Table of Contents
false0001941536--12-312023Q1MTIncludes related party accounts receivable of $321,244 as of March 31, 2023.Includes related party debt of $10,000,000 for the 2022 taxable industrial revenue bond as of March 31, 2023 and December 31, 2022, respectively.Includes related party revenues of $321,244 for the three months ended March 31, 2023.Includes related party interest of approximately $284,000 for the 2022 taxable industrial revenue bond for the three months ended March 31, 2023.Includes related party accounts receivable of $321,244 for the three months ended March 31, 2023.Includes related party interest paid of approximately $575,000 for the 2022 taxable industrial revenue bond for the three months ended March 31, 2023. 0001941536 2023-03-31 0001941536 2022-12-31 0001941536 2023-01-01 2023-03-31 0001941536 2022-01-01 2022-03-31 0001941536 2022-09-30 0001941536 2022-06-30 0001941536 2023-01-24 0001941536 2023-01-24 2023-01-24 0001941536 2022-01-01 2022-09-30 0001941536 2022-01-01 2022-12-31 0001941536 2022-01-01 2022-06-30 0001941536 2023-05-10 0001941536 2022-08-19 0001941536 2022-04-25 2022-04-25 0001941536 2021-12-31 0001941536 2022-03-31 0001941536 baer:TwoThousandAndTwentyTwoTaxableIndustrialRevenueBondMember 2023-01-01 2023-03-31 0001941536 us-gaap:WarrantMember 2023-01-01 2023-03-31 0001941536 us-gaap:CostOfSalesMember us-gaap:AirTransportationEquipmentMember 2023-01-01 2023-03-31 0001941536 us-gaap:SellingGeneralAndAdministrativeExpensesMember us-gaap:AirTransportationEquipmentMember 2023-01-01 2023-03-31 0001941536 us-gaap:AirTransportationEquipmentMember 2023-01-01 2023-03-31 0001941536 us-gaap:LicensingAgreementsMember 2023-01-01 2023-03-31 0001941536 us-gaap:ComputerSoftwareIntangibleAssetMember 2023-01-01 2023-03-31 0001941536 baer:LegacyBridgerSeriesCPreferredSharesOrSeriesAPreferredStockMember 2023-01-01 2023-03-31 0001941536 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-01-01 2023-03-31 0001941536 us-gaap:RetainedEarningsMember 2023-01-01 2023-03-31 0001941536 baer:VikingMember baer:AircraftPurchaseAgreementMember 2023-01-01 2023-03-31 0001941536 baer:SievertConstructionIncMember baer:HangarMember 2023-01-01 2023-03-31 0001941536 baer:PublicWarrantsMember 2023-01-01 2023-03-31 0001941536 baer:PublicWarrantsMember us-gaap:CommonStockMember 2023-01-01 2023-03-31 0001941536 us-gaap:InterestRateSwapMember 2023-01-01 2023-03-31 0001941536 us-gaap:CollaborativeArrangementMember 2023-01-01 2023-03-31 0001941536 us-gaap:AvailableforsaleSecuritiesMember 2023-01-01 2023-03-31 0001941536 us-gaap:WarrantMember baer:PrivatePlacementWarrantsMember 2023-01-01 2023-03-31 0001941536 us-gaap:WarrantMember baer:PublicWarrantsMember 2023-01-01 2023-03-31 0001941536 us-gaap:RestrictedStockUnitsRSUMember 2023-01-01 2023-03-31 0001941536 us-gaap:ValuationTechniqueOptionPricingModelMember 2023-01-01 2023-03-31 0001941536 us-gaap:AdditionalPaidInCapitalMember 2023-01-01 2023-03-31 0001941536 us-gaap:CommonStockMember 2023-01-01 2023-03-31 0001941536 baer:CanadianCitizenMember baer:NorthernFireManagementServicesLLCMember 2023-01-01 2023-03-31 0001941536 baer:BridgerAerospaceGroupLLCMember us-gaap:VariableInterestEntityPrimaryBeneficiaryMember baer:NorthernFireManagementServicesLLCMember 2023-01-01 2023-03-31 0001941536 baer:OneCustomerMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-03-31 0001941536 us-gaap:CustomerConcentrationRiskMember baer:OneCustomerMember us-gaap:AccountsReceivableMember 2023-01-01 2023-03-31 0001941536 baer:FireSuppressionMember 2023-01-01 2023-03-31 0001941536 baer:AerialSurveillanceMember 2023-01-01 2023-03-31 0001941536 baer:OtherServicesMember 2023-01-01 2023-03-31 0001941536 baer:FlightRevenueMember 2023-01-01 2023-03-31 0001941536 baer:StandbyRevenueMember 2023-01-01 2023-03-31 0001941536 baer:OtherRevenueMember 2023-01-01 2023-03-31 0001941536 baer:PermanentLoanAgreementDatedFirstOctoberTwoThousandAndTwentyMember us-gaap:PrimeRateMember 2023-01-01 2023-03-31 0001941536 baer:PermanentLoanAgreementDatedTwentyFirstAugustTwoThousandAndTwentyMember us-gaap:PrimeRateMember 2023-01-01 2023-03-31 0001941536 baer:TaxableIndustrialBondsDatedTwentyFirstJulyTwoThousandAndTwentyTwoMember 2023-01-01 2023-03-31 0001941536 baer:TermLoanAgreementDatedFebruaryThirdTwoThousandAndTwentyMember us-gaap:LondonInterbankOfferedRateLIBORMember 2023-01-01 2023-03-31 0001941536 baer:TermLoanAgreementDatedThirtiethSeptemberTwoThousandAndTwentyNineMember us-gaap:LondonInterbankOfferedRateLIBORMember 2023-01-01 2023-03-31 0001941536 baer:VariousTermLoansAgreementsWithVariousStartAtSeptemberNinthTwoThousandAndTwentyOneMember 2023-01-01 2023-03-31 0001941536 us-gaap:PreferredClassAMember 2023-01-01 2023-03-31 0001941536 baer:YearOneMember baer:BeforeQualifiedPublicOfferingMember baer:LegacyBridgerSeriesCPreferredSharesMember 2023-01-01 2023-03-31 0001941536 baer:LegacyBridgerSeriesCPreferredSharesMember baer:BeforeQualifiedPublicOfferingMember baer:YearTwoMember 2023-01-01 2023-03-31 0001941536 baer:LegacyBridgerSeriesCPreferredSharesMember baer:BeforeQualifiedPublicOfferingMember baer:ThereafterMember 2023-01-01 2023-03-31 0001941536 baer:AfterQualifiedPublicOfferingMember baer:LegacyBridgerSeriesCPreferredSharesMember baer:FirstSixYearsMember 2023-01-01 2023-03-31 0001941536 baer:AfterQualifiedPublicOfferingMember baer:LegacyBridgerSeriesCPreferredSharesMember baer:SeventhYearMember 2023-01-01 2023-03-31 0001941536 baer:AfterQualifiedPublicOfferingMember baer:LegacyBridgerSeriesCPreferredSharesMember baer:ThereafterMember 2023-01-01 2023-03-31 0001941536 baer:ConversionFromSeriesAPreferredStockToCommonStockMember 2023-01-01 2023-03-31 0001941536 baer:LegacyBridgerSeriesCPreferredSharesMember 2023-01-01 2023-03-31 0001941536 baer:TwoThousandAndTwentyTwoBondsMember 2023-01-01 2023-03-31 0001941536 baer:PublicWarrantsMember 2023-01-01 2023-03-31 0001941536 baer:PrivatePlacementWarrantsMember 2023-01-01 2023-03-31 0001941536 baer:PublicAndPrivatePlacementWarrantsMember 2023-01-01 2023-03-31 0001941536 baer:IncentiveUnitsMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2023-01-01 2023-03-31 0001941536 us-gaap:SellingGeneralAndAdministrativeExpensesMember us-gaap:RestrictedStockUnitsRSUMember 2023-01-01 2023-03-31 0001941536 us-gaap:RestrictedStockUnitsRSUMember 2023-01-01 2023-03-31 0001941536 baer:IncentiveUnitsMember baer:TimevestingIncentiveUnitsMember 2023-01-01 2023-03-31 0001941536 baer:ExitVestingIncentiveUnitsMember baer:IncentiveUnitsMember 2023-01-01 2023-03-31 0001941536 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2023-01-01 2023-03-31 0001941536 us-gaap:CostOfSalesMember us-gaap:AirTransportationEquipmentMember 2022-01-01 2022-03-31 0001941536 us-gaap:SellingGeneralAndAdministrativeExpensesMember us-gaap:AirTransportationEquipmentMember 2022-01-01 2022-03-31 0001941536 us-gaap:AirTransportationEquipmentMember 2022-01-01 2022-03-31 0001941536 us-gaap:RetainedEarningsMember 2022-01-01 2022-03-31 0001941536 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-01-01 2022-03-31 0001941536 us-gaap:CollaborativeArrangementMember 2022-01-01 2022-03-31 0001941536 us-gaap:AvailableforsaleSecuritiesMember 2022-01-01 2022-03-31 0001941536 us-gaap:EmployeeStockOptionMember 2022-01-01 2022-03-31 0001941536 us-gaap:CustomerConcentrationRiskMember baer:OneCustomerMember us-gaap:SalesRevenueNetMember 2022-01-01 2022-03-31 0001941536 baer:FireSuppressionMember 2022-01-01 2022-03-31 0001941536 baer:AerialSurveillanceMember 2022-01-01 2022-03-31 0001941536 baer:OtherServicesMember 2022-01-01 2022-03-31 0001941536 baer:FlightRevenueMember 2022-01-01 2022-03-31 0001941536 baer:StandbyRevenueMember 2022-01-01 2022-03-31 0001941536 baer:OtherRevenueMember 2022-01-01 2022-03-31 0001941536 baer:IncentiveUnitsMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2022-01-01 2022-03-31 0001941536 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2022-01-01 2022-03-31 0001941536 us-gaap:PreferredClassAMember 2023-03-31 0001941536 us-gaap:SeriesAPreferredStockMember 2023-03-31 0001941536 baer:AircraftHangarsMember 2023-03-31 0001941536 us-gaap:LicensingAgreementsMember 2023-03-31 0001941536 us-gaap:ComputerSoftwareIntangibleAssetMember 2023-03-31 0001941536 us-gaap:MoneyMarketFundsMember 2023-03-31 0001941536 us-gaap:CommercialPaperMember 2023-03-31 0001941536 us-gaap:AllOtherCorporateBondsMember 2023-03-31 0001941536 baer:GovernmentSecuritiesMember 2023-03-31 0001941536 baer:HangarMember 2023-03-31 0001941536 baer:PrivatePlacementWarrantsMember 2023-03-31 0001941536 baer:PublicWarrantsMember 2023-03-31 0001941536 srt:MaximumMember baer:PublicWarrantsMember 2023-03-31 0001941536 baer:PublicWarrantsMember srt:MinimumMember us-gaap:CommonStockMember 2023-03-31 0001941536 baer:PublicWarrantsMember srt:MaximumMember us-gaap:CommonStockMember 2023-03-31 0001941536 us-gaap:InterestRateSwapMember 2023-03-31 0001941536 baer:FreestandingDerivativeExcessHoldFeePayableMember 2023-03-31 0001941536 baer:LegacyBridgerSeriesAPreferredSharesMember 2023-03-31 0001941536 baer:LegacyBridgerSeriesBPreferredSharesMember 2023-03-31 0001941536 baer:VariousTermLoansAgreementsWithVariousStartAtSeptemberNinthTwoThousandAndTwentyOneMember 2023-03-31 0001941536 baer:TaxableIndustrialBondsDatedTwentyFirstJulyTwoThousandAndTwentyTwoMember 2023-03-31 0001941536 baer:TermLoanAgreementDatedFebruaryThirdTwoThousandAndTwentyMember 2023-03-31 0001941536 