10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For The Quarterly Period Ended September 30, 2015

or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to ________________

Commission File Number: 000-52593

SAKER AVIATION SERVICES, INC.

(Exact Name of Registrant as Specified in Its Charter)

Nevada	87-0617649
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
20 South Street, Pier 6 East River, New York, NY	10004
(Address of principal executive offices)	(Zip Code)

(212) 776-4046

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required 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 o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web-site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes x         No o

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 the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule

12b-2 of the Exchange Act.

 Large accelerated filer  o Accelerated filer  o Non-accelerated filer  o 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).

Yes o          No x

As of November 20, 2015, the registrant had 33,107,610 shares of its common stock, $0.001 par value, issued and outstanding.

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

Form 10-Q

September 30, 2015

Index

PART I - FINANCIAL INFORMATION
	ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	Page
	Balance Sheets as of September 30, 2015 (unaudited) and December 31, 2014	3
	Statements of Operations for the Three and Nine Months Ended September 30, 2015 and 2014 (unaudited)	4
	Statements of Cash Flows for the Nine Months Ended September 30, 2015 and 2014 (unaudited)	5
	Notes to Financial Statements (unaudited)	6
	ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	10
	ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	15
	ITEM 4.  CONTROLS AND PROCEDURES	15
PART II - OTHER INFORMATION
	ITEM 6. EXHIBITS	16
SIGNATURES		17

2 

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

ASSETS

	September 30, 2015			December 31, 2014
	(unaudited)
CURRENT ASSETS
Cash	$	717,260		$	531,003
Accounts receivable		2,569,637			1,739,452
Assets held for sale		---			787,780
Note Receivable, current portion		300,000			---
Inventories		89,464			79,965
Prepaid expenses and other current assets		1,127,642			494,880
Total current assets		4,804,003			3,633,080
PROPERTY AND EQUIPMENT, net
of accumulated depreciation and amortization of $2,028,121 and $1,610,983 respectively		1,605,098			1,858,840
OTHER ASSETS
Deposits		165,263			178,524
Intangible assets		35,000			142,500
Note Receivable, less current portion		200,000			---
Goodwill		530,000			530,000
Deferred income taxes		308,000			363,000
Total other assets		1,238,263			1,214,024
TOTAL ASSETS	$	7,647,364		$	6,705,944
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$	1,355,087		$	984,966
Liabilities held for sale		---			31,781
Line of credit		200,000			550,000
Customer deposits		128,009			134,761
Accrued expenses		1,302,970			484,754
Notes payable – current portion		329,710			372,457
Total current liabilities		3,315,776			2,558,719
LONG-TERM LIABILITIES
Notes payable - less current portion		720,000			956,979
Total liabilities		4,035,776			3,515,698
STOCKHOLDERS’ EQUITY
Preferred stock - $.001 par value; authorized 9,999,154;		---			---
none issued and outstanding
Common stock - $.001 par value; authorized 100,000,000;
33,107,610 shares issued and outstanding as of    September 30, 2015 and December 31, 2014		33,107			33,107
Additional paid-in capital		19,987,978			19,962,482
Accumulated deficit		(16,409,497	)		(16,805,343	)
TOTAL STOCKHOLDERS’ EQUITY		3,611,588			3,190,246
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	7,647,364		$	6,705,944

See notes to condensed consolidated financial statements.

3 

          SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)  

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2015			2014			2015			2014
REVENUE	$	4,729,808		$	4,801,278		$	11,774,659		$	12,224,338
COST OF REVENUE		2,255,109			2,694,751			5,354,570			6,555,862
GROSS PROFIT		2,474,699			2,106,527			6,420,089			5,668,476
SELLING, GENERAL AND ADMINISTRATIVE		1,833,063			1,650,934			4,891,708			4,395,786
EXPENSES
OPERATING INCOME FROM CONTINUING OPERATIONS		641,636			455,593			1,528,381			1,272,690
OTHER INCOME (EXPENSE)
OTHER (EXPENSE) INCOME, net		---			(5,000	)		1,666			16,194
INTEREST INCOME		---			788			---			6,693
INTEREST EXPENSE		(4,580	)		(12,376	)		(16,730	)		(41,582	)
TOTAL OTHER EXPENSE, net		(4,580	)		(16,588	)		(15,064	)		(18,695	)
INCOME FROM CONTINUING OPERATIONS, before income taxes		637,056			439,005			1,513,317			1,253,995
INCOME TAX EXPENSE		352,000			224,000			808,000			605,000
INCOME FROM CONTINUING OPERATIONS		285,056			215,005			705,317			648,995
LOSS FROM DISCONTINUED OPERATIONS, net of income taxes		(180,327	)		(35,134	)		(309,471	)		(248,095	)
NET INCOME	$	104,729		$	179,871		$	395,846		$	400,900
Basic and Diluted Net Income Per Common Share	$	0.01		$	0.01		$	0.01		$	0.01
Weighted Average Number of Common Shares – Basic		33,107,610			33,107,610			33,107,610			33,106,511
Weighted Average Number of Common Shares - Diluted		33,674,676			34,289,088			33,674,676			34,287,989

See notes to condensed consolidated financial statements.

4 

 SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Nine Months Ended September 30,
	2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	395,846		$	400,900
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		639,146			421,105
Stock based compensation		25,496			23,092
Changes in operating assets and liabilities:
Accounts receivable, trade		(519,795	)		(465,205	)
Inventories		209,875			67,358
Prepaid expenses and other current assets		(602,700	)		(410,970	)
Deposits		13,261			1,660
Deferred income taxes		55,000			15,000
Accounts payable		358,656			715,259
Customer deposits		(6,752	)		92,734
Accrued expenses		797,900			170,606
TOTAL ADJUSTMENTS		970,087			630,939
NET CASH PROVIDED BY OPERATING ACTIVITIES		1,365,933			1,031,539
CASH FLOWS FROM INVESTING ACTIVITIES
(Issuance) Payment of note receivable		(500,000	)		61,829
Purchase of property and equipment		(49,950	)		(159,103	)
NET CASH USED IN INVESTING ACTIVITIES		(549,950	)		(97,274	)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of notes payable		(279,726	)		(785,727	)
(Repayment) Proceeds from line of credit		(350,000	)		175,000
NET CASH USED IN FINANCING ACTIVITIES		(629,726	)		(610,727	)
NET CHANGE IN CASH		186,257			323,538
CASH – Beginning		531,003			146,405
CASH – Ending	$	717,260		$	469,943

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the periods for:
Interest	$	16,730	$	71,101
Income taxes	$	310,561	$	207,287

See notes to condensed consolidated financial statements.

5 

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 1 - Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of Saker Aviation Services, Inc. (the “Company”) and its subsidiaries have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial statements and in accordance with the instructions to Form 10-Q. Accordingly, they do not include all of the information and disclosures required by GAAP for annual financial statements and should be read in conjunction with the financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

The condensed consolidated balance sheet and statements of cash flows as of September 30, 2015 and the condensed consolidated statements of operations for the three and nine months ended September 30, 2015 and 2014 have been prepared by the Company without audit. In the opinion of the Company’s management, all necessary adjustments (consisting of normal recurring accruals) have been included to make the Company’s financial position as of September 30, 2015 and its results of operations and cash flows for the nine months ended September 30, 2015 not misleading. The results of operations for the three and nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for any full year or any other interim period.

NOTE 2 – Liquidity

As of September 30, 2015, the Company had cash of $717,260 and had a working capital surplus of $1,488,227. The Company generated revenue from continuing operations of $11,774,659 and income from continuing operations of $1,513,317 for the nine months ended September 30, 2015.

On May 17, 2013, the Company entered into a loan agreement with PNC Bank (the “PNC Loan Agreement”). The PNC Loan Agreement contained three components: (i) a $2,500,000 non-revolving acquisition line of credit (the “PNC Acquisition Line”); (ii) a $1,150,000 working capital line (the “PNC Working Capital Line”); and (iii) a $280,920 term loan (the “PNC Term Loan”). Substantially all assets of the Company are pledged as collateral under the PNC Loan Agreement.

Proceeds of the PNC Acquisition Line were able to be dispersed, based on parameters defined in the PNC Loan Agreement, until May 17, 2014 (the “Conversion Date”). As of the Conversion Date, there was $1,350,000 outstanding under the PNC Acquisition Line. The payment terms provide that 30 days following the Conversion Date, and continuing on the same day of each month thereafter, the Company is required to make equal payments of principal over a 60 month period. Interest on the outstanding principal continues to accrue at a rate equal to one-month LIBOR plus 275 basis points (2.94% as of September 30, 2015). As of September 30, 2015, the outstanding balance of the PNC Acquisition Line was $990,000.

