EX-99.3 3 focus_ex9903.htm PROFORMA FINANCIAL STATEMENTS

Exhibit 99.3

Pro Forma 

 

Focus Universal Inc.

and AVX Design & Integration, Inc.

Pro Forma Consolidated Financial Statements

(unaudited)

  

Contents

 

    Page
     
Pro Forma Consolidated Financial Statements:    
     
Pro Forma Consolidated Balance Sheet as of December 31, 2018 (unaudited)   F-2
     
Pro Forma Consolidated Statement of Operations for the year ended December 31, 2018 (unaudited)   F-3
     

Pro Forma Consolidated Balance Sheet as of March 31, 2019 (unaudited)

  F-4
     
Pro Forma Consolidated Statement of Operations for the three months ended March 31, 2019 (unaudited)   F-5
     
Notes to Pro Forma Consolidated Financial Statements (unaudited)   F-6
     

 

 

 

 

 

 

 

 

 

 F-1 
 

 

Focus Universal Inc.,

and AVX Design & Integration, Inc.

Pro Forma Consolidated Balance Sheet

As of December 31, 2018

(unaudited)

   

 

           Pro forma      Pro forma 
   Focus   AVX   Adjustments      Consolidated 
                    
ASSETS 
Current assets                       
Cash and cash equivalents  $4,455,751   $103,193   $(550,000) a   $4,008,944 
Accounts receivable   10,908    318,871            327,529 
Accounts receivable - related party   39,625                39,779 
Inventories, net   69,787    32,638            102,425 
Prepaid expenses   115,833                115,833 
Total Current Assets   4,691,904    454,702    (550,000)      4,596,606 
                        
Property and equipment, net   4,578,135    11,526            4,589,661 
                        
Other assets:                       
Deposits   7,872    5,968            13,840 
Goodwill           592,264  a    592,264 
                        
Total assets:  $9,277,911   $472,196   $42,264      $9,792,371 
                        
LIABILITIES AND STOCKHOLDERS’ EQUITY 
Current Liabilities:                       
Accounts payable and accrued liabilities  $163,661   $106,907   $      $270,568 
Accounts payable - related party   4,921                4,921 
Note payable - short term           50,000  a    50,000 
Other payable   7,210                7,210 
Customer deposit   36,184                36,184 
Total Current Liabilities   211,976    106,907    50,000       368,883 
                        
Non-current Liabilities                       
Deferred rent       11,157            11,157 
Total Non-Current Liabilities       11,157           11,157 
                        
Total Liabilities   211,976    118,064    50,000       380,040 
                        
Stockholders' Equity                       
Common stocks   40,907    2,000    (1,961) a    40,946 
Additional paid-in capital   12,956,486        290,677  a    13,247,163 
Shares to be issued, common shares   72,000                72,000 
Retained earnings (Accumulated deficit)   (4,003,458)   352,132    (296,452) a    (3,947,778)
Total stockholders' equity   9,065,935    354,132    (7,736)      9,412,331 
                        
Total Liabilities and Stockholders' Equity  $9,277,911   $472,196   $42,264      $9,792,371 

 

 


 F-2 
 

 

 

Focus Universal Inc.,

and AVX Design & Integration, Inc.

Pro Forma Consolidated Statement of Operation

For the year ended December 31, 2018

(unaudited)

 

           Pro forma   Pro forma 
   Focus   AVX   Adjustments   Consolidated 
                 
Revenue  $285,929   $1,788,702   $   $2,074,631 
Revenue - related party   22,200            22,200 
Total revenue   308,129    1,788,702        2,096,831 
                     
Cost of Revenue   137,897    968,807        1,106,704 
                     
Gross Profit   170,232    819,895        990,127 
                     
Operation Expenses:                    
Selling       174,180        174,180 
Compensation - officers   120,000            120,000 
Research and development   221,510            221,510 
Professional fees   960,846    8,843        969,689 
General and administrative   451,597    295,734        747,331 
Total Operating Expenses   1,753,953    478,757        2,232,710 
                     
Income (Loss) from Operations   (1,583,721)   341,138        (1,242,583)
                     
Other Income (Expense)                    
Interest income (expense), net   (440,943)   (1,571)       (442,514)
Total other expense   (440,943)   (1,571)       (442,514)
                     
Income (Loss) before income taxes   (2,024,664)   339,567        (1,685,458)
                     
Tax expense       2,361        2,361 
                     
Net Income (Loss)  $(2,024,664)  $337,206   $   $(1,687,458)
                     
Weight Average Number of Common Shares Outstanding - Basic and Diluted   37,778,614            37,778,614 
                     
Net Loss per common share                    
Basic and diluted  $(0.05)          $(0.04)

 

 

 

 F-3 
 

 

Focus Universal Inc.,

and AVX Design & Integration, Inc.