baer:TermLoanAgreementDatedThirtiethSeptemberTwoThousandAndTwentyNineMember 2023-03-31 0001941536 baer:PermanentLoanAgreementDatedFirstOctoberTwoThousandAndTwentyMember 2023-03-31 0001941536 baer:PermanentLoanAgreementDatedTwentyFirstAugustTwoThousandAndTwentyMember 2023-03-31 0001941536 baer:VariousTermLoansAgreementsWithVariousStartAtSeptemberNinthTwoThousandAndTwentyOneMember srt:MaximumMember 2023-03-31 0001941536 baer:VariousTermLoansAgreementsWithVariousStartAtSeptemberNinthTwoThousandAndTwentyOneMember srt:MinimumMember 2023-03-31 0001941536 baer:PermanentLoanAgreementDatedFirstOctoberTwoThousandAndTwentyMember us-gaap:PrimeRateMember 2023-03-31 0001941536 baer:PermanentLoanAgreementDatedTwentyFirstAugustTwoThousandAndTwentyMember us-gaap:PrimeRateMember 2023-03-31 0001941536 baer:TermLoanAgreementDatedThirtiethSeptemberTwoThousandAndTwentyNineMember us-gaap:LondonInterbankOfferedRateLIBORMember baer:ThroughThirdQuarterOfOctoberTwoThousandAndTwentyFourMember 2023-03-31 0001941536 baer:TermLoanAgreementDatedThirtiethSeptemberTwoThousandAndTwentyNineMember us-gaap:LondonInterbankOfferedRateLIBORMember baer:ThroughThirdQuarterOfOctoberTwoThousandAndTwentyFiveMember 2023-03-31 0001941536 baer:TermLoanAgreementDatedThirtiethSeptemberTwoThousandAndTwentyNineMember us-gaap:LondonInterbankOfferedRateLIBORMember baer:AfterThirdQuarterOfOctoberTwoThousandAndTwentyFiveMember 2023-03-31 0001941536 us-gaap:CashMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2023-03-31 0001941536 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2023-03-31 0001941536 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2023-03-31 0001941536 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember baer:OtherRestrictedCashMember 2023-03-31 0001941536 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2023-03-31 0001941536 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember baer:PublicWarrantsMember 2023-03-31 0001941536 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember baer:PrivatePlacementWarrantsMember 2023-03-31 0001941536 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:SeriesAPreferredStockMember 2023-03-31 0001941536 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2023-03-31 0001941536 baer:LegacyBridgerSeriesCPreferredSharesMember 2023-03-31 0001941536 us-gaap:PreferredClassAMember srt:MinimumMember 2023-03-31 0001941536 us-gaap:PreferredClassAMember srt:MaximumMember 2023-03-31 0001941536 us-gaap:FairValueInputsLevel2Member baer:LongTermDebtBearingFixedInterestRateMember 2023-03-31 0001941536 us-gaap:FairValueInputsLevel2Member baer:LongTermDebtBearingVariableInterestRateMember 2023-03-31 0001941536 us-gaap:FairValueInputsLevel3Member baer:EmbeddedDerivativeOfLegacyBridgerSeriesCPreferredSharesAndSeriesAPreferredStockMember baer:PercentageIncreaseInTheInterestRateMember 2023-03-31 0001941536 baer:IncentiveUnitsMember baer:TimevestingIncentiveUnitsMember 2023-03-31 0001941536 baer:IncentiveUnitsMember baer:ExitVestingIncentiveUnitsMember 2023-03-31 0001941536 us-gaap:RestrictedStockUnitsRSUMember 2023-03-31 0001941536 baer:SievertConstructionIncMember baer:HangarMember 2023-03-31 0001941536 baer:LegacyBridgerSeriesCPreferredSharesMember 2022-12-31 0001941536 srt:RestatementAdjustmentMember 2022-12-31 0001941536 srt:ScenarioPreviouslyReportedMember 2022-12-31 0001941536 us-gaap:SeriesCPreferredStockMember 2022-12-31 0001941536 srt:ScenarioPreviouslyReportedMember us-gaap:SeriesCPreferredStockMember 2022-12-31 0001941536 baer:CommonClassDMember baer:LegacyBridgerCommonSharesMember 2022-12-31 0001941536 us-gaap:CommonClassCMember baer:LegacyBridgerCommonSharesMember 2022-12-31 0001941536 us-gaap:CommonClassBMember baer:LegacyBridgerCommonSharesMember 2022-12-31 0001941536 baer:LegacyBridgerCommonSharesMember us-gaap:CommonClassAMember 2022-12-31 0001941536 baer:JCICSponsorMember 2022-12-31 0001941536 baer:LegacyBridgerCommonShareholdersMember 2022-12-31 0001941536 us-gaap:LicensingAgreementsMember 2022-12-31 0001941536 us-gaap:ComputerSoftwareIntangibleAssetMember 2022-12-31 0001941536 us-gaap:CommercialPaperMember 2022-12-31 0001941536 us-gaap:MoneyMarketFundsMember 2022-12-31 0001941536 us-gaap:CommercialPaperMember 2022-12-31 0001941536 us-gaap:AllOtherCorporateBondsMember 2022-12-31 0001941536 baer:GovernmentSecuritiesMember 2022-12-31 0001941536 us-gaap:InterestRateSwapMember 2022-12-31 0001941536 baer:LegacyBridgerSeriesAPreferredSharesMember 2022-12-31 0001941536 baer:LegacyBridgerSeriesBPreferredSharesMember 2022-12-31 0001941536 baer:VariousTermLoansAgreementsWithVariousStartAtSeptemberNinthTwoThousandAndTwentyOneMember 2022-12-31 0001941536 baer:TaxableIndustrialBondsDatedTwentyFirstJulyTwoThousandAndTwentyTwoMember 2022-12-31 0001941536 baer:TermLoanAgreementDatedFebruaryThirdTwoThousandAndTwentyMember 2022-12-31 0001941536 baer:TermLoanAgreementDatedThirtiethSeptemberTwoThousandAndTwentyNineMember 2022-12-31 0001941536 baer:PermanentLoanAgreementDatedFirstOctoberTwoThousandAndTwentyMember 2022-12-31 0001941536 baer:PermanentLoanAgreementDatedTwentyFirstAugustTwoThousandAndTwentyMember 2022-12-31 0001941536 us-gaap:CashMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0001941536 us-gaap:CommercialPaperMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0001941536 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0001941536 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0001941536 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0001941536 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember baer:OtherRestrictedCashMember 2022-12-31 0001941536 us-gaap:SeriesCPreferredStockMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0001941536 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0001941536 baer:IncentiveUnitsMember baer:TimevestingIncentiveUnitsMember 2022-12-31 0001941536 baer:IncentiveUnitsMember baer:ExitVestingIncentiveUnitsMember 2022-12-31 0001941536 baer:VikingMember baer:AircraftPurchaseAgreementMember 2022-12-31 0001941536 baer:SievertConstructionIncMember baer:HangarMember 2022-12-31 0001941536 baer:LegacyBridgerMember baer:LegacyBridgerCommonSharesMember 2023-01-24 0001941536 baer:LegacyBridgerMember baer:LegacyBridgerIncentiveUnitsMember 2023-01-24 0001941536 us-gaap:SeriesAPreferredStockMember 2023-01-24 0001941536 baer:PublicWarrantsMember 2023-01-24 0001941536 baer:PrivatePlacementWarrantsMember 2023-01-24 0001941536 baer:JCICPrivatePlacementWarrantsMember 2023-01-24 0001941536 baer:JCICPublicWarrantsMember 2023-01-24 0001941536 us-gaap:PreferredClassAMember 2023-01-24 0001941536 baer:LegacyBridgerSeriesCPreferredSharesMember 2023-01-24 0001941536 baer:LegacyBridgerMember baer:LegacyBridgerSeriesCPreferredSharesMember 2023-01-24 2023-01-24 0001941536 baer:LegacyBridgerMember baer:LegacyBridgerCommonSharesMember 2023-01-24 2023-01-24 0001941536 baer:LegacyBridgerMember baer:LegacyBridgerIncentiveUnitsMember 2023-01-24 2023-01-24 0001941536 baer:LegacyBridgerMember us-gaap:SeriesAPreferredStockMember 2023-01-24 2023-01-24 0001941536 baer:JackCreekInvestmentCorpMember baer:SponsorEarnoutSharesMember 2023-01-24 2023-01-24 0001941536 us-gaap:RestrictedStockUnitsRSUMember 2023-01-24 2023-01-24 0001941536 baer:ConversionOfLegacyBridgerSeriesCPreferredSharesToSeriesAPreferredStockMember 2023-01-24 2023-01-24 0001941536 us-gaap:RestrictedStockUnitsRSUMember srt:MinimumMember 2023-01-24 2023-01-24 0001941536 srt:MaximumMember us-gaap:RestrictedStockUnitsRSUMember 2023-01-24 2023-01-24 0001941536 us-gaap:RestrictedStockUnitsRSUMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2023-01-24 2023-01-24 0001941536 us-gaap:RestrictedStockUnitsRSUMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2023-01-24 2023-01-24 0001941536 srt:ScenarioPreviouslyReportedMember 2022-09-30 0001941536 srt:RestatementAdjustmentMember 2022-09-30 0001941536 us-gaap:SeriesCPreferredStockMember srt:ScenarioPreviouslyReportedMember 2022-09-30 0001941536 us-gaap:SeriesCPreferredStockMember srt:RestatementAdjustmentMember 2022-09-30 0001941536 us-gaap:SeriesCPreferredStockMember 2022-09-30 0001941536 srt:RestatementAdjustmentMember 2022-01-01 2022-12-31 0001941536 srt:ScenarioPreviouslyReportedMember 2022-01-01 2022-12-31 0001941536 srt:ScenarioPreviouslyReportedMember us-gaap:SeriesCPreferredStockMember 2022-01-01 2022-12-31 0001941536 srt:RestatementAdjustmentMember us-gaap:SeriesCPreferredStockMember 2022-01-01 2022-12-31 0001941536 us-gaap:SeriesCPreferredStockMember 2022-01-01 2022-12-31 0001941536 us-gaap:CommonClassAMember 2022-01-01 2022-12-31 0001941536 us-gaap:CommonClassBMember baer:LegacyBridgerCommonSharesMember 2022-01-01 2022-12-31 0001941536 baer:LegacyBridgerCommonSharesMember us-gaap:CommonClassAMember 2022-01-01 2022-12-31 0001941536 us-gaap:CommonClassAMember baer:JCICSponsorAndIndependentDirectorsOfJCICMember 2022-01-01 2022-12-31 0001941536 us-gaap:CommonClassAMember baer:PublicShareholdersMember 2022-01-01 2022-12-31 0001941536 us-gaap:CommonClassAMember baer:LegacyBridgerCommonShareholdersMember 2022-01-01 2022-12-31 0001941536 us-gaap:LicensingAgreementsMember 2022-01-01 2022-12-31 0001941536 us-gaap:ComputerSoftwareIntangibleAssetMember 2022-01-01 2022-12-31 0001941536 us-gaap:InterestRateSwapMember 2022-01-01 2022-12-31 0001941536 baer:OneCustomerMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2022-01-01 2022-12-31 0001941536 baer:IncentiveUnitsMember baer:TimevestingIncentiveUnitsMember 2022-01-01 2022-12-31 0001941536 