EXHIBIT 99.1



FLEXO UNIVERSAL, S.A. DE C.V.



INDEPENDENT AUDITOR’S REPORT

AS OF DECEMBER 31 2014 AND 2013



1







FLEXO UNIVERSAL, S.A. DE C.V.



INDEX



|1.- | Independent Auditors’
    Report.                  | 3
|--- | -------------------------------------------------- | -
|    |                                                    |  
|2.- | Balance Sheet.                                     | 4
|    |                                                    |  
|3.- | Statement of (Loss) Income.                        | 5
|    |                                                    |  
|4.- | Statements of Changes in Stockholders’
    Equity. | 6
|    |                                                    |  
|5.- | Statement of Cash Flow.                            | 7
|    |                                                    |  
|6.- | Notes to the financial statements.                 | 8



2







Report of Independent Registered Public
Accounting Firm



To the Stockholders and Board of Directors
of

Flexo Universal, S.A. de C.V.



We have audited the accompanying balance
sheets of Flexo Universal, S.A. de C.V. as of December 31 2014 and 2013, and the related statement of operations, stockholders'
equity and cash flows for the years then ended. These financial statements are the responsibility of the Company’s management.
Our responsibility is to express an opinion on these financial statements based on our audits.



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 financial statements are free of material misstatement. An audit includes
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, assessing the accounting principles used and significant
estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides
a reasonable basis for our opinions.



We draw attention to Note 2 of the financial
statements, which describes the basis of accounting. The financial statements are prepared according to Financial Reporting Standards
Applicable Mexico (FRS), which is a basis of accounting other than accounting principles generally accepted in the United States
of America. Our opinions are not modified with respect to this matter.



In our opinion, the financial statements
referred to above present fairly, in all material respects, the financial position of Flexo Universal, S.A. de C.V., as
of December 31 2014 and 2013 and the results of their operations and their cash flows for the years then ended, in conformity
with the basis of accounting described above.



HLB Vargas Graf y Cia., S.C

Zapopan, Jalisco, Mexico C.Cp. 45040



C.P.C. Antonio Vargas Aceves

Certified Public Accountant

Partner



November 25, 2015





3







|FLEXO UNIVERSAL,
    S.A. DE C.V.                 
|--------------------------------------------------
|BALANCE SHEET AS OF DECEMBER
    31, 2014 AND 2013
|( In Mexican pesos )                              
|(Notes 1 & 2)                                     



|                                                                                    |  | 2014 |             |  | 2013 |  
|----------------------------------------------------------------------------------- |  | ---- | ----------- |  | ---- | -
|CURRENT ASSETS:                                                                     |  |      |             |  |      |  
|                                                                                    |  |      |             |  |      |  
|Cash and cash equivalents                                                           |  | $    | 1,831,998   |  |      | $
|Accounts receivables                                                                |  |      | 40,413,382  |  |      |  
|Other accounts receivables (Note 3)                                                 |  |      | 3,840,861   |  |      |  
|Related parties  (Note 4)                                                           |  |      | 15,942,740  |  |      |  
|Inventories  (Note 5)                                                               |  |      | 49,368,070  |  |      |  
|Total current assets                                                                |  |      | 111,397,051 |  |      |  
|                                                                                    |  |      |             |  |      |  
|NON CURRENT ASSETS:                                                                 |  |      |             |  |      |  
|                                                                                    |  |      |             |  |      |  
|Machinery and equipment (Note 6)                                                    |  |      | 7,771,767   |  |      |  
|                                                                                    |  |      |             |  |      |  
|Warranty deposits                                                                   |  |      | 1,287,837   |  |      |  
|                                                                                    |  |      |             |  |      |  
|Other assets                                                                        |  |      | 766,543     |  |      |  
|                                                                                    |  |      |             |  |      |  
|Deferred income tax (Note 13)                                                       |  |      | 594,582     |  |      |  
|                                                                                    |  |      |             |  |      |  
|Total non current assets                                                            |  |      | 10,420,729  |  |      |  
|                                                                                    |  |      |             |  |      |  
|TOTAL ASSETS                                                                        |  | $    | 121,817,780 |  |      | $
|                                                                                    |  |      |             |  |      |  
|CURRENT LIABILITIES                                                                 |  |      |             |  |      |  
|                                                                                    |  |      |             |  |      |  
|Accounts payable to suppliers, accrued expenses and other accounts payable (Note 7) |  | $    | 18,016,793  |  |      | $
|ISR payable                                                                         |  |      | 3,342,273   |  |      |  
|PTU reserve                                                                         |  |      | 448,098     |  |      |  
|Current portion of long term liabilities to related parties (Note 8)                |  |      | 9,449,593   |  |      |  
|Total current liabilities                                                           |  |      | 31,256,757  |  |      |  
|                                                                                    |  |      |             |  |      |  
|LONG TERM LIABILITIES                                                               |  |      |             |  |      |  
|                                                                                    |  |      |             |  |      |  
|Long term liabilities to related parties  (Note 8)                                  |  |      | 2,807,062   |  |      |  
|                                                                                    |  |      |             |  |      |  
|Total long term liabilities                                                         |  |      | 2,807,062   |  |      |  
|                                                                                    |  |      |             |  |      |  
|TOTAL LIABILITIES                                                                   |  |      | 34,063,819  |  |      |  
|                                                                                    |  |      |             |  |      |  
|STOCKHOLDERS' EQUITY                                                                |  |      |             |  |      |  
|                                                                                    |  |      |             |  |      |  
|Capital stock  (Note 10)                                                            |  |      | 47,410,945  |  |      |  
|Legal Reserve                                                                       |  |      | 1,393,404   |  |      |  
|Accumulated results                                                                 |  |      | 22,830,186  |  |      |  
|Period's net (loss) profit                                                          |  |      | 16,119,426  |  |      |  
|TOTAL STOCKHOLDERS' EQUITY                                                          |  |      | 87,753,961  |  |      |  
|                                                                                    |  |      |             |  |      |  
|Contingencies (Note 12)                                                             |  |      | -           |  |      |  
|                                                                                    |  |      |             |  |      |  
|TOTAL LIABILITIES AND STOCKHOLDERS'                                                 |  |      |             |  |      |  
|EQUTIY                                                                              |  | $    | 121,817,780 |  |      | $



