Baltia Air Lines 10-K/A 10 Sep 15 2014 FY Annual report (amended) Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2014	Mar. 20, 2015
Document And Entity Information
Entity Registrant Name	BALTIA AIR LINES INC
Entity Central Index Key	869,187
Document Type	10-K
Current Fiscal Year End Date	--12-31
Amendment Description	This amendment is made to submit the audited financial statements and notes of the Company's new certifying accountant, and to correct Items 9, 9A(T), and 12 of the Company's filed 10-K report, filed on April 15, 2015. Item 9A(T) now includes a discussion of cash investments, and Item 12 is amended due to a recent review of the issued shares of the Company which identified several miscalculations with respect to four of the officers of the Company, one mathematical error, and several corrections based on a misunderstanding of the report from the Transfer agent, and non-recognition of shares previously owned by one of the officers.
Amendment Flag	true
Document Period End Date	Dec. 31, 2014
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float	$ 42,085,431
Entity Common Stock, Shares Outstanding		5,806,560,449
Document Fiscal Year Focus	2,014
Document Fiscal Period Focus	FY

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Current assets
Cash	$ 185,613	$ 11,549
Other current assets	24,908
Total current assets	210,521	$ 11,549
Property and equipment, net	2,316,036	1,794,486
Other assets:
Security deposit and other	318,683	317,293
Total assets	2,845,240	2,123,328
Current liabilities
Accounts payable and accrued expenses	2,572,165	$ 621,208
Short-term debt	50,000
Accrued interest	515,325	$ 319,125
Total current liabilities	3,137,490	940,333
Noncurrent liabilities
Long-term debt, net of discount	1,150,000	1,150,000
Long-term accounts payables and accrued expenses	335,523	335,523
Total noncurrent liabilities	1,485,523	1,485,523
Total liabilities	4,623,013	2,425,856
Stockholders' equity (deficit)
Preferred stock, $0.01 par value; 2,000,000 shares authorized, 66,500 issued and outstanding	665	665
Common stock, $.0001 par value; 5,986,000,000 shares authorized, 5,582,213,346 and 3,296,126,988 issued and outstanding at December 31, 2014 and 2013, respectively	549,741	329,612
Additional paid-in capital	108,215,743	94,507,702
Deficit accumulated during development stage	(110,543,922)	(95,140,507)
Total stockholders' equity (deficit)	(1,777,773)	(302,528)
Total liabilities and stockholders' equity (deficit)	$ 2,845,240	$ 2,123,328

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2014	Dec. 31, 2013
Stockholders' equity (deficit)
Preferred stock par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	66,500	66,500
Preferred stock, shares outstanding	66,500	66,500
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	5,986,000,000	5,986,000,000
Common stock, shares issued	5,582,213,346	3,296,126,988
Common stock, shares outstanding	5,582,213,346	3,296,126,988

STATEMENT OF OPERATIONS

STATEMENT OF OPERATIONS - USD ($)	12 Months Ended		304 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014
Statement Of Operations
Revenue
Costs and Expenses
General and administrative	$ 13,820,392	$ 5,910,517	$ 100,505,804
FAA certification costs	$ 1,400,198	$ 814,982	5,361,389
Training			225,637
Depreciation	$ 56,094	$ 16,488	442,522
Other			568,245
Interest	$ 126,731	$ 122,609	1,810,124
Loss on sale of assets			1,607,183
Total costs and expenses	$ 15,403,415	$ 6,864,596	110,520,904
Net loss before income taxes	$ (15,403,415)	(6,864,596)	(110,520,904)
Provision for income taxes		3,600	23,018
Deficit accumulated during development stage	$ (15,403,415)	$ (6,868,196)	$ (110,543,922)
Net loss per weighted share, basic and fully diluted	$ (0.004)	$ (0.002)
Weighted average number of common shares outstanding, basic and fully diluted	4,302,033,740	2,984,068,462

