10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

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

For The Quarterly Period Ended June 30, 2021

or

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

For the transition period from _______________ to ________________

Commission File Number: 000-52593

SAKER AVIATION SERVICES, INC.

(Exact Name of Registrant as Specified in Its Charter)

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

(212) 776-4046
(Registrant’s telephone number, including area code)
	N/A
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act: None

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 every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.05 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒         No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth 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 Exchange Act).

Yes ☐          No ☒

As of August 13, 2021, the registrant had 1,028,863 shares of its common stock, $0.03 par value, issued and outstanding.

i

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

Form 10-Q

June 30, 2021

Index

PART I - FINANCIAL INFORMATION
	ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS		Page
		Balance Sheets as of June 30, 2021 (unaudited) and December 31, 2020	1
		Statements of Operations for the Three and Six Months Ended June 30, 2021 and 2020 (unaudited)	2
		Statements of Stockholders’ Equity for the Three and Six Months Ended June 30, 2021 and 2020 (unaudited)	3
		Statements of Cash Flows for the Six Months Ended June 30, 2021 and 2020 (unaudited)	4
		Notes to Financial Statements (unaudited)	5
	ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		10
	ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		17
	ITEM 4. CONTROLS AND PROCEDURES		17
PART II - OTHER INFORMATION
	ITEM 6. EXHIBITS		19
SIGNATURES			20

ii

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

 CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30, 2021			December 31, 2020
	(unaudited)
ASSETS
CURRENT ASSETS
Cash	$	1,788,875		$	1,899,082
Accounts receivable		276,142			262,101
Inventories		183,234			163,619
Income tax receivable		955,500			955,500
Employee Retention Tax Credit receivable		244,778			---
Prepaid expenses		187,780			257,629
Total current assets		3,636,309			3,537,931
PROPERTY AND EQUIPMENT, net of accumulated depreciation and amortization of $3,779,643 and $3,745,861, respectively		303,118			258,856
OTHER ASSETS
Deposits		---			2,512
Right of use assets		426,353			445,711
Goodwill		750,000			750,000
Total other assets		1,176,353			1,198,223
TOTAL ASSETS	$	5,115,780		$	4,995,010
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$	105,037		$	62,021
Customer deposits		80,878			80,878
Accrued expenses		212,805			219,307
Note Payable		7,863			304,833
Right of use leases payable – current portion		44,484			43,306
Total current liabilities		451,067			710,345
LONG-TERM LIABILITIES
Note payable – less current portion		66,294			---
Right of use leases payable - less current portion		361,993			376,933
Total liabilities		879,354			1,087,278
STOCKHOLDERS’ EQUITY
Preferred stock - $0.03 par value; authorized 333,306; none issued and outstanding
Common stock - $0.03 par value; authorized 3,333,334; 1,028,863 shares issued and outstanding at each of June 30, 2021 and December 31, 2020		30,866			30,866
Additional paid-in capital		19,926,426			19,909,230
Accumulated deficit		(15,720,866	)		(16,032,364	)
TOTAL STOCKHOLDERS’ EQUITY		4,236,426			3,907,732
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	5,115,780		$	4,995,010

See accompanying notes to condensed consolidated financial statements.

1

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2021			2020			2021			2020
REVENUE	$	1,179,064		$	438,632		$	1,988,160		$	2,112,387
COST OF REVENUE		495,675			543,600			1,060,810			1,625,265
GROSS PROFIT (LOSS)		683,389			(104,968	)		927,350			487,122
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		404,756			375,125			904,302			1,068,702
OPERATING INCOME (LOSS)		278,633			(480,093	)		23,048			(581,580	)
OTHER (INCOME) EXPENSE
IMPAIRMENT CHARGE		---			270,000			---			270,000
GAIN ON EXTINGUISHMENT OF DEBT		(304,833	)		---			(304,833	)
INTEREST INCOME		---			(6,217	)		---			(12,793	)
INTEREST EXPENSE		6,302			11,059			11,957			12,288
TOTAL OTHER (INCOME) EXPENSE, net		(298,531	)		274,842			(292,876	)		269,495
INCOME (LOSS) BEFORE INCOME TAX		577,164			(754,935	)		315,924			(851,075	)
INCOME TAX EXPENSE		0			0			4,426			0
NET INCOME (LOSS)	$	577,164		$	(754,935	)	$	311,498		$	(851,075	)
Basic Net Income (Loss) Per Common Share	$	0.56		$	(0.74	)	$	0.30		$	(0.83	)
Diluted Net Income (Loss) Per Common Share	$	0.56		$	(0.73	)	$	0.30		$	(0.82	)
Weighted Average Number of Common Shares – Basic		1,028,863			1,023,129			1,028,863			1,023,744
Weighted Average Number of Common Shares - Diluted		1,030,901			1,035,650			1,033,131			1,036,265

See accompanying notes to condensed consolidated financial statements.

2

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

STATEMENT OF CONDENSED STOCKHOLDERS’ EQUITY

(UNAUDITED)

					Additional						Total
	Common Stock				Paid-in			Accumulated			Stockholders’
	Shares		Amount		Capital			Deficit			Equity
BALANCE – January 1, 2020		1,020,135	$	30,604	$	19,818,637		$	(14,272,897	)	$	5,576,344
Issuance of additional Common Stock		3,609		108		(108	)					0
Amortization of stock based compensation						18,651						18,651
Net loss									(96,140	)		(96,140	)
BALANCE – March 31, 2020		1,023,744	$	30,712	$	19,837,180		$	(14,369,037	)	$	5,498,855
Amortization of stock based compensation						18,669						18,669
Net loss									(754,935	)		(754,935	)
BALANCE – June 30, 2020		1,023,744	$	30,712	$	19,855,849		$	(15,123,972	)	$	4,762,589
BALANCE – January 1, 2021		1,028,863	$	30,866	$	19,909,230		$	(16,032,364	)	$	3,907,732
Amortization of stock based compensation						8,598						8,598
Net loss									(265,666	)		(265,666	)
BALANCE – March 31, 2021		1,028,863	$	30,866		19,917,828			(16,298,030	)	$	3,650,664
Amortization of stock based compensation						8,598						8,598
Net income									577,164			577,164
BALANCE – June 30, 2021		1,028,863	$	30,866	$	19,926,426		$	(15,720,866	)	$	4,236,426

See accompanying notes to condensed consolidated financial statements.

3

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Six Months Ended June 30,
	2021			2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	311,498		$	(851,075	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		53,140			65,668
Stock based compensation		17,196			37,320
Impairment charge		---			270,000
Changes in operating assets and liabilities:
Accounts receivable, trade		(14,041	)		299,420
Inventories		(19,615	)		45,697
Prepaid expenses and other current assets		(174,929	)		(187,846	)
Deposits		2,512			592
Accounts payable		43,016			(219,662	)
Accrued expenses		(6,502	)		(155,329	)
TOTAL ADJUSTMENTS		(99,223	)		155,860
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		212,275			(695,215	)
CASH FLOWS USED IN INVESTING ACTIVITIES
Purchase of property and equipment		(78,044	)		(4,912	)
NET CASH USED IN INVESTING ACTIVITIES		(78,044	)		(4,912	)
CASH FLOWS USED IN FINANCING ACTIVITIES
Dividends paid		---			(255,937	)
Extinguishment of debt		(304,833	)		---
Issuance of notes payable		76,000
Repayment of right of use leases payable		(13,762	)		(23,096	)
Repayment of notes payable		(1,843	)		---
NET CASH USED IN FINANCING ACTIVITIES		(244,438	)		(279,033	)
NET CHANGE IN CASH		(110,207	)		(979,160	)
CASH – Beginning		1,899,082			3,597,491
CASH – Ending	$	1,788,875		$	2,618,331
NON-CASH OPERATING AND INVESTING ACTIVITIES:
Cash paid during the periods for:
Interest	$	11,957		$	12,288
Income taxes	$	4,426		$	28,079

See accompanying notes to condensed consolidated financial statements.

4

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 1 - Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of Saker Aviation Services, Inc. (the “Company”) and its subsidiaries have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial statements and in accordance with the instructions to Form 10-Q. Accordingly, they do not include all of the information and disclosures required by GAAP for annual financial statements and should be read in conjunction with the financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

The condensed consolidated balance sheet as of June 30, 2021 and the condensed consolidated statements of operations and cash flows for the three and six months ended June 30, 2021 and 2020 have been prepared by the Company without audit. In the opinion of the Company’s management, all necessary adjustments (consisting of normal recurring accruals) have been included to make the Company’s financial position as of June 30, 2021 and its results of operations and cash flows for the six months ended June 30, 2021 not misleading. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for any full year or any other interim period.

Throughout 2020 and 2021, the COVID-19 pandemic has impacted the global and United States economies. Federal, state, and local governments implemented certain travel restrictions, “stay-at-home” orders, and social distancing initiatives which negatively impacted our operations and those of our customers. As a result of the COVID-19 pandemic, on March 17, 2020 all sightseeing tour operations at the Downtown Manhattan Heliport ceased. On July 20, 2020, New York City started Phase 4 of the city’s reopening. Sightseeing tour operators at the heliport restarted operations under this phase. Sightseeing tour operators have experienced low demand and minimal activity since July 20, 2020, but our sightseeing tour operators have seen a slight uptick in demand in the second quarter of 2021 through the date of this report. To date, the COVID-19 pandemic has had a less substantial impact on our operations at our Kansas FBO and MRO. Although the Downtown Manhattan Heliport has been able to reopen and our Kansas FBO and MRO is operating, there can be no assurance that these facilities will be able to remain open for the foreseeable future, depending on future developments related to the COVID-19 pandemic.

In addition, the employee retention credit (“ERC”) is a refundable tax credit against certain employment taxes. The ERC was established under the CARES Act and amended by the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (the “Relief Act”) and the American Rescue Plan Act of 2021 (“ARPA”). Under the CARES Act, a company needed a more than 50% decline in gross receipts in 2020, compared to the same quarter in 2019, in order to use the gross receipts test to be eligible for the credit. The Company determined it qualified for the ERC for 2020.

The Relief Act provided for changes in the ERC for 2020 and provided an additional credit for the first and second quarters of 2021. The Relief Act revised the gross receipts test so a company that has had a more than 20% decline in gross receipts in 2021, compared to the same quarter in 2019, satisfies the gross receipts test. In addition, the Relief Act allows a company to elect to use the gross receipts from the immediately preceding quarter, and compare these prior quarter gross receipts to the same quarter in 2019, rather than the current quarter.