The PNC Working Capital Line may be dispersed for working capital and general corporate purposes. Interest on outstanding principal accrues at a rate equal to daily LIBOR plus 250 basis points (2.69% as of September 30, 2015) and is renewable at PNC Bank’s option on or before November 30, 2015. As of September 30, 2015, the outstanding balance of the PNC Working Capital Line was $200,000.

The PNC Term Loan was dispersed to settle miscellaneous Company debt of the same amount. Interest on outstanding principal accrues at a rate equal to one-month LIBOR plus 275 basis points (2.94% as of September 30, 2015) with principal and interest payments made over a 34 month period. At September 30, 2015, $56,184 was outstanding.

The Company is party to a concession agreement, dated as of November 1, 2008, with the City of New York for the operation of the Downtown Manhattan Heliport (the “Concession Agreement”). Pursuant to the terms of the Concession Agreement, the Company must pay the greater of 18% of the first $5 million in program year gross receipts and 25% of gross receipts in excess of $5 million or minimum annual guaranteed payments. The Company paid the City of New York $1,200,000 in the first year of the term and minimum payments are scheduled to increase to approximately $1,700,000 in the final year of Concession Agreement, which expires on October 31, 2018, unless terminated earlier. During the nine months ended September 30, 2015 and 2014, the Company incurred approximately $2,100,000 and $2,050,000 in concession fees, respectively, which is recorded in the cost of revenue.

6 

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

The Mayor of New York City has been urged to reduce air tour activity at the Heliport.  Air tours have historically represented the majority of activity at the Heliport.  Pursuant to the terms of the Concession Agreement, the City of New York must provide 25 days’ notice to terminate the Concession Agreement.  Any such reduction or termination would negatively impact the business and financial results of the Company and its management company at the Heliport, Empire Aviation which, as previously disclosed, is owned by the children of Alvin Trenk, the Company’s CEO and a member of its Board of Directors.  The Company incurred management fees with Empire Aviation of approximately $2,700,000 and $2,400,000 during the nine months ended September 30, 2015 and 2014, respectively, which is recorded in operating expenses.  The Company and Empire have also contributed to the Helicopter Tourism and Jobs Council (“HTJC”), an association that lobbies on behalf of the helicopter air tour industry, and which is engaged in discussions with the Mayor’s office.  Mr. Trenk is also an active participant with HJTC, which is managed by his grandson. 

NOTE 3 - Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, FirstFlight Heliports, LLC (“FFH”), its FBO at Garden City (Kansas) Regional Airport (“FBOGC”) and Phoenix Rising Aviation, Inc. (“PRA”), see Note 5, Discontinued Operations. All significant inter-company accounts and transactions have been eliminated in consolidation.

Reclassifications

Certain reclassifications were made to prior year amounts to conform to the current year presentation. None of the reclassifications affected the Company’s net income in any period.

Net Income Per Common Share

Net income was $104,729 and $395,846 for the three and nine months ended September 30, 2015, respectively. Net income was $179,871 and $400,900 for the three and nine months ended September 30, 2014, respectively. Basic net income per share applicable to common stockholders is computed based on the weighted average number of shares of the Company’s common stock outstanding during the periods presented. Diluted net income per share reflects the potential dilution that could occur if securities or other instruments to issue common stock were exercised or converted into common stock. Potentially dilutive securities, consisting of options and warrants, are excluded from the calculation of the diluted income per share when their exercise prices were greater than the average market price of the common stock during the period. 

The following table sets forth the components used in the computation of basic net income per share:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2015		2014 (1)		2015		2014 (1)
Weighted average common shares outstanding, basic		33,107,610		33,107,610		33,107,610		33,106,511
Common shares upon exercise of options and warrants		567,066		1,181,478		567,066		1,181,478
Weighted average common shares outstanding, diluted		33,674,676		34,289,088		33,674,676		34,287,989

(1) Potential common shares of 1,550,000 for the nine months ended September 30, 2014 were excluded from the computation of diluted earnings as their exercise prices were greater than the average market price of the common stock during the period.

7 

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Stock Based Compensation

Stock-based compensation expense for all share-based payment awards are based on the grant-date fair value. The Company recognizes these compensation costs over the requisite service period of the award, which is generally the option vesting term. For the nine months ended September 30, 2015 and 2014, the Company incurred stock-based compensation costs of $25,496 and $23,092 respectively. Such amounts have been recorded as part of the Company’s selling, general and administrative expenses in the accompanying condensed consolidated statements of operations. As of September 30, 2015, the unamortized fair value of the options was $0.

Option valuation models require the input of highly subjective assumptions, including the expected life of the option. In management's opinion, the use of such option valuation models does not necessarily provide a reliable single measure of the fair value of the Company’s employee stock options. Management holds this view partly because the Company's employee stock options have characteristics significantly different from those of traded options and also because changes in the subjective input assumptions can materially affect the fair value estimate.

Recently Issued Accounting Pronouncements

In April 2014, the FASB issued Accounting Standards Update No. 2014-08 “Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360) – Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” (ASU 2014-08) which requires entities to change the criteria for reporting discontinued operations and enhance convergence of the FASB’s and International Accounting Standard Board’s (IASB) reporting requirements for discontinued operations so as not to be overly complex or difficult to apply to stakeholders. Only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on the entity’s operations and financial results will be reported as discontinued operations in the financial statements. ASU 2014-08 is effective for fiscal years beginning on or after December 15, 2014 and interim periods thereafter. ASU 2014-08 is effective for the Company’s financial statements for fiscal years beginning January 1, 2015. Based on the Company’s evaluation of ASU 2014-08, the adoption of this statement on January 1, 2015 did not have a material impact on the Company’s financial statements.

NOTE 4 - Inventories

Inventories consist primarily of aviation fuel which the Company sells to its customers. The Company also maintains fuel inventories for commercial airlines, to which it charges into-plane fees when servicing commercial aircraft. A summary of inventories as of September 30, 2015 and December 31, 2014 is set forth in the table below:

	September 30, 2015		December 31, 2014
Fuel inventory	$	78,471	$	68,891
Other inventory		10,993		11,074
Total inventory	$	89,464	$	79,965

Included in inventories are amounts held for third parties of $72,010 and $76,021 as of September 30, 2015 and December 31, 2014, respectively, with an offsetting liability included as part of accrued expenses.

NOTE 5 – Discontinued Operations

As disclosed in a Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on July 6, 2015, the Company entered into a Stock Purchase Agreement, dated June 30, 2015, by and between the Company and Warren A. Peck (the “Agreement”). Pursuant to the Agreement, Mr. Peck was to purchase all of the outstanding capital stock of the Company’s wholly-owned subsidiary Phoenix Rising Aviation, Inc. (“PRA”). The closing of the transactions contemplated by the Agreement occurred on September 30, 2015. At that time, in exchange for all of the outstanding capital stock of PRA, Mr. Peck was required to pay the Company $250,000 in cash, execute a $250,000 Secured Promissory Note in favor of the Company; and (iii) execute an Installment Payment Agreement giving the Company rights to earn-out payments based on EBITDA thresholds achieved by PRA post-closing. As a result of the sale, PRA results of operations have been reported as discontinued operations in the Condensed Consolidated Balance Sheets and Statements of Operations for the three and nine months ended September 30, 2015 and 2014. The Agreement, Secured Promissory Note and Installment Payment Agreement were included as exhibits with the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2015. On September 30, 2015 the Company and Mr. Peck executed the Closing Cash Agreement, which is filed herewith. The Agreement provided for Mr. Peck to sign over to the Company title to an aircraft in temporary lieu of the $250,000 cash consideration due at closing. As further described in the Agreement, the Company shall receive the $250,000 closing cash payment, plus other identified costs, when the aircraft is subsequently sold. The $250,000 closing cash consideration plus receivables associated with the Note are therefore reflected as a Note Receivable in the Condensed Consolidated Balance Sheets as of September 30, 2015.

8 

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Components of discontinued operations are as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2015			2014			2015			2014
Revenue	$	900,408		$	716,145		$	1,763,944		$	1,446,372
Cost of revenue		787,154			499,859			1,346,760			1,024,516
Gross profit		113,254			216,286			417,184			421,856
Operating expenses		387,448			231,733			867,765			731,432
Operating (loss) from discontinued operations		(274,194	)		(15,447	)		(450,581	)		(309,576	)
Interest expense		(7,774	)		(9,687	)		(24,575	)		(29,519	)
Other income (expense)		26,641			(50,000	)		24,685			(50,000	)
Income tax benefit		75,000			40,000			141,000			141,000
Net (loss) from discontinued operations		(180,327	)		(35,134	)		(309,471	)		(248,095	)
Basic net (loss) per common share		(0.01	)		(0.00	)		(0.01	)		(0.01	)
Weighted average number of shares outstanding, basic		33,107,610			33,107,610			33,107,610			33,106,511

NOTE 6 – Related Parties

The law firm of Wachtel & Missry, LLP provides certain legal services to the Company and its subsidiaries from time to time. William B. Wachtel, Chairman of the Company’s Board of Directors, is a managing partner of such firm. During the nine months ended September 30, 2015 and 2014, no services were provided to the Company by Wachtel & Missry, LLP.

