The plug won't spark unless it is touching the engine or frame. You are generating a current, which needs to go to ground. It can't go to ground if it is not touching the bike somewhere.
So, if you have spark then - there are only 2 possible explanations.
1) Fuel (or lack thereof)
2) Timing of spark.
To rule out 1), invest in can of aerostart/start ya bastard/ether in a can. Spray liberally, kick. If it does not at least pop or something, 2) is looking to be a good option. If it pops and farts and bangs and sounds vaguely like running, you have a fuel issue.
For number 2
Buy timing light, dial gauge and spark plug adaptor report back when you have those.
- This guy, he knows. The proper way to troubleshoot an issue like that is proper tools! Find TDC and go from there.