asset option for the twelve months ended, December 31, 2025:


	Aviation asset option
Balance at December 31, 2024	$	—
Additions	—
Change in fair value	324
Balance at December 31, 2025	$	324

The Company measured fair value of the aviation asset option using a Black-Scholes model with the following assumption:


	As of December 31, 2025
Strike price	2,000,000
Expected term	0.67
Expected volatility	88.44	%
Risk fee rate	3.49	%
Dividend	0.00	%

There were no transfers between fair value levels during the period. There were no gains and losses attributable to changes in instrument specific credit risk as the Company determined the likelihood of an event of default to be de minimus. The carrying amount of the Company’s financial assets and liabilities, such as cash, accounts receivable, prepaid and other assets, accounts payable and accrued expenses, deposits, and members’ deposits approximate their fair value because of the short maturity of those instruments. The Company’s credit facility, convertible notes and other loans approximate the fair value of such liabilities based upon management’s best estimate of interest rates that would be available to the Company for similar financial arrangements and due to the short-term maturity of these instruments at December 31, 2025 and December 31, 2024.

Commitments and contingencies

The Company follows subtopic 450-20 of the FASB ASC to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred, and the amount of the assessment can be reasonably estimated.

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Warrants

The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in FASB ASC 480 Distinguishing Liabilities from Equity (“ASC 480”) and FASB ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own ~~Common~~common ~~Stock~~stock, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent reporting period end date while the warrants are outstanding. All of the Company’s warrants have met the criteria for equity treatment.

Revenue recognition

The Company determines revenue recognition pursuant to ~~Accounting Standards Codification (“~~ASC”) 606, Revenue from Contracts with Customers, through the following steps:

1.Identification of the contract, or contracts, with a customer.

2.Identification of the performance obligation(s) in the contract.

3.Determination of the transaction price.

4.Allocation of the transaction to the performance obligation(s) in the contract.

~~The~~5.Recognize ~~Company generates~~ revenue ~~primarily~~when ~~through:~~or ~~(i) the sale of aircraft, (ii) aircraft management services, and (iii) our Vaunt software-~~as~~-a-subscription~~ ~~product. Revenue is recognized when control of~~ the ~~promised~~entity ~~service~~satisfies ~~is transferred to~~ a customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies, as a performance obligation~~, each promise to transfer a good or service to a customer that is distinct~~. To identify its performance obligations, the Company considers all of the goods and services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices.

~~For~~The ~~each~~Company generates revenue ~~stream,~~primarily wethrough: ~~evaluate~~(i) ~~whether~~the ~~our~~sale ~~obligation~~of isaircraft, toand ~~provide~~(ii) ~~the~~our ~~good~~Vaunt ~~or service itself,~~ software-as-a-subscription ~~the~~product. ~~principal~~Revenue oris torecognized ~~arrange~~when ~~for~~control of the ~~good~~promised or service is transferred to bea ~~provided~~customer, byin ~~the~~an ~~other~~amount ~~party,~~that asreflects the ~~agent,~~consideration ~~using~~ the ~~control~~Company ~~model.~~expects ~~For~~to ~~certain~~be ~~services~~entitled ~~provided~~ to ~~the customer, primarily~~ in ~~our~~exchange ~~aircraft~~for ~~management~~those services. ~~revenue~~At ~~stream~~contract inception, the Company ~~directs~~assesses ~~third-party~~the ~~providers~~goods toand ~~assist~~services inpromised ~~our fulfillment of the performance obligation~~ in its contracts with ~~our~~ customers. ~~Any cost reimbursements~~ and ~~third-party~~identifies, ~~costs~~as ~~are recognized in revenue on~~ a ~~gross~~performance ~~basis~~obligation, aseach ~~Volato~~promise ~~has~~to ~~pre-negotiated~~transfer ~~these~~a ~~costs~~good ~~and~~or ~~takes~~service to a ~~certain~~customer ~~amount of risk~~ that itis ~~will~~distinct. ~~not~~To ~~fully~~identify ~~recover~~its ~~the~~performance ~~costs incurred. In such circumstances~~obligations, the Company isconsiders ~~primarily~~all ~~responsible~~of ~~for satisfying~~ the ~~overall~~goods ~~performance obligation with the customer~~ and isservices ~~considered~~promised ~~the principal~~ in the ~~relationship~~contract ~~because~~regardless ~~the~~of ~~Company~~whether ~~has~~they ~~the~~are ~~ability~~explicitly tostated ~~direct~~or ~~the~~are ~~third~~implied ~~parties~~by tocustomary ~~provide~~business ~~services to our customers~~practices.

For each revenue stream, we evaluate whether our obligation is to provide the good or service itself, as the principal or to arrange for the good or service to be provided by the other party, as the agent, using the control model. In such circumstances, the Company is primarily responsible for satisfying the overall performance obligation with the customer and is considered the principal in the relationship.

Revenue from aircraft sales is recognized upon the delivery of the aircraft.

The Company’s ~~contracts~~generated ~~for~~revenue ~~managing~~during ~~aircraft~~the ~~provide~~twelve ~~for~~months ~~fixed~~ended ~~monthly~~December ~~management~~31, ~~fees~~2025 and ~~reimbursement~~2024, ofbroken ~~operating~~down ~~expenses~~as ~~at a predetermined margin. Generally~~follows, ~~contracts~~in ~~require two months advance deposit of estimated expenses.~~thousands:

Contract liabilities consist of customer prepayments and the aircraft deposits referred to above. Total contract liabilities were $11.5 million and $2.8 million as of December 31, 2024 and 2023, respectively.


	Twelve Months Ended December 31,
		2025		2024
Aircraft sales		$	77,100	$	38,150
Subscription		1,459		914
Total		$	78,559	$	39,064

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~~The~~Revenue ~~Company~~from ~~has~~the ~~generated~~sales ~~revenue~~of ~~during~~our Vaunt Software-as-a-subscription is deferred and recognized over the ~~year~~subscription ~~ended~~term ~~December 31,~~of ~~2024~~the software and ~~December~~is ~~31,~~included ~~2023,~~in ~~broken~~customer ~~down~~deposits asand ~~follows,~~deferred inrevenue ~~thousands:~~on the consolidated balances sheets.

	Year ended December 31,
	2024		2023
Aircraft sales	$	38,150	$	21,443
Managed Aircraft	7,224		14,107
Subscription	914		23
Total	$	46,288	$	35,573

The following table provides a rollforward of deferred revenue, recorded in customer deposits and deferred revenue in the consolidated balance sheets, for the twelve months ended December 31, 2025:


	Amount
Balance as of December 31, 2024	$	696
Revenue recognized	(1,459)
Revenue deferred	3,485
Balance as of December 31, 2025	$	2,722

Assets Recognized from the Costs to Obtain Revenue Contracts

We recognize an asset for the incremental costs of obtaining a contract with a client if we expect the amortization period to be longer than one year, such costs are specifically identifiable, generate or enhance resources used to satisfy future performance obligations, and are expected to be recovered. We have determined the costs incurred are incremental and recoverable and are subject to capitalization and amortization under ASC 340-40. The capitalized costs relate to revenue share with Vaunt operators and Vaunt sales commissions. The assets are capitalized and amortized ratably over the expected period of the benefit, which is currently estimated at 14 months.

The following tables present the asset balances and related amortization expense for the contract assets:


	As of and for the twelve months ended December 31, 2025
	Beginning Balance		Amount Capitalized		Amortization		Ending Balance
Contract assets	$	—	$	935	$	(299)	$	636

Income taxes

The Company follows Section 740-10-30 of the FASB ASC, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the fiscal year in which the temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

The Company follows the guidance of 740-10-25 of the FASB ASC (“Section 740-10-25”) with regards to uncertainty in income taxes. Section 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Section 740-10-25 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The Company had no material adjustments to its assets and/or liabilities for unrecognized income tax benefits according to the provisions of Section 740-10-25.

The Company is subject to tax in the United States (“U.S.”) and files tax returns in the U.S. Federal jurisdiction, and state jurisdictions. The Company is subject to U.S. Federal, state, and local income tax examinations by tax authorities. The Company currently is not under examination by any tax authority.

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Stock-based compensation

The Company accounts for equity-based compensation using the fair value method as set forth in the ASC 718, Compensation—Stock Compensation, which requires the measurement and recognition of compensation expense for all stock-based payment awards based on estimated fair values. This method requires companies to estimate the fair value of stock-based compensation on the date of grant using an option pricing model. The Company estimates the fair value of each equity-based payment award on the date of grant using the Black-Scholes pricing model.

The Black-Scholes model determines the fair value of equity-based payment awards based on the fair value of the underlying common stock on the date of grant and requires the use of estimates and assumptions, including the fair value of the Company’s common stock, exercise price of the stock option, expected volatility, expected life, risk-free interest rate and dividend rate. The Company estimates the expected volatility of its stock options by taking the average historical volatility of a group of comparable publicly traded companies over a period equal to the expected life of the options; it is not practical for the Company to estimate its own volatility due to the lack of historical prices. The expected term of the options is determined in accordance with existing equity agreements as the underlying options are assumed to be exercised upon the passage of time. The risk-free interest rate is the estimated average interest rate based on U.S. Treasury zero-coupon notes with terms consistent with the expected life of the awards. The expected dividend yield is zero as the Company does not anticipate paying any recurring cash dividends in the foreseeable future. The Company accounts for forfeitures as they occur.

58Net income (loss) per share

~~Table~~The Company computes basic and diluted earnings per share amounts pursuant to section 260-10-45 of ~~Contents~~the FASB ASC. Basic earnings per share is computed by dividing net income (loss) available to common shareholders, by the weighted average number of shares of common stock outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted earnings per share is computed by dividing net income (loss) available to common shareholders by the diluted weighted average number of shares of common stock during the period. The diluted weighted average number of common shares outstanding is the basic weighted number of shares adjusted as of the first day of the year for any potentially dilutive debt or equity. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation. Securities that are excluded from the calculation of weighted average dilutive common shares because their inclusion would have been antidilutive for the twelve months ended months ended December 31, 2025, include stock options, restricted stock units and warrants.

~~Net~~The ~~loss~~Company ~~per~~had ~~share~~17,703 and 18,614 outstanding stock options to purchase an equivalent number of shares of common stock at December 31, 2025, and 2024, respectively.

The Company ~~computes~~had ~~basic~~10,964 and ~~diluted earnings per share amounts pursuant to section 260-10-45 of the FASB ASC. Basic earnings per share is computed by dividing net loss available to common shareholders~~29,080 byoutstanding ~~the~~restricted ~~weighted average number of shares of common~~ stock ~~outstanding~~units ~~during the period, excluding the effects of any potentially dilutive securities. Diluted earnings per share is computed by dividing net loss available~~ to ~~common~~purchase ~~shareholders~~an byequivalent ~~the diluted weighted average~~ number of shares of common stock ~~during~~at the period. The diluted weighted average number of common shares outstanding is the basic weighted number of shares adjusted as of the first day of the year for any potentially dilutive debt or equity. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation. Securities that are excluded from the calculation of weighted average dilutive common shares because their inclusion would have been antidilutive for the year ended December 31, ~~2024,~~2025 ~~include stock options~~ and ~~convertible~~2024, ~~debt~~respectively.

The Company ~~has~~also ~~18,614~~had ~~and 94~~1,~~767~~161,195 outstanding ~~stock~~warrants ~~options~~ to purchase an equivalent number of shares of common stock atas of December 31, ~~2024,~~2025 and ~~2023~~2024, respectively at a weighted average strike price of $287.50.

~~The~~Concentration ~~Company also has 1,161,195 outstanding warrants to purchase an equivalent number~~ of ~~shares~~credit ofrisk ~~common stock as of December 31, 2024 and 2023 at a weighted average strike price of $287.50.~~

Concentration of Credit Risk

The Company maintains its cash with a major financial institution located in the United States of America which it believes to be creditworthy. Balances are insured by the Federal Deposit Insurance Corporation up to $250,000. At times, the Company may maintain balances in excess of the federally insured limits.

Intangible ~~Assets~~assets

Intangible assets other than goodwill consists of acquired finite-lived customer relationships and acquired indefinite-lived Part 135 air carrier certificate. At initial recognition, intangible assets acquired in a business combination are recognized at their fair value as of the date of acquisition. Following initial recognition, finite-lived intangible assets are carried at cost less accumulated amortization and impairment losses, if any, and are amortized on a straight-line basis over the estimated useful life of the asset, which was determined based on management’s estimate of the period over which the asset will contribute to our future cash flows.

The Company reviews the intangible assets for impairment on an annual basis or if events or changes in circumstances indicate it is more likely than not that they are impaired. These events could include a significant change in the business climate, legal factors, a decline in operating performance, competition, sale, or disposition of a significant portion of the business, or other factors. If the review indicates the impairment, an impairment loss would be recorded for the difference of the value recorded and the new value. For the years ended December 31, 2024 and 2023, there was no material impairment loss recognized for the intangible assets.63

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The Company reviews the intangible assets for impairment on an annual basis or if events or changes in circumstances indicate it is more likely than not that they are impaired. These events could include a significant change in the business climate, legal factors, a decline in operating performance, competition, sale, or disposition of a significant portion of the business, or other factors. If the review indicates the impairment, an impairment loss would be recorded for the difference of the value recorded and the fair value. There was no impairment loss for the twelve months ended December 31, 2025 or 2024, respectively.

Goodwill

Goodwill represents the excess of the aggregate purchase price paid over the fair value of the net assets acquired in our business combinations. Goodwill is not amortized and is tested for impairment at least annually or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Events or changes in circumstances that could trigger an impairment review include a significant adverse change in business climate, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, significant changes in the manner of our use of the acquired assets or the strategy for our overall business, significant negative industry or economic trends, or significant underperformance relative to expected historical or projected future results of operations. The Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying value, including goodwill.

If, after assessing the totality of events or circumstances, the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, additional impairment testing is not required. The Company tests for goodwill impairment annually during its fourth quarter. In March 2025, the Company sold GC Aviation, Inc. and the Part 135 air carrier certificate. In connection with that sale, the Company recorded an impairment on goodwill of $35 thousand for the twelve months ended December 31, 2025. The loss is recorded in other income, net in the consolidated statements of operations. There was no impairment ofloss ~~goodwill~~recorded for the ~~year~~twelve months ended December 31, 2024 ~~and 2023~~.

59Segment reporting

~~Table~~The Company identifies operating segments as components of ~~Contents~~the Company for which discrete financial information is available and is regularly reviewed by the chief operating decision maker (“CODM”), or decision-making group, in making decisions regarding resource allocation and performance assessment. The CODM is the chief executive officer. We determined that the Company operates in a single operating and reportable segment, private aviation services, and the CODM reviews financial information including total assets from continuing operations and net income (loss) from continuing operations before income taxes presented on a consolidated basis for purposes of making operating decisions, allocating resources, and assessing performance. Substantially all of our long-lived assets are located in the U.S.

Segment Reporting

The Company identifies operating segments as components of the Company for which discrete financial information is available and is regularly reviewed by the chief operating decision maker, or decision-making group, in making decisions regarding resource allocation and performance assessment. The chief operating decision maker is the chief executive officer. We determined that the Company operates in a single operating and reportable segment, private aviation services, as the chief operating decision maker reviews financial information presented on a consolidated basis, accompanied by disaggregated information about revenue and cost of revenue for purposes of making operating decisions, allocating resources, and assessing performance. Substantially all of our long-lived assets are located in the U.S. and revenue from private aviation services is substantially earned from flights throughout the U.S.

