EX-99.2 3 ex99-2.htm

 

Exhibit 99.2

 

PRO FORMA COMBINED FINANCIAL STATEMENTS

 

On April 20, 2020, Omnia Wellness Inc. (formerly known as Glolex, Inc.; the “Company” or “we,” “us” or “our”), entered into a Share Exchange and Reorganization Agreement (the “Exchange Agreement”) with Omnia Wellness Corporation (formerly known as Bed Therapies, Inc.) (“OWC”) and the beneficial stockholders of OWC to acquire 100% of the issued and outstanding shares of capital stock of OWC. The transactions contemplated by the Exchange Agreement were consummated on January 5, 2021 and, pursuant to the terms of the Exchange Agreement, among other things, all outstanding shares of common stock of OWC, no par value, or the OWC Shares, were exchanged for shares of our common stock, par value $0.001 per share, based on the Exchange Ratio of one share of our common stock for every one OWC Share. We refer herein to the transactions contemplated by the Exchange Agreement, collectively, as the Acquisition. Accordingly, we acquired 100% of OWC in exchange for the issuance of shares of our common stock and OWC became our wholly-owned subsidiary. As of the closing of the Acquisition (the “Closing”), Mr. Amer Samad, the former sole director and executive officer of the Company, agreed to cancel 52,656,888 shares of our common stock as part of the conditions to Closing, which were cancelled soon after the Closing.

 

At the Closing, in connection with the Acquisition, an aggregate of approximately $529,940 principal amount and $41,555 interest amount of convertible promissory notes of OWC converted in accordance with their terms into an aggregate of 1,269,665 shares of our common stock. Of such shares, 729,730 were issued to Nickolay Kukekov, a director, and 539,935 were issued to M. Jainal Bhuiyan, a director and executive officer, or their respective affiliates as the holders of such notes.

 

The unaudited pro forma combined financial statements presented below are prepared using recapitalization accounting for the Acquisition. Pro forma adjustments which give effect to certain transactions occurring as a direct result of the Acquisition are described in the accompanying unaudited notes presented on the following pages.

 

The unaudited pro forma combined balance sheet is prepared as though the Acquisition occurred at the close of business on December 31, 2020. The unaudited pro forma combined statements of comprehensive loss give effect to the Acquisition as though it occurred on January 1, 2020. OWC’s fiscal year end is December 31. The Company’s fiscal year end is March 31. The statements of comprehensive loss for the Company are presented for the year ended December 31, 2020 to conform to OWC’s fiscal year end of December 31.

 

The unaudited pro forma combined financial statements have been prepared for illustrative purposes only and are not necessarily indicative of the consolidated financial position or results of operations in future periods or the results that actually would have been realized had the Company and OWC been a combined company during the specified periods. The unaudited pro forma combined financial statements, including the notes thereto, are qualified in their entirety by reference to, and should be read in conjunction with, the historical financial statements of OWC included herein and the historical financial statements of the Company included in its Annual Report on Form 10-K for the fiscal year ended March 31, 2020 as filed with the United States Securities and Exchange Commission (“SEC”) on July 14, 2020.

 

 
 

 

Omnia Wellness, Inc.

Pro Forma Combined Balance Sheet

(Unaudited)

 

   Omni Wellness, Inc.  

Omnia Wellness

Corporation

   Pro-Forma     

Pro-Forma

Combined

 
   December 31, 2020   December 31, 2020   Adjustments   Adj #  December 31, 2020 
                    
Assets                       
                        
Current assets                       
Cash  $-   $613   $-      $613 
Accounts Receivable   -    29,800    -       29,800 
Total current assets   -    30,413    -       30,413 
                        
Non-current assets                       
Fixed assets, net   -    264,276    -       264,276 
Intangible assets related party, net   -    1,651,000    -       1,651,000 
Total non-current assets   -    1,915,276    -       1,915,276 
                        
Total Assets  $-   $1,945,689   $-      $1,945,689 
                        
Liabilities and Stockholders’ Deficit                       
                        
Current liabilities:                       
Accounts payable and accrued expenses  $53,293   $91,285   $-      $144,578 
Accounts payable, related party   -    1,500    -       1,500 
Deposit liability   -    21,764    -       21,764 
Accrued interest   -    642,285    (287,230)  C   355,055 
Warranty liability   -    25,667    -       25,667 
Nonconvertible notes, related party   10,618    1,359,623    -       1,370,241 
Nonconvertible notes, non related   -    1,665,000    -       1,665,000 
Convertible notes, related party   -    529,940    (529,940)  C   - 
Convertible notes, non related   17,443    1,900,000    (1,000,000)  C    917,443 
Total current liabilities   81,354    6,237,064    (1,817,170)      4,501,248 
                        