The Company evaluated its eligibility for the ERC for the first and second quarters of 2021. Under the aggregation rules of the Relief Act, the Company reviewed consolidated revenue when measuring the decline in gross receipts.  The Company determined it qualified for the ERC for the first and second quarter of 2021.  As a result, as of June 30, 2021 the Company recognized approximately $313,000 as a reduction of payroll tax expenses, in accordance with IAS 20, Accounting for Government Grants and Disclosure of Government Assistance

The ARPA extended the ERC to the third and fourth quarters of 2021. The Company expects to be eligible for the ERC for a similar amount at least through the third quarter of 2021.

NOTE 2 – Liquidity and Material Agreements

As of June 30, 2021, we had cash of $1,788,875 and a working capital surplus of $3,185,242. We generated revenue of $1,988,160 and had net income of $311,498 for the quarter ended June 30, 2021. For the quarter ended June 30, 2021, cash flows included net cash provided by operating activities of $212,275, net cash used in investing activities of $78,044, and net cash used in financing activities of $244,438.

As disclosed in a Current Report on Form 8-K filed on March 21, 2018 with the Securities and Exchange Commission (the “SEC”), on March 15, 2018 the Company entered into a loan agreement (the “Loan Agreement”) with Key Bank National Association (the “Bank”). The Loan Agreement contains three components: (i) a $2,500,000 acquisition line of credit (the “Key Bank Acquisition Note”); (ii) a $1,000,000 revolving line of credit (the “Key Bank Revolver Note”); and (iii) a $338,481 term loan (the “Key Bank Term Note”). There are currently no amounts outstanding under the Key Bank Term Note.

Proceeds of the Key Bank Acquisition Note were to be disbursed pursuant to a multiple draw demand note dated as of the agreement date, where the Company could, at the discretion of the Bank, borrow up to an aggregate amount of $2,500,000, to be used for the Company’s acquisition of one or more business entities. Until the Change of Terms Agreement, as defined below, the Company was required to make consecutive monthly payments of interest, calculated at a rate per annum equal to one-day LIBOR (adjusted daily) plus 2.75%, on any outstanding principal under the Key Bank Acquisition Note from the date of its issuance through September 15, 2018 (the “Conversion Date”).

At any time through and including the Conversion Date, at the Bank’s discretion, the Company had the opportunity to request that any loan made under the Key Bank Acquisition Note be converted into a term loan to be repaid in full, including accrued interest, by consecutive monthly payments over a 48 month amortization period beginning after the Conversion Date. For any loan that was not converted into a term loan on or before the Conversion Date, the Company would have been required to begin making monthly payments of principal and interest after the Conversion Date, over a 48 month amortization period, after which the remaining unpaid principal and accrued interest would have become due and payable. All loans under the Key Bank Acquisition Note would have, after the Conversion Date, accrued interest at a rate per annum equal to the Bank’s four year cost of funds rate plus 2.5%. As of the Conversion Date, there were no amounts due under the Key Bank Acquisition Note and no amounts had been converted to a term loan.

5

 

On October 11, 2018, and as subsequently amended, the Company entered into a new loan agreement with the Bank (as so amended, the “Change of Terms Agreement”) which modified the original terms of the Key Bank Acquisition Note. Under the Change of Terms Agreement, the Company could have continued to, at the discretion of the Bank, borrow up to an aggregate amount of $2,500,000 through September 1, 2021 (the “Maturity Date”), to be used for the Company’s acquisition of one or more business entities. The Change of Terms Agreement required the Company to make consecutive monthly payments of interest on any outstanding principal calculated at a rate per annum equal to 4.25% and was secured by substantially all of the Company’s assets. The entire principal balance, plus all accrued interest, was due in full on the Maturity Date. As of June 30, 2021, there were no amounts due under the Change of Terms Agreement. The Bank notified the Company of its decision to discontinue the Key Bank Acquisition Note, effective June 30, 2021. 

The Key Bank Revolver Note, at the discretion of the Bank, provides for the Company to borrow up to $1,000,000 for working capital and general corporate purposes. This revolving line of credit is a demand note with no stated maturity date. Borrowings under the Key Bank Revolver Note will bear interest at a rate per annum equal to one-day LIBOR (adjusted daily) plus 2.75%. The Company is required to make monthly payments of interest on any outstanding principal under the Key Bank Revolver Note and is required to pay the entire balance, including principal and all accrued and unpaid interest and fees, upon demand by the Bank. Any proceeds from the Key Bank Revolver Note would be secured by substantially all of the Company’s assets. As of June 30, 2021, there were no amounts due under the Key Bank Revolver Note.

On August 14, 2020, the Company was granted a loan from the Bank (the “Loan”) in the amount of $304,833, pursuant to the Paycheck Protection Program under Division, Title I of the CARES Act, which was enacted March 27, 2020. The Loan, which was in the form of a note dated August 14, 2020, matures in August 2025 and bore interest at a rate of 1% per annum and was payable in monthly installments commencing on, or before, October 31, 2021. At December 31, 2020, in accordance with FASB ASC 470, Debt, and ASC 405-20, Liabilities – Extinguishment of Liabilities, the Company recorded the cash inflow from the Loan as a liability, and cash flows from financing, pending legal release from the obligation by the U.S. Small Business Administration (“S.B.A.”). The Company used the Loan proceeds for eligible expenses during the covered period and the Loan was forgiven by the S.B.A. in full in the second quarter of 2021. The Company recorded the forgiveness of the Loan as a gain on extinguishment of debt.

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 any program year based on cash collected (“Gross Receipts”) and 25% of Gross Receipts in excess of $5,000,000, or minimum annual guaranteed payments.

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, the Company has not been allowed to permit its tenant operators to conduct tourist flights from the Downtown Manhattan Heliport on Sundays since April 1, 2016. The Company was also required to ensure that its 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. The Air Tour Agreement also provided for 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. Additionally, beginning 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 Concession Agreement for 30 months, resulting in a new expiration date of April 30, 2021 and gave the City of New York two one-year options to extend the term of the Concession Agreement. The term of the Concession Agreement was subsequently extended by the City through April 30, 2022 by the City’s exercise of the first of their two one-year option renewals.

The reductions under the Air Tour Agreement have negatively impacted the Company’s business and financial results as well as those of its management company at the Heliport, Empire Aviation which, as previously disclosed, is owned by the children of a former officer and director of the Company.  The Company incurred management fees with Empire Aviation of approximately $0 and $130,000 during the six months ended June 30, 2021 and 2020, respectively, which is recorded in administrative expenses. The Company and Empire Aviation had historically 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.  The Company has suspended its contributions to HTJC in light of the pandemic. The Company’s former officer and director is also an active participant with HTJC, which is managed by the former officer and director’s grandson. One of our Directors and our current acting principal executive officer, Sam Goldstein, serves as deputy director of HTJC.  

6

 

During the program year that began on May 1, 2020, the City agreed, in recognition of the pandemic’s impact, that the Company could defer payment of minimum guaranteed payments. In April 2021, the City waived the deferred fees through December 31, 2020. In May 2021, the City waived the deferred fees through April 30, 2021 which coincided with the expiration of the Concession Agreement as amended by the Air Tour Agreement. The City is currently working toward obtaining approval of an amendment to the Air Tour Agreement relative to fees to be paid by the Company to the City during the one year extension period, among other things. Concession fees in this Form 10-Q have been accounted for based on the months abated and the Company’s commitment to pay the City 18% of monthly Gross Receipts in excess of $100,000 during the amendment approval process. During the six months ended June 30, 2021 and 2020, we incurred approximately $28,000 and $254,000 in concession fees, respectively, which are recorded in the cost of revenue.

On April 20, 2018, the Company’s Kansas subsidiary entered into a purchase lease with Commerce Bank for a refueling truck (the “Truck Lease”). The Truck Lease commenced on May 1, 2018 and continues for 60 months at an interest rate of LIBOR plus 416 basis points. At the end of the Truck Lease, the Company’s subsidiary may purchase the vehicle for $1.00.

On January 15, 2019, the Company was issued an unsecured note by one of its customers at the Heliport. The note schedules payments of approximately $276,000 in receivables payable by such customer, had a maturity date of October 31, 2019, as amended, and carries a 7.5% rate of interest. The note payments were to be made in six monthly installments beginning May 31, 2019. The customer’s payments on the note have not met the installment plan and the Company was working on changes to the note when the customer filed for Chapter 11 Bankruptcy in October 2019. In February 2021, the bankruptcy court allowed the customer to convert from a Chapter 11 Bankruptcy to a Chapter 7 Liquidation. Under the Chapter 7 Liquidation, the note will now be treated as a general unsecured claim as opposed to a prioritized payment under the Chapter 11 Bankruptcy to cure the permit default. This change has substantially diminished the Company’s expectation to collect amounts due under the note. Therefore, the Company deemed unpaid principal and accrued interest of approximately $205,000 at December 31, 2020 as uncollectable. The $205,000 was written off to bad debt expense in the fourth quarter of 2020.

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, Phoenix Rising Aviation, Inc. The details of the agreement are described in such Current Report as well as in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, which was filed with the SEC on April 11, 2016. The Company received $100,000 due under this agreement in September 2017 and an additional payment of $100,000 in September 2018. In 2019, the Company accepted the title to a Falcon 10 aircraft owned by Mr. Peck as satisfaction in full of the remainder of the $270,000 stock purchase price. The Company intended to sell the aircraft and classified it as “Held For Sale” on the Company’s consolidated balance sheet at December 31. 2019. The Company has been unable to find a buyer due to a depressed market as well as a drop in demand for this type of aircraft. Without a market in which to sell the aircraft, the Company recorded an impairment charge in the quarter ended June 30, 2020 for the full carrying amount of the aircraft. The Company does not believe the aircraft has any value and, in December 2020, filed an application with the FAA Aircraft Registry to cancel the aircraft’s registry.

On May 1, 2021, the Company’s Kansas subsidiary executed a promissory note for $76,000 with Avfuel Corporation (“Avfuel”) for the purchase of a Jet-A refueling truck (the “Truck Note”). The Truck Note requires six annual payments of $13,432.56 commencing April 30, 2022 with the entire balance of unpaid principal and interest due on, or before, April 30, 2028. Interest accrues at prime plus 3% on the outstanding principal amount. The Company is required to make prepayments against the Truck Note at the rate of $0.018 per gallon of fuel purchased under a fuel supply agreement between the Company and Avfuel.

