10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

(Mark One)

☒ ANNUAL REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2017

OR

☐ TRANSITION REPORT UNDER 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)

Securities registered pursuant to Section 12(b) of the Act:

None

Securities registered pursuant to Section 12(g) of the Act:

Title of each class

Common Stock, $0.001 par value

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes  ☐ No  ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes  ☐ No  ☒

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  ☒ 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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes  ☒ No  ☐

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of the Form 10-K or any amendment to this Form 10-K.

Yes  ☐ No  ☒

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,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐	Non-accelerated filer	☐	Smaller reporting company	☒
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act.☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes  ☐ No  ☒

As of June 30, 2017 (the last business day of the registrant’s most recently completed second fiscal quarter), the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold as of the close of such business day was $1,486,730.

As of April 2, 2018, the Registrant had 31,978,149 shares of its Common Stock, par value $.001 per share, issued and outstanding.

Documents incorporated by reference: None

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

FORM 10-K

INDEX

ITEM 1.	BUSINESS	1
ITEM 1A.	RISK FACTORS	4
ITEM 1B.	UNRESOLVED STAFF COMMENTS	7
ITEM 2.	PROPERTIES	7
ITEM 3.	LEGAL PROCEEDINGS	7
ITEM 4.	MINE SAFETY DISCLOSURES	7
ITEM 5.	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	8
ITEM 6.	SELECTED FINANCIAL DATA	9
ITEM 7.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION	9
ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	15
ITEM 8.	FINANCIAL STATEMENTS	16
ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES	32
ITEM 9A.	CONTROLS AND PROCEDURES	32
ITEM 9B.	OTHER INFORMATION	32
ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS, PROMOTORS AND CORPORATE GOVERNANCE	33
ITEM 11.	EXECUTIVE COMPENSATION	36
ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	37
ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	39
ITEM 14.	PRINCIPAL ACCOUNTANT FEES AND SERVICES	40
ITEM 15.	EXHIBITS, FINANCIAL STATEMENT SCHEDULES	41
	SIGNATURES	43

THIS FORM 10-K CONTAINS 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. OUR ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE SET FORTH IN SUCH FORWARD-LOOKING STATEMENTS. CERTAIN FACTORS THAT MIGHT CAUSE SUCH A DIFFERENCE ARE DISCUSSED IN ITEM 1A, “RISK FACTORS” AND ITEM 7, “MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION” OF THIS ANNUAL REPORT ON FORM 10-K. SEE ALSO “FORWARD-LOOKING STATEMENTS” WITHIN SUCH ITEM 7 OF THIS ANNUAL REPORT ON FORM 10-K.

PART I

ITEM 1. BUSINESS

General

Saker Aviation Services, Inc. (“we”, “us”, “our”) is a Nevada corporation. Our common stock, $0.001 par value per share (the “common stock”), is quoted 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”), a provider of aircraft maintenance and repair services (“MRO”), and as a consultant for a seaplane base that we do not own. FBOs provide ground-based services, such as fueling and aircraft storage for general aviation, commercial and military aircraft, and other miscellaneous services.

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

Our business activities are carried out as the operator of the Downtown Manhattan (New York) Heliport, as an FBO and MRO at the Garden City (Kansas) Regional 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. in March 2005 and of Aircraft Services, Inc. (“Aircraft Services”) in October 2016.

Our business activities at the Downtown Manhattan (New York) Heliport facility (the “Heliport”) commenced when we were awarded 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”).

We believe the general aviation market has been historically cyclical, with revenue correlated to general U.S. economic conditions. Although not truly seasonal in nature, the spring and summer months tend to generate higher levels of revenue and our operations generally follow that trend.

Suppliers and Raw Materials

Our principal materials are aviation fuel and aircraft parts. We obtain aviation fuel, component parts and other supplies from a variety of sources, generally from more than one supplier. Our suppliers and sources are both domestic and foreign, and we believe that our sources of materials are adequate to meet our needs for the foreseeable future. We do not believe the loss of any one supplier would have a material adverse effect on our business or results of operations. We generally purchase our supplies on the open market, where certain commodities have fluctuated in price significantly in recent years. We have not experienced any significant shortage of our key supplies.

Marketing and Sales

The main goal of our marketing and sales efforts is to increase traffic at our facilities, which would then drive revenue through the incremental sale of our products and services. Our primary marketing tactic in this regard is to focus advertising efforts in the environments (web, periodical and industry publications) where the pilot and aviation-user community might be introduced to our brand name and locations. We intend to continue to invest in improvements to our sales and marketing strategies to drive revenue growth.

1

Government Approvals

The aviation services that we provide are generally performed on municipal or other government owned real estate properties. Accordingly, at times we will need to obtain certain consents or approvals from governmental entities in conjunction with our operations. These consents and approvals are typically in the form of a lease agreement, as is the case at our Kansas facility, or a concession agreement, as is the case with our New York facility. There can be no assurance that we will obtain further consents or approvals on favorable terms or be able to renew existing consents or approvals on favorable terms, if at all.

Government Regulation

We are subject to a variety of governmental laws and regulations that apply to companies in the aviation industry. These include compliance with the Federal Aviation Administration rules and regulations, and local, regional and national rules and regulations as they relate to environmental matters. We believe we are in compliance with, and intend to continue to comply with, all applicable government regulations. The adoption of new regulations could result in increased costs and have an adverse impact on our results of operations. In the event we are unable to remain compliant with applicable rules and regulations, our business may be adversely affected.

Customers

For the fiscal year ended December 31, 2017, four customers represented approximately 67.6% of our revenue. The loss of any of these four customers could represent a significant decrease in revenue that may adversely affect our business and results of operations. Additionally, four accounts represented approximately 92.3% of the balance of accounts receivable at December 31, 2017. Accounts receivable are carried at their estimated collectible amounts and are periodically evaluated for collectability. We depend significantly on our business with these four customers.

Competition

The FBO segment of the aviation services industry is competitive in both pricing and service because aircraft in transit are able to choose from a number of FBO options within a 300-mile radius. The vast majority of FBO operators are independent, single location operators. We are the sole FBO at our facility in Garden City, KS. As such, we face no direct on-airport competition. However, we face competitive pressure on pricing and services from FBO facilities at other airports, depending on aircraft travel flexibility.

We plan to grow our business through both internal development of existing resources and facilities and through the potential acquisition of other related business. We anticipate that growing our business will provide us with greater buying power from suppliers and, therefore, result in lower costs. Lower costs would allow us to implement a more aggressive pricing policy against some competitors. We believe that the higher level of customer service offered in our facilities will allow us to draw additional aircraft traffic and thus compete successfully against other FBOs of all sizes. However, there can be no assurance that we will be able to compete successfully in the highly competitive aviation industry.

Costs and Effects of Complying With Environmental Laws

We are subject to a variety of federal, state and local environmental laws and regulations, including those that govern health and safety requirements, the discharge of pollutants into the air or water, the management and disposal of hazardous substances and wastes and the responsibility to investigate and clean up contaminated sites that are or were owned, leased, operated or used by us or our predecessors. Some of these laws and regulations require us to obtain permits, which contain terms and conditions that impose limitations on our ability to emit and discharge hazardous materials into the environment and may be periodically subject to modification, renewal and revocation by issuing authorities. Fines and penalties may be imposed for non-compliance with applicable environmental laws and regulations and the failure to have or to comply with the terms and conditions of required permits. We intend to comply with these laws and regulations. However, from time to time, our operations may not be in full compliance with the terms and conditions of our permits or licenses. We periodically review our procedures and policies for compliance with environmental laws and requirements. We believe that our operations are in material compliance with applicable environmental laws and requirements and that any potential non-compliance would not be expected to result in us incurring material liability or cost to achieve compliance. Although the cost of achieving and maintaining compliance with environmental laws and requirements has not been material, we can provide no assurance that such cost will not become material in the future.

2

Employees

As of December 31, 2017, we employed 34 persons, 28 of which were employed on a full-time basis, and one of which was an executive officer. All of our personnel are employed in connection with our operations in New York and Kansas.

Available Information

We are subject to the informational requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Therefore, we file periodic reports, proxy statements and other information with the SEC. Such reports may be read and copied at the SEC’s Public Reference Room at 100 F Street NE, Washington, D.C. 20549. Information regarding the operation of the Public Reference Room may be obtained by calling the SEC at (800) SEC-0330. The SEC also maintains a website (www.sec.gov) that includes our reports, proxy statements and other information. We maintain a website at www.sakeraviation.com where we make available, free of charge, documents that we file with, or furnish to, the SEC, including our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, proxy statements, registration statements and any amendments to those reports. Our SEC reports can be found under “Financial Reporting” tab on our website. The information found on our website is not part of this or any other report we file with, or furnish to, the SEC.

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ITEM 1A. RISK FACTORS

The following risk factors relate to our operations:

We will need additional financing to expand our business.

Certain potential aviation services firms which we may seek to acquire in the future may accept shares of our common stock or other securities as payment by us for the acquisition. However, we believe that most will likely prefer cash payments, whether paid at the closing or in post-closing installment payments. There can be no assurance that our operations will generate sufficient cash flow to meet these acquisition obligations. Accordingly, we anticipate the need to seek additional equity or debt financing to meet any cash requirements for acquisitions. Any such financing will be dependent on general market conditions and the stock market’s evaluation of our performance and potential. Accordingly, we can give no assurance that we will obtain such equity or debt financing and, even if we do, that the terms would be satisfactory to us.

We could be adversely affected by increases in the price, or decreases in the availability, of jet fuel.

Our operations could be significantly affected by the availability and price of jet fuel. A significant increase in the price of jet fuel would most likely have a material impact on our ability to achieve and maintain profitability unless we are able to pass on such costs to our customers. Due to the competitive nature of the industry, our ability to pass on increased fuel prices by increasing our rates is uncertain. Likewise, any potential benefit of lower fuel prices may be offset by increased competition and lower revenue, in general. While we do not currently anticipate a significant reduction in fuel availability, dependency on foreign imports of crude oil and the possibility of changes in government policy on jet fuel production, transportation and marketing make it impossible to predict the future availability of jet fuel. If there are new outbreaks of hostility or other conflicts in oil producing areas or elsewhere, there could be a reduction in the availability of jet fuel or significant increases in costs to our business, as well as to the entire aviation industry, which in turn would adversely affect our business and results of operations.

We could be adversely affected by the loss of certain key customers or the inability of such key customers to pay amounts due to us.

For the fiscal year ended December 31, 2017, four customers represented approximately 67.6% of our revenue. Additionally, these four accounts represented approximately 92.3% of the balance of accounts receivable at December 31, 2017. Accounts receivable are carried at their estimated collectible amounts and are periodically evaluated for collectability. The loss of any of our key customers, or the inability of such customers to pay amounts due to us, could result in a significant decrease in revenue that may adversely affect our business and result of operations.

The continued threat of terrorist actions may result in less demand for private aviation and, as a result, our revenue may be adversely affected and we may not be able to continue successful operations.

Terrorist actions involving public and private aircraft may have a significant adverse impact on us. As a result of these actions, individuals and corporate customers may cease using private aircraft as a means of transportation or reduce their use of such aircraft, or we could become subject to burdensome regulations that would have an adverse effect on our results of operations. In either event, we would be unable to maintain sales and may be unable to continue our operations on a successful basis.

The FBO segment of the aviation services industry in which we operate is fiercely competitive.

We compete with national, regional, and local FBO operators. Many of our competitors have been in business longer than we have and have greater financial resources available to them. Having greater financial resources will make it easier for these competitors to absorb an increase in fuel prices and other expenses. In addition, these competitors might seek acquisitions in regions and markets competitive to us, which could have an adverse effect on our business and results of operations. Accordingly, we can give no assurance that we will be able to successfully compete in our industry.

4

Our business as an FBO is subject to extensive governmental regulation.

FBOs are subject to extensive regulatory requirements that could result in significant costs. For example, the FAA, from time to time, issues directives and other regulations relating to the management, maintenance and operation of facilities. Compliance with those requirements may cause us to incur significant expenditures. The proposal and enactment of additional laws and regulations, as well as any charges that we have not complied with any such laws and regulations, could significantly increase the cost of our operations and reduce overall revenue. We cannot provide assurance that compliance with existing laws and regulations or that laws or regulations enacted in the future will not adversely affect our business and results of operations.

We must maintain and add key management and other personnel.

Our future success is heavily dependent on the performance of our managers. Our growth and future success depends, in large part, on the continued contributions of management and our ability to retain management. Our growth and future success also depends on other key individuals, as well as our ability to motivate and retain these personnel or hire other persons. Although we believe we will be able to retain and hire qualified personnel, we can give no assurance that we will be successful in retaining and recruiting such personnel in sufficient numbers to increase revenue, maintain profitability or successfully implement our growth strategy. If we lose the services of management or any of our key personnel or are not able to retain or hire qualified personnel, our business could be adversely affected.

We are subject to environmental laws that could impose significant costs on us and the failure to comply with such laws could subject us to sanctions and material fines and expenses.

         We are subject to a variety of federal, state and local environmental laws and regulations, including those governing the discharge of pollutants into the air or water, the management and disposal of hazardous substances and wastes and the responsibility to investigate and clean-up contaminated sites that are or were owned, leased, operated or used by us or our predecessors. Some of these laws and regulations require us to obtain permits, which contain terms and conditions that impose limitations on our ability to emit and discharge hazardous materials into the environment and may be periodically subject to modification, renewal and revocation by issuing authorities. Fines and penalties may be imposed for non-compliance with applicable environmental laws and regulations, the failure to have required permits or the failure to comply with the terms and conditions of such permits. We intend to comply with all laws and regulations, however, from time to time, our operations may not be in full compliance with the terms and conditions of our permits. We periodically review our procedures and policies for compliance with environmental laws and requirements. We believe that our operations are in material compliance with applicable environmental laws, requirements and permits and any lapses in compliance are not expected to result in us incurring material liability or cost to achieve compliance. However, there can be no assurance that our operations will remain in material compliance with applicable environmental laws and requirements. Historically, the costs of achieving and maintaining compliance with environmental laws, requirements and permits have not been material; however, the operation of our business entails risks in these areas and a failure by us to comply with applicable environmental laws, regulations or permits could result in civil or criminal fines, penalties, enforcement actions, third party claims for property damage and personal injury, requirements to clean up property or to pay for the costs of cleanup and/or regulatory or judicial orders enjoining or curtailing operations or requiring corrective measures. Moreover, if applicable environmental laws and regulations, or the interpretation or enforcement thereof, become more stringent in the future, we could incur capital or operating costs beyond those currently anticipated and our business and results of operations could be harmed.

The following risk factors relate to our common stock:

There is no active market for our common stock, which makes our common stock less liquid.

To date, trading of our common stock has been sporadic and nominal in volume. In addition, there are only a limited number of broker-dealers trading our common stock. As a result, there is little, if any, liquidity in our common stock. We can provide no assurance that an active trading market will ever develop.

5

Our common stock is subject to the penny stock rules, which makes our common stock less liquid.

The SEC has adopted a set of rules called the “penny stock rules” that regulate broker-dealers with respect to trading in securities with a bid price of less than $5.00. These rules do not apply to securities registered on certain national securities exchanges (including the Nasdaq Stock Market), provided that current price and volume information regarding transactions in such securities is provided by the exchange. Our stock is not listed on such an exchange and we have no expectation that our common stock will be listed on such an exchange in the future. The penny stock rules require a broker-dealer to deliver to the customer a standardized risk disclosure document prepared by the SEC that provides information about penny stocks and the nature and level of risks in the penny stock market. Additionally, the broker-dealer must provide the customer with other information. The penny stock rules also require that, prior to a transaction in a penny stock, the broker-dealer must determine in writing that the penny stock is a suitable investment for the purchaser. The broker-dealer must also receive the purchaser’s written agreement to the transaction. These disclosure requirements have the effect of reducing the level of trading activity in the secondary market for a stock such as ours that is subject to the penny stock rules.

Potential additional financings, the granting of additional stock options and anti-dilution provisions in our warrants could further dilute our existing stockholders.

As of April 2, 2018, there were 31,978,149 shares of our common stock outstanding. If all of our outstanding common stock purchase warrants and options were exercised, there would be 33,678,149 shares outstanding, an increase of approximately 5%. Any further issuances due to additional equity financings, the granting of additional options or the anti-dilution provisions in our warrants could further dilute our existing stockholders, which could cause the value of our common stock to decline.

We do not anticipate paying dividends on our common stock in the foreseeable future.

We intend to retain future earnings, if any, to fund our operations and to expand our business. Accordingly, we do not anticipate paying cash dividends on shares of our common stock in the foreseeable future and an investment in our common stock might not generate any return.

Our Board of Directors’ right to issue shares of preferred stock could adversely impact the rights of holders of our common stock.

Our Board of Directors currently has the right to authorize the issuance of up to 9,999,154 shares of one or more series of our preferred stock with such voting, dividend and other rights as our directors determine. Such action can be taken by our Board of Directors without the approval of our shareholders. Accordingly, the holders of any new series of preferred stock could be granted voting rights that reduce the voting power of the holders of our common stock. For example, the preferred holders could be granted the right to vote on a merger as a separate class even if the merger would not have an adverse effect on their rights. This right, if granted, would give such preferred holders a veto with respect to any merger proposal. Alternatively, such preferred holders could be granted a large number of votes per share while voting as a single class with the holders of our common stock, thereby diluting the voting power of the holders of our common stock. In addition, the holders of any new series of preferred stock could be given the option to redeem their shares for cash in the event of a merger. This would make acquiring us less attractive to a potential buyer. Thus, our Board of Directors could authorize the issuance of shares of the new series of preferred stock in order to defeat a proposal for the acquisition of our company that a majority of the holders of our common stock otherwise favor.

Our common stock may not continue to be traded on the OTCQB.

We cannot provide any assurance that our common stock will continue to be eligible to be quoted on the OTCQB Marketplace (“OTCQB”). Should our common stock cease to be quoted on the OTCQB and fail to qualify for listing on a stock exchange (including the Nasdaq Stock Market), our common stock would only trade in the “pink sheets” which generally provides an even less liquid market than the OTCQB. In such event, stockholders may find it more difficult to trade their shares of our common stock or to obtain accurate and current information concerning market prices for our common stock.

6

Our management team currently has influential voting power.

As of April 2, 2018, our executive officers, directors and their family members and associates, collectively, are entitled to vote 10,750,125 shares, or 33.6% of the 31,978,149 shares of our outstanding shares of common stock. Accordingly, and, because there is no cumulative voting for directors, our executive officers and directors are currently in a position to influence the election of all of our Board of Directors. The management of our company is controlled by our Board of Directors, which is currently comprised of two independent directors, a director who is a managing partner of a law firm which provides legal services to us, and two executive officer/directors.

ITEM 1B. UNRESOLVED STAFF COMMENTS

Not applicable.

ITEM 2. PROPERTIES

As of April 2, 2018, we lease office space at the following locations:

Location	Purpose		Space		Annual Rental		Expiration
2117 S. Air Service Road Garden City, Kansas		Kansas FBO location		17,640 square feet	$	26,244		December 31, 2030
2145 S. Air Service Road Garden City, Kansas		Kansas MRO location		3,782 square feet	$	6,780		December 31, 2030
600 Hayden Circle Allentown, Pennsylvania		Pennsylvania Office location		360 square feet	$	6,390		Month-to- Month

We believe that our space is adequate and suitable for our immediate needs. Additional hangar space may be required for our operations in the future. No definitive plans to lease any additional space have been developed at the time of this report. Should additional hangar space be required, there can be no assurance that such space will be available or available on commercially reasonable terms or at all.

ITEM 3. LEGAL PROCEEDINGS

From time to time, we may be a party to one or more claims or disputes which may result in litigation. However, we are currently not a party to, nor is our property subject to, any material pending legal proceedings.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

7

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market for Common Equity

Our common stock is quoted on the OTCQB under the symbol “SKAS”. The OTCQB is a regulated quotation service that displays real-time quotes, last-sale prices and volume information in over-the-counter (“OTC”) equity securities. Our common stock is only traded on a limited or sporadic basis and should not be deemed to constitute an established public trading market. OTC quotations reflect intra-dealer prices, without retail mark-up, mark-down, or commission and may not necessarily represent actual transactions.

