UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K/A

Amendment No. 1

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended:  October 31, 2009

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 000-27011

ALPINE AIR EXPRESS, INC.

(Exact Name of registrant as specified  in its Charter)

Delaware	33-0619518
(State or other Jurisdiction of Incorporation or organization)	(I.R.S. Employer Identification No.)

1177 Alpine Air Way

Provo, UT 84601

 (Address of Principal Executive Offices)

(801) 373-1508

(Registrant’s Telephone Number, including area code)

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

Securities registered pursuant to Section 12(g) of the Act: Common Stock, par value $0.001

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [  ] No [X]

Indicate by check mark if  the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act. Yes [  ]   No [X]

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.

(1) Yes [X] No [  ]     (2) Yes [X] No [  ]

Indicate by check mark if disclosure of delinquent filers pursuant to item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ X ]

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company:

Large accelerated filer       [   ]	Accelerated filer                      [   ]
Non-accelerated filer         [   ]	Smaller reporting company    [X]

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

Yes [  ] No [X]

State the aggregate market value of the voting and non-voting common stock held by non-affiliates computed by reference to the price at which the common stock was last sold, or the average bid and asked price of such common stock, as of the last business day of the Registrant's most recently completed second fiscal quarter.

April 30, 2009 - $1,058,599  There are approximately 7,057,327 shares of common voting stock of the Registrant beneficially owned by non-affiliates.  There is a limited public market for the common stock of the Registrant, so this computation is based upon the bid price of $0.15 per share of the Registrant's common stock on the OTC Bulletin Board as of April 30, 2009.

APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Not applicable.

Indicate the number of shares outstanding of each of the registrant’s classes of common equity, as of the latest practicable date:

January 29, 2010:  Common – 36,271,461

January 29, 2010:  Preferred – 820,000

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EXPLANATORY NOTE

Alpine Air Express (the “Company) is filing this Amendment to its Form 10-K for the fiscal year ended October 31, 2009, which was originally filed  with the Securities and Exchange Commission on January 29, 2010.

     This Form 10-K/A amends and restates its Report of Independent Registered Public Accounting Firm, all Consolidated Financial Statements, and Notes to Consolidated Financial Statements for the fiscal years ended October 31, 2008 and October 31, 2009.  This amendment reclassifies preferred stock shares outside of stockholders’ equity as a mezzanine item on the Balance Sheet and removes preferred stock shares from the Consolidated Statement of Stockholders’ Equity. Note 11-Preferred Shares summarizes preferred stock and this amendment also adds a restatement footnote as Note 18 to the financial statements. Item 1-Description of Business, Item 2-Description of Properties, Item 7-Management Discussion and Analysis of Financial Condition and Results of Operations, Note 1-Summary of Accounting Policies, Note 7-Related Party Transactions, Item 9A(T)-Controls and Procedures, and Item 10-Directors and Executive Officers, Promoters, and Control Persons have included further information. No other information included in the original Form 10-K is amended herein.

PART I

ITEM 1. DESCRIPTION OF BUSINESS

Background.

     Alpine Air Express, Inc., a Delaware corporation ("Alpine Air"), is engaged in the air cargo business through its wholly owned subsidiary, Alpine Aviation, Inc., a Utah corporation ("Alpine Aviation" or “Alpine”).  Alpine Aviation was organized on October 7, 1975, in the state of Utah.  Alpine Aviation has been operated by the same management since 1986.  Alpine Aviation is an air cargo operator, transporting mail packages and other time-sensitive cargo to 19 cities in the western portion of the mainland United States. Alpine Aviation began its operations in the 1970's with the intent of being a regional charter and cargo carrier.  After present management acquired control in 1986, Alpine Aviation began to focus less on the charter or passenger services and more on the cargo aspects of the airline industry.  Since the 1990's, Alpine Aviation has focused on hauling mail for the United States Postal Service (USPS) and carrying packages for a large nationwide carrier because of their favorable contracts, routes and payment practices.  As a result of this focus, approximately 87% of Alpine Aviation's revenues now come directly from these two customers.

     Alpine Air Express was formed in April, 1994, under the name "Riverside Ventures, Inc."  Prior to its acquisition of Alpine Aviation in June, 2000, Alpine Air Express had no business operations and was actively looking for a business with which to merge or acquire in an effort to create an operation that would provide value to our shareholders.

     On June 12, 2000, Alpine Air Express, under its former name, entered into an agreement and plan of reorganization with Alpine Aviation, pursuant to which Alpine Air acquired all of the outstanding shares of Alpine Aviation. Pursuant to the terms of the reorganization, Alpine Air Express issued 9,895,000 shares of its common stock to the stockholders of Alpine Aviation in exchange for all of the issued and outstanding shares of Alpine Aviation.  As a result of the reorganization, Alpine Aviation became a wholly owned subsidiary of Alpine Air Express.  As a further result of the reorganization, the management of Alpine Aviation assumed control over Riverside Ventures and changed the company's name from "Riverside Ventures, Inc." to the current name of "Alpine Air Express, Inc."  The reorganization has been treated as a "reverse merger," with Alpine Aviation as the surviving entity for accounting purposes and Alpine Air the surviving entity for corporate purposes. At the time of the reorganization, Alpine Air Express had 1,000,000 shares of common stock outstanding.  Following the reorganization, Alpine Air had 10,895,000 shares outstanding, which was composed of the 1,000,000 shares outstanding prior to the issuance of shares for Alpine Aviation and the 9,895,000 newly issued shares to the Alpine Aviation stockholders.  Alpine Air subsequently issued an additional 105,000 shares, bringing the total outstanding shares to 11,000,000 as of 2003. During 2004 and 2005 the Company issued 122,000 shares, bringing the total outstanding shares to 11,122,000 at 2005.  In 2006, we effected a 3 for 1 stock split and issued additional shares for compensation during 2006 resulting in a total of 36,271,461 outstanding shares at both October 31, 2006 and 2007.

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During 2009 the Company purchased 70,660 shares to hold as Treasury Stock bringing the total shares outstanding to 36,130,141.

Routes and Delivery.

     Alpine Aviation currently has 25 air cargo routes covering 19 cities in six western states in the mainland U.S. Alpine also provides contract cargo charter flights for other carriers and for the public.  Most routes are flown every day and some multiple times per day.  In fiscal 2009, Alpine Aviation transported 9,673 tons of cargo.  The largest component of Alpine Aviation's cargo mix is U.S. mail, which accounted for approximately 66% of our fiscal 2009 revenue. The USPS delivers and picks up all cargo we carry at the aircraft, unless other arrangements are called for separately by the contract.  When the USPS delivers and picks up the mail at the side of our aircraft, we are able to reduce our costs significantly.

     

     Alpine currently operates 26 aircraft on one national certificate.  The largest aircraft in our fleet is a Beechcraft 1900, which holds approximately 6,000 pounds of cargo.  Our other aircraft type is the Beechcraft 99, which holds approximately 3,400 pounds of cargo. The Company also owns 2 Beechcraft 1900-D aircraft (passenger configuration) and currently leases them on an annual lease basis.

Industry overview.

     The package delivery and air cargo business has evolved rapidly over the last two decades, driven by the integration of world markets, the rationalization of corporate supply chains and the implementation of enterprise software and internet-based information technology solutions. The ability to provide time-definite delivery options and transfer information increasingly determines success.  Customer demands for real-time information processing and worldwide distribution and logistics capabilities favor companies with integrated services.

     Customers increasingly focus on the timing and predictability of deliveries rather than the mode of transportation. As customers re-engineer the total distribution process, which includes order processing, administration, warehousing, transportation and inventory management, they attempt to reduce the most expensive and fastest growing component, inventory carrying costs. Time-definite transportation, which is no longer limited to air express, has become a critical part of just-in-time inventory management and improving overall distribution efficiency.

     Technology advances have made it easier for companies to analyze and compare distribution options.  As a result of these changes, individual shipments are generally smaller but more frequent and a greater proportion of products are being delivered directly to end-users, particularly as e-commerce takes hold.  Customers expect high performance levels and broad product offerings as they seek to optimize supply chain solutions.

 

    There has been dramatic growth in the utilization of e-commerce by both consumers and businesses for the transfer of goods.  Consumers who use the internet for home shopping and other services shop across borders and require global delivery capabilities.

     Delivery of packages to a specific destination at a guaranteed time has been the growth engine for the package delivery industry over the past decade. The industry has become increasingly dominated by large integrated carriers such as UPS and FedEx that provide seamless services, including pick-up and delivery, shipment via air and/or road transport and customs clearance. The pace of consolidation in the package delivery industry has increased on a global scale.