Cost of revenue

Cost of revenue includes costs that are directly related to the related revenue streams – aircraft sales, ~~managed aircraft,~~ and subscription based revenue. Aircraft sales cost of revenue is our purchase price of the aircraft. ~~Managed aircraft cost of revenue includes all costs incurred in our managed aircraft including the cost of flight crews, fuel, maintenance, and landing and other airport fees.~~ Subscription costs includes costs of our proprietary software, the Vaunt platform..

Advertising ~~Costs~~costs

Advertising costs are expensed as incurred and included in ~~management~~selling, general and ~~general~~administrative expenses on the statements of operations. Such advertising amounted to $41.50 million and $24.85 million for the ~~years~~twelve months ended December 31, ~~2024~~2025 and ~~2023~~2024, respectively.

Variable Interest Entity (VIE) Accounting

The Company evaluates its ownership, contractual relationships, and other interests in entities to determine the nature and extent of the interests, whether such interests are variable interests and whether the entities are VIEs in accordance with ASC 810, Consolidations. These evaluations can be complex and involve Management judgment as well as the use of estimates and assumptions based on available historical information, among other factors. Based on these evaluations, if the Company determines that it is the primary beneficiary of a VIE, this VIE entity is consolidated into the consolidated financial statements.

Leases

ASC Topic 842, “Leases” (“ASC 842”) requires lessees to recognize most leases on the balance sheet with a corresponding right-toof-use asset (“ROU asset”). ROU asset represents the Company’s right to use an underlying asset for the lease term and lease liability represents the Company’s obligation to make lease payments arising from the lease. The right-of-use asset and lease liability are recognized at the lease commencement date based on the estimated present value of fixed lease payments over the lease term. ROU asset is evaluated for impairment using the long-lived asset impairment guidance. Leases will be classified as financing or operating, which will drive the expense recognition pattern. The Company elects to exclude short-term leases when recording a ROU asset and lease liability if and when the Company has them.

Recent Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments included in ASU 2016-13 require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Although the new standard, known as the current expected credit loss (“CECL”) model, has a greater impact on financial institutions, most other organizations with financial instruments or other assets (trade receivables, contract assets, lease receivables, financial guarantees, loans and loan commitments, and held-to-maturity (HTM) debt securities) are subject to the CECL model and will need to use forward-looking information to better evaluate their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 was originally effective for public companies for fiscal years beginning after December 15, 2019. In

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November of 2019, the FASB issued ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, which delayed the implementation of ASU 2016-13 to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years for smaller reporting companies. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

In November 2023, the Financial Account Standard Board “FASB” issued Accounting Standards Update “ASU” 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which modifies the disclosure and presentation requirements of reportable segments. The amendments in the update require the disclosure of significant segment expenses that are regularly provided to the chief operating decision maker “CODM” and included within each reported measure of segment profit and loss. The amendments also require disclosure of all other segment items by reportable segment and a description of its composition. Additionally, the amendments require disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. This update is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, Early adoption is permitted. The Company is currently evaluating the impact that this guidance will have on the presentation of its consolidated financial statements and accompanying notes.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and disclosures regarding cash taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2025. The Company is currently evaluating the impact that this guidance will have on the presentation of its consolidated financial statements and accompanying notes.

The Company has evaluated all the recent accounting pronouncements and determined that there are no accounting pronouncements that will have a material effect on the Company’s consolidated financial statements.

NOTE 3 – BUSINESS COMBINATION

As discussed in Note 1, on December 1, 2023, the Company consummated the business combination pursuant to the merger agreement. The business combination was accounted for as a reverse recapitalization in accordance with GAAP. Under this method of accounting, Proof Acquisition Corp I or PACI, who was the legal acquirer, was treated as the “acquired” company for financial reporting purposes. Accordingly, the business combination was treated as the equivalent of Legacy Volato issuing stock for the net assets of PACI, accompanied by a recapitalization.

Upon the closing, holders of Legacy Volato common stock received shares of Common Stock of Volato Group, Inc. in an amount determined by application of the exchange ratio of approximately 1.01508 (the “exchange ratio”), prior to the effect of the 1-25 Reverse Stock Split. For periods prior to the business combination, the reported share and per share amounts have been retroactively converted by applying the exchange ratio. The consolidated assets, liabilities and results of operations prior to the business combination are those of Legacy Volato.

In connection with the business combination, approximately $5.7 million of transaction related expenses and other costs were incurred.

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NOTE 3 – BUSINESS COMBINATION – (CONTINUED)

The following table reconciles the elements of the business combination to the consolidated statement of cash flows and the consolidated statement of changes in equity:

(In thousands)	Year EndedDecember 31, 2023
Cash - PACI trust and cash (net of redemptions)	$	19,081
Gross Proceeds	$	19,081
Less Transaction related expenses and other costs	(6,898)
Less Net liabilities assumed from PACI	(1,722)
Net proceeds from the business combination	$	10,461

The number of shares of Common Stock outstanding immediately following the closing was as follows:

			Class ACommon Stock
PACI public shareholders			70,696
PACI's sponsors			275,343
Company's employees			378
Legacy Volato shareholders (1)			297,397
Legacy Volato Series Preferred investors			477,924
Total shares of Common Stock immediately after closing			1,121,738

(1) The number of Legacy Volato shares was determined from the shares of Legacy Volato shares outstanding immediately prior to the closing converted at the exchange ratio of approximately 1.01508.

NOTE 4 – INITIAL PUBLIC OFFERING AND PRIVATE PLACEMENT

Pursuant to the Initial Public Offering (“IPO”) in December of 2021, Proof Acquisition Corp I or PACI sold 1,104,000 Units at a price of $250.00 per Unit. Each Unit consists of one share of Class A common stock and one-half of one redeemable warrant (“Public Warrant”). Each whole Public Warrant entitles the holder to purchase one share of Class A common stock at a price of $287.50 per share, subject to adjustment (see Note 17). At the effective date of the merger on December 1, 2023, 70,696 shares were outstanding and not redeemed and were converted into an equivalent number of Class A shares of common stock of Volato Group, Inc.

At the time of the merger, 275,343 founders’ shares (formerly PACI’s Class B common stock shares) were also outstanding and were converted into an equivalent number of Class A shares of common stock of Volato Group, Inc.

Simultaneously with the closing of the IPO in 2021, PACI consummated the private sale to the Sponsor and BlackRock of an aggregate of 609,195 private placement warrants. Each private placement warrant is exercisable to purchase one share of Class A common stock at a price of $287.50 per share, subject to adjustment. These warrants are outstanding as of December 31, 2024 and 2023.

NOTE 5 – DISCONTINUED OPERATIONS

In September 2024, the Company entered into an agreement with flyExclusive to transition our aircraft ownership program fleet operations to flyExclusive. This move is expected to provide Volato with the opportunity to focus on what it believes to be its high-growth areas, including aircraft sales and proprietary software. We will continue to take delivery of new aircraft, while also generating revenue from our proprietary software, including the Vaunt platform, Volato’s successful empty leg consumer app.

Major classes of line items constituting loss from discontinued operations is as follows:

	Year Ended December 31,
	2024		2023
Revenue - Aircraft usage	$	32,546	$	37,765
Costs of Revenue - Aircraft usage	43,488		51,245
Selling, general and administrative	17,679		19,592
Gain (loss) from sale of equity method investment	—		886
Other Income from discontinued operations	9,902		—
Loss from discontinued operations	$	(18,719)	$	(32,186)

As part of the agreement with flyExclusive they assumed liabilities for insider cards generating a gain of $10.0 million for the Company that is included in discontinued operations.

Carrying amounts and major classes of assets included as part of discontinued operations is as follows:

	December 31,2024		December 31,2023
Accounts receivable	$	1,027	$	2,548
Prepaid and other assets	1,215		2,024
Operating lease, right-of-use assets	—		1,278
Equity-method investment	—		154
Deposits	—		441
Total assets associated with discontinued operations	$	2,242	$	6,445

Carrying amounts and major classes of liabilities included as part of discontinued operations is a follows:

	December 31,2024		December 31,2023
Accounts payable and accrued liabilities	$	6,086	$	4,333
Operating lease liability	—		1,291
Credit facility and other loans	918		509
Customer deposits and deferred revenue	5,004		10,026
Total liabilities associated with discontinued operations	$	12,008	$	16,159

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NOTE 6–INTANGIBLES

Finite-Lived Intangible Assets

The following is a summary of finite-lived intangible assets as of December 31, 2024 and 2023, in thousands:

December 31, 2024

Cost

Accumulated Amortization

Net

Customer relationships

—

	December 31, 2023
	Cost		Accumulated Amortization		Net
Customer relationships	$	301	$	(110)	$	191
	$	301	$	(110)	$	191

As of December 31, 2024, the Company impaired the value of the customer relationships asset and recorded a loss on the impairment of $130 thousand which is recorded in selling, general and administrative expenses. Intangible asset amortization expense was $61 thousand and $61 thousand for the years ended December 31, 2024 and 2023, respectively.

Indefinite - Lived Intangible Assets

The following table summarizes the balances as of December 31, 2024 and 2023, of the indefinite-lived intangible assets, in thousand:

			December 31, 2024						December 31, 2023
Intangible asset - Part 135 certificate			$	1,200					$	1,200

The FAA Part 135 certificate for a total amount of $1.2 million relates to the certificate acquired from the GCA acquisition.

During the year ended December 31, 2023, the Company transferred its Fly Dreams LLC operations to GCA and sold its membership interest in Fly Dreams LLC, including Fly Dreams FAA Part 135 Certificate, with a carrying balance of $163 thousand, for a selling price of $550 thousand, which resulted in a gain in the amount of $387 thousand, which was reported in other income in the consolidated statement of operations for the year ended December 31, 2023. The Company did not recognize any impairment of the Part 135 certificates as of December 31, 2024, and 2023.

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~~NOTE~~Leases 7will be classified as financing or operating, which will drive the expense recognition pattern. The Company elects to exclude short-term ~~MERGER~~leases ~~TRANSACTION~~when ~~COSTS~~recording ~~PAYABLE~~a ROU asset and lease liability if and when the Company has them.

~~Merger~~Recent ~~transaction~~accounting ~~cost~~pronouncements ~~payable consist of the following as of December 31, 2024 and 2023, in thousand:~~

	December 31, 2024		December 31, 2023
Transaction costs payable in common stock	$	—	$	4,250
Total	$	—	$	4,250

In November 2023, the FASB issued Accounting Standards Update “ASU” 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which modifies the disclosure and presentation requirements of reportable segments. The amendments in the update require the disclosure of significant segment expenses that are regularly provided to the chief operating decision maker “CODM” and included within each reported measure of segment profit and loss. The amendments also require disclosure of all other segment items by reportable segment and a description of its composition. Additionally, the amendments require disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. This update is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption was permitted. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

In ~~connection~~December ~~with the business combination~~2023, the ~~Company~~FASB ~~entered~~issued ~~into~~ASU ~~three~~2023-09, ~~agreements~~Income Taxes (~~the~~Topic ~~“Agreements”~~740): ~~with~~Improvements ~~financial~~to ~~institutions~~Income Tax Disclosures, which expands disclosures in ~~which~~an ~~the~~entity’s ~~Company~~income ~~agreed~~tax torate ~~pay~~reconciliation atable ~~success~~and ~~fee~~disclosures regarding cash taxes paid both in the ~~aggregate~~U.S. ~~amount~~and offoreign $4jurisdictions.~~25 million~~ toThe ~~the~~update ~~financial~~will ~~institutions~~be ineffective ~~case~~for ~~the~~annual ~~Company~~periods ~~consummates~~beginning ~~the~~after ~~acquisition~~December 15, 2025. ~~The~~Adoption ~~success~~of ~~fees~~the ~~were~~standard towill be ~~paid~~applied inon ~~shares~~a ofprospective ~~the~~basis ~~Company’s~~and ~~common~~retrospective ~~stock~~application ~~and~~to ~~warrants~~all ~~during~~periods ~~the~~presented ~~2024~~is ~~fiscal~~permitted. ~~year~~We adopted ASU 2023-09 this Annual Report on Form 10-K using the prospective approach.

~~ASC~~In ~~480~~November ~~Distinguishing~~2024, ~~Liabilities~~the ~~From~~FASB ~~Equity~~issued ~~requires~~Accounting ~~liability~~Standards ~~classification~~Update 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”). ASU 2024-03 is intended to enhance the disclosures for expenses for all ~~instruments~~public ~~that~~entities ~~embodies~~in anaccordance ~~unconditional~~with ~~obligation~~ASC ~~that~~Topic ~~the~~220, ~~Company~~Income ~~must~~Statement-Reporting orComprehensive ~~may~~Income. ~~settle~~ASU by2024-03 ~~issuing~~addresses investor requests for more detailed information about expenses, specifically cost of sales and selling, general, and administrative expenses. ASU 2024-03 requires a ~~variable~~public ~~number~~entity to disclose the amounts of ~~its~~(a) ~~equity~~purchases ~~shares~~of inventory, if(b) employee compensation, at(c) ~~inception~~depreciation, ~~the~~(d) ~~monetary~~intangible ~~value~~asset amortization, and (e) depreciation, depletion, and amortization recognized as part of ~~the~~oil- ~~obligation~~and isgas-producing ~~based~~activities ~~solely~~(or onother aamounts ~~fixed~~of ~~monetary~~depletion ~~amount~~expense) ~~know~~included atin ~~inception.~~each Asrelevant aexpense ~~result,~~caption presented on the ~~Company~~face ~~classified~~of ~~such~~the ~~liability~~income instatement ~~current~~as ~~liabilities~~well as a qualitative description of ~~December~~the ~~31,~~amounts ~~2023.~~remaining Inin ~~January~~the relevant expense captions that are not separately disaggregated quantitatively. ASU 2024,-03 ~~the~~also ~~Company~~requires ~~issued~~a anpublic ~~aggregate~~entity ~~number~~to ofdisclose ~~48,342~~the ~~shares~~total amount of ~~common~~selling ~~stock~~expenses and 4the entity’s definition of selling expenses. ASU 2024-03 is effective for fiscal years beginning after December 15,~~000~~ ~~warrants~~2026, inand ~~full~~interim ~~settlement~~periods ofwithin ~~the~~fiscal ~~merger~~years ~~transactions~~beginning ~~costs~~after ofDecember $415, 2027.~~25 million~~ ~~which~~Early ~~was~~adoption ~~payable~~is topermitted. ~~three~~A ~~financial~~public ~~institutions.~~entity ~~Such~~should ~~liability~~apply ~~was~~ASU ~~accrued~~2024-03 either prospectively to financial statements issued for ~~and~~reporting ~~reported~~periods ~~under~~after ~~merger~~the ~~transaction~~effective ~~costs~~date ~~payable~~of inthis ~~shares~~ASU or retrospectively to all prior periods presented in the ~~consolidated~~financial ~~balance~~statements. ~~sheet~~The atCompany ~~December~~is ~~31,~~currently ~~2023~~evaluating the impact of ASU 2024-03 on its future consolidated financial statements and related disclosures.

