EX-99.2 3 ex99-2.htm

 

Exhibit 99.2

 

UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION

 

On October 6, 2023, the Company completed the acquisition of 100% of the equity interest in Simply Sakal Pte. Ltd. (“Simply”), at a total purchase price of S$4.7 million (equivalent to approximately US$3.5 million). The purchase price is structured as S$1.7 million (approximately US$1.25 million) in cash (the “Purchase Cash”), and S$3 million (approximately US$2.25 million) in the form of newly issued shares of the Company.

 

We refer the acquired company, Simply as “the acquired company”. And the corresponding transactions collectively as “Acquisition”.

 

The following unaudited pro forma combined financial information of the Company and the acquired company is presented to illustrate the estimated effects of the Acquisition described below (“Adjustments” or “Pro Forma Adjustments”).

 

The unaudited pro forma combined balance sheet as of December 31, 2022 combines the historical balance sheet of the Company and the balance sheet of the acquired company, after giving effect to the Acquisition as if it had occurred on December 31, 2022. The unaudited pro forma statement of operations for the year ended December 31, 2022 combines the historical statement of comprehensive loss of the Company and the statement of profit or loss and other comprehensive income or loss of the acquired company, after giving effect to the Acquisition as if it had occurred on January 1, 2022. These unaudited pro forma combined balance sheet and unaudited pro forma combined statement of operations are referred to collectively as the “pro forma financial information.”

 

The pro forma financial information should be read in conjunction with the accompanying notes. In addition, the pro forma financial information is derived from and should be read in conjunction with the following historical financial statements and accompanying notes of the Company and the acquired company:

 

(i) audited financial statements as of and for the fiscal year ended December 31, 2022 and the related notes included in the annual report on Form 20-F for the year ended December 31, 2022 filed by the Company; and

 

(ii) audited financial statements of Simply as of and for the year ended December 31, 2022 and the related notes included in this registration statement.

 

F-1
 

 

UNAUDITED PRO FORMA COMBINED BALANCE SHEETS

 

   As of December 31, 2022   Pro Forma Adjustment         
   Ohmyhome Historical   Simply Historical   for Acquisitions   Note   Pro Forma Combined 
   SGD   SGD   SGD       SGD 
ASSETS                    
Current assets                        
Cash and cash equivalents   301,433    744,677    -        1,046,110 
Accounts receivable, net   243,716    287,639    -        531,355 
Prepayments   51,774    5,265    -        57,039 
Short-term loan to a director   -    100,967    -        100,967 
Other current assets, net   6,613    -    -        6,613 
Total current assets   603,536    1,138,548    -        1,742,084 
                         
Property and equipment, net   35,362    25,198    -        60,560 
                         
Non-current assets                        
Intangible assets   -    337,876    -        337,876 
Deposit   98,719    18,134    -        116,853 
Deferred initial public offering (“IPO”) costs   676,321    -    -        676,321 
Operating lease right-of-use assets, net   754,852    35,879    -        790,731 
Goodwill   -    -    3,514,082   B    3,514,082 
Total non-current assets   1,529,892    391,889    3,514,082        5,435,863 
Total assets   2,168,790    1,555,635    3,514,082        7,238,507 
                         
LIABILITIES AND SHAREHOLDERS’ EQUITY                        
Current liabilities                        
Bank loans, current portion   305,965    51,525    -        357,490 
Accounts payable   67,730    28,482    -        96,212 
Accrued liabilities and other payables   229,195    71,949    -        301,144 
Contract liabilities   194,300    -    -        194,300 
Amount due to a shareholder   2,290,044    12,628    -        2,302,672 
Deferred government subsidies, current   -    8,354    -        8,354 
Operating lease obligation, current   319,255    25,050    -        344,305 
Short-term payable for acquisition   -    -    513,600   B    513,600 
Tax payable   25,101    48,143    -        73244 
Total current liabilities   3,431,590    246,131    513,600   B    4,191,321 
                         
Non-current liabilities:                        
Bank loans, non-current portion   475,737    81,759    -        557,496 
Deferred government subsidies, non-current   -    18,708    -        18,708 
Operating lease obligation, non-current   444,571    11,119    -        455,690 
Long-term payable for acquisition   -    -    1,198,400   B    1,198,400 
Total non-current liabilities   920,308    111,586    1,198,400   B    2,230,294 
                         