     Industry participants are acquiring, merging with or forming alliances with partners that can expand global reach, breadth of services or technological capabilities in order to better enable those participants to compete in a rapidly changing global environment.  In particular, government-run post offices have made several recent alliances with and acquisitions of private-sector companies.  Post offices, which still maintain numerous advantages over private-sector companies, create significant challenges for competitors worldwide.

     With the growth in cargo and e-commerce taking a greater hold, we feel the need for companies like Alpine Air will only continue to expand.  We offer the ability to deliver mail and cargo to smaller markets without many of the associated capital costs.

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Employees.

     Alpine Air has 107 employees, 56 of which are full time, including 9 in administration and 55 in flight operations, which includes 22 pilots.  No employees belong to any labor union or have employment contracts.

ITEM 1A. RISK FACTORS

     Not applicable to smaller reporting companies.

ITEM 1B. UNRESOLVED STAFF COMMENTS

     Not applicable to smaller reporting companies.

ITEM 2. DESCRIPTION OF PROPERTIES

     Alpine Air is headquartered in its owned facility located in Provo, Utah.  This facility is on leased property at the Provo Municipal Airport. Our hangar consists of approximately 25,000 square feet with attached corporate offices. The hangar and offices have been valued at a cost of approximately $1,200,000.

     The company also leases a 10,403 square foot hangar and a separate maintenance facility in Billings, Montana at the Logan International Airport and has permits to lease and use hangar and office space with the State of Hawaii, Department of Transportation.

     We carry extensive insurance coverage on all facilities as well as aircraft.  Management believes our insurance coverage is adequate to cover any damage to our facilities or aircraft and any resulting liabilities.  

     Alpine Air operates the following aircraft:

Aircraft Model: All Aircraft are Manufactured by Beechcraft	Number of aircraft	Location	Owned/Note Payable/Capital Lease
99	4	Utah, Montana	Owned
99	4	Montana	Note Payable
99	4	South Dakota, Utah, Montana	Capital Lease
1900	7	South Dakota, North Dakota, Montana, Utah, Bahamas	Owned
1900	3	South Dakota, Montana, Utah	Note Payable
1900	4	North Dakota, Montana	Capital Lease

     All aircraft are in working condition and alternately either in maintenance or assigned to a scheduled route.

ITEM 3. LEGAL PROCEEDINGS

There are two claims pending against the Alpine Air by the FAA from the FAA Regional Office in Renton, Washington.  One claim alleges that contract ramp personnel were allowed to load Alpine Air aircraft even though they had not completed Alpine Air’s hazardous materials training program. The FAA has proposed a civil penalty in the amount of $5,000 and Alpine Air is vigorously contesting the claim. The second FAA claim alleges violations of maintenance requirements for an airplane based in Hawaii during the period of January to February 2009. The FAA has proposed a civil penalty in the amount of $228,250 and Alpine Air is vigorously contesting the claim. The Company believes there is no good faith basis for the amount of either of the claims.

 

Alpine Air is also contesting a claim made by the State of Hawaii, Department of Transportation, Airports Division, for alleged past due landing fees for the period of April 2004 through 2009 in the amount of $331,584. The claim was not presented to Alpine Air until 2008 and the Company immediately contested the claimed amount. Alpine Air is in the process of concluding a negotiated settlement of the claim for the total sum of $90,000 and the final settlement agreement should be signed within the month.

     Alpine Air Express has evaluated events for the period October 31, 2009 through January 29, 2010, the date the financial statements were issued, and concluded there were no other events or transactions during this period that required recognition or disclosure.

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ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS

     Not applicable; no matter was submitted to a vote of security holders during the fourth quarter of the fiscal year covered by this Annual Report.

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PART II

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

     Alpine Air's common stock is currently quoted on the National Association of Securities Dealers Electronic Bulletin Board under the symbol "APNX". Set forth below are the high and low closing bid prices for our common stock for each quarter during our two most recent fiscal years.  These bid prices were obtained from Yahoo Finance (available on the internet). All prices listed herein reflect inter-dealer prices, without retail mark-up, mark-down or commissions and may not represent actual transactions.

Quarter Ended	High Bid	Low Bid
January 31, 2008	$0.40	$0.35
April 30, 2008	$0.55	$0.50
July 31, 2008	$0.30	$0.30
October 31, 2008	$0.07	$0.05
January 31, 2009	$0.30	$0.10
April 30, 2009	$0.22	$0.15
July 31, 2009	$0.15	$0.08
October 31, 2009	$0.20	$0.16

     We cannot guarantee that the present market for our common stock will continue or be maintained, and the resale of "unregistered" and "restricted" shares pursuant to Rule 144 of the Securities and Exchange Commission may substantially reduce the market price of our common stock.

Holders.

     As of January 29, 2010, there were 36,130,141 post split shares of common stock outstanding held by approximately 443 active holders of record, including broker-dealers and clearing corporations holding shares on behalf of their customers, as reported by the Company's transfer agent.  This figure does not include an indeterminate number of stockholders who may hold their shares in street name.

Dividends.

     Since its inception, Alpine Air has paid no dividends on its common stock, and we do not anticipate that we will pay any dividends in the foreseeable future.

Securities Authorized for Issuance Under Equity Compensation Plans.

                    Equity Compensation Plan Information

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Recent Sales of Unregistered Securities.

     Alpine Air has not sold any equity securities during the period covered by this Annual Report that were not registered under the Securities Act of 1933, as amended.  

Purchases of Equity Securities by the Issuer and Affiliated Purchasers.

     During the quarterly period ended October 31, 2009, neither Alpine Air nor any “affiliated purchaser”  as defined in Reg. Section 240.10b-18(a)(3) purchased any of Alpine Air’s common equity.

ITEM 6.  SELECTED FINANCIAL DATA

     Not applicable to smaller reporting companies.

ITEM 7. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General.

     Alpine Aviation Inc. provides air cargo transportation services in the United States in Montana, North Dakota, South Dakota, Wyoming, Nebraska, and Colorado.  While the USPS is our primary customer, we also provide contract cargo and charter services for other package delivery and cargo carriers. In addition to air cargo transportation, the Company provides maintenance service on aircraft owned or operated by third parties, leasing of passenger aircraft, and operates a First Officer Training Program.

     

     Revenues were $20.4 million in 2009, a 3% increase from $19.8 million in 2008.  The primary increase in revenues was the result of two main events; the award of the Montana, South Dakota, and North Dakota USPS contracts at an increased rate in September 2009 coupled with the loss of the Hawaii USPS contracts and the leasing of two 1900-D passenger aircraft.

During the quarter ending July 31, 2009, the Company learned that the US Postal Service did not renew the contracts in place in Hawaii. These contracts expired June 6, 2009 and Alpine Air signed a two month contract to fly several routes with the company that was awarded the contract. That contract expired on August 7, 2009 and Alpine Air discontinued operations in Hawaii. Seven aircraft have been redeployed to the mainland. Four of these aircraft were immediately used to end month-to-month leases with third parties, two aircraft are being used as additional aircraft in the Billings, MT operations to take advantage of extra charter opportunities as they arise and as backup spare aircraft in the event an aircraft needs maintenance, and one aircraft was deployed to the maintenance facility in Provo, UT for upgrades and routine maintenance.  

In September 2009 the Company was successful in its attempts to keep the Montana/South Dakota/North Dakota contract with the US Postal service. The contract began on September 5, 2009 and runs for six years through September 5, 2015. In the future, if the Company were unable to renew this contract, it would have a significant impact on earnings and revenues. However, management has had substantial success in renewing contracts with the USPS over the past 20 years.

     In 2009, the Company carried over 9,673 tons of cargo as compared to 11,162 tons in 2008. This decrease is directly attributable to the loss of the Hawaii USPS contracts in August 2009.

     The Company continued to experience rising costs in insurance, contract labor costs and professional services fees. These costs along with the need to continue maintenance and repair of our aircraft place a strong demand on our cash resources.

     In January 2008 and again in May 2008 there were two separate incidents involving the Company’s aircraft. In both cases, the aircraft were damaged beyond repair or unrecoverable. However, both of the aircraft were fully insured and the Company has not experienced any significant effect on operations or its financial position. There were no aircraft dispositions in 2009.

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Liquidity and Capital Resources.

October 31, 2009 and 2008.

