American Business Services, Inc.

These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.  

In support of the Company’s efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by shareholders or directors. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances were considered temporary in nature and were not formalized by a promissory note.

As of June 30, 2016, there is a related party payable to Jacques Schira, for services provided as Corporate Officer and Director in capacity as such.  The accrued amount as of June 30, 2016 is $23,333.

We do not have any standard arrangements by which employees or directors are compensated for any services provided as employees or directors, however $11,667 has been paid to Jacques Schira as Corporate Officer and Director in his capacity as such, and a total of $35,000 was charged to operations in the period for these services with $23,333 accrued at June 30, 2016.

The Company occupies office space provided by Smith Electric Vehicles Corp. at no cost.  The value of the space is not considered materially significant for financial reporting purposes.

During the six months ended June 30, 2015, we received $73,555 by way of advances under a related party payable from Smith Electric Vehicles Corp. (“Smith”) (an 85.3% owner of American Business Services, Inc.)  Included within the advances was $33,801 in costs associated with negotiations with Smith and FDG Electric Vehicles Ltd (“FDG”), a related party.  These negotiations were in regards to Smith and FDG contributing funds and certain intellectual property (“IP”) to ABS for shares of stock in ABS. ABS was then to develop a strategy for business development using the IP acquired. These negotiations were terminated without any agreement being reached.  We also received $22 from a bank overdraft.  As a result we generated net cash provided by financing activities of $73,577 during the six months ended June 30, 2015.

The $24,441 decrease in net loss for the six months ended June 30, 2016 compared to the six months ended June 115, 2013 is due primarily to a $24,441, or 33%, decrease in our general and administrative expenses. These expenses decreased as a result of no legal fees for negotiations with Smith and FDG.