EX-99.2 23 king_ex992.htm UNAUDITED PRO FORMA CONDENSED king_ex992.htm

EXHIBIT 99.2

 

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS

 

The following unaudited pro forma condensed combined financial information is presented to illustrate the effect of the Merger of Renovo Resource Solutions, Inc. and Kingfish Holding Corporation. The information under the “Unaudited Pro Forma Condensed Combined Balance Sheet” in the table below gives effect to the Merger as if it had taken place on October 1, 2022, and combines the unaudited historical condensed consolidated balance sheet of Renovo Resource Solutions, Inc. and Kingfish Holding Corporation as of September 30, 2023.

 

The unaudited pro forma condensed combined statement of operations for the year ended September 30, 2023 give effect to the Merger as if it had occurred on October 1, 2022, the first day of Kingfish Holding Corporation’s fiscal year 2023, and combines the historical results of Kingfish Holding Corporation and Renovo Resource Solutions, Inc. The unaudited pro forma condensed combined statement of operations for the year ended September 30, 2023 combines the unaudited historical condensed consolidated statements of operations and comprehensive income of Kingfish Holding Corporation and Renovo Resource Solutions, Inc. for the year ended September 30, 2023.

 

The historical financial statements of Kingfish Holding Corporation and Renovo Resource Solutions, Inc. have been adjusted in the accompanying unaudited pro forma condensed combined financial information to give effect to the transaction accounting adjustments that are necessary to account for the Merger in accordance with U.S. GAAP. The unaudited pro forma condensed combined financial information does not include any adjustments not otherwise described herein. The unaudited pro forma adjustments are based upon available information and certain assumptions that management believes are reasonable.

 

The adjustments presented to the unaudited pro forma condensed combined financial information have been identified and presented to provide relevant information necessary for an accurate understanding of the combined company upon consummation of the Merger. The unaudited pro forma condensed combined financial information is based on assumptions and adjustments that are described in the accompanying notes. The unaudited pro forma condensed combined financial information is for illustrative purposes only. The financial results may have been different had the companies always been combined. The unaudited pro forma condensed combined financial information should not be relied upon as being indicative of the historical results that would have been achieved had the companies always been combined or the future results that the combined company will experience. The actual amounts recorded as of the completion of the Merger may differ materially from the information presented in the unaudited pro forma combined financial information as a result of the amount of cash used by Kingfish Holding Corporation between the signing of the Merger Agreement and the Closing Date, the timing of the closing of the Merger, and other changes in the amounts or estimated fair value of Kingfish Holding Corporation’s assets and liabilities prior to the Closing Date. The combined company believes that its assumptions and methodologies provide a reasonable basis for presenting all the significant effects of the transactions based on information available to management at this time and that the unaudited pro forma transaction accounting adjustments give appropriate effect to those assumptions and are properly applied in the unaudited pro forma condensed combined financial information.

 

The unaudited pro forma condensed combined financial information should be read in conjunction with:

 

The audited historical consolidated financial statements of Kingfish Holding Corporation as of and for the year ended September 30, 2023 and 2022 and the related notes set forth in the Annual Report on Form 10-K filed with the SEC on December 19, 2023, incorporated by reference into this Report and

 

 
F-1

 

 

Kingfish Holding Corporation

Unaudited Pro Forma Condensed Combined Balance Sheet

As of September 30, 2023

(In Dollars) 

 

 

 

Historical

 

 

 

 

 

 

 

 

 

Kingfish Holding Corporation

 

 

Renovo Resource Solutions, Inc.

 

 

Transaction

Adjustments

 

 

Notes below

 

 

Pro Forma

Combined

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$ 1,395

 

 

$ 821,771

 

 

$ --

 

 

 

 

 

$ 823,166

 

Advances to Related Party

 

-

 

 

 

173,713

 

 

 

(173,713 )

 

 

1

 

 

 

-

 

Deferred Tax Asset

 

 

--

 

 

 

113,243

 

 

 

--

 

 

 

 

 

 

 

113,243

 

Inventory

 

 

-

 

 

 

177,149

 

 

 

--

 

 

 

 

 

 

 

177,149

 

Total current assets

 

 

1,395

 

 

 

1,285,876

 

 

 

(173,713 )

 

 

 

 

 

 

1,113,558

 

Property and equipment, net

 

 

--

 

 

 

50,952

 

 

 

 

 

 

 

 

 

 

50,952

 

Due from Related Party

 

 

--

 

 

 

1,009,580

 

 

 

 

 

 

 

 

 

 

1,009,580

 

Loan to KSSH, Related Party

 

 

 

 

 

200,000

 

 

 

(200,000 )

 

 

3

 

 

 

--

 

Other assets

 

 

 

 

 

11,941

 

 

 

(10,981 )

 

 

2

 

 

 

960

 

Total assets

 

$ 1,395

 

 

$ 2,558,349

 

 

$ (384,694 )

 

 

 

 

 

$ 2,175,050

 

Liabilities and Stockholders Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$ 94,156

 

 

$ 13,036

 

 

$

 

 

 

 

 

 

$ 107,192

 

Accrued Interest Payable

 

 

45,019

 

 

 

440,843

 

 

 

(10,980 )

 

 

2

 

 

 

474,882

 

Convertible Notes Payable to Related Party

 

 

90,000

 

 

 

--

 

 

 

 

 

 

 

 

 

 

90,000

 

Taxes Payable

 

 

--

 

 

 

