Exhibit 99.2
SCHMITT INDUSTRIES, INC.
Unaudited Pro Forma Consolidated Statements of Operations
Three Months Ended August 31, | Pro Forma | Adjusted | ||||||||||||||
2021 | 2020 | Adjustment | 8/31/2021 | |||||||||||||
Net sales | $ | 3,759,175 | $ | 1,507,485 | $ | — | $ | 3,759,175 | ||||||||
Cost of revenue | 1,349,975 | 899,841 | — | 1,349,975 | ||||||||||||
Gross profit | 2,409,200 | 607,644 | — | 2,409,200 | ||||||||||||
Operating expenses | ||||||||||||||||
General, administrative and sales | 4,130,686 | 2,086,716 | — | 4,130,686 | ||||||||||||
Transaction costs | — | 125,167 | — | — | ||||||||||||
Research & development | 9,265 | 17,453 | — | 9,265 | ||||||||||||
Total operating expenses | 4,139,951 | 2,229,336 | — | 4,139,951 | ||||||||||||
Operating loss | (1,730,751 | ) | (1,621,692 | ) | — | (1,730,751 | ) | |||||||||
Bargain purchase gain | — | 1,271,615 | — | — | ||||||||||||
Gain on Sale of Building | — | — | 4,576,403 | 4,576,403 | ||||||||||||
Forgiveness of PPP loans | 588,534 | — | — | 588,534 | ||||||||||||
Interest expense | (11,276 | ) | (2,511 | ) | — | (11,276 | ) | |||||||||
Other income (expense), net | 112,029 | 98,580 | — | 112,029 | ||||||||||||
Loss before income taxes | (1,041,464 | ) | (254,008 | ) | 4,576,403 | 3,534,939 | ||||||||||
Income tax provision (benefit) | 3,575 | (404,667 | ) | — | 3,575 | |||||||||||
Net income (loss) | $ | (1,045,039 | ) | $ | 150,659 | $ | 4,576,403 | $ | 3,531,364 | |||||||
Net income (loss) per common share: | ||||||||||||||||
Basic | $ | (0.28 | ) | $ | 0.04 | $ | 1.21 | $ | 0.93 | |||||||
Weighted average number of common shares, basic | 3,780,439 | 3,763,752 | 3,780,439 | 3,780,439 | ||||||||||||
Diluted | $ | (0.28 | ) | $ | 0.04 | $ | 1.21 | $ | 0.93 | |||||||
Weighted average number of common shares, diluted | 3,780,439 | 3,776,494 | 3,780,439 | 3,780,439 |
SCHMITT INDUSTRIES, INC.
Unaudited Pro Forma Consolidated Balance Sheet
Pro Forma | Adjusted | |||||||||||||||
August 31, 2021 | May 31, 2021 | Adjustment | August 31, 2021 | |||||||||||||
ASSETS | ||||||||||||||||
Current assets | ||||||||||||||||
Cash and cash equivalents | $ | 2,725,643 | $ | 4,032,690 | $ | 4,723,346 | $ | 7,448,989 | ||||||||
Accounts receivable, net | 981,421 | 1,154,645 | — | 981,421 | ||||||||||||
Inventories, net | 1,823,337 | 1,553,310 | — | 1,823,337 | ||||||||||||
Prepaid expenses | 203,625 | 198,345 | — | 203,625 | ||||||||||||
Other current assets | 264,476 | — | — | 264,476 | ||||||||||||
Income tax receivable | 3,676 | 18,057 | 3,676 | |||||||||||||
Total current assets | 6,002,178 | 6,957,047 | 4,723,346 | 10,725,524 | ||||||||||||
Leasehold assets | 10,131,277 | 10,448,486 | 10,131,277 | |||||||||||||
Property and equipment, net | 2,831,052 | 2,824,017 | (2,475 | ) | 2,828,577 | |||||||||||
Property and equipment held for sale, net | 174,847 | 174,847 | (174,847 | ) | — | |||||||||||
Leasehold, utilities, and ERP deposits | 513,946 | 431,808 | — | 513,946 | ||||||||||||
Other assets | ||||||||||||||||
Intangible assets, net | 305,846 | 337,725 | — | 305,846 | ||||||||||||
TOTAL ASSETS | $ | 19,959,146 | $ | 21,173,930 | $ | 4,546,024 | $ | 24,505,170 | ||||||||
LIABILITIES & STOCKHOLDERS' EQUITY | ||||||||||||||||
Current liabilities | ||||||||||||||||
Accounts payable | $ | 604,219 | $ | 583,750 | $ | — | $ | 604,219 | ||||||||
Accrued commissions | 49,806 | 60,614 | — | 49,806 | ||||||||||||
Accrued payroll liabilities | 616,168 | 527,608 | — | 616,168 | ||||||||||||
Accrued liabilities | 627,532 | 465,146 | — | 627,532 | ||||||||||||
Customer deposits and prepayments | 143,273 | 93,364 | (30,379 | ) | 112,894 | |||||||||||
Other accrued liabilities | 738,650 | 694,590 | — | 738,650 | ||||||||||||
Current portion of long-term lease liabilities | 815,141 | 1,042,331 | — | 815,141 | ||||||||||||
Current portion of long-term debt | 670,517 | 541,691 | — | 670,517 | ||||||||||||
Total current liabilities | 4,265,306 | 4,009,094 | (30,379 | ) | 4,234,927 | |||||||||||
Long-term debt | 2,800,505 | 3,253,389 | 2,800,505 | |||||||||||||
Long-term leasehold liabilities | 10,141,864 | 10,141,864 | 10,141,864 | |||||||||||||
Total liabilities | 17,207,675 | 17,404,347 | (30,379 | ) | 17,177,296 | |||||||||||
Stockholders' equity | ||||||||||||||||
Common stock, no par value, 20,000,000 shares authorized, 4,218,530 and 3,800,479 shares issued and outstanding at August 31, 2021, respectively; and 4,204,553 and 3,786,502 shares issued and outstanding at May 31, 2021, respectively | 12,250,286 | 12,223,359 | — | 12,250,286 | ||||||||||||
Accumulated deficit | (9,498,815 | ) | (8,453,776 | ) | 4,576,403 | (4,922,412 | ) | |||||||||
Total stockholders' equity | 2,751,471 | 3,769,583 | 4,576,403 | 7,327,874 | ||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 19,959,146 | $ | 21,173,930 | $ | 4,546,024 | $ | 24,505,170 |