Mark One
|
|
[ X ]
|
ANNUAL REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
|
For
the Fiscal Year ended December 31, 2012
|
|
[ ]
|
TRANSITION REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
For the transition
period from January 1, 2012 to December 31,
2012
|
NEW
YORK(State of
Incorporation)
|
11-2989648(IRS Employer
Identification No.)
|
JFK
International Airport, Building 151, Jamaica, NY
11430(Address
of principal executive offices)(718) 244
8880(Registrant's telephone
number, including area code)
|
|
Title of each class
-None-
|
Name of each Exchange
on which registered -None-
|
Securities Registered
pursuant to Section 12(g) of the Exchange Act:
|
|
Common Stock, (Title
of Class)
|
$.0001 Par
Value
|
Indicate by check mark
if the Registrant is a well-known seasoned issuer, as
defined in Rule 405 of the Securities Act. Yes [
] - - No [X]
|
|
Indicate by check mark
if the Registrant is not required to file reports
pursuant to Section 13 or 15(d) of the Act. Yes [
] - - No [X]
|
|
Indicate by check mark
whether the Registrant (1) has filed all reports to be
filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file
such reports) and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] - - No
[ ]
|
|
Indicate by check mark
if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not
be contained, to the best of the registrant's
knowledge, in definitive proxy or
information statements
incorporated by reference in Part III of this Form 10-K
or any amendment to this Form 10-K. Yes [X] - - No
[ ]
|
|
Indicate by check mark
whether the Registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer or a smaller
reporting company. See definitions of "large
accelerated filer," "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.
(Check one):
|
|
Large accelerated
filer [ ] Non-accelerated filer [
]
|
Accelerated filer
[ ] Smaller reporting company [X]
|
Indicate by check mark
whether the Registrant is a shell company (as defined
in Rule 12b-2 of the Exchange Act of 1934). Yes
[ ] No [X]
|
|
The aggregate market value of the voting common equity
held by non-affiliates as of December 31, 2012 is
$23,185,507.
|
|
The number of shares of the registrant's common stock
outstanding as of April 15, 2013
was 2,579,123,580.
|
PART
1
|
|
Item 1.
|
Business
|
Item 1A.
|
Risk Factors
|
Item 1B.
|
Unresolved Staff
Comments
|
Item 2.
|
Properties
|
Item 3.
|
Legal
Proceedings
|
PART
II
|
|
Item 5.
|
Market for
Registrant's Common Equity, Related Stockholder Matters
and Issuer Purchases of Equity Securities
|
Item 6.
|
Selected Financial
Information
|
Item 7.
|
Management's
Discussion and Analysis of Financial Condition and
Results of Operations
|
Item 7A.
|
Quantitative and
Qualitative Disclosures About Market Risk
|
Item 8.
|
Financial Statement
Supplementary Data
|
Item 9.
|
Changes in and
Disagreements with Accountants on Accounting And
Financial Disclosures
|
Item 9A
|
Controls and
Procedures
|
Item 9B
|
Other Information -
Required FD Dislosure of Nonpublic Material
Information
|
PART
III
|
|
Item 10.
|
Directors and
Executive Officers of the Registrant
|
Item 11.
|
Executive
Compensation
|
Item 12.
|
Security Ownership of
Certain Beneficial Owners and Management and Related
Stockholder Matters
|
Item 13.
|
Certain Relationships
and Related Transactions
|
Item 14.
|
Principal Accountant
Fees and Services
|
PART
IV
|
|
Item 15.
