Attached files
| file | filename |
|---|---|
| 8-K/A - TRAQIQ, INC. | form8-ka.htm |
Exhibit 99.2
TRAQIQ, INC.
PRO FORMA UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
The following unaudited pro forma consolidated financial statements give effect to the acquisition of the outstanding membership interests of Rohuma, LLC, (“Rohuma”) on January 22, 2021 by TraQiQ, Inc. (“TraQ” and the “Company”) and the acquisition of the outstanding membership interests of Mimo Technologies Private Ltd. (“Mimo”) on February 17, 2021 by TraQ, and are based on estimates and assumptions set forth herein and in the notes to such pro forma statements.
In January 2021, TraQ, entered into a Share Exchange Agreement (the “Exchange Agreement”) with Rohuma, whereby as consideration for the transaction, Traq is to issue 4,292,220 shares of its common stock in exchange for the membership interests of Rohuma.
On February 17, 2021, the Company entered into a Share Exchange Agreement with Mimo Technologies Private Ltd., and Indian corporation (“Mimo”) and its shareholders, whereby the Mimo shareholders agreed to exchange all of their respective shares in Mimo in exchange for warrants to purchase 1,367,539 shares of the Company’s common stock.
The transactions are being accounted for as an acquisition of Rohuma and Mimo under ASC 805.
As a result of the transaction effected by the Exchange Agreements, at closing Rohuma and Mimo became subsidiaries of the Company.
The following unaudited pro forma consolidated statement of operations for the year ended December 31, 2020 of the Company, Rohuma and Mimo gives effect to the above as if the transactions had occurred at the beginning of the period. The unaudited pro forma consolidated balance sheet at December 31, 2020 assumes the effects of the above as if this transaction had occurred as of January 1, 2020.
TRAQIQ, INC.
PRO FORMA UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
The unaudited pro forma consolidated financial statements are based upon, and should be read in conjunctions with the Company’s audited financial statements as of and for the year ended December 31, 2020.
The unaudited pro forma consolidated financial statements and notes thereto contained forward-looking statements that involve risks and uncertainties. Therefore, our actual results may vary materially from those discussed herein. The unaudited pro forma consolidated financial statements do not purport to be indicative of the results that would have been reported had such events actually occurred on the dates specified, nor is it indicative our future results.
TRAQIQ, INC.
NOTES TO UNAUDITED PRO FORMA
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
NOTE A – ACCOUNTING TREATMENT APPLIED AS A RESULT OF THIS TRANSACTION
The acquisition of Rohuma and Mimo are being accounted for as a business combination, whereby TraQ is the acquierer.
NOTE B – ADJUSTMENT
| (a) | To record the acquisition of Rohuma. | |
| (b) | To record the issuance of shares of common stock in January 2021 for cash and conversion of certain note payable and accrued interest. | |
| (c) | To record the acquisition of Mimo. | |
| (d) | To adjust for the write-off of certain amounts outstanding between TraQ and Mimo. |
NOTE C – PRO FORMA WEIGHTED AVERAGES SHARES OUTSTANDING
Pro forma shares outstanding assuming the transaction occurred as of September 30, 2020:
| TraQ Weighted Average Shares Outstanding | 27,297,960 | |||
| Shares issued to acquire Rohuma | 4,292,220 | |||
| Shares issued for cash and conversion of notes payable | 834,338 | |||
| Pro forma shares outstanding | 32,424,518 |
TRAQIQ, INC. AND SUBSIDIARIES
PROFORMA CONSOLIDATED BALANCE SHEET
DECEMBER 31, 2020
| TRAQ | ROHUMA | MIMO | ADJUSTMENTS | CONSOLIDATED | ||||||||||||||||||||||||
| ASSETS | C | |||||||||||||||||||||||||||