NOTE 83 – ~~FORWARD~~DISCONTINUED ~~PURCHASE AGREEMENT~~OPERATIONS

OnIn ~~November~~September 282024, ~~2023,~~ the Company ~~Legacy Volato Vellar Opportunities Fund Master, Ltd. (“Seller”),~~ entered into an agreement ~~(the~~with ~~“Forward~~flyExclusive ~~Purchase~~to ~~Agreement”)~~transition ~~for~~our anaircraft ~~OTC~~ownership ~~Equity~~program ~~Prepaid~~fleet ~~Forward~~operations ~~Transaction~~to ~~(the~~flyExclusive. ~~“Forward~~During ~~Purchase~~2024 ~~Transaction”).~~and ~~Pursuant~~2025 we continued to ~~the~~take ~~terms~~delivery of ~~the~~new ~~Forward Purchase Agreement~~aircraft, ~~the~~while ~~Seller~~also ~~could~~generating ~~purchase,~~revenue ~~prior~~from toour ~~the~~proprietary ~~closing~~software, upincluding ~~to 2.0 million shares (~~the ~~“Maximum~~Vaunt ~~Number~~platform, ofVolato’s ~~Shares”)~~empty ofleg ~~the~~consumer ~~Company~~app. ~~from~~In ~~third~~March ~~parties~~2025, ~~through~~the aCompany ~~broker~~sold inGC ~~the~~Aviation, ~~open market~~Inc., ~~The~~which ~~Number~~holds ~~of Shares (as defined in~~ the ~~Forward~~FAA ~~Purchase~~Part ~~Agreement)~~135 ~~subject~~certificate, totherefore ~~the~~items ~~Forward~~related ~~Purchase Agreement could be reduction following a termination of the Forward Purchase Agreement with respect~~ to ~~such~~managed ~~shares~~aircraft asare ~~described~~included ~~under “Optional Early Termination”~~ in ~~the~~discontinued ~~respective Forward Purchase Agreement~~operations.

Under the Forward Purchase Agreement the Seller was paid directly an aggregate cash amount equal to the product of (i) the number of shares as set forth in the pricing date notice and (ii) the redemption price paid by the Company on the Closing date to holders of its common stock who exercised their redemption rights in connection with the Business Combination.

During the year ended December 31, 2023, the Company paid an aggregate amount of approximately $18.9 million. The Company collected $2.4 million in December 2023, and recognized a loss on the change in fair value of the forward purchase agreement in the aggregated amount of $13.4 million, which was reported in other expenses in the consolidated statement of operations for the year ended December 31, 2023.

In July 2024, Seller notified the Company of the termination of the Forward Purchase Agreement, following a delivery of a notice establishing the Valuation Date (as defined in the Forward Purchase Agreement); upon termination, Seller was not obligated to pay the Company a cash amount. The Company recorded the impact of the notice in the second quarter of 2024. In the nine months ended September 30, 2024, the Company recognized a loss on the change in fair value of $3.0 million reported in other expenses in the consolidated statement of operations.

~~Table~~Major classes of ~~Contents~~line items constituting net income (loss) from discontinued operations are as follows:

NOTE 9– FIXED ASSETS


	Twelve Months Ended December 31,
		2025		2024
Revenue - Aircraft usage		$	89	$	32,546
Revenue - Managed aircraft		—		7,224
Costs of Revenue - Aircraft usage		65		43,488
Cost of Revenue - Managed aircraft		—		6,610
Selling, general and administrative		406		19,035
Other income from discontinued operations		5,530		9,902
Income (loss) from discontinued operations before provision for taxes		5,148		$	(19,461)
Benefit for taxes from discontinued operations		829		—
Net income (loss) from discontinued operations, net		$	4,319	$	(19,461)

~~Fixed~~Carrying ~~assets~~amounts ~~consist~~and major classes of ~~the~~assets ~~following~~included atas ~~December 31,~~part ~~2024~~of ~~and~~discontinued ~~2023,~~operations inare ~~thousand:~~as follows:

	December 31,2024		December 31,2023
	December 31,2025		December 31,2024
Machine and equipment	$	191	$	191
Accounts receivable, net	$	13	$	1,027
Automobiles	72		102
Prepaid and other assets	254		1,254
Website development costs	290		290
Property and equipment, net	—		3
Computer and office equipment	5		11
Intangibles, net	—		1,200
Software development costs	579		437
Goodwill	—		635
	1,137		1,031
Total assets associated with discontinued operations	$	267	$	4,119
Less accumulated depreciation	(454)		(185)
	$	683	$	846

~~During~~Carrying ~~the~~amounts ~~years ended December 31, 2024~~ and ~~2023,~~major ~~the~~classes ~~Company~~of ~~recognized~~liabilities ~~$193~~included ~~thousand~~as ~~and~~part ~~$140 thousand~~ of ~~depreciation~~discontinued ~~and~~operations ~~amortization,~~are ~~respectively.~~as follows:

NOTE 10 – DEPOSITS


	December 31, 2025		December 31, 2024
Accounts payable and accrued liabilities	$	1,307	$	6,344

Credit facility and other loans	—		918
Customer deposits and deferred revenue	284		5,156
Deferred income tax liability	—		305
Total liabilities associated with discontinued operations	$	1,591	$	12,723

Deposits consist of the following at December 31, 2024 and 2023, in thousand:

	December 31, 2024		December 31, 2023
Deposits on aircraft	$	36,000	$	40,300
Other deposits	300		75
Total deposits	$	36,300	$	40,375
Less current portion	(36,000)		(25,125)
Total deposits, non-current	$	300	$	15,250

Below is a breakdown of the deposits on aircraft as of December 31, 2024 and 2023, in thousand:

	December 31,2024		December 31,2023
Gulfstream aircraft deposits	$	36,000	$	39,000
Honda aircraft deposits	—		1,300
Total deposits on aircraft	$	36,000	$	40,300
Less current portion	(36,000)		(25,050)
Total deposits on aircraft non-current	$	—	$	15,250

Gulfstream Aerospace, LP

In 2022, the Company executed a series of purchase agreements with Gulfstream Aerospace, LP for the acquisition of four (4) Gulfstream G 280 aircraft for total consideration of $79 million with expected delivery throughout fiscal year 2025. The first Gulfstream G280 was delivered in the third quarter of 2024. The second Gulfstream G280 was delivered in January 2025. The remaining two Gulfstream G280’s are expected to be delivered throughout fiscal year 2025.

The Company has funded an aggregate amount of $48.0 million and $39.0 million in deposits towards the acquisition price of the four Gulfstream G 280 aircraft in accordance with the scheduled payment terms of the agreements as of December 31, 2024, and December 31, 2023, respectively. Upon delivery of the first Gulfstream G280 in the third quarter of 2024, $12 million of the deposits were applied toward the purchase price of the airplane.

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~~During~~NOTE ~~the~~4–INTANGIBLES year ended December 31, 2024, the Company funded $9.0 million, which was funded through the SAC Leasing G 280 line of credit. During the year ended December 31, 2023, the Company funded $27.0 million pursuant to the terms of the executed purchase agreements, of which $24.0 million was funded through SAC leasing G 280 Line of credit and $3.0 million was paid directly by the Company.

~~HondaJet~~Finite-Lived Intangible Assets

InAs ~~2022~~of December 31, 2024, the Company ~~entered~~impaired ~~into~~the ~~aircraft~~remaining ~~purchase~~value ~~agreements~~of ~~with~~the ~~Honda~~customer ~~Aircraft~~relationships ~~Company~~asset ~~LLC,~~and ~~under~~recorded ~~which~~a itloss ~~paid~~on the impairment of $~~1.3~~130 ~~million~~thousand ofwhich ~~deposits~~was recorded in selling, general and administrative expenses. Intangible asset amortization expense was zero and $61 thousand for ~~aircraft~~the ~~not~~twelve ~~yet~~months ~~delivered~~ended atDecember 31, 2025 and 2024, respectively. As of December 31, ~~2023~~2025 and December 31, 2024 the balance of customer relationships was zero.

~~During~~Indefinite ~~the~~- ~~year~~Lived ~~ended~~Intangible ~~December~~Assets ~~31, 2023, the Company took delivery of three aircraft for a purchase price of $17.9 million.~~

InThe ~~May~~following ~~2023,~~table ~~the~~summarizes ~~Company and Honda Aircraft Company, LLC entered into a HondaJet Fleet Purchase Agreement for~~ the ~~acquisition~~balances of ~~twenty-three~~the ~~(23) HondaJet HA~~indefinite-~~420~~lived ~~Aircraft~~intangible ~~for~~assets ~~a total aggregate purchase price of $161.1 million for delivery between the fourth fiscal quarter of 2024~~ and ~~the~~is ~~fourth~~included ~~fiscal~~in ~~quarter~~discontinued ofoperations ~~2025.~~as ~~The Company took delivery~~ of ~~two aircraft related to this agreement. On September 10~~December 31, ~~2024~~2025 the Company received notice from Honda Aircraft that the Honda FPA was terminated. Pursuant to the terms of the agreement, Honda Aircraft will retain the deposits that have previously been paid by the Company and ~~the Company has to enter into individual purchase agreements for each aircraft for which a deposit had previously been paid. During the year ended~~ December 31, 2024, ~~the Company wrote-off the remaining deposit balance of $1.0 million and is recorded~~ in ~~selling,~~thousands: ~~general, and administrative expenses.~~

NOTE 11 – EQUITY-METHOD INVESTMENT


	December 31, 2025		December 31, 2024
Intangible asset - Part 135 certificate	$	—	$	1,200

The FAA Part 135 certificate amount of $1.2 million relates to the certificate held by GC Aviation, Inc. In March 2025, the Company ~~has~~sold GC Aviation, Inc., and the ~~following~~FAA ~~equity~~Part ~~method~~135 ~~investments~~Certificate atfor $2.0 million. The Company did not recognize any impairment of the Part 135 certificate during the twelve months ended December 31, ~~2023~~2025 and 2024, inrespectively. ~~thousand:~~

	December 31,2023
Investment in Volato 158 LLC	$	154
	$	154

NOTE 5 - MERGER TRANSACTION COSTS PAYABLE

~~The~~In ~~Company~~connection ~~had~~with ~~one~~the ~~equity-method~~business ~~investment~~combination asin of December 312023, ~~2023:~~the ~~Volato~~Company ~~158~~entered ~~LLC~~into three agreements (together, the “Agreements”) with financial institutions, in which the Company agreed to pay a ~~membership~~success ~~interest~~fee in the aggregate amount of 3$4.~~125%~~25 million to the financial institutions in case the Company consummated certain acquisition(s). The success fees were paid in shares of the Company’s common stock and warrants during the 2024 fiscal year.

~~Volato~~ASC ~~158~~480 ~~LLC~~Distinguishing Liabilities From Equity requires liability classification for all instruments that embodies an unconditional obligation that the Company must or may settle by issuing a variable number of its equity shares, if, at inception, the monetary value of the obligation is based solely on a fixed monetary amount know at inception. As a result, the Company classified such liability in current liabilities as of December 31, 2023. In January 2024, the Company issued an aggregate number of 48,342 shares of common stock and 4,000 warrants in accordance with the Agreements in full settlement of the Company’s obligations to the three financial institutions. As of December 31, 2025 and December 31, 2024 the merger transaction costs payable were zero.

InNOTE ~~August 2021,~~6 ~~the~~– ~~Company~~FORWARD ~~executed~~PURCHASE an aircraft purchase agreement with Volato 158 LLC (“158 LLC”) and contributed an aircraft with a carrying amount of $4.2 million to 158 LLC for a 100% membership interest in 158 LLC. The investment in 158 LLC was initially consolidated as the Company had a controlling financial interest in 158 LLC until 2022 when the Company’s interest was reduced to 3.125%.AGREEMENT

AsOn ofNovember ~~December 31~~28, 2023, the Company, ~~had~~Volato, aInc. ~~remaining~~and 3Vellar Opportunities Fund Master, Ltd.~~125%~~ ~~interest~~(“Seller”), inentered ~~158~~into ~~LLC~~the Forward Purchase Agreement for an OTC Equity Prepaid Forward Transaction (the “Forward Purchase Transaction”). InThe ~~October~~Seller ~~2024~~could purchase, prior to the ~~Company~~closing ~~sold~~of ~~the~~a ~~interest~~business combination we completed in ~~158~~December ~~LLC~~2023, up to ~~flyExclusive~~2.0 million ~~Based~~shares on(the ~~its~~“Maximum ~~equity~~Number ~~investment,~~of Shares”) of the Company ~~recorded~~from third parties through a ~~loss~~broker ~~from~~in ~~its~~the ~~equity-method~~open ~~investment~~market. The Number of ~~$162 thousand~~Shares ~~and~~subject ~~$3 thousand~~to ~~for~~the Forward Purchase Agreement were subject to reduction following a termination of the ~~year~~Forward ~~ended~~Purchase ~~December~~Agreement ~~31,~~with ~~2024~~respect ~~and~~to ~~2023,~~such ~~respectively.~~shares as described under “Optional Early Termination” in the Forward Purchase Agreement.

~~NOTE~~Under 12the –Forward ~~REVOLVING~~Purchase ~~LOAN~~Agreement ~~AND~~the ~~PROMISSORY~~Seller ~~NOTE-~~was ~~RELATED~~directly ~~PARTY~~paid an aggregate cash amount equal to the product of (i) the number of shares as set forth in the pricing date notice and (ii) the redemption price paid by the Company on the closing of its 2023 business combination date to holders of its common stock who exercised their redemption rights in connection with the closing.

~~Revolving~~During ~~loan~~the ~~and~~year ~~promissory~~ended ~~note~~December ~~with~~31, a2023, ~~related~~the ~~party~~Company ~~consisted~~paid an aggregate amount of ~~the~~approximately ~~following~~$18.9 million. atThe ~~December~~Company collected $2.4 ~~31,~~million ~~2024~~in December 2023 and ~~December~~recognized a loss on the change in fair value of the Forward Purchase Agreement in the aggregated amount of $13.4 31million, ~~2023,~~which was reported in ~~thousand:~~other expenses in the consolidated statement of operations for the year ended December 31, 2023.

	December 31,2024		December 31,2023
Dennis Liotta, March 2023 – 10% interest – promissory note due March 2024	—		1,000
Total notes from related party - current	$	—	$	1,000

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~~Dennis~~In ~~Liotta~~July -2024, the Seller notified the Company of the termination of the Forward Purchase Agreement, following a delivery of a notice establishing the Valuation Date (as defined in the Forward Purchase Agreement); upon termination, Seller was not obligated to pay the Company a cash amount. The Company recorded the impact of the notice in the second quarter of 2024. In the twelve months ended December 31, ~~2021~~2025 ~~Note~~and 2024, the Company recognized a loss on the change in fair value of zero and $3.0 million, respectively, reported in other expenses in the consolidated statement of operations.

OnNOTE ~~December 9,~~7– ~~2021,~~PROPERTY ~~the~~AND ~~Company entered into a revolving loan agreement with Dennis Liotta~~EQUIPMENT, anNET affiliate of the Company, for a total amount of $8.0 million that matured on January 1, 2023 (“December 2022 note”). The Company is required to make monthly payments of interest at a fixed rate of 4.0% per annum. The Company was required to make principal repayments at fixed scheduled dates. In the event of default, the entire unpaid principal balance together with all accrued but unpaid interest would become due and payable regardless of the maturity date. If the default occurs and remains uncured beyond the applicable grace period, then the entire unpaid principal balance shall bear interest at a default interest of 500 basis points (5%) over the regular interest or nine percent (9%). Events of default include the failure to make principal or interest payments when due, any judgement in excess of $500, indebtedness cross default, or bankruptcy proceedings.

