Exhibit 99.5
Unaudited Pro Forma Condensed Consolidated Financial Information
On January 26, 2021, Boston Therapeutics, Inc., a Delaware corporation (the “Company”), BTHE Acquisition Inc., a California corporation and wholly-owned subsidiary of the Company (“Merger Sub”), and Nanomix, Inc., a California corporation (“Nanomix”), entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which, among other matters, and subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, Merger Sub will merge with and into Nanomix, with Nanomix continuing as a wholly-owned subsidiary of the Company and the surviving corporation of the merger (the “Merger”). The Merger is intended to qualify for federal income tax purposes as a tax-free reorganization under the provisions of Section 368(a) of the Internal Revenue Code of 1986, as amended. The merger closed on June 4, 2021.
The unaudited pro forma condensed combined financial information has been prepared to illustrate the effect of the Business Combination and has been prepared for informational purposes only.
The historical financial statements have been adjusted in the unaudited pro forma condensed combined financial information to give pro forma effect to events that are (1) directly attributable to the Business Combination, (2) factually supportable, and (3) with respect to the statements of operations, expected to have a continuing impact on the results of the post-combination company. No pro forma adjustments were required to eliminate activities between the companies.
The pro forma basic and diluted earnings per share amounts presented in the unaudited pro forma condensed combined statements of operations are based upon the number of the post combination shares outstanding assuming the Business Combination occurred on January 1, 2020 and 2019.
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET AS OF MARCH 31, 2021 AND DECEMBER 31, 2020
Boston Therapeutics | Nanomix, Inc | Proforma Adjustment | Combined | |||||||||||||||||||||||||||||
March 31, 2021 | December, 31 2020 | March 31, 2021 | December, 31 2020 | March 31, 2021 | December, 31 2020 | March 31, 2021 | December, 31 2020 | |||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Currents assets: | ||||||||||||||||||||||||||||||||
Cash | $ | 46,964 | $ | 7,402 | $ | 66,490 | $ | 15,098 | $ | 113,454 | $ | 22,500 | ||||||||||||||||||||
Accounts receivable | - | - | - | 821 | 0 | 821 | ||||||||||||||||||||||||||
Inventory, net | - | 2,225 | - | - | - | 2,225 | ||||||||||||||||||||||||||
Prepaid expenses and other current assets | 3,500 | 10,273 | 165,561 | 156,875 | 169,061 | 167,148 | ||||||||||||||||||||||||||
Total current assets | 50,464 | 19,900 | 232,051 | 172,794 | 282,515 | 192,694 | ||||||||||||||||||||||||||
Deposit | - | - | 60,000 | 60,000 | 60,000 | 60,000 | ||||||||||||||||||||||||||
Property and Equipment, net | - | - | 61,666 | 65,612 | 61,666 | 65,612 | ||||||||||||||||||||||||||
Other long-term assets | - | - | 178,348 | 232,065 | 178,348 | 232,065 | ||||||||||||||||||||||||||
Total assets | $ | 50,464 | $ | 19,900 | $ | 532,065 | $ | 530,471 | $ | 582,529 | $ | 550,371 | ||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||||||||
Accounts payable | 312,580 | 530,907 | 1,239,977 | 898,463 | 1,552,557 | 1,429,370 | ||||||||||||||||||||||||||
