EX-99.3 4 ea147687ex99-3_bergiointer.htm UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES FOR BERGIO INTERNATIONAL, INC. AND GEAR BUBBLE AS OF JUNE 30, 2021

Exhibit 99.3

 

BERGIO INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION

 

The following unaudited pro forma combined balance sheet is based on the historical consolidated balance sheet of Bergio International, Inc. and subsidiaries (“BRGO” or “Company”) and GearBubble, Inc. (“GearBubble”) at June 30, 2021 after giving effect to the Agreement and Plan of Merger dated July 1, 2021 between the Company and GearBubble which has been accounted for as an acquisition of GearBubble by the Company (the “Acquisition”).

 

On July 1, 2021, (“Closing”), the Company (“BRGO”) entered into an Agreement and Plan of Merger (the “Merger Agreement”) with GearBubble, Inc., a Nevada corporation, (“Gear Bubble”), pursuant to which the shareholders of Gear Bubble (the “Equity Recipients”) agreed to sell 100% of the issued and outstanding shares of Gear Bubble to a recently formed wholly-owned subsidiary of the Company known as Gear Bubble Tech, Inc., a Wyoming corporation (the “Merger Sub”) in exchange for $3,162,000.00 (the “Cash Purchase Price”), which shall be paid as follows: a) $2,000,000.00 (which was paid in cash at Closing), b) $1,162,000.00 to be paid in 15 equal installments, and c) 49,000 of the 100,000 authorized shares of the Merger Sub, such that upon the Closing, 51% of the Merger Sub shall be owned by BRGO, and 49% of the Merger Sub shall be owned by the Gear Bubble Shareholders.

 

The following unaudited pro forma combined financial information has been derived by the application of pro forma adjustments to the historical consolidated financial statements of the Company and GearBubble. The unaudited pro forma combined financial information gives effect to the Acquisition between the Company and GearBubble as if the Acquisition had occurred on January 1, 2020 with respect to the unaudited annual pro forma combined statement of operation, and as of January 1, 2021 for the six months ended June 30, 2021 unaudited pro forma combined statement of operation, and as of June 30, 2021 with respect to the unaudited pro forma combined balance sheets.

 

The unaudited pro forma combined financial information reflects the assumptions and adjustments described in the accompanying notes to the unaudited pro forma combined financial information.

 

The final purchase price allocation is subject to the final determination of the fair values of acquired assets, assumed liabilities and consideration paid, therefore, the allocation and the resulting effect the financial statements may differ materially from the unaudited pro forma amounts included herein.

 

The historical consolidated financial information has been adjusted to give effect to estimated pro forma events that are directly attributable to the acquisition. The unaudited pro forma combined financial information does not reflect the cost of any integration activities or benefits that may result from synergies that may be derived from any integration activities. Therefore, the unaudited pro forma combined financial information should not be considered indicative of actual results that would have been achieved had the acquisition occurred on the date indicated and do not purport to indicate results of operations for any future period.

 

In preparing the unaudited pro forma combined financial information, the following historical information was used:

 

●We have derived the Company’s historical consolidated financial data at June 30, 2021 and for the six months ended June 30, 2021 from its unaudited financial statements contained on Form 10-Q as filed with the Securities and Exchange Commission and for the year ended December 31, 2020 from its audited financial statements contained on Form 10-K as filed with the Securities and Exchange Commission; and

 

●We have derived GearBubble’s historical financial statements as of June 30, 2021 and the six months ended June 30, 2021 and for the year ended December 31, 2020 from GearBubble’s audited financial statements contained elsewhere in this Information Statement.

 

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BERGIO INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED PRO FORMA COMBINED BALANCE SHEETS

AS OF JUNE 30, 2021

 

   Bergio International, Inc. and Subsidiaries   GearBubble, Inc   Pro Forma Adjustments     Pro Forma Combined 
ASSETS                  
                   
CURRENT ASSETS:                  
Cash  $2,419,108   $1,161,476   $(2,000,000)  a  $1,580,584 
Accounts receivable   136,526    -    -       136,526 
Inventory   2,658,931    -    -       2,658,931 
Prepaid expenses and other current assets   46,489    40,000    -       86,489 
                        
