EX-99.3 4 class_ex993.htm PRO FORMA CONDENSED COMBINED BALANCE SHEET class_ex993.htm

EXHIBIT 99.3

 

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

 

The unaudited pro forma condensed combined financial statements are based on the historical financial information of Battery Future Acquisition Corp. (BFAC”) for the years ended December 31, 2024 and 2023, adjusted to give effect to the Business Combination.

 

The unaudited pro forma condensed combined balance sheet as of December 31, 2024 combines the unaudited condensed historical balance sheet of BFAC as of December 31, 2024 with the audited historical condensed consolidated balance sheet of Class Over Inc. (the “Company”) and the unaudited condensed consolidated balance sheet of Classover Holdings, Inc. (“Pubco”) as of December 31, 2024, giving effect to the Business Combination as if it had been consummated as of that date.

 

The unaudited pro forma condensed combined statements of operations for the year ended December 31, 2024 combines the unaudited historical condensed statement of operations of BFAC for year ended December 31, 2024 with the audited historical condensed consolidated statement of operations of the Company for the year ended December 31, 2024, and the unaudited historical condensed consolidated statement of operations of the Pubco for the period from inception to December 31, 2024. The unaudited pro forma condensed combined statements of operations for the year ended December 31, 2023 combines the audited historical condensed statement of operations of BFAC for year ended December 31, 2023 with the audited historical condensed consolidated statement of operations of the Company for the year ended December 31, 2023, giving effect to the Business Combination as if it had occurred as of January 1, 2023.

 

Notwithstanding the legal form of the Business Combination, the Business Combination will be accounted for as a reverse recapitalization in accordance with US GAAP. Under this method of accounting, BFAC will be treated as the acquired company and the Company will be treated as the acquirer for financial statement reporting purposes.

 

The adjustments presented on the unaudited pro forma condensed combined financial statements have been identified and presented to provide relevant information necessary for an accurate understanding of the combined company upon consummation of the Business Combination.

 

The unaudited pro forma condensed combined financial information is for illustrative purposes only.

 

The financial results may have been different had the companies always been combined. You should not rely on the unaudited pro forma condensed combined financial information as being indicative of the historical results that would have been achieved had the companies always been combined or the future results that the combined company will experience. BFAC and the Company have not had any historical relationship prior to the Business Combination. Accordingly, no pro forma adjustments were required to eliminate activities between the companies.

 

The unaudited pro forma condensed combined financial information has been prepared assuming two redemption scenarios as following:

 

 

·

Assuming No Redemptions: This scenario assumes that no BFAC Public Shares are redeemed and funds held in Trust Account will be fully retained and released to Pubco at closing of the Business Combination;

 

 

 

 

 

·

 

Assuming Maximum Redemptions: This scenario assumes that all of BFAC’s 3,683,125 Public Shares subject to redemption are redeemed at price of approximately $11.49 per share, resulting in an aggregate payment of approximately $42.30 million out of the Trust Account.

 

 
1

 

 

The pro forma outstanding Pubco Common Stock immediately after the Business Combination under two redemption scenarios (which amounts are based on information as of December 31, 2024, as adjusted for events that relate to material transactions consummated after such date through the date hereof) is as follows:

 

 

 

Pro Forma Combined

 

 

 

Assuming No

Redemptions

 

 

Assuming Maximum

Redemptions

 

 

 

Number of Common Shares

 

 

%

 

 

Number of Common Shares

 

 

%

 

BFAC public shares

 

 

 3,683,125

 

 

 

 14.3 %

 

 

 -

 

 

 

-

 %

BFAC founder shares (including non-redeemable Class A shares held by founders)

 

 

 8,625,000

 

 

 

 33.5 %

 

 

 8,625,000

 

 

 

 39.0 %

Mrs. Hui Luo – Company founder and shareholder (super voting class)

 

 

 6,535,014

 

 

 

 25.3 %

 

 

 6,535,014

 

 

 

 29.6 %

The rest of Company shareholders and note holders

 

 

 5,964,986

 

 

 

 23.1 %

 

 

 5,964,986

 

 

 

 27.0 %

Shares issued to advisors

 

 

 975,000

 

 

 

 3.8 %

 

 

 975,000

 

 

 

 4.4 %

Total common shares outstanding*

 

 

 25,783,125

 

 

 

 100.0 %

 

 

 22,100,000

 

 

 

 100.0 %

 

* Not including 1,000,000 Series A preferred shares to be issued to Company shareholders as part of the merger consideration at business combination, and 2,400 Series B preferred shares to be issued to PIPE Investors at business combination as the initial installment of PIPE Financing.

