EX-99.2 5 ex99-2.htm

Exhibit 99.2

INDEX TO FINANCIAL STATEMENTS

	Page No.

Virtual Interactive Technologies Corp. Pro-Forma Combined Financial Statements (Unaudited) as of and for the year ended September 30, 2019
Virtual Interactive Technologies Corp. Pro-Forma Combined Balance Sheets (Unaudited)	3
Virtual Interactive Technologies Corp. Pro-Forma Combined Statements of Operations (Unaudited)	4
Notes to Unaudited Pro-Forma Combined Financial Statements	5

UNAUDITED COMBINED PRO FORMA

FINANCIAL STATEMENTS

The following unaudited pro forma combined balance sheets as of September 30, 2019 and the unaudited pro forma combined statements of operations for the year ended September 30, 2019 give effect to the acquisition of Advanced Interactive Gaming, Inc. (“AIG”) by Virtual Interactive Technologies Corp (f/k/a Mascota Resources Corp., “VIT”) effective as of the beginning of the year ended September 30, 2019, including the related pro forma adjustments described in the notes thereto.

The acquisition was accounted for as a reverse merger because (1) AIG has the ability to elect majority of the members of the Board of Directors, (2) the management of the combined entity will consist primarily of management of AIG, and (3) the operations of AIG will be the operations of the combined entity moving forward. The pre-merger assets and liabilities of VIT were brought forward at their fair value which approximated the purchase price. As there was deminimus excess purchase price due to stock exchanges between the companies and commensurate deemed values thereof, no intangibles or goodwill were recorded in connection with the business combination.

The unaudited pro forma balance sheets have been prepared as if the transaction was recorded on AIG’s books as of September 30, 2019. The unaudited pro forma combined statement of operation has been prepared as if the proposed transaction occurred on the first day of the fiscal year presented. These pro forma statements are not necessarily indicative of the results of operations or the financial position as they may be in the future or as they might have been had the transaction become effective on the above-mentioned date.

The historical data for AIG as of and for the fiscal year ended September 30, 2019 has been derived from the audited financial statements of AIG included elsewhere in this Form 8K and VIT’s September 30, 2019 Form 10K as filed with the SEC. The historical data for VIT as of September 30, 2019 has been derived from the audited financial statements for VIT included in VIT’s September 30, 2019 Form 10K.

The unaudited pro forma combined balance sheets and statements of operations should be read in conjunction with the separate historical financial statements and notes thereto of AIG and VIT.

Virtual Interactive Technologies Corp.

Combined Pro Forma Balance Sheets

As of September 30, 2019

(Unaudited)

	AIG			VIT			Combined									Consolidated
	September 30,			September 30,			September 30,					Merger Entries				September 30,
	2019			2019			2019			Entry #		Debit		Credit		2019
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	34,324		$	1,812		$	36,136								$	36,136
Royalties receivable		269,594			-			269,594									269,594
Accounts receivable, related party		8,970			-			8,970									8,970
Notes receivable, related party		10,000			(10,000	)		-									-
Other assets		2,660			-			2,660									2,660
Total current assets	$	325,548		$	(8,188	)	$	317,360				$	-	$	-	$	317,360

Land and improvements		-			36,195			36,195									36,195
TOTAL ASSETS	$	325,548		$	28,007		$	353,555				$	-	$	-	$	353,555

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable and accrued liabilities	$	84,401		$	10,006		$	94,407								$	94,407
Notes payable, related party		-			50,900			50,900									50,900
Interest payable, related party		-			3,371			3,371									3,371
Convertible notes payable		-			10,000			10,000									10,000
Interest payable		-			5,484			5,484									5,484
Total current liabilities		84,401			79,761			164,162					-		-		164,162

LONG-TERM LIABILITIES:
Notes payable, related party		750,000			9,000			759,000									759,000
Interest payable, related party		69,341			-			69,341									69,341
Notes payable		-			45,000			45,000									45,000
Total liabilities		903,742			133,761			1,037,503					-		-		1,037,503