The enclosed notes are an integral part of
these financial statements



4







|FLEXO
    UNIVERSAL, S.A. DE C.V.              
|-----------------------------------------------
|STATEMENT
    OF OPERATIONS FOR THE YEARS ENDED
|DECEMBER
    31,  2014 AND 2013                
|( In Mexican
    pesos )                       



|                                   |  | 2014 |              |   | 2013 |  
|---------------------------------- |  | ---- | ------------ | - | ---- | -
|                                   |  |      |              |   |      |  
|Net sales                          |  | $    | 169,425,816  |   |      | $
|Cost of products sold              |  |      | (126,903,053 | ) |      |  
|GROSS PROFIT                       |  |      | 42,522,763   |   |      |  
|                                   |  |      |              |   |      |  
|Operating expenses                 |  |      |              |   |      |  
|Administration and sales expenses  |  |      | (17,381,574  | ) |      |  
|Other income, (expenses)  - net    |  |      | (1,062,665   | ) |      |  
|                                   |  |      | (18,444,239  | ) |      |  
|                                   |  |      |              |   |      |  
|OPERATION NET PROFIT               |  |      | 24,078,523   |   |      |  
|                                   |  |      |              |   |      |  
|INTEGRAL FINANCING RESULTS         |  |      |              |   |      |  
|Exchange rate fluctuations - net   |  |      | 861,038      |   |      |  
|interest - net                     |  |      | (1,107,052   | ) |      |  
|                                   |  |      | (246,014     | ) |      |  
|                                   |  |      |              |   |      |  
|PROFIT BEFORE INCOME TAXES AND EPS |  |      | 23,832,509   |   |      |  
|                                   |  |      |              |   |      |  
|Employees' profit sharing          |  |      | (361,222     | ) |      |  
|Income tax                         |  |      | (6,356,134   | ) |      |  
|Deferred income tax                |  |      | (995,726     | ) |      |  
|                                   |  |      | (7,713,083   | ) |      |  
|                                   |  |      |              |   |      |  
|NET  PROFIT                        |  | $    | 16,119,426   |   |      | $



The accompanying notes are an integral part
of these financial statements



5







|FLEXO
    UNIVERSAL, S.A. DE C.V.                  
|---------------------------------------------------
|STATEMENT
    OF CHANGES IN STOCKHOLDER'S EQUITY   
|FOR THE YEARS
    ENDED DECEMBER 31,  2014 AND 2013
|( In Mexican
    pesos )                           



