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, 2014

or

¨C 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 ¨

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 14, 2014, 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, 2014

Index

			Page
PART I - FINANCIAL INFORMATION
	ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
		Balance Sheets as of September 30, 2014 (unaudited) and December 31, 2013	1
		Statements of Operations for the Three and Nine Months Ended September 30, 2014 and 2013 (unaudited)	2
		Statements of Cash Flows for the Nine Months Ended September 30, 2014 and 2013 (unaudited)	3
		Notes to Financial Statements (unaudited)	4
	ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	8
	ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	13
	ITEM 4.	CONTROLS AND PROCEDURES	13
PART II - OTHER INFORMATION
	ITEM 6.	EXHIBITS	14
SIGNATURES			15

ii

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30, 2014			December 31, 2013
	(unaudited)
ASSETS
CURRENT ASSETS
Cash	$	469,943		$	146,405
Accounts receivable		2,091,844			1,626,639
Inventories		271,155			338,513
Note receivable – current portion, less discount		130,500			116,219
Prepaid expenses and other current assets		1,410,449			999,479
Total current assets		4,373,891			3,227,255
PROPERTY AND EQUIPMENT, net of accumulated depreciation and amortization of $1,569,812 and $1,249,362 respectively		2,182,838			2,444,840
OTHER ASSETS
Deposits		178,524			180,184
Note receivable, less current portion and discount		0			76,110
Intangible assets		360,000			360,000
Goodwill		1,080,380			1,080,380
Total other assets		1,618,904			1,696,674
TOTAL ASSETS	$	8,175,633		$	7,368,769
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$	1,585,227		$	869,968
Customer deposits		224,282			131,548
Line of credit		550,000			375,000
Accrued expenses		725,783			555,177
Notes payable – current portion		441,865			992,862
Total current liabilities		3,527,157			2,924,555
LONG-TERM LIABILITIES
Deferred income taxes		155,000			140,000
Notes payable - less current portion		1,049,710			1,284,440
Total liabilities		4,731,867			4,348,995
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 and 33,057,610 shares issued and outstanding as of September 30, 2014 and December 31, 2013, respectively		33,108			33,057
Additional paid-in capital		19,948,848			19,925,807
Accumulated deficit		(16,538,190	)		(16,939,090	)
TOTAL STOCKHOLDERS’ EQUITY		3,443,766			3,019,774
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	8,175,633		$	7,368,769

See notes to condensed consolidated financial statements.

1

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,
	2014			2013			2014			2013
REVENUE	$	5,517,423		$	4,065,462		$	13,670,711		$	10,775,000
COST OF REVENUE		3,194,610			2,242,026			7,580,380			5,755,799
GROSS PROFIT		2,322,813			1,823,436			6,090,331			5,019,201
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		1,882,667			1,435,146			5,127,217			3,828,975
OPERATING INCOME FROM CONTINUING OPERATIONS		440,146			388,290			963,114			1,190,226
OTHER INCOME (EXPENSE)
OTHER INCOME (EXPENSE), net		(45,000	)		6,402			(33,806	)		15,477
OTHER EXPENSE – HURRICANE SANDY		—			—			—			(111,145	)
INTEREST INCOME		788			4,172			6,693			13,926
INTEREST EXPENSE		(22,063	)		(29,789	)		(71,101	)		(83,312	)
TOTAL OTHER EXPENSE, net		(66,275	)		(19,215	)		(98,214	)		(165,054	)
INCOME FROM CONTINUING OPERATIONS, before income taxes		373,871			369,075			864,900			1,025,172
INCOME TAX (EXPENSE) BENEFIT
CURRENT		(179,000	)		(69,000	)		(449,000	)		(256,000	)
DEFERRED		(15,000	)		614,000			(15,000	)		420,000
INCOME TAX (EXPENSE) BENEFIT		(194,000	)		545,000			(464,000	)		164,000
INCOME FROM CONTINUING OPERATIONS		179,871			914,075			400,900			1,189,172
DISCONTINUED OPERATIONS		—			(2,281,880	)		—			(2,265,488	)
NET INCOME (LOSS)	$	179,871		$	(1,367,805	)	$	400,900		$	(1,076,316	)
Basic and Diluted Net Income (Loss) Per Common Share	$	0.01		$	(0.04	)	$	0.01		$	(0.03	)
Weighted Average Number of Common Shares – Basic		33,107,610			33,057,610			33,106,511			33,048,321
Weighted Average Number of Common Shares - Diluted		34,289,088			34,522,562			34,287,989			34,513,273

See notes to condensed consolidated financial statements

2

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Nine Months Ended September 30,
	2014			2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	400,900		$	(1,076,316	)
Adjustments:
Depreciation and amortization		421,105			355,934
Stock based compensation		23,092			27,232
Changes in operating assets and liabilities:
Accounts receivable, trade		(465,205	)		(471,709	)
Accounts receivable, insurance recovery		—			147,928
Inventories		67,358			217,447
Prepaid expenses and other current assets		(410,970	)		(239,515	)
Deposits		1,660			—
Deferred income taxes		15,000			(420,000	)
Accounts payable		715,259			(217,743	)
Customer deposits		92,734			7,720
Accrued expenses		170,606			(76,775	)
Impaired goodwill and trade name, discontinued operations		0			1,938,284
TOTAL ADJUSTMENTS		630,639			1,268,803
NET CASH PROVIDED BY OPERATING ACTIVITIES		1,031,539			192,487
CASH FLOWS FROM INVESTING ACTIVITIES
Payment of note receivable		61,829			80,575
Purchase of property and equipment		(159,103	)		(543,918	)
Purchase of assets, net of liabilities		—			(1,338,204	)
Accounts receivable, insurance recovery		—			315,014
NET CASH USED IN INVESTING ACTIVITIES		(97,274	)		(1,486,533	)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings from notes payable		—			1,630,920
Repayment of notes payable		(785,727	)		(760,973	)
Proceeds from line of credit		175,000			300,000
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		(610,727	)		1,169,947
NET CHANGE IN CASH		323,538			(124,099	)
CASH – Beginning		146,405			250,408
CASH – Ending	$	469,943		$	126,309
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the periods for:
Interest	$	71,101		$	83,312
Income Taxes	$	207,287		$	182,200

See notes to condensed consolidated financial statements.

3

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 the Quarterly Report on Form 10-Q, as promulgated by the Securities and Exchange Commission (the “SEC”). 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, 2013.

