New
York
|
11-2989648
|
(State or other
jurisdiction of
|
(IRS Employer
|
incorporation or
organization)
|
Identification
No.)
|
Indicate the number of
shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date:
|
Outstanding as
of
November 13,
2012
|
Class:
Common Stock
|
2,405,704,717
|
Part I -
Financial Information
|
Page
|
Item 1
–Financial Statements:
|
3
|
Balance Sheet –
September 30, 2012
|
3
|
Statement of
Operations – Nine Months Ended September 30,
2012
|
4
|
Statement of
Shareholder Equity
|
5
|
Statement of Cash
Flows – Nine Months Ended September 30,
2012
|
6
|
Notes to Financial
Statements
|
7 - 8
|
Item 2 - Management's
Discussion and Analysis of Financial Condition and
Results of Operations
|
8
|
Item 3 –
Quantitative and Qualitative Disclosures about Market
Risk
|
14
|
Item 4T –
Controls and Procedures
|
14
|
Part II -
Other Information
|
15
|
Item 1 – Legal
Proceedings
|
15
|
Item 2 - Unregistered
Sales of Equity Securities and Use of Proceeds
|
15
|
Item 3 Default Upon
Senior Securities.
|
15
|
Item 4 - Submission of
Matters to a Vote of Security Holders.
|
15
|
Item 5 – Other
Information
|
15
|
Item 6 –
Exhibits
|
|
Signatures and
Certifications
|
15-17
|
Exhibit 101 –
XBRL Files
|
|
Baltia
Air Lines, Inc.
|
|||
Balance
Sheet
|
|||
(A
Development Stage Company)
|
|||
September
30, 2012
|
December
31, 2011
|
||
(unaudited)
|
|||
Assets
|
|||
Current
Assets
|
|||
Cash
|
$ 136,631
|
$ 57,390
|
|
Prepaid expenses
|
-
|
-
|
|
Total
current assets
|
136,631
|
57,390
|
|
Property
& Equipment:
|
|||
Equipment
|
1,762,179
|
3,513,526
|
|
Accumulated
depreciation
|
(124,268)
|
(109,268)
|
|
Net
property and equipment
|
1,637,911
|
3,404,258
|
|
Other
Assets:
|
|||
Security deposit and
other
|
317,293
|
317,293
|
|
Total
assets
|
$ 2,091,835
|
$ 3,778,941
|
|
Liabilities
and Equity
|
|||
Current
Liabilities:
|
|||
Accounts payable
|
$ 95,286
|
$ 205,285
|
|
Accrued expenses
|
189,750
|
112,125
|
|
Total
current liabilities
|
285,036
|
317,410
|
|
Long-term
debt, net of discount
|
1,098,625
|
1,003,941
|
|
Equity:
|
|||
Preferred
stock-2,000,000 authorized $0.01 par value
|
|||
66,500 issued &
outstanding
|
665
|
665
|
|
Common
stock-2,500,000,000 authorized $0.0001 par value
|
|||
2,367,318,050 and
1,863,937,020 issued & outstanding
|
|||
at September 30, 20112
and December 31, 2011, respectively
|
236,732
|
186,394
|
|
Additional paid in
capital
|
87,411,435
|
76,918,969
|
|
Deficit accumulated
during development stage
|
(86,940,658)
|
(74,648,438)
|
|
Total
equity
|
708,174
|
2,457,590
|
|
Total
liabilities and equity
|
$ 2,091,835
|
$ 3,778,941
|
|
Baltia Air Lines,
Inc.
|
|||||||||||||
Statement
of Operations
|
|||||||||||||
(Unaudited)
|
|||||||||||||
(A
Development Stage Company)
|
|||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
8/29/89
|
|||||||||||
September
30,
|
September
30,
|
(Inception)
to
|
|||||||||||
2012
|
2011
|
2012
|
2011
|
9/30/2012
|
|||||||||
Revenue
|
$ -
|
-
|
-
|
$ -
|
$ -
|
||||||||
Costs and
expenses:
|
|||||||||||||
General &
administrative
|
2,535,848
|
5,899,459
|
10,217,051
|
20,649,544
|
79,865,271
|
||||||||
FAA certification
costs
|
93,560
|
155,432
|
280,677
|
391,786
|
2,804,824
|
||||||||
Training
|
-
|
0
|
0
|
0
|
225,637
|
||||||||
Depreciation
|
5,000
|
2,500
|
15,000
|
7,500
|
371,089
|
||||||||
Other
|
-
|
0
|
0
|
0
|
568,245
|
||||||||
Interest expense
(income)
|
57,437
|
58,377
|
172,309
|
175,951
|
1,483,528
|
||||||||
Loss on sale of
assest
|
-
|
1,607,183
|
0
|
1,607,183
|
|||||||||
Total
costs and expenses
|
2,691,845
|
6,115,768
|
12,292,220
|
21,224,781
|
86,925,777
|
||||||||
Loss before income
taxes
|
(2,691,845)
|
(6,115,768)
|
(12,292,220)
|
(21,224,781)
|
(86,925,777)
|
||||||||
Income taxes
|
-
|
2,427
|
-
|
2,427
|
14,881
|
||||||||
Deficit accumulated
during development stage
|
$ (2,691,845)
|
$ (6,118,195)
|
$ (12,292,220)
|
$ (21,227,208)
|
$ (86,940,658)
|
||||||||
Basic:
|
|||||||||||||
Loss
|
($0.00)
|
($0.00)
|
($0.01)
|
($0.02)
|
|||||||||
Weighted average shares
outstanding
|
2,256,143,384
|
1,528,939,640
|
2,056,748,921
|
1,337,537,800
|
|||||||||
See notes to unaudited
interim financial statements.