Total liabilities   4,351,898    357,717    1,712,000   B    6,421,615 
                         
SHAREHOLDERS’ EQUITY                        
Ordinary shares   21,970    1,783,001    (1,783,001)  B    21,970 
Additional paid-in capital   11,292,123    -    3,000,000   B    14,292,123 
Accumulated other comprehensive income   36,153    -             36,153 
Accumulated deficit   (13,131,513)   (585,083)   585,082   B    (13,131,513)
Total Ohmyhome Limited shareholder’s equity   (1,781,267)   1,197,918    1,802,082        1,218,733 
Non-controlling Interests   (401,841)   -    -        (401,841)
Total shareholders’ equity   (2,183,108)   1,197,918    1,802,082        816,892 
Total liabilities and shareholders’ equity   2,168,790    1,555,635    3,514,082        7,238,507 

 

The accompanying notes are an integral part of these financial statements

 

F-2
 

 

UNAUDITED PRO FORMA

COMBINED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS

 

   As of December 31, 2022 
   Ohmyhome Historical   Simply Historical   Pro Forma Adjustment for Acquisitions   Note   Pro Forma Combined 
   SGD   SGD   SGD       SGD 
Operating revenues   7,025,592    2,647,140    -         9,672,732 
Cost of revenues   (4,708,678)   (1,952,869)   -         (6,661,547)
Gross profit   2,316,914    694,271    -         3,011,185 
                          
Operating expenses                         
Technology and development expenses   (1,767,730)   -    -         (1,767,730)
Selling and marketing expenses   (1,926,003)   -    -         (1,926,003)
General and administrative expenses and other staff expenses   (1,854,521)   (1,249,730)   (60,809)   A    (3,165,060)
Depreciation and amortization expenses   -    (60,809)   60,809    A    - 
                          
Total operating expenses   (5,548,254)   (1,310,539)   -         (6,858,793)
                          
Loss from operations   (3,231,340)   (616,268)   -         (3,847,608)
                          
Other income (expense):                         
Interest expense, net   (35,167)   (3,580)   -         (38,747)
Other income, net   192,466    228,640    -         421,106 
                          
Total other income, net   157,299    225,060    -         382,359 
                          
LOSS BEFORE INCOME TAXES   (3,074,041)   (391,208)   -         (3,465,249)
Income tax expense   -    (7)   -         (7)
                          
NET LOSS   (3,074,041)   (391,215)   -         (3,465,256)
                          
Less: Net loss attributable to non-controlling interest   (21,041)   -    -         (21,041)
Net loss attributable to OHMYHOMELTD   (3,053,000)   (391,215)   -         (3,444,215)
                          
NET LOSS   (3,074,041)   (391,215)   -         (3,465,256)
OTHER COMPREHENSIVE LOSS                         
Foreign currency translation adjustment   26,156    -    -         26,156 
TOTAL COMPREHENSIVE LOSS   (3,047,885)   (391,215)   -         (3,439,100)
Less: Comprehensive loss attributable to non-controlling interests   (21,041)   -    -         (21,041)
COMPREHENSIVE LOSS ATTRIBUTABLE TO OHMYHOME LIMITED   (3,026,844)   (391,215)   -         (3,418,059)
                          
Weighted average number of ordinary shares:                         
Basic   16,250,000                   16,250,000 
Diluted (assuming issuance of maximum number of shares to Simply)   16,935,536                   16,935,536 
LOSS PER SHARE – BASIC   (0.19)                  (0.21)
LOSS PER SHARE – DILUTED   (0.19)                  (0.20)

 

The accompanying notes are an integral part of these financial statements

 

F-3
 

 

NOTES TO UNAUDITED PRO FORMA FINANCIAL STATEMENTS

 

1. Basis of Presentation

 

The pro forma financial information was prepared in conformity with Article 11 of Regulation S-X. The pro forma financial information for acquisitions was prepared using the acquisition method of accounting in accordance with Accounting Standards Codification 805, “Business Combinations” (“ASC 805”) and was derived from the audited historical financial statements of the Company and the acquired company.

