Attached files
file | filename |
---|---|
8-K - CURRENT REPORT - DS HEALTHCARE GROUP, INC. | dskx_8k.htm |
EX-99.1 - FINANCIAL STATEMENTS - DS HEALTHCARE GROUP, INC. | dskx_99z1.htm |
EX-2.1 - SHARE EXCHANGE AGREEMENT - DS HEALTHCARE GROUP, INC. | dskx_ex2z1.htm |
EX-10.19 - EMPLOYMENT AGREEMENT - DS HEALTHCARE GROUP, INC. | dskx_ex10z17.htm |
EX-10.18 - PERFORMANCE AGREEMENT - DS HEALTHCARE GROUP, INC. | dskx_ex10z18.htm |
EXHIBIT 99.2
DS Healthcare Group, Inc.
Pro-Forma Consolidated Balance Sheet
December 31, 2011
|
| DS Healthcare Group, Inc. (Consolidated) |
|
| DS Laboratories, S.A. DE C.V. |
|
| Acquisition Adjustment |
| Acquisition Adjustment |
| Elimination |
| ProForma Consolidated Balance Sheet |
| ||||||||||||
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ASSETS |
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Current Assets |
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Cash |
| $ | 1,284,343 |
|
| $ | 12,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ | 1,296,480 |
| |||
Accounts receivable, net |
|
| 1,888,453 |
|
|
| 357,647 |
|
|
|
|
|
|
|
|
|
|
| (375,634 | ) | (c) |
|
| 1,870,466 |
| ||
Inventory |
|
| 2,174,784 |
|
|
| 135,239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2,310,023 |
| ||
Prepaid expenses and other current assets |
|
| 57,940 |
|
|
| 58,899 |
|
|
| |
| (a) |
|
|
|
|
|
|
|
|
|
|
| 116,839 |
| |
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|
|
|
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|
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| |
Total Current Assets |
|
| 5,405,520 |
|
|
| 563,922 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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| 5,593,808 |
| |
|
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|
|
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| |
Furniture and Equipment, net |
|
| 53,017 |
|
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| 63,656 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 116,673 |
| |
Intangible Assets, net |
|
| 630,316 |
|
|
| |
|
|
| 1,701,297 |
| (a) |
|
|
|
|
|
|
|
|
|
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| 2,331,613 |
| |
Other Assets |
|
| 15,138 |
|
|
| 180,061 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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| 195,199 |
| |
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|
|
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|
|
|
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|
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| |
TOTAL ASSETS |
| $ | 6,103,991 |
|
| $ | 807,639 |
|
|
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|
|
|
|
|
|
|
|
|
|
|
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| $ | 8,237,293 |
| |
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| |
LIABILITIES AND EQUITY |
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| |
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Current Liabilities |
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|
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|
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|
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|
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|
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| |
Accounts payable and accrued expenses |
| $ | 1,021,313 |
|
| $ | 460,063 |
|
|
|
|
|
|
|
|
|
|
|
| (375,634 | ) | (c) |
| $ | 1,105,742 |
| |
Client facility |
|
| |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
Other current liabilities |
|
| 77,432 |
|
|
| 48,873 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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| 126,305 |
| |
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| |
TOTAL LIABILITIES |
|
| 1,098,745 |
|
|
| 508,936 |
|
|
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|
|
|
|
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| 1,232,047 |
| |
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COMMITMENTS AND CONTINGENCIES |
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Equity |
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| |
Preferred stock, $0.001 par value, 30 million shares authorized: |
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10,000,000 shares issued and outstanding at December 31, 2011 |
|
| 10,000 |
|
|
| |
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|
|
|
|
|
|
|
|
|
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|
|
| 10,000 |
| |
Common stock, $0.001 par value, 300 million shares authorized: |
|
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|
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| |
10,502,961 shares issued and outstanding at December 31, 2011 |
|
| 10,503 |
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| 10,503 |
|
Additional paid-in-capital |
|
| 6,606,668 |
|
|
| 118,300 |
|
|
| 1,881,700 |
| (a) |
|
| |
|
|
|
|
|
|
|
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| 8,606,668 |
|
Legal reserve |
|
|
|
|
|
| |
|
|
| |
| (a) |
|
|
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|
|
|
|
|
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| |
|
Stock subscription |
|
| (100,000 | ) |
|
| |
|
|
| |
| (a) |
|
|
|
|
|
|
|
|
|
|
|
| (100,000 | ) |
Retained earnings (accumulated deficit) |
|
| (1,506,893 | ) |
|
| 180,403 |
|
|
| (180,403 | ) | (a) |
|
| (2,179 | ) | (b) |
|
|
|
|
|
|
| (1,509,072 | ) |
|
|
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|
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|
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Total Shareholders' Equity |
|
| 5,020,278 |
|
|
| 298,703 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 7,018,099 |
|
Non-Controlling Interest |
|
| (15,032 | ) |
|
| |
|
|
|
|
|
|
|
| 2,179 |
| (b) |
|
|
|
|
|
|
| (12,853 | ) |
|
|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total Equity |
|
| 5,005,246 |
|
|
| 298,703 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 7,005,246 |
|
|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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TOTAL LIABILITIES AND EQUITY |
| $ | 6,103,991 |
|
| $ | 807,639 |
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| $ | 8,237,293 |
|
(a)
To reclass initial purchase price of $2,000,000, record intangible asset associated with customer list and reverse equity for subsidiary purchased
(b)
To reflect 1% noncontrolling interest
(c)
To record intercompany eliminations
DS Healthcare Group, Inc.