Accounts payable – related party | 84,262 | 282,302 | - | - | 84,262 | 282,302 | ||||||||||||||||||||||||||
Accrued expenses and other current liabilities | 830,983 | 1,286,119 | - | - | 830,983 | 1,286,119 | ||||||||||||||||||||||||||
Accrued expenses | - | - | 232,323 | 344,065 | 232,323 | 344,065 | ||||||||||||||||||||||||||
Accrued expenses – related party | 114,297 | 1,397,409 | 62,500 | 50,000 | 176,797 | 1,447,409 | ||||||||||||||||||||||||||
Accrued interest | - | - | 159,554 | 132,175 | (155,918 | ) | (129,538 | )(b) | 3,636 | 2,637 | ||||||||||||||||||||||
Accrued interest, related party | - | - | 2,138,175 | 1,810,232 | (1,577,731 | ) | (1,299,788 | )(b) | 560,444 | 510,444 | ||||||||||||||||||||||
Deferred Revenues | - | - | 188,741 | 188,741 | 188,741 | 188,741 | ||||||||||||||||||||||||||
Deferred revenue – related party | 104,782 | 104,782 | - | - | 104,782 | 104,782 | ||||||||||||||||||||||||||
Convertible note payable | - | 1,402,000 | - | - | - | 1,402,000 | ||||||||||||||||||||||||||
Convertible notes payable, current portion – in default | 200,000 | 200,000 | - | - | 200,000 | 200,000 | ||||||||||||||||||||||||||
Notes payable – related parties, current portion – portions in default | 497,821 | 2,783,429 | - | - | 497,821 | 2,783,429 | ||||||||||||||||||||||||||
Note payable marketing agreement | 450,000 | 450,000 | - | - | 450,000 | 450,000 | ||||||||||||||||||||||||||
Derivative liability, current portion | 15,282 | 2,763 | - | - | 15,282 | 2,763 | ||||||||||||||||||||||||||
Warrant liability | 438,972 | 160,342 | - | - | 438,972 | 160,342 | ||||||||||||||||||||||||||
Other current liabilities | - | - | 260,241 | 313,146 | 260,241 | 313,146 | ||||||||||||||||||||||||||
Total current liabilities | 3,048,979 | 8,600,053 | 4,281,511 | 3,736,822 | (1,733,649 | ) | (1,429,326 | ) | 5,596,841 | 10,907,548 | ||||||||||||||||||||||
Notes payable – net of current portion | - | - | 900,000 | 610,000 | (900,000 | ) | (610,000 | )(b) | - | - | ||||||||||||||||||||||
Notes payable, related party – net of current portion | - | - | 8,634,500 | 8,307,000 | (7,634,500 | ) | (7,307,000 | )(b) | 1,000,000 | 1,000,000 | ||||||||||||||||||||||
Other long-term liabilities | - | - | 402,154 | 402,154 | 402,154 | 402,154 | ||||||||||||||||||||||||||
Total Liabilities | 3,048,979 | 8,600,053 | 14,218,165 | 13,055,976 | (10,268,149 | ) | (9,346,326 | ) | 6,998,995 | 12,309,702 | ||||||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||||||||||||||||
Preferred stock | - | - | 40,070,108 | 40,070,108 | (40,070,108 | ) | (40,070,108 | )(a) | - | - | ||||||||||||||||||||||
Preferred stock B | 963,964 | - | - | - | 963,964 | - | ||||||||||||||||||||||||||
Preferred stock C | - | - | 22,005,949 | 889,051 | (d) | 22,005,949 | 889,051 | |||||||||||||||||||||||||
Stockholders’ deficit: | ||||||||||||||||||||||||||||||||
Preferred stock A | 83 | - | 83 | |||||||||||||||||||||||||||||
Common stock | 916,915 | 111,131 | 16 | 7 | 1,070 | 1,070 | (a) | 916,915 | 111,131 | |||||||||||||||||||||||
- | 954 | 869 | (b) | |||||||||||||||||||||||||||||
(2,040 | ) | (1,946 | )(d) | |||||||||||||||||||||||||||||
Additional paid-in capital | 37,165,114 | 19,322,864 | 44,779,011 | 44,727,164 | 40,069,037 | 40,069,037 | (a) | 68,231,940 | 84,563,188 | |||||||||||||||||||||||