As described throughout this Quarterly Report on Form 10-Q, on March 17, 2020, all sightseeing tour operations at the Downtown Manhattan Heliport ceased as a result of the COVID-19 pandemic. On July 20, 2020, New York City began Phase 4 of the city’s reopening. Sightseeing tours resumed under this phase. Sightseeing tour operators have experienced low demand and minimal activity since July 20, 2020, but sightseeing tour operators have seen a slight uptick in demand in the second quarter of 2021 through the date of this report. To mitigate this loss of revenue, we may need additional financing to continue operations through the issuance of equity or debt and any such financing will be dependent on general market conditions, which itself is subject to the effects of the COVID-19 pandemic. Although we have access to the Key Bank Revolver Note described above, we can make no assurance that that the Key Bank Revolver Note will be sufficient to fund our operations. Additionally, certain restrictions in the Key Bank Revolver Note may prohibit us from obtaining more attractive financing.

7

NOTE 3 - Summary of Significant Accounting Policies

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, FirstFlight Heliports, LLC, and its fixed base operation and aircraft maintenance and repair services at Garden City (Kansas) Regional Airport. All significant inter-company accounts and transactions have been eliminated in consolidation.

Net Income (Loss) Per Common Share

Net income (loss) was $311,498 and $(851,075) for the six months ended June 30, 2021 and 2020, respectively. Basic net income and net loss per share applicable to common stockholders is computed based on the weighted average number of shares of the Company’s common stock outstanding during the periods presented. Diluted net loss per share reflects the potential dilution that could occur if securities or other instruments to issue common stock were exercised or converted into common stock. Potentially dilutive securities, consisting of options and warrants, are excluded from the calculation of the diluted income per share when their exercise prices were greater than the average market price of the common stock during the period. 

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

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2021		2020		2021		2020
Weighted average common shares outstanding, basic		1,028,863		1,023,129		1,028,863		1,023,744
Common shares upon exercise of options and warrants		2,038		12,521		4,268		12,521
Weighted average common shares outstanding, diluted		1,030,901		1,035,650		1,033,131		1,036,265

Stock-Based Compensation

Stock-based compensation expense for all stock-based payment awards are based on the estimated grant-date fair value. The Company recognizes these compensation expenses over the requisite service period of the award, which is generally the option vesting term. For the six months ended June 30, 2021 and 2020, the Company incurred stock-based compensation of $17,196 and $37,320, respectively. 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 June 30, 2021, the unamortized fair value of the options totaled $17,200 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.

Recently Adopted Accounting Pronouncements

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 became effective for us on January 1, 2019 and we have adopted the new standard using a modified retrospective approach. The adoption of ASU No. 2016-02 did not have a material impact on the Company’s financial statements.

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, Inc. The Company also maintains fuel inventories for commercial airlines, to which it charges into-plane fees when servicing commercial aircraft.

8

 

Inventories consist of the following:

	June 30, 2021		December 31, 2020
Parts inventory	$	96,117	$	92,481
Fuel inventory		72,400		59,336
Other inventory		14,717		11,802
Total inventory	$	183,234	$	163,619

Included in fuel inventory are amounts held for third parties of $39,023 and $30,904 as of June 30, 2021 and December 31, 2020, respectively, with an offsetting liability included as part of accrued expenses.

NOTE 5 – 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 quarters ended March 31, 2021 and 2020, no services were provided to the Company by Wachtel & Missry, LLP.

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

NOTE 6 – 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 7 – Dividend Payable

On September 30, 2019, the Company announced that its Board of Directors had declared a special cash dividend of $0.50 per share (the “Dividend”). The Dividend was paid in equal quarterly installments of $0.125 per share beginning on November 1, 2019, with the final dividend paid on August 13, 2020. The accrued dividend payment amounted to $373,370 at December 31, 2019. The declaration and payment of any future dividend will be at the sole discretion of the Board of Directors.

9

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

The following discussion should be read together with the accompanying unaudited condensed consolidated financial statements and related notes in this report. This Item 2 contains forward-looking statements that involve risks and uncertainties. Undue reliance should not be placed on these forward-looking statements, which speak only as of the date of this report. Actual results may differ materially from those expressed or implied in such forward-looking statements. Factors which could cause actual results to differ materially are discussed throughout this report and include, but are not limited to, those set forth at the end of this Item 2 under the heading "Cautionary Statement Regarding Forward Looking Statements." Additional factors are under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

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

OVERVIEW

Saker Aviation Services, Inc. is a Nevada corporation. Our common stock, $0.03 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”), and as a provider of aircraft maintenance and repair services (“MRO”). 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 and as an FBO and MRO at the Garden City (Kansas) Regional Airport.

The Garden City facility became part of our Company as a result of our acquisition of the FBO assets of Central Plains Aviation, Inc. in March 2005 and of Aircraft Services, Inc. in October 2016.

Our business activities at the Downtown Manhattan (New York) Heliport facility (the “Heliport”) commenced in November 2008 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”).

The COVID-19 pandemic has impacted the global and United States economies. Federal, state, and local governments implemented certain travel restrictions, “stay-at-home” orders, and social distancing initiatives which negatively impacted our operations and those of our customers. As a result of the COVID-19 pandemic, on March 17, 2020, all sightseeing tour operations at the Downtown Manhattan Heliport ceased due to a drop in demand. On July 20, 2020, New York City started Phase 4 of the city’s reopening. Sightseeing tour operators at the heliport restarted operations under this phase. Sightseeing tour operators have experienced low demand and minimal activity since July 20, 2020, but have seen a slight uptick in demand beginning in the second quarter of 2021 through the date of this report. The COVID-19 pandemic has had a less substantial impact on our operations at our Kansas FBO and MRO.

While we expect the COVID-19 pandemic to continue to adversely impact our business and operations, the full extent of the impact of the COVID-19 pandemic on our operational and financial performance will depend on future developments, including the duration and spread of the COVID-19 pandemic and related travel advisories and restrictions and the impact of the COVID-19 pandemic on overall demand for air travel.

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.

10

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.

REVENUE AND OPERATING RESULTS

Comparison of Continuing Operations for the Three and Six Months Ended June 30, 2021 and June 30, 2020.

REVENUE

Total revenue from operations increased by 168.8 percent to $1,179,064 for the three months ended June 30, 2021 as compared with corresponding prior-year period revenue of $438,632.

For the three months ended June 30, 2021, revenue from operations associated with the sale of jet fuel, aviation gasoline and related items increased by 135.5 percent to approximately $667,000 as compared to approximately $283,000 in the three months ended June 30, 2020. This increase was attributable to the higher volume of gallons of aviation gasoline sold at both our New York and Kansas locations compared to the second quarter of 2020.

For the three months ended June 30, 2021, revenue from operations associated with services and supply items increased by 158.3 percent to approximately $379,000 as compared to approximately $147,000 in the three months ended June 30, 2020. This increase was attributable to increased demand for services at our New York and Kansas locations compared to the second quarter of 2020.

For the three months ended June 30, 2021 all other revenue from operations increased by 1,418.8 percent to approximately $133,000 as compared to approximately $9,000 in the three months ended June 30, 2020. This increase was attributable to an increase in non-aeronautical revenue generated at our New York location compared to the same period last year.

Total revenue decreased by 5.9 percent to $1,988,160 for the six months ended June 30, 2021 as compared with corresponding prior-year period revenue of $2,112,387.

For the six months ended June 30, 2021, revenue from operations associated with the sale of jet fuel, aviation gasoline and related items increased by 7.6 percent to approximately $1,173,000 as compared to approximately $1,090,000 in the six months ended June 30, 2020. This increase was attributable to the higher volume of gallons of aviation gasoline sold at both our New York and Kansas locations compared to the same period in 2020.

For the six months ended June 30, 2021, revenue from operations associated with services and supply items decreased by 36.5 percent to approximately $634,000 as compared to approximately $1,000,000 in the six months ended June 30, 2020. This decrease was attributable to the negative impact of the pandemic on our New York operations for both quarters of 2021 as compared to pandemic’s minimal impact of the first quarter of 2020 operations and the substantial negative impact of the pandemic on the second quarter of 2020 operations.

For the six months ended June 30, 2021, all other revenue from operations increased by 689.7 percent to approximately $181,000 as compared to approximately $23,000 in the six months ended June 30, 2020. This increase was attributable to an increase in non-aeronautical revenue generated by our Heliport compared to the same period last year.

11

GROSS PROFIT

Total gross profit (loss) from operations increased by 751.0 percent in the three months ended June 30, 2021 compared to the three months ended June 30, 2020. The Company experienced a profit from operations of $683,389 as compared to a net loss of $(104,968) in the three months ended June 30, 2020. Gross profit was positively impacted by Employee Retention Tax Credits (“ERTC”) due the Company under the Cares Act. These credits were recorded in the second quarter of 2021 and offset operating payroll costs in the second quarter by approximately $195,000. Gross margin increased to 58.0 percent in the three months ended June 30, 2021 as compared to (23.9) percent in the same period in the prior year. Gross margin was also positively impacted by the ERTC amounts due the Company under the Cares Act recorded in the second quarter of 2021.

Total gross profit from operations increased by 90.4 percent to $927,350 in the six months ended June 30, 2021 as compared to $487,122 in the six months ended June 30, 2020. Gross margin increased to 46.6 percent in the six months ended June 30, 2021 as compared to 23.1 percent in the same period in the prior year. The increases in gross profit and gross margin in a year over year basis were driven by the items discussed above.

OPERATING EXPENSE

Selling, General and Administrative

Total selling, general and administrative expenses, (“SG&A”), from operations were approximately $278,000 in the three months ended June 30, 2021, representing an increase of approximately $112,000 or 66.9 percent, as compared to the same period in 2020. The increase in SG&A for the three months ended June 30, 2021 was primarily attributable to a reduction in expenses in 2020 due to the Covid-19 pandemic as compared to the same period in 2021. SG&A from operations in the six months ended June 30, 2021 were approximately $661,000, representing a decrease of approximately $82,000 or 11.0 percent, as compared to the same period in 2020. The decrease in SG&A operating expenses for the six months ended June 30, 2021, were largely attributable to ERTC due the Company under the Cares Act. These credits of approximately $118,000 offset SG&A payroll expenses in 2021.

