UNITED STATES SECURITIES AND EXCHANGE
COMMISSION

Washington, D.C. 20549

FORM 10-K



(Mark one)

| | ☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
| | - | -------------------------------------------------------------------------------------

For the fiscal year ended December 31, 2014

or

☐	TRANSITION REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from________________________
to __________________________



Commission file number 0-21384



INTERNATIONAL
PACKAGING AND LOGISTICS GROUP, INC.

____________________________________________________________________________________________

(Exact name of registrant as specified in
its charter)





|Delaware                        | 8980                         | 13-3367421         
|------------------------------- | ---------------------------- | -------------------
|(State or other jurisdiction of | (Primary Standard Industrial | (I.R.S. Employer   
|incorporation or organization)  | Classification Code Number ) | Identification No.)



|7700 Irvine Center Drive, Suite 870, Irvine, California | 92608     
|------------------------------------------------------- | ----------
|(Address of principal executive offices)                | (Zip code)



(949) 861-3560

____________________________________________________________________________________________

Registrant’s telephone number, including
area code



|Title of each class                                                | Name of each exchange on which registered
|------------------------------------------------------------------ | -----------------------------------------
|Common stock, par value $0.001 per share                           | None                                     
|Convertible Preferred stock, Series A, par value $0.0001 per
share | None                                     



Securities registered pursuant to section 12(g) of the Act:



Indicate by check mark if the registrant is a well-known seasoned
issuer, as defined in Rule 405 of the Securities Act. 	☐  Yes     ☒ No

Indicate by check mark if the registrant is not required to
file reports pursuant to Section 13 or Section 15(d) of the Act.	☐  Yes     ☒ No



Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements
for the past 90 days. 	 ☒  Yes     ☐ No



Indicate by check mark if disclosure of delinquent filers pursuant
to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best
of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form
10-K or any amendment to this Form 10-K. ☐



Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant
to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the
registrant was required to submit and post such files).    Yes [x]    No [ ]



Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated
filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.



|Large accelerated filer ☐ | Accelerated filer ☐        
|------------------------- | ---------------------------
|                          |                            
|Non-accelerated filer ☐   | Smaller reporting company ☒



Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Act).   ☐Yes     ☒ No



As of December 31, 2014 (the last business day of the registrant’s
year -end), the aggregate market value of the shares of the Registrant’s common stock held by non-affiliates (based upon
the closing price of such shares as quoted on the OTC Markets was approximately $84,755. Shares of the Registrant’s common
stock held by each executive officer and director and each by each person who owns 10 percent or more of the outstanding common
stock have been excluded in that such persons may be deemed to be affiliates of the Registrant. This determination of affiliate
status is not necessarily a conclusive determination for other purposes.



There were a total of 4,961,357 shares of the registrant’s
common stock outstanding as of April 30, 2015.



DOCUMENTS INCORPORATED BY REFERENCE













PART I



ITEM 1. Description of Business



Business



Present Business



On July 2, 2007, International Packaging
and Logistics Group, Inc. (“IPL Group” or “the Company”) through its wholly-owned subsidiary, YesRx.com
(“YesRx”) acquired all the outstanding shares of H&H Glass, Inc. (“H&H Glass” or “H&H”).
H&H Glass is a glass importer that supplies custom products such as perfume bottles and food condiment bottles, plus provides
complementary services such as container design and mold making. H&H Glass imports glass containers from Asia and distributes
to North America. H&H Glass acquires its products mainly from 3 to 5 suppliers in China and Taiwan and sells its products through
several distributors in the United States and Canada who service small to medium sized customers. H&H imports in excess of
1,000 shipping containers of glass a year. Depending on the size of the product, a container can contain anywhere from 3,000 to
300,000 pieces.



History



International Packaging and Logistics Group,
Inc., a Nevada corporation, was originally incorporated as Interactive Medical Technologies, Ltd., on June 2, 1986 in the state
of Delaware. On April 17, 2008, IPL Group converted from a Delaware corporation to a Nevada Corporation.



Effective February 3, 1998, Interactive
Medical Technologies, Ltd., changed its name to Kaire Holdings Incorporated, and effective May 28, 2008 its name changed from Kaire
Holdings Incorporated to International Packaging and Logistics Group, Inc.



On January 23, 2007, IPL Group and its
wholly-owned subsidiary, YesRx.com, executed a Letter of Intent whereby YesRx.com would acquire all of the outstanding stock of
H&H Glass Corporation, an Illinois corporation. H&H Glass was formed in 1989. As part of this transaction, on February
4, 2007, IPL Group discontinued its pharmacy business, and Effective Health, Inc., was shut down.



Acquisition of H&H Glass



On July 2, 2007, an Agreement and Plan
of Merger was executed between IPL Group, its wholly-owned subsidiary YesRx.com, and H&H Glass, whereby YesRx.com acquired
all of the outstanding stock of H&H Glass Corporation, an Illinois corporation in exchange for 3,915,000 shares of IPL Group’s
common stock representing 87% of IPL Group’s outstanding stock. As part of the merger agreement, 225,000 shares were issued
to Naccarato and Associates related to assistance with the merger.



As a result of the Merger, there was a
change in control of IPL Group. In accordance with ASC Topic 805, H&H Glass was defined as the accounting acquirer. While the
transaction is accounted for using the purchase method of accounting, in substance the transaction results in a reverse merger
with a recapitalization of IPL Group’s capital structure.



Acquisition of EZ Link Corporation



On January 1, 2010, International Packaging
and Logistics Group, Inc., (“IPL Group Inc.”), acquired a majority interest in EZ Link Holdings, Ltd., a company organized
under the laws of the British Virgin Islands on December 18, 2009, which controls EZ Link Corporation (“EZ Link”),
a logistics company headquartered in Taiwan. EZ Link was established in July 2003 under the laws of Taiwan, Republic of China.
EZ Link Holdings, Ltd. consolidates EZ Link under ASC Topic 810 as it controls EZ Link through a management contract. EZ Link is
a full service international freight forwarder, who has current networks to locations in China, Hong Kong, South East Asia, North
East Asia, North America, Latin America and Europe.





2







The capital stock of EZ Link Holdings,
Ltd. consists of 50,000 authorized shares of common stock, US$1.00 par value, of which 24,500 shares were issued and outstanding
and held by Seller (“Shares”). Upon the terms and conditions set forth below, Seller assigned fifty-one percent (51%)
of its shares, or 25,500 shares in the aggregate, to Buyer, such that, following such transaction, EZ Link Holdings, was a majority
owned subsidiary of Buyer. The parties agreed that 51% ownership of the issued and outstanding shares of EZ Link Holdings, Ltd
had an estimated market value of approximately US$857,143 (the “Purchase Price”).



(a) A portion
of the Purchase Price amount (US$457,143) was paid in common shares of IPL Group, Inc. as of the closing date based on a per share
value of US$1.00, or 457,143 shares. Such shares bear the appropriate restrictions.



(b) A portion
of the Purchase Price amount (US$400,000) was paid in Series B Convertible preferred shares which are convertible into shares
of IPL Group, Inc. common shares on a one for one basis. The preferred were valued at US$1.00 per share, and are exercisable pursuant
to the terms and conditions specified in the purchase agreement.



Vend-out of EZ Link Corporation



As of February 28, 2015, IPLO’s majority
interest in EZ Link Holdings, was sold back to EZ Link Holdings. for the following terms: In exchange for the fifty-one percent
(51%) of the EZ Link Corporation Shares, or 688,500 EZ Link Corporate Shares in the aggregate acquired by IPL, EZ Link Corp. will
return



(a) an aggregate of 457,143 shares of IPL
common shares issued on June 26, 2009 to the shareholders of EZ Link Corp as consideration of acquiring 51% of EZ Link Corporation;
and



(b) an aggregate of 400,000
Series A preferred shares issued on June 30, 2009 to the shareholders or assigns of EZ Link Corp as consideration of acquiring
51% of EZ Link Corporation.



Product
Liability Insurance



We carry product liability insurance through
Golden Eagle Insurance Corporation.



Competition



We do not compete with large glass manufacturing
companies because they require very large minimum orders. Other importers are our main competition, which operate on a smaller
scale, usually out of their homes and without name recognition. However, they do sometimes have a broader distribution network
and warehousing facilities which can cover almost all of the United States and Canada market area. H&H Glass feels its competitive
advantage is smaller minimum run requirements, shorter runaround on mold orders at a lower cost, and providing assistance in product
design. H&H Glass generally has a longer service history than its competitors.



Some of our larger competitors are Owens Illinois, Vitro, Weaton’s
and SGB Group (France).



Patents, Licenses and Trademarks



Not Applicable



Royalty Agreements



Not Applicable



Government Regulations



Not Applicable – No regulatory issues in Taiwan to restrict
IPL Group business.





3







Research and Development Plan



Not Applicable



Employees



H&H Glass has four (4) full time employees and one (1) part
time employee.



EZ Link has 30 full time employees.





ITEM 2. Description of Property



International Packaging and Logistics Group,
Inc.’s corporate headquarters are located in the H&H Glass offices at 7700 Irvine Center Drive, Suite 870, Irvine California
92618. H&H Glass rents approximately 2,900 square feet of office space
for its headquarters. The lease began on January 1, 2013 and expires on August 31, 2019. As of December 31, 2014, total monthly
base rent is $6,409 per month.





ITEM 3. Legal Proceedings



None





ITEM 4. Mine Safety Disclosure



Not applicable







4







PART II



ITEM 5.	Market for Common Equity and Related Shareholder
Matters



Our common stock is
quoted on the Over-the Counter Bulletin Board, (“the OTCBB”), under the trading symbol “IPLO”. The following
table set forth the quarterly high and low bid prices per share for our common stock. The bid prices reflect inter-dealer prices,
without retail markup, markdown, or commission and may not represent actual transactions. The low prices are often arbitrary prices
put in the system by market makers.





|                             | High    | Low    
|---------------------------- | ------- | -------
|Year ended December 31, 2014 |         |        
|First quarter                | $  0.59 | $  0.15
|Second quarter               | $  0.22 | $  0.02
|Third quarter                | $  0.04 | $  0.02
|Fourth quarter               | $  0.12 | $  0.04
|Year ended December 31, 2013 |         |        
|First quarter                | $  0.85 | $  0.12
|Second quarter               | $  0.75 | $  0.12
|Third quarter                | $  0.75 | $  0.12
|Fourth quarter               | $  0.75 | $  0.01





As of December 31, 2014, there were approximately
828 registered shareholders of the Company’s Common Stock with 4,961,357 shares issues and outstanding.



Dividends



To date, the Company has not declared or paid dividends on its
Preferred or Common Stock.



Transfer Agent and Registrar



The Company’s transfer agent is
Jersey Transfer and Trust Company located at 1250 Sussex Turnpike, #606 Mount Freedom, NJ 07970-0606.



Securities authorized for issuance under
equity compensation plans.



N/A



Recent
Sales of Unregistered Securities



N/A





ITEM 6. 	Selected Financial Data



N/A





ITEM 7. Management’s Discussion
and Analysis of Financial Condition and Results of Operations



SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS



This Annual Report
on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934.  In some cases, forward-looking statements are identified by terms such as “may”,
“will”, “should”, “could”, “would”, “expects”, “plans”,
“anticipates”, “believes”, “estimates”, “projects”, “predicts”, “potential”,
and similar expressions intended to identify forward-looking statements.





5







These forward-looking
statements are only predictions and involve known and unknown risks, uncertainties, and other factors that may cause our actual
results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity,
performance, or achievements expressed or implied by such forward-looking statements. Also, these forward-looking statements represent
our estimates and assumptions only as of the date of this Report. Except as otherwise required by law, we expressly disclaim any
obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained in this Report
to reflect any change in our expectations or any change in events, conditions, or circumstances on which any of our forward-looking
statements are based or to conform to actual results. We qualify all of our forward-looking statements by these cautionary statements.



Overview



We import glass containers
from Asia and distribute to the North American market including Canada. This was a result of International Packaging and Logistic
Group, Inc. (“IPL Group, Inc.”) acquiring H&H Glass in July of 2007. IPL Group, Inc. closed its pharmacy business
in February 2007.



H&H Glass is a
glass importer that supplies custom products such as perfume bottles and food condiment bottles, plus provides complementary services
such as product design and the making of product molds. H&H Glass acquires its products from 3 to 5 suppliers in China and
Taiwan and sells its products through several distributors in the United States and Canada who service small- to medium-sized customers.
H&H imports in excess of 1,000 containers of glass a year. Depending on the size of the product, a container can contain anywhere
from 3,000 to 300,000 pieces.