The following table sets forth the high and low closing sale prices for the common stock as reported on the OTCQB for the past two most recent fiscal years.

	Common Stock
Quarterly Period Ended	High		Low
March 31, 2016	$	0.060	$	0.050
June 30, 2016	$	0.080	$	0.040
September 30, 2016	$	0.080	$	0.060
December 31, 2016	$	0.140	$	0.055
March 31, 2017	$	0.395	$	0.140
June 30, 2017	$	0.274	$	0.125
September 30, 2017	$	0.190	$	0.111
December 31, 2017	$	0.169	$	0.108

Holders

As of April 2, 2018, there were approximately 227 holders of record of our common stock. This number does not include beneficial owners of the common stock whose shares are held in the names of various broker-dealers, clearing agencies, banks and other fiduciaries.

Dividends

Since our inception we have never declared or paid any cash dividends on our common stock. We intend to retain future earnings to finance the growth and development of our business and future operations. Therefore, we do not anticipate paying any cash dividends on shares of our common stock in the foreseeable future.

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ITEM 6. SELECTED FINANCIAL DATA

Not applicable.

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

Forward-looking Statements

This Annual Report on Form 10-K contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” and similar references to future periods. These statements may include projections of revenue, provisions for doubtful accounts, income or loss, capital expenditures, repayment of debt, other financial items, statements regarding our plans and objectives for future operations, acquisitions, divestitures and other transactions, statements of future economic performance, statements of the assumptions underlying or relating to any of the foregoing statements and statements other than statements of historical fact.

Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by such forward-looking statements. We therefore caution you against relying on any of these forward-looking statements because they are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include our services and pricing, general economic conditions, our ability to raise additional capital, our ability to obtain the various approvals and permits for the acquisition and operation of FBOs and the other risk factors contained in Item 1A of this report.

Any forward-looking statement made by us in this report speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Overview

Our long-term strategy is to increase our sales through growth within our aviation services operations. To do so, we may expand our geographic reach and product offering through strategic acquisitions and improved market penetration within the markets we serve. We expect that any future acquisitions or product offerings would be to complement and/or augment our current aviation services operations.

If we are able to grow our business as planned, we anticipate that our larger size would provide us with greater buying power from suppliers, resulting in lower costs. We expect that lower costs would allow for a more aggressive pricing policy against some competition. More importantly, we believe that the higher level of customer service offered in our facilities will allow us to draw additional aircraft to our facilities and thus allow us to compete against other FBOs of varying sizes.

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Summary Financial Information

The summary financial data set forth below is derived from and should be read in conjunction with the consolidated financial statements, including the notes thereto, filed as part of this report.

Consolidated Statement of Operations Data:	Year Ended December 31, 2017		Year Ended December 31, 2016
(in thousands, except for share and per share data)
Revenue	$	12,016	$	14,691
Operating Income, before income tax expense	$	1,062	$	1,767
Income tax (expense)	$	584	$	887
Net Income	$	478	$	880
Net income per share – basic	$	0.01	$	0.03
Net income per share – diluted	$	0.01	$	0.03
Weighted average number of shares – basic		33,262,961		33,157,610
Weighted average number of shares – diluted		34,130,624		33,316,004

Balance Sheet Data: (in thousands)	December 31, 2017		December 31, 2016
Working capital surplus	$	3,369	$	2,812
Total assets	$	6,549	$	6,967
Total liabilities	$	1,372	$	2,133
Stockholders’ equity	$	5,177	$	4,834
Total liabilities and Stockholders’ equity	$	6,549	$	6,967

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Comparison of Results for the Years Ended December 31, 2017 and December 31, 2016.

REVENUE

Revenue decreased by 18.2 percent to $12,016,031 for the twelve months ended December 31, 2017 as compared with corresponding prior-year period revenue of $14,690,654.

For the twelve months ended December 31, 2017, revenue associated with services and supply items decreased by 16.9 percent to approximately $7,300,000 as compared to approximately $8,800,000 in the twelve months ended December 31, 2016. This decrease was related to the air tour reductions which were initiated on June 1, 2016 and reached the full 50% on January 1, 2017, as further described below in Liquidity and Capital Resources.

For the twelve months ended December 31, 2017, revenue associated with the sale of jet fuel, aviation gasoline and related items decreased by 21.1 percent to approximately $4,500,000 as compared to approximately $5,700,000 in the twelve months ended December 31, 2016. The decrease was largely attributable to the reduction in air tours leading to lesser gallons sold and was also attributable to lower fuel costs, leading to lower average fuel prices. The cost of fuel in 2017 was less on average as compared to the cost of fuel in 2016. As our fuel pricing generally follows the cost of fuel, lower fuel costs translate to lesser revenue on comparable volume.

For the twelve months ended December 31, 2017, all other revenue increased by 23.7 percent to approximately $150,000 as compared to approximately $121,000 in the twelve months ended December 31, 2016.

10

GROSS PROFIT

Total gross profit decreased 20.9 percent to $6,404,450 in the twelve months ended December 31, 2017 as compared to $8,098,737 in the twelve months ended December 31, 2016. Gross margin was 53.3 percent for the twelve months ended December 31, 2017 as compared to 55.1 percent for the same period in 2016.

OPERATING EXPENSE

Selling, General and Administrative

Total selling, general and administrative, or SG&A, expenses were $5,311,207 in the twelve months ended December 31, 2017, a decrease of approximately $993,000 or 15.7 percent, as compared to the same period in 2016.

SG&A associated with our FBO operations were approximately $4,800,000 in the twelve months ended December 31, 2017, a decrease of approximately $1,021,000, or 17.5 percent, as compared to the twelve months ended December 31, 2016. SG&A associated with our FBO operations, as a percentage of revenue, was 40.1 percent for the twelve months ended December 31, 2017, as compared with 39.7 percent in the corresponding prior year period. The decreased operating expenses were largely attributable to decreased costs related to the lower levels of activity in our Heliport operations.

Corporate SG&A was approximately $497,000 for the twelve months ended December 31, 2017, representing an increase of approximately $29,000 as compared with the corresponding prior year period. The majority of this increase was attributable to one-time expenses that are not expected to recur in future periods.

OPERATING INCOME

Operating income for the year ended December 31, 2017 was $1,093,243 as compared to $1,794,726 in the year ended December 31, 2016. The decrease on a year-over-year basis was driven by lower levels of gross profit.

Depreciation and Amortization

Depreciation and amortization was approximately $537,000 and $505,000 for the twelve months ended December 31, 2017 and 2016, respectively.

Interest Expense

Interest expense for the year ended December 31, 2017 was $21,404, as compared to $27,296 in the same period in 2016.

Impairment of Goodwill and Other Intangibles

We had $750,000 of goodwill at December 31, 2017 and 2016.

We had $0 of intangible assets as of December 31, 2017 as compared to $35,000 at December 31, 2016. The sale of a charter certificate in 2017 accounting for the change.

Income Tax

Income tax expense for the twelve months ended December 31, 2017 was $584,000, as compared to $887,000 in the same period in 2016.

Net Income Per Share

Net income for the twelve months ended December 31, 2017 was $477,628 as compared to net income of $880,430 in the twelve months ended December 31, 2016.

11

Basic and diluted net income per share was $0.01 for the twelve months ended December 31, 2017 and $0.03 per share for the twelve months ended December 31, 2016.

Liquidity and Capital Resources

As of December 31, 2017, we had cash of $1,724,504 and a working capital surplus of $3,368,610. We generated revenue of $12,016,031 and had net income of $477,628 for the twelve months ended December 31, 2017. For the twelve months ended December 31, 2017, cash flows included net cash provided by operating activities of $53,323, net cash used in investing activities of $7,158, and net cash used in financing activities of $513,718.

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

              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 provided that 30 days following the Conversion Date we are 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 (3.486% as of December 31, 2017). 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 December 31, 2017, there was $382,500 outstanding under the PNC Acquisition Line.

The PNC Working Capital was to have been dispersed for working capital and general corporate purposes. Interest on outstanding principal accrued at a rate equal to daily LIBOR plus 250 basis points. The PNC Working Capital Line expired on December 31, 2016, with $0 outstanding.

The PNC Term Loan was utilized to retire our previously outstanding miscellaneous debt of the same amount. Interest on outstanding principal accrued at a rate equal to one-month LIBOR plus 275 basis points and principal and interest payments were to be made over a thirty-four month period. At December 31, 2015, all amounts under the PNC Term loan had been repaid.

As disclosed in a Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on March 21, 2018, we announced a financing agreement with Key Bank National Association. Please see Subsequent Events in the accompanying Financial Footnotes for further information.

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. During the twelve months ended December 31, 2017 and 2016, we incurred approximately $1,800,000 and $2,700,000, respectively, in concession fees which are recorded in the cost of revenue.

As disclosed in a Current Report on Form 8-K filed with the SEC on February 5, 2016, we and the New York City Economic Development Corporation (the “NYCEDC”) announced new measures to reduce helicopter noise and impacts across New York City (the “Air Tour Agreement”).

Under the Air Tour Agreement, filed as an exhibit to our Annual Report on Form 10-K for the year ended December 31, 2015, we may not allow our tenant operators to conduct tourist flights from the Downtown Manhattan Heliport on Sundays beginning April 1, 2016. We were also required to ensure the our tenant operators reduce the total allowable number of tourist flights from 2015 levels by 20 percent beginning June 1, 2016, by 40 percent beginning October 1, 2016 and by 50 percent beginning January 1, 2017. Additionally, beginning on June 1, 2016, we were required to provide monthly written reports to the NYCEDC and the New York City Council detailing the number of tourist flights conducted out of the Downtown Manhattan Heliport compared to 2015 levels, as well as information on any tour flight that flies over land and/or strays from agreed upon routes.

12

The Air Tour Agreement also extended our Concession Agreement with the City of New York for 30 months, resulting in a new expiration date of April 30, 2021. The City of New York has two one year options to further extend the Concession Agreement. The Agreement also provides that the minimum annual guarantee payments we are required to pay to the City of New York under the Concession Agreement be reduced by 50%, effective January 1, 2017.

             These reductions have negatively impacted our business and financial results as well as those of our management company at the Heliport, Empire Aviation which, as previously disclosed, is owned by the children of Alvin Trenk, our Chief Executive Officer and a member of our Board of Directors.  We incurred management fees with Empire Aviation of approximately $2,500,000 and $3,500,000 during the twelve months ended December 31, 2017 and 2016, respectively, which is recorded in administrative expenses.  We and Empire Aviation have also contributed to the Helicopter Tourism and Jobs Council (“HTJC”), an association that lobbies on behalf of the helicopter air tour industry, and which had engaged in discussions with the Mayor’s office.  Mr. Trenk is also an active participant with HJTC, which is managed by his grandson. 

             On February 6, 2018, we were issued a Note by one of our customers at the Heliport. The Note schedules approximately $731,000 otherwise due in receivables from the customer, has a maturity date of October 31, 2018, and carries a 7.5 percent rate of interest. The amount due under the Note remains in accounts receivable.

On October 3, 2016, we purchased all of the capital stock of Aircraft Services, Inc. (“Aircraft Services”), an aircraft maintenance services firm located in Garden City, Kansas. Under the terms of the transaction, we made a $150,000 cash payment at closing, a $75,000 installment payment in 2017, and will make an additional installment payment of $75,000 in 2018. The closing cash payment and 2017 installment payment were both funded with internal resources. Our purchase of Aircraft Services’ capital stock is discussed in greater detail in a Current Report on Form 8-K filed with the SEC on October 7, 2016 and filed as an Exhibit to our Quarterly Report on Form 10-Q for the period ended September 30, 2016.

          As disclosed in a Current Report on Form 8-K filed with the SEC on July 6, 2015, we entered into a stock purchase agreement, dated June 30, 2015, by and between us and Warren A. Peck, pursuant to which Mr. Peck purchased all of the capital stock of our wholly-owned subsidiary. The details of the agreement are described in such Current Report as well as in our Annual Report on Form 10-K, which was filed with the SEC on April 11, 2016. In September 2017, we received $100,000 due under this agreement and a final payment of $100,000 is expected to be made in September 2018.

Our anticipated capital expenditures in 2018 are approximately $50,000 - $100,000.

During the twelve months ended December 31, 2017, we had a net decrease in cash of $467,553. Our sources and uses of funds during this period were as follows:

Cash from Operating Activities

For the year ended December 31, 2017, net cash provided by operating activities was $53,323. This amount included an increase in operating cash related to net income of $477,628 and additions for the following items: (i) depreciation, $536,598; (ii) loss of sale of charter certificate, $10,000; (iii) stock-based compensation expense, $33,997; (iv) deposits, $50,534; and (v) customer deposits, $271. The increase in cash provided by operating activities in 2017 was offset by the following items: (i) accounts receivable, trade, $364,257; (ii) inventories, $50,024; (iii) prepaid expenses and other current assets, $94,105; (iv) deferred income taxes, $131,000; (v) accounts payable, $347,217; and (vi) accrued expenses, $69,102. For the year ended December 31, 2016, net cash provided by operating activities was $2,244,551. This amount included an increase in operating cash related to net income of $880,430 and additions for the following items: (i) depreciation, $505,390; (ii) stock-based compensation expense, $33,997; (iii) accounts receivable, trade, $1,046,548; (iv) inventories, $26,405; (v) deposits, $53,046; (vi) accounts payable, $159,495; and (vii) customer deposits, $315. The increase in cash provided by operating activities in 2016 was offset by the following items: (i) prepaid expenses and other current assets, $83,101; (ii) deferred income taxes, $150,000; and (iii) accrued expenses, $227,974.

13

Cash from Investing Activities

For the year ended December 31, 2017, net cash used in investing activities was $7,158. This amount included purchase of property and equipment of $132,158; offset by payment of notes receivable of $100,000 and proceeds of $25,000 from the sale of a charter certificate. For the year ended December 31, 2016, net cash used in investing activities was $194,781. This amount included the purchase of ASI assets for $150,000 and the purchase of property and equipment of $74,781; offset by payment of notes receivable of $30,000.

Cash from Financing Activities

For the year ended December 31, 2017, net cash used in financing activities was $513,718 of which $345,000 was attributable to the repayment of notes payable and $168,718 to the repurchase and cancellation of common stock. For the year ended December 31, 2016, net cash used in financing activities was $272,374 attributable to the repayment of notes payable.

Off-Balance Sheet Arrangements

We have not entered into any transactions with unconsolidated entities in which we have financial guarantees, subordinated retained interests, derivative instruments or other contingent arrangements that expose us to material continuing risks, contingent liabilities or any other obligations under a variable interest in an unconsolidated entity that provides us with financing, liquidity, market risk or credit risk support.

Critical Accounting Estimates

Discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States. The preparation of these consolidated financial statements requires us to make estimates and judgments that affect the amounts reported in the consolidated financial statements and the accompanying notes. We evaluate our estimates on an ongoing basis, including those estimates related to product returns, product and content development expenses, bad debts, inventories, intangible assets, income taxes, contingencies and litigation. We base our estimates on experience and on various assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

The critical accounting policies which we believe affect our more significant judgments and estimates used in the preparation of our consolidated financial statements are provided as follows:

Accounts Receivable, Trade

The Company extends credit to large and mid-size companies for products and services. The Company has concentrations of credit risk in that 92.3% of the balance of its accounts receivable at December 31, 2017 is made up of only four customers. At December 31, 2017, accounts receivable from the Company’s four largest accounts amounted to approximately $804,263 (43.7%), $515,962 (28.1%), $253,740 (13.8%), and $122,449 (6.7%), respectively. In addition, these four customers represented approximately 69.3% of our revenue in 2017. At December 31, 2016, accounts receivable from the Company’s four largest accounts amounted to approximately $554,436 (37.6%), $426,898 (29.0%), $196,993 (13.4%), and $136,470 (9.3 %), respectively. In addition, four customers represented approximately $11,033,000 (75.1%) of revenue in 2016. The Company has in place a security deposit in connection with each of these receivables. Accounts receivable are carried at their estimated collectible amounts. Accounts receivable are periodically evaluated for collectability and the allowance for doubtful accounts is adjusted accordingly. We determine collectability based on our management experience and knowledge of the customers.

14

Goodwill and Intangible Assets

             Goodwill and intangibles that are deemed to have indefinite lives are not amortized but, instead, are to be reviewed at each reporting period for impairment. We assessed potential impairment of goodwill using qualitative factors by considering various factors including macroeconomic conditions, industry and market conditions, cost factors, a sustained share price or market capitalization decrease and any reporting unit specific events. We performed an analysis of our goodwill and intangible assets at December 31, 2017 and 2016. In 2016 we recorded additional goodwill relating to our Garden City operation’s acquisition of Aircraft Services.

Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between their financial statement carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Deferred tax assets are subject to a valuation allowance because it is more likely than not that certain of the deferred tax assets will not be realized in future periods. We file income tax returns in the United States (federal) and in various state and local jurisdictions. In most instances, we are no longer subject to federal, state and local income tax examinations by tax authorities for years prior to 2014.

Stock Based Compensation

Stock-based compensation expense for all share-based payment awards are based on the estimated grant-date fair value. We recognize these compensation costs over the requisite service period of the award, which is generally the option vesting term.

Option valuation models require the input of highly subjective assumptions, including the expected life of the option. Because our employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management's opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options.

Recent Accounting Pronouncements

             In May 2014, the Financial Accounting Standards Board (the” FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which provides guidance for revenue recognition. ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets and supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition,” and most industry-specific guidance. ASU 2014-09 also supersedes some cost guidance included in Subtopic 605-35, “Revenue Recognition-Construction-Type and Production-Type Contracts.” The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the current guidance. These judgments and estimates include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued ASU 2015-14 “Revenue from Contracts with Customers” (“ASU 2015-14”), which delays the effective date of ASU 2014-09 by one year. ASU 2014-09, as amended by ASU 2015-14, is effective for us beginning January 1, 2018, and, at that time, we may adopt the new standard under the full retrospective approach or the modified retrospective approach. We are currently evaluating the method of adoption and the impact the adoption of ASU 2014-09 will have on our consolidated financial statements and disclosures.

In February 2016, the FASB issued ASU No. 2016-02, “Leases” (“ASU 2016-02”), which requires an entity to recognize assets and liabilities on the balance sheet for the rights and obligations created by leased assets and provide additional disclosures. ASU 2016-02 is effective for us beginning January 1, 2019, and, at that time, we will adopt the new standard using a modified retrospective approach. We are currently evaluating the impact that the adoption of ASU 2016-02 may have on our consolidated financial statements and disclosures.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

15

ITEM 8. FINANCIAL STATEMENTS

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES
Table of Contents to Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm	17
Consolidated Financial Statements
Consolidated Balance Sheets as of December 31, 2017 and 2016	18
Consolidated Statements of Operations For the Years Ended December 31, 2017 and 2016	19
Consolidated Statements of Stockholders’ Equity For the Years Ended December 31, 2017 and 2016	20
Consolidated Statements of Cash Flows For the Years Ended December 31, 2017 and 2016	21
Notes to Consolidated Financial Statements	22

16

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Audit Committee of the Board of Directors and Stockholders of

Saker Aviation Services, Inc.

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Saker Aviation Services, Inc. and Subsidiaries (the "Company") as of December 31, 2017 and 2016, the related consolidated statements of operations, stockholders’ equity and cash flows, for the years then ended, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2017 and 2016, and the results of their operations and their cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Kronick Kalada Berdy & Co. P.C.

We have served as the Company's auditor since 2009.

