COMSovereign Holding (COMS) 8-K/A Financial Statements and Exhibits

Exhibit 99.1

LIGHTER THAN AIR SYSTEMS CORP.

Unaudited Financial Statements

For the Period Ended March 31, 2014

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LIGHTER THAN AIR SYSTEMS CORP.

BALANCE SHEETS

	3/31/2014			12/31/2013
	(Unaudited)
ASSETS
CURRENT ASSETS:
Cash	$	53,429		$	109,826
Accounts receivable - trade		135,050			8,085
Inventory		65,122			75,311
Prepaid expenses		1,626			1,186
Total current assets		255,227			194,408
PROPERTY AND EQUIPMENT, at cost:		6,561			6,561
Less - accumulated depreciation and amortization		(4,833	)		(4,563	)
Net property and equipment		1,728			1,998
OTHER ASSETS:
Goodwill		807,824			807,824
Total other assets		807,824			807,824
TOTAL ASSETS	$	1,064,779		$	1,004,230
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Due to parent	$	206,874		$	206,874
Accounts payable		95,667			72,985
Accounts payable due to related party		48,083			50,691
Accrued liabilities		60,140			17,926
Unearned revenue		-			1,650
Total current liabilities		410,764			350,126
TOTAL LIABILITIES		410,764			350,126
COMMITMENTS AND CONTINGENCIES		-			-
STOCKHOLDERS' EQUITY (DEFICIT):
Common stock, $.01 par value; authorized 100,000 shares;
100 shares issued and outstanding, at March 31, 2014 and 2013, respectively		1			1
Additional paid-in capital		922,499			922,499
Retained Earnings (Deficit)		(268,485	)		(268,396	)
Total stockholders' equity		654,015			654,104
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,064,779		$	1,004,230

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

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LIGHTER THAN AIR SYSTEMS CORP.

STATEMENTS OF OPERATIONS (UNAUDITED)

	For the Quarters Ended
	3/31/2014			3/31/2013
Revenues	$	229,350		$	475,506
Cost of good sold		139,239			98,490
Gross profit		90,112			377,016
General and administrative expense		89,699			52,951
Income (loss) from operations		412			324,065
Other income (expense)
Interest income		-			10
Interest expense		(501	)		-
Total other income (expense)		(501	)		10
NET INCOME (LOSS)	$	(89	)	$	324,075
Weighted average number of common shares outstanding - basic and diluted		100			100
Basic and diluted net income (loss) per share	$	(0.89	)	$	3,241

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

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LIGHTER THAN AIR SYSTEMS CORP.

STATEMENT OF STOCKHOLDER EQUITY (UNAUDITED)

					ADDITIONAL					TOTAL
	COMMON STOCK				PAID-IN		RETAINED			STOCKHOLDERS'
Description	SHARES		AMOUNT		CAPITAL		EARNINGS			EQUITY
BALANCE, DECEMBER 31, 2013		100	$	1	$	922,499	$	(268,396	)	$	654,104
Net loss								(89	)		(89	)
BALANCE, MARCH 31, 2014		100	$	1	$	922,499	$	(268,485	)	$	654,015

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LIGHTER THAN AIR SYSTEMS CORP.

STATEMENTS OF CASH FLOWS (UNAUDITED)

For the Three Months Ended March 31,	3/31/2014			3/31/2013
OPERATING ACTIVITIES:
Net (loss) income	$	(89	)	$	324,075
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation		270			479
Changes in current assets and liabilities:
Accounts receivable		(126,965	)		(213,056	)
Inventory		10,189			(172,732	)
Prepaid expenses and other		(440	)		31,500
Accounts payable		22,682			95,707
Due from related party		(2,608	)		(6,964	)
Accrued expense		42,214			(12,761	)
Deferred revenue		(1,650	)		(50,000	)
Net cash provided by (used in) operating activities		(56,397	)		(3,752	)
INVESTING ACTIVITIES:
		-			-
Net cash provided by investing activities		-			-
FINANCING ACTIVITIES:
Proceeds from loans from shareholders					103,506
Shareholder loan repayment		-			(103,506	)
Net cash provided by financing activities		-			-
NET (DECREASE) INCREASE IN CASH		(56,397	)		(3,752	)
CASH, beginning of period		109,826			162,297
CASH, end of period	$	53,429		$	158,545
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the quarters ended March 31:
Interest	$	501		$	-
Income taxes	$	-		$	-

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

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Ligher Than Air Systems Corp.

Notes to Unaudited Financial Statements

For the Period Ended March 31, 2014

1.   BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial statements and do not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.  The information furnished reflects all adjustments, consisting only of normal recurring items which are, in the opinion of management, necessary in order to make the financial statements not misleading.  The financial statements as of December 31, 2013 have been audited by an independent registered public accounting firm. These financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company’s 10K for the calendar year ended December 31, 2013 and in our Current Report on Form 8K filed with the SEC on August 13, 2014, as well as our Quarterly Report for the quarter ended June 30, 2014 filed August 14, 2014.

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