Corporate SG&A from operations was approximately $127,000 for the three months ended June 30, 2021, representing a decrease of approximately $82,000 as compared with the corresponding prior year period. Corporate SG&A was approximately $243,000 for the six months ended June 30, 2021, representing a decrease of approximately $83,000 as compared with the corresponding prior year period. The decrease in both the three and six month periods on a year-over-year basis were largely attributable to a non-recurring write-off of miscellaneous receivables in the second quarter of 2020.

OPERATING INCOME (LOSS)

Operating income from operations for the three and six months ended June 30, 2021 was $278,633 and $23,048, respectively, compared to operating loss of ($480,093) and ($581,580) in the three and six months ended June 30, 2020, respectively. The increase in operating income on a year-over-year basis was driven by the factors described above.

Depreciation and Amortization

Depreciation and amortization was approximately $53,000 and $66,000 for the six months ended June 30, 2021 and 2020, respectively.

Interest Expense

Interest expense was approximately $12,000 for both the six month periods June 30, 2021 and 2020.

Income Tax

Income tax expense for the six months ended June 30, 2021 was $4,426 as compared to $0 during the same period in 2020. .

12

Net Income (Loss) Per Share

Net income was $311,498 and $(851,075) for the six months ended June 30, 2021 and 2020, respectively.

Basic net income (loss) per share for the six months ended June 30, 2021 and 2020 was $0.30 and $(0.83), respectively. Diluted net income (loss) per share for the six months ended June 30, 2021 and 2020 was $0.30 and $(0.82), respectively.

LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2021, we had cash of $1,788,875 and a working capital surplus of $3,185,242. We generated revenue of $1,988,160 and had net income of $311,498 for the quarter ended June 30, 2021. For the quarter ended June 30, 2021, cash flows included net cash provided by operating activities of $212,275, net cash used in investing activities of $78,044, and net cash used in financing activities of $244,438.

As disclosed in a Current Report on Form 8-K filed on March 21, 2018 with the Securities and Exchange Commission (the “SEC”), on March 15, 2018 the Company entered into a loan agreement (the “Loan Agreement”) with Key Bank National Association (the “Bank”). The Loan Agreement contains three components: (i) a $2,500,000 acquisition line of credit (the “Key Bank Acquisition Note”); (ii) a $1,000,000 revolving line of credit (the “Key Bank Revolver Note”); and (iii) a $338,481 term loan (the “Key Bank Term Note”). There are currently no amounts outstanding under the Key Bank Term Note.

Proceeds of the Key Bank Acquisition Note were to be disbursed pursuant to a multiple draw demand note dated as of the agreement date, where the Company could, at the discretion of the Bank, borrow up to an aggregate amount of $2,500,000, to be used for the Company’s acquisition of one or more business entities. Until the Change of Terms Agreement, as defined below, the Company was required to make consecutive monthly payments of interest, calculated at a rate per annum equal to one-day LIBOR (adjusted daily) plus 2.75%, on any outstanding principal under the Key Bank Acquisition Note from the date of its issuance through September 15, 2018 (the “Conversion Date”).

At any time through and including the Conversion Date, at the Bank’s discretion, the Company had the opportunity to request that any loan made under the Key Bank Acquisition Note be converted into a term loan to be repaid in full, including accrued interest, by consecutive monthly payments over a 48 month amortization period beginning after the Conversion Date. For any loan that was not converted into a term loan on or before the Conversion Date, the Company would have been required to begin making monthly payments of principal and interest after the Conversion Date, over a 48 month amortization period, after which the remaining unpaid principal and accrued interest would have become due and payable. All loans under the Key Bank Acquisition Note would have, after the Conversion Date, accrued interest at a rate per annum equal to the Bank’s four year cost of funds rate plus 2.5%. As of the Conversion Date, there were no amounts due under the Key Bank Acquisition Note and no amounts had been converted to a term loan.

On October 11, 2018, and as subsequently amended, the Company entered into a new loan agreement with the Bank (as so amended, the “Change of Terms Agreement”) which modified the original terms of the Key Bank Acquisition Note. Under the Change of Terms Agreement, the Company could have continued to, at the discretion of the Bank, borrow up to an aggregate amount of $2,500,000 through September 1, 2021 (the “Maturity Date”), to be used for the Company’s acquisition of one or more business entities. The Change of Terms Agreement required the Company to make consecutive monthly payments of interest on any outstanding principal calculated at a rate per annum equal to 4.25% and was secured by substantially all of the Company’s assets. The entire principal balance, plus all accrued interest, was due in full on the Maturity Date. As of June 30, 2021, there were no amounts due under the Change of Terms Agreement. The Bank notified the Company of its decision to discontinue the Key Bank Acquisition Note, effective June 30, 2021.

The Key Bank Revolver Note, at the discretion of the Bank, provides for the Company to borrow up to $1,000,000 for working capital and general corporate purposes. This revolving line of credit is a demand note with no stated maturity date. Borrowings under the Key Bank Revolver Note will bear interest at a rate per annum equal to one-day LIBOR (adjusted daily) plus 2.75%. The Company is required to make monthly payments of interest on any outstanding principal under the Key Bank Revolver Note and is required to pay the entire balance, including principal and all accrued and unpaid interest and fees, upon demand by the Bank. Any proceeds from the Key Bank Revolver Note would be secured by substantially all of the Company’s assets. As of June 30, 2021, there were no amounts due under the Key Bank Revolver Note.

13

On August 14, 2020, the Company was granted a loan from the Bank (the “Loan”) in the amount of $304,833, pursuant to the Paycheck Protection Program under Division, Title I of the CARES Act, which was enacted March 27, 2020. The Loan, which was in the form of a note dated August 14, 2020, matures in August 2025 and bore interest at a rate of 1% per annum and was payable in monthly installments commencing on, or before, October 31, 2021. At December 31, 2020, in accordance with FASB ASC 470, Debt, and ASC 405-20, Liabilities – Extinguishment of Liabilities, the Company recorded the cash inflow from the Loan as a liability, and cash flows from financing, pending legal release from the obligation by the U.S. Small Business Administration (“S.B.A.”). The Company used the Loan proceeds for eligible expenses during the covered period and the Loan was forgiven by the S.B.A. in full in the second quarter of 2021. The Company recorded the forgiveness of the Loan as a gain on extinguishment of debt.

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 any program year based on cash collected (“Gross Receipts”) and 25% of Gross Receipts in excess of $5,000,000, or minimum annual guaranteed payments.

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, the Company has not been allowed to permit its tenant operators to conduct tourist flights from the Downtown Manhattan Heliport on Sundays since April 1, 2016. The Company was also required to ensure that its 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. The Air Tour Agreement also provided for 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. Additionally, beginning 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 Concession Agreement for 30 months, resulting in a new expiration date of April 30, 2021 and gave the City of New York two one-year options to extend the term of the Concession Agreement. The term of the Concession Agreement was subsequently extended by the City through April 30, 2022 by the City’s exercise of the first of their two one-year options.

The reductions under the Air Tour Agreement have negatively impacted the Company’s business and financial results as well as those of its management company at the Heliport, Empire Aviation which, as previously disclosed, is owned by the children of a former officer and director of the Company.  The Company incurred management fees with Empire Aviation of approximately $0 and $130,000 during the six months ended June 30, 2021 and 2020, respectively, which is recorded in administrative expenses. The Company and Empire Aviation had historically 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.  The Company has suspended its contributions to HTJC in light of the pandemic. The Company’s former officer and director is also an active participant with HTJC, which is managed by the former officer and director’s grandson. One of our Directors and our current acting principal executive officer, Sam Goldstein, serves as deputy director of HTJC.  

During the program year that began on May 1, 2020, the City agreed, in recognition of the pandemic’s impact, that the Company could defer payment of minimum guaranteed payments. In April 2021, the City waived the deferred fees through December 31, 2020. In May 2021, the City waived the deferred fees through April 30, 2021 which coincided with the expiration of the Concession Agreement as amended by the Air Tour Agreement. The City is currently working toward obtaining approval of an amendment to the Air Tour Agreement relative to fees to be paid by the Company to the City, among other things. Concession fees in this Form 10-Q have been accounted for based on the months abated and the Company’s commitment to pay the City 18% of monthly Gross Receipts in excess of $100,000 during the amendment approval process. During the six months ended June 30, 2021 and 2020, we incurred approximately $28,000 and $254,000 in concession fees, respectively, which are recorded in the cost of revenue.

14

On April 20, 2018, the Company’s Kansas subsidiary entered into a purchase lease with Commerce Bank for a refueling truck (the “Truck Lease”). The Truck Lease commenced on May 1, 2018 and continues for 60 months at an interest rate of LIBOR plus 416 basis points. At the end of the Truck Lease, the Company’s subsidiary may purchase the vehicle for $1.00.

On January 15, 2019, the Company was issued an unsecured note by one of its customers at the Heliport. The note schedules payments of approximately $276,000 in receivables payable by such customer, had a maturity date of October 31, 2019, as amended, and carries a 7.5% rate of interest. The note payments were to be made in six monthly installments beginning May 31, 2019. The customer’s payments on the note have not met the installment plan and the Company was working on changes to the note when the customer filed for Chapter 11 Bankruptcy in October 2019. In February 2021, the bankruptcy court allowed the customer to convert from a Chapter 11 Bankruptcy to a Chapter 7 Liquidation. Under the Chapter 7 Liquidation, the note will now be treated as a general unsecured claim as opposed to a prioritized payment under the Chapter 11 Bankruptcy to cure the permit default. This change has substantially diminished the Company’s expectation to collect amounts due under the note. Therefore, the Company deemed unpaid principal and accrued interest of approximately $205,000 at December 31, 2020 as uncollectable. The $205,000 was written off to bad debt expense in the fourth quarter of 2020.

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, Phoenix Rising Aviation, Inc. The details of the agreement are described in such Current Report as well as in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, which was filed with the SEC on April 11, 2016. The Company received $100,000 due under this agreement in September 2017 and an additional payment of $100,000 in September 2018. In 2019, the Company accepted the title to a Falcon 10 aircraft owned by Mr. Peck as satisfaction in full of the remainder of the $270,000 stock purchase price. The Company intended to sell the aircraft and classified it as “Held For Sale” on the Company’s consolidated balance sheet at December 31. 2019. The Company has been unable to find a buyer due to a depressed market as well as a drop in demand for this type of aircraft. Without a market in which to sell the aircraft, the Company recorded an impairment charge in the quarter ended June 30, 2020 for the full carrying amount of the aircraft. The Company does not believe the aircraft has any value and, in December 2020, filed an application with the FAA Aircraft Registry to cancel the aircraft’s registry.

