EX-99.2 3 ex99-2.htm

 

Exhibit 99.2

 

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

 

The following unaudited pro forma condensed combined financial information is derived from the historical consolidated financial statements of New You, Inc. (the “Company”) and the unaudited financial statements of ST Brands, Inc. as of and for the twelve-months ended December 31, 2020.

 

The unaudited pro forma condensed combined balance sheet as of December 31, 2020 gives effect to the acquisition as if it had occurred on December 31, 2020. The unaudited pro forma condensed combined statements of operations for the twelve-months ended December 31, 2020 give effect to the acquisition as if it had occurred on December 31, 2020.

 

Other than as disclosed in the notes thereto, the unaudited pro forma combined financial statements do not reflect any additional liabilities, off-balance sheet commitments or other obligations that may become payable after the date of such financial statements.

 

The unaudited pro forma condensed combined financial statements are presented for illustrative purposes only to reflect the acquisition and do not represent what our results of operations or financial position would actually have been had the transactions occurred on the dates noted above, or project our results of operations or financial position for any future periods. The unaudited pro forma condensed combined financial statements are intended to provide information about the continuing impact of the acquisition as if it had been consummated earlier. The pro forma adjustments are based on available information and certain assumptions that management believes are factually supportable and are expected to have a continuing impact on our results of operations. In the opinion of management, all adjustments necessary to present fairly the unaudited pro forma condensed combined financial statements have been made.

 

The acquisition will be accounted for using the acquisition method of accounting for business combinations. The allocation of the preliminary estimated purchase price is based upon management’s estimates of and assumptions related to the fair value of assets to be acquired and liabilities to be assumed as of April 30, 2021 using currently available information. Due to the fact that the unaudited pro forma combined financial information has been prepared based on these preliminary estimates, the final purchase price allocation and the resulting effect on financial position and results of operations may materially differ from the pro forma amounts included herein.

 

The following unaudited pro forma condensed combined financial information should be read in conjunction with the Company’s consolidated financial statements and related notes. The Company’s financial statements and notes are included in our Annual Report on Form 10-K for the year ended December 31, 2020.

 

 
 

 

   New You Inc.  

ST Brands

   PRO FORMA ADJUSTMENTS   Tick Marks   Consolidated Totals 
                     
ASSETS                         
Current Assets:                         
Cash   69,420    -              69,420 
Credit Card Receivable   1,952    -              1,952 
Inventory   79,438    -              79,438 
Prepaid Expenses and Other Current Assets   8,212    -              8,212 
Total Current Assets   159,022    -    -         159,022 
                          
Goodwilll             7,850,388    1      
              (7,850,388)   2    - 
Property and Equipment, Net   20,004    -              20,004 
Operating Lease Right of Use Asset, Net   42,380    -              42,380 
                          
TOTAL ASSETS   221,407    -    -         221,407 
                          
LIABILITIES AND STOCKHOLDERS’ DEFICIT                         
LIABILITIES                         
Current Liabilities:                         
Accounts Payable and Other Accrued Expenses   357,563    -              357,563 
Accounts Payable to Related Parties   30,625    388              31,013 
Deferred Rent   37,602    -              37,602 
Notes Payable   338,958    -              338,958 
Convertible Notes Payable   281,000    -              281,000 
Debt Discount   (177,798)   -              (177,798)
Derivative Liability   1,176,087    -              1,176,087 
Operating Lease Liability, Current   44,679    -              44,679 
Related Party Debt   573,659    -              573,659 
Total Current Liabilities   2,662,375    388    -         2,662,763 
                          
Noncurrent Liabilities                         
Obligations to Purchase ST Brands   -         7,850,000    1    7,850,000 
    -    -    7,850,000         7,850,000 
                          
TOTAL LIABILITIES   2,662,375    388    7,850,000         10,512,763 
                          
STOCKHOLDERS’ DEFICIT                         
Common stock at $0.00001 par value: 1,400,000,000 shares authorized as of December 31, 2020; 39,523,051 shares issued as of December 31, 2020   395    -              395 
Additional Paid-in Capital   4,588,357    10    (10)   1    4,588,357 
                          
Accumulated Deficit   (7,029,720)   (398)   (7,849,990)   1&2     (14,880,108)
TOTAL STOCKHOLDERS’ DEFICIT   (2,440,968)   (388)   (7,850,000)        (10,291,356)
                          
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT   221,407    -    -         221,407 

 

1 On April 30, 2021, New You Inc. agreed to purchase ST Brands. New You Inc purchased ST Brands by issuing stock of New You Inc that had a fair market value of $7,850,388 at the time of the transaction. Since the purchase of ST Brands is contingent upon performance of certain actions in the future, a corresponding liability has been made to offset the Investment. As a result of this transaction, Goodwill of $7,850,388 with an offset to liability is recorded.    

 

2 Upon merger, the company recorded an impairment charge against goodwill given that ST Brands has no current operations.  

 
 

 

   For The Twelve Months Ended 
   December 31, 
   New You Inc   ST Brands   Total 
   2020   2020   2020 
             
Revenue  $2,008,493    -    2,008,493 
                
Cost of Goods Sold   310,940    -    310,940 
                
Gross Profit   1,697,552    -    1,697,552 
                
Selling, General and Administrative Expenses               
Commission Expense   537,927    -    537,927 
Stock Based Compensation   2,736,515    -    2,736,515 
Other   1,521,954    50    1,522,004 
Total Selling, General and Administrative Expenses   4,796,396    50    4,796,446 
                
(Loss) Income from Operations   (3,098,843)   (50)   (3,098,893)
                
Interest Expense   701,589    -    701,589 
Change in fair value of derivative   1,108,984    -    1,108,984 
Net (Loss) Income before Income Tax Expense   (4,909,416)   (50)   (4,909,466)
                
Income Tax Expense   -         - 
                
Net (Loss) Income  $(4,909,416)   (50)   (4,909,466)
                
Net (Loss) Income Per Common Share               
- Basic and Diluted  $(0.16)   -    (0.16)
                
Weighted Average Common Shares Outstanding               
- Basic and Diluted   31,670,792    -    31,670,792