Kingston, Pennsylvania

April 2, 2018

17

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	December 31, 2017			December 31, 2016
ASSETS
CURRENT ASSETS
Cash	$	1,724,504		$	2,192,057
Accounts receivable		1,838,664			1,474,407
Inventories		163,129			113,105
Notes receivable – current portion		370,000			270,000
Prepaid expenses and other current assets		531,691			437,586
Total current assets		4,627,988			4,487,155
PROPERTY AND EQUIPMENT, net of accumulated depreciation and amortization of $3,158,664 and $2,622,066 respectively		669,957			1,074,397
OTHER ASSETS
Deposits		46,717			97,251
Note receivable, less current portion		--			200,000
Intangible assets		--			35,000
Goodwill		750,000			750,000
Deferred income taxes		454,000			323,000
Total other assets		1,250,717			1,405,251
TOTAL ASSETS	$	6,548,662		$	6,966,803
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$	495,194		$	842,411
Customer deposits		126,843			126,572
Accrued expenses		292,341			361,443
Notes payable – current portion		345,000			345,000
Total current liabilities		1,259,378			1,675,426
LONG-TERM LIABILITIES
Notes payable - less current portion		112,500			457,500
Total liabilities		1,371,878			2,132,926
STOCKHOLDERS’ EQUITY
Preferred stock - $.001 par value; authorized 9,999,154; none issued and outstanding
Common stock - $.001 par value; authorized 100,000,000; 32,117,554 and 33,157,610 shares issued and outstanding as of December 31,2017 and 2016, respectively		32,117			33,157
Additional paid-in capital		19,896,744			20,030,425
Accumulated deficit		(14,752,077	)		(15,229,705	)
TOTAL STOCKHOLDERS’ EQUITY		5,176,784			4,833,877
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	6,548,662		$	6,966,803

See accompanying notes to consolidated financial statements.

18

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

	For the Years Ended December 31,
	2017			2016
REVENUE	$	12,016,031		$	14,690,654
COST OF REVENUE		5,611,581			6,591,917
GROSS PROFIT		6,404,450			8,098,737
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		5,311,207			6,304,011
OPERATING INCOME		1,093,243			1,794,726
OTHER EXPENSE:
OTHER EXPENSE		(10,211	)		---
INTEREST EXPENSE		(21,404	)		(27,296	)
TOTAL OTHER EXPENSE		(31,615	)		(27,296	)
INCOME FROM OPERATIONS, before income taxes		1,061,628			1,767,430
INCOME TAX EXPENSE (BENEFIT)
CURRENT		715,000			1,037,000
DEFERRED		(131,000	)		(150,000	)
INCOME TAX EXPENSE		584,000			887,000
NET INCOME		477,628			880,430
Basic Net Income Per Common Share	$	0.01		$	0.03
Diluted Net Income Per Common Share	$	0.01		$	0.03
Weighted Average Number of Common Shares – Basic		33,262,961			33,157,610
Weighted Average Number of Common Shares – Diluted		34,130,624			33,316,004

See accompanying notes to consolidated financial statements.

19

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

For the Years Ended December 31, 2017 and 2016

							Additional						Total
	Common Stock						Paid-in			Accumulated			Stockholders’
	Shares			Amount			Capital			Deficit			Equity
BALANCE – January 1, 2016		33,157,610		$	33,157		$	19,996,428		$	(16,110,135	)	$	3,919,450
Amortization of stock based compensation								33,997						33,997
Net income											880,430			880,430
BALANCE – December 31, 2016		33,157,610			33,157			20,030,425			(15,229,705	)		4,833,877
Amortization of stock based compensation								33,997						33,997
Issuance of Common Stock		493,729			494			(494	)					0
Repurchase and cancellation of Common Stock		(1,533,785	)		(1,534	)		(167,184	)					(168,718	)
Net income											477,628			477,628
BALANCE – December 31, 2017		32,117,554		$	32,117		$	19,896,744		$	(14,752,077	)	$	5,176,784

See accompanying notes to consolidated financial statements.

20

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

	For the Years Ended December 31,
	2017			2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	477,628		$	880,430
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		536,598			505,390
Loss on sale of charter certificate		10,000			---
Stock based compensation		33,997			33,997
Changes in operating assets and liabilities:
Accounts receivable, trade		(364,257	)		1,046,548
Inventories		(50,024	)		26,405
Prepaid expenses and other current assets		(94,105	)		(83,101	)
Deposits		50,534			53,046
Deferred income taxes		(131,000	)		(150,000	)
Accounts payable		(347,217	)		159,495
Customer deposits		271			315
Accrued expenses		(69,102	)		(227,974	)
TOTAL ADJUSTMENTS		(424,305	)		1,364,121
NET CASH PROVIDED BY OPERATING ACTIVITIES		53,323			2,244,551
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of ASI assets		---			(150,000	)
Payment of notes receivable		100,000			30,000
Proceeds from sale of charter certificate		25,000			---
Purchase of property and equipment		(132,158	)		(74,781	)
NET CASH USED IN INVESTING ACTIVITIES		(7,158	)		(194,781	)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of notes payable		(345,000	)		(272,374	)
Repurchase and cancellation of common stock		(168,718	)		---
NET CASH USED IN FINANCING ACTIVITIES		(513,718	)		(272,374	)
NET CHANGE IN CASH		(467,553	)		1,777,396
CASH – Beginning		2,192,057			414,661
CASH – Ending	$	1,724,504		$	2,192,057
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the periods for:
Interest	$	21,404		$	27,296
Income taxes	$	730,828		$	1,255,685
Non-cash investing activities:
Purchase of assets through issuance of notes payable	$	---		$	150,000

See accompanying notes to consolidated financial statements.

21

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

Notes To Consolidated Financial Statements

NOTE 1 - Nature of Operations

Saker Aviation Services, Inc. (“Saker”), through its subsidiaries (collectively the “Company”), operates in the aviation services segment of the general aviation industry, in which it serves as the operator of a heliport and a fixed base operation (“FBO”), as a provider of aircraft maintenance, repair and overhaul (“MRO”), and as a consultant for a non-owned seaplane base. FBOs provide ground-based services, such as fueling and aircraft storage for general aviation, commercial and military aircraft, and other miscellaneous services.

FirstFlight Heliports, LLC d/b/a Saker Aviation Services (“FFH”), a wholly-owned subsidiary, operates the Downtown Manhattan Heliport via a concession agreement with the City of New York. FBO Air Garden City, Inc. d/b/a Saker Aviation Services (“FBOGC”), a wholly-owned subsidiary provides FBO and MRO services in Garden City, Kansas.

NOTE 2 – Management’s Liquidity Plans

As of December 31, 2017, the Company had cash of $1,724,504 and a working capital surplus of $3,368,610. The Company generated revenue of $12,016,031 and had net income of $477,628 for the twelve months ended December 31, 2017.

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

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 provided that 30 days following the Conversion Date, 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 (3.486% as of December 31, 2017). 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 December 31, 2017, there was $382,500 outstanding under the PNC Acquisition Line.

The PNC Working Capital was to have been dispersed for working capital and general corporate purposes. Interest on outstanding principal accrued at a rate equal to daily LIBOR plus 250 basis points. The PNC Working Capital Line expired on December 31, 2015, with $0 outstanding.

The PNC Term Loan was utilized to retire the Company’s previously outstanding miscellaneous debt of the same amount. Interest on outstanding principal accrued at a rate equal to one-month LIBOR plus 275 basis points and principal and interest payments were to be made over a thirty-four month period. At December 31, 2015, all amounts under the PNC Term loan had been repaid.

As disclosed in a Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on March 21, 2018, the Company announced a financing agreement with Key Bank National Association. Please see Note 15 Subsequent Events for further information.

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 $5,000,000 in program year gross receipts and 25% of gross receipts in excess of $5 million, or minimum annual guaranteed payments. During the twelve months ended December 31, 2017 and 2016, the Company incurred approximately $1,800,000 and $2,700,000, respectively, in concession fees which are recorded in the cost of revenue.

As disclosed in a Current Report on Form 8-K filed with the SEC on February 5, 2016, the Company and the New York City Economic Development Corporation (the “NYCEDC”) announced new measures to reduce helicopter noise and impacts across New York City (the “Air Tour Agreement”).

Under the Air Tour Agreement, filed as an exhibit to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, the Company may not allow its tenant operators to conduct tourist flights from the Downtown Manhattan Heliport on Sundays beginning April 1, 2016. The Company was also required to ensure the Company’s tenant operators reduce the total allowable number of tourist flights from 2015 levels by 20 percent beginning June 1, 2016, by 40 percent beginning October 1, 2016 and by 50 percent beginning January 1, 2017. Additionally, beginning on June 1, 2016, the Company was required to provide monthly written reports to the NYCEDC and the New York City Council detailing the number of tourist flights conducted out of the Downtown Manhattan Heliport compared to 2015 levels, as well as information on any tour flight that flies over land and/or strays from agreed upon routes.

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SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

Notes To Consolidated Financial Statements

The Air Tour Agreement also extended the Company’s Concession Agreement with the City of New York for 30 months, resulting in a new expiration date of April 30, 2021. The City of New York has two one year options to further extend the Concession Agreement. The Agreement also provides that the minimum annual guarantee payments the Company is required to pay to the City of New York under the Concession Agreement be reduced by 50%, effective January 1, 2017.

These reductions have negatively impacted the Company’s business and financial results as well as those of the Company’s management company at the Heliport, Empire Aviation which, as previously disclosed, is owned by the children of Alvin Trenk, the Company’s Chief Executive Officer and a member of the Company’s Board of Directors.  The Company incurred management fees with Empire Aviation of approximately $2,500,000 and $3,500,000 during the twelve months ended December 31, 2017 and 2016, respectively, which is recorded in administrative expenses.  The Company and Empire Aviation have also contributed to the Helicopter Tourism and Jobs Council (“HTJC”), an association that lobbies on behalf of the helicopter air tour industry, and which had engaged in discussions with the Mayor’s office.  Mr. Trenk is also an active participant with HJTC, which is managed by his grandson. 

On February 6, 2018, the Company was issued a Note by one of its customers at the Heliport. The Note schedules approximately $731,000 otherwise due in receivables from the customer, has a maturity date of October 31, 2018, and carries a 7.5 percent rate of interest. The amount due under the Note remains in accounts receivable.

On October 3, 2016, the Company purchased all of the capital stock of Aircraft Services, Inc. (“Aircraft Services”), an aircraft maintenance services firm located in Garden City, Kansas. Under the terms of the transaction, the Company made a $150,000 cash payment at closing, a $75,000 installment payment in 2017, and will make an additional installment payment of $75,000 in 2018. The closing cash payment and 2017 installment payment were both funded with internal resources. The Company’s purchase of Aircraft Services’ capital stock is discussed in greater detail in a Current Report on Form 8-K filed with the SEC on October 7, 2016 and filed as an Exhibit to the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2016.

As disclosed in a Current Report on Form 8-K filed with the SEC on July 6, 2015, the Company entered into a stock purchase agreement, dated June 30, 2015, by and between the Company and Warren A. Peck, pursuant to which Mr. Peck purchased all of the capital stock of the Company’s wholly-owned subsidiary. The details of the agreement are described in such Current Report as well as in the Company’s Annual Report on Form 10-K, which was filed with the SEC on April 11, 2016. In September 2017, the Company received $100,000 due under this agreement and a final payment of $100,000 is expected to be made in September 2018.

NOTE 3 - Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, FirstFlight Heliports, LLC (“FFH”), and its FBO and MRO at Garden City (Kansas) Regional Airport (“FBOGC”). All significant inter-company accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s significant estimates include depreciation, amortization, impairment of goodwill and intangibles, stock-based compensation, allowance for doubtful accounts and deferred tax assets.

Cash

The Company maintains its cash with various financial institutions. As part of its cash management process, the Company periodically reviews the relative credit standing of these financial institutions.

Accounts Receivable, Trade and Revenue Concentration

The Company extends credit to large and mid-size companies for products and services. The Company has concentrations of credit risk in that 92.3% of the balance of its accounts receivable at December 31, 2017 is made up of only four customers. At December 31, 2017, accounts receivable from the Company’s four largest accounts amounted to approximately $804,263 (43.7%), $515,962 (28.1%), $253,740 (13.8%), and $122,449 (6.7%), respectively. In addition, these four customers represented approximately 67.6% of our revenue in 2017. At December 31, 2016, accounts receivable from the Company’s four largest accounts amounted to approximately $554,436 (37.6%), $426,898 (29.0%), $196,993 (13.4%), and $136,470 (9.3 %), respectively. In addition, four customers represented approximately $11,033,000 (75.1%) of revenue in 2016. The Company has in place a security deposit in connection with each of these receivables. Accounts receivable are carried at their estimated collectible amounts. Accounts receivable are periodically evaluated for collectability and the allowance for doubtful accounts is adjusted accordingly. We determine collectability based on our management experience and knowledge of the customers.

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SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

Notes To Consolidated Financial Statements

Inventories

Inventories consist primarily of maintenance parts and aviation fuel and are stated at the lower of cost or net realizable value determined by the first-in, first out method.

In 2017, the Company adopted ASU 2015-11simplifying the measurement of inventory and it did not have a material impact on the Company’s financial results.

Property and Equipment

Property and equipment is stated at cost. Depreciation is provided primarily using the straight-line method over the estimated useful lives as set forth in footnote 5. Amortization of leasehold improvements is provided using the straight-line method over the shorter of their estimated useful life or lease term, including renewal option periods expected to be exercised. Maintenance and repairs are charged to expense as incurred; costs of major additions and betterments are capitalized. When property and equipment is sold or otherwise disposed of, the cost and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is reflected in income.

Goodwill and Intangible Assets

Goodwill and intangibles that are deemed to have indefinite lives are not amortized but, instead, are to be reviewed at each reporting period for impairment. The Company assessed potential impairment of goodwill using qualitative factors by considering various factors including macroeconomic conditions, industry and market conditions, cost factors, a sustained share price or market capitalization decrease and any reporting unit specific events. The Company performed an analysis of its goodwill and intangible assets at December 31, 2017 and 2016. The Company recorded additional goodwill in 2016 relating to its acquisition of Aircraft Services, Inc.

Revenue Recognition

Revenue for the sales of products is recognized at the time products are delivered to customers. Revenue for services is recognized at the time the services are performed and provided to customers.

Customer Deposits

Customer deposits consist of amounts that customers are required to remit in advance to the Company in order to secure payment for future purchases and services.

Advertising

The Company expenses all advertising costs as incurred. Advertising expense for the years ended December 31, 2017 and 2016 was approximately $36,370 and $35,860, respectively.

Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between their financial statement carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income or loss in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Deferred tax assets are subject to a valuation allowance because it is more likely than not that certain of the deferred tax assets will not be realized in future periods. The Company files income tax returns in the United States (federal) and in various state and local jurisdictions. In most instances, the Company is no longer subject to federal, state and local income tax examinations by tax authorities for years prior to 2014.

Fair Value of Financial Instruments

The reported amounts of the Company’s financial instruments, including accounts receivable, accounts payable and accrued liabilities, approximate their fair value due to their short maturities. The carrying amounts of debt approximate fair value because the debt agreements provide for interest rates that approximate market. The carrying value of the note receivable approximated fair value because it was discounted at a current market rate.

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SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

Notes To Consolidated Financial Statements

Net Income Per Common Share

Basic net income per share applicable to common stockholders is computed based on the weighted average number of shares of the Company’s common stock outstanding during the periods presented. Diluted net income per share reflects the potential dilution that could occur if securities or other instruments to issue common stock were exercised or converted into common stock. Potentially dilutive securities, consisting of options and warrants, are excluded from the calculation of the diluted income per share when their exercise prices are greater than the average market price of the common stock during the period or when their inclusion would be antidilutive. 

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

	For the Year Ended December 31,
	2017(1)		2016(1)
Weighted average common shares outstanding, basic		33,262,961		33,157,610
Common shares upon exercise of options		867,663		158,394
Weighted average common shares outstanding, diluted		34,130,624		33,316,004

(1) Common shares of 832,337 and 2,041,606 underlying outstanding stock options for the years ended December 31, 2017 and 2016, respectively, were excluded from the computation of diluted earnings per share as their inclusion would be antidilutive.

Stock-Based Compensation

Stock-based compensation expense for all share-based payment awards are based on the estimated 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 years ended December 31, 2017 and 2016, the Company incurred stock based compensation of $33,997. Such amounts have been recorded as part of the Company’s selling, general and administrative expenses in the accompanying consolidated statements of operations. As of December 31, 2017, the unamortized fair value of the options totaled $22,500 and the weighted average remaining amortization period of the options approximated five years.

Option valuation models require the input of highly subjective assumptions, including the expected life of the option. Because the Company's employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management's opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options.

The fair value of each share-based payment award granted during the years ended December 31, 2017 and 2016 were estimated using the Black-Scholes option pricing model with the following weighted average fair values:

	For the Year Ended December 31,
	2017		2016
Dividend yield		0%		0%
Expected volatility		718%		705%
Risk-free interest rate		2.1%		1.9%
Expected lives (years)		5.0		5.0

The weighted average fair value of the options on the date of grant, using the fair value based methodology during the years ended December 31, 2017 and 2016, was $0.108 and $0.064, respectively.

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SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

Notes To Consolidated Financial Statements

Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (the” FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which provides guidance for revenue recognition. ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets and supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition,” and most industry-specific guidance. ASU 2014-09 also supersedes some cost guidance included in Subtopic 605-35, “Revenue Recognition-Construction-Type and Production-Type Contracts.” The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the current guidance. These judgments and estimates include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued ASU 2015-14 “Revenue from Contracts with Customers” (“ASU 2015-14”), which delays the effective date of ASU 2014-09 by one year. ASU 2014-09, as amended by ASU 2015-14, is effective for us beginning January 1, 2018, and, at that time, we may adopt the new standard under the full retrospective approach or the modified retrospective approach. We are currently evaluating the method of adoption and the impact the adoption of ASU 2014-09 will have on our consolidated financial statements and disclosures.

In February 2016, the FASB issued ASU No. 2016-02, “Leases” (“ASU 2016-02”), which requires an entity to recognize assets and liabilities on the balance sheet for the rights and obligations created by leased assets and provide additional disclosures. ASU 2016-02 is effective for the Company beginning January 1, 2019, and, at that time, the Company will adopt the new standard using a modified retrospective approach. The Company is currently evaluating the impact that the adoption of ASU 2016-02 may have on its consolidated financial statements and disclosures.

 NOTE 4 – Inventories

Inventory consists primarily of aviation fuel, which the Company dispenses to its customers, and parts inventory as a result of the acquisition of Aircraft Services. The Company also maintains fuel inventories for commercial airlines, to which it charges into-plane fees when servicing commercial aircraft.

Inventories consist of the following:

	December 31,
	2017		2016
Parts inventory	$	82,505	$	71,906
Fuel inventory		69,822		20,821
Other inventory		10,802		20,378
Total inventory	$	163,129	$	113,105

Included in fuel inventory are amounts held for third parties of $31,147 and $36,692 as of December 31, 2017 and 2016, respectively, with an offsetting liability included as part of accrued expenses.

NOTE 5 – Property and Equipment

Property and equipment consist of the following:

	December 31,						Estimated
	2017			2016			Useful Life (years)
Aircraft	$	56,000		$	56,000		7	–	12
Vehicles		309,574			274,384		5	–	10
Office furniture and equipment		387,728			380,634		3	–	7
Tools and shop equipment		78,398			69,640		3	–	10
Leasehold improvements		2,796,921			2,715,805		10	–	20
Building/fuel farm		200,000			200,000		7	–	17
Total		3,828,621			3,696,463
Less: accumulated depreciation and amortization		(3,158,664	)		(2,622,066	)
Property and equipment, net	$	669,957		$	1,074,397

Depreciation and amortization expense for the years ended December 31, 2017 and 2016 was approximately $537,000 and $505,000, respectively.

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SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

Notes To Consolidated Financial Statements

NOTE 6 – Goodwill and Intangible Assets

The Company had $750,000 of goodwill at December 31, 2017 and 2016.

The Company had $0 and $35,000 of intangible assets at December 31, 2017 and December 31, 2016, respectively.

