Form: 8-K/A

Current report filing

July 31, 2019

Documents

Exhibit 99.2

 

 

TIMEFIREVR INC.
UNAUDITED  PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEETS
As of April 30, 2019
                     
                     
      Red Cat Propware, Inc.     TimeFire VR Inc.       Pro-Forma Adjustments       Notes       Pro-forma Combined  
                                       
ASSETS                                      
Current Assets:                                      
Cash   $ 503,438     659                     $ 504,097  
Cryptocurrencies           8,162                       8,162  
Interest Receivable           14,930                       14,930  
Miscellaneous Receivable           22,500                       22,500  
Accounts Receivable           1,532                       1,532  
Prepaid expenses     100,000     14,470                       114,470  
TOTAL CURRENT ASSETS   $ 603,438     62,253     $ —               $ 665,691  
                                       
Other Assets:                                      
Property and equipment, net   $ —       75,650     $ (72,650 )      a      $ 3,000  
Depreciation     —                               —    
TOTAL ASSETS   $ 603,438     137,903     $ (72,650 )           $ 668,691  
                                       
                                       
LIABILITIES AND STOCKHOLDERS' EQUITY                                
Current Liabilities:                                      
Accounts payable and accrued expenses   $ 20,894     137,131                     $ 158,025  
Convertible notes payable, net           2,120,329       (2,120,329 )      b        —    
Accrued Interest           601,910       (601,910 )      b        —    
Payroll liabilities     13,316                             13,316  
Common shares to be issued     754,700                             754,700  
Capital to be returned     1,800                             1,800  
Total Current Liabilities   $ 790,710     2,859,370     $ (2,722,239 )           $ 927,841  
                                       
Long Term Liabilities:                                      
Derivatives liabilities           82,374                     $ 82,374  
Total Long Terms Liabilities     —       82,374                       82,374  
TOTAL LIABILITIES   $ 790,710     2,941,744     $ (2,722,239 )           $ 1,010,215  
                                       
Commitments and contingencies                                      
                                       
Stockholders' Equity/Deficit:                                      
Preferred stock - shares authorized 10,000,000; outstanding 0 and 0                                      
Common stock - shares authorized 90,000,000; outstanding 5,330,000     5,330                             5,330  
New Preferred Series A stock, par value $.01 per share, 100 shares authorized; 100 shares issued and outstanding at March 31, 2019           1                       1  
Preferred Series E stock, par value $.01 per share, 122,190 shares issued and outstanding at March 31, 2019           1,222                       1,222  
Common stock, par value $.001 per share, 500,000,000 shares authorized; 235,460,470 shares issued and outstanding at March 31, 2019           235,460                       235,460  
Obligation to issue common stock           1,000                       1,000  
Additional paid-in capital     779,220     2,656,954                       3,436,174  
Accumulated deficit     (971,822 )   (5,698,478 )     72,650        a        (6,597,650 )
Total Stockholders' Equity     (187,272 )   (2,803,841 )     72,650.00               (2,918,463 )
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 603,438     137,903     $ (2,649,589 )           $ (1,908,248 )

 

     

 

TIMEFIREVR INC.
UNAUDITED  PRO FORMA CONDENSED CONSOLIDATED OPERATIONS
As of April 30, 2019
                     
                     

    Red Cat Propware, Inc.   TimeFire VR Inc.   Pro-Forma Adjustments   Notes   Pro-forma Combined
                 
REVENUES                                    
Revenue   $ —       $ 109,942                     $109,942
Cost of revenues     —         209,607                     209,607
Total Revenue/Loss   $ —       $ (99,665 )   $ —               $(99,665)
                                     
Operating expenses:                                    
Occupancy   $ —       $ 1,887                     $1,887
Depreciation and amortization             169,870                     169,870
Officer Compensation             218,732                     218,732
Research and development     519,467       724,225                     1,243,692
Payroll expense     24,500       42,000                     66,500
Professional fees     143,180       255,061                     398,241
General and administrative expenses     64,185       41,522                     105,707
Office equipment expenses     —         —                       —  
Total Operating expenses   $ 751,332     $ 1,453,297     $ —               $2,204,629
                                     
Loss from Operations     (751,332 )     (1,552,962 )                   (2,304,294)
                                     
Other Income:                                    
Change in fair value of derivative liabilities   $ —       $ 255,714                     $255,714
Loss recognized on disposition of cryptocurrencies             56,600                     56,600
Interest income             13,207                     13,207
Total other Income   $ —       $ 325,521     $ —               $325,521
                                     
Other expense:                                    
Interest expense   $ —       $ 459,144.44                     $459,144.44
Gain/Loss on Disposal of Assets             583,126       (72,650 )      a      510,476
Other General Expenses             162,025                     162,025
Total other expense   $ —       $ 1,204,295     $ (72,650 )           $1,131,645
                                     
Loss before income taxes     (751,332 )     (2,431,736 )     72,650             (3,110,418)
Provision for income taxes     0       0                     0
NET LOSS   $ (751,332 )   $ (2,431,736 )   $ 72,650             $(3,110,418)
                                     
LOSS PER SHARE - basic and diluted   $ (0.14 )   $ (0.02 )                   $(0.16)
                                     
Weighted average shares outstanding - basic and diluted     5,328,630       114,181,237                     119,509,867

 

     

 

TIMEFIREVR INC.
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 
1. Description of Transaction
 
Effective May 15, 2019, TimefireVR Inc. (“Timefire”) closed a Share Exchange Agreement (the “SEA”) with Red Cat Propware, Inc., (“Red Cat”), a Nevada corporation.  Under the SEA, in exchange for all of Red Cat’s issued and outstanding common stock, Red Cat’s shareholders  acquired: (i) 236,000,000 shares of our common stock, and (ii) 2,169,068.0554 shares of our newly-designated Series A Preferred Stock.  Our new Series A Preferred Stock is convertible to common stock at a ratio of 10,000 shares of common stock for each share of preferred stock held, and votes together with the common stock on an as-converted basis.  The new Series A Preferred Stock will convert automatically to common stock upon the effectiveness of any future reverse split of our common stock.  In total, the common stock and Series A Preferred Stock issued under the SEA constitutes approximately 83.33% of our issued outstanding share capital on a fully-diluted basis.
 
2. Basis of Presentation
 
The unaudited condensed consolidated pro forma financial statements for the period ended April 30, 2019 are based upon the previously filed audited financial statements of Red Cat for the year ended April 30, 2019, and the unaudited financial statements of Timefire for the period ended on April 30, 2019.  The unaudited pro forma condensed consolidated financial information was prepared under United States Generally Accepted Accounting Principles.
 
The pro forma financial statements do not necessarily reflect what the combined company’s financial condition or results of operations would have been had the acquisition occurred on the dates indicated. They also may not be useful in predicting the future financial condition and results of operations of the combined company. The actual financial position and results of operations may differ significantly from the pro forma amounts reflected herein due to a variety of factors.
 
3. Unaudited Pro Forma Adjustments
 
Adjustments included under the column headings “Pro Forma Adjustments” represent the following:
 
a. To write off obsolete fixed assets of the Company: $72.7K
b. To eliminate debt and accrued interest of $2.7M at time of merger closed.