Baltia Air Lines Inc. (fka BLTA)

[Carsmax177]

Thanks for the information flaflyersfan.

I believe the subscription agreements referred to in the letter regarding the 10K refer to the actual agreement between investor and BLTA that says they are purchasing X many shares at X price. Similar to a sales agreement.

IMO, Investors are referred to as subscribers and the agreement is for a one time sale.

A template for such agreement here: http://www.entrepreneur.com/formnet/form/1094

A basic definition of a stock subscriber agreement here: https://www.rocketlawyer.com/document/subscription-agreement.rl

IMO, if these subscription agreements were for a longer period of time, there would be evidence in the financial statements. If this were the case, there would be a receivable created when this occurred being this agreement would span multiple accounting periods, and would be for the total amount that is to be purchased (with subsequent transactions when money was paid in return for shares). Looking at the financial statements, there is no reference to such receivables being created, as well as in the notes or financial statements. This leads me to believe that when these agreements were written out, they were for one-time sales.


Additionally, in the quarterly report for period ending 6/30/12, BLTA says that:

During the six months ended June 30, 2012 we issued 80,043,000 shares of our common stock in exchange for cash. The shares sold for cash were subscribed at $ 2,526,000 or about $0.031 weighted average per share.

Additionally, from the basic definition link referenced above comes the following quote:

If you're a private investor in a company, you're known as a subscriber. A Subscription Agreement is a promise by the company to sell a given number of shares to an investor at a certain price, and an agreement by the investor to pay that price. If you own a company and have promised to sell a certain amount of stocks to an investor at a specific price, you should nail down the details with a Subscription Agreement.

This leads me to believe that the subscription agreement referenced does not refer to long term contracts for investors to purchase shares at certain times, but to the actual agreement for each sale that outlined the terms of each transaction.

IMO