 

The historical financial information of BFAC was derived from the unaudited condensed financial statements of BFAC as of and for the year ended December 31, 2024, as well as the audited condensed financial statements of BFAC as of and for the year ended December 31, 2023. The historical financial information of Pubco was derived from the unaudited condensed consolidated financial statements of Pubco as of and for the period from inception to December 31, 2024. The historical financial information of the Company was derived from the audited condensed financial statements of the Company as of and for the years ended December 31, 2024 and 2023.

 

The information is only a summary and should be read together with BFAC’s, Pubco’s, and the Company’s audited and unaudited financial statements and related notes, “Classover’s Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “BFAC’s Discussion and Analysis of Financial Condition and Results of Operations” and other financial information included elsewhere in its proxy statement/prospectus.

  

The following unaudited pro forma condensed combined financial information is provided to aid you in your analysis of the financial aspects of the Business Combination and the related transactions. The unaudited pro forma condensed combined financial information is for illustrative purposes only. The financial results may have been different had the companies always been combined. You should not rely on the unaudited pro forma condensed combined financial information as being indicative of the historical results that would have been achieved had the companies always been combined or the future results that the combined company will experience.

  

 
2

 

 

Unaudited Pro Forma Condensed Combined Balance Sheet as of December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Assuming No

Redemption Scenario

 

 

Assuming Maximum

Redemption Scenario

 

 

 

Classover

 

 

BFAC

 

 

Pubco

 

 

Transaction Accounting Adjustments

 

 

Pro Forma Combined

 

 

Transaction Accounting Adjustments

 

 

Pro Forma Combined

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

 $ 50,682

 

 

 $ 1,815

 

 

 $ 2

 

 

 

 42,302,760 (A)

 

 

 42,932,924

 

 

 

 42,302,760 (A)

 

 

 630,164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (511,860 )(H)

 

 

 

 

 

 

 (42,302,760 )(C)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (544,428 )(E)

 

 

 

 

 

 

 (511,860 )(H)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (616,045 )(F)

 

 

 

 

 

 

 (544,428 )(E)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 2,250,000 (K)

 

 

 

 

 

 

 (616,045 )(F)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (2 )(L)

 

 

 

 

 

 

 2,250,000 (K)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (2 )(L)

 

 

 

 

Prepayments and other current assets

 

 

 15,557

 

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 15,557

 

 

 

 

 

 

 

 15,557

 

Due from related parties

 

 

 8,251

 

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 8,251

 

 

 

 

 

 

 

 8,251

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current assets

 

 $ 74,490

 

 

 $ 1,815

 

 

 $ 2

 

 

 

 

 

 

 

 42,956,732

 

 

 

 

 

 

 

 653,972

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncurrent assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash held in trust account

 

 

 -

 

 

 

 42,302,760

 

 

 

 -

 

 

 

 (42,302,760 )(A)

 

 

 -

 

 

 

 (42,302,760 )(A)

 

 

 -

 

Property and equipment, net

 

 

 218,617

 

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 218,617

 

 

 

 

 

 

 

 218,617

 

Operating lease right-of-use assets, net

 

 

 1,552,242

 

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 1,552,242

 

 

 

 

 

 

 

 1,552,242

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noncurrent assets

 

 

 1,770,859

 

 

 

 42,302,760

 

 

 

 -

 

 

 

 

 

 

 

 1,770,859

 

 

 

 

 

 

 

 1,770,859

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 $ 1,845,349

 

 

 $ 42,304,575

 

 

 $ 2

 

 

 

 

 

 

 $ 44,727,591

 

 

 

 

 

 

 $ 2,424,831

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDER'S EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 $ 7,200

 

 

 $ -

 

 

 $ -

 

 

 

 

 

 

 

 7,200

 

 

 

 

 

 

 

 7,200

 

Interest payable

 

 

 19,072

 

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 19,072

 

 

 

 

 

 

 

 19,072

 

Deferred revenues

 

 

 2,719,091

 

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 2,719,091

 

 

 

 

 

 

 

 2,719,091

 

Due to related parties

 

 

 249,545

 

 

 

 312,087

 

 

 

 -

 

 

 

 (312,087 )(H)

 

 

 249,545

 

 

 

 (312,087 )(H)

 

 

 249,545

 

Operating lease liabilities - current

 

 

 314,685

 

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 314,685

 

 

 

 

 

 

 

 314,685

 

Accrued liabilities and other payables

 

 