Historical Source of Cash and Capital Expenditures:

     The Company has a working capital position on October 31, 2009 of $669,987, as compared to working capital on October 31, 2008, of $1,839,462. The decrease in working capital has been the direct result of a $841,273 decrease in current assets coupled with an increase of $328,202 in current liabilities. The Company presently has no material off-balance sheet financing arrangements.   

     Total assets increased to $26,560,224 on October 31, 2009 from $25,413,758 on October 31, 2008. Total liabilities also increased to $12,552,207 from $11,916,143 during the same period. Our stockholders' equity has also increased a total of $510,402, from $13,497,615 to 14,008,017 for October 31, 2008 and October 31, 2009, respectively.

     For the year ended October 31, 2009 there was a net profit from operations before income taxes and preferred stock dividends of $1,629,011. This is a decrease from the previous year’s net income of $1,811,113. Depreciation for the year ending October 31, 2009 was $3,163,137 for an increase of $944,427 over last year. This increase is mostly due to the acquisition of aircraft to the fleet at the end of 2008 and additional ground equipment purchases.

     During the year ended October 31, 2009, the Company increased the tax NOL carryforward. There was a change in the deferred tax accounts of $509,000.  

     Investing activities for the year ended October 31, 2009, consisted mainly of the purchases of property and equipment of $3,789,826.

     For the year ended October 31, 2009, net cash used in financing activities was $1,780,307, which includes new funds made available from notes payable of $3,654,048 and proceeds from a lending institution line of credit of $748,875. The subsequent use of these funds was primarily towards notes payable of $5,716,041, the payment of preferred stock dividends of $270,977 and the redemption of $182,080 of Preferred Stock in the Company.

     For the year ended October 31, 2008, net cash received from financing activities was $445,448, which includes new funds made available of $4,000,000 and subsequent use primarily from payments of $1,459,580 towards notes payable and the redemption of $1,456,640 of Preferred Stock in the Company.

     For the years ended October 31, 2009 and 2008, net increases (uses) in cash and cash equivalents were $297,142 and $(468,035), and ending cash and cash equivalents were $1,192,936 and $895,794, respectively.

Cash Requirements

     The following table summarizes the Company’s contractual obligations as of October 31, 2009:

*Redemption and/or conversion of preferred shares assumed completed by year 2015 through future cash flows generated by profits from Company operations, sale of excess aircraft, or additional debt borrowings. All preferred shares are owned by current CEO and majority shareholder. Currently loan covenants with a lender restrict the redemption and payment of preferred dividends unless Company maintains minimum net worth of $13,800,000 and debt service coverage of 1.25 to 1.00.

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Future Capital Expenditures

     The Company as of October 31, 2009 had an open commitment to purchase one additional aircraft in the amount of $1,375,000. This additional aircraft will be used in the Company’s aircraft leasing operations. See Note 17, subsequent events, regarding details of this purchase and the January 2010 financing obtained allowing for this purchase.

Results of Operations.

Operating Revenue

     During the year ended October 31, 2009 total operating revenues were $20,464,409, representing a 3% increase over 2008 revenues of $19,840,376. This increase in revenue is the result of an increase of 746% in aircraft leasing revenues due to a contract in place for the leasing of two Beechcraft 1900-D passenger aircraft that began in September 2008. The following tables summarize Alpine Air’s operating revenue and associated percentage-of-change for the periods indicated.

		2009			2008		2009 over 2008 Change
Operating Revenue:
Operations
Mail revenue	$	13,366,226		$	14,518,532		(8)%
Contract cargo revenue and     ad-hoc charters		5,730,000			4,972,385		15%
Aircraft leasing		1,225,940			144,965		746%
Total operations		20,322,166			19,635,882		3%
Public services
First officer		18,918			31,610		(40)%
Maintenance		123,325			172,884		(29)%
Total public services		142,243			204,494		(30)%
Total operating revenue	$	20,464,409		$	19,840,376		3%

		2009		2008		2009 over 2008 Change
Operating Revenue:
Operations
Mail revenue		65%		73%		(8)%
Contract cargo revenue and     ad-hoc charters		28%		25%		3%
Aircraft leasing		6%		1%		5%
Total operations		99%		99%		-
Public services
First officer		Less than 1%		Less than 1%		-
Maintenance		1%		1%		-
Total public services		1%		1%		-
Total operating revenue		100%		100%

Direct Costs

     Total direct costs decreased to $15,733,309 from $16,378,631 for the years ending October 31, 2009 and 2008, respectively. This decrease is mainly due to a decrease of $1,469,227 or 32% in fuel expense and a decrease of $313,363 or 30% in aircraft lease expense. Fuel expense decreased due to an overall decrease in aviation fuel prices across the country and aircraft lease expenses decreased due to the ending of several sale/leaseback agreements. Depreciation and amortization expense for the year ended October 31, 2009 increased to $3,163,137 from $2,218,710 during 2008. This increase was due to additional depreciation on two new aircraft acquired at the end of 2008 and from major engine and airframe component overhauls capitalized in 2009. The following table summarizes Alpine Air’s direct costs and the associated percentages-of-change for the periods indicated.

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		2009			2008		2009 over 2008 Change
Direct Costs:
Operations
Depreciation and amortization	$	3,163,137		$	2,218,710		43%
Other direct costs		12,354,760			13,943,667		(11)%
Total operations		15,517,897			16,162,377		(4)%
Public services
Total public services		215,412			216,254		Less than (1)%
Total direct costs	$	15,733,309		$	16,378,631		(4)%

     Operating Expenses

     Operating expenses increased to $2,180,645 from $1,525,241 for the years ended October 31, 2009 and 2008, respectively. This increase was due mainly to a large one-time customer bad debt write-off of $248,000 coupled with a $44,000 increase in allowance for doubtful accounts. Consulting expenses, legal expenses, and professional accounting expenses increased during 2009 as well. The following table summarizes Alpine Air’s operating expenses and the associated percentages-of-change for the periods indicated.

		2009			2008		2009 over 2008 Change
Operating Expenses:
General and administrative	$	2,180,645		$	1,525,241		43%
Total operating expenses		2,180,645			1,525,241		43%

     Interest Income

     Interest income for the year ended October 31, 2009 decreased to $18,451 from the amount at October 31, 2008 of $48,381. This decrease in interest income for 2009 is due to a reduction of cash in interest bearing accounts.

Interest Expense

     Total interest expense for the year ended October 31, 2009 and 2008 was $857,184 and $673,395, respectively. This increase in interest expense is due to the Company acquiring additional financing in August of 2008 to purchase two Beechcraft 1900D aircraft.

Gain on Disposal of Assets

     Gain on disposal of assets for the year ended October 31, 2009 decreased to $907 from $499,623 as of October 31, 2008. During 2008, two aircraft that were destroyed and were disposed of at a gain due to the insurance proceeds. In 2009 there were no such events.

Other Expenses

     Other expenses for the year ending October 31, 2009 was $83,618 compared to $0 for the year ending October 31, 2008. This increase in other expenses is due to a realized loss from heating oil investments.

Income Tax Expense

     The provision for deferred  income tax expense for the year ended October 31, 2009 and 2008 was $509,000 and $434,812, respectively. The increase in deferred income tax as a percentage of income before taxes of 31.2% in 2009 and 24% in 2008 was due to a change in valuation allowance.

Net Income

     For the year ended October 31, 2009 and 2008, income before preferred dividends was $1,120,011 and $1,376,301,  or $0.03 per share and $0.04 per share, respectively. For the same periods net income available to shareholders was $544,599 and $120,193, or $0.02 per share and $0.00 per share, respectively. The difference for

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both years presented is $575,412 and $1,256,108, respectively ($0.01 and $0.02 per share, respectively), which is related to dividends declared on preferred stock and the amortization of a preferred stock discount analogous to a preferred stock dividend. The amortization portion of the preferred stock discount ended in December 2008.

Critical Accounting Policies and Estimates.

     The preparation of the Company's financial statements in conformity with accounting principles generally accepted in the U.S. requires the use of estimates and assumptions to determine certain assets, liabilities, revenues and expenses. Management bases these estimates and assumptions upon the best information available at the time of the estimates or assumptions. The Company's estimates and assumptions could change materially as conditions within and beyond our control change. Accordingly, actual results could differ materially from estimates. The most significant estimates made by management include allowance for doubtful accounts receivable, reserves for excess and obsolete inventories, deferred tax asset valuation,  and valuation of long-lived assets.

     Following is a discussion of critical accounting policies and related management estimates and assumptions.