Total Current Assets   5,261,054    1,201,476    (2,000,000)      4,462,530 
                        
OTHER ASSETS:                       
Property and equipment, net   104,054    4,412    -       108,466 
Goodwill   2,900,270    -    2,780,897   b    5,681,167 
Intangible assets, net   632,253    -    -       632,253 
Operating lease right of use assets   146,185    -    -       146,185 
Investment in unconsolidated affiliate   5,828    -    -       5,828 
                        
Total Assets  $9,049,644   $1,205,888   $780,897      $11,036,429 
                        
LIABILITIES AND STOCKHOLDERS’ DEFICIT                       
                        
CURRENT LIABILITIES:                       
Accounts payable and accrued liabilities  $1,879,778   $458,628   $-      $2,338,406 
Loans payable   948,743    -    -       948,743 
Convertible notes payable, net of debt discount   638,915    -    -       638,915 
Notes payable - current   -    -    929,600   a    929,600 
Deferred compensation - CEO   346,163    -    -       346,163 
Advances from Principal Executive Officer and accrued interest   198,027    -    -       198,027 
Derivative laibility - current   327,269    -    -       327,269 
Derivative laibility - acquisition   1,609,144    -    -       1,609,144 
Operating lease liabilities - current   92,776    -    -       92,776 
                        
Total Current Liabilities    6,040,815    458,628    929,600       7,429,043 
                        
LONG-TERM LIABILITIES:                       
Notes payable - long-term   264,800    -    232,400   a    497,200 
Operating lease liabilities - long-term   53,409    -    -       53,409 
                        
Total Liabilities   6,359,024    458,628    1,162,000       7,979,652 
                        
Commitments and contingency:                       
                        
STOCKHOLDERS’ DEFICIT:                       
Preferred Stock: $0.00001 par value; 10,000,000 shares authorized;                       
Series A Preferred stock: $0.00001 Par Value; 51 Shares Authorized; 51 shares issued and outstanding as of June 30, 2021   -    -    -       - 
Convertible Series B Preferred stock: $0.00001 Par Value; 4,900 Shares Authorized; 3,000 shares issued and outstanding as of June 30, 2021   -    -    -       - 
Convertible Series C Preferred stock: $0.00001 Par Value; 5 Shares Authorized; 5 shares issued and outstanding as of June 30, 2021   -    -    -       - 
Common stock: $0.00001 par value; 6,000,000,000 shares authorized; 580,508,634 shares issued  and outstanding as of June 30, 2021   5,805    -    -       5,805 
Treasury stock   103,700    -    -       103,700 
Additional paid-in capital   16,790,048    24,752    (24,752)  c    16,790,048 
Accumulated earning (deficit)   (13,831,781)   722,508    (722,508)  c    (13,831,781)
                        
Total Bergio International, Inc. stockholders’ equity (deficit)   3,067,772    747,260    (747,260)      3,067,772 
                        
Non-controlling interest in subsidiary   (377,152)   -    366,157   a    (10,995)
                        
Total stockholders’ equity (deficit)   2,690,620    747,260    (381,103)      3,056,777 
                        
Total Liabilities and Stockholders’ Equity (Deficit)  $9,049,644   $1,205,888   $780,897      $11,036,429 

 

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BERGIO INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED PRO FORMA COMBINED STATEMENTS OF OPERATIONS

 

   For the Six Months Ended   For the Year Ended 
   June 30, 2021   December 31, 2020 
   Bergio International, Inc. and Subsidiaries   GearBubble, Inc   Pro Forma Combined   Bergio International, Inc. and Subsidiaries   GearBubble, Inc   Pro Forma Combined 
                         
Sales, net  $3,286,634   $5,745,980   $9,032,614   $584,806   $27,134,817   $27,719,623 
                               
Cost of sales   688,256    5,524,431    6,212,687    243,688    24,975,113    25,218,801 
                               
Gross profit   2,598,378    221,549    2,819,927    341,118    2,159,704    2,500,822 
                               
Operating Expenses:                              
Selling and marketing expenses   1,739,155    262,458    2,001,613    -    801,941    801,941 
Professional and consulting expenses   508,135    137,827    645,962    -    131,345    131,345 
General and administrative expenses   1,190,411    290,492    1,480,903    604,852    428,454    1,033,306 
                               
Total Operating Expenses   3,437,701    690,777    4,128,478    604,852    1,361,740    1,966,592 
                               
Operating Income (Loss) from Operations   (839,323)   (469,228)   (1,308,551)   (263,734)   797,964    534,230 
                               
