EX-99.3 22 intb_ex99z3.htm PROFORMA CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2018 Proforma Consolidated Financial Statements as of December 31, 2018

 


EXHIBIT 99.3


Intelligent Buying, Inc. and Jaguaring Company

Unaudited Pro forma Combined Balance Sheets

December 31, 2018


 

 

Historical

 

 

 

 

 

 

 

 

 

 

 

 

Intelligent Buying Inc.

 

 

Jaguaring Company

 

 

Adjustments

 

 

Notes

 

 

Pro Forma

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

53,129

 

 

$

24,597

 

 

$

1,093,936

 

 

 

(1)

 

 

$

1,171,662

 

Financial Instruments

 

 

 

 

 

20,000

 

 

 

 

 

 

 

 

 

 

20,000

 

Accounts Receivables (net)

 

 

 

 

 

37,500

 

 

 

 

 

 

 

 

 

 

37,500

 

Inventory (net of allowance)

 

 

 

 

 

56,196

 

 

 

 

 

 

 

 

 

 

56,196

 

Loan Receivables

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

 

53,129

 

 

 

138,293

 

 

 

1,093,936

 

 

 

 

 

 

 

1,285,358

 

NON-CURRENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets

 

 

12,043

 

 

 

 

 

 

(12,043

)

 

 

(4)

 

 

 

 

Fixed Assets (net)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL NON-CURRENT ASSETS

 

 

12,043

 

 

 

 

 

 

(12,043

)

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

65,172

 

 

$

138,293

 

 

$

1,081,893

 

 

 

 

 

 

$

1,285,358

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

26,662

 

 

$

107,739

 

 

$

(12,043

)

 

 

(4)

 

 

$

122,358

 

Accrued Interest payable

 

 

156,675

 

 

 

1,584

 

 

 

 

 

 

 

 

 

 

158,259

 

Loan payables - current portion

 

 

 

 

 

7,042

 

 

 

 

 

 

 

 

 

 

7,042

 

TOTAL CURRENT LIABILITIES

 

 

183,337

 

 

 

116,365

 

 

 

(12,043

)

 

 

 

 

 

 

287,659

 

NON-CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible notes (net of discount)

 

 

 

 

 

280,823

 

 

 

 

 

 

 

 

 

 

280,823

 

Loans payable non current portion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL NON-CURRENT LIABILITIES

 

 

 

 

 

280,823

 

 

 

 

 

 

 

 

 

 

280,823

 

TOTAL LIABILITIES

 

 

183,337

 

 

 

397,188

 

 

 

(12,043

)

 

 

 

 

 

 

568,482

 

STOCKHOLDERS' EQUITY (DEFFICIENCY)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Stock Par value $.001, 25,000,000 shares authorized, 1,000,000 issued and outstanding after the merger

 

 

 

 

 

 

 

 

1,000

 

 

 

(2)

 

 

 

1,000

 

Common stock, Par value $.001, 50,000,000 shares authorized, 8,349,968 shares issued and outstanding after the merger

 

 

7,257

 

 

 

3,468

 

 

 

(2,981

)

 

 

(1),(2),(3)

 

 

 

7,744

 

Additional paid-in capital

 

 

759,761

 

 

 

5,769,453

 

 

 

(4,935,899

)

 

 

(1),(2),(3)

 

 

 

1,593,315

 

Accumulated deficit

 

 

(885,183

)

 

 

(6,031,816

)

 

 

6,053,677

 

 

 

(3)

 

 

 

(863,322

)

TOTAL STOCKHOLDERS' DEFICIENCY BEFORE NON-CONTROLLING INTEREST

 

 

(118,165

)

 

 

(258,895

)

 

 

1,115,797

 

 

 

 

 

 

 

738,737

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Controlling Interest

 

 

 

 

 

 

 

 

(21,861

)

 

 

(2)

 

 

 

(21,861

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL STOCKHOLDERS' DEFICIENCY

 

 

(118,165

)

 

 

(258,895

)

 

 

1,093,936

 

 

 

 

 

 

 

716,876

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY

 

$

65,172

 

 

$

138,293

 

 

$

1,081,893

 

 

 

 

 

 

$

1,285,358

 


Notes:

(1)

Shares issued in private placements

(2)

Shares exchanged in reorganization agreeement

(3)

Eliminate common stock and accumulated deficit of Jaguaring Company

(4)

Eliminate intercompany balances


See accompanying notes to unaudited financial statements





 


Intelligent Buying, Inc. and Jaguaring Company

Pro forma Combined Statements of Operations

For the year ended December 31, 2018

(Unaudited)


 

 

Historical

 

 

 

 

 

 

 

 

 

 

 

 

Intelligent Buying Inc.

 

 

Jaguaring Company

 

 

Adjustments

 

 

Notes

 

 

Pro Forma

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUES

 

$

 

 

$

26,038

 

 

$

 

 

 

 

 

 

$

26,038

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and consulting fees (related parties)

 

 

 

 

 

1,256,853

 

 

 

 

 

 

 

 

 

 

1,256,853

 

Business development expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Legal and professional fees

 

 

 

 

 

46,306

 

 

 

 

 

 

 

 

 

 

46,306

 

Rent, utilities and office expenses

 

 

 

 

 

43,753

 

 

 

 

 

 

 

 

 

 

43,753

 

Travel expenses

 

 

 

 

 

15,637

 

 

 

 

 

 

 

 

 

 

15,637

 

General and administrative expenses

 

 

94,961

 

 

 

40,861

 

 

 

 

 

 

 

 

 

 

135,822

 

Selling expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL OPERATING EXPENSES

 

 

94,961

 

 

 

1,403,410

 

 

 

 

 

 

 

 

 

 