In 2010, International
Packaging and Logistics Group, Inc., acquired a majority interest in EZ Link Holdings, Ltd., a company organized under the laws
of the British Virgin Islands on December 18, 2009, which controls EZ Link Corporation, a logistics company headquartered in Taiwan.
EZ Link was established in July 2003 under the laws of Taiwan, Republic of China. EZ Link Holdings, Ltd. consolidates EZ Link under
ASC Topic 810 as it controls EZ Link through a management contract. EZ Link is a full service international freight forwarder,
who has current networks to locations in China, Hong Kong, South East Asia, North East Asia, North America, Latin America and Europe.



Vend-out of EZ Link Corporation



As of February 28, 2015, IPLO’s majority
interest in EZ Link Holdings, was sold back to EZ Link Holdings. for the following terms: In exchange for the fifty-one percent
(51%) of the EZ Link Corporation Shares, or 688,500 EZ Link Corporate Shares in the aggregate acquired by IPL, EZ Link Corp. will
return



(a) an aggregate of 457,143 shares of IPL
common shares issued on June 26, 2009 to the shareholders of EZ Link Corp as consideration of acquiring 51% of EZ Link Corporation;
and



(b) an aggregate of 400,000
Series A preferred shares issued on June 30, 2009 to the shareholders or assigns of EZ Link Corp as consideration of acquiring
51% of EZ Link Corporation.



Plan of Operation



Our general operating plan is as follows:



Short Term



|· | Continue growing revenue and profits through the existing business;                                                                                        
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------
|· | Expand the supply network for our products;                                                                                                                
|· | Expand our current business model to include other areas that
fall within our distribution expertise such as packaging using plastic and acrylic materials.
|· | Integrate our new logistics business into our overall plan                                                                                                 





6







Long Term



|· | Expand our service into other areas such as Europe and Australia
through the same supplier channel.  Our existing business model copies to other markets naturally.
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
|· | Expand the client base and areas of service of our logistics
business.                                                                                             



Results of Operations



Year Ended December 31, 2014 Compared to December
31, 2013



Revenue:



For the years ending December 31, 2014
and 2013, revenues were $35,728,361 and $34,005,056 respectively, for an increase of $1,723,305 or 4.9% over the same period in
2013. The increase in revenue is a mainly due to an improved USeconomy which resulted in increased volume.



Cost of Goods Sold:



Cost of goods sold for the years ending
December 31, 2014 and 2013 were $34,324,102 and $32,744,166 respectively, for an increase of $1,579,936 or 4.6% over the same period
in 2013. This increase is mainly due to the increase in business. This increase in cost of goods sold is consistent with the increase
in sales.



Gross Profit:



Gross profit was $1,404,259 and $1,260,890
for the years ending December 31, 2014 and 2013, an increase of $143,369 or 11.4% over the same period in 2013.   The
gross profit margin as a percent of sales for the years ending December 31, 2014 and 2013 was 3.9% and 3.7 % respectively for an
increase of 0.2%.



Operating Expenses:



Operating expenses were $1,139,046 and
$1,267,013 for the years ending December 31, 2014 and 2013, an increase of $52,033 (4.1%) over the same period in 2013. The increase
in operating expenses was mostly attributable to the following:





|Twelve months ending:      |  |   | 12/31/2014 |  |  |   | 12/31/2013 |  |  |   | $ VAR   |   |  |  | % VAR |   |  |                                                                                           
|-------------------------- |  | - | ---------- |  |  | - | ---------- |  |  | - | ------- | - |  |  | ----- | - |  | ------------------------------------------------------------------------------------------
|Salaries & Related Expense |  | $ | 581,481    |  |  | $ | 584,748    |  |  | $ | (3,267  | ) |  |  | -0.6  | % |  | The change in salaries was basically flat year to year.                                   
|Rent                       |  |   | 46,864     |  |  |   | 47,329     |  |  | $ | (465    | ) |  |  | -1.0  | % |  | Rent expenses was basically flat year to year.                                            
|Insurance                  |  |   | 108,483    |  |  |   | 103,503    |  |  | $ | 4,980   |   |  |  | 4.8   | % |  | Insurance expense was basically flat year to year.                                        
|Meals & Entertainment      |  |   | 16,574     |  |  |   | 12,383     |  |  | $ | 4,191   |   |  |  | 33.8  | % |  | H&H Glass had increased travel in 2014 resulting in an increase in meals and entertainment
|Legal                      |  |   | 36,000     |  |  |   | 36,000     |  |  | $ | 0       |   |  |  | 0.0   | % |  | No change.                                                                                
|Accounting                 |  |   | 124,597    |  |  |   | 171,785    |  |  | $ | (47,188 | ) |  |  | -27.5 | % |  | More effective management of accounting services                                          
|Travel Expense             |  |   | 325,955    |  |  |   | 231,077    |  |  | $ | 94,878  |   |  |  | 41.1  | % |  | H&H Glass had increased travel in 2014                                                    
|Miscellaneous              |  |   | 79,092     |  |  |   | 80,188     |  |  | $ | (1,096  | ) |  |  | -1.4  | % |  | Consistent year to year                                                                   
|Total Expenses             |  | $ | 1,319,046  |  |  | $ | 1,267,013  |  |  | $ | 52,033  |   |  |  | 4.1   | % |  |                                                                                           





7







Other Income (Expense):



Interest income (expense) for the years
ended December 31, 2014 and 2013 was ($299) and $1,873 respectively for a decrease of $2,172 (116.0%) from the same period in 2013.



Other expense for the years ended December
31, 2014 and 2013 was $Nil and ($567) respectively for a decrease of $567 (100.0%) over the same period in 2013.



Rental income for the years ended December
31, 2014 and 2013 was $nil and $1,245 respectively, a decrease of $1,245 (100.0%) over the same period in 2013



Liquidity and Capital Resources



Net cash provided by operating activities
for the year ended December 31, 2014 amounted to $23,323, which mainly consisted of the following: Annual net income of $52,415
plus depreciation expense of $7,192, a decrease in deferred taxes of $35,161, decrease in current assets of $1,204, assets for
sale/discontinued operation of $72,779 and Liabilities/discontinued operations of $127,262 offset by increase in accounts receivable
of $2,622,116, increase in inventory of $936,900and a decrease in other current assets of $18,851.



On December 31, 2014 the Company had total
assets of $12,291,762 compared to $8,931,524 on December 31, 2013, an increase of $3,360,238 or 37.6%.  The Company had
total stockholders’ equity of $3,194,937 on December 31, 2014, compared to total stockholders’ equity of $3,174,846
on December 31, 2013 an increase of $20,091 (0.6%).  As of December 31, 2014 the Company's working capital position increased
by $82,155 (7.6%) from working capital of $1,083,232 at December 31, 2013 to working capital of $1,1164,387 at December 31, 2014.



Capital Resources



Over the next twelve months, management
is of the opinion that sufficient working capital will be obtained from operations.



Federal Income Tax



The Company deferred tax assets and liabilities
for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this
method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets
and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable
to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary,
to reduce deferred tax assets to the amount expected to be realized. The provision for income taxes represents the tax payable
for the period and the change during the period in deferred tax assets and liabilities.



EZ Link Corporation is governed by Taiwan’s
Income Tax Law and local income tax laws. Pursuant to the Taiwan Income Tax Law, enterprises are subject to tax at a statutory
rate of 17%. The local government has also provided companies with various incentives to encourage economic development in the
region. Such incentives include reduced tax rates and other measures



Subsequent Events



International Packaging and Logistics Group, Inc. (“IPL
Group Inc.”) (Seller), entered into an agreement with its majority owned subsidiary, EZ LINK Corporation (“EZ LINK”)
(Buyer) which is a logistics company headquartered in Taiwan. EZ Link was established in July 2003 under the Company Law of Republic
of China. Under this agreement EZ LINK is acquiring back IPL Group Inc.’s share position in EZ Link in exchange for their
share position in IPL Group Inc. This transaction is effective as of February 28, 2015.





8







The terms are as follows:



IPL Group Inc. will assign its position in EZ LINK or 688,500
shares in the aggregate, to EZ LINK, such that, following such transaction, EZ LINK will no longer be a subsidiary of IPL Group
Inc.



EZ LINK will assign the following:



(a) The 457,143 shares
of common stock held by EZ LINK shareholders.

(b) The Series B Convertible
preferred shares held by EZ LINK shareholders.





ITEM 7A.	Quantitative and Qualitative
Disclosures About Market Risk



N/A





ITEM 8.	Financial Statements



The report of Independent Registered Public
Accounting Firm and financial statements are set forth in this report beginning on Page F-1.





ITEM 9.Changes in and
Disagreements with Accountants on Accounting and Financial Disclosure



None





ITEM 9A.	Controls and Procedures.



(a) Evaluation of disclosure controls and
procedures. Our Chief Executive Officer and Principal Financial Officer, after evaluating the effectiveness of our "disclosure
controls and procedures" (as defined in the Securities Exchange Act of 1934 Rules 13a-15(e) and 15d-15(e)) as of the end of
the period covered by this Annual Report on Form 10-K (the "Evaluation Date"), were unable to conclude that as of the
Evaluation Date, our disclosure controls and procedures are effective to provide reasonable assurance that information we are required
to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the
time periods specified in the Securities and Exchange Commission rules and forms.



(b) Changes in internal control over financial
reporting. There were no changes in our internal control over financial reporting during our most recent fiscal quarter that materially
affected, or were reasonably likely to materially affect, our internal control over financial reporting.



Limitations on the Effectiveness of Internal
Controls



Disclosure controls and procedures, no
matter how well designed and implemented, can provide only reasonable assurance of achieving an entity's disclosure objectives.
The likelihood of achieving such objectives is affected by limitations inherent in disclosure controls and procedures. These include
the fact that human judgment in decision-making can be faulty and that breakdowns in internal control can occur because of human
failures such as simple errors or mistakes or intentional circumvention of the established process.





9







Management's Report on Internal Control
over Financial Reporting



Our management is responsible for establishing
and maintaining adequate internal control over financial reporting, as such term is defined in the Securities Exchange Act of 1934
Rule 13a-15(f). Our management conducted an evaluation of the effectiveness of our internal control over financial reporting based
on the framework in Internal Control - Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway
Commission ("2013 COSO Framework").



A material weakness is a deficiency or
combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material
misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.



Our management concluded we have a material
weakness due to lack of segregation of duties. Our size has prevented us from being able to employ sufficient resources to enable
us to have an adequate level of supervision and segregation of duties within our internal control system. There is mainly one person
involved in processing of transactions. Therefore, it is difficult to effectively segregate accounting duties. We have hired an
additional administrative person and retained an outside professional firm to assist in the separation of duties on an ongoing
basis. The use of the outside firm has proven successful in assisting in the separation of duties. However, additional people are
not needed to do the administrative workm therefore segregation of duties will continue to be an ongoing weakness.



Similarly, the EZ Link operation also has
a material weakness due to lack of segregation of duties. Its size has prevented us from being able to employ sufficient resources
to enable us to have an adequate level of supervision and segregation of duties within our internal control system. We have retained
an outside professional firm to assist in the separation of duties on an ongoing basis. The use of the outside firm has proven
successful in assisting in the separation of duties. However, additional people are not needed to do the administrative work therefore
segregation of duties will continue to be an ongoing weakness.



Based on this evaluation and because of
the material weaknesses, management has concluded that our internal control over financial reporting was not effective as of December
31, 2014.



This annual report does not include an
attestation report of the Company's independent registered public accounting firm regarding internal control over financial reporting.
Management's report was not subject to attestation by the Company's independent registered public accounting firm pursuant to rules
of the SEC that permit the company to provide only management's report on internal control in this annual report.





Item 9B.	Other Information.



N/A





10





PART III



ITEM 10.	Directors,
Executive Officers, Promoters and Control Persons; Compliance with Section 16(a) of the Exchange Act



The Company has three
directors and a sole executive officer, and their ages and positions with the Company as of December 31, 2011 are as follows:





|Name            | Age | Office                           | Since       
|--------------- | --- | -------------------------------- | ------------
|Owen Naccarato  | 65  | Director, CEO
    and Acting CFO | April 2012  
|William Gresher | 68  | Director                         | January 2007
|Allen Lin       | 61  | Director                         | January 2007



Allen Lin has over
20 years of packaging industry and financial venture investment experiences which included successful start-ups, H & H Glass
Inc., in 1989, where he is instrumental in global manufacturing outsourcing for rigid packaging material (including but not limited
to glass containers) in packaging distribution solutions for North America. Mr. Lin recently earned a degree of Mater of International
Law from a national university in Germany and also holds an MBA from a national university in Chicago, Illinois, USA (graduated
with Honor). Mr. Lin has gained international exposure from the tasks involved in identifying merger and acquisition candidates
in the packaging distribution network and promoting his packaging business in the North American, South American and European continents.
Born and raised in Taiwan, Mr. Lin is fluent in both Chinese and English.