377,717

 

 

 

---

 

 

 

 

 

 

 

377,717

 

Advances From Related party

 

 

173,714

 

 

 

---

 

 

 

(173,714 )

 

 

1

 

 

 

--

 

Related Party Loans

 

 

130,000

 

 

 

1,199,396

 

 

 

 

 

 

 

 

 

 

1,329,396

 

Total current liabilities

 

 

532,889

 

 

 

2,030,992

 

 

 

(184,694 )

 

 

 

 

 

 

2,379,187

 

Long Term Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes Payable

 

 

--

 

 

 

--

 

 

 

--

 

 

 

 

 

 

 

--

 

Notes Payable Related Party Loans

 

 

250,000

 

 

 

--

 

 

 

(200,000 )

 

 

3

 

 

 

50,000

 

Recission Liability

 

 

20,000

 

 

 

--

 

 

 

 

 

 

 

 

 

 

20,000

 

Total liabilities

 

 

802,889

 

 

 

2,030,992

 

 

 

(384,694 )

 

 

 

 

 

 

2,449,187

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

12,094

 

 

 

--

 

 

 

(12,010 )

 

4 & 5

 

 

 

84

 

Additional paid-in capital

 

 

4,378,213

 

 

----

 

 

 

12,010

 

 

4 & 5

 

 

 

4,390,223

 

Recission liability Equity

 

 

(20,000 )

 

 

 

 

 

 

 

 

 

 

 

 

 

(20,000 )

Accumulated Retained Earnings (Deficit)

 

 

(5,171,801 )

 

 

527,357

 

 

 

--

 

 

 

 

 

 

 

(4,644,444 )

Total stockholders’ equity (deficit)

 

 

(801,494 )

 

 

527,357

 

 

 

--

 

 

 

 

 

 

 

(274,137 )

Total liabilities and stockholders equity

 

$ 1,395

 

 

$ 2,558,349

 

 

$ (384,694 )

 

 

 

 

 

$ 2,175,050

 

 

See the accompanying notes to unaudited pro forma combined financial information.

 

 
F-2

 

  

Kingfish Holding Corporation

Unaudited Pro Forma Condensed Combined Statement of Operations

For the year ended September 30, 2023

(in dollars)

 

 

 

Historical

 

 

 

 

 

 

 

 

 

Kingfish Holding Corporation

 

 

Renovo Resource Solutions, Inc.

 

 

Transaction

Adjustments

 

 

Notes

below

 

 

Pro Forma

Combined

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

 

 

$ 3,917,511

 

 

 

 

 

 

 

 

$ 3,917,511

 

Total Revenues

 

 

---

 

 

 

3,917,511

 

 

 

 

 

 

 

 

 

 

 

3,917,511

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Goods Sold

 

 

--

 

 

 

2,093,820

 

 

 

 

 

 

 

 

 

 

 

2,093,820

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

 

--

 

 

 

1,823,691

 

 

 

 

 

 

 

 

 

 

 

1,823,691

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

--

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation Expense

 

 

--

 

 

 

14,971

 

 

 

 

 

 

 

 

 

 

$ 14,971

 

Insurance Expense

 

 

--

 

 

 

48,350

 

 

 

 

 

 

 

 

 

 

 

48,350

 

Payroll Expense

 

 

--

 

 

 

414,914

 

 

 

 

 

 

 

 

 

 

 

414,914

 

Rent Expense

 

 

 

 

 

 

177,323

 

 

 

 

 

 

 

 

 

 

 

177,323

 

General and Administrative

 

 

259,421

 

 

 

316,116

 

 

 

 

 

 

 

 

 

 

 

575,537

 

Total Operating Expenses

 

 

259,421

 

 

 

971,674

 

 

 

 

 

 

 

 

 

 

1,231,095

 

Income (loss) from operations

 

 

(259,421 )

 

 

852,017

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income/(expense), net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income

 

 

--

 

 

 

--

 

 

 

 

 

 

 

 

 

 

 

--

 

Interest Expense, net

 

 

(17,882 )

 

 

(330,405 )

 

 

 

 

 

 

 

 

 

 

(348,287 )

Total other income/(expense)

 

 

(17,882 )

 

 

(330,405 )

 

 

 

 

 

 

 

 

 

 

(348,287 )

Net Income (loss) Before Income Taxes

 

 

(277,303 )

 

 

521,612

 

 

 

 

 

 

 

 

 

 

 

244,309

 

Provision for Income Taxes

 

 

0

 

 

 

130,403

 

 

 

 

 

 

 

 

 

 

 

130,403

 

Net Income (loss)

 

 

(277,303 )

 

 

391,209

 

 

 

 

 

 

 

 

 

 

 

113,906

 

Net income (loss) per common share - basic and diluted

 

$ (0.00 )

 

 

 

 

 

 

 

 

 

 

 

 

 

$ 0.14

 

Weighted average shares of common stock outstanding - basic and diluted

 

 

120,942,987

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

841,886

 

 

See the accompanying notes to unaudited pro forma combined financial information.

 

 
F-3

 

 

NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

 

Note 1

 

Elimination of intercompany advances.

 

Note 2

 

Elimination of intercompany interest payable/receivable.

 

Note 3

 

Elimination of intercompany loan payable/receivable.

 

Note 4

 

Kingfish 1 for 500 reverse common stock split.

 

Note 5

 

Issuance of 6,000 Kingfish common shares for each Renovo common shares.

 

 
F-4