The condensed consolidated balance sheet and statements of cash flows as of September 30, 2014 and the condensed consolidated statements of operations for the three and nine months ended September 30, 2014 and 2013 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, 2014 and its results of operations for the three and nine months ended September 30, 2014, and cash flows for the nine months ended September 30, 2014 not misleading. The results of operations for the three and nine months ended September 30, 2014 are not necessarily indicative of the results to be expected for any full year or any other interim period.

The Company has evaluated events which have occurred subsequent to September 30, 2014 , and through the date of the filing of the Quarterly Report on Form 10-Q with the SEC, and has determined that no subsequent events have occurred after the current reporting period.

NOTE 2 – Management’s Liquidity Plans

As of September 30, 2014, the Company had cash of $469,943 and had a working capital surplus of $846,734. For the nine months ended September 30, 2014, the Company generated revenue of $13,670,711 and net income of $400,900.

On May 17, 2013, the Company entered into a loan agreement with PNC Bank (the “PNC Loan Agreement”). The PNC Loan Agreement contains 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 (2.91% as of September 30, 2014). An unused commitment fee had been applied at a rate of 1.5% on the unused portion of the PNC Acquisition Line and was charged for each fiscal quarter through the Conversion Date. As of September 30, 2014, there was $1,260,000 outstanding under the PNC Acquisition Line.

The PNC Working Capital Line may be dispersed for the Company’s working capital needs and for general corporate purposes. Interest on outstanding principal accrues at a rate equal to daily LIBOR plus 250 basis points (2.66% as of September 30, 2014) and the PNC Working Capital Line is annually renewable at PNC Bank’s option. As of September 30, 2014, the outstanding balance of the PNC Working Capital Line was $550,000.

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 (2.91% as of September 30, 2014) and principal and interest payments shall be made over a 34 month period. As of September 30, 2014, the outstanding balance of the PNC Term Loan was $152,499.

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 $1.2 million in the first year of the term and minimum annual guaranteed payments increase to approximately $1.7 million by the final year of Concession Agreement, which expires on October 31, 2018. During the nine months ended September 30, 2014, the Company incurred approximately $2,050,000 in concession fees, which is recorded in the cost of revenue.

4

NOTE 3 – Acquisition

On August 15, 2013, the Company purchased 100% of the stock of Phoenix Rising Aviation, Inc. (“PRA”), an aircraft maintenance, repair and overhaul firm located in Bartlesville, Oklahoma. Under the terms of the acquisition agreement, the Company paid $1,350,000 in cash and up to $1,000,000 in future installment payments, the payment of which are subject to the achievement of certain performance thresholds for PRA as defined in the acquisition agreement. The closing cash payment was funded through the Company’s acquisition line of credit with PNC Bank, as described above in Note 2 – “Liquidity.”

The following table presents the unaudited pro forma results of the continuing operations of the Company and PRA for the nine month period ending September 30, 2013 as if PRA had been acquired at the beginning the period:

	Nine Months Ended September 30, 2013
Revenue	$	12,802,422
Income from continuing operations		1,357,279
Basic net income per common share	$	0.04
Weighted Average Number of Common Shares Outstanding – Basic		33,048,321

The above pro forma combined results are not necessarily indicative of the results that would have actually occurred if the PRA acquisition had been completed as of the beginning of the year 2013, nor are they necessarily indicative of future consolidated results.

NOTE 4 - 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”), our FBO at Garden City (Kansas) Regional Airport (“FBOGC”), Phoenix Rising Aviation, Inc. (“PRA”), and our former FBO at Wilkes-Barre, Pennsylvania. All significant inter-company accounts and transactions have been eliminated in consolidation.

Net Income Per Common Share

Net income was $179,871 and $400,900 for the three and nine months ended September 30, 2014, respectively. Net loss was $1,367,805 and $1,076,316 for the three and nine months ended September 30, 2013, respectively. Basic net income (loss) 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 (loss) per share:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2014*		2013*		2014*		2013*
Weighted average common shares outstanding, basic		33,107,610		33,057,610		33,106,511		33,048,321
Common shares upon exercise of options		1,181,478		1,464,952		1,181,478		1,464,952
Weighted average common shares outstanding, diluted		34,289,088		34,522,562		34,287,989		34,513,273

5

(*1) Potential common shares of 1,550,000 and 950,000 for the nine months ended September 30, 2014 and 2013, respectively, were excluded from the computation of diluted earnings as their exercise prices were greater than the average market price of the common stock for the three and nine months ended September 30, 2014 and 2013, respectively.

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, 2014 and 2013, the Company incurred stock based compensation costs of $23,092 and $27,232 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, 2014, 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 September 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2011-08, Intangibles – Goodwill and Other (Topic 350) – Testing Goodwill for Impairment (ASU 2011-08), to allow entities to use a qualitative approach to test goodwill for impairment. ASU 2011-08 permits an entity to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is concluded that this is the case, it is necessary to perform the currently prescribed two-step goodwill impairment test. Otherwise, the two-step goodwill impairment test is not required. The Company has adopted ASU 2011-08 on its condensed consolidated financial statements for 2014 and 2013.

NOTE 5 – Discontinued Operations

As disclosed in a Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on August 21, 2013, and further described in NOTE 7 – “Subsequent Events” in the Company’s June 30, 2013 Quarterly Report on Form 10-Q, the Company’s attempts to secure a preliminary injunction in connection with its lease at the Wilkes-Barre/Scranton International Airport were unsuccessful. As a result, effective August 31, 2013, the Company no longer served as a fixed base operator (“FBO Operator”) at that airport. The results of business activities previously conducted by the Company at the Wilkes-Barre/Scranton International Airport have been recorded in this Quarterly Report on Form 10-Q as Discontinued Operations.

Components of discontinued operations are as follows:

As of September 30, 2014 and December 31, 2013, assets principally consisting of trade receivables and equipment of $0 and $160,000, respectively, and liabilities principally consisting of accrued expenses of $0 and $28,000, respectively, were included in the consolidated balance sheets.

	For the Nine Months Ended September 30,
	2014		2013
Revenue	$	—	$	3,100,233
Cost of revenue		—		2,350,109
Gross profit		—		750,124
Operating expenses		—		863,718
Operating loss from discontinued operations		—		(113,594	)
Interest expense, net		—		(4,326	)
Impairment of goodwill, intangible and fixed assets		—		(2,080,755	)
Other expense, net		—		(66,813	)
Income tax expense		—		—
Net loss from discontinued operations		—		(2,265,488	)
Basic net loss per common share	$	0.00	$	(0.07	)
Weighted average number of common shares outstanding, basic		33,106,511		33,048,321

6

NOTE 6 - Inventories

Inventories consist primarily of maintenance parts and 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, 2014 and December 31, 2013 is set forth in the following table:

	September 30, 2014		December 31, 2013
Parts inventory	$	202,708	$	204,899
Fuel inventory		52,080		116,938
Other inventory		16,367		16,676
Total inventory	$	271,155	$	338,513

Included in inventories are amounts held for third parties of $71,378 and $11,666 as of September 30, 2014 and December 31, 2013, respectively, with an offsetting liability included as part of accrued expenses.

