Baltia Air Lines 10-Q 17 Nov 15 2015 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 20, 2015
Document And Entity Information
Entity Registrant Name	BALTIA AIR LINES INC
Entity Central Index Key	869,187
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		7,185,735,957
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current assets
Cash	$ 14,940	$ 185,613
Other current assets	3,000	24,908
Total current assets	17,940	210,521
Property and equipment, net	2,298,832	2,316,036
Other assets:
Security deposit and other	269,422	318,683
Total assets	2,586,194	2,845,240
Current liabilities
Accounts payable and accrued expenses	2,292,412	2,572,165
Notes payable	482,730	50,000
Accrued interest	570,191	$ 515,325
Deposits on common stock purchases	395,000
Total current liabilities	3,740,333	$ 3,137,490
Noncurrent liabilities
Long-term debt, net of discount	$ 1,150,000	1,150,000
Long-term accounts payables and accrued expenses		335,523
Total noncurrent liabilities	$ 1,150,000	1,485,523
Total liabilities	4,890,333	4,623,013
Stockholders' equity (deficit)
Preferred stock, $0.01 par value; 2,000,000 shares authorized, 66,500 issued	665	665
Preferred stock class B, $50,000 par value; 50 shares authorized and zero shares were issued and outstanding	0	0
Common stock, $.0001 par value; 6,986,000,000 shares authorized, 6,973,195,657 and 5,497,415,771 issued and outstanding at June 30, 2015 and December 31, 2014, respectively	697,319	549,741
Additional paid-in capital	113,896,502	108,215,743
Deficit accumulated during development stage	(116,898,625)	(110,543,922)
Total stockholders' equity (deficit)	(2,304,139)	(1,777,773)
Total liabilities and stockholders' equity (deficit)	$ 2,586,194	$ 2,845,240

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
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 class B, par value	$ 50,000	$ 50,000
Preferred stock class B, shares authorized	50	50
Preferred stock class B, shares issued	0	0
Preferred stock class B, shares outstanding	0	0
Common stock, par value	$ .0001	$ .0001
Common stock, shares authorized	6,986,000,000	6,986,000,000
Common stock, shares issued	6,973,195,657	5,497,415,771
Common stock, shares outstanding	6,973,195,657	5,497,415,771

STATEMENTS OF OPERATIONS (Unaud

STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended		313 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015
Statements Of Operations
Revenue
Costs and Expenses
General and administrative	$ 953,805	$ 4,361,613	$ 4,104,782	$ 9,634,461	$ 104,610,586
FAA certification costs	$ 644,447	$ 1,025,986	2,057,635	$ 1,784,492	7,419,024
Training					225,637
Depreciation	$ 4,672	$ 14,071	32,204	$ 42,023	474,726
Other					568,245
Interest	$ 48,882	$ 26,104	$ 160,082	$ 82,867	1,970,206
Loss on sale of assets					1,607,183
Total costs and expenses	$ 1,651,806	$ 5,427,774	$ 6,354,703	$ 11,543,843	116,875,607
Net loss before income taxes	$ (1,651,806)	$ (5,427,774)	$ (6,354,703)	$ (11,543,843)	(116,875,607)
Provision for income taxes					23,018
Deficit accumulated during development stage	$ (1,651,806)	$ (5,427,774)	$ (6,354,703)	$ (11,543,843)	$ (116,898,625)
Net loss per weighted share, basic and fully diluted	$ (0.0002)	$ (0.0012)	$ (0.0010)	$ (0.0029)
Weighted average number of common shares outstanding, basic and fully diluted	6,843,823,656	4,611,259,608	6,176,792,886	3,982,218,192

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, 2010	$ 665	$ 111,881	$ 51,747,348	$ (49,572,940)	$ 2,286,954
Beginning 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
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
Prior period adjustment, Amount		$ 14,798	(14,798)
Prior period adjustment, Shares		147,987,304
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
Stock issued and issuable for cash, Amount		$ 149,454	5,580,920		5,730,374
Stock issued and issuable for cash, Shares		1,494,535,453
Shares issued for services (net of shares cancelled), Amount		$ (1,876)	99,839		97,963
Shares issued for services (net of shares cancelled), Shares		(18,755,567)
Net loss				(6,354,703)	(6,354,703)
Ending balance, Amount at Sep. 30, 2015	$ 665	$ 697,319	$ 113,896,502	$ (116,898,625)	$ (2,304,139)
Ending balance, Shares at Sep. 30, 2015	66,500	6,973,195,657