STATEMENTS OF CHANGES IN STOCKH

STATEMENTS OF CHANGES IN STOCKHOLERS'S EQUTIY (DEFICIT) - USD ($)	Preferred Stock	Common Stock	Additional Paid-in Capital	Deficit Accumulated During Development Stage	Total
Beginning balance, Amount at Dec. 31, 2008	$ 665	$ 35,577	$ 18,716,994	$ (18,002,863)	$ 750,375
Beginning balance, Shares at Dec. 31, 2008	66,500	355,767,159
Exercise of warrants and options, Amount		$ 3,200			3,202
Exercise of warrants and options, Shares		32,000,000
Stock issued and issuable for cash, Amount		$ 15,403	3,686,497		3,701,900
Stock issued and issuable for cash, Shares		154,034,244
Shares issued for services, Amount		$ 20,078	9,430,413		9,450,491
Shares issued for services, Shares		200,778,636
Options issued for services			243,787		243,787
Stock issued to purchase airplane, Amount		$ 100	24,900		25,000
Stock issued to purchase airplane, Shares		1,000,000
Net loss				(12,175,550)	(12,175,550)
Ending balance, Amount at Dec. 31, 2009	$ 665	$ 74,358	32,102,591	(30,178,413)	1,999,201
Ending balance, Shares at Dec. 31, 2009	66,500	743,580,039
Stock issued and issuable for cash, Amount		$ 11,578	4,365,876		4,377,454
Stock issued and issuable for cash, Shares		115,776,464
Shares issued for services, Amount		$ 25,266	14,984,584		15,009,850
Shares issued for services, Shares		252,658,491
Fair value of options issued as loan incentive			92,745		92,745
Stock issued as loan incentive, Amount		$ 680	201,552		202,232
Stock issued as loan incentive, Shares		6,800,000
Net loss				(19,394,527)	(19,394,527)
Ending balance, Amount at Dec. 31, 2010	$ 665	$ 111,881	51,747,348	(49,572,940)	2,286,954
Ending balance, Shares at Dec. 31, 2010	66,500	1,118,814,994
Stock issued and issuable for cash, Amount		$ 24,137	7,783,105		7,807,242
Stock issued and issuable for cash, Shares		241,369,947
Shares issued for services, Amount		$ 35,786	17,403,106		17,438,892
Shares issued for services, Shares		357,846,441
Net loss				(25,075,498)	(25,075,498)
Ending balance, Amount at Dec. 31, 2011	$ 665	$ 171,804	76,933,559	(74,648,438)	$ 2,457,590
Ending balance, Shares at Dec. 31, 2011	66,500	1,718,031,382
Prior period adjustment, Amount		$ 14,798	(14,798)
Prior period adjustment, Shares		147,987,304
Stock issued and issuable for cash, Amount		$ 27,127	3,599,755		$ 3,626,882
Stock issued and issuable for cash, Shares		271,270,882
Shares issued for services, Amount		$ 32,925	7,653,663		7,686,588
Shares issued for services, Shares		329,248,482
Net loss				(13,623,873)	(13,623,873)
Ending balance, Amount at Dec. 31, 2012	$ 665	$ 246,654	88,172,179	(88,272,311)	147,187
Ending balance, Shares at Dec. 31, 2012	66,500	2,466,538,050
Stock issued and issuable for cash, Amount		$ 70,162	4,062,352		4,132,514
Stock issued and issuable for cash, Shares		701,621,438
Shares issued for services, Amount		$ 12,796	2,273,171		2,285,967
Shares issued for services, Shares		127,967,500
Net loss				(6,868,196)	(6,868,196)
Ending balance, Amount at Dec. 31, 2013	$ 665	$ 329,612	94,507,702	(95,140,507)	(302,528)
Ending balance, Shares at Dec. 31, 2013	66,500	3,296,126,988
Stock issued and issuable for cash, Amount		$ 197,425	9,707,018		9,904,443
Stock issued and issuable for cash, Shares		1,974,254,019
Shares issued for services, Amount		$ 23,254	4,060,873		4,084,127
Shares issued for services, Shares		232,534,764
Shares cancelled, Amount		$ (550)	(59,850)		(60,400)
Shares cancelled, Shares		(5,500,000)
Net loss				(15,403,415)	(15,403,415)
Ending balance, Amount at Dec. 31, 2014	$ 665	$ 549,741	$ 108,215,743	$ (110,543,922)	$ (1,777,773)
Ending balance, Shares at Dec. 31, 2014	66,500	5,497,415,771

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended		304 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014
Cash flows from operations
Deficit accumulated during development stage	$ (15,403,415)	$ (6,868,196)	$ (110,543,922)
Adjustment to reconcile deficit accumulated during development stage to cash used in operating activities:
Depreciation and amortization	$ 56,094	$ 16,488	442,522
Amortization of loan discount			294,977
Expenses paid issuance of common stock and options	$ 4,084,127	$ 2,285,967	100,276,956
Loss on sale of assets			1,607,183
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(24,908)		375,393
Accounts payable and accrued expenses	2,147,157	472,468	6,574,496
Net cash used in operating activities	(9,140,945)	(4,093,273)	(972,395)
Cash flows from investing activities
Purchase of equipment	$ (577,644)	$ (40,018)	(4,447,290)
Proceeds from sale of assets			144,164
Security deposits	$ (1,390)		(318,683)
Net cash used by investing activities	(579,034)	$ (40,018)	(4,621,809)
Cash flows from financing activities
Proceeds from issuance of common stock	$ 9,844,043	$ 4,132,514	40,892,418
Proceeds from issuance of preferred stock			2,753
Proceeds from short-term loans	$ 50,000		50,000
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	$ 9,894,043	$ 4,132,514	42,536,937
Net increase (decrease) in cash	174,064	(777)	$ 185,613
Cash, beginning of period	11,549	12,326
Cash, end of period	$ 185,613	$ 11,549	$ 185,613
Supplemental cash flow disclosures:
Cash paid during the year for interest

