Exhibit 99.2
SOLLENSYS CORPORATION AND EAGLE LAKE LABORATORIES INC.
PROFORMA COMBINED BALANCE SHEETS
(UNAUDITED)
Sollensys | Eagle Lake | Proforma | |||||
Corporation | Laboratories | Share | Combined | ||||
September 30, | September 30, | Exchange | and | ||||
ASSETS | 2020 (a) | 2020 (a)(b) | Entries | Eliminations | Consolidated | ||
Current assets: | |||||||
Cash and cash equivalents | $45,485 | $450,975 | $- | $- | $496,460 | ||
Accounts receivable related party | 195,000 | (195,000) | (d) | - | |||
Investment | 485 | (485) | (c) | - | |||
Inventory | 150,000 | - | - | (90,000) | (e) | 60,000 | |
Total current assets | 195,485 | 646,460 | (485) | (285,000) | 556,460 | ||
Other assets | - | 1,450 | - | - | 1,450 | ||
Total assets | $195,485 | $647,910 | $(485) | $(285,000) | $557,910 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $- | $5,695 | $- | $- | $5,695 | ||
Accrued expenses | - | 1,206 | 1,206 | ||||
Accounts payable related party | 195,000 | - | (195,000) | (d) | - | ||
Total current liabilities | 195,000 | 6,901 | (195,000) | 6,901 | |||
Total liabilities | 195,000 | 6,901 | (195,000) | 6,901 | |||
Stockholders' Equity (Deficit): | |||||||
Preferred stock, Series A, $0.001 par value, 25,000,000 shares authorized, 19,000,000 | |||||||
and -0- shares issued and outstanding as of September 30, 2020 | 19,000 | 19,000 | |||||
Common stock, $0.001 par value, 300,000,000 shares authorized; 4,183,962 issued | |||||||
and outstanding as of September 30, 2020 | 4,184 | 950,861 | (950,861) | (c) | 4,184 | ||
Paid in capital | 2,426,334 | 0 | 950,376 | (c) | 3,376,710 | ||
Accumulated deficit | (2,449,033) | (309,852) | - | (90,000) | (e) | (2,848,885) | |
Total stockholders' equity(deficit) | 485 | 641,009 | (485) | - | 641,009 | ||
Total liabilities and equity | $195,485 | $647,910 | (485) | $(285,000) | $557,910 |
SOLLENSYS CORPORATION AND EAGLE LAKE LABORATORIES INC.
PROFORMA COMBINED STATEMENTS OF OPERATIONS
(UNAUDITED)
Sollensys | Eagle Lake | Proforma | ||||
Corporation | Laboratories | Share | Adjustments | Combined | ||
September 30, | September 30, | Exchange | and | and | ||
2020 | 2020 | Entries | Eliminations | Consolidated | ||
Revenue | $135,000 | $195,000 | $- | $(195,000) | (f) | $135,000 |
Cost of sales | 45,000 | 82,500 | (105,000) | (f) | 22,500 | |
Gross profit | 90,000 | 112,500 | (90,000) | 112,500 | ||
Operating expenses: | ||||||
General and administrative | 2,010,858 | 422,360 | - | 2,433,218 | ||
Total operating expenses | 2,010,858 | 422,360 | - | 2,433,218 | ||
Loss from operations | (1,920,858) | (309,860) | (90,000) | (2,320,718) | ||
Other income | - | |||||
Gain on the extinguishment of debt | 85,771 | - | 85,771 | |||
Other income: | - | 8 | 8 | |||
Total other income | 85,771 | 8 | - | 85,779 | ||
Loss before income taxes | (1,835,087) | (309,852) | (90,000) | (2,234,939) | ||
Provision for income taxes | - | - | - | - | ||
Net loss | $(1,835,087) | $(309,852) | $- | $(90,000) | $(2,234,939) | |
Basic and diluted loss per common share | $(0.44) | $(0.03) | $(0.53) | |||
Weighted-average number of common shares outstanding: | ||||||
Basic and diluted | 4,183,962 | 10,000,000 | (10,000,000) | - | 4,183,962 |
Notes
(a) Sollensys Corporation and Eagle Lake Laboratories were under the common control of the CEO before and after the date of transfer. As a result the Company adopted the guidance in ASC 805-50-05-5 for the transfer of net assets between entities under common control to apply a method similar to the pooling-of-interests-method. Under the method the financial statements of the Company shall report results of operations for the period in which the transfer occurs as though the transfer of the net assets had occurred at the beginning of the period. Results of operations for the period will thus comprise both those of the previously separate entities combined from the beginning of the period to the date the transfer is completed and those of the combined operations from that date to the end of the period. Similarly, the Company shall present the statements of financial position and other financial information presented as of the beginning of the period as though the assets and liabilities had been transferred at that date. Financial statements and financial information presented for prior years also shall be retrospectively adjusted to furnish comparative information
The unaudited proforma financial statements presented are for the six months ended September 30, 2020
(b) Eagle Lake Laboratories was incorporated in the State of Florida on May 8, 2020
(c) To reclass the equity and investment accounts to paid in capital per pooling of interest accounting
(d) To eliminate intercompany receivable and payable balances
(e) To adjust the inventory to cost
(f) To eliminate intercompany sales