EX-99.2 3 s108321_ex99-2.htm EXHIBIT 99.2

Exhibit 99.2

 

Gopher Protocol, Inc., 

and UGopherServices Corp., Inc.  

Pro Forma Consolidated Financial Statements 

(unaudited)

 

Contents 

 

  Page
Pro Forma Consolidated Financial Statements:  
   
Pro Forma Consolidated Balance Sheet as of June 30, 2017 (unaudited) 2
   
Pro Forma Consolidated Statements of Operations for the six months ended June 30, 2017 (unaudited) 3
   
Pro Forma Consolidated Statements of Operations for the year ended December 31, 2016 (unaudited) 4
   
Notes to Pro Forma Consolidated Financial Statements (unaudited) 5

 

 

 

 

Gopher Protocol, Inc., 

and UGopherServices Corp., Inc. 

Pro Forma Consolidated Balance Sheet 

June 30, 2017 

(unaudited)

 

ASSETS  Gopher
Protocol		   UGopherServices   Pro forma
Adjustments		   Pro forma
Consolidated		 
   (historical)   (historical)           
Current Assets:                    
Cash  $50,046   $   $    $50,046 
Accounts receivable   —    924,844         924,844 
Inventory   —    408,825         408,825 
Prepaid expenses   1,750    9,328         11,078 
Total current assets   51,796    1,342,997    —    1,394,793 
                     
Property and equipment, net   —    204,471         204,471 
Other assets   103,005              103,005 
Goodwill   —          7,305,521a   7,305,521 
                     
 Total assets  $154,801   $1,547,468   $7,305,521   $9,007,790 
                     
LIABILITIES AND STOCKHOLDERS’DEFICIT                    
                     
Current Liabilities:                    
Accounts payable and accrued expenses  $398,798   $692,170   $ 400,000a  $1,490,968 
Derivative liability   1,981,296              1,981,296 
Total current liabilities   2,380,094    692,170    400,000    3,472,264 
                     
Convertible note payable, net of debt discount   101,589              101,589 
Note payable   —          2,600,000a   2,600,000 
Total liabilities   2,481,683    692,170    3,000,000    6,173,853 
                     
Stockholders’ Deficit:                    
Series B Preferred stock   —              — 
Series C Preferred stock   —              — 
Series D Preferred stock   1              1 
Common stock   2,447          50a   2,497 
Treasury stock   (643,059)             (643,059)
Additional paid in captial   3,983,668          5,160,769a   9,144,437 
Accumulated deficit   (5,669,939)   855,298    (855,298)a   (5,669,939)
Total stockholders’ deficit   (2,326,882)   855,298    4,305,521    2,833,937 
Total liabilities and stockholders’ deficit  $154,801   $1,547,468   $7,305,521   $9,007,790 

 

 See accompanying notes to pro forma consolidated financial statements.

 

2

 

 

Gopher Protocol, Inc., 

and UGopherServices Corp., Inc. 

Pro Forma Consolidated Statement of Operations 

For the Six Months Ended June 30, 2017 

(unaudited)

 

   Gopher
Protocol		   UGopherServices   Pro forma
Adjustments		   Pro forma
Consolidated		 
   (historical)   (historical)           
                     
Sales  $90,000   $28,018,616   $   $28,108,616 
                     
Cost of goods sold   —    26,700,019         26,700,019 
                     
Gross profit   90,000    1,318,597    —    1,408,597 
                     
Operating expenses:                    
General and administrative expenses   473,658    1,449,783         1,923,441 
Marketing expenses   117,914              117,914 
Total operating expenses   591,572    1,449,783    —    2,041,355 
                     
Loss from operations   (501,572)   (131,186)   —    (632,758)
                     
Other income (expense):                    
Amortization of debt discount   (50,213)             (50,213)
Change in fair value of derivative liability   496,037              496,037 
Interest expense and financing costs   (1,519,819)   (16,699)   (45,500)b   (1,582,018)
Total other income (expense)   (1,073,995)   (16,699)   (45,500)   (1,136,194)
                     
Loss before income taxes   (1,575,567)   (147,885)   (45,500)   (1,768,952)
                     
Income tax expense   —              — 
                     
Net loss  $(1,575,567)  $(147,885)  $(45,500)  $(1,768,952)
                     
Weighted average common shares outstanding:                    
 Basic and diluted   37,816,078              42,816,078 
                     
Net loss per share:                    
 Basic and diluted  $(0.04)  $        $(0.04)

 

 See accompanying notes to pro forma consolidated financial statements.

