Exhibit 99.2
Unaudited Pro Forma Condensed Combined Financial Information
The accompanying unaudited pro forma condensed financial information have been prepared to present the balance sheet and statements of operations of Wave Sync Corp. (“WAVE”), to indicate how the consolidated financial statements of the Company might have looked like if the acquisition of Center Florence, Inc. (the “Company”) and transactions related to the acquisition had occurred as of the beginning of the periods presented.
The unaudited pro forma condensed combined balance sheet as of September 30, 2021 is presented as if the acquisition of the Company by WAVE had been occurred on September 30, 2021.
The unaudited pro forma condensed combined statements of operations for the nine months ended September 30, 2021, and year ended December, 31, 20120, are presented as if the acquisition of the Company had been occurred on January 1, 2021 and were carried forward through each of the aforementioned periods presented.
These pro forma condensed financial statements are presented for illustrative purposes only and are not intended to be indicative of actual consolidated financial position and consolidated results of operations had the purchase been in effect during the periods presented, or of consolidated financial condition or consolidated results of operations that may be reported in the future.
Note: The pro forma adjustments contained in the pro forma condensed financial statements relate to the assumptions of all prior and existing liabilities of the Company upon consummation of the purchase.
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PRO FORMA CONDENSED COMBINED BALANCE SHEETS
AS OF SEPTEMBER 30, 2021 (UNAUDITED)
(Stated in US Dollars)
Historical | Pro Forma | |||||||||||||||||
Wave Sync. Corp. | Center Florence, Inc. | Adjustments | Note 2 | Combined | ||||||||||||||
ASSETS | ||||||||||||||||||
Current assets | ||||||||||||||||||
Cash and cash equivalents | $ | 1,690,662 | $ | 21,789 | $ | 1,712,451 | ||||||||||||
Accounts receivable, net of allowance | 20,000 | 59,436 | 79,436 | |||||||||||||||
Inventory | - | 968 | 968 | |||||||||||||||
Prepaid expenses | - | 101,911 | 101,911 | |||||||||||||||
Other assets | - | 250 | 250 | |||||||||||||||
Due from related parties | 12,740 | 1,442,829 | (1,442,829 | ) | 1 | 12,740 | ||||||||||||
Total Current Assets | 1,723,402 | 1,627,183 | 1,907,756 | |||||||||||||||
Non-current assets | ||||||||||||||||||
Long term investment | 750,000 | - | 750,000 | |||||||||||||||
Property and Equipment, net | 94,063 | 7,954,918 | 8,048,981 | |||||||||||||||
Deferred Tax Assets | - | - | - | |||||||||||||||
Total Assets | $ | 2,567,465 | $ | 9,582,101 | $ | 10,706,736 | ||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||
Current liabilities | ||||||||||||||||||
Accounts payable | $ | - | $ | 361,494 | $ | 361,494 | ||||||||||||
Accrued expenses | 34,656 | 22,960 | 57,616 | |||||||||||||||
Short-term loans | - | 48,703 | 48,703 | |||||||||||||||
Security deposits from customers | - | 10,008 | 10,008 | |||||||||||||||
Other payables | - | 146,577 | 146,578 | |||||||||||||||
Taxes payable | 1,200 | - | 1,200 | |||||||||||||||
Due to related parties | 37,493 | 8,052,322 | (8,052,322 | ) | 1 | 37,493 | ||||||||||||
Total Current Liabilities | 73,349 | 8,642,064 | 663,091 | |||||||||||||||
Non-current liabilities | ||||||||||||||||||
Long-term loans | - | 1,444,608 | 1,444,608 | |||||||||||||||
Deferred tax liabilities | - | - | - | |||||||||||||||
Total Non-current liabilities | - | 1,444,608 | 1,444,608 | |||||||||||||||
Total Liabilities | $ | 73,349 | $ | 10,086,672 | $ | 2,107,699 | ||||||||||||
Commitment and contingencies | ||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||
Common Stock | $ | 11,865 | * | $ | 1 | 4,600 | * | 2 | $ | 16,465 | * | |||||||
(1 | ) | 3 | ||||||||||||||||
Additional paid in capital | 31,101,837 | * | 285,651 | 6,086,067 | * | 4 | 37,473,555 | * | ||||||||||
Retained earnings/(accumulated losses) | (28,361,062 | ) | (790,223 | ) | 518,826 | 4 | (28,632,459 | ) | ||||||||||
Accumulated other comprehensive loss | (258,524 | ) | - | (258,524 | ) | |||||||||||||