 63,415

 

 

 

 199,773

 

 

 

 238

 

 

 

 (199,773 )(H)

 

 

 63,415

 

 

 

 (259 )(C)

 

 

 63,156

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (238 )(L)

 

 

 

 

 

 

 (199,773 )(H)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (238 )(L)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 

 

 3,373,008

 

 

 

 511,860

 

 

 

 238

 

 

 

 

 

 

 

 3,373,008

 

 

 

 

 

 

 

 3,372,749

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncurrent liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible notes payable

 

 

 1,750,000

 

 

 

 -

 

 

 

 -

 

 

 

 (1,750,000 )(G)

 

 

 -

 

 

 

 (1,750,000 )(G)

 

 

 -

 

Operating lease liabilities - noncurrent

 

 

 1,241,495

 

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 1,241,495

 

 

 

 

 

 

 

 1,241,495

 

Warrant liability

 

 

 -

 

 

 

 431,250

 

 

 

 -

 

 

 

 

 

 

 

 431,250

 

 

 

 

 

 

 

 431,250

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noncurrent liabilities

 

 

 2,991,495

 

 

 

 431,250

 

 

 

 -

 

 

 

 

 

 

 

 1,672,745

 

 

 

 

 

 

 

 1,672,745

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 $ 6,364,503

 

 

 $ 943,110

 

 

 $ 238

 

 

 

 

 

 

 $ 5,045,753

 

 

 

 

 

 

 $ 5,045,494

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A ordinary share subject to possible redemption

 

 

 -

 

 

 

 42,302,501

 

 

 

 -

 

 

 

 (42,302,501 )(B)

 

 

 -

 

 

 

 (42,302,501 )(C)

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholder's equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Classover's Ordinary shares, $0.0001 par value

 

 

 158

 

 

 

 -

 

 

 

 -

 

 

 

 (158 )(G)

 

 

 -

 

 

 

 (158 )(G)

 

 

 -

 

BFAC Class A Ordinary shares, $0.0001 par value

 

 

 -

 

 

 

 200

 

 

 

 -

 

 

 

 (200 )(J)

 

 

 -

 

 

 

 (200 )(J)

 

 

 -

 

BFAC Class B Ordinary shares, $0.0001 par value

 

 

 -

 

 

 

 663

 

 

 

 -

 

 

 

 (663 )(D)

 

 

 -

 

 

 

 (663 )(D)

 

 

 -

 

Pubco Class B Ordinary Shares, $0.0001 par value

 

 

 -

 

 

 

 -

 

 

 

 1

 

 

 

 (1 )(L)

 

 

 -

 

 

 

 (1 )(L)

 

 

 -

 

New issuance of Pubco Series A Preferred shares, $0.0001 par value

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 100 (G)

 

 

 100

 

 

 

 100 (G)

 

 

 100

 

New issuance of Pubco Series B Preferred shares, $0.0001 par value

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 1 (K)

 

 

 1

 

 

 

 1 (K)

 

 

 1

 

New issuance of Pubco Class B Ordinary shares, $0.0001 par value

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 368 (B)

 

 

 1,925

 

 

 

 663 (D)

 

 

 1,557

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 663 (D)

 

 

 

 

 

 

 694 (G)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 694 (G)

 

 

 

 

 

 

 200 (J)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 200 (J)

 

 

 

 

 

 

 

 

 

 

 

 

New issuance of Pubco Class A Ordinary shares, $0.0001 par value

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 654 (G)

 

 

 654

 

 

 

 654 (G)

 

 

 654

 

Additional paid-in capital

 

 

 80,412

 

 

 

 2,438,872

 

 

 

 1

 

 

 

 42,302,133 (B)

 

 

 45,439,355

 

 

 

 1,748,710 (G)

 

 

 3,137,222

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 1,748,710 (G)

 

 

 

 

 

 

 (3,380,771 )(I)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (3,380,771 )(I)

 

 

 

 

 

 

 2,249,999 (K)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 2,249,999 (K)

 

 

 

 

 

 

 (1 )(L)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (1 )(L)

 

 

 

 

 

 

 

 

 

 

 

 

Retained earnings (Accumulated deficit)

 

 

 (4,599,724 )

 

 

 (3,380,771 )

 

 

 (238 )

 

 

 (544,428 )(E)

 

 

 (5,760,197 )

 

 

 (544,428 )(E)

 

 

 (5,760,197 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (616,045 )(F)

 

 

 

 

 

 

 (616,045 )(F)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 3,380,771 (I)

 

 

 

 

 

 

 3,380,771 (I)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 238 (L)

 

 

 

 

 

 

 238 (L)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholder's equity

 

 

 (4,519,154 )

 

 

 (941,036 )

 

 

 (236 )

 

 

 

 

 

 

 39,681,838

 

 

 

 

 

 

 

 (2,620,663 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY

 

 $ 1,845,349

 

 

 $ 42,304,575

 

 

 $ 2

 

 

 

 

 

 

 $ 44,727,591

 

 

 

 

 

 

 $ 2,424,831

 

 

See accompanying notes to the unaudited pro forma combined financial information.

