Loading...
Docoh

Sollensys (SOLS)

Filed: 9 Feb 22, 8:55am

 

Exhibit 99.4

 

Sollensys Corp and Abstract Media, LLC

Unaudited Proforma Consolidated Balance Sheets

For the Nine Months Ended September 30, 2021

 

  Sollensys  Abstract         
  Corp  Media, LLC       Consolidated 
  September 30,  September 30,    Acquisition  September 30, 
  2021  2021    Entries  2021 
               
Assets              
Current assets:                  
Cash $146,406  $48,280  (b) $(30,000) $164,686 
Accounts receivable -net  -   26,079        26,079 
Inventory  78,000   -        78,000 
Prepaid expenses  93,369   5,900        99,269 
Other assets  3,600   -        3,600 
Total current assets  321,375   80,260     (30,000)  371,635 
Building, land, and improvements- not in service  2,667,246   -        2,667,246 
Property and equipment, net  233,854   15,386        249,240 
Intangible assets  -   -  (b) (c)  260,881   260,881 
Total Assets $3,222,475  $95,646    $230,881  $3,549,002 
                   
Liabilities and Stockholders’ Equity:                  
                   
Current Liabilities:                  
Accounts payable and accrued liabilities $424,015  $174,332    $-  $598,346 
Customer deposits -short term  236,429   -        236,429 
Contract liabilities  -   14,016        14,016 
Mortgage payable -short term  58,101        -   58,101 
Loan payable-short term  5,431           5,431 
Note payable to member  -   80,000  (b)  (80,000)  - 
Total Current Liabilities  723,976   268,348     (80,000)  912,323 
Mortgage payable -long term  2,441,899            2,441,899 
Customer deposits -long term  201,428            201,428 
Loan payable  20,550   -        20,550 
Total liabilities  3,387,853   268,348     (80,000)  3,576,200 
                   
Commitments and Contingencies  -   -         - 
                   
Stockholders’ Equity                  
  Common stock  100,003   -  (b)  73   100,076 
  Additional Paid-In Capital  5,730,905   -  (b)  366,147   6,097,052 
  Accumulated Deficit  (5,996,285)  (172,702) (a)(b)(c)  (55,339)  (6,224,326)
  Total Stockholders’ Equity  (165,378)  (172,702)    310,881   (27,198) 
Total Liabilities and Stockholders’ Equity $3,222,475  $95,646    $230,881  $3,549,002 

  

Notes

(a)Represents members deficit net of capital contributions and disbursements
(b)Reflects the issuance of 73,244 shares valued at the Company’s private placement memorandum price of 5.00 per share or a value of $336,220 plus $30,000 in cash and the reduction of $80,000 in debt to an LLC member. The Company estimates that all of the purchase price will be allocated to intangible assets with an estimated 10 year amortization period. These estimates will be subject to further analysis and adjustment by the Company as it completes its acquisition accounting
(c)To record amortization for the nine month period ended September 30, 2021

 

See notes to unaudited pro forma financial statements

 

 F-1 

 

 

Sollensys Corp and Abstract Media, LLC

Unaudited Proforma Consolidated Statements of Operations

For the Nine Months Ended September 30, 2021

 

  Sollensys  Abstract         
  Corp  Media, LLC       Consolidated 
  September 30,  September 30,    Acquisition  September 30, 
  2021  2021    Entries  2021 
               
Revenue $145,357  $296,681       $442,038 
Cost of sales  167,352   391,104        558,456 
Gross (loss)  (21,995)  (94,423)        (116,418)
                   
Operating expenses                  
Depreciation and amortization          (b)   23,717    23,717  
Selling, general and administrative expense  2,505,120   148,008        2,653,129 
Total operating expenses  2,505,120   148,008     (23,717)  2,629,412 
Loss from operations  (2,527,115)  (242,431)    (23,717)  (2,793,264)
                   
Other income (expense)                  
Other income  3,675   208,731        212,406 
Interest expense  (30,767)          (30,767)
Total other income (expense)  (27,092)  208,731        181,639 
Net loss $(2,554,207)  (33,700)    (23,717)  (2,611,624)
                 - 
Basic and fully diluted loss per share $(0.03) $-       $(0.03)
                   
Weighted average number of shares outstanding  99,554,582   -  (a)  521,154   100,075,736 

 

