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.