|
Financial Statements
and Other Exhibits
|
Fiscal Quarter
Ended
|
High
|
Low
|
---------------------------
|
---------------
|
----------------
|
March 31, 2011
|
.04
|
.04
|
June 30, 2011
|
.04
|
.04
|
September 30,
2011
|
.05
|
.04
|
December 31,
2011
|
.05
|
.04
|
March 31, 2012
|
.05
|
.03
|
June 30,2012
|
.04
|
.01
|
September 30,
2012
|
.04
|
.01
|
December 31,
2012
|
.04
|
.01
|
Year
|
Interest Rate
|
Dividend Yield
|
Expected
Volatility
|
Expected Life in
Years
|
2011
|
4.4%
|
0.00%
|
200%
|
1
|
2012
|
3.0%
|
0.00%
|
200%
|
5
|
Name
|
Age
|
Position
|
|
Igor Dmitrowsky
|
57
|
President, CEO, CFO,
Chairman of the Board
|
|
Russell
Thal
|
78
|
Executive Vice
President
|
|
Barry Clare
|
54
|
Vice President
Finance
|
|
Walter
Kaplinsky
|
75
|
Secretary,
Director
|
|
Andris Rukmanis
|
51
|
Vice President Europe,
Director
|
|
Vick Luis
Bolanos
|
53
|
Director
|
Name amd
Principal
Position
|
Year
|
Bonus
|
Stock
Awards*
|
Option
Awards*
|
Non-Equity
Incentive
Plan
Compensation
Earnings
|
Change in
Pension
Value and
Nonqualified
Incentive
Plan
Compensation
|
All Other
Compensation
|
Total
|
Igor Dmitrosky
|
2012
|
$ -
|
$ 3,888,000
|
$ -
|
$ -
|
$ -
|
$ 50,957
|
$ 3,938,957
|
President, CEO
|
2011
|
-
|
10,712,000
|
-
|
-
|
-
|
75,106
|
10,787,106
|
Barry Clare
|
2012
|
-
|
858,000
|
-
|
-
|
-
|
198,285
|
1,056,285
|
Vice President
|
2011
|
-
|
1,426,000
|
-
|
-
|
-
|
347,948
|
1,773,948
|
Russell Thal
|
2012
|
-
|
289,000
|
-
|
-
|
-
|
30,500
|
319,500
|
Vice President
|
2011
|
-
|
362,000
|
-
|
-
|
-
|
51,000
|
413,000
|
Walter Kaplinsky
|
2012
|
-
|
76,000
|
-
|
-
|
-
|
15,960
|
91,960
|
Secretary
|
2011
|
-
|
214,000
|
-
|
-
|
-
|
-
|
214,000
|
Andris Rukmanis
|
2012
|
-
|
20,000
|
-
|
-
|
-
|
-
|
20,000
|
Vice President
Europe
|
2011
|
$ -
|
$ -
|
$ -
|
$ -
|
$ -
|
$ -
|
$ -
|
Directors and
Officers
|
Common Shares
Beneficially Owned
|
Percent of Total
Outstanding, %
|
Igor Dmitrowsky 63-26
Saunders St., Suite 7I Rego Park, NY 11374
|
779,662,766
|
31.62
|
Russell Thal 26 Ridge
Drive Port Washington, NY 11050
|
20,468,750
|
0.83
|
Barry Clare 4319 215th
St. Bayside, NY 11361
|
114,849,998
|
4.65
|
Vick Luis Bolanos 633
Monroe St. Riverside, NJ 08075
|
223,325,001
|
9.05
|
Walter Kaplinsky 2000
Quentin Rd. Brooklyn, NY 11229
|
15,500,000
|
0.62
|
Andris RukmanisKundzinsala,
8 Linija 9. Riga, Latvia LV-1005
|
6,468,750
|
0.26
|
Shares of all
directors and executive officers as a group (6
persons)
|
1,160,275,265
|
47
|
Report of Independent
Registered Accounting firm
|
F-1
|
Balance Sheets as of
December 31, 2012 and 2011
|
F-2
|
Statements of
Operations for the years ended December 31, 2012 and
2011, and the period August 29, 1989 (inception) to
December 31, 2012
|
F-3
|
Statements of Cash
Flows for the years ended December 31, 2012 and 2011,
and the period August 9, 1989 (inception) to December
31, 2012
|
F-4
|
Statement of Changes
of Stockholders' Equity for the years ended December
31, 2012, 2011, 2010, 2009, and 2008
|
F-5
|
Notes to Financial
Statements
|
F-6 to F-26
|
Baltia
Air Lines, Inc.
