EX-99.2 3 hltk_ex992.htm PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS hltk_ex992.htm

EXHIBIT 99.2

 

HealthTalk Live, Inc. and Humbly Hemp, Inc.

Pro-Forma Balance Sheet

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HealthTalk

 

 

Humbly

 

 

Pro-Forma

 

 

Pro-Forma

 

 

 

Live, Inc.

 

 

Hemp, Inc.

 

 

Adjustments

 

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and equivalents

 

$ 3,019

 

 

$ 18,971

 

 

 

-

 

 

$ 21,990

 

Advances to related party

 

 

-

 

 

 

1,500

 

 

 

-

 

 

 

1,500

 

Total current assets

 

 

3,019

 

 

 

20,471

 

 

 

-

 

 

 

23,490

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net property and equipment

 

 

28,850

 

 

 

-

 

 

 

-

 

 

 

28,850

 

Website

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total other assets

 

 

28,850

 

 

 

-

 

 

 

-

 

 

 

28,850

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$ 31,869

 

 

$ 20,471

 

 

$ -

 

 

$ 52,340

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$ 27,592

 

 

$ 7,500

 

 

 

-

 

 

$ 35,092

 

Accrued executive compensation

 

 

-

 

 

 

4,869

 

 

 

-

 

 

 

4,869

 

Accrued interest

 

 

-

 

 

 

1,663

 

 

 

-

 

 

 

1,663

 

Convertible debt

 

 

-

 

 

 

68,000

 

 

 

-

 

 

 

68,000

 

Total current liabilities

 

 

27,592

 

 

 

82,032

 

 

 

-

 

 

 

109,624

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long term liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Due to officers

 

 

87,039

 

 

 

-

 

 

 

-

 

 

 

87,039

 

Line of credit - related party

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total current liabilities

 

 

87,039

 

 

 

-

 

 

 

-

 

 

 

87,039

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

114,631

 

 

 

82,032

 

 

 

-

 

 

 

196,663

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Series A Preferred stock

 

 

-

 

 

 

1,000

 

 

 

5,000 (1)(2)

 

 

6,000

 

Common stock

 

 

32,578

 

 

 

4,910

 

 

 

7,138 (1)(2)

 

 

44,626

 

Additional paid in capital

 

 

243,180

 

 

 

3,225

 

 

 

58,498 (1)(2)

 

 

304,903

 

Subscriptions receivable

 

 

-

 

 

 

(60 )

 

 

-

 

 

 

(60 )

Retained earnings

 

 

(358,520 )

 

 

(70,636 )

 

 

(70,636 )(1)

 

 

(499,792 )

Total Stockholders' Equity

 

 

(82,762 )

 

 

(61,561 )

 

 

-

 

 

 

(144,323 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Stockholders' Equity

 

$ 31,869

 

 

$ 20,471

 

 

$ -

 

 

$ 52,340

 

 

 
1

 

HealthTalk Live, Inc. and Humbly Hemp, Inc.

Pro-Forma Statement of Operations

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HealthTalk

 

 

Humbly

 

 

Pro-Forma

 

 

Pro-Forma

 

 

 

Live, Inc.

 

 

Hemp, Inc.

 

 

Adjustments

 

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$ 16,060

 

 

$ -

 

 

$ -

 

 

$ 16,060

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising and promotion

 

 

23,684

 

 

 

-

 

 

 

-

 

 

 

23,684

 

Depreciation and amortization

 

 

20,000

 

 

 

-

 

 

 

-

 

 

 

20,000

 

Professional fees

 

 

11,260

 

 

 

15,000

 

 

 

-

 

 

 

26,260

 

Office and other expenses

 

 

7,520

 

 

 

-

 

 

 

-

 

 

 

7,520

 

Website hosting and maintenance

 

 

2,856

 

 

 

-

 

 

 

-

 

 

 

2,856

 

Bank and credit card charges

 

 

1,288

 

 

 

-

 

 

 

-

 

 

 

1,288

 

Computer

 

 

382

 

 

 

-

 

 

 

-

 

 

 

382

 

General and administrative expenses

 

 

-

 

 

 

7,723

 

 

 

-

 

 

 

7,723

 

Product development

 

 

-

 

 

 

5,025

 

 

 

-

 

 

 

5,025

 

Executive compensation

 

 

-

 

 

 

40,000

 

 

 

-

 

 

 

40,000

 

Depreciation

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total expenses

 

 

66,990

 

 

 

67,748

 

 

 

-

 

 

 

134,738

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense - related party

 

 

-

 

 

 

(1,663 )

 

 

-

 

 

 

(1,663 )

Total other expenses

 

 

-

 

 

 

(1,663 )

 

 

-

 

 

 

(1,663 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

 

(50,930 )

 

 

(69,411 )

 

 

-

 

 

 

(120,341 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss)

 

$ (50,930 )

 

$ (69,411 )

 

$ -

 

 

$ (120,341 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of shares issued and outstanding post merger

 

 

 

 

 

 

 

 

 

 

 

 

 

 

44,665,585

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

$ -

 

 

 
2

 

HEALTHTALK LIVE, INC. AND HUMBLY HEMP, INC.

NOTES TO PRO-FORMA UNAUDITED FINANCIAL STATEMENTS

 

1. BASIS OF PRESENTATION FOR PRO-FORMA FINANCIAL STATEMENTS

 

On October 1, 2016 HealthTalk Live, Inc., (“HLTK”) acquired 100% of Humbly Hemp, Inc., (“HH”) in exchange for a total of 12,048,000 restricted shares of HLTK’s common stock and 5,000,000 shares of HLTK’s Series A preferred stock. Our new Series A Preferred Stock is convertible to common stock at a rate of five (5) shares for every share held and votes together with our common stock at a rate of sixteen (16) votes for every share held. Our new Series A Preferred Stock ranks equally, on an as-converted basis, to our common stock with respect to rights upon winding up, dissolution, or liquidation. Our Series A Preferred Stock does not have any special dividend rights.

 

Upon the closing of the share exchange with HLTK and HH, HH will become a wholly owned subsidiary of HLTK. The acquisition will be treated as a business combination. However, since HH was owned and controlled by Daniel Crawford, an officer and director of HLTK, the assets will not be adjusted to fair value and will carry over as book value.

 

The unaudited pro forma balance sheet has been developed from the audited records of HLTK for the as of March 31, 2016 and from the audited records of HH as of September 30, 2016. The unaudited pro-forma balance sheet is presented as if the acquisition had occurred on March 31, 2016.

 

The unaudited pro forma statement of operations is based upon the audited financial statements of HLTK for the year ended March 31, 2016 and the audited financial statements for HH for the year ended September 30, 2016, after giving effect to share exchange and business combination. The unaudited pro forma statement of operations is presented as if the acquisition had occurred at the beginning of the period.

 

The unaudited pro-forma financial statements and notes thereto contain forward-looking statements that involve risks and uncertainties. Therefore, our actual results may vary materially from those discussed herein. The unaudited pro-forma financial statements do not purport to be indicative of the results that would have been reported had such events actually occurred on the dates specified, nor is it indicative of our future results.

 

2. PRO-FORMA ADJUSTMENTS

 

The pro-forma adjustments included in the unaudited financial statements are as follows:

 

 

(1) Elimination of equity transactions on Humbly Hemp and cancellation of all preferred stock and common stock

 

 

 

 

(2) Issuance of 5,000,000 shares of Series A preferred stock and 12,048,000 shares of common stock

 

 

3