EX-99.4 23 intb_ex99z4.htm PROFORMA CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2019 Proforma Consolidated Financial Statements as of September 30, 2019

 


EXHIBIT 99.4


Intelligent Buying, Inc. and Jaguaring Company

Unaudited Pro forma Combined Sheet

September 30, 2019


 

 

Historical

 

 

 

 

 

 

 

 

 

 

 

 

Intelligent Buying Inc.

 

 

Jaguaring Company

 

 

Pro forma Adjustments

 

 

Notes

 

 

Pro Forma

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 

 

$

160,211

 

 

$

458,521

 

 

 

(1)

 

 

$

618,732

 

Financial Instruments

 

 

 

 

 

10,000

 

 

 

 

 

 

 

 

 

 

10,000

 

Accounts Receivables (net)

 

 

 

 

 

67,500

 

 

 

 

 

 

 

 

 

 

67,500

 

Inventory (net of allowance)

 

 

 

 

 

32,449

 

 

 

 

 

 

 

 

 

 

32,449

 

Loan receivables

 

 

17,611

 

 

 

 

 

 

(17,611

)

 

 

(4)

 

 

 

 

TOTAL CURRENT ASSETS

 

 

17,611

 

 

 

270,160

 

 

 

440,910

 

 

 

 

 

 

 

728,681

 

NON-CURRENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets

 

 

12,043

 

 

 

 

 

 

(12,043

)

 

 

(4)

 

 

 

 

Fixed Assets (net)

 

 

2,801

 

 

 

23,778

 

 

 

 

 

 

 

 

 

 

26,579

 

TOTAL NON-CURRENT ASSETS

 

 

14,844

 

 

 

23,778

 

 

 

(12,043

)

 

 

 

 

 

 

26,579

 

TOTAL ASSETS

 

$

32,455

 

 

$

293,938

 

 

$

428,867

 

 

 

 

 

 

$

755,260

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

94,233

 

 

$

30,226

 

 

$

(1,835

)

 

 

(4)

 

 

$

122,624

 

Accrued Interest payable

 

 

 

 

 

27,819

 

 

 

(27,819

)

 

 

(4)

 

 

 

 

Loan payables - current portion

 

 

186,675

 

 

 

635,415

 

 

 

(635,415

)

 

 

(1),(4)

 

 

 

186,675

 

TOTAL CURRENT LIABILITIES

 

 

280,908

 

 

 

693,460

 

 

 

(665,069

)

 

 

 

 

 

 

309,299

 

NON-CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible notes (net of discount)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans payable non current portion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL NON-CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

280,908

 

 

 

693,460

 

 

 

(665,069

)

 

 

 

 

 

 

309,299

 

STOCKHOLDERS' EQUITY (DEFICIENCY)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

4,074

 

 

 

(2,981

)

 

 

(1),(2),(3)

 

 

 

8,350

 

Additional paid-in capital

 

 

759,761

 

 

 

6,961,860

 

 

 

(6,269,539

)

 

 

(1),(2),(3)

 

 

 

1,452,082

 

Accumulated deficit

 

 

(1,015,471

)

 

 

(7,365,456

)

 

 

7,411,421

 

 

 

(3)

 

 

 

(969,507

)

TOTAL STOCKHOLDERS' DEFICIENCY BEFORE NON-CONTROLLING INTEREST

 

 

(248,453

)

 

 

(399,522

)

 

 

1,139,900

 

 

 

 

 

 

 

491,925

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Controlling Interest

 

 

 

 

 

 

 

 

(45,964

)

 

 

(2)

 

 

 

(45,964

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL STOCKHOLDERS' DEFICIENCY

 

 

(248,453

)

 

 

(399,522

)

 

 

1,093,936

 

 

 

 

 

 

 

445,961

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY

 

$

32,455

 

 

$

293,938

 

 

$

428,867

 

 

 

 

 

 

$

755,260

 


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 Nine Months ended September 30, 2019

(Unaudited)


 

 

Historical

 

 

 

 

 

 

 

 

 

 

 

 

Intelligent Buying Inc.

 

 

Jaguaring Company

 

 

Pro forma Adjustments

 

 

Notes

 

 

Pro Forma

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUES

 

$

 

 

$

49,912

 

 

$

 

 

 

 

 

 

$

49,912

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and consulting fees (related parties)

 

 

 

 

 

797,657

 

 

 

 

 

 

 

 

 

 

797,657

 

Business development expenses

 

 

 

 

 

296,826

 

 

 

 

 

 

 

 

 

 

296,826

 

Legal and professional fees

 

 

 

 

 

96,193

 

 

 

 

 

 

 

 

 

 

96,193

 

Rent, utilities and office expenses

 

 

 

 

 

37,900

 

 

 

 

 

 

 

 

 

 

37,900

 

Travel expenses

 

 

 

 

 

6,063

 

 

 

 

 

 

 

 

 

 

6,063

 

General and administrative expenses

 

 

44,169

 

 

 

72,029

 

 

 

 

 

 

 

 

 

 

116,198

 

Selling expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL OPERATING EXPENSES

 

 

44,169

 

 

 

1,306,668

 

 

 

 

 

 

 

 

 

 

1,350,837

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOSS FROM OPERATIONS

 

 

(44,169

)

 

 

(1,256,756

)

 

 

 

 

 

 

 

 

 

(1,300,925

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSES)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized loss on financial instrument

 

 

 

 

 

(10,000

)

 

 

 

 

 

 

 

 

 

(10,000

)

Interest expenses, net

 

 

 

 

 

(66,883

)

 

 

 

 

 

 

 

 

 

(66,883

)

TOTAL OTHER INCOME (EXPENSES)

 

 

 

 

 

(76,883

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOSS BEFORE TAXES

 

 

(44,169

)

 

 

(1,333,639

)

 

 

 

 

 

 

 

 

 

(1,300,925

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROVISION FOR INCOME TAX

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS

 

$

(44,169

)

 

$

(1,333,639

)

 

$

 

 

 

 

 

 

$

(1,300,925

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS PER COMMON SHARE - BASIC AND DILUTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(0.16

)

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 September 30, 2019 combines the historical audited balance sheets of the Company and Cannavolve as of September 30, 2019, giving effect to the purchase as if it had been consummated on September 30, 2019.

 

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 September 30, 2019 and the historical statements of operations for the nine months ended September 30, 2019.


(B) Cannavolve Historical Balance Sheet


Amounts are derived from the historical balance sheet of Cannavolve as of September 30, 2019 and the historical statements of operations for the nine months ended September 30, 2019.

 

(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.