William Gresher retired
in July 2009 as the Chief Financial Officer with The Mexmil Company where he had been for 4 years. Prior to Mexmil, Mr. Gresher
held high level financial positions in several companies including the Chief Financial Officer for Distinctive Appliances, Inc.
(DACOR), in Pasadena, CA, Vice President of Finance for Fadal Engineering in Chatsworth, CA., Vice President Corporate Financial
Planning for Allergan Inc., Irvine, CA., Vice President Controller, Bentley Laboratories, Inc., Irvine CA, a division of Baxter
International, Inc., Controller of Bell & Howell Co., Lincolnwood, IL., and several years with Arthur Andersen & Co., Chicago,
IL. Mr. Gresher has a Bachelor’s Degree in Accounting and an MBA from Northern Illinois University. Mr. Gresher started his
career as a CPA with Arthur Andersen & Co. Next, Mr. Gresher moved to Bell & Howell for 8 years of which 4 years were spent
in Tokyo, Japan where he was Plant Controller for their manufacturing operations. The next 10 years were spent with Baxter International
in a variety of managerial positions including Director of Finance – Asia Pacific, Assistant Corporate Controller and Vice
President Finance for Bentley Laboratories in Irvine California. At Allergan Inc., Mr. Gresher held Vice President positions for
the Humphrey, International and European divisions, as well a Vice President Corporate Financial Planning.



Owen Naccarato has
been corporate counsel and secretary for the Company since 2007. Mr. Naccaratoalsohas for the last fifteen years
been a practicing attorney specializing in corporate and securities law. Prior to practicing law, Mr. Naccarato held various high
level financial and operating positions with fortune 500 firms. Mr. Naccarato is a member of the American Bar Association, the
California State Bar Association, the Orange County and the Los Angeles County Bar Associations. Mr. Naccarato has a J.D. from
Western State University, an MBA from DePaul University and an undergraduate degree in accounting from Northern Illinois University.
Mr. Naccarato is also a Director for Greengro Technologies Inc.



Compensation of Directors:



Directors received
remuneration totaling in aggregate of $12,000 during the years ended December 31, 2014 and 2013. Directors receive $500 a month
in directors’ fees with the exception of Mr. Lin who received no compensation for directors services for the years ended
December 31, 2014 and 2013.





11







Compliance with Section 16(a) of the Securities
Exchange Act of 1934



Section 16(a) of the
Securities Exchange Act of 1934 requires the Company’s directors and executive officers, and persons who own more than 10%
of a registered class of the Company’s equity securities to file with the Securities and Exchange Commission initial reports
of ownership and reports of changes in ownership of Common Stock and other equity securities of the Company. Officers, directors
and greater than 10% shareholders are required by SEC regulations to furnish the Company with copies of all Section 16(a) forms
they file.



To the Company’s
knowledge, based solely on its review of the copies of such reports furnished to the Company and written representations that no
other reports were required during the fiscal year ended December 31, 2011, all Section 16(a) filing requirements applicable to
its officers, directors and greater than 10% beneficial owners were complied with.



Code of Ethics for the Chief Executive Officer and the Principal
Financial Officer



On September 7, 2004,
the Board of Directors of the Company adopted the Code of Ethics for Chief Executive Officer and the Principal Financial Officer,
which was included as exhibit 14.1 with the December 31, 2004 Form 10KSB.





ITEM 11.	Executive Compensation



The following table
sets forth certain summary information regarding compensation paid by IPL Group for services rendered during the fiscal years ended
December 31, 2014 and 2013, respectively, to the Company’s Chief Executive Officer and Chief Financial Officer during such
period.



Executive Compensation:



SUMMARY COMPENSATION
TABLE



|Name and principal position    |  | Year |      |  | Salary ($) |  |         | Bonus ($) |  |  | Stock Awards ($) |  |  | Option Awards ($) |   |  | Non-Equity Incentive Plan Compensation ($) |  |   | Nonqualified Deferred Compensation Earnings ($) |  |  | All Other Compensation ($) |  |  | Total ($) |  
|------------------------------ |  | ---- | ---- |  | ---------- |  | ------- | --------- |  |  | ---------------- |  |  | ----------------- | - |  | ------------------------------------------ |  | - | ----------------------------------------------- |  |  | -------------------------- |  |  | --------- | -
|Owen Naccarato, CEO and CFO    |  |      | 2014 |  |            |  | 0       |           |  |  | 0                |  |  |                   | 0 |  |                                            |  | 0 |                                                 |  |  | 0                          |  |  |           | 0
|                               |  |      | 2013 |  |            |  | 0       |           |  |  | 0                |  |  |                   | 0 |  |                                            |  | 0 |                                                 |  |  | 0                          |  |  |           | 0
|                               |  |      |      |  |            |  |         |           |  |  |                  |  |  |                   |   |  |                                            |  |   |                                                 |  |  |                            |  |  |           |  
|Allen Lin, President H&H Glass |  |      | 2014 |  |            |  | 305,000 |           |  |  | 0                |  |  |                   | 0 |  |                                            |  | 0 |                                                 |  |  | 0                          |  |  |           | 0
|                               |  |      | 2013 |  |            |  | 270,000 |           |  |  | 0                |  |  |                   | 0 |  |                                            |  | 0 |                                                 |  |  | 0                          |  |  |           | 0



During 2014 and 2013, Mr. Naccarato received
$6,000 in annual director’s fees, included above.





12







Outstanding Equity Awards at Fiscal Year-end



The following table sets forth certain summary
information regarding outstanding equity awards as of December 31, 2014 to the Company's Chief Executive Officer and Chief Financial
Officer and most highly paid executive officers during such period.



OUTSTANDING
EQUITY AWARDS AT FISCAL YEAR-END



|OPTION AWARDS  |  | STOCK AWARDS                                                          |  
|-------------- |  | --------------------------------------------------------------------- | -
|Name           |  | Number of Securities Underlying Unexercised Options  (#)  Exercisable |  
|Owen Naccarato |  |                                                                       | 0
|Allen Lin      |  |                                                                       | 0





13







Compensation of Directors

|DIRECTOR COMPENSATION
|---------------------
|                     
|Name                 
|Owen Naccarato       
|William Gresher      
|Allen Lin            



Options/SAR Grants in the Last Fiscal
Year:



None



Employment Agreements



None



Employee Benefits



H&H Glass offers health insurance to
all its employees. H&H Glass also has a discretionary post-employment benefit plan available to its employees.



EZ Link does not have an employee benefit
plan.



ITEM 12.	Security Ownership
of Certain Beneficial Owners and Management



The following table sets forth certain
information known to the Company with respect to the beneficial ownership of the Company’s common stock as of December 31,
2013 by (i) each person who is known by the Company to own beneficially more than 5% of the Company's common stock and (ii) the
Company’s directors and executive officers, and (iii) all officers and directors of the Company as a group.



|                                                                                                       |  | Shares beneficially owned (1) |          
|------------------------------------------------------------------------------------------------------ |  | ----------------------------- | ---------
|                                                                                                       |  | Number of shares              |          
|                                                                                                       |  |                               |          
|Standard Resources Ltd. (3) 8/F Hing Wong Court 21-23 Tai Wong Street East Wanchi, Hong Kong           |  |                               | 3,915,000
|                                                                                                       |  |                               |          
|Wu Chia Chen 2F., No.245 Sec. 2, Bade Rd Zhongshan District, Taipei City 104 Taiwan, Republic of China |  |                               | 274,286  
|                                                                                                       |  |                               |          
|Officers and Directors as a group                                                                      |  |                               | 3,915,000





14







(1) Beneficial Ownership is determined
in accordance with the rules of the Securities and Exchange Commission and generally includes voting or investment power with respect
to securities. Shares of common stock subject to options or warrants currently exercisable or convertible, or exercisable or convertible
within 60 days of December 31, 2013 are deemed outstanding for computing the percentage of the person holding such option or warrant
but are not deemed outstanding for computing the percentage of any other person. Except as pursuant to applicable community property
laws, the persons named in the table have sole voting and investment power with respect to all shares of common stock beneficially
owned.



(2) Percentage based on 4,961,357 shares of common stock outstanding
as of December 31, 2014.



(3) Standard Resources LTD is a related company to Allen Lin,
the founder and CEO of H&H Glass.





ITEM 13.	Certain Relationships
and Related Transaction



Allen Lin



The Company paid Mr. Allen Lin, President
of H&H Glass and a member of the board of directors of the Company, salary of $305,000 and $230,000 for the years ended December
31, 2014 and 2013, respectively.

Josephine Lin



Josephine Lin, Mr. Lin’s wife, is
employed by the Company and was paid a salary of $58,000 and $56,000 for the years ended December 31, 2014 and 2013, respectively.



Owen Naccarato



During 2014, Mr. Naccarato, the Company’s
Chief Executive Office and acting Chief Financial Officer, was paid director fees of $6,000 and $36,000 for legal fees performed.



William Gresher



During 2014 and 2013, Mr. Gresher, a member
of the Board of Directors, was paid $6,000 per year director fees.



Easy Global Company, Ltd.



The chairman of Easy Global Company, Ltd.
is also a shareholder of EZ Link Corporation. EZ Link rents its offices from Easy Global Company, Ltd. During the year ended December
31, 2014 and 2013, EZ Link paid $45,257 and $34,560 respectively to Easy Global Company for rent expense.





ITEM 14.Principal Accountant
Fees and Services



The Company paid the following fees in each of the prior two
fiscal years to its independent certified public accountants, PMB Helin Donovan, LLP and RBSM LL:



|                   |  | For the Year Ended December 31, |        
|------------------ |  | ------------------------------- | -------
|                   |  | 2014                            |        
|Audit Fees         |  | $                               | 78,750 
|Audit-Related Fees |  |                                 | 69,000 
|Tax Fees           |  |                                 | 25,505 
|All Other Fees     |  |                                 |        
|Total Fees         |  | $                               | 173,255





15







All of the audit fees, and all except $5,000 of the 2014 audit-related
fees, were to our former auditor, PMB Helin Donovan, LLP. The $15,000 of the 2014 audit –related fees, and all of the tax
fees, were to our current auditor, RBSM LL.



"Audit Fees" consisted of fees
billed for services rendered for the audit of the Company’s annual financial statements and audit related fees are for review
of the financial statements included in the Company’s quarterly reports on Form 10-Q. Tax fees are for tax preparation and
compliance services.





ITEM 15.	Exhibits,
List and Reports in Form 10-K





|(a) | Exhibits
|--- | --------





| | 31.1    | Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) ( Section 302 of the Sarbanes-Oxley Act of 2002) 
| | ------- | -------------------------------------------------------------------------------------------------------------------------
| |         |                                                                                                                          
| | 31.2    | Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) ( Section 302 of the Sarbanes-Oxley Act of 2002) 
| |         |                                                                                                                          
| | 32.1    | Certification of the Chief Executive Officer pursuant to 18 U.S.C.ss.1350 (Section 906 of the Sarbanes-Oxley Act of 2002)
| |         |                                                                                                                          
| | 32.2    | Certification of the Chief Financial Officer pursuant to 18 U.S.C.ss.1350 (Section 906 of the Sarbanes-Oxley Act of 2002)
| |         |                                                                                                                          
| | 101.INS | XBRL Instance Document*                                                                                                  
| | 101.SCH | XBRL Schema Document*                                                                                                    
| | 101.CAL | XBRL Calculation Linkbase Document*                                                                                      
| | 101.DEF | XBRL Definition Linkbase Document*                                                                                       
| | 101.LAB | XBRL Label Linkbase Document*                                                                                            
| | 101.PRE | XBRL Presentation Linkbase Document*                                                                                     





* To be filed by amendment.



|(b) | Reports on Form 10-K
|--- | --------------------





16









Signatures



In accordance with Section 13 or 15(d) of
the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



International Packaging and Logistics Group,
Inc.