As described in more detail in Note 2, Liquidity, the Company is party to a management agreement with Empire Aviation, an entity owned by the children of Alvin S. Trenk, our CEO and a member of our Board of Directors.

NOTE 7 - Litigation

From time to time, the Company and/or its subsidiaries may be a party to one or more claims or disputes which may result in litigation. The Company's management does not, however, presently expect that any such matters will have a material adverse effect on the Company's business, financial condition or results of operations.

9 

Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read together with the accompanying consolidated condensed financial statements and related notes in this report. This Item 2 contains forward-looking statements that involve risks and uncertainties. Undue reliance should not be placed on these forward-looking statements, which speak only as of the date of this report. Actual results may differ materially from those expressed or implied in such forward-looking statements. Factors which could cause actual results to differ materially are discussed throughout this report and include, but are not limited to, those set forth at the end of this Item 2 under the heading "Cautionary Statement Regarding Forward Looking Statements." Additional factors are under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

The terms “we,” “us,” and “our” are used below to refer collectively to the Company and the subsidiaries through which our various businesses are actually conducted.

OVERVIEW

Saker Aviation Services, Inc. (“we”, “us”, “our”) is a Nevada corporation. Our common stock, $0.001 par value per share (the “common stock”), is publicly traded on the OTCQB Marketplace (“OTCQB”) under the symbol “SKAS”. Through our subsidiaries, we operate in the aviation services segment of the general aviation industry, in which we serve as the operator of a heliport, a fixed base operation (“FBO”), as a provider of aircraft maintenance, repair and overhaul (“MRO”) services, and as a consultant for a seaplane base that we do not own. FBOs provide ground-based services, such as fueling and aircraft storage for general aviation, commercial and military aircraft, and other miscellaneous services.

We were formed on January 17, 2003 as a proprietorship and were incorporated in Arizona on January 2, 2004. We became a public company as a result of a reverse merger transaction on August 20, 2004 with Shadows Bend Development, Inc., an inactive public Nevada corporation, and subsequently changed our name to FBO Air, Inc. On December 12, 2006, we changed our name to FirstFlight, Inc. On September 2, 2009, we changed our name to Saker Aviation Services, Inc.

Our business activities are carried out as the operator of the Downtown Manhattan (New York) Heliport, as an FBO at the Garden City (Kansas) Regional Airport, as a consultant to the operator of a seaplane base in New York City, and prior to our divestiture, as an MRO at the Bartlesville (Oklahoma) Municipal Airport.

The Garden City facility became part of our company as a result of our acquisition of the FBO assets of Central Plains Aviation, Inc. (“CPA”) in March 2005.

Our business activities at the Downtown Manhattan (New York) Heliport facility (the “Heliport”) commenced as a result of the Company’s award of the Concession Agreement by the City of New York to operate the Heliport, which we assigned to our subsidiary, FirstFlight Heliports, LLC d/b/a Saker Aviation Services (“FFH”). See Note 2 to the condensed consolidated financial statements included in Item 1. of this report.

The Bartlesville facility became part of our company as a result of our acquisition of all of the outstanding stock of Phoenix Rising Aviation, Inc. (“PRA”) on August 15, 2013.

The FBO segment of the general aviation industry is highly fragmented. According to the National Air Transportation Association (“NATA”), there are over 3,000 FBOs that serve customers at one or more of over 3,000 airport facilities across the country that have at least one paved 3,000-foot runway. The vast majority of these entities are single location operators. NATA characterizes companies with operations at three or more airports as “chains.” An operation with FBOs in at least two distinctive regions of the country is considered a “national” chain while an operation with FBOs in multiple locations within a single region is considered a “regional” chain.

10 

REVENUE AND OPERATING RESULTS

Comparison of Continuing Operations for the Three and Nine Months Ended September 30, 2015 and September 30, 2014.

REVENUE

Revenue from continuing operations decreased by 1.5 percent to $4,730,000 for the three months ended September 30, 2015 as compared with corresponding prior-year period revenue of $4,801,000.

For the three months ended September 30, 2015, revenue from continuing operations associated with the sale of jet fuel, aviation gasoline and related items decreased by 11.0 percent to approximately $1,928,000 as compared to approximately $2,166,000 in the three months ended September 30, 2014. The decrease was largely attributable to a lower volume of gallons, particularly gallons associated with our general aviation fueling operations. The general aviation category experienced a significantly higher demand in the third quarter of 2014, which demand did not recur during the same period in 2015.

For the three months ended September 30, 2015, revenue from continuing operations associated with services and supply items increase by 6.6 percent to approximately $2,778,000 as compared to approximately $2,606,000 in the three months ended September 30, 2014. The increase was due to generally higher levels of services and supply items in the three months ended September 30, 2015 as compared to the same period in 2014.

For the three months ended September 30, 2015, all other revenue from continuing operations decreased by 21.7 percent to approximately $23,000 as compared to approximately $30,000 in the three months ended September 30, 2014. The decrease was due to certain non-recurring revenue events that occurred in the three months ended September 30, 2014 that did not recur in the same period in 2015.

Revenue from continuing operations decreased by 3.7 percent to $11,774,659 for the nine months ended September 30, 2015 as compared with corresponding prior-year period revenue of $12,224,338.

For the nine months ended September 30, 2015, revenue from continuing operations associated with the sale of jet fuel, aviation gasoline and related items decreased by 12.6 percent to approximately $4,710,000 as compared to approximately $5,388,000 in the nine months ended September 30, 2014. The decrease was largely attributable to a lower volume of gallons, particularly gallons associated with our general aviation fueling operations. The general aviation category experienced a significantly higher demand in the nine months ended September 30, 2014, which demand did not recur during the same period in 2015.

For the nine months ended September 30, 2015, revenue from continuing operations associated with services and supply items increased 3.1 percent to approximately $6,958,000 as compared to approximately $6,750,000 in the nine months ended September 30, 2014. The increase was due to generally higher levels of services and supply items in the nine months ended September 30, 2015 as compared to the same period in 2014.

For the nine months ended September 30, 2015, all other revenue from continuing operations increased by 25.3 percent to approximately $107,000 as compared to approximately $86,000 in the nine months ended June 30, 2014. The increase was largely attributable to an increase in non-recurring revenue events in the nine months ended September 30, 2015 that did not happen in the same period in 2014.

GROSS PROFIT

Total gross profit from continuing operations increased 17.5 percent to $2,475,000 in the three months ended September 30, 2015 as compared with the three months ended September 30, 2014. Gross margin increased to 52.3 percent in the three months ended September 30, 2015 as compared to 43.9 percent in the same period in the prior year. The increase in gross profit and gross margin is related to higher levels of gross profit in our fuel sales in the three months ended September 30, 2015 as compared to the prior year period.

11 

Total gross profit from continuing operations increased 13.3 percent to $6,420,089 in the nine months ended September 30, 2015 as compared with the nine months ended September 30, 2014. Gross margin increased to 54.5 percent in the nine months ended September 30, 2015 as compared to 46.4 % percent in the same period in the prior year. As explained above, the increase in gross profit and gross margin is related to higher levels of gross profit in our fuel sales in the nine months ended September 30, 2015 as compared to the prior year period.

OPERATING EXPENSE

Selling, General and Administrative

Total selling, general and administrative expenses, or SG&A, from continuing operations were $1,833,000 in the three months ended September 30, 2015, representing an increase of approximately $182,000 or 11.0 percent, as compared to the same period in 2014. Total selling, general and administrative expenses, or SG&A, from continuing operations were $4,892,000 in the nine months ended September 30, 2015, representing an increase of approximately $495,000 or 11.3 percent, as compared to the same period in 2014.

SG&A associated with continuing operations of our aviation services operations were approximately $1,778,000 in the three months ended September 30, 2015, representing an increase of approximately $218,000 or 14.0 percent, as compared to the three months ended September 30, 2014. SG&A associated with our continuing operations of our aviation services operations, as a percentage of revenue, was 37.6 percent for the three months ended September 30, 2015, as compared with 34.4 percent in the corresponding prior year period. The increased operating expenses were largely attributable to additional costs related to the higher levels of activity in our Heliport operations.

SG&A associated with continuing operations of our aviation services operations were approximately $4,656,000 in the nine months ended September 30, 2015, representing an increase of approximately $508,000 or 12.3 percent, as compared to the nine months ended September 30, 2014. SG&A associated with our continuing operations of our aviation services operations, as a percentage of revenue, was 39.5 percent for the nine months ended September 30, 2015, as compared with 33.9 percent in the corresponding prior year period. The increased operating expenses were largely attributable to additional costs related to the higher levels of activity in our Heliport operations.