Pro-Forma Consolidated Balance Sheet
September 30, 2012
|
| DS Healthcare Group, Inc. (Consolidated) |
|
| DS Laboratories, S.A. DE C.V. |
|
| Acquisition Adjustment |
| Acquisition Adjustment |
| Elimination |
| ProForma Consolidated Balance Sheet |
| ||||||||||
|
|
|
|
|
|
|
|
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| |||||
ASSETS |
|
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| |||||
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| |||||
Current Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Cash |
| $ | 945,065 |
|
| $ | 70,762 |
|
|
|
|
|
|
|
|
|
|
|
|
| $ | 1,015,827 |
| ||
Accounts receivable, net |
|
| 2,575,231 |
|
|
| 392,323 |
|
|
|
|
|
|
|
|
|
| (255,676 | ) | (c) |
|
| 2,711,878 |
| |
Inventory |
|
| 2,920,721 |
|
|
| 249,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 3,170,016 |
| |
Prepaid expenses and other current assets |
|
| 1,766,397 |
|
|
| 57,191 |
|
|
| (1,500,000 | ) | (a) |
|
|
|
|
|
|
|
|
|
| 323,588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Current Assets |
|
| 8,207,414 |
|
|
| 769,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 7,221,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Furniture and Equipment, net |
|
| 111,727 |
|
|
| 110,112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 221,839 |
|
Intangible Assets, net |
|
| 653,741 |
|
|
| |
|
|
| 1,406,134 |
| (a) |
|
|
|
|
|
|
|
|
|
| 2,059,875 |
|
Other Assets |
|
| 67,431 |
|
|
| 146,359 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 213,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
| $ | 9,040,313 |
|
| $ | 1,026,042 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ | 9,716,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
LIABILITIES AND EQUITY |
|
|
|
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|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
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|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
| $ | 1,432,191 |
|
| $ | 374,969 |
|
|
|
|
|
|
|
|
|
|
| (255,676 | ) | (c) |
| $ | 1,551,484 |
|
Client facility |
|
| 602,298 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 602,298 |
|
Other current liabilities |
|
| 126,708 |
|
|
| 57,207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 183,915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
| 2,161,197 |
|
|
| 432,176 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2,337,697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
|
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|
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|
|
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|
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|
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|
Equity |
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
|
|
|
|
|
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|
|
|
Preferred stock, $0.001 par value, 30 million shares authorized: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,500,000 shares issued and outstanding at September 30, 2012 |
|
| 5,500 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 5,500 |
|
Common stock, $0.001 par value, 300 million shares authorized: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,077,944 shares issued and outstanding at September 30, 2012 |
|
| 12,078 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 12,078 |
|
Additional paid-in-capital |
|
| 9,801,572 |
|
|
| 128,210 |
|
|
| (128,210 | ) | (a) |
|
|
|
|
|
|
|
|
|
| 9,801,572 |
|
Legal reserve |
|
|
|
|
|
| 12,130 |
|
|
| (12,130 | ) | (a) |
|
|
|
|
|
|
|
|
|
| |
|
Stock subscription |
|
| (600,000 | ) |
|
| |
|
|
| 500,000 |
| (a) |
|
|
|
|
|
|
|
|
|
| (100,000 | ) |
Retained earnings (accumulated deficit) |
|
| (2,340,034 | ) |
|
| 453,526 |
|
|
| (453,526 | ) | (a) |
| (2,909) | (b) |
|
|
|
|
|
|
| (2,342,943 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Shareholders' Equity |
|
| 6,879,116 |
|
|
| 593,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 7,376,207 |
|
Non-Controlling Interest |
|
| |
|
|
| |
|
|
|
|
|
|
| 2,909 | (b) |
|
|
|
|
|
|
| 2,909 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Equity |
|
| 6,879,116 |
|
|
| 593,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 7,379,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
TOTAL LIABILITIES AND EQUITY |
| $ | 9,040,313 |
|
| $ | 1,026,042 |
|
|
| |
|
|
| |
|
|
| |
|
|
| $ | 9,716,813 |
|
(a)
To reclass initial purchase price of $2,000,000, record intangible asset associated with customer list and reverse equity for subsidiary purchased
(b)
To reflect 1% noncontrolling interest
(c)
To record intercompany eliminations
DS Healthcare Group, Inc.