|                                                         |  | 2014 |             |   | 2013 |  
|-------------------------------------------------------- |  | ---- | ----------- | - | ---- | -
|                                                         |  |      |             |   |      |  
|CAPITAL STOCK                                            |  |      |             |   |      |  
|                                                         |  |      |             |   |      |  
|Initial period balance                                   |  | $    | 44,934,998  |   |      | $
|Capital stock increase (Note 10)                         |  |      | 2,475,947   |   |      |  
|Capital stock decrease (Note 10)                         |  |      |             |   |      |  
|Initial and final period balance                         |  |      | 47,410,945  |   |      |  
|                                                         |  |      |             |   |      |  
|LEGAL RESERVE                                            |  |      |             |   |      |  
|                                                         |  |      |             |   |      |  
|Initial period balance                                   |  |      | 670,811     |   |      |  
|Transfer from accumulated results (Note 11)              |  |      | 722,593     |   |      |  
|Final period balance                                     |  |      | 1,393,404   |   |      |  
|                                                         |  |      |             |   |      |  
|ACCUMULATED RESULTS                                      |  |      |             |   |      |  
|                                                         |  |      |             |   |      |  
|Initial period balance                                   |  |      | 11,596,368  |   |      |  
|Transfer from net  profit (loss)                         |  |      | 14,451,872  |   |      |  
|Transfer of 5% over profit period 2012, to legal reserve |  |      | (722,593    | ) |      |  
|Dividends                                                |  |      | (2,495,461  | ) |      |  
|Final period balance                                     |  |      | 22,830,186  |   |      |  
|                                                         |  |      |             |   |      |  
|NET PROFIT (LOSS)                                        |  |      |             |   |      |  
|                                                         |  |      |             |   |      |  
|Initial period balance                                   |  |      | 14,451,872  |   |      |  
|Transfer to accumulated results                          |  |      | (14,451,872 | ) |      |  
|Net  profit                                              |  |      | 16,119,426  |   |      |  
|Final period balance                                     |  |      | 16,119,426  |   |      |  
|                                                         |  |      |             |   |      |  
|TOTAL                                                    |  | $    | 87,753,961  |   |      | $



The accompanying notes are an integral part
of these financial statements



6







|FLEXO
    UNIVERSAL, S.A. DE C.V.                  
|---------------------------------------------------
|CASH FLOW
    STATEMENT                            
|FOR THE YEARS
    ENDED DECEMBER 31,  2014 AND 2013
|                                                   
|( In Mexican
    pesos )                           



|                                                        |  | 2014 |             |   | 2013 |  
|------------------------------------------------------- |  | ---- | ----------- | - | ---- | -
|OPERATING ACTIVITIES:                                   |  |      |             |   |      |  
|                                                        |  |      |             |   |      |  
|Net profit                                              |  | $    | 16,119,426  |   |      | $
|                                                        |  |      |             |   |      |  
|Items related with investment activities                |  |      |             |   |      |  
|Depreciation                                            |  |      | 2,191,987   |   |      |  
|Balance canceled due to defered flat tax abrogation     |  |      | -           |   |      |  
|Items related with financing activities                 |  |      |             |   |      |  
|Interest                                                |  |      | 1,107,052   |   |      |  
|                                                        |  |      | 19,418,465  |   |      |  
|                                                        |  |      |             |   |      |  
|Trade debtors and other receivables (increase) decrease |  |      | (18,982,817 | ) |      |  
|Inventories increase                                    |  |      | (6,834,407  | ) |      |  
|Other assets (increase) decrease                        |  |      | 1,951,564   |   |      |  
|Liabilities to related parties increase (decrease)      |  |      | 1,986,564   |   |      |  
|Suppliers and other liabilities (decrease)  increase    |  |      | 35,182      |   |      |  
|Taxes paid                                              |  |      | (452,736    | ) |      |  
|                                                        |  |      |             |   |      |  
|Net cash flow from financial activities                 |  |      | (2,878,185  | ) |      |  
|                                                        |  |      |             |   |      |  
|INVESTING ACTIVITIES:                                   |  |      |             |   |      |  
|                                                        |  |      |             |   |      |  
|Machinery and equipment acquisition (net)               |  |      | (1,926,224  | ) |      |  
|                                                        |  |      |             |   |      |  
|                                                        |  |      | (1,926,224  | ) |      |  
|FINANCING ACTIVITIES:                                   |  |      |             |   |      |  
|                                                        |  |      |             |   |      |  
|Long term liabilities to related parties                |  |      | 97,614      |   |      |  
|Paid interest                                           |  |      | (1,107,052  | ) |      |  
|Dividends                                               |  |      | (2,495,461  | ) |      |  
|Increase Social Capital (capitalization of liabilities) |  |      | -           |   |      |  
|Social Capital (Decrease) increase                      |  |      | 2,475,947   |   |      |  
|                                                        |  |      | (1,028,952  | ) |      |  
|                                                        |  |      |             |   |      |  
|INCREASE IN CASH AND CASH EQUIVALENTS                   |  | $    | (5,833,361  | ) |      | $
|                                                        |  |      |             |   |      |  
|                                                        |  |      |             |   |      |  
|Cash and cash equivalents at beginning of year          |  | $    | 7,665,359   |   |      | $
|Cash and cash equivalents at end of year                |  | $    | 1,831,998   |   |      | $



The accompanying notes are an integral part
of these financial statements



7







NOTES TO FINACIAL STATEMENTS

FLEXO UNIVERSAL, S.A. DE C.V.

As of December 31st, 2014
and 2013

In Mexican pesos.



NOTE 1 – COMPANY DESCRIPTION:



Flexo Universal, S.A. de C.V. (FLEXO)
was constituted on 2002. Subsidiary of CTI Industries INC, a North American company that owns 99.8260% of its capital stock.



Its main activity is the production of
latex and mylar balloons; this operation is performed under the shelter of its parent company that finances its operations.



