EX-99.3 4 bzwr_ex993.htm UNAUDITED PRO FORMA FINANCIAL INFORMATION bzwr_ex993.htm

 

  EXHIBIT 99.3

 

BUSINESS WARRIOR CORPORATION

UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEETS

as of May 31, 2022

 

 

 

 Business Warrior

 

 

 

 

 Pro Forma

 

 

 Pro Forma

 

 

 

Entities

 

 

 FluidFi, Inc.

 

 

Adjustments

 

 

Combined

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$ 3,078,804

 

 

$ 554,715

 

 

$ (2,000,000 )(3)

 

$ 1,633,519

 

Accounts receivable, net

 

 

244,586

 

 

 

440,146

 

 

 

(20,000 )(1)

 

 

664,732

 

Prepaid expenses and other current assets

 

 

495,046

 

 

 

65,732

 

 

 

-

 

 

 

560,778

 

Total current assets

 

 

3,818,436

 

 

 

1,060,593

 

 

 

(2,020,000 )

 

 

2,859,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intangible assets, net

 

 

-

 

 

 

35,678

 

 

 

-

 

 

 

35,678

 

Property and equipment, net

 

 

334,634

 

 

 

56,686

 

 

 

-

 

 

 

391,320

 

Finance right of use asset, net

 

 

80,377

 

 

 

-

 

 

 

-

 

 

 

80,377

 

Due from related entities

 

 

-

 

 

 

12,000

 

 

 

-

 

 

 

12,000

 

Other Assets

 

 

12,000

 

 

 

45,551

 

 

 

-

 

 

 

57,551

 

Goodwill

 

 

2,194,110

 

 

 

-

 

 

 

4,589,770

 (2)

 

 

6,783,880

 

Total assets

 

$ 6,439,557

 

 

$ 1,210,508

 

 

$ 2,569,770

 

 

$ 10,219,835

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$ 407,863

 

 

$ 171,131

 

 

 

(20,000 )(1)

 

 

558,994

 

Accrued expenses

 

 

165,375

 

 

 

-

 

 

 

-

 

 

 

165,375

 

Deferred revenue

 

 

1,174,242

 

 

 

5,280

 

 

 

-

 

 

 

1,179,522

 

Due to related parties

 

 

149,316

 

 

 

1,199,724

 

 

 

(1,199,724 )(3)

 

 

149,316

 

Current portion of finance lease liability

 

 

17,737

 

 

 

-

 

 

 

-

 

 

 

17,737

 

Intercompany payable

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Current portion of notes payable

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total current liabilities

 

 

1,914,533

 

 

 

1,376,135

 

 

 

(1,219,724 )

 

 

2,070,944

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance lease liability, long term

 

 

62,640

 

 

 

-

 

 

 

-

 

 

 

62,640

 

SBA loan

 

 

149,900

 

 

 

-

 

 

 

-

 

 

 

149,900

 

Total long term liabilities

 

 

212,540

 

 

 

-

 

 

 

-

 

 

 

212,540

 

Total liabilities

 

 

2,127,073

 

 

 

1,376,135

 

 

 

(1,219,724 )

 

 

2,283,484

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 10)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

26

 

 

 

-

 

 

 

50

 (b)

 

 

76

 

Common stock

 

 

44,431

 

 

 

41

 

 

 

(41 )(a)

 

 

44,431

 

Additional paid in capital

 

 

9,614,705

 

 

 

485,721

 

 

 

-

 

 

 

10,100,426

 

Accumulated (Deficit)Equity

 

 

(5,346,678 )

 

 

(651,389 )

 

 

3,789,485

 

 

 

(2,208,582 )

Total stockholders' equity

 

 

4,312,484

 

 

 

(165,627 )

 

 

3,789,494

 

 

 

7,936,351

 

Total liabilities and stockholders' equity

 

$ 6,439,557

 

 

$ 1,210,508

 

 

$ 2,569,770

 

 

$ 10,219,835

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See notes to unaudited pro forma consolidated financial statements

 

(1)

Outstanding balance due from Business Warrior

(2)

Calculation of goodwill - see footnote for additional information regarding the purchase price allocation., net of pro forma adjustments

(3)

Reduction in cash a result of the the purchase price allocation and a reduction in partner debt

(a)

Elimination of acquired common stock

(b)

50,000 preferred shares of FluidFi, Inc. were obtained by Business Warrior as part of the acquisition (par value $.001)

 

 
1

 

 

BUSINESS WARRIOR CORPORATION

UNAUDITED PRO FORMA CONSOLIDATED INCOME STATEMENT

For the nine months ended May 31, 2022

 

 

 

Business Warrior Entites

 

 

Helix House, LLC

(15) 

 

FluidFi, Inc.

 

 

Pro Forma Adjustments

 

 

Pro Forma Combined

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$ 2,415,644

 

 

$ 651,979

 

 

$ 3,447,172

 

 

$ (345,893 )(4)

 

$ 6,168,902

 

Cost of sales

 

 

274,573

 

 

 

361,446

 

 

 

1,311,061

 

 

 

(327,000 )(6)

 

 

1,620,080

 

Gross profit

 

 

2,141,071

 

 

 

290,533

 

 

 

2,136,111

 

 

 

(672,893 )

 

 

4,548,822

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising and promotion

 

 

701,204

 

 

 

4,035

 

 

 

4,953

 

 

 

-

 

 

 

710,192

 

Salaries and wages

 

 

2,128,587

 

 

 

22,620

 

 

 

484,200

 

 

 

(496,000 )(5)

 

 

2,139,407

 

General and administrative expenses

 

 