baer:IncentiveUnitsMember baer:ExitVestingIncentiveUnitsMember 2022-01-01 2022-12-31 0001941536 baer:LegacyBridgerSeriesCPreferredSharesMember 2022-01-01 2022-12-31 0001941536 srt:RestatementAdjustmentMember 2022-01-01 2022-09-30 0001941536 srt:ScenarioPreviouslyReportedMember 2022-01-01 2022-09-30 0001941536 srt:ScenarioPreviouslyReportedMember us-gaap:SeriesCPreferredStockMember 2022-01-01 2022-09-30 0001941536 srt:RestatementAdjustmentMember us-gaap:SeriesCPreferredStockMember 2022-01-01 2022-09-30 0001941536 us-gaap:SeriesCPreferredStockMember 2022-01-01 2022-09-30 0001941536 srt:ScenarioPreviouslyReportedMember 2022-06-30 0001941536 srt:RestatementAdjustmentMember 2022-06-30 0001941536 srt:ScenarioPreviouslyReportedMember us-gaap:SeriesCPreferredStockMember 2022-06-30 0001941536 us-gaap:SeriesCPreferredStockMember 2022-06-30 0001941536 srt:ScenarioPreviouslyReportedMember 2022-01-01 2022-06-30 0001941536 us-gaap:SeriesCPreferredStockMember 2022-01-01 2022-06-30 0001941536 us-gaap:SeriesCPreferredStockMember srt:RestatementAdjustmentMember 2022-01-01 2022-06-30 0001941536 us-gaap:SeriesCPreferredStockMember srt:ScenarioPreviouslyReportedMember 2022-01-01 2022-06-30 0001941536 srt:RestatementAdjustmentMember 2022-01-01 2022-06-30 0001941536 baer:LegacyBridgerSeriesBPreferredSharesMember baer:SharesNotRedeemedMember 2022-03-31 0001941536 baer:LegacyBridgerSeriesBPreferredSharesMember baer:SharesRedeemedMember 2022-03-31 0001941536 baer:LegacyBridgerSeriesBPreferredSharesMember 2022-03-31 0001941536 us-gaap:CommonClassBMember baer:LegacyBridgerCommonSharesMember 2021-12-31 0001941536 baer:LegacyBridgerSeriesBPreferredSharesMember 2021-12-31 0001941536 baer:LegacyBridgerSeriesAPreferredSharesMember 2021-12-31 0001941536 baer:PermanentLoanAgreementDatedFirstOctoberTwoThousandAndTwentyMember baer:LiveOakBankMember us-gaap:PrimeRateMember 2021-01-21 0001941536 baer:SupplementalStructuralLifeManagementProgramMember 2021-01-21 0001941536 baer:TaxableIndustrialBondsTwoThousandAndTwentyTwoMember 2022-08-19 0001941536 us-gaap:SeriesCPreferredStockMember 2022-04-09 0001941536 baer:LegacyBridgerSeriesCPreferredSharesMember baer:JPMorganChaseFundingIncMember 2022-04-09 0001941536 baer:LegacyBridgerSeriesCPreferredSharesMember baer:FreestandingDerivativeMember 2022-04-09 0001941536 us-gaap:CollaborativeArrangementMember 2022-02-22 2022-02-22 0001941536 baer:IncentiveUnitsMember baer:TimevestingIncentiveUnitsMember 2021-01-01 2021-12-31 0001941536 baer:IncentiveUnitsMember baer:ExitVestingIncentiveUnitsMember 2021-01-01 2021-12-31 0001941536 baer:LegacyBridgerSeriesBPreferredSharesMember 2022-04-25 0001941536 baer:LegacyBridgerSeriesCPreferredSharesMember 2022-04-25 0001941536 baer:PermanentLoanAgreementDatedTwentyFirstAugustTwoThousandAndTwentyMember baer:LiveOakBankMember us-gaap:PrimeRateMember 2020-08-21 0001941536 baer:LiveOakBankMember us-gaap:PrimeRateMember baer:PermanentLoanAgreementDatedTwentyFirstAugustTwoThousandAndTwentyMember 2020-08-21 2020-08-21 0001941536 baer:PermanentLoanAgreementDatedFirstOctoberTwoThousandAndTwentyMember us-gaap:PrimeRateMember baer:LiveOakBankMember 2020-10-01 0001941536 baer:PermanentLoanAgreementDatedFirstOctoberTwoThousandAndTwentyMember baer:LiveOakBankMember us-gaap:PrimeRateMember 2020-10-01 2020-10-01 0001941536 us-gaap:LondonInterbankOfferedRateLIBORMember baer:TermLoanAgreementDatedFebruaryThirdTwoThousandAndTwentyMember baer:RMBMember 2020-02-03 0001941536 us-gaap:LondonInterbankOfferedRateLIBORMember baer:TermLoanAgreementDatedFebruaryThirdTwoThousandAndTwentyMember baer:RMBMember 2020-02-03 2020-02-03 0001941536 baer:TermLoanAgreementDatedThirtiethSeptemberTwoThousandAndTwentyNineMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-09-30 0001941536 baer:TermLoanAgreementDatedThirtiethSeptemberTwoThousandAndTwentyNineMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-09-30 2019-09-30 0001941536 baer:TaxableIndustrialDevelopmentRevenueBondsTwoThousandAndTwentyOneMember 2021-02-24 2021-02-24 0001941536 baer:TaxableIndustrialDevelopmentRevenueBondsTwoThousandAndTwentyOneMember 2021-02-24 0001941536 baer:TaxableIndustrialBondsDatedTwentyFirstJulyTwoThousandAndTwentyTwoMember 2022-07-21 0001941536 us-gaap:DebtInstrumentRedemptionPeriodOneMember baer:TaxableIndustrialBondsDatedTwentyFirstJulyTwoThousandAndTwentyTwoMember 2022-07-21 0001941536 us-gaap:DebtInstrumentRedemptionPeriodTwoMember baer:TaxableIndustrialBondsDatedTwentyFirstJulyTwoThousandAndTwentyTwoMember 2022-07-21 0001941536 us-gaap:DebtInstrumentRedemptionPeriodThreeMember baer:TaxableIndustrialBondsDatedTwentyFirstJulyTwoThousandAndTwentyTwoMember 2022-07-21 0001941536 baer:NewShortTermLoanToFinanceAviationInsurancePremiumMember 2021-11-18 0001941536 srt:MinimumMember baer:VariousTermLoansAgreementsWithVariousStartAtSeptemberNinthTwoThousandAndTwentyOneMember 2021-09-09 0001941536 srt:MaximumMember baer:VariousTermLoansAgreementsWithVariousStartAtSeptemberNinthTwoThousandAndTwentyOneMember 2021-09-09 0001941536 srt:MinimumMember baer:VariousTermLoansAgreementsWithVariousStartAtSeptemberNinthTwoThousandAndTwentyOneMember 2021-09-09 2021-09-09 0001941536 srt:MaximumMember baer:VariousTermLoansAgreementsWithVariousStartAtSeptemberNinthTwoThousandAndTwentyOneMember 2021-09-09 2021-09-09 0001941536 baer:VariousTermLoansAgreementsWithVariousStartAtSeptemberNinthTwoThousandAndTwentyOneMember 2021-09-09 2021-09-09 0001941536 baer:VariousTermLoanAgreementsBeginningWithTwentyFirstOfAprilTwoThousandAndTwentyTwoMember srt:MinimumMember 2022-04-21 0001941536 baer:VariousTermLoanAgreementsBeginningWithTwentyFirstOfAprilTwoThousandAndTwentyTwoMember srt:MaximumMember 2022-04-21 0001941536 baer:VariousTermLoanAgreementsBeginningWithTwentyFirstOfAprilTwoThousandAndTwentyTwoMember 2022-04-21 0001941536 baer:VariousTermLoanAgreementsBeginningWithTwentyFirstOfAprilTwoThousandAndTwentyTwoMember 2022-04-21 2022-04-21 0001941536 baer:VariousTermLoanAgreementsBeginningWithTwentyFirstOfAprilTwoThousandAndTwentyTwoMember 2022-04-21 2022-12-31 0001941536 baer:TaxableIndustrialBondsDatedTwentyFirstJulyTwoThousandAndTwentyTwoMember 2022-07-21 2022-07-21 0001941536 baer:TaxableIndustrialDevelopmentRevenueBondsTwoThousandAndTwentyOneMember us-gaap:OtherNonoperatingIncomeExpenseMember 2022-07-21 2022-07-21 0001941536 baer:TwoThousandAndTwentyTwoBondsMember 2022-07-21 2022-07-21 0001941536 baer:LegacyBridgerSeriesAPreferredSharesMember 2022-07-21 2022-07-21 0001941536 baer:LegacyBridgeSeriesA1PreferredStockMember 2022-07-21 2022-07-21 0001941536 baer:TaxableIndustrialBondsDatedTwentyFirstJulyTwoThousandAndTwentyTwoMember 2022-08-10 2022-08-10 0001941536 baer:TwoThousandAndTwentyTwoBondsMember 2022-08-10 2022-08-10 0001941536 baer:LegacyBridgeSeriesA2PreferredStockMember 2022-08-10 2022-08-10 0001941536 baer:TaxableIndustrialBondsDatedTwentyFirstJulyTwoThousandAndTwentyTwoMember 2022-07-21 2022-12-31 0001941536 baer:LegacyBridgerSeriesCPreferredSharesMember 2022-04-25 2022-04-25 0001941536 baer:LegacyBridgerSeriesAPreferredSharesMember 2022-04-25 2022-04-25 0001941536 baer:LegacyBridgeSeriesA1PreferredStockMember 2022-04-25 2022-04-25 0001941536 baer:LegacyBridgeSeriesA2PreferredStockMember 2022-04-25 2022-04-25 0001941536 baer:LegacyBridgerSeriesCPreferredSharesMember baer:FreestandingDerivativeMember 2023-03-15 0001941536 baer:TwoThousandAndTwentyTwoBondsMember 2022-07-21 2022-08-10 0001941536 us-gaap:SubsequentEventMember 2023-04-30 0001941536 srt:ChiefExecutiveOfficerMember baer:MountainAirLLCMember 2022-11-07 2022-11-07 0001941536 baer:MountainAirLLCMember srt:AffiliatedEntityMember 2022-11-07 2022-11-07 0001941536 baer:MountainAirLLCMember baer:BridgeAviationLLCMember us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2022-11-07 2022-11-07 0001941536 us-gaap:SubsequentEventMember baer:TwinCommanderSurveillanceMember 2023-04-07 2023-04-07 0001941536 baer:LegacyBridgerSeriesCPreferredSharesOrSeriesAPreferredStockMember 2022-12-31 0001941536 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-12-31 0001941536 us-gaap:RetainedEarningsMember 2022-12-31 0001941536 us-gaap:AdditionalPaidInCapitalMember 2022-12-31 0001941536 us-gaap:CommonStockMember 2022-12-31 0001941536 baer:LegacyBridgerSeriesCPreferredSharesOrSeriesAPreferredStockMember 2023-03-31 0001941536 us-gaap:RestrictedStockUnitsRSUMember 2022-12-31 0001941536 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-03-31 0001941536 us-gaap:RetainedEarningsMember 2023-03-31 0001941536 us-gaap:AdditionalPaidInCapitalMember 2023-03-31 0001941536 us-gaap:CommonStockMember 2023-03-31 0001941536 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-12-31 0001941536 us-gaap:RetainedEarningsMember 2021-12-31 0001941536 us-gaap:AdditionalPaidInCapitalMember 2021-12-31 0001941536 us-gaap:CommonStockMember 2021-12-31 0001941536 baer:LegacyBridgerSeriesAPreferredSharesMember 2022-03-31 0001941536 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-03-31 0001941536 us-gaap:RetainedEarningsMember 2022-03-31 0001941536 us-gaap:AdditionalPaidInCapitalMember 2022-03-31 0001941536 us-gaap:CommonStockMember 2022-03-31 0001941536 baer:IncentiveUnitsMember baer:TimevestingIncentiveUnitsMember 2021-12-31 0001941536 baer:IncentiveUnitsMember baer:ExitVestingIncentiveUnitsMember 2021-12-31 iso4217:USD xbrli:shares xbrli:pure utr:Year utr:Day utr:Month baer:Aircrafts iso4217:USD xbrli:shares baer:Percentage
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
 