NOTE 7 – 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 this firm. During the three and nine months ended September 30, 2014 and 2013, the Company was billed by Wachtel & Missry, LLP approximately $0 for legal services. At September 30, 2014 and December 31, 2013, the Company has recorded an obligation of approximately $0 and $250, respectively, in accounts payable related to legal services provided by Wachtel & Missry, LLP for prior periods.

On August 29, 2011, the Company entered into a redemption agreement with the non-controlling interest in a subsidiary of the Company (the “Redemption Agreement”). Pursuant to the terms of the Redemption Agreement, the non-controlling interest relinquished its membership interest in the subsidiary in return for earn-out payments of the non-controlling interest’s capital account of $2,769,000. Of that amount, $444,000 was paid upon the execution of the Redemption Agreement and an additional approximately $2,260,505 was paid through September 30, 2014. The balance of $64,495 is recorded as a current liability at a discount rate of seven (7%) percent. Continuing earn-out payments will be made on a monthly basis in an amount equal to (i) five percent (5%) of the subsidiary’s gross receipts, plus (ii) five percent (5%) of the subsidiary’s pre-tax profit.

NOTE 8 - 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.

7

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, 2013.

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. 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.

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.

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 an MRO at the Bartlesville (Oklahoma) Municipal Airport, and as a consultant to the operator of a seaplane base in New York City.

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 consolidated unaudited financial statements included in this Quarterly Report on Form 10-Q.

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.

8

We ceased operations at our former FBO at Wilkes-Barre, Pennsylvania on August 31, 2013.

REVENUE AND OPERATING RESULTS

Comparison of the Three and Nine Months Ended September30, 2014 and September 30, 2013.

REVENUE

Revenue increased by 35.7 percent to $5,517,423 for the three months ended September 30, 2014 as compared with corresponding prior-year period revenue of $4,065,461. Revenue increased by 26.9 percent to $13,670,711 for the nine months ended September 30, 2014 as compared with corresponding prior-year period revenue of $10,775,000.

For the three months ended September 30, 2014, revenue associated with the sale of jet fuel, aviation gasoline and related items increased by 28.8 percent to approximately $2,166,000 as compared to approximately $1,682,000 in the three months ended September 30, 2013. The increase was due to a 33.4% increase in fuel gallons, which offset a slightly lower average revenue per gallon. The average revenue per gallon decrease was due to a shift in the mix of fuel sold by category as compared to the prior year

For the three months ended September 30, 2014, revenue associated with services and supply items increased by 40.9 percent to approximately $3,322,000 as compared to approximately $2,358,000 in the three months ended September 30, 2013. The increase was primarily driven by revenue from the MRO business acquired on August 15, 2013, which recognized a full three months of activity in 2014 as compared to several weeks in the 2013 period.

For the three months ended September 30, 2014, all other revenue increased by 15.0 percent to approximately $30,000 as compared to approximately $26,000 in the three months ended September 30, 2013.

For the nine months ended September 30, 2014, revenue associated with the sale of jet fuel, aviation gasoline and related items increased by 10.9 percent to approximately $5,388,000 as compared to approximately $4,860,000 in the nine months ended September 30, 2013. The increase was due to the same driving factors described above for the three months ended September 30, 2014.

For the nine months ended September 30, 2014, revenue associated with services and supply items increased by 40.1 percent to approximately $8,197,000 as compared to approximately $5,850,000 in the nine months ended September 30, 2013. The increase was also due to the same driving factors described above for the three months ended September 30, 2014.

For the nine months ended September 30, 2014, all other revenue increased by 31.2 percent to approximately $86,000 as compared to approximately $65,000 in the nine months ended September 30, 2013. The increase was largely attributable to miscellaneous revenue recorded in the nine months ended September 30, 2014 that did not occur in the same period last year.

GROSS PROFIT

Total gross profit increased 27.4 percent to $2,322,813 in the three months ended September 30, 2014 as compared to $1,823,436 in the three months ended September 30, 2013. Gross margin decreased to 42.1 percent in the three months ended September 30, 2014 as compared to 44.9 percent in the same period in the prior year. The decrease in gross margin was largely driven by increases in services and supply items as a result of our MRO acquisition. The MRO business operates on a slightly lower margin than the remainder of services and supply items. The lack of comparison MRO revenue or gross profit in the quarter ended September 30, 2013 led to the overall decline in gross margin.

Total gross profit increased 21.3 percent to $6,090,331 in the nine months ended September 30, 2014 as compared to $5,019,201 in the nine months ended September 30, 2013. Gross margin decreased to 44.6 percent in the nine months ended September 30, 2014 as compared to 46.6 percent in the same period in the prior year. The decrease in gross margin was largely due to the same driving factors described above for the three months ended September 30, 2014.

9

OPERATING EXPENSE

Selling, General and Administrative

Total selling, general and administrative expenses, or SG&A, were approximately $1,883,000 in the three months ended September 30, 2014, representing an increase of approximately $448,000 or 31 percent, as compared to the same period in 2013. Total selling, general and administrative expenses, or SG&A, were approximately $5,127,000 in the nine months ended September 30, 2014, representing an increase of approximately $1,298,000 or 34 percent, as compared to the same period in 2013.

SG&A associated with our aviation services operations were approximately $1,792,000 in the three months ended September 30, 2014, representing an increase of approximately $443,000, or 32.8 percent, as compared to the three months ended September 30, 2013. SG&A associated with our aviation services operations, as a percentage of revenue, was 32.5 percent for the three months ended September 30, 2014, as compared with 33.2 percent in the corresponding prior year period. The increases on a dollar and margin basis are related to our MRO acquisition.

SG&A associated with our aviation services operations were approximately $4,879,000 in the nine months ended September 30, 2014, representing an increase of approximately $1,254,000, or 34.6 percent, as compared to the nine months ended September 30, 2013. SG&A associated with our aviation services operations, as a percentage of revenue, was 35.7 percent for the nine months ended September 30, 2014, as compared with 33.6 percent in the corresponding prior year period. Again, the increases on a dollar and margin basis are related to our MRO acquisition.

