Attached files

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EX-99.2 - AiXin Life International, Inc.ex99-2.htm
EX-99.1 - AiXin Life International, Inc.ex99-1.htm
EX-23.1 - AiXin Life International, Inc.ex23-1.htm
8-K/A - AiXin Life International, Inc.form8-ka.htm

 

Exhibit 99.3

 

AIXIN LIFE INTERNATIONAL, INC.

UNAUDITED PRO FORMA COMBINED BALANCE SHEET

AS OF MARCH 31, 2021

 

  

AIXIN LIFE

INTERNATIONAL

INC

  

AIXIN

SHANGYAN

HOTEL

  

Pro forma

Adjustments

     

Pro forma

Combined

 
                             
ASSETS                       
                        
Current Assets                       
Cash and cash equivalents  $7,638,444   $7,404   $

(1,406,281

) {b} $ 6,239,567  
Accounts receivable, net   -    24,521            24,521 
Accounts receivable, related party   -    60,015            60,015 
Other receivables and prepaid expense   35,090    131,743            166,833 
Advance to suppliers   157,338    -           157,338 
Prepaid taxes   -    2,156            2,156 
Inventory   147,074    206,777            353,851 
                        
Total Current Assets   7,977,946    432,616    

(1,406,281

)       7,004,281  
                        
Non-Current Assets                       
Plant, property and equipment, net   60,393    312,813            373,206 
Intangible assets, net   -    3,807            3,807 
Security deposits   -    91,578            91,578 
Operating lease right-of-use assets   59,289    1,846,931    

       1,906,220 
                        
Total Non-Current Assets   119,682    2,255,129     -         2,374,811  
                        
Total Assets  $8,097,628   $2,687,745   $

(1,406,281

)     $ 9,379,092  
                        
LIABILITIES AND STOCKHOLDERS’ EQUITY                       
                        
Current Liabilities                       
Accounts payable   38,964     231,695     

(231,695

) {a}     38,964  
Unearned revenue   2,746    285,577    

(285,577

) {a}     2,746  
Taxes payable   209,829    -            209,829 
Accrued expenses and other payables   510,811    272,161    

(272,161

) {a}     510,811  
Loan from third parties   -    455,562    

(455,562

) {a}     -  
Operating lease liabilities   35,019     631,982             667,001  
Advance from related parties    101,929    1,356,649    

(1,356,649

) {a}     101,929  
                        
Total Current Liabilities   899,298    3,233,626    

(2,601,644

)       1,531,280  
                        
Non-Current Liabilities                       
Operating lease liabilities - noncurrent   24,270    1,214,949            1,239,219 
                        
Total Non-Current Liabilities   24,270    1,214,949           1,239,219 
                        
Total Liabilities   923,568    4,448,575   

(2,601,644

)       2,770,499  
                        
Stockholders’ Equity                       
Common stock   500    -            500 
Additional paid in capital   11,208,650    152,207    

1,195,363

{a}{b}     12,556,220  
Statutory reserve   151,988    -            151,988 
Accumulated deficit    (4,743,009)   (1,849,812)           (6,592,821)
Accumulated other comprehensive loss    555,931    (63,225)           492,706 
                        
Total Stockholders’ Equity   7,174,060    (1,760,830)   

1,195,363

        6,608,593  
                        
Total Liabilities and Stockholders’ Equity  $8,097,628   $2,687,745   $

(1,406,281

)     $ 9,379,092  

 

See accompanying notes to pro forma combined financial statements

 

F-1
 

 

AIXIN LIFE INTERNATIONAL, INC.

UNAUDITED PRO FORMA COMBINED STATEMENT OF INCOME AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2021

 

  

AIXIN LIFE

INTERNATIONAL

INC

  

AIXIN

SHANGYAN

HOTEL

  

Pro forma

Adjustments

  

Pro forma

Combined

 
                  
Revenue                    
Products  $203,294   $-                 $203,294 
Advertising   494,864    -         494,864 
Hotel revenue   -    352,247         352,247 
Total revenues, net   698,158    352,247         1,050,405 
                     
Operating costs and expenses                    
Cost of goods sold    

135,659

     

-

             

135,659

 
Hotel operating costs   -    518,505         518,505 
Selling expenses   53,194    71,585         124,779 
General and administrative expenses   194,250    82,200         276,450 
Stock-based compensation   92,885    -         92,885 
                     
Total operating costs and expenses    475,988     672,290          1,148,278  
                     
Income (loss) from operations   222,170    (320,043)        (97,873)
                     
Non-operating income (expenses)                    
Interest income   1,218    8        1,226 
Other income   160    21,782         21,942 
Other expenses   (1,846)   -         (1,846)
                     
Total non-operating income (expenses), net   (468)   21,790         21,322 
                     
Income (loss) before income tax   221,702    (298,253)        (76,551)
                     
Income tax expense   -    -         - 
                     
Net income (loss)  $221,702   $(298,253)       $(76,551)
                     
Other comprehensive items                    
Foreign currency translation (loss)   (32,609)   9,212         (23,397)
                     
Comprehensive income (loss)  $189,093   $(289,041)       $(99,948)
                     
Earnings (loss) per share  $0.00   $-        $(0.00)
                     
Weighted average shares outstanding   49,999,891    -         49,999,891 

 

See accompanying notes to pro forma combined financial statements

 

F-2
 

 

AIXIN LIFE INTERNATIONAL, INC.