 

 
3

 

 

Unaudited Pro Forma Condensed Combined Statement of Operations

 

For the Year Ended December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Assuming No

Redemption Scenario

 

 

Assuming Maximum

Redemption Scenario

 

 

 

Classover

 

 

BFAC

 

 

Pubco

 

 

Transaction Accounting Adjustments

 

 

 

 

Pro Forma Combined

 

 

Transaction Accounting Adjustments

 

 

 

Pro Forma Combined

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues

 

 $ 3,375,604

 

 

 $ -

 

 

 $ -

 

 

 

 

 

 

 

 $ 3,375,604

 

 

 

 

 

 

 

 $ 3,375,604

 

Consulting revenues (related party)

 

 

 300,000

 

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 

 300,000

 

 

 

 

 

 

 

 

 300,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

 

 3,675,604

 

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 

 3,675,604

 

 

 

 

 

 

 

 

 3,675,604

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

 1,616,428

 

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 

 1,616,428

 

 

 

 

 

 

 

 

 1,616,428

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total cost of revenues

 

 

 

 

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 

 1,616,428

 

 

 

 

 

 

 

 

 1,616,428

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 2,059,176

 

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 

 2,059,176

 

 

 

 

 

 

 

 

 2,059,176

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing

 

 

 657,003

 

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 

 657,003

 

 

 

 

 

 

 

 

 657,003

 

General and administrative

 

 

 2,196,747

 

 

 

 561,738

 

 

 

 238

 

 

 

 (238 )EE

 

 

 

 

 2,758,485

 

 

 

 (238 )EE

 

 

 

 

 2,758,485

 

Research and development

 

 

 39,254

 

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 

 

 39,254

 

 

 

 

 

 

 

 

 

 39,254

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 

 2,893,004

 

 

 

 561,738

 

 

 

 238

 

 

 

 

 

 

 

 

 

 3,454,742

 

 

 

 

 

 

 

 

 

 3,454,742

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) from operations

 

 $ (833,828 )

 

 $ (561,738 )

 

 $ (238 )

 

 

 

 

 

 

 

 

 (1,395,566 )

 

 

 

 

 

 

 

 

 (1,395,566 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income (Expense)

 

 

 (9,220 )

 

 

 2,229,081

 

 

 

 -

 

 

 

 (2,229,081 )AA

 

 

 

 

 (9,220 )

 

 

 (2,229,081 )AA

 

 

 

 

 (9,220 )

Change in fair value of warrants

 

 

 -

 

 

 

 1,447,044

 

 

 

 -

 

 

 

 

 

 

 

 

 

 1,447,044

 

 

 

 

 

 

 

 

 

 1,447,044

 

(Loss) on promissory note - related party

 

 

 -

 

 

 

 (7,306 )

 

 

 -

 

 

 

 

 

 

 

 

 

 (7,306 )

 

 

 

 

 

 

 

 

 (7,306 )

Debt forgiveness

 

 

 -

 

 

 

 1,606,901

 

 

 

 -

 

 

 

 

 

 

 

 

 

 1,606,901

 

 

 

 

 

 

 

 

 

 1,606,901

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other income (expense)

 

 

 (9,220 )

 

 

 5,275,720

 

 

 

 -

 

 

 

 

 

 

 

 

 

 3,037,419

 

 

 

 

 

 

 

 

 

 3,037,419

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) before provision for income taxes

 

 

 (843,048 )

 

 

 4,713,982

 

 

 

 (238 )

 

 

 

 

 

 

 

 

 1,641,853

 

 

 

 

 

 

 

 

 

 1,641,853

 

Provision for income taxes

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 

 

 -

 

 

 

 

 

 

 

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 $ (843,048 )

 

 $ 4,713,982

 

 

 $ (238 )

 

 

 

 

 

 

 

 

 1,641,853

 

 

 

 

 

 

 

 

 

 1,641,853

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share - basic and diluted

 

 

 (0.53 )

 

 

 0.34

 

 

 

 (2.38 )

 

 

 

 

 

 

 

 

 0.06

 

 

 

 

 

 

 

 

 

 0.07

 

Weighted average shares outstanding - basic and diluted*

 

 

 1,576,995

 

 

 

 13,795,599

 

 

 

 100

 

 

 

 10,410,431

DD

 

 

 

 

 25,783,125

 

 

 

 6,727,306

DD

 

 

 

 

 22,100,000

 

 

See accompanying notes to the unaudited pro forma combined financial information.

