EX-99.2 5 ex99-2.htm

 

Exhibit 99.2

 

Unaudited Pro Forma Combined Balance Sheet

 

   Historical     
   SKYX Platforms Corp. As of December 31, 2022   Belami, Inc. As of December 31, 2022   Pro Forma Adjustments   Note   Total 
Assets                    
Current assets:                         
Cash and cash equivalents  $6,720,543   $3,191,794   $(4,539,817)   3 a, b, and c   $5,372,520 
Accounts receivable, net   -    2,049,669              2,049,669 
Investments, available-for-sale   7,373,956    -              7,373,956 
Inventory   1,923,540    1,994,913              3,918,453 
Deferred cost of revenues   -    1,308,183              1,308,183 
Prepaid expenses and other assets   311,618    2,444,321              2,755,939 
Total current assets   16,329,657    10,988,880    (4,539,817)        22,778,720 
                          
Long-term assets:                         
Property and equipment, net   215,998    388,847              604,845 
Restricted cash   2,741,054    -              2,741,054 
Right-of-use assets, net   23,045,293    640,218              23,685,511 
Website development costs, net   -    171,959              171,959 
Intangible assets, definite life, net   662,802    449,986    (449,986)   3a   662,802 
Goodwill             23,410,677    3a and c    23,410,677 
Other assets   182,306    39,324              221,630 
Total long-term assets   26,847,453    1,690,334    22,960,691         51,498,478 
                          
Total Assets  $43,177,110   $12,679,214   $18,420,874        $74,277,198 
                          
Liabilities and Stockholders’ Equity                         
                          
Current liabilities:                         
Accounts payable and accrued expenses  $1,845,448   $4,582,307    $          $6,427,755 
Notes payable, current   405,931    -              405,931 
Deferred revenues   -    1,619,586              1,619,586 
Related party payable   104,375    -              104,375 
Operating lease liabilities, current   1,130,624    334,501              1,465,125 
Royalty obligations, current   2,638,000    -              2,638,000 
Accrued dividends payable   -    2,500,000    (2,500,000)   3c   - 
Convertible notes, current related parties   950,000    -              950,000 
Convertible notes, current   350,000    -              350,000 
Total current liabilities   7,424,378    9,036,394    (2,500,000)        13,960,772 
                          
Long term liabilities:                         
Notes payable   4,867,004    -    1,972,578    3a   6,839,582 
Operating lease liabilities   22,758,496    349,395              23,107,891 
Convertible notes   -    -    4,780,024    3d   4,780,024 
Royalty obligations   -    -              - 
Total long-term liabilities   27,625,500    349,395    6,752,602         34,727,497 
                          
Total liabilities   35,049,878    9,385,789    4,252,602         48,688,269 
                          
Commitments and Contingent Liabilities:   -                     
Redeemable preferred stock - subject to redemption: $0 par value; 20,000,000 shares authorized; 880,400 shares issued and outstanding at December 31, 2022   220,099    -              220,099 
                          
Stockholders’ Equity:                         
Common stock and additional paid-in-capital: $0 par value, 500,000,000 shares authorized; and 82,907,541 shares issued and outstanding at December 31, 2022   114,039,638    10,000    17,373,167    3a   131,422,805 
(Accumulated deficit) retained earnings   (106,070,358)   3,204,895    (3,204,895)   3a   (106,070,358)
Accumulated other comprehensive loss   (62,147)   -              (62,147)
Total stockholders’ equity   7,907,133    3,214,895    14,168,272         25,290,300 
Non-controlling interest   -    78,530    -         78,530 
Total equity (deficit)   8,127,232    3,293,425    14,168,272         25,588,929 
                        - 
Total Liabilities and Stockholders’ Equity  $43,177,110   $12,679,214   $18,420,874        $74,277,198 

 

 
 

 

Unaudited Pro Forma Combined Statement of Operations

For the year ended December 31, 2022

 

   SKYX       Proforma 
  

Platforms

Corp

  

Belami, Inc.

  

Proforma

adjustments

   Note  Total 
Revenues, net  $32,022   $88,792,097   $-      $88,824,119 
Cost of revenues   (18,913)   (58,669,299)   -       (58,688,212)
Gross income   13,109    30,122,798    -       30,135,907 
                      - 
Selling, general, and administrative expenses- related party   248,215                 248,215 
Selling, general and administrative expenses   26,390,076    25,993,497            52,383,573 
(Loss) Income from operations   (26,625,182)   4,129,301    -       (22,495,881)
                      - 
Other (income)/expense                     - 
Interest expense, net   589,009    (31,223)   2,146,395   3d   2,704,181 
Debt forgiveness   (178,250)   -            (178,250)
Total other income (expense), net   (410,759)   (31,223)   2,146,395       1,704,413 
                      - 
Net (loss) income   (27,035,941)   4,160,524    2,146,395       (20,729,022)
Net income (loss) attributable to non-controlling interest   35,442    (111,586)           (76,144)
Common stock issued pursuant to antidilutive provisions   4,691,022    -            4,691,022 
Preferred dividends   38,055    -            38,055 
Net (loss) income attributable to common stockholders   (31,800,460)   4,048,938    2,146,395       (25,605,127)
                      - 
Unrealized loss on securities   (62,147)   -            (62,147)
Comprehensive (loss) income  $(31,862,607)  $4,209,664   $2,146,395      $(25,667,274)
                        
                        
Net (loss) income per share - basic and diluted  $(0.40)       $0.58      $(0.31)
                        
Weighted average number of common shares outstanding – basic and diluted   79,492,181         3,680,122   2f   83,172,303 

 

 
 

 

SKYX PLATFORMS CORP.

