Exhibit 99.3
TENGJUN BIOTECHNOLOGY CORP.
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
AS OF SEPTEMBER 30, 2021
Pro Forma | Pro Forma | |||||||||||||||
Tengjun | Tengjunxiang | Adjustments | Combined | |||||||||||||
Assets | ||||||||||||||||
Current Assets | ||||||||||||||||
Cash and cash equivalents | $ | 24,381 | $ | 18,958 | $ | - | $ | 43,339 | ||||||||
Advance to suppliers | - | 504,982 | 504,982 | |||||||||||||
Inventories, net | - | 2,995,372 | 2,995,372 | |||||||||||||
Prepaid taxes | - | 678,651 | 678,651 | |||||||||||||
Prepaid expenses and other receivable | 10,667 | 897 | 11,564 | |||||||||||||
Total Current Assets | 35,048 | 4,198,860 | - | 4,233,908 | ||||||||||||
- | ||||||||||||||||
Property and equipment, net | - | 724,474 | 724,474 | |||||||||||||
Construction in progress | - | 8,626,576 | 8,626,576 | |||||||||||||
- | ||||||||||||||||
Total Assets | $ | 35,048 | $ | 13,549,910 | $ | - | $ | 13,584,958 | ||||||||
Liabilities and Deficit | ||||||||||||||||
Current Liabilities | ||||||||||||||||
Accounts payable | $ | - | $ | 259,280 | $ | - | $ | 259,280 | ||||||||
Advances from customers | - | 13,968 | 13,968 | |||||||||||||
Loan from third parties | - | 1,501,381 | 1,501,381 | |||||||||||||
Due to related parties | 312,869 | 12,995,848 | 13,308,717 | |||||||||||||
Accrued liabilities and other payables | 11,000 | 470,002 | 481,002 | |||||||||||||
Total Current Liabilities | 323,869 | 15,240,479 | - | 15,564,348 | ||||||||||||
Total Liabilities | 323,869 | 15,240,479 | - | 15,564,348 | ||||||||||||
Deficit | ||||||||||||||||
Preferred stock | - | - | - | |||||||||||||
Common stock | 46,023 | 50,000 | {a} | (30,714 | ) | 65,309 | ||||||||||
Additional paid-in capital | 290,852 | 1,518,304 | {a} | 30,714 | 1,839,870 | |||||||||||
Accumulated deficit | (625,696 | ) | (3,100,692 | ) | (3,726,388 | ) | ||||||||||
Accumulated other comprehensive loss | - | (158,181 | ) | (158,181 | ) | |||||||||||
Total Deficit | (288,821 | ) | (1,690,569 | ) | - | (1,979,390 | ) | |||||||||
Total Liabilities and Deficit | $ | 35,048 | $ | 13,549,910 | $ | - | $ | 13,584,958 |
See accompanying notes to pro forma combined financial statements
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TENGJUN BIOTECHNOLOGY CORP.
UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021
Pro Forma | Pro Forma | |||||||||||||||
Tengjun | Tengjunxiang | Adjustments | Combined | |||||||||||||
Sales revenue, net | $ | - | $ | - | $ | - | $ | - | ||||||||
Cost of goods sold | - | - | - | - | ||||||||||||
Gross profit | - | - | - | - | ||||||||||||
Selling and marketing expenses | - | 26,066 | 26,066 | |||||||||||||
General and administrative expenses | 30,318 | 462,167 | 492,485 | |||||||||||||
Total operating expenses | 30,318 | 488,233 | - | 518,551 | ||||||||||||
Loss from operations | (30,318 | ) | (488,233 | ) | - | (518,551 | ) | |||||||||
Interest income (expense) | (17,638 | ) | (4,959 | ) | (22,597 | ) | ||||||||||
Other income (loss), net | - | (2,289 | ) | (2,289 | ) | |||||||||||
Loss before provision for income taxes | (47,956 | ) | (495,481 | ) | - | (543,437 | ) | |||||||||
Provision for income taxes | - | - | - | |||||||||||||
Net loss | (47,956 | ) | (495,481 | ) | - | (543,437 | ) | |||||||||
Other comprehensive income (loss): | ||||||||||||||||
Foreign currency translation loss | - | (16,973 | ) | (16,973 | ) | |||||||||||
Comprehensive loss | $ | (47,956 | ) | $ | (512,454 | ) | $ | - | $ | (560,410 | ) |
See accompanying notes to pro forma combined financial statements
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TENGJUN BIOTECHNOLOGY CORP.
UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS
FOR THE YEAR ENDED DECEMBER 31, 2020
Pro Forma | Pro Forma | |||||||||||||||
Tengjun | Tengjunxiang | Adjustments | Combined | |||||||||||||
Sales revenue, net | $ | $ | 290 | $ | - | $ | 290 | |||||||||
Cost of goods sold | 58 | 58 | ||||||||||||||
Gross profit | - | 232 | - | 232 | ||||||||||||
Selling and marketing expenses | - | 68,804 | 68,804 | |||||||||||||
General and administrative expenses | 32,274 | 597,873 | 630,147 | |||||||||||||
Total operating expenses | 32,274 | 666,677 | - | 698,951 | ||||||||||||
Loss from operations | (32,274 | ) | (666,445 | ) | (698,719 | ) | ||||||||||
Interest (expense) income | (21,594 | ) | (15,102 | ) | (36,696 | ) | ||||||||||
Other (expense) income, net | (9,339 | ) | (9,339 | ) | ||||||||||||
Loss before provision for income taxes | (53,868 | ) | (690,886 | ) | - | (744,754 | ) | |||||||||
Provision for income taxes | - | - | - | |||||||||||||
Net loss | (53,868 | ) | (690,886 | ) | - | (744,754 | ) | |||||||||
- | ||||||||||||||||
Other comprehensive income (loss): | - | |||||||||||||||
Foreign currency translation (loss) gain | - | (68,201 | ) | (68,201 | ) | |||||||||||
Comprehensive loss | $ | (53,868 | ) | $ | (759,087 | ) | $ | - | $ | (812,955 | ) |
See accompanying notes to pro forma combined financial statements
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TENGJUN BIOTECHNOLOGY CORP.
UNAUDITED PRO FORMA FINANCIAL INFORMATION
Note 1 – Introduction
On December 23, 2021 (the “Effective Date”), Tengjun Biotechnology Corp. (“Tengjun”), a Nevada corporation, Tengjunxiang Biotechnology Ltd. (“Tengjunxiang”), a company incorporated in the Cayman Islands, and Tengjunxiang’s eleven shareholders (the “Selling Shareholders”) entered into a Share Purchase/ Exchange Agreement (the “Agreement”). The Selling Shareholders collectively own 100% of all issued and outstanding shares of Tengjunxiang (the “Tengjunxiang Shares”). Pursuant to the Agreement, the Selling Shareholders jointly agreed to sell or transfer to Tengjun one hundred percent (100%) of the Tengjunxiang Shares in exchange for a total of 19,285,714 shares of Tengjun’s common stock, par value $0.001 per share (the “Tengjun Shares”). As a result of such exchange (the “Stock Exchange”), Tengjunxiang shall become a wholly-owned subsidiary of Tengjun and the Selling Shareholders shall collectively own 19,285,714 Tengjun Shares, representing approximately 29.53% of the then issued and outstanding shares of Tengjun Shares on a fully diluted basis.
The unaudited pro forma condensed consolidated combined financial statements reflect the combination of the historical results of Tengjun, and Tengjunxiang and its subsidiaries, on a pro forma basis to give effect to the Agreement and the equity transfer (together, the “Transactions”).
Note 2 – Basis of Presentation
The unaudited pro forma condensed consolidated combined balance sheet of the combined company is based on the unaudited historical balance sheets of Tengjun, and Tengjunxiang and its subsidiaries, as if the Transactions had occurred on September 30, 2021, and includes preliminary adjustments to reflect the events that are directly attributable to the Transactions and factually supportable.
The unaudited pro forma condensed consolidated combined statement of operations and comprehensive loss of the combined company for the nine months ended September 30, 2021 is based on the unaudited historical statements of operations and comprehensive loss of Tengjun, and Tengjunxiang and its subsidiaries for the same period.
The unaudited pro forma condensed consolidated combined statement of operations and comprehensive loss of the combined company for the year ended December 31, 2020 is based on the audited statement of operations of Tengjun, and Tengjunxiang and its subsidiaries for the year ended December 31, 2020. The aforementioned unaudited pro forma combined statements of operations and comprehensive loss have been prepared assuming the Transactions closed on January 1, 2020.
The pro forma adjustments are preliminary and are based upon available information and certain assumptions, described in the accompanying notes to the unaudited pro forma combined financial information that management believes are reasonable under the circumstances. Actual results may differ materially from the unaudited pro forma combined financial information (including the assumptions within the accompanying unaudited pro forma combined financial information).
These unaudited pro forma combined condensed financial statements should be read in conjunction with Tengjun’s historical financial statements and accompanying notes included in its Annual Report on Form 10-K for the year ended December 31, 2020, and the historical financial statements of Tengjunxiang and its subsidiaries for the nine months ended September 30, 2021 and for the year ended December 31, 2020 contained in this Form 8-K.
Note 3 – Pro Forma Adjustment
{a} The adjustment represents the issuance of 19,285,714 shares to complete the Transactions.
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