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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1996
BALTIA AIR LINES, INC. (Baltia)
(Exact name of registrant as specified in its charter)
STATE of NEW YORK 11-2989648
(State of Incorporation) (IRS Employer Identification No.)
63-25 SAUNDERS STREET, SUITE 7 I, REGO PARK, NY 11374
(Address of principal executive offices)
Registrant s telephone number, including area code: (718) 275 5205
Check whether the issuer (1) filed all reports required to be filed by Section
13, or 15(d) of the Exchange Act during the past 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
Baltia s Initial Public Offering Registration Statement became effective
September 16, 1996. This is the first report to which Baltia is subject to
filing under Section 13 or 15(d) of the Exchange Act.
Securities Registered: SB-2 Registration Statement No. 333-20006-NY,
PP.31-21 DESCRIPTION OF SECURITIES, which is hereby incorporated by reference.
BALTIA IS A CORPORATE ISSUER
The number of shares outstanding of each of the issuer s classes of common
equity, as of September 30, 1996:
Class Number of Shares
Common Stock Par Value $.0001 Per Share 4,300,000
Transitional Small Business Disclosure Format (Check one): No X
DOCUMENTS INCORPORATED BY REFERENCE
SB-2 Registration Statement No. 333-20006-NY
PART I-FINANCIAL INFORMATION
Item 1. Financial Statement.
<TABLE>
BALTIA AIR LINES, INC
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
<CAPTION>
September 30 December 31 December 31 December 31
1996 1995 1994 1993
(Unaudited)
<S> <C> <C> <C> <C>
ASSETS
Current assets:
Cash $ 10,164 $ 6,913 $ 1,481 $ 7
Other assets:
Deferred offering costs 150,000 0 0 0
Total assets $ 160,164 $ 6,913 $ 1,481 $ 7
LIABILITIES AND STOCKHOLDERS DEFICIT
Current liabilities:
Accounts payable $ 454,038 $ 515,188 $ 505,043 $ 488,915
Accounts payable to stockholders 326,012 176,012 176,012 176,012
Accrued expenses to stockholders 270,928 270,928 270,928 270,928
Interest payable to stockholders 304,041 253,048 185,058 117,068
Other liabilities to stockholders 22,142 22,142 22,142 22,142
Notes payable to stockholders 1,210,047 1,097,615 1,057,289 1,037,659
Total current liabilities 2,587,208 2,334,933 2,216,472 2,112,724
Accounts payable to stockholder 1,628,432 1,628,432 1,400,614 1,323,880
Total liabilities 4,215,640 3,963,365 3,617,086 3,436,604
Redeemable common stock 400,000 400,000 0 0<PAGE>
Stockholders deficit:
Common stock - $.0001 par value;
100,000,000 shares authorized, 4,350,000,
4,350,000, 4,043,850 and 3,853,750 shares issued
and outstanding at June 30, 1996, and December 31, 435 435 404 385
1995, 1994 and 1993, respectively
Preferred stock - no par value;
5,000 shares authorized, 0 shares issued and
outstanding at June 30,1996, and December 31, 0 0 0 0
1995, 1994 and 1993, respectively
Additional paid-in capital 296,281 296,281 524,964 523,081
Contributed capital 1,422,050 1,325,516 954,660 497,410
Deficit accumulated
during development stage (6,174,242) (6,005,684) (5,095,633) (4,457,473)
Total stockholders deficit (4,455,476) (4,356,452) (3,615,605) (3,436,597)
Commitments and contingencies
Total liabilities and stockholders deficit $ 160,164 $ 6,913 $ 1,481 $ 7
</TABLE>
<TABLE>
STATEMENT OF CASH FLOWS
<CAPTION> August 24, 1989
(Inception) to
Nine Months End Years Ended September 30,
September 30, December 31,
1996 1995 1995 1994 1993 1996
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Cash flow from operating activities:
(168,558) $ (519,422) $ (910,051) $ (638,160) $ (266,889) $ (6,174,242)<PAGE>
Net loss $
Adjustments to reconcile net loss to
net cash provided by operation:
Depreciation 0 0 0 0 0 219,410
Increase in accounts payable 88,850 91,841 237,963 92,863 70,440 2,408,482
Increase in accrued expenses 0 0 0 0 79,750 270,928
Increase in other liabilities 0 0 0 0 630 22,142
Increase in interest payable 50,993 50,993 67,990 67,990 68,640 304,041
Net cash (used) for operating
activities (28,716) (376,589) (604,098) (477,307) (47,429) (2,949,240)
Cash flows form investing activities:
Increase in deferred offering costs (150,000) 0 0 0 0 (150,000)
Purchase of equipment 0 0 0 0 0 (219,410)
Net cash (used) for
investing activates (150,000) 0 0 0 0 (369,410)
Cash flows from financing activities:
Proceeds from shareholder loans 112,432 35,898 40,326 19,630 4,659 1,210,047
Proceeds from issuance
of common stock 0 86,310 107,851 1,901 42,336 1,133,219
Increase in redeemable
Common stock 0 0 400,000 0 0 400,000
Decrease in paid-in capital 0 0 (336,503) 0 0 (336,503)
Purchase and retirement
Of treasury stock 0 0 0 0 0 (500,000)
Contributed capital 69,534 265,313 397,856 457,250 0 1,422,050
Net cash provided for
Financing activities 181,966 387,521 609,530 478,781 46,995 3,328,813<PAGE>
Net increase (decrease) in cash 3,251 10,932 5,432 1,474 (434) 10,164
Cash at beginning of period 6,913 1,481 1,481 7 441 0
Cash at end of period 10,164 12,413 6,913 1,481 7 10,164
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
Nine Months Ended Years Ended August 24, 1989
September 30, December 31 (Inception) to
September 30,
1996 1995 1995 1994 1993 1996
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Expenses
General and
administrative 37,126 59,251 98,017 16,429 115,803 1,949,047
Professional fees 3,810 108,296 279,543 93,641 80,007 1,852,313
Service contributions 69,534 265,313 397,856 457,250 0 1,422,050
Training expenses 0 0 0 0 0 225,637
Abandoned fixed asset
acquisition 0 0 0 0 0 205,162<PAGE>
Salaries and benefits 0 0 0 0 0 137,702
Total expenses 110,470 432,860 775,416 567,320 195,810 5,791,911
Interest expense net 58,088 86,562 134,635 70,840 71,079 382,331
Net loss $ (168,558) $ (519,422) $ (910,051) $ (638,160) $ (266,889) $ (6,174,242)
Net loss per share $(0.04) $(0.12) $(0.20) $(0.16) $(0.07) $(1.42)
/TABLE
<PAGE>
Item 2. Management s Discussion and Analysis or Plan of Operation. SB-2
Registration Statement No. 333-20006-NY pp. 30-40 incorporated herein became
effective 9/16/96. In the pursuing two weeks virtually no change has occurred.
PART II -OTHER INFORMATION
Item 1. Legal Proceedings. Refer to SB-2 Registration Statement No. 333-20006-
NY, page 48.
Item 2. Intentionally omitted.
Item 3. Intentionally omitted.
Item 4. Intentionally omitted.
Item 5. Intentionally omitted.
Item 6. Exhibits and Reports on Form 8-K. Refer to exhibits on file with the
Securities and Exchange Commission in conjunction with SB-2 Registration
Statement No. 333-20006-NY incorporated herein.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Baltia Air Lines, Inc., Registrant
Date: 6-2-1997 (Signature)
By: Igor Dmitrowsky, President
Date: 6-2-1997 (Signature)
By: Walter Kaplinsky, Secretary
<PAGE>
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