Corporate SG&A was approximately $91,000 and $248,000 for the three and nine months ended September 30, 2014, respectively. There was no material change from the corresponding three month period in 2013 and an increase of approximately $44,000 or 21.6% in the nine month period comparison. Increases in the nine-months ended September 30, 2014 were due to larger amounts of accounting expense, consulting fees, and depreciation expense as compared to the same period in 2013.

OPERATING INCOME

Operating income for the three and nine months ended September 30, 2014 was $440,146 and $963,114, respectively, as compared to $388,290 and $1,190,226, respectively, in the three and nine months ended September 30, 2013.

Depreciation and Amortization

Depreciation and amortization was approximately $421,000 and $356,000 for the nine months ended September 30, 2014 and 2013, respectively.

Interest Income/Expense

Interest income for the nine months ended September 30, 2014 was approximately $6,700, as compared to $13,900 in the nine months ended September 30, 2013 with the decrease largely attributable to lower rates of interest in connection with deposited amounts. Interest expense for the nine months ended September 30, 2014 was approximately $71,000, as compared to $83,000 in the same period in 2013.

Other Expense – Hurricane Sandy

Other expenses of approximately $111,000 were recorded in connection with reconstruction efforts in the aftermath of Hurricane Sandy, as described at greater length in Part II of our Annual Report on Form 10-K for the year ended December 31, 2012. There were no comparable expenses in the 2014 reporting period.

10

Income Tax

Income tax expense for the three and nine months ended September 30, 2014 was approximately $194,000 and $464,000, respectively, as compared to income tax benefit of approximately $545,000 and $164,000, respectively, during the same period in 2013. The year over year change in is due to the tax benefit from the loss from discontinued operations recorded in 2013.

Net Income Per Share

Net income (loss) was $400,900 and $(1,076,316) for the nine months ended September 30, 2014 and 2013, respectively. The change in year over year is primarily due to the loss from discontinued operations recorded in 2013.

Basic and diluted net income (loss) per share for the nine month periods ended September 30, 2014 and 2013 were $0.01 and $(0.03), respectively.

LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 2014, we had cash of $469,943 and a working capital surplus of $846,734. For the nine months ended September 30, 2014, we generated revenue from continuing operations of $13,670,711 and net income from continuing operations of $400,900. For the nine months ended September 30, 2014, cash flows included net cash provided by operating activities of $1,031,539, net cash used in investing activities of $97,274, and net cash used in financing activities of $610,727. .

On May 17, 2013, we entered into a loan agreement with PNC Bank (the “PNC Loan Agreement”). The PNC Loan Agreement contains 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”).

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 thirty 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 sixty month period. Interest on the outstanding principal continues to accrue at a rate equal to one-month LIBOR plus 275 basis points (2.91% as of September 30, 2014). An unused commitment fee had been applied at a rate of 1.5% on the unused portion of the PNC Acquisition Line and was charged for each fiscal quarter through the Conversion Date. As of September 30, 2014, there was $1,260,000 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 (2.66% as of September 30, 2014) and is annually renewable at PNC Bank’s option. As of September 30, 2014, the outstanding balance of the PNC Working Capital Line was $550,000.

The PNC Term Loan was utilized to retire our previously outstanding miscellaneous debt of the same amount. Interest on outstanding principal accrues at a rate equal to one-month LIBOR plus 275 basis points (2.91% as of September 30, 2014) and principal and interest payments being made over a thirty-four month period. At September 30, 2014, the outstanding balance of the PNC Term Loan was $152,499.

We are 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, we must pay the greater of 18% of the first $5,000,000 in program year gross receipts and 25% of gross receipts in excess of $5 million or minimum annual guaranteed payments. We 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. During the nine months ended September 30, 2014 and 2013, we incurred approximately $2,050,000 and $1,600,000, respectively, in concession fees, which are recorded in the cost of revenue.

11

During the nine months ended September 30, 2014, we had a net increase in cash of $323,538. Our sources and uses of funds during this period were as follows:

Cash from Operating Activities

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. .

For the nine months ended September 30, 2013, net cash provided by operating activities was $192,487. This amount included a decrease in operating cash related to net loss of $1,076,316 and additions for the following items: (i) depreciation and amortization, $355,934; (ii) customer deposits, $7,720; (iii) stock-based compensation expense, $27,232; (iv) inventories, $217,447; (v) accounts receivable, insurance recovery, $147,928; and (vi) impairment of goodwill, discontinued operations, $1,938,284. The increase in cash used in operating activities in 2013 was offset by the following decreases: (i) accounts receivable, trade, $471,709; (ii) deferred income taxes, $420,000; (iii) accrued expenses, $76,775; (iv) accounts payable, $217,743; and (v) prepaid expenses, $239,515.

Cash from Investing Activities

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. For the nine months ended September 30, 2013, net cash of $1,486,533 was used in investing activities for (i) the purchase of $543,918 in property and equipment; and (ii) purchase of assets, net of liabilities of $1,338,204; offset by (i) the repayment of notes receivable of $80,575; and (ii) accounts receivable, insurance recover of $315,014.

Cash from Financing Activities

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. For the nine months ended September 30, 2013, net cash provided by financing activities was $1,169,947, consisting of (i) borrowings from notes payable, $1,630,920; (ii) line of credit, net, $300,000; offset by (iii) the repayment of notes payable of $760,973.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Recent Accounting Pronouncements

In September 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2011-08, Intangibles – Goodwill and Other (Topic 350) – Testing Goodwill for Impairment (ASU 2011-08), to allow entities to use a qualitative approach to test goodwill for impairment. ASU 2011-08 permits an entity to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is concluded that this is the case, it is necessary to perform the currently prescribed two-step goodwill impairment test. Otherwise, the two-step goodwill impairment test is not required. We have adopted ASU 2011-08 on its condensed consolidated financial statements for 2014 and 2013.

12

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, 2013 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 our 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 our 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.

13

PART II – OTHER INFORMATION

Item 6.  Exhibits

Exhibit No.	Description of Exhibit
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

14

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 14, 2014	By:	/s/ Ronald J. Ricciardi
		Ronald J. Ricciardi
		President

15

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 14, 2014

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 14, 2014

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 and principal executive officer, and Ronald J. Ricciardi, the President and principal financial officer, of Saker Aviation Services, Inc. do hereby certify that:

1. The Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2014 (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 14, 2014	By:	/s/ Alvin S. Trenk
		Alvin S. Trenk
		Chief Executive Officer (principal executive officer)
Date:         November 14, 2014	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.