     Allowance for Doubtful Accounts. An allowance for doubtful accounts receivable in the amount of $66,530 and $22,540, respectively, as of October 31, 2009 and 2008, and was established based on management's estimates of the collectability of accounts receivable. The required allowance is determined using information such as customer credit history, industry information, credit reports, customer financial condition and the collectability of outstanding accounts receivables associated with a discontinued business segment. The estimates can be affected by changes in the financial strength of the aviation industry, customer credit issues or general economic conditions.

     Inventories. The Company's parts inventories are valued at the lower of cost or market. Reserves for excess and obsolete inventories in the amount of $52,523 and $52,525, respectively, as of October 31, 2009 and 2008, are based on assessment of the marketability of slow-moving and obsolete inventories. Estimates are subject to volatility and can be affected by reduced equipment utilization, existing supplies of used inventory available for sale, the retirement of aircraft or ground equipment and changes in the financial strength of the aviation industry.

     Deferred Taxes. The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered based primarily on estimates of current and expected future earnings. Net deferred tax liability of $349,000 existed as of October 31, 2009 and net deferred tax assets of $160,000 existed as of October 31, 2008.  

     Revenue Recognition. Cargo revenue is recognized upon completion of contract terms and maintenance revenue is recognized when the service has been performed.  

     Valuation of Long-Lived Assets. The Company assesses long-lived assets used in operations for impairment when events and circumstances indicate the assets may be impaired and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amount. In the event it is determined that the carrying values of long-lived assets are in excess of the fair value of those assets, the Company then will write-down the value of the assets to fair value.

Off-Balance Sheet Arrangements.

   None; not applicable.

Safe Harbor Statement.

     Statements made in this Form 10-K which are not purely historical are forward-looking statements with respect to the goals, plan objectives, intentions, expectations, financial condition, results of operations, future performance and business of the Company, including, without limitation, (i) our ability to retain existing commercial relationships and to obtain additional profitable sources of revenue, and (ii) statements preceded by, followed by or that include the words "may", "would", "could", "should", "expects", "projects", "anticipates", "believes", "estimates", "plans", "intends", "targets" or similar expressions.

     Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond the Company's control) that could cause actual results to differ materially from those set forth in the

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forward- looking statements, including the following, in addition to those contained in the Company's reports on file with the SEC: general economic or industry conditions, nationally and/or in the communities in which the Company conducts business, legislation or regulatory requirements, the economic condition of the U.S. Postal Service or United Parcel Service, changes in the air cargo, charter and leasing industries, demand for air cargo, charter and leasing services, competition, changes in the quality or composition of the Company's services, our ability to develop profitable new sources of revenue, changes in accounting principals, policies or guidelines, financial or political instability, acts of war or terrorism, other economic, competitive, governmental, regulatory and technical factors affecting the Company's operations, services and prices.

     Accordingly, results actually achieved may differ materially from expected results in these statements.  Forward-looking statements speak only as of the date they are made.  The Company does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of such statements.

ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     Not applicable for smaller reporting companies.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

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ALPINE AIR EXPRESS, INC.

CONSOLIDATED FINANCIAL STATEMENTS

October 31, 2009 and 2008

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ALPINE AIR EXPRESS, INC.

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

October 31, 2009 and 2008

CONTENTS

	PAGE
Report of  Independent Registered Public Accounting Firm Report of  Independent Registered Public Accounting Firm	2 3
Consolidated Balance Sheets at October 31, 2009 and 2008	4
Consolidated Statements of Income for the years ended October 31, 2009 and 2008	5
Consolidated Statement of Stockholders' Equity for the years ended October 31, 2009 and 2008	6
Consolidated Statements of Cash Flows for the years ended October 31, 2009 and 2008	7 - 8
Notes to Consolidated Financial Statements	9 - 18

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and
Stockholders of Alpine Air Express, Inc.

We have audited the accompanying consolidated balance sheet of Alpine Air Express, Inc. as of October 31, 2009, and the related consolidated statements of income, stockholders’ equity, and cash flows for the year ended October 31, 2009. Alpine Air Express, Inc.’s management is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Alpine Air Express, Inc. as of October 31, 2009, and the results of its operations and its cash flows for the year ended October 31, 2009 in conformity with accounting principles generally accepted in the United States of America.

As discussed in Note 18 to the consolidated financial statements, management has restated the consolidated financial statements for a correction of an error related to the classification of preferred stock.

/s/Jones Simkins, P.C.

JONES SIMKINS, P.C.

January 29, 2010, except for Note 11 and 18

  as to which the date is October 12, 2010

2

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors

ALPINE AIR EXPRESS, INC. AND SUBSIDIARY

Provo, Utah

We have audited the accompanying balance sheet of Alpine Air Express, Inc. and Subsidiary as of October 31, 2008 and the related statements of operations, stockholders' equity and cash flows for the year ended October 31, 2008. Alpine Air Express, Inc. and Subsidiary’s management is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.  Accordingly, we express no such opinion.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Alpine Air Express, Inc. and Subsidiary as of October 31, 2008 and the results of its operations and its cash flows for the year ended October 31, 2008 in conformity with accounting principles generally accepted in the United States of America.

As described in Note 18 to the financial statements, the financial statements for the year ended October 31, 2008 has been restated to correct errors in the reporting of current and deferred income tax expense and the recording of deferred tax assets, and to reclassify preferred stock outside of stockholders’ equity.

/s/Pritchett, Siler & Hardy, P.C.

PRITCHETT, SILER & HARDY, P.C.

Salt Lake City, Utah

January 28, 2009, except for Note 14

 as to which the date is January 26, 2010

 and Notes 11 and 18 as to which the date is

 October 12, 2010

3

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ALPINE AIR EXPRESS, INC.

CONSOLIDATED BALANCE SHEETS

October 31, 2009 and 2008

ASSETS

LIABILITIES AND STOCKHOLDERS' EQUITY

The accompanying notes are an integral part of these consolidated financial statements.

4

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ALPINE AIR EXPRESS, INC.

CONSOLIDATED STATEMENTS OF INCOME

Years Ending October 31, 2009 and 2008

	2009						2008
OPERATING REVENUE:
Operations		$	20,322,166					$	19,635,882
Public services			142,243						204,494
Total operating revenues			20,464,409						19,840,376
DIRECT COSTS:
Operations			15,517,897						16,162,377
Public services			215,412						216,254
Total direct costs			15,733,309						16,378,631
Gross profit			4,731,100						3,461,745
OPERATING EXPENSES:
General and administrative			2,180,645						1,525,241
Total operating expenses			2,180,645						1,525,241
Operating income			2,550,455						1,936,504
OTHER INCOME (EXPENSE):
Interest income			18,451						48,381
Interest expense Gain on disposal of assets Other			(857,184) 907 (83,618)						(673,395) 499,623 -
Total other income (expense)			(921,444)						(125,391)
INCOME BEFORE TAXES AND PREFERRED STOCK DIVIDEND			1,629,011						1,811,113
Current income tax expense			-						-
Deferred income tax expense			509,000						434,812
NET INCOME			1,120,011						1,376,301
Preferred stock dividend declared and amortization of preferred stock discount analogous to a preferred stock dividend.			(575,412)						(1,256,108)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS		$	544,599					$	120,193
NET INCOME PER COMMON SHARE
Basic		$	0.02					$	0.00
Diluted		$	0.01					$	0.00

The accompanying notes are an integral part of these consolidated financial statements.

5

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ALPINE AIR EXPRESS, INC.

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

Years Ending October 31, 2009 and 2008 (As restated)

The accompanying notes are an integral part of these consolidated financial statements.

6

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ALPINE AIR EXPRESS, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

Years Ending October 31, 2009 and 2008

The accompanying notes are an integral part of these consolidated financial statements.

7

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ALPINE AIR EXPRESS, INC

CONSOLIDATED STATEMENT OF CASH FLOWS

 Years Ending October 31, 2009 and 2008

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

For the year ended October 31, 2009:

The Company recorded the amortization of a preferred stock dividend and reduced retained earnings by $89,780.

The Company acquired property and equipment in exchange for long-term debt of $1,200,000.

The Company  capitalized debt issuance costs of $70,652.

For the year ended October 31, 2008:

The Company redeemed 160,000 shares of Preferred Stock with a value of $9.104 per share, for a total of $1,456,640 in cash.

The Company had preferred dividend expense of $1,256,108 which is comprised of $537,868 in dividends and $718,240 of amortized discount on preferred stock analogous to a preferred stock dividend.