FORM
10-Q
 
 
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2023
OR
 
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:
001-41603
 
 
BRIDGER AEROSPACE GROUP HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
 
 
 
Delaware
 
88-3599336
(State or Other Jurisdiction of
Incorporation or Organization)
 
(I.R.S. Employer
Identification No.)
90 Aviation Lane
Belgrade, MT
 
59714
(Address of Principal Executive Offices)
 
(Zip code)
(406)
813-0079
(Registrant’s telephone number, including area code)
 
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
 
Trading
symbol(s)
 
Name of each exchange
on which registered
Common Stock, $0.0001 par value per share
 
BAER
 
The Nasdaq Stock Market LLC
Warrants, each whole warrant exercisable for one share of Common Stock at an exercise price of $11.50 per share
 
BAERW
 
The Nasdaq Stock Market LLC
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  ☒    No  ☐
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  ☒    No  ☐
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.  
Indicate by check mark whether the registrant is a shell company (as defined in Rule
12b-2
of the Exchange Act).    Yes  ☐    No  
As of May 10, 2023, there were 43,769,290 shares of the registrant’s common stock, par value $0.0001 per share, issued and outstanding.
 
 
 


Table of Contents
P3YP3DP3D
TABLE OF CONTENTS
 
        
Page
 
Part I
       2  
     
Item 1.
       2  
     
         2  
     
         3  
     
         4  
     
         5  
     
         6  
     
         7  
     
Item 2.
       39  
     
Item 3.
       56  
     
Item 4.
       57  
     
Part II
       58  
     
Item 1.
       58  
     
Item 1A.
       58  
     
Item 6.
       59  
 
1

Table of Contents
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements.
BRIDGER AEROSPACE GROUP HOLDINGS, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in U.S. dollars)
 
    
As of

March 31, 2023
   
As of

December 31, 2022
 
 
ASSETS
                
Current assets:
                
Cash and cash equivalents
   $ 2,290,244     $ 30,162,475  
Restricted cash
     12,398,725       12,297,151  
Investments in marketable securities
     30,322,527       54,980,156  
Accounts receivable
1
     367,336       28,902  
Aircraft support parts
     434,894       1,761,270  
Prepaid expenses and other current assets
     3,076,473       1,835,032  
Deferred offering costs
     —         5,800,144  
    
 
 
   
 
 
 
Total current assets
     48,890,199       106,865,130  
Property, plant and equipment, net
     203,422,599       192,091,413  
Intangible assets, net
     181,783       208,196  
Goodwill
     2,457,937       2,457,937  
Other noncurrent assets
     6,739,998       4,356,225  
    
 
 
   
 
 
 
Total assets
   $ 261,692,516     $ 305,978,901  
    
 
 
   
 
 
 
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ DEFICIT
                
Current liabilities:
                
Accounts payable
   $ 3,503,466     $ 3,170,354  
Accrued expenses and other current liabilities
     13,063,960       18,669,572  
Operating
right-of-use
current liability
     22,126       21,484  
Current portion of long-term debt, net of debt issuance costs
     2,446,320       2,445,594  
    
 
 
   
 
 
 
Total current liabilities
     19,035,872       24,307,004  
Long-term accrued expenses and other noncurrent liabilities
     5,804,275       45,659  
Operating
right-of-use
noncurrent liability
     745,989       754,673  
Long-term debt, net of debt issuance costs
2
     205,241,626       205,471,958  
    
 
 
   
 
 
 
Total liabilities
   $ 230,827,762     $ 230,579,294  
    
 
 
   
 
 
 
COMMITMENTS AND CONTINGENCIES
        
MEZZANINE EQUITY
                
Series A Preferred Stock, $0.0001 par value; 315,789.473684 shares authorized, issued and outstanding at March 31, 2023
 
 
336,933,387
 
 
 
 
Legacy Bridger Series C Preferred Shares,
 
$0.001 par value; 315,789.473684 shares authorized, issued and outstanding at December 31, 2022
     —         489,021,545  
STOCKHOLDERS’ DEFICIT
                
Common Stock, 
$0.0001 par value; 1,000,000,000
shares authorized; 43,769,290
 
shares issued and outstanding
at March 31, 2023; 39,081,744 shares issued and outstanding at December 31, 2022
     4,832       3,908  
Additional
paid-in
capital
     73,406,859        
Accumulated deficit
     (381,032,705 )       (415,304,343 )
Accumulated other comprehensive income
     1,552,381       1,678,497  
    
 
 
   
 
 
 
Total stockholders’ deficit
     (306,068,633     (413,621,938 )
    
 
 
   
 
 
 
Total liabilities, mezzanine equity and stockholders’ deficit
   $ 261,692,516     $ 305,978,901  
    
 
 
   
 
 
 
 
1
Includes related party accounts receivable of $321,244 as of March 31, 2023.
2
Includes related party
debt
of $10,000,000
for the 2022 taxable industrial revenue bond as of March 31, 2023 and December 31, 2022, respectively. 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
 
2

Table of Contents
BRIDGER AEROSPACE GROUP HOLDINGS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(All Amounts in U.S. dollars)
 
 
  
For the three months ended

March 31,
 
 
  
2023
 
 
2022
 
Revenues
1
   $ 365,373     $ 69,292  
Cost of revenues:
                
Flight operations
     3,733,261       3,665,352  
Maintenance
     3,515,451       2,861,987  
    
 
 
   
 
 
 
Total cost of revenues
     7,248,712       6,527,339  
    
 
 
   
 
 
 
Gross loss
     (6,883,339     (6,458,047
Selling, general and administrative expense
     33,228,491       4,841,259  
    
 
 
   
 
 
 
Operating loss
     (40,111,830     (11,299,306
Interest expense
2
     (5,664,545     (3,714,546
Other income
     1,091,437       140,843  
    
 
 
   
 
 
 
Net loss
   $ (44,684,938   $ (14,873,009
    
 
 
   
 
 
 
Series A Preferred Stock – adjustment for deemed dividend upon Closing
  
$

(48,300,000 )  
$
—    
Series A Preferred Stock – adjustment to eliminate 50% multiplier
 
$

156,362,597

 
 
$
—  
 
Series A Preferred Stock – adjustment to maximum redemption value
 
$
(4,274,439

)
 
$
—  
 
Legacy Bridger Series A Preferred Shares – adjustment for redemption, extinguishment and accrued interest
  
$
—      
$
(4,339,767
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to Common stockholders – basic and diluted
   $ 59,103,220     $ (19,212,776
    
 
 
   
 
 
 
Net income (loss) per Common Stock – basic
   $ 1.36     $ (0.50
Net income (loss) per Common Stock – diluted
   $ 0.79     $ (0.50
Weighted average Common Stock outstanding – basic
     43,488,468       38,770,646  
Weighted average Common Stock outstanding – diluted
     74,986,752       38,770,646  
 
1
Includes related party revenues of $321,244 for the three months ended March 31, 2023.
2
Includes related party interest of approximately $284,000
 for the
2022 taxable industrial revenue bond for the three months ended March 31, 2023. 
 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
 
3

Table of Contents
BRIDGER AEROSPACE GROUP HOLDINGS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(All Amounts in U.S. dollars)
 
    
For the three months ended

March 31,
 
    
2023
   
2022
 
Net loss
   $ (44,684,938   $ (14,873,009
Other comprehensive (loss) income, net of tax:
    
Foreign currency translation adjustment
     192       (287
Unrealized (loss) gain on derivative instruments
     (271,801     674,381  
Unrealized gain on investments in marketable securities
     318,645           
Reclassification of realized gains on investments in marketable securities to earnings
     (173,152         
  
 
 
   
 
 
 
Total other comprehensive (loss) income, net of tax
     (126,116     674,094  
  
 
 
   
 
 
 
Comprehensive loss
   $ (44,811,054   $ (14,198,915
  
 
 
   
 
 
 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
 
4

Table of Contents
BRIDGER AEROSPACE GROUP HOLDINGS, INC.
UNAUDITED CONDENSED CONSOLIDATED STOCKHOLDERS’ DEFICIT
(All Amounts in U.S. dollars, except share amounts)
 
 
 
Legacy Bridger Series A Preferred
Shares
 
 
Legacy Bridger
Series B Preferred
Shares
 
 
Legacy Bridger
Series C Preferred
Shares / Series A
Preferred Stock
 
 
Common Stock
 
 
Additional
Paid-in

Capital
 
 
Accumulated
Deficit
 
 
Accumul

ated

Other
Compreh

ensive
Income
 
 
Total
Stockholders’
Deficit
 
 
 
Share
 
 
Value
 
 
Share
 
 
Value
 
 
Share
 
 
Value
 
 
Share
 
 
Value
 
Balance at December 31, 2021
 
 
 10,500,000
 
 
$
1,050
 
 
 
60,000,000
 
 
$
6,000
 
 
 
—  
 
 
$
—  
 
 
 
39,081,744
 
 
$
3,908
 
 
$
 
 
 
$
(84,843,803
)
 
$
24,706
 
 
$
(84,815,189
Liquidation preference on
 
Legacy Bridger
Series
 
A Preferred Shares

 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(4,339,767
)

 
 
—  
 
 
 
(4,339,767
Unrealized gain on derivative instruments
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
674,381
 
 
 
674,381
 
Foreign currency translation adjustment
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(287
 
 
(287
Stock based
 
compensation
 
attributable to
Legacy
 
Bridger holders prior to
 
reverse
recapitalization
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
2,558
 
 
 
—  
 
 
 
2,558
 
Net loss
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(14,873,009
)
 
 
—  
 
 
 
(14,873,009
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at March 31,
 
2022
 
 
10,500,000
 
 
$
1,050
 
 
 
60,000,000
 
 
$
6,000
 
 
 
—  
 
 
$
—  
 
 
 
39,081,744
 
 
$
3,908
 
 
$
 
 
$
(104,054,021
)
 
$
698,800
 
 
$
(103,351,313
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31,
 
2022
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
315,789
 
 
$
489,021,545
 
 
 
39,081,744
 
 
$
3,908
 
 
$
 
 
$
(415,304,343
)
 
$
1,678,497
 
 
$
(413,621,938
Unrealized loss on derivative instruments
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(271,801
 