XML

Discontinued Operations (Details Textual) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Trade Receivables	$ 0	$ 160,000
Disposal Group, Including Discontinued Operation, Accrued Liabilities, Current	$ 0	$ 28,000

XML

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

NOTE 4 - 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”), our FBO at Garden City (Kansas) Regional Airport (“FBOGC”), Phoenix Rising Aviation, Inc. (“PRA”), and our former FBO at Wilkes-Barre, Pennsylvania. All significant inter-company accounts and transactions have been eliminated in consolidation.

Net Income Per Common Share

Net income was $179,871 and $400,900 for the three and nine months ended September 30, 2014, respectively. Net loss was $1,367,805 and $1,076,316 for the three and nine months ended September 30, 2013, respectively. Basic net income (loss) 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 (loss) per share:

	For the Three Months Ended September 30,		For the Nine Months Ended September 30,
	2014*	2013*	2014*	2013*
Weighted average common shares outstanding, basic	33,107,610	33,057,610	33,106,511	33,048,321
Common shares upon exercise of options	1,181,478	1,464,952	1,181,478	1,464,952
Weighted average common shares outstanding, diluted	34,289,088	34,522,562	34,287,989	34,513,273

(*1) Potential common shares of 1,550,000 and 950,000 for the nine months ended September 30, 2014 and 2013, respectively, were excluded from the computation of diluted earnings as their exercise prices were greater than the average market price of the common stock for the three and nine months ended September 30, 2014 and 2013, respectively.

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, 2014 and 2013, the Company incurred stock based compensation costs of $23,092 and $27,232 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, 2014, 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 September 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2011-08, Intangibles – Goodwill and Other (Topic 350) – Testing Goodwill for Impairment (ASU 2011-08), to allow entities to use a qualitative approach to test goodwill for impairment. ASU 2011-08 permits an entity to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is concluded that this is the case, it is necessary to perform the currently prescribed two-step goodwill impairment test. Otherwise, the two-step goodwill impairment test is not required. The Company has adopted ASU 2011-08 on its condensed consolidated financial statements for 2014 and 2013.

XML

Related Parties (Details Textual) (USD $)	1 Months Ended	9 Months Ended
	Aug. 29, 2011	Sep. 30, 2014	Dec. 31, 2013
Related Party Transaction [Line Items]
Legal Fees		$ 0
Accounts Payable, Other, Current		0	250
Earn Out Amount For Extinguishment	2,769,000
Earn Out Payments For Extinguishment	444,000
Earn Out Payments Liability		The balance of $64,495 is recorded as a current liability at a discount rate of seven (7%) percent. Continuing earn-out payments will be made on a monthly basis in an amount equal to (i) five percent (5%) of the subsidiarys gross receipts, plus (ii) five percent (5%) of the subsidiarys pre-tax profit.
Additional Payments For Execution Of Redemption Agreement		$ 2,260,505

XML

Acquisition

9 Months Ended

Sep. 30, 2014

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

NOTE 3 – Acquisition

On August 15, 2013, the Company purchased 100% of the stock of Phoenix Rising Aviation, Inc. (“PRA”), an aircraft maintenance, repair and overhaul firm located in Bartlesville, Oklahoma. Under the terms of the acquisition agreement, the Company paid $1,350,000 in cash and up to $1,000,000 in future installment payments, the payment of which are subject to the achievement of certain performance thresholds for PRA as defined in the acquisition agreement. The closing cash payment was funded through the Company’s acquisition line of credit with PNC Bank, as described above in Note 2 – “Liquidity.”

The following table presents the unaudited pro forma results of the continuing operations of the Company and PRA for the nine month period ending September 30, 2013 as if PRA had been acquired at the beginning the period:

	Nine Months Ended September 30, 2013
Revenue	$	12,802,422
Income from continuing operations		1,357,279
Basic net income per common share	$	0.04
Weighted Average Number of Common Shares Outstanding – Basic		33,048,321

The above pro forma combined results are not necessarily indicative of the results that would have actually occurred if the PRA acquisition had been completed as of the beginning of the year 2013, nor are they necessarily indicative of future consolidated results.

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2014	Dec. 31, 2013
CURRENT ASSETS
Cash	$ 469,943	$ 146,405
Accounts receivable	2,091,844	1,626,639
Inventories	271,155	338,513
Note receivable - current portion, less discount	130,500	116,219
Prepaid expenses and other current assets	1,410,449	999,479
Total current assets	4,373,891	3,227,255
PROPERTY AND EQUIPMENT, net of accumulated depreciation and amortization of $1,569,812 and $1,249,362 respectively	2,182,838	2,444,840
OTHER ASSETS
Deposits	178,524	180,184
Note receivable, less current portion and discount	0	76,110
Intangible assets	360,000	360,000
Goodwill	1,080,380	1,080,380
Total other assets	1,618,904	1,696,674
TOTAL ASSETS	8,175,633	7,368,769
CURRENT LIABILITIES
Accounts payable	1,585,227	869,968
Customer deposits	224,282	131,548
Line of credit	550,000	375,000
Accrued expenses	725,783	555,177
Notes payable - current portion	441,865	992,862
Total current liabilities	3,527,157	2,924,555
LONG-TERM LIABILITIES
Deferred income taxes	155,000	140,000
Notes payable - less current portion	1,049,710	1,284,440
Total liabilities	4,731,867	4,348,995
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 and 33,057,610 shares issued and outstanding as of September 30, 2014 and December 31, 2013, respectively	33,108	33,057
Additional paid-in capital	19,948,848	19,925,807
Accumulated deficit	(16,538,190)	(16,939,090)
TOTAL STOCKHOLDERS' EQUITY	3,443,766	3,019,774
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 8,175,633	$ 7,368,769

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Basis of Presentation

9 Months Ended

Sep. 30, 2014

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 the Quarterly Report on Form 10-Q, as promulgated by the Securities and Exchange Commission (the “SEC”). 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, 2013.

The condensed consolidated balance sheet and statements of cash flows as of September 30, 2014 and the condensed consolidated statements of operations for the three and nine months ended September 30, 2014 and 2013 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, 2014 and its results of operations for the three and nine months ended September 30, 2014, and cash flows for the nine months ended September 30, 2014 not misleading. The results of operations for the three and nine months ended September 30, 2014 are not necessarily indicative of the results to be expected for any full year or any other interim period.

