Exhibit 99.1
L&S LIGHT & STRONG LTD.
STATEMENTS OF FINANCIAL POSITION
| As at | ||||||||||||
| December | ||||||||||||
| As at March 31 | 31 | |||||||||||
| 2016 | 2015 | 2015 | ||||||||||
| Unaudited | Audited | |||||||||||
| US $ in thousands | ||||||||||||
| Current Assets | ||||||||||||
| Cash and cash equivalents | 205 | 162 | 14 | |||||||||
| Restricted bank deposit | 53 | 38 | 51 | |||||||||
| Trade accounts receivable | 612 | 673 | 452 | |||||||||
| Other accounts receivable | 79 | 206 | 109 | |||||||||
| Inventories | 1,213 | 585 | 767 | |||||||||
| 2,162 | 1,664 | 1,393 | ||||||||||
| Fixed Assets, Net | 511 | 540 | 503 | |||||||||
| 2,673 | 2,204 | 1,896 | ||||||||||
| Current liabilities | ||||||||||||
| Short-term credit from related parties and others (see note 5c) | 2,863 | - | - | |||||||||
| Trade accounts payable | 1,075 | 369 | 639 | |||||||||
| Other accounts payable | 500 | 342 | 437 | |||||||||
| 4,438 | 711 | 1,076 | ||||||||||
| Long-term liabilities | ||||||||||||
| Related parties loan payable | - | 2,044 | 2,525 | |||||||||
| Loans from banks and other credit providers | 159 | - | - | |||||||||
| Severance pay liability, net | 64 | 54 | 58 | |||||||||
| 223 | 2,098 | 2,583 | ||||||||||
| Stockholders' deficiency | ||||||||||||
| Share capital | 482 | 482 | 482 | |||||||||
| Share premium | 5,366 | 5,346 | 5,366 | |||||||||
| Share based compensation capital reserve | 1,442 | - | 1,355 | |||||||||
| Reserves | 992 | 1,024 | 1,010 | |||||||||
| Accumulated deficit | (10,270 | ) | (7,457 | ) | (9,976 | ) | ||||||
| (1,988 | ) | (605 | ) | (1,763 | ) | |||||||
| 2,673 | 2,204 | 1,896 | ||||||||||
| 1 |
L&S LIGHT & STRONG LTD.
STATEMENTS OF COMPREHENSIVE LOSS
| Period of 3 months | Year ended | |||||||||||
| ended | December | |||||||||||
| March 31 | 31 | |||||||||||
| 2016 | 2015 | 2015 | ||||||||||
| Unaudited | Audited | |||||||||||
| US $ in thousands | ||||||||||||
| Revenues | 1,545 | 1,035 | 4,019 | |||||||||
| Cost of revenues | 1,289 | 968 | 4,147 | |||||||||
| Gross profit (loss) | 256 | 67 | (128 | ) | ||||||||
| Research and development expenses | 197 | 127 | 909 | |||||||||
| Selling and marketing expenses | 24 | 20 | 87 | |||||||||
| General and administrative expenses | 146 | 121 | 1,131 | |||||||||
| Operating loss | (111 | ) | (201 | ) | (2,255 | ) | ||||||
| Financial expenses | (182 | ) | (130 | ) | (619 | ) | ||||||
| loss for the period | (293 | ) | (331 | ) | (2,874 | ) | ||||||
| Other comprehensive income (loss): Foreign currency translation differences | (73 | ) | (2 | ) | 6 | |||||||
| Actuarial gains | - | - | 6 | |||||||||
| (73 | ) | (2 | ) | 12 | ||||||||
| Total comprehensive loss for the period | (366 | ) | (333 | ) | (2,862 | ) | ||||||
| Basic and dilutive loss per share (in US dollars) | - | * | - | * | (0.053 | ) | ||||||
| Weighted average shares | 53,769,589 | 52,742,291 | 53,769,589 | |||||||||
* Less than 0.01 US dollar.
| 2 |
L&S LIGHT & STRONG LTD.
STATEMENTS OF STOCKHOLDERS' DEFICIENCY
Period of 3 months ended | ||||||||||||||||||||||||||||
| 2016 | ||||||||||||||||||||||||||||
| Share Capital | Share premium | Shareholders transaction reserve | Foreign currency translation reserve | Share based compensation capital reserve | Accumulated | Total | ||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||
| US $ in thousands | ||||||||||||||||||||||||||||
BALANCE AT January 1 2016 | 482 | 5,366 | 1,180 | (170 | ) | 1,355 | (9,977 | ) | (1,764 | ) | ||||||||||||||||||
| Share based compensation to employees and serviceproviders | - | - | - | - | 87 | - | 87 | |||||||||||||||||||||
| Capital contribution from interest at less than market rate on related party loans | - | - | 54 | - | - | - | 54 | |||||||||||||||||||||
| Loss for the period | - | - | - | - | - | (293 | ) | (293 | ) | |||||||||||||||||||
| Other comprehensive loss | - | - | - | (72 | ) | - | - | (72 | ) | |||||||||||||||||||
| BALANCE AT March 31 2016 | 482 | 5,366 | 1,234 | (242 | ) | 1,442 | (10,270 | ) | (1,988 | ) | ||||||||||||||||||
| 3 |
L&S LIGHT & STRONG LTD.