InProperty ~~conjunction~~and ~~with the execution of the revolving note~~equipment, ~~both~~net ~~parties~~consist ~~executed a security agreement, under which the Company granted a continuing security interest in all~~ of the ~~assets~~following ofat ~~the Company. The Company did not make its interest payments~~December 31, ~~thus~~2025 ~~triggering a default~~ and ~~increasing~~December ~~the~~31, ~~interest~~2024, ~~rate~~in tothousands: ~~9% plus an additional 5% on the missed payments.~~

The Company incurred approximately $370 thousand of interest and penalties during the three months ended March 31, 2023.


	December 31, 2025		December 31, 2024
Machine and equipment	$	186	$	188
Automobiles	—		72
Website development costs	290		290
Computer and office equipment	12		5
Software development costs	553		579
	1,041		1,134
Less accumulated depreciation	(718)		(454)
Property and equipment, net	$	323	$	680

InDuring the ~~first~~twelve ~~quarter~~months ofended ~~2023~~December 31, ~~the~~2025 ~~Company~~and ~~converted~~2024, the ~~unpaid~~Company ~~principal~~recognized ~~balance~~$297 ofthousand ~~this revolving note~~ and ~~accrued~~$193 ~~interest~~thousand ~~into a convertible note for total principal balance~~ of ~~$6.0~~depreciation ~~million bearing interest at 4%~~ and ~~maturing on March 31~~amortization, ~~2024~~respectively. ~~The notes were converted as part of the business combination.~~

~~Dennis~~During ~~Liotta~~the -twelve ~~March~~months ended December ~~2023~~31, ~~note~~2025, the Company reduced the value of software development cost by $238 thousand, related to a non-monetary exchange with a third party and their use of our mission control software. This software development cost was originally developed for internal use and has subsequently been licensed to a third party in a non-monetary transaction.

OnNOTE ~~March 15,~~8 ~~2023,~~– the Company entered into a promissory note agreement with Dennis Liotta, an affiliate of the Company, for a total amount of $1.0 million, with an effective date of February 27, 2023, which matured on March 31, 2024 (“March 2023 note”). The entire outstanding principal balance together with accrued but unpaid interest are due at the maturity date. The March 2023 note included a ten percent (10%) interest rate per annum. On April 1, 2024, the March 2023 note was paid in full. Promissory note from related party was zero and $1.0 million as of December 31, 2024, and December 31, 2023, respectively. DEPOSITS

~~The~~Deposits ~~Company~~consist ~~incurred $23 thousand and $25 thousand~~ of ~~interest during~~ the ~~year~~following ~~ended~~at December 31, ~~2024~~2025 and ~~2023~~December 31, ~~respectively.~~2024, in thousands:

NOTE 13 – UNSECURED CONVERTIBLE NOTES


	December 31, 2025		December 31, 2024
Deposits on aircraft	$	—	$	36,000
Other deposits	70		300
Total deposits	70		36,300
Less current portion	(70)		(36,000)
Total deposits, non-current	$	—	$	300

~~Unsecured~~ ~~convertible~~Below ~~notes~~is ~~consisted~~a breakdown of the ~~following~~deposits aton aircraft as of December 31, ~~2024~~2025 and December 31, ~~2023~~2024, in ~~thousand~~thousands:

	December 31,2024		December 31,2023
	December 31,2025		December 31,2024
2024 unsecured convertible notes, 4% coupon, due December 2025	4,500		—
Gulfstream aircraft deposits	$	—	$	36,000
Less unamortized debt discounts	(450)		—
Total deposits on aircraft	—		36,000
Total unsecured convertible notes, net of discount	$	4,050	$	—
Less current portion	—		(36,000)
Less current portion	(4,050)		—
Total deposits on aircraft non-current	$	—	$	—
Total unsecured convertible notes, net of discount non-current	$	—	$	—

2024 unsecured convertible notes due December 2025 - 2024 Convertible note

During the year ended December 31, 2024, the Company entered into a Securities Purchase Agreement (“Securities Purchase Agreement”). Under the Securities Purchase Agreement, the Company may issue a series of convertible notes the “2024 Convertible note” for an aggregate principal not to exceed $36.0 million. During the year ended December 31, 2024, the Company issued convertible notes in an aggregate principal amount of $4.5 million, of which $4.1 million was funded as of December 31, 2024, representing an original issue discount of ten percent. Interest is payable quarterly at the Company’s option shall either be (i) paid in cash; (ii) paid-in-kind in shares of common stock; or (iii) compound and

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~~become~~Gulfstream ~~additional principal outstanding. The Company recorded $14 thousand of accrued interest expense in the year ended December 31~~Aerospace, ~~2024.~~LP

In ~~conjunction~~2022, ~~with~~ the ~~issuance~~Company executed a series of ~~the~~purchase ~~notes~~agreements with Gulfstream Aerospace, LP for the ~~Company~~acquisition ~~incurred~~of four (4) Gulfstream G280 aircraft for total consideration of $~~450~~79 ~~thousand~~million ofwith ~~closing~~expected ~~financing~~delivery ~~costs,~~throughout ~~which~~fiscal ~~are~~year ~~presented~~2025. asThe anfirst ~~offset~~Gulfstream toG280 was delivered in the ~~convertible~~third ~~notes~~quarter of 2024. The second Gulfstream G280 was delivered in ~~the~~January ~~consolidated~~2025. ~~balance~~The ~~sheets~~third asGulfstream ofG280 ~~December~~was ~~31,~~delivered ~~2024~~in April 2025. The remaining Gulfstream G280 was delivered in the fourth quarter of 2025.

The ~~2024~~Company ~~convertible~~fully ~~note~~funded isan ~~accounted~~aggregate ~~for~~amount asof a$48.0 million ~~single~~in ~~liability~~deposits ~~measured~~towards atthe ~~fair~~acquisition ~~value~~price of the four Gulfstream G280 aircraft in accordance with ~~ASC~~the ~~825-10~~scheduled payment terms of the agreements as of December 31, 2025, and December 31, 2024, respectively. Upon delivery of the first Gulfstream G280 in the third quarter of 2024, $12.0 million of the deposits were applied toward the purchase price of the airplane. Upon delivery of the second Gulfstream G280, in January 2025, $12.0 million of the deposits were applied toward the purchase price of the airplane. Additionally, in March 2025, Gulfstream notified the Company that the fourth Gulfstream G280 would be delayed from the original timeline with delivery now expected in the fourth quarter of 2025. In connection with the delivery delay, Gulfstream agreed to return the deposit on the fourth Gulfstream G280 reducing the deposits by $9.0 million. In April 2025, the third Gulfstream G280 was delivered and $12.0 million of the deposits were applied toward the purchase price of the airplane. In November 2025, the fourth G280 was delivered and the remaining deposit was applied toward the purchase price of the airplane.

~~NOTE~~During 14the –twelve ~~CREDIT~~months ~~FACILITY~~ended ~~AND~~December ~~OTHER~~31, ~~LOANS~~2024, the Company funded $9.0 million pursuant to the terms of the executed purchase agreements, of which $9.0 million was funded through the SAC Leasing G280 line of credit further described in Note 11.

~~Credit~~NOTE ~~facility~~9 ~~and~~– ~~other~~PROMISSORY ~~loans~~NOTE- ~~consisted~~RELATED ~~of the following at December 31, 2024 and December 31, 2023, in thousand:~~ PARTY

	December 31,2024		December 31,2023
SAC Leasing G280 LLC credit facility, 12.5% interest, net of deposits	$	28,000	$	27,750
Less discounts	(247)		(376)
Total credit facility, net of discount and deposits	$	27,753	27,374

Dennis Liotta - March 2023 note

~~SAC~~On ~~Leasing~~March 15, ~~G280~~2023, ~~LLC~~the ~~Line~~Company entered into a promissory note agreement with Dennis Liotta, an affiliate of ~~credit~~the Company, for a total amount of $1.0 million, with an effective date of February 27, 2023 and which matured on March 31, 2024 (“March 2023 note”). The entire outstanding principal balance together with accrued but unpaid interest were due at the maturity date. The March 2023 note included a ten percent (10%) interest rate per annum. On April 1, 2024, the March 2023 note was paid in full. Promissory note from related party was zero as of December 31, 2025 and December 31, 2024, respectively.

~~During~~ ~~the~~The ~~year ended December 31, 2022, the~~ Company ~~executed~~incurred azero ~~series~~and ~~of purchase agreements with Gulfstream Aerospace, LP for the acquisition of four (4) Gulfstream G-280 aircraft for total consideration of~~ $~~79.0~~23 thousand ~~million with expected deliveries in 2024 and 2025,~~ of ~~which~~interest anexpense ~~aggregate~~during ~~amount~~the oftwelve ~~$48.0~~months ~~million~~ended ~~was funded and paid as of~~ December 31, 2025 and 2024, ~~partially through a credit facility from SAC leasing G 280~~respectively.

~~During~~NOTE ~~the~~10 ~~year~~– ~~ended~~UNSECURED ~~December 31,~~CONVERTIBLE 2024, the Company funded an additional $9.0 million through the SAC Leasing G280 credit facility. During the year ended December 31, 2023, the Company funded an aggregate amount of $27.0 million, of which $24.0 million was funded through a credit facility from SAC leasing and $3.0 million was paid in cash.NOTES

~~During~~Unsecured ~~the~~convertible ~~year~~notes ~~ended~~consisted ~~December 31, 2024, the Company increased its SAC leasing G280 line~~ of ~~credit by $9.0 million offset by a repayment in~~ the ~~amount~~following ofat ~~$9.0 million~~December 31, ~~which~~2025 ~~brings~~and ~~the carrying balance at $28.0 million as of~~ December 31, 2024., in thousands:

The Company incurred $68 thousand and $548 thousand of incremental closing costs, which are reported as debt discount against the liability in the consolidated balance sheets as of December 31, 2024, and December 31, 2023, respectively.


	December 31, 2025		December 31, 2024
2024 unsecured convertible note, 4% coupon, due December 2025	$	—	$	4,050
Unsecured convertible note, 4% coupon, due June 2026*	—		—
Unsecured convertible note, 4% coupon, due July 2026**	3,148		—
Unsecured convertible note, 4% coupon, due October 2026***	1,082		—
Less current portion	(4,230)		(4,050)
Total unsecured convertible note, long term	$	—	$	—

~~During~~*Represents the ~~year~~Second ~~ended~~Tranche ~~December 31,~~Note ~~2024~~(as ~~and~~described ~~2023,~~in ~~the~~this ~~Company~~Note ~~amortized to interest expense $197 thousand and $146 thousand of debt discount, respectively.~~ 10)

~~The~~** ~~maturity~~Represents ~~date is~~ the ~~earlier~~Third ofTranche ~~the~~Note ~~delivery date of the aircraft or September 14, 2025, which is thirty-five~~ (~~35) months from the date of funding. The purchase agreement contracts were assigned to SAC G280 LLC~~ as ~~collateral~~described onin this ~~credit~~Note ~~facility.~~ 10)

~~During~~***Represents the ~~year~~Fourth ~~ended~~Tranche ~~December 31,~~Note ~~2024~~(as ~~and~~described ~~2023,~~in ~~the Company incurred approximately $4.2 million and $2.2 million of interest under~~ this ~~facility,~~Note ~~respectively.~~ 10)

The Company entered into the pre-delivery payment agreement on October 5, 2022, with SAC Leasing G280, LLC to obtain loans in the aggregate amount of $40.5 million for the purchase of four (4) Gulfstream G280 aircraft to be delivered in 2024 and 2025. The Board of Directors consented to the participation of Coastal States Bank, as a syndicate lender in the financing of additional aircraft by SAC Leasing G280 LLC. On August 25, 2023, the Company and SAC Leasing V280, LLC entered into the first amendment to pre-delivery payment agreement. As of December 31, 2024, the Company had an aggregate amount of $28.5 million in promissory notes, of which 60% was solely to Coastal States Bank pursuant to the first amendment.

Term Loan

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~~received~~Unsecured byconvertible ~~the~~note ~~Company~~due ~~and~~December ~~used to fund operations. The Loan bears interest at an annual percentage rate of 165% and matures on January 28,~~ 2025, ~~with~~- ~~principal~~2024 ~~and~~Convertible ~~interest payments made weekly.~~Note

~~The~~During ~~Loan~~the ~~provides~~year ~~for~~ended ~~events~~December 31, 2024, the Company entered into the Securities Purchase Agreement as described in Note 2 above pursuant to which the Company may issue a series of ~~default~~convertible ~~customary~~notes for ~~term~~an ~~loans~~aggregate principal not to exceed $36.0 million. AsDuring ofthe year ended December 31, 2024, the Company ~~was~~issued a single convertible note in ~~compliance~~a ~~with~~principal ~~all~~amount ~~covenants~~of $4.5 ~~The~~million, ~~Loan~~(as isdefined ~~collateralized~~above, bythe ~~all~~“2024 ~~assets~~Convertible Note”) of which $4.1 million was funded as of December 31, 2024, representing an original issue discount of ten percent. Interest is payable quarterly at the Company’s ~~with~~option ~~the~~and ~~exception~~shall either be (i) paid in cash; (ii) paid-in-kind in shares of common stock; or (iii) compound and become additional principal outstanding. The Company recorded $14 thousand of accrued interest expense in the ~~purchase~~year ~~agreements~~ended December 31, 2024. During the three months ended March 31, 2025 the $14 thousand of ~~G280~~paid-in-kind ~~aircraft~~interest orwas ~~any~~rolled ~~collateral~~into ~~pledged~~the toprincipal ~~SAC~~balance ~~Leasing~~of ~~G280~~the 2024 Convertible note.

The ~~Company~~2024 ~~incurred~~Convertible ~~financing~~Note ~~fees~~is ofaccounted ~~$200 thousand,~~for ~~which were recorded~~ as a ~~direct~~single ~~discount~~liability tomeasured ~~the~~at ~~debt~~fair ~~and~~value ~~are~~in ~~being~~accordance ~~amortized~~with ~~over~~ASC ~~the term of the Loan~~825-10. ~~The~~At ~~Company~~March ~~amortized $164 thousand of financing fees in the year ended December~~ 31, ~~2024.~~2025, ~~The~~the Company ~~recorded~~valued ~~$1.7~~the ~~million~~2024 ofConvertible ~~interest~~Note ~~expense~~using ~~related to~~ the ~~Loan~~Monte-Carlo invaluation ~~the~~model. ~~year~~See ~~ended~~Note ~~December 31, 2024~~2.

In ~~November~~June ~~2024~~2025, the ~~Company~~outstanding ~~entered~~principal ~~into~~and aninterest ~~agreement~~of ~~with~~the a2024 ~~third~~Convertible ~~party~~Note towas ~~settle~~converted ~~outstanding~~into ~~payables~~2,538,939 ~~owed~~shares byof the Company’s tocommon ~~designated~~stock, ~~vendors~~settling in ~~exchange~~full ~~for~~the aCompany’s ~~settlement~~repayment ~~amount~~obligations inrelated ~~shares~~to ofthat ~~common stock~~note. AsImmediately ofprior ~~December~~to ~~31, 2024 in accordance with~~ the ~~agreement~~conversions, the Company ~~issued~~remeasured ~~639,720~~the ~~shares~~liability ~~for~~to ~~the~~its ~~payment~~fair ofvalue ~~$1.475 million~~as of ~~principal~~the ~~and~~conversion ~~interest~~date. ~~due~~The toCompany ~~the~~recognized ~~Lender~~a ~~under~~loss ~~the~~of ~~Loan and~~ $~~725~~ 626 thousand ~~of payables~~ related to athe ~~separate~~change ~~vendor.~~in ~~The~~the ~~Company~~fair ~~recorded~~value ~~a $2.8 million loss on extinguishment~~ of ~~debt~~the ~~upon~~2024 ~~the~~Convertible ~~settlement~~Note ofrecorded ~~each~~in ~~issuance~~Loss ~~equal~~from tochange ~~the~~in fair value of ~~the~~financial ~~shares~~instruments ~~less~~on the ~~value~~consolidated statements of ~~the~~operations ~~shares~~for ~~calculated as of~~ the ~~closing~~twelve ~~stock~~months ~~price~~ended onDecember ~~the~~31, ~~date~~2025, ~~of settlement~~respectively.