Notes

(a)Reflects 100,002,492 shares outstanding as of September 30, 2021 plus 73,244 acquisition shares
(b)Represents amortization of intangible assets for the nine month period ended September 30, 2021

 

See notes to unaudited pro forma financial statements

 

 F-2 

 

 

Sollensys Corp and Abstract Media, LLC

Unaudited Proforma Consolidated Balance Sheets

For the Year Ended December 31, 2020

 

  Sollensys  Abstract         
  Corp  Media, LLC       Consolidated 
  December 31,  December 31,    Acquisition  December 31, 
  2020  2020    Entries  2020 
               
Assets              
Current assets:                  
Cash $129,624  $35,279  (b) $(30,000) $134,903 
Accounts receivable -net  -   78,987        78,987 
Inventory  54,000   -     -   54,000 
Other assets  -   4,300      -   4,300 
Total current assets  183,624   118,566     (30,000)  272,190 
Property and equipment, net     17,650        17,650 
Intangible assets     --   (b)(c)  284,598   284,598 
Total assets $183,624  $136,216    $254,598  $574,438 
                   
Liabilities and Stockholders’ Equity:                  
                   
Current Liabilities:                  
Accounts payable  and accrued liabilities $46,134  $85,468    $-  $131,602 
Customer deposits -short term  17,143   -        17,143 
Contract liabilities  -   14,016        14,016 
Note payable to member  -   80,000  (b)  (80,000)  - 
Total current liabilities  63,277   179,484     (80,000)  162,761 
Customer deposits -long term  72,857   -         72,857 
Total liabilities  136,134   179,484     (80,000)  235,618 
                   
Commitments and Contingencies  -   -     -   - 
                   
Stockholders’ Equity                  
  Common stock  99,355   -  (b)  73   99,428 
  Additional paid-in capital  3,390,213   -  (b)  366,147   3,756,360 
  Accumulated deficit  (3,442,078)  (43,268) (a)(b)(c)  (31,622)  (3,516,968)
  Total Stockholders’ Equity  47,490   (43,268)    334,598   338,820 
Total liabilities and Stockholders’ Equity $183,624  $136,216    $254,598  $574,438 

 

Notes

(a)Represents members deficit net of capital contributions and disbursements
(b)Reflects the issuance of 73,244 shares valued at the Company’s private placement memorandum price of 5.00 per share or a value of $336,220 plus $30,000 in cash and the reduction of $80,000 in debt to an LLC member. The Company estimates that all of the purchase price will be allocated to intangible assets with an estimated 10 year amortization period. These estimates will be subject to further analysis and adjustment by the Company as it completes its acquisition accounting
(c)To record amortization for the year ended December 31, 2020

 

See notes to unaudited pro forma financial statements

 

 F-3 

 

 

Sollensys Corp and Abstract Media, LLC

Unaudited Proforma Consolidated Statements of Operations

For the Year Ended December 31, 2020

 

  Sollensys  Abstract         
  Corp  Media, LLC       Consolidated 
  December 31,  December 31,    Acquisition  December 31, 
  2020(a)  2020    Entries  2020 
                   
Revenue $180,000  $593,006       $773,006 
Cost of sales  30,000   468,313        498,313 
Gross profit  150,000   124,693        274,693 
                   
Operating expenses                  
Depreciation and amortization  -   7,363  (c)   31,622    38,985 
Selling, general and administrative expenses  3,063,903   259,909         3,323,812 
Total operating expenses  3,063,903   267,272     31,622   3,362,797 
Loss from operations  (2,913,903)  (142,579)    (31,622)  (3,088,104)
                   
Other income (expense)                  
Gain from the extinguishment of debt  85,771   148,000        233,771 
Interest expense      (7,684)       (7,684)
Total other income  85,771   140,316        226,087 
Net loss $(2,828,132)  (2,263)    (31,622)  (2,862,017)
                   
Basic and fully diluted loss per share $(0.19) $-       $(0.03)
                   
Weighted average number of shares outstanding  14,910,512   -  (b)  85,165,224   100,075,736 

 

Notes

(a)Represents nine months ended December 31, 2020 due to the change of the Company’s year end on From 10-KT
(b)Reflects 100,002,492 shares outstanding as of September 30, 2021 plus 73,244 acquisition shares
(c)To record amortization for the year ended December 31, 2020

 

See notes to unaudited pro forma financial statements

 

 F-4