Exhibit 99.1
The following tables present the condensed consolidated Balance Sheets as of June 30, 2016 (unaudited) and December 31, 2015, the unaudited condensed consolidated Statements of Operations for the six months ended June 30, 2016 and June 30, 2015, the unaudited condensed consolidated Statements of Cash Flows for the six months ended June 30, 2016 and June 30, 2015, and the unaudited condensed consolidated statements of Changes in Shareholders’ Equity of Boston Carriers, Inc. for the six months ended June 30, 2016 and June 30, 2015.
BOSTON CARRIERS, INC., AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS AS OF
JUNE 30, 2016 AND DECEMBER 31, 2015
| June 30, | December 31, | |||||||
| 2016 | 2015 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 150,706 | $ | 385,628 | ||||
| Trade and other receivables, net | 142,491 | — | ||||||
| Inventories | 56,098 | — | ||||||
| Prepaid expenses and other current assets | 109,512 | — | ||||||
| Assets from discontinued operations | 1,911 | 265,525 | ||||||
| Total current assets | 460,718 | 651,153 | ||||||
| Leased vessel, net of accumulated depreciation | 2,832,449 | — | ||||||
| Non-current assets | ||||||||
| Security deposit for bareboat contract | — | 500,000 | ||||||
| Assets from discontinued operations | 139,962 | 175,919 | ||||||
| Total non-current assets | 139,962 | 675,919 | ||||||
| Total assets | $ | 3,433,129 | $ | 1,327,072 | ||||
| LIABILITIES AND SHAREHOLDERS' (DEFICIT)/ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable, trade | $ | 322,480 | $ | 22,957 | ||||
| Accrued liabilities | 89,409 | — | ||||||
| Share settled liabilities | 869,235 | — | ||||||
| Current portion of obligations under capital leases | 307,657 | — | ||||||
| Stock subscription liability | — | 1,000,000 | ||||||
| Notes payable | 556,834 | — | ||||||
| Other current liabilities | 18,227 | 6,000 | ||||||
| Liabilities from discontinued operations | 99,917 | 105,821 | ||||||
| Total current liabilities | 2,263,759, | 1,134,778 | ||||||
| Non-current liabilities | ||||||||
| Non-current portion of obligations under capital leases | 1,433,907 | — | ||||||
| Convertible notes, net | 729,014 | — | ||||||
| Stock subscription liability | 50,000 | — | ||||||
| Total non-current liabilities | 2,212,921 | — | ||||||
| Total liabilities | 4,476,680 | 1,134,778 | ||||||
| Commitments and contingencies | — | — | ||||||
| Shareholders’ (deficit)/ equity | ||||||||
| Series A Preferred shares, $0.0001 par value, 1,850,000 shares authorized, 1,850,000 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively | 185 | 185 | ||||||
| Series B Preferred shares, $0.0001 par value, 250,000 shares authorized, 0 and 250,000 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively | — | 25 | ||||||
| Series C Preferred shares, $0.0001 par value, 5,000,000,000 shares authorized, 0 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively | — | — | ||||||
| Common shares, $0.0001 par value, 40,000,000,000 shares authorized, 150,000,000 and 147,500,000 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively | 15,000 | 11,123 | ||||||
| Class B Common shares, $0.0001 par value, 5,000,000,000 shares authorized, 0 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively | — | — | ||||||
| Additional paid-in capital | 1,420,448 | 1,015,141 | ||||||
| Accumulated deficit | (2,479,184 | ) | (834,180 | ) | ||||
| Total shareholders’ (deficit)/ equity | (1,043,551 | ) | 192,294 | |||||
| Total liabilities and shareholders’ (deficit)/ equity | $ | 3,433,129 | $ | 1,327,072 | ||||
BOSTON CARRIERS, INC., AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2016 AND 2015
(UNAUDITED)
| For the six months ended June 30, | ||||||||
| REVENUES: | 2016 | 2015 | ||||||
| Revenues – Shipping related | $ | 847,622 | $ | — | ||||
| EXPENSES: | ||||||||
| Voyage expenses | (488,256 | ) | — | |||||
| Direct vessel operating expenses | (544,804 | ) | — | |||||
| General and administrative expenses | (143,289 | ) | (104,521 | ) | ||||
| Management fees | (62,356 | ) | — | |||||
| Stock based compensation | (930,902 | ) | — | |||||
| Depreciation and amortization | (52,031 | ) | — | |||||
| Total operating expenses | (2,221,638 | ) | (104,521 | ) | ||||
Operating loss from continuing operations | (1,374,016 | ) | (104,521 | ) | ||||
OTHER (EXPENSE)/ INCOME NET: | ||||||||
| Interest (expense)/ income, net | (150,054 | ) | 214 | |||||
| Other expense, net | (31,451 | ) | — | |||||
| Loss from continuing operations | (1,555,521 | ) | (104,307 | ) | ||||
| Loss from discontinued operations | (89,483 | ) | (70,853 | ) | ||||
| Net loss | $ | (1,645,004 | ) | $ | (175,160 | ) | ||
| Net loss per share - basic and diluted | ||||||||
| Continuing operations | $ | (0.01 | ) | $ | (0.00 | ) | ||
| Discontinued operations | $ | (0.00 | ) | $ | (0.00 | ) | ||
| Net loss per share - basic and diluted | $ | (0.01 | ) | $ | (0.00 | ) | ||
| Weighted average number of common shares outstanding - basic and diluted | 145,872,115 | 154,585,807 | ||||||