BALANCE
SHEETS
(A
Development Stage Company)
|
||||||||||||
December
31,
|
||||||||||||
2012
|
2011
|
|||||||||||
ASSETS
|
||||||||||||
Current
assets
|
||||||||||||
Cash
|
$ 12,326
|
$ 57,390
|
||||||||||
Total current
assets
|
12,326
|
57,390
|
||||||||||
Property
and equipment, net
|
1,807,456
|
3,404,258
|
||||||||||
Other
assets:
|
||||||||||||
Security deposit and
other
|
317,293
|
317,293
|
||||||||||
Total
assets
|
$ 2,137,075
|
$ 3,778,941
|
||||||||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||||||
Current
liabilities
|
||||||||||||
Accounts
payable
|
$ 587,763
|
$ 205,285
|
||||||||||
Accrued
interest
|
215625
|
112,125
|
||||||||||
Total
current liabilities
|
803,388
|
317,410
|
||||||||||
Long-term
debt, net of discount
|
1,186,500
|
1,003,941
|
||||||||||
Total
liabilities
|
1,989,888
|
1,321,351
|
||||||||||
Stockholders'
equity
|
||||||||||||
Preferred stock, $0.01
par value; 2,000,000 shares
authorized, 66,500
issued and outstanding
|
665
|
665
|
||||||||||
Common stock, $.0001
par value; 2,850,000,000 shares
authorized,
2,318,550,746 and 1,718,031,382 issued and
outstanding at
December 31, 2012 and 2011, respectively
|
231,856
|
171,803
|
||||||||||
Additional paid-in
capital
|
88,186,977
|
76,933,560
|
||||||||||
Deficit accumulated
during development stage
|
(88,272,311)
|
(74,648,438)
|
||||||||||
Total
stockholders' equity
|
147,187
|
2,457,590
|
||||||||||
Total
liabilities and stockholders' equity
|
$
2,137,075
|
$ 3,778,941
|
Baltia
Air Lines, Inc.
STATEMENTS
OF OPERATIONS
(A
Development Stage Company)
|
||||||||||
From
|
||||||||||
Inception
to
|
||||||||||
Years
Ended December 31,
|
December
31,
|
|||||||||
2012
|
2011
|
2012
|
||||||||
Revenue
|
$ -
|
$ -
|
$ -
|
|||||||
Costs and
Expenses
|
||||||||||
General and
administrative
|
11,125,526
|
24,323,228
|
80,773,746
|
|||||||
FAA certification
costs
|
622,062
|
490,851
|
3,146,209
|
|||||||
Training
|
-
|
-
|
225,637
|
|||||||
Depreciation
|
15,000
|
16,486
|
371,089
|
|||||||
Other
|
-
|
-
|
568,245
|
|||||||
Interest
|
249,565
|
241,493
|
1,560,784
|
|||||||
Loss on sale of
assets
|
1,607,183
|
-
|
1,607,183
|
|||||||
Total
costs and expenses
|
13,619,336
|
25,072,058
|
88,252,893
|
|||||||
Net
loss before income taxes
|
(13,619,336)
|
(25,072,058)
|
(88,252,893)
|
|||||||
provision
for income taxes
|
4,537
|
3,439
|
19,418
|
|||||||
Deficit
accumulated during development stage
|
$ (13,623,873)
|
$ (25,075,497)
|
$ (88,272,311)
|
|||||||
Net
loss per weighted share,
basic and
fully diluted
|
$ (0.01)
|
$ (0.02)
|
||||||||
Weighted
average number of common
shares
outstanding, basic and fully diluted
|
2,147,024,121
|
1,416,885,867
|
||||||||
STATEMENT
OF CASH FLOWS
(A
Development Stage Company)
|
||||||||
From
|
||||||||
Inception
to
|
||||||||
Years
Ended December 31,
|
December
31,
|
|||||||
2012
|
2011
|
2012
|
||||||