NOTE 2 – MAIN ACCOUNTING POLICIES



| | a. | Basis
                                         for presentation
| | -- | ---------------------------------------------------------------



The significant accounting policies adopted
by the company are in accordance with the Financial Reporting Standards in Mexico (FRS) and Interpretations to the Financial Reporting
Standards (IFRS).



Those Standards (FRS), may differ from
accounting principles generally accepted in the United States of America (US GAAP). However, under an analysis of similarities,
convergences and important differences between the two standards with respect to the operations recorded that generate the financial
information of the Company, we can conclude that there are no differences that could lead to material adjustments and alter that
information



| | b. | Estimates
                                         and assumptions
| | -- | ------------------------------------------------------------------



The preparation of financial statements
in accordance with Mexican financial reporting standards requires the company's management to make certain estimates and provisions
that may affect the value of some assets and liabilities at the date of the balance sheet, as well as the value and measurement
of revenues, costs and expenses during the reported period. Even if the final result of these estimates and provisions may differ
from the calculated, management believes that those were appropriate used to the circumstances.



| | c. | Monetary
                                         unit
| | -- | ------------------------------------------------------



Financial Statements are prepared in Mexican
pesos ($), currency which, bases on Mexican laws, the company’s accounting records must be prepared.



| | d. | Cash
                                         and equivalents
| | -- | -------------------------------------------------------------



Mainly represented by deposits in bank
accounts.



| | e. | Accounts
                                         receivable and estimation for allowance for doubtful accounts
| | -- | ---------------------------------------------------------------------------------------------------------------



Represent collection right originated
from inventory sales. Accounts in foreign currency are valuated at the year closing exchange rate.



Estimates for doubtful collection accounts
represent the inherent probable loss of all receivables due the behaviour of historic tendencies of the accounts receivable. Since
2009 the company has issued a provision to absorb the uncollectible accounts.



8







| | f. | Inventories
| | -- | -----------



Inventories of finished goods, production
in process and raw materials, are registered at its historic acquisition and production cost, using the absorbing cost system.
The acquisition cost includes all associated expenses until the inventories are ready to be produced or sold. Inventories are
valuated by the average cost method net form the value estimates which does not exceed their realization value.



| | g. | Machinery
                                         and equipment
| | -- | ----------------------------------------------------------------



Fixed Assets acquired from the fusion,
were registered according to the historic cost of the absorbed company, adding the difference from the valuation practiced by
and independent appraiser on 17th, 1996. Fixed assets acquisitions after the fusion are registered at its acquisition
cost.



The acquisition cost includes all associated
expenses until the fixed assets are ready to be used.



Depreciations are computed by the straight-line
method, beginning in year in which assets are used, and according to the following:



|                               |  | Rates % |      
|------------------------------ |  | ------- | -----
|Leasehold improvements         |  |         | 10.00
|Molds                          |  |         | 20.00
|Computer equipment             |  |         | 30.00
|Machinery and office equipment |  |         | 10.00
|Tools and medical equipment    |  |         | 35.00
|Transport equipment            |  |         | 25.00
|Forklift                       |  |         | 25.00



| | h. | Long
                                         lived assets evaluation
| | -- | ---------------------------------------------------------------------



Impairment of long term assets –
As of January 1°, 2004 The C-15 Bulletin “Impairment in the value of long lasting assets and its disposal” became
effective. This bulletin requires that companies determine the effect of impairment in long lasting assets in use, in case of
detection of indication of impairment or losses for impairment recognized in those assets. In opinion of the Company’s management,
there are no traces of impairment that could have an effect in the results, in accordance with the Bulletin.



| | i. | Income
                                         tax
| | -- | ---------------------------------------------------



The current income tax is determined according
to current tax legislation. The deferred income tax is recorded in accordance with the asset and liability method, which compares
the accounting and tax values of them. Deferred tax are recognized (assets and liabilities) for future tax consequences attributable
to temporary differences between the values reflected in the financial statements of existing assets and liabilities and their
respective tax bases and for tax loss carry forwards and tax credits not used. The assets and liabilities of deferred tax are
calculated using the rates established in the law that will be applied to taxable income in years when it is estimated that the
temporary differences will reverse. The effect of changes in tax rates on deferred taxes is recognized in the results of the period
in which those changes are approved. The deferred tax asset is recorded only when there is a high probability of recovery. As
of January 1°, 2008 this FRS was modified, the main changes are:



| | · | Caused
                                         and deferred Employee Profit Sharing (PTU).- This concept is considered as an ordinary
                                         expense based on the benefits to employees, that is the reason why it is now classified
                                         in the results statement in other income and expenses.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Cumulative
                                         Effect of Income Tax — The previous bulletin stated that this component will be
                                         presented separately in equity, the change consists to reclassify this concept to cumulative
                                         results.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