1,498,371

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOSS FROM OPERATIONS

 

 

(94,961

)

 

 

(1,377,372

)

 

 

 

 

 

 

 

 

 

(1,472,333

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSES)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized loss on financial instrument

 

 

 

 

 

(70,000

)

 

 

 

 

 

 

 

 

 

 

(70,000

)

Interest expenses, net

 

 

 

 

 

(13,735

)

 

 

 

 

 

 

 

 

 

 

(13,735

)

TOTAL OTHER INCOME (EXPENSES)

 

 

 

 

 

(83,735

)

 

 

 

 

 

 

 

 

 

(83,735

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOSS BEFORE TAXES

 

 

(94,961

)

 

 

(1,461,107

)

 

 

 

 

 

 

 

 

 

(1,556,068

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROVISION FOR INCOME TAX

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS

 

$

(94,961

)

 

$

(1,461,107

)

 

$

 

 

 

 

 

 

$

(1,556,068

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS PER COMMON SHARE - BASIC AND DILUTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(0.19

)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,349,968

 


See accompanying notes to unaudited financial statements






INTELLIGENT BUYING INC.

NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

 


1.

Description of Transaction

 

On February 14, 2020, we entered into an Agreement and Plan of Reorganization (the “Agreement”) with Jaguaring Company d/b/a Cannavolve (“Cannavolve”) and each of the 37 shareholders of Cannavolve who executed a counterpart signature to the Agreement (the “Cannavolve Shareholders”). Pursuant to the Agreement, the Company agreed to acquire an aggregate of up to 33,674,262 shares of Cannavolve constituting up to 81.5% of the issued and outstanding shares of Cannavolve from the Cannavolve Shareholders in exchange for 702,111 shares of the Company, constituting up to 9.6% of the issued and outstanding shares of common stock, $0.001 par value per share (the “Common Stock”), of the Company.


Pursuant to the Agreement, the Company agreed to file a Certificate of Determination with the State of California, as soon as practicable after the closing of the Share Exchange (“Closing”), creating a new class of preferred stock of the Company, the Series B Preferred Stock (the “New Preferred”) , and further agreed to issue, as a post-closing covenant, 1,000,000 shares of the New Preferred to Principal Holdings, LLC (“Principal”), in consideration of Principal successfully negotiating the Agreement and performing due-diligence in connection with the Agreement.


The Share Exchange closed on February 14, 2020. At Closing, pursuant to the Agreement, we issued an aggregate of 702,111 shares of Common Stock to the Cannavolve Shareholders in exchange for 33,674,262 shares of Cannavolve common stock, constituting 81.5% of the issued and outstanding shares of Cannavolve, resulting in Cannavolve becoming our 81.5% owned subsidiary.


At the Closing, Bagel Hole returned to INTB for cancellation and retirement, 3,446,950 shares of Common Stock owned by Bagel Hole.  Also at Closing, Mr. Romanzi resigned from all officer and director positions with the Company. At Closing, the following individuals were appointed to the indicated positions:


George Furlan – Chief Operating Officer, Interim Chief Executive Officer and Interim Chief Financial Officer

Dante Jones – sole director

James Mansour – Chief Marketing Officer


2.

Basis of Pro Forma Presentation


The unaudited pro forma combined financial information was prepared using the acquisition method of accounting and is based on the historical consolidated financial statements of the Company and Cannavolve. The acquisition method of accounting is set forth in Accounting Standards Codification (“ASC”) 805, Business Combinations, and uses the fair value concepts defined in ASC 820, Fair Value Measurement. Under the acquisition method of accounting, the assets acquired, and liabilities assumed are generally recorded as of the completion of the purchase at their respective fair values and added to those of the Company.  Financial statements and reported results of operations of the Company issued after completion of the purchase will reflect these fair value adjustments, but the Company’s previously issued historical financial statements will not be retroactively restated.

 

The unaudited pro forma combined financial information has been prepared based on the historical consolidated financial statements of the Company and Cannavolve. The unaudited pro forma combined balance sheet as of December 31, 2018 combines the historical audited balance sheets of the Company and Cannavolve as of December 31, 2018, giving effect to the purchase as if it had been consummated on December 31, 2018.

 

The historical consolidated financial statements have been adjusted in the unaudited pro forma condensed combined financial information to give pro forma effect to events that are: (i) directly attributable to the purchase; (ii) factually supportable; and (iii) with respect to the statement of operations, expected to have a continuing impact on the combined results of operations. The unaudited pro forma combined financial information does not reflect the impact of possible revenue enhancements or cost savings initiatives.





INTELLIGENT BUYING INC.

NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

 


3.

Adjustments to Unaudited Pro Forma Combined Balance Sheet and Statements of Operations


Presented below are the Notes to the accompanying unaudited pro forma condensed combined balance sheet:


(A) Intelligent Buying Inc. Historical Balance Sheet


Amounts are derived from the historical balance sheet of Intelligent Buying Inc. as of December 31, 2018 and the historical statements of operations for the year ended December 31, 2018.


(B) Cannavolve Historical Balance Sheet


Amounts are derived from the historical balance sheet of Cannavolve as of December 31, 2018 and the historical statements of operations for the year ended December 31, 2018.

 

(1) Shares issued in private placement


Amount is derived as the $1,093,936 raised in private placements related to the Share Exchange/


(2) Preferred shares issuance


Amount is derived from the issuance of preferred shares exchanged in reorganization agreement.


(3) Elimination of Cannavolve Equity and Issuance of Common Stock for Purchase


Amount is derived from the elimination of Cannavolve historical common stock and accumulated deficit, offset by the shares of common stock of the Company (par value $0.001) issued to shareholders of Cannavolve and shares cancelled as part of the Share Exchange.