 

Notes to the Unaudited Pro Forma Condensed Combined Financial Statements

 

Note 1 - ORGANIZATION AND BUSINESS DESCRIPTION

 

SKYX Platforms Corp., a corporation (the “Company”), was incorporated in Florida in May 2004.

 

The Company maintains offices in Johns Creek, Georgia, Miami and Pompano Beach, Florida, New York City, and Guangdong Province, China.

 

The Company has a series of advanced-safe-smart platform technologies. The Company’s first-generation technologies enable light fixtures, ceiling fans and other electrically wired products to be installed safely and plugged-in to a ceiling’s electrical outlet box within seconds, and without the need to touch hazardous wires. The plug and play technology method is a universal power-plug device that has a matching receptacle that is simply connected to the electrical outlet box on the ceiling, enabling a safe and quick plug and play installation of light fixtures and ceiling fans in just seconds. The plug and play power-plug technology eliminates the need of touching hazardous electrical wires while installing light fixtures, ceiling fans and other hard wired electrical products. In recent years the Company has expanded the capabilities of its power-plug product, to include advanced-safe and quick universal installation methods, as well as advanced-smart capabilities. The smart features include control of light fixtures and ceiling fans by the SkyHome App, through WIFI, Bluetooth Low Energy and voice control. It allows scheduling, energy savings eco mode, dimming, back-up emergency light, night light, light color changing and much more. The Company’s second-generation technology is an all-in-one safe and smart-advanced platform that is designed to enhance all-around safety and lifestyle of homes and other buildings.

 

Belami, Inc. is an e-commerce services provider of lighting, patio heating, and ceiling fans, based in Sacramento, California, and provides catalog and distribution breath within this home furnishing market.

 

Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of presentation

 

These pro forma unaudited combined financial statements, including the accompanying notes and related disclosures, have been prepared on an as-if basis, assuming that the transaction between the Company and Belami, Inc. has been in effect since the beginning of the period present in the results of operations by combining the historical financial statements of the entities and eliminating any intercompany balances. The Belami, Inc. acquisition is accounted for under the acquisition method of accounting.

 

The adjustments described in the following footnotes are intended to reflect the impact of the Belami, Inc. acquisition on a pro forma basis. The unaudited pro forma combined statements of operations for the year ended December 31, 2022, giving effect to Belami, Inc. acquisition as if it had occurred on January 1, 2022. The unaudited pro forma combined balance sheet as of December 31, 2022, gives effect to the Belami, Inc. acquisition as if it had occurred on December 31, 2022. The accompanying unaudited pro forma combined financial statements are presented for illustrative purposes only.

 

According to the Securities and Exchange Commission’s rules and regulations, these unaudited pro forma condensed combined financial statements included herein have been prepared. Certain information and certain footnote disclosures typically included in financial statements prepared under the U.S. generally accepted accounting principles have been condensed or omitted under such rules and regulations; however, management believes that the disclosures are adequate to make the information presented not misleading.

 

Basis of pro forma condensed combined financial statements

 

These pro forma combined financial statements include the accounts of the Company, Belami, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated.

 

 
 

 

Note 3. PROFORMA ADJUSTMENTS

 

Pro forma adjustments are necessary to reflect the estimated purchase price and to reflect amounts related to the acquisition of Belami, Inc.

 

The unaudited pro forma condensed combined financial statements do not include any adjustments for liabilities that will result from integration activities related to the Belami, Inc. acquisition. Additional assets or liabilities may be recorded that could affect amounts in the unaudited pro forma condensed combined financial statements. During the measurement period, any such adjustments to provisional amounts would increase or decrease goodwill. Adjustments that occur after the end of the measurement period will be recognized in the post-combination current period operations. Besides, Belami, Inc. may incur significant expenses for business development and expansion upon consummation of the Belami, Inc. acquisition or in subsequent quarters recorded as an expense in the consolidated statement of operations in the period in which they are incurred.

 

The proforma adjustments are as follows:

 

  a) Represents the purchase consideration of approximately $27 million which consists of the following:

 

  a. Estimated cash payments of $10.2 million;
     
  b. Fair value of shares issued of $11.8 million, including deferred shares valued at $3.21 per share; and
     
  c. Notes payable to sellers of $2 million.

 

And corresponding entries to record goodwill and eliminate existing intangible assets and eliminate historical retained earnings of Belami, Inc.

 

  b) Represents proceeds of $10.4 million generated from the issuance of convertible debt related to the acquisition of Belami, Inc., and related debt discount.
     
  c) Represents the distribution to Belami, Inc. stockholders to pay dividends of $2.5 million and a portion of the retained earnings of $2.2 million.
     
  d) Represents the retroactive adjustment for amortization of debt discount and interest expense attributable to the convertible notes issued in connection with the financing of the acquisition of Belami, Inc.
     
  e) Represents the increase in weighted average shares in connection with the issuance of shares of common stock to finance the acquisition.