STATEMENTS OF STOCKHOLDERS' DEFICIENCY
| Period of 3 months ended March 31 | ||||||||||||||||||||||||
2015 | ||||||||||||||||||||||||
| Share Capital | Share premium | Shareholders transaction reserve | Foreign currency translation reserve | Accumulated deficit | Total | |||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||
| US $ in thousands | ||||||||||||||||||||||||
| BALANCE AT January 1 2015 | 482 | 5,346 | 1,202 | (176 | ) | (7,126 | ) | (272 | ) | |||||||||||||||
| Loss for the period | - | - | - | - | (331 | ) | (331 | ) | ||||||||||||||||
| Other comprehensive loss | - | - | - | (2 | ) | - | (2 | ) | ||||||||||||||||
| BALANCE AT March 31 2015 | 482 | 5,346 | 1,202 | (178 | ) | (7,457 | ) | (605 | ) | |||||||||||||||
| 4 |
L&S LIGHT & STRONG LTD.
STATEMENTS OF STOCKHOLDERS' DEFICIENCY
Period of 3 months ended | ||||||||||||||||||||||||||||
| 2015 | ||||||||||||||||||||||||||||
| Share Capital | Share premium | Shareholders transaction reserve | Foreign currency translation reserve | Share based compensation capital reserve | Accumulated | Total | ||||||||||||||||||||||
| Audited | ||||||||||||||||||||||||||||
| US $ in thousands | ||||||||||||||||||||||||||||
BALANCE AT January 1 2015 | 482 | 5,346 | 1,180 | (176 | ) | - | (7,108 | ) | (276 | ) | ||||||||||||||||||
| Share based compensation to employees and service providers | - | - | - | - | 1,355 | - | 1,355 | |||||||||||||||||||||
| Shares issued for cash | - | 1 | - | - | - | - | 1 | |||||||||||||||||||||
| Shares issued for services | - | 19 | - | - | - | - | 19 | |||||||||||||||||||||
| Loss for the period | - | - | - | - | - | (2,874 | ) | (2,874 | ) | |||||||||||||||||||
| Other comprehensive income | - | - | - | 6 | - | 6 | 12 | |||||||||||||||||||||
| BALANCE AT December 31 2015 | 482 | 5,366 | 1,180 | (170 | ) | 1,355 | (9,976 | ) | (1,763 | ) | ||||||||||||||||||
| 5 |
L&S LIGHT & STRONG LTD.
STATEMENTS OF CASH FLOWS
| Period of 3 months | Year ended | |||||||||||
| ended | December | |||||||||||
| March 31 | 31 | |||||||||||
| 2016 | 2015 | 2015 | ||||||||||
| Unaudited | Audited | |||||||||||
| US $ in thousands | ||||||||||||
| Cash flows from operating activities: | ||||||||||||
| Loss for the period | (293 | ) | (331 | ) | (2,874 | ) | ||||||
| Adjustments necessary to present cash flows from operating activities: | ||||||||||||
| Expenses not involving cash flows: | ||||||||||||
| Depreciation | 20 | 19 | 77 | |||||||||
| Increase in severance pay liability, net | 3 | 4 | 8 | |||||||||
| Share based compensation to employees and service providers | 87 | - | 1,374 | |||||||||
| Capital gain | (1 | ) | - | - | ||||||||
| 109 | 23 | 1,459 | ||||||||||
| Changes in operating asset and liability items: | ||||||||||||
| Decrease (Increase) in trade accounts receivable | (138 | ) | (11 | ) | 226 | |||||||
| Decrease (Increase) in other accounts receivable | 27 | (56 | ) | 13 | ||||||||
| Increase (Decrease) in inventory | (403 | ) | 200 | 32 | ||||||||
| Increase (Decrease) in trade accounts payable | 398 | (135 | ) | 127 | ||||||||
| Increase in other accounts payable | 45 | 49 | 136 | |||||||||
| Change in related party loans, net | 160 | 131 | 574 | |||||||||
| Revaluation loan | 5 | - | - | |||||||||
| 94 | 178 | 1,108 | ||||||||||
| Tax payments | - | - | 32 | |||||||||
| 203 | 201 | 2,599 | ||||||||||
| Net cash used in operating activities | (90 | ) | (130 | ) | (275 | ) | ||||||
| 6 |
L&S LIGHT & STRONG LTD.
STATEMENTS OF CASH FLOWS
| Period of 3 months | Year ended | |||||||||||
| ended | December | |||||||||||
| March 31 | 31 | |||||||||||
| 2016 | 2015 | 2015 | ||||||||||
| US $ in thousands | ||||||||||||
| Cash Flows from Investing Activities | ||||||||||||
| Purchase of fixed assets | (13 | ) | (8 | ) | (18 | ) | ||||||
| Increase in restricted bank deposit | - | - | (12 | ) | ||||||||
| Proceeds from sale of fixed assets | 3 | - | 1 | |||||||||
| (10 | ) | (8 | ) | (29 | ) | |||||||
| Cash flows from financing activities: | ||||||||||||
| Short-term bank credit, net | 76 | - | - | |||||||||
| Receipt of loans and long-term liabilities | 208 | - | - | |||||||||
| Proceeds from share issued for cash | - | - | 1 | |||||||||
| Net cash provided by financing activities | 284 | - | 1 | |||||||||
| Increase (Decrease) in cash and cash equivalents | 184 | (138 | ) | (303 | ) | |||||||
| Effect of changes in exchange rates on cash balances in foreign currencies | 7 | (14 | ) | 3 | ||||||||
Cash and cash equivalents at the beginning of theperiod | 14 | 314 | 314 | |||||||||
| Cash and cash equivalents at end of period | 205 | 162 | 14 | |||||||||
| 7 |
