Attached files
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EX-99.1 - EXHIBIT 99.1 - GBT Technologies Inc. | s108321_ex99-1.htm |
8-K/A - 8-K/A - GBT Technologies Inc. | s108321_8ka.htm |
Exhibit 99.2
Gopher Protocol, Inc.,
and UGopherServices Corp., Inc.
Pro Forma Consolidated Financial Statements
(unaudited)
Contents
Page | |
Pro Forma Consolidated Financial Statements: | |
Pro Forma Consolidated Balance Sheet as of June 30, 2017 (unaudited) | 2 |
Pro Forma Consolidated Statements of Operations for the six months ended June 30, 2017 (unaudited) | 3 |
Pro Forma Consolidated Statements of Operations for the year ended December 31, 2016 (unaudited) | 4 |
Notes to Pro Forma Consolidated Financial Statements (unaudited) | 5 |
Gopher Protocol, Inc.,
and UGopherServices Corp., Inc.
Pro Forma Consolidated Balance Sheet
June 30, 2017
(unaudited)
ASSETS | Gopher Protocol | UGopherServices | Pro forma Adjustments | Pro forma Consolidated | ||||||||||||
(historical) | (historical) | |||||||||||||||
Current Assets: | ||||||||||||||||
Cash | $ | 50,046 | $ | $ | $ | 50,046 | ||||||||||
Accounts receivable | — | 924,844 | 924,844 | |||||||||||||
Inventory | — | 408,825 | 408,825 | |||||||||||||
Prepaid expenses | 1,750 | 9,328 | 11,078 | |||||||||||||
Total current assets | 51,796 | 1,342,997 | — | 1,394,793 | ||||||||||||
Property and equipment, net | — | 204,471 | 204,471 | |||||||||||||
Other assets | 103,005 | 103,005 | ||||||||||||||
Goodwill | — | 7,305,521 | a | 7,305,521 | ||||||||||||
Total assets | $ | 154,801 | $ | 1,547,468 | $ | 7,305,521 | $ | 9,007,790 | ||||||||
LIABILITIES AND STOCKHOLDERS’DEFICIT | ||||||||||||||||
Current Liabilities: | ||||||||||||||||
Accounts payable and accrued expenses | $ | 398,798 | $ | 692,170 | $ | 400,000 | a | $ | 1,490,968 | |||||||
Derivative liability | 1,981,296 | 1,981,296 | ||||||||||||||
Total current liabilities | 2,380,094 | 692,170 | 400,000 | 3,472,264 | ||||||||||||
Convertible note payable, net of debt discount | 101,589 | 101,589 | ||||||||||||||
Note payable | — | 2,600,000 | a | 2,600,000 | ||||||||||||
Total liabilities | 2,481,683 | 692,170 | 3,000,000 | 6,173,853 | ||||||||||||
Stockholders’ Deficit: | ||||||||||||||||
Series B Preferred stock | — | — | ||||||||||||||
Series C Preferred stock | — | — | ||||||||||||||
Series D Preferred stock | 1 | 1 | ||||||||||||||
Common stock | 2,447 | 50 | a | 2,497 | ||||||||||||
Treasury stock | (643,059 | ) | (643,059 | ) | ||||||||||||
Additional paid in captial | 3,983,668 | 5,160,769 | a | 9,144,437 | ||||||||||||
Accumulated deficit | (5,669,939 | ) | 855,298 | (855,298 | )a | (5,669,939 | ) | |||||||||
Total stockholders’ deficit | (2,326,882 | ) | 855,298 | 4,305,521 | 2,833,937 | |||||||||||
Total liabilities and stockholders’ deficit | $ | 154,801 | $ | 1,547,468 | $ | 7,305,521 | $ | 9,007,790 |
See accompanying notes to pro forma consolidated financial statements.
2
Gopher Protocol, Inc.,
and UGopherServices Corp., Inc.
Pro Forma Consolidated Statement of Operations
For the Six Months Ended June 30, 2017
(unaudited)
Gopher Protocol | UGopherServices | Pro forma Adjustments | Pro forma Consolidated | |||||||||||||
(historical) | (historical) | |||||||||||||||
Sales | $ | 90,000 | $ | 28,018,616 | $ | $ | 28,108,616 | |||||||||
Cost of goods sold | — | 26,700,019 | 26,700,019 | |||||||||||||
Gross profit | 90,000 | 1,318,597 | — | 1,408,597 | ||||||||||||
Operating expenses: | ||||||||||||||||
General and administrative expenses | 473,658 | 1,449,783 | 1,923,441 | |||||||||||||
Marketing expenses | 117,914 | 117,914 | ||||||||||||||
Total operating expenses | 591,572 | 1,449,783 | — | 2,041,355 | ||||||||||||
Loss from operations | (501,572 | ) | (131,186 | ) | — | (632,758 | ) | |||||||||
Other income (expense): | ||||||||||||||||
Amortization of debt discount | (50,213 | ) | (50,213 | ) | ||||||||||||
Change in fair value of derivative liability | 496,037 | 496,037 | ||||||||||||||
Interest expense and financing costs | (1,519,819 | ) | (16,699 | ) | (45,500 | )b | (1,582,018 | ) | ||||||||
Total other income (expense) | (1,073,995 | ) | (16,699 | ) | (45,500 | ) | (1,136,194 | ) | ||||||||
Loss before income taxes | (1,575,567 | ) | (147,885 | ) | (45,500 | ) | (1,768,952 | ) | ||||||||
Income tax expense | — | — | ||||||||||||||
Net loss | $ | (1,575,567 | ) | $ | (147,885 | ) | $ | (45,500 | ) | $ | (1,768,952 | ) | ||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic and diluted | 37,816,078 | 42,816,078 | ||||||||||||||
Net loss per share: | ||||||||||||||||
Basic and diluted | $ | (0.04 | ) | $ | $ | (0.04 | ) |
See accompanying notes to pro forma consolidated financial statements.