NOTE 7 – Notes Payable

Notes payable consist of:

	December 31,
	2017			2016
PNC Bank Acquisition Line of Credit converted to a Promissory Note on May 17, 2014 – secured by assets of acquisition. One month LIBOR plus 275 bps, matures May 17, 2019.	$	382,500		$	652,500
Notes payable issued in 2016 in connection with purchase of Aircraft Services, Inc. Note to be paid in two equal installments over two years.		75,000			150,000
Subtotal		457,500			802,500
Less: current portion		(345,000	)		(345,000	)
Total – long term	$	112,500		$	457,500

Aggregate annual maturities of debt are as follows:

For the years ended December 31,	Total
2018	$	345,000
2019		112,500
TOTAL	$	457,500

NOTE 8 – Income Taxes

The Company’s deferred tax assets consisted of the following:

	December 31,
	2017			2016
Deferred tax assets:
Stock based compensation	$	50,000		$	53,000
Goodwill and intangibles		39,000			43,000
Property and equipment		415,000			277,000
Total deferred tax assets		504,000			373,000
Valuation Allowance		(50,000	)		(50,000	)
Deferred tax asset – net of valuation allowance	$	454,000		$	323,000
Change in valuation allowance	$	---		$	---

The provision for income taxes using the statutory federal tax rate as compared to the Company's effective tax rate is summarized as follows:

	December 31,
	2017			2016
Tax expense at statutory rate		30.8	%		34.0	%
State and local income taxes, net of federal		24.2	%		16.2	%
Effective income tax expense rate		55.0	%		50.2	%

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SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

Notes To Consolidated Financial Statements

On December 22, 2017, the 2017 Tax Cut and Jobs Act (the “Tax Act”) was enacted into law and the new legislation contains several key tax provisions, including a reduction of the corporate income tax rate to 21% effective January 1, 2018, among others. We are required to recognize the effect of the tax law changes in the period of enactment, such as determining the estimated transition tax, re-measuring our U.S. deferred tax assets and liabilities at a 21% rate as well as reassessing the net realizability of our deferred tax assets and liabilities. The provisional amount related to the re-measurement of our deferred tax balance resulted in an increase in tax expense of approximately $42,000.

In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118) which allows companies to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. Since the Tax Act was passed late in the fourth quarter of 2017, and ongoing guidance and accounting interpretation are expected over the next 12 months, we consider the accounting of the transition tax and deferred tax re-measurements to be incomplete.  Additional work will be necessary for a more detailed analysis of our deferred tax assets and liabilities and our historical foreign earnings as well as potential correlative adjustments. We expect to complete our analysis within the measurement period in accordance with SAB 118.  We do not expect any material subsequent adjustment to these amounts.   Adjustment if any will have no impact to the income statement due to the Company’s loss position and valuation allowance.

NOTE 9 – Stockholders’ Equity

Stock Options

On December 12, 2006, at the Company’s Annual Meeting, the stockholders of the Company approved the Stock Option Plan of 2005 (the “Plan”). The Plan is administered by the Company’s Compensation Committee and provides for 7,500,000 shares of common stock to be reserved for issuance under the Plan. Directors, officers, employees, and consultants of the Company are eligible to participate in the Plan. The Plan provides for the awards of incentive and non-statutory stock options. The Compensation Committee determined the vesting schedule to be up to five years at the time of grant of any options under the Plan, and unexercised options will expire in up to ten years. The exercise price is to be equal to at least 100% of the fair market value of a share of the common stock, as determined by the Compensation Committee, on the grant date. As of December 31, 2017 and 2016, there were 5,300,000 shares available for grant as options under the Plan.

Details of all options outstanding under the Plan are presented in the table below:

	Number of Options			Weighted Average Exercise Price
Balance, January 1, 2016		2,200,000		$	0.074
Granted		400,000			0.075
Expired		(400,000	)		0.078
Balance, December 31, 2016		2,200,000		$	0.073
Granted		400,000			0.108
Exercised		(900,000	)		0.064
Balance, December 31, 2017		1,700,000			0.086

On January 30, 2018, the Company repurchased 139,405 shares of the Company’s common stock.

On April 18, 2017, an option of 300,000 shares was exercised.

On November 21, 2017, four sets of options of 100,000 shares were exercised.

On November 30, 2017, two sets of options of 100,000 shares were exercised.

On December 1, 2017, the Company granted a stock option under the Plan to each of the three non-employee directors plus the Chief Executive Officer, who otherwise accepts no compensation, to purchase 100,000 shares of common stock at $0.108 per share, the closing price of the Company’s common stock on December 1, 2017. Each option vests on December 1, 2018 and expires on December 1, 2022. These options are collectively valued at $43,200 and are being amortized over the vesting period.

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SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

Notes To Consolidated Financial Statements

On December 6, 2017, the Company repurchased 1,533,785 shares of the Company’s common stock.

On December 1, 2016, the Company granted a stock option under the Plan to each of the three non-employee directors plus the Chief Executive Officer, who otherwise accepts no compensation, to purchase 100,000 shares of common stock at $0.075 per share, the closing price of the Company’s common stock on December 1, 2016. Each option vests on December 1, 2017 and expires on December 1, 2021. These options are collectively valued at $30,000 and are being amortized over the vesting period.

On December 1, 2016, four sets of options of 100,000 shares each, representing a total of 400,000 shares, expired.

A summary of the Company’s stock options outstanding at December 31, 2017 is presented in the table below:

Exercise Price		Outstanding		Weighted average remaining contractual life of options (in years)		Exercisable		Intrinsic Value
$	0.108		400,000		4.92		—	$	27,012
$	0.075		400,000		3.92		400,000	$	40,212
$	0.080		400,000		2.92		400,000	$	38,212
$	0.085		300,000		1.92		300,000	$	27,159
$	0.077		200,000		0.92		200,000	$	19,706
	TOTALS		1,700,000				1,300,000	$	152,301

Warrants

The company does not have any warrants outstanding as of December 31, 2017.

Preferred Stock

As of December 31, 2017 and 2016, the Company has 9,999,154 shares of preferred stock authorized and none of which is issued and outstanding.  The Company’s Board of Directors currently has the right, with respect to the authorized shares of our preferred stock, to authorize the issuance of one or more series of preferred stock with such voting, dividend and other rights as the directors determine.

NOTE 10 – Employee Benefit Plan

The Company maintains a 401K Plan (the “401K Plan”), which covers all employees of the Company. The 401K Plan contains an option for the Company to match each participant's contribution. Employer contribution vests over a five-year period on a 20% per year basis. Company contributions to the 401K Plan totaled approximately $31,000 and $28,000 for the years ended December 31, 2017 and 2016, respectively.

NOTE 11 – Commitments

Operating Leases

The Company leases facilities from Garden City, Kansas, which provides for: (a) a 21-year lease term expiring December 31, 2030, with one five-year renewal period, and (b) a base rent of $2,187 per month. In addition, the Company incurs a fuel flowage fee of $0.06 per gallon of fuel received. The fuel flowage fee is to be reviewed annually by the Garden City Regional Airport, the City of Garden City, and the Company.

In connection with the acquisition of Aircraft Services, Inc., the Company leases additional facilities from Garden City, Kansas, which provides for a 14 year lease term expiring December 31, 2030 with a base rent of $565 a month.

The Company leases office space from the Lehigh Valley International Airport, which provides for approximately 360 square feet, at a monthly cost of $518. The lease may be terminated with 30-days’ advance notice.

Fixed rent expense aggregated approximately $35,000 in 2017 and 2016. Flowage fees on fuel gallons purchased aggregated approximately $47,000 and $52,000 for the years ended December 31, 2017 and 2016, respectively.

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SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

Notes To Consolidated Financial Statements

Future minimum rental payments under the Company’s operating leases are as follows:

For the year ended
December 31,	Total
2018	$	33,024
2019		33,024
2020		33,024
2021		33,024
2022		33,024
Thereafter		264,192
TOTAL	$	429,312

NOTE 12 – Related Parties

From time to time, the law firm of Wachtel Missry, LLP provides certain legal services to the Company and its subsidiaries. William B. Wachtel, Chairman of the Company’s Board of Directors, is a managing partner of such firm. During the year ended December 31, 2017 and 2016, no services were provided to the Company by Wachtel & Missry, LLP.

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

NOTE 13 – Litigation

From time to time, the Company 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.

NOTE 14 – Acquisition

Our wholly-owned subsidiary, FBO Air Garden City, Inc. (“GCK”), entered into a Stock Purchase Agreement, dated October 3, 2016, by and between the Company, GCK and Gary and Kim Keller, (the “Stock Purchase Agreement”), to purchase all of the capital stock of Aircraft Services, an aircraft maintenance services firm located in Garden City, Kansas. Under the terms of the transaction, the Company made a $150,000 cash payment at closing and will make installment payments totaling an additional $150,000 over the next two years. The closing cash payment for the transaction was funded with internal resources. The Stock Purchase Agreement is discussed in greater detail in a Current Report on Form 8-K filed with the SEC on October 7, 2016 and filed as an exhibit to the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2016.

The following table details the allocation of the purchase price:

	Fair Value
Inventory	$	71,650
Equipment		6,850
Fixed Assets		1,500
Goodwill		220,000
Total	$	300,000

The following table presents the unaudited Pro-forma results of the operations of the Company and Aircraft Services for the twelve month periods ending December 31, 2016 as if Aircraft Services had been acquired at the beginning of the period:

	For the Year Ended December 31, 2016
	2016
Revenue	$	14,975,789
Net income		928,565
Basic net income per common share	$	0.03
Weighted Average Number of Common Shares Outstanding- Basic		33,157,610

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SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

Notes To Consolidated Financial Statements

The above pro-forma combined results are not necessarily indicative of the results that would have actually occurred if the Aircraft Services acquisition had been completed as of the beginning of the years ended December 31, 2016, nor are they necessarily indicative of future consolidated results. For the year ended December 31, 2016, revenue and net income of $144,039  and $42,820 are included in the unaudited pro-forma consolidated statements of operations, respectively.

NOTE 15 – Subsequent Events

As disclosed in a Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on March 21, 2018, the Company announced a financing agreement with Key Bank National Association. The financing included 1) an acquisition line of credit in the amount of $2.5 million, with each acquisition subject to the Bank’s approval, 2) a working capital line of credit in the amount of $1.0 million, and 3) a Term Note in the amount of $338,482 which was used to pay off the PNC Term Loan. Further details are contained in the Form 8-K filing noted here.

The Company has evaluated events which have occurred subsequent to December 31, 2017 and through the date of filing the Annual Report on Form 10-K with the Securities Exchange Commission.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES

None.

ITEM 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Management, including our President (principal financial officer) and Chief Executive Officer (principal executive officer), have evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this Annual Report on Form 10-K. Based upon, and as of the date of that evaluation, our President and our Chief Executive Officer concluded that the 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 Exchange Act, is (i) recorded, processed, summarized and reported as and when required, and (ii) is accumulated and communicated to our management, including our President and our Chief Executive Officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There has been no change to our internal control over financial reporting during the fourth quarter of the fiscal year covered by this Annual Report on Form 10-K that has materially affected, or that is reasonably likely to materially affect our internal control over financial reporting.

Management’s Report on Internal Control over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. All internal control systems, no matter how well designed and tested, have inherent limitations, including, among other things, the possibility of human error, circumvention or disregard. Therefore, even those systems of internal control that have been determined to be effective can provide only reasonable assurance that the objectives of the control system are met and may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Under the supervision and with the participation of management, including our Chief Executive Officer (principal executive officer) and our President (principal financial officer), we conducted an assessment of the effectiveness of our internal control over financial reporting based on the framework in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on the assessment under this framework, management concluded that our internal control over financial reporting was effective as of December 31, 2017.

ITEM 9B. OTHER INFORMATION

            None.

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Part III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS, AND CORPORATE GOVERNANCE

The following table contains certain information related to the directors and executive officers of the Company as of December 31, 2017:

Name	Age	Position
William B. Wachtel	63	Director, Chairman of the Board
Alvin S. Trenk	88	Director, Chief Executive Officer
Ronald J. Ricciardi	56	Director, President
Marc Chodock	39	Director
Roy Moskowitz	63	Director

Each of our directors is elected at the Annual Meeting of Stockholders to serve until the next Annual Meeting of Stockholders or until his successor is duly elected and qualified. Our officers are appointed annually by the Board of Directors to serve at the discretion of the Board.

Business History

William B. Wachtel – Director, Chairman of the Board

Mr. Wachtel was elected as a director and our Chairman of the Board on March 31, 2005. Mr. Wachtel served as our Chairman until April 8, 2009, when he resigned from such capacity but remained a member of the Board. On October 27, 2011, Mr. Wachtel was re-elected as our Chairman of the Board.

Mr. Wachtel has been a managing partner of Wachtel Missry LLP (previously Wachtel & Missry, LLP, and before that, its predecessor law firm Gold & Wachtel, LLP), since its founding in August 1984. Such firm has provided certain legal services to the Company in the past. He is a co-founder of the Drum Major Institute, an organization carrying forth the legacy of the late Reverend Martin Luther King, Jr.

Mr. Wachtel’s participation is important to our Board of Directors because of his extensive experience advising companies regarding legal issues, which provides him with a depth and breadth of experience that enhances our ability to navigate legal and strategic issues, and because of his extensive experience working with us.

Alvin S. Trenk – Director, Chief Executive Officer

Mr. Trenk was first elected as a director and our Chairman of the Board effective August 20, 2004, in connection with the reverse merger transaction pursuant to which we became a public company. He resigned as the Chairman of the Board on March 31, 2005, but continued to serve as a director. On November 6, 2013, Mr. Trenk was appointed to the position of Chief Executive Officer of the Company.

Mr. Trenk has served as Chairman and CEO of Air Pegasus since 1981 and, from 1997 to 2003, as Chairman, President and CEO of Sightseeing Tours of America, Inc. and Liberty Helicopters, Inc., privately held corporations operating public use heliports in New York, and providing helicopter air tours and charter and air services. From 1976 to 1980, Mr. Trenk was Vice Chairman of Kenton Corporation, a diversified publicly-traded corporation, where he also served as President and CEO of Charles Town Turf Club, owner and operator of thoroughbred race tracks in West Virginia and Chairman and CEO of International Health Company, which owned and operated a national chain of artificial kidney centers. 

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Mr. Trenk’s participation is important to our Board of Directors because of his deep knowledge of the aviation industry gained from his thirty year career as an executive officer in the aviation industry.

Ronald J. Ricciardi – Director, President

Mr. Ricciardi had served as the President and a director of Arizona FBO Air, Inc. since its inception in 2003 and was designated as its Chief Executive Officer on January 2, 2004. He was appointed our President and a director of the Company and designated as our Chief Executive Officer on August 20, 2004 effective with the reverse merger transaction, pursuant to which we became a public company. He continued to serve as our Chief Executive Officer until November 6, 2013. On March 2, 2009, he was re-appointed as our President and continues to serve in that capacity.

Mr. Ricciardi is a senior executive with extensive general management experience in entrepreneurial and large companies. Before joining Arizona FBO Air and from 2000 - 2003, Mr. Ricciardi was President and CEO of P&A Capital Partners, Inc., an entertainment finance company established to fund the distribution of independent films. From 1999 – 2000, Mr. Ricciardi was also co-founder, Chairman and CEO of eTurn, Inc., a high technology service provider, for which he developed a consolidation strategy, negotiated potential merger and acquisition candidates, prepared private placement materials and executed numerous private, institutional and venture capital presentations. After a management career at Pepsi-Cola Company and the Perrier Group of America, Mr. Ricciardi was President and CEO of Clearidge, Inc., a leading regional consumer products company, where he provided strategic and organizational development, and led a consolidation effort that included 14 transactions, which more than tripled the revenue of Clearidge, Inc. over four years.

Mr. Ricciardi’s participation is important to our Board of Directors because of his almost 13 years of experience working in a variety of roles with us, including his service on our Board of Directors, combined with his knowledge of the aviation industry and his extensive management experience, all of which demonstrate his strong commitment to us and make him a valued member of our Board of Directors.

Marc Chodock – Director

Mr. Chodock was appointed as a director on June 25, 2015.

Mr. Chodock has been acting as a private investor since February 2013. Previously, he was a consultant in the New York office of McKinsey & Company and a Principal at MatlinPatterson Global Advisors, where he served on the Board of Directors of four companies. He holds a Bachelor of Science in Economics from the University of Pennsylvania’s Wharton School of Business and a Bachelor of Applied Science in Biomedical Science from the School of Engineering and Applied Science of the University of Pennsylvania.

               Mr. Chodock's participation is important to our Board of Directors because of his extensive experience in advising companies by serving on boards as well as his knowledge in depth and breadth of the aviation industry.

Roy P. Moskowitz – Director

                Mr. Moskowitz was appointed as a director on June 25, 2015.

                Mr. Moskowitz has been the Chief Legal Officer of The New School since September 2006. From 1988 – 2004, Mr. Moskowitz held senior positions of legal oversight for New York educational institutions, including the New York State Education Department, City University of New York, Community School District #2, and the Regional Superintendent of Region 9.

                Mr. Moskowitz’ participation is important to our Board of Directors because his extensive experience analyzing legal issues enables Mr. Moskowitz to advise the Company on potential courses of action, particularly when legal topics are involved.

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Family Relationships

There are no family relationships among our directors and officers.

Other Directorships

None of our directors serves as a director of a company (1) with a class of securities registered pursuant to Section 12 of the Exchange Act, (2) subject to Section 15(d) of the Exchange Act, or (3) registered as an investment company under the Investment Company Act of 1940.

Code of Ethics

On May 19, 2006, our Board of Directors adopted a Code of Ethics that applies to our principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions as well as to all of our other employees and directors. We will provide to any person, without charge, upon request, a copy of our Code of Ethics upon written or oral request to Ronald J. Ricciardi, President, Saker Aviation Services, Inc., 20 South Street, Pier 6 East River, New York, NY 10004, or by telephone at: (212) 776-4046.

Our Code of Ethics is posted on our website at www.sakeraviation.com under the “Investor Relations” tab, and then under the “Corporate Governance” sub-tab. We intend to satisfy any disclosure requirements pursuant to Item 5.05 of Form 8-K regarding any amendment to, or a waiver from, certain provisions of our Code of Ethics by posting such information on our website under the “Investor Relations” section.

Committees of the Board of Directors

There are three committees of the Board of Directors: the Audit Committee comprised of Roy P. Moskowitz and Marc Chodock; the Nominating Committee comprised of William B. Wachtel, Alvin S. Trenk, and Ronald J. Ricciardi; and the Compensation Committee comprised of Roy P. Moskowitz and Marc Chodock.

Section 16(a) of the Exchange Act Beneficial Ownership Reporting Compliance

Based solely on a review of Forms 3 and 4 and amendments thereto, furnished to us during the fiscal year ended December 31, 2017 and Forms 5 and amendments thereto, furnished to us with respect to the fiscal year ended December 31, 2017, each director and officer timely reported all of his transactions during that most recent fiscal year as required by Section 16(a) of the Exchange Act or has since rectified any necessary filings.

Corporate Governance

There have been no changes to the procedures by which our security holders may recommend nominees to our Board of Directors since our Board of Directors set forth such policy in our proxy statement for our Annual Meeting of Stockholders held on November 6, 2013.

Our Board of Directors has determined that, of its Audit Committee, Marc Chodock qualifies as a financial expert as such term is defined in applicable SEC rules, and Roy P. Moskowitz and Marc Chodock qualify as “independent” as such term is defined by the rules of the Nasdaq Stock Market.

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ITEM 11. EXECUTIVE COMPENSATION

COMPENSATION OF EXECUTIVE OFFICERS

The following table sets forth the annual and long-term compensation paid by us during the fiscal years ended December 31, 2017 and 2016 for services performed on our behalf with respect to the persons who served as our executive officers as of December 31, 2017. Alvin S. Trenk, who was named as our Chief Executive Officer effective November 6, 2013, has taken no compensation for either of the fiscal years ended 2017 or 2016, except as it relates to his status as a director of the Company.

SUMMARY COMPENSATION TABLE

Name and Principal Position	Year	Salary ($)(1)		Bonus ($)		Option Awards ($)(2)		All Other Compensation ($)(3)		Total ($)
Ronald J. Ricciardi, President	2017		150,000		—		—		16,692		166,692
	2016		150,000		—		—		16,236		166,236

1.	Mr. Ricciardi received a base salary of $150,000 in 2017 and 2016.
2.	Mr. Ricciardi receives health insurance coverage estimated at a value of approximately $1,016 per month in 2017 and approximately $978 in 2016. Mr. Ricciardi received a match to his 401K contributions from us amounting to approximately $4,500 in both 2017 and 2016.

OUTSTANDING EQUITY AWARDS AT DECEMBER 31, 2017

There are no outstanding equity awards at December 31, 2017.

