BALTIA AIR LINES, INC. (OTCMKTS:BLTA) Files An 8-K Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
Item 4.02 Non-Reliance on Previously Issued Financial Statements
or a Related Audit Report or Completed Interim Review
On June 19, 2017, the Board of Directors (the Board) of the
Baltia Air Lines, Inc. dba USGlobal Airways (the Company)
concluded that the audited financial statements for the fiscal
year ended December 31, 2015 (the Relevant Period), as previously
filed as part of the Companys Annual Report on Form 10-K on April
14, 2016, should no longer be relied upon. Upon transitioning its
management team in late 2016, the Company undertook a review of
its corporate and financial reporting processes and related
activities of the Company. Through this process, Company
management became aware of an engine lease agreement the Company
entered into with Logistic Air, Inc. (Logistic), dated as of
January 15, 2010 (the Agreement), to which the Company
purportedly had ongoing payment obligations for the lease of
airplane engines. The Company and its previous independent
auditors failed to account for the payments purportedly due to
Logistic under the Agreement in its contingent liabilities in the
financial statements for the Relevant Period.
Logistic has made a demand for payment of outstanding payables in
the amount of $8,850,000. As of the date hereof, and while not in
any manner accepting the validity of Logistics claim, the Company
is in settlement negotiations with Logistic regarding such
payment.
The Company has concluded to restate its financial statements for
the Relevant Period to correct the above identified accounting
and disclosure errors. The Company and its advisors are working
expeditiously to complete this review and the Company intends to
bring current its financial reporting obligations as soon as
practicable.
About BALTIA AIR LINES, INC. (OTCMKTS:BLTA)
Baltia Air Lines, Inc. (Baltia) is a development-stage company. The Company provides scheduled air transportation from the United States to Russia, the Baltic States and the Ukraine. Baltia is in Phase III of the FAA Air Carrier Certification. The Company has two trademarks: Baltia and Voyager Class. Baltia intends to commence scheduled non-stop service from its Base of Operations at Terminal 4, JFK Int’l Airport in New York to Pulkovo II Int’l Airport of St. Petersburg. The Company intends to provide nonstop passenger, cargo and mail service from JFK to St. Petersburg and from JFK to Riga, with online service to Minsk, Kiev and Tbilisi, as well as back up service to Moscow. It intends to operate as a Part 121 carrier, a heavy jet operator. Baltia intends to start the JFK-St. Petersburg service with one round-trip flight per week, then increase the frequency to over three round trips, and then to approximately five round trips.