 

The pro forma financial information has been prepared by the Company for illustrative and informational purposes only in accordance with Article 11. The pro forma financial information is not necessarily indicative of what the Company’s statement of comprehensive loss or balance sheet actually would have been had the Acquisition and other Adjustments been completed as of the dates indicated or will be for any future periods. The pro forma financial information does not purport to project the Company’s future financial position or results of operations following the completion of the Acquisition.

 

The Company is still in the process of performing a full review of the acquired companies’ accounting policies to determine if there are any additional material differences that require modification or reclassification of the acquired companies’ revenues, expenses, assets or liabilities to conform to the Company’s accounting policies and classifications. As a result of that review, the Company may identify differences between the accounting policies of the companies that, when conformed, could have a material impact on the pro forma financial information.

 

2. Consideration and Purchase Price

 

Consideration and Purchase Price of Simply

 

Before the Simply Sakal Acquisition, the Company previously held nil shares of Simply and the ownership of Simply was nil. On October 6, 2023, the Company, through its wholly owned subsidiary, Ohmyhome (BVI), completed the acquisition of 100% of the issued and outstanding shares of Simply, at a total consideration of S$4,712,000, consisting of S$1,712,000 in cash and S$3,000,000 in the form of consideration shares. Upon completion of the Simply Sakal Acquisition, Simply became an indirect wholly-owned subsidiary of the Company.

 

The following table presents the calculation of preliminary purchase consideration:

 

   SGD 
Purchase price at acquisition close on October 6, 2023   4,712,000 
Fair value of non-controlling shareholders   - 
Total allocated purchase price   4,712,000 

 

The allocation of the consideration is preliminary and pending finalization of various estimates, inputs and analyses. Since this pro forma financial information has been prepared based on preliminary estimates of consideration and fair values attributable to the Simply Sakal Acquisition, the actual amounts eventually recorded in accordance with the acquisition method of accounting, including the identifiable intangibles and goodwill, may differ materially from the information presented.

 

According to the SPA, the total number of Consideration Shares to be allotted and issued to the Simply Sellers shall be no less than 450,000 Ordinary Shares, and no more than 685,536 Ordinary Shares.

 

F-4
 

 

3. The allocation of the purchase price

 

The following table presents the preliminary purchase price allocation of the assets acquired and the liabilities assumed as if the Acquisition occurred on December 31, 2022.

 

Preliminary purchase price allocation of Simply

 

   SGD 
ASSETS     
Cash and bank balances   744,677 
Accounts receivable, net   287,639 
Prepayments   5,265 
Short-term loan to a director   100,967 
Deposits   18,134 
Property and equipment, net   25,198 
Intangible Assets   337,876 
Operating lease right-of-use assets, net   35,879 
Goodwill   3,514,082 
Total assets   5,069,717 
      
LIABILITIES     
Accounts payable   28,482 
Accrued liabilities and other payables   71,949 
Bank loans, current portion   51,525 
Deferred government subsidies, current   8,354 
Operating lease obligation, current   25,050 
Tax payable   48,143 
Bank loans, non-current portion   81,759 
Operating lease obligation, non-current   11,119 
Deferred government subsidies, non-current   18,708 
Total liabilities   357,717 
      
Total Allocated Purchase Price   4,712,000 
Cash Consideration   1,712,000 
Share Consideration   3,000,000 

 

The business combination accounting is not yet final, and the amounts assigned to the assets acquired and the liabilities assumed are provisional. Therefore, this may result in future adjustments to the provisional amounts as new information is obtained about the facts and circumstances that existed at the acquisition date. The final purchase price allocation will be determined when the Company has completed the detailed valuations and necessary calculations. The final allocation could differ materially from the preliminary allocation used in the pro forma adjustments.

 

4. Pro Forma Adjustments for Acquisitions

 

A. Reflects the adjustments to conform the accounting and presentation of assets and liabilities to the accounting and presentation of the Company.

 

B. Reflects the preliminary purchase price allocation recorded, and the elimination of the acquired companies’ net assets balances in accordance with the acquisition method of accounting.

 

F-5