EX-99.03 4 twgl_ex99z03.htm PRO FORMA FINANCIAL INFORMATION

Exhibit 99.03

 

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL DATA OF 20/20 GLOBAL, INC.

 

The following unaudited pro forma combined condensed balance sheets and the unaudited pro forma combined condensed statements of operations is based on the separate historical balance sheet and statement of operations of 20/20 Global, Inc. and Mycotopia Therapies Inc. after giving effect to the acquisition. The unaudited pro forma combined condensed balance sheet as of December 31, 2019 and September 30, 2020 and the unaudited pro forma combined condensed statements of operations for the year ended December 31, 2019, and the three and nine months ended September 30, 2020 is presented as if the acquisition had occurred on January 1, 2019 and combines the historical results of 20/20 Global, Inc. and Mycotopia Therapies Inc. for periods then ended.

 

The unaudited pro forma combined condensed balance sheet and the unaudited pro forma combined condensed statement of operations is provided for informational purposes only. The unaudited pro forma combined condensed balance sheet and the unaudited pro forma combined condensed statement of operations is not necessarily, and should not be assumed to be, an indication of the results that would have been achieved had the acquisition been completed as of the dates indicated or that may be achieved in the future and should not be taken as representative of future consolidated results of operations or financial condition of the Company. Furthermore, no effect has been given in the unaudited pro forma combined condensed balance sheet and the unaudited pro forma combined condensed statement of operations for synergistic benefits and potential cost savings, if any, that may be realized through the combination of the two companies or the costs that may be incurred in integrating their operations.

 


1



20/20 Global, Inc.

Pro Forma Condensed Combined Balance Sheet

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical

 

 

 

 

 

 

Pro Forma

 

As of December 31, 2019

 

 

20/20 Global, Inc.

 

 

Mycotopia Therapies Inc.

 

 

Adjustments

 

Combined Balance Sheet

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash

$

 209,164

 

$

                                           -

 

 

$

                                      -

 

$

                               209,164

Prepaid expenses and other current assets

 

          7,606

 

 

                                           -

 

 

 

                                      -

 

 

                                   7,606

Other deposits and receivables

 

                    50,100

 

 

                                           -

 

 

 

                                      -

 

 

                                 50,100

Note receivable

 

                      1,000

 

 

                                           -

 

 

 

                                      -

 

 

                                   1,000

Assets of discontinued operations

 

                  946,715

 

 

                                           -

 

A

 

                         (350,000)

 

 

                               596,715

Total current assets

 

               1,214,585

 

 

                                           -

 

 

 

 

 

 

                               864,585

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

                         548

 

 

                                           -

 

 

 

                                      -

 

 

                                      548

Investment in PsyTech Inc.

 

                             -

 

 

                                           -

 

B

 

                          210,000

 

 

                               210,000

Goodwill

 

                             -

 

 

                                           -

 

A

 

                          350,220

 

 

                               350,220

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

$

               1,215,133

 

$

                                           -

 

 

$

                          210,220

 

$

                            1,425,353

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' DEFICIT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

$

                    55,967

 

$

                                      220

 

 

$

                                      -

 

$

                                 56,187

Liabilities of discontinued operations

 

                  507,263

 

 

                                           -

 

 

 

                                      -

 

 

                               507,263

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

                  563,230

 

 

                                      220

 

 

 

                                      -

 

 

                               563,450

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value; 5,000,000 shares authorized and no shares issued or outstanding

 

                             -

 

 

                                           -

 

 

 

                                      -

 

 

                                           -

Common stock $0.001 par value; 100,000,000 shares authorized, 12,425,420 shares issued and outstanding as of December 31, 2019

 

                    12,425

 

 

                                           -

 

 

 

                                      -

 

 

                                 12,425

Additional paid-in capital

 

                    26,246

 

 

                                           -

 

B

 

                          210,000

 

 

                               236,246

Retained earnings

 

                  613,232

 

 

                                     (220)

 

A

 

                                 220

 

 

                               613,232

Total stockholders' equity

 

                  651,903

 

 

                                     (220)

 

 

 

                          210,220

 

 

                               861,903

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

               1,215,133

 

$

                                           -

 

 

$

                          210,220

 

$

                            1,425,353


2



20/20 Global, Inc.