On May 1, 2021, the Company’s Kansas subsidiary executed a promissory note for $76,000 with Avfuel Corporation (“Avfuel”) for the purchase of a 3,000 gallon Jet-A refueling truck (the “Truck Note”). The Truck Note requires 6 annual payments of $13,432.56 commencing April 30, 2022 with the entire balance of unpaid principal and interest due on, or before, April 30, 2028. Interest accrues at a rate per annum of the prime rate plus 3% on the outstanding principal amount. The Company is required to make prepayments against the Truck Note at the rate of $0.018 per gallon of fuel purchased under a fuel supply agreement between the Company and Avfuel.

As described throughout this Quarterly Report on Form 10-Q, on March 17, 2020, all sightseeing tour operations at the Downtown Manhattan Heliport ceased as a result of the COVID-19 pandemic. On July 20, 2020, New York City began Phase 4 of the city’s reopening. Sightseeing tours resumed under this phase. Sightseeing tour operators have experienced low demand and minimal activity since July 20, 2020, but our two remaining sightseeing tour operators have seen a slight uptick in demand for sightseeing tours in the second quarter of 2021 through the date of this report. To mitigate this loss of revenue, we may need additional financing to continue operations through the issuance of equity or debt and any such financing will be dependent on general market conditions, which itself is subject to the effects of the COVID-19 pandemic. Although we have access to the Key Bank Revolver Note described above, we can make no assurance that that the Key Bank Revolver Note will be sufficient to fund our operations. Additionally, certain restrictions in the Key Bank Revolver Note may prohibit us from obtaining more attractive financing.

15

During the six months ended June 30, 2021, we had a net decrease in cash of $110,207. Our sources and uses of funds during this period were as follows:

Cash from Operating Activities

For the six months ended June 30, 2021, net cash provided by operating activities was $212,275. This amount included an increase in operating cash related to net income of $311,498 and additions for the following items: (i) depreciation and amortization, $53,140; (ii) stock based compensation, $17,196; (iii) deposits, $2,512; and (iv) accounts payable, $43,016. These increases in operating activities were offset by a decrease in the following items: (i) accounts receivable, trade, $14,041; (ii) inventories, $19,615, (iii) prepaid expenses and other current assets, $174,929; and (iv) accrued expenses, $6,502.

For the six months ended June 30, 2020, net cash used in operating activities was $695,215. This amount included a decrease in operating cash related to net loss of $851,075 and additions for the following items: (i) depreciation and amortization, $65,668; (ii) stock based compensation, $37,320; (iii) accounts receivable, trade, $299,420; (iv) inventories, $45,697; (v) impairment charge, $270,000; and (vi) customer deposits, $592. These increases in operating activities were offset by decreases for the following items: (i) prepaid expenses and other current assets, $187,846; (ii) accounts payable; $219,662; and (ii) accrued expenses, $155,329.

Cash from Investing Activities

For the six months ended June 30, 2021, net cash of $78,044 was used in investing activities for the purchase of property and equipment. For the six months ended June 30, 2020, net cash of $4,912 was used in investing activities for the purchase of property and equipment.

Cash from Financing Activities

For the six months ended June 30, 2021, net cash of $244,438 was used in financing activities for the following items: (i) extinguishment of debt, $304,833; (ii) payment of right of use leases, $13,762; and (iii) repayment of notes payable, $1,843. These decreases in financing activities were offset by issuance of notes payable of $76,000. For the six months ended June 30, 2020, net cash of $279,033 was used in financing activities for the payment of accrued dividends of $255,937 and repayment of right of use leases payable of $23,096.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Recently Adopted Accounting Pronouncements

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 became effective for us on January 1, 2019 and we have adopted the new standard using a modified retrospective approach. The adoption of ASU No. 2016-02 did not have a material impact on the Company’s financial statements.

16

CAUTIONARY STATEMENT FOR FORWARD-LOOKING STATEMENTS

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

● the impact of the COVID-19 pandemic on our business and results of operations;

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

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

● existing or new competitors consolidating operators ahead of us; and

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

Any one of these or other risks, uncertainties, other factors, or any inaccurate assumptions made by the Company may cause actual results to be materially different from those described herein or elsewhere by us. Undue reliance should not be placed on any such forward-looking statements, which speak only as of the date they were made. Certain of these risks, uncertainties, and other factors are described in greater detail in our Annual Report on Form 10-K for the year ended December 31, 2020 and in other filings we make with the SEC. Subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above and elsewhere in our reports filed with the SEC. We expressly disclaim any intent or obligation to update any forward-looking statements, except as may be required by law.

Item 3 – Quantitative and Qualitative Disclosures about Market Risk

Not applicable.

Item 4 – Controls and Procedures

Evaluation of Disclosure Controls and Procedures

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

Changes in Internal Control Over Financial Reporting

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

17

PART II – OTHER INFORMATION

Item 6 - Exhibits

Exhibit No.	Description of Exhibit
31.1	Rule 13a-14(a)/15d-14(a) Certification of acting principal financial officer. *
31.2	Rule 13a-14(a)/15d-14(a) Certification of acting principal executive officer. *
32.1	Section 1350 Certification. *
101.INS	Inline XBRL Instance Document *
101.SCH	Inline XBRL Taxonomy Extension Schema Document. *
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document. *
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document. *
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document. *
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document. *
104	Cover Page Interactive Data File (embedded within the Inline XBRL and contained in Exhibit 101) *

* Filed herewith

18

SIGNATURES

Pursuant to the requirements 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.
	By:
Date: August 13, 2021		/s/ Samuel Goldstein
		Samuel Goldstein
		Acting Principal Executive Officer
Date: August 13, 2021		/s/ Mark Raab
		Mark Raab
		Acting Principal Financial Officer and Acting Principal Accounting Officer

19

EX-31.1

EXHIBIT 31.1

Certification of Controller

(acting principal financial officer)

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

I, Mark Raab, certify that:

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

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

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

4.    The registrant’s other certifying officer 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 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: August 13, 2021

By:  /s/ Mark Raab

Mark Raab

Controller (acting principal financial officer)

EX-31.2

EXHIBIT 31.2

Certification of Director

(acting principal executive officer)

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

I, Samuel Goldstein, certify that:

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

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

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

4.    The registrant’s other certifying officer 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 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: August 13, 2021

By:  /s/ Samuel Goldstein

Samuel Goldstein

Director (acting principal executive officer)

EX-32.1

EXHIBIT 32.1

Section 1350 Certification

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (“Section 906”), Samuel Goldstein, Director (acting principal executive officer), and Mark Raab, Controller (acting principal financial officer) of Saker Aviation Services, Inc., does hereby certify that:

1. The Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 (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, as amended; 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:           August 13, 2021	By:	/s/ Samuel Goldstein
		Samuel Goldstein
		Director (acting principal executive officer)
Date:           August 13, 2021	By:	/s/ Mark Raab
		Mark Raab
		Controller (acting 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 - shares	6 Months Ended
	Jun. 30, 2021	Aug. 13, 2021
Document Information [Line Items]
Entity Central Index Key	0001128281
Entity Registrant Name	Saker Aviation Services, Inc.
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2021
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	000-52593
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	87-0617649
Entity Address, Address Line One	20 South Street, Pier 6 East River
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10004
City Area Code	212
Local Phone Number	776-4046
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		1,028,863

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
CURRENT ASSETS
Cash	$ 1,788,875	$ 1,899,082
Accounts receivable	276,142	262,101
Inventories	183,234	163,619
Income tax receivable	955,500	955,500
Employee Retention Tax Credit receivable	244,778
Prepaid expenses	187,780	257,629
Total current assets	3,636,309	3,537,931
PROPERTY AND EQUIPMENT, net of accumulated depreciation and amortization of $3,779,643 and $3,745,861, respectively	303,118	258,856
OTHER ASSETS
Deposits		2,512
Right of use assets	426,353	445,711
Goodwill	750,000	750,000
Total other assets	1,176,353	1,198,223
TOTAL ASSETS	5,115,780	4,995,010
CURRENT LIABILITIES
Accounts payable	105,037	62,021
Customer deposits	80,878	80,878
Accrued expenses	212,805	219,307
Note Payable	7,863	304,833
Right of use leases payable – current portion	44,484	43,306
Total current liabilities	451,067	710,345
LONG-TERM LIABILITIES
Note payable – less current portion	66,294
Right of use leases payable - less current portion	361,993	376,933
Total liabilities	879,354	1,087,278
STOCKHOLDERS’ EQUITY
Common stock - $0.03 par value; authorized 3,333,334; 1,028,863 shares issued and outstanding at each of June 30, 2021 and December 31, 2020	30,866	30,866
Additional paid-in capital	19,926,426	19,909,230
Accumulated deficit	(15,720,866)	(16,032,364)
TOTAL STOCKHOLDERS’ EQUITY	4,236,426	3,907,732
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 5,115,780	$ 4,995,010

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Accumulated Depreciation, Depletion and Amortization	$ 3,779,643	$ 3,745,861
Preferred stock, par value (in dollars per share)	$ 0.03	$ 0.03
Preferred stock, shares authorized (in shares)	333,306	333,306
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.03	$ 0.03
Common stock, shares authorized (in shares)	3,333,334	3,333,334
Common stock, shares issued (in shares)	1,028,863	1,028,863
Common stock, shares outstanding (in shares)	1,028,863	1,028,863

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
REVENUE	$ 1,179,064	$ 438,632	$ 1,988,160	$ 2,112,387
COST OF REVENUE	495,675	543,600	1,060,810	1,625,265
GROSS PROFIT (LOSS)	683,389	(104,968)	927,350	487,122
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	404,756	375,125	904,302	1,068,702
OPERATING INCOME (LOSS)	278,633	(480,093)	23,048	(581,580)
OTHER (INCOME) EXPENSE
IMPAIRMENT CHARGE		270,000		270,000
GAIN ON EXTINGUISHMENT OF DEBT	(304,833)		(304,833)
INTEREST INCOME		(6,217)		(12,793)
INTEREST EXPENSE	6,302	11,059	11,957	12,288
TOTAL OTHER (INCOME) EXPENSE, net	(298,531)	274,842	(292,876)	269,495
INCOME (LOSS) BEFORE INCOME TAX	577,164	(754,935)	315,924	(851,075)
INCOME TAX EXPENSE			4,426
NET INCOME (LOSS)	$ 577,164	$ (754,935)	$ 311,498	$ (851,075)
Basic Net Income (Loss) Per Common Share (in dollars per share)	$ 0.56	$ (0.74)	$ 0.30	$ (0.83)
Diluted Net Income (Loss) Per Common Share (in dollars per share)	$ 0.56	$ (0.73)	$ 0.30	$ (0.82)
Weighted Average Number of Common Shares – Basic (in shares)	1,028,863	1,023,129	1,028,863	1,023,744
Weighted Average Number of Common Shares - Diluted (in shares)	1,030,901	1,035,650	1,033,131	1,036,265