Corporate SG&A was approximately $55,035 for the three months ended September 30, 2015, representing a 39.5 percent decrease of approximately $36,000 as compared with the corresponding prior year period. Corporate SG&A was approximately $236,000 for the nine months ended September 30, 2015, representing a decrease of approximately $12,000 as compared with the corresponding prior year period.

OPERATING INCOME

Operating income from continuing operations for the three and nine months ended September 30, 2015 was $641,636 and $1,528,381, respectively, as compared to operating income of $455,593 and $1,272,690 in the three and nine months ended September 30, 2014. The increase on a year-over-year basis was driven by higher levels of activity in our Heliport operations.

Depreciation and Amortization

Depreciation and amortization was approximately $639,146 and $421,105 for the nine months ended September 30, 2015 and 2014, respectively.

Interest Income/Expense

Interest income for the nine months ended September 30, 2015 was $0 as compared to $6,693 in the nine months ended September 30, 2014. Interest expense for the nine months ended September 30, 2015 was approximately $16,730 as compared to $41,582 in the same period in 2014.

Income Tax

Income tax expense for the three and nine months ended September 30, 2015 was $352,000 and $808,000, respectively, as compared to approximately $224,000 and $605,000, respectively, during the same period in 2014. The increase is attributable to higher pre-tax income in the nine months ended September 30, 2015 as compared to the same period in 2014.

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Net Income Per Share

Net income was $ 395,846 and $400,900 for the nine months ended September 30, 2015 and 2014, respectively. Basic and diluted net income per share for the nine month periods ended September 30, 2015 and 2014 was $.01.

LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 2015, we had cash of $717,260 and a working capital surplus of $1,488,227. We generated revenue from continuing operations of $11,774,659 and income from continuing operations of $1,513,317 for the nine months ended September 30, 2015. For the nine months ended September 30, 2015, cash flows included net cash provided by operating activities of $1,365,933, net cash used in investing activities of $549,950, and net cash used in financing activities of $629,726.

On May 17, 2013, the Company entered into a loan agreement with PNC Bank (the “PNC Loan Agreement”). The PNC Loan Agreement contained three components: (i) a $2,500,000 non-revolving acquisition line of credit (the “PNC Acquisition Line”); (ii) a $1,150,000 working capital line (the “PNC Working Capital Line”); and (iii) a $280,920 term loan (the “PNC Term Loan”). Substantially all assets of the Company are pledged as collateral under the PNC Loan Agreement.

Proceeds of the PNC Acquisition Line were able to be dispersed, based on parameters defined in the PNC Loan Agreement, until May 17, 2014 (the “Conversion Date”). As of the Conversion Date, there was $1,350,000 outstanding under the PNC Acquisition Line. The payment terms provide that 30 days following the Conversion Date, and continuing on the same day of each month thereafter, the Company is required to make equal payments of principal over a 60 month period. Interest on the outstanding principal continues to accrue at a rate equal to one-month LIBOR plus 275 basis points (2.94% as of September 30, 2015). As of September 30, 2015, there was $990,000 outstanding under the PNC Acquisition Line.

The PNC Working Capital Line may be dispersed for working capital and general corporate purposes. Interest on outstanding principal accrues at a rate equal to daily LIBOR plus 250 basis points (2.69% as of September 30, 2015) and is renewable at PNC Bank’s option on or before November 30, 2015. As of September 30, 2015, the outstanding balance of the PNC Working Capital Line was $200,000.

The PNC Term Loan was dispersed to settle miscellaneous Company debt of the same amount. Interest on outstanding principal accrues at a rate equal to one-month LIBOR plus 275 basis points (2.94% as of September 30, 2015) and principal and interest payments shall be made over a 34 month period. At September 30, 2015, $56,184 was outstanding.

The Company is party to a concession agreement, dated as of November 1, 2008, with the City of New York for the operation of the Downtown Manhattan Heliport (the “Concession Agreement”). Pursuant to the terms of the Concession Agreement, the Company must pay the greater of 18% of the first $5 million in program year gross receipts and 25% of gross receipts in excess of $5 million or minimum annual guaranteed payments. The Company paid the City of New York $1,200,000 in the first year of the term and minimum payments are scheduled to increase to approximately $1,700,000 in the final year of Concession Agreement, which expires on October 31, 2018, unless terminated earlier. During the nine months ended September 30, 2015 and 2014, the Company incurred approximately $2,100,000 and $2,050,000 in concession fees, respectively, which is recorded in cost of revenue.

The Mayor of New York City has been urged to reduce air tour activity at the Heliport.  Air tours have historically represented the majority of activity at the Heliport.  Pursuant to the terms of the Concession Agreement, the City of New York must provide 25 days’ notice to terminate the Concession Agreement.  Any such reduction or termination would negatively impact our business and financial results and those of our management company at the Heliport, Empire Aviation which, as previously disclosed, is owned by the children of Alvin Trenk, a member of the Company’s Board of Directors.  We incurred management fees with Empire Aviation of approximately $2,700,000 and $2,400,000 during the nine months ended September 30, 2015 and 2014, respectively, which is recorded in operating expenses.  We and Empire have also contributed to the Helicopter Tourism and Jobs Council (“HTJC”), an association that lobbies on behalf of the helicopter air tour industry, and which is engaged in discussions with the Mayor’s office.  Mr. Trenk is also an active participant with HJTC, which is managed by his grandson. 

13 

During the nine months ended September 30, 2015, we had a net increase in cash of $186,257. Our sources and uses of funds during this period were as follows:

Cash from Operating Activities

For the nine months ended September 30, 2015, net cash provided by operating activities was $1,365,933. This amount included an increase in operating cash related to net income of $395,846 and additions for the following items: (i) depreciation and amortization, $639,146; (ii) stock based compensation, $25,496; (iii) trade inventories, $209,875; (iv) deposits, $13,261; (v) deferred income taxes of $55,000; (vi) accounts payable of $358,656; and (vii) accrued expenses of $797,900 . These increases in operating activities were offset by the following decreases: (i) accounts receivable, $519,795; (ii) prepaid expenses and other current assets, $602,700; and (iii) customer deposits of $6,752.

For the nine months ended September 30, 2014, net cash provided by operating activities was $1,031,539. This amount included an increase in operating cash related to net income of $400,900 and additions for the following items: (i) depreciation and amortization, $421,105; (ii) stock based compensation, $23,092; (iii) inventories, $67,358; (iv) deposits, $1,660; (v) deferred income taxes, $15,000; (vi) accounts payable, $715,259; (vii) accrued expenses, $170,606; and (viii) customer deposits, $92,734. The increase in operating cash in 2014 was offset by the following decreases: (i) accounts receivable, trade, $465,205; and (ii) prepaid expenses and other current assets, $410,970. .

Cash from Investing Activities

For the nine months ended September 30, 2015, net cash used in investing activities was $549,950. This amount included issuances of note receivable of $500,000 and $49,950 used for the purchase of property and equipment. For the nine months ended September 30, 2014, net cash of $97,274 was used in investing activities for the (i) purchase of $159,103 in property and equipment; (ii) offset by the repayment of notes receivable of $61,829.

Cash from Financing Activities

For the nine months ended September 30, 2015, net cash used in financing activities was $629,726. This amount included the repayment of notes payable of $279,726 and repayment of the line of credit of $350,000. For the nine months ended September 30, 2014, net cash used in financing activities was $610,727, consisting of (i) a drawdown from the line of credit of $175,000; (ii) offset by the repayment of notes payable of $785,727.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Recent Accounting Pronouncements

In April 2014, the FASB issued Accounting Standards Update No. 2014-08 “Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360) – Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” (ASU 2014-08) which requires entities to change the criteria for reporting discontinued operations and enhance convergence of the FASB’s and International Accounting Standard Board’s (IASB) reporting requirements for discontinued operations so as not to be overly complex or difficult to apply to stakeholders. Only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on the entity’s operations and financial results will be reported as discontinued operations in the financial statements. ASU 2014-08 is effective for fiscal years beginning on or after December 15, 2014 and interim periods thereafter. ASU 2014-08 will be effective for the Company’s financial statements for fiscal years beginning January 1, 2015. Based on the Company’s evaluation of ASU 2014-08, the adoption of this statement on January 1, 2015 did not have a material impact on the Company’s financial statements.