UNAUDITED PRO FORMA COMBINED STATEMENT OF INCOME AND COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2020

 

  

AIXIN LIFE

INTERNATIONAL

INC

  

AIXIN

SHANGYAN

HOTEL

  

Pro forma

Adjustments

  

Pro forma

Combined

 
                           
Revenue                    
Products  $580,712   $-       $580,712 
Advertising   1,870,343    -         1,870,343 
Hotel revenue   -    1,074,151         1,074,151 
Total revenues, net   2,451,055    1,074,151         3,525,206 
                     
Operating costs and expenses                   
Cost of goods sold     224,675       -               224,675  
Hotel operating costs   -    1,537,307         1,537,307 
Selling expenses   244,200    116,564         360,764 
General and administrative expenses   802,556    164,466         967,022 
Provision for bad debts   13,624    22,227         35,851 
Stock-based compensation   371,540    -         371,540 
                     
Total operating costs and expenses    1,656,595     1,840,564          3,497,159  
                     
Income (loss) from operations   794,460    (766,413)        28,047 
                    
Non-operating income (expenses)                    
Interest income   537,580    31         537,611 
Other income   28,924    82,398         111,322 
Other expenses   (3,326)   (5,121)        (8,447)
                     
Total non-operating income, net   563,178    77,308         640,486 
                     
Income (loss) before income tax   1,357,638    (689,105)        668,533 
                     
Income tax expense   340,127    -         340,127 
                     
Net income (loss)  $1,017,511   $(689,105)       $328,406 
                     
Other comprehensive items                    
Foreign currency translation (loss)   437,059    (86,642)        350,417 
                     
Comprehensive income (loss)  $1,454,570   $(775,747)       $678,823 
                    
Earnings per share  $0.02   $-        $0.01 
                     
Weighted average shares outstanding   65,609,450    -         65,609,450 

 

See accompanying notes to pro forma combined financial statements

 

F-3
 

 

AIXIN LIFE INTERNATIONAL, INC.

NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS

 

NOTE 1 - INTRODUCTION

 

On May 25, 2021, Aixin Life International, Inc (“Aixin Life” or the “Company”) entered into an Equity Transfer Agreement with Chengdu Aixin Shangyan Hotel Management Co., Ltd (“Aixin Shangyan Hotel”), and its two shareholders Quanzhong Lin and Yirong Shen (“Transferor”) (of which, Quanzhong Lin, is also the Chairman and President and major shareholder of Aixin Life). Pursuant to the Agreement (the “Hotel Purchase Agreement”), Aixin Life agreed to purchase 100% ownership of Aixin Shangyan Hotel from Mr. Lin and Ms. Shen. Eighty percent of the equity of Aixin Shangyan Hotel is owned by Mr. Lin. The balance is owned by Ms. Shen. Under the terms of the Hotel Purchase Agreement, Aixin Life agreed to purchase all of the outstanding equity of Aixin Shangyan Hotel for a purchase price of RMB 7,598,887, or approximately $1,164,598, (“Transfer Price”). The Transfer Price will be reduced by an amount equal to any amounts paid or distributed by Aixin Shangyan Hotel to the Transferor after December 31, 2020 and will be increased by an amount equal to any amounts contributed to Aixin Shangyan Hotel by the Transferor after December 31, 2020. The Transfer Price, as adjusted in accordance with this Section, is referred to as the “Adjusted Transfer Price.”

 

NOTE 2 - BASIS OF PRESENTATION

 

The unaudited pro forma condensed combined balance sheet as of March 31, 2021 combines the historical balance sheets of the Company and Aixin Shangyan Hotel as if the Transactions had occurred on March 31, 2021. The unaudited pro forma combined statements of operations and comprehensive income for the three months ended March 31, 2021 and for the year ended December 31, 2020 combine the historical consolidated statements of operations and comprehensive income (loss) of the Company and Aixin Shangyan Hotel, and have been prepared as if the Transactions had closed on January 1, 2020. The unaudited pro forma condensed combined financial statements have also been adjusted to give effect to pro forma events that are directly attributable to the Transactions, factually supportable and expected to have a continuing impact on the combined results.

 

The unaudited pro forma condensed combined financial information was prepared using the acquisition method of accounting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations. Both the Company and Aixin Shangyan Hotel are under common control and ownership.

 

The preliminary unaudited pro forma information is presented solely for informational purposes and is not necessarily indicative of the consolidated results of operations or financial position that might have been achieved for the periods or dates indicated, nor is it necessarily indicative of the future results of the combined company.

 

NOTE 3 – PRO FORMA ADJUSTMENTS

 

The following adjustments were made in the preparation of the unaudited pro forma condensed consolidated combined balance sheet and unaudited pro forma condensed consolidated combined statements of income and comprehensive income:

 

{a} Pursuant to the Hotel Purchase Agreement, the actual or potential creditor’s rights and debts of Aixin Shangyan Hotel prior to the date of equity transfer shall be owned and undertaken by the Transferor. After the transfer, the Transferor shall independently assume the liability for litigations or losses of Aixin Shangyan Hotel caused by the actual or potential debts prior to the date of equity transfer.

 

{b} Represents the proceeds made by Aixin Life based on the Adjusted Transfer Price. The Adjusted Transfer Price is based on the Transfer Price of $1,164,598, increased by $241,683 contributed to Aixin Shangyan Hotel by Mr. Lin during the three months ended March 31, 2021.

 

F-4