~~NOTE~~Unsecured 15convertible –note ~~RELATED~~due ~~PARTIES~~June 2026 - Second Tranche Note

In June 2025, the Company issued a second convertible note (the “Second Tranche Note”) in accordance with the terms of the Securities Purchase Agreement in the principal amount of $1.5 million, for a purchase price of $1.4 million, representing an original issue discount of ten percent, which matures on June 13, 2026. The Second Tranche Note was recorded at a fair value of $1.4 million. The Company recorded a loss of $124 thousand on the change in fair value of the Second Tranche Note in the three months ended June 30, 2025.

In July 2025, $1.1 million of the outstanding principal and accrued interest of the Second Tranche Note was converted into 988,240 shares of the Company’s common stock. Immediately prior to the conversions, the Company remeasured the liability to its fair value as of the conversion date. The Company recorded a loss of $6 thousand related to the change in fair value as of the conversion date. In August 2025, the remaining $0.4 million of the outstanding principal and accrued interest of the Second Tranche Note was converted into 344,242 shares of the Company’s common stock. Immediately prior to the conversion, the Company remeasured the liability to its fair value at the conversion date. The Company recorded a loss of $12 thousand related to the change in fair value as of the conversion date. The Company recorded a loss of $142 thousand for the twelve months ended December 31, 2025.

Unsecured convertible note due July 2026 - Third Tranche Note

In July 2025, the Company issued a third convertible note, (the “Third Tranche Note”), in accordance with the terms of the Securities Purchase Agreement, in the principal amount of $3.0 million, for a purchase price of $2.7 million, representing an original issue discount of ten percent, which matures on July 21, 2026. The Third Tranche Note was recorded at an initial fair value of $2.9 million. The Company recorded a loss of $449 thousand on the change in fair value of the Third Tranche Note in the twelve months ended December 31, 2025.

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Unsecured convertible note due October 2026 - Fourth Tranche Note

In October 2025, the Company issued a fourth convertible note, (the “Fourth Tranche Note”) in accordance with the Securities Purchase Agreement, in the principal amount of $2.2 million, for a purchase price of $2.0 million, representing an original issue discount of ten percent, which matures on October 16, 2026. The Fourth Tranche Note was recorded at an initial fair value of $2.2 million. The Company recorded a loss of $200 thousand on the change in fair value of the Fourth Tranche Note at issuance. In December 2025, $1.2 million of the outstanding principal and accrued interest of the Fourth Tranche Note was converted into 1,604,091 shares of the Company’s common stock. Immediately prior to the conversions, the Company remeasured the liability to its fair value as of the conversion date and recorded a gain of $10 thousand related to the change in fair value as of the conversion date. The Company recorded a loss of $272 thousand on the change in fair value for the twelve months ended December 31, 2025.

NOTE 11 – CREDIT FACILITY AND OTHER LOANS

Credit facility and other loans consisted of the following at December 31, 2025 and December 31, 2024, in thousands:


	December 31, 2025		December 31, 2024
SAC Leasing G280 LLC credit facility, 12.5% interest, net of deposits	$	—	$	28,000
Term Loan	—		1,102
Less discounts	—		(247)
Total credit facility, net of discount and deposits	$	—	$	28,855

SAC Leasing G280 LLC Line of credit

The Company entered into the pre-delivery payment agreement on October 5, 2022, with SAC Leasing G280, LLC to obtain loans in the aggregate amount of $40.5 million for the purchase of four (4) Gulfstream G280 aircraft to be delivered in 2024 and 2025. On August 25, 2023, the Company and SAC Leasing G280, LLC entered into the first amendment to pre-delivery payment agreement. The maturity date of amounts drawn under the SAC Leasing G280 credit facility is the earlier of the delivery date of the aircraft or September 14, 2025, which is thirty-five (35) months from the date of funding. The purchase agreement contracts were assigned to SAC G280 LLC as collateral on this credit facility.

During the year ended December 31, 2022, the Company executed a series of purchase agreements with Gulfstream Aerospace, LP for the acquisition of four (4) Gulfstream G280 aircraft for total consideration of $79.0 million with expected deliveries in 2024 and 2025, of which an aggregate amount of $48.0 million was funded and paid as of December 31, 2024, partially through a credit facility from SAC Leasing G280.

During the year ended December 31, 2024, the Company funded an additional $9.0 million through the SAC Leasing G280 credit facility.

During the twelve months ended December 31, 2025, the Company decreased its SAC leasing G280 line of credit by $28.0 million which was a combination of a repayment in the amount of $10.5 million, with the sale of the second G280 in February 2025 and the deposit release and corresponding pay down of the G280 line of credit of $9.0 million with the delay of the fourth G280 until Q4 2025. In April 2025, the Company repaid the remaining $8.5 million, terminating the credit facility with SAC Leasing G280. The line of credit balance was zero as of December 31, 2025.

The Company incurred zero and $68 thousand of incremental closing costs, which are reported as debt discount against the liability in the consolidated balance sheets as of December 31, 2025, and December 31, 2024, respectively.

During the twelve months ended December 31, 2025 and 2024, the Company amortized to interest expense $247 thousand and $197 thousand of debt discount, respectively.

During the twelve months ended December 31, 2025 and 2024, the Company incurred $641 thousand and $4.2 million of interest, respectively.

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OgaraJets

In connection with the purchase and sale of the second G280, the Company entered into a financing agreement with OgaraJets. The Company borrowed $19.6 million from OgaraJets to facilitate the delivery and subsequent sale of the second G280. Upon the sale of the second G280, in February 2025, $19.7 million was repaid to OgaraJets. All transactions occurred during the first quarter of 2025.

In connection with the purchase and sale of the third G280, the Company entered into a financing agreement with OgaraJets. The Company borrowed $17.9 million from OgaraJets to facilitate the delivery and subsequent sale of the third G280. Upon the sale of the third G280 in June 2025, $17.9 million was repaid to OgaraJets. All transactions occurred during the second quarter of 2025.

In connection with the purchase and sale of the fourth G280, the Company entered into a financing agreement with Ogara Jets. The Company borrowed $18.4 million from OgaraJets to facilitate the delivery and subsequent sale of the fourth G280. Upon the sale of the fourth G280, in December 2025, $18.4 million was repaid to Ogara Jets. All transaction occurred during the fourth quarter of 2025.

Term Loan

In July 2024, the Company entered into a business loan and security agreement (the “Loan”) with TVT Capital Sources LLC (the “Lender”), for a term loan in the amount of $4.0 million. Net proceeds of $3.9 million were received by the Company and used to fund operations. The Loan bore interest at an annual percentage rate of 165% and matured on January 28, 2025, with principal and interest payments made weekly.

The Company incurred financing fees of $200 thousand, which were recorded as a direct discount to the debt and were being amortized over the term of the Loan. The Company amortized $36 thousand and $164 thousand of financing fees in the twelve months ended December 31, 2025 and 2024, respectively. The Company recorded $107 thousand and $1.7 million of interest expense related to the Loan in the twelve months ended December 31, 2025 and 2024, respectively.

In November 2024, the Company entered into an agreement with a third party to settle outstanding payables owed by the Company to designated vendors in exchange for a settlement amount in shares of common stock. As of December 31, 2024 in accordance with the agreement, the Company issued 639,720 shares of common stock for the payment of $1.475 million of principal and interest due to the Lender under the Loan and $725 thousand of payables related to a separate vendor. The Company recorded a $2.8 million loss on extinguishment of debt upon the settlement of each issuance equal to the payables less the fair value of the shares calculated as of the closing stock price on the date of settlement.

In February 2025, the Company paid the remaining principal balance due on the Loan of $1.1 million and outstanding interest of $107 thousand.

NOTE 12 – RELATED PARTIES

Liotta Family Office, LLC

Liotta Family Office, LLC (“LFO”) is owned 20% by the Company’s Chief Executive ~~officer~~Officer (“CEO”), 60% owned by the father of the Company’s Chief Executive Officer, and 20% ~~owned~~ by the brother of the ~~Company’s Chief Executive Officer~~CEO. LFO currently owns, 74,372 Shares of ~~Common~~the ~~Stock~~Company’s issued and outstanding common stock which represents 4less than 1% of the Company’s issued and outstanding ~~Common~~common ~~Stock~~stock as of December 31, ~~2024~~2025.

During the year ended December 31, 2023, ~~Liotta Family Office, LLC (“~~LFO”) entered into an unsecured promissory note for a total amount of $1.0 million (see Note 129). The Company incurred approximately $23 thousand of interest during the ~~year~~twelve months ended December 31, 2024. In April 2024, the promissory note and interest was paid in full.

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Plane Co’s

The Company historically facilitated the formation of limited liability companies (“Plane Co’s”), which ~~are~~were then funded by third party members prior to the sale and delivery of an aircraft purchased from Honda Aircraft that entered into the Company’s fractional program.

In October 2024, as part of the agreement with flyExclusive, Volato sold all of its interest in the Plane Co’s to flyExclusive.

The aggregate amount of revenue included in loss from discontinued operations generated from Plane Co’s totaled ~~$3.1 million~~zero and $43.51 million for the ~~year~~twelve months ended December 31, ~~2024~~2025 and ~~2023~~2024, respectively.

Expenses charged to the Company by Plane Co’s and included in loss from discontinued operations, totaled ~~$2.8 million~~zero and $32.98 million for the ~~year~~twelve months ended December 31, ~~2024~~2025 and ~~2023~~2024, respectively.

Balance due to Plane Co’s amounted to ~~$4 thousand~~zero and $~~202~~4 thousand as of December 31, ~~2024~~2025 and ~~2023~~December 31, 2024, respectively.

NOTE 1613 – INCOME TAXES

The Company is subject to U.S. federal, state, and local income taxes. The Components of income tax expense for the year ended December 31, 2025 are as follows:


	Year Ended December 31,
	2025
Current
Federal	$	737
State	300
Total income taxes	$	1,037

Management has determined that the Company does not have any uncertain tax positions and associated unrecognized benefits that would impact the consolidated financial statements or related disclosures.

Deferred income tax assets and liabilities are computed annually for differences between financial statement 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. The Company has historically operated at a loss without enough historical evidence of positive income from operations. As a result, the deferred tax asset is offset by a corresponding valuation allowance.

70The net deferred tax assets and liabilities consist of the following amounts at December 31, 2025 and 2024, in thousands:

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established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company operated at a loss and the deferred tax asset is offset by a corresponding valuation allowance.


	2025		2024
Deferred Tax Assets


Capital loss carryover	$	140	$	—
Net operating loss carryforwards	17,774		18,398
Intangible	462		530
Interest expense limitations	2,702		2,484
Other	60		47
Total deferred tax assets	21,138		21,459
Valuation Allowance	(20,699)		(21,738)
Total net deferred tax assets	439		(279)

Deferred Tax Liabilities
Property and equipment depreciation	(9)		(25)
flyExclusive investment	(16)		—
Installment sale deferred tax liability	(414)		—
Total deferred tax liabilities	(439)		(25)
Net deferred tax assets (liabilities)	$	—	$	(305)

The ~~net~~Company ~~deferred~~has ~~tax~~federal ~~assets~~operating ~~and~~losses ~~liabilities~~carryforward ~~consist~~ of ~~the~~approximately ~~following~~$70 ~~amounts~~million atand $73 million available as of December 31, 2025 and 2024, respectively, to reduce future taxable income at the federal level, and ~~2023~~it has net operating losses of approximately $67 million and $68 million at the state level, into ~~thousands:~~offset future state taxable income, respectively.

	2024		2023
Deferred Tax Assets
Allowance for doubtful Accounts	$	—	$	1
Investment in Plane Cos LLC	—		44
Loss carryforwards	18,398		11,521
Intangible	530		626
Interest expense limitations	2,484		659
Other	47		15
Total deferred tax assets	21,459		12,866
Deferred Tax Liabilities
Property and equipment depreciation	(25)		(74)
Valuation allowance	(21,738)		(13,096)
Total deferred tax liabilities	(21,763)		(13,170)
Net deferred tax assets (liabilities)	(305)		(305)

The effective tax rate on income differed from the federal statutory rate of 21% for the years ended December 31, 2025 and 2024, for the following reasons:

The Company has federal operating losses carryforward of approximately $73 million and $47 million available as of December 31, 2024 and 2023, respectively, to reduce future taxable income at the federal level, and it has net operating losses of approximately $68 million and $38 million at the state level, to offset $68 million and $38 million of future state taxable income, respectively.


	Year Ended December 31,
	2025				2024
U.S. Federal tax/(benefit) at statutory rate	$	1,304	21.00	%	$	(8,500)	21.00	%
State and local income taxes, net of federal income tax effects *	300		4.83	%	$	22	(0.05)	%
Changes in valuation allowance	(1,108)		(17.84)	%	$	7,257	(17.93)	%
Non-deductible items:
Other	117		1.89	%	$	714	(1.76)	%
Convertible note fair value adjustment	424		6.83	%	$	—	—	%
Effective income tax rate	$	1,037	16.71	%	$	(507)	1.25	%

~~A reconciliation from the statutory federal income tax rate to the effective income tax rate is as follows:~~_____________________________

	2024		2023
Expected federal income taxes at statutory rate	21.00	%	21.00	%
State and local income taxes	4.54	%	4.54	%
Permanent differences	(3.76)	%	(6.79)	%
Change in valuation allowance	(21.35)	%	(18.18)	%
Other	0.82	%	(0.69)	%
Effective income tax rate	1.25	%	(0.12)	%

*State tax expense is primarily attributable to South Carolina and Florida, which represented approximately 83.7% and 13.5% respectively, of total state and local income tax expense for the period. State income tax expense attributable to all other jurisdictions was not individually material.

The ~~primary~~Company’s ~~differences~~U.S. ~~between~~tax ~~income~~returns ~~tax~~are ~~expense~~subject ~~attributable~~to examination by federal and state taxing authorities. The years open to ~~continuing~~examination ~~operations~~by Federal, state, local and foreign government authorities vary by jurisdiction, but the ~~amount~~statute of ~~income~~limitation is generally three years from the date the tax ~~expense~~return is filed. For jurisdictions, including Federal, that ~~would~~have ~~result~~generated ~~from~~net ~~applying~~operating ~~domestic~~losses, ~~federal~~carryovers ~~statutory~~may ~~rates~~be subject to ~~income~~the ~~(loss)~~statute ~~before~~of ~~income~~limitations ~~taxes~~applicable ~~relate~~for tothe ~~state~~year ~~income~~those ~~taxes~~carryovers are utilized. In these cases, ~~and~~the period for which the ~~recognition~~losses ofmay abe ~~valuation~~adjusted ~~allowance~~will extend to conform with the statute of limitations for ~~deferred~~the ~~income~~year ~~tax~~in ~~assets~~which the losses are utilized. ~~The~~In ~~net~~most ~~deferred~~circumstances, ~~tax~~this ~~liabilities~~is ~~relate~~expected to ~~long~~increase ~~lived~~the ~~assets~~length ~~with~~of antime ~~indefinite~~that ~~life.~~the applicable taxing authority may examine the carryovers by one year or longer, in limited cases.