2017 DIRECTOR COMPENSATION TABLE

Name	Fees Earned in Cash ($)(1)		Option Awards ($)(2)		Total ($)
Alvin S. Trenk		4,000		10,800		14,800
William B. Wachtel		4,000		10,800		14,800
Marc Chodock		8,500		10,800		19,300
Roy P. Moskowitz		7,000		10,800		17,800

1.

Each non-employee directors and our Chief Executive Officer, Alvin S. Trenk, are entitled to a fee of $1,000 per board meeting and $750 and $500 per committee meeting for committee chairman and committee members, respectively. Each director is also entitled to reimbursement for expenses incurred in connection with attendance at meetings of the Board of Directors.

2.

Each non-employee director is eligible to be granted an annual option to purchase shares of our common stock. On December 1, 2017, the Board of Directors granted each non-employee director, and our Chief Executive Officer, Alvin S. Trenk, an option for their service in 2017. Each option was for 100,000 shares and was priced at $0.084 per share, which was the closing sales price of our common stock on December 1, 2017. The options vest on December 1, 2018 and may be exercised until December 1, 2022.

Employment Agreements

We do not have any current employment agreements.

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Additional Narrative Disclosure

We do not offer a defined benefit retirement or pension plan. Our 401k Plan (the “401K Plan”) covers all of our employees. The 401K Plan contains an option for us to match each participant's contribution. Any contributions by us vest over a five-year period on a 20% per year basis. In January 2011, we set our match of participant contributions at a rate of 50% of the first 6% of participant deferrals. Our contributions to the 401K Plan totaled approximately $31,000 and $28,000 for the years ended December 31, 2017 and 2016, respectively.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Beneficial Owners

The following table presents certain information as of December 31, 2017 regarding the beneficial ownership of our common stock by:

● each of our current executive officer and directors; and

● all of our current directors and executive officer as a group; and

● each other person or entity known by us to own beneficially 5% or more of our issued and outstanding common stock;

	Number of Shares			Percentage of
	of Common Stock			Common Stock
Name of Beneficial Owner	Beneficially Owned			Beneficially Owned (1)
William B. Wachtel (2)		5,614,407	(3)		17.3	%
Ronald J. Ricciardi (4)		1,308,960	(5)		4.1	%
Alvin S. Trenk (6)		1,315,444	(7)		4.0	%
Marc Chodock (8)		3,200,000	(9)		9.9	%
Roy P. Moskowitz (10)		270,000	(11)		0.8	%
All directors and officers as a group (5 in number)		11,708,811			35.1	%
Ronald I. Heller (12)		1,922,545	(12)		6.0	%
All Beneficial Holders as a group (6 in number)		13,405,971			41.1	%

(1) The percentages computed in the table are based upon 32,117,554 shares of our common stock, which were outstanding on December 31, 2017. Effect is given, pursuant to Rule 13-d(1)(i) under the Exchange Act, to shares of our common stock issuable upon the exercise of options or warrants currently exercisable or exercisable within 60 days of December 31, 2017.

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(2)	William B. Wachtel is our Chairman of the Board and a director. Mr. Wachtel’s address is 20 South Street, Pier 6 East River, New York, New York 10004.
(3)	The shares of our common stock reported in the table include: (a) 100,000 shares issuable upon the exercise of an option expiring December 1, 2018, which option is currently exercisable; (c) 100,000 shares issuable upon the exercise of an option expiring December 1, 2019, which option is currently exercisable; (d) 100,000 shares issuable upon the exercise of an option expiring December 1, 2020, which option is currently exercisable; (e) 100,000 shares issuable upon the exercise of an option expiring December 1, 2021, which option is currently exercisable. The shares of our common stock reported in the table do not reflect (x) 100,000 shares issuable upon the exercise of an option granted on December 1, 2017, which shall become exercisable on December 1, 2018; and (y) 333,400 shares of our common stock acquired by Wachtel Missry, LLP, which has provided certain legal services for us. Mr. Wachtel is a managing partner of such firm, but does not have sole dispositive or voting power with respect to such firm’s securities.
(4)	Ronald J. Ricciardi is our President and a director. Mr. Ricciardi’s address is 20 South Street, Pier 6 East River, New York, New York 10004.
(5)	The shares of our common stock reported in the table include an option to purchase 300,000 shares exercised in 2017 in a cashless transaction.
(6)	Alvin S. Trenk is our Chief Executive Officer and a director. Mr. Trenk’s address is 20 South Street, Pier 6 East River, New York, New York 10004.
(7)	The shares of our common stock reported in the table include: (a) 100,000 shares issuable upon the exercise of an option expiring December 1, 2018, which option is currently exercisable; (c) 100,000 shares issuable upon the exercise of an option expiring December 1, 2019, which option is currently exercisable; (d) 100,000 shares issuable upon the exercise of an option expiring December 1, 2020, (e) 100,000 shares issuable upon the exercise of an option expiring December 1, 2021, which option is currently exercisable. The shares of our common stock reported in the table do not reflect (x) 100,000 shares issuable upon the exercise of an option granted on December 1, 2017, which shall become exercisable on December 1, 2018; and (y) 241,314 shares of our common stock held by Trenk Family Partners. Mr. Trenk does not have sole dispositive or voting power with respect to such firm’s securities.
(8)	Marc Chodock is a director. Mr. Chodock’s address is 20 South Street, Pier 6 East River, New York, New York 10004.
(9)	The shares of our common stock reported in the table include 3,000,000 shares based on a Schedule 13D filed with the SEC on February 9, 2015. The reporting persons are (i)ACM Value Opportunities Fund I, LP, a Delaware limited partnership (the “Fund”), with respect to the shares of our common stock directly owned by it; (ii) ACM Value Opportunities Fund I GP, LLC, a Delaware limited liability company  (the “General Partner”), as general partner of the Fund, with respect to the shares of our common stock directly owned by the Fund, (iii) Arvice Capital Management, LLC, a Delaware limited liability company (the “Manager”), as manager of the Fund, with respect to the shares of our common stock directly owned by the Fund; and (iv) Mr. Marc Chodock (“Mr. Chodock”), as managing member of the Manager, with respect to the shares of our common stock directly owed by the Fund.  The business address of each of the Reporting Persons is 110 East 25th St., 3rd Floor, New York, New York 10011.  In addition, the shares of our common stock reported in the table include: (a) 100,000 shares issuable upon the exercise of an option expiring December 1, 2020, which option is currently exercisable and (b) 100,000 shares issuable upon the exercise of an option expiring December 1, 2021, which option is currently exercisable. The shares of our common stock reported in the table do not reflect 100,000 shares issuable upon the exercise of an option granted on December 1, 2017, which shall become exercisable on December 1, 2018.
(10)	Roy P. Moskowitz is a director. Mr. Moskowitz’s address is 20 South Street, Pier 6 East River, New York, New York 10004.

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(11)

The shares of our common stock reported in the table include (a) 70,000 shares purchased by Mr. Moskowitz in the open market; (b) 100,000 shares issuable upon the exercise of an option expiring December 1, 2020, which option is currently exercisable; and (c) 100,000 shares issuable under the exercise of an option expiring December 1, 2021, which option is currently exercisable. The shares of our common stock reported in the table do not reflect 100,000 shares issuable upon the exercise of an option granted on December 1, 2017, which shall become exercisable on December 1, 2018.

(12)

Ronald I. Heller’s address is c/o Heller Capital Partners, 700 E. Palisade Avenue, Englewood, NJ 07632. Mr. Heller is the beneficial owner of 1,992,545 shares of common stock. The Heller Family Foundation holds 1,372,545 shares of common stock and the Ronald I. Heller IRA holds 550,000 shares of common stock. Mr. Heller controls the voting and disposition of such securities held by the Heller Family Foundation and Ronald I. Heller IRA.

Securities Authorized for Issuance under Equity Compensation Plans

The following table set forth certain information, as of December 31, 2017, with respect to securities authorized for issuance under equity compensation plans. The only security being so offered is our common stock.

	Number of Securities to be issued upon exercise of outstanding options, warrants and rights		Weighted-average exercise price of outstanding options, warrants and rights		Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
	(a)		(b)		(c)
Equity compensation plans approved by security holders		1,700,000	$	0.086		5,800,000
Equity compensation plans not approved by security holders		—	$	—		—
Total		1,700,000	$	0.086		5,800,000

We received stockholder approval on December 12, 2006 for the Saker Aviation Services, Inc. Stock Option Plan of 2005 which relates to 7,500,000 shares of our common stock.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Certain Relationships and Related Transactions

Our Board of Directors adopted a Policy and Procedure Governing Related Party Transactions on April 26, 2007, which policy delegates certain functions related to the review and approval of related party transactions to the audit committee and the compensation committee.

Pursuant to a management agreement with Empire Aviation, which is owned by the children of Alvin S. Trenk, our Chief Executive Officer and a director, the Company incurred management fees of approximately $2,500,000 and $3,500,000 during the twelve months ended December 31, 2017 and 2016, respectively, which is recorded in administrative expenses.  The Company and Empire Aviation have also contributed to the Helicopter Tourism and Jobs Council (“HTJC”), an association that lobbies on behalf of the helicopter air tour industry, and which had engaged in discussions with the Mayor’s office.  Mr. Trenk is also an active participant with HTJC, which is managed by his grandson. 

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Director Independence

Our Board of Directors made the determination of director independence in accordance with the definition set forth in the Nasdaq Stock Market rules. Under such definition, both Marc Chodock and Roy P. Moskowitz qualify as independent.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Audit Fees. The aggregate fees billed for professional services rendered by the principal accountant were approximately $92,500 and $92,000 by Kronick Kalada Berdy & Co. for 2017 and 2016, respectively, for the audits of our annual financial statements for the fiscal years ended December 31, 2017 and 2016, and the reviews of the financial statements included in the Company’s Quarterly Reports on Forms 10-Q for those fiscal years.

Audit-Related Fees. There were no fees billed for professional services categorized as Audit-Related Fees by the principal accountant for the fiscal years ended December 31, 2017 and 2016.

Tax Fees. For the years ended December 31, 2017 and 2016, the aggregate fees billed by a firm other than the principal accountant for services categorized as Tax Fees were $19,000 in both years.

All Other Fees. There were no fees billed for services categorized as All Other Fees by the principal accountant for the fiscal years ended December 31, 2017 and 2016.

Audit Committee Policies and Procedures. The audit committee of the Board of Directors must pre-approve all auditing services and permitted non-audit services (including the fees and terms thereof) to be performed for us by our independent registered public accountants, subject to the de minimus exceptions for non-audit services described in Section 10A(i)(1)(B) of the Exchange Act, which nonetheless must be approved by our audit committee prior to the completion of the audit. Each year the audit committee approves the engagement of our independent registered public accountant to audit our financial statements, including the associated fee, before the filing of the previous year’s Annual Report on Form 10-K. At the beginning of the fiscal year, the audit committee will evaluate other known potential engagements of the independent registered public accountants, including the scope of work proposed to be performed and the proposed fees, and approve or reject each service, taking into account whether the services are permissible under applicable law and the possible impact of each non-audit service on the independent registered public accountant’s independence from management. At each such subsequent meeting, the registered public accountants and management may present subsequent services for approval. Typically, these would be services such as due diligence for an acquisition, that would not have been known at the beginning of the year.

Since December 17, 2009 when our Board of Directors initially authorized the engagement of Kronick Kalada Berdy & Co., pursuant to the SEC rules stating that an auditor is not independent of an audit client if the services it provides to the client are not appropriately approved, each subsequent engagement of Kronick Kalada Berdy & Co, has been approved in advance by the audit committee of the Board of Directors, and none of these engagements made use of the de minimus exception to the pre-approval contained in Section 10A(i)(1)(B) of the Exchange Act.

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Part VI

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(a) Financial Statements

The consolidated financial statements of Saker Aviation Services, Inc. and subsidiaries as of December 31, 2017 and 2016 and for each of the years then ended, and the Report of Independent Registered Public Accounting Firm thereon, are included herein as shown in the “Table of Contents to Consolidated Financial Statements.”

(b) Financial Statement Schedules

None.

(c) Exhibits

Exhibit No.	Description of Exhibit
3 (i) (1)	Amended and Restated Articles of Incorporation. (1)
3 (i) (2)	Articles of Merger (Changing name to Saker Aviation Services, Inc.) (2)
3(ii)	Bylaws of Saker Aviation Services, Inc. (2)
10.1+	Stock Option Plan of 2015 (3)
10.2	Concession Agreement between FirstFlight, Inc. and the City of New York by and through New York City of Department of Small Business Services, dated October 7, 2008 (4)
10.3	Stock Purchase Agreement between the Company and Phoenix Rising Aviation, Inc. (5)
10.4	Loan Agreement between the Company and PNC Bank (6)
10.5	Forms of Security Agreements between the Company and PNC Bank (6)
10.6	Executed Stock Purchase Agreement, effective as of September 30, 2015, by and between the Company and Warren A. Peck (7)
10.7	Executed Secured Promissory Note, effective as of September 30, 2015, to be made by Warren A. Peck in favor of the Company (7)
10.8	Executed Installment Payment Agreement, effective as of September 30, 2015, by and between the Company and Warren A. Peck (7)
10.9	Executed Closing Cash Agreement, effective as of September 30, 2015, by and between the Company and Warrant A. Peck (8)

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10.10	Amendment to NYC Heliport Concession Agreement, dated as of July 13, 2016 (9)
10.11	Stock Purchase Agreement, dated October 3, 2016, by and between the Company and Gary and Kim Keller, to purchase all of the capital stock of Aircraft Services, Inc. (10)
31.1*	Certification pursuant to Rule 13a-14(a)/15d-14(a) under the Securities Exchange Act (principal financial officer).
31.2*	Certification pursuant to Rule 13a-14(a)/15d-14(a) under the Securities Exchange Act (principal executive officer).
32.1*	Certification pursuant to Section 1350 Certification of Sarbanes-Oxley Act of 2002.

101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	Extension Definition XBRL Taxonomy Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

*Filed herewith

+Management compensation plan or arrangement

Footnotes:

(1) Incorporated by reference from the Company’s Current Report on Form 8-K filed on December 18, 2006.

(2) Incorporated by reference from the Company’s Current Report on Form 8-K filed on October 1, 2009.

(3) Incorporated by reference from the Company’s Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005.

(4) Incorporated by reference from the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

(5) Incorporated by reference from the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2013.

(6) Incorporated by reference from the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2013.

(7) Incorporated by reference from the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2015.

(8) Incorporated by reference from the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2015.

(9) Incorporated by reference from the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2016.

(10) Incorporated by reference from the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2016.

(11) Incorporated by reference from the Company’s Current Report on Form 8-K filed on March 21, 2018.

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SIGNATURES

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

	Saker Aviation Services, Inc.
Date:  April 2, 2018	By:	/s/ Ronald J. Ricciardi
		Ronald J. Ricciardi
		President

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

SIGNATURE	TITLE	DATE
	Chairman of the Board,
/s/ William B. Wachtel	Director	April 2, 2018
William B. Wachtel
/s/ Alvin S. Trenk	Chief Executive Officer, Director	April 2, 2018
Alvin S. Trenk
/s/ Ronald J. Ricciardi	President, Director	April 2, 2018
Ronald J. Ricciardi
/s/ Marc Chodock	Director	April 2, 2018
/s/ Roy P. Moskowitz	Director	April 2, 2018

43

Saker Aviation Services, Inc. Form 10-K for the Year Ended December 31, 2017

Exhibits Filed with this Annual Report on Form 10-K:

INDEX

Exhibit No.	Description of Exhibit
31.1	Certification pursuant to Rule 13a-14(a)/15d-14(a) under the Securities Exchange Act (principal financial officer).
31.2	Certification pursuant to Rule 13a-14(a)/15d-14(a) under the Securities Exchange Act (principal executive officer).
32.1	Certification Pursuant to Section 1350 Certification of Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Extension Definition XBRL Taxonomy Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

E-1

EX-31.1

EXHIBIT 31.1

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 Annual Report on Form 10-K 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 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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) 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) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) 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

(d) 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:        April 2, 2018

By:  /s/ Ronald J. Ricciardi

Ronald J. Ricciardi

President (principal financial officer)

EX-31.2

EXHIBIT 31.2

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 Annual Report on Form 10-K 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 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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) 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) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)  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

(d) 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:           April 2, 2018

By:  /s/ Alvin S. Trenk

Alvin S. Trenk

Chief Executive Officer (principal executive officer)

EX-32.1

EXHIBIT 32.1

Section 1350 Certification

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

1. The Annual Report on Form 10-K for the year ended December 31, 2017 (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:April 2, 2018	By:	/s/ Alvin S. Trenk
		Alvin S. Trenk
		Chief Executive Officer (principal executive officer)
Date:   April 2, 2018	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

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Apr. 02, 2018	Jun. 30, 2017
Document Information [Line Items]
Entity Registrant Name	Saker Aviation Services, Inc.
Entity Central Index Key	0001128281
Trading Symbol	skas
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		31,978,149
Entity Public Float			$ 1,486,730
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Amendment Flag	false

XML

Consolidated Balance Sheets - USD ($)	Dec. 31, 2017	Dec. 31, 2016
CURRENT ASSETS
Cash	$ 1,724,504	$ 2,192,057
Accounts receivable	1,838,664	1,474,407
Inventories	163,129	113,105
Notes receivable – current portion	370,000	270,000
Prepaid expenses and other current assets	531,691	437,586
Total current assets	4,627,988	4,487,155
PROPERTY AND EQUIPMENT, net of accumulated depreciation and amortization of $3,158,664 and $2,622,066 respectively	669,957	1,074,397
OTHER ASSETS
Deposits	46,717	97,251
Note receivable, less current portion		200,000
Intangible assets		35,000
Goodwill	750,000	750,000
Deferred income taxes	454,000	323,000
Total other assets	1,250,717	1,405,251
TOTAL ASSETS	6,548,662	6,966,803
CURRENT LIABILITIES
Accounts payable	495,194	842,411
Customer deposits	126,843	126,572
Accrued expenses	292,341	361,443
Notes payable – current portion	345,000	345,000
Total current liabilities	1,259,378	1,675,426
LONG-TERM LIABILITIES
Notes payable - less current portion	112,500	457,500
Total liabilities	1,371,878	2,132,926
STOCKHOLDERS’ EQUITY
Preferred stock - $.001 par value; authorized 9,999,154; none issued and outstanding
Common stock - $.001 par value; authorized 100,000,000; 32,117,554 and 33,157,610 shares issued and outstanding as of December 31,2017 and 2016, respectively	32,117	33,157
Additional paid-in capital	19,896,744	20,030,425
Accumulated deficit	(14,752,077)	(15,229,705)
TOTAL STOCKHOLDERS’ EQUITY	5,176,784	4,833,877
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 6,548,662	$ 6,966,803

XML

Consolidated Balance Sheets (Parentheticals) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
PROPERTY AND EQUIPMENT, accumulated depreciation and amortization	$ 3,158,664	$ 2,622,066
Preferred stock, par value (in dollars per share)		$ 0.001
Preferred stock, shares authorized (in shares)	9,999,154	9,999,154
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	32,117,554	33,157,610
Common stock, shares outstanding (in shares)	32,117,554	33,157,610

XML

Consolidated Statements of Operations - USD ($)		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016
REVENUE		$ 12,016,031	$ 14,690,654
COST OF REVENUE		5,611,581	6,591,917
GROSS PROFIT		6,404,450	8,098,737
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		5,311,207	6,304,011
OPERATING INCOME		1,093,243	1,794,726
OTHER EXPENSE:
OTHER EXPENSE		(10,211)
INTEREST EXPENSE		(21,404)	(27,296)
TOTAL OTHER EXPENSE		(31,615)	(27,296)
INCOME FROM OPERATIONS, before income taxes		1,061,628	1,767,430
INCOME TAX EXPENSE (BENEFIT)
CURRENT		715,000	1,037,000
DEFERRED		(131,000)	(150,000)
INCOME TAX EXPENSE		584,000	887,000
NET INCOME		$ 477,628	$ 880,430
Basic Net Income Per Common Share (in dollars per share)		$ 0.01	$ 0.03
Diluted Net Income Per Common Share (in dollars per share)		$ 0.01	$ 0.03
Weighted Average Number of Common Shares – Basic (in shares)	[1]	33,262,961	33,157,610
Weighted Average Number of Common Shares – Diluted (in shares)	[1]	34,130,624	33,316,004

[1] Common shares of 832,337 and 2,041,606 underlying outstanding stock options for the years ended December 31, 2017 and 2016, respectively, were excluded from the computation of diluted earnings per share as their inclusion would be antidilutive.