- | 10,267,194 | 9,345,458 | (b) | |||||||||||||||||||||||||||||
- | (42,044,508 | ) | (28,014,231 | )(c) | ||||||||||||||||||||||||||||
(22,003,909 | ) | (887,105 | )(d) | |||||||||||||||||||||||||||||
Accumulated deficit | (42,044,508 | ) | (28,014,231 | ) | (98,535,234 | ) | (97,322,784 | ) | 42,044,508 | 28,014,231 | (c) | (98,535,234 | ) | (97,322,784 | ) | |||||||||||||||||
Total stockholders’ deficit | (3,962,479 | ) | (8,580,153 | ) | (53,756,207 | ) | (52,595,613 | ) | 28,332,307 | 48,527,383 | (29,386,379 | ) | (12,648,383 | ) | ||||||||||||||||||
Total liabilities and stockholders’ deficit | $ | 50,464 | $ | 19,900 | $ | 532,065 | $ | 530,471 | $ | - | $ | - | $ | 582,529 | $ | 550,371 |
2
UNAUDITED PROFORMA CONDENSED COMBINED STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020
Boston Therapeutics | Nanomix, Inc. | Proforma Adjustment | Combined | |||||||||||||||||||||||||||||
3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |||||||||||||||||||||||||
Revenue | $ | - | $ | 3,093 | $ | 141,778 | $ | 23,136 | $ | 141,778 | $ | 26,229 | ||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Direct expenses | 8,766 | 4,902 | - | - | 8,766 | 4,902 | ||||||||||||||||||||||||||
Research and development | 2,500 | - | 608,771 | 760,342 | 611,271 | 760,342 | ||||||||||||||||||||||||||
Sales and marketing | 308 | 541 | - | - | 308 | 541 | ||||||||||||||||||||||||||
General and administrative | 574,955 | 131,361 | 388,871 | 437,131 | 963,826 | 568,492 | ||||||||||||||||||||||||||
Impairment of Intangibles | - | - | - | - | - | - | ||||||||||||||||||||||||||
Total operating expenses | 586,529 | 136,804 | 997,642 | 1,197,473 | 1,584,171 | 1,334,277 | ||||||||||||||||||||||||||
Operating loss | (586,529 | ) | (133,711 | ) | (855,864 | ) | (1,174,336 | ) | - | - | (1,442,393 | ) | (1,308,047 | ) | ||||||||||||||||||
Other (expenses) income: | ||||||||||||||||||||||||||||||||
Interest expense | (21,740 | ) | (98,192 | ) | (28,644 | ) | (36,979 | ) | (50,384 | ) | (135,171 | ) | ||||||||||||||||||||
Interest expense, related, party | - | - | (327,943 | ) | (227,037 | ) | (327,943 | ) | (227,037 | ) | ||||||||||||||||||||||
Change in fair value of derivative liability | (21,143 | ) | 3,549 | - | - | (21,143 | ) | 3,549 | ||||||||||||||||||||||||
Change in fair value of warrant liability | (278,630 | ) | 101,993 | - | - | (278,630 | ) | 101,993 | ||||||||||||||||||||||||
Loss on conversion of related party debt into common stock | (10,604,620 | ) | - | - | - | (10,604,620 | ) | - | ||||||||||||||||||||||||
Loss on conversion of trade payables into common stock | (993,715 | ) | - | - | - | (993,715 | ) | - | ||||||||||||||||||||||||
Loss on conversion of Series A preferred stock into common stock | (1,735,500 | ) | - | - | - | (1,735,500 | ) | - | ||||||||||||||||||||||||
Gain on settlement of accounts payable for Series B preferred stock | 211,600 | - | - | - | 211,600 | - | ||||||||||||||||||||||||||
Total other (expenses) income | (13,443,748 | ) | 7,350 | (356,587 | ) | (264,016 | ) | - | - | (13,800,335 | ) | (256,666 | ) | |||||||||||||||||||
Loss before provision for income taxes | (14,030,277 | ) | (126,361 | ) | (1,212,450 | ) | (1,438,352 | ) | - | - | (15,242,727 | ) | (1,564,713 | ) | ||||||||||||||||||
