Note 2 — Recapitalization

On March 23, 2017, we completed the Merger Agreement with AP. The impact to equity of the Merger Agreement includes a) the issuance of 2,351,355 new pre-split shares of the Company’s common stock; b) the issuance of 324,327 new pre-split shares of the Company’s Series A Preferred Stock; c) the retirement of 5,000,000 shares of the Company’s pre-split common stock; and d) removing the Company’s accumulated deficit and adjusting equity for the recapitalization. Simultaneously with the Merger, the Company accepted subscriptions in a private placement offering of 476,092 new pre-split shares of the Company’s common stock in the amount of $600,000 as well as 27,027 new pre-split shares of the Company’s Series B Convertible Preferred Stock in the amount of $250,000.

The accompanying condensed consolidated statements of operations include the results of the Merger Agreement dated March 23, 2017. The pro forma effects of the acquisition on the results of operations as if the transaction had been completed on July 1, 2017 and 2016, are as follows:

	Nine months ended March 31, 2017			Nine months ended March 31, 2016
Pro forma results:
Total net revenues	$	715,158		$	369,217
Net loss		(41,140	)		(4,910	)
Net loss per common share:
Basic and diluted	$	0.00		$	0.00

The assets and liabilities of the Company on the effective date of the Merger Agreement were as follows:

Cash	$	11,798
Fixed assets		1,491
Total assets	$	13,289

Note payable	$	3,617

Preferred stock		--
Common stock		6,280
Additional paid-in capital		24,320
Accumulated deficit		(20,928	)
Total stockholders’ equity		9,672

Total liabilities and stockholders’ equity	$	13,289