Total Shareholders’ Equity/(Deficits) | 2,494,116 | (504,571 | ) | 8,599,037 | ||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 2,567,465 | $ | 9,582,101 | $ | 10,706,736 |
* | The Common Stock and Additional paid in capital are retroactively restated to reflect the 5 to 1 reverse stock split performed by Wave Sync Corp. on November 1, 2021. |
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PRO FORMA CONDENSED COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (UNAUDITED)
(Stated in US Dollars)
Historical | Pro Forma | |||||||||||||||||
Wave Sync. Corp. | Center Florence, Inc. | Adjustments | Note 2 | Combined | ||||||||||||||
Revenue | $ | - | $ | 1,241,183 | $ | 1,241,183 | ||||||||||||
Cost of revenue | - | 149,791 | 149,791 | |||||||||||||||
Gross profit | - | 1,091,392 | 1,091,392 | |||||||||||||||
Operating expenses | - | |||||||||||||||||
Selling and marketing expenses | - | - | - | |||||||||||||||
General and administrative expenses | 1,228,504 | 1,395,982 | 2,624,486 | |||||||||||||||
Financial expenses | 719 | - | 719 | |||||||||||||||
Total Operating expenses | 1,229,223 | 1,395,982 | 2,625,205 | |||||||||||||||
Loss from operations | (1,229,223 | ) | (304,590 | ) | (1,533,813 | ) | ||||||||||||
Other income (expenses) | - | |||||||||||||||||
Interest income | - | - | - | |||||||||||||||
Interest expense | - | - | - | |||||||||||||||
Other expenses | - | - | - | |||||||||||||||
Other income | - | 33,193 | 33,193 | |||||||||||||||
Gain from extinguishment of debt | - | - | - | |||||||||||||||
Total other (expenses) income, net | - | 33,193 | 33,193 | |||||||||||||||
Loss before income tax expenses | (1,229,223 | ) | (271,397 | ) | (1,500,620 | ) | ||||||||||||
Income tax expenses | - | - | - | |||||||||||||||
Net loss | $ | (1,229,223 | ) | $ | (271,397 | ) | $ | (1,500,620 | ) |
F-3
PRO FORMA CONDENSED COMBINED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2020
(Stated in US Dollars)
Historical | Pro Forma | |||||||||||||||||
Wave Sync. Corp. | Center Florence, Inc. | Adjustments | Note 2 | Combined | ||||||||||||||
Revenue | $ | - | $ | 1,298,538 | $ | 1,298,538 | ||||||||||||
Cost of revenue | - | 173,120 | 173,120 | |||||||||||||||
Gross profit | - | 1,125,418 | 1,125,418 | |||||||||||||||
Operating expenses | - | |||||||||||||||||
Selling and marketing expenses | - | - | - | |||||||||||||||
General and administrative expenses | 39,438 | 2,206,825 | 2,246,263 | |||||||||||||||
Financial expenses | 13 | - | 13 | |||||||||||||||
Total Operating expenses | 39,451 | 2,206,825 | 2,246,276 | |||||||||||||||
Loss from operations | (39,451 | ) | (1,081,407 | ) | (1,120,858 | ) | ||||||||||||
Other income (expenses) | - | |||||||||||||||||
Interest income | - | 91 | 91 | |||||||||||||||
Gain from extinguishment of debt | - | 141,400 | 141,400 | |||||||||||||||
Total other (expenses) income, net | - | 141,491 | 141,491 | |||||||||||||||
Loss before income tax expenses | (39,451 | ) | (939,916 | ) | (979,367 | ) | ||||||||||||
Income tax expenses | - | - | - | |||||||||||||||
Net loss | $ | (39,451 | ) | $ | (939,916 | ) | $ | (979,367 | ) |
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Notes to Pro Forma Condensed Financial Statements
Note 1 – Basis of Presentation
The pro forma condensed combined balance sheet as of September 30, 2021, and the pro forma condensed combined statements of operations for the period ended September 30, 2021 and year ended December 31, 2020, are based on the historical financial statements of the Company and Center Florence after giving effect of the acquisition by the Company on December 31, 2020, and the assumptions, reclassifications and adjustments described in the accompanying notes to the unaudited pro forma condensed combined financial information.
Note 2 –Adjustments
1) | To eliminate assets and liabilities retained by shareholder of the Company |
2) | To record issuance of share by WAVE to shareholder of the Company |
3) | To eliminate paid in capital for Center Florence’s shares |
4) | To eliminate the Company’s shareholder’s equity for consolidation as of September 30, 2021. |
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