Fritzy Tech Inc. - FORM 8-K - EX-99.3 - UNAUDITED PRO FORMA - May 11, 2018

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EX-2.1 - CAPITAL CONTRIBUTION AGREEMENT - Fritzy Tech Inc.fpts_ex21.htm
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EXHIBIT 99.3

 

FIRST PRIORITY TAX SOLUTIONS INC.

Pro Forma

Balance Sheet - Unaudited

December 31, 2017

 

 

 

First Priority Tax Solutions Inc.

 

 

Zshoppers, Inc.

 

 

 

 

 

 

 

December 31,

2017

 

 

December 31,

2017

 

 

Proforma

Adjustments*

 

 

Proforma

As Adjusted

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 $ -

 

 

 $ 1,284

 

 

 $ (1,284 )

 

 $ -

 

Accounts receivable

 

 

 -

 

 

 

 7,359

 

 

 

 (7,359 )

 

 

 -

 

Total Current Assets

 

 

 -

 

 

 

 8,643

 

 

 

 (8,643 )

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equipment, net

 

 

 -

 

 

 

 178

 

 

 

 (178 )

 

 

 -

 

TOTAL ASSETS

 

 

 -

 

 

 

 8,821

 

 

 

 (8,821 )

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

 $ -

 

 

 $ 826

 

 

 $ (826 )

 

 $ -

 

Total Current Liabilities

 

 

 -

 

 

 

 826

 

 

 

 (826 )

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

 -

 

 

 

 826

 

 

 

 (826 )

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock par value $0.000001: 8,000,000 shares authorized, none issued and outstanding

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Common stock par value $0.000001: 92,000,000 shares authorized, 5,760,000 shares issued and outstanding

 

 

 6

 

 

 

 -

 

 

 

 0

 

 

 

 6

 

Common stock, par value $0.001; 10,000,000 shares authorized, 5,000,000 shares issued and outstanding respectively;

 

 

 -

 

 

 

 5,000

 

 

 

 (5,000 )

 

 

 -

 

Additional paid in capital (deficiency)

 

 

 76,027

 

 

 

 50,157

 

 

 

 (32,515 )

 

 

 93,669

 

Retained earnings (deficit)

 

 

 (205,463 )

 

 

 (47,162 )

 

 

 47,162

 

 

 

 (205,463 )

Retained earnings from discontinued operations

 

 

 129,430

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Total stockholders’ equity (deficit)

 

 

 -

 

 

 

 7,995

 

 

 

 9,647

 

 

 

 (111,788 )

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

 

 $ -

 

 

 $ 8,821

 

 

 $ -

 

 

 $ (111,788 )

 

*The adjustments included in the pro forma balance sheet and statement of operations are as follows:

- To eliminate all assets and liabilities upon contribution of Zshoppers, Inc. revenue generating assets to First Priority Tax Solutions Inc. by majority shareholder

 

- To eliminate the owner withdraws, and retained earnings of Zshoppers, Inc.

- To record the issuance of 20,000 Common stock of First Priority Tax Solutions Inc. to its majority shareholder for contribution of revenue generating assets previously acquired by Zshoppers, Inc.

 

 
 
 
 

 

FIRST PRIORITY TAX SOLUTIONS INC.

Pro Forma

Statement of Operations – Unaudited

Six months ended December 31, 2017

 

 

 

First Priority Tax Solutions Inc.

 

 

Zshoppers, Inc.

 

 

 

 

 

 

 

Six Months

Ended

 

 

Six Months

Ended

 

 

 

 

 

 

 

 

 

December 31,

2017

 

 

December 31,

2017

 

 

Proforma

Adjustments

 

 

Proforma

As Adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 $ -

 

 

 $ 43,394

 

 

 $ -

 

 

 $ 43,394

 

Cost of revenue

 

 

 -

 

 

 

 25,716

 

 

 

 

 

 

 

 25,716

 

Gross Profit

 

 

 -

 

 

 

 17,678

 

 

 

 -

 

 

 

 17,678

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

 4,494

 

 

 

 7,203

 

 

 

 

 

 

 

 11,697

 

Depreciation

 

 

 -

 

 

 

 140

 

 

 

 

 

 

 

 140

 

Management fees

 

 

 -

 

 

 

 3,160

 

 

 

 

 

 

 

 3,160

 

Professional fees

 

 

 21,471

 

 

 

 6,563

 

 

 

 

 

 

 

 28,034

 

Total Operating Expenses

 

 

 25,965

 

 

 

 17,066

 

 

 

 -

 

 

 

 39,731

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Loss

 

 

 (25,965 )

 

 

 612

 

 

 

 -

 

 

 

 (22,053 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME/(EXPENSE)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 (857 )

 

 

 -

 

 

 

 

 

 

 

 (857 )

Gain on loan settlement

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 

 (857 )

 

 

 -

 

 

 

 -

 

 

 

 (857 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS FROM CONTINUED OPERATIONS before Income Tax Provision

 

 

 (26,822 )

 

 

 612

 

 

 

 -

 

 

 

 (22,910 )

Income Tax Provision

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 -

 

NET LOSS FROM CONTINUED OPERATIONS

 

 

 (26,822 )

 

 

 612

 

 

 

 -

 

 

 

 (22,910 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME FROM DISCONTINUED OPERATIONS

 

 

 38,438

 

 

 

 -

 

 

 

 

 

 

 

 38,438

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 $ 11,616

 

 

 $ 612

 

 

 $ -

 

 

 $ 15,528

 

 

See notes to the unaudited pro forma combined financial statements

 

 
 
 
 

 

FIRST PRIORITY TAX SOLUTIONS INC.