 

 
4

 

 

Unaudited Pro Forma Condensed Combined Statement of Operations

 

For the Year Ended December 31, 2023

 

 

 

 

 

 

 

 

 

Assuming No

Redemption Scenario

 

 

Assuming Maximum

Redemption Scenario

 

 

 

Classover

 

 

BFAC

 

 

Transaction Accounting Adjustments

 

 

 

 

Pro Forma Combined

 

 

Transaction Accounting Adjustments

 

 

 

 

Pro Forma Combined

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues

 

 $ 2,996,835

 

 

 $ -

 

 

 

 

 

 

 

 

 2,996,835

 

 

 

 

 

 

 

 

 2,996,835

 

Consulting revenues (related party)

 

 

 100,000

 

 

 

 -

 

 

 

 

 

 

 

 

 100,000

 

 

 

 

 

 

 

 

 100,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

 

 3,096,835

 

 

 

 -

 

 

 

 

 

 

 

 

 3,096,835

 

 

 

 

 

 

 

 

 3,096,835

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

 1,437,979

 

 

 

 -

 

 

 

 

 

 

 

 

 1,437,979

 

 

 

 

 

 

 

 

 1,437,979

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total cost of revenues

 

 

 1,437,979

 

 

 

 -

 

 

 

 

 

 

 

 

 1,437,979

 

 

 

 

 

 

 

 

 1,437,979

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 1,658,856

 

 

 

 -

 

 

 

 

 

 

 

 

 1,658,856

 

 

 

 

 

 

 

 

 1,658,856

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing

 

 

 505,518

 

 

 

 -

 

 

 

 

 

 

 

 

 505,518

 

 

 

 

 

 

 

 

 505,518

 

General and administrative

 

 

 1,551,633

 

 

 

 3,430,328

 

 

 

 544,428

BB

 

 

 

 

 6,142,434

 

 

 

 544,428

BB

 

 

 

 

 6,142,434

 

 

 

 

 

 

 

 

 

 

 

 

 616,045

CC

 

 

 

 

 

 

 

 

 616,045

CC

 

 

 

 

 

 

Research and development

 

 

 26,730

 

 

 

 -

 

 

 

 

 

 

 

 

 

 26,730

 

 

 

 

 

 

 

 

 

 26,730

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 

 2,083,881

 

 

 

 3,430,328

 

 

 

 

 

 

 

 

 

 6,674,682

 

 

 

 

 

 

 

 

 

 6,674,682

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) from operations

 

 $ (425,025 )

 

 $ (3,430,328 )

 

 

 

 

 

 

 

 

 (5,015,826 )

 

 

 

 

 

 

 

 

 (5,015,826 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income (Expense)

 

 

 (8,030 )

 

 

 9,953,034

 

 

 

 (9,953,034 )AA

 

 

 

 

 (8,030 )

 

 

 (9,953,034 )AA

 

 

 

 

 (8,030 )

Change in fair value of warrants

 

 

 -

 

 

 

 (1,260,642 )

 

 

 

 

 

 

 

 

 (1,260,642 )

 

 

 

 

 

 

 

 

 (1,260,642 )

(Loss) on promissory note - related party

 

 

 -

 

 

 

 (76,149 )

 

 

 

 

 

 

 

 

 (76,149 )

 

 

 

 

 

 

 

 

 (76,149 )

Debt forgiveness

 

 

 -

 

 

 

 80,059

 

 

 

 

 

 

 

 

 

 80,059

 

 

 

 

 

 

 

 

 

 80,059

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other income (expense)

 

 

 (8,030 )

 

 

 8,696,302

 

 

 

 

 

 

 

 

 

 (1,264,762 )

 

 

 

 

 

 

 

 

 (1,264,762 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) before provision for income taxes

 

 

 (433,055 )

 

 

 5,265,974

 

 

 

 

 

 

 

 

 

 (6,280,588 )

 

 

 

 

 

 

 

 

 (6,280,588 )

Provision for income taxes

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 

 

 -

 