Net loss | $ | (14,030,277.00 | ) | $ | (126,361.00 | ) | $ | (1,212,450.36 | ) | $ | (1,438,352.26 | ) | $ | - | $ | - | $ | (15,242,727.36 | ) | $ | (1,564,713.26 | ) | ||||||||||
Net loss per share - basic and diluted | (0.02 | ) | (0.00 | ) | (0.99 | ) | (1.93 | ) | (0.02 | ) | (0.01 | ) | ||||||||||||||||||||
Weighted average shares outstanding basic and diluted | 690,048,665 | 111,131,373 | 1,225,881 | 743,513 | 690,048,665 | 111,131,373 |
3
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019
Boston Therapeutics | Nanomix, Inc | Proforma Adjustment | Combined | |||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||||||||||
Cash | $ | 7,402.00 | $ | 6,701.00 | $ | 15,098.11 | $ | 590,433.53 | $ | 22,500.11 | $ | 597,134.53 | ||||||||||||||||||||
Accounts receivable | 821 | - | 821 | - | ||||||||||||||||||||||||||||
Prepaid expenses and other current assets | 10,273 | 12,662 | 156,875 | 4,446 | 167,148 | 17,108 | ||||||||||||||||||||||||||
Inventory, net | 2,225 | 3,909 | - | - | 2,225 | 3,909 | ||||||||||||||||||||||||||
Total current assets | 19,900 | 23,272 | 172,794 | 594,879 | - | - | 192,694 | 618,151 | ||||||||||||||||||||||||
Deposit | 60,000 | 20,000 | 60,000 | 20,000 | ||||||||||||||||||||||||||||
Property and Equipment, net | 509 | 65,612 | 50,521 | 65,612 | 51,030 | |||||||||||||||||||||||||||
Other long-term assets | 232,065 | 424,852 | 232,065 | 424,852 | ||||||||||||||||||||||||||||
Total assets | $ | 19,900 | $ | 23,781 | $ | 530,471 | $ | 1,090,253 | $ | - | $ | - | $ | 550,371 | $ | 1,114,034 | ||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||||||||
Accounts payable | 530,907 | 458,175 | 898,463 | 134,141 | 1,429,370 | 592,316 | ||||||||||||||||||||||||||
Accounts payable–related party | 282,302 | 152,302 | - | - | 282,302 | 152,302 | ||||||||||||||||||||||||||
Accrued expenses and other current liabilities | 1,286,119 | 1,361,194 | - | - | 1,286,119 | 1,361,194 | ||||||||||||||||||||||||||
Accrued expenses | 344,065 | 151,284 | 344,065 | 151,284 | ||||||||||||||||||||||||||||
Accrued expenses–related party | 1,397,409 | 1,097,974 | 50,000 | 37,500 | 1,447,409 | 1,135,474 | ||||||||||||||||||||||||||
Accrued interest | 132,175 | 49,192 | (129,538 | ) | (49,192) | (b) | 2,637 | - | ||||||||||||||||||||||||
Accrued interest, related party | 1,810,232 | 733,754 | (1,299,788 | ) | (426,643) | (b) | 510,444 | 307,111 | ||||||||||||||||||||||||
Deferred Revenues | 188,741 | 176,102 | 188,741 | 176,102 | ||||||||||||||||||||||||||||
Deferred revenue–related party | 104,782 | 104,782 | - | - | 104,782 | 104,782 | ||||||||||||||||||||||||||
Convertible note payable | 1,402,000 | 1,402,000 | - | - | 1,402,000 | 1,402,000 | ||||||||||||||||||||||||||
Convertible notes payable, current portion–in default | 200,000 | 250,000 | - | - | 200,000 | 250,000 | ||||||||||||||||||||||||||
Notes payable–related parties, current portion–portions in default | 2,783,429 | 1,948,429 | - | - | 2,783,429 | 1,948,429 | ||||||||||||||||||||||||||
Note payable marketing agreement | 450,000 | 450,000 | - | - | 450,000 | 450,000 | ||||||||||||||||||||||||||
Derivative liability, current portion | 2,763 | 9,451 | - | - | 2,763 | 9,451 | ||||||||||||||||||||||||||
Warrant liability | 160,342 | 461,744 | - | - | 160,342 | 461,744 | ||||||||||||||||||||||||||
