Exhibit 99.2
PRO FORMA CONDENSED COMBINED BALANCE SHEET (UNAUDITED)
as of December 31, 2018
in USD | NCF Wealth Holdings Limited | Hunter Maritime Acquisition Corp. | Pro Forma Adjustment | Pro Forma Adjustment | Pro Forma Adjustment | Pro Forma Adjustment | Pro Forma Adjustment | Pro Forma Balance Sheet | ||||||||||||||||||||||||
A | B | C | D | E | F | G | ||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
NON-CURRENT ASSETS | 14,854,924 | - | - | - | - | - | - | 14,854,924 | ||||||||||||||||||||||||
Deferred tax assets | 5,874,935 | - | - | - | - | - | - | 5,874,935 | ||||||||||||||||||||||||
Equipment and software, net | 1,960,673 | - | - | - | - | - | - | 1,960,673 | ||||||||||||||||||||||||
Long-term equity investment | 6,345,216 | - | - | - | - | - | - | 6,345,216 | ||||||||||||||||||||||||
Long-term other receivable | 570,539 | - | - | - | - | - | - | 570,539 | ||||||||||||||||||||||||
Goodwill | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Other non-current assets | 103,561 | - | - | - | - | - | - | 103,561 | ||||||||||||||||||||||||
CURRENT ASSETS | 194,111,513 | 22,218,241 | 600,000 | - | - | - | - | 216,929,754 | ||||||||||||||||||||||||
Cash | 4,750,734 | 140,517 | 600,000 | 22,074,404 | - | - | - | 27,565,655 | ||||||||||||||||||||||||
Cash and Investments held in the Trust Account | - | 22,074,404 | - | (22,074,404 | ) | - | - | - | - | |||||||||||||||||||||||
Restricted cash | 13,959,012 | - | - | - | - | - | - | 13,959,012 | ||||||||||||||||||||||||
Accounts receivable | 18,463,450 | - | - | - | - | - | - | 18,463,450 | ||||||||||||||||||||||||
Accounts receivable – related parties | 221,394 | - | - | - | - | - | - | 221,394 | ||||||||||||||||||||||||
Advances to suppliers | 8,802,673 | - | - | - | - | - | - | 8,802,673 | ||||||||||||||||||||||||
Other receivables | 1,531,282 | - | - | - | - | - | - | 1,531,282 | ||||||||||||||||||||||||
Advances to Suppliers & Other receivables - related parties | 3,353,455 | - | - | - | - | - | - | 3,353,455 | ||||||||||||||||||||||||
Loan receivable – related parties | 139,033,485 | - | - | - | - | - | - | 139,033,485 | ||||||||||||||||||||||||
Prepaid expenses and other current assets | - | 3,320 | - | - | - | - | - | 3,320 | ||||||||||||||||||||||||
Other current assets | 3,996,028 | - | - | - | - | - | - | 3,996,028 | ||||||||||||||||||||||||
TOTAL ASSETS | 208,966,437 | 22,218,241 | 600,000 | - | - | - | - | 231,784,678 | ||||||||||||||||||||||||
EQUITY and LIABILITIES | ||||||||||||||||||||||||||||||||
EQUITY | 132,104,400 | 5,000,001 | (5,162 | ) | 10,930,113 | - | (2,044,000 | ) | (4,250,000 | ) | 141,735,352 | |||||||||||||||||||||
Series B preferred shares | 294 | - | - | - | (294 | ) | - | - | - | |||||||||||||||||||||||
Series C-1 preferred shares | 247 | - | - | - | (247 | ) | - | - | - | |||||||||||||||||||||||
Ordinary shares | 10,916 | 489 | - | 10,930,113 | 541 | - | - | 10,942,059 | ||||||||||||||||||||||||
Shares in employee benefit trust | (4,077,600 | ) | - | - | - | - | - | - | (4,077,600 | ) | ||||||||||||||||||||||
Additional paid-in capital | 139,879,319 | 7,331,343 | - | - | - | - | - | 147,210,662 | ||||||||||||||||||||||||
Statutory reserve | 721,818 | - | - | - | - | - | - | 721,818 | ||||||||||||||||||||||||
Accumulated deficit | (3,992,000 | ) | (2,331,831 | ) | (5,162 | ) | - | - | (2,044,000 | ) | (4,250,000 | ) | (12,622,993 | ) | ||||||||||||||||||
Accumulated other comprehensive income | (715,921 | ) | - | - | - | - | - | - | (715,921 | ) | ||||||||||||||||||||||
Non-controlling interest | 277,327 | - | - | - | - | - | - | 277,327 | ||||||||||||||||||||||||
NON-CURRENT LIABILITIES | 4,077,000 | - | - | - | - | - | - | 4,077,000 | ||||||||||||||||||||||||
Long-term loan - related parties | 4,077,000 | - | - | - | - | - | - | 4,077,000 | ||||||||||||||||||||||||
Other long-term liabilities | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