STOCKHOLDERS’ EQUITY (DEFICIT)
Series A Preferred Stock, $0.01 par value; 10,000,000 shares authorized; 50,000 shares issued and outstanding					500			500									500
Series B Convertible Preferred Stock, $ 0.01 par value; 10,000,000 shares authorized; 595,612 shares issued and outstanding					-			-			1)				5,956		5,956
Common Stock, $ 0.001 par value; 90,000,000 shares authorized, 6,817,484 shares issued and outstanding		62			6,849			6,911			4)		62		6,175		6,817
											3)				300
											2)		6,507

Additional paid-in-capital		4,430,039			303,741			4,733,780									4,313,011
											2)				6,507
											4)		24,237		18,124
											3)				900
											1)		5,956
											5)		416,844		737

Accumulated deficit		(5,008,295	)		(416,844	)		(5,425,139	)		3)		1,200				(5,010,232	)
											5)		737		416,844
Total stockholders’ equity (deficit)		(578,194	)		(105,754	)		(683,948	)				455,543		455,543		(683,948	)
Total liabilities and stockholders’ equity (deficit)	$	325,548		$	28,007		$	353,555				$	455,543	$	455,543	$	353,555

Virtual Interactive Technologies, Corp.

Combined Pro Forma Statements of Operations

Year Ended September 30, 2019

(Unaudited)

	AIG			VIT
	Year			Year			Combined										Combined
	ended			ended			Year ended										Year ended
	September 30,			September 30,			September 30,					Merger Entries					September 30,
	2019			2019			2019			Entry #		Debit			Credit		2019

Revenue - royalties	$	334,394		$	-		$	334,394					-			-	$	334,394

Operating expenses:
General, administrative and selling		332,640			85,019			417,659			3)		1,200			-		418,859
Research and development		208,116			-			208,116					-			-		208,116
Impairment of royalty contract		352,000			-			625,000					-			-		625,000
Total operating expenses		892,756			85,019			1,250,775					1,200			-		1,251,975

Loss before other expense		(558,362	)		(85,019	)		(916,381	)				(1,200	)		-		(917,581	)

Other expense
Interest expense, related party		182,271			3,594			185,865					-			-		185,865
Interest expense		-			3,019			3,019					-			-		3,019
Impairment of long term asset		-			90,968			90,968					-			-		90,968
Other expense		7,517						7,517					-			-		7,517
Total other expense		189,788			97,581			287,369					-			-		287,369

Net loss	$	(748,150	)	$	(182,600	)	$	(1,203,750	)			$	(1,200	)	$	-	$	(1,204,950	)

Loss per share, basic and fully diluted	$	(0.11	)	$	(0.56	)	$	(0.17	)								$	(0.17	)
Weighted average number of shares outstanding -
Basic and fully diluted		6,903,959			326,082			7,230,041										7,230,041

NOTES TO THE UNAUDITED COMBINED PRO FORMA FINANCIAL STATEMENTS

	1)	Velocity Capital Ltd. accepted 595,612 shares of Series B Preferred stock, par value $.01, in VIT in exchange for AIG debt totaling $2,404,900.
	2)	VIT effected a 20:1 reverse stock split for existing shareholders prior to the merger with AIG.
	3)	VIT issued 300,000 shares for services valued at $1,200.
	4)	Executed share exchange agreement between AIG and VIT for 5,175,000 shares on a 1:1 basis; Executed a share exchange agreement between AIG CEO and VIT issuing 1,000,000 shares of VIT for 3,900,000 shares of AIG.
	5)	Elimination of VIT’s accumulated deficit.
	6)	AIG Ltd shares were redeemed, cancelled and exchanged at a valuation of $0.001 per share. AIG, shares were issued and exchanged at a valuation of $0.004 per share. For comparison purposes, AIG, Ltd shares are being presented as a 1:4 reverse split to reflect the economics of the transaction.
	7)	The weighted average shares of VIT reflect a 1:20 reverse split approved by the majority of shareholders on September 25, 2019.