14 

CAUTIONARY STATEMENT FOR FORWARD-LOOKING STATEMENTS

Statements contained in this report may contain information that includes or is based upon "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent management's current judgment and assumptions, and can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements are frequently accompanied by the use of such words as "anticipates," "plans," "believes," "expects," "projects," "intends," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors, including, but not limited to, those relating to:

§ our ability to secure the additional debt or equity financing, if required, to execute our business plan;

§ our ability to identify, negotiate and complete the acquisition of targeted operators and/or other businesses, consistent with our business plan;

§ existing or new competitors consolidating operators ahead of us;

§ our ability to attract new personnel or retain existing personnel, which would adversely affect implementation of our overall business strategy.

Any one of these or other risks, uncertainties, other factors, or any inaccurate assumptions made by the Company may cause actual results to be materially different from those described herein or elsewhere by us. Undue reliance should not be replaced on any such forward-looking statements, which speak only as of the date they were made. Certain of these risks, uncertainties, and other factors are described in greater detail in our Annual Report on Form 10-K for the year ended December 31, 2014 and in other filings we make with the Securities and Exchange Commission. Subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above and elsewhere in our reports filed with the Securities and Exchange Commission. We expressly disclaim any intent or obligation to update any forward-looking statements, except as may be required by law.

Item 3 – Quantitative and Qualitative Disclosures about Market Risk

Not applicable.

Item 4 – Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Management, including our President, Chief Executive Officer and our principal financial officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q. Based upon, and as of the date of that evaluation, our President, Chief Executive Officer and principal financial officer concluded that our disclosure controls and procedures were effective, in all material respects, to ensure that information required to be disclosed in the reports filed and submitted by us under the Securities Exchange Act of 1934, as amended, is (i) recorded, processed, summarized and reported as and when required, and (ii) is accumulated and communicated to our management, including our President, Chief Executive Officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There has been no change in our internal control over financial reporting that occurred during the fiscal quarter covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

15 

PART II – OTHER INFORMATION

Item 6.  Exhibits

Exhibit No.	Description of Exhibit
10.1	Executed Closing Cash Agreement, effective as of September 30, 2015, by and between the Company and Warren A. Peck. *
10.2	Executed Stock Purchase Agreement, effective as of September 30, 2015, by and between the Company and Warren A. Peck, filed with the Company’s June 30, 2015 10-Q.
10.3	Executed Secured Promissory Note, effective as of September 30, 2015, to be made by Warren A. Peck in favor of the Company, filed with the Company’s June 30, 2015 10-Q.
10.4	Executed Installment Payment Agreement, effective as of September 30, 2015, by and between the Company and Warren A. Peck, filed with the Company’s June 30, 2015 10-Q.
31.1	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer (principal executive officer). *
31.2	Rule 13a-14(a)/15d-14(a) Certification of President (principal financial officer). *
32.1	Section 1350 Certification. *
101.INS	XBRL Instance Document. *
101.SCH	XBRL Taxonomy Extension Schema Document. *
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document. *
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document. *
101.LAB	XBRL Taxonomy Extension Label Linkbase Document. *
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document. *

* Filed herewith

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Saker Aviation Services, Inc.
Date:     November 20, 2015	By:	/s/ Ronald J. Ricciardi
		Ronald J. Ricciardi
		President

17 

EX-10.1

Exhibit 10.1

Agreement

This Agreement (the “Agreement”), dated as of September 30, 2015, is made by and between Saker Aviation Services, Inc., a Nevada Corporation (“Seller”) and Warren Peck, an individual residing in the State of Oklahoma (“Buyer” and collectively with Seller, the “Parties” and each individually a “Party”)

WHEREAS, the Parties entered into that certain Stock Purchase Agreement on June 30, 2015, as amended on August 31, 2015 (collectively, the “Stock Purchase Agreement”);

WHEREAS, pursuant to Sections 2.3 and 3.2 of the Stock Purchase Agreement, Buyer is obligated to deliver the Closing Cash Amount (as defined in the Stock Purchase Agreement) to the Seller at Closing; and

WHEREAS, the Parties intend for the Buyer to transfer title to that certain Falcon 10N169LS, S/N 115 aircraft (the “Aircraft”) to the Seller in lieu of delivering the Closing Cash Amount at Closing, and the Seller intends to sell such Aircraft to a third party post-Closing.

NOW THEREFORE, in consideration of the mutual promises and covenants herein contained and other consideration, the receipt and adequacy of which is hereby acknowledged, the Parties hereto agree as follows:

1. Delivery of Aircraft. At Closing, Buyer shall transfer all right, title and interest in the Aircraft to Seller. This transfer shall be in lieu of the Closing Cash Amount.

2. Satisfaction of Obligation. On the transfer of all right, title and interest in the Aircraft to Seller, Buyer shall have fulfilled its obligation to deliver the Closing Cash Amount under the Stock Purchase Agreement.

3. Disposition of Proceeds upon Sale of Aircraft. On the sale of the Aircraft post-Closing, Seller shall retain from the proceeds of such sale: (i) $250,000, plus (ii) the amount of any and all costs and expenses associated with the sale, including, without limitation, all costs and expenses incurred by the Seller for the C-Check performed by Seller on the Aircraft. The remaining proceeds from the sale of the Aircraft, if any, shall be remitted to the Buyer.

4. Controlling Document. In the event of any conflict between this Agreement and the Stock Purchase Agreement, this Agreement shall control. All provisions in the Stock Purchase Agreement that do not conflict with this Agreement, including but not limited to, all representations and warranties having to do with the Aircraft and all other payment obligations, shall remain in full force and effect.

5. Stock Purchase Agreement. All capitalized not defined herein shall have the definitions set forth in the Stock Purchase Agreement.

6. Counterparts. This Agreement may be executed in one or more counterparts, each of which when executed shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement.

[Signature page follows]

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

SAKER AVIATION SERVICES, INC.
By:	/s/ Ronald J. Ricciardi
Name:	Ronald J. Ricciardi
Title:	President
/s/ Warren Peck
Warren Peck

[Signature page to Agreement re Closing Cash Amount]

EX-31.1

EXHIBIT 31.1

Certification of Chief Executive Officer

(principal executive officer)

Pursuant To Rule 13a-14(a)/15d-14(a)

I, Alvin S. Trenk, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Saker Aviation Services, Inc.;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(c)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 20, 2015

By:  /s/ Alvin S. Trenk

Alvin S. Trenk

Chief Executive Officer (principal executive officer)

EX-31.2

EXHIBIT 31.2

Certification of President

(principal financial officer)

Pursuant To Rule 13a-14(a)/15d-14(a)

I, Ronald J. Ricciardi, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Saker Aviation Services, Inc.;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(c) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 20, 2015

By:  /s/ Ronald J. Ricciardi

Ronald J. Ricciardi

President (principal financial officer)

EX-32.1

EXHIBIT 32.1

Section 1350 Certification

Pursuant to U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (“Section 906”), Alvin S. Trenk, the Chief Executive Officer (principal executive officer), and Ronald J. Ricciardi, the President (principal financial officer) of Saker Aviation Services, Inc. does hereby certify that:

1.   The Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2015 (the “Report”) of Saker Aviation Services, Inc. fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.   The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of Saker Aviation Services, Inc.

Date:           November 20, 2015	By:	/s/ Alvin S. Trenk
		Alvin S. Trenk
		Chief Executive Officer (principal executive officer)
Date:           November 20, 2015	By:	/s/ Ronald J. Ricciardi
		Ronald J. Ricciardi
		President (principal financial officer)

A signed original of this written statement required by Section 906 has been provided to Saker Aviation Services, Inc. and will be retained by Saker Aviation Services, Inc., and furnished to the Securities and Exchange Commission or its staff upon request.

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

NOTE 3 - Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, FirstFlight Heliports, LLC (“FFH”), its FBO at Garden City (Kansas) Regional Airport (“FBOGC”) and Phoenix Rising Aviation, Inc. (“PRA”), see Note 5, Discontinued Operations. All significant inter-company accounts and transactions have been eliminated in consolidation.

Reclassifications

Certain reclassifications were made to prior year amounts to conform to the current year presentation. None of the reclassifications affected the Company’s net income in any period.

Net Income Per Common Share

Net income was $104,729 and $395,846 for the three and nine months ended September 30, 2015, respectively. Net income was $179,871 and $400,900 for the three and nine months ended September 30, 2014, respectively. Basic net income per share applicable to common stockholders is computed based on the weighted average number of shares of the Company’s common stock outstanding during the periods presented. Diluted net income per share reflects the potential dilution that could occur if securities or other instruments to issue common stock were exercised or converted into common stock. Potentially dilutive securities, consisting of options and warrants, are excluded from the calculation of the diluted income per share when their exercise prices were greater than the average market price of the common stock during the period. 

