L & S LIGHT & STRONG LTD. CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION CURRENT ASSETS: June 30, December 31, 2014 2013 Unaudited Audited US Sin thousands Cash and cash equivalents 68 184 Trade accounts receivable 407 216 Other accounts receivable 136 138 Income tax refundable Inventory 611 703 1,222 1,241 NON-CURRENT ASSETS: Fixed assets, net 606 674 1,828 1.915 CURRENT LIABILITIES: Credit from banks and others Trade accounts payable 604 668 Related parties 3,463 3,328 Other accounts payable 324 362 4,391 4,358 LONG-TERM LIABILITIES: Severance pay liability, net 61 51 LIENS AND COMMITMENTS CAPITAL DEFICIENCY: Share capital 482 482 Share premium 1,732 1,732 Accumulated deficit (4,671) (4,566) Reserves (167) (142) (2,624) (2,494) 1,828 1,915 Date of approval of the financial statements EFTA01190909 L & S LIGHT & STRONG LTD. CONDENSED INTERIM STATEMENTS OF COMPREHENSIVE INCOME Six months ended Year ended June 30, December 31, 2014 2013 2013 US Sin thousands Unaudited Revenue 2,161 1.466 3,602 Cost of operations 1,819 1,887 4,118 Gross profit (loss) 342 (421) (516) Selling and marketing expenses 34 49 97 General and administrative expenses 293 242 493 Profit (loss) from ordinary 15 (712) (1,106) operations Financial income Financial expenses* (120) (110) (216) Financial expenses, net (120) (110) (216) Capital gain from sale of fixed assets Loss for the period (105) (822) (1,322) * Financial expenses for the six-month period ended June 30, 2014 and 2013 and for the year ended December 31, 2013 includes interest to related parties of $97 thousand, $75 thousand and $168 thousand, respectively. EFTA01190910