Cash
flows from operations
|
||||||||
Deficit accumulated
during development stage
|
$ (13,623,873)
|
$ (25,075,497)
|
$ (88,272,310)
|
|||||
Adjustment to
reconcile deficit accumulated during
|
||||||||
development stage to
cash used in operating activities:
|
||||||||
Depreciation and
amortization
|
15,000
|
16,486
|
369,940
|
|||||
Amortization of loan
discount
|
146,059
|
137,993
|
294,977
|
|||||
Expenses paid by
issuance of common stock and options
|
7,686,586
|
17,438,892
|
57,149,742
|
|||||
Loss on sale of
assets
|
1,607,183
|
-
|
1,607,183
|
|||||
Changes in operating
assets and liabilities:
|
||||||||
Prepaid
expenses
|
-
|
50,160
|
400,301
|
|||||
Accounts payable and
accrued expenses
|
485,980
|
208,785
|
3,954,871
|
|||||
Net
cash used by operating activities
|
(3,683,065)
|
(7,223,181)
|
(24,495,296)
|
|||||
Cash
flows from investing activities
|
||||||||
Purchase of
equipment
|
(133,045)
|
(502,217)
|
(3,829,628)
|
|||||
Proceeds from sale of
assets
|
144,164
|
-
|
144,164
|
|||||
Security
deposits
|
-
|
(77,293)
|
(317,293)
|
|||||
Net
cash used by investing activities
|
11,119
|
(579,510)
|
(4,002,757)
|
|||||
Cash
flows from financing activities
|
||||||||
Proceeds from issuance
of common stock
|
3,626,882
|
7,807,242
|
26,915,861
|
|||||
Proceeds from issuance
of preferred stock
|
-
|
-
|
2,753
|
|||||
Loans from related
parties
|
-
|
-
|
1,351,573
|
|||||
Repayment of related
party loans
|
-
|
-
|
(368,890)
|
|||||
Principal payments on
long-term debt
|
-
|
-
|
1,109,183
|
|||||
Acquisition of
treasury stock
|
-
|
-
|
(500,100)
|
|||||
Net
cash provided by financing activities
|
3,626,882
|
7,807,242
|
28,510,380
|
|||||
Net
increase (decrease) in cash
|
(45,064)
|
4,551
|
12,326
|
|||||
Cash, beginning of
period
|
57,390
|
52,839
|
-
|
|||||
Cash, end
of period
|
$ 12,326
|
$ 57,390
|
$ 12,326
|
|||||
Supplemental
cash flow disclosures:
|
||||||||
Cash paid during the
year for interest
|
$ 6
|
$ 19,504
|
||||||
(A
Development Stage Company)
STATEMENT
OF CHANGES IN STOCKHOLDERS’ EQUITY
|
||||||||||||||||||||||||
Preferred
Stock
|
Common
Stock
|
Additional
Paid-in
Capital
|
Deficit
Accumulated
During
Development
Stage
|
Total
|
||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
|||||||||||||||||||||
Balance,
December 31, 2008
|
66,500
|
$ 665
|
355,767,159
|
$ 35,577
|
$ 18,716,994
|
$ (18,002,863)
|
$ 750,375
|
|||||||||||||||||
Exercise of warrants
and options
|
32,000,000
|
3,200
|
3,200
|
|||||||||||||||||||||
Shares issued and
issuable for cash
|
154,034,244
|
15,403
|
3,686,497
|
3,701,900
|
||||||||||||||||||||
Shares issued for
services
|
200,778,636
|
20,078
|
9,430,413
|
9,450,491
|
||||||||||||||||||||
Options issued for
services
|
243,787
|
243,787
|
||||||||||||||||||||||
Stock issued to
purchase airplane
|
1,000,000
|
100
|
24,900
|
25,000
|
||||||||||||||||||||
Net loss