Pro Forma Condensed Combined Income Statement

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Historical

 

 

Pro Forma

 

For the Year Ended December 31, 2019

 

 

20/20 Global, Inc.

 

 

Mycotopia Therapies Inc.

 

 

 

Combined Income Statement

 

 

 

 

 

 

 

 

 

 

Revenue

$

                             -

 

$

                                           -

 

 

$

                                                 -

Cost of revenues

 

                             -

 

 

                                           -

 

 

 

                                                 -

Gross profit

 

                             -

 

 

                                           -

 

 

 

                                                 -

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

                  123,576

 

 

                                      220

 

 

 

                                      123,796

Salaries and wages

 

                  119,298

 

 

                                           -

 

 

 

                                      119,298

Taxes - payroll

 

                      8,844

 

 

                                           -

 

 

 

                                          8,844

Total operating expenses

 

                  251,718

 

 

                                      220

 

 

 

                                      251,938

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

                (251,718)

 

 

                                     (220)

 

 

 

                                    (251,938)

 

 

 

 

 

 

 

 

 

 

Other income:

 

 

 

 

 

 

 

 

 

Interest income

 

                    16,253

 

 

                                           -

 

 

 

                                        16,253

Interest expense

 

                           (8)

 

 

                                           -

 

 

 

                                               (8)

Other income

 

                    22,251

 

 

                                           -

 

 

 

                                        22,251

Loss on legal settlement

 

                  (40,000)

 

 

                                           -

 

 

 

                                      (40,000)

Total other income (expense)

 

                    (1,504)

 

 

                                           -

 

 

 

                                        (1,504)

 

 

 

 

 

 

 

 

 

 

Net loss before provision for income tax

 

                (253,222)

 

 

                                     (220)

 

 

 

                                    (253,442)

Provision for income tax expense

 

                             -

 

 

                                           -

 

 

 

                                                 -

Net loss from continuing operations

 

                (253,222)

 

 

                                     (220)

 

 

 

                                    (253,442)

Net income from discontinued operations, net of tax

 

                  258,025

 

 

                                           -

 

 

 

                                      258,025

Net (loss) income

$

                      4,803

 

$

                                     (220)

 

 

$

                                          4,583

 

 

 

 

 

 

 

 

 

 

Basic and fully diluted loss per share from continuing operations

$

                      (0.02)

 

$

                                    (0.00)

 

 

$

                                          (0.02)

Basic and fully diluted earnings per share from discontinued operations

$

                        0.02

 

$

                                         -   

 

 

$

                                            0.02

Basic and fully diluted earnings per share

$

                        0.00

 

$

                                    (0.00)

 

 

$

                                            0.00

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic and diluted

 

             12,425,420

 

 

                            1,000,000

 

 

 

                                 12,425,420


3



20/20 Global, Inc.

Pro Forma Condensed Combined Balance Sheet

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical

 

 

 

 

 

 

Pro Forma

 

 

As of September 30, 2020

 

 

20/20 Global, Inc.

 

 

Mycotopia Therapies Inc.

 

 

 

Adjustments

 

 

Combined Balance Sheet

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash

$

                    51,874

 

$

                               117,933

 

 

$

                                           -

 

$

                               169,807

Other deposits and receivables

 

                    48,096

 

 

                                           -

 

 

 

                                           -

 

 

                                 48,096

Assets of discontinued operations

 

                  384,807

 

 

                                           -

 

A

 

                              (350,000)

 

 

                                 34,807

Total current assets

 

                  484,777

 

 

                               117,933

 

 

 

 

 

 

                               252,710

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in PsyTech

 

                             -

 

 

                                           -

 

B

 

                               210,000

 

 

                               210,000

Goodwill

 

                             -

 

 

                                           -

 

A

 

                               358,511

 

 