Nature of Operations

Nature of Operations	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
1. Nature of Operations	The Company was formed as a U.S. airline on August 24, 1989 in the State of New York. Our objective is to provide scheduled air transportation from the U.S. to Russia, the Baltic States and Ukraine. In 1991, the Department of Transportation (DOT) granted the Company routes to provide nonstop passenger, cargo and mail service from JFK to St. Petersburg and from JFK to Riga, with online service to Minsk, Kiev and Tbilisi as well as back up service to Moscow. We have two registered trademarks, "BALTIA" and "VOYAGER CLASS," and five trademarks subject to registration. Our activities to date have been devoted principally to raising capital, obtaining route authority and approval from the DOT and the FAA, training crews, and conducting market research to develop the Company's marketing strategy. Regulatory Compliance We intend to operate as a Part 121 carrier, a heavy jet operator. As such, following certification we will be required to maintain our air carrier standards as prescribed by DOT and FAA regulation and as specified in the FAA approved Company manuals. As part of its regulatory compliance, we will be required to submit periodic reports of our operations to the DOT.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
2. Summary of Significant Accounting Policies	Basis of Presentation The financial statements have been presented in a “development stage” format. Since inception, our primary activities have been raising of capital, obtaining financing and of obtaining route authority and approval from the DOT and the FAA. We have not commenced our principal revenue-producing activities. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires our management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates. Cash and Cash Equivalents For financial statement presentation purposes, we consider those short-term, highly liquid investments with original maturities of three months or less to be cash or cash equivalents. There are no cash equivalents at December 31, 2014 and 2013. Fair Value of Financial Instruments FASB ASC Topic 825, Financial Instruments ( Fair Value Measurements FASB ASC Topic 820, Fair Value Measurements and Disclosure ( Fair Value Hierarchy FASB ASC 820 specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources (observable inputs), or reflect the Company’s own assumptions of market participant valuation (unobservable inputs). In accordance with FASB ASC 820, these two types of inputs have created the following fair value hierarchy: 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. FASB ASC 820 requires the use of observable market data if such data is available without undue cost and effort. Measurement of Fair Value The Company measures fair value as an exit price using the procedures described below for all assets and liabilities measured at fair value. When available, the Company uses unadjusted quoted market prices to measure fair value and classifies such items within Level 1. If quoted market prices are not available, fair value is based upon internally developed models that use whenever possible current market-based or independently-sourced market parameters such as interest rates and currency rates. Items valued using internally generated models are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be inputs that are readily observable. If quoted market prices are not available, the valuation model used generally depends on the specific asset or liability being valued. The determination of fair value considers various factors including interest rate yield curves and time value underlying the financial instruments. Property and Equipment Property and equipment is stated at cost less accumulated depreciation and amortization. Improvements are amortized using the straight-line method over the shorter of the estimated useful lives of the respective assets or the lease term. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 5-15 years. Expenditures for renewals and betterments are capitalized. Expenditures for minor items, repairs, and maintenance are charged to operations as incurred. Gain or loss upon sale or retirement due to obsolescence is reflected in the operating results in the period the event takes place. Valuation of Long-Lived Assets The Company periodically evaluates its long-lived assets for potential impairment in accordance with ASC 360, Property, Plant and Equipment, Stock-Based Compensation Plans Stock-based awards are accounted for using the fair value method in accordance with ASC 718, Share-Based Payments. Loss per Common Share The Company complies with accounting and disclosure requirements of ASC 262, Earnings Per Share. . Income Taxes Income taxes are recorded in accordance with ASC Topic 740, Accounting for Income Taxes (“ASC 740”) The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. As of December 31, 2014 and 2013, the Company did not have any uncertain tax positions. Generally, tax filings are no longer subject to income tax examinations by major taxing authorities for years before 2011. Any potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with U.S. federal, state, and local tax laws. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months. The Company’s policy is to record interest and penalties on uncertain tax provisions as income tax expense. As of December 31, 2014 and 2013, the Company has not accrued interest or penalties related to uncertain tax positions. Upon the attainment of taxable income by the Company, management will assess the likelihood of realizing the tax benefit associated with the use of the carryforwards and will recognize a deferred tax asset at that time. Recent Accounting Pronouncements In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220) – Reporting of Amounts Reclassified out of Accumulative Other Comprehensive Income In March 2013, the FASB issued Accounting Standards Update No. 2013-05, Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity In July 2013, the FASB issued ASU No. 2013-11, Income Taxes ( In June 2014, the FASB issued ASU 2014-10— Development Stage Entities - Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation The guidance removes the definition of a development stage entities and other reporting entities from U.S. GAAP. The guidance eliminates In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period Compensation-Stock Compensation In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In November 2014, the FASB issued ASU 20-14-16, Derivatives and Hedging - Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the Securities Exchange Commission (the "SEC") did not or are not believed by management to have a material impact on the Company's present or future financial statements.