XML

Consolidated Statements of Stockholders' Equity - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Dec. 31, 2015	33,157,610
Balance at Dec. 31, 2015	$ 33,157	$ 19,996,428	$ (16,110,135)	$ 3,919,450
Amortization of stock based compensation		33,997		33,997
Net income			880,430	880,430
Balance (in shares) at Dec. 31, 2016	33,157,610
Balance at Dec. 31, 2016	$ 33,157	20,030,425	(15,229,705)	4,833,877
Amortization of stock based compensation		33,997		33,997
Net income			477,628	477,628
Issuance of Common Stock (in shares)	493,729
Issuance of Common Stock	$ 494	(494)		0
Repurchase and cancellation of Common Stock (in shares)	(1,533,785)
Repurchase and cancellation of Common Stock	$ (1,534)	(167,184)		(168,718)
Balance (in shares) at Dec. 31, 2017	32,117,554
Balance at Dec. 31, 2017	$ 32,117	$ 19,896,744	$ (14,752,077)	$ 5,176,784

XML

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 477,628	$ 880,430
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	536,598	505,390
Loss on sale of charter certificate	10,000
Stock based compensation	33,997	33,997
Changes in operating assets and liabilities:
Accounts receivable, trade	(364,257)	1,046,548
Inventories	(50,024)	26,405
Prepaid expenses and other current assets	(94,105)	(83,101)
Deposits	50,534	53,046
Deferred income taxes	(131,000)	(150,000)
Accounts payable	(347,217)	159,495
Customer deposits	271	315
Accrued expenses	(69,102)	(227,974)
TOTAL ADJUSTMENTS	(424,305)	1,364,121
NET CASH PROVIDED BY OPERATING ACTIVITIES	53,323	2,244,551
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of ASI assets		(150,000)
Payment of notes receivable	100,000	30,000
Proceeds from sale of charter certificate	25,000
Purchase of property and equipment	(132,158)	(74,781)
NET CASH USED IN INVESTING ACTIVITIES	(7,158)	(194,781)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of notes payable	(345,000)	(272,374)
Repurchase and cancellation of common stock	(168,718)
NET CASH USED IN FINANCING ACTIVITIES	(513,718)	(272,374)
NET CHANGE IN CASH	(467,553)	1,777,396
CASH – Beginning	2,192,057	414,661
CASH – Ending	1,724,504	2,192,057
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest	21,404	27,296
Income taxes	730,828	1,255,685
Non-cash investing activities:
Purchase of assets through issuance of notes payable		$ 150,000

XML

Note 1 - Nature of Operations

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

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

NOTE

1

-

Nature of Operations

Saker Aviation Services, Inc. (“Saker”), through its subsidiaries (collectively the “Company”),

operates in the aviation services segment of the general aviation industry, in which it serves as the operator of a heliport and a fixed base operation (“FBO”), as a provider of aircraft maintenance, repair and overhaul (“MRO”), and as a consultant for a non-owned seaplane base. FBOs provide ground-based services, such as fueling and aircraft storage for general aviation, commercial and military aircraft, and other miscellaneous services.

FirstFlight Heliports, LLC d/b/a Saker Aviation Services (“FFH”), a wholly-owned subsidiary, operates the Downtown Manhattan Heliport via a concession agreement with the City of New York.

FBO Air Garden City, Inc. d/b/a Saker Aviation Services (“FBOGC”), a wholly-owned subsidiary provides FBO and MRO services in Garden City, Kansas.

XML

Note 2 - Management's Liquidity Plans

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Going Concern Disclosure [Text Block]

NOTE

2

–

Management’s Liquidity Plans

As of

December 31, 2017,

the Company had cash of

$1,724,504

and a working capital surplus of

$3,368,610.

The Company generated revenue of

$12,016,031

and had net income of

$477,628

for the

twelve

months ended

December 31, 2017.

On

May 17, 2013,

the Company entered into a loan agreement with PNC Bank (the “PNC Loan Agreement”). The PNC Loan Agreement contained

three

components: (i) a

$2,500,000

non-revolving acquisition line of credit (the “PNC Acquisition Line”); (ii) a

$1,150,000

working capital line (the “PNC Working Capital Line”); and (iii) a

$280,920

term loan (the “PNC Term Loan”).

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 provided that

30

days following the Conversion Date

, 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 (

3.486%

as of

December 31, 2017).

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

December 31, 2017,

there was

$382,500

outstanding under the PNC Acquisition Line.

The PNC Working Capital was to have been dispersed for working capital and general corporate purposes. Interest on outstanding principal accrued at a rate equal to daily LIBOR plus

250

basis points. The PNC Working Capital Line expired on

December 31,

201

5,

with

$0

outstanding.

The PNC Term Loan was utilized to retire

the Company’s previously outstanding miscellaneous debt of the same amount. Interest on outstanding principal accrued at a rate equal to

one

-month LIBOR plus

275

basis points and principal and interest payments were to be made over a

thirty-four

month period. At

December 31, 2015,

all amounts under the PNC Term loan had been repaid.

As disclosed in a Current Report on Form

8

-K filed with the Securities and Exchange Commission (the “SEC”)

on

March 21, 2018,

the Company announced a financing agreement with Key Bank National Association. Please see Note

15

Subsequent Events

for further information.

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

$5,000,000

in program year gross receipts and

25%

of gross receipts in excess of

$5

million, or minimum annual guaranteed payments. During the

twelve

months ended

December 31, 2017

and

2016,

the Company incurred approximately

$1,800,000

and

$2,700,000,

respectively, in concession fees which are recorded in the cost of revenue.

As disclosed in a Current Report on Form

8

-K filed with the SEC on

February 5, 2016,

the Company and the New York City Economic Development Corporation (the “NYCEDC”) announced new measures to reduce helicopter noise and impacts across New York City (the “Air Tour Agreement”).

Under the Air Tour Agreement, filed as an exhibit to

the Company’s Annual Report on Form

10

-K for the year ended

December 31, 2015,

the Company

may

not

allow its tenant operators to conduct tourist flights from the Downtown Manhattan Heliport on Sundays beginning

April 1, 2016.

The Company was also required to ensure the Company’s tenant operators reduce the total allowable number of tourist flights from

2015

levels by

20

percent beginning

June 1, 2016,

by

40

percent beginning

October 1, 2016

and by

50

percent beginning

January 1, 2017.

Additionally, beginning on

June 1, 2016,

the Company was required to provide monthly written reports to the NYCEDC and the New York City Council detailing the number of tourist flights conducted out of the Downtown Manhattan Heliport compared to

2015

levels, as well as information on any tour flight that flies over land and/or strays from agreed upon routes.

The Air Tour Agreement also extended

the Company’s Concession Agreement with the City of New York for

30

months, resulting in a new expiration date of

April 30, 2021.

The City of New York has

two

one

year options to further extend the Concession Agreement. The Agreement also provides that the minimum annual guarantee payments the Company is required to pay to the City of New York under the Concession Agreement be reduced by

50%,

effective

January 1, 2017.

These reductions

have negatively impacted the Company’s business and financial results as well as those of the Company’s management company at the Heliport, Empire Aviation which, as previously disclosed, is owned by the children of Alvin Trenk, the Company’s Chief Executive Officer and a member of the Company’s Board of Directors.  The Company incurred management fees with Empire Aviation of approximately

$2,500,000

and

$3,500,000

during the

twelve

months ended

December 31, 2017

and

2016,

respectively, which is recorded in administrative expenses.  The Company and Empire Aviation have also contributed to the Helicopter Tourism and Jobs Council (“HTJC”), an association that lobbies on behalf of the helicopter air tour industry, and which had engaged in discussions with the Mayor’s office.  Mr. Trenk is also an active participant with HJTC, which is managed by his grandson. 

On

February 6, 2018,

the Company was issued a Note by

one

of its customers at the Heliport. The Note schedules approximately

$731,000

otherwise due in receivables from the customer, has a maturity date of

October 31, 2018,

and carries a

7.5

percent rate of interest. The amount due under the Note remains in accounts receivable.

On

October 3, 2016,

the Company purchased all of the capital stock of Aircraft Services, Inc. (“Aircraft Services”), an aircraft maintenance services firm located in Garden City, Kansas. Under the terms of the transaction, the Company made a

$150,000

cash payment at closing, a

$75,000

installment payment in

2017,

and will make an additional installment payment of

$75,000

in

2018.

The closing cash payment and

2017

installment payment were both funded with internal resources. The Company’s purchase of Aircraft Services’ capital stock is discussed in greater detail in a Current Report on Form

8

-K filed with the SEC on

October 7, 2016

and filed as an Exhibit to the Company’s Quarterly Report on Form

10

-Q for the period ended

September 30, 2016.

As disclosed in a Current Report on Form

8

-K filed with the SEC on

July 6, 2015,

the Company entered into a stock purchase agreement, dated

June 30, 2015,

by and between the Company and Warren A. Peck, pursuant to which Mr. Peck purchased all of the capital stock of the Company’s wholly-owned subsidiary. The details of the agreement are described in such Current Report as well as in the Company’s Annual Report on Form

10

-K, which was filed with the SEC on

April 11, 2016.

In

September 2017,

the Company received

$100,000

due under this agreement and a final payment of

$100,000

is expected to be made in

September 2018.

XML

Note 3 - Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Significant Accounting Policies [Text Block]

N

OTE

3

-

Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and

its wholly-owned subsidiaries, FirstFlight Heliports, LLC (“FFH”), and its FBO and MRO at Garden City (Kansas) Regional Airport (“FBOGC”). All significant inter-company accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company

’s significant estimates include depreciation, amortization, impairment of goodwill and intangibles, stock-based compensation, allowance for doubtful accounts and deferred tax assets.

Cash

The Company maintains its cash with various financial institutions. As part of its cash management process, the Company periodically reviews the relative credit standing of these financial institutions.

Accounts Receivable

,

T

rade

and Revenue Concentration

The Company

extends credit to large and mid-size companies for products and services. The Company has concentrations of credit risk in that

92.3%

of the balance of its accounts receivable at

December 31, 2017

is made up of only

four

customers. At

December 31, 2017,

accounts receivable from the Company’s

four

largest accounts amounted to approximately

$804,263

(

43.7%

),

$515,962

(

28.1%

),

$253,740

(

13.8%

), and

$122,449

(

6.7%

), respectively. In addition, these

four

customers represented approximately

67.6%

of our revenue in

2017.

At

December 31, 2016,

accounts receivable from the Company’s

four

largest accounts amounted to approximately

$554,436

(

37.6%

),

$426,898

(

29.0%

),

$196,993

(

13.4%

), and

$136,470

(

9.3

%), respectively. In addition,

four

customers represented approximately

$11,033,000

(

75.1%

) of revenue in

2016.

The Company has in place a security deposit in connection with each of these receivables. Accounts receivable are carried at their estimated collectible amounts. Accounts receivable are periodically evaluated for collectability and the allowance for doubtful accounts is adjusted accordingly. We determine collectability based on our management experience and knowledge of the customers.

Inventories

Inventories consist primarily of maintenance parts and aviation fuel and are stated at the lower of cost or

net realizable value determined by the

first

-in,

first

out method.

In

2017,

the Company adopted ASU

2015

-

11simplifying

the measurement of inventory and it did

not

have a material impact on the Company

’s financial results.

Property and Equipment

Property and equipment is stated at cost. Depreciation is provided primarily using the straight-line method over the estimated useful

lives as set forth in footnote

5.

Amortization of leasehold improvements is provided using the straight-line method over the shorter of their estimated useful life or lease term, including renewal option periods expected to be exercised. Maintenance and repairs are charged to expense as incurred; costs of major additions and betterments are capitalized. When property and equipment is sold or otherwise disposed of, the cost and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is reflected in income.

Goodwill and Intangible Assets

Goodwill and intangibles that are deemed to have indefinite lives are

not

amortized but, instead, are to be reviewed at

each reporting period for impairment. The Company assessed potential impairment of goodwill using qualitative factors by considering various factors including macroeconomic conditions, industry and market conditions, cost factors, a sustained share price or market capitalization decrease and any reporting unit specific events. The Company performed an analysis of its goodwill and intangible assets at

December 31, 2017

and

2016.

The Company recorded additional goodwill in

2016

relating to its acquisition of Aircraft Services, Inc.

Revenue Recognition

Revenue for the sales of products is recognized at the time products are delivered to customers. Revenue for services is recognized at the time the services are performed and provided to customers.

Customer Deposits

Customer deposits consist of amounts that customers are required to remit in advance to the Company in order to secure payment for future purchases and services.

Advertising

The Company expenses all advertising costs as incurred. Advertising expense for the years ended

December 31, 2017

and

2016

was approximately

$36,370

and

$35,860,

respectively.

Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between their financial statement carrying amounts and their respective tax bases

. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income or loss in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

D

eferred tax assets are subject to a valuation allowance because it is more likely than

not

that certain of the deferred tax assets will

not

be realized in future periods. The Company files income tax returns in the United States (federal) and in various state and local jurisdictions. In most instances, the Company is

no

longer subject to federal, state and local income tax examinations by tax authorities for years prior to

2014.

Fair Value of Financial Instruments

The reported amounts of the Company

’s financial instruments, including accounts receivable, accounts payable and accrued liabilities, approximate their fair value due to their short maturities. The carrying amounts of debt approximate fair value because the debt agreements provide for interest rates that approximate market. The carrying value of the note receivable approximated fair value because it was discounted at a current market rate.

Net Income Per Common Share

Basic net income per share applicable to common stockholders is computed based on the weighted average number of shares of the Company

’s common stock outstanding during the periods presented. Diluted net income per share reflects the potential dilution that could occur if securities or other instruments to issue common stock were exercised or converted into common stock. Potentially dilutive securities, consisting of options and warrants, are excluded from the calculation of the diluted income per share when their exercise prices are greater than the average market price of the common stock during the period or when their inclusion would be antidilutive. 

The following table sets forth the components used in the computation of basic and diluted

income per share:

	For the Year Ended December 31,
	201 7(1)		201 6(1)
Weighted average common shares outstanding, basic		33,262,961		33,157,610
Common shares upon exercise of options		867,663		158,394
Weighted average common shares outstanding, diluted		34,130,624		33,316,004

( 1 ) Common shares of 832,337 and 2,041,606 underlying outstanding stock options for the years ended December 31, 2017 and 2016, respectively, were excluded from the computation of diluted earnings per share as their inclusion would be antidilutive.

Stock

-

Based Compensation

Stock-based compensation expense for all share-based payment awards are based on the estimated 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 years ended

December 31, 2017

and

2016,

the Company incurred stock based compensation of

$33,997

.

Such amounts have been recorded as part of the Company’s selling, general and administrative expenses in the accompanying consolidated statements of operations. As of

December 31, 2017,

the unamortized fair value of the options totaled

$22,500

and the weighted average remaining amortization period of the options approximated

five

years.

Option valuation models require the input of highly subjective assumptions, including the expected life of the option. Because the Company's employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management's opinion, the existing models do

not

necessarily provide a reliable single measure of the fair value of its employee stock options.

The fair value of each share-based payment award granted during the years ended

December 31, 2017

and

2016

were estimated using the Black-Scholes option pricing model with the following weighted average fair values:

	For the Year Ended December 31,
	201 7		201 6
Dividend yield		0%		0%
Expected volatility		718%		705%
Risk-free interest rate		2.1%		1.9%
Expected lives (years)		5.0		5.0

The weighted average fair value of the options on the date of grant, using the fair value based methodology during the years ended

December 31, 2017

and

2016,

was

$0.108

and

$0.064,

respectively.

Recently Issued Accounting Pronouncements

In

May 2014,

the

Financial Accounting Standards Board (the” FASB”) issued Accounting Standards Update (“ASU”)

No.

2014

-

09,

“Revenue from Contracts with Customers” (“ASU

2014

-

09”

), which provides guidance for revenue recognition. ASU

2014

-

09

affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets and supersedes the revenue recognition requirements in Topic

605,

“Revenue Recognition,” and most industry-specific guidance. ASU

2014

-

09

also supersedes some cost guidance included in Subtopic

605

-

35,

“Revenue Recognition-Construction-Type and Production-Type Contracts.” The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the current guidance. These judgments and estimates include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each separate performance obligation. In

August 2015,

the FASB issued ASU

2015

-

14

“Revenue from Contracts with Customers” (“ASU

2015

-

14”

), which delays the effective date of ASU

2014

-

09

by

one

year. ASU

2014

-

09,

as amended by ASU

2015

-

14,

is effective for us beginning

January 1, 2018,

and, at that time, we

may

adopt the new standard under the full retrospective approach or the modified retrospective approach. We are currently evaluating the method of adoption and the impact the adoption of ASU

2014

-

09

will have on our consolidated financial statements and disclosures.

I

n

February 2016,

the FASB issued ASU

No.

2016

-

02,

“Leases” (“ASU

2016

-

02”

), which requires an entity to recognize assets and liabilities on the balance sheet for the rights and obligations created by leased assets and provide additional disclosures. ASU

2016

-

02

is effective for the Company beginning

January 1, 2019,

and, at that time, the Company will adopt the new standard using a modified retrospective approach. The Company is currently evaluating the impact that the adoption of ASU

2016

-

02

may

have on its consolidated financial statements and disclosures.

XML

Note 4 - Inventories

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Inventory Disclosure [Text Block]

 

NOTE

4

–

Inventories

Inventory consists primarily of aviation fuel

, which the Company dispenses to its customers, and parts inventory as a result of the acquisition of Aircraft Services. The Company also maintains fuel inventories for commercial airlines, to which it charges into-plane fees when servicing commercial aircraft.

Inventories consist of the following:

	December 31,
	201 7		201 6
Parts inventory	$	82,505	$	71,906
Fuel inventory		69,822		20,821
Other inventory		10,802		20,378
Total inventory	$	163,129	$	113,105

Included in fuel inventory are amounts held for

third

parties of $

31,147

and

$36,692

as of

December 31, 2017

and

2016,

respectively, with an offsetting liability included as part of accrued expenses.

XML

Note 5 - Property and Equipment

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

NOTE

5

–

Property and Equipment

Property and equipment consist of the following:

	December 31,						Estimated
	201 7			201 6			Useful Life (years)
Aircraft	$	56,000		$	56,000		7	–	12
Vehicles		309,574			274,384		5	–	10
Office furniture and equipment		387,728			380,634		3	–	7
Tools and shop equipment		78,398			69,640		3	–	10
Leasehold improvements		2,796,921			2,715,805		10	–	20
Building/fuel farm		200,000			200,000		7	–	17
Total		3,828,621			3,696,463
Less: accumulated depreciation and amortization		(3,158,664	)		(2,622,066	)
Property and equipment, net	$	669,957		$	1,074,397

Depreciation

and amortization expense for the years ended

December 31, 2017

and

2016

was approximately

$537,000

and

$505,000,

respectively.

XML

Note 6 - Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE

6

–

Goodwill and I

ntangible Assets

The Company had $

750,000

of goodwill at

December 31, 2017

and

2016.

The Company

had

$0

and

$35,000

of intangible assets at

December 31, 2017

and

December 31, 2016,

respectively.