| CURRENT ASSETS | ||||||||||||||||||||||||||||
| Cash | $ | 29,658 | $ | 6,027 | $ | 10,381 | $ | 456,000 | B | $ | 1,027,066 | |||||||||||||||||
| 525,000 | D | |||||||||||||||||||||||||||
| Accounts receivable, net of allowance | 521,618 | 4,179 | 344,776 | 870,573 | ||||||||||||||||||||||||
| Note receivable - related party | 227,877 | - | - | F | 227,877 | - | ||||||||||||||||||||||
| Prepaid expenses and other current assets | 322,286 | 8,943 | 34,127 | 365,356 | ||||||||||||||||||||||||
| Total current assets | 1,101,439 | 19,149 | 389,284 | 981,000 | 227,877 | 2,262,995 | ||||||||||||||||||||||
| Fixed assets, net | 36,373 | 4,512 | 157,133 | 198,018 | ||||||||||||||||||||||||
| Intangible assets, net | 444,584 | - | - | 444,584 | ||||||||||||||||||||||||
| Goodwill | 3,520,300 | A | 6,613,276 | |||||||||||||||||||||||||
| 3,092,976 | E | |||||||||||||||||||||||||||
| Restreicted cash | 28,746 | - | 2,738 | 31,484 | ||||||||||||||||||||||||
| Right-of-use asset | 126,118 | - | - | 126,118 | ||||||||||||||||||||||||
| Long-term investments | 40,603 | 1,440 | - | 42,043 | ||||||||||||||||||||||||
| Other assets | 3,196 | - | - | 3,196 | ||||||||||||||||||||||||
| Total non-current assets | 679,620 | 5,952 | 159,871 | 6,613,276 | - | 7,458,719 | ||||||||||||||||||||||
| TOTAL ASSETS | $ | 1,781,059 | $ | 25,101 | $ | 549,155 | $ | 7,594,276 | $ | 227,877 | $ | 9,721,714 | ||||||||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||||||||||||||||||||||
| CURRENT LIABILITIES | ||||||||||||||||||||||||||||
| Current portion of long-term debt | $ | 133,761 | $ | 10,000 | $ | - | $143,761 | |||||||||||||||||||||
| Current portion of long-term debt - related parties | 1,843,399 | 37,776 | 774,780 | 25,000 | B | 2,403,078 | ||||||||||||||||||||||
| 227,877 | F | |||||||||||||||||||||||||||
| Current portion of convertible debt - long-term debt | 241,334 | - | - | 156,687 | B | 609,647 | ||||||||||||||||||||||
| D | 525,000 | |||||||||||||||||||||||||||
| Cash overdraft | 188,721 | 2,980 | - | 191,701 | ||||||||||||||||||||||||
| Accounts payable and accrued expenses | 1,163,505 | 58,181 | 923,398 | 43,000 | B | 2,102,084 | ||||||||||||||||||||||
| Current portion of lease liabilities | 8,779 | - | - | 8,779 | ||||||||||||||||||||||||
| Accrued payroll | 327,084 | - | 109,850 | 436,934 | ||||||||||||||||||||||||
| Accrued taxes and duties payable | 46,577 | 2,688 | - | 49,265 | ||||||||||||||||||||||||
| Total current liabilities | 3,953,160 | 111,625 | 1,808,028 | 452,564 | 525,000 | 5,945,249 | ||||||||||||||||||||||
| NON-CURRENT LIABILITIES | ||||||||||||||||||||||||||||
| Long-term debt - related parties, net of current portion | - | - | 156,538 | 156,538 | ||||||||||||||||||||||||
| Lease liabilities - net of current portion | 125,219 | - | - | 125,219 | ||||||||||||||||||||||||
| Long-term debt, net of current portion | 59,856 | - | - | 59,856 | ||||||||||||||||||||||||
| Total non-current liabilities | 185,075 | - | 156,538 | - | - | 341,613 | ||||||||||||||||||||||
| COMMITMENTS AND CONTINGENCIES | - | - | - | - | - | - | ||||||||||||||||||||||
| Total liabilities | 4,138,235 | 111,625 | 1,964,566 | 452,564 | 525,000 | 6,286,862 | ||||||||||||||||||||||
| STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||||||||||||||||||||||
| Preferred Stock | 5 | - | - | 5 | ||||||||||||||||||||||||
| Common Stock | 2,730 | - | 2,274 | A | 429 | 3,242 | ||||||||||||||||||||||
| B | 83 | |||||||||||||||||||||||||||
| 2,274 | E | |||||||||||||||||||||||||||
| Additional paid-in-capital | 117,261 | 297,612 | 22,312 | B | 680,604 | 5,871,659 | ||||||||||||||||||||||
| 297,612 | A | |||||||||||||||||||||||||||
| A | 3,433,347 | |||||||||||||||||||||||||||
| E | 1,640,447 | |||||||||||||||||||||||||||
| 22,312 | E | |||||||||||||||||||||||||||