The following table sets forth the components used in the computation of basic net income per share:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2015		2014 (1)		2015		2014 (1)
Weighted average common shares outstanding, basic		33,107,610		33,107,610		33,107,610		33,106,511
Common shares upon exercise of options and warrants		567,066		1,181,478		567,066		1,181,478
Weighted average common shares outstanding, diluted		33,674,676		34,289,088		33,674,676		34,287,989

(1) Potential common shares of 1,550,000 for the nine months ended September 30, 2014 were excluded from the computation of diluted earnings as their exercise prices were greater than the average market price of the common stock during the period.

Stock Based Compensation

Stock-based compensation expense for all share-based payment awards are based on the grant-date fair value. The Company recognizes these compensation costs over the requisite service period of the award, which is generally the option vesting term. For the nine months ended September 30, 2015 and 2014, the Company incurred stock-based compensation costs of $25,496 and $23,092 respectively. Such amounts have been recorded as part of the Company’s selling, general and administrative expenses in the accompanying condensed consolidated statements of operations. As of September 30, 2015, the unamortized fair value of the options was $0.

Option valuation models require the input of highly subjective assumptions, including the expected life of the option. In management's opinion, the use of such option valuation models does not necessarily provide a reliable single measure of the fair value of the Company’s employee stock options. Management holds this view partly because the Company's employee stock options have characteristics significantly different from those of traded options and also because changes in the subjective input assumptions can materially affect the fair value estimate.

Recently Issued Accounting Pronouncements

In April 2014, the FASB issued Accounting Standards Update No. 2014-08 “Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360) – Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” (ASU 2014-08) which requires entities to change the criteria for reporting discontinued operations and enhance convergence of the FASB’s and International Accounting Standard Board’s (IASB) reporting requirements for discontinued operations so as not to be overly complex or difficult to apply to stakeholders. Only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on the entity’s operations and financial results will be reported as discontinued operations in the financial statements. ASU 2014-08 is effective for fiscal years beginning on or after December 15, 2014 and interim periods thereafter. ASU 2014-08 is effective for the Company’s financial statements for fiscal years beginning January 1, 2015. Based on the Company’s evaluation of ASU 2014-08, the adoption of this statement on January 1, 2015 did not have a material impact on the Company’s financial statements.

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2015	Dec. 31, 2014
CURRENT ASSETS
Cash	$ 717,260	$ 531,003
Accounts receivable	2,569,637	1,739,452
Assets held for sale	0	787,780
Note Receivable, current portion	300,000	0
Inventories	89,464	79,965
Prepaid expenses and other current assets	1,127,642	494,880
Total current assets	4,804,003	3,633,080
PROPERTY AND EQUIPMENT, net of accumulated depreciation and amortization of $2,028,121 and $1,610,983 respectively	1,605,098	1,858,840
OTHER ASSETS
Deposits	165,263	178,524
Intangible assets	35,000	142,500
Note Receivable, less current portion	200,000	0
Goodwill	530,000	530,000
Deferred income taxes	308,000	363,000
Total other assets	1,238,263	1,214,024
TOTAL ASSETS	7,647,364	6,705,944
CURRENT LIABILITIES
Accounts payable	1,355,087	984,966
Liabilities held for sale	0	31,781
Line of credit	200,000	550,000
Customer deposits	128,009	134,761
Accrued expenses	1,302,970	484,754
Notes payable - current portion	329,710	372,457
Total current liabilities	3,315,776	2,558,719
LONG-TERM LIABILITIES
Notes payable - less current portion	720,000	956,979
Total liabilities	4,035,776	3,515,698
STOCKHOLDERS’ EQUITY
Preferred stock - $.001 par value; authorized 9,999,154; none issued and outstanding	0	0
Common stock - $.001 par value; authorized 100,000,000; 33,107,610 shares issued and outstanding as of September 30, 2015 and December 31, 2014	33,107	33,107
Additional paid-in capital	19,987,978	19,962,482
Accumulated deficit	(16,409,497)	(16,805,343)
TOTAL STOCKHOLDERS’ EQUITY	3,611,588	3,190,246
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 7,647,364	$ 6,705,944

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Basis of Presentation

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

NOTE 1 - Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of Saker Aviation Services, Inc. (the “Company”) and its subsidiaries have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial statements and in accordance with the instructions to Form 10-Q. Accordingly, they do not include all of the information and disclosures required by GAAP for annual financial statements and should be read in conjunction with the financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

The condensed consolidated balance sheet and statements of cash flows as of September 30, 2015 and the condensed consolidated statements of operations for the three and nine months ended September 30, 2015 and 2014 have been prepared by the Company without audit. In the opinion of the Company’s management, all necessary adjustments (consisting of normal recurring accruals) have been included to make the Company’s financial position as of September 30, 2015 and its results of operations and cash flows for the nine months ended September 30, 2015 not misleading. The results of operations for the three and nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for any full year or any other interim period.

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Discontinued Operations (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Discontinued Operations [Line Items]
Revenue	$ 900,408	$ 716,145	$ 1,763,944	$ 1,446,372
Cost of revenue	787,154	499,859	1,346,760	1,024,516
Gross profit	113,254	216,286	417,184	421,856
Operating expenses	387,448	231,733	867,765	731,432
Operating (loss) from discontinued operations	(274,194)	(15,447)	(450,581)	(309,576)
Interest expense	(7,774)	(9,687)	(24,575)	(29,519)
Other income (expense)	26,641	(50,000)	24,685	(50,000)
Income tax benefit	75,000	40,000	141,000	141,000
Net (loss) from discontinued operations	$ (180,327)	$ (35,134)	$ (309,471)	$ (248,095)
Basic net income (loss) per common share (in dollars per share)	$ (0.01)	$ (0.00)	$ (0.01)	$ (0.01)
Weighted average number of shares outstanding, basic (in shares)	33,107,610	33,107,610	33,107,610	33,106,511

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Liquidity

9 Months Ended

Sep. 30, 2015

Going Concern [Abstract]

Going Concern Disclosure [Text Block]

NOTE 2 – Liquidity

As of September 30, 2015, the Company had cash of $717,260 and had a working capital surplus of $1,488,227. The Company generated revenue from continuing operations of $11,774,659 and income from continuing operations of $1,513,317 for the nine months ended September 30, 2015.

On May 17, 2013, the Company entered into a loan agreement with PNC Bank (the “PNC Loan Agreement”). The PNC Loan Agreement contained three components: (i) a $2,500,000 non-revolving acquisition line of credit (the “PNC Acquisition Line”); (ii) a $1,150,000 working capital line (the “PNC Working Capital Line”); and (iii) a $280,920 term loan (the “PNC Term Loan”). Substantially all assets of the Company are pledged as collateral under the PNC Loan Agreement.

Proceeds of the PNC Acquisition Line were able to be dispersed, based on parameters defined in the PNC Loan Agreement, until May 17, 2014 (the “Conversion Date”). As of the Conversion Date, there was $1,350,000 outstanding under the PNC Acquisition Line. The payment terms provide that 30 days following the Conversion Date, and continuing on the same day of each month thereafter, the Company is required to make equal payments of principal over a 60 month period. Interest on the outstanding principal continues to accrue at a rate equal to one-month LIBOR plus 275 basis points (2.94% as of September 30, 2015). As of September 30, 2015, the outstanding balance of the PNC Acquisition Line was $990,000.

The PNC Working Capital Line may be dispersed for working capital and general corporate purposes. Interest on outstanding principal accrues at a rate equal to daily LIBOR plus 250 basis points (2.69 % as of September 30, 2015) and is renewable at PNC Bank’s option on or before November 30, 2015. As of September 30, 2015, the outstanding balance of the PNC Working Capital Line was $200,000.

The PNC Term Loan was dispersed to settle miscellaneous Company debt of the same amount. Interest on outstanding principal accrues at a rate equal to one-month LIBOR plus 275 basis points (2.94% as of September 30, 2015) with principal and interest payments made over a 34 month period. At September 30, 2015, $56,184 was outstanding.

The Company is party to a concession agreement, dated as of November 1, 2008, with the City of New York for the operation of the Downtown Manhattan Heliport (the “Concession Agreement”). Pursuant to the terms of the Concession Agreement, the Company must pay the greater of 18% of the first $5 million in program year gross receipts and 25% of gross receipts in excess of $5 million or minimum annual guaranteed payments. The Company paid the City of New York $1,200,000 in the first year of the term and minimum payments are scheduled to increase to approximately $1,700,000 in the final year of Concession Agreement, which expires on October 31, 2018, unless terminated earlier. During the nine months ended September 30, 2015 and 2014, the Company incurred approximately $2,100,000 and $2,050,000 in concession fees, respectively, which is recorded in the cost of revenue.