The Company purchased 70,660 shares of its own stock to hold as Treasury Stock. Total value of $31,797.

As required by ASC Topic 718, the Company has established the amortization of the value of Stock Options issued during the year. Total cost recorded this year is $35,212 which is a non-cash item.

The accompanying notes are an integral part of these consolidated financial statements.

8

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ALPINE AIR EXPRESS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

October 31, 2009 and 2008

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This summary of significant accounting policies of Alpine Air Express, Inc. (the "Company") is presented to assist in understanding the Company's financial statements. These accounting policies conform to accounting principles generally accepted in the United States of America (USGAAP) and have been consistently applied in the preparation of the consolidated financial statements.

Organization and business description - Alpine Aviation, Inc. (Alpine) was incorporated in the state of Utah on October 7, 1975.  On June 12, 2000 Alpine entered into a transaction that was accounted for as a reverse merger with Riverside Ventures, Inc., a Delaware corporation incorporated on April 20, 1994. At the time of the transaction, Riverside Ventures, Inc. was inactive. All of the outstanding common stock of Alpine was exchanged for 29,685,000 shares of common stock of Riverside Ventures, Inc.  The transaction, accounted for as a reverse acquisition, resulted in a recapitalization of Alpine, inasmuch as it was deemed to be the acquiring entity for accounting purposes. Riverside Ventures, Inc. changed its name to Alpine Air Express, Inc.  The Company is an air cargo operator, transporting mail, packages and other time-sensitive cargo between cities in the western portion of the United States.

Principles of consolidation – The consolidated financial statements include the accounts and operations of Alpine Air Express, Inc., and its wholly-owned subsidiary Alpine Aviation, Inc. as of October 31, 2009 and 2008 (together referred to as the Company). All material inter-company transactions and accounts have been eliminated in the consolidation.

Cash and cash equivalents - The Company considers demand deposits at banks and money market funds at other financial institutions with an original maturity of three months or less to be cash equivalents.  

Restricted cash - At October 31, 2009 and 2008, the Company had two restricted cash time deposits totaling $200,695 and $175,000, respectively, held as collateral for debt of a third party.

Concentration of credit risk – The Company maintains its cash in bank deposit accounts, which at times, may exceed federally insured limits.  The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents.

Trade accounts receivable – Accounts receivable are amounts due for services performed and are unsecured. Accounts receivable are carried at their estimated collectible amounts. Credit is generally extended on a short-term basis; thus accounts receivable do not bear interest although a finance charge may be applied to such receivables that are past the due date. Accounts receivable are periodically evaluated for collectibility based on past credit history with clients. Provisions for losses on accounts receivable are determined on the basis of loss experience, know and inherent risk in the account balance, and current economic conditions.

Inventories - Inventories consist of aircraft parts and fuel stated at the lower of cost or market, determined using the first-in, first-out method (FIFO).

Property and equipment - Provision for depreciation for financial reporting purposes of property and equipment is computed on the straight-line method over their estimated useful lives ranging from three to forty years. Maintenance, repairs, and renewals, which neither materially add to the value of the property and equipment nor appreciably prolong the useful lives are charged to expense as incurred.  Gains and losses on dispositions are included in operations.

Engine overhauls - The Company uses the deferral method of accounting for our major engine and airframe component overhauls and provides for major engine and airframe component overhaul costs to be capitalized and depreciated to the next overhaul on engine and airframe components.

Impairment of long-term assets - The Company reviews all long-term assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable through undiscounted future cash flows. If an impairment loss has occurred, such loss is recognized in the determination of net income.  

9

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ALPINE AIR EXPRESS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

October 31, 2009 and 2008

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [CONTINUED]

Income taxes - The Company utilizes the liability method of accounting for income taxes.  Under the liability method, deferred tax assets and liabilities are determined based on the difference between financial accounting and tax bases of assets and liabilities using enacted tax rates in effect during the years in which the differences are expected to reverse.  An allowance against deferred tax assets is recorded in whole or in part when it is more likely than not that such tax benefits will not be realized. The Company recognizes accrued interest related to unrecognized tax benefits in interest expense and penalties as an other expense.

Use of estimates - In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenue and expenses during the reporting period.  Actual results could differ from those estimates.

Fair value of financial instruments - Cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities are reflected in the financial statements at fair value because of the short-term maturity of these instruments.  

Income per common share - The Company follows the provisions of ASC Topic 260 "Earnings Per Share".  ASC Topic 260 requires the presentation of basic and diluted earning per share.  Basic earnings per share are calculated by dividing income (loss) available to common shareholders by the weighted-average number of common shares outstanding during each period. Diluted earnings per share are similarly calculated, except that the weighted-average number of common shares outstanding includes common shares that may be issued subject to existing rights with dilutive potential.  Potential common shares having an anti-dilutive effect on periods presented are not included in the computation of dilutive earning per share.

Revenue and cost recognition - The Company utilizes the accrual method of accounting whereby revenue is recognized when earned. Air freight revenue is recognized upon delivery of cargo to its destination.  Public services revenue consists of charter income, pilot training fees, and customer maintenance services.  Charter income and customer maintenance services income is recognized when the service is performed.  Pilot training revenue is recognized over the course of the program, based on the pro rata share of the course completed to date.  Tuition revenue received, but not yet earned, is deferred.

Recently Enacted Accounting Standards – ASC Topic 820,  “Fair Value Measurements”, ASC Topic 825, “Financial Instruments”, ASC Topic 810,  “Consolidation”, ASC Topic 815, “Derivatives and Hedging”, and ASC Topic 944, “Financial Services”, were recently issued.  These topics have no current applicability to the Company or their effect on the financial statements would not have been significant.

The Company adopted new income tax guidance pertaining to uncertain tax positions issued by the Financial Accounting Standards Board (“FASB”) at the beginning of fiscal year 2008. This new guidance was issued to clarify what criteria must be met prior to recognition of the financial statement benefit of a position taken in a tax return. The provisions of this guidance apply broadly to all tax positions taken by a company, including decisions to not report income in a tax return or to classify a transaction as tax exempt. The prescribed approach is determined through a two-step benefit recognition model. The amount of benefit to recognize is measured as the largest amount of tax benefit that is greater than 50 percent likely of being ultimately realized upon settlement. The tax position must be derecognized when it is no longer more likely than not of being sustained. At October 31, 2009, the Company did not recognize any amounts related to this new standard.

Stock Based Compensation - The Company currently accounts for its stock based compensation in accordance with ASC Topic 718 "Accounting for Stock-Based Compensation." This topic establishes an accounting method based on the fair value of equity instruments awarded to employees as compensation.

Reclassification – The financial statements for periods prior to October 31, 2009 have been reclassified to conform to the headings and classifications used in the October 31, 2009 financial statements.   

10

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ALPINE AIR EXPRESS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

October 31, 2009 and 2008

NOTE 2 - TRADE ACCOUNTS RECEIVABLE

Trade accounts receivable consist of the following:

NOTE 3 - PREPAID EXPENSES

Prepaid expenses consist of the following:

NOTE 4 - INVENTORIES

Inventories consist of the following:

NOTE 5 – PROPERTY AND EQUIPMENT

^{Property and equipment consists of the following:}

	Estimated life in years		2009			2008
Building and improvements	10 - 40		$	1,286,989	$	1,286,989
Aircraft	15			18,746,456		17,090,688
Engines	7 - 10			12,185,742		9,160,569
Equipment	3 - 10			306,655		290,292
Furniture and fixtures	3 - 10			329,029		356,082
Vehicles	5 - 7			140,540		136,340
				32,995,411		28,320,960
Less:accumulated depreciation and amortization				(11,759,914)		(8,931,878)
			$	21,235,497	$	19,389,082

Sales/Leasebacks - In April 2004, the Company entered into a sale/leaseback agreement with a third party, wherein, the Company sold an aircraft for $650,000 and entered into an operating lease (See Note 6).  The Company recorded a deferred gain of $355,716 which was amortized over the life of the lease as an offset to lease expense. This lease ended in May 2009 and the deferred gain has been fully amortized. The Company will lease this aircraft on a monthly, as needed basis.  

11

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ALPINE AIR EXPRESS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

October 31, 2009 and 2008

In June 2004, the Company entered into a sale/leaseback agreement with a third party, wherein, the Company sold an aircraft for $650,000 and entered into an operating lease (See Note 6).  The Company recorded a deferred gain of $517,929 which was amortized over the life of the lease as an offset to lease expense.  In addition, $80,000 of the proceeds from this sale are invested in a time deposit as collateral on the lessor’s debt.  These funds are recorded as a restricted time deposit on the Company's records. This lease ended in June 2009 and the deferred gain has been fully amortized. The Company will lease this aircraft on a monthly, as needed basis.