Pro Forma Consolidated Balance Sheet

As of March 31, 2019

(unaudited)

     

           Pro forma   Pro forma 
   Focus   AVX   Adjustments   Consolidated 
                 
ASSETS    
Current assets:                    
Cash and cash equivalents  $3,366,986   $187,989   $   $3,554,975 
Accounts receivable   16,225    530,413        546,638 
Accounts receivable - related party   2,000            2,000 
Inventories, net   40,283    5,164        45,447 
Other receivables       2,151        2,151 
Prepaid expenses   71,640             71,640 
Total Current Assets   3,497,134    725,717        4,222,851 
                     
Property and equipment, net   4,726,476    10,235        4,736,711 
Operating lease right-of-use assets       184,416        184,416 
                     
Investment   890,716        (890,716)a   
Deposits   7,872    5,968         13,840 
Goodwill           307,572 a  307,572 
                     
Total assets:  $9,122,198   $926,336   $(583,144)  $9,465,390 
                     
LIABILITIES AND STOCKHOLDERS’ EQUITY                    
Current Liabilities:                    
Accounts payable and accrued liabilities  $170,860   $77,803   $   $248,663 
Customer deposit   25,717            25,717 
Current maturities of operating leases       51,329         51,329 
Promissory note - short term   41,500            41,500 
Total Current Liabilities   238,077    129,132        367,209 
Non-current Liabilities                    
Promissory note - long term   8,500            8,500 
Noncurrent operating leases       144,313        144,313 
                     
Total Liabilities   246,577    273,445        520,022 
                     
Stockholders' Equity (Deficit):                    
Common stock   40,959    2,000    (2,000)a  40,959 
Additional paid-in capital   13,343,659            13,343,659 
Shares to be issued, common shares   11,491            11,491 
Accumulated deficit   (4,520,488)   650,891    (581,144)a  (4,450,741)
Total stockholders' equity   8,875,621    652,891    (583,144)   8,945,368 
                     
Total Liabilities and Stockholders' Equity  $9,122,198   $926,336   $(583,144)  $9,465,390 

 

 

 

 

 F-4 
 

 

Focus Universal Inc.,

and AVX Design & Integration, Inc.

Pro Forma Consolidated Statement of Operation

For the three months ended March 31, 2019

(unaudited)

   

 

           Pro forma   Pro forma 
   Focus   AVX   Adjustments   Consolidated 
                 
Revenue  $111,193   $724,100   $    $835,293 
Revenue - related party   3,000             3,000 
Total revenue   114,193    724,100         838,293 
                     
Cost of Revenue   87,179    173,234         260,413 
                     
Gross Profit   27,014    550,866         577,880 
                     
Operation Expenses:                    
Selling       91,849         91,849 
Compensation - officers   30,000    21,775         51,775 
Research and development   62,004             62,004 
Professional fees   353,845    14,682         368,527 
General and administrative   98,920    71,227         169,347 
Total Operating Expenses   544,769    199,533         744,302 
                     
Loss from Operations   (517,755)   351,292         (166,422)
                     
Other Income (Expense)                    
Interest income (expense), net   725    (41)        684 
Total other expense   725    (41)        684 
                     
Loss before income taxes   (517,030)   351,292         (165,738)
                     
Tax expense                 
                     
Net Loss  $(517,030)  $351,292   $    $(165,738)
                     
Weight Average Number of Common Shares Outstanding - Basic and Diluted   40,917,475              40,917,475 
                     
Net Loss per common shares - Basic and diluted  $(0.01)            $(0.00)

 

 

 

 F-5 
 

 

Focus Universal Inc.

and AVX Design & Integration, Inc.

Notes to Pro Forma Consolidated Financial Statements

 

NOTE 1 - BASIS OF PRESENTATION

 

On March 15, 2019, Focus Universal Inc. (the “Company”) (OTCQB: FCUV) entered into a stock purchase agreement with AVX Design & Integration, Inc. (“AVX”) whereby the Company purchased 100% of the outstanding stock of AVX, an Internet of Things (“IoT”) installation company (the “Acquisition Transaction”). Pursuant to the Acquisition Transaction, the Company will purchase all 2,000 shares of the outstanding common stock of AVX for $875,000. The purchase price will be paid as follows: (1) $550,000 payable in cash at closing; (2) $275,000 payable in 39,286 shares of the Company’s common stock issued upon closing; and (3) $50,000 payable in the form of a secured promissory note at 6% interest over 12 months secured by six shares of AVX common stock.

 

AVX is an IoT installation and management company, based in southern California that was established in 1993 by Patrick Calderone. AVX is a design and installation provider for high performance Audio Visual, Home Theater, Lighting Control, Automation and Integration There are approximately 11 employees and is currently based in Culver City, California.

 

The accompanying pro forma consolidated balance sheet presents the accounts of The Company and AVX as if the transactions occurred December 31, 2018 and March 31, 2019. The accompanying pro forma consolidated statement of operations presents the accounts of the Company and AVX for the year ended December 31, 2018 and three months ended March 31, 2019 as if the transactions occurred on January 1, 2018 and 2019.

 

The following adjustments would be required if the acquisition occurred as indicated above:

 

  a) To record the purchase price allocation and to eliminate the common stock and retained earnings of AVX.

 

The unaudited consolidated pro forma financial information is presented for informational purposes only and is subject to a number of uncertainties and assumptions and do not purport to represent what the company’s actual performance or financial position would have been had the transaction occurred on the dates indicated and does not purport to indicate the financial position or results of operations as of any future date or for any future period.

 

 

 

 

 

 F-6