~~NOTE~~We 17have –not ~~SHAREHOLDERS’~~recorded ~~EQUITY~~any ~~(DEFICIT)~~amount related to uncertainty in income taxes pursuant to ASC Topic 740, as we believe all tax positions are more likely than not to be sustained upon examination by the taxing authorities.

On December 1, 2023, the Company filed its Second Amended and Restated Articles of Incorporation with the State of Delaware. Our Certificate of Incorporation initially authorized the issuance of 81,000,000 shares, consisting of 80,000,000 shares of Class A Common Stock, $0.0001 par value per share, and 1,000,000 shares of Preferred Stock, $0.0001 par value per share. On October 28, 2024, the Company filed an amendment to the Certificate of Incorporation to increase the number of authorized shares to 201,000,000 shares consisting of 200,000,000 shares of Common Stock and 1,000,000 shares of Preferred Stock. 74

On February 12, 2025, the Board unanimously approved the Reverse Stock Split of the Company’s Common Stock, at a ratio of 1-for-25. The Reverse Stock Split became effective on February 24, 2025, with no change in par value. All share amounts have been retroactively adjusted to account for the Reverse Stock Split as if it occurred at inception. The Reverse Stock Split did not have an affect on the Authorized Common Stock.

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~~The~~NOTE ~~Company~~14 ~~has~~– ~~authorized~~SHAREHOLDERS’ ~~stock~~EQUITY ~~which have been designated as follows:~~ (DEFICIT)

	Number of Shares Authorized	Number of Shares Outstanding As of December 31, 2024	Par Value
Class A Common Stock	200,000,000	1,843,852	$0.0001
Preferred Stock	1,000,000	—	$0.0001

On October 28, 2024, the Company filed an amendment to its Amended and Restated Certificate of Incorporation to increase the number of authorized shares to 201,000,000 shares consisting of 200,000,000 shares of common stock and 1,000,000 shares of preferred stock.

On February 24, 2025, the Company effected the Reverse Stock Split described elsewhere in this Annual Report. All share amounts have been retroactively adjusted to account for the Reverse Stock Split as if it occurred at inception. The Reverse Stock Split did not have an effect on the number of authorized shares of common stock.

Common stock at the market sales agreement

On December 5, 2025, the Company entered into an ATM Sales Agreement (the “Agreement”) with Virtu Americas LLC (the “Agent”) pursuant to which the Agent will act as the Company’s sole sales agent or principal with respect to the offer and sale from time-to-time of shares of the Company’s Class A Common Stock, par value $0.0001 per share, having an aggregate gross sales price of an aggregate of up to $9.3 million. The Company issued 436,757 shares of common stock for proceeds of $463 thousand in the twelve months ended December 31, 2025.

Preferred Stock

No shares of preferred stock have been issued as of December 31, ~~2024~~2025 and ~~2023~~December 31, 2024.

Class A Common Stock

Conversion of preferred stock shares (Series Seed, Series A-1, Series A-2 and Series A-3) into the Company’s Class A Common Stock.

Series A-1 Preferred Stock (Legacy Volato)

During the year ended December 31, 2023, the Company issued 96,443 shares of Series A-1 for a total cash consideration of $24.2 million.

Following the business combination, the Company converted its 96,443 shares of Series A-1 preferred stock issued and outstanding into 97,898 shares of Class A Common Stock of Volato Group, Inc. based on an exchange ratio of 1.01508.

Series A-2 Preferred Stock (Legacy Volato)

During the year ended December 31, 2023, the Company issued 133,105 Series A-2 shares of preferred stock from the conversion of the 2022 convertible notes in the aggregate principal amount of $19.1 million and $0.8 million of accrued but unpaid interest based on an effective conversion price of $149.55.

Following the business combination, the Company converted the 133,105 shares of Series A-2 preferred stock issued and outstanding into 135,112 shares of Class A Common Stock of Volato Group, Inc. based on an exchange ratio of 1.01508.

Series A-3 Preferred Stock (Legacy Volato)

During the year ended December 31, 2023, the Company issued 82,025 Series A-3 shares of preferred stock from the conversion of the 2023 convertible notes in the aggregate principal amount of $18.4 million and $0.1 million of accrued but unpaid interest based on an effective conversion price of $225.00.

Following the business combination, the Company converted the 82,025 shares of Series A-3 preferred stock into 83,262 shares of Class A Common Stock of Volato Group, Inc. based on an exchange ratio of 1.01508.

Conversion of PACI Class B Founder Shares into the Company’s Class A common stock

The shares of Class B common stock automatically converted into Class A common stock at the time of the closing of the business combination. Upon the business combination, the Company converted 275,343 shares of Class B common stock into an equivalent number of the Company’s shares of Class A common stock.

Conversion of PACI Class A Public Shares into the Company’s Class A common stock.

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The Company converted 70,696 shares of non-redeemed PACI public shares into an equivalent number of Shares of Class A Common Stock of the Company following the business combination.

Issuance of Class A common Stock

In November 2024, the Company entered into an agreement with a third party to settle outstanding payables owed by the Company to designated vendors in exchange for a settlement amount in shares of common stock. As of December 31, 2024 in accordance with the agreement, the Company issued 639,720 shares for the payment of $2.2 million of outstanding payables. The Company recorded a $2.8 million loss on extinguishment of debt upon the settlement of each issuance equal to the fair value of the shares less the value of the shares calculated as of the closing stock price on the date of settlement.

Stock Options - Equity Incentive Plans

Summary of the 2025 Plan

The 2025 Stock Incentive Plan (the “2025 Plan”) was approved at the annual meeting of the shareholders of the Company on July 21, 2025. The 2025 Plan provides for the grant of stock options (both incentive stock options and non-qualified stock options), stock appreciation rights, restricted stock, restricted stock units, performance-based awards, and other stock- and cash-based awards. The Company has reserved a pool of shares of common stock for issuance pursuant to awards under the 2025 Plan equal to 415,584 shares. As of December 31, 2025 the Company had 89,060 shares available for issuance.

Summary of the 2023 Plan

The 2023 Stock Incentive Plan (the “2023 Plan”) was approved at the special meeting of the shareholders of the Company on November 28, 2023. The 2023 Plan provides for the grant of stock options (both incentive stock options and non-qualified stock options), stock appreciation rights, restricted stock, restricted stock units, performance-based awards, and other stock- and cash-based awards. The Company has reserved a pool of shares of ~~Common~~common ~~Stock~~stock for issuance pursuant to awards under the 2023 Plan equal to 224,348 shares. As of December 31, ~~2024~~2025 the Company had ~~192~~21,~~053~~855 shares available for issuance.

~~Summary~~Stock ofoption activity for the ~~2021~~periods ~~Plan~~presented is as follows:

As of the effective date of the business combination, each then-outstanding unexercised option (whether vested or unvested) to purchase shares of Legacy Volato Common Stock granted under the 2021 Plan was assumed by Volato Group and shall be converted into a stock option (a “Volato Group option”) to acquire shares of Class A Common Stock of Volato Group, par value $0.0001 per share, in accordance with the business combination agreement.


	Options	Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (years)




Outstanding at December 31, 2024	18,614	$	5.59	7.5
Granted	—	—
Cancelled	(911)	20.30
Exercised	—	—
Outstanding as of December 31, 2025	17,703	$	4.94	6.5
Exercisable as of December 31, 2025	16,200	$	4.24

The 2021 Plan became effective on August 13, 2021, and was in effect until November 20, 2023. No awards were granted under the 2021 Plan after the 2023 Plan Effective Date. Awards granted under the 2021 Plan that will be outstanding on the 2023 Plan Effective Date will be accelerated or continued in accordance with their terms subject to vesting schedules pursuant to the applicable restricted stock award agreement or option agreement.75

The balance and activity of all stock options outstanding as of December 31, 2024, and 2023, is as follows:

	Options	WeightedAverageExercise PricePer Share		WeightedAverageRemainingContractualTerm (years)
Outstanding at December 31, 2022	100,305	$	3.50	9.4
Granted	15,309	$	205.25
Cancelled	(12,551)	$	5.50
Exercised	(8,296)	$	3.00
Outstanding at December 31, 2023	94,767	$	35.75	8.8
Granted	34,370	$	12.76
Cancelled	(77,910)	$	43.57
Exercised	(32,613)	$	3.63
Outstanding as of December 31, 2024	18,614	$	5.59	7.5
Exercisable as of December 31, 2024	15,360	$	4.03

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The following table summarizes the range of exercise price, weighted average remaining contractual life (“Life”) and weighted average exercise price (“Price”) for all stock options outstanding as of December 31, ~~2024~~2025:

	OptionsOutstanding
Exercise Price	Shares	Life (in years)
$3.00	1,763	65.6
$3.50	13,~~562~~510	76.2
$12.50	32,~~230~~430	98.4
$177.75	44	0.0
	17,703	6.5
$210.00	15	5.4
	18,614	7.5

The Black-Scholes option pricing model is used by the Company to determine the weighted-average fair value of share-based payments. The ~~weighted~~Company ~~average~~recognizes ~~grant~~forfeitures ~~date~~as ~~fair~~they ~~value~~occur. ofThere were no stock options ~~issued~~granted ~~during~~in the ~~year~~twelve months ended December 31, ~~2024 and 2023, was $6~~2025.~~57 and $95.25 per share, respectively. The Company’s recognizes forfeitures as they occur.~~

The fair value of stock options on the grant date was determined using the following weighted-average assumptions during the year ended December 31, 2024 and 2023:


			For The Year Ending December 31,
			2024
Expected term			5.8 - 6.25
Expected volatility			68%
Expected dividends			None
Risk-free interest rate			3.8% - 4.5%
Forfeitures			None

	For The Year Ending December 31,
	2024	2023
Expected term	5.8 - 6.25 years	2-6 years
Expected volatility	68%	30% - 71%
Expected dividends	None	None
Risk-free interest rate	3.8% - 4.5%	3.6%-4.6%
Forfeitures	None	None

As of December 31, 2025, the unrecognized compensation cost related to non-vested awards was $144 thousand and is expected to be recognized over a weighted average period of 0.13 years.

As of December 31, 2024, the unrecognized compensation cost related to non-vested awards was $0.2 million and is expected to be recognized over a weighted average period of 1.9 years.

Restricted Stock

In June, 2024 the Company issued time-based restricted stock units and performance-based restricted stock units with market conditions that vest upon the Company’s Common Stock achieving a specific price per share.

Restricted stock unit activity for the period presented is as follows:

	Restricted Stock Units	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2023	—	$	—
Outstanding at December 31, 2024	29,080	$	18.75
Granted	65470,~~171~~175	161.4780
Vested	(7488,~~355~~291)	182.7550
Forfeited	~~(28,736)~~—	~~18.75~~—
Outstanding at December 31, 2024	29,080	$	13.64
Outstanding as of December 31, 2025	10,964	$	6.64

74Stock based compensation expense was $605 thousand and $211 thousand for the twelve months ended December 31, 2025 and 2024, respectively.

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The performance-based restricted stock units with market conditions was determined using a Monte Carlo simulation model.

As of December 31, 2024, unrecognized compensation expense for time based restricted stock units was $241 thousand and is expected to be recognized over the next 2.45 years.

Stock based compensation expense was $211 thousand and $82 thousand for the year ended December 31, 2024 and 2023, respectively.

Warrants

As of December 31, ~~2024 and 2023~~2025, there were 552,000 public warrants ~~(note 4)~~ and 609,195 private placement warrants issued and outstanding.

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Private placement warrants

~~Simultaneously~~The ~~with the closing of the Initial Public Offering by PACI in 2021, the~~ Company ~~f/k/a~~has ~~Proof Acquisition Corp I consummated the private placement of~~ 609,195 private placement warrants ~~at a price of $25~~outstanding.00 ~~per private placement warrant to the sponsor and Blackrock.~~ Each private placement warrant is exercisable for one whole share of Class A common stock at a price of $287.50 per share. Such private placement warrants ~~will~~are be exercisable for cash or on a cashless basis, at the holder’s option, and ~~will~~are not be redeemable by the Company. The private placement warrants are all exercisable as of December 31, ~~2024~~2025. There was no activity during the ~~years~~twelve months ended ~~December~~months ended December 31, ~~2024 and 2023~~2025.

Public warrants

Pursuant to the ~~Initial~~initial ~~Public~~public ~~Offering~~offering (“IPO”) by Proof Acquisition Corp I (“PACI”) in 2021, the Company sold 1,104,000 ~~Units~~units at a price of $250.00 per ~~Unit~~unit. Each ~~Unit~~unit ~~consists~~consisted of one share of Class A common stock and one-half of one redeemable warrant. Each whole public warrant entitles the holder to purchase one share of Class A common stock at a price of $287.50 per share, subject to adjustment. A majority of the shares were redeemed before the December 2023 merger transaction, but the warrants remain. As a result, there are 552,000 public warrants outstanding as of December 31, ~~2023~~2025.

The public warrants ~~will~~became ~~become~~ exercisable on the later of (a) 30 days after the completion of a business combination and (b) 12 months from the closing of the ~~Initial Public Offering~~IPO. The public warrants ~~will~~ expire five years after the completion of a business combination or earlier upon redemption or liquidation. The public and private warrants expire on December 1, 2028. The public warrants are all exercisable as of December 31, ~~2023~~2025. There was no activity during the ~~years~~twelve months ended December 31, ~~2023 and 2022~~2025.

~~The~~NOTE ~~following~~15 ~~table~~– isCOMMITMENT aAND ~~summary of the Company’s warrant activity during the years ended December 31, 2024:~~CONTINGENCIES

	Warrants	WeightedAverageExercise PricePer Share		WeightedAverageRemainingContractualTerm (years)
Outstanding as of January 1, 2023	1,161,195	$	287.50	5
Granted	—
Cancelled	—
Exercised	—
Outstanding as of December 31, 2024	1,161,195	$	287.50	3.92 years
Exercisable as of December 31, 2024	1,161,195

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NOTE 18 – COMMITMENT AND CONTINGENCIES

Honda May 2023 Purchase Agreement

On May 5, 2023, the Company entered into a HondaJet Fleet Purchase Agreement with Honda Aircraft Company. LLC, for the purchase and delivery of twenty-three (23) HondaJet HA-420 Aircraft for a total estimated purchase price of $161.1 million with expected delivery between the fourth fiscal quarter of 2024 and the fourth fiscal quarter of 2025. The Company took delivery and sold two aircraft related to this agreement. On September 10, 2024, the Company received notice from Honda Aircraft that the Honda FPA was terminated. Pursuant to the terms of the agreement, Honda Aircraft will retain the deposits that have been previously paid by the Company and the Company has to enter into individual purchase agreements for each aircraft for which a deposit had previously been paid. During the year ended December 31, 2024, the Company recorded a charge for the remaining deposit balance of $1.0 million which is recorded in selling general and administrative expenses.

Gulfstream Aerospace, LP

During the year ended December 31, 2022, the Company executed a series of purchase agreements with Gulfstream Aerospace, LP for the acquisition of four (4) Gulfstream ~~G-280~~G280 aircraft for total consideration of $79.0 million and with expected deliveries in 2024 through 2025, for which the Company made prepayments totaling $48.0 million and $3948.0 million as of December 31, ~~2024~~2025, and December 31, ~~2023~~2024, respectively. The $48.0 million iswas non-refundable, except in some specific circumstances, and would serve as consideration for liquidated damages of $3.0 million per aircraft should the purchase agreement be terminated by the Company.