By: /s/Owen Naccarato

Owen Naccarato Chief Executive Officer



Dated: May 14, 2015



In accordance with the Exchange Act, this
report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.



|/s/Owen Naccarato                        |  | May 14, 2015
|---------------------------------------- |  | ------------
|Owen Naccarato Chief Executive Officer,  |  |             
|Principal Financial Officer and Director |  |             
|                                         |  |             
|/s/	Allen Lin                            |  | May 14, 2015
|Director                                 |  |             
|                                         |  |             
|/s/	William Gresher                      |  | May 14, 2015
|Director                                 |  |             







17







International
Packaging and Logistics Group, Inc.,

and
Subsidiaries



Consolidated
Financial Statements

for
the Years Ended

December
31, 2014 and 2013







C O N T E N T S





|Reports of Independent Registered Public Accountants           | F-1 – F-2    
|-------------------------------------------------------------- | -------------
|                                                               |              
|Consolidated Balance Sheets                                    | F-3 –  F-4   
|                                                               |              
|Consolidated Statements of Operations and Comprehensive Income | F-5 –  F-6   
|                                                               |              
|Consolidated Statements of Changes in Stockholders’ Equity     | F-7          
|                                                               |              
|Consolidated Statements of Cash Flows                          | F-8 –  F-9   
|                                                               |              
|Notes to Consolidated Financial Statements                     | F-10 –   F-28





18











|rbsm-logo-rgb | 101 Larkspur Landing Circle
        Suite 321
        Larkspur, CA 94939
        415-306-7611
        www.rbsmllp.com
|------------- | ---------------------------------------------------------------------------------------------------------------------





Report of Independent
Registered Public Accounting Firm



The Board of Directors and Stockholders of

International Packaging and Logistics Group, Inc.:



We have audited the accompanying balance
sheets of International Packaging and Logistics Group, Inc. (the “Company”) as of December 31, 2014, and the related
consolidated statements of operations and comprehensive income , consolidated statements of changes in stockholders’ equity
and consolidated statements of cash flows for the year ended December 31,2014.  These consolidated financial statements are
the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial
statements based on our audit.



We conducted our audit in accordance with
the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform
the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement.
The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. 
Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s
internal control over financial reporting.  Accordingly, we express no such opinion.  An audit also includes examining,
on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall consolidated
financial statement presentation. We believe that our audit provide a reasonable basis for our opinion.



In our opinion, the consolidated financial
statements referred to above present fairly, in all material respects, the consolidated financial position of International Packaging
and Logistics Group, Inc. as of December 31, 2014 and the results of its operations and its cash flows for the year ended December
31, 2014 in conformity with accounting principles generally accepted in the united States of America.





RBSM LLP



/s/
RBSM LLP



May 13, 2015

Larkspur, CA





F-1











Report of Independent Registered Public
Accounting Firm





The Board of Directors and Stockholders of

International Packaging and Logistics Group, Inc.:



We have audited the accompanying consolidated balance sheet
of International Packaging and Logistics Group, Inc. (the “Company”) as of December 31, 2013, and the related consolidated
statement of operations and comprehensive income, consolidated statement of stockholders’ equity and consolidated statement
of cash flows for the year ended December 3, 2013.  These consolidated financial statements are the responsibility of the
Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our
audit.



We conducted our audit in accordance with
the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement.
The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. 
Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s
internal control over financial reporting.  Accordingly, we express no such opinion.  An audit also includes examining,
on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall consolidated
financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.



In our opinion, the consolidated financial
statements referred to above present fairly, in all material respects, the consolidated financial position of International Packaging
and Logistics Group, Inc. as of December 31, 2013, and the results of its operations and its cash flows for the year ended December
31, 2013 in conformity with accounting principles generally accepted in the United States of America.



The consolidated balance sheet of International
Packaging and Logistics Group, Inc. and the related consolidated statements of operations,  comprehensive income
and cash flows for the year ended December 31, 2013, have been restated to present discontinued operations for consistency
and comparability with the current period presentation.  See note 12 for additional information.





PMB Helin Donovan, LLP



/s/ PMB Helin Donovan, LLP





May 12, 2015

Austin, Texas







F-2









International
Packaging and Logistics Group, Inc., and Subsidiaries

Consolidated
Balance Sheets

As
of December 31, 2014 and December 31, 2013



|                                               |  | December 31 |            |   | December 31 |  
|---------------------------------------------- |  | ----------- | ---------- | - | ----------- | -
|                                               |  | 2014        |            |   | 2013        |  
|Current Assets                                 |  |             |            |   |             |  
|Cash                                           |  | $           | 661,510    |   |             | $
|Accounts receivable, net                       |  |             | 8,083,254  |   |             |  
|Inventory                                      |  |             | 936,900    |   |             |  
|Other current assets                           |  |             | (2,423     | ) |             |  
|Prepaid taxes                                  |  |             | –          |   |             |  
|Total Current Assets                           |  |             | 9,679,241  |   |             |  
|                                               |  |             |            |   |             |  
|Property, Plant and Equipment, net             |  |             | –          |   |             |  
|                                               |  |             |            |   |             |  
|Other Assets                                   |  |             |            |   |             |  
|Prepaids                                       |  |             | 520        |   |             |  
|Deposits                                       |  |             | 12,433     |   |             |  
|Deferred tax assets                            |  |             | 224,779    |   |             |  
|Total Other Assets                             |  |             | 237,732    |   |             |  
|                                               |  |             |            |   |             |  
|Assets Held for Sale – discontinued operations |  |             | 2,374,789  |   |             |  
|                                               |  |             |            |   |             |  
|Total Assets                                   |  | $           | 12,291,762 |   |             | $
|                                               |  |             |            |   |             |  
|Liabilities and Stockholders' Equity           |  |             |            |   |             |  
|Current Liabilities                            |  |             |            |   |             |  
|Accounts payable and accrued expenses          |  | $           | 8,434,854  |   |             | $
|Notes payable - related party                  |  |             | 80,000     |   |             |  
|                                               |  |             |            |   |             |  
|Total Current Liabilities                      |  |             | 8,514,854  |   |             |  





The accompanying notes are integral to
these consolidated financial statements



F-3









International
Packaging and Logistics Group, Inc., and Subsidiaries

Consolidated
Balance Sheets

As
of December 31, 2014 and December 31, 2013





|Liabilities - discontinued Operations                                                                                      |  |   | 581,971    |  |  |   | 529,089   | 
|-------------------------------------------------------------------------------------------------------------------------- |  | - | ---------- |  |  | - | --------- | 
|                                                                                                                           |  |   |            |  |  |   |           | 
|Commitments and contingencies                                                                                              |  |   | –          |  |  |   | –         | 
|                                                                                                                           |  |   |            |  |  |   |           | 
|Total Liabilities                                                                                                          |  |   | 9,096,825  |  |  |   | 5,756,678 | 
|                                                                                                                           |  |   |            |  |  |   |           | 
|Stockholders' Equity                                                                                                       |  |   |            |  |  |   |           | 
|Convertible preferred shares: $0.0001 par value, 50,000,000 shares
    authorized, 974,730 Series A issued and outstanding |  |   | 98         |  |  |   | 98        | 
|400,000 Series B issued and outstanding                                                                                    |  |   | 40         |  |  |   | 40        | 
|Common stock: $0.001 par value, 900,000,000 shares authorized, 4,961,357 issued and outstanding                            |  |   | 4,961      |  |  |   | 4,961     | 
|Additional paid-in capital                                                                                                 |  |   | 2,202,877  |  |  |   | 2,202,877 | 
|Accumulated other comprehensive income                                                                                     |  |   | –          |  |  |   | 34,414    | 
|Retained earnings                                                                                                          |  |   | 106,719    |  |  |   | 54,304    | 
|Total International and Logistics Group Inc. Stockholder’s Equity                                                          |  |   | 2,314,695  |  |  |   | 2,296,694 | 
|Non-controlling interest                                                                                                   |  |   | 880,242    |  |  |   | 878,152   | 
|                                                                                                                           |  |   |            |  |  |   |           | 
|Total Equity                                                                                                               |  |   | 3,194,937  |  |  |   | 3,174,846 | 
|                                                                                                                           |  |   |            |  |  |   |           | 
|Total Liabilities and Equity                                                                                               |  | $ | 12,291,762 |  |  | $ | 8,931,524 | 





The accompanying notes are integral to
these consolidated financial statements



F-4









International
Packaging and Logistics Group, Inc., and Subsidiaries

Consolidated
Statements of Operations and Comprehensive Income

For
the Years Ended December 31, 2014 and 2013





|                                                                 |  | December 31 |            |   | December 31 |  
|---------------------------------------------------------------- |  | ----------- | ---------- | - | ----------- | -
|                                                                 |  | 2014        |            |   | 2013        |  
|Revenues                                                         |  |             |            |   |             |  
|Packaging                                                        |  | $           | 35,728,361 |   |             | $
|                                                                 |  |             |            |   |             |  
|Total Revenues                                                   |  |             | 35,728,361 |   |             |  
|                                                                 |  |             |            |   |             |  
|Cost of Goods Sold                                               |  |             |            |   |             |  
|Packaging                                                        |  |             | 34,324,102 |   |             |  
|                                                                 |  |             |            |   |             |  
|Total Cost of Goods Sold                                         |  |             | 34,324,102 |   |             |  
|                                                                 |  |             |            |   |             |  
|Gross Profit                                                     |  |             | 1,404,259  |   |             |  
|                                                                 |  |             |            |   |             |  
|Operating Expenses                                               |  |             |            |   |             |  
|Administrative expenses                                          |  |             | 690,701    |   |             |  
|Rent                                                             |  |             | 46,864     |   |             |  
|Salaries and wages                                               |  |             | 581,481    |   |             |  
|                                                                 |  |             |            |   |             |  
|Total Operating Expenses                                         |  |             | 1,319,046  |   |             |  
|                                                                 |  |             |            |   |             |  
|Income (loss) from Operations                                    |  |             | 85,213     |   |             |  
|                                                                 |  |             |            |   |             |  
|Other income (expense)                                           |  |             |            |   |             |  
|Interest income (expense), net                                   |  |             | (299       | ) |             |  
|Other income (expense)                                           |  |             | –          |   |             |  
|Rent Income                                                      |  |             | –          |   |             |  
|Total Other Income (expense)                                     |  |             | (299       | ) |             |  
|                                                                 |  |             |            |   |             |  
|Net Income (loss) from Continuing Operations before Income Taxes |  |             | 84,914     |   |             |  





The accompanying notes are integral to
these consolidated financial statements



F-5







International
Packaging and Logistics Group, Inc., and Subsidiaries

Consolidated
Statements of Operations and Comprehensive Income

For
the Years Ended December 31, 2014 and 2013





|                                                                                                                     |  |   |         |   |  |  
|-------------------------------------------------------------------------------------------------------------------- |  | - | ------- | - |  | -
|Income tax benefit  (expense)                                                                                        |  |   | (41,137 | ) |  |  
|                                                                                                                     |  |   |         |   |  |  
|Net Income from Continuing Operations                                                                                |  |   | 43,777  |   |  |  
|                                                                                                                     |  |   |         |   |  |  
|Discontinued operations:                                                                                             |  |   |         |   |  |  
|                                                                                                                     |  |   |         |   |  |  
|Gain from operations, including portion attributable to non-controlling interest of discontinued Logistics component |  |   | 18,855  |   |  |  
|                                                                                                                     |  |   |         |   |  |  
|Income tax expense                                                                                                   |  |   | (10,217 | ) |  |  
|                                                                                                                     |  |   |         |   |  |  
|Income from discontinued operations                                                                                  |  |   | 8,638   |   |  |  
|                                                                                                                     |  |   |         |   |  |  
|Net Income                                                                                                           |  |   | 52,415  |   |  |  
|                                                                                                                     |  |   |         |   |  |  
|Foreign currency translation                                                                                         |  |   | 0       |   |  |  
|                                                                                                                     |  |   |         |   |  |  
|Reclassification discontinued operations                                                                             |  |   | (34,414 | ) |  |  
|                                                                                                                     |  |   |         |   |  |  
|Comprehensive Income                                                                                                 |  | $ | 18,001  |   |  | $





|                                                             |  | 2014 |           |  | 2013 | 
|------------------------------------------------------------ |  | ---- | --------- |  | ---- | 
|Weighted-average number of common shares outstanding—Basic   |  |      | 4,961,357 |  |      | 
|Effect of dilutive securities—                               |  |      | 1,374,730 |  |      | 
|Weighted-average number of common shares outstanding—Diluted |  |      | 6,336,087 |  |      | 





|AMOUNTS ATTRIBUTABLE TO THE COMMON STOCKHOLDERS:                                           |  |   | 2014   |  |  |   | 2013   | 
|------------------------------------------------------------------------------------------ |  | - | ------ |  |  | - | ------ | 
|Income from continuing operations, net of tax                                              |  | $ | 43,777 |  |  | $ | 80,153 | 
|Income from discontinued operations, net of tax                                            |  |   | 8,638  |  |  |   | 4,502  | 
|Net income (loss)                                                                          |  | $ | 52,415 |  |  | $ | 84,655 | 
|BASIC EARNINGS PER SHARE:                                                                  |  |   |        |  |  |   |        | 
|Income from continuing operations attributable to common stockholders, net of tax          |  | $ | 0.01   |  |  | $ | 0.02   | 
|Income from discontinued operations attributable common stockholders, net of tax           |  |   | 0.00   |  |  |   | 0.00   | 
|NET INCOME (LOSS) ATTRIBUTABLE TO THE COMMON STOCKHOLDERS                                  |  | $ | 0.01   |  |  | $ | 0.02   | 
|DILUTED EARNINGS PER SHARE:                                                                |  |   |        |  |  |   |        | 
|Income (loss) from continuing operations attributable to common stockholders, net of tax   |  | $ | 0.01   |  |  | $ | 0.01   | 
|Income (loss) from discontinued operations attributable to common stockholders, net of tax |  |   | 0.00   |  |  |   | 0.00   | 
|NET INCOME (LOSS) ATTRIBUTABLE COMMON STOCKHOLDERS                                         |  | $ | 0.01   |  |  | $ | 0.01   | 
|Comprehensive income                                                                       |  | $ | 18,001 |  |  | $ | 64,504 | 