In April 2006, the Company entered into a sale/leaseback agreement with a third party, wherein, the Company sold an aircraft for $675,000 and entered into a six month operating lease. The Company recorded a gain on the sale of the aircraft during the second quarter of 2006 in the amount of $594,586. There is no continuing commitment on the part of the Company to continue the operating lease beyond six months. In addition, $95,000 of the proceeds from this sale are invested in a time deposit as collateral on the lease. These funds are recorded as a restricted time deposit on the Company records. The Company leased this aircraft in 2009 on a monthly, as needed basis.

NOTE 6 - OPERATING LEASES

On March 20, 2001, the Company entered into a 30-year lease agreement with two five-year extension options for real property at the Provo, Utah Airport. The Company also leases a hangar and a maintenance facility in Billings, Montana at the Logan International Airport. The lease for the hangar is for a term of five years ending October 31, 2012. The lease term for the maintenance facility is one year ending March 10, 2010. These operating lease agreements contain scheduled rent escalation clauses based on changes in the consumer price index that are being amortized over the term of the lease using the straight-line method. In addition to the operating leases reported above, the Company has two revocable permits (month-to-month leases) with the State of Hawaii, Department of Transportation to use hangar and office space for its air cargo operations and the permits are renewed on an annual basis. The Company has chosen to continue this lease despite not having operations currently in Hawaii.

Future minimum lease payments for the years ending October 31, are as follows:

2010	$	37,211
2011		33,211
2012		33,211
2013		13,265
2014		13,265
Thereafter		217,762
	$	347,925

Total rental expense for the period ending October 31, 2009 and 2008 was $92,728 and $199,254, respectively.

Aircraft - In April and June of 2004 and again in April of 2006, the Company entered into certain sale/leaseback agreements (See Note 5).  The Company agreed to lease two aircraft for sixty months.  It has also agreed to lease a third aircraft on a month to month basis. The Company is also required to pay an additional amount to the Lessor based on the aircraft’s actual flight time. The Lessor is responsible for engine and propeller overhauls and certain qualifying improvements to all leased aircraft. These aircraft leases ended in 2009 and the Company will lease the aircraft on a month to month basis, as needed.

Total lease expense for the years ending October 31, 2009 and 2008 was $220,595 and $475,582, respectively.

NOTE 7 - RELATED PARTY TRANSACTIONS

Personal Guarantee - The Company's major shareholder/officer has personally guaranteed several notes which are also collateralized by certain aircraft of the Company.  (See Note 9)

Aircraft Purchase - In December 2003, the Company acquired 16 aircraft from an entity related to an officer and majority shareholder of the Company for $9,900,000.  The consideration paid included $9,104,000 in preferred stock of the Company's subsidiary Alpine Aviation, Inc. and the assumption of the underlying debt on the aircraft totaling $709,981.  The remaining $86,019 was recorded as a payable to the entity related to an officer and majority shareholder of the Company.  As the aircraft were purchased from a related party they have been recorded at their

12

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ALPINE AIR EXPRESS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

October 31, 2009 and 2008

carryover basis of $4,111,485.  A discount on preferred stock in the amount of $3,591,195, net of tax effect of $2,197,320, has been recorded and is being amortized as dividends over a five year period.  The preferred stock provides for monthly dividends at an annual rate of 6.5%. The holder of the preferred stock may at any time, prior to December 1, 2011, convert the preferred shares at a price per share equal to the stated value or liquidation preference, for the equivalent of common shares of Alpine Air Express, Inc. based on the market price at the close of business on the day prior to the conversion date. The Company can redeem the subsidiary's preferred stock any time and the entity related to an officer and majority shareholder of the Company can call for redemption of the subsidiary's preferred stock any time after December 31, 2011.

NOTE 8 – LINE OF CREDIT

The Company established a $1,000,000 line of credit with a lending institution on February 17, 2009 to help manage cash flow and day to day operations.  The line of credit has a variable interest rate, currently 6.5% and matures on February 17, 2010.  The interest is payable each month on any outstanding balance.  As of October 31, 2009 the outstanding balance was $748,875. Subsequent to year end $472,854 of the amount outstanding was refinanced to a long-term note. (See Note 17)

NOTE 9 – LONG TERM DEBT

Long term debt consists of the following:

                                                                                                                                                         2009                           2008

Note payable issued August 28, 2006 for $1,936,193 due August 28,  

2011. Interest rate of  8.75% at October 31, 2009.  Secured by three Aircraft.

Reg #N17ZV, N955AA, and N194GA and personally guaranteed by an  

officer/shareholder. Subsequent to year end this note was refinanced to a

long-term note. (See Note 17)

$

815,083

$

1,209,653

Note payable issued on August 19, 2009 for $2,524,200 due August 19, 2012.

Current interest rate of 6.5%. Secured by four aircraft Reg #N154GA, N99GH,

N326CA, and N239AL and personally guaranteed by an officer/shareholder.

2,453,216                                  -

  

Note payable issued on September 22, 2009 for $1,200,500 due September 22,

2010. This is an interest only note with an interest rate of 4.75%. Personally

guaranteed by an officer/shareholder. Subsequent to year end this note was

refinanced to a long-term note. (See Note 17)

   1,200,500                                   -

 

Capital lease obligations (see Note 10)

4,521,138

8,568,955

8,989,937

9,778,608

Less current portion

(1,842,000)

(1,941,676)

Long-term portion

$

7,147,937

$

7,836,932

The estimated aggregate maturities required on long-term debt for each of the individual years at October 31, 2009 are as follows:

                                                                         2010          $ 1,842,000

                                                                         2011             2,031,079

                                                                         2012             3,146,328

                                                                         2013                410,992

                                                                         2014                143,949

       Thereafter     1,415,589

                          $ 8,989,937

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ALPINE AIR EXPRESS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

October 31, 2009 and 2008

NOTE 10 – CAPITAL LEASE OBLIGATIONS

The company leases seven aircraft under capital lease agreements which provide for the option to purchase the aircraft at the end of the leases. The leases are payable in aggregate monthly payments of approximately $146,000, having imputed interest rates ranging from 7.33% to 8.15%, and are secured by the aircraft being leased. Future minimum lease payments under capital leases are approximately as follows:

Year Ending

October 31,                                                       Amount

 

2010

 $

1,757,000

2011

1,757,000

2012

1,390,000

2013

291,000

5,195,000

Less amount representing interest

(673,862)

Present value of future minimum lease payments

 $

4,521,138

The cost, accumulated amortization, and amortization expense of aircraft under capital lease is approximately as follows:

NOTE 11 – PREFERRED STOCK

The preferred stock provides for monthly dividends at an annual rate of 6.5%, and is convertible at any time to common stock by the holder based on the current market price of the Company’s stock. The Company can redeem the preferred stock any time and the Holder can call for redemption of the preferred stock any time after December 31, 2011.

The following table summarizes the changes in preferred stock shares and values.

		Shares			Amount
Balance at November 1, 2007-Net of Discount		1,000,000		$	8,295,981
Discount on preferred stock		-			718,239
Redemption of preferred stock		(160,000)			(1,456,640)
Balance at October 31, 2008-Net of Discount		840,000		$	7,557,580
Discount on preferred stock		-			89,780
Redemption of preferred stock		(20,000)			(182,080)
Balance at October 31, 2009		820,000		$	7,465,280

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ALPINE AIR EXPRESS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

October 31, 2009 and 2008

NOTE 12 – STOCK OPTIONS

The Company’s equity incentive plan allows the Company to issue incentive stock options (ISO's), non-statutory stock options and restricted shares to employees, directors, and consultants of the Company. Annually, commencing January 2002, the aggregate number of shares of the Company's common stock available for award under the plan shall increase by the lesser of 250,000 or seven percent of the outstanding stock less the number of shares previously authorized for the plan, respectively. After August 18, 2011, the plan terminates and no further options may be granted. The exercise price of options granted under the terms of the plan must not be less than 100% of the fair market value of the shares as of the date of grant. Additionally, no individual may be granted more than 100,000 options in any given year. All options issued under the plan are exercisable for ten years and vest after two years. The Company has not received and does not intend to request a determination from the Internal Revenue Service that the options issued under the plan will qualify under the Code for treatment as qualified incentive stock options.

