I like the concept, the conversion mechanic and having a progressively larger wing of fighters as allies is a cool idea, shame that the AI is broken but cool idea none the less. The bullet sprites are a bit small and hard to see against the space background, too bad there is no sound or music either :(
Other than that,I like the ship color editor and the "Asteroids" like physics are cool, maybe add a thruster effect at the back of the ship to hint that propulsion is active to know you are moving.
But really has a good base and a good original idea, good job :)