Other current liabilities | 313,146 | 154,738 | 313,146 | 154,738 | ||||||||||||||||||||||||||||
Total current liabilities | 8,600,053 | 7,696,051 | 3,736,822 | 1,436,710 | (1,429,326 | ) | (475,835 | ) | 10,907,548 | 8,656,926 | ||||||||||||||||||||||
Notes payable–net of current portion | 610,000 | 360,000 | (610,000 | ) | (360,000 | ) (b) | - | - | ||||||||||||||||||||||||
Notes payable, related party–net of current portion | 8,307,000 | 5,575,000 | (7,307,000 | ) | (4,575,000 | ) (b) | 1,000,000 | 1,000,000 | ||||||||||||||||||||||||
Other long-term liabilities | 402,154 | 313,146 | 402,154 | 313,146 | ||||||||||||||||||||||||||||
Total Liabilities | 8,600,053 | 7,696,051 | 13,055,976 | 7,684,856 | (9,346,326 | ) | (5,410,835 | ) | 12,309,702 | 9,970,073 | ||||||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||||||||||||||||
Preferred stock | 40,070,108 | 40,070,108 | (40,070,108 | ) | (40,070,108 | ) (a) | - | - | ||||||||||||||||||||||||
Preferred stock C | 889,051 | 1,778,102 | (d) | 889,051 | 1,778,102 | |||||||||||||||||||||||||||
Stockholders’ deficit: | ||||||||||||||||||||||||||||||||
Preferred stock A | 83 | 83 | 83 | 83 | ||||||||||||||||||||||||||||
Common stock | 111,131 | 111,131 | 7 | 7 | 1,070 | 1,070 | (a) | 111,131 | 111,131 | |||||||||||||||||||||||
869 | 503 | (b) | ||||||||||||||||||||||||||||||
(1,946 | ) | (1,581 | ) (d) | |||||||||||||||||||||||||||||
Additional paid-in capital | 19,322,864 | 19,322,864 | 44,727,164 | 44,465,695 | 40,069,037 | 40,069,037 | (a) | 84,563,188 | 80,385,059 | |||||||||||||||||||||||
9,345,458 | 5,410,332 | (b) | ||||||||||||||||||||||||||||||
(28,014,231 | ) | (27,106,348 | ) (c) | |||||||||||||||||||||||||||||
(887,105 | ) | (1,776,521 | ) (d) | |||||||||||||||||||||||||||||
Accumulated deficit | (28,014,231 | ) | (27,106,348 | ) | (97,322,784 | ) | (91,130,414 | ) | 28,014,231 | 27,106,348 | (c) | (97,322,784 | ) | (91,130,414 | ) | |||||||||||||||||
Total stockholders’ deficit | (8,580,153 | ) | (7,672,270 | ) | (52,595,613 | ) | (46,664,712 | ) | 48,527,383 | 43,702,841 | (12,648,383 | ) | (10,634,141 | ) | ||||||||||||||||||
Total liabilities and stockholders’ deficit | $ | 19,900 | $ | 23,781 | $ | 530,471 | $ | 1,090,253 | $ | - | $ | - | $ | 550,371 | $ | 1,114,034 |
4
UNAUDITED PROFORMA CONDENSED COMBINED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2020 AND 2019
Boston Therapeutics | Nanomix, Inc. | P roforma Adjustment | Combined | |||||||||||||||||||||||||||||
12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |||||||||||||||||||||||||
Revenue | $ | 9,336 | $ | 16,329 | $ | 513,244 | $ | 392,422 | $ | 522,580 | $ | 408,751 | ||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Direct expenses | 32,041 | 27,008 | - | - | 32,041 | 27,008 | ||||||||||||||||||||||||||
Research and development | 180,908 | 1,710,943 | 4,184,820 | 3,765,203 | 4,365,728 | 5,476,146 | ||||||||||||||||||||||||||
Sales and marketing | 898 | 791,232 | - | - | 898 | 791,232 | ||||||||||||||||||||||||||
General and administrative | 581,423 | 980,381 | 1,234,784 | 1,331,593 | 1,816,207 | 2,311,974 | ||||||||||||||||||||||||||
Impairment of Intangibles | 367,181 | - | - | - | 367,181 | |||||||||||||||||||||||||||
