Exhibit 99.1



LIGHTER THAN AIR SYSTEMS CORP.



Unaudited Financial Statements



For the Period Ended March 31, 2014






 
1

 

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.
 

 
 
2

 
 
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.
 
 
3

 
 
 
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  

 
4

 

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.

 
5

 

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.





 6