WORKING DRAFT Kait → Amzy · June 2026 · raw notes, not final
NOT FOR DISTRIBUTION
// KMB → Reveille · Working Draft · First full pass

Group
Island Spirit

A vertically-integrated electric-catamaran builder and charter platform in Thailand — the shape of the company, reconstructed from 42 source documents.

This is discovery — what the business is, how it's wired, and what we still need. The value conversation (our Alpha · Delta approach — build the value, then extract it) comes later, once the model is rebuilt on clean numbers.
11 entities · 4 jurisdictions · Wyoming TopCo · founder-controlled
Scroll — the company · the structure · the gate · the gaps
From Kait · what this is

This is my working picture of GIS after a full pass through the data room (42 documents). Sharing it so you have the same map I'm working from, not a final deliverable. Numbers are KMB reconstructions from source documents; the model rebuild comes later.

The headline finding: the structure is more complex than the original profile showed. 11 entities across 4 jurisdictions, and control of the Thai layer sits on a pledge/nominee arrangement that needs a Thai-counsel opinion before we spend anything on audit. That's the gate.

I'm still working through the Bat-O-Bleu / GIS Europe BV piece and confirming a few structural details in that part of the chain, so treat those sections as directional for now. The US control picture and the cap table I'm confident in.

Open items flagged throughout are real data room gaps. Thai counsel + the ASC 606 revenue work will both move the numbers, and probably in a good direction. I'll flag where I want your input or a document push.

01 · What it is

Four businesses, one US parent, one electric thesis.

A roll-up assembled in 2018–19 from existing charter, sailing-school and manufacturing operations — then, in 2021, pivoted to all-electric catamarans.

Manufacturing

GISM · Rayong

Electric & diesel sailing/power catamarans — IS525E, IS410E, the N20 tour cat. The growth engine.

Charter

Elite · Phuket

Manages ~20 bareboat yachts for ~17 third-party owners. The steady cash line.

School + Brokerage

ISC · Gulf of Thailand

SE-Asia's largest blue-water sailing school + yacht brokerage. Owns a real fleet.

Seychelles charter

Bat-O-Bleu

A Seychelles charter operator acquired 2023 (~€1.24M); GIS's first base outside Thailand.

On the electric thesis: The EV positioning is real and it's what brought Navigare to the table. Still working through how much weight it carries from a value standpoint. In today's micro-cap market the "green premium" tends to compress, so holding it as a narrative and exit asset for now, not a multiple driver. More to say on this once the model is rebuilt.
02 · The structure · the key picture

How the US controls a Thai-majority group.

Our reading from the registers, the 2020 org chart and the tax returns. Jack & Ron: does this match how you'd describe it?

GIS Inc — Wyoming TopCo The US company that would list publicly Jack + Ron control ~66% · ~62 Reg D/S holders GIS LLC Holds + funds the foreign entities; books the investments IS Finance US finance arm (Texas) MultiHull LLC US SPV GIS-Thailand — the apex Registered as a TRANSPORT company 51% preferred → Radhanond "Rusty" (a Thai national) 49% common → the US side (GIS LLC + Jack + Ron) ▸ in turn owns the manufacturer + 70% of the charter co. ⌁ The control mechanism Radhanond's 51% preferred is pledged to GIS LLC, carries a purchase option + signed transfers, and earns no cash flow → the US controls the entity and takes ~99.7% of the economics. "in accordance with the US/Thailand treaty… partially" 49% common GISM Manufacturing Rayong plant; electric + diesel catamarans. ~100% owned by the apex (mfg isn't FBA-restricted) ISC Charter · School · Brokerage 70% via the apex + 30% held by the US direct. Owns a real fleet. Elite Phuket charter ~100% owned by ISC. Owns no boats — manages ~20 for third-party owners. Bat-O-Bleu Europe / Seychelles Belgian-incorporated, Seychelles charter ops. Acq. 2023 via GIS Europe BV; added ~$1.5M revenue. ~100% 70% 100% 30% direct via GIS Europe BV Solid = ownership / equity · Dashed = control-via-pledge, or a direct foreign-minority stake
03 · The gate · before anything else

Get Thai counsel before any audit spend.

Everything above — the consolidation, the tax position, the valuation — rests on one Thai-law question: is the nominee/pledge over the 51% Thai owner legal and enforceable, or does the Foreign Business Act void it? The Treaty of Amity covers most sectors but excludes transport, which is exactly the charter layer. This is the cheapest, highest-leverage, first step — do it before spending a dollar on the audit.

  • Is there a real Amity Treaty certification on file — and which entities does it cover?
  • Does charter/transport fall in the Amity-excluded zone, forcing the nominee structure?
  • Does the pledge/option/transfer survive Foreign Business Act scrutiny?
  • If not — what's the fix (BOI promotion, restructure the charter entity, real Thai partners)?
04 · Control & economics

Founder control is locked; minority leakage is ~nil.

Who controls GIS Inc

A super-voting Class A preferred (votes = 2× all common; 10,000 shares held by five insiders) puts control with the founders regardless of the common float.