The accompanying notes are integral to
these consolidated financial statements



F-6









International
Packaging and Logistics Group, Inc., and Subsidiaries

Consolidated
Statements of Changes in Stockholders’ Equity

For
the Years Ended December 31, 2014 and 2013



|                                              |  | Preferred Stock |         |  | Preferred Stock |   |    |              |  |  |         |  |  | Additional    |    |  | Accumulated Other |  |           | Accumulated |  |   | Non -  |  |  |          |          
|--------------------------------------------- |  | --------------- | ------- |  | --------------- | - | -- | ------------ |  |  | ------- |  |  | ------------- | -- |  | ----------------- |  | --------- | ----------- |  | - | ------ |  |  | -------- | ---------
|                                              |  | Series A        |         |  | Series B        |   |    | Common Stock |  |  | Paid-In |  |  | Comprehensive |    |  | (Deficit)/        |  |           | Controlling |  |   |        | 
|                                              |  | Shares          |         |  | Amount          |   |    | Shares       |  |  | Amount  |  |  | Shares        |    |  | Amount            |  |           | Capital     |  |   | Income |  |  | Earnings |          
|                                              |  |                 |         |  |                 |   |    |              |  |  |         |  |  |               |    |  |                   |  |           |             |  |   |        |  |  |          |          
|December 31, 2012                             |  |                 | 974,730 |  |                 | $ | 98 |              |  |  | 400,000 |  |  | $             | 40 |  |                   |  | 4,961,357 |             |  | $ | 4,961  |  |  | $        | 2,202,877
|                                              |  |                 |         |  |                 |   |    |              |  |  |         |  |  |               |    |  |                   |  |           |             |  |   |        |  |  |          |          
|Net Income 2013                               |  |                 | –       |  |                 |   | –  |              |  |  | –       |  |  |               | –  |  |                   |  | –         |             |  |   | –      |  |  |          | –        
|                                              |  |                 |         |  |                 |   |    |              |  |  |         |  |  |               |    |  |                   |  |           |             |  |   |        |  |  |          |          
|Loss on translation                           |  |                 | –       |  |                 |   | –  |              |  |  | –       |  |  |               | –  |  |                   |  | –         |             |  |   | –      |  |  |          | –        
|                                              |  |                 |         |  |                 |   |    |              |  |  |         |  |  |               |    |  |                   |  |           |             |  |   |        |  |  |          |          
|December 31, 2013                             |  |                 | 974,730 |  |                 | $ | 98 |              |  |  | 400,000 |  |  | $             | 40 |  |                   |  | 4,961,357 |             |  | $ | 4,961  |  |  | $        | 2,202,877
|                                              |  |                 |         |  |                 |   |    |              |  |  |         |  |  |               |    |  |                   |  |           |             |  |   |        |  |  |          |          
|Net Income 2014                               |  |                 | –       |  |                 |   | –  |              |  |  | –       |  |  |               | –  |  |                   |  | –         |             |  |   | –      |  |  |          | –        
|                                              |  |                 |         |  |                 |   |    |              |  |  |         |  |  |               |    |  |                   |  |           |             |  |   |        |  |  |          |          
|Reclassification – discontinuation operations |  |                 | –       |  |                 |   | –  |              |  |  | –       |  |  |               | –  |  |                   |  | –         |             |  |   | –      |  |  |          | –        
|                                              |  |                 |         |  |                 |   |    |              |  |  |         |  |  |               |    |  |                   |  |           |             |  |   |        |  |  |          |          
|December 31, 2014                             |  |                 | 974,730 |  |                 | $ | 98 |              |  |  | 400,000 |  |  | $             | 40 |  |                   |  | 4,961,357 |             |  | $ | 4,961  |  |  | $        | 2,202,877





The accompanying notes are integral to
these consolidated financial statements



F-7









International
Packaging and Logistics Group, Inc., and Subsidiaries

Consolidated
Statements of Cash Flows

For
the Years Ended December 31, 2014 and 2013





|                                                                                            |  | December 31 |            |   | December 31 |  
|------------------------------------------------------------------------------------------- |  | ----------- | ---------- | - | ----------- | -
|                                                                                            |  | 2014        |            |   | 2013        |  
|Cash flows from operating activities:                                                       |  |             |            |   |             |  
|Net income                                                                                  |  | $           | 52,415     |   |             | $
|Adjustments to reconcile net income to net cash provided by (used in) operating activities: |  |             |            |   |             |  
|Depreciation expense                                                                        |  |             | 7,192      |   |             |  
|Changes in operating assets and liabilities:                                                |  |             |            |   |             |  
|Increase in accounts receivable                                                             |  |             | (2,622,116 | ) |             |  
|Prepaid taxes                                                                               |  |             | (941       | ) |             |  
|Increase in inventory                                                                       |  |             | (936,900   | ) |             |  
|Deferred tax asset                                                                          |  |             | 35,161     |   |             |  
|Decrease in current assets                                                                  |  |             | 1,204      |   |             |  
|Assets of Sale – Discontinued Operations                                                    |  |             | 72,779     |   |             |  
|Increase in accounts payable and accrued expenses                                           |  |             | 3,306,118  |   |             |  
|Decrease in other current liabilities                                                       |  |             | (18,851    | ) |             |  
|Liabilities - Discontinued Operations                                                       |  |             | 127,262    |   |             |  
|Net cash provided by (used in) operating activities                                         |  |             | 23,323     |   |             |  



The accompanying notes are integral to
these consolidated financial statements



F-8









International
Packaging and Logistics Group, Inc., and Subsidiaries

Consolidated
Statements of Cash Flows

For
the Years Ended December 31, 2014 and 2013



|Cash flow from investing activities:                 |  |   |           |   |  |   |           |  
|---------------------------------------------------- |  | - | --------- | - |  | - | --------- | -
|Purchase of property and equipment                   |  |   | (43,154   | ) |  |   | –         |  
|Net increase in refundable deposits                  |  |   | 13,551    |   |  |   | –         |  
|Net cash used in investing activities                |  |   | (29,603   | ) |  |   | –         |  
|                                                     |  |   |           |   |  |   |           |  
|Cash flow from financing activities:                 |  |   |           |   |  |   |           |  
|Proceeds from short-term borrowing                   |  |   | (43,306   | ) |  |   | –         |  
|Net cash provided by financing activities            |  |   | (43,306   | ) |  |   | –         |  
|                                                     |  |   |           |   |  |   |           |  
|Effect of currency translation                       |  |   | (20,802   | ) |  |   | (9,615    | )
|                                                     |  |   |           |   |  |   |           |  
|Net increase/(decrease) in cash and cash equivalents |  |   | (70,388   | ) |  |   | (195,496  | )
|Cash and cash equivalents at beginning of period     |  |   | 1,192,443 |   |  |   | 1,387,939 |  
|Cash and cash equivalents at end of period           |  | $ | 1,122,055 |   |  | $ | 1,192,443 |  
|                                                     |  |   |           |   |  |   |           |  
|Supplementary Disclosures of Cash Flow               |  |   |           |   |  |   |           |  
|Cash paid during the year for:                       |  |   |           |   |  |   |           |  
|Interest                                             |  | $ | 299       |   |  | $ | –         |  
|Taxes                                                |  | $ | –         |   |  | $ | 36,345    |  





The accompanying notes are integral to
these consolidated financial statements



F-9











International
Packaging and Logistics Group, Inc., and Subsidiaries

Notes
to the Consolidated Financial Statements

For
the Years Ended December 31, 2014 and 2013





1.	Summary of Significant Accounting
Policies





Nature of Operations



On July 2, 2007, International Packaging
and Logistics Group, Inc., through its wholly-owned subsidiary, YesRx.com (“YesRx”) acquired all the outstanding shares
of H&H Glass, Inc. (“H&H Glass” or “H&H”), in exchange for 3,915,000 shares of its common stock
in a reverse triangular merger (the “Merger”). H&H Glass is a glass importer that supplies custom products such
as perfume bottles and food condiment bottles, plus provides complementary services such as container design and mold making. H&H
Glass imports glass containers from Asia and distributes to North America. H&H Glass acquires its products mainly from one
supplier in China and Taiwan and sells its products through several distributors in the United States and Canada who service small
to medium sized customers. H&H imports in excess of 1,000 shipping containers of glass a year. Depending on the size of the
product, a container can contain anywhere from 3,000 to 300,000 pieces.



On January 1, 2010, International Packaging
and Logistics Group, Inc., (“IPL Group Inc.”), acquired a majority interest in EZ Link Holdings, Ltd., company organized
under the laws of the British Virgin Islands which contractually controls EZ Link Corporation (“EZ Link”), a logistics
company headquartered in Taiwan. EZ Link was established in July 2003 under the laws of Taiwan, Republic of China (“PRC”)
EZ LINK is a full service international freight forwarder, who has current networks to locations in China, Hong Kong, South East
Asia, North East Asia, North America, Latin America and Europe.



Organization and Line of Business



International Packaging and Logistics Group,
Inc., a Nevada corporation, was originally incorporated as Interactive Medical Technologies, Ltd., on June 2, 1986, in the state
of Delaware. On April 17, 2008, IPL Group converted from a Delaware corporation to a Nevada Corporation.



EZ Link Holdings Ltd.



EZ Link Holdings Ltd. was incorporated in 2009, under the laws
of the British Virgin Islands. The Company has no substantive operations of its own.



EZ Link Corp., a Taiwan company established in July 2003 with
initial registered capital of NTD 13,500,000, is a freight forwarder with current networks of locations in China, Hong Kong, South
East Asia, North East Asia, North America, Latin America and Europe, and holds the licenses and approvals necessary to operate
its business in China.



Taiwan law currently has limits on foreign ownership of companies.
To comply with these foreign ownership restrictions, on December 31, 2009, EZ Link Holdings entered into following exclusive
agreements with EZ Link Corp. and its owners (collectively the “Contractual Arrangements”):



(1) Consulting Services Agreement,
through which EZ Link Holdings has the right to advise, consult, manage and operate EZ Link Corp. and collect and own all of its
net profits;



(2) Operating Agreement,
through which EZ Link Holdings has the right to recommend director candidates and appoint the senior executives of EZ Link Corp,
approve any transactions that may materially affect the assets, liabilities, rights or operations of EZ Link Corp, and guarantee
the contractual performance by EZ Link Corp. of any agreements with third parties, in exchange for a pledge by EZ Link Corp. of
its accounts receivable and assets.







F-10









International
Packaging and Logistics Group, Inc., and Subsidiaries

Notes
to the Consolidated Financial Statements

For
the Years Ended December 31, 2014 and 2013





1.	Summary of Significant Accounting Policies (continued)



Divestiture of EZ Link



Effective as of February 28, 2015, EZ LINK is acquiring back
IPL Group Inc.’s share position in EZ Link in exchange for their share position in IPL Group Inc.