Non-current liabilities:                       
PPP Loan   -    294,066    -       294,066 
Nonconvertible notes, non related, less current   -    -    -       - 
Convertible notes, non related, less current   -    174,620    -       174,620 
Total non-current liabilities   -    468,686    -       468,686 
                        
Total Liabilities   81,354    6,705,750    (1,817,170)      4,969,934 
                        
Stockholders’ equity:                       
Preferred stock   -    -    -       - 
Common stock   55,058    -    (41,387)  A, B   13,671 
Additional paid-in capital   (10,224)   -    1,732,369   A, B, C   1,722,145 
Accumulated deficit   (126,188)   (4,760,061)   126,188   A, B   (4,760,061)
Total stockholders’ equity   (81,354)   (4,760,061)   1,817,170       (3,024,245)
                        
Total Liabilities and Stockholders’ Equity  $-   $1,945,689   $-      $1,945,689 

 

 
 

 

Omnia Wellness, Inc.

Pro Forma Combined Statements of Operations

For the year ended December 31, 2020

(Unaudited)

 

   Omnia Wellness, Inc.    Omnia Wellness Corporation   Pro Forma Adjustments   Adj #  Pro Forma Combined 
                    
Revenue                       
Sales  $-   $271,048   $-      $271,048 
Total Revenues   -    271,048    -       271,048 
                        
Cost of goods sold                       
Cost of goods sold   -    154,444    -       154,444 
Total cost of goods sold   -    154,444    -       154,444 
Gross Profit   -    116,604    -       116,604 
                        
Operating expenses                       
Warranty expense   -    13,399    -       13,399 
Depreciation and amortization   -    272,603    -       272,603 
Legal and professional fees   -    107,221    -       107,221 
Payroll expense   -    335,826    -       335,826 
Selling and marketing expense   -    82,028    -       82,028 
Selling and marketing expense, related party   -    210,131    -       210,131 
Consulting fees   -    25,985    -       25,985 
Consulting fees, related party   -    228,086    -       228,086 
General and administrative   48,341    183,177    -       231,518 
Total operating expenses   48,341    1,458,456    -       1,506,797 
                        
Other income (expense)                       
Interest expense   -    (517,163)   -       (517,163)
Total other income (expense)   -    (517,163)   -       (517,163)
                        
Net loss  $(48,341)  $(1,859,015)  $-      $(1,907,356)
                        
Net loss per common share - Basic and Diluted  $(0.00)  $(0.19)  $-      $(0.13)
                        
Weighted average number of common shares outstanding - Basic and Diluted   55,058,006    10,000,000    (50,699,244)  C, D   14,358,762 

 

 
 

 

Omnia Wellness, Inc.

Notes and Assumptions to Pro Forma Financial Statements

(Unaudited)

 

(A)On March 5, 2020, Omnia Wellness, Inc. completed a 12.63157 to 1 forward stock split whereby each share of common stock was converted into 12.63157 shares of common stock.
   
(B)To adjust Omnia Wellness, Inc. shareholders’ equity (deficit) accounts to reflect the effects of the recapitalization, including 2,400,000 shares of existing Company stock (net of shares retired at date of the Acquisition) and the conversion of all outstanding shares of OWC into 10,000,000 common shares of Omnia Wellness, Inc.
   
(C)To adjust Omnia Wellness, Inc. shareholders’ equity (deficit) accounts to reflect the conversion of the convertible promissory notes of OWC into 1,269,665 shares of the Company’s common stock.
   
(D)To reflect the 12.63157 to 1 forward stock split of the Company as well as the retirement of shares related to the Acquisition.

 

The unaudited pro forma combined financial statements do not include any adjustment for non-recurring costs incurred or to be incurred after December 31, 2020 by both the Company and OWC to consummate the Acquisition, except as noted above. Acquisition costs include fees payable for legal and accounting fees. Such costs will be expensed as incurred.