The Mayor of New York City has been urged to reduce air tour activity at the Heliport.  Air tours have historically represented the majority of activity at the Heliport.  Pursuant to the terms of the Concession Agreement, the City of New York must provide 25 days’ notice to terminate the Concession Agreement.  Any such reduction or termination would negatively impact the business and financial results of the Company and its management company at the Heliport, Empire Aviation which, as previously disclosed, is owned by the children of Alvin Trenk, the Company’s CEO and a member of its Board of Directors.  The Company incurred management fees with Empire Aviation of approximately $2,700,000 and $2,400,000 during the nine months ended September 30, 2015 and 2014, respectively, which is recorded in operating expenses.  The Company and Empire have also contributed to the Helicopter Tourism and Jobs Council (“HTJC”), an association that lobbies on behalf of the helicopter air tour industry, and which is engaged in discussions with the Mayor’s office.  Mr. Trenk is also an active participant with HJTC, which is managed by his grandson. 

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CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($)	Sep. 30, 2015	Dec. 31, 2014
PROPERTY AND EQUIPMENT, net of accumulated depreciation and amortization (in dollars)	$ 2,028,121	$ 1,610,983
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized	9,999,154	9,999,154
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized	100,000,000	100,000,000
Common stock, shares issued	33,107,610	33,107,610
Common stock, shares outstanding	33,107,610	33,107,610

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Liquidity (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014	May. 17, 2014	May. 17, 2013
Going Concern [Line Items]
Cash	$ 717,260		$ 717,260		$ 531,003
Working Capital	1,488,227		1,488,227
Revenue	4,729,808	$ 4,801,278	11,774,659	$ 12,224,338
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest, Total	637,056	$ 439,005	1,513,317	1,253,995
Empire Aviation [Member]
Going Concern [Line Items]
General and Administrative Expense, Total			$ 2,700,000	2,400,000
Concession Agreement [Member]
Going Concern [Line Items]
Percentage Payable Greater Than Gross Receipts During Period			18.00%
Amount Of Gross Receipts During Period			$ 5,000,000
Percentage Payable Greater Than Gross Receipts In Year One			25.00%
Amount Paid Greater Than Gross Receipts In Year One			$ 1,200,000
Minimum Annual Guarantee, Year One			5,000,000
Amount Paid Greater Than Gross Receipts In Year Ten			1,700,000
Concession Fees			$ 2,100,000	$ 2,050,000
Line Of Credit Facility Loan Agreement Expire Term			October 31, 2018
Working Capital Loan [Member]
Going Concern [Line Items]
Short-term Debt, Total							$ 1,150,000
Term loan [Member]
Going Concern [Line Items]
Short-term Debt, Total							280,920
PNC Acquisition [Member]
Going Concern [Line Items]
Line of Credit Facility, Amount Outstanding	990,000		$ 990,000
Line of Credit Facility, Maximum Borrowing Capacity							$ 2,500,000
Line of Credit Facility, Interest Rate During Period			2.94%
Line Of Credit Facility Payment Term			60 months
Line of Credit Facility, Fair Value of Amount Outstanding						$ 1,350,000
PNC Acquisition [Member] | LIBOR [Member]
Going Concern [Line Items]
Line of Credit Facility, Interest Rate Description			LIBOR plus 275 basis points
PNC Working Capital [Member]
Going Concern [Line Items]
Line of Credit Facility, Amount Outstanding	200,000		$ 200,000
Line of Credit Facility, Interest Rate During Period			2.69%
PNC Working Capital [Member] | LIBOR [Member]
Going Concern [Line Items]
Line of Credit Facility, Interest Rate Description			LIBOR plus 250 basis points
PNC Term Loan [Member]
Going Concern [Line Items]
Line of Credit Facility, Amount Outstanding	$ 56,184		$ 56,184
Line of Credit Facility, Interest Rate During Period			2.94%
Line Of Credit Facility Payment Term			34 months
PNC Term Loan [Member] | LIBOR [Member]
Going Concern [Line Items]
Line of Credit Facility, Interest Rate Description			LIBOR plus 275 basis points

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Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 20, 2015
Document Information [Line Items]
Entity Registrant Name	Saker Aviation Services, Inc.
Entity Central Index Key	0001128281
Entity Filer Category	Smaller Reporting Company
Trading Symbol	SKAS
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		33,107,610
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2015

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Summary of Significant Accounting Policies (Details) - shares	3 Months Ended			9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	[1]	Sep. 30, 2015	Sep. 30, 2014	[1]
Summary Of Significant Accounting Policies [Line Items]
Weighted average common shares outstanding, basic	33,107,610	33,107,610		33,107,610	33,106,511
Common shares upon exercise of options and warrants	567,066	1,181,478		567,066	1,181,478
Weighted average common shares outstanding, diluted	33,674,676	34,289,088		33,674,676	34,287,989

[1] Potential common shares of 1,550,000 for the nine months ended September 30, 2014 were excluded from the computation of diluted earnings as their exercise prices were greater than the average market price of the common stock during the period.

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014		Sep. 30, 2015	Sep. 30, 2014
REVENUE	$ 4,729,808	$ 4,801,278		$ 11,774,659	$ 12,224,338
COST OF REVENUE	2,255,109	2,694,751		5,354,570	6,555,862
GROSS PROFIT	2,474,699	2,106,527		6,420,089	5,668,476
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	1,833,063	1,650,934		4,891,708	4,395,786
OPERATING INCOME FROM CONTINUING OPERATIONS	641,636	455,593		1,528,381	1,272,690
OTHER INCOME (EXPENSE)
OTHER (EXPENSE) INCOME, net	0	(5,000)		1,666	16,194
INTEREST INCOME	0	788		0	6,693
INTEREST EXPENSE	(4,580)	(12,376)		(16,730)	(41,582)
TOTAL OTHER EXPENSE, net	(4,580)	(16,588)		(15,064)	(18,695)
INCOME FROM CONTINUING OPERATIONS, before income taxes	637,056	439,005		1,513,317	1,253,995
INCOME TAX EXPENSE	352,000	224,000		808,000	605,000
INCOME FROM CONTINUING OPERATIONS	285,056	215,005		705,317	648,995
LOSS FROM DISCONTINUED OPERATIONS, net of income taxes	(180,327)	(35,134)		(309,471)	(248,095)
NET INCOME	$ 104,729	$ 179,871		$ 395,846	$ 400,900
Basic and Diluted Net Income Per Common Share (in dollars per share)	$ 0.01	$ 0.01		$ 0.01	$ 0.01
Weighted Average Number of Common Shares - Basic (in shares)	33,107,610	33,107,610	[1]	33,107,610	33,106,511	[1]
Weighted Average Number of Common Shares - Diluted (in shares)	33,674,676	34,289,088	[1]	33,674,676	34,287,989	[1]

[1] Potential common shares of 1,550,000 for the nine months ended September 30, 2014 were excluded from the computation of diluted earnings as their exercise prices were greater than the average market price of the common stock during the period.

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Litigation

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Legal Proceedings [Text Block]

NOTE 7 - Litigation

From time to time, the Company and/or its subsidiaries may be a party to one or more claims or disputes which may result in litigation. The Company's management does not, however, presently expect that any such matters will have a material adverse effect on the Company's business, financial condition or results of operations.

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Related Parties

9 Months Ended

Sep. 30, 2015

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

NOTE 6 – Related Parties

The law firm of Wachtel & Missry, LLP provides certain legal services to the Company and its subsidiaries from time to time. William B. Wachtel, Chairman of the Company’s Board of Directors, is a managing partner of such firm. During the nine months ended September 30, 2015 and 2014, no services were provided to the Company by Wachtel & Missry, LLP.

As described in more detail in Note 2, Liquidity, the Company is party to a management agreement with Empire Aviation, an entity owned by the children of Alvin S. Trenk, our CEO and a member of our Board of Directors.

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Discontinued Operations (Details Textual)	Sep. 30, 2015 USD ($)
Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Consideration	$ 250,000
Discontinued Operations [Member]
Discontinued Operations [Line Items]
Secured Debt	$ 250,000

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Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Summary Of Significant Accounting Policies [Line Items]
Stock based compensation			$ 25,496	$ 23,092
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount				1,550,000
Share Based Compensation Stock Options Unamortized Fair Value			0
Net income	$ 104,729	$ 179,871	$ 395,846	$ 400,900

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Inventories (Tables)

9 Months Ended

Sep. 30, 2015

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

A summary of inventories as of September 30, 2015 and December 31, 2014 is set forth in the table below:

	September 30, 2015		December 31, 2014
Fuel inventory	$	78,471	$	68,891
Other inventory		10,993		11,074
Total inventory	$	89,464	$	79,965

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, FirstFlight Heliports, LLC (“FFH”), its FBO at Garden City (Kansas) Regional Airport (“FBOGC”) and Phoenix Rising Aviation, Inc. (“PRA”), see Note 5, Discontinued Operations. All significant inter-company accounts and transactions have been eliminated in consolidation.

Reclassification, Policy [Policy Text Block]

Reclassifications

Certain reclassifications were made to prior year amounts to conform to the current year presentation. None of the reclassifications affected the Company’s net income in any period.