|
(12,175,550)
|
(12,175,550)
|
||||||||||||||||||||||
Balance,
December 31, 2009
|
66,500
|
665
|
743,580,039
|
74,358
|
32,102,591
|
(30,178,413)
|
1,999,201
|
|||||||||||||||||
Stock issued and
issuable for cash
|
115,776,464
|
11,578
|
4,365,876
|
4,377,454
|
||||||||||||||||||||
Stock issued for
services
|
252,658,491
|
25,266
|
14,984,584
|
15,009,850
|
||||||||||||||||||||
Fair value of options
issued as loan incentive
|
92,745
|
92,745
|
||||||||||||||||||||||
Stock issued as loan
incentive
|
6,800,000
|
680
|
201,552
|
202,232
|
||||||||||||||||||||
Net loss
|
(19,394,527)
|
(19,394,527)
|
||||||||||||||||||||||
Balance,
December 31, 2010
|
66,500
|
665
|
1,118,814,994
|
111,881
|
51,747,348
|
(49,572,940)
|
2,286,954
|
|||||||||||||||||
Stock issued and
issuable for cash
|
241,369,947
|
24,137
|
7,783,105
|
7,807,242
|
||||||||||||||||||||
Stock issued for
services
|
357,846,441
|
35,786
|
17,403,106
|
17,438,892
|
||||||||||||||||||||
Net loss
|
(25,075,498)
|
(25,075,498)
|
||||||||||||||||||||||
Balance,
December 31, 2011
|
66,500
|
665
|
1,718,031,382
|
171,804
|
76,933,559
|
(74,648,438)
|
2,457,590
|
|||||||||||||||||
Stock issued and
issuable for cash
|
271,270,882
|
27,127
|
3,599,755
|
3,626,882
|
||||||||||||||||||||
Stock issued for
services
|
329,248,482
|
32,925
|
7,653,663
|
7,686,588
|
||||||||||||||||||||
Net loss
|
(13,623,873)
|
(13,623,873)
|
||||||||||||||||||||||
Balance,
December 31, 2012
|
66,500
|
$ 665
|
2,318,550,746
|
$ 231,856
|
$ 88,186,977
|
$ (88,272,311)
|
$ 147,187
|
|||||||||||||||||
|
Level 1 – Quoted
prices in active markets that are unadjusted and
accessible at the measurement date for identical,
unrestricted assets or liabilities.
|
|
Level 2 – Quoted
prices for identical assets and liabilities in markets
that are not active, quoted prices for similar assets
and liabilities in active markets or financial
instruments for which significant inputs are
observable, either directly or indirectly.
|
|
Level 3 – Prices
or valuations that require inputs that are both
significant to the fair value measurement and
unobservable.
|
A summary of property
and equipment is as folloows:
|
|||
Estimated Useful
Life
|
2012
|
2011
|
|
Airplane
|
10-15 years
|
$1,505,738
|
$ 3,257,085
|
Office equipment and
other
|
5-7 years
|
425,986
|
256,441
|
Less accumulated
depreciation
|
(124,268)
|
(109,268)
|
|
Net
|
$ 1,807,456
|
$ 3,404,258
|
|
Current
depreciation
|
$ 15,000
|
$ 16,486
|
SIGNATURE
|
TITLE
|
DATE
|
/s/ Igor Dmitrowsky
Igor Dmitrowsky (Principal Executive Officer and
Principal Accounting Officer)
|
Chairman, CEO and
CFO
|
April 16, 2013
|
/s/ Walter Kaplinsky
Walter Kaplinsky
|
Secretary and
Director
|
April 16, 2013
|
/s/ Andris Rukmanis
Andris Rukmanis
|
V.P. Europe and
Director
|
April 16, 2013
|
/s/ Vick Luis Bolanos
Vick Luis Bolanos
|
Director
|
April 16, 2013
|