International Packaging and Logistics Group, Inc. (“IPL
Group Inc.”) (Seller), entered into an agreement with its majority owned subsidiary, EZ LINK Corporation (“EZ LINK”)
(Buyer) which is a logistics company headquartered in Taiwan. EZ Link was established in July 2003 under the Company Law of Republic
of China. Under this agreement EZ LINK is acquiring back IPL Group Inc.’s share position in EZ Link in exchange for their
share position in IPL Group Inc. This transaction is effective as of February 28, 2015.



The terms are as follows:



IPL Group Inc. will assign its position in EZ LINK or 688,500
shares in the aggregate, to EZ LINK, such that, following such transaction, EZ LINK will no longer be a subsidiary of IPL Group
Inc.



EZ LINK will assign the following:



(a) The 457,143 shares
of common stock held by EZ LINK shareholders.

(b) The 400,000 Series B Convertible
preferred shares held by EZ LINK shareholders.



Principles of Consolidation



The accompanying unaudited condensed consolidated
financial statements are prepared in accordance with generally accepted accounting principles in the United States of America.
EZ Link Corp’s functional currency is New Taiwan Dollars (NTD), however, the accompanying consolidated financial statements
have been re-measured and presented in United States Dollars ($).



The consolidated financial statements include
the accounts of IPL Group and its subsidiaries (collectively the “Company”). The Company’s subsidiaries include
H&H Glass and 51% of EZ Link Holdings, Ltd. which is now shown in discontinued operations.



Intercompany accounts
and transactions have been eliminated upon consolidation.





F-11









International
Packaging and Logistics Group, Inc., and Subsidiaries

Notes
to the Consolidated Financial Statements

For
the Years Ended December 31, 2014 and 2013





1.	Summary of Significant Accounting
Policies (continued)



Consolidation of variable interest entities



The consolidated financial
statements include the accounts of the Company and all majority-owned subsidiaries in which the Company has a controlling financial
interest.  All significant intercompany accounts and transactions have been eliminated in consolidation.  The Company
determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest
entity or a variable interest entity (“VIE”).



Voting interest entities are
entities that have sufficient equity and provide the equity investors voting rights that give them the power to make significant
decisions related to the entity’s operations.  The usual condition for a controlling financial interest in a voting
interest entity is ownership of a majority voting interest.  Accordingly, the Company consolidates its majority-owned subsidiary,
EZ Link Corp, in which it holds more than 50% of the voting rights or where control is exercised through other contractual rights.



VIEs are entities that lack one or more
of the characteristics of a voting interest entity.  Either the entity does not have sufficient equity at risk to finance
its activities without additional subordinated financial support from other parties or the equity investors do not have the characteristics
of a controlling financial interest.  The entity that has a controlling financial interest in a VIE is referred to as the
primary beneficiary and is required to consolidate the VIE.  The Company’s majority-owned subsidiaries are not considered
VIEs.



The Company's consolidated financial statements
include 100% of the assets, liabilities and earnings of a subsidiary, EZ Link Corp, which is more than 50% owned and control is
established.  The ownership interest of the minority owners of the Company’s subsidiary is called noncontrolling interest.



The Company has concluded that EZ Link
Corp is a VIE and that the Company’s 51% owned subsidiary, EZ Link Holdings, absorbs a majority of the risk of loss from
the activities of EZ Link Corp. and enables the Company to receive a majority of its expected residual returns. Accordingly, the
Company accounts for EZ Link Corp. as a VIE as of January 1, 2010.



The initial measurement of the assets and liabilities of EZ
Link Corp. for the purpose of consolidation by the Company is at fair value. EZ Link Holdings, Ltd. has had no other business activities
except for the entering into of the exclusive agreements with EZ Link Corp. and its shareholders.



The consolidated financial statements include the financial
statements for the Company, its subsidiaries and the variable interest entity, EZ Link Corp. and EZ Link Corp.’s subsidiary
EZ Link International. All significant inter-company transactions and balances between the Company, its subsidiaries and the variable
interest entity are eliminated upon consolidation.



Divestiture of EZ Link



Effective as of February 28, 2015, EZ LINK is acquiring back
IPL Group Inc.’s share position in EZ Link in exchange for their share position in IPL Group Inc.



Country risk



As EZ Link Holding, Ltd. principal operations
are conducted in Taiwan, it is subject to special considerations and significant risks not typically associated with companies
in the US. These risks include, among others, risks associated with the political, economic and legal environments and foreign
currency exchange limitations encountered in Taiwan. The EZ Link Holdings results of operations may be adversely affected by changes
in the political and social conditions in
Taiwan, and by changes in governmental policies with respect to laws and regulations, among other things.





F-12







International
Packaging and Logistics Group, Inc., and Subsidiaries

Notes
to the Consolidated Financial Statements

For
the Years Ended December 31, 2014 and 2013





1.	Summary of Significant Accounting
Policies (continued)



In addition, most of the transactions undertaken
in Taiwan are denominated in New Taiwan Dollars (“NTD”), which must be converted into other currencies before remittance
out of Taiwan may be considered. Both the conversion of NTD into foreign currencies and the remittance of foreign currencies abroad
require the approval of the Taiwan government.  Therefore, it is assumed that there will be limitations of distribution
of profits from EZ Link Corp. to EZ Link Holdings.



Divestiture of EZ Link



Effective as of February 28, 2015, EZ LINK is acquiring back
IPL Group Inc.’s share position in EZ Link in exchange for their share position in IPL Group Inc.



Reclassifications



Certain amounts in the prior year have been reclassified to
conform to the current year presentation.



Estimates



The preparation of consolidated financial
statements in conformity with accounting principles generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities, and the disclosures of contingent assets and liabilities
at the date of the consolidated financial statements. Significant estimates include an allowance for doubtful accounts and depreciation
of property, plant and equipment.



Cash and Cash Equivalents



The Company considers all highly liquid
investments with an original maturity of three months or less to be cash equivalents. Cash equivalents include amounts invested
in a money market account with a financial institution. Cash equivalents are carried at cost, which approximates fair value.



Revenue Recognition



The Company recognizes product revenue
provided that (1) persuasive evidence of an arrangement exists, (2) delivery to the customer has occurred, (3) the selling price
is fixed or determinable and (4) collection is reasonably assured.  Delivery is considered to have occurred when title and
risk of loss have transferred to the customer. The price is considered fixed or determinable when it is not subject to refund or
adjustments. Outbound shipping and handling charges are included in net sales and cost of goods sold.



Inventories



Inventories are stated at the lower of
cost (first-in, first-out basis) or market (net realizable value). All inventory consists of finished goods.





F-13







International
Packaging and Logistics Group, Inc., and Subsidiaries

Notes
to the Consolidated Financial Statements

For
the Years Ended December 31, 2014 and 2013





1.	Summary of Significant Accounting
Policies (continued)



Foreign Currency Translation



The accounts of the EZ Link were maintained,
and its consolidated financial statements were expressed, in NTD. Such consolidated financial statements were translated into USD
with NTD as the functional currency. All assets and liabilities were translated at the exchange rate on the consolidated balance
sheet dates, stockholders’ equity are translated at the historical rates and the statements of income items were translated
at the weighted average exchange rate for the year. The resulting translation adjustments were reported under other comprehensive
income in 2013 and earlier periods. In 2014, the EZ Link operations have been reclassified as discontinued operations. Accordingly,
the other comprehensive income previously accumulated has been recognized as income from discontinued operations in 2014, and consequently
the foreign currency translation adjustments are eliminated as of December 31, 2014.



Transaction gains and losses that arise
from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the
results of operations as incurred. Such amounts were not material during each of the years ended December 31, 2014 and 2013.



Cash flow from the Company's operations
included in the statement of cash flows is calculated based upon the functional currency using the average translation rate. As
a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with arithmetical
changes in the corresponding balances on the consolidated balance sheet. No presentation is made that the NTD amounts could have
been, or could be, converted into USD at the rates used in translation.



Concentration of Credit Risk



The Company maintains balances in a Money
Market Fund that is not federally insured. Balances in this fund were $404,173 and $783,519 at December 31, 2014 and December 31,
2013, respectively.



Accounts receivable are typically unsecured.
The Company performs ongoing credit evaluations of its customers’ financial condition. It generally requires no collateral
and maintains reserves for potential credit losses on customer accounts, when necessary. As of December 31, 2014, 86.7% of H&H
Glass’s Accounts Receivable were attributable to three customers. As of December 31, 2013, 86.0% of H&H Glass’s
Accounts Receivable were attributable to three customers.



At December 31, 2014 and 2013 H&H Glass
had allowance for doubtful reserves of $16,194 and $16,194 respectively.



In general the Company will reserve a receivable
based one of the following reasons; If the receivable is over 90 days old the company will reserve 50% and if over 12 months
old the Company will reserve 100% of the amount.



H&H Glass purchased 100% of its glass
from one vendor in the twelve- month periods ending December 31, 2014 and 2013.  During the twelve-month period ending December
31, 2014 and 2013, H&H Glass purchased $36,219,076 and $31,534,443 of products from this vendor, respectively. This concentration
is due to the relatively small size of H&H Glass’s orders.  H&H Glass’s specialized short-run custom orders
generally are not attractive to larger glass manufacturers.  As customer orders have been growing in size, H&H Glass has
begun to seek additional suppliers.





F-14









International
Packaging and Logistics Group, Inc., and Subsidiaries

Notes
to the Consolidated Financial Statements

For
the Years Ended December 31, 2014 and 2013





1.	Summary of Significant Accounting
Policies (continued)



Non-controlling Interest



The Company accounts for its non-controlling
interest of 49% in EZ Link Holdings, Ltd. in the consolidated financial statements classified as a separate component of equity.
In addition, net earnings, and components of other comprehensive income are attributed to both the Company and non-controlling
interest.



Net Earnings/(Loss) per Share



Earnings/(loss) per common share is computed
on the weighted average number of common shares outstanding during each year. Basic earnings per share is computed as net loss
applicable to common stockholders’ divided by the weighted average number of common shares outstanding for the period. Diluted
earnings per share reflects the potential dilution that could occur from common shares issuable through convertible preferred shares,
stock options, warrants and other convertible securities when the effect would be dilutive.



Comprehensive Income (Loss)



The Company reports and displays comprehensive
income and its components in a full set of general purpose consolidated financial statements. The Company’s loss on translation
was $17,945 for the year ended December 31, 2013, relating to the translation of financial statements from New Taiwan Dollar to
US Dollars.



As a result of the divestiture of the EZ
Link operations, there was a gain of $34,414 recognized on the income statement for the reclassification of discontinued operations
as of December 31, 2014, but this gain does not increase comprehensive income.



Property and Equipment



Property and equipment are stated at cost.
Depreciation is computed for financial reporting purposes using the straight-line method over the estimated useful lives of the
assets. Repairs and maintenance that do not extend the useful life of property and equipment are charged to expense as incurred.
When property and equipment are retired or otherwise disposed of, the asset and its accumulated depreciation are removed, and the
resulting profit or loss is reflected in income.





The estimated service lives of property
and equipment are principally as follows:



|Computers and equipment | 3-10 years
|----------------------- | ----------
|Furniture & Fixtures    | 5-10 years



F-15









International
Packaging and Logistics Group, Inc., and Subsidiaries

Notes
to the Consolidated Financial Statements

For
the Years Ended December 31, 2014 and 2013





1.	Summary of Significant Accounting
Policies (continued)



Income Taxes



The Company accounts for its income taxes
using the Financial Accounting Standards Board ASC 740, “Income Taxes,” which requires the establishment of a deferred
tax asset or liability for the recognition of future deductible or taxable amounts and operating loss and tax credit carryforwards.
Deferred tax expense or benefit is recognized as a result of timing differences between the recognition of assets and liabilities
for book and tax purposes during the year.



Deferred tax assets and liabilities are
measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected
to be recovered or settled. Deferred tax assets are recognized for deductible temporary differences and operating loss, and tax
credit carryforwards. A valuation allowance is established to reduce the deferred tax asset if it is “more likely than not”
that the related tax benefits will not be realized.



