EXHIBIT 99.2

 

Lárez, Mendez y Asociados

Public Accountants

J-40016904-6

 

INDEPENDENT AUDITORS' REPORT

 

To the shareholders of
Etelix.com USA LLC

 

We have reviewed the accompanying balance sheet of Etelix.com USA LLC at December 31, 2015, and the income statement, statement of changes in equity and cash flow, statement for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to issue a report on these financial statements based on our review.

 

We conducted our review in accordance with the International Standard on Review Engagements 2400. This Standard requires that we plan and perform the review to Obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

 

Based on our review, nothing has come to our attention that causes us to believe that the accompanying financial statements do not give a true and fair view (or are not presented fairly, in all material respects) in accordance with International Accounting Standards for Small and Medium-sized Entities.

 

/s/ Mariaexandra Lárez

Lic. Mariaexandra Lárez
Lárez Mendez y Asoc.
Certified Public Accountants
CCP. MI 20300

 

October 27, 2016

ETELIX.COM USA LLC

BALANCE SHEETS

AS OF DECEMBER 31,2015

 

ASSETS
CURRENT ASSETS
Cash and Banks			30,204
Accounts Receivable Customers			941,936
Other Receivables			42,309
Total current assets			1,014,449
PROPERTY AND EQUIPMENT - Net			409,070
TOTAL ASSETS			1,423,519
LIABILITIES AND SHAREHOLDER´S EQUITY
LIABILITIES
CURRENT LIABILITIES
Accounts Payable			769,091
Receivable Outstanding Invoices			—
Other Accounts Payables			15,698
TOTAL CURRENT LIABILITIES			784,789
TOTAL LIABILITIES			784,789
SHAREHOLDER´S EQUITY
Capital Stock			1,000
Additional Paid in Capital			550,515
Retained Earnings			64,227
Net Income			22,988
TOTAL SHAREHOLDER´S EQUITY			638,730
TOTAL LIABILITIES AND SHAREHOLDER´S  EQUITY			1,423,519

 

ETELIX.COM USA LLC

STATEMENTS OF INCOME

AS OF DECEMBER 31,2015

 

INCOME SALES			1,166,944
COST OF SERVICES			759,723
GROSS PROFIT			407,221
OPERATING EXPENSES
Amortizacion expense			26,726
Bank service Changes			42,039
Continuing Education			0
Depreciation Expense			63,454
Professional fees			37,560
Repairs and Maintenance			0
Taxes & Licenses			0
Technology Expense			206,113
Travel Expense			800
TOTAL OPERATING EXPENSES			376,692
OTHER INCOME AND EXPENDES
Other income			150
Federal Tax prior year			7,691
TOTAL OTHER INCOME AND EXPENDES			7,541
NET INCOME			22,988

 

ETELIX.COM USA LLC

STATEMENTS OF CASH FLOW

AS OF DECEMBER 31,2015

           

CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME			22,988
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and Amortization			90,180
Changes in working capital:
Accounts receivable			(499,220	)
Accounts Receivable Employees			0
Other accounts receivable			(32,862	)
Invoices pending issue			0
Prepaid Telecommunications			0
Accounts Receivable Shareholders			0
Intercompany Accounts Receivable			0
Sales Tax			7,691
Accounts payable to suppliers			423,984
Receivable Outstanding Invoices			0
Other payables			(33,107	)
Receivable Outstanding Invoices			0
Prepaid Telecommunications			0
Intercompany payable			0
Accounts payable Shareholder			0
Net cash provided by operating activities			(43,333	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additional Paid in Capital			0
Net Fixed Assets			(46,191	)
Capital Stock			0
Net Effect of Investment			0
Net cash used in investing activities			(46,191	)
CASH FLOWS FROM FINANCING ACTIVITY:
Decrease in Warranty Deposits			0
Net cash used in financing activity			0
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(66,536	)
Cash and cash equivalents - Beginning of period			96,740
Cash and cash equivalents - end of period			30,204

 

 

ETELIX.COM USA LLC

STATEMENTS OF SHAREHOLDERS' EQUITY

AS OF DECEMBER 31,2015

               

		COMMON		ADDITIONAL		RETAINED
		STOCK		PAID-IN		EARNINGS		TOTAL
				SHARE
BALANCE - DECEMBER 31, 2014		$1,000		$550,515		$64,227		$615,742
NET INCOME 2015		$0		$0		$22,988		$22,988
BALANCE - DECEMBER  31,2015		$1,000		$550,515		$87,215		$638,730

 

Etelix.com USA LLC

 

NOTES TO THE FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2015

 

1-. CONSTITUTION AND OPERATIONS:

 

The company was registered on September 30, 2008, at the Florida Department of State in the Division of Corporations. Under the registration number N ° 08000092741. It is a Limited Liability Company. The purpose for which this limited liability company is organized is any and all lawful business.

 

2-. PRESENTATION OF THE FINANCIAL STATEMENTS:

 

The accompanying financial statements have been prepared in historical values, based on the Original Financial Statements in US dollars.

 

3-. SUMMARY, MEANING AND POLICY OF THE ACCOUNTS:

 

Cash and Cash Equivalents: Refers to available and demand deposits at banks; That is, any item that allows the entity, at any time, to deposit or withdraw funds.

Accounts Receivable Clients: The company recognizes as accounts receivable all transactions invoices that have actually been individually reviewed and issued within the established periods and crossed with the counterparts of service provision.

Other accounts receivable: The Company recognizes in this item Telecom Prepaid for provisions to be made that will be converted into invoices and Short Term Loan Operations of New Life Omega Service and Caribbean Telecom as an investment in fixed assets to be realized.

Tangible and intangible Fixed Assets: These are recorded at cost from the date of purchase. Depreciation and amortization is calculated based on the straight-line method over the estimated useful life of the asset and the use of the asset. Depreciation and amortization expenses for the period are those corresponding to a normal period, based on the value of the asset divided by the estimated useful life.

 

4 -. PROPERTY AND EQUIPMENT

 

Property and Equipment consisted of the following at December 31, 2015

 

Description		$
Telecommunication Equipment			228.419
Telecommunication software			400.903
Computer equipment			5.728
Less: Depreciation and amortization			225.98
Total			409.07

 

Accounts Payable Suppliers and Invoices to be received: The company recognizes as accounts payable, all transactions invoices that have been individually reviewed and issued within the established periods and crossed with the counterparts of service provision.

Accounts Receivable Other: The company recognizes as other accounts receivable a loan granted in the short term to FULL RED SAC PERU.

Income from services: The revenues of the company are the product of the sale of minutes for long-distance telecommunications, network utilization and fund administration for ETELIX.Net and Etelix.UK collections and payments.

Cost of the Service: The service costs represent the purchase of minutes to the different operators with whom the activity is handled and the exchange of the service rendering is performed.

 

5-. COMMITMENTS - SHAREHOLDER´S EQUITY

 

The result of the company at the close of 2015 was $ 22.987 and 2014 $ 50.153 and 2013 $ 14.074. Social capital consists of $ 1.000 and unrealized capital of $ 550,515, by acquisition of assets.

 

6-. INCOME TAX:

 

The company, from the moment it decides to start operations in 2013, has filed all the corresponding IRS declarations for each period 2013, 2014 and 2015, but with legal extensions, as established in the IRS.