 

 

 

 

 

 

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 $ (433,055 )

 

 $ 5,265,974

 

 

 

 

 

 

 

 

 

 (6,280,588 )

 

 

 

 

 

 

 

 

 (6,280,588 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share - basic and diluted

 

 

 (0.29 )

 

 

 0.18

 

 

 

 

 

 

 

 

 

 (0.23 )

 

 

 

 

 

 

 

 

 (0.28 )

Weighted average shares outstanding - basic and diluted*

 

 

 1,500,000

 

 

 

 29,318,851

 

 

 

 (3,548,252 )DD

 

 

 

 

 27,270,599

 

 

 

 (8,718,851 )DD 

 

 

 

 

 22,100,000

 

 

See accompanying notes to the unaudited pro forma combined financial information.

 

 
5

 

 

NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION 

 

1. Basis of Presentation

 

The Business Combination will be accounted for as a reverse recapitalization under U.S. GAAP. Under this method of accounting, BFAC will be treated as the “acquired” company for financial reporting purposes. This determination is primarily based on the Company’s stockholders being expected to comprise 92.73% or 94.64% of the voting power of Pubco under the two redemption scenarios, respectively, after considering the 25:1 voting power of the Class A shares that Ms. Hui Luo owns after the Business Combination, directors appointed by the Company constituting four of the five members of Pubco’s board of directors, the Company’s operations prior to the transaction comprising the only ongoing operations of Pubco, and the Company’s senior management comprising all of the senior management of Pubco.

 

Accordingly, for accounting purposes, the financial statements of Pubco will represent a continuation of the financial statements of the Company with the Business Combination treated as the equivalent of the Company issuing stock for the net assets of BFAC, accompanied by a recapitalization. The net assets of BFAC will be stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Business Combination will be presented as those of the Company in future reports of Pubco.

 

The unaudited pro forma condensed combined balance sheet as of December 31, 2024 gives pro forma effect to the Business Combination and the other events contemplated by the Business Combination Agreement as if they had been consummated on December 31, 2024. The unaudited pro forma condensed combined statements of operations for the for the years ended December 31, 2024 and 2023, give pro forma effect to the Business Combination and the other transactions contemplated by the Business Combination Agreement as if they had been consummated on January 1, 2023.

 

The unaudited pro forma condensed combined financial information was derived from and should be read in conjunction with the following historical financial statements and the accompanying notes, which are included elsewhere in this proxy statement/prospectus:

 

 

·

the historical unaudited financial statements of BFAC as of December 21, 2024;

 

 

 

 

·

the historical audited financial statements of BFAC as of December 31, 2023;

 

 

 

 

·

the historical audited consolidated financial statements of the Company as of and for the year ended December 31, 2024;

 

 

 

 

·

the historical audited consolidated financial statements of the Company as of and for the year ended December 31, 2023;

 

 

 

 

·

the historical unaudited consolidated financial statements of the Pubco as of and for the period from inception to December 31, 2024; and

 

 

 

 

·

other information relating to BFAC, Pubco, and the Company contained in this current report, including the Business Combination Agreement and the description of certain terms thereof set forth under certain proposals.

 

 
6

 

 

Management has made significant estimates and assumptions in its determination of the pro forma adjustments based on information available as of the date of this current report on Form 8-K. As the unaudited pro forma condensed combined financial information has been prepared based on these preliminary estimates, the final amounts recorded may differ materially from the information presented as additional information becomes available. Management considers this basis of presentation to be reasonable under the circumstances.

 

 One-time direct and incremental transaction costs anticipated to be incurred prior to, or concurrent with, the closing of the Business Combination are reflected in the unaudited pro forma condensed combined balance sheet as a direct reduction to Pubco’s retained earnings or additional paid-in capital, and are assumed to be either cash settled or settled in shares. Please refer to Note 2.

 

2. Adjustments to Unaudited Pro Forma Condensed Combined Financial Information

 

Adjustments to Unaudited Pro Forma Condensed Combined Balance Sheet as of December 31, 2024

 

The adjustments included in the unaudited pro forma condensed combined balance sheet as of December 31, 2024 are as follows:

 

 

(A)

Reflects the liquidation and reclassification of $42,302,760 of cash held in the Trust Account to cash and cash equivalents that becomes available for general use by Pubco following the Closing.

 

 

 

 

(B)

Reflects the reclassification of BFAC ordinary shares subject to possible redemption to permanent equity immediately prior to the Closing assuming no redemption.