 
(271,801
Unrealized gain on investment in marketable
securities
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
318,645
 
 
 
318,645
 
Reclassification of realized gains on
investments in marketable securities to
earnings
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(173,152
 
 
(173,152
Foreign currency translation adjustment
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
192
 
 
 
192
 
Net loss
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(44,684,938
)
 
 
—  
 
 
 
(44,684,938
Effect of the Closing

 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(156,362,597
 
 
4,687,546
 
 
 
684
 
 
 
 
52,084,522
 
 
 
78,956,576
 
 
 
—  
 
 
 
131,041,782
 
Series A Preferred Stock adjustment to
 
maximum redemption
 
value
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
4,274,439
 
 
 
—  
 
 
 
—  
 
 
 
(4,274,439
)
 
 
 
 
 
—  
 
 
 
(4,274,439
Stock based
 
compensation after
 
reverse
recapitalization
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
2,400,354
 
 
 
240
 
 
 
25,596,776
 
 
 
—  
 
 
 
—  
 
 
 
25,597,016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at March 31,
 
2023
 
 
—  
 
 
$
—  
 
 
$
—  
 
 
$
—  
 
 
 
315,789
 
 
$
 
336,933,387
 
 
 
46,169,644
 
 
$
4,832
 
 
$
73,406,859
 
 
$
(381,032,705
 
$
1,552,381
 
 
$
(306,068,633
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
 
5

Table of Contents
BRIDGER AEROSPACE GROUP HOLDINGS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(All Amounts in U.S. dollars)
 
    
For the three months ended March 31,
 
    
2023
   
2022
 
Cash Flows from Operating Activities:
                
Net loss
   $ (44,684,938 )   $ (14,873,009
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
                
(Gain) loss on sale of fixed assets
     (1,459 )     781,492  
Depreciation and amortization
     1,751,045       1,266,922  
Stock based compensation expense
     25,597,016       2,558  
Change in fair value of the Warrants
 
 
(1,599,000
)
 
 
 
Change in fair value of freestanding derivative
 
 
50,559
 
 
 
 
Amortization of debt issuance costs
     239,319       44,866  
Interest accrued on Legacy Bridger Series B Preferred Shares
     —         2,857,921  
Change in fair value of Legacy Bridger Series C Preferred Shares
     (345,585     —    
Realized gain on investments in marketable securities
     (258,618     —    
Changes in operating assets and liabilities
                
Accounts receivable
1
     (338,434 )     34,992  
Aircraft support parts
     1,326,376       138,699  
Prepaid expense and other current and noncurrent assets
     (3,897,015     556,422  
Accounts payable, accrued expenses and other liabilities
     (14,491,847 )     1,771,711  
    
 
 
   
 
 
 
Net cash used in operating activities
     (36,652,581 )     (7,417,426
    
 
 
   
 
 
 
Cash Flows from Investing Activities:
                
Investments in construction in progress – buildings
     (1,045,600     (177,583
Proceeds from sales and maturities of marketable securities
     25,061,740       —    
Sale of property, plant and equipment
     113,659       286,400  
Purchases of property, plant and equipment
     (11,170,664     (2,460,944
    
 
 
   
 
 
 
Net cash provided by (used in) investing activities
     12,959,135       (2,352,127
    
 
 
   
 
 
 
Cash Flows from Financing Activities:
                
Payment of finance lease liability
     (8,440 )     —    
Proceeds from the Closing
     3,193,536       —    
Costs incurred related to the Closing
     (6,793,574     —    
Borrowings from various First Interstate Bank vehicle loans
     —         63,070  
Repayments on debt
     (468,925     (477,671
    
 
 
   
 
 
 
Net cash used in financing activities
     (4,077,403     (414,601
    
 
 
   
 
 
 
Effects of exchange rate changes
     192       (287
Net change in cash, cash equivalents and restricted cash
     (27,770,657     (10,184,441
Cash, cash equivalents and restricted cash – beginning of the period
     42,459,626       17,261,132  
    
 
 
   
 
 
 
Cash, cash equivalents and restricted cash – end of the period
   $ 14,688,969     $ 7,076,691  
    
 
 
   
 
 
 
Less: Restricted cash – end of the period
     12,398,725       3,452,932  
    
 
 
   
 
 
 
Cash and cash equivalents – end of the period
   $ 2,290,244     $ 3,623,759  
    
 
 
   
 
 
 
Supplemental disclosure of non-cash operating and financing activities
                
Assumption of Jack Creek liabilities
  
$
7,463,673    
$
—    
Recognition of warrant liabilities
  
$
5,863,000    
$
—    
Recognition of Deferred underwriting fee
  
$
1,500,000    
$
—    
Supplemental cash flow information
                
Interest paid
2
   $ 10,311,545     $ 3,715,257  
Fixed assets in accounts payable
   $ 1,468,890     $ 2,640,384  
Conversion of Promissory Note to Common Stock

 
$
897,400

 
 
$
—  
 
Series A Preferred Stock – adjustment for deemed dividend upon Closing

  
$
48,300,000    
$
—    
Series A Preferred Stock – adjustment to eliminate 50% multiplier

  
$
156,362,597

   
$
 
Series A Preferred Stock - adjustment to maximum redemption value

  
$
4,274,439    
$
—    
Legacy Bridger Series A Preferred Shares – adjustment for redemption, extinguishment and accrued interest

 
$
—  
 
 
$
4,339,767

 
 
1
Includes related party accounts receivable of $321,244
 
for the three months ended March 31, 2023.
2
Includes related party interest paid of approximately $
575,000
 for the 2022 taxable industrial revenue bond for the three months ended March 31, 2023. 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements
.
 
6

Table of Contents
BRIDGER AEROSPACE GROUP HOLDINGS, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in U.S. dollars, except as stated)
Note 1 – Organization and Basis of Presentation
Nature of Business
Bridger Aerospace Group Holdings, Inc. and its subsidiaries (“Bridger”, “the Company,” “we,” “us” or “our”) provide aerial wildfire management, relief and suppression and delivery of firefighting services using next generation technology and sustainable and environmentally safe firefighting methods.
As of March 31, 2023, the Company owns 
18
 
aircraft, including 5 Twin Commander surveillance platforms, 4 Quest Kodiaks, 6 Viking CL415EAFs, 2 Aurora eVOTL Skiron and 1 Pilatus PC-12. 
Basis of Presentation
The unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”). The unaudited condensed consolidated financial statements include the financial statements of the Company, all entities that are wholly-owned by the Company and all entities in which the Company has a controlling financial interest.
Reverse Recapitalization
On January 24, 2023, (the “Closing Date”), Jack Creek Investment Corp (“JCIC”) completed the reverse recapitalization (the “Closing” and the
“Reverse Recapitalization”) with the Company’s predecessor, Bridger Aerospace Group Holdings, LLC and its subsidiaries (collectively, “Legacy Bridger”), which operated the majority of the historical business and was identified as the acquirer and predecessor upon the consummation of the transactions contemplated by the agreement and plan of merger (the “Transaction Agreements”) entered into on August 3, 2022. On the Closing Date, pursuant to the Transaction Agreements, JCIC and Legacy Bridger became wholly owned subsidiaries of a new public entity that was renamed Bridger Aerospace Group Holdings, Inc, and JCIC shareholders and Legacy Bridger equity holders converted their equity ownership in JCIC and Legacy Bridger, respectively, into equity ownership in Bridger.
Upon the consummation of the Reverse Recapitalization, Bridger issued Common Stock to the Legacy Bridger equity holders and Series A Preferred Stock (as defined below) as summarized below:
 
   
the surrender and exchange of all 606,061
Legacy Bridger incentive units (“Incentive Units”) into
 583,308
shares of Bridger’s common stock, par value $0.0001, (“Common Stock”) at a deemed value of
 $10.00 per share as adjusted by the per share
C
ommon
S
tock consideration of approximately 0.96246 (the “Exchange Ratio”), rounded down to the nearest share for each holder;
 
   
the direct or indirect surrender and exchange of the remaining 40,000,000 issued and outstanding shares of Legacy Bridger common shares (excluding Incentive Units) into 38,498,436 shares of
C
ommon
S
tock at a deemed value of $10.00 per share as adjusted by the Exchange Ratio, rounded down to the nearest share for each holder; and
 
   
the surrender and exchange of all 315,789.473684
 
issued and outstanding Series C preferred shares of Legacy Bridger (the “Legacy Bridger Series C Preferred Shares”), which were surrendered and exchanged on a one-to-one basis in connection with the Reverse Recapitalization into
 
315,789.473684
 
shares of preferred stock of Bridger that have the rights, powers, designations, preferences, and qualifications, limitations and restrictions set forth in Section 4.5 of the Amended and Restated Certificate of Incorporation (the “Series A Preferred Stock”). The Series A Preferred Stock are convertible at the election of the holders into shares of Common Stock, without the payment of additional consideration by the holders into such number of shares of Common Stock as determined by dividing the original issue price, plus accrued interest by a conversion price equal to $11 at the time of conversion. 
Other related events occurred in connection with the Reverse Recapitalization, are summarized below:
 
   
the filing and effectiveness of the Amended and Restated Certificate of Incorporation of Bridger and the effectiveness of the Amended and Restated Bylaws of Bridger, each of which occurred immediately prior to the Closing;
 
   
the adoption and assumption of the 2023 Omnibus Incentive Plan and any grants or awards issued thereunder and adoption of the 2023 Employee Stock Purchase Plan upon the Closing to grant equity awards to Bridger employees; and 
 
   
during the period from the Closing until five years following the Closing, JCIC subjected 
20% of JCIC’s issued and outstanding common stock (“Sponsor Earnout Shares”), comprised of two separate tranches of 50% of the Sponsor Earnout Shares per tranche, to potential forfeiture to Bridger for no consideration until the occurrence (or deemed occurrence) of certain triggering events.
 
7

Table of Contents
BRIDGER AEROSPACE GROUP HOLDINGS, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in U.S. dollars, except as stated)
 
Immediately after giving effect to the Transaction Agreements, the following were outstanding:
 
   
43,769,290
 
shares of Common Stock;
 
   
315,789.473684
shares of Bridger Series A Preferred Stock; 
 
   
9,400,000
 
private placement warrants (“Private Placement Warrants”) to purchase shares of Common Stock at an exercise price of
 
$11.50 per share
;
 
   
17,250,000
 
public warrants (“Public Warrants”) to purchase shares of Common Stock at an exercise price of $
11.50 per
 
share
;
 
a
nd
 
   
6,581,497
restricted stock units issued to the executives and senior management of the Company.
In connection with the Reverse Recapitalization, the Company paid transaction costs of $
10,302 
thousand as of the Closing.
The transactions contemplated by the Transaction Agreements were accounted for as a reverse recapitalization in accordance with GAAP. Under this method of accounting, JCIC was treated as the “acquired” company for financial reporting purposes. Accordingly, for accounting purposes, the financial statements of Bridger represent a continuation of the financial statements of Legacy Bridger with the Reverse Recapitalization treated as the equivalent of Legacy Bridger issuing stock for the net assets of JCIC, accompanied by a recapitalization. The net assets of JCIC will be stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Reverse Recapitalization will be those of Legacy Bridger in future reports of Bridger.
Legacy Bridger has been determined to be the accounting acquirer based on evaluation of the following facts and circumstances:
 
   
Legacy Bridger equity holders have a relative majority of the voting power of Bridger;

 
Bridger’s board of directors (the “Board”) has nine (9) members, and representatives or designees of the Legacy Bridger equity holders comprise the majority of the members of the Board;
 
   
Legacy Bridger’s senior management comprise the senior management roles and be responsible for the
day-to-day
operations of Bridger;
 
   
Bridger assumed Legacy Bridger’s name of business;
 
   
The strategy and operations of Bridger continue Legacy Bridger’s former strategy and operations; and
 
   
The Reverse Recapitalization created an operating public company, with management continuing to use Legacy Bridger operations to grow the business.
The Sponsor Earnout Shares are determined to be equity classified instruments of Bridger and the Public Warrants and Private Placement Warrants are determined to remain liability classified instruments upon the Closing.
In accordance with guidance applicable to these circumstances, the equity structure has been recast in all comparative periods up to the Closing to reflect the number of shares of Common Stock issued to Legacy Bridger’s stockholders in connection with the Reverse Recapitalization. As such, the shares and corresponding capital amounts and earnings per share related to Legacy Bridger’s common stock prior to the Reverse Recapitalization have been retroactively recasted as shares of Common Stock using the Exchange Ratio.
On January 25, 2023, shares of the Company’s Common Stock began trading on the Nasdaq Global Market under the ticker symbol “BAER.”
 