|
Baltia
Air Lines, Inc.
Statement
of Stockholders' Equity
(Unaudited)
(A
Development Stage Company
|
||||||||||||||||||||
Preferred
|
Common
|
Deficit
Accumulated
|
||||||||||||||||||
Shares
|
Par
Value
|
Shares
|
Amount
|
Additional
Paid-in
Capital
|
During
Development Stage
|
|||||||||||||||
Balance at December 31,
2011
|
66,500
|
$ 665
|
1,863,937,020
|
$ 186,394
|
$ 76,918,968
|
$ (74,648,438)
|
||||||||||||||
Stock issued and
issuable for cash
|
219,829,215
|
21,983
|
3,629,191
|
|||||||||||||||||
Stock issued for
services @$.024/share
|
283,551,815
|
28,355
|
6,863,275
|
|||||||||||||||||
Net loss
|
(12,292,220)
|
|||||||||||||||||||
Balance at September
30, 2012
|
66,500
|
$ 665
|
2,367,318,050
|
$ 236,732
|
$ 87,411,434
|
$ (86,940,658)
|
||||||||||||||
Statement
of Cash Flows
|
||||||
(Unaudited)
|
||||||
(A
Development Stage Company)
|
||||||
Nine
Months Ended September 30,
|
8/29/89
(Inception) to
|
|||||
Statement of Cash
Flows
|
2012
|
2011
|
9/30/2012
|
|||
Cash
flows from operating activities:
|
||||||
Deficit Accumulated
During Development Stage
|
$ (12,292,220)
|
$ (15,109,013)
|
$ (86,940,658)
|
|||
Adjustments required to
reconcile deficit accumulated
|
||||||
development stage to
cash used in operating activities:
|
||||||
Depreciation
|
15,000
|
5,000
|
369,940
|
|||
Amortization of loan
discount
|
94,684
|
65,824
|
243,602
|
|||
Expenses paid by
issuance of common stock and options
|
6,891,630
|
10,859,194
|
56,354,786
|
|||
Basis of sold or
disposed assets
|
1,751,347
|
-
|
1,751,347
|
|||
(Increase) decrease in
prepaid expenses
|
-
|
50,160
|
400,301
|
|||
Increase in accounts
payable & accrued expenses
|
(32,374)
|
161,750
|
3,436,517
|
|||
Cash
flows used by operating activities:
|
(3,571,933)
|
(3,967,085)
|
(24,384,165)
|
|||
Cash
flows from investing activities:
|
||||||
Purchase of
equipment
|
-
|
(205,737)
|
(3,696,583)
|
|||
Security
deposits
|
-
|
(28,087)
|
(317,293)
|
|||
Cash
used in investing activities
|
-
|
(233,824)
|
(4,013,876)
|
|||
Cash
flows from financing activities:
|
||||||
Proceeds from issuance
of common stock
|
3,651,174
|
4,192,435
|
26,940,153
|
|||
Proceeds from issuance
of preferred stock
|
-
|
-
|
2,753
|
|||
Loans from related
parties
|
-
|
-
|
1,351,573
|
|||
Repayment of related
party loans
|
-
|
-
|
(368,890)
|
|||
Proceeds of long-term
debt
|
-
|
-
|
1,109,183
|
|||
Acquisition of treasury
stock
|
-
|
-
|
(500,100)
|
|||
Cash
provided by financing activities
|
3,651,174
|
4,192,435
|
28,534,672
|
|||
Change in
cash
|
79,241
|
(8,474)
|
136,631
|
|||
Cash-beginning of
period
|
57,390
|
52,840
|
-
|
|||
Cash-end
of period
|
$ 136,631
|
$ 44,366
|
$ 136,631
|
|||