9







| | j. | Liabilities
| | -- | -----------



The Company applies the dispositions of
FRS C-9 “Liabilities, provisions, contingent assets and liabilities and commitments”. Bulletin C-9 establishes the
valuation, presentation and disclosure general rules of liabilities provisions, contingent assets and liabilities.



| | k. | Labor
                                         liabilities
| | -- | ----------------------------------------------------------



As of February 2014, the Company’s
management decided to outsource payroll services through the figure "Outsourcing" with the company Desarrollo Fomento
Organizativo, SA de CV, so from that date on employees of Universal Flexo, SA de CV, retaining their seniority and rights, became
employees of "Desarrollo Fomento Organizativo, SA de C.V. "



| | l. | Recognition
                                         of revenue
| | -- | ---------------------------------------------------------------



Revenue is recognized in the period in
which the risks and benefits of inventory are transferred to customers who acquire them, which generally occurs when these inventories
are delivered and the corresponding invoice is prepared



| | m. | Foreign
                                         currency operations
| | -- | --------------------------------------------------------------------



Foreign currency operations are accounted
at the exchange rate of the day of their occurrence. Assets and liabilities in foreign currency are registered in Mexican pesos
at the exchange rate published by the Central Bank (Banco de Mexico) at the date of the financial statements. Exchange rate differences
in assets and liabilities in foreign currency are registered in the year’s result.



| | n. | Leasing
| | -- | -------



The company classifies as operative leasing
those operations in which only is granted the use or possession of the leased assets, without assuming the risks or benefits of
such assets. These rents are applied to the results in the period of the lease. Variable rents are applied to results as they
are accrued.



| | o. | Income
                                         statement
| | -- | ---------------------------------------------------------



Income statements are classified by its
operative activities, according to the company’s opinion; this classification allows evaluating the result of its operations
identifying the cost of goods sold and administrative and sales expenses.



| | p. | Integral
                                         Financial Result (RIF)
| | -- | ------------------------------------------------------------------------



The RIF includes net accrued interests,
exchange rate profit (loss), monetary position gain (loss) and derivate financial instruments profit (loss).



Exchange rate profit (loss) originated
by transactions in foreign currency, is the result of the exchange rates fluctuations at the date of the operation registry, at
the date of realization or at the periods end valuation.



10







NOTE 3 – OTHER ACCOUNTS RECEIVABLE



As of December 31st, 2014 and
2013, the other accounts receivable are integrated as follows:



|                                              |  | 2014 |           |  | 2013 |  
|--------------------------------------------- |  | ---- | --------- |  | ---- | -
|Accounts receivable to officers and employees |  | $    | -         |  |      | $
|Sundry debtors                                |  |      | 824,545   |  |      |  
|Other Collective taxes                        |  |      | 1,067,472 |  |      |  
|Creditable VAT                                |  |      | 1,948,844 |  |      |  
|                                              |  | $    | 3,840,861 |  |      | $



NOTE 4 – RELATED PARTIES



Following a summary of the operations
with related parties which originate the balances with related parties as of December 31st, 2014 and 2013 is presented:



|                           |  | 2014 |            |  | 2013 |  
|-------------------------- |  | ---- | ---------- |  | ---- | -
|Goods Sold:                |  |      |            |  |      |  
|CTI Industries Corporation |  | $    | 21,292,943 |  |      | $
|                           |  |      |            |  |      |  
|Inventory Purchases:       |  |      |            |  |      |  
|CTI Industries Corporation |  | $    | 7,694,886  |  |      | $



Accounts receivable and (payable) to related
parties are:



|                                    |  | Asset (Liabilitie) |           
|----------------------------------- |  | ------------------ | ----------
|                                    |  | 2014               |           
|CTI Industries Corporation          |  | $                  | 11,750,928
|Arci, S.C.                          |  |                    | -         
|Pablo Gortazar de Oyarzabal         |  |                    | 779,992   
|Calidad Empresarial Mexicana        |  |                    | (13,040   
|CTF International S.A. de C.V.      |  |                    | -         
|CTI Mexico Corporation S.A. de C.V. |  |                    | -         
|CTI Europe GMBH                     |  |                    | 2,217,320 
|Venture Leasing, S. de R.L. de C.V. |  |                    | 1,207,540 
|                                    |  | $                  | 15,942,740



NOTE 5 – INVENTORIES



The balance of this account is integrated
as follows:



|                      |  | 2014 |            |  | 2013 |  
|--------------------- |  | ---- | ---------- |  | ---- | -
|Finished goods        |  | $    | 38,494,667 |  |      | $
|Packing material      |  |      | 2,519,357  |  |      |  
|Production in process |  |      | 3,455,053  |  |      |  
|Raw materials         |  |      | 4,898,993  |  |      |  
|                      |  | $    | 49,368,070 |  |      | $