 

3

 

 

Gopher Protocol, Inc., 

and UGopherServices Corp., Inc. 

Pro Forma Consolidated Statement of Operations 

For the Year Ended December 31, 2016

 

   Gopher
Protocol		   UGopherServices   Pro forma
Adjustments		   Pro forma
Consolidated		 
   (historical)   (historical)           
                     
Sales  $165,000   $66,610,847   $   $66,775,847 
                     
Cost of goods sold   —    63,497,703         63,497,703 
                     
Gross profit   165,000    3,113,144    —    3,278,144 
                     
Operating expenses:                    
General and administrative expenses   1,401,338    3,489,191         4,890,529 
Marketing expenses   126,838              126,838 
Total operating expenses   1,528,176    3,489,191    —    5,017,367 
                     
Loss from operations   (1,363,176)   (376,047)   —    (1,739,223)
                     
Other income (expense):                    
Amortization of debt discount   (39,726)             (39,726)
Change in fair value of derivative liability   (177,062)             (177,062)
Interest expense and financing costs   (6,262)   (29,335)   (91,000)b   (126,597)
Total other income (expense)   (223,050)   (29,335)   (91,000)   (343,385)
                     
Loss before income taxes   (1,586,226)   (405,382)   (91,000)   (2,082,608)
                     
Income tax expense   —              — 
                     
Net loss  $(1,586,226)  $(405,382)  $(91,000)  $(2,082,608)
                     
Weighted average common shares outstanding:                    
Basic and diluted   19,902,077              24,902,077 
                     
Net loss per share:                    
Basic and diluted  $(0.08)  $         $(0.08)

 

 See accompanying notes to pro forma consolidated financial statements.

 

4

 

 

Gopher Protocol, Inc., 

and UGopherServices Corp., Inc. 

Notes to Pro Forma Consolidated Financial Statements

 

NOTE 1 - BASIS OF PRESENTATION

 

On September 1, 2017, the Gopher Protocol, Inc. (“Gopher”) entered into and closed an Asset Purchase Agreement (the “Purchase Agreement”) with RWJ Advanced Marketing, LLC (“RWJ”), a Georgia corporation, pursuant to which the Gopher purchased certain assets from RWJ, including inventory, terminals, licenses and permits and intangible assets, in consideration of $400,000, an aggregate 5,000,000 shares of common stock of the Company, secured promissory note in the amount of $2,600,000, and warrants to purchase 9,000,000 shares of common stock and the assumption of certain liabilities incurred by RWJ after the effective date as set forth in the RWJ Agreement. Gopher incorporated a wholly-owned subsidiary, UGopherServices Corp. (“UGopherServices”), to operate the acquired assets.

 

The accompanying pro forma consolidated balance sheet presents the accounts of Gopher and UGopherServices as if the Merger occurred June 30, 2017. The accompanying pro forma consolidated statement of operations presents the accounts of Gopher and UGopherServices for the six months ended June 30, 2017, and the years ended December 31, 2016 as if the Merger occurred on January 1, 2016.

 

The following adjustments would be required if the acquisition occurred as indicated above:

 

a)To record the purchase price allocation and to eliminate the retained earnings of UGopherServices.

 

b)To record interest expense on the $2.6 million acquisition note payable.

 

The unaudited consolidated pro forma financial information is presented for informational purposes only and is subject to a number of uncertainties and assumptions and do not purport to represent what the company’s actual performance or financial position would have been had the transaction occurred on the dates indicated and does not purport to indicate the financial position or results of operations as of any future date or for any future period.

 

5