3
Gopher Protocol, Inc.,
and UGopherServices Corp., Inc.
Pro Forma Consolidated Statement of Operations
For the Year Ended December 31, 2016
Gopher Protocol | UGopherServices | Pro forma Adjustments | Pro forma Consolidated | |||||||||||||
(historical) | (historical) | |||||||||||||||
Sales | $ | 165,000 | $ | 66,610,847 | $ | $ | 66,775,847 | |||||||||
Cost of goods sold | — | 63,497,703 | 63,497,703 | |||||||||||||
Gross profit | 165,000 | 3,113,144 | — | 3,278,144 | ||||||||||||
Operating expenses: | ||||||||||||||||
General and administrative expenses | 1,401,338 | 3,489,191 | 4,890,529 | |||||||||||||
Marketing expenses | 126,838 | 126,838 | ||||||||||||||
Total operating expenses | 1,528,176 | 3,489,191 | — | 5,017,367 | ||||||||||||
Loss from operations | (1,363,176 | ) | (376,047 | ) | — | (1,739,223 | ) | |||||||||
Other income (expense): | ||||||||||||||||
Amortization of debt discount | (39,726 | ) | (39,726 | ) | ||||||||||||
Change in fair value of derivative liability | (177,062 | ) | (177,062 | ) | ||||||||||||
Interest expense and financing costs | (6,262 | ) | (29,335 | ) | (91,000 | )b | (126,597 | ) | ||||||||
Total other income (expense) | (223,050 | ) | (29,335 | ) | (91,000 | ) | (343,385 | ) | ||||||||
Loss before income taxes | (1,586,226 | ) | (405,382 | ) | (91,000 | ) | (2,082,608 | ) | ||||||||
Income tax expense | — | — | ||||||||||||||
Net loss | $ | (1,586,226 | ) | $ | (405,382 | ) | $ | (91,000 | ) | $ | (2,082,608 | ) | ||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic and diluted | 19,902,077 | 24,902,077 | ||||||||||||||
Net loss per share: | ||||||||||||||||
Basic and diluted | $ | (0.08 | ) | $ | $ | (0.08 | ) |
See accompanying notes to pro forma consolidated financial statements.
4
Gopher Protocol, Inc.,
and UGopherServices Corp., Inc.
Notes to Pro Forma Consolidated Financial Statements
NOTE 1 - BASIS OF PRESENTATION
On September 1, 2017, the Gopher Protocol, Inc. (“Gopher”) entered into and closed an Asset Purchase Agreement (the “Purchase Agreement”) with RWJ Advanced Marketing, LLC (“RWJ”), a Georgia corporation, pursuant to which the Gopher purchased certain assets from RWJ, including inventory, terminals, licenses and permits and intangible assets, in consideration of $400,000, an aggregate 5,000,000 shares of common stock of the Company, secured promissory note in the amount of $2,600,000, and warrants to purchase 9,000,000 shares of common stock and the assumption of certain liabilities incurred by RWJ after the effective date as set forth in the RWJ Agreement. Gopher incorporated a wholly-owned subsidiary, UGopherServices Corp. (“UGopherServices”), to operate the acquired assets.
The accompanying pro forma consolidated balance sheet presents the accounts of Gopher and UGopherServices as if the Merger occurred June 30, 2017. The accompanying pro forma consolidated statement of operations presents the accounts of Gopher and UGopherServices for the six months ended June 30, 2017, and the years ended December 31, 2016 as if the Merger occurred on January 1, 2016.
The following adjustments would be required if the acquisition occurred as indicated above:
a) | To record the purchase price allocation and to eliminate the retained earnings of UGopherServices. |
b) | To record interest expense on the $2.6 million acquisition note payable. |
The unaudited consolidated pro forma financial information is presented for informational purposes only and is subject to a number of uncertainties and assumptions and do not purport to represent what the company’s actual performance or financial position would have been had the transaction occurred on the dates indicated and does not purport to indicate the financial position or results of operations as of any future date or for any future period.
5