11







NOTE 6 – MACHINERY AND EQUIPMENT



This item is analysed follows:



|                                |  | 2014 |             |   | 2013 |  
|------------------------------- |  | ---- | ----------- | - | ---- | -
|Machinery                       |  | $    | 25,982,728  |   |      | $
|Leasehold improvements          |  |      | 3,003,934   |   |      |  
|Molds                           |  |      | 5,426,380   |   |      |  
|Computer equipment and softwere |  |      | 827,519     |   |      |  
|Transport equipment             |  |      | 297,273     |   |      |  
|Furniture and office equipment  |  |      | 276,723     |   |      |  
|                                |  |      | 35,814,557  |   |      |  
|Depreciations and amortizations |  |      | (28,042,790 | ) |      |  
|Total Machinery and equipment   |  | $    | 7,771,767   |   |      | $



The depreciation and amortization method
and the annual rates are stated in note 2g. The charge to results amounted $2,191,987. and $2,694,889. for the periods ended on
December 31st, 2014 and 2013 respectively.



Leasehold agreement

The company celebrated a leasehold agreement
with Cuauhtemoc Inmobiliaria S.A. de C.V., for the building and facilities where it is located, both plant and administrative
offices, these agreements establishes that the term of the leasehold is of a mandatory 5 years and 5 years voluntary to the sub-lessor,
the new agreement takes place since August 1st 2011 and ends on July 13, 2016.



The charge to results amounted $4,994,680.
and $4,961,429.for the years ended on December 31st, 2014 and 2013 respectively



NOTE 7 – OTHER ACCOUNTS PAYABLE



Some items presented in the balance sheet
are analysed as follows, as of December 31st.



|                                                |  | 2014 |            |  | 2013 |  
|----------------------------------------------- |  | ---- | ---------- |  | ---- | -
|Accounts payable to suppliers, accrued expenses |  |      |            |  |      |  
|and other accounts payable:                     |  |      |            |  |      |  
|Suppliers                                       |  | $    | 15,200,710 |  |      | $
|Salaries payable                                |  |      | -81,864    |  |      |  
|Sundry creditors                                |  |      | 2,759,411  |  |      |  
|Rated reserves                                  |  |      | 123,206    |  |      |  
|Taxes payable                                   |  |      | 15,330     |  |      |  
|                                                |  | $    | 18,016,793 |  |      | $



12









NOTE 8 – LONG TERM LIABILITIES
TO RELATED PARTIES





|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  | 2014 |            |   | 2013 |  
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | ---------- | - | ---- | -
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |      |            |   |      |  
|CTI  Industries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  |      |            |   |      |  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |      |            |   |      |  
|Term promissory note                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |      |            |   |      |  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |      |            |   |      |  
|Flexo Universal, S.A. de C.V.,  hereby further promises to pay interest
    to the order of CTI Industries Corporation on the unpaid principal balance hereof at the Interest Rate (as hereinafter defined).  Such
    interest shall be paid in like money at said office or place from the date hereof, commencing March 31, 2014 and on the first
    day of each calendar quarter thereafter until the indebtedness evidenced by this Note is paid in full.  Interest
    payable upon and after an Event of Default or termination or non renewal of the Loan Agreement shall be payable upon demand.
    For purposes hereof, the term "Interest Rate" shall mean a rate of two and one-half  percent (2.5%) per annum ;
    provided, that, at Payee's option, the Interest Rate shall mean a rate of eight percent (8.0%) per annum  upon and
    after an Event of Default ; the term “Event of Default shall mean the failure of Flexo Universal, S.A. de C.V., to make
    any payment of principal or interest when due hereunder. This Note is issued to document amounts due from Flexo Universal,
    S.A. de C.V., to CTI Industries Corporation as of December 31, 2013, including $68,669 in principal amount due and $502,545
    in accrued interest on indebtedness previously due from Flexo Universal, S.A. de C.V., to CTI Industries Corporation. |  |      | 8,627,141  |   |      |  
|Current portion of long term liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |      | (8,627,141 | ) |      |  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |      |            |   |      |  
|Loans current account 2014                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  |      |            |   |      |  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |      |            |   |      |  
|Undocumented loans current account totaling $ 55.817 US dollars, without interest and agreed
    term                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |      | 822452     |   |      |  
|Current portion of long term liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |      | (822,452   | ) |      |  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |      |            |   |      |  
|CTI  Balloons                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |      |            |   |      |  
|Loan made by CTI BALLONS to finance the company's operation amounted $69,478 US dollars payable
    in 3 years with an interest annual rate of LIBOR +.25 points                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |      | 1,023,744  |   |      |  
|interest payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |      | 530,209    |   |      |  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |      |            |   |      |  
|Pablo Gortazar                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |      |            |   |      |  
|Loan made by PABLO GORTAZAR to liquidate CTF INTERNATIONAL's financing amounted $980,704
    Mexican Pesos.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |      | 980,704    |   |      |  
|Loan made by PABLO GORTAZAR to liquidate CREDIT UNION's fiancincing amounted $776,070 Mexican
    pesos,  with an interest annual rate LIBOR +.25 points                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |      | 272,405    |   |      |  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |      |            |   |      |  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |      | 12,256,655 |   |      |  
|Total long term liabilities to related parties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |      | (9,449,593 | ) |      |  
|Total current portion of long term liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | $    | 2,807,062  |   |      | $