Total operating expenses | 795,270 | 3,876,745 | 5,419,604 | 5,096,796 | 6,214,874 | 8,973,541 | ||||||||||||||||||||||||||
Operating loss | (785,934 | ) | (3,860,416 | ) | (4,906,359 | ) | (4,704,373 | ) | (5,692,293 | ) | (8,564,789 | ) | ||||||||||||||||||||
Other (expenses) income: | ||||||||||||||||||||||||||||||||
Interest income | 6 | 47 | 6 | 47 | ||||||||||||||||||||||||||||
Interest expense | (430,039 | ) | (342,516 | ) | (209,538 | ) | (200,110 | ) | (639,577 | ) | (542,626 | ) | ||||||||||||||||||||
Interest expense, related, party | (1,076,478 | ) | (619,147 | ) | (1,076,478 | ) | (619,147 | ) | ||||||||||||||||||||||||
Change in fair value of derivative liability | 6,688 | 44,791 | - | - | 6,688 | 44,791 | ||||||||||||||||||||||||||
Change in fair value of warrant liability | 301,402 | 464,062 | - | - | 301,402 | 464,062 | ||||||||||||||||||||||||||
Total other (expenses) income | (121,949 | ) | 166,337 | (1,286,011 | ) | (819,210 | ) | (1,407,960 | ) | (652,873 | ) | |||||||||||||||||||||
Loss before provision for income taxes | (907,883 | ) | (3,694,079 | ) | (6,192,370 | ) | (5,523,583 | ) | (7,100,253 | ) | (9,217,662 | ) | ||||||||||||||||||||
Net loss | $ | (907,883.00 | ) | $ | (3,694,079.00 | ) | $ | (6,192,370.08 | ) | $ | (5,523,582.92 | ) | $ | (7,100,253.08 | ) | $ | (9,217,661.92 | ) | ||||||||||||||
Net loss per share - basic and diluted | (0.01 | ) | (0.03 | ) | (8.33 | ) | (7.43 | ) | (0.06 | ) | (0.08 | ) | ||||||||||||||||||||
Weighted average shares outstanding basic and diluted | 111,131,373 | 111,076,124 | 743,513 | 743,513 | 111,131,373 | 111,076,124 |
5
Notes to Unaudited Pro Forma Condensed Consolidated Financial Information
Note 1 - Basis of Presentation
The unaudited pro forma condensed financial information was prepared pursuant to the rules and regulations of SEC Regulation S-X, and present the pro forma condensed financial balance sheet and results of operations of the combined companies based on the historical data of Boston Therapeutics and Nanomix.
The unaudited pro forma condensed financial information includes pro forma adjustments that are (i) directly attributable to the transaction, (ii) factually supportable, and (iii) with respect to the unaudited condensed pro forma statements of operations, expected to have a continuing impact on the results of operations of the combined company.
Note 2 – Pro Forma Adjustments
In the merger which closed on June 4, 2021, Boston Therapeutics (BT) issued 1,000,000 shares of Preferred C shares that convert into 80% ownership in the merged company. The conversion into common shares will occur after approval by regulatory authorities of the reverse stock split. As Boston Therapeutics has minimal assets and operations, the merger was accounted for as a reverse recapitalization. The resulting unaudited pro forma condensed consolidated financial statements thus reflect the following:
The issuance of Preferred C shares in exchange for :
● | All Nanomix common shares |
● | All Nanomix preferred shares as converted to common |
● | All Nanomix Convertible Notes and Accrued interest as converted to common |
● | Assumption of all outstanding Nanomix stock options and warrants |
The Secured $1M Note payable and accrued interest to a related party was not converted and is an obligation of the merged company.
