Attached files
| file | filename |
|---|---|
| EX-99.2 - PRESS RELEASE - Grom Social Enterprises, Inc. | grom_8kex9902.htm |
| 8-K - CURRENT REPORT - Grom Social Enterprises, Inc. | grom_8k.htm |
Exhibit 99.1
GROM SOCIAL ENTERPRISES INC.
Proforma Balance Sheet
June 30, 2018
(unaudited)
| June 30,2018 | Proforma Adjustments for the period July 1, 2018 to September 30, 2018 |
Proforma Adjustment October 12, 2018 |
Proforma Combined (e) |
|||||||||||||
| Consolidated | ||||||||||||||||
| ASSETS | ||||||||||||||||
| Current assets: | ||||||||||||||||
| Cash and cash equivalents | $ | 392,005 | $ | 382,057 | $ | 774,062 | ||||||||||
| Accounts receivable | 556,167 | 556,167 | ||||||||||||||
| Inventory, net | 522,926 | 522,926 | ||||||||||||||
| Prepaid expenses and other current assets | 980,240 | 980,240 | ||||||||||||||
| Total current assets | 2,451,338 | 382,057 | (b)(c) | 2,833,395 | ||||||||||||
| Property and equipment, net | 924,286 | 924,286 | ||||||||||||||
| Goodwill | 8,853,261 | 8,853,261 | ||||||||||||||
| Intangible assets, net | 6,538,629 | 6,538,629 | ||||||||||||||
| Deferred tax assets | 189,513 | 189,513 | ||||||||||||||
| Other assets | 69,106 | 69,106 | ||||||||||||||
| Total assets | $ | 19,026,133 | $ | 382,057 | $ | – | $ | 19,408,190 | ||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||
| Current liabilities: | ||||||||||||||||
| Accounts payable | $ | 567,506 | $ | 567,506 | ||||||||||||
| Accrued liabilities | 1,652,152 | 1,652,152 | ||||||||||||||
| Advanced payments and deferred revenues | 1,465,283 | 1,465,283 | ||||||||||||||
| Related party payables | 2,294,257 | (500,000 | ) | (a) | (500,000 | ) | (d) | 1,294,257 | ||||||||
| Total current liabilities | 5,979,198 | (500,000 | ) | (500,000 | ) | 4,979,198 | ||||||||||
| Convertible debentures, net of loan discounts | 2,529,627 | 258,599 | (c) | 2,788,226 | ||||||||||||
| Senior secured promissory notes, net of loan discounts | 3,720,000 | 3,720,000 | ||||||||||||||
| Contingent purchase consideration | 429,000 | 429,000 | ||||||||||||||
| Other noncurrent liabilities | 223,601 | 223,601 | ||||||||||||||
| Total liabilities | 12,881,426 | (241,401 | ) | (500,000 | ) | 12,140,025 | ||||||||||
| Commitments and contingencies | – | – | ||||||||||||||
| Stockholders' Equity: | ||||||||||||||||
| Preferred stock | – | |||||||||||||||
| Common stock | 127,329 | 2,070 | (a)(b)(c) | 1,603 | (d) | 131,002 | ||||||||||
| Additional paid-in capital | 49,493,776 | 621,388 | (a)(b)(c) | 498,397 | (d) | 50,613,561 | ||||||||||
| Accumulated earnings (deficit) | (43,288,577 | ) | (43,288,577 | ) | ||||||||||||
| Accumulated other comprehensive income | (187,821 | ) | (187,821 | ) | ||||||||||||
| Total stockholders' equity | 6,144,707 | 623,458 | 500,000 | 7,268,165 | ||||||||||||
| Total liabilities and equity | $ | 19,026,133 | $ | 382,057 | $ | – | $ | 19,408,190 | ||||||||
| (a) | On September 25, 2018, Messrs. Marks and Leiner, the Company's executive officers, converted $500,000 of their non-interesting bearing loans due from the Company, into equity of the Company at a price of $0.31 per share, resulting in the issuance of 1,612,903 shares. This transaction increased the Company's equity by $500,000. |
| (b) | On August 12, and August 13th and September 5, 2018, the Company accepted subscriptions for a total of $76,057 from two existing accredited investors for a private placement of the Company's restricted common stock at a price of $0.25 per share, and issued 304,288 shares. These stock issuances increased the Company's equity by $76,057. |
| (c) | During the period for July 1, 2018 through September 30, 2018 the Company issued $306,000 in 10% original discount notes to eleven existing accredited investors. In connection with these note issuances, the Company issued 153,000 shares valued at $47,401. These issuances increased the Company's equity by $47,401. |
| (d) | On October 12, 2018, Messrs. Marks and Leiner, the Company's executive officers, converted $500,000 of their non-interesting bearing loans due from the Company into equity of the Company at a price of $0.31 per share, resulting in the issuance of 1,612,903 shares. This transaction increased the Company's equity by $500,000. |
| (e) | This is the proforma balance sheet, as if, the transactions described above, had occurred on June 30, 2018. |