XML

Statement of Condensed Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance (in shares)	1,020,135
Balance (in shares) at Dec. 31, 2019	1,020,135
Balance at Dec. 31, 2019	$ 30,604	$ 19,818,637	$ (14,272,897)	$ 5,576,344
Issuance of additional Common Stock (in shares)	3,609
Issuance of additional Common Stock	$ 108	(108)		0
Amortization of stock based compensation		18,651		18,651
Net income (loss)			(96,140)	(96,140)
Balance (in shares) at Mar. 31, 2020	1,023,744
Balance at Mar. 31, 2020	$ 30,712	19,837,180	(14,369,037)	5,498,855
Balance (in shares) at Dec. 31, 2019	1,020,135
Balance at Dec. 31, 2019	$ 30,604	19,818,637	(14,272,897)	5,576,344
Net income (loss)				(851,075)
Balance (in shares) at Jun. 30, 2020	1,023,744
Balance at Jun. 30, 2020	$ 30,712	19,855,849	(15,123,972)	4,762,589
Balance (in shares)	1,023,744
Balance (in shares) at Mar. 31, 2020	1,023,744
Balance at Mar. 31, 2020	$ 30,712	19,837,180	(14,369,037)	5,498,855
Amortization of stock based compensation		18,669		18,669
Net income (loss)			(754,935)	(754,935)
Balance (in shares) at Jun. 30, 2020	1,023,744
Balance at Jun. 30, 2020	$ 30,712	19,855,849	(15,123,972)	4,762,589
Balance (in shares)	1,023,744
Balance (in shares)	1,028,863
Balance (in shares) at Dec. 31, 2020	1,028,863
Balance at Dec. 31, 2020	$ 30,866	19,909,230	(16,032,364)	3,907,732
Amortization of stock based compensation		8,598		8,598
Net income (loss)			(265,666)	(265,666)
Balance (in shares) at Mar. 31, 2021	1,028,863
Balance at Mar. 31, 2021	$ 30,866	19,917,828	(16,298,030)	3,650,664
Balance (in shares) at Dec. 31, 2020	1,028,863
Balance at Dec. 31, 2020	$ 30,866	19,909,230	(16,032,364)	3,907,732
Net income (loss)				311,498
Balance (in shares) at Jun. 30, 2021	1,028,863
Balance at Jun. 30, 2021	$ 30,866	19,926,426	(15,720,866)	4,236,426
Balance (in shares)	1,028,863
Balance (in shares) at Mar. 31, 2021	1,028,863
Balance at Mar. 31, 2021	$ 30,866	19,917,828	(16,298,030)	3,650,664
Amortization of stock based compensation		8,598		8,598
Net income (loss)			577,164	577,164
Balance (in shares) at Jun. 30, 2021	1,028,863
Balance at Jun. 30, 2021	$ 30,866	$ 19,926,426	$ (15,720,866)	$ 4,236,426
Balance (in shares)	1,028,863

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 577,164	$ 311,498	$ (851,075)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		53,140	65,668
Stock based compensation		17,196	37,320
Impairment charge			270,000
Changes in operating assets and liabilities:
Accounts receivable, trade		(14,041)	299,420
Inventories		(19,615)	45,697
Prepaid expenses and other current assets		(174,929)	(187,846)
Deposits		2,512	592
Accounts payable		43,016	(219,662)
Accrued expenses		(6,502)	(155,329)
TOTAL ADJUSTMENTS		(99,223)	155,860
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	212,275	212,275	(695,215)
CASH FLOWS USED IN INVESTING ACTIVITIES
Purchase of property and equipment		(78,044)	(4,912)
NET CASH USED IN INVESTING ACTIVITIES	(78,044)	(78,044)	(4,912)
CASH FLOWS USED IN FINANCING ACTIVITIES
Dividends paid			(255,937)
Extinguishment of debt		(304,833)
Issuance of notes payable		76,000
Repayment of right of use leases payable		(13,762)	(23,096)
Repayment of notes payable		(1,843)
NET CASH USED IN FINANCING ACTIVITIES	(244,438)	(244,438)	(279,033)
NET CHANGE IN CASH		(110,207)	(979,160)
CASH – Beginning		1,899,082	3,597,491
CASH – Ending	$ 1,788,875	1,788,875	2,618,331
NON-CASH OPERATING AND INVESTING ACTIVITIES:
Interest		11,957	12,288
Income taxes		$ 4,426	$ 28,079

XML

Note 1 - Basis of Presentation

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

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

NOTE 1 - Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of Saker Aviation Services, Inc. (the “Company”) and its subsidiaries have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial statements and in accordance with the instructions to Form 10-Q. Accordingly, they do not include all of the information and disclosures required by GAAP for annual financial statements and should be read in conjunction with the financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

The condensed consolidated balance sheet as of June 30, 2021 and the condensed consolidated statements of operations and cash flows for the three and six months ended June 30, 2021 and 2020 have been prepared by the Company without audit. In the opinion of the Company’s management, all necessary adjustments (consisting of normal recurring accruals) have been included to make the Company’s financial position as of June 30, 2021 and its results of operations and cash flows for the six months ended June 30, 2021 not misleading. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for any full year or any other interim period.

Throughout 2020 and 2021, the COVID-19 pandemic has impacted the global and United States economies. Federal, state, and local governments implemented certain travel restrictions, “stay-at-home” orders, and social distancing initiatives which negatively impacted our operations and those of our customers. As a result of the COVID-19 pandemic, on March 17, 2020 all sightseeing tour operations at the Downtown Manhattan Heliport ceased. On July 20, 2020, New York City started Phase 4 of the city’s reopening. Sightseeing tour operators at the heliport restarted operations under this phase. Sightseeing tour operators have experienced low demand and minimal activity since July 20, 2020, but our sightseeing tour operators have seen a slight uptick in demand in the second quarter of 2021 through the date of this report. To date, the COVID-19 pandemic has had a less substantial impact on our operations at our Kansas FBO and MRO. Although the Downtown Manhattan Heliport has been able to reopen and our Kansas FBO and MRO is operating, there can be no assurance that these facilities will be able to remain open for the foreseeable future, depending on future developments related to the COVID-19 pandemic.

In addition, the employee retention credit (“ERC”) is a refundable tax credit against certain employment taxes. The ERC was established under the CARES Act and amended by the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (the “Relief Act”) and the American Rescue Plan Act of 2021 (“ARPA”). Under the CARES Act, a company needed a more than 50% decline in gross receipts in 2020, compared to the same quarter in 2019, in order to use the gross receipts test to be eligible for the credit. The Company determined it qualified for the ERC for 2020.

The Relief Act provided for changes in the ERC for 2020 and provided an additional credit for the first and second quarters of 2021. The Relief Act revised the gross receipts test so a company that has had a more than 20% decline in gross receipts in 2021, compared to the same quarter in 2019, satisfies the gross receipts test. In addition, the Relief Act allows a company to elect to use the gross receipts from the immediately preceding quarter, and compare these prior quarter gross receipts to the same quarter in 2019, rather than the current quarter.

The Company evaluated its eligibility for the ERC for the first and second quarters of 2021. Under the aggregation rules of the Relief Act, the Company reviewed consolidated revenue when measuring the decline in gross receipts.  The Company determined it qualified for the ERC for the first and second quarter of 2021.  As a result, as of June 30, 2021 the Company recognized approximately $313,000 as a reduction of payroll tax expenses, in accordance with IAS 20, Accounting for Government Grants and Disclosure of Government Assistance

The ARPA extended the ERC to the third and fourth quarters of 2021. The Company expects to be eligible for the ERC for a similar amount at least through the third quarter of 2021.

XML

Note 2 - Liquidity and Material Agreements

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Going Concern Disclosure [Text Block]

NOTE 2 – Liquidity and Material Agreements

As of June 30, 2021, we had cash of $1,788,875 and a working capital surplus of $3,185,242. We generated revenue of $1,988,160 and had net income of $311,498 for the quarter ended June 30, 2021. For the quarter ended June 30, 2021, cash flows included net cash provided by operating activities of $212,275, net cash used in investing activities of $78,044, and net cash used in financing activities of $244,438.

As disclosed in a Current Report on Form 8-K filed on March 21, 2018 with the Securities and Exchange Commission (the “SEC”), on March 15, 2018 the Company entered into a loan agreement (the “Loan Agreement”) with Key Bank National Association (the “Bank”). The Loan Agreement contains three components: (i) a $2,500,000 acquisition line of credit (the “Key Bank Acquisition Note”); (ii) a $1,000,000 revolving line of credit (the “Key Bank Revolver Note”); and (iii) a $338,481 term loan (the “Key Bank Term Note”). There are currently no amounts outstanding under the Key Bank Term Note.

Proceeds of the Key Bank Acquisition Note were to be disbursed pursuant to a multiple draw demand note dated as of the agreement date, where the Company could, at the discretion of the Bank, borrow up to an aggregate amount of $2,500,000, to be used for the Company’s acquisition of one or more business entities. Until the Change of Terms Agreement, as defined below, the Company was required to make consecutive monthly payments of interest, calculated at a rate per annum equal to one-day LIBOR (adjusted daily) plus 2.75%, on any outstanding principal under the Key Bank Acquisition Note from the date of its issuance through September 15, 2018 (the “Conversion Date”).

At any time through and including the Conversion Date, at the Bank’s discretion, the Company had the opportunity to request that any loan made under the Key Bank Acquisition Note be converted into a term loan to be repaid in full, including accrued interest, by consecutive monthly payments over a 48 month amortization period beginning after the Conversion Date. For any loan that was not converted into a term loan on or before the Conversion Date, the Company would have been required to begin making monthly payments of principal and interest after the Conversion Date, over a 48 month amortization period, after which the remaining unpaid principal and accrued interest would have become due and payable. All loans under the Key Bank Acquisition Note would have, after the Conversion Date, accrued interest at a rate per annum equal to the Bank’s four year cost of funds rate plus 2.5%. As of the Conversion Date, there were no amounts due under the Key Bank Acquisition Note and no amounts had been converted to a term loan.