Pro Forma

Statement of Operations – Unaudited

Year ended June 30, 2017

 

 

 

First Priority Tax Solutions Inc.

 

 

Zshoppers, Inc.

 

 

 

 

 

 

 

Year Ended

 

 

Year Ended

 

 

 

 

 

 

 

 

 

June 30,

2017

 

 

June 30,

2017

 

 

Proforma

Adjustments

 

 

Proforma

As Adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 $ 78,040

 

 

 $ 139,824

 

 

 $ -

 

 

 $ 217,864

 

Cost of revenue

 

 

 13,241

 

 

 

 118,899

 

 

 

 

 

 

 

 132,140

 

Gross Profit

 

 

 64,799

 

 

 

 20,925

 

 

 

 -

 

 

 

 85,724

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

 1,608

 

 

 

 25,557

 

 

 

 

 

 

 

 27,165

 

Depreciation

 

 

 -

 

 

 

 17,959

 

 

 

 

 

 

 

 17,959

 

Management fees

 

 

 -

 

 

 

 7,477

 

 

 

 

 

 

 

 7,477

 

Professional fees

 

 

 46,162

 

 

 

 -

 

 

 

 

 

 

 

 46,162

 

Total Operating Expenses

 

 

 47,770

 

 

 

 50,993

 

 

 

 -

 

 

 

 73,327

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Loss

 

 

 17,029

 

 

 

 (30,068 )

 

 

 -

 

 

 

 12,397

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME/(EXPENSE)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 (3,400 )

 

 

 -

 

 

 

 

 

 

 

 -

 

Other income

 

 

 3,000

 

 

 

 -

 

 

 

 

 

 

 

 -

 

Gain on loan settlement

 

 

 -

 

 

 

 52,380

 

 

 

 -

 

 

 

 -

 

 

 

 

 (400 )

 

 

 52,380

 

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS FROM CONTINUED OPERATIONS before Income Tax Provision

 

 

 16,629

 

 

 

 22,312

 

 

 

 -

 

 

 

 12,397

 

Income Tax Provision

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 -

 

Net Loss

 

 $ 16,629

 

 

 $ 22,312

 

 

 $ -

 

 

 $ 12,397

 

 

See notes to the unaudited pro forma combined financial statements

 

 
 
 
 

 

FIRST PRIORITY TAX SOLUTIONS INC.

NOTES TO THE UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS

 

First Priority Tax Solutions Inc. (the “Company”), a company incorporated under the laws of the State of Delaware, USA and Zshoppers, Inc. (“Zshoppers”) entered into an agreement in which the Company acquired all of the revenue generating assets from the majority shareholder of the Company, who had previously acquired the assets from Zshoppers. In exchange, the Company issued 20,000 to the majority shareholder for the contribution.

 

1. BASIS OF PRO FORMA PRESENTATION

 

The unaudited pro forma condensed combined balance sheets have been derived from the historical December 31, 2017 balance sheet of First Priority Tax Solutions Inc., and balance sheet of Zshoppers, Inc. as of December 31, 2017, after giving effect to the acquisition of revenue generating assets from the majority shareholder. The pro forma balance sheet and statement of operations present this transaction as if they had been consummated as of December 31, 2017, as required under Article 11 of Regulation S-X.

 

Historical financial information has been adjusted in the pro forma balance sheet to pro forma events that are: (1) directly attributable to the Acquisition; (2) factually supportable; and (3) expected to have a continuing impact on the Company’s results of operations. The pro forma adjustments presented in the pro forma condensed combined balance sheet and statement of operations are described in Note 3— Pro Forma Adjustments.

 

The unaudited pro forma combined financial information is for illustrative purposes only. These companies may have performed differently had they actually been combined for the periods presented. You should not rely on the pro forma condensed combined financial information as being indicative of the historical results that would have been achieved had the companies always been combined or the future results that the combined companies will experience after the merger. Unaudited pro forma financial information and the notes thereof should be read in conjunction with the accompanying historical financial statements of Zshoppers included elsewhere in this report.

 

2. ACCOUNTING PERIODS PRESENTED

 

Certain pro forma adjustments were made to conform Zshoppers Inc.’s accounting policies to the Company’s accounting policies.

 

The unaudited pro forma condensed combined balance sheet as of December 31, 2017 is presented as if the Zshoppers acquisition had occurred on December 31, 2017 and combines the historical balance sheet of First Priority Tax Solutions Inc. at December 31, 2017 and the historical balance sheet of Zshoppers Inc. at December 31, 2017.

 

The unaudited pro forma condensed combined statement of operations and comprehensive loss of the Company and Zshoppers Inc. for the six months ended December 31, 2017, and the year ended June 30, 2017 are presented as if the acquisition had taken place on December 31, 2017.

 

The pro forma statement of operations for the period ended December 31, 2017 combines the historical results of the Company for the six months ended December 31, 2017 and the historical results of Zshoppers Inc. for six months ended December 31, 2017. The pro forma statement of operations for the year ended June 30, 2017 combines the historical results of the Company for the year ended June 30, 2017 and the historical results of Zshoppers Inc. for the year ended June 30, 2017.

 

3. PRO FORMA ADJUSTMENTS

 

The adjustments included in the pro forma balance sheet and statement of operations are as follows:

 

- To eliminate all assets and liabilities upon contribution of Zshoppers, Inc. revenue generating assets to First Priority Tax Solutions Inc. by majority shareholder

 

- To eliminate the owner withdraws, and retained earnings of Zshoppers, Inc.

- To record the issuance of 20,000 Common stock of First Priority Tax Solutions Inc. to its majority shareholder for contribution of revenue generating assets previously acquired by Zshoppers, Inc.

 

 

 

 

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