The adjustments included in the unaudited pro forma condensed combined balance sheet as of March 31, 2021 and December 31, 2020 and in the unaudited pro forma condensed combined balance sheet as of December 31, 2020 and 2019 are as follows:
(a) | Nanomix preferred stock conversion into common stock: |
Convertible Preferred Stock | Preferred stock shares Outstanding | Issue price | Preferred stock Amount | Conversion Ratio | Common Stock Shares Outstanding | Common Stock Amount | ||||||||||||||||||
Series AA: | 1,045,650 | 1.1500 | $ | 1,202,498 | 1.2220 | 1,277,784 | $ | 13 | ||||||||||||||||
Series BB: | 22,120,639 | 0.0811 | 1,794,205 | 1.0000 | 22,120,639 | 221 | ||||||||||||||||||
Series CC: | 13,761,489 | 0.4618 | 6,354,368 | 1.0823 | 14,894,060 | 149 | ||||||||||||||||||
Series DD: | 33,790,975 | 0.6197 | 20,940,605 | 1.1377 | 38,443,992 | 384 | ||||||||||||||||||
Series EE-1: | 14,030,343 | 0.3228 | 4,528,434 | 1.0000 | 14,030,343 | 140 | ||||||||||||||||||
Series EE-2: | 16,265,953 | 0.3228 | 5,249,999 | 1.0000 | 16,265,953 | 163 | ||||||||||||||||||
Total Preferred Stock: | 101,015,049 | $ | 40,070,108 | 107,032,771 | $ | 1,070 |
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(b) | Nanomix Convertible Notes and accrued interest conversion into common stock: |
As of December 31, | As of December 31, | As of March 31, | ||||||||||
2019 | 2020 | 2021 | ||||||||||
Pricipal Amount | $ | 4,935,000 | $ | 7,917,000 | $ | 8,534,500 | ||||||
Accrued Interest | $ | 475,835 | $ | 1,429,326 | $ | 1,733,649 | ||||||
Total | $ | 5,410,835 | $ | 9,346,326 | $ | 10,268,149 | ||||||
Conversion rate | 0.10759 | 0.10759 | 0.10759 | |||||||||
Shares on Conv. | 50,291,244 | 86,869,843 | 95,437,760 | |||||||||
Common Stock Amount | $ | 503 | $ | 869 | $ | 954 | ||||||
Additional paid-in capital | $ | 5,410,332 | $ | 9,345,458 | $ | 10,267,194 |
(c) | Boston Therapeutics accumulated deficit elimination |
(d) | Issuance of BTHE Preferred C shares for exchange 80% of BTHE stock to 100% of Nanomix common stock: |
As of December 31, | As of December 31, | As of March 31, | ||||||||||
2019 | 2020 | 2021 | ||||||||||
Common stock shares outstanding | 111,131,373 | 111,131,373 | 916,914,554 | |||||||||
Market price per share | $ | 0.02 | $ | 0.01 | $ | 0.03 | ||||||
Market capitalization | $ | 2,222,627 | $ | 1,111,314 | $ | 27,507,437 | ||||||
Nanomix 80% share | $ | 1,778,102 | $ | 889,051 | $ | 22,005,949 |
Note 3 – Subsequent Financial Transaction
Post merger, the combined company entered into a Convertible Secured Note offering that closed on June 25, 2021. This was a financing of the merged companies and a separate transaction from the merger. As a result of post-merger split, after approval by the regulatory authorities of the 173:1 reverse split, there are 46,188,898 shares of common stock par value $0.01 per share.
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