  • Jack Matz — ~30% common · ~34% of the vote
  • Ron Patston — ~25% common · ~32% of the vote
  • Jack + Ron together — ~55% common · ~66% of the vote
  • RW Solutions — ~12% common · a significant minority, not control
Class B preferred converts to common on 30-Apr-2025 — that dilutes common economics, but not control: the Class A super-vote scales with total common, so Jack + Ron keep ~⅔ of the vote regardless.

Who gets the economics

US economic interest in Thai ops
~99.7%

Radhanond's 51% preferred is pledged and earns no cash flow

Real non-controlling interest
~0.3%

A few token shares — not the 30% an earlier draft assumed

05 · The business reality

Real, growing, lumpy, and concentrated.

2013 Mfg + charter roots 2018 4 Thai entities formed 2019 Roll-up under WY TopCo 2020 Austhai acquired · COVID 2021 Electric-vehicle pivot 2023 Navigare order · Bat-O-Bleu 2024 Maverick loss · 1120+5471s 2026 Monetize (now)

Revenue mix — two engines

Boat manufacturing (large, point-in-time — swings as hulls deliver) and charter (steadier, but booked gross). Read the mix, not the totals.

Manufacturing — GISM $4.22M · 51% Charter — Elite (gross) $2.40M · 29% School + Brokerage — ISC $1.00M · 12% US charter mgmt — GIS LLC $0.62M · 8% KMB TB reconstruction · FY2025 · reported gross · consolidated ~$8.2M
Revenue recognition · ASC 606

ASC 606 will move the value, materially.

Two things change the revenue line a lot: (1) boat revenue is recognized point-in-time vs over-time, which shifts millions between years; (2) Elite books charter gross as an agent — on a net (commission) view, headline revenue drops sharply (EBITDA barely moves). The 2023 growth was also partly acquisition-driven (Bat-O-Bleu ~$1.5M), not organic. It's a substantial workstream of its own — and the main reason we're not putting a value on the company yet.

Navigare — the double edge

Best customer, biggest risk, likely exit.

Navigare (Dream Yacht / Beneteau group) ordered 9 electric cats (~$1.3M each). That's GIS's largest channel — so it's customer-concentration risk — but also the most logical strategic acquirer. Watch this thread.

Maverick — the boat loss

A casualty with an open insurance question.

The first IS525 hull was lost in a Dec-2024 casualty near Songkhla, then salvaged and retained (no write-off). No hull/voyage insurance recovery is visible — a real exposure to confirm, and a reminder the manufacturing line carries delivery risk.

06 · Consolidation (ASC 810) & tax, in plain English

One company on paper, held by one Thai-law thread.

Consider

Can we combine them?

US accounting lets us consolidate what we control, not just majority-own. The pledge over the Thai 51% gives control + economics → consolidation is supportable.

Why it matters

Tax already says so

The US return files ≥5 CFC Form 5471s + 18 FBARs asserting US control. Tax and accounting must tell the same control story — and they do.

The risk

Thai FBA / Amity

The charter/transport layer leans on a nominee/pledge in an Amity-excluded sector — the §03 gate. The tax filings raise the stakes: they're already on the record claiming US control.

07 · What we know · what's missing · why it matters

An honest map of the gaps.

What we now know
  • The full entity chain + the control mechanism
  • Founder voting control (Jack + Ron via Class A)
  • US gets ~99.7% of Thai economics; NCI ~0.3%
  • Tax: consolidated 1120, 5 CFC 5471s, 18 FBARs
  • Statutory FS 2023–25 for all four Thai entities
  • Original intent: electric-cat roll-up, OTC as deal currency
What's still missing
  • The Amity certification + the pledge/option instruments
  • Thai-counsel FBA/nominee opinion
  • Bat-O-Bleu / GIS Europe / Elite Yachting financials
  • A normalized (ASC 606) revenue picture
  • Fixed-asset registers · insurance (incl. Maverick) · loans
  • 2023 & 2025 tax returns · US 2023 TB
open gating document request
08 · Where this goes next

Reconcile → rebuild → then talk value.

Phase 1 — Reconcile

Close the legal gap

Cap table ✓ done. Next: the Thai-counsel opinion (§03), the Amity + pledge documents, and the missing entity financials.

Phase 2 — Rebuild

Models on the truth

Full-entity consolidation (NCI ~0.3%), the ASC 606 revenue work, corrected NAV — the inputs a real valuation needs.

Phase 3 — List

Path & vehicle

OTCID → OTCQB; GIS Inc lists; stress-test the Thai control against PCAOB + SEC scrutiny.

The value question — a separate, later track

Where value comes from — once we can number it.

The levers are clear: a clean audit + consolidation, de-levering the LOC stack, the electric-cat + charter-annuity story, and Navigare. We deliberately aren't attaching a dollar figure yet — the honest number depends on the Phase-2 rebuild (the 606 work moves it materially). We'll branch to the value view when the model supports it.

ALPHA · build value
DELTA · extract value
→ value track (pending)