XML

Note 7 - Notes Payable

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Notes Payable Disclosure [Text Block]

NOTE

7

–

Notes Payable

Notes payable consist of:

	December 31,
	201 7			201 6
PNC Bank Acquisition Line of Credit converted to a Promissory Note on May 17, 2014 – secured by assets of acquisition. One month LIBOR plus 275 bps, matures May 17, 2019.	$	382,500		$	652,500
N otes payable issued in 2016 in connection with purchase of Aircraft Services, Inc. Note to be paid in two equal installments over two years.		75,000			150,000
Subtotal		457,500			802,500
Less: current portion		(345,000	)		(345,000	)
Total – long term	$	112,500		$	457,500

Aggregate

annual maturities of debt are as follows:

For the years ended December 31,	Total
201 8	$	345,000
201 9		112,500
TOTAL	$	457,500

XML

Note 8 - Income Taxes

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE

8

–

Income Taxes

The Company

’s deferred tax assets consisted of the following:

	December 31,
	201 7			201 6
Deferred tax assets:
Stock based compensation	$	50,000		$	53,000
Goodwill and intangibles		39,000			43,000
Property and equipment		415,000			277,000
Total deferred tax assets		504,000			373,000
Valuation Allowance		(50,000	)		(50,000	)
Deferred tax asset – net of valuation allowance	$	454,000		$	323,000
Change in valuation allowance	$	---		$	---

The provision for income taxes using the statutory federal tax rate as compared to the Company's effective tax rate is summarized as follows:

	December 31,
	201 7			201 6
Tax expense at statutory rate		30.8	%		34.0	%
State and local income taxes, net of federal		24.2	%		16.2	%
Effective income tax expense rate		55.0	%		50.2	%

On

December 22, 2017,

the

2017

Tax Cut and Jobs Act (the “Tax Act”) was enacted into law and the new legislation contains several key tax provisions, including a reduction of the corporate income tax rate to

21%

effective

January 1, 2018,

among others. We are required to recognize the effect of the tax law changes in the period of enactment, such as determining the estimated transition tax, re-measuring our U.S. deferred tax assets and liabilities at a

21%

rate as well as reassessing the net realizability of our deferred tax assets and liabilities.

 The provisional amount related to the re-measurement of our deferred tax balance resulted in an increase in tax expense of approximately

$42,000.

In

December 2017,

the SEC staff issued Staff Accounting Bulletin

No.

118,

Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB

118

) which allows companies

 to record provisional amounts during a measurement period

not

to extend beyond

one

year of the enactment date. Since the Tax Act was passed late in the

fourth

quarter of

2017,

and ongoing guidance and accounting interpretation are expected over the next

12

months, we consider the accounting of the transition tax and deferred tax re-measurements to be incomplete.  Additional work will be necessary for a more detailed analysis of our deferred tax assets and liabilities and our historical foreign earnings as well as potential correlative adjustments. We expect to complete our analysis within the measurement period in accordance with SAB

118.

  We do

not

expect any material subsequent adjustment to these amounts.   Adjustment if any will have

no

impact to the income statement due to the Company’s loss position and valuation allowance.

XML

Note 9 - Stockholders' Equity

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

NOTE

9

–

Stockholders’ Equity

Stock Options

On

December 12, 2006,

at the Company

’s Annual Meeting, the stockholders of the Company approved the Stock Option Plan of

2005

(the “Plan”). The Plan is administered by the Company’s Compensation Committee and provides for

7,500,000

shares of common stock to be reserved for issuance under the Plan. Directors, officers, employees, and consultants of the Company are eligible to participate in the Plan. The Plan provides for the awards of incentive and non-statutory stock options. The Compensation Committee determined the vesting schedule to be up to

five

years at the time of grant of any options under the Plan, and unexercised options will expire in up to

ten

years. The exercise price is to be equal to at least

100%

of the fair market value of a share of the common stock, as determined by the Compensation Committee, on the grant date. As of

December 31, 2017

and

2016,

there were

5,300,000

shares available for grant as options under the Plan.

Details of all options outstanding

under the Plan are presented in the table below:

	Number of Options			Weighted Average Exercise Price
Balance, January 1, 2016		2,200,000		$	0.074
Granted		400,000			0.075
Ex pired		(400,000	)		0.078
Balance, December 31, 2016		2,200,000		$	0.073
Granted		400,000			0.108
Ex ercised		(900,000	)		0.064
Balance, December 31, 2017		1,700,000			0.086

On

January 30, 2018,

the Company repurchased

139,405

shares of the Company

’s common stock.

On

April 18, 2017,

an option of

300,000

shares was exercised.

On

November 21, 2017,

four

sets of options of

100,000

shares were exercised.

On

November 30, 2017,

two

sets of options of

100,000

shares were exercised.

On

December 1,

201

7,

the Company granted a stock option under the Plan to each of the

three

non-employee directors plus the Chief Executive Officer, who otherwise accepts

no

compensation, to purchase

100,000

shares of common stock at

$0.108

per share, the closing price of the Company’s common stock on

December 1, 2017.

Each option vests on

December 1, 2018

and expires on

December 1, 2022.

These options are collectively valued at

$43,200

and are being amortized over the vesting period.

On

December 6, 2017,

the Company

repurchased

1,533,785

shares of the Company’s common stock.

On

December 1,

201

6,

the Company granted a stock option under the Plan to each of the

three

non-employee directors plus the Chief Executive Officer, who otherwise accepts

no

compensation, to purchase

100,000

shares of common stock at

$0.075

per share, the closing price of the Company’s common stock on

December 1, 2016.

Each option vests on

December 1, 2017

and expires on

December 1, 2021.

These options are collectively valued at

$30,000

and are being amortized over the vesting period.

On

December 1, 2016,

four

sets of options of

100,000

shares each, representing a total of

400,000

shares, expired.

A summary of the Company

’s stock options outstanding at

December 31, 2017

is presented in the table below:

Exercise Price		Outstanding		Weighted average remaining contractual life of options (in years)		Exercisable		Intrinsic Value
$	0.108		400,000		4.92		—	$	27,012
$	0.075		400,000		3.92		400,000	$	40,212
$	0.080		400,000		2.92		400,000	$	38,212
$	0.085		300,000		1.92		300,000	$	27,159
$	0.077		200,000		0.92		200,000	$	19,706
	TOTALS		1,700,000				1,300,000	$	152,301

Warrants

The company does

not

have any warrants outstanding as of

December 31,

2017.

Preferred Stock

As of

December 31, 2017

and

2016,

the Company has

9,999,154

shares of preferred stock authorized and

none

of which is issued and outstanding.  The Company’s Board of Directors currently has the right, with respect to the authorized shares of our preferred stock, to authorize the issuance of

one

or more series of preferred stock with such voting, dividend and other rights as the directors determine.

XML

Note 10 - Employee Benefit Plan

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Compensation and Employee Benefit Plans [Text Block]

NOTE

1

0

–

Employee Benefit Plan

The Company maintains a

401K

Plan (the

“401K

Plan”), which covers all employees of the Company. The

401K

Plan contains an option for the Company to match each participant's contribution.

Employer contribution vests over a

five

-year period on a

20%

per year basis. Company contributions to the

401K

Plan totaled approximately

$31,000

and

$28,000

for the years ended

December 31, 2017

and

2016,

respectively.

XML

Note 11 - Commitments

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

NOTE

1

1

–

Co

mmitments

Operating Leases

The Company leases facilities from Garden City, Kansas, which provides for: (a) a

21

-year lease term expiring

December 31, 2030,

with

one

five

-year renewal period

, and (b) a base rent of

$2,187

per month. In addition, the Company incurs a fuel flowage fee of

$0.06

per gallon of fuel received. The fuel flowage fee is to be reviewed annually by the Garden City Regional Airport, the City of Garden City, and the Company.

In connection with the acquisition of Aircraft Services, Inc

., the Company leases additional facilities from Garden City, Kansas, which provides for a

14

year lease term expiring

December 31, 2030

with a base rent of

$565

a month.

The Company leases office space from the Lehigh Valley International Airport, which provides for approximately

360

square feet

, at a monthly cost of

$518.

The lease

may

be terminated with

30

-days’ advance notice.

Fixed rent expense aggregated approximately

$35,000

in

2017

and

2016.

Flowage fees on fuel gallons purchased aggregated approximately

$47,000

and

$52,000

for the years ended

December 31, 2017

and

2016,

respectively.

Future minimum rental payments under the Company

’s operating leases are as follows:

For the year ended
December 31,	Total
201 8	$	33,024
201 9		33,024
2020		33,024
20 21		33,024
20 22		33,024
Thereafter		264,192
TOTAL	$	429,312

XML

Note 12 - Related Parties

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

NOTE

1

2

–

Related Parties

From time to time, t

he law firm of Wachtel Missry, LLP provides certain legal services to the Company and its subsidiaries. William B. Wachtel, Chairman of the Company’s Board of Directors, is a managing partner of such firm. During the year ended

December 31, 2017

and

2016,

no

services were provided to the Company by Wachtel & Missry, LLP.

As described in more detail in Note

2,

Liquidity, the Company is party to a management agreement with Empire

Aviation, an entity owned by the children of Alvin S. Trenk, the Company’s Chief Executive Officer and a member of our Company’s Board of Directors.

XML

Note 13 - Litigation

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Legal Matters and Contingencies [Text Block]

NOTE

1

3

–

Litigation

From time to time, the Company

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.

XML

Note 14 - Acquisition

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Business Combination Disclosure [Text Block]

NOTE

1

4

–

Acquisition

Our wholly-owned subsidiary, FBO Air Garden City, Inc. (“GCK”), entered into a Stock Purchase Agreement, dated

October 3, 2016,

by and between the Company, GCK and Gary and Kim Keller

, (the “Stock Purchase Agreement”), to purchase all of the capital stock of Aircraft Services, an aircraft maintenance services firm located in Garden City, Kansas. Under the terms of the transaction, the Company made a

$150,000

cash payment at closing and will make installment payments totaling an additional

$150,000

over the next

two

years. The closing cash payment for the transaction was funded with internal resources. The Stock Purchase Agreement is discussed in greater detail in a Current Report on Form

8

-K filed with the SEC on

October 7, 2016

and filed as an exhibit to the Company’s Quarterly Report on Form

10

-Q for the period ended

September 30, 2016.

The following table details the allocation of the purchase price:

	Fair Value
Inventory	$	71,650
Equipment		6,850
Fixed Assets		1,500
Goodwill		220,000
Total	$	300,000

The following table presents the unaudited Pro-forma results of the operations of the Company and

Aircraft Services for the

twelve

month periods ending

December 31, 2016

as if Aircraft Services had been acquired at the beginning of the period:

	For the Year Ended December 31, 2016
	201 6
Revenue	$	14,975,789
Net income		928,565
Basic net income per common share	$	0.03
Weighted Average Number of Common Shares Outstanding- Basic		33,157,610

The above pro-forma combined results are

not

necessarily indicative of the results that would have actually occurred if the

Aircraft Services acquisition had been completed as of the beginning of the years ended

December 31, 2016,

nor are they necessarily indicative of future consolidated results. For the year ended

December 31, 2016,

revenue and net income of

$144,039

  and

$42,820

are included in the unaudited pro-forma consolidated statements of operations, respectively.

XML

Note 15 - Subsequent Events

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Subsequent Events [Text Block]

NOTE

1

5

–

Subsequent Events

As disclosed in a Current Report on Form

8

-K filed with the Securities and Exchange Commission (the “SEC”)

on

March 21, 2018,

the Company announced a financing agreement with Key Bank National Association. The financing included

1

) an acquisition line of credit in the amount of

$2.5

million, with each acquisition subject to the Bank’s approval,

2

) a working capital line of credit in the amount of

$1.0

million, and

3

) a Term Note in the amount of

$338,482

which was used to pay off the PNC Term Loan. Further details are contained in the Form

8

-K filing noted here.

The Company has evaluated events which have occurred subsequent to

December 31, 2017

and through the date of filing the Annual Report on Form

10

-K with the Securities Exchange Commission.

XML

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

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”), and its FBO and MRO at Garden City (Kansas) Regional Airport (“FBOGC”). All significant inter-company accounts and transactions have been eliminated in consolidation.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company

’s significant estimates include depreciation, amortization, impairment of goodwill and intangibles, stock-based compensation, allowance for doubtful accounts and deferred tax assets.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash

The Company maintains its cash with various financial institutions. As part of its cash management process, the Company periodically reviews the relative credit standing of these financial institutions.

Trade and Other Accounts Receivable, Policy [Policy Text Block]

Accounts Receivable

,

T

rade

and Revenue Concentration

The Company

extends credit to large and mid-size companies for products and services. The Company has concentrations of credit risk in that

92.3%

of the balance of its accounts receivable at

December 31, 2017

is made up of only

four

customers. At

December 31, 2017,

accounts receivable from the Company’s

four

largest accounts amounted to approximately

$804,263

(

43.7%

),

$515,962

(

28.1%

),

$253,740

(

13.8%

), and

$122,449

(

6.7%

), respectively. In addition, these

four

customers represented approximately

67.6%

of our revenue in

2017.

At

December 31, 2016,

accounts receivable from the Company’s

four

largest accounts amounted to approximately

$554,436

(

37.6%

),

$426,898

(

29.0%

),

$196,993

(

13.4%

), and

$136,470

(

9.3

%), respectively. In addition,

four

customers represented approximately

$11,033,000

(

75.1%

) of revenue in

2016.

The Company has in place a security deposit in connection with each of these receivables. Accounts receivable are carried at their estimated collectible amounts. Accounts receivable are periodically evaluated for collectability and the allowance for doubtful accounts is adjusted accordingly. We determine collectability based on our management experience and knowledge of the customers.

Inventory, Policy [Policy Text Block]

Inventories

Inventories consist primarily of maintenance parts and aviation fuel and are stated at the lower of cost or

net realizable value determined by the

first

-in,

first

out method.

In

2017,

the Company adopted ASU

2015

-

11simplifying

the measurement of inventory and it did

not

have a material impact on the Company

’s financial results.

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment

Property and equipment is stated at cost. Depreciation is provided primarily using the straight-line method over the estimated useful

lives as set forth in footnote

5.

Amortization of leasehold improvements is provided using the straight-line method over the shorter of their estimated useful life or lease term, including renewal option periods expected to be exercised. Maintenance and repairs are charged to expense as incurred; costs of major additions and betterments are capitalized. When property and equipment is sold or otherwise disposed of, the cost and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is reflected in income.

Goodwill and Intangible Assets, Policy [Policy Text Block]

Goodwill and Intangible Assets

Goodwill and intangibles that are deemed to have indefinite lives are

not

amortized but, instead, are to be reviewed at

each reporting period for impairment. The Company assessed potential impairment of goodwill using qualitative factors by considering various factors including macroeconomic conditions, industry and market conditions, cost factors, a sustained share price or market capitalization decrease and any reporting unit specific events. The Company performed an analysis of its goodwill and intangible assets at

December 31, 2017

and

2016.

The Company recorded additional goodwill in

2016

relating to its acquisition of Aircraft Services, Inc.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

Revenue for the sales of products is recognized at the time products are delivered to customers. Revenue for services is recognized at the time the services are performed and provided to customers.

Customer Deposits [Policy Text Block]

Customer Deposits

Customer deposits consist of amounts that customers are required to remit in advance to the Company in order to secure payment for future purchases and services.

Advertising Costs, Policy [Policy Text Block]

Advertising

The Company expenses all advertising costs as incurred. Advertising expense for the years ended

December 31, 2017

and

2016

was approximately

$36,370

and

$35,860,

respectively.

Income Tax, Policy [Policy Text Block]

Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between their financial statement carrying amounts and their respective tax bases

. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income or loss in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

D

eferred tax assets are subject to a valuation allowance because it is more likely than

not

that certain of the deferred tax assets will

not

be realized in future periods. The Company files income tax returns in the United States (federal) and in various state and local jurisdictions. In most instances, the Company is

no

longer subject to federal, state and local income tax examinations by tax authorities for years prior to

2014.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

The reported amounts of the Company

’s financial instruments, including accounts receivable, accounts payable and accrued liabilities, approximate their fair value due to their short maturities. The carrying amounts of debt approximate fair value because the debt agreements provide for interest rates that approximate market. The carrying value of the note receivable approximated fair value because it was discounted at a current market rate.

Earnings Per Share, Policy [Policy Text Block]

Net Income Per Common Share

Basic net income per share applicable to common stockholders is computed based on the weighted average number of shares of the Company

’s common stock outstanding during the periods presented. Diluted net income per share reflects the potential dilution that could occur if securities or other instruments to issue common stock were exercised or converted into common stock. Potentially dilutive securities, consisting of options and warrants, are excluded from the calculation of the diluted income per share when their exercise prices are greater than the average market price of the common stock during the period or when their inclusion would be antidilutive. 

The following table sets forth the components used in the computation of basic and diluted

income per share:

	For the Year Ended December 31,
	201 7(1)		201 6(1)
Weighted average common shares outstanding, basic		33,262,961		33,157,610
Common shares upon exercise of options		867,663		158,394
Weighted average common shares outstanding, diluted		34,130,624		33,316,004

( 1 ) Common shares of 832,337 and 2,041,606 underlying outstanding stock options for the years ended December 31, 2017 and 2016, respectively, were excluded from the computation of diluted earnings per share as their inclusion would be antidilutive.

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

Stock-based compensation expense for all share-based payment awards are based on the estimated 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 years ended

December 31, 2017

and

2016,

the Company incurred stock based compensation of

$33,997

.

Such amounts have been recorded as part of the Company’s selling, general and administrative expenses in the accompanying consolidated statements of operations. As of

December 31, 2017,

the unamortized fair value of the options totaled

$22,500

and the weighted average remaining amortization period of the options approximated

five

years.

Option valuation models require the input of highly subjective assumptions, including the expected life of the option. Because the Company's employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management's opinion, the existing models do

not

necessarily provide a reliable single measure of the fair value of its employee stock options.

The fair value of each share-based payment award granted during the years ended

December 31, 2017

and

2016

were estimated using the Black-Scholes option pricing model with the following weighted average fair values:

	For the Year Ended December 31,
	201 7		201 6
Dividend yield		0%		0%
Expected volatility		718%		705%
Risk-free interest rate		2.1%		1.9%
Expected lives (years)		5.0		5.0

The weighted average fair value of the options on the date of grant, using the fair value based methodology during the years ended

December 31, 2017

and

2016,

was

$0.108

and

$0.064,

respectively.

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Accounting Pronouncements

In

May 2014,

the

Financial Accounting Standards Board (the” FASB”) issued Accounting Standards Update (“ASU”)

No.

2014

-

09,

“Revenue from Contracts with Customers” (“ASU

2014

-

09”

), which provides guidance for revenue recognition. ASU

2014

-

09

affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets and supersedes the revenue recognition requirements in Topic

605,

“Revenue Recognition,” and most industry-specific guidance. ASU

2014

-

09

also supersedes some cost guidance included in Subtopic

605

-

35,

“Revenue Recognition-Construction-Type and Production-Type Contracts.” The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the current guidance. These judgments and estimates include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each separate performance obligation. In

August 2015,

the FASB issued ASU

2015

-

14

“Revenue from Contracts with Customers” (“ASU

2015

-

14”

), which delays the effective date of ASU

2014

-

09

by

one

year. ASU

2014

-

09,

as amended by ASU

2015

-

14,

is effective for us beginning

January 1, 2018,

and, at that time, we

may

adopt the new standard under the full retrospective approach or the modified retrospective approach. We are currently evaluating the method of adoption and the impact the adoption of ASU

2014

-

09

will have on our consolidated financial statements and disclosures.

I

n

February 2016,

the FASB issued ASU

No.

2016

-

02,

“Leases” (“ASU

2016

-

02”

), which requires an entity to recognize assets and liabilities on the balance sheet for the rights and obligations created by leased assets and provide additional disclosures. ASU

2016

-

02

is effective for the Company beginning

January 1, 2019,

and, at that time, the Company will adopt the new standard using a modified retrospective approach. The Company is currently evaluating the impact that the adoption of ASU

2016

-

02

may

have on its consolidated financial statements and disclosures.