On October 11, 2018, and as subsequently amended, the Company entered into a new loan agreement with the Bank (as so amended, the “Change of Terms Agreement”) which modified the original terms of the Key Bank Acquisition Note. Under the Change of Terms Agreement, the Company could have continued to, at the discretion of the Bank, borrow up to an aggregate amount of $2,500,000 through September 1, 2021 (the “Maturity Date”), to be used for the Company’s acquisition of one or more business entities. The Change of Terms Agreement required the Company to make consecutive monthly payments of interest on any outstanding principal calculated at a rate per annum equal to 4.25% and was secured by substantially all of the Company’s assets. The entire principal balance, plus all accrued interest, was due in full on the Maturity Date. As of June 30, 2021, there were no amounts due under the Change of Terms Agreement. The Bank notified the Company of its decision to discontinue the Key Bank Acquisition Note, effective June 30, 2021. 

The Key Bank Revolver Note, at the discretion of the Bank, provides for the Company to borrow up to $1,000,000 for working capital and general corporate purposes. This revolving line of credit is a demand note with no stated maturity date. Borrowings under the Key Bank Revolver Note will bear interest at a rate per annum equal to one-day LIBOR (adjusted daily) plus 2.75%. The Company is required to make monthly payments of interest on any outstanding principal under the Key Bank Revolver Note and is required to pay the entire balance, including principal and all accrued and unpaid interest and fees, upon demand by the Bank. Any proceeds from the Key Bank Revolver Note would be secured by substantially all of the Company’s assets. As of June 30, 2021, there were no amounts due under the Key Bank Revolver Note.

On August 14, 2020, the Company was granted a loan from the Bank (the “Loan”) in the amount of $304,833, pursuant to the Paycheck Protection Program under Division, Title I of the CARES Act, which was enacted March 27, 2020. The Loan, which was in the form of a note dated August 14, 2020, matures in August 2025 and bore interest at a rate of 1% per annum and was payable in monthly installments commencing on, or before, October 31, 2021. At December 31, 2020, in accordance with FASB ASC 470, Debt, and ASC 405-20, Liabilities – Extinguishment of Liabilities, the Company recorded the cash inflow from the Loan as a liability, and cash flows from financing, pending legal release from the obligation by the U.S. Small Business Administration (“S.B.A.”). The Company used the Loan proceeds for eligible expenses during the covered period and the Loan was forgiven by the S.B.A. in full in the second quarter of 2021. The Company recorded the forgiveness of the Loan as a gain on extinguishment of debt.

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 any program year based on cash collected (“Gross Receipts”) and 25% of Gross Receipts in excess of $5,000,000, or minimum annual guaranteed payments.

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, the Company has not been allowed to permit its tenant operators to conduct tourist flights from the Downtown Manhattan Heliport on Sundays since April 1, 2016. The Company was also required to ensure that its 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. The Air Tour Agreement also provided for 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. Additionally, beginning 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 Concession Agreement for 30 months, resulting in a new expiration date of April 30, 2021 and gave the City of New York two one-year options to extend the term of the Concession Agreement. The term of the Concession Agreement was subsequently extended by the City through April 30, 2022 by the City’s exercise of the first of their two one-year option renewals.

The reductions under the Air Tour Agreement have negatively impacted the Company’s business and financial results as well as those of its management company at the Heliport, Empire Aviation which, as previously disclosed, is owned by the children of a former officer and director of the Company.  The Company incurred management fees with Empire Aviation of approximately $0 and $130,000 during the six months ended June 30, 2021 and 2020, respectively, which is recorded in administrative expenses. The Company and Empire Aviation had historically 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.  The Company has suspended its contributions to HTJC in light of the pandemic. The Company’s former officer and director is also an active participant with HTJC, which is managed by the former officer and director’s grandson. One of our Directors and our current acting principal executive officer, Sam Goldstein, serves as deputy director of HTJC.  

During the program year that began on May 1, 2020, the City agreed, in recognition of the pandemic’s impact, that the Company could defer payment of minimum guaranteed payments. In April 2021, the City waived the deferred fees through December 31, 2020. In May 2021, the City waived the deferred fees through April 30, 2021 which coincided with the expiration of the Concession Agreement as amended by the Air Tour Agreement. The City is currently working toward obtaining approval of an amendment to the Air Tour Agreement relative to fees to be paid by the Company to the City during the one year extension period, among other things. Concession fees in this Form 10-Q have been accounted for based on the months abated and the Company’s commitment to pay the City 18% of monthly Gross Receipts in excess of $100,000 during the amendment approval process. During the six months ended June 30, 2021 and 2020, we incurred approximately $28,000 and $254,000 in concession fees, respectively, which are recorded in the cost of revenue.

On April 20, 2018, the Company’s Kansas subsidiary entered into a purchase lease with Commerce Bank for a refueling truck (the “Truck Lease”). The Truck Lease commenced on May 1, 2018 and continues for 60 months at an interest rate of LIBOR plus 416 basis points. At the end of the Truck Lease, the Company’s subsidiary may purchase the vehicle for $1.00.

On January 15, 2019, the Company was issued an unsecured note by one of its customers at the Heliport. The note schedules payments of approximately $276,000 in receivables payable by such customer, had a maturity date of October 31, 2019, as amended, and carries a 7.5% rate of interest. The note payments were to be made in six monthly installments beginning May 31, 2019. The customer’s payments on the note have not met the installment plan and the Company was working on changes to the note when the customer filed for Chapter 11 Bankruptcy in October 2019. In February 2021, the bankruptcy court allowed the customer to convert from a Chapter 11 Bankruptcy to a Chapter 7 Liquidation. Under the Chapter 7 Liquidation, the note will now be treated as a general unsecured claim as opposed to a prioritized payment under the Chapter 11 Bankruptcy to cure the permit default. This change has substantially diminished the Company’s expectation to collect amounts due under the note. Therefore, the Company deemed unpaid principal and accrued interest of approximately $205,000 at December 31, 2020 as uncollectable. The $205,000 was written off to bad debt expense in the fourth quarter of 2020.

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, Phoenix Rising Aviation, Inc. The details of the agreement are described in such Current Report as well as in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, which was filed with the SEC on April 11, 2016. The Company received $100,000 due under this agreement in September 2017 and an additional payment of $100,000 in September 2018. In 2019, the Company accepted the title to a Falcon 10 aircraft owned by Mr. Peck as satisfaction in full of the remainder of the $270,000 stock purchase price. The Company intended to sell the aircraft and classified it as “Held For Sale” on the Company’s consolidated balance sheet at December 31. 2019. The Company has been unable to find a buyer due to a depressed market as well as a drop in demand for this type of aircraft. Without a market in which to sell the aircraft, the Company recorded an impairment charge in the quarter ended June 30, 2020 for the full carrying amount of the aircraft. The Company does not believe the aircraft has any value and, in December 2020, filed an application with the FAA Aircraft Registry to cancel the aircraft’s registry.

On May 1, 2021, the Company’s Kansas subsidiary executed a promissory note for $76,000 with Avfuel Corporation (“Avfuel”) for the purchase of a Jet-A refueling truck (the “Truck Note”). The Truck Note requires six annual payments of $13,432.56 commencing April 30, 2022 with the entire balance of unpaid principal and interest due on, or before, April 30, 2028. Interest accrues at prime plus 3% on the outstanding principal amount. The Company is required to make prepayments against the Truck Note at the rate of $0.018 per gallon of fuel purchased under a fuel supply agreement between the Company and Avfuel.

As described throughout this Quarterly Report on Form 10-Q, on March 17, 2020, all sightseeing tour operations at the Downtown Manhattan Heliport ceased as a result of the COVID-19 pandemic. On July 20, 2020, New York City began Phase 4 of the city’s reopening. Sightseeing tours resumed under this phase. Sightseeing tour operators have experienced low demand and minimal activity since July 20, 2020, but sightseeing tour operators have seen a slight uptick in demand in the second quarter of 2021 through the date of this report. To mitigate this loss of revenue, we may need additional financing to continue operations through the issuance of equity or debt and any such financing will be dependent on general market conditions, which itself is subject to the effects of the COVID-19 pandemic. Although we have access to the Key Bank Revolver Note described above, we can make no assurance that that the Key Bank Revolver Note will be sufficient to fund our operations. Additionally, certain restrictions in the Key Bank Revolver Note may prohibit us from obtaining more attractive financing.

XML

Note 3 - Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Significant Accounting Policies [Text Block]

NOTE 3 - Summary of Significant Accounting Policies

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, FirstFlight Heliports, LLC, and its fixed base operation and aircraft maintenance and repair services at Garden City (Kansas) Regional Airport. All significant inter-company accounts and transactions have been eliminated in consolidation.

Net Income (Loss) Per Common Share

Net income (loss) was $311,498 and $(851,075) for the six months ended June 30, 2021 and 2020, respectively. Basic net income and net loss per share applicable to common stockholders is computed based on the weighted average number of shares of the Company’s common stock outstanding during the periods presented. Diluted net loss per share reflects the potential dilution that could occur if securities or other instruments to issue common stock were exercised or converted into common stock. Potentially dilutive securities, consisting of options and warrants, are excluded from the calculation of the diluted income per share when their exercise prices were greater than the average market price of the common stock during the period. 

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

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2021		2020		2021		2020
Weighted average common shares outstanding, basic		1,028,863		1,023,129		1,028,863		1,023,744
Common shares upon exercise of options and warrants		2,038		12,521		4,268		12,521
Weighted average common shares outstanding, diluted		1,030,901		1,035,650		1,033,131		1,036,265

Stock-Based Compensation

Stock-based compensation expense for all stock-based payment awards are based on the estimated grant-date fair value. The Company recognizes these compensation expenses over the requisite service period of the award, which is generally the option vesting term. For the six months ended June 30, 2021 and 2020, the Company incurred stock-based compensation of $17,196 and $37,320, respectively. 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 June 30, 2021, the unamortized fair value of the options totaled $17,200 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.