1,399,302

 

 

 

74,741

 

 

 

917,901

 

 

 

(512,216 )(7)

 

 

1,879,728

 

Income (Loss) from operations

 

 

(2,088,022 )

 

 

189,137

 

 

 

729,057

 

 

 

335,323

 

 

 

(180,505 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (expense) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income (expense)

 

 

(1,860 )

 

 

(4,265 )

 

 

(11,345 )

 

 

-

 

 

 

(13,205 )

Gain on extinguishment of debt

 

 

77,500

 

 

 

75,700

 

 

 

158,200

 

 

 

-

 

 

 

311,400

 

Other income (expense)

 

 

31,057

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

31,057

 

Total other income

 

 

106,697

 

 

 

71,435

 

 

 

146,855

 

 

 

-

 

 

 

329,252

 

Net (loss) profit before income taxes

 

 

(1,981,325 )

 

 

260,572

 

 

 

875,912

 

 

 

335,323

 

 

 

148,747

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for taxes

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net income (loss)

 

$ (1,981,325 )

 

$ 260,572

 

 

$ 875,912

 

 

$ 335,323

 

 

$ 148,747

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.005

)

 

 

 

 

 

 

 

 

 

 

 

 

 

$ 0.000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares used in per share calculation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

419,829,608

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

419,829,608

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See notes to unaudited pro forma consolidated financial statements

  

(4)

Reduction in revenue associated with acquired entities.

(5)

Adjustment related to gaining operational efficiences from salaries associated with Management and overhead.

(6)

Reduction of the software development teams work who provide client support.

(7)

Elimination of bad debt expense along with expenses associated with duplicative roles, and software license fees

(8)

Provision for taxes would be reduced to zero with pro-forma entities in an income position.

(15)

Column represents Helix House activity from September 1, 2021 through March 17, 2022. The date of the Helix House acquisition was effective March 18, 2022.

 

 
2

 

 

BUSINESS WARRIOR CORPORATION

UNAUDITED PRO FORMA CONSOLIDATED INCOME STATEMENT

For the year ended August 31, 2021

 

 

 

Business Warrior

 

 

Helix House, LLC

(9)

 

FluidFi, Inc.

 

 

Pro Forma Adjustments

 

 

Pro Forma Combined

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$ 5,523,458

 

 

$ 889,260

 

 

$ 1,803,978

 

 

$ (42,720 )(10)

 

$ 8,173,976

 

Cost of sales

 

 

84,519

 

 

 

490,545

 

 

 

598,880

 

 

 

(120,000 )(13)

 

 

1,053,944

 

Gross profit

 

 

5,438,939

 

 

 

398,715

 

 

 

1,205,098

 

 

 

77,280

 

 

 

7,120,032

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising and promotion

 

 

1,733,865

 

 

 

51,555

 

 

 

5,069

 

 

 

-

 

 

 

1,790,489

 

Salaries and wages

 

 

1,942,573

 

 

 

55,067

 

 

 

687,711

 

 

 

(480,000 )(11)

 

 

2,205,351

 

General and administrative expenses

 

 

984,056

 

 

 

213,518

 

 

 

570,657

 

 

 

(230,000 )(12)

 

 

1,538,231

 

Income (Loss) from operations

 

 

778,445

 

 

 

78,575

 

 

 

(58,339 )

 

 

787,280

 

 

 

1,585,961

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (expense) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income (expense)

 

 

(150,872 )

 

 

(9,782 )

 

 

(16,213 )

 

 

-

 

 

 

(176,867 )

Derivative Loss

 

 

(2,238,941 )

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,238,941 )

Gain on extinguishment of debt

 

 

191,675

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

191,675

 

Settlement Costs

 

 

(620,375 )

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(620,375 )

Other income (expense)

 

 

7,535

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

7,535

 

Total other income

 

 

(2,810,978 )

 

 

(9,782 )

 

 

(16,213 )

 

 

-

 

 

 

(2,836,973 )

Net (loss) profit before income taxes

 

 

(2,032,533 )

 

 

68,793

 

 

 

(74,552 )

 

 

787,280

 

 

 

(1,251,012 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

Provision for taxes

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net loss

 

$ (2,032,533 )

 

$ 68,793

 

 

$ (74,552 )

 

$ 787,280

 

 

$ (1,251,012 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$ (0.006 )

 

 

 

 

 

 

 

 

 

 

 

 

 

$ (0.004 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares used in per share calculation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

353,158,502

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

353,158,502

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See notes to unaudited pro forma consolidated financial statements

 

(9)

Acquired as of March 18, 2022.  This column represents activity from September 1, 2020 through August 31, 2021.

(10)

Reduction in revenue associated with acquired entities.

(11)

Adjustment related to gaining operational efficiences from salaries associated with Management and overhead.

(12)

Decrease associated with the advertising agency component brought in house to reduce advertising costs, coupled with eliminating duplicate technology, hosting, and service fees.

(13)

Reduction of the software development teams work who provide client support.

 

 
3

 

 

Consideration:

 

 

 

Cash

 

$ 800,000

 

Cash paid towards existing partner debt

 

 

1,200,000

 

Preferred Stock

 

 

5,000,000

 

Total consideration

 

$ 7,000,000

 

   

Cash

 

$ 554,714

 

Accounts receivable

 

 

440,146

 

Other Assets

 

 

215,646

 

Goodwill

 

 

4,589,770

 

Total assets acquired

 

 

5,800,276

 

Acquired partner debt

 

 

1,199,724

 

Total liabilities

 

 

1,199,724

 

Total purchase consideration

 

$ 7,000,000

 

 

 

4