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
3. Property and Equipment	A summary of property and equipment is as follows: Estimated Useful Life 2014 2013 Airplane 10- 15 years $ 2,079,135 $ 1,540,756 Office equipment and other 5 - 7 years 433,751 394,486 Less accumulated depreciation (196,850 ) (140,756 ) $ 2,316,036 $ 1,794,486 Current depreciation $ 56,094 $ 16,500

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
4. Stockholders' Equity	Description of Securities Common Stock We are authorized to issue 5,986,000,000 shares of common Stock at $.0001 par value per share. As of c Preferred Stock We are authorized to issue up to a maximum of two million shares of preferred stock. At December 31, 2014, 66,500 shares of preferred stock were issued and outstanding. We can issue these shares upon the adoption of a resolution by the board of directors. Our preferred stock is not entitled to share in any dividends declared on the Common Stock and has no voting rights. Each share is convertible in to 3 shares of common. The liquidation preference is set by this conversion formula and results in a pro rata claim on the Company’s assets based upon the underlying common shares issuable (199,500) upon conversion. Recent Issuance of Unregistered Securities 2014: Stock Issued for Cash We issued 1,974,255,019 shares of our common stock in exchange for receiving a total of $9,904,443 in cash net of offering expenses. The shares were deemed to have been issued pursuant to an exemption provided by Section 4(2) of the Act, which exempts from registration transactions by an issuer not involving any public offering. 2014 Stock Issued for Services We issued 232,534,764 shares of our common stock in exchange for services. The shares were valued at $4,084,127 or approximately $0.018 per share, which reflected the weighted average market value at the time of issuance. 2013: Stock Issued for Cash We issued 701,621,438 shares of our common stock in exchange for receiving a total of $4,132,514 in cash net of offering expenses. The shares were deemed to have been issued pursuant to an exemption provided by Section 4(2) of the Act, which exempts from registration transactions by an issuer not involving any public offering. Stock Issued for Services We issued 127,967,500 shares of our common stock in exchange for services. The shares were valued at $2,285,967 or approximately $0.018 per share, which reflected the weighted average market value at the time of issuance. Of the total shares issued for services, 18,000,000 of these shares valued at approximately $180,000 were issued to Igor Dmitrowsky, our president and CEO.

Stock options and Warrants

Stock options and Warrants	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
5. Stock options and Warrants	Stock Options No stock options were issued during the year ended December 31, 2014. Warrants For the years ended December 31, 2014 and 2013, warrant activity was as follows: Warrants Outstanding Warrants Exercisable Number Weighted Number Outstanding Average Weighted Exercisable Weighted At Remaining Average At Average Exercise December 31, Contractual Exercise December 31, Exercise Price 2014 Life Price 2014 Price $ 0.02 480,000 0.26 $ 0.02 480,000 $ 0.02 - $ 0.05 20,075,000 0.38 $ 0.05 20,075,000 $ 0.05 - $ 0.08 4,458,333 0.30 $ 0.08 4,458,333 $ 0.08 - $ 0.10 252,500 0.12 $ 0.10 252,500 $ 0.10 - $ 0.25 156,000 0.16 $ 0.25 156,000 $ 0.25 25,421,833 0.80 $ 0.06 25,421,833 Number of Weighted Remaining Warrants Average Term Outstanding Price (In Years) Warrants outstanding at December 31, 2013 60,428,066 $ 0.07 1.19 Granted in 2013 32,046,508 - Exercised - - - Canceled in 2013 20,146,566 Warrants outstanding at December 31, 2013 72,328,008 $ 0.05 0.80 0.05 Granted in 2014 327,500 Exercised - Canceled in 2014 47,233,675 Warrants outstanding at December 31, 2014 25,421,833 $ 0.06 0.80 Warrants exercisable at December 31, 2014 25,421,833