A summary of the options outstanding is presented below:

Options Outstanding						Options Exercisable
Range of Exercise Prices		Number of Outstanding		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price			Number Exercisable		Weighted Average Exercise Price
$2.50		554,120		1.8 years		$	2.50		554,120		$	2.50
$0.30 - $0.50		880,789		7.9 years		$	0.38		565,789		$	0.43
		1,434,909		5.5 years		$    1.20			1,119,909		$     1.45

NOTE 13 - INCOME PER COMMON SHARE

The following data show the amounts used in computing net income per common share, for the years ended October 31:

				2009						2008
Net income (loss) available to common shareholders		$		544,599				$		120,193
Weighted average number of common shares used in basic EPS				36,271,461						36,245,398
Dilutive effect of preferred stock				46,658,000						21,676,190
Dilutive effect of stock options Weighted average number of common shares and dilutive potential common stock used in diluted EPS				- 82,929,461 __________					-        57,921,588 ___________

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For the year ended October 31, 2009 and 2008, 1,434,909 and 1,637,009 outstanding options, respectively, were excluded from the calculation of diluted earnings per share because their effect was anti-dilutive. During April 2007 the Company issued 1,000,000 series A, 6.5% preferred shares with a stated value of $9.104 per share.  These preferred shares have no voting rights and are convertible into common stock at the current market value. They do have a dilutive effect and are included in the computation of EPS. The number of preferred shares outstanding and used in the calculation as of October 31, 2009 and 2008 are 820,000 and 840,000 shares, respectively.

NOTE 14 – INCOME TAXES

The provision for income taxes consists of the following:

The provision for income taxes differs from the amount computed at federal statutory rates as follows:

Deferred tax assets are comprised of the following:

As of October 31, 2009 the Company has capital  loss carryforwards of approximately $316,000 that expire in 2010 and approximately $84,000 that expire in 2015. The Company also has net operating loss carryforwards of approximately $7,448,000 that expire beginning in 2024.

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ALPINE AIR EXPRESS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

October 31, 2009 and 2008

NOTE 15 – CONCENTRATIONS

U.S. Postal Service Contracts - The Company receives the majority of its revenues from contracts with the U.S. Postal Service (USPS).  For the year ended October 31, 2009 and 2008, the revenues from contracts with the USPS represented 65% and 71% of total revenues, respectively.  At October 31, 2009 and 2008, accounts receivable from the USPS totaled $759,109 and $1,236,412 or 49% and 55%, respectively. The contracts currently in effect for USPS routes will expire in September 2015 for mainland US operations. The loss of this customer would have a material negative effect on the operations of the Company.  

NOTE 16 – COMMITMENTS AND CONTINGENCIES

The Company operates its aircraft under a certificate which allows it to accumulate time between overhauls (TBO) in excess of manufacturer's recommendations.  The Company regularly inspects its engines.  A majority of the engines used by the Company have accumulated TBO in excess of manufacturer's recommendations.

There are two claims pending against the Alpine Air by the FAA from the FAA Regional Office in Renton, Washington.  One claim alleges that contract ramp personnel were allowed to load Alpine Air aircraft even though they had not completed Alpine Air’s hazardous materials training program. The FAA has proposed a civil penalty in the amount of $5,000 and Alpine Air is vigorously contesting the claim. The second FAA claim alleges violations of maintenance requirements for an airplane based in Hawaii during the period of January to February 2009. The FAA has proposed a civil penalty in the amount of $228,250 and Alpine Air is vigorously contesting the claim. The Company believes there is no good faith basis for the amount of either of the claims.

Alpine Air is also contesting a claim made by the State of Hawaii, Department of Transportation, Airports Division, for alleged past due landing fees for the period of April 2004 through 2009 in the amount of $331,584. The claim was not presented to Alpine Air until 2008 and the Company immediately contested the claimed amount. Alpine Air is in the process of concluding a negotiated settlement of the claim for the total sum of $90,000 and the final settlement agreement should be signed within the month.

NOTE 17 – SUBSEQUENT EVENTS

In December 2009, the Company signed a note payable with a lending institution for $403,324. The note matures on March 4, 2010 at which time the note must be paid in full. One aircraft Reg # N216CS was used as collateral on the note. This is an interest only loan with a stated interest rate of 5.5%. The proceeds of this loan were used to purchase the aircraft listed below.

In December 2009, the Company finalized the purchase of a Beechcraft 1900-D with a passenger configuration for $1,375,000. A lease agreement was also entered into in December 2009 with a third party in which the third party will lease this aircraft from the Company for a 13 month term beginning December 1, 2009 and ending January 11, 2011.

In January 2010, the Company signed a note payable with a lending institution for $2,700,000. The note matures on January 7, 2016. It is secured by four aircraft Reg #N172GA, N125BA, N219VP, and N198GA. The stated interest rate is 7.147% and the proceeds of this loan were used to pay off the balance of two other notes payable and reduce the balance owed on a line of credit.

Alpine Air Express has evaluated subsequent events for the period October 31, 2009 through January 29, 2010, the date the financial statements were issued, and concluded there were no other events or transactions during this period that required recognition or disclosure in its financial statements.

NOTE 18 – RECLASSIFICATION OF PREFERRED STOCK AND RESTATEMENT

The financial statements for the years ended October 31, 2008 were restated to correct errors in the reporting of current and deferred income tax expense and the recording of deferred tax assets. See Form 10-K/A dated January 26, 2010.

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ALPINE AIR EXPRESS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

October 31, 2009 and 2008

The financial statements for the years ended October 31, 2008 and October 31, 2009 were restated to classify preferred stock outside of stockholders’ equity on the Balance Sheet and remove preferred stock from the Consolidated Statement of Stockholders’ Equity. The following financial statement line items for the year ended October 31, 2008 were affected by the corrections:

The following financial statement line items for the year ended October 31, 2009 were affected by the corrections:

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PART III

ITEM 9:  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Pritchett, Siler & Hardy, P.C., audited the Company’s financial statements for the fiscal year ended October 31, 2008. Effective as of February 23, 2009, Pritchett, Siler & Hardy, P.C., resigned as the independent accountant of Alpine Air Express, Inc., a Delaware corporation (the "Company"). This resignation was due solely to the PCAOB's requirement of five-year rotations for audit partners on public company audits. During the Company's two most recent fiscal years, and since then, there have been no disagreements with Pritchett, Siler & Hardy, P.C. on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of the former accountant would have caused it to make reference to the subject matter of such disagreement in connection with its report. The reports of Pritchett, Siler & Hardy, P.C. on the Company's financial statements for the past two years did not contain any adverse opinion or disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope or accounting principles.

On February 26, 2009, the Company's audit committee and Board of Directors voted to approve the engagement of Jones Simkins, P.C. of Logan, Utah as principal accountant to audit the Company's financial statements. During the Company's two most recent fiscal years, and since then, neither the Company nor anyone on its behalf consulted with Jones Simkins P.C. regarding either: (i) the application of accounting principles to a specified transaction, either completed or proposed; or the type of audit opinion that might be rendered on the Company's financial statements, and either a written report was provided to the Company or oral advice was provided that the new accountant concluded was an important factor considered by the Company in reaching a decision as to the accounting, auditing or financial reporting issue; or (ii) any matter that was either the subject of a disagreement or a reportable event.

During our prior fiscal year, we have not consulted Jones Simkins, P.C. regarding the application of accounting principles to a specified transaction, either completed or proposed; or the type of audit opinion that might be rendered on our financial statements or any other financial presentation whatsoever.

ITEM 9A(T):  CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company’s management, with the participation of our principal executive officer and our principal financial officer, evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Annual Report. Disclosure controls and procedures require that information to be disclosed by the Company in reports filed under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to our management, including our principal executive officer and our principal financial officer, as appropriate to allow timely decisions regarding disclosure.  A controls system cannot provide absolute assurance, however, that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.

Based on that evaluation, the management concluded, as of the end of the period covered by this report, that the disclosure controls and procedures were effective in recording, processing, summarizing, and reporting information required to be disclosed, within the time periods specified in the Commission’s rules and forms, and such information was accumulated and communicated to management, including the principal executive officer and the principal financial officer, to allow timely decisions regarding required disclosures.