| BOSTON CARRIERS, INC., AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2016 AND 2015 (UNAUDITED) | ||||||||
| For the six months ended June 30, | ||||||||
| 2016 | 2015 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss from continuing operations | $ | (1,555,521 | ) | $ | (104,307 | ) | ||
| Net loss from discontinued operations | (89,483 | ) | (70,853 | ) | ||||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities | ||||||||
| Stock based compensation | 930,902 | — | ||||||
| Depreciation and amortization | 52,031 | — | ||||||
| Amortization of the beneficial conversion feature | 2,647 | — | ||||||
| Amortization of original issue discount asset | 13,035 | — | ||||||
| (Increase) decrease in: | ||||||||
| Trade and other receivables, net | (142,491 | ) | — | |||||
| Prepaid expenses and other current assets | (127,512 | ) | — | |||||
| Inventories | (56,098 | ) | — | |||||
| Increase (decrease) in: | ||||||||
| Accounts payable, trade | 333,486 | 24,197 | ||||||
| Accrued liabilities | 78,416 | — | ||||||
| Other current liabilities | 12,227 | 4,000 | ||||||
| Payments for special survey costs | (165,362 | ) | — | |||||
| Net cash used in operating activities - continuing operations | (745,647 | ) | (146,963 | ) | ||||
| Net cash provided by operating activities - discontinued operations | 258,377 | 8,024 | ||||||
| Net cash used in operating activities | (455,346 | ) | (138,939 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Initial direct cost on leased vessel | (2,000 | ) | — | |||||
| Net cash used in investing activities - continuing operations | (2,000 | ) | — | |||||
| Net cash used in investing activities | (2,000 | ) | — | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Proceeds from stock subscription liability | 50,000 | — | ||||||
| Proceeds from convertible notes, net | 250,000 | — | ||||||
| Proceeds from notes payable | 200,000 | — | ||||||
| Principal payments on capital lease | (108,681 | ) | — | |||||
| Net cash provided by financing activities - continuing operations | 391,319 | — | ||||||
| Net cash used in financing activities - discontinued operations | (188,223 | ) | ||||||
| Net cash provided by financing activities | 203,096 | — | ||||||
| Net decrease in cash | (254,250 | ) | (138,939 | ) | ||||
| Cash and cash equivalents - beginning of period | 406,867 | 392,701 | ||||||
| Cash and cash equivalents - end of period | 152,617 | 253,762 | ||||||
| Less cash and cash equivalents - end of period - discontinued operations | 1,911 | 253,762 | ||||||
| Cash and cash equivalents - end of period - continuing operations | $ | 150,706 | $ | — | ||||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||
| Cash paid for interest, net of amounts capitalized | $ | 74,103 | $ | — | ||||
| Non-cash investing and financing activities | ||||||||
| Purchase of vessel with capital lease | $ | (1,850,245 | ) | $ | — | |||
| Capitalized initial direct cost related to vessel with note payable and accrued interest | $ | (366,873 | ) | $ | — | |||
| Retirement of preferred stock by conversion to common stock | $ | 250 | $ | — | ||||
| Stock based compensation, issued stocks | $ | 61,667 | $ | — |
BOSTON CARRIERS, INC., AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 2016 AND 2015
| Preferred Shares | Common Shares | |||||||||||||||||||||||||||
| Number of Preferred Shares | Amount | Number of Common Shares | Amount | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ Equity/(Deficit) | ||||||||||||||||||||||
| Balance December 31, 2014 | 250,000 | $ | 25 | 158,503,951 | $ | 15,850 | $ | 1,011,198 | $ | (548,595 | ) | $ | 478,478 | |||||||||||||||
| Retirement of common stock to treasury stock | — | — | (47,278,938 | ) | (4,727 | ) | 4,727 | — | — | |||||||||||||||||||
| Net loss | — | — | — | — | — | (175,160 | ) | (175,160 | ) | |||||||||||||||||||
| Balance June 30, 2015 (unaudited) | 250,000 | $ | 25 | 111,225,013 | $ | 11,123 | $ | 1,015,925 | $ | (723,755 | ) | $ | 303,318 | |||||||||||||||
| Balance December 31, 2015 | 2,100,000 | $ | 210 | 111,225,013 | $ | 11,123 | $ | 1,015,141 | $ | (834,180 | ) | $ | 192,294 | |||||||||||||||
| Stock issued for services | — | — | 36,274,987 | 3,627 | 58,040 | — | 61,667 | |||||||||||||||||||||
| Beneficial conversion feature on the convertible notes | — | — | — | — | 535,715 | — | 535,715 | |||||||||||||||||||||
| Conversion of Series B preferred stock in common stock | (250,000 | ) | (25 | ) | 2,500,000 | 250 | (225 | ) | — | — | ||||||||||||||||||
| Dividends paid to shareholders of the old shell company (Integrated Inpatient Solutions, Inc.) | — | — | — | — | (188,223 | ) | — | (188,223 | ) | |||||||||||||||||||
| Net loss | — | — | — | — | — | (1,645,004 | ) | (1,645,004 | ) | |||||||||||||||||||
| Balance June 30, 2016 (unaudited) | 1,850,000 | $ | 185 | 150,000,000 | $ | 15,000 | $ | 1,420,448 | $ | (2,479,184 | ) | $ | (1,043,551 | ) | ||||||||||||||
