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Sollensys (SOLS)

Filed: 30 Nov 20, 3:55pm
  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