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
6. Income Taxes	The Company has approximately $42.7 million in available net operating loss carryovers available to reduce future income taxes. These carryovers expire at various dates through the year 2034. The Company has adopted ASC 740, Accounting for Income Taxes Utilization of federal and state NOL and tax credit carry-forwards may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitation may result in the expiration of NOL and tax credit carry-forwards before full utilization.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
7. Commitments and Contingencies	The Company leases office space for its administrative offices and an airport terminal facility under terms of these operating leases, which expire on August 15, 2015 and on a month to month basis. The payments are charged to rental expense as incurred. Rental payments for these two operating leases for the years ended December 31, 2014 and 2013 were $438,000 and $465,000 and are included in general administrative expenses in the statement of operations. Future minimum payments are $286,000 for the years ended December 31, 2015. The Company also leases office space, an airport terminal facility at Willow Run Airport, and other facilities under terms of an operating lease, which expire on May 31, 2015. The payments are charged to rental expense as incurred. Rental payments for the years ended December 31, 2014 and 2013 were $23,000 and $20,000, respectively, and are included in general administrative expenses in the statement of operations. Future minimum payments are $286,000 and $467,000 for the years ended December 31, 2015. Future minimum payments are $10,000 for the years ended December 31, 2015. The Company also leases office space for its administrative offices in St. Petersburg, Russia under the terms of an operating lease which expires on September 1, 2015. The payments are charged rental expense as incurred. Rental payments for the year ended 2014 and 2013 were approximately $15,000, and are included in general administrative expenses in the statement of operations. Future minimum payments are $10,000 for the year ending December 31, 2015.

Long-Term Debt-Related Party

Long-Term Debt-Related Party	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
8. Long-Term Debt-Related Party	On December 1, 2010, the Company entered into a loan arrangement with a company owned or controlled by one of our directors for a total amount of $1,150,000. The Company issued a note (“Note”) bearing interest at 9% per annum, payable quarterly, with a maturity date of March 31, 2013. Under terms of the Note dated December 1, 2010, the Company was obligated to repay the $1,150,000 prior to the maturity date upon raising $4 million or from proceeds of operating revenue. In connection with the terms of the Note, the Company issued the lender 6.8 million shares of common stock and 3.4 million warrants. The Company recorded the relative fair value of the shares and warrants of $294,297 as additional paid-in capital and established a discount on the debt. The discount was amortized over 24 months at an effective rate of 14.98%. The note is secured by aircraft to a limit of $2.9 million. On March 31, 2013, the repayment terms of the Note were modified, wherein the Company is obligated to repay the principal amount of $1,150,000 to the lender on or before the second anniversary of the date upon which the Company commences its revenue flight operations. The modification further provides that the Company will pay accrued interest to date on or before the first anniversary of the date upon which the Company commences its revenue flight operations. There were no other changes to the terms of the original note.

Development Stage Activities an

Development Stage Activities and Going Concern	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
9. Development Stage Activities and Going Concern	The Company is currently in the development stage and has not as of yet generated any revenue from its planned operation to provide scheduled air transportation from the United States to Russia, the Baltic States, and the Ukraine. The accompanying financial statements have been prepared using the accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. Currently, the Company has a minimum cash balance available for the payment of ongoing operating expenses, which would allow it to cover its operational costs and allow it to continue as a going concern, and it has incurred operating losses and experienced negative cash flows from operations since inception. The Company has a deficit accumulated as of December 31, 2014 of approximately $110.5 million. The Company has funded its activities through December 31, 2014 almost exclusively from debt and equity financings. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. For the years ended December 31, 2014 and 2013, the Company raised approximately $9.9 and $4.1 million, respectively, from private placements, funds needed to continue with the certification process, a process that must be completed before it can launch nonstop revenue service to Russia with its 747 aircraft. In addition to raising funds from private placements, the Company supplemented the financing of its ongoing operations through the issuance of common stock to pay operating expenses not paid with cash raised from the private placements. The continued operations of the Company over the long-term is dependent upon implementing airline service that will generate profits; until such time, however, it will continue to require substantial funds to continue with its aircraft and operational certification and carry out its business plan. In order to meet its ongoing operating cash requirements, management’s plans include financing activities such as private placements of its common stock and the continued issuance of common stock for services rendered by vendors, consultants, and other professionals. Management has also considered the overall pipeline effect that enhances the initial cash position of a startup carrier. It is the industry practice for passengers to purchase tickets in advance of their flights while service vendors bill the carrier later. So that a new airline will not fly empty on day one, approximately 30 days prior to the expected inaugural date, the DOT authorizes sales of tickets and cargo. Such funds from advance sales, estimated at approximately $3 million for the company, accumulate in an escrow account, and are released upon the issuance of the air carrier certificate. In the event we do not generate sufficient funds from revenues or financing through the issuance of our common stock or from debt financing, we may be unable to fully implement our business plan and pay our obligations as they become due, any of which circumstances would have a material adverse effect on our business prospects, financial condition, and results of operations While the Company believes it will be successful in obtaining the necessary financing to fund its operations, there are no assurances that such additional funding will be achieved and that it will succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts of liabilities that might be necessary should the Company be unable to continue in existence