Pro-Forma Consolidated Statement of Operations
December 31, 2011
|
| DS Healthcare Group, Inc. (Consolidated) |
|
| DS Laboratories, S.A. DE C.V. |
|
| Eliminations |
| ProForma Consolidated Statement of Operations |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net Revenues |
|
| 9,672,861 |
|
|
| 1,145,219 |
|
|
| (475,634 | ) | (a) |
|
| 10,342,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods Sold |
|
| 4,751,961 |
|
|
| 547,067 |
|
|
| (475,634 | ) | (a) |
|
| 4,823,394 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
| 4,920,900 |
|
|
| 598,152 |
|
|
|
|
|
|
|
| 5,519,052 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Costs and Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing |
|
| 2,856,482 |
|
|
| |
|
|
|
|
|
|
|
| 2,856,482 |
|
General and administrative |
|
| 3,057,988 |
|
|
| 350,793 |
|
|
|
|
|
|
|
| 3,408,781 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs and expenses |
|
| 5,914,470 |
|
|
| 350,793 |
|
|
|
|
|
|
|
| 6,265,263 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
|
| (993,570 | ) |
|
| 247,359 |
|
|
|
|
|
|
|
| (746,211 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense) |
|
| 12,678 |
|
|
| (16,771 | ) |
|
|
|
|
|
|
| (4,093 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) before income tax |
|
| (980,892 | ) |
|
| 230,588 |
|
|
|
|
|
|
|
| (750,304 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income tax |
|
| |
|
|
| 12,650 |
|
|
|
|
|
|
|
| 12,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
| (980,892 | ) |
|
| 217,938 |
|
|
|
|
|
|
|
| (762,954 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Attributable to Non-Controlling Interest |
| $ | (2,292 | ) |
| $ | 2,179 |
|
|
|
|
|
|
| $ | (113 | ) |
Net Income (Loss) Attributable to Shareholders of DS Healthcare Group, Inc. |
| $ | (978,600 | ) |
| $ | 215,759 |
|
|
|
|
|
|
| $ | (762,841 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted Earnings per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares |
|
| 10,061,120 |
|
|
|
|
|
|
|
|
|
|
|
| 10,061,120 |
|
Earnings per share |
| $ | (0.0973 | ) |
|
|
|
|
|
|
|
|
|
| $ | (0.0758 | ) |
(a)
To eliminate intercompany sales and purchases
DS Healthcare Group, Inc.
Pro-Forma Consolidated Statement of Operations
September 30, 2012
|
| DS Healthcare Group, Inc. (Consolidated) |
|
| DS Laboratories, S.A. DE C.V. |
|
| Eliminations |
| ProForma Consolidated Statement of Operations |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net Revenues |
|
| 8,672,634 |
|
|
| 1,334,820 |
|
|
| (343,730 | ) | (a) |
|
| 9,663,724 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods Sold |
|
| 4,380,170 |
|
|
| 416,398 |
|
|
| (343,730 | ) | (a) |
|
| 4,452,838 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
| 4,292,464 |
|
|
| 918,422 |
|
|
|
|
|
|
|
| 5,210,886 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Costs and Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing |
|
| 2,536,197 |
|
|
| |
|
|
|
|
|
|
|
| 2,536,197 |
|
General and administrative |
|
| 2,609,990 |
|
|
| 639,569 |
|
|
|
|
|
|
|
| 3,249,559 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs and expenses |
|
| 5,146,187 |
|
|
| 639,569 |
|
|
|
|
|
|
|
| 5,785,756 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
|
| (853,723 | ) |
|
| 278,853 |
|
|
|
|
|
|
|
| (574,870 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense) |
|
| 4,937 |
|
|
| 12,036 |
|
|
|
|
|
|
|
| 16,973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) before income tax |
|
| (848,786 | ) |
|
| 290,889 |
|
|
|
|
|
|
|
| (557,897 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income tax |
|
| |
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
| (848,786 | ) |
|
| 290,889 |
|
|
|
|
|
|
|
| (557,897 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Attributable to Non-Controlling Interest |
| $ | |
|
| $ | 2,909 |
|
|
|
|
|
|
| $ | 2,909 |
|
Net Income (Loss) Attributable to Shareholders of DS Healthcare Group, Inc. |
| $ | (848,786 | ) |
| $ | 287,980 |
|
|
|
|
|
|
| $ | (560,806 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted Earnings per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares |
|
| 10,778,475 |
|
|
|
|
|
|
|
|
|
|
|
| 10,778,475 |
|
Earnings per share |
| $ | (0.0787 | ) |
|
|
|
|
|
|
|
|
|
| $ | (0.0520 | ) |
(a)
To eliminate intercompany sales and purchases