Exhibit 99.1
| L&S LIGHT & STRONG LTD. | STATEMENTS OF COMPREHENSIVE LOSS |
As at June 30 | As at December 31 | |||||||||||
2016 | 2015 | 2015 | ||||||||||
Unaudited | Audited | |||||||||||
US $ in thousands | ||||||||||||
| Current Assets | ||||||||||||
| Cash and cash equivalents | 121 | 209 | 14 | |||||||||
| Restricted bank deposit | 52 | 40 | 51 | |||||||||
| Trade accounts receivable | 683 | 456 | 452 | |||||||||
| Other accounts receivable | 89 | 113 | 109 | |||||||||
| Inventory | 1,138 | 577 | 767 | |||||||||
| 2,083 | 1,395 | 1,393 | ||||||||||
| Fixed Assets, Net | 488 | 552 | 503 | |||||||||
| 2,571 | 1,947 | 1,896 | ||||||||||
As at June 30 | As at December 31 | |||||||||||
2016 | 2015 | 2015 | ||||||||||
Unaudited | Audited | |||||||||||
US $ in thousands | ||||||||||||
| Current liabilities | ||||||||||||
| Short-term credit and current maturities of long- term loans | 156 | - | - | |||||||||
| Trade accounts payable | 894 | 299 | 639 | |||||||||
| Other accounts payable | 536 | 359 | 437 | |||||||||
| 1,586 | 658 | 1,076 | ||||||||||
| Long-term liabilities | ||||||||||||
| Related parties loan payable | 2,282 | 2,302 | 2,525 | |||||||||
| Loan from a bank | 108 | - | - | |||||||||
| Severance pay liability | 67 | 61 | 58 | |||||||||
| 2,457 | 2,363 | 2,583 | ||||||||||
| Stockholders' deficiency | ||||||||||||
| Share capital | 482 | 482 | 482 | |||||||||
| Share premium | 5,366 | 5,366 | 5,366 | |||||||||
| Reserves | 1,849 | 968 | 1,010 | |||||||||
| Share based compensation capital reserve | 2,367 | 689 | 1,355 | |||||||||
| Accumulated deficit | (11,536 | ) | (8,579 | ) | (9,976 | ) | ||||||
| (1,472 | ) | (1,074 | ) | (1,763 | ) | |||||||
| 2,571 | 1,947 | 1,896 | ||||||||||
| L&S LIGHT & STRONG LTD. | STATEMENTS OF COMPREHENSIVE LOSS |
| Period of 6 months ended | Period of 3 months ended | Year ended | ||||||||||||||||||
June 30 | June 30 | December 31 | ||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2015 | ||||||||||||||||
Unaudited | Audited | |||||||||||||||||||
US $ in thousands | ||||||||||||||||||||
| Statement of Operations | ||||||||||||||||||||
| Revenues | 3,117 | 1,953 | 1,572 | 918 | 4,019 | |||||||||||||||
| Cost of revenues | 2,592 | 1,998 | 1,303 | 1,030 | 4,147 | |||||||||||||||
| Gross profit (loss) | 525 | (45 | ) | 269 | (112 | ) | (128 | ) | ||||||||||||
| Research and development expenses | 1,012 | 751 | 815 | 624 | 909 | |||||||||||||||
| Selling and marketing expenses | 50 | 42 | 26 | 22 | 87 | |||||||||||||||
| General and administrative expenses | 430 | 339 | 284 | 218 | 1,131 | |||||||||||||||
| Operating loss | (967 | ) | (1,177 | ) | (856 | ) | (976 | ) | (2,255 | ) | ||||||||||
| Financial expenses | (593 | ) | (294 | ) | (411 | ) | (164 | ) | (619 | ) | ||||||||||
| loss for the period | (1,560 | ) | (1,471 | ) | (1,267 | ) | (1,140 | ) | (2,874 | ) | ||||||||||
| Other comprehensive income (loss): | ||||||||||||||||||||
| Actuarial gains | - | - | - | - | 6 | |||||||||||||||
| Foreign currency translation differences | (50 | ) | (36 | ) | 23 | (34 | ) | 6 | ||||||||||||
| (50 | ) | (36 | ) | 23 | (34 | ) | 12 | |||||||||||||
| Total comprehensive loss for the period | (1,610 | ) | (1,507 | ) | (1,244 | ) | (1,174 | ) | (2,862 | ) | ||||||||||
| Basic and dilutive loss per share (in US dollars) | (0.02 | ) | (0.03 | ) | (0.02 | ) | (0.02 | ) | (0.053 | ) | ||||||||||
| Weighted average shares | 54,394,185 | 52,743,476 | 54,394,185 | 52,744,661 | 53,769,589 | |||||||||||||||
| L&S LIGHT & STRONG LTD. | |
| STATEMENTS OF STOCKHOLDERS' DEFICIENCY |
| Period of 6 months ended | ||||||||||||||||||||||||||||
June 30 | ||||||||||||||||||||||||||||
2016 | ||||||||||||||||||||||||||||
Share Capital | Share premium | Shareholders transaction reserve | Foreign currency translation reserve | Share based compensation capital reserve | Accumulated deficit | Total | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||||
