EX-99.2 4 ex99-2.htm

 

Exhibit 99.2

 

GLOBAL TECH INDUSTRIES GROUP, INC.

Unaudited Pro Forma Condensed Consolidated Balance Sheets

 

   GTII  

Classsroom

Salon

       Proforma Combined 
   September 30   December 31   Proforma   September 30 
   2021    2021   Adjustments    2021 
ASSETS                 
CURRENT ASSETS                     
Cash and cash equivalents   $295,083   $-   $-   $295,083 
Accounts receivable    -    -    -    - 
Receivables-related party    -    -    -    - 
Marketable securities    195,000    -    -    195,000 
                     
Total Current Assets    490,083    -    -    490,083 
                     
PROPERTY AND EQUIPMENT (NET)    2,143    -    -    2,143 
                     
OTHER ASSETS                     
Inventory         -         - 
Security deposit         -         - 
Goodwill                   - 
Fine art    67,845    -         67,845 
License    3,958    -    15,000,000(a)   15,003,958 
                     
TOTAL ASSETS   $564,029   $-   $15,000,000   $15,564,029 
                     
LIABILITIES AND STOCKHOLDERS’ DEFICIT                    
                     
CURRENT LIABILITIES                     
Accounts payable and accrued expenses  $1,210,007   $-    -   $1,210,007 
Accrued interest payable    376,007         -    376,007 
Notes payable in default    871,082         -    871,082 
Due to officers and directors    83,883         -    83,883 
Notes payable    200,000              200,000 
Stock deposits    490,000         -    490,000 
                     
Total Current Liabilities    3,230,979    -         3,230,979 
                     
LONG-TERM LIABILITIES                     
                     
Notes payable-long term    -    -         - 
Notes payable related party    -         -    - 
                     
Total Long-Term Liabilities    -    -         - 
                     
Total Liabilities    3,230,979    -    -    3,230,979 
                     
STOCKHOLDERS’ (DEFICIT)                     
Preferred Stock, par value $.001, 50,000 authorized, 1,000 issued   1    -    -    1 
Common stock, par value $0.001 per share, 550,000,000 shares authorized; 246,722,140 and 236,572,140 issued and outstanding, respectively    246,722    -    10,000(a)   256,722 
Additional paid-in-capital    229,725,779    15    14,989,985(a)   244,715,779 
Retained (Deficit)    (232,639,452)   (15)   15(a)   (232,639,452)
                     
Total Stockholders’ (Deficit)    (2,666,950)   -    15,000,000    12,333,050 
                     
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT)   $564,029   $-   $15,000,000   $15,564,029 

 

 
 

 

GLOBAL TECH INDUSTRIES GROUP, INC.

Unaudited Pro Forma Condensed Consolidated Statements of Operations

 

   GTII  

Classsroom

Salon

       Proforma 
   September 30,   December 31   Proforma   September 30, 
   2021   2021   Adjustments   2021 
                 
REVENUES, net  $-   $-   $-   $- 
                     
COST OF SALES, net   -    -    -    - 
                     
GROSS PROFIT/(LOSS)   -    -    -    - 
                     
OPERATING EXPENSES                    
                     
General and administrative   258,526    15         258,541 
Compensation and professional fees   3,860,868    -    -    3,860,868 
Charitable donations   540,113    -         540,113 
Depreciation   1,845    -    -    1,845 
                     
Total Operating Expenses   4,661,352    15         4,661,367 
                     
OPERATING INCOME (LOSS)   (4,661,352)   15         (4,661,337)
                     
OTHER INCOME (EXPENSES)                    
                     
Gain/(Loss) on sale of marketable securities   164,000    -    -    164,000 
Interest expense   (49,111)   -    -    (49,111)
                   - 
Total Other Income (Expenses)   114,889    -    -    114,889 
                     
INCOME (LOSS) BEFORE INCOME TAXES   (4,546,463)   (15)        (4,546,478)
                     
INCOME TAX EXPENSE   -    -    -    - 
                     
NET LOSS  $(4,546,463)  $(15)       $(4,546,478)
                     
OTHER COMPREHENSIVE INCOME   -    -    -    - 
                     
COMPREHENSIVE LOSS  $(4,546,463)  $(15)       $(4,546,478)
                     
BASIC AND DILUTED LOSS PER SHARE  $(0.02)   -        $(0.02)
                     
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING, BASIC AND DILUTED   234,303,915    200    10,000,000(b)   244,303,915 

 

 
 

 

Global Tech Industries Group, Inc.

 

Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements

 

1. ORGANIZATION AND BASIS OF PRESENTATION

 

On December 18, 2021, Global Tech Industries Group, Inc. (‘us”, “Public Co”, or “the Company”) entered an agreement to acquire 100% equity interest in Classroom Holdings (“HOLDINGS”), and Classroom Salon, LLC (“SALON”) a Pennsylvania limited liability company, for purchase consideration of $15,000,000, payable in common stock of the company through the issuance of 10,000,000 shares (but subject to certain conditions being met by SALON prior to closing. On January 18, 2022 the conditions were met and the share transfer agreement became effective.

 

The purchase price for HOLDINGS and SALON was allocated based on the fair value of the common stock issued by the Company, and is allocated to the intangible license agreement held by SALON for software and other deliverables.

 

The unaudited pro forma condensed consolidated financial statements (“pro forma statements”) have been compiled from and include the pro forma statements of income for the nine months ended September 30, 2021, give effect to the business combination of HOLDINGS and SALON, as if it had occurred at the beginning of the period presented. The unaudited pro forma condensed consolidated balance sheet combining the balance sheet of Public Co as of September 30, 2021 with balance sheet of SALON as of December 31, 2021, as if the business combination had occurred on that date. This pro forma statement does not contain all the information required for annual financial statements. Accordingly, it should be read in conjunction with the most recent annual and interim financial statements of the Company.

 

Management believes that the assumptions used provide a reasonable basis on which to present the unaudited pro forma financial data. The unaudited pro forma financial statement information has been provided for informational purposes only and should not be considered indicative of the Company’s financial position or results of operations. In addition, the unaudited pro forma financial statement information does not purport to represent the future financial position or results of operations of the Company.

 

It is management’s opinion that this unaudited pro forma financial statement includes all adjustments necessary for the fair presentation of the proposed transaction in accordance with US GAAP. The pro forma statement is not intended to reflect the financial position of the Company which would have actually resulted had the proposed transaction been effected on the dates indicated.

 

2. Pro-forma Adjustments

 

The pro forma statement incorporates the following pro forma adjustments:

 

  (a) The adjustment reflects the value of the share issuance of 10,000,000 shares of the Company to the shareholders of HOLDINGS and SALON, as if the acquisition occurred on January 1, 2021. In addition, the adjustments also eliminate the original capitalization and retained earnings of SALON, and records licenses for the excess in common stock value over net asset value.
     
  (b) The adjustments reflect the effect on basic and diluted earnings per share for combining BRONX net income for the period presented.