The Company has evaluated events which have occurred subsequent to September 30, 2014, and through the date of the filing of the Quarterly Report on Form 10-Q with the SEC, and has determined that no subsequent events have occurred after the current reporting period.

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Summary of Significant Accounting Policies (Details)	3 Months Ended				9 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2014		Sep. 30, 2013
Summary Of Significant Accounting Policies [Line Items]
Weighted average common shares outstanding, basic	33,107,610	[1]	33,057,610	[1]	33,106,511	[1]	33,048,321	[1]
Common shares upon exercise of options	1,181,478	[1]	1,464,952	[1]	1,181,478	[1]	1,464,952	[1]
Weighted average common shares outstanding, diluted	34,289,088	[1]	34,522,562	[1]	34,287,989	[1]	34,513,273	[1]

[1] Potential common shares of 1,550,000 and 950,000 for the nine months ended September 30, 2014 and 2013, respectively, were excluded from the computation of diluted earnings as their exercise prices were greater than the average market price of the common stock for the three and nine months ended September 30, 2014 and 2013, respectively.

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Discontinued Operations (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Discontinued Operations [Line Items]
Revenue			$ 0	$ 3,100,233
Cost of revenue			0	2,350,109
Gross profit			0	750,124
Operating expenses			0	863,718
Operating loss from discontinued operations			0	(113,594)
Interest expense, net			0	(4,326)
Impairment of goodwill, intangible and fixed assets			0	(2,080,755)
Other expense, net			0	(66,813)
Income tax expense			0	0
Net loss from discontinued operations	$ 0	$ (2,281,880)	$ 0	$ (2,265,488)
Basic net loss per common share (in dollars per share)			$ 0.00	$ (0.07)
Weighted average number of common shares outstanding, basic (in shares)			33,106,511	33,048,321

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Management's Liquidity Plans

9 Months Ended

Sep. 30, 2014

Going Concern [Abstract]

Going Concern Disclosure [Text Block]

NOTE 2 – Management’s Liquidity Plans

As of September 30, 2014, the Company had cash of $469,943 and had a working capital surplus of $846,734. For the nine months ended September 30, 2014, the Company generated revenue of $13,670,711 and net income of $400,900.

On May 17, 2013, the Company entered into a loan agreement with PNC Bank (the “PNC Loan Agreement”). The PNC Loan Agreement contains 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 (2.91% as of September 30, 2014). An unused commitment fee had been applied at a rate of 1.5% on the unused portion of the PNC Acquisition Line and was charged for each fiscal quarter through the Conversion Date. As of September 30, 2014, there was $1,260,000 outstanding under the PNC Acquisition Line.

The PNC Working Capital Line may be dispersed for the Company’s working capital needs and for general corporate purposes. Interest on outstanding principal accrues at a rate equal to daily LIBOR plus 250 basis points (2.66% as of September 30, 2014) and the PNC Working Capital Line is annually renewable at PNC Bank’s option. As of September 30, 2014, the outstanding balance of the PNC Working Capital Line was $550,000.

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 (2.91% as of September 30, 2014) and principal and interest payments shall be made over a 34 month period. As of September 30, 2014, the outstanding balance of the PNC Term Loan was $152,499.

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 $1.2 million in the first year of the term and minimum annual guaranteed payments increase to approximately $1.7 million by the final year of Concession Agreement, which expires on October 31, 2018. During the nine months ended September 30, 2014, the Company incurred approximately $2,050,000 in concession fees, which is recorded in the cost of revenue.

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CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $)	Sep. 30, 2014	Dec. 31, 2013
PROPERTY AND EQUIPMENT, net of accumulated depreciation and amortization (in dollars)	$ 1,569,812	$ 1,249,362
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	33,057,610
Common stock, shares outstanding	33,107,610	33,057,610

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Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]

As of September 30, 2014 and December 31, 2013, assets principally consisting of trade receivables and equipment of $0 and $160,000, respectively, and liabilities principally consisting of accrued expenses of $0 and $28,000, respectively, were included in the consolidated balance sheets.

	For the Nine Months Ended September 30,
	2014		2013
Revenue	$	—	$	3,100,233
Cost of revenue		—		2,350,109
Gross profit		—		750,124
Operating expenses		—		863,718
Operating loss from discontinued operations		—		(113,594)
Interest expense, net		—		(4,326)
Impairment of goodwill, intangible and fixed assets		—		(2,080,755)
Other expense, net		—		(66,813)
Income tax expense		—		—
Net loss from discontinued operations		—		(2,265,488)
Basic net loss per common share	$	0.00	$	(0.07)
Weighted average number of common shares outstanding, basic		33,106,511		33,048,321

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Document And Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 14, 2014
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
Entity Registrant Name	Saker Aviation Services, Inc.
Trading Symbol	SKAS
Entity Common Stock, Shares Outstanding		33,107,610
Entity Filer Category	Smaller Reporting Company
Entity Central Index Key	0001128281
Current Fiscal Year End Date	--12-31

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Inventories (Tables)

9 Months Ended

Sep. 30, 2014

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

A summary of inventories as of September 30, 2014 and December 31, 2013 is set forth in the following table:

	September 30, 2014		December 31, 2013
Parts inventory	$	202,708	$	204,899
Fuel inventory		52,080		116,938
Other inventory		16,367		16,676
Total inventory	$	271,155	$	338,513

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended				9 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2014		Sep. 30, 2013
REVENUE	$ 5,517,423		$ 4,065,462		$ 13,670,711		$ 10,775,000
COST OF REVENUE	3,194,610		2,242,026		7,580,380		5,755,799
GROSS PROFIT	2,322,813		1,823,436		6,090,331		5,019,201
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	1,882,667		1,435,146		5,127,217		3,828,975
OPERATING INCOME FROM CONTINUING OPERATIONS	440,146		388,290		963,114		1,190,226
OTHER INCOME (EXPENSE)
OTHER INCOME (EXPENSE), net	(45,000)		6,402		(33,806)		15,477
OTHER EXPENSE - HURRICANE SANDY	0		0		0		(111,145)
INTEREST INCOME	788		4,172		6,693		13,926
INTEREST EXPENSE	(22,063)		(29,789)		(71,101)		(83,312)
TOTAL OTHER EXPENSE, net	(66,275)		(19,215)		(98,214)		(165,054)
INCOME FROM CONTINUING OPERATIONS, before income taxes	373,871		369,075		864,900		1,025,172
INCOME TAX (EXPENSE) BENEFIT
CURRENT	(179,000)		(69,000)		(449,000)		(256,000)
DEFERRED	(15,000)		614,000		(15,000)		420,000
INCOME TAX (EXPENSE) BENEFIT	(194,000)		545,000		(464,000)		164,000
INCOME FROM CONTINUING OPERATIONS	179,871		914,075		400,900		1,189,172
DISCONTINUED OPERATIONS	0		(2,281,880)		0		(2,265,488)
NET INCOME (LOSS)	$ 179,871		$ (1,367,805)		$ 400,900		$ (1,076,316)
Basic and Diluted Net Income (Loss) Per Common Share (in dollors per share)	$ 0.01		$ (0.04)		$ 0.01		$ (0.03)
Weighted Average Number of Common Shares - Basic (in shares)	33,107,610	[1]	33,057,610	[1]	33,106,511	[1]	33,048,321	[1]
Weighted Average Number of Common Shares - Diluted (in shares)	34,289,088	[1]	34,522,562	[1]	34,287,989	[1]	34,513,273	[1]

