EX-99.1 2 bstn1221166kex99_1.htm 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 OF

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)