Related Party

Related Party	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
10. Related Party	During the year ended December 31, 2014 and 2013, the Company issued 0 and 19,000,000, respectively, restricted shares of its $0.001 par value common stock to officers and directors. These restricted shares were valued at $0 and $1,980,000, respectively, or a weighted average price of approximately $ 0 and $0.018 per share, respectively. Its president and CEO was charged additional compensation of $ 0 and $15,000, which represents one hundred percent of the rent the Company paid for its original corporate headquarters during the years ended December 31, 2014 and 2013, respectively. Also, during the years ended December 31, 2014 this officer received salary of $121,600 and for the year ended December 31, 2013 received other compensation (in lieu of salary) of $12,853. A second officer, vice president – finance, was paid salary and additional compensation of $769,361 and $427,350 for the years ended December 31, 2014 and 2013, respectively, which represents amounts paid him for services in connection with the formation of new equity capital. A third officer, vice president, was paid additional compensation of $107,800 and $46,500 for services provided the Company during the years ended December 31, 2014 and 2013, respectively. A fourth officer, corporate secretary, was additional compensation of $11,968 and $15,960 for services provided the Company during the years ended December 31, 2014 and 2013, respectively. During 2014, Eastern Construction and Electric, Inc. of which Mr. Vick Luis Bolanos was elected and remains, president and chairman, purchased 190,000,000 shares of common stock for a total of $1,200,000 in four separate transactions.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
11. Subsequent Events	In June of 2015, Kalitta Air, LLC d/b/a Kalitta Maintenance filed a lien to accomplish security for credit extended to Baltia Air Lines by Kalitta under a contract for maintenance. This procedure was in the ordinary course of business and is not evidence of any disagreement Kalitta and Baltia Air lines or that Baltia Air Lines is not paying its obligations. The Company has evaluated subsequent events through the date these financial statements were issued and has determined that there are no subsequent events or transactions requiring recognition or disclosure in the financial statements.

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2014
Summary Of Significant Accounting Policies Policies
Basis of Presentation	The financial statements have been presented in a “development stage” format. Since inception, our primary activities have been raising of capital, obtaining financing and of obtaining route authority and approval from the DOT and the FAA. We have not commenced our principal revenue-producing activities.
Use of Estimates	The preparation of financial statements in conformity with generally accepted accounting principles requires our management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates.
Cash and Cash Equivalents	For financial statement presentation purposes, we consider those short-term, highly liquid investments with original maturities of three months or less to be cash or cash equivalents. There are no cash equivalents at December 31, 2014 and 2013.
Fair Value of Financial Instruments	FASB ASC Topic 825, Financial Instruments (
Fair Value Measurements	FASB ASC Topic 820, Fair Value Measurements and Disclosure (
Fair Value Hierarchy	FASB ASC 820 specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources (observable inputs), or reflect the Company’s own assumptions of market participant valuation (unobservable inputs). In accordance with FASB ASC 820, these two types of inputs have created the following fair value hierarchy: 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. FASB ASC 820 requires the use of observable market data if such data is available without undue cost and effort.
Measurement of Fair Value	The Company measures fair value as an exit price using the procedures described below for all assets and liabilities measured at fair value. When available, the Company uses unadjusted quoted market prices to measure fair value and classifies such items within Level 1. If quoted market prices are not available, fair value is based upon internally developed models that use whenever possible current market-based or independently-sourced market parameters such as interest rates and currency rates. Items valued using internally generated models are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be inputs that are readily observable. If quoted market prices are not available, the valuation model used generally depends on the specific asset or liability being valued. The determination of fair value considers various factors including interest rate yield curves and time value underlying the financial instruments.
Property and Equipment	Property and equipment is stated at cost less accumulated depreciation and amortization. Improvements are amortized using the straight-line method over the shorter of the estimated useful lives of the respective assets or the lease term. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 5-15 years. Expenditures for renewals and betterments are capitalized. Expenditures for minor items, repairs, and maintenance are charged to operations as incurred. Gain or loss upon sale or retirement due to obsolescence is reflected in the operating results in the period the event takes place.
Valuation of Long-Lived Assets	The Company periodically evaluates its long-lived assets for potential impairment in accordance with ASC 360, Property, Plant and Equipment,
Stock-Based Compensation Plans	Stock-based awards are accounted for using the fair value method in accordance with ASC 718, Share-Based Payments.
Loss per Common Share	The Company complies with accounting and disclosure requirements of ASC 262, Earnings Per Share. .
Income Taxes	Income taxes are recorded in accordance with ASC Topic 740, Accounting for Income Taxes (“ASC 740”) The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. As of December 31, 2014 and 2013, the Company did not have any uncertain tax positions. Generally, tax filings are no longer subject to income tax examinations by major taxing authorities for years before 2011. Any potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with U.S. federal, state, and local tax laws. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months. The Company’s policy is to record interest and penalties on uncertain tax provisions as income tax expense. As of December 31, 2014 and 2013, the Company has not accrued interest or penalties related to uncertain tax positions. Upon the attainment of taxable income by the Company, management will assess the likelihood of realizing the tax benefit associated with the use of the carryforwards and will recognize a deferred tax asset at that time.
Recent Accounting Pronouncements	In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220) – Reporting of Amounts Reclassified out of Accumulative Other Comprehensive Income In March 2013, the FASB issued Accounting Standards Update No. 2013-05, Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity In July 2013, the FASB issued ASU No. 2013-11, Income Taxes ( In June 2014, the FASB issued ASU 2014-10— Development Stage Entities - Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation The guidance removes the definition of a development stage entities and other reporting entities from U.S. GAAP. The guidance eliminates In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period Compensation-Stock Compensation In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In November 2014, the FASB issued ASU 20-14-16, Derivatives and Hedging - Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the Securities Exchange Commission (the "SEC") did not or are not believed by management to have a material impact on the Company's present or future financial statements.