[1] Potential common shares of 1,550,000 and 950,000 for the nine months ended September 30, 2014 and 2013, respectively, were excluded from the computation of diluted earnings as their exercise prices were greater than the average market price of the common stock for the three and nine months ended September 30, 2014 and 2013, respectively.

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Related Parties

9 Months Ended

Sep. 30, 2014

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

NOTE 7 – 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 this firm. During the three and nine months ended September 30, 2014 and 2013, the Company was billed by Wachtel & Missry, LLP approximately $0 for legal services. At September 30, 2014 and December 31, 2013, the Company has recorded an obligation of approximately $0 and $250, respectively, in accounts payable related to legal services provided by Wachtel & Missry, LLP for prior periods.

On August 29, 2011, the Company entered into a redemption agreement with the non-controlling interest in a subsidiary of the Company (the “Redemption Agreement”). Pursuant to the terms of the Redemption Agreement, the non-controlling interest relinquished its membership interest in the subsidiary in return for earn-out payments of the non-controlling interest’s capital account of $2,769,000. Of that amount, $444,000 was paid upon the execution of the Redemption Agreement and an additional approximately $2,260,505 was paid through September 30, 2014. The balance of $64,495 is recorded as a current liability at a discount rate of seven (7%) percent. Continuing earn-out payments will be made on a monthly basis in an amount equal to (i) five percent (5%) of the subsidiary’s gross receipts, plus (ii) five percent (5%) of the subsidiary’s pre-tax profit.

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Inventories

9 Months Ended

Sep. 30, 2014

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

NOTE 6 - Inventories

Inventories consist primarily of maintenance parts and 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, 2014 and December 31, 2013 is set forth in the following table:

	September 30, 2014		December 31, 2013
Parts inventory	$	202,708	$	204,899
Fuel inventory		52,080		116,938
Other inventory		16,367		16,676
Total inventory	$	271,155	$	338,513

Included in inventories are amounts held for third parties of $71,378 and $11,666 as of September 30, 2014 and December 31, 2013, respectively, with an offsetting liability included as part of accrued expenses.

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Summary of Significant Accounting Policies (Details Textual) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Summary Of Significant Accounting Policies [Line Items]
Stock based compensation			$ 23,092	$ 27,232
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount			1,550,000	950,000
Share Based Compensation Stock Options Unamortized Fair Value			0
Net income	$ 179,871	$ (1,367,805)	$ 400,900	$ (1,076,316)

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Management's Liquidity Plans (Details Textual) (USD $)	3 Months Ended		9 Months Ended				9 Months Ended				9 Months Ended			9 Months Ended			9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2014 Concession Agreement [Member]	Sep. 30, 2014 PNC Acquisition [Member]	May 17, 2014 PNC Acquisition [Member]	May 17, 2013 PNC Acquisition [Member]	Sep. 30, 2014 PNC Acquisition [Member] LIBOR [Member]	Sep. 30, 2014 PNC Working Capital [Member]	May 17, 2013 PNC Working Capital [Member]	Sep. 30, 2014 PNC Working Capital [Member] LIBOR [Member]	Sep. 30, 2014 PNC Term Loan [Member]	May 17, 2013 PNC Term Loan [Member]	Sep. 30, 2014 PNC Term Loan [Member] LIBOR [Member]
Going Concern [Line Items]
Cash	$ 469,943	$ 126,309	$ 469,943	$ 126,309	$ 146,405	$ 250,408
Working Capital	846,734		846,734
Revenue	5,517,423	4,065,462	13,670,711	10,775,000
Net income	179,871	914,075	400,900	1,189,172
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							5,000,000
Minimum Annual Guarantee, Year One							1,200,000
Amount Paid Greater Than Gross Receipts In Year Ten							1,700,000
Concession Fees							2,050,000
Line of Credit Facility, Amount Outstanding								1,260,000				550,000			152,499
Line of Credit Facility, Maximum Borrowing Capacity										2,500,000
Short-term Debt													1,150,000			280,920
Line of Credit Facility, Interest Rate During Period								2.91%				2.66%			2.91%
Line of Credit Facility, Interest Rate Description											LIBOR plus 275 basis points			LIBOR plus 250 basis points			LIBOR plus 275 basis points
Line Of Credit Facility Payment Term								60 months							34 months
Line of Credit Facility, Commitment Fee Percentage								1.50%
Line of Credit Facility, Fair Value of Amount Outstanding									$ 1,350,000

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Acquisition (Tables)

9 Months Ended

Sep. 30, 2014

Business Combinations [Abstract]

Business Acquisition, Pro Forma Information [Table Text Block]

The following table presents the unaudited pro forma results of the continuing operations of the Company and PRA for the nine month period ending September 30, 2013 as if PRA had been acquired at the beginning the period:

	Nine Months Ended September 30, 2013
Revenue	$	12,802,422
Income from continuing operations		1,357,279
Basic net income per common share	$	0.04
Weighted Average Number of Common Shares Outstanding – Basic		33,048,321

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Litigation

9 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Legal Proceedings [Text Block]

NOTE 8 - 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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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2014

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”), our FBO at Garden City (Kansas) Regional Airport (“FBOGC”), Phoenix Rising Aviation, Inc. (“PRA”), and our former FBO at Wilkes-Barre, Pennsylvania. All significant inter-company accounts and transactions have been eliminated in consolidation.

