Exhibit 99.2
ASIAFIN HOLDINGS CORP
UNAUDITED PRO FORMA CONDENSED BALANCE SHEET
AS OF DECEMBER 31, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares or otherwise stated)
Historical | |||||||||||||||||
AsiaFIN Holdings Corp. | StarFIN Holdings Limited | Pro Forma Adjustments | Pro Forma Combined | ||||||||||||||
ASSETS | |||||||||||||||||
Current assets | |||||||||||||||||
Cash and cash equivalents | $ | 874,690 | $ | 705,480 | $ | - | $ | 1,580,170 | |||||||||
Trade receivables, net | - | 676,396 | - | 676,396 | |||||||||||||
Prepayment, deposits and other receivables | 3,000 | 202,414 | (3,000 | ) | (1) | 202,414 | |||||||||||
Tax assets | - | 539,096 | - | 539,096 | |||||||||||||
Total current assets | $ | 877,690 | $ | 2,123,386 | $ | $ | 2,998,076 | ||||||||||
Non-current Assets | |||||||||||||||||
Right-of-use assets, net | $ | - | $ | 134,807 | $ | - | $ | 134,807 | |||||||||
Property, plant and equipment, net | - | 413,922 | - | 413,922 | |||||||||||||
Other investment | 171,894 | 171,894 | |||||||||||||||
Deferred income tax assets | - | 873 | - | 873 | |||||||||||||
Investment in associates | - | 8,657 | - | 8,657 | |||||||||||||
Total non-current assets | $ | - | $ | 730,153 | $ | - | $ | 730,153 | |||||||||
TOTAL ASSETS | $ | 877,690 | $ | 2,853,539 | $ | (3,000 | ) | $ | 3,728,229 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||
Current liabilities | |||||||||||||||||
Other payables and accrued liabilities | $ | 17,805 | $ | 734,476 | $(2,965) | (1) | $ | 749,316 | |||||||||
Trade payable | - | 24,736 | - | 24,736 | |||||||||||||
Income tax payable | 3,357 | 207,490 | - | 210,847 | |||||||||||||
Amount due to director | - | 283,703 | - | 283,703 | |||||||||||||
Amount due to related parties | - | 1,673 | 5 | (2) | 1,678 | ||||||||||||
Hire purchase – current portion | - | 11,601 | - | 11,601 | |||||||||||||
Lease liability – current portion | - | 84,361 | - | 84,361 | |||||||||||||
Total current liabilities | $ | 21,162 | $ | 1,348,040 | $ | (2,960 | ) | $ | 1,366,242 | ||||||||
Non-current liabilities | |||||||||||||||||
Hire purchase – non-current portion | $ | - | $ | 4,953 | $ | - | $ | 4,953 | |||||||||
Lease liability – non-current portion | - | 50,446 | - | 50,446 | |||||||||||||
Deferred tax liabilities | - | 6,034 | - | 6,034 | |||||||||||||
Total non-current liabilities | $ | $ | 61,433 | $ | - | $ | 61,433 | ||||||||||
TOTAL LIABILITIES | $ | 21,162 | $ | 1,409,473 | $ | - | $ | 1,427,675 | |||||||||
STOCKHOLDERS’ DEFICIT | |||||||||||||||||
Common stock | $ | 7,332 | $ | 10,000 | $(9,177 | ) | (3) | $ | 8,155 | ||||||||
Additional paid-in capital | 1,413,268 | 2,538,271 | 6,516,148 | (3) | 10,467,687 | ||||||||||||
Accumulated other comprehensive income | - | (333,066 | ) | - | (333,066 | ) | |||||||||||
Accumulated deficit | (564,072 | ) | (771,139 | ) | (6,507,011 | ) | (3) | (7,842,222 | ) | ||||||||
TOTAL STOCKHOLDERS’ DEFICIT | $ | 856,528 | $ | 1,444,066 | $ | (40 | ) | $ | 2,300,554 | ||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 877,690 | $ | 2,853,539 | $ | (3,000 | ) | $ | 3,728,229 |
See accompanying notes to consolidated financial statements.