During the year ended December 31, 2024, the Company made additional payments of $9.0 million towards these agreements, of which $9.0 million was funded through the SAC Leasing G280 LLC credit facility. In September 2024, the Company took delivery of one Gulfstream G280 and received $12.0 million in deposits related to the aircraft, of which $9.0 million paid down the SAC Leasing G280 line of credit and $3.0 million was retained by the Company. In the first quarter of 2025, an ~~addition~~additional $12 million in deposits was received as a result of the delivery of the second Gulfstream G280 and the return of $9 million in deposits related to the fourth Gulfstream G280. The $9 million in returned deposits were used to pay down the SAC Leasing G280 line of credit. In April 2025, the third Gulfstream G280 was delivered and $12.0 million of the deposits were applied toward the purchase price of the airplane. In October 2025, the fourth Gulfstream G280 was delivered and $3.0 million of the deposits were applied to the purchase price of the airplane.

~~Future~~There are no future minimum payments due under the purchase agreements with Gulfstream Aerospace, LP at December 31, ~~2024,~~2025. ~~are as follows, in thousands:~~

For the twelve months ended December 31,	Gulfstream G280 Fleet
2025	26,270
Total expected contractual payments	$	26,270

The Company had a credit facility in place with SAC Leasing G280 LLC to fund $40.5 million of the original $79.0 million due under these purchase agreements with Gulfstream Aerospace LP. In April 2025, the Company paid the remaining balance and terminated the credit facility.

The Company has a credit facility in place with SAC Leasing G280 LLC to fund $40.5 million of the original $79.0 million due under these purchase agreements with Gulfstream Aerospace LP. The remaining balance to be funded by SAC Leasing G280 LLC is zero as of December 31, 2024.

Operating Leases

The Company leases property and equipment under operating leases. For leases with terms greater than 12 months, the Company records the related assets and obligations at the present value of the lease payments over the lease term. Many of the leases contain renewal options and/or termination options that are factored into our determination of lease payments when appropriate. The Company uses its incremental borrowing rate to discount lease payments to present value, as the rates implicit in its leases are not readily determinable. The incremental borrowing rate is based on the estimated interest rate for collateralized borrowing over a similar term of the lease at the commencement date.

~~Aircraft Leases~~77

During 2023, the Company began leasing an aircraft with a term of five years which has fixed lease payments. The Company recognized an operating lease liability in the amount of the net present value of the future minimum lease payments, and a right-of-use asset. The discount rate used for this lease was 12%, which was determined to be the incremental borrowing rate based on comparative secured financing in the marketplace at the inception of the fixed lease payments.

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~~Lease~~Aircraft expense is recognized on a straight-line basis over the lease term. Lease expense related to this lease consisting of fixed and variable lease costs was $78 thousand and $469 thousand for the years ended December 31, 2024 and 2023, respectively.Leases

~~Additionally~~During 2023, the Company ~~leases~~began ~~other~~leasing an aircraft ~~under operating leases~~ with ~~remaining~~a ~~terms~~term ~~ranging~~of ~~from one to~~ five years. ~~These~~which ~~leases~~has ~~require~~fixed lease payments. ~~that~~The ~~are~~Company ~~variable~~recognized ~~and~~an ~~are~~operating ~~dependent~~lease onliability ~~flight~~in ~~hours~~the ~~that~~amount ~~generate~~of ~~charter~~the ~~revenues,~~net ~~with~~present novalue ~~minimum lease payment commitments. Because~~ of the ~~variable~~future ~~nature~~minimum ~~of the~~ lease payments, ~~these~~and ~~leases~~a ~~are~~ROU ~~not~~asset. ~~recorded~~The ondiscount ~~our~~rate ~~consolidated~~used ~~balance~~for ~~sheets~~this aslease ~~ROU~~was ~~assets~~12%, ~~and~~which ~~lease~~was ~~liabilities.~~determined ~~Certain~~to ~~leases~~be ~~have~~the ~~renewal~~incremental ~~options~~borrowing torate ~~extend~~based ~~lease~~on ~~terms~~comparative ~~for~~secured ~~additional~~financing ~~periods~~in ~~ranging~~the ~~from~~marketplace ~~three~~at tothe ~~twelve~~inception ~~months~~of the fixed lease payments.

~~Some~~Lease ofexpense ~~the~~is aircraft leases have lease terms of 12 months or less. The Company has made a policy election to classify lease agreements with a lease term of 12 months or less as short-term leases. Accordingly, the Company has not recognized ~~right-of-use assets or lease liabilities related to these lease agreements pursuant to the short-term election. The Company recognizes short-term lease costs~~ on a straight-line basis over the lease term. ~~and~~Lease ~~accrues~~expense ~~the~~was ~~difference~~zero ~~each~~and ~~period~~$78 thousand ~~between~~for the ~~amount~~twelve ~~expensed~~months ~~and~~ended ~~the~~December ~~amount~~31, ~~paid~~2025 and 2024, respectively.

~~Variable~~Additionally, ~~lease~~the ~~costs~~Company ~~associated~~leased ~~with~~other ~~the~~ aircraft under operating leases ~~were~~with ~~$7.7~~remaining ~~million~~terms ~~and~~ranging ~~$12.9~~from ~~million~~one ~~for~~to ~~the~~five years. ~~ended~~These ~~December 31,~~leases ~~2024,~~required lease payments that were variable and ~~2023~~were dependent on flight hours that generate charter revenues, ~~respectively.~~with ~~Short-term~~no minimum lease ~~costs~~payment oncommitments. Because of the ~~aircraft~~variable nature of the lease payments, these leases were ~~$196~~not ~~thousand~~recorded on our consolidated balance sheets as ROU assets and ~~$617 thousand~~lease liabilities. Certain leases had renewal options to extend lease terms for ~~the~~additional ~~years~~periods ~~ended~~ranging ~~December 31,~~from ~~2024,~~three ~~and~~to ~~2023,~~twelve ~~respectively~~months.

Some of the aircraft leases had lease terms of 12 months or less. The Company made a policy election to classify lease agreements with a lease term of 12 months or less as short-term leases. Accordingly, the Company did not recognized ROU assets or lease liabilities related to these lease agreements pursuant to the short-term election. The Company recognized short-term lease costs on a straight-line basis over the lease term and accrues the difference each period between the amount expensed and the amount paid.

Variable lease costs associated with the aircraft operating leases were zero and $7.7 million for the twelve months ended December 31, 2025 and 2024, respectively. Short-term lease costs on the aircraft leases were zero and $196 thousand for the twelve months ended December 31, 2025 and 2024, respectively.

As of December 31, 2024, the Company had terminated all the aircraft leases as part of the flyExclusive agreement.

Airport Facilities

Our facilities leases are for space at airports throughout the south with remaining terms ranging from one to eleven months. These leases consist of hangar space and office space. The leases have lease terms of 12 months or less. Accordingly, the Company has not recognized ~~right-of-use~~ROU assets or lease liabilities related to these lease agreements pursuant to the short-term lease election. The Company has made a policy election to not separate lease and non-lease components for these facility leases. Short- term lease costs related to these leases were $703 thousand and $7170 thousand for the ~~years~~twelve months ended December 31, ~~2024,~~2025 and ~~2023~~2024, respectively.

In January 2024, the Company began leasing space for aircraft with a term of 5 years with fixed lease payments. The Company recognized an operating lease liability in the amount of the net present value of the future minimum lease payments, and a ~~right-of-use~~ROU asset. The discount rate used for this lease was 12%, which was determined to be the incremental borrowing rate based on comparative secured financing in the marketplace at the inception of the fixed lease payments.

Future estimated minimum lease payments by year and in aggregate, under the Company’s fixed payment operating lease consisted of the following at December 31, ~~2024~~2025:

For the years ended December 31,	Operating Leases
2025	$	56,533
2026	$	57
2026	56,533
2027	$	57
2027	56,533
2028	$	38
2028	37,689
Thereafter	$	—
TOTAL	~~207,288~~$	152

~~Sale-Leaseback Transactions~~78

The Company entered into $15.7 million of sales-leaseback transactions related to aircraft during the years ended December 31, 2023. No sales-leaseback transactions occurred in 2024. The Company recorded gains of $3.4 million associated with these transactions, for the years ended December 31, 2023. Gains are recorded in gross profit in the consolidated statements of operations. The leases of the aircraft assets are operating leases which incur variable lease costs based upon usage as described above. These lease costs are expensed as incurred.

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Customer Deposits and Deferred Revenue

Customer deposits and deferred revenue consisted of deposits from customers for the purchase of aircraft of $0.1 million and $10.7 million as of December 31, 2025 and December 31, 2024, respectively, as well as deferred revenue of $2.7 million and $696 thousand as of December 31, 2025 and December 31, 2024, respectively.

Legal Contingencies

From time to time, the Company receives claims of and becomes subject to consumer protection, employment, intellectual property and other commercial litigation related to the conduct and operation of the Company’s business. In connection with such litigation, the Company may be subject to significant damages. We may also be subject to equitable remedies and penalties. Such litigation could be costly and time consuming and could divert or distract Company management and key personnel from its business operations. The Company is currently the defendant in suits brought by vendors, customers and suits related to the transfer of the flight operations and leases to flyExclusive and does not currently believe that any of its outstanding litigation will have a material adverse effect on its financial statements or business. However, due to the uncertainty of litigation and depending on the amount and the timing, an unfavorable resolution of some or all of these matters could materially affect the Company’s business, results of operations, financial position, or cash flows.

In the Tampa Division of the U.S. District Court, in and for the Middle District of Florida on September 12, 2024, Joshua G. Newsteder, LouAnn Gray, and those similarly situated (the “Plaintiffs”) filed suit against the Volato Group, Inc. and Volato, Inc. (together, the “Defendants”) citing various allegations including that the termination of employment of 230 employees that occurred on August 30, 2024 violated requirements of the Worker Adjustment and Retraining Notification Act of 1988, 29 U.S.C. § 2101 et. seq. ~~(“WARN Act”) (collectively, the “Dispute”).~~ Plaintiffs are seeking unpaid wages or salary, benefits and other relief deemed by the court as just and proper. ~~Volato~~The ~~Group,~~Defendants ~~Inc. and Volato, Inc.~~ deny all allegations. Current range of loss can not be estimated.

~~NOTE 20 – SUBSEQUENT EVENTS~~ 79

Management has evaluated events that have occurred subsequent to the date of these consolidated financial statements and has determined that, other than those listed below, no such reportable subsequent events exist through March 31, 2025, the date the consolidated audited financial statements were issued in accordance with FASB ASC Topic 855, “Subsequent Events.”

On March 20, 2025 the Company sold GC Aviation, Inc., which holds the FAA Part 135 certificate for $2.0 million, of which $1.8 million is a note receivable.

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NOTE 16 – SEGMENT INFORMATION

The Company has one reportable segment, private aviation services, managed on a consolidated basis by the CEO who is the CODM. The private aviation services segment provides airplane sales and software-as-a-service subscriptions. The Company derives revenue primarily in North America and manages the business activities on a consolidated basis.

The accounting policies of the segment are the same as those described in the summary of significant accounting policies. The CODM assesses performance and decides how to allocate resources based on net income (loss) from continuing operations before income taxes that is also reported on the consolidated statements of operations. The measure of segment assets is reported on the consolidated balance sheets as consolidated total assets.

The CODM allocates resources and evaluates performance based on net income (loss) from continuing operations before income taxes, which is the Company’s measure of segment profit or loss. The CODM considers year-over-year variances for net income (loss) from continuing operations before taxes when making decisions about how to utilize the Company’s resources.

The components of segment profit or loss were as follows:


	Twelve Months Ended
	December 31,
		2025		2024
Revenue		$	78,559	$	39,064
Less:
Cost of revenue		63,871		32,181
Selling, general and administrative(1)		10,728		15,506
Loss on fair value adjustment of financial instruments		2,074		2,983
Interest expense, net		4,848		7,493
Loss on debt extinguishment		—		2,804
Add:
Other(2)		4,023		212
Net income (loss) from continuing operations before income taxes		$	1,061	$	(21,691)

(1) Includes amounts for depreciation and amortization expense.

(2) Other includes gains of $10.0 million for settlements of deposits and other liabilities at a discount for the twelve months ended December 31, 2025, offset by a loss on the flyExclusive fourth amendment of $6.1 million for the twelve months ended December 31, 2025.

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NOTE 17 – BASIC AND DILUTED NET INCOME (LOSS) PER SHARE

The following table sets forth the computation of basic and diluted net income (loss) per share attributable to common stockholders (in thousands, except share and per share amounts):


	Twelve Months Ended December 31,
		2025		2024
Numerator:
Net income (loss) from continuing operations		$	854	$	(21,184)



Net income (loss) from discontinued operations		$	4,319	$	(19,461)
Denominator:
Weighted-average common shares outstanding, basic and diluted		4,386,829		1,664,502

The following securities were excluded due to their anti-dilution effect on net income (loss) per share attributable to common stockholders recorded in each of the periods:


	As of December 31,
	2025	2024
Warrants to purchase common stock	1,161,195	1,161,195
2024 convertible note and second, third and fourth tranche notes on an-converted basis	2,522,355	—
Stock options outstanding	17,703	18,614
Restricted stock units with performance and market conditions	14,601	10,964
Total	3,715,854	1,190,773

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NOTE 18 – SUBSEQUENT EVENTS

In January 2026, the Company issued a dividend of 432,099 shares of Class A common stock of flyExclusive to Volato shareholders.

In January 2026, the remaining $1.0 million of principal and interest on the Fourth Tranche note was converted into 1,926,618 shares of common stock.

On January 19, 2026, the Company entered into the first Amendment to the merger agreement with M2i Global Inc, to extend the end date to March 31, 2026.

Through March 10, 2026, $2.5 million of principal and interest on the Third Tranche note was converted into 7,406,489 shares of common stock.

On March 6, 2026, the Company signed amendment number five to the Agreement with flyExclusive, pursuant to which the Company sold certain unused intellectual property assets for $1.3 million payable in cash or shares of flyExclusive’s Class A common stock. Such assets represent a portion of the total assets which were anticipated to be sold under one of the Asset Options as described in Note 1. Following the sale of the intellectual property assets pursuant to the fifth amendment, there is $700,000 in remaining assets that may be sold to flyExclusive under the terms of the Agreement, as amended.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the ~~Securities and Exchange Commission~~SEC’s ~~("SEC")~~ rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefit of controls must be considered relative to their costs. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

As of the end of the period covered by the report, weas ~~carried~~required ~~out~~by anRules ~~evaluation,~~13a-15 ~~under the supervision~~ and ~~with~~15d-15 under the ~~participation~~Exchange ofAct, our management, including our ~~chief~~Chief ~~executive~~Executive ~~officer~~Officer and ~~chief~~Chief ~~financial~~Financial ~~officer~~Officer, carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)). Based on that evaluation, our ~~chief~~Chief ~~executive~~Executive ~~officer~~Officer and ~~chief~~Chief ~~financial~~Financial ~~officer~~Officer concluded that, as of December 31, ~~2024~~2025, our disclosure controls and procedures were not effective atdue to material weaknesses in the ~~reasonable~~Company’s ~~assurance~~internal ~~level~~control over financial reporting as described below.