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2014
Property And Equipment Tables
Property and Equipment	Estimated Useful Life 2014 2013 Airplane 10- 15 years $ 2,079,135 $ 1,540,756 Office equipment and other 5 - 7 years 433,751 394,486 Less accumulated depreciation (196,850 ) (140,756 ) $ 2,316,036 $ 1,794,486 Current depreciation $ 56,094 $ 16,500

Stock options and Warrants (Tab

Stock options and Warrants (Tables)	12 Months Ended
	Dec. 31, 2014
Stock Options And Warrants Tables
Schedule of weighted average number of shares	Warrants Outstanding Warrants Exercisable Number Weighted Number Outstanding Average Weighted Exercisable Weighted At Remaining Average At Average Exercise December 31, Contractual Exercise December 31, Exercise Price 2014 Life Price 2014 Price $ 0.02 480,000 0.26 $ 0.02 480,000 $ 0.02 - $ 0.05 20,075,000 0.38 $ 0.05 20,075,000 $ 0.05 - $ 0.08 4,458,333 0.30 $ 0.08 4,458,333 $ 0.08 - $ 0.10 252,500 0.12 $ 0.10 252,500 $ 0.10 - $ 0.25 156,000 0.16 $ 0.25 156,000 $ 0.25 25,421,833 0.80 $ 0.06 25,421,833
Stock options and warrants of option activity	Number of Weighted Remaining Warrants Average Term Outstanding Price (In Years) Warrants outstanding at December 31, 2013 60,428,066 $ 0.07 1.19 Granted in 2013 32,046,508 - Exercised - - - Canceled in 2013 20,146,566 Warrants outstanding at December 31, 2013 72,328,008 $ 0.05 0.80 0.05 Granted in 2014 327,500 Exercised - Canceled in 2014 47,233,675 Warrants outstanding at December 31, 2014 25,421,833 $ 0.06 0.80 Warrants exercisable at December 31, 2014 25,421,833

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	12 Months Ended		304 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014
Less accumulated depreciation	$ (196,850)	$ (140,756)	$ (196,850)
Net	2,316,036	1,794,486	2,316,036
Current Depreciation	56,094	16,488	442,522
Airplane [Member]
Property and Equipment	$ 2,079,135	1,540,756	2,079,135
Airplane [Member] | Minimum [Member]
Estimated Useful Life	10 years
Airplane [Member] | Maximum [Member]
Estimated Useful Life	15 years
Office equipment and other [Member]
Property and Equipment	$ 433,751	$ 394,486	$ 433,751
Office equipment and other [Member] | Minimum [Member]
Estimated Useful Life	5 years
Office equipment and other [Member] | Maximum [Member]
Estimated Useful Life	7 years

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Stockholders Equity Details Narrative
Common stock, shares issued	5,582,213,346	3,296,126,988
Common stock, shares outstanding	5,582,213,346	3,296,126,988
Preferred stock, shares issued	66,500	66,500
Preferred stock, shares outstanding	66,500	66,500
Stock issued and issuable for cash, Amount	$ 9,904,443	$ 4,132,514	$ 3,626,882	$ 7,807,242	$ 4,377,454	$ 3,701,900
Stock issued and issuable for cash, Shares	1,974,255,019	701,621,438
Shares issued for services, Amount	$ 4,084,127	$ 2,285,967	$ 7,686,588	$ 17,438,892	$ 15,009,850	$ 9,450,491
Shares issued for services, Shares	232,534,764	127,967,500