13







NOTE 9 – POSITION AND TRANSACTION
IN FOREING CURRENCY



As of December 31st, 2014 and
2013, the company had rights and (obligations) in foreign currency as follows:





|                                                                    |  | US Dollars |           
|------------------------------------------------------------------- |  | ---------- | ----------
|                                                                    |  | 2014       |           
|Assets                                                              |  | $          | 1,845,213 
|Liabilities                                                         |  |            | (1,620,173
|                                                                    |  |            |           
|Excess of assets over (liabilities), assets in foreign
    currency |  | $          | 225,040   





Assets where translated and adjusted using
the exchange rate $14.7348 and $ 13.0652 pesos per US dollar, as of December 31st, 2014 and 2013 respectively. As of
march 17, 2015 the exchange rate is $15.4271 pesos per dollar.



NOTE 10 – CONTRIBUTED CAPITAL



The company’s capital stock integrated
as follows as of December 31st, 2014 and 2013:



|                       |  | 2014 |            |  | 2013 |  
|---------------------- |  | ---- | ---------- |  | ---- | -
|Fixed capital stock    |  | $    | 50,000     |  |      | $
|Variable capital stock |  |      | 47,360,945 |  |      |  
|                       |  |      |            |  |      |  
|Total capital stock    |  | $    | 47,410,945 |  |      | $



The company’s capital stock is variable,
with a fix minimum of $50,000 without possible of retiring. The variable part has not limit. Shares are common, nominative and
are valuated as follows:



|"A" |  |  | 0.0679 |  |  |  | 1.00 | 
|--- |  |  | ------ |  |  |  | ---- | 
|"B" |  |  | 0.0679 |  |  |  | 1.00 | 



On April 3, 2014 the shareholders of the
company agreed and approved unanimously an increase to variable share capital in the amount of $ 150,000. US dollars or its equivalent
in pesos $ 2'475,947, by issuing 2'475,947 Series B common shares with nominal value of $ 1.00 each



On March 26, 2014 the shareholders of
the company agreed and approved unanimously to declare a dividend payment from the income tax earnings (CUFIN) for a total of
$ 190,347.77. US dollars or its equivalent in pesos $ 2'495,459.20



In the Ordinary General Meeting held the
day August 5, 2013, a decrease of share capital was approved in the variable by repayment of 21,411 shares with a par value of
$ 1.00 each.



In the Ordinary General Meeting held the
day August 16, 2013, an increase of capital was approved in the variable through the capitalization of liabilities by the Company
and for CTI Industries Corporation totalling $ 39,857,357. pesos M.N.



14







NOTE 11 – EARNED (LOSS) SURPLUS:



Under Mexican laws, a legal reserve must
be created and increased by annually in 5% of the retained earnings up to a total of 20% of the Company’s Capital Stock.
This reserve is not available for dividends payments, but can be used to reduce accumulated losses or to be turned in capital
stock.



NOTE 12 – CONTINGENCIES:



| | a. | Federal
                                         contributions are subject to certain reviews by the fiscal authorities, during a five
                                         year period.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | b. | Due
                                         to the related parties operations there could be some differences with taxes, if the
                                         fiscal authority decides to review those transactions, and the IRS considers that the
                                         prices and amounts used by the Company were not at the same level as those used in the
                                         regular market or among independent parties in comparable transactions.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



NOTE 13- INCOME TAX (IT), CORPORATE
FLAT TAX RATE (IETU) AND EMPLOYEES PROFIT SHARING (PTU):



Cost (benefit) of the tax applied to result
is integrated as follows:



|              |  | 2014 |           |  | 2013 |  
|------------- |  | ---- | --------- |  | ---- | -
|ISR payable   |  | $    | 6,356,134 |  |      | $
|Deferred ISR  |  |      | 995,726   |  |      |  
|Deferred IETU |  |      |           |  |      |  
|Net           |  | $    | 7,351,860 |  |      | $



| | a. | IT
| | -- | --



The main differences between the accounting
profit and the tax result are:





|                                                                   |  | 2014 |            |  | 2013 |  
|------------------------------------------------------------------ |  | ---- | ---------- |  | ---- | -
|Net (Loss) profit                                                  |  | $    | 16,119,426 |  |      | $
|Plus (minus)                                                       |  |      |            |  |      |  
|Excess of accounting depreciation net over the fiscal depreciation |  |      | -1,483,107 |  |      |  
|Excess of accounting deductions net over the fiscal deductions     |  |      | 8,116,711  |  |      |  
|Fiscal (loss) profit                                               |  |      | 22,753,030 |  |      |  
|Minus employee profit sharing (PTU) paid in 2012 and 2011          |  |      | -1,565,918 |  |      |  
|Tax basis to IT                                                    |  |      | 21,187,112 |  |      |  
|Rate                                                               |  |      | 0.30       |  |      |  
|IT payable (ISR)                                                   |  | $    | 6,356,134  |  |      | $