8

Table of Contents
BRIDGER AEROSPACE GROUP HOLDINGS, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in U.S. dollars, except as stated)
 
Liquidity
The Company had $2,290 thousand and $30,162 thousand of cash and cash equivalents as of March 31, 2023 and December 31, 2022, respectively. The Company had $30,323 thousand and $54,980 thousand of investments in debt securities classified as
available-for-sale
with short-term maturities of less than one year and carried at fair value as of March 31, 2023 and December 31, 2022, respectively.
The Company has entered into various term loan agreements and other long-term debt to fund the purchase of aircraft, finance the construction of aircraft hangars and to supplement its cash balance. As of March 31, 2023, the Company has $2,446 thousand of current portion of long-term debt, net of debt issuance costs. As of March 31, 2023, future contractual payments related to the construction of the third hangar are $2,467 thousand for the next twelve months.
The Company believes it will be sufficiently funded for its short-term liquidity needs and the execution of its business plan for at least 12 months following the date at which the unaudited condensed consolidated financial statements were filed. As of April 30, 2023, the Company has cash and cash equivalents of
 
$3,721 
thousand, restricted cash of
 
$12,437 
thousand and investments in debt securities classified as available-for-sale of
$24,591 

t
housand.
Note 2 - Summary of Significant Accounting Policies
Principles of Consolidation
The Company consolidates those entities in which it, through the existing owners, has control over significant operating, financial or investing decisions of the entity. All significant intercompany balances and transactions have been eliminated in consolidation.
Variable Interest Entities
The Company follows ASC
810-10-15
guidance with respect to accounting for variable interest entities (“VIE”). These entities do not have sufficient equity at risk to finance their activities without additional subordinated financial support from other parties or whose equity investors lack any of the characteristics of a controlling financial interest. A variable interest is an investment or other interest that will absorb portions of a VIE’s expected losses or receive portions of its expected returns and are contractual, ownership or pecuniary in nature and that change with changes in the fair value of the entity’s net assets. A reporting entity is the primary beneficiary of a VIE and must consolidate it when that party has a variable interest, or combination of variable interests, that provide it with a controlling financial interest. A party is deemed to have a controlling financial interest if it meets both of the power and loss/benefits criteria. The power criterion is the ability to direct the activities of the VIE that most significantly impact its economic performance. The losses/benefits criterion is the obligation to absorb losses from, or right to receive benefits from, the VIE that could potentially be significant to the VIE. The VIE model requires an ongoing reconsideration of whether a reporting entity is the primary beneficiary of a VIE due to changes in the facts and circumstances.
Northern Fire Management Services, LLC (“NFMS, LLC”) is considered to be a VIE, as it lacks sufficient equity and is consolidated in the Company’s financial statements. For the three months ended March 31, 2022, Mountain Air, LLC (“MA, LLC”) is considered to be a VIE, as it lacks sufficient equity and is consolidated in the Company’s financial statements. For the three months ended March 31, 2023 and 2022 and the year ended December 31, 2022, NFMS, LLC held immaterial assets and liabilities in its financial statements. For the three months ended March 31, 2022, MA, LLC held immaterial assets and liabilities in its financial statements. For the three months ended March 31, 2023 and 2022 and the year ended December 31, 2022, the following entities were considered to be VIEs but were not consolidated in the unaudited condensed consolidated financial statements due to the lack of the power criterion or the losses/benefits criterion: AE
Côte-Nord
Canada
(“Côte-Nord”)
and Ensyn BioEnergy Canada, Inc (“EBC”).
Northern Fire Management Services, LLC:
The Company assisted in designing and organizing NFMS, LLC with a business purpose of employing Canadian aviation professionals for the Company. A master services agreement exists between NFMS, LLC, the Company, and Bridger Air Tanker, LLC, a wholly owned subsidiary of the Company, to transfer all annual expenses incurred to the Company in exchange for the Canadian employees to support the Company’s water scooper aircraft. NFMS, LLC is
50
% owned by a Canadian citizen, and
50
%
owned by Bridger Aerospace Group, LLC (“BAG, LLC”). The Company is responsible for the decisions related to all of NFMS, LLC’s expenditures, which solely relates to payroll. Based on these facts, it was determined that the Company is the primary beneficiary of NFMS, LLC. Therefore, NFMS, LLC has been consolidated by the Company. All intercompany expenses associated with NFMS, LLC and its service agreement have been eliminated in consolidation.
 
9

BRIDGER AEROSPACE GROUP HOLDINGS, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in U.S. dollars, except as stated)
 
Mountain Air, LLC:
As of November 7, 2022, MA, LLC
was
a wholly-owned subsidiary of Bridger. Prior to MA, LLC becoming a wholly-owned subsidiary of the Company, MA, LLC was owned 50
%
 by Timothy Sheehy, the Chief Executive Officer and a director of Bridger, and 
50
%
by an entity affiliated with Matthew Sheehy, a director of Bridger. MA, LLC is a Federal Aviation Administration (“FAA”) part 135 certificate holder and is
designed to hold aerial firefighting contracts. Bridger Aviation Services, LLC (“Bridger Aviation”), a wholly-owned subsidiary of Bridger, was a party
to a certain Management Services Agreement 
(the “Aviation Agreement”), dated April 13, 2018, with MA, LLC. Pursuant to the Aviation Agreement, Bridger Aviation leased certain aircraft to MA, LLC. MA, LLC operated the aircraft and paid Bridger Aviation a fee equal to 
99% of all revenue it received from the use and deployment of Bridger Aviation’s aircraft. MA, LLC was obligated to operate and maintain the aircraft in accordance with applicable FAA standards.
Timothy Sheehy originally conducted aerial operations through MA, LLC before Bridger’s current legal organizational structure was put into place, which created the need for the Aviation Agreement and resulting VIE treatment.
Seasonality
The Company’s business is generally seasonal, with a significant portion of total revenue occurring during the second and third quarters of the fiscal year due to the North American fire season. However, the weather dependency and seasonal fluctuation in the need to fight wildfires based upon location and the varying intensity of the fire season may lead our operating results to fluctuate significantly from quarter to quarter and year to year.
Use of Estimates
The preparation of financial statements in conformity with US GAAP, requires management to make assumptions and estimates that affect the reported amounts of assets and liabilities, disclosure of gain or loss contingencies as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from their estimates and such differences could be material to the unaudited condensed consolidated financial statements. Significant items subject to such estimates and assumptions include: (a) excess and aging aircraft support parts reserves, (b) allowance for doubtful accounts, (c) useful lives of property, plant and equipment, net (d) impairment of long-lived assets, goodwill and other intangible assets, (e) disclosure of fair value of financial instruments, (f) variable interest entities, (g) accounting for Series A Preferred Stock and Legacy Bridger Series C Preferred Shares, (h) revenue recognition, (i) estimates and assumptions made in determining the carrying values of goodwill and other intangible assets, (j) incentive units and (k) Public Warrants and Private Placement Warrants.
Reclassifications
Certain amounts from prior periods have been reclassified to conform to the current period presentation. The Company previously separately presented General and administrative and Business development operating expenses, which are now presented combined within “Selling, general and administrative expense” on the Unaudited Condensed Consolidated Statement of Operations. The reclassification had no impact on previously reported net loss or accumulated deficit.
 
10

Table of Contents
BRIDGER AEROSPACE GROUP HOLDINGS, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in U.S. dollars, except as stated)
 
Deferred Offering Costs
Deferred offering costs primarily consist of capitalized legal, accounting and other third-party costs incurred that are directly related to the
Reverse Recapitalization
, which
has been
accounted for as a reverse recapitalization. These costs were charged to Stockholders’ deficit as a reduction of Additional paid-in capital generated upon the completion of the
Reverse Recapitalization
. As of March 31, 2023,
the Company charged $
9,778 thousand to Stockholders’ deficit. As of December 31, 2022
,
the Company recorded $5,800 thousand of deferred offering costs in the Unaudited Condensed Consolidated Balance Sheets.
Revenue Recognition
The Company charges daily and hourly rates depending upon the type of firefighting services rendered and under which contract the services are performed. These services are primarily split into flight revenue and standby revenue. Flight revenue is primarily earned at an hourly rate when the engines of the aircraft are started and stopped upon request of the customer, tracked via a Hobbs meter. Standby revenue is earned primarily as a daily rate when aircraft are available for use at a fire base, awaiting request from the customer for flight deployment.
The Company enters into short, medium and long-term contracts with customers, primarily with government agencies to deploy aerial fire management assets during the firefighting season. Revenue is recognized when performance obligations under the terms of a contract with our customers are satisfied and payment is typically due within 30 days of invoicing. This occurs as the services are rendered and include the use of the aircraft, pilot and field maintenance personnel to support the contract.
Contracts are based on either a Call-When-Needed (“CWN”) or Exclusive Use (“EU”) basis. Rates established are generally more competitive based on the security of the revenue from the contract (i.e., an EU versus only on an
as-needed
basis in CWN). These rates are delineated by the type of service, generally flight time or time available for deployment. Once an aircraft is deployed on a contract the fees are earned at these rates and cannot be obligated to another customer. Contracts have no financing components and consideration is at
pre-determined
rates. No variable considerations are constrained within the contracts.
The transaction prices are allocated on the service performed and tracked real-time by each operator in a duty log. On at least a monthly basis, the services performed and rates are validated by each customer. Acceptance by the customer is evidenced by the provision of their funded task order or accepted invoice.
The Company has not incurred incremental costs for obtaining contracts with customers. In addition, the Company evaluates whether or not it should capitalize the costs of fulfilling a contract. Such costs would be capitalized when they are not within the scope of other standards and: (1) are directly related to a contract; (2) generate or enhance resources that will be used to satisfy performance obligations; and (3) are expected to be recovered. The Company has elected to use the practical expedient detailed in ASC
340-40-25-4
to expense any costs to fulfill a contract as they are incurred when the amortization period would be one year or less.
Contract assets are classified as a receivable when the reporting entity’s right to consideration is unconditional, which is when payment is due only upon the passage of time. As the Company invoices customers for performance obligations that have been satisfied, at which point payment is unconditional, contracts do not typically give rise to contract assets. Contract liabilities are recorded when cash payments are received or due in advance of performance.
Payment terms vary by customer and type of revenue contract. The Company generally expects that the period of time between payment and transfer of promised goods or services will be less than one year. In such instances, the Company has elected the practical expedient to not evaluate whether a significant financing component exists. As permitted under the practical expedient available under ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), the Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, and (ii) contracts for which the Company recognizes revenue at the amount which it has the right to invoice for services performed.
 