| Accumulated other comprehenive income (loss) | 27,721 | - | 37,118 | 64,839 | ||||||||||||||||||||||||
| Accumulated deficit | (2,504,893 | ) | (384,136 | ) | (1,477,115 | ) | A | 384,136 | (2,504,893 | ) | ||||||||||||||||||
| E | 1,477,115 | |||||||||||||||||||||||||||
| Total stockholders’ equity (deficit) | (2,357,176 | ) | (86,524 | ) | (1,415,411 | ) | 322,198 | 7,616,161 | 3,434,852 | |||||||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | $ | 1,781,059 | $ | 25,101 | $ | 549,155 | $ | 774,762 | $ | 8,141,161 | $ | 9,721,714 | ||||||||||||||||
| Adjustment Notes | |
| A | Represents the issuance of 4,292,220 shares for the acquisition of Rohuma on January 22, 2021 (value was $0.80 per share) |
| B | Represents shares of stock issued for cash ($456,000) as well as for conversion of notes payable and accrued interest ($224,687) prior to acquisition of Mimo |
| C | Represents balances of Rohuma as of January 22, 2021, the date of acquisition. There were no material differences in the assets and liabilities from January 1 through January 21. |
| D | Represents proceeds received from new convertible notes in January 2021 |
| E | Represents value of the acquisition of Mimo |
| F | Write-off of note between TRAQ and MIMO |
TRAQIQ, INC. AND SUBSIDIARIES
PROFORMA STATEMENTS OF OPERATIONS
Year Ended December 31, 2020
| TRAQ | ROHUMA | MIMO | ADJUSTMENTS | CONSOLIDATED | ||||||||||||||||||
| REVENUES | ||||||||||||||||||||||
| Revenue from services | $ | 1,009,949 | $ | 255,661 | $ | 142,309 | $1,407,919 | |||||||||||||||
| 1,009,949 | 255,661 | 142,309 | 1,407,919 | |||||||||||||||||||
| COST OF REVENUES | ||||||||||||||||||||||
| Cost of services | 546,569 | 115,436 | 462,110 | 1,124,115 | ||||||||||||||||||
| 546,569 | 115,436 | 462,110 | 1,124,115 | |||||||||||||||||||
| GROSS PROFIT | 463,380 | 140,225 | (319,801 | ) | 283,804 | |||||||||||||||||
| OPERATING EXPENSES: | ||||||||||||||||||||||
| Salaries and salary related costs | 284,258 | 107,191 | - | 391,449 | ||||||||||||||||||
| Professional fees and consulting | 201,430 | 30,449 | 4,449 | 236,328 | ||||||||||||||||||
| General and administrative | 101,845 | 24,718 | 314,466 | 441,029 | ||||||||||||||||||
| Depreciation and amortization | 47,988 | 3,663 | 32,895 | 84,546 | ||||||||||||||||||
| Rent | 182,827 | 5,115 | - | B | 100,000 | 87,942 | ||||||||||||||||
| Total operating expenses | 818,348 | 171,136 | 351,810 | 1,241,294 | ||||||||||||||||||
| Gain (Loss) from operations | (354,968 | ) | (30,911 | ) | (671,611 | ) | (957,490) | |||||||||||||||
| OTHER EXPENSE: | ||||||||||||||||||||||
| Other income (loss) | 76,248 | - | - | 25,000 | B | 51,248 | ||||||||||||||||
| Interest expense, net of interest income | (328,380 | ) | (2,242 | ) | (15,872 | ) | (346,494) | |||||||||||||||
| Other income (expense), net | (252,132 | ) | (2,242 | ) | (15,872 | ) | (295,246) | |||||||||||||||
| Loss from before provision for income taxes | (607,100 | ) | (33,153 | ) | (687,483 | ) | (1,252,736) | |||||||||||||||
| `` | ||||||||||||||||||||||
| PROVISION FOR INCOME TAXES | 809 | - | (68,369 | ) | (67,560) | |||||||||||||||||
| NET LOSS | $ | (607,909 | ) | $ | (33,153 | ) | $ | (619,114 | ) | $ | (1,185,176) | |||||||||||
| NET LOSS PER SHARE | ||||||||||||||||||||||
| Basic | $ | (0.02 | ) | N/A | N/A | $(0.04) | ||||||||||||||||
| Diluted | $ | (0.02 | ) | N/A | N/A | $(0.04) | ||||||||||||||||
| SHARES USED IN CALCULATION OF NET LOSS PER SHARE | ||||||||||||||||||||||
| Basic | 27,297,960 | A | 5,126,558 | 32,424,518 | ||||||||||||||||||
| Diluted | 27,297,960 | A | 5,126,558 | 32,424,518 | ||||||||||||||||||
| Adjustment Notes | |
| A | Represents the issuance of 4,292,220 shares for the acquisition of Rohuma on January 22, 2021 as well as for conversion of debt and cash |
| B | Represents estimated change in value based on changes to agreements |