CURRENT LIABILITIES | 72,785,037 | 17,218,240 | 605,162 | (10,930,113 | ) | - | 2,044,000 | 4,250,000 | 85,972,326 | |||||||||||||||||||||||
Common stock subject to possible redemption | - | 10,930,113 | - | (10,930,113 | ) | - | - | - | - | |||||||||||||||||||||||
Accounts payable | - | 37,749 | - | - | - | - | - | 37,749 | ||||||||||||||||||||||||
Accrued expenses | - | 139,793 | 5,162 | - | - | - | - | 144,955 | ||||||||||||||||||||||||
Deferred underwriting fees | - | 5,310,585 | - | - | - | - | - | 5,310,585 | ||||||||||||||||||||||||
Unsecured promissory notes | - | 800,000 | 600,000 | - | - | - | - | 1,400,000 | ||||||||||||||||||||||||
Bank borrowings | 13,536,894 | - | - | - | - | - | - | 13,536,894 | ||||||||||||||||||||||||
Accrued marketing and channel fees | 12,203,906 | - | - | - | - | - | - | 12,203,906 | ||||||||||||||||||||||||
Accrued marketing and channel fees – related parties | 442,787 | - | - | - | - | - | - | 442,787 | ||||||||||||||||||||||||
Accruals and other liabilities | 6,444,042 | - | - | - | - | 2,044,000 | 4,250,000 | 12,738,042 | ||||||||||||||||||||||||
Accruals and other liabilities - related parties | 24,606,596 | - | - | - | - | - | - | 24,606,596 | ||||||||||||||||||||||||
Taxes payable | 15,100,313 | - | - | - | - | - | - | 15,100,313 | ||||||||||||||||||||||||
Amount due to related parties | 450,499 | - | - | - | - | - | - | 450,499 | ||||||||||||||||||||||||
TOTAL EQUITY and LIABILITIES | 208,966,437 | 22,218,241 | 600,000 | - | - | - | - | 231,784,678 |
NOTES TO THE PRO FORMA CONDENSED COMBINED BALANCE SHEET
as of December 31, 2018
Pro Forma Adjustments to the Unaudited Condensed Combined Balance Sheet
A | Derived from the unaudited consolidated balance sheet of NCF as of September 30, 2018. |
B | Derived from the audited consolidated balance sheet of HMAC as of December 31, 2018. |
Financing transactions occurring subsequent to the respective balance sheet dates but prior to the consummation of the Merger, including:
C | To reflect the loans from CMB to HMAC as per January 29, 2019 and February 25, 2019 for an amount of $200,000 and $400,000 respectively and the related notes issued as unsecured promissory notes. |
Pro forma adjustments relating to the consummation of the Merger, including:
D | To reflect the release of cash from investments held in the Trust Account. The assumption is made that there are no redemptions upon completion of the Initial Business Combination ("IBC"). |
E | To reflect the conversion of preferred shares to ordinary shares upon the occurrence of a succesful Initial Business Combination ("IBC"), i.e. Initial Public Offering ("IPO") of NCF. |
F | To reflect the payment of $2,044,000 made by HMAC, including legal fees and other professional fees related to the merger. |
G | To reflect the payment of $1,250,000 made by NCF, including legal fees and other professional fees related to the merger. In addition $3,000,000 of financial advisory fees of NCF to the financial advisor EarlyBirdCapital. |
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS (UNAUDITED)
For the year ended December 31, 2018
in USD | NCF Wealth Holdings Limited | Hunter Maritime Acquisition Corp. | Pro Forma Adjustment | Pro Forma Adjustment | Pro Forma Adjustment | Pro Forma Income Statement | ||||||||||||||||||
A | B | C | D | E | ||||||||||||||||||||
Net revenue | 260,584,708 | - | - | - | - | 260,584,708 | ||||||||||||||||||
Transaction and service fee | 232,275,488 | - | - | - | - | 232,275,488 | ||||||||||||||||||
Transaction and service fee - related parties | 5,287,115 | - | - | - | - | 5,287,115 | ||||||||||||||||||
Commission fee | 9,211,023 | - | - | - | - | 9,211,023 | ||||||||||||||||||
Commission fee - related parties | 1,226,550 | - | - | - | - | 1,226,550 | ||||||||||||||||||
Other revenue | 12,466,568 | - | - | - | - | 12,466,568 | ||||||||||||||||||
Other revenue - related parties | 117,964 | - | - | - | - | 117,964 | ||||||||||||||||||