15







As December 31st, 2014 and
2013 temporary differences and fiscal losses carry forward recognized by the company on the deferred IT calculations are:



|                         |  | 2014 |            |   | 2013 |  
|------------------------ |  | ---- | ---------- | - | ---- | -
|Year effect calculation: |  |      |            |   |      |  
|Deferred expenses        |  | $    | (286,898   | ) |      | $
|Suppliers                |  |      | (1,695,041 | ) |      |  
|Base                     |  |      | (1,981,939 | ) |      |  
|Tax Rate                 |  |      | 0.30       |   |      |  
|                         |  |      | (594,582   | ) |      |  
|Accrued inventory        |  |      | -          |   |      |  
|Total (debit) credit     |  |      | (594,582   | ) |      | $
|Recognized               |  |      | (1,590,308 | ) |      |  
|Complement               |  | $    | 995,726    |   |      |  



| | b. | IETU
| | -- | ----



On November 2013 tax reform was approved
for 2014, the following was modified:



- New Income Tax Law, rate remaining at
30%.

- Law Corporate Flat Tax (IETU) is abrogated.



The deferred IETU registered as a liability
in previous periods is cancelled because this tax law was abrogated and is no longer in force. According to IFRS 20 (Interpretations
to Financial Reporting Standards in Mexico) has to be accrued in the fiscal period 2013 as income for a total amount of $2,484,345.



|                                     |  | 2012 |             |   | 2011 |   |             | Previousyears | 
|------------------------------------ |  | ---- | ----------- | - | ---- | - | ----------- | ------------- | 
|                                     |  |      |             |   |      |   |             |               | 
|Trade debtors                        |  |      | 29,013,948  |   |      | $ | 26,219,699  |               | 
|Liabilities provisions               |  |      | (13,238,508 | ) |      |   | (23,613,526 | )             | 
|                                     |  |      | 15,775,440  |   |      |   | 2,606,173   |               | 
|IETU rate                            |  |      | 17.50       | % |      |   | 17.50       | %             | 
|                                     |  |      | 2,760,702   |   |      |   | 456,080     |               | 
|Inventories and fixed assets credits |  |      | (276,357    | ) |      |   | (276,357    | )             | 
|Deferred IETU payable                |  |      | 2,484,345   |   |      | $ | 179,723     |               | 
|Recognized in previous years         |  |      | 179,723     |   |      |   | 744,259     |               | 
|Complement                           |  |      | 2,304,622   |   |      |   | (564,536    | )             | 



| | c. | PTU
| | -- | ---



As mentioned in note 2 l., The Company
had work obligations until January 31, 2014 date on which the company subcontract outsourcing services for personnel management.
Therefore the company determined and paid Employee profit sharing (PTU) only by the time elapsed from January 1 to January 31,
2014



Employee profit sharing (PTU) which is
caused at a 10% rate is calculated based on the fiscal profit, excluding the inflation effects. As of December 2014 and 2013,
employee profit sharing amounts to $361,222.and $1,574,698.



16







NOTE 14 - NEW ACCOUNTING PRONOUNCEMENTS.



The Mexican Council for Research and Development
of Financial Reporting Standards (CINIF), an independent body in charge of the development of the Mexican Accounting Standards,
has made public the submission of the following FRS (Financial Reporting Standards) listed below:



FRS C-9 “Provisions, contingencies
and commitments”

FRS C-19 “Financial Instruments
payable”

FRS D-3 “Employee Benefits”

Improvements to FRS 2015



The FRS C-9 and C-19 will become effective
as of January 1°, 2018; with early application permitted under the terms established in each FRS.



The FRS D-3 will become effective for
the fiscal years that begin as of January 1°, 2016.



The Improvements to FRS 2015, will become
effective for the fiscal years that begin as of January 1°, 2015.



Is important to note, the use of FRS increases
the quality of the financial information contained in the financial statements, thus ensuring their greater acceptance, not only
nationally, but also internationally.



NOTE 15 -.APPROVAL OF THE ISSUANCE
OF THE FINANCIAL STATEMENTS.



The financial statements were authorized
for issue on March 10, 2015, by Pablo Gortazar de Oyarzabal, General Manager and Legal Representative, and subject to the approval
of the general assembly of partners of the Company who may decide its modification in accordance with the provisions of the General
Law of Commercial Societies.



The accompanying explanatory notes are
an integral part of the financial statements.



| | Flexo Universal, S.A.
    de C.V. | 
| | --------------------------------- | 
| |                                   | 
| | _____________________________     | 
| | Lic. Pablo Gortazar de Oyarzabal  | 
| | Legal Representative              | 



17