Management’s Report on Internal Control over Financial Reporting

The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company. The Company’s management, with the participation of the principal executive officer and the principal financial officer, evaluated the effectiveness of the Company’s internal control over financial reporting as of October 31, 2009.  In making this assessment, the Company’s management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control – Integrated Framework.  Based on this evaluation, management, with the participation of the principal executive officer and principal financial officer concluded that, as of October 31, 2009, internal control over financial

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reporting was ineffective. The Company arrived at this conclusion after discussing a comment letter it received from the SEC relating to recording preferred stock outside of stockholders’ equity on the balance sheet and removing preferred stock from the consolidated statement of stockholders’ equity. During the quarter ending July 31, 2010, the Company invested time and resources into researching preferred stock transactions and has reclassified preferred stock as a mezzanine item on the balance sheet between liabilities and stockholders’ equity and removed preferred stock from the consolidated statement of stockholders’ equity as recommended by the SEC. This reclassification has led to the amendment of the October 31, 2009 10-K.

This Annual Report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting.  Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to temporary rules of the Security and Exchange Commission that permit the Company to provide only management’s report in this Annual Report.

Changes in Internal Control Over Financial Reporting

There have been no changes in internal control over financial reporting during the fourth fiscal quarter of the fiscal year covered by this Annual Report.

ITEM 9B:  OTHER INFORMATION

None; not applicable.

PART III

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS, PROMOTERS, AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT

Directors and Executive Officers.

     The members of the Board of Directors of Alpine Air serve until the next annual meeting of stockholders, or until their successors have been elected. The officers serve at the pleasure of the Board of Directors.  The following are our directors and executive officers.

Name	Age	Position	Held Position Since
Eugene R. Mallette Rick C Wood	60    37	CEO      Principal Financial Officer	1986                  2008
Max A. Hansen	60	Secretary/Treasurer and      Director	1986
Joseph O. Etchart	61	Chairman	2005
Ronald L. Pattison	52	Director	2006

     Mr. Mallette began his career with Alpine Aviation in 1979 as its Sales Manager, then became General Manager later in 1979.  He became Chief Executive Officer and Director upon acquiring Alpine Aviation in 1986.  Prior to his employment by Alpine Aviation, he was employed by the State of Montana as a staff auditor.  He received a B.A. in Business Administration from Carroll College in 1971.  Mr. Mallette holds a private pilot's license and maintains his proficiency.  He devotes time to civic and charitable causes and was previously Chairman of the Better Business Bureau of Utah County and Vice-President of the Provo Chamber of Commerce.

     Rick C. Wood was named the Accounting Manager of Alpine in February 2008 after serving as the Senior Accountant since February 2006.  He has recently been designated Principal Financial Officer. He received a Bachelor of Science degree in Accounting from the University of Utah and has served in various accounting capacities for the last nine years.  Prior to coming to Alpine Air, he worked as the controller of a local computer company where he began as an Accounting Clerk and Sales Consultant. Prior to his Accounting career, Mr. Wood had a successful sales career with CompUSA, Gateway Computers, American Express, and Qwest Communications. He currently volunteers at his local church keeping track of donations and expenses.

     Max A. Hansen has been an Alpine Air Director since 1986 and legal advisor to the company since 1979.  He has been practicing law since 1976 and has owned his own firm, Max A. Hansen & Associates, P.C. since 1980.  He is licensed to practice law in Montana, Utah, and California and is admitted to practice before those state courts, the Federal courts of Montana and Utah, and the U.S. Supreme Court. Mr. Hansen provides legal services to Alpine Air

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as General Counsel.  He is a Past President of the State Bar of Montana and served for many years as the Montana Delegate to the American Bar Association House of Delegates. Mr. Hansen has received distinguished service awards from the State Bar of Montana and the Montana Supreme Court for his work on behalf of the legal system. He is a former member of the American Bar Association Standing Committee on the Federal Judiciary. Mr. Hansen is also President and CEO of American Equity Exchange, Inc., a company which assists taxpayers with Section 1031 tax-deferred property exchanges nationwide. He is a Past President and sits on the Board of Federation of Exchange Accommodators and holds a designation as a Certified Exchange Specialist (CES). Mr. Hansen received his law degree  from the University of San Diego School of Law in 1976, where he was a member of the law review.  He received a BA in Political Science from Carroll College in 1971.

     Joseph O. Etchart has been a member of our Board of Directors since April, 2002.  He formerly served as Alpine Air's Director of Public and Investor Relations.  He is also the President and CEO of Hinsdale Land Company, a real estate and agricultural enterprise in Montana.  Since 1985, Mr. Etchart has served on the Board of Directors, and is a former Chairman of the Board, of Montana Livestock Ag Credit, one of the premier agricultural lending institutions in the Pacific Northwest.  He served two terms as President of the Washington, D.C. based National Public Lands Council, where he was involved in the legislative and regulatory process associated with federal land commodity production.  In addition, Mr. Etchart has held numerous civic, political and appointed posts, including Campaign Finance Chairman during the first successful election of Montana Governor Marc Racicot.  Mr. Etchart received a Bachelor of Arts degree in Sociology from Carroll College in 1970 and is an active member of numerous organizations, including the Knights of Columbus.

     Ronald L. Pattison received his CPA Certificate in August of 1984 after graduating with a B.A. in Business Administration, specializing in Accounting. Ron has specialized in the design and administration of defined contribution plans, but also has a working knowledge of the requirements for defined benefit plans. He was the manager of the Defined Contribution practice group in the Albuquerque, New Mexico office of a national consulting firm. Ron left that practice in December of 1990 to start Pattison Pension Specialists, Inc., where he is currently a principal.

Nominees to Board of Directors

   During the period covered by this Annual Report, the Company has made no material changes to the procedures by which security holders may recommend nominees to its Board of Directors.

Audit Committee

     Alpine Air established a standing audit committee in the first quarter of its 2002 fiscal year.  The committee has adopted a charter and currently consists of three members, Ron Pattison (Chair), Joe O. Etchart, and Max A. Hansen (Ex Officio).  Alpine Air does not have standing nominating committee.

Identification of Certain Significant Employees.

  Alpine Air has no employees who are not executive officers but who make or are expected to make significant contributions to Alpine Air.

Family Relationships.

  There are no family relationships between any director, executive officer or person nominated to become such.

   Except as indicated below, to the knowledge of management, during the past five years, no director, person nominated to become a director, executive officer, promoter or control person of Alpine Air:

     (1) filed a petition under the Federal bankruptcy laws or any state insolvency laws or was a general partner or executive officer of any business entity that filed any bankruptcy petition or for which a receiver, fiscal agent or similar officer was appointed by a court for the business or property of such person, either at the time of the bankruptcy or two years prior to that time;

     (2) was convicted in a criminal proceeding or named subject of a pending criminal proceeding (excluding traffic violations and other minor offenses);

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     (3) was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him from or otherwise limiting the following activities:

(i)  acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission, or an associated person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity;

(ii) engaging in any type or business practice; or\

(iii)  engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of Federal or State securities laws or Federal commodities laws;

     (4) was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or State authority barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in any activity described in paragraph (3)(i) above, or to be associated with persons engaged in any such activity;

    (5)  was found by a court of competent jurisdiction in a civil action or by the Securities and Exchange Commission to have violated any Federal or State securities law, and the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended, or vacated; or

     (6) was found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any Federal commodities law, and the judgment in such civil action or finding by the Commodities  Futures Trading Commission has not been subsequently reversed, suspended or vacated.

Code of Ethics.

     We filed our Code of Conduct for our executive officers with our Amended 10KSB dated October 31, 2003, and filed with the Securities and Exchange Commission on March 19, 2004.

Compliance with Section 16(a) of the Exchange Act.

     Alpine Air believes all forms required to be filed under Section 16 of the Exchange Act have been timely filed.

     On January 9, 2004, our Board of Directors adopted an Insider Trading Policy.  The purpose of this Policy is to ensure that our directors, executive stockholders and 10% stockholders comply with Section 16(a) of the Exchange Act and to establish procedures by which our insiders may buy and/or sell our common stock without violating the securities laws' prohibition against insider trading.

 

ITEM 11.  EXECUTIVE COMPENSATION

     The following tables set forth certain summary information concerning the compensation paid or accrued for each of Alpine Air's last three completed fiscal years to Alpine Air or its principal subsidiary Chief Executive Officer and each of its other executive officers that received compensation in excess of $100,000 during such period (as determined at October 31, 2009, the end of Alpine Air's last completed fiscal year). Unless indicated otherwise, all share figures in this Item reflect the three-for-one split of our issued and outstanding common stock in January, 2006.

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     Summary Compensation Table.

    SUMMARY COMPENSATION TABLE