~~REPORT~~Nevertheless, OFbased ~~MANAGEMENT~~on ONthe ~~INTERNAL~~performance ~~CONTROL~~of ~~OVER~~additional ~~FINANCIAL~~procedures ~~REPORTING~~by management designed to ensure reliability of financial reporting, management has concluded that, notwithstanding the material weaknesses described below, the financial statements, and other financial information included in this report, fairly present, in all material respects, the financial condition, results of operations, and cash flows of the Company as of the dates, and for the periods presented, in conformity with U.S. GAAP.

Report of Management on Internal Controls over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Because of its inherent limitations, internal control over financial reporting may not prevent or detect all misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

Our management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, ~~2024~~2025. The framework used by management in making that assessment was the criteria set forth in the document entitled “Internal Control – Integrated Framework 2013” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on that assessment, our Chief Executive Officer and Chief Financial Officer has determined and concluded that, as of December 31, ~~2024~~2025, the Company’s internal control over financial reporting ~~were~~was not effective.

~~This~~Material Annual Report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to the permanent exemption of the Securities and Exchange Commission that permit the Company to provide only management’s report in this Annual Report.Weaknesses

Management identified the following material weaknesses in our internal control over financial reporting:

•The Company did not design and maintain formal accounting policies, procedures, and controls to achieve complete, accurate, and timely financial accounting, reporting, and disclosures, including controls over the preparation and review of account reconciliations and journal entries.

•The Company did not maintain a sufficient complement of personnel possessing the appropriate technical accounting competency, training, and experience to address, review, and record financial reporting transactions under U.S. GAAP.

•The Company did not design and maintain adequate segregation of duties consistent with control objectives for key information technology systems that support financial reporting processes.

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•The Company did not design and maintain formal and effective controls over information technology general controls (“ITGCs”) for IT systems that are relevant to the preparation of the financial statements.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. If we are unable to remediate these material weaknesses, or if we identify additional material weaknesses in the future or otherwise fail to maintain an effective system of internal controls, we may not be able to accurately or timely report our financial condition or results of operations, which may adversely affect investor confidence in us and, as a result, our stock price.

Changes in Internal Control over Financial Reporting

There ~~has~~were ~~been~~ no ~~change~~changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarter ended on December 31, ~~2024~~2025 covered by this Annual Report that ~~has~~have materially affected, or isare reasonably likely to materially affect, our internal control over financial reporting.

79This Annual Report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to the permanent exemption of the Securities and Exchange Commission that permit the Company to provide only management’s report in this Annual Report.

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ITEM 9B. OTHER INFORMATION

~~During~~(a) On March 6, 2026, the ~~three~~Company ~~months~~signed ~~ended~~amendment ~~December~~number ~~31,~~five ~~2024,~~to nothe ~~director~~Agreement orwith ~~officer~~flyExclusive, ofpursuant to which the Company ~~adopted~~sold orcertain ~~terminated~~unused aintellectual ~~“Rule~~property ~~10b5-~~assets for $1.3 ~~trading~~million ~~arrangement”~~payable in cash or ~~“non-Rule~~shares ~~10b5-1~~of ~~trading~~flyExclusive’s ~~arrangement,”~~Class A common stock. Such assets represent a portion of the total assets which were anticipated to be sold under one of the Asset Options as ~~each~~described ~~term~~above. Following the sale of the intellectual property assets pursuant to the fifth amendment, there is ~~defined~~$700,000 in ~~Item~~remaining ~~408(a)~~assets that may be sold to flyExclusive under the terms of ~~Regulation~~the ~~S-K~~Agreement, as amended.

The fifth amendment contains customary representations, warranties, agreements and obligations of the parties. The foregoing description of the fifth amendment does not purport to be complete and is qualified in its entirety by reference to the fifth amendment, a form of which is filed as Exhibit 10.7 to this Annual Report and is incorporated herein by reference.

(b) During the quarter ended December 31, 2025, there was no information required to be disclosed in a report on Form 8-K which was not disclosed in a report on Form 8-K.

(c) During the quarter ended December 31, 2025, no director or officer of the Company adopted, modified, or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not applicable.

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE

The information required by this Item 10 will be set forth in the “Directors,” “Executive Officers,” “Corporate Governance” and “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters” sections of our definitive proxy statement relating to our ~~2025~~2026 annual meeting of shareholders (the “Proxy Statement”), which will be filed with the SEC within 120 days after the end of the year covered by this Annual Report.

We have adopted an Insider Trading Policy which governs the purchase, sale, and/or other disposition of our securities by our directors, officers, and employees and other covered persons designated by the policy. We believe our Insider Trading Policy is reasonably designed to promote compliance with insider trading laws, rules and regulations, and NYSE American listing standards, as applicable. A copy of our Insider Trading Policy is filed as Exhibit 19.1 to this Annual Report on Form 10-K.

ITEM 11. EXECUTIVE COMPENSATION

The information required by this Item 11 will be set forth in the “Executive and Director Compensation” section of the Proxy Statement, which will be filed with the SEC within 120 days after the end of the year covered by this Annual Report.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information required by this Item 12 will be set forth in the “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters” section of the Proxy Statement, which will be filed with the SEC within 120 days after the end of the year covered by this Annual Report.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information required by this Item 13 will be set forth in the “Certain Relationships and Related Person Transactions” and “Corporate Governance” sections of the Proxy Statement, which will be filed with the SEC within 120 days after the end of the year covered by this Annual Report.

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ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information required by this Item 14 will be set forth in the “Certain Relationships and Related Person Transactions” and “Corporate Governance” sections of the Proxy Statement, which will be filed with the SEC within 120 days after the end of the year covered by this Annual Report.

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ITEM 15. ~~EXHIBIT AND FINANCIAL STATEMENT SCHEDULES~~EXHIBITS

(a)Financial Statements and Schedules


			Exhibit Index
Exhibit Number			Description
2.1			Agreement and Plan of Merger and Reorganization, dated July 28, 2025, between Volato Group, Inc., Volato Merger Subsidiary, Inc., and M2i Global, Inc. (incorporated by reference from Exhibit 2.1 to the Company’s Current Report on Form 8-K filed with the SEC on July 29, 2025).
2.2			Amendment No. 1 to Agreement and Plan of Merger and Reorganization, dated January 19, 2026, between Volato Group, Inc., Volato Merger Subsidiary, Inc., and M2i Global, Inc. (incorporated by reference from Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on January 20, 2026).
3.1			Second Amended and Restated Certificate of Incorporation of Volato Group, Inc., as amended through February 19, 2025 (incorporated by reference to Exhibit 3.1 of our Registration Statement on Form S-1 filed with the SEC on May 7, 2025).
3.2			Third Amended and Restated Bylaws of Volato Group, Inc. PROOF Acquisition Corp I, as amended through October 10, 2024 (incorporated by reference to Exhibit 3.1 of our Annual Report on Form 10-K for the year ended December 31, 2024).
4.1*			Description of Securities.
10.1			Form of Second Tranche 10% Original Issue Discount Senior Unsecured Convertible Promissory Note (incorporated by reference from Exhibit 4.1 to the Company’s Current Report on Form 8-K filed with the SEC on June 13, 2025).
10.2			Form of Third Tranche 10% Original Issue Discount Senior Unsecured Convertible Promissory Note (incorporated by reference from Exhibit 4.1 to the Company’s Current Report on Form 8-K filed with the SEC on July 21, 2025).
10.3			Form of Stockholder Voting and Support Agreement (incorporated by reference from Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on July 29, 2025).
10.4			Form of Share Exchange Agreement, dated September 30, 2025, between the Company and certain shareholders of M2i Global, Inc. (incorporated by reference from Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on September 30, 2025).
1 0.5			Fourth Amendment to Aircraft Management Services Agreement, dated October 1, 2025, between Volato Group, Inc. and flyExclusive, Inc. (incorporated by reference from Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on October 7, 2025.)
10.6			Form of Fourth Tranche 10% Original Issue Discount Senior Unsecured Convertible Promissory Note (incorporated by reference from Exhibit 4.1 to the Company’s Current Report on Form 8-K filed with the SEC on October 17, 2025).
10.7*			Fifth Amendment to the Aircraft Management Services Agreement, dated March 6, 2026.
1 0.8*			Asset Purchase agreement with flyExclusive, dated March 6, 2026.
1 9.1			Insider trading policy (incorporated by reference from Exhibit 19.1 to the Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2025).
2 1.1			List of Subsidiaries (incorporated by reference from Exhibit 21.1 to the Company’s Registration Statement on Form S-4 filed with the SEC on December 15, 2025).
23.1*			Consent of Rose, Snyder & Jacobs, LLP
24.1*			Power of Attorney (included on signature page).
31.1*			Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*			Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**			Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**			Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
9 7.1			Volato Group, Inc. Clawback Policy (incorporated by reference from Exhibit 97.1 to the Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2025).
101.INS*			XBRL Instance Document—the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH*			Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents
104*			Cover Page Interactive Data File—the cover page XBRL tags are embedded within the Inline XBRL document contained in Exhibit 101
*Filed herewith
** Furnished herewith

The financial statements are set forth under Part II, Item 8 of this Form 10- K, as indexed below. Financial statement schedules have been omitted since they either are not required, not applicable, or the information is otherwise included.87

___________________________________

(b)Exhibits

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			Exhibit Index
ExhibitNumber			Description
2.1			Business Combination Agreement, dated as of August 1, 2023, by and among PROOF Acquisition Corp I, PACI Merger Corp, Inc., and Volato, Inc. (included as Annex A to PROOF Acquisition Corp I’s Registration Statement on Form S-4 (File No. 333-274082), filed with the Securities and Exchange Commission on August 18, 2023).
3.1*			Second Amended and Restated Certificate of Incorporation of Volato Group, Inc., as amended through February 19, 2025.
3.2*			Third Amended and Restated Bylaws of Volato Group, Inc. PROOF Acquisition Corp I, as amended through October 10, 2024.
4.1			Specimen Class A Common Stock Certificate of Volato Group, Inc (incorporated by reference herein from the Company’s Current Report on Form 8-K filed with the SEC on December 7, 2023).
4.2			Specimen Warrant Certificate (Incorporated by reference to the corresponding exhibit the Company’s Registration Statement on Form S-l (File No. 333-261015), filed with the SEC on November 12, 2021).
4.3			Warrant Agreement between the Company and Continental Stock Transfer & Trust Company, dated as of December 17, 2020 (Incorporated by reference to exhibit 4.1 to the Company’s Current Report on Form 8-K (File No. 001-41104), filed with the SEC on December 6, 2021).
4.4*			Description of Securities
10.1#			Employment Agreement, dated December 1, 2023, between Volato Group, Inc., Volato, Inc. and Mark Heinen (incorporated by reference herein from the Company’s Current Report on Form 8-K filed with the SEC on December 7, 2023).
10.2#			Employment Agreement, dated December 1, 2023, between Volato Group, Inc., Volato, Inc. and Matthew Liotta (incorporated by reference herein from the Company’s Current Report on Form 8-K filed with the SEC on December 7, 2023).
10.3#			Form of Employee Invention Assignment, Restrictive Covenants, and Confidentiality Agreement (incorporated by reference herein from the Company’s Current Report on Form 8-K filed with the SEC on January 16, 2024).
10.4#			Form of Restricted Stock Unit Agreement (incorporated by reference herein from the Company’s Quarterly Report on Form 10-Q filed with the SEC on August 14, 2024).
10.5			Aircraft Purchase and Sale Agreement, dated as of August 9, 2024, between Volato, Inc. and TVPX Aircraft Solutions, Inc. (incorporated by reference herein from the Company’s Current Report on Form 8-K filed with the SEC on August 16, 2024).
10.6			Aircraft Lease Agreement (S/N 2282), dated as of August 9, 2024, between Volato, Inc. and TVPX Aircraft Solutions, Inc. (incorporated by reference herein from the Company’s Current Report on Form 8-K filed with the SEC on August 16, 2024).
10.7#			Form of Indemnification Agreement (incorporated by reference herein from the Company’s Current Report on Form 8-K filed with the SEC on August 29, 2024).
10.8#			Form of Stock Option Agreement (incorporated by reference herein from the Company’s Current Report on Form 8-K filed with the SEC on August 29, 2024).
10.9			Business Loan and Security Agreement, dated July 26, 2024, between Volato, Inc. and TVT Capital Source LLC (incorporated by reference herein from the Company’s Current Report on Form 8-K filed with the SEC on August 1, 2024).
10.10			Aircraft Management Services Agreement, dated September 2, 2024, between flyExclusive, Inc. and Volato Group, Inc. (incorporated by reference herein from Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on September 3, 2024).
10.11			Settlement Agreement and Stipulation dated November 4, 2024 by and between Volato Inc. and Sunpeak Holdings Corporation (incorporated by reference hereon from Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on November 8, 2024).
10.12			Form of 10% Original Issue Discount Senior Unsecured Convertible Promissory Note (incorporated by reference from Exhibit 4.1 to the Company’s Current Report on Form 8-K filed with the SEC on December 5, 2024).
10.13			Securities Purchase Agreement between the Company and JAK Opportunities IX, LLC, dated December 4, 2024 (incorporated by reference from Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on December 5, 2024).
10.14			Registration Rights Agreement between the Company and JAK Opportunities IX, LLC, dated December 4, 2024 (incorporated by reference from Exhibit 10.2 to the Company’s Current Report on Form 8-K filed with the SEC on December 5, 2024).
19.1*			Insider trading policy
21.1*			List of Subsidiaries.
23.1*			Consent of Rose, Snyder & Jacobs LLP
24.1*			Power of Attorney (included on signature page).
31.1*			Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*			Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**			Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**			Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
97.1			Volato Group, Inc. Clawback Policy.
101.INS*			XBRL Instance Document—the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH*			Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents
104*			Cover Page Interactive Data File—the cover page XBRL tags are embedded within the Inline XBRL document contained in Exhibit 101
# indicates management contract or compensatory pan or arrangement
*Filed herewith

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ITEM 16. FORM 10-K SUMMARY

None.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned; thereunto duly authorized.

Date: March 31 12, ~~2025~~2026

Volato Group, Inc.

By: /s/ Matthew Liotta

Name: Matthew Liotta

Title: Chief Executive Officer

POWER OF ATTORNEY

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Matthew Liotta and Mark Heinen, and each of them, his or her true and lawful attorneys-in-fact and agents, each with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to do any and all things and execute any and all instruments that such attorney may deem necessary or advisable under the Securities Exchange Act of 1934, as amended, and any rules, regulations and requirements of the Securities and Exchange Commission in connection with this Annual Report and any and all amendments hereto, as fully and for all intents and purposes as he or she might do or could do in person, and hereby ratifies and confirms all that each of said attorneys-in-fact and agents, or his or her substitute or substitutes may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of Registrant and in the capacities and on the dates indicated.

Name

Title

Date

/s/ Matthew Liotta

Chief Executive Officer and Director

March 3112, ~~2025~~2026

Matthew Liotta

(Principal Executive Officer)

/s/ Mark Heinen

Chief Financial Officer

March 3112, ~~2025~~2026

Mark Heinen

(Principal Financial and Accounting Officer)

/s/ Nicholas Cooper

Director

March 3112, ~~2025~~2026

Nicholas Cooper

/s/ Michael Nichols

Director

March 3112, ~~2025~~2026

Michael Nichols

/s/ Chris Burger

Director

March 3112, ~~2025~~2026

Chris Burger

/s/ Alan Gaines

Director

March 12, 2026

Alan Gaines

8589

Filing Compare · Volato Group, Inc.