US $ in thousands | ||||||||||||||||||||||||||||
| BALANCE AT January 1 2016 | 482 | 5,366 | 1,180 | (170 | ) | 1,355 | (9,976 | ) | (1,763 | ) | ||||||||||||||||||
| Share based compensation to employees and service providers | - | - | - | - | 1,012 | - | 1,012 | |||||||||||||||||||||
| Capital contribution from interest at less than market rate on related party loans | - | - | 889 | - | - | - | 889 | |||||||||||||||||||||
| Other comprehensive loss | - | - | - | (50 | ) | - | - | (50 | ) | |||||||||||||||||||
| Loss for the period | - | - | - | - | - | (1,560 | ) | (1,560 | ) | |||||||||||||||||||
| BALANCE AT June 30, 2016 | 482 | 5,366 | 2,069 | (220 | ) | 2,367 | (11,536 | ) | (1,472 | ) | ||||||||||||||||||
| L&S LIGHT & STRONG LTD. | |
| STATEMENTS OF STOCKHOLDERS' DEFICIENCY |
Period of 3 months ended June 30 | ||||||||||||||||||||||||||||
2016 | ||||||||||||||||||||||||||||
| Share Capital | Share premium | Shareholders transaction reserve | Foreign currency translation reserve | Share based compensation capital reserve | Accumulated deficit | Total | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||||
| US $ in thousands | ||||||||||||||||||||||||||||
| BALANCE AT April 1 2016 | 482 | 5,366 | 1,234 | (243 | ) | 1,442 | (10,269 | ) | (1,988 | ) | ||||||||||||||||||
| Share based compensation to employees and service providers | - | - | - | - | 925 | - | 925 | |||||||||||||||||||||
| Capital contribution from interest at less than market rate on related party loans | - | - | 835 | - | - | - | 835 | |||||||||||||||||||||
| Other comprehensive loss | - | - | - | 23 | - | - | 23 | |||||||||||||||||||||
| Loss for the period | - | - | - | - | - | (1,267 | ) | (1,267 | ) | |||||||||||||||||||
| BALANCE AT June 30, 2016 | 482 | 5,366 | 2,069 | (220 | ) | 2,367 | (11,536 | ) | (1,472 | ) | ||||||||||||||||||
| L&S LIGHT & STRONG LTD. | |
| STATEMENTS OF STOCKHOLDERS' DEFICIENCY |
| Period of 6 months ended | ||||||||||||||||||||||||||||
June 30 | ||||||||||||||||||||||||||||
2015 | ||||||||||||||||||||||||||||
Share Capital | Share premium | Shareholders transaction reserve | Foreign currency translation reserve | Share based compensation capital reserve | Accumulated deficit | Total | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||||
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 | - | - | - | - | 689 | - | 689 | |||||||||||||||||||||
| Shares issued for services | - | 20 | - | - | - | - | 20 | |||||||||||||||||||||
| Other comprehensive loss | - | - | - | (36 | ) | - | - | (36 | ) | |||||||||||||||||||
| Loss for the period | - | - | - | - | - | (1,471 | ) | (1,471 | ) | |||||||||||||||||||
| BALANCE AT June 30, 2015 | 482 | 5,366 | 1,180 | (212 | ) | 689 | (8,579 | ) | (1,074 | ) | ||||||||||||||||||
| L&S LIGHT & STRONG LTD. | |
| STATEMENTS OF STOCKHOLDERS' DEFICIENCY |
Period of 3 months ended June 30 | ||||||||||||||||||||||||||||
2015 | ||||||||||||||||||||||||||||
Share Capital | Share premium | Shareholders transaction reserve | Foreign currency translation reserve | Share based compensation capital reserve | Accumulated deficit | Total | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||||
US $ in thousands | ||||||||||||||||||||||||||||
| BALANCE AT April 1 2015 | 482 | 5,346 | 1,180 | (178 | ) | - | (7,439 | ) | (609 | ) | ||||||||||||||||||
| Share based compensation to employees and service providers | - | - | - | - | 689 | - | 689 | |||||||||||||||||||||
| Shares issued for services | - | 20 | - | - | - | - | 20 | |||||||||||||||||||||
| Other comprehensive loss | - | - | - | (34 | ) | - | - | (34 | ) | |||||||||||||||||||
| Loss for the period | - | - | - | - | - | (1,140 | ) | (1,140 | ) | |||||||||||||||||||
| BALANCE AT June 30, 2015 | 482 | 5,366 | 1,180 | (212 | ) | 689 | (8,579 | ) | (1,074 | ) | ||||||||||||||||||
L&S LIGHT & STRONG LTD.