STATEMENTS OF CASH FLOWS (Unaud

STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended		313 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015
Cash flows from operations
Deficit accumulated during development stage	$ (6,354,703)	$ (11,543,843)	$ (116,898,625)
Adjustment to reconcile deficit accumlated during development stage to cash used in opeating activities:
Depreciation and amortization	$ 32,204	$ 42,023	474,726
Amortization of loan discount			294,977
Expenses paid issuance of common stock and options	$ 97,963	$ 3,186,958	63,617,799
Loss on sale of assets			1,607,183
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	21,908		397,301
Security deposit	49,261		49,261
Accounts payable and accrued expenses	(560,410)	$ 1,439,864	6,014,086
Net cash used by operating activities	(6,713,777)	(6,874,998)	(44,443,292)
Cash flows from investing activities
Purchase of equipment	$ (15,000)	$ (577,643)	(4,462,290)
Proceeds from sale of assets			144,164
Security deposits		$ (1,390)	(318,683)
Net cash used by investing activities	$ (15,000)	(579,033)	(4,636,809)
Cash flows from financing activities
Proceeds from issuance of common stock	5,730,374	7,117,038	46,622,792
Deposits on common stock purchases	$ 395,000	$ 274,000	395,000
Proceeds from issuance of preferred stock			2,753
Proceeds from short-term loans	$ 432,730	$ 81,000	482,730
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	$ 6,558,104	$ 7,472,038	49,095,041
Net increase (decrease) in cash	(170,673)	18,007	$ 14,940
Cash, beginning of period	185,613	11,549
Cash, end of period	14,940	29,556	$ 14,940
Supplemental cash flow disclosures:
Cash paid during the year for interest	$ 229	$ 5,000

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Basis of Presentation	The Financial Statements presented herein have been prepared by us in accordance with the accounting policies described in our December 31, 2014 Annual Report on Form 10-K and should be read in conjunction with the notes to financial statements which appear in that report. The preparation of these financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates, including those related to intangible assets, income taxes, insurance obligations and contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other resources. Actual results may differ from these estimates under different assumptions or conditions. In the opinion of management, the information furnished in this Form 10-Q reflects all adjustments necessary for a fair statement of the financial position and results of operations and cash flows as of and for the nine month periods ended September 30, 2015 and 2014. All such adjustments are of a normal recurring nature. The Financial Statements have been prepared in accordance with the instructions to Form 10-Q and therefore do not include some information and notes necessary to conform to annual reporting requirements. The financial statements have been presented in a "development stage" format. Since inception, our primary activities have been raising of capital, obtaining financing and obtaining FAA Certification from the U.S. Department of Transportation. We have not commenced our principal revenue producing activities. There is no assurance the Company will commence operation in the future or that those operations will be profitable.

Earnings_Loss Per Share

Earnings/Loss Per Share	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Earnings/Loss Per Share	Net loss per share is computed by dividing income available to common shareholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. Diluted earnings per share assumes that any dilutive convertible securities outstanding were converted, with related preferred stock dividend requirements and outstanding common shares adjusted accordingly. It also assumes that outstanding common shares were increased by shares issuable upon exercise of those stock options for which market price exceeds the exercise price, less shares which could have been purchased by us with the related proceeds. In periods of losses, diluted loss per share is computed on the same basis as basic loss per share as the inclusion of any other potential shares outstanding would be anti-dilutive. Due to the net losses reported dilutive common equivalent shares were excluded from the computation of diluted loss per share, as inclusion would be anti-dilutive for the periods presented. At September 30, 2015, there are no outstanding common stock equivalents.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Stockholders' Equity	Stock Issued for Services During the nine months ended September 30, 2015, we issued (cancelled) (18,755,567) shares of our common stock in exchange for services. The shares are not registered and are subject to restrictions as to transferability. Stock Issued for Cash During the nine months ended September 30, 2015, we issued 1,494,535,453 shares of our common stock in exchange for cash. The shares sold for cash for approximately $0.0038 per share.

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2015
Notes to Financial Statements
Notes Payable	On March 31, 2013 the note payable to Eastern Construction & Electric, Inc. was modified as to the repayment of the note. The repayment was modified to read "Company will repay the principal amount of $1,150,000 to lender on or before the second anniversary of the date upon which the company commences its revenue flight operations. 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." All other terms of the agreement remain the same. In 2013 and 2014, the Company issued a note payable to its attorney for services rendered. On April 30, 2015, the Company extended the due date of the note until September 30, 2016. The principal amount due as of September 30, 2015 is $347,532. Interest accrues at 1% per month. In February 2015, one of the Company’s investors loaned the Company $200,000 with interest at 10%. The company repaid the investor $100,000 during June 2015 and $25,000 during July 2015. Interest accrued to September 30, 2015 is $570,191.

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative)	9 Months Ended
	Sep. 30, 2015$ / sharesshares
Stockholders Equity Details Narrative
Shares issued for services (net of shares cancelled), Shares	18,755,567
Stock issued for cash, Shares	1,494,535,453
Weighted average per share | $ / shares	$ 0.0038

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Notes Payable Details Narrative
Notes payable	$ 347,532
Accrued interest	$ 570,191	$ 515,325