Sales and marketing expenses | (165,055,283 | ) | - | - | - | - | (165,055,283 | ) | ||||||||||||||||
Product development expenses | (17,894,492 | ) | - | - | - | - | (17,894,492 | ) | ||||||||||||||||
Loan facilitation and servicing expenses | (3,937,858 | ) | - | - | - | - | (3,937,858 | ) | ||||||||||||||||
General and administrative expenses | (13,802,873 | ) | (949,114 | ) | - | (2,044,000 | ) | (4,250,000 | ) | (21,045,987 | ) | |||||||||||||
Result from operating activities | 59,894,202 | (949,114 | ) | - | (2,044,000 | ) | (4,250,000 | ) | 52,651,088 | |||||||||||||||
Interest and other income | 7,765,052 | 1,482,889 | - | - | - | 9,247,941 | ||||||||||||||||||
Interest and other expenses | (65,987 | ) | (2,084,127 | ) | (5,162 | ) | - | - | (2,155,276 | ) | ||||||||||||||
Foreign currency transaction (loss) gain | (1,065,074 | ) | - | - | - | - | (1,065,074 | ) | ||||||||||||||||
Loss in equity method investment | (215,380 | ) | - | - | - | - | (215,380 | ) | ||||||||||||||||
Gain on sale of equity interest in a subsidiary | 172,531 | - | - | - | - | 172,531 | ||||||||||||||||||
Loss on sale of equity interest in a subsidiary | (72,995 | ) | - | - | - | - | (72,995 | ) | ||||||||||||||||
Income from available-for-sale financial assets | 302,316 | - | - | - | - | 302,316 | ||||||||||||||||||
Other miscellaneous income (expenses) | 58,647 | - | - | - | - | 58,647 | ||||||||||||||||||
Profit/(loss) before tax | 66,773,312 | (1,550,352 | ) | (5,162 | ) | (2,044,000 | ) | (4,250,000 | ) | 58,923,798 | ||||||||||||||
Income tax benefit/(expense) | (15,376,947 | ) | - | - | - | - | (15,376,947 | ) | ||||||||||||||||
Net profit/(loss) | 51,396,365 | (1,550,352 | ) | (5,162 | ) | (2,044,000 | ) | (4,250,000 | ) | 43,546,851 | ||||||||||||||
Other comprehensive income/(loss) | ||||||||||||||||||||||||
Foreign currency translation adjustment | (2,802,408 | ) | - | - | - | - | (2,802,408 | ) | ||||||||||||||||
Total comprehensive income/(loss) | 48,593,957 | (1,550,352 | ) | (5,162 | ) | (2,044,000 | ) | (4,250,000 | ) | 40,744,443 | ||||||||||||||
Net (loss)/profit | ||||||||||||||||||||||||
- Attributable to equity shareholders of the Company | 51,468,035 | (1,550,352 | ) | (5,162 | ) | (2,044,000 | ) | (4,250,000 | ) | 43,618,521 | ||||||||||||||
- Attributable to non-controlling interests | (71,670 | ) | - | - | - | - | (71,670 | ) | ||||||||||||||||
Total comprehensive (loss)/income | ||||||||||||||||||||||||
- Attributable to equity shareholders of the Company | 48,519,061 | (1,550,352 | ) | (5,162 | ) | (2,044,000 | ) | (4,250,000 | ) | 40,669,547 | ||||||||||||||
- Attributable to non-controlling interests | 74,896 | - | - | - | - | 74,896 | ||||||||||||||||||
Weighted average shares outstanding, basic | 3,793,275 | 205,967,025 | ||||||||||||||||||||||
Net (loss)/income per common share, basic | (0.41 | ) | 0.21 |
NOTES TO THE PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
For the year ended December 31, 2018
Pro Forma Adjustments to the Unaudited Condensed Statement of Operations
A | LTM unaudited consolidated income statement of NCF for the 12 months ended September 30, 2018. |
B | Derived from the audited consolidated income statement of HMAC for the year ended December 31, 2018. |
C | Represents interest payments on the loans from CMB to HMAC as per November 6, 2018, December 19, 2018, January 29, 2019 and February 25, 2019 for an amount of $500,000, $300,000, $200,000 and $400,000 respectively and the related notes issued. Interest rate is set at 3 months USD Libor + 0.60%. |
D | To reflect the payment of $2,044,000 made by HMAC, including legal fees and other professional fees related to the merger. |
E | To reflect the payment of $1,250,000 made by NCF, including legal fees and other professional fees related to the merger. In addition $3,000,000 of financial advisory fees of NCF to the financial advisor EarlyBirdCapital. |