The Company accounts for income taxes in
accordance ASC Topic 740. Realization of an uncertain income tax position must be estimated as “more likely than not”
(i.e., greater than 50% likelihood of receiving a benefit) before it can be recognized in the financial statements. Further, the
recognition of tax benefits is required to be recorded in the financial statements to be based on the amount most likely to be
realized assuming a review by tax authorities having all relevant information. ASC 740 also clarifies the financial statement classification
of tax-related penalties and interest and sets forth new disclosures regarding unrecognized tax benefits. As of December 31, 2014,
the Company has not recognized any obligation for uncertain tax positions.



EZ Link, Corporation is governed by the
Taiwan’s Income Tax Law and local income tax laws. Pursuant to the Taiwan Income Tax Law, enterprises are subject to tax
at a statutory rate of 17%. The local government

has also provided companies with various
incentives to encourage economic development in the region. Such incentives include reduced tax rates and other measures.



2.	Preferred Stock Transactions



The Preferred Shares shall be convertible
into common shares in two equal tranches, the first being upon completion and receipt of the year ending December 31, 2010, financials
if all of the following performance targets are met by EZ Link:



(a) Maintain revenues and before tax earnings
same as the prior 12 month period; and

(b) Maintained a positive cash flow from
operations over the prior 12 month period.



These criteria were not met, so there were no conversions
as of December 31, 2014. These certificates will be returned pursuant to the sale of EZ Link back to its original
shareholders.



The Series A Preferred shares are convertible
into common shares on a 1:1 ratio at a fixed rate of $3 per share.  Preferred shares have no voting rights, have no redemption
rights and earn no dividends.  Holders of





F-16









International
Packaging and Logistics Group, Inc., and Subsidiaries

Notes
to the Consolidated Financial Statements

For
the Years Ended December 31, 2014 and 2013





2. Preferred Stock Transactions - continued



Series A Convertible Preferred Stock are
not permitted to convert their stock into common shares until the Company’s market capital reaches $15,000,000.  Upon
dissolution, liquidation or winding up of the Company, whether voluntary or involuntary, the holders of the then outstanding shares
of Series A Convertible Preferred Stock shall be entitled to receive out of the assets of the Company the sum of $0.0001 per share
(the “Liquidation Rate”) before any payment or distribution shall be made on any other class of capital stock of the
Company ranking junior to the Series A Convertible Preferred Stock.



As of January 1, 2010 pursuant to the purchase
agreement for 51% ownership in EZ Link Holdings Ltd., approximately 47% of the purchase price amount $400,000 was paid in Series
B convertible preferred shares of IPL Group, Inc. at a per share value of $1.00, or 400,000 shares.



The Preferred shares are convertible into
common shares on a 1:1 ratio at a fixed rate of $1 per share.  Preferred shares have no voting rights, have no redemption
rights and earn no dividends.



The Series B Preferred Shares shall be
convertible into common shares in two equal tranches, the first tranche was to be upon completion and receipt of the year ending
December 31, 2010, financials if all of the following performance targets are met by EZ Link:



(a) Maintain revenues and before tax earnings
same as the prior 12 month period; and

(b) Maintained a positive cash flow from
operations over the prior 12 month period.



This criteria was not met so there were
no conversions as of December 31, 2014.  However, the first tranche will be eligible for conversion again at December
31, 2015. If EZ Link does not reach its performance goals at December 31, 2015, the conversion rights will be extended one additional
year.



The second tranche of the Preferred Shares
shall be convertible after the second 12 month period, i.e. the year ending December 31, 2014, if all of the following performance
targets are met by EZ Link:



(a) 5% increase in
revenues and 1% before tax earnings over the prior 12 month period; and

(b) Maintained a positive cash flow from
operations over the prior 12 month period.



EZ Link did not reach its performance goals
at December 31, 2014, so the conversion rights will be extended one additional year.



Divestiture of EZ Link



Effective as of February 28, 2015, EZ LINK is acquiring back
IPL Group Inc.’s share position in EZ Link in exchange for their share position in IPL Group Inc.



ASC Topic 480, “Distinguishing Liabilities
from Equity,” establishes standards for how an issuer classifies and measures certain financial instruments with characteristics
of both liabilities and equity.





F-17









International
Packaging and Logistics Group, Inc., and Subsidiaries

Notes
to the Consolidated Financial Statements

For
the Years Ended December 31, 2014 and 2013





A mandatorily redeemable financial instrument
shall be classified as a liability unless the redemption is required to occur only upon the liquidation or termination of the
reporting entity.  A financial instrument issued in the form of shares is mandatorily redeemable if it embodies an unconditional
obligation requiring the issuer to redeem the instrument by transferring its assets at a specified or determinable date (or dates)
or upon an event certain to occur.  A financial instrument that embodies a conditional obligation to redeem the instrument
by transferring assets upon an event not certain to occur becomes mandatorily redeemable—and, therefore becomes a liability—if
that event occurs, the condition is resolved, or the event becomes certain to occur.



The Company determined that the preferred
shares are not mandatorily or conditionally redeemable and are properly classified as permanent equity in the accompanying consolidated
financial statements.





3.	Common Stock Transactions



During the years ending December 31, 2014
and 2013 no stock was issued.





4.	Related Party Transactions



Allen Lin



The Company paid Mr. Allen Lin, President
of H&H Glass and a member of the board of directors of the Company, salary of $305,000 and $305,000 for the years ended December
31, 2014 and 2013, respectively.



There is currently an $80,000 payable to
Allen Lin for funds contributed to the company at the time EZ Link Holdings, Ltd. was acquired. This debt is due on demand.



Josephine Lin



Josephine Lin, Mr. Lin’s wife, is
employed by the Company and was paid salary of $58,000 and $58,000 for the years ended December 31, 2014 and 2013, respectively.



William Gresher



Mr. Gresher, a member of the Board of Directors, was paid $6,000
per year in cash for Director fees in the years ended December 31, 2014 and 2013.



Owen Naccarato



For the years ended December 31, 2014 and
2013 respectively, Mr. Naccarato, a member of the Board of Directors, was paid $36,000 in cash for legal fees and for the year
ended December 31, 2014 was paid $6,000 in cash for Directors fees.



Easy Global Company, Ltd.



The chairman of Easy Global Company, Ltd.
is also a shareholder of EZ Link Corporation. EZ Link rents its offices from Easy Global Company, Ltd. During the year ended December
31, 2014 and 2013, EZ Link paid $45,257 and $46,080, respectively to Easy Global Company for rent expense.







F-18









International
Packaging and Logistics Group, Inc., and Subsidiaries

Notes
to the Consolidated Financial Statements

For
the Years Ended December 31, 2014 and 2013





5.	Other Income



During the year ended December 31, 2014
and 2013, the Company recorded $(299) and $2,551 in Other Income respectively as follows:



|                               |  | 2014 |      |   | 2013 |  
|------------------------------ |  | ---- | ---- | - | ---- | -
|                               |  |      |      |   |      |  
|Interest income                |  | $    | 0    |   |      | $
|Interest expense               |  |      | (299 | ) |      |  
|Miscellaneous income (expense) |  |      | 0    |   |      |  
|Rent income                    |  |      | 0    |   |      |  
|                               |  | $    | (299 | ) |      | $





6. 	Property and Equipment



The Company’s property and equipment
at December 31, 2014 and December 31, 2013, consisted of the following:



|                              |  | December 31, 2014 |         |   | December 31, 2013 |  
|----------------------------- |  | ----------------- | ------- | - | ----------------- | -
|Furniture and fixtures        |  | $                 | 14,552  |   |                   | $
|Computers and equipment       |  |                   | 23,452  |   |                   |  
|Leasehold improvements        |  |                   | –       |   |                   |  
|                              |  |                   | 38,004  |   |                   |  
|Less accumulated depreciation |  |                   | (38,004 | ) |                   |  
|Total                         |  | $                 | 0       |   |                   | $



The Company recorded depreciation expense
for the year ended December 31, 2014 and 2013, of $0 and $0 respectively.





7.	Accounts Payable and Accrued
Expenses



Accounts payable and accrued expenses at
December 31, 2014 and 2013, consisted of the following:



|                                      |  | 2014 |           |  | 2013 |  
|------------------------------------- |  | ---- | --------- |  | ---- | -
|Accounts payable                      |  | $    | 8,362,179 |  |      | $
|Accrued professional and related fees |  |      | 72,675    |  |      |  
|Total                                 |  | $    | 8,434,854 |  |      | $





F-19











International
Packaging and Logistics Group, Inc., and Subsidiaries

Notes
to the Consolidated Financial Statements

For
the Years Ended December 31, 2014 and 2013





8.	Income Taxes



Significant components of the provision
for taxes based on income are as follows for the years ended December 31:



|                                           |  | 2014 |         |   | 2013 |  
|------------------------------------------ |  | ---- | ------- | - | ---- | -
|                                           |  |      |         |   |      |  
|US Federal                                 |  | $    | 0       |   |      | $
|US State                                   |  |      | 1,600   |   |      |  
|Foreign                                    |  |      | 10,217  |   |      |  
|Total Current                              |  |      | 11,817  |   |      |  
|Deferred                                   |  |      | (39,537 | ) |      |  
|                                           |  |      |         |   |      |  
|Total provision (benefit) for income taxes |  | $    | 51,354  |   |      | $



The totals above include current taxes
from discontinued operations of $10,217 and $12,150 in 2014 and 2013, respectively. The income tax expense (benefit) from continuing
operations was $41,137 and $(83,725) in 2014 and 2013, respectively.



Significant temporary
differences that give rise to the deferred tax assets as of December 31, 2014 and 2013 follow:



|                                   |  | 2014 |         |  | 2013 |  
|---------------------------------- |  | ---- | ------- |  | ---- | -
|Deferred tax assets/(liabilities): |  |      |         |  |      |  
|                                   |  |      |         | 
|Net operating loss carryforwards   |  | $    | 218,333 |  |      | $
|Allowance for doubtful accounts    |  |      | 6,445   |  |      |  
|Furniture and equipment            |  |      |         |  |      |  
|Net deferred tax assets            |  | $    | 224,778 |  |      | $





The Company has federal net operating loss
carryforwards totaling $619,863 and $807,580 in state carryforwards. These net operating losses expire from 2021 through 2031.
The Company has not recorded any valuation allowance against these deferred tax assets.



Tax years that remain open by the Internal
Revenue Service and the California Franchise Tax Board are 2011 through 2014. Additionally, NOLs from earlier years may be examined
when they are utilized.



|Tax rate reconciliation     |  |      |      |    |      | 
|--------------------------- |  | ---- | ---- | -- | ---- | 
|                            |  | 2014 |      |    | 2013 | 
|Federal tax rate            |  |      | 34.0 | %  |      | 
|State taxes, net of benefit |  |      | 5.8  | %  |      | 
|Non-deductible tax expenses |  |      | 13.6 | %  |      | 
|Rate difference             |  |      | (3.3 | )% |      | 
|NOL true-up adjustment      |  |      | –    |    |      | 
|Other                       |  |      | 1.6  | %  |      | 
|                            |  |      |      |    |      | 
|Effective tax rate          |  |      | 51.7 | %  |      | 



F-20







International
Packaging and Logistics Group, Inc., and Subsidiaries

Notes
to the Consolidated Financial Statements

For
the Years Ended December 31, 2014 and 2013





9.	Commitments and Contingencies



Litigation



The Company is not
currently aware of any formal legal proceedings or claims that the Company believes will have, individually or in the aggregate,
a material adverse effect on the Company’s financial position or results of operations.



Leases



Operating leases



H&H Glass rents approximately 2,900
square feet of office space for its headquarters. The lease began on January 1, 2013 and expires on August 31, 2019. As of December
31, 2014, total monthly base rent is $6,409 per month.



Discontinued Operations



EZ Link rents 2,388 square feet of office
space for its headquarters. The lease began on October 1, 2011, through March 31, 2012. The lease is renewed annually. As of December
31, 2014, total base monthly rent is $3,771 per month.



EZ Link also rents 182 square feet of office
space. The lease began on April 15, 2011, and expires on April 14, 2014. The lease is renewed annually. As of December 31, 2014,
total base monthly rent is $1,480.



EZ Link also maintains operating leases
for parking spaces and vehicles used in its operations expiring through June 23, 2014.