Earnings Per Share, Policy [Policy Text Block]

Net Income Per Common Share

Net income was $104,729 and $395,846 for the three and nine months ended September 30, 2015, respectively. Net income was $179,871 and $400,900 for the three and nine months ended September 30, 2014, respectively. Basic net income per share applicable to common stockholders is computed based on the weighted average number of shares of the Company’s common stock outstanding during the periods presented. Diluted net income per share reflects the potential dilution that could occur if securities or other instruments to issue common stock were exercised or converted into common stock. Potentially dilutive securities, consisting of options and warrants, are excluded from the calculation of the diluted income per share when their exercise prices were greater than the average market price of the common stock during the period. 

The following table sets forth the components used in the computation of basic net income per share:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2015		2014 (1)		2015		2014 (1)
Weighted average common shares outstanding, basic		33,107,610		33,107,610		33,107,610		33,106,511
Common shares upon exercise of options and warrants		567,066		1,181,478		567,066		1,181,478
Weighted average common shares outstanding, diluted		33,674,676		34,289,088		33,674,676		34,287,989

(1) Potential common shares of 1,550,000 for the nine months ended September 30, 2014 were excluded from the computation of diluted earnings as their exercise prices were greater than the average market price of the common stock during the period.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock Based Compensation

Stock-based compensation expense for all share-based payment awards are based on the grant-date fair value. The Company recognizes these compensation costs over the requisite service period of the award, which is generally the option vesting term. For the nine months ended September 30, 2015 and 2014, the Company incurred stock-based compensation costs of $25,496 and $23,092 respectively. Such amounts have been recorded as part of the Company’s selling, general and administrative expenses in the accompanying condensed consolidated statements of operations. As of September 30, 2015, the unamortized fair value of the options was $0.

Option valuation models require the input of highly subjective assumptions, including the expected life of the option. In management's opinion, the use of such option valuation models does not necessarily provide a reliable single measure of the fair value of the Company’s employee stock options. Management holds this view partly because the Company's employee stock options have characteristics significantly different from those of traded options and also because changes in the subjective input assumptions can materially affect the fair value estimate.

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Accounting Pronouncements

In April 2014, the FASB issued Accounting Standards Update No. 2014-08 “Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360) – Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” (ASU 2014-08) which requires entities to change the criteria for reporting discontinued operations and enhance convergence of the FASB’s and International Accounting Standard Board’s (IASB) reporting requirements for discontinued operations so as not to be overly complex or difficult to apply to stakeholders. Only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on the entity’s operations and financial results will be reported as discontinued operations in the financial statements. ASU 2014-08 is effective for fiscal years beginning on or after December 15, 2014 and interim periods thereafter. ASU 2014-08 is effective for the Company’s financial statements for fiscal years beginning January 1, 2015. Based on the Company’s evaluation of ASU 2014-08, the adoption of this statement on January 1, 2015 did not have a material impact on the Company’s financial statements.

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Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The following table sets forth the components used in the computation of basic net income per share:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2015		2014 (1)		2015		2014 (1)
Weighted average common shares outstanding, basic		33,107,610		33,107,610		33,107,610		33,106,511
Common shares upon exercise of options and warrants		567,066		1,181,478		567,066		1,181,478
Weighted average common shares outstanding, diluted		33,674,676		34,289,088		33,674,676		34,287,989

(1) Potential common shares of 1,550,000 for the nine months ended September 30, 2014 were excluded from the computation of diluted earnings as their exercise prices were greater than the average market price of the common stock during the period.

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Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2015

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations [Table Text Block]

Components of discontinued operations are as follows:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Revenue	$	900,408	$	716,145	$	1,763,944	$	1,446,372
Cost of revenue		787,154		499,859		1,346,760		1,024,516
Gross profit		113,254		216,286		417,184		421,856
Operating expenses		387,448		231,733		867,765		731,432
Operating (loss) from discontinued operations		(274,194)		(15,447)		(450,581)		(309,576)
Interest expense		(7,774)		(9,687)		(24,575)		(29,519)
Other income (expense)		26,641		(50,000)		24,685		(50,000)
Income tax benefit		75,000		40,000		141,000		141,000
Net (loss) from discontinued operations		(180,327)		(35,134)		(309,471)		(248,095)
Basic net (loss) per common share		(0.01)		(0.00)		(0.01)		(0.01)
Weighted average number of shares outstanding, basic		33,107,610		33,107,610		33,107,610		33,106,511

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Inventories (Details Textual) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Fuel [Member]
Inventory [Line Items]
Inventory Third Party	$ 72,010	$ 76,021

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 395,846	$ 400,900
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	639,146	421,105
Stock based compensation	25,496	23,092
Changes in operating assets and liabilities:
Accounts receivable, trade	(519,795)	(465,205)
Inventories	209,875	67,358
Prepaid expenses and other current assets	(602,700)	(410,970)
Deposits	13,261	1,660
Deferred income taxes	55,000	15,000
Accounts payable	358,656	715,259
Customer deposits	(6,752)	92,734
Accrued expenses	797,900	170,606
TOTAL ADJUSTMENTS	970,087	630,939
NET CASH PROVIDED BY OPERATING ACTIVITIES	1,365,933	1,031,539
CASH FLOWS FROM INVESTING ACTIVITIES
(Issuance) Payment of note receivable	(500,000)	61,829
Purchase of property and equipment	(49,950)	(159,103)
NET CASH USED IN INVESTING ACTIVITIES	(549,950)	(97,274)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of notes payable	(279,726)	(785,727)
(Repayment) Proceeds from line of credit	(350,000)	175,000
NET CASH USED IN FINANCING ACTIVITIES	(629,726)	(610,727)
NET CHANGE IN CASH	186,257	323,538
CASH - Beginning	531,003	146,405
CASH - Ending	717,260	469,943
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest	16,730	71,101
Income taxes	$ 310,561	$ 207,287

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Discontinued Operations

9 Months Ended

Sep. 30, 2015

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

NOTE 5 – Discontinued Operations

As disclosed in a Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on July 6, 2015, the Company entered into a Stock Purchase Agreement, dated June 30, 2015, by and between the Company and Warren A. Peck (the “Agreement”). Pursuant to the Agreement, Mr. Peck was to purchase all of the outstanding capital stock of the Company’s wholly-owned subsidiary Phoenix Rising Aviation, Inc. (“PRA”). The closing of the transactions contemplated by the Agreement occurred on September 30, 2015. At that time, in exchange for all of the outstanding capital stock of PRA, Mr. Peck was required to pay the Company $250,000 in cash, execute a $250,000 Secured Promissory Note in favor of the Company; and (iii) execute an Installment Payment Agreement giving the Company rights to earn-out payments based on EBITDA thresholds achieved by PRA post-closing. As a result of the sale, PRA results of operations have been reported as discontinued operations in the Condensed Consolidated Balance Sheets and Statements of Operations for the three and nine months ended September 30, 2015 and 2014. The Agreement, Secured Promissory Note and Installment Payment Agreement were included as exhibits with the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2015. On September 30, 2015 the Company and Mr. Peck executed the Closing Cash Agreement, which is filed herewith. The Agreement provided for Mr. Peck to sign over to the Company title to an aircraft in temporary lieu of the $250,000 cash consideration due at closing. As further described in the Agreement, the Company shall receive the $250,000 closing cash payment, plus other identified costs, when the aircraft is subsequently sold. The $250,000 closing cash consideration plus receivables associated with the Note are therefore reflected as a Note Receivable in the Condensed Consolidated Balance Sheets as of September 30, 2015.

Components of discontinued operations are as follows:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Revenue	$	900,408	$	716,145	$	1,763,944	$	1,446,372
Cost of revenue		787,154		499,859		1,346,760		1,024,516
Gross profit		113,254		216,286		417,184		421,856
Operating expenses		387,448		231,733		867,765		731,432
Operating (loss) from discontinued operations		(274,194)		(15,447)		(450,581)		(309,576)
Interest expense		(7,774)		(9,687)		(24,575)		(29,519)
Other income (expense)		26,641		(50,000)		24,685		(50,000)
Income tax benefit		75,000		40,000		141,000		141,000
Net (loss) from discontinued operations		(180,327)		(35,134)		(309,471)		(248,095)
Basic net (loss) per common share		(0.01)		(0.00)		(0.01)		(0.01)
Weighted average number of shares outstanding, basic		33,107,610		33,107,610		33,107,610		33,106,511

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Inventories (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Inventory [Line Items]
Total inventory	$ 89,464	$ 79,965
Fuel [Member]
Inventory [Line Items]
Total inventory	78,471	68,891
Other Inventory [Member]
Inventory [Line Items]
Total inventory	$ 10,993	$ 11,074