 

 

 

 

(C)

Represents the Maximum redemption scenario in which 3,683,125 shares of BFAC public ordinary shares are redeemed at a redemption price of approximately $11.49 per share.

 

 

 

 

(D)

Reflects the conversion of 6,625,000 BFAC Class B founder shares to Pubco Class B common stock on a one-on-one basis.

 

 

 

 

(E)

Represents preliminary estimated transaction costs to be incurred by BFAC of approximately $922,000, inclusive of advisory, legal, accounting, SEC registration, proxy service, and printing fees that are incurred in connection with the Transactions, $377,572 has been accrued as of December 31, 2024. Transaction cost that already accrued as of December 31, 2024 is recorded as a reduction of accrued liabilities; Transaction cost that is expected to be paid prior to the Closing in the amount of $544,428 is recorded as general expenses and a reduction of retained earnings. Transaction cost expensed through retained earnings are included in the unaudited pro forma condensed combined statement of operations.

 

 

 

 

(F)

Represents preliminary estimated transaction costs to be incurred by Classover of approximately $1,000,000, inclusive of advisory, legal, accounting, and printing fees that are incurred in connection with the Transactions, $383,955 has been accured and paid as of December 31, 2024, which has been reflected in Classover's historical statement of operations; Transaction cost that is expected to be paid prior to the Closing in the amount of $616,045 is recorded as general expenses and a reduction of retained earnings. Transaction cost expensed through retained earnings are included in the unaudited pro forma condensed combined statement of operations.

 

 

 

 

(G)

Reflects the recapitalization through 1) issuance of 12,500,000 shares of Pubco’s common stock in exchange for Classover’s common stock shareholder and convertible debt holders, including 6,535,014 Class A super voting shares to the founder, and 5,964,986 Class B shares to the rest of Classover shareholders and noteholders, 2) the issuance of 1,000,000 Series A Pubco Preferred Stock and 3) the issuance of 975,000 ordinary shares to advisors at the Closing. The amount is allocated to ordinary shares at $0.0001 per share, and the difference between historical book value of Classover’s common stock and the amount allocated to ordinary shares are then charged to additional paid-in capital. Pubco’s new shares are issued at $10.00 per share.

 

 

(H)

Reflects the payment of BFAC's accrued liabilities and due to related parties at closing.

 

 

 

 

(I)

Reflects the reclassification of BFAC’s historical accumulated deficit to additional paid-in capital. Adjustment is made to the extend that paid-in capital would not be negative under maximum redemption scenario.

 

 

 

 

(J)

Reflects the conversion of 2,000,000 BFAC Class A non-redeemable shares to Pubco Class B common stock on a one-on-one basis.

 

 

 

 

(K)

Reflects an issuance of 2,400 Series B preferred shares to the PIPE Investor at the closing of the Business Combination in exchange for an aggregate net amount investment of $2.25 million. The issuance is the first installment of the three-installment $5 million PIPE Financing pursuant to the PIPE Agreement which was executed on November 22, 2024. Of the $5.0 million investment: (i) 2,400 shares shall be issued upon consummation of the Business Combination; (ii) up to 1,600 shares shall be issued upon exercise of the First Preferred Warrants; and (iii) up to 1,000 shares shall be issued upon exercise of the Second Preferred Warrantsn. The Preferred Warrants expire on the 12-month anniversary of the consummation of the business combination and have an initial exercise price of $1,000, subject to adjustment as set forth therein. The Company has determined that the second two installments are not material probable transactions (because neither are guaranteed to be consummated) and thus excluded them from the pro forma.

 

 

 

 

(L)

Reflects elimination between BFAC and its subsidiary Pubco.

 

 
7

 

 

Adjustments to Unaudited Pro Forma Condensed Combined Statement of Operations for the Year Ended December 31, 2024

 

The adjustments included in the unaudited pro forma condensed combined statement of operations for the nine months ended December 31, 2024 are as follows:

 

(AA)

Represents the elimination of interest income related to the investments held in the BFAC Trust Account.

(DD)

Represents the calculation of net income per share using the historical weighted average shares outstanding and the issuance of additional shares in connection with the Business Combination and other related events, assuming such additional shares were outstanding since January 1, 2023. As the Business Combination is being reflected as if it had occurred as of January 1, 2023, the calculation of weighted average shares outstanding for basic and diluted net income per share assumes the shares issued in connection with the Business Combination have been outstanding for the entire periods presented.

(EE)

Reflects elimination between BFAC and its subsidiary Pubco.