11

BRIDGER AEROSPACE GROUP HOLDINGS, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in U.S. dollars, except as stated)
 
Other revenue consists of leasing revenues for facilities as well as external repair work performed on customer aircraft.
Revenue Disaggregation
The following shows the disaggregation of revenue by service for the three months ended March 31, 2023 and March 31 2022.
 
    
For the three months ended

March 31,
 
    
    2023    
    
    2022    
 
Fire suppression
   $ —        $ —    
Aerial surveillance
     —          —    
Other services
     365,373        69,292  
    
 
 
    
 
 
 
Total revenues
   $ 365,373      $ 69,292  
    
 
 
    
 
 
 
The following shows the disaggregation of revenue by type for the three months ended March 31, 2023 and March 31, 2022.
 
    
For the three months ended,

March 31
 
    
    2023    
    
    2022    
 
Flight revenue
   $ —        $ —    
Standby revenue
     —          —    
Other revenue
     365,373        69,292  
    
 
 
    
 
 
 
Total revenues
   $ 365,373      $ 69,292  
    
 
 
    
 
 
 
Concentration Risk
For the three months ended March 31, 2023, the Company had one customer who individually accounted for 65% of total revenues. As of March 31, 2023, one customer accounted for 83% of accounts
receivable. Refer to “
Note 16 – Related Party Transactions
” for
additional information.
For the three months ended March 31, 2022, the Company had one customer who individually accounted for 100% of total revenues. As of December 31, 2022, one customer accounted for 62% of accounts receivable.
Hedging Transactions and Derivative Financial Instruments
The Company is directly and indirectly affected by changes in certain market conditions. These changes in market conditions may adversely impact the Company’s financial performance and are referred to as “market risks.” The Company, when deemed appropriate, uses derivatives as a risk management tool to mitigate the potential impact of certain market risks. The Company manages interest rate risk through the use of derivative instruments
, such as swap agreements.
A swap agreement is a contract between two parties to exchange cash flows based on specified underlying notional amounts, assets and/or indices. The Company does not enter into derivative financial instruments for trading purposes.
The accounting for gains and losses that result from changes in the fair values of derivative instruments depends on whether the derivatives have been designated and qualify as hedging instruments and the type of hedging relationships. The changes in fair values of derivatives that have been designated and qualify as cash flow hedges are recorded in accumulated other comprehensive income and are reclassified into the line item on the Unaudited Condensed Consolidated Statements of Comprehensive Loss in which the hedged items are recorded in the same period the hedged items affect earnings. The changes in fair values of freestanding derivatives with no hedging designation are recorded in earnings through interest expense on the Unaudited Condensed Consolidated Statement of Operations.
 
12

BRIDGER AEROSPACE GROUP HOLDINGS, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in U.S. dollars, except as stated)
 
The Company formally assesses whether the financial instruments used in hedging transactions are effective at offsetting changes in either the fair values or cash flows of the related underlying exposures. Any ineffective portion of a financial instrument’s change in fair value is immediately recognized into earnings. The fair value is based on prevailing market data and using standard valuation models based on reasonable estimates about future relevant market conditions. Refer to
“Note 12 – Long-Term Debt.”
The notional amounts of the derivative financial instruments do not necessarily represent amounts exchanged by the parties and, therefore, are not a direct measure of the Company’s exposure to the financial risks described above.
Warrant Liabilities
The Company accounts for the Public Warrants and Private Placement Warrants (collectively, the “Warrants”) issued in connection with the Reverse Recapitalization in accordance with the guidance contained in accordance with ASC 480,
Distinguishing Liabilities from Equity
and ASC
815-40,
Derivatives and Hedging—Contracts in Entity’s Own Equity
, under which the Warrants do not meet the criteria for equity treatment and must be recorded as liabilities. Accordingly, the Company classifies the Warrants as liabilities at their fair value and adjusts the Warrants to fair value at each reporting period. The warrant liabilities are subject to remeasurement at each balance sheet date until exercised, and any change in fair value is recorded in earnings through Selling, general and administrative expense on the Unaudited Condensed Consolidated Statement of Operations.
Income Taxes
For periods prior to the Reverse Recapitalization, Legacy Bridger was a partnership for federal income tax purposes. Consequently, federal income taxes were not payable or provided for by Legacy Bridger. Members were taxed individually on their pro rata ownership share of Legacy Bridger’s earnings. Legacy Bridger’s net income or loss was allocated among the members in accordance with Legacy Bridger’s operating agreement.
Subsequent to the Reverse Recapitalization, the Company became the successor of Legacy Bridger as discussed in
“Note 1 – Organization and Basis of Presentation.”
Bridger is subject to U.S. federal income taxes, in addition to state and local income taxes, with respect to net taxable income or loss and any related tax credits of the Company. Bridger is also subject to taxes in foreign jurisdictions in which it operates.
The Company provides for income taxes and the related accounts under the asset and liability method. Income tax expense, deferred tax assets and liabilities and reserves for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. The Company is subject to income taxes predominantly in the U.S., where tax laws are often complex and may be subject to different interpretations.
Deferred income taxes arise from temporary differences between the financial statement carrying amount and the tax basis of assets and liabilities and are measured using the enacted tax rates expected to be in effect during the year in which the basis difference reverses. In evaluating the ability to recover its deferred tax assets within the jurisdiction from which they arise, the Company considers all available positive and negative evidence. If based upon all available positive and negative evidence, it is more likely than not that the deferred tax assets will not be realized, a valuation allowance is established. The valuation allowance may be reversed in a subsequent reporting period if Bridger determines that it is more likely than not that all or part of the deferred tax asset will become realizable. At this time, a valuation allowance has been recorded against the deferred tax assets.
The Company’s interpretations of tax laws are subject to review and examination by various taxing authorities and jurisdictions where the Company operates, and disputes may occur regarding its view on a tax position. These disputes over interpretations with the various tax authorities may be settled by audit, administrative appeals or adjudication in the court systems of the tax jurisdictions in which the Company operates. The Company regularly reviews whether it may be assessed additional income taxes as a result of the resolution of these matters, and the Company records additional reserves as appropriate. In addition, the Company may revise its estimate of income taxes due to changes in income tax laws, legal interpretations and business strategies. The Company recognizes the financial statement effects of uncertain income tax positions when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. For additional information in income taxes, see
“Note 19 – Income Taxes.”
 
13

BRIDGER AEROSPACE GROUP HOLDINGS, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in U.S. dollars, except as stated)
 
Net Income (Loss) Per Share
Basic net income (loss) per share is based on the weighted average number of shares of Common Stock outstanding during the period. Diluted net income (loss) per share is based on the weighted average number of shares of Common Stock used for the basic net income (loss) per share calculation, adjusted for the dilutive effect of restricted stock units (“RSUs”), Warrants, and Incentive Units, if any, using the “treasury stock” method, the Series A Preferred Stock that is convertible into shares of Common Stock, and the Sponsor Earnout Shares that will fully vest upon certain stock price metrics being achieved. In addition, net income (loss) for diluted net income (loss) per share is adjusted for the
after-tax
impact of changes to the fair value of the Warrants, to the extent they are dilutive.
As noted above, the Company accounted for the Closing as a reverse recapitalization. Net income (loss) per share calculations for all periods prior to the Closing have been retrospectively adjusted by the Exchange Ratio for the equivalent number of shares of Common Stock outstanding immediately after the Closing to effect the reverse recapitalization. Subsequent to the Closing, net income (loss) per share is calculated based on the weighted average number of shares of Common Stock outstanding.
Collaboration Agreements
The Company analyzes its collaboration arrangement to assess if it is within the scope of ASC Topic 808, Collaborative Agreements (“ASC 808”) by determining whether such an arrangement involves joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities. This assessment is performed throughout the life of the arrangement based on changes in the responsibilities of all parties in the arrangement. If the Company concluded that it has a customer relationship with its collaborator, the collaboration arrangement would be accounted for under ASC 606.
Stock-Based Compensation
The Company accounts for its stock-based compensation in accordance with provisions of ASC 718, Compensation-Stock Compensation (“ASC 718”) at the grant date fair value.
Legacy Bridger granted select board members and an executive incentive unit awards (“Incentive Units”) which contain service and performance vesting conditions. Compensation cost for Incentive Units is measured at their grant-date fair value and is equal to the value of the Legacy Bridger’s Class D Common shares, which is estimated using an option pricing model. Compensation cost for service-based units is recognized over the requisite service period on a straight-line basis. For performance related units, expense is recognized when the performance related condition is considered probable.
In connection with the Closing, the Company along with the Board established and approved and assumed the Bridger Aerospace Group Holdings, Inc. 2023 Omnibus Incentive Plan (the “Plan”) which allowed the Company to grant RSUs to certain executives and senior management (the “Participants”) of the Company. Upon satisfying the vesting conditions, each RSU provides the Participants the right to receive one share of Common Stock. The fair value of RSUs is determined based on the number of shares granted and the quoted market price of the Common Stock on the date of grant. Compensation cost for the RSUs is recognized as the performance condition of the Closing of the transaction was met and over the requisite service period based on the graded-vesting method. The Company accounts for forfeitures as they occur. Stock-based compensation is included in Selling, general and administrative expense on the Unaudited Condensed Consolidated Statements of Operations.
Advertising Expense
Advertising costs are expensed as incurred and are included in Selling, general and administrative expense on the Unaudited Condensed Consolidated Statement of Operations. Advertising expense for the three months ended March 31, 2023 and 2022 was $24 thousand and $51 thousand, respectively.
 