Other Income (Expense):                              
Interest expense   (353,058)   (2,265)   (355,323)   (100,056)   (77,564)   (177,620)
Derivative expense   (214,203)   -    (214,203)   (127,285)   -    (127,285)
Change in fair value of derivative liabilities   (769,211)   -    (769,211)   474,775    -    474,775 
Amortization of debt discount   (670,865)   -    (670,865)   (236,634)   -    (236,634)
Cancellation of debt from a related party   -    (45,000)   (45,000)   -    -    - 
Gain on extinguishment of debt   423,309    -    423,309    36,276    -    36,276 
Forgiveness of PPP loan   -    -    -    18,608           
Forgiveness of convertible debt   -    -    -    50,000           
Interest income   822    -    822    -    -    - 
Other income   24,406    -    24,406    -    -    - 
                               
Total Other Income (Expense), net   (1,558,800)   (47,265)   (1,606,065)   115,684    (77,564)   (30,488)
                               
Income (Loss) from Operations   (2,398,123)   (516,493)   (2,914,616)   (148,050)   720,400    503,742 
                               
Income (Loss) before provision for income taxes   (2,398,123)   (516,493)   (2,914,616)   (148,050)   720,400    503,742 
                               
Provision for income taxes   -    -    -    -    (160,000)   (160,000)
                               
Net income (loss)   (2,398,123)   (516,493)   (2,914,616)   (148,050)   560,400    343,742 
                               
Income (losses) attributable to non-controlling interest   377,152    253,082    630,234    -    (274,596)   (274,596)
                               
Net income (loss) attributable to Bergio International, Inc.  $(2,020,971)  $(263,411)  $(2,284,382)  $(148,050)  $285,804   $69,146 
                               
Net income (loss) per common share - basic and diluted                              
Basic and Diluted  $(0.01)       $(0.01)  $(0.00)       $0.00 
                               
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:                              
Basic and Diluted   246,224,350         246,224,350    86,018,507         86,018,507 

 

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Note 1: Basis of Presentation

 

On July 1, 2021, the Company entered into an Agreement and Plan of Merger with GearBubble, Inc., a Nevada corporation, pursuant to which the shareholders of Gear Bubble agreed to sell 100% of the issued and outstanding shares of Gear Bubble to a recently formed wholly-owned subsidiary of the Company known as Gear Bubble Tech, Inc., a Wyoming corporation in exchange for $3,162,000.00, which shall be paid as follows: a) $2,000,000.00 which was paid in cash at Closing, b) $1,162,000.00 to be paid in 15 equal installments, and c) 49,000 shares of the 100,000 authorized shares of the Merger Sub, such that upon the Closing, 51% of the Merger Sub shall be owned by BRGO, and 49% of the Merger Sub shall be owned by the Gear Bubble Shareholders.

 

The unaudited pro forma combined balance sheets reflect the effects of applying certain preliminary accounting adjustments to the historical consolidated results. The unaudited pro forma combined statements of operations do not include non-recurring items such as transaction costs related to the acquisition. The final purchase price allocation is subject to the final determination of the fair values of acquired assets and assumed liabilities and, therefore, that allocation and the resulting effect on income from operations may differ from the unaudited pro forma amounts included herein.

 

Assumptions underlying the pro forma adjustments necessary to reasonably present this unaudited pro forma information should be read in conjunction with this unaudited pro forma combined financial information. The pro forma adjustments have been made based on available information and in the opinion of management, are reasonable. The unaudited pro forma combined financial information should not be considered indicative of actual results that would have been achieved had the acquisition occurred on the date indicated and do not purport to indicate results of operations for any future period.

 

Note 2: Description of Pro Forma Adjustments

 

Adjustments to the unaudited pro forma combined balance sheet:

 

a)The adjustment reflects the consideration paid pursuant to the Agreement and Plan of Merger which consisted of: a) $2,000,000.00 which was paid in cash at Closing, b) $1,162,000.00 to be paid in 15 equal installments, and c) 49,000 of the 100,000 authorized shares of the Merger Sub, such that upon the Closing, 51% of the Merger Sub shall be owned by BRGO, and 49% of the Merger Sub shall be owned by the Gear Bubble Shareholders

 

b)Goodwill was recorded at its estimated fair value of $2,651,308 on the acquisition date and was inherently uncertain, subject to refinement. It was calculated as the difference between the consideration paid and the net asset and liabilities acquired by the Company.

 

c)Recapitalization of GearBubble to eliminate its stockholders’ equity.

 

 

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