 

Adjustments to Unaudited Pro Forma Condensed Combined Statement of Operations for the Year Ended December 31, 2023

 

The adjustments included in the unaudited pro forma condensed combined statement of operations for the year ended December 31, 2023 are as follows:

 

 

(AA)

Represents the elimination of interest income related to the investments held in the BFAC Trust Account.

 

 

 

 

(BB)

Represents preliminary estimated transaction costs to be incurred by BFAC of approximately $544,428 in connection with the Business Combination. Please refer to Note 2 (E)

 

 

 

 

(CC)

Represents preliminary estimated transaction costs to be incurred by Classover of approximately $616,045 in connection with the Business Combination. Please refer to Note 2 (F)

 

 

 

 

(DD)

Represents the calculation of net income per share using the historical weighted average shares outstanding and the issuance of additional shares in connection with the Business Combination and other related events, assuming such additional shares were outstanding since January 1, 2023. As the Business Combination is being reflected as if it had occurred as of January 1, 2023, the calculation of weighted average shares outstanding for basic and diluted net income per share assumes the shares issued in connection with the Business Combination have been outstanding for the entire periods presented.

 

 
8

 

 

3. Net Income per Share

 

Net income per share is calculated using the historical weighted average shares outstanding and the issuance of additional shares in connection with the Business Combination and other related events, assuming such additional shares were outstanding since January 1, 2023. As the Business Combination is being reflected as if it had occurred as of January 1, 2023, the calculation of weighted average shares outstanding for basic and diluted net income per share assumes the shares issued in connection with the Business Combination have been outstanding for the entire periods presented. Under the maximum redemptions scenario, the Common Shares assumed to be redeemed by BFAC Public Shareholders are eliminated as of January 1, 2023.

 

The unaudited pro forma condensed combined financial information has been prepared assuming no redemptions scenario and maximum redemptions scenario.

 

 

 

Assuming No Redemption Scenario

 

 

 

 

 

Assuming Maximum Redemption Scenario

 

 

 

 

 

Year Ended December 31, 2024

 

 

 

 

Year Ended December 31, 2023

 

 

 

 

 

Year Ended December 31, 2024

 

 

 

 

Year Ended December 31, 2023

 

 

 

Pro forma net income attributable to common shareholders

 

 

 1,641,853

 

 

 

 

 

 

 (6,280,588 )

 

 

 

 

 

 1,641,853

 

 

 

 

 

 

 (6,280,588 )

 

 

 

Weighted average shares outstanding – basic and diluted

 

 

 25,783,125

 

 

 

 

 

 

 27,270,599

 

 

 

 

 

 

 22,100,000

 

 

 

 

 

 

 22,100,000

 

 

 

 

Net income per share – basic and diluted

 

 

 0.06

 

 

 

 

 

 

 (0.23 )

 

 

 

 

 

 0.07

 

 

 

 

 

 

 (0.28 )

 

 

 

Weighted average shares outstanding – basic and diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BFAC redeemable public shares

 

 

 3,683,125

 

 

 

 14.3 %

 

 

 5,170,599

 

 

 

 19.0 %

 

 

 -

 

 

 

 0.0 %

 

 

 -

 

 

 

 0.0 %

BFAC founder shares (including non-redeemable Class A shares held by founders)

 

 

 8,625,000

 

 

 

 33.5 %

 

 

 8,625,000

 

 

 

 31.6 %

 

 

 8,625,000

 

 

 

 39.0 %

 

 

 8,625,000

 

 

 

 39.0 %

Mrs. Hui Luo - founder and shareholder of Classover (super voting class)

 

 

 6,535,014

 

 

 

 25.3 %

 

 

 6,535,014

 

 

 

 24.0 %

 

 

 6,535,014

 

 

 

 29.6 %

 

 

 6,535,014

 

 

 

 29.6 %

The rest of Classover's shareholders and note holders

 

 

 5,964,986

 

 

 

 23.1 %

 

 

 5,964,986

 

 

 

 21.9 %

 

 

 5,964,986

 

 

 

 27.0 %

 

 

 5,964,986

 

 

 

 27.0 %

Shares issued to advisors

 

 

 975,000

 

 

 

 3.8 %

 

 

 975,000

 

 

 

 3.6 %

 

 

 975,000

 

 

 

 4.4 %

 

 

 975,000

 

 

 

 4.4 %

Total

 

 

 25,783,125

 

 

 

 100.0 %

 

 

 27,270,599

 

 

 

 100.0 %

 

 

 22,100,000

 

 

 

 100.0 %

 

 

 22,100,000

 

 

 

 100.0 %

 

 
9