                               358,511

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

$

                  484,777

 

$

                               117,933

 

 

$

                               218,511

 

$

                               821,221

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' DEFICIT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

$

                      1,149

 

$

                                   1,444

 

 

$

                                           -

 

$

                                   2,593

Total current liabilities

 

                      1,149

 

 

                                   1,444

 

 

 

 

 

 

                                   2,593

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes payable, related party

 

                             -

 

 

                               125,000

 

 

 

                                           -

 

 

                               125,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

                      1,149

 

 

                               126,444

 

 

 

                                           -

 

 

                               127,593

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value; 5,000,000 shares authorized and no shares issued or outstanding

 

                             -

 

 

                                           -

 

 

 

                                           -

 

 

                                           -

Common stock $0.001 par value; 100,000,000 shares authorized, 12,925,420 shares issued and outstanding as of December 31, 2019

 

                    12,925

 

 

                                           -

 

 

 

                                           -

 

 

                                 12,925

Additional paid-in capital

 

                    50,746

 

 

                                           -

 

B

 

                               210,000

 

 

                               260,746

Retained earnings

 

                  419,957

 

 

                                  (8,511)

 

A

 

              8,511

 

 

         419,957

Total stockholders' equity

 

                  483,628

 

 

                                  (8,511)

 

 

 

                               218,511

 

 

                               693,628

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

                  484,777

 

$

                               117,933

 

 

$

                               218,511

 

$

                               821,221


4



20/20 Global, Inc.

Pro Forma Condensed Combined Income Statement for the three months ended September 30, 2020

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical

 

 

Pro Forma

 

 

For the three months ending September 30, 2020

 

 

20/20 Global, Inc.

 

 

Mycotopia Therapies Inc.

 

 

 

Combined Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

General and administrative expenses

$

                    24,013

 

$

                                   2,356

 

 

$

                                        26,369

Consulting - related party

 

                    25,000

 

 

                                           -

 

 

 

                                        25,000

Total operating expenses

 

                    49,013

 

 

                                   2,356

 

 

 

                                        51,369

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

                  (49,013)

 

 

                                  (2,356)

 

 

 

                                      (51,369)

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

Interest income

 

                         280

 

 

                                           -

 

 

 

                                             280

Interest expense

 

                             -

 

 

                                     (551)

 

 

 

                                           (551)

Total other income (expense)

 

                         280

 

 

                                     (551)

 

 

 

                                           (271)

 

 

 

 

 

 

 

 

 

 

Net loss before provision for income tax

 

                  (48,733)

 

 

                                  (2,907)

 

 

 

                                      (51,640)

Provision for income tax expense

 

                             -

 

 

                                           -

 

 

 

                                                 -

Net loss from continuing operations

 

                  (48,733)

 

 

                                  (2,907)

 

 

 

                                      (51,640)

Net (loss) income from discontinued operations before provision for income tax

 

                  (30,324)

 

 

                                           -

 

 

 

                                      (30,324)

Provision for income tax expense from discontinued operations

 

                             -

 

 

                                           -

 

 

 

                                                 -

Net (loss) income from discontinued operations

 

                  (30,324)

 

 

                                           -

 

 

 

                                      (30,324)

Net (loss) income

 

                  (79,057)

 

 

                                  (2,907)

 

 

 

                                      (81,964)

 

 

 

 

 

 

 

 

 

 

Basic and fully diluted earnings per share from continuing operations

$

                      (0.00)

 

$

                                    (0.00)

 

 

$

                                          (0.00)

Basic and fully diluted (loss) earnings per share from discontinued operations

$

                      (0.00)

 

$

                                         -   

 

 

$

                                          (0.00)

Basic and fully diluted (loss) earnings per share

$

                      (0.01)

 

$

                                    (0.00)

 

 

$

                                          (0.01)

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic and diluted

 

             12,816,724

 

 

                            1,000,000

 

 

 

                                 12,816,724


5



20/20 Global, Inc.

