EX-99.2 13 s114256_ex99-2.htm EXHIBIT 99.2

 

Exhibit 99.2

 

SMAAASH ENTERTAINMENT INC.

 

UNAUDITED PRO FORMA FINANCIAL INFORMATION

 

On November 20, 2018, the Company consummated the Transactions contemplated by the Subscription Agreement.

 

The following unaudited pro forma financial statements are based on the Company’s historical financial statements to give effect to the closing of the consummation of Transactions on November 20, 2018.

 

The unaudited pro forma income statements for the three months ended August 31, 2018 give effect to the consummation of the Transactions as if it had occurred on August 31, 2018. The unaudited pro forma balance sheet as of August 31, 2018 gives effect to the consummation of Transactions as if it had occurred on August 31, 2018.

 

The unaudited pro forma financial information should be read in connection with the historical financial statements and notes thereto of the Company.

 

Matters discussed in this unaudited pro forma financial information are subject to change, including any discussion of or impact, expressed or implied, on the Company’s anticipated operating results.

 

The pro forma financial statements do not necessarily reflect what the Company’s financial condition or results of operations would have been had the consummation of Transactions occurred on the dates indicated. They also may not be useful in predicting the future financial condition and results of operations of the 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.

 

 

 

 

SMAAASH ENTERTAINMENT INC.

PRO FORMA BALANCE SHEET

(Unaudited)

 

 

       Pro Forma     
   August 31, 2018 (Actual)   Adjustments   Pro Forma 
ASSETS               
Current Assets               
Cash and cash equivalents  $355,828   $39,172(a)  $395,000 
Restricted cash        7,617,616(b)   7,617,616 
Receivable - non-consolidated subsidiary        250,000(c)   250,000 
Prepaid expenses   81         81 
Total Current Assets   355,909    7,906,788    8,262,697 
Cash held in Trust Account   53,119,511    17,918(a)   — 
         (53,137,429)(d)     
Investment in non-consolidated subsidiary        150,000(e)   150,000 
Deposit on future acquisition        20,437,473(f)   20,437,473 
Total Assets  $53,475,420   $(24,625,250)  $28,850,170 
LIABILITIES AND STOCKHOLDERS’ EQUITY               
Current Liabilities               
Loan payable - Related party  $85,238        $85,238 
Accrued expenses   182,807    (176,527)(g)   6,280 
Deferred legal fees   100,000    (80,000)(g)   390,000 
         370,000(h)     
Total current liabilities   368,045    113,473    481,518 
Deferred underwriting fees   1,820,000    (20,000)(g)   1,800,000 
Total Liabilities   2,188,045    93,473    2,281,518 

Commitments

Common stock subject to possible redemption, $0.0001 par value; 710,000 shares as of November 20, 2018 at redemption value

   46,287,374    (39,032,068)(i)   7,255,306 

Stockholders’ equity

Preferred Stock - $0.0001 par value, 1,000,000 shares authorized; no shares issued and outstanding

   —    —    — 
Common Stock - $0.0001 par value; 20,000,000 shares authorized; 5,119,390 shares issued and outstanding (excluding 710,000 shares subject to possible redemption) as of November 20, 2018   225    287(i)   512 
Additional paid-in capital   5,013,621    7,617,616(b)   21,515,084 
         6,758,352(i)     
         2,125,495(k)     
Accumulated (deficit)   (13,845)   (2,188,405)(j)   (2,202,250)
Total stockholders’ equity   5,000,001    14,313,345    19,313,346 
Total Liabilities and stockholders’ equity  $53,475,420   $(24,625,250)  $28,850,170 

 

See accompanying notes to the unaudited pro forma financial information.

 

 

 

 

SMAAASH ENTERTAINMENT INC.

PRO FORMA STATEMENTS OF OPERATIONS

(UNAUDITED)

 

 

   Three Months Ended   Pro Forma     
   August 31, 2018   Adjustments   Pro Forma 
             
Revenues  $ —       $ — 
             
Operating expenses               
General and administrative expenses   246,661    (250,000)(c)   2,492,156 
         370,000(h)     
         2,125,495(k)     
Loss from operations   (246,661)   (2,245,495)   (2,492,156)
                
Other income:               
Interest income   242,350    57,090(a)   299,440 
                
Loss before provision for taxes   (4,311)   (2,188,405)   (2,192,716)
                
Income tax provision   —    —    — 
                
Net loss  $(4,311)  $(2,188,405)  $(2,192,716)
                
Basic and diluted net loss per share  $(0.00)  $—   $(0.43)
                
Weighted average number of common shares outstanding   2,253,168         5,119,390 

 

See accompanying notes to the unaudited pro forma financial information.

 

 

 

 

SMAAASH ENTERTAINMENT INC.

 

NOTES TO UNAUDITED PRO FORMA FINANCIAL INFORMATION

 

Note 1 – Basis of presentation

 

The unaudited pro forma financial statements are based on the Company and Smaaash’s historical financial statements as adjusted to give effect to the consummation of Transactions. The unaudited pro forma balance sheet and statement of operations as of August 31, 2018 gives effect to the consummation of Transactions as if it had occurred on August 31, 2018.

 

Note 2 – Pro Forma Adjustments

 

The following adjustments have been reflected in the unaudited pro forma financial information:

 

a)Reflects the interest income deposited into Cash and cash equivalents and the Cash held in Trust Account.

b)Reflects the transfer to the escrow account to cover amounts potentially owed to Polar and K2 under their respective stock purchase agreements with the Company.

c)According to the Subscription Agreement, Smaaash is obligated to pay the Company $250,000 for operations related to the master franchise agreements, which has reduced the general and administrative expenses.

d)Reflects redemption of 4,448,260 shares of common stock by Company stockholders.

e)Reflects the Company’s purchase of 300,000 shares of Smaaash.

f)Reflects the issuance of 2,000,000 shares of common stock as a deposit regarding the Company’s agreement with AHA Holdings that within six months of the Transactions, Shripal Morakhia will transfer his full interest in Smaaash (100% owned by AHA Holdings) to the Company which represents 33.6% investment in Smaaash.

g)Reflects disbursements made from accrued expenses upon closing of the Transactions.

h)Reflects additional accrued expenses.

i)Reflects shares redeemed by Company stockholders.

j)Reflects the change in accumulated deficit.

k)Reflects 208,000 shares issued as consideration of consulting services provided.