ASIAFIN HOLDINGS CORP
UNAUDITED PRO FORMA CONDENSED STATEMENT OF COMPREHENSIVE INCOME
FOR YEAR ENDED DECEMBER 31, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares or otherwise stated)
Historical | |||||||||||||||||
AsiaFIN Holdings Corp. | StarFIN Holdings Limited | Pro Forma Adjustments | Pro Forma Combined | ||||||||||||||
REVENUE | $ | - | $ | 2,854,319 | $ | - | $ | 2,854,319 | |||||||||
COST OF REVENUE | - | (196,247 | ) | - | (196,247 | ) | |||||||||||
GROSS PROFIT | $ | - | $ | 2,658,072 | $ | - | $ | 2,658,072 | |||||||||
OPERATING EXPENSES | |||||||||||||||||
General and administrative | (122,283 | ) | (2,348,325 | ) | (40 | ) | (4) | (2,470,648 | ) | ||||||||
(LOSS) / PROFIT FROM OPERATION BEFORE INCOME TAX | (122,283 | ) | 309,747 | (40 | ) | (4) | 187,424 | ||||||||||
INTEREST INCOME | 14,080 | 10,293 | 24,373 | ||||||||||||||
(LOSS) / PROFIT BEFORE INCOME TAX | $ | (108,203 | ) | $ | 320,040 | $ | (40 | ) | (4) | $ | 211,797 | ||||||
INCOME TAX EXPENSES | (3,999 | ) | (204,149 | ) | - | (208,148 | ) | ||||||||||
NET (LOSS) / PROFIT | $ | (112,202 | ) | $ | 115,891 | $ | (40 | ) | (4) | $ | 3,649 | ||||||
NET INCOME PER SHARE, BASIC AND DILUTED | (0.00 | ) | (0.00 | ) | |||||||||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED | 73,319,800 | 73,319,800 |
ASIAFIN HOLDINGS CORP
NOTES TO UNAUDITED PRO FORMA CONDENSE FINANCIAL STATEMENTS
FOR YEARS ENDED DECEMBER 31, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares or otherwise stated)
Noted 1 Acquisition Agreement with StarFIN Holdings Limited
On December 22, 2022 AsiaFIN Holdings Corp. (the “Company”) entered into an acquisition agreement (the “Agreement”) with Wong Kai Cheong, Hoo Swee Ping, Ang Teck Kong, Ng Kai Thim, and Cham Hui Yin (the “Vendors”), shareholders of StarFIN Holdings Limited. (“SFHL”).
Pursuant to the Agreement, the Vendors have agreed to sell to the Company an 100% equity stake in SFHL in consideration of a new issuance of 8,232,038 restricted shares of the Company’s common stock, valued at $9,055,242. The consideration was derived from an agreed valuation of SFHL at $9,055,242.
On January 23, 2023, the Company consummated the acquisition of equity in SFHL concurrently on January 23, 2023, 8,232,038 restricted shares were issued to shareholders of SFHL.
The acquisition of SFHL has been accounted for under the purchase method of accounting in accordance with Statement of Financial Accounting Standards No. 141, “Business Combinations.” Under the purchase method of accounting, the purchase price is allocated to the assets acquired and liabilities assumed based on their estimated fair values.
The allocation of the purchase price has been prepared based on preliminary estimates of fair values. However, actual amounts recorded upon the finalization of estimates of fair values may differ from the information presented in these unaudited pro forma condensed combined consolidated financial statements. The Company estimates of the fair values of the assets and liabilities of SFHL have been combined with the recorded values of the assets and liabilities of SFHL in the audited condensed combined financial information, goodwill was immediately impaired upon recognition. Allocation of the purchase price is summarized below:
Cash and cash equivalents | $ | 705,480 | ||
Trade receivables, net | 676,396 | |||
Deposits paid, prepayments and other receivables | 202,414 | |||
Tax assets | 539,969 | |||
Investment in Associates – Murni StarFIN Sdn. Bhd. | 8,657 | |||
Property, plant and equipment, net | 585,816 | |||
Trade payable | (24,736 | ) | ||
Accrued expenses and other payables | (734,476 | ) | ||
Deferred tax liabilities | (213,524 | ) | ||
Hire purchase loan | (16,554 | ) | ||
Amount due to directors | (283,703 | ) | ||
Amount due to related parties | (1,673 | ) | ||
Adjustment for foreign exchange fluctuation | 333,066 | |||
Fair value of StarFIN Holdings Limited | $ | 1,777,132 | ||
Fair value of consideration | (9,055,242 | ) | ||
Goodwill | $ | 7,278,110 | ||
Goodwill impairment | (7,278,110 | ) |
Note 2 Pro Forma Adjustments
(1) | Elimination of inter-company balances between the Company and SFHL pursuant to a rental deposit paid by AsiaFIN Holdings Limited (HK), a subsidiary of the Company and a rental deposit received by Insite MY Innovations Sdn. Bhd., a subsidiary of SFHL, amounted $3,000, difference of $35 were caused by foreign exchange losses. | |
(2) | Elimination of inter-company balances and transaction between the Company and SFHL pursuant to a postage and courier expenses paid by OrangeFIN Academy Sdn. Bhd., a subsidiary of the SFHL on behalf of AsiaFIN Holdings Corp. (Labuan), a subsidiary of the Company, amounted $5. | |
(3) | The Company issued additional 8,232,038 shares of restricted common stock with par value $0.0001 at $1.10 per share for total consideration of $9,055,242. Details of transaction as following: |
Shares of restricted common stock issued | 8,232,038 | |||
Common stock recognition at par value of $0.0001 per share | $ | 823 | ||
Elimination of subsidiary common stock upon consolidation | (10,000 | ) | ||
Pro-forma adjustment on common stock | $ | (9,177 | ) | |
Additional paid in capital recognized at $1.0999 per share | $ | 9,054,419 | ||
Elimination of subsidiary additional paid in capital upon consolidation | (2,538,271 | ) | ||
Pro-forma adjustment on additional paid in capital | $ | 6,516,148 | ||
Goodwill impairment pursuant to purchase price allocation | $ | 7,278,110 | ||
Elimination of subsidiary accumulated deficit upon consolidation | (771,139 | ) | ||
Realized of foreign exchange pursuant to note 1 | 35 | |||
Inter-company balances pursuant to note 2 | 5 | |||
Pro-forma adjustment on accumulated deficit | $ | 6,507,011 |
(4) | Include realized foreign exchange loss pursuant to note 1 and postage and courier expenses pursuant to note 2. |