Earnings Per Share, Policy [Policy Text Block]

Net Income Per Common Share

Net income was $179,871 and $400,900 for the three and nine months ended September 30, 2014, respectively. Net loss was $1,367,805 and $1,076,316 for the three and nine months ended September 30, 2013, respectively. Basic net income (loss) 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 (loss) per share:

	For the Three Months Ended September 30,		For the Nine Months Ended September 30,
	2014*	2013*	2014*	2013*
Weighted average common shares outstanding, basic	33,107,610	33,057,610	33,106,511	33,048,321
Common shares upon exercise of options	1,181,478	1,464,952	1,181,478	1,464,952
Weighted average common shares outstanding, diluted	34,289,088	34,522,562	34,287,989	34,513,273

(*1) Potential common shares of 1,550,000 and 950,000 for the nine months ended September 30, 2014 and 2013, respectively, were excluded from the computation of diluted earnings as their exercise prices were greater than the average market price of the common stock for the three and nine months ended September 30, 2014 and 2013, respectively.

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, 2014 and 2013, the Company incurred stock based compensation costs of $23,092 and $27,232 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, 2014, 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 September 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2011-08, Intangibles – Goodwill and Other (Topic 350) – Testing Goodwill for Impairment (ASU 2011-08), to allow entities to use a qualitative approach to test goodwill for impairment. ASU 2011-08 permits an entity to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is concluded that this is the case, it is necessary to perform the currently prescribed two-step goodwill impairment test. Otherwise, the two-step goodwill impairment test is not required. The Company has adopted ASU 2011-08 on its condensed consolidated financial statements for 2014 and 2013.

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Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2014

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 (loss) per share:

	For the Three Months Ended September 30,		For the Nine Months Ended September 30,
	2014*	2013*	2014*	2013*
Weighted average common shares outstanding, basic	33,107,610	33,057,610	33,106,511	33,048,321
Common shares upon exercise of options	1,181,478	1,464,952	1,181,478	1,464,952
Weighted average common shares outstanding, diluted	34,289,088	34,522,562	34,287,989	34,513,273

(*1) Potential common shares of 1,550,000 and 950,000 for the nine months ended September 30, 2014 and 2013, respectively, were excluded from the computation of diluted earnings as their exercise prices were greater than the average market price of the common stock for the three and nine months ended September 30, 2014 and 2013, respectively.

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Acquisition (Details Textual) (Phoenix Rising Aviation [Member], USD $)	0 Months Ended
	Aug. 15, 2013
Phoenix Rising Aviation [Member]
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	100.00%
Business Acquisitions Cost of Acquired Entity Future Cash Payment	$ 1,000,000
Payments to Acquire Businesses, Gross	$ 1,350,000

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Inventories (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Inventory [Line Items]
Total inventory	$ 271,155	$ 338,513
Parts [Member]
Inventory [Line Items]
Total inventory	202,708	204,899
Fuel [Member]
Inventory [Line Items]
Total inventory	52,080	116,938
Other Inventory [Member]
Inventory [Line Items]
Total inventory	$ 16,367	$ 16,676

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 400,900	$ (1,076,316)
Adjustments:
Depreciation and amortization	421,105	355,934
Stock based compensation	23,092	27,232
Changes in operating assets and liabilities:
Accounts receivable, trade	(465,205)	(471,709)
Accounts receivable, insurance recovery	0	147,928
Inventories	67,358	217,447
Prepaid expenses and other current assets	(410,970)	(239,515)
Deposits	1,660	0
Deferred income taxes	15,000	(420,000)
Accounts payable	715,259	(217,743)
Customer deposits	92,734	7,720
Accrued expenses	170,606	(76,775)
Impaired goodwill and trade name, discontinued operations	0	1,938,284
TOTAL ADJUSTMENTS	630,639	1,268,803
NET CASH PROVIDED BY OPERATING ACTIVITIES	1,031,539	192,487
CASH FLOWS FROM INVESTING ACTIVITIES
Payment of note receivable	61,829	80,575
Purchase of property and equipment	(159,103)	(543,918)
Purchase of assets, net of liabilities	0	(1,338,204)
Accounts receivable, insurance recovery	0	315,014
NET CASH USED IN INVESTING ACTIVITIES	(97,274)	(1,486,533)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings from notes payable	0	1,630,920
Repayment of notes payable	(785,727)	(760,973)
Proceeds from line of credit	175,000	300,000
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	(610,727)	1,169,947
NET CHANGE IN CASH	323,538	(124,099)
CASH - Beginning	146,405	250,408
CASH - Ending	469,943	126,309
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the periods for Interest	71,101	83,312
Cash paid during the periods for Income Taxes	$ 207,287	$ 182,200

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Discontinued Operations

9 Months Ended

Sep. 30, 2014

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 August 21, 2013, and further described in NOTE 7 – “Subsequent Events” in the Company’s June 30, 2013 Quarterly Report on Form 10-Q, the Company’s attempts to secure a preliminary injunction in connection with its lease at the Wilkes-Barre/Scranton International Airport were unsuccessful. As a result, effective August 31, 2013, the Company no longer served as a fixed base operator (“FBO Operator”) at that airport. The results of business activities previously conducted by the Company at the Wilkes-Barre/Scranton International Airport have been recorded in this Quarterly Report on Form 10-Q as Discontinued Operations.

Components of discontinued operations are as follows:

As of September 30, 2014 and December 31, 2013, assets principally consisting of trade receivables and equipment of $0 and $160,000, respectively, and liabilities principally consisting of accrued expenses of $0 and $28,000, respectively, were included in the consolidated balance sheets.

	For the Nine Months Ended September 30,
	2014		2013
Revenue	$	—	$	3,100,233
Cost of revenue		—		2,350,109
Gross profit		—		750,124
Operating expenses		—		863,718
Operating loss from discontinued operations		—		(113,594)
Interest expense, net		—		(4,326)
Impairment of goodwill, intangible and fixed assets		—		(2,080,755)
Other expense, net		—		(66,813)
Income tax expense		—		—
Net loss from discontinued operations		—		(2,265,488)
Basic net loss per common share	$	0.00	$	(0.07)
Weighted average number of common shares outstanding, basic		33,106,511		33,048,321

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Inventories (Details Textual) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Inventory [Line Items]
Inventory Third Party	$ 71,378	$ 11,666

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Acquisition (Details) (USD $)	9 Months Ended
	Sep. 30, 2013
Business Acquisition [Line Items]
Revenue	$ 12,802,422
Income from continuing operations	$ 1,357,279
Basic net income per common share (in dollars per share)	$ 0.04
Weighted Average Number of Common Shares Outstanding - Basic (in shares)	33,048,321