14

BRIDGER AEROSPACE GROUP HOLDINGS, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in U.S. dollars, except as stated)
 
Recent Accounting Pronouncements
Recently Adopted Accounting Pronouncements
In June 2016, the FASB issued ASU
No. 2016-13,
Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this ASU replace the incurred loss model for recognition of credit losses with a methodology that reflects expected credit losses over the life of the loan and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. The Company adopted this standard on January 1, 2023. The adoption of this standard did not have a significant impact on the Company’s unaudited condensed consolidated financial statements.
In January 2017, the FASB issued ASU
No. 2017-04,
Intangibles-Goodwill and Other (Topic 350): Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment. This update modifies the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. In order to reduce complexity, an entity no longer will determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. The Company adopted this standard on January 1, 2023. The adoption of this standard did not have a significant impact on the Company’s unaudited condensed consolidated financial statements.
Recently Issued Accounting Pronouncements
In March 2020, the FASB issued ASU
No. 2020-04,
Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and in January 2021, issued ASU
No. 2021-01,
Reference Rate Reform: Scope. These updates provide optional expedients and exceptions for applying US GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The optional guidance is provided to ease the potential burden of accounting for reference rate reform. The guidance is effective and could be adopted no later than December 31, 2022. In December 2022, the FASB issued ASU
No. 2022-06,
Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, to extend the temporary accounting rules under Topic 848 from December 31, 2022 to December 31, 2024. The Company is currently evaluating the impact of adopting the new accounting guidance on the Company’s unaudited condensed consolidated financial statements.
Note 3 – Cash Equivalents and Investments in Marketable Securities
The investments in marketable securities are classified as
available-for-sale
debt securities with short-term maturities of less than one year. The fair values, gross unrealized gains and losses of the
available-for-sale
securities by type are as follows:
 
    
As of March 31,
2023
    
As of December 31,
2022
 
               
    
Carrying Value
 
Cash equivalents
                 
Commercial paper
   $ —        $ 29,890,313  
Money market fund
     2,025,399        12,640  
    
 
 
    
 
 
 
Total cash equivalents
   $ 2,025,399      $ 29,902,953  
    
 
 
    
 
 
 
Restricted cash
                 
Money market fund
   $ 9,381,562      $ 9,284,362  
 
    
As of March 31, 2023
 
    
Purchase
Price
    
Unrealized
Gains
    
Unrealized
Losses
    
Fair Value
 
Investment in marketable securities
                                   
Commercial paper
   $ 13,421,156      $ 276,857      $ —        $ 13,698,013  
Corporate bonds and notes
     9,924,092        36,043        —          9,960,135  
Government securities
     6,658,634        5,745        —          6,664,379  
    
 
 
    
 
 
    
 
 
    
 
 
 
Total marketable securities
   $ 30,003,882      $ 318,645      $ —        $ 30,322,527  
    
 
 
    
 
 
    
 
 
    
 
 
 
 
15

BRIDGER AEROSPACE GROUP HOLDINGS, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in U.S. dollars, except as stated)
 
    
As of December 31, 2022
 
    
Purchase
Price
    
Unrealized
Gains
    
Unrealized
Losses
    
Fair Value
 
Investment in marketable securities
                                   
Commercial paper
   $ 32,635,849      $ 277,674      $ —        $ 32,913,523  
Corporate bonds and notes
     15,413,122        3,668        —          15,416,790  
Government securities
     6,658,634        —          (8,791      6,649,843  
    
 
 
    
 
 
    
 
 
    
 
 
 
Total marketable securities
   $ 54,707,605      $ 281,342      $ (8,791    $ 54,980,156  
    
 
 
    
 
 
    
 
 
    
 
 
 
The net unrealized gain included in total other comprehensive (loss) income for the three months
ended March 31, 2023 is $319 thousand. The Company did not have investments in marketable securities during the three months ended March 31, 2022.
The proceeds from sales of
available-for-sale
securities and gross realized gains included in earnings from sales of
available-for-sale
securities for the three months ended March 31, 2023 are $25,062 thousand and $259 thousand, respectively. The Company determines gains and losses using the
first-in
first-out
method. For the three months ended March 31, 2023, $173 thousand has been reclassified out of accumulated other comprehensive income. There have been no impairments measured for the three months ended March 31, 2023 and March 31, 2022, respectively.
Note 4 – Aircraft Support Parts
Aircraft support parts consist of the following:
 
    
As of March 31,

2023
    
As of December 31,
2022
 
Repairables and expendables
   $ 434,894      $ 1,734,292  
Other support parts
     —          26,978  
    
 
 
    
 
 
 
Total aircraft support parts
   $ 434,894      $ 1,761,270  
    
 
 
    
 
 
 
Note 5 – Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consist of the following:
 
    
As of March 31,

2023
    
As of December 31,
2022
 
Prepaid insurance
   $ 1,882,782      $ 968,721  
Prepaid subscriptions
     1,090,397        770,724  
Other current assets
     103,294        95,587  
    
 
 
    
 
 
 
Total prepaid expenses and other current assets
   $ 3,076,473      $ 1,835,032  
    
 
 
    
 
 
 
Note 6 –Property, Plant and Equipment, Net
Property, plant and equipment, net consist of the
following:

 
  
As of March 31,

2023
 
  
As of December 31,
2022
 
Aircraft
   $ 188,645,160      $ 160,113,061  
Less: accumulated depreciation
     (17,794,943      (16,783,360
 
 
 
 
 
 
 
 
 
Aircraft, net
     170,850,217        143,329,701  
 
 
 
 
 
 
 
 
 
Construction-in-progress—Aircraft
     —          16,992,010  
 
 
 
 
 
 
 
 
 
Buildings
     16,522,454        16,519,231  
Vehicles and equipment
     2,871,841        2,810,560  
Construction-in-progress
- Buildings
     15,219,361        13,780,316  
Finance lease
right-of-use-asset
     130,378        130,378  
Licenses
     234,682        234,682  
    
 
 
    
 
 
 
Less: accumulated depreciation
     (2,406,334      (1,705,465
    
 
 
    
 
 
 
Buildings and equipment, net
     32,572,382        31,769,702  
    
 
 
    
 
 
 
Total property, plant and equipment, net
   $ 203,422,599      $ 192,091,413  
    
 
 
    
 
 
 
 
16

BRIDGER AEROSPACE GROUP HOLDINGS, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in U.S. dollars, except as stated)
 
For
 
the three months ended March 31, 2023, the Company recorded $1,005 thousand and $719 thousand of depreciation expense in Cost of revenu
es
and Selling, general and administrative expense, respectively. For the three months ended March 31, 2022, the Company recorded $1,004 thousand and $255 thousand of depreciation expense in Cost of revenues and Selling, general and administrative expense, respectively.
For the three months ended March 31, 2023 and 2022, the Company recorded a gain on sale of assets
of $1 
thousand
and a loss on disposals of assets related to the obsolescence of an aging aircraft of
 
$
781
 
thousand, respectively, in Selling, general and administrative expense on the Unaudited Condensed Consolidated Statements of Operations.
For the three months ended March 31, 2023 and 2022, capitalized interest to equipment from debt financing was $393 thousand and $53 thousand, respectively. Aircraft that is currently being manufactured is considered construction in process and is not depreciated until the aircraft is placed into service. Aircraft that is temporarily not in service is not depreciated until placed into service.
Note 7 – Goodwill and Intangible Assets, Net
The Company’s goodwill originated from the acquisition of MA, LLC in April 2018. The carrying amount of goodwill was $2,458 thousand as of March 31, 2023 and December 31, 2022, respectively. There were no impairment charges recorded for goodwill for the three months ended March 31, 2023 and 2022.
Intangible assets consisted of the following:
 
           
As of March 31, 2023
 
    
Estimated
Life
(Years)
    
Gross
Carrying
amount
    
Accumulated
Amortization
    
Net
Carrying
Amount
 
Licenses
     10      $ 67,623      $ (48,867    $ 18,756  
Internal-use
software
     3        296,675        (133,648      163,027  
             
 
 
    
 
 
    
 
 
 
Total intangible assets
            $ 364,298      $ (182,515    $ 181,783  
             
 
 
    
 
 
    
 
 
 
 
           
As of December 31, 2022
 
    
Estimated
Life
(Years)
    
Gross
Carrying
amount
    
Accumulated
Amortization
    
Net
Carrying
Amount
 
Licenses
     10      $ 67,623      $ (47,177    $ 20,446  
Internal-use
software
     3        296,675        (108,925      187,750  
             
 
 
    
 
 
    
 
 
 
Total intangible assets
            $ 364,298      $ (156,102    $ 208,196  
             
 
 
    
 
 
    
 
 
 
Amortization expense for intangible assets and other noncurrent assets was $26 thousand and $8 thousand for the three months ended March 31, 2023 and 2022, respectively. Amortization expense is included in Selling, general and administrative expense on the Unaudited Condensed Consolidated Statements of Operations.
 
17

Table of Contents
BRIDGER AEROSPACE GROUP HOLDINGS, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in U.S. dollars, except as stated)
 
Note 8 – Other Noncurrent Assets
Other noncurrent assets consisted of the following:
 
    
As of March 31,

2023
    
As of December 31,

2022
 
Investment in Overwatch
   $ 1,000,000      $ 1,000,000  
Operating lease
right-of-use
asset
     636,355        671,054  
Interest rate swap
     1,152,383        1,407,135  
Prepaid subscriptions
     3,919,352        1,246,128  
Other assets
     31,908        31,908  
    
 
 
    
 
 
 
Total other noncurrent assets
   $ 6,739,998      $ 4,356,225  
    
 
 
    
 
 
 
Note 9 – Accrued Expenses and Other Liabilities
Accrued expenses and other liabilities consisted of the following:
 
 
  
As of March 31,
2023
 
  
As of December 31,
2022
 
Accrued salaries, wages, and bonuses
   $ 7,359,232      $ 6,515,774  
Finance
right-of-use
liability
     61,615        68,310  
Accrued professional fees
     612,111        2,291,469  
Embedded derivative of Legacy Bridger Series C Preferred Shares
     —          1,039,330  
Embedded derivative of Series A Preferred Stock
     693,745        —    
Warrant liabilities
     4,264,000        —    
Deferred underwriting fee payable
     1,500,000        —    
Freestanding derivative on Legacy Bridger Series C Preferred Shares
     —          2,186,283  
Excess hold fee payable on Series A Preferred Stock
     2,236,842        —    
Accrued interest expense and other accrued liabilities
     2,140,690        6,614,065  
    
 
 
    
 
 
 
Total accrued expenses and other liabilities
     18,868,235        18,715,231  
Less: Current accrued expenses and other current liabilities
     (13,063,960 )      (18,669,572 )
    
 
 
    
 
 
 
Total long-term accrued expenses and other noncurrent
liabilities
   $ 5,804,275      $ 45,659  
    
 
 
    
 
 
 
The Company’s bonus pool was accrued throughout the year and was based upon 2022 performance milestones. On August 19, 2022, the Company also granted $10.1
 
million of discretionary cash bonuses to employees and executives in connection with the issuance of the Legacy Bridger Series C Preferred Shares, issuance of the taxable industrial development revenue bond transaction under the CUSIP of Gallatin County for $160,000 thousand (“2022 Bonds”) and execution of the Transaction Agreements. As of March 31, 2023, $
3,087 thousand of the discretionary cash bonuses remained accrued and unpaid.
Warrant liabilities
The warrant liabilities consist of the following Warrants issued by the Company in connection the Reverse Recapitalization:
Public Warrants
The Company issued Public Warrants to purchase 17,250,000
 
shares of Common Stock at an exercise price of
 
$
11.50 per share in exchange for the 17,250,000
 
JCIC warrants originally issued by JCIC in its initial public offering. The Warrants may only be exercised for a whole number of shares of Common Stock. The exercise price and number of shares of Common Stock issuable upon exercise of the Warrants may also be adjusted in certain circumstances including in the event of a share dividend, recapitalization, reorganization, merger or consolidation. In no event will the Company be required to net cash settle any Warrant.
 
18

BRIDGER AEROSPACE GROUP HOLDINGS, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in U.S. dollars, except as stated)
 
The Warrants became exercisable 30
days following the Reverse Recapitalization and will expire January 24, 2028.
Under certain circumstances, the Company may elect to redeem the Public Warrants at a redemption price of
 $0.01
 
per Public Warrant at any time during the term of the warrant in which the Common Stock trading price has been at least
 $
18.00 per share for 20 trading days within the 30
 
trading-day
period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the Warrant holders. If the Company elects to redeem the Public Warrants, it must notify the Public Warrant holders in advance, who would then have at least
30
days from the date of notification to exercise their respective warrants. If the warrant is not exercised within that 30-day period, it will be redeemed pursuant to this provision. The Company may also elect to redeem the outstanding Warrants at a redemption price of
 $0.10
per Warrant at any time during the term of the Warrant in which the Common Stock trading price is between
 $10.00
per share and
 $