Stock options and Warrants (Det

Stock options and Warrants (Details) - 12 months ended Dec. 31, 2014 - $ / shares	Total
Outstanding [Member]
Number Outstanding (in Shares)	25,421,833
Weighted Average Contractual Life	9 months 18 days
Weighted Average Exercise Price	$ 0.06
Outstanding [Member] | Warrant Price 0.02 [Member]
Exercise Price	$ 0.02
Number Outstanding (in Shares)	480,000
Weighted Average Contractual Life	3 months 4 days
Weighted Average Exercise Price	$ 0.02
Outstanding [Member] | Warrant Price 0.05 [Member]
Exercise Price	$ 0.05
Number Outstanding (in Shares)	20,075,000
Weighted Average Contractual Life	4 months 17 days
Weighted Average Exercise Price	$ 0.05
Outstanding [Member] | Warrant Price 0.08 [Member]
Exercise Price	$ 0.08
Number Outstanding (in Shares)	4,458,333
Weighted Average Contractual Life	3 months 18 days
Weighted Average Exercise Price	$ 0.08
Outstanding [Member] | Warrant Price 0.10 [Member]
Exercise Price	$ 0.1
Number Outstanding (in Shares)	252,500
Weighted Average Contractual Life	1 month 13 days
Weighted Average Exercise Price	$ 0.1
Outstanding [Member] | Warrant Price 0.25 [Member]
Exercise Price	$ 0.25
Number Outstanding (in Shares)	156,000
Weighted Average Contractual Life	1 month 28 days
Weighted Average Exercise Price	$ 0.25
Exercisable [Member]
Number Exercisable (in Shares)	25,421,833
Exercisable [Member] | Warrant Price 0.02 [Member]
Weighted Average Exercise Price	$ 0.02
Number Exercisable (in Shares)	480,000
Exercisable [Member] | Warrant Price 0.05 [Member]
Weighted Average Exercise Price	$ 0.05
Number Exercisable (in Shares)	20,075,000
Exercisable [Member] | Warrant Price 0.08 [Member]
Weighted Average Exercise Price	$ 0.08
Number Exercisable (in Shares)	4,458,333
Exercisable [Member] | Warrant Price 0.10 [Member]
Weighted Average Exercise Price	$ 0.1
Number Exercisable (in Shares)	252,500
Exercisable [Member] | Warrant Price 0.25 [Member]
Weighted Average Exercise Price	$ 0.25
Number Exercisable (in Shares)	156,000

Stock options and Warrants (D24

Stock options and Warrants (Details 1) - $ / shares	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Warrants [Member]
Number of warrants, outstanding
Warrants outstanding, Beginning	72,328,008	60,428,066
Granted		32,046,508
Exercised
Canceled		20,146,566
Warrants outstanding, Ending		72,328,008
Weighted average exercise price
Warrants outstanding, Beginning	$ 0.05	$ 0.07
Exercised
Warrants outstanding, Ending		$ 0.05
Remaining Term (In Years)
Warrants outstanding Remaining Term at December 31, 2013		1 year 2 months 9 days
Warrants outstanding Remaining Term at December 31, 2014		9 months 18 days
Warrant [Member]
Number of warrants, outstanding
Warrants outstanding, Beginning	72,328,008
Granted	327,500
Exercised
Canceled	47,233,675
Warrants outstanding, Ending	25,421,833	72,328,008
Weighted average exercise price
Warrants outstanding, Beginning	$ 0.05
Exercised
Warrants outstanding, Ending	$ 0.06	$ 0.05
Warrants exercisable at December 31, 2014	25,421,833
Remaining Term (In Years)
Warrants outstanding Remaining Term at December 31, 2013	9 months 18 days
Warrants outstanding Remaining Term at December 31, 2014	9 months 18 days

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - Dec. 31, 2014 - USD ($)	Total
Income Taxes Details Narrative
Net operating loss carryovers expiration period	2,034
Net operating loss carryovers	$ 42,700,000

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Commitments And Contingencies Details Narrative
Operating Leases, Rent Expense	$ 438,000	$ 465,000
Operating Leases, Rent Expense, Net	23,000	20,000
Office Rent Expense	$ 15,000	$ 15,000

Development Stage Activities 27

Development Stage Activities and Going Concern (Details) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Development Stage Activities And Going Concern Details
Retained Earnings (Accumulated Deficit)	$ (110,543,922)	$ (95,140,507)
Company raised	$ 9,900,000	$ 4,100,000

Related Party (Details Narrativ

Related Party (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Weighted average price of approximately	$ 0	$ 0.018
Officers And Directors [Member]
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures (in Shares)	0	19,000,000
Stock Issued During Period, Shares, Issued for Services (in Shares)	0	1,980,000
Vice President Finance [Member]
Salaries, Wages and Officers' Compensation	$ 769,361	$ 427,350
Executive Vice President [Member]
Salaries, Wages and Officers' Compensation	107,800	46,500
Corporate Secretary [Member]
Salaries, Wages and Officers' Compensation	11,968	15,960
President [Member]
Officers' Compensation	0	15,000
Salaries, Wages and Officers' Compensation	$ 121,600	$ 12,853