Form: 8-K/A

Current report filing

April 9, 2020

Documents

Exhibit 99.2

 

Red Cat Holdings, Inc.
Statements of Operations
Nine months ended January 31, 2020
(Unaudited)
                 
      Red Cat       Rotor Riot       Adjustments       Pro-Forma  
Revenues   $ 34,538     $ 1,476,417             $ 1,510,955  
                                 
Cost of Revenues   $ 16,234     $ 1,162,948             $ 1,179,182  
                                 
Gross Margin   $ 18,304     $ 313,469             $ 331,773  
                                 
Expenses                                
   Sales and marketing   $ 400,884     $ 62,736             $ 463,620  
   General and administrative   $ 593,662     $ 375,774             $ 969,436  
         Total expenses   $ 994,546     $ 438,510             $ 1,433,056  
                                 
Net income (loss) before income taxes   $ (976,242 )   $ (125,041 )           $ (1,101,283 )
                                 
   Provision for income taxes   $ —       $ —               $ —    
                                 
Net Loss   $ (976,242 )   $ (125,041 )           $ (1,101,283 )
                                 
                                 
See accompanying notes.

     

 

Red Cat Holdings, Inc.
Statements of Operations
Year ended April 30, 2019
(Unaudited)
                 
      Red Cat       Rotor Riot       Adjustments       Pro-Forma  
Revenues   $ —       $ 570,495             $ 570,495  
                                 
Cost of Revenues   $ —       $ 225,342             $ 225,342  
                                 
Gross Margin   $ —       $ 345,153             $ 345,153  
                                 
Expenses                                
   Research and development   $ 307,772     $               $ 307,772  
   General and administrative   $ 443,560     $ 277,243             $ 720,803  
         Total expenses   $ 751,332     $ 277,243       —       $ 1,028,575  
                                 
Net income (loss) before income taxes   $ (751,332 )   $ 67,910             $ (683,422 )
                                 
   Provision for income taxes   $ —       $ —               $ —    
                                 
Net Loss   $ (751,332 )   $ 67,910             $ (683,422 )
                                 
                                 
See accompanying notes.

     

 

Red Cat Holdings, Inc.

Notes to the Unaudited Pro Forma Combined Statements of Operations

 

On December 31, 2019, Red Cat Holdings, Inc. (the “Company” or “Red Cat”) and Rotor Riot, LLC entered into an agreement of merger (the “Merger”). On January 23, 2020, the Merger was consummated under which Rotor Riot became a wholly owned subsidiary of the Company.

 

I. Basis of Pro Forma Presentation

The unaudited pro forma condensed combined statements of operations of Red Cat and Rotor Riot have been derived from the historical accounting records of each entity. The historical financial information has been evaluated to determine whether there should be any pro-forma adjustments recorded to reflect events that are directly attributable to the Merger, factually supportable, and expected to have a continuing effect on the Company’s results of operations. The pro forma statements of operations present the Merger as if it had been consummated as of May 1, 2018, as required under Article 11 of Regulation S-X.

The unaudited pro forma combined financial information is for illustrative purposes only. The combined company may have reported different operating results if they had actually been combined for the periods presented. These pro forma condensed combined financial statements should not be relied upon as being indicative of the historical results that would have been achieved had the companies always been combined or the future results that the combined companies may realize after the merger. The unaudited pro forma combined statements of operations should be read in conjunction with the accompanying historical financial statements of Rotor Riot included elsewhere in this report.

 

II. Accounting Periods Presented

The unaudited pro forma combined statements of operations are being reported based on the April 30 fiscal year end of Red Cat, and include the statement of operations for the fiscal year ended April 30, 2019 and the statement of operations for the nine months ended January 31, 2020. The statements of operations being reported for Rotor Riot are based on these reporting periods. The unaudited pro forma combined statements of operations are presented as if the merger had taken place on May 1, 2018.