NOTES TO FINANCIAL STATEMENTS
| Period of 6 months ended | Period of 3 months ended | Year ended | ||||||||||||||||||
June 30 | June 3 | December 31 | ||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2015 | ||||||||||||||||
Unaudited | Audited | |||||||||||||||||||
US $ in thousands | ||||||||||||||||||||
| Cash Flows from Operating Activities | ||||||||||||||||||||
| Loss for the period | (1,560 | ) | (1,471 | ) | (1,267 | ) | (1,140 | ) | (2,874 | ) | ||||||||||
| Adjustments necessary to present cash flow from operating activities: | ||||||||||||||||||||
| Expenses not involving cash flows: | ||||||||||||||||||||
| Depreciation | 40 | 38 | 20 | 19 | 77 | |||||||||||||||
| Increase in severance pay liability, net | 8 | 8 | 5 | 4 | 8 | |||||||||||||||
| Capital gain | (1 | ) | - | - | - | - | ||||||||||||||
| Share based compensation to employees and service providers | 1,012 | 689 | 925 | 689 | 1,374 | |||||||||||||||
| Shares issued for services | - | 19 | - | 19 | - | |||||||||||||||
| 1,059 | 754 | 950 | 731 | 1,459 | ||||||||||||||||
| Decrease (Increase) in trade accounts receivable | (224 | ) | 235 | (86 | ) | 246 | 226 | |||||||||||||
| Decrease (Increase) in other accounts receivable | 15 | 43 | (12 | ) | 99 | 13 | ||||||||||||||
| Increase (Decrease) in inventory | (360 | ) | 241 | 43 | 41 | 32 | ||||||||||||||
| Increase (Decrease) in trade accounts payable | 246 | (223 | ) | (152 | ) | (88 | ) | 127 | ||||||||||||
| Increase (Decrease) in other accounts payable | 93 | 46 | 48 | (3 | ) | 136 | ||||||||||||||
| Change in related party loans, net | 561 | 270 | 401 | 139 | 574 | |||||||||||||||
| Revaluation loan | 4 | - | (1 | ) | - | - | ||||||||||||||
| Tax payments | - | - | - | - | 32 | |||||||||||||||
| 1,394 | 1,366 | 1,191 | 1,165 | 2,599 | ||||||||||||||||
| Net cash provided by (used in) operating activities | (166 | ) | (105 | ) | (76 | ) | 25 | (275 | ) | |||||||||||
L&S LIGHT & STRONG LTD.
NOTES TO FINANCIAL STATEMENTS
| Period of 6 months ended | Period of 3 months ended | Year ended | ||||||||||||||||||
June 30 | June 30 | December 31 | ||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2015 | ||||||||||||||||
US $ in thousands | ||||||||||||||||||||
| Cash Flows from Investing Activities | ||||||||||||||||||||
| Purchase of fixed assets | (21 | ) | (10 | ) | (8 | ) | (2 | ) | (18 | ) | ||||||||||
| Proceeds from sale of fixed assets | 3 | - | - | - | 1 | |||||||||||||||
| Increase in restricted bank deposit | - | - | - | - | (12 | ) | ||||||||||||||
| Net cash used in investing activities | (18 | ) | (10 | ) | (8 | ) | (2 | ) | (29 | ) | ||||||||||
| Cash flows from financing activities: | ||||||||||||||||||||
| Short-term bank credit, net | 103 | - | 27 | - | - | |||||||||||||||
| Receipt of loans and long-term liabilities | 208 | - | - | - | - | |||||||||||||||
| Proceeds from share issued for cash | - | 1 | - | 1 | 1 | |||||||||||||||
| Net cash provided by Financing Activities | 311 | 1 | 27 | 1 | 1 | |||||||||||||||
| Increase (Decrease) in cash and cash equivalents | 127 | (114 | ) | (57 | ) | 24 | (303 | ) | ||||||||||||
| Effect of changes in exchange rates on cash balances in foreign currencies | (20 | ) | 9 | (27 | ) | 23 | 3 | |||||||||||||
| Cash and cash equivalents at the beginning of the period | 14 | 314 | 205 | 162 | 314 | |||||||||||||||
| Cash and cash equivalents at end of period | 121 | 209 | 121 | 209 | 14 | |||||||||||||||