Future minimum payments on this lease
for fiscal years following December 31, 2014, are:



|Year ended December 31,
|-----------------------
|2015                   
|2016                   
|2017                   
|Thereafter             
|                       





F-21











International
Packaging and Logistics Group, Inc., and Subsidiaries

Notes
to the Consolidated Financial Statements

For
the Years Ended December 31, 2014 and 2013





10. 	Earnings per Share





The computation of basic earnings
per share and diluted earnings per share is as follows for the years ended December 31, 2014 and 2013:



|                                                             |  | 2014 |           |  | 2013 | 
|------------------------------------------------------------ |  | ---- | --------- |  | ---- | 
|Weighted-average number of common shares outstanding—Basic   |  |      | 4,961,357 |  |      | 
|Effect of dilutive securities—                               |  |      | 1,374,730 |  |      | 
|Weighted-average number of common shares outstanding—Diluted |  |      | 6,336,087 |  |      | 



|AMOUNTS ATTRIBUTABLE TO THE COMMON STOCKHOLDERS:                                           |  | 2014 |        |  | 2013 |  
|------------------------------------------------------------------------------------------ |  | ---- | ------ |  | ---- | -
|Income from continuing operations, net of tax                                              |  | $    | 43,777 |  |      | $
|Income from discontinued operations, net of tax                                            |  |      | 8,638  |  |      |  
|Net income (loss)                                                                          |  | $    | 52,415 |  |      | $
|BASIC EARNINGS PER SHARE:                                                                  |  |      |        |  |      |  
|Income from continuing operations attributable to common stockholders, net of tax          |  | $    | 0.01   |  |      | $
|Income from discontinued operations attributable common stockholders, net of tax           |  |      | 0.00   |  |      |  
|NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS                  |  | $    | 0.01   |  |      | $
|DILUTED EARNINGS PER SHARE:                                                                |  |      |        |  |      |  
|Income (loss) from continuing operations attributable to common stockholders, net of tax   |  | $    | 0.01   |  |      | $
|Income (loss) from discontinued operations attributable to common stockholders, net of tax |  |      | 0.00   |  |      |  
|NET INCOME (LOSS) ATTRIBUTABLE COMMON STOCKHOLDERS                                         |  | $    | 0.01   |  |      | $





F-22









International
Packaging and Logistics Group, Inc., and Subsidiaries

Notes
to the Consolidated Financial Statements

For
the Years Ended December 31, 2014 and 2013





11.	Unrestricted Net Assets



EZ
Link Corp. has retained earnings of approximately$74,796 as of
December 31, 2014. Distributions and other payments to EZ Link Holdings, Ltd. from its subsidiary, EZ Link Corp. may not be permitted
by the Taiwan government. Condensed financial information of the United States operations is as follows:



|                                           |  | December 31, |            |   | December 31, |  
|------------------------------------------ |  | ------------ | ---------- | - | ------------ | -
|Balance Sheets                             |  | 2014         |            |   | 2013         |  
|                                           |  |              |            |   |              |  
|Assets                                     |  |              |            |   |              |  
|Cash and cash equivalents                  |  | $            | 661,510    |   |              | $
|Accounts receivable, net                   |  |              | 8,083,254  |   |              |  
|Inventory                                  |  |              | 936,900    |   |              |  
|Other current assets                       |  |              | (2,423     | ) |              |  
|Total current assets                       |  |              | 9,679,241  |   |              |  
|                                           |  |              |            |   |              |  
|Investment in EZ Link Holdings, Ltd.       |  |              | 857,143    |   |              |  
|Deposits                                   |  |              | 12,952     |   |              |  
|Deferred tax assets                        |  |              | 224,779    |   |              |  
|Total assets                               |  | $            | 10,774,115 |   |              | $
|                                           |  |              |            |   |              |  
|Liabilities                                |  |              |            |   |              |  
|                                           |  |              |            |   |              |  
|Accounts payable                           |  | $            | 8,362,179  |   |              | $
|Accrued liabilities                        |  |              | 72,675     |   |              |  
|Notes payable to related party             |  |              | 80,000     |   |              |  
|Total current liabilities                  |  |              | 8,514,854  |   |              |  
|                                           |  |              |            |   |              |  
|Total liabilities                          |  |              | 8,514,854  |   |              |  
|                                           |  |              |            |   |              |  
|Stockholders' equity                       |  |              |            |   |              |  
|Common stock                               |  |              | 4,961      |   |              |  
|Preferred stock                            |  |              | 138        |   |              |  
|Additional paid-in capital                 |  |              | 2,202,877  |   |              |  
|Retained earnings                          |  |              | 51,285     |   |              |  
|Total stockholders' equity                 |  |              | 2,259,261  |   |              |  
|Total liabilities and stockholders' equity |  | $            | 10,774,115 |   |              | $





F-23







International
Packaging and Logistics Group, Inc., and Subsidiaries

Notes
to the Consolidated Financial Statements

For
the Years Ended December 31, 2014 and 2013





11.	Unrestricted Net Assets -
continued



Information of the United States operations
is as follows:



|                             |  | Year Ending  |             |   | Year Ending  |  
|---------------------------- |  | ------------ | ----------- | - | ------------ | -
|                             |  | December 31, |             |   | December 31, |  
|Statement of Operations      |  |              | 2014        |   |              |  
|                             |  |              |             |   |              |  
|Net sales                    |  | $            | 35,728,361  |   |              | $
|Cost of goods sold           |  |              | (34,324,102 | ) |              |  
|Operating expenses           |  |              | (1,319,046  | ) |              |  
|Loss from operations         |  |              | 85,213      |   |              |  
|                             |  |              |             |   |              |  
|Other income and (expense)   |  |              |             |   |              |  
|Interest income (expense)    |  |              | (299        | ) |              |  
|Other income                 |  |              | –           |   |              |  
|Realized gain on investment  |  |              | –           |   |              |  
|Income tax benefit (payable) |  |              | (41,137     | ) |              |  
|Total other income           |  |              | (41,436     | ) |              |  
|Net Income                   |  | $            | 43,777      |   |              | $





F-24









International
Packaging and Logistics Group, Inc., and Subsidiaries

Notes
to the Consolidated Financial Statements

For
the Years Ended December 31, 2014 and 2013





11.	Unrestricted Net Assets –
continued





|                                           |  | Year Ending  |          |   | Year Ending   |  
|------------------------------------------ |  | ------------ | -------- | - | ------------- | -
|                                           |  | December 31, |          |   | December  31, |  
|Statements of Cash Flows                   |  | 2014         |          |   | 2013          |  
|                                           |  |              |          |   |               |  
|Net cash provided by operating activities: |  | $            | (188,173 | ) |               | $
|                                           |  |              |          |   |               |  
|Cash flow from investing activities        |  |              |          |   |               |  
|Proceeds from sale of investment           |  |              | –        |   |               |  
|Net cash provided by investing activities  |  |              | –        |   |               |  
|                                           |  |              |          |   |               |  
|Cash flow from financing activities:       |  |              |          |   |               |  
|Proceeds from note payable - related party |  |              | –        |   |               |  
|Net cash provided by financing activities  |  |              | –        |   |               |  
|                                           |  |              |          |   |               |  
|Net increase in cash                       |  |              | (188,173 | ) |               |  
|Cash, beginning of year                    |  |              | 849,683  |   |               |  
|Cash, end of year                          |  | $            | 661,510  |   |               | $





F-25









International
Packaging and Logistics Group, Inc., and Subsidiaries

Notes
to the Consolidated Financial Statements

For
the Years Ended December 31, 2014 and 2013





12.	Discontinued Operations:



Discontinued Operations



Discontinued operations are accounted for
in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification
(“ASC”) Section 360-10-35 Property, Plant, and Equipment. In accordance with FASB ASC Section 360-10-35,
the net assets of discontinued operations are recorded on our consolidated balance sheets at estimated fair value. The results
of operations of discontinued operations are segregated from continuing operations and reported separately as discontinued operations
in our consolidated statements of loss and comprehensive loss. See Note 4 “Discontinued Operations” for further discussion.



International Packaging and Logistics Group, Inc. (“IPL
Group Inc.”) (Seller), entered into an agreement with its majority owned subsidiary, EZ LINK Corporation (“EZ LINK”)
(Buyer) which is a logistics company headquartered in Taiwan. EZ Link was established in July 2003 under the Company Law of Republic
of China. Under this agreement EZ LINK is acquiring back IPL Group Inc.’s share position in EZ Link in exchange for their
share position in IPL Group Inc. This transaction is effective as of February 28, 2015.



The terms are as follows:



IPL Group Inc. will assign its position in EZ LINK or 688,500
shares in the aggregate, to EZ LINK, such that, following such transaction, EZ LINK will no longer be a subsidiary of IPL Group
Inc.



EZ LINK will assign the following:



(a) The 457,143 shares
of common stock held by EZ LINK shareholders.

(b) The Series B Convertible
preferred shares held by EZ LINK shareholders.



F-26







International
Packaging and Logistics Group, Inc., and Subsidiaries

Notes
to the Consolidated Financial Statements

For
the Years Ended December 31, 2014 and 2013





12.	Discontinued Operations: -
continued





Results of Discontinued Operations





Summary results of operations for our discontinued operations
for the years ended December 31, 2014 and, 2013, were as follows (dollars
in thousands):



|                                                                                                                            |  | December 31 |           |  | December 31 |  
|--------------------------------------------------------------------------------------------------------------------------- |  | ----------- | --------- |  | ----------- | -
|Discontinued operations:                                                                                                    |  | 2014        |           |  | 2013        |  
|                                                                                                                            |  |             |           |  |             |  
|Revenue                                                                                                                     |  | $           | 7,549,512 |  |             | $
|                                                                                                                            |  |             |           |  |             |  
|Gain (Loss) from operations, including portion attributable to non-controlling interest of discontinued Logistics component |  | $           | 18,855    |  |             | $
|                                                                                                                            |  |             |           |  |             |  
|Income tax expense                                                                                                          |  | $           | 10,217    |  |             | $
|                                                                                                                            |  |             |           |  |             |  
|Income from discontinued operations                                                                                         |  | $           | 8,638     |  |             | $



Assets and Liabilities of Discontinued Operations



Assets and liabilities of discontinued
operations on our consolidated balance sheets as of December 31, 2014 and 2013 include the following (dollars in thousands):



|                                               |  | December 31 |           |  | December 31 |  
|---------------------------------------------- |  | ----------- | --------- |  | ----------- | -
|                                               |  | 2014        |           |  | 2013        |  
|Assets Discontinued subsidiary                 |  |             |           |  |             |  
|Cash and cash equivalents                      |  | $           | 460,545   |  |             | $
|Notes receivable                               |  |             | 62,209    |  |             |  
|Accounts receivable                            |  |             | 489,286   |  |             |  
|Contract in place                              |  |             | 1,295,726 |  |             |  
|Other assets                                   |  |             | 24,392    |  |             |  
|Property, Plant and Equipment, net             |  |             | 42,631    |  |             |  
|                                               |  |             |           |  |             |  
|Assets Held for Sale - Discontinued Operations |  | $           | 2,374,789 |  |             | $





F-27









International
Packaging and Logistics Group, Inc., and Subsidiaries

Notes
to the Consolidated Financial Statements

For
the Years Ended December 31, 2014 and 2013





12.	Discontinued Operations:
- continued



|                                      |  | December 31 |         |  | December 31 |  
|------------------------------------- |  | ----------- | ------- |  | ----------- | -
|                                      |  | 2014        |         |  | 2013        |  
|Liabilities Discontinued subsidiary   |  |             |         |  |             |  
|Notes payable                         |  | $           | 8,287   |  |             | $
|Accounts payable                      |  |             | 566,838 |  |             |  
|Other current liabilities             |  |             | 6,846   |  |             |  
|                                      |  |             |         |  |             |  
|Liabilities - discontinued Operations |  | $           | 581,971 |  |             | $





13. 	Subsequent Events:



International Packaging and Logistics Group, Inc. (“IPL
Group Inc.”) (Seller), entered into an agreement with its majority owned subsidiary, EZ LINK Corporation (“EZ LINK”)
(Buyer) which is a logistics company headquartered in Taiwan. EZ Link was established in July 2003 under the Company Law of Republic
of China. Under this agreement EZ LINK is acquiring back IPL Group Inc.’s share position in EZ Link in exchange for their
share position in IPL Group Inc. This transaction is effective as of February 28, 2015, and is not expected to result in a material
gain or loss to the seller.



The terms are as follows:



IPL Group Inc. will assign its position in EZ LINK or 688,500
shares in the aggregate, to EZ LINK, such that, following such transaction, EZ LINK will no longer be a subsidiary of IPL Group
Inc.



EZ LINK will assign the following:



(a) The 457,143 shares
of common stock held by EZ LINK shareholders.

(b) The Series B Convertible
preferred shares held by EZ LINK shareholders





F-28