XML

Note 3 - Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Notes Tables

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

	For the Year Ended December 31,
	201 7(1)		201 6(1)
Weighted average common shares outstanding, basic		33,262,961		33,157,610
Common shares upon exercise of options		867,663		158,394
Weighted average common shares outstanding, diluted		34,130,624		33,316,004

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value [Table Text Block]

	For the Year Ended December 31,
	201 7		201 6
Dividend yield		0%		0%
Expected volatility		718%		705%
Risk-free interest rate		2.1%		1.9%
Expected lives (years)		5.0		5.0

XML

Note 4 - Inventories (Tables)

12 Months Ended

Dec. 31, 2017

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	December 31,
	201 7		201 6
Parts inventory	$	82,505	$	71,906
Fuel inventory		69,822		20,821
Other inventory		10,802		20,378
Total inventory	$	163,129	$	113,105

XML

Note 5 - Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2017

Notes Tables

Property, Plant and Equipment [Table Text Block]

	December 31,						Estimated
	201 7			201 6			Useful Life (years)
Aircraft	$	56,000		$	56,000		7	–	12
Vehicles		309,574			274,384		5	–	10
Office furniture and equipment		387,728			380,634		3	–	7
Tools and shop equipment		78,398			69,640		3	–	10
Leasehold improvements		2,796,921			2,715,805		10	–	20
Building/fuel farm		200,000			200,000		7	–	17
Total		3,828,621			3,696,463
Less: accumulated depreciation and amortization		(3,158,664	)		(2,622,066	)
Property and equipment, net	$	669,957		$	1,074,397

XML

Note 7 - Notes Payable (Tables)

12 Months Ended

Dec. 31, 2017

Notes Tables

Notes Payable [Table Text Block]

	December 31,
	201 7			201 6
PNC Bank Acquisition Line of Credit converted to a Promissory Note on May 17, 2014 – secured by assets of acquisition. One month LIBOR plus 275 bps, matures May 17, 2019.	$	382,500		$	652,500
N otes payable issued in 2016 in connection with purchase of Aircraft Services, Inc. Note to be paid in two equal installments over two years.		75,000			150,000
Subtotal		457,500			802,500
Less: current portion		(345,000	)		(345,000	)
Total – long term	$	112,500		$	457,500

Schedule of Maturities of Long-term Debt [Table Text Block]

For the years ended December 31,	Total
201 8	$	345,000
201 9		112,500
TOTAL	$	457,500

XML

Note 8 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Notes Tables

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	December 31,
	201 7			201 6
Deferred tax assets:
Stock based compensation	$	50,000		$	53,000
Goodwill and intangibles		39,000			43,000
Property and equipment		415,000			277,000
Total deferred tax assets		504,000			373,000
Valuation Allowance		(50,000	)		(50,000	)
Deferred tax asset – net of valuation allowance	$	454,000		$	323,000
Change in valuation allowance	$	---		$	---

Federal Income Tax Note [Table Text Block]

	December 31,
	201 7			201 6
Tax expense at statutory rate		30.8	%		34.0	%
State and local income taxes, net of federal		24.2	%		16.2	%
Effective income tax expense rate		55.0	%		50.2	%

XML

Note 9 - Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2017

Notes Tables

Share-based Compensation, Stock Options, Activity [Table Text Block]

	Number of Options			Weighted Average Exercise Price
Balance, January 1, 2016		2,200,000		$	0.074
Granted		400,000			0.075
Ex pired		(400,000	)		0.078
Balance, December 31, 2016		2,200,000		$	0.073
Granted		400,000			0.108
Ex ercised		(900,000	)		0.064
Balance, December 31, 2017		1,700,000			0.086

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]

Exercise Price		Outstanding		Weighted average remaining contractual life of options (in years)		Exercisable		Intrinsic Value
$	0.108		400,000		4.92		—	$	27,012
$	0.075		400,000		3.92		400,000	$	40,212
$	0.080		400,000		2.92		400,000	$	38,212
$	0.085		300,000		1.92		300,000	$	27,159
$	0.077		200,000		0.92		200,000	$	19,706
	TOTALS		1,700,000				1,300,000	$	152,301

XML

Note 11 - Commitments (Tables)

12 Months Ended

Dec. 31, 2017

Notes Tables

Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block]

For the year ended
December 31,	Total
201 8	$	33,024
201 9		33,024
2020		33,024
20 21		33,024
20 22		33,024
Thereafter		264,192
TOTAL	$	429,312

XML

Note 14 - Acquisition (Tables)

12 Months Ended

Dec. 31, 2017

Notes Tables

Business Acquisition, Purchase Price Allocation [Table Text Block]

	Fair Value
Inventory	$	71,650
Equipment		6,850
Fixed Assets		1,500
Goodwill		220,000
Total	$	300,000

Business Acquisition, Pro Forma Information [Table Text Block]

	For the Year Ended December 31, 2016
	201 6
Revenue	$	14,975,789
Net income		928,565
Basic net income per common share	$	0.03
Weighted Average Number of Common Shares Outstanding- Basic		33,157,610

XML

Note 2 - Management's Liquidity Plans (Details Textual)				1 Months Ended		12 Months Ended
	Oct. 03, 2016 USD ($)	May 17, 2014 USD ($)	Nov. 01, 2008 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015	Feb. 06, 2018 USD ($)	May 17, 2013 USD ($)
Cash						$ 1,724,504	$ 2,192,057
Working Capital						3,368,610
Revenue, Net						12,016,031	14,690,654
Net Income (Loss) Attributable to Parent						477,628	880,430
Environmental Remediation, Agreed Percentage of Reduction in Tenant Operated Tourist Flights								20.00%
Environmental Remediation, Agreed Percentage of Reduction in Tenant Operated Tourist Flights by Year One								40.00%
Environmental Remediation, Agreed Percentage of Reduction in Tenant Operated Tourist Flights by Year Two								50.00%
General and Administrative Expense						$ 2,500,000	3,500,000
Aircraft Services, Inc [Member]
Revenue, Net							144,039
Net Income (Loss) Attributable to Parent							42,820
Stock Purchase Agreement, Cash Consideration Paid	$ 150,000
Stock Purchase Agreement, Cash Consideration Payable	75,000
Stock Purchase Agreement, Payments, Due Next Twelve Months	$ 75,000
Heliport [Member] | Subsequent Event [Member]
Financing Receivable, Net									$ 731,000
Financing Receivable, Interest Rate									7.50%
Warren A. Peck [Member]
Proceeds from Collection of Notes Receivable					$ 100,000
Warren A. Peck [Member] | Scenario, Forecast [Member]
Proceeds from Collection of Notes Receivable				$ 100,000
Concession Agreement [Member]
Line of Credit Facility, Payment Term						2 years 180 days
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%
Minimum Annual Guarantee, Year One			$ 5,000,000
Concession Fees						$ 1,800,000	2,700,000
Line of Credit Facility, Number of Options to Extend Agreement						2
Minimum Annual Guarantee Percent						50.00%
Line of Credit Facility, Length of Options to Extend Agreement						1 year
PNC Acquisition Line [Member]
Line of Credit Facility, Maximum Borrowing Capacity										$ 2,500,000
Line of Credit Facility, Fair Value of Amount Outstanding		$ 1,350,000
Line of Credit Facility, Period after which Payment Term Begins		30 days
Line of Credit Facility, Payment Term		5 years
Line of Credit Facility, Interest Rate During Period						3.486%
Line of Credit Facility, Commitment Fee Percentage						1.50%
Long-term Line of Credit						$ 382,500
PNC Acquisition Line [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate		2.75%
Working Capital Loan [Member]
Short-term Debt										1,150,000
Long-term Line of Credit							$ 0
Working Capital Loan [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate							2.50%
Term Loan [Member]
Short-term Debt										$ 280,920
Line of Credit Facility, Payment Term							2 years 300 days
Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate							2.75%

XML

Note 3 - Summary of Significant Accounting Policies (Details Textual)	12 Months Ended
	Dec. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2016 USD ($) $ / shares shares
Advertising Expense	$ 36,370	$ 35,860
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares	832,337	2,041,606
Share-based Compensation	$ 33,997	$ 33,997
Shares Based Compensation, Stock Options Unamortized Fair Value	$ 22,500
Share-based Compensation, Weighted Average Remaining Amortization Period	5 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares	$ 0.108	$ 0.064
Accounts Receivable [Member] | Customer Concentration Risk [Member]
Number of Major Customers	4	4
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Four Customers [Member]
Concentration Risk, Percentage	92.30%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member]
Concentration Risk, Percentage	43.70%	37.60%
Accounts Receivable, Net	$ 804,263	$ 554,436
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Two [Member]
Concentration Risk, Percentage	28.10%	29.00%
Accounts Receivable, Net	$ 515,962	$ 426,898
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Three [Member]
Concentration Risk, Percentage	13.80%	13.40%
Accounts Receivable, Net	$ 253,740	$ 196,993
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Four [Member]
Concentration Risk, Percentage	6.70%	9.30%
Accounts Receivable, Net	$ 122,449	$ 136,470
Sales Revenue, Net [Member] | Customer Concentration Risk [Member]
Concentration Risk, Percentage	67.60%	75.10%
Number of Major Customers	4	4
Sales Revenue, Goods, Net		$ 11,033,000

XML

Note 3 - Summary of Significant Accounting Policies - Computation of Basic Net Income Per Share (Details) - shares		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016
Weighted average common shares outstanding, basic (in shares)	[1]	33,262,961	33,157,610
Common shares upon exercise of options (in shares)	[1]	867,663	158,394
Weighted average common shares outstanding, diluted (in shares)	[1]	34,130,624	33,316,004

[1] Common shares of 832,337 and 2,041,606 underlying outstanding stock options for the years ended December 31, 2017 and 2016, respectively, were excluded from the computation of diluted earnings per share as their inclusion would be antidilutive.

XML

Note 3 - Summary of Significant Accounting Policies - Fair Value of Share-based Payment Awards Granted (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Dividend yield	0.00%	0.00%
Expected volatility	718.00%	705.00%
Risk-free interest rate	2.10%	1.90%
Expected lives (years) (Year)	5 years	5 years

XML

Note 4 - Inventories (Details Textual) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Fuel [Member]
Inventory Third Party	$ 31,147	$ 36,692

XML

Note 4 - Inventories - Summary of Inventory (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Inventories	$ 163,129	$ 113,105
Parts [Member]
Inventories	82,505	71,906
Fuel [Member]
Inventories	69,822	20,821
Other Inventory [Member]
Inventories	$ 10,802	$ 20,378

XML

Note 5 - Property and Equipment (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Depreciation, Depletion and Amortization	$ 537,000	$ 505,000

XML

Note 5 - Property and Equipment - Summary of Property and Equipment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment, Gross	$ 3,828,621	$ 3,696,463
Less: accumulated depreciation and amortization	(3,158,664)	(2,622,066)
Property and equipment, net	669,957	1,074,397
Air Transportation Equipment [Member]
Property, Plant and Equipment, Gross	$ 56,000	56,000
Air Transportation Equipment [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life (Year)	7 years
Air Transportation Equipment [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life (Year)	12 years
Vehicles [Member]
Property, Plant and Equipment, Gross	$ 309,574	274,384
Vehicles [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life (Year)	5 years
Vehicles [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life (Year)	10 years
Office Equipment [Member]
Property, Plant and Equipment, Gross	$ 387,728	380,634
Office Equipment [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life (Year)	3 years
Office Equipment [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life (Year)	7 years
Tools, Dies and Molds [Member]
Property, Plant and Equipment, Gross	$ 78,398	69,640
Tools, Dies and Molds [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life (Year)	3 years
Tools, Dies and Molds [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life (Year)	10 years
Leasehold Improvements [Member]
Property, Plant and Equipment, Gross	$ 2,796,921	2,715,805
Leasehold Improvements [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life (Year)	10 years
Leasehold Improvements [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life (Year)	20 years
Building [Member]
Property, Plant and Equipment, Gross	$ 200,000	$ 200,000
Building [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life (Year)	7 years
Building [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life (Year)	17 years

XML

Note 6 - Goodwill and Intangible Assets (Details Textual) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Goodwill	$ 750,000	$ 750,000
Charter Certificate [Member]
Finite-Lived Intangible Assets, Gross	$ 0	$ 35,000

XML

Note 7 - Notes Payable - Summary of Notes Payable (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Notes payable	$ 457,500	$ 802,500
Less: current portion	(345,000)	(345,000)
Total – long term	112,500	457,500
PNC Acquisition Line [Member]
Notes payable	382,500	652,500
Notes Payable to Aircraft Services, Inc. [Member]
Notes payable	$ 75,000	$ 150,000

XML

Note 7 - Notes Payable - Summary of Notes Payable (Details) (Parentheticals)	12 Months Ended
	Dec. 31, 2017 Rate	Dec. 31, 2016 Rate
PNC Acquisition Line [Member] | London Interbank Offered Rate (LIBOR) [Member]
One month plus LIBOR (Rate)	2.75%	2.75%

XML

Note 7 - Notes Payable - Annual Maturities of Debt (Details)	Dec. 31, 2017 USD ($)
2018	$ 345,000
2019	112,500
TOTAL	$ 457,500

XML

Note 8 - Income Taxes (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		30.80%	34.00%
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability		$ 42,000
Scenario, Forecast [Member]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%

XML

Note 8 - Income Taxes - Summary of Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Stock based compensation	$ 50,000	$ 53,000
Goodwill and intangibles	39,000	43,000
Property and equipment	415,000	277,000
Total deferred tax assets	504,000	373,000
Valuation Allowance	(50,000)	(50,000)
Deferred tax asset – net of valuation allowance	454,000	323,000
Change in valuation allowance

XML

Note 8 - Income Taxes - Summary of Provision for Income Taxes (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	30.80%	34.00%
State and local income taxes, net of federal	24.20%	16.20%
Effective income tax expense rate	55.00%	50.20%

XML

Note 9 - Stockholders' Equity (Details Textual) - USD ($)									12 Months Ended
	Jan. 30, 2018	Dec. 06, 2017	Dec. 01, 2017	Nov. 30, 2017	Nov. 21, 2017	Apr. 18, 2017	Dec. 01, 2016	Dec. 12, 2006	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period				100,000	100,000	300,000				900,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross									400,000	400,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price									$ 0.108	$ 0.075
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period							400,000			400,000
Class of Warrant or Right, Outstanding									0
Preferred Stock, Shares Authorized									9,999,154	9,999,154
Preferred Stock, Shares Issued									0	0
Preferred Stock, Shares Outstanding									0	0
Non Employee Director1 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			100,000				100,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price			$ 0.108				$ 0.075
Non Employee Director 2 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			100,000				100,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price			$ 0.108				$ 0.075
Non Employee Director 3 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			100,000				100,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price			$ 0.108				$ 0.075
Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			100,000				100,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price			$ 0.108				$ 0.075
Directors and Chief Executive Officer [Member]
Stock Granted, Value, Share-based Compensation, Gross			$ 43,200				$ 30,000
Common Stock [Member]
Stock Repurchased and Retired During Period, Shares		1,533,785							1,533,785
Subsequent Event [Member] | Common Stock [Member]
Stock Repurchased and Retired During Period, Shares	139,405
The 2005 Plan [Member]
Common Stock, Capital Shares Reserved for Future Issuance								7,500,000
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent								100.00%
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant									5,300,000	5,300,000
The 2005 Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period								5 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period								10 years

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Note 9 - Stockholders' Equity - Summary of Outstanding Options Under the Plan (Details) - $ / shares					12 Months Ended
	Nov. 30, 2017	Nov. 21, 2017	Apr. 18, 2017	Dec. 01, 2016	Dec. 31, 2017	Dec. 31, 2016
Outstanding (in shares)					2,200,000	2,200,000
Outstanding, weighted average exercise price (in dollars per share)					$ 0.073	$ 0.074
Granted (in shares)					400,000	400,000
Granted, weighted average exercise price (in dollars per share)					$ 0.108	$ 0.075
Expired (in shares)				(400,000)		(400,000)
Expired (in dollars per share)						$ 0.078
Exercised (in shares)	(100,000)	(100,000)	(300,000)			(900,000)
Exercised, weighted average exercise price (in dollars per share)						$ 0.064
Outstanding (in shares)					1,700,000	2,200,000
Outstanding, weighted average exercise price (in dollars per share)					$ 0.086	$ 0.073

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Note 9 - Stockholders' Equity - Summary of the Company's Stock Options (Details)	12 Months Ended
	Dec. 31, 2017 USD ($) $ / shares shares
Outstanding (in shares)	1,700,000
Exercisable (in shares)	1,300,000
Intrinsic Value | $	$ 152,301
Range One [Member]
Exercise Price (in dollars per share) | $ / shares	$ 0.108
Outstanding (in shares)	400,000
Weighted average remaining contractual life of options (Year)	4 years 335 days
Exercisable (in shares)
Intrinsic Value | $	$ 27,012
Range Two [Member]
Exercise Price (in dollars per share) | $ / shares	$ 0.075
Outstanding (in shares)	400,000
Weighted average remaining contractual life of options (Year)	3 years 335 days
Exercisable (in shares)	400,000
Intrinsic Value | $	$ 40,212
Range Three [Member]
Exercise Price (in dollars per share) | $ / shares	$ 0.08
Outstanding (in shares)	400,000
Weighted average remaining contractual life of options (Year)	2 years 335 days
Exercisable (in shares)	400,000
Intrinsic Value | $	$ 38,212
Range Four Member
Exercise Price (in dollars per share) | $ / shares	$ 0.085
Outstanding (in shares)	300,000
Weighted average remaining contractual life of options (Year)	1 year 335 days
Exercisable (in shares)	300,000
Intrinsic Value | $	$ 27,159
Range Five [Member]
Exercise Price (in dollars per share) | $ / shares	$ 0.077
Outstanding (in shares)	200,000
Weighted average remaining contractual life of options (Year)	335 days
Exercisable (in shares)	200,000
Intrinsic Value | $	$ 19,706

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Note 10 - Employee Benefit Plan (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Defined Contribution Plan, Employers Matching Contribution, Vesting Period	5 years
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage	20.00%
Defined Benefit Plan, Plan Assets, Contributions by Employer	$ 31,000	$ 28,000

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Note 11 - Commitments (Details Textual)		12 Months Ended
	Oct. 03, 2016 USD ($)	Dec. 31, 2017 USD ($) ft²	Dec. 31, 2016 USD ($)
Fixed Expenses Gallon		$ 35,000	$ 35,000
Variable Expenses Gallon		$ 47,000	$ 52,000
Facility in Garden City, Kansas [Member]
Lessee, Operating Lease, Term of Contract		21 years
Number of Renewals		1
Operating Leases, Monthly Rent Expense		$ 2,187
Fuel Flowage Fee, Per Gallon		0.06
Lessee, Operating Lease, Renewal Term		5 years
Additional Facilities in Garden City Kansas [Member]
Lessee, Operating Lease, Term of Contract	14 years
Operating Leases, Monthly Rent Expense	$ 565
Office Space from Lehigh Valley International Airport [Member]
Operating Leases, Monthly Rent Expense		$ 518
Area of Real Estate Property | ft²		360
Operating Leases Advance Notice Term		30 days

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Note 11 - Commitments - Future Minimum Rental Payments (Details)	Dec. 31, 2017 USD ($)
2018	$ 33,024
2019	33,024
2020	33,024
2021	33,024
2022	33,024
Thereafter	264,192
TOTAL	$ 429,312

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Note 14 - Acquisition (Details Textual) - USD ($)		12 Months Ended
	Oct. 03, 2016	Dec. 31, 2017	Dec. 31, 2016
Revenue, Net		$ 12,016,031	$ 14,690,654
Net Income (Loss) Attributable to Parent		$ 477,628	880,430
Aircraft Services, Inc [Member]
Stock Purchase Agreement, Cash Consideration Paid	$ 150,000
Stock Purchase Agreement, Future Cash Consideration	$ 150,000
Revenue, Net			144,039
Net Income (Loss) Attributable to Parent			$ 42,820

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Note 14 - Acquisition - Allocation of Purchase Price (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016	Oct. 03, 2016
Goodwill	$ 750,000	$ 750,000
Aircraft Services, Inc [Member] | GCK [Member]
Inventory			$ 71,650
Equipment			6,850
Fixed Assets			1,500
Goodwill			220,000
Total			$ 300,000

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Note 14 - Acquisition - Pro Forma Financial Information (Details) - Aircraft Services, Inc [Member]	12 Months Ended
	Dec. 31, 2016 USD ($) $ / shares shares
Revenue	$ 14,975,789
Net income	$ 928,565
Basic net income per common share (in dollars per share) | $ / shares	$ 0.03
Weighted Average Number of Common Shares Outstanding- Basic (in shares) | shares	33,157,610

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Note 15 - Subsequent Events (Details Textual) - Key Bank National Association [Member] - Subsequent Event [Member]	Mar. 21, 2018 USD ($)
Term Loan [Member]
Debt Instrument, Face Amount	$ 338,482
Acquisition Line of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity	2,500,000
Working Capital Line of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,000,000