Pro Forma Condensed Combined Income Statement for the nine months ended September 30, 2020

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical

 

 

Pro Forma

 

 

For the nine months ending September 30, 2020

 

 

20/20 Global, Inc.

 

 

Mycotopia Therapies Inc.

 

 

Combined Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

General and administrative expenses

$

                    85,448

 

$

                                   7,067

 

$

                                        92,515

Consulting - related party

 

                    25,000

 

 

                                           -

 

 

                                        25,000

Total operating expenses

 

                  110,448

 

 

                                   7,067

 

 

                                      117,515

 

 

 

 

 

 

 

 

 

Loss from operations

 

                (110,448)

 

 

                                  (7,067)

 

 

                                    (117,515)

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Interest income

 

                      2,143

 

 

                                           -

 

 

                                          2,143

Interest expense

 

                             -

 

 

                                  (1,224)

 

 

                                        (1,224)

Total other income (expense)

 

                      2,143

 

 

                                  (1,224)

 

 

                                             919

 

 

 

 

 

 

 

 

 

Net loss before provision for income tax

 

                (108,305)

 

 

                                  (8,291)

 

 

                                    (116,596)

Provision for income tax expense

 

                             -

 

 

                                           -

 

 

                                                 -

Net loss from continuing operations

 

                (108,305)

 

 

                                  (8,291)

 

 

                                    (116,596)

Net (loss) income from discontinued operations before provision for income tax

 

                  (84,970)

 

 

                                           -

 

 

                                      (84,970)

Provision for income tax expense from discontinued operations

 

                             -

 

 

                                           -

 

 

                                                 -

Net (loss) income from discontinued operations

 

                  (84,970)

 

 

                                           -

 

 

                                      (84,970)

Net (loss) income

 

                (193,275)

 

 

                                  (8,291)

 

 

                                    (201,566)

 

 

 

 

 

 

 

 

 

Basic and fully diluted earnings per share from continuing operations

$

                      (0.01)

 

$

                                    (0.01)

 

$

                                          (0.01)

Basic and fully diluted (loss) earnings per share from discontinued operations

$

                      (0.01)

 

$

                                         -   

 

$

                                          (0.01)

Basic and fully diluted (loss) earnings per share

$

                      (0.02)

 

$

                                    (0.01)

 

$

                                          (0.02)

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic and diluted

 

             12,556,807

 

 

                            1,000,000

 

 

                                 12,556,807


6



Note 1 – Basis of Pro Forma Presentation

 

The acquisition was accounted for under the purchase method of accounting in accordance with ASC 805. The fair value of assets acquired and liabilities assumed was based upon a preliminary valuation and the Company’s estimates and assumptions are subject to change within the measurement period. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates.

 

The unaudited pro forma condensed combined balance sheets as of December 31, 2019 are derived from our audited balance sheet and the audited balance sheet of Mycotopia Therapies Inc., in each case as of December 31, 2019.

 

The unaudited pro forma condensed combined balance sheets as of September 30, 2020 are derived from our unaudited balance sheet and the unaudited balance sheet of Mycotopia Therapies Inc., in each case as of September 30, 2020.

 

The unaudited pro forma condensed combined income statements for the year ending December 31, 2019 are derived from our audited statement of operations and the audited statement of operations of Mycotopia Therapies Inc., in each case for the year ending December 31, 2019.

 

The unaudited pro forma condensed combined income statements for the three and nine months ending September 30, 2020 are derived from our unaudited statement of operations and the unaudited statement of operations of Mycotopia Therapies Inc., in each case for the three and nine months ending September 30, 2020.

 

Note 2 – Pro Forma Adjustments

 

The following pro forma adjustments are included in the Company’s unaudited pro forma combined financial information:

 

A.To record the cash component of the consideration paid for Mycotopia Therapies Inc. and the preliminary fair value of goodwill in connection with the acquisition. 

 

B.To record the preliminary fair value of the acquisition of PsychedeliTech, Inc., an Ontario corporation (“PsyTech”). In accordance with the terms of the acquisition, Ehave will transfer 1,050,000 shares of PsyTech to Mycotopia.  


7