Recently Adopted Accounting Pronouncements

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 became effective for us on January 1, 2019 and we have adopted the new standard using a modified retrospective approach. The adoption of ASU No. 2016-02 did not have a material impact on the Company’s financial statements.

XML

Note 4 - Inventories

6 Months Ended

Jun. 30, 2021

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, Inc. 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:

	June 30, 2021		December 31, 2020
Parts inventory	$	96,117	$	92,481
Fuel inventory		72,400		59,336
Other inventory		14,717		11,802
Total inventory	$	183,234	$	163,619

Included in fuel inventory are amounts held for third parties of $39,023 and $30,904 as of June 30, 2021 and December 31, 2020, respectively, with an offsetting liability included as part of accrued expenses.

XML

Note 5 - Related Parties

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

NOTE 5 – 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 quarters ended March 31, 2021 and 2020, no services were provided to the Company by Wachtel & Missry, LLP.

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

XML

Note 6 - Litigation

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Legal Matters and Contingencies [Text Block]

NOTE 6 – 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 7 - Dividend Payable

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Dividends Payable Disclosures [Text Block]

NOTE 7 – Dividend Payable

On September 30, 2019, the Company announced that its Board of Directors had declared a special cash dividend of $0.50 per share (the “Dividend”). The Dividend was paid in equal quarterly installments of $0.125 per share beginning on November 1, 2019, with the final dividend paid on August 13, 2020. The accrued dividend payment amounted to $373,370 at December 31, 2019. The declaration and payment of any future dividend will be at the sole discretion of the Board of Directors.

XML

Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, FirstFlight Heliports, LLC, and its fixed base operation and aircraft maintenance and repair services at Garden City (Kansas) Regional Airport. All significant inter-company accounts and transactions have been eliminated in consolidation.

Earnings Per Share, Policy [Policy Text Block]

Net Income (Loss) Per Common Share

Net income (loss) was $311,498 and $(851,075) for the six months ended June 30, 2021 and 2020, respectively. Basic net income and net loss per share applicable to common stockholders is computed based on the weighted average number of shares of the Company’s common stock outstanding during the periods presented. Diluted net loss per share reflects the potential dilution that could occur if securities or other instruments to issue common stock were exercised or converted into common stock. Potentially dilutive securities, consisting of options and warrants, are excluded from the calculation of the diluted income per share when their exercise prices were greater than the average market price of the common stock during the period. 

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

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2021		2020		2021		2020
Weighted average common shares outstanding, basic		1,028,863		1,023,129		1,028,863		1,023,744
Common shares upon exercise of options and warrants		2,038		12,521		4,268		12,521
Weighted average common shares outstanding, diluted		1,030,901		1,035,650		1,033,131		1,036,265

Share-based Payment Arrangement [Policy Text Block]

Stock-Based Compensation

Stock-based compensation expense for all stock-based payment awards are based on the estimated grant-date fair value. The Company recognizes these compensation expenses over the requisite service period of the award, which is generally the option vesting term. For the six months ended June 30, 2021 and 2020, the Company incurred stock-based compensation of $17,196 and $37,320, respectively. 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 June 30, 2021, the unamortized fair value of the options totaled $17,200 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.

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Adopted Accounting Pronouncements

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 became effective for us on January 1, 2019 and we have adopted the new standard using a modified retrospective approach. The adoption of ASU No. 2016-02 did not have a material impact on the Company’s financial statements.

XML

Note 3 - Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2021

Notes Tables

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

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2021		2020		2021		2020
Weighted average common shares outstanding, basic		1,028,863		1,023,129		1,028,863		1,023,744
Common shares upon exercise of options and warrants		2,038		12,521		4,268		12,521
Weighted average common shares outstanding, diluted		1,030,901		1,035,650		1,033,131		1,036,265

XML

Note 4 - Inventories (Tables)

6 Months Ended

Jun. 30, 2021

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	June 30, 2021		December 31, 2020
Parts inventory	$	96,117	$	92,481
Fuel inventory		72,400		59,336
Other inventory		14,717		11,802
Total inventory	$	183,234	$	163,619

XML

Note 1 - Basis of Presentation (Details Textual)	6 Months Ended
	Jun. 30, 2021 USD ($)
Increase (Decrease) in Employee Related Liabilities, Total	$ (313,000)

XML

Note 2 - Liquidity and Material Agreements (Details Textual)						1 Months Ended		3 Months Ended					6 Months Ended		9 Months Ended	12 Months Ended
	May 01, 2021 USD ($)	Aug. 14, 2020 USD ($)	Oct. 11, 2018 USD ($)	Jan. 01, 2017	Nov. 01, 2008 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Sep. 15, 2018	Dec. 31, 2020 USD ($)	Dec. 31, 2015	Apr. 30, 2028 USD ($)	Dec. 31, 2019 USD ($)	Jan. 15, 2019 USD ($)	Apr. 20, 2018 USD ($)	Mar. 15, 2018 USD ($)	May 17, 2013 USD ($)
Cash and Cash Equivalents, at Carrying Value, Ending Balance								$ 1,788,875					$ 1,788,875
Working Capital								3,185,242					3,185,242
Revenue from Contract with Customer, Including Assessed Tax								1,179,064			$ 438,632		1,988,160	$ 2,112,387
Net Income (Loss) Attributable to Parent, Total								577,164	$ (265,666)		$ (754,935)	$ (96,140)	311,498	(851,075)
Net Cash Provided by (Used in) Operating Activities, Total								212,275					212,275	(695,215)
Net Cash Provided by (Used in) Investing Activities, Total								(78,044)					(78,044)	(4,912)
Net Cash Provided by (Used in) Financing Activities, Total								$ (244,438)					(244,438)	(279,033)
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, Total													0	130,000
Concession Fees													$ 28,000	$ 254,000
Financing Receivable, after Allowance for Credit Loss, Total																				$ 276,000
Financing Receivable, Interest Rate																				7.50%
Financing Receivable, Allowance for Credit Loss, Writeoff										$ 205,000						$ 205,000
Warren A. Peck [Member]
Proceeds from Collection of Notes Receivable						$ 100,000	$ 100,000
Financing Receivable, after Allowance for Credit Loss, Current, Total																			$ 270,000
Truck Lease [Member]
Lessee, Finance Lease, Term of Contract (Month)																					60 months
Capital Lease, Lessee, Purchase Price of Capital Leased Asset																					$ 1.00
Concession Agreement [Member]
Percentage Payable Greater than Gross Receipts During Period					18.00%								18.00%
Amount of Gross Receipts During Period					$ 5,000,000								$ 100,000
Percentage Payable Greater than Gross Receipts in Year One					25.00%
Minimum Annual Guarantee Percent				50.00%
Line of Credit Facility, Payment Term (Month)																	30 months
Line of Credit Facility, Number of Options to Extend Agreement																	2
Paycheck Protection Program CARES Act [Member]
Proceeds from Issuance of Long-term Debt, Total		$ 304,833
Truck Note [Member]
Debt Instrument, Face Amount	$ 76,000
Debt Instrument, Number of Annual Payments	6
Debt Instrument, Periodic Payment, Interest	$ 13,432.56
Debt Instrument Interest Rate, Per Gallon																		$ 0.018
London Interbank Offered Rate (LIBOR) [Member] | Truck Lease [Member]
Capital Leases of Lessee, Contingent Rentals, Basis Spread on Variable Rate																					4.16%
Prime Rate [Member] | Truck Note [Member]
Debt Instrument, Basis Spread on Variable Rate	3.00%
Key Bank National Association [Member] | Term Loan [Member]
Debt Instrument, Face Amount																						$ 338,481
Long-term Debt, Current Maturities, Total									0
Acquisition Line of Credit [Member] | Key Bank National Association [Member]
Line of Credit Facility, Maximum Borrowing Capacity																						2,500,000
Debt Instrument, Term (Month)															48 months
Debt Instrument, Periodic Payment, Total									$ 0
Acquisition Line of Credit [Member] | Key Bank National Association [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate															2.75%
Acquisition Line of Credit [Member] | Key Bank National Association [Member] | Cost of Funds Rate [Member]
Debt Instrument, Basis Spread on Variable Rate									2.50%
Working Capital Line of Credit [Member] | Key Bank National Association [Member]
Line of Credit Facility, Maximum Borrowing Capacity																						$ 1,000,000
Debt Instrument, Periodic Payment, Total									$ 0
Working Capital Line of Credit [Member] | Key Bank National Association [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate									2.75%
PNC Acquisition Line [Member]
Line of Credit Facility, Maximum Borrowing Capacity																							$ 2,500,000
Change of Terms Agreement [Member] | Key Bank National Association [Member]
Line of Credit Facility, Maximum Borrowing Capacity			$ 2,500,000
Debt Instrument, Periodic Payment, Total									$ 0
Change of Terms Agreement [Member] | Key Bank National Association [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate			4.25%

XML

Note 3 - Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Net Income (Loss) Attributable to Parent, Total	$ 577,164	$ (265,666)	$ (754,935)	$ (96,140)	$ 311,498	$ (851,075)
Share-based Payment Arrangement, Noncash Expense, Total					17,196	$ 37,320
Shares Based Compensation, Stock Options Unamortized Fair Value					$ 17,200
Share-based Compensation, Weighted Average Remaining Amortization Period (Year)					5 years

XML

Note 3 - Summary of Significant Accounting Policies - Computation of Basic Net Income Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Weighted average common shares outstanding, basic (in shares)	1,028,863	1,023,129	1,028,863	1,023,744
Common shares upon exercise of options and warrants (in shares)	2,038	12,521	4,268	12,521
Weighted average common shares outstanding, diluted (in shares)	1,030,901	1,035,650	1,033,131	1,036,265

XML

Note 4 - Inventories (Details Textual) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Fuel [Member]
Inventory Third Party	$ 39,023	$ 30,904

XML

Note 4 - Inventories - Summary of Inventory (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Inventories	$ 183,234	$ 163,619
Parts [Member]
Inventories	96,117	92,481
Fuel [Member]
Inventories	72,400	59,336
Other Inventory [Member]
Inventories	$ 14,717	$ 11,802

XML

Note 7 - Dividend Payable (Details Textual) - USD ($)	Sep. 30, 2019	Dec. 31, 2019	Nov. 01, 2019
Common Stock, Dividends, Per Share, Declared (in dollars per share)	$ 0.50
Dividends, Per Share to be Paid in Equal Quarterly Installments (in dollars per share)			$ 0.125
Dividends Payable		$ 373,370