EX-99.4 5 sollensyscorp_ex99-4.htm EXHIBIT 99.4

 

Exhibit 99.4

 

Sollensys Corp and Abstract Media, LLC

Unaudited Proforma Consolidated Balance Sheets

For the Nine Months Ended September 30, 2021

 

    Sollensys     Abstract                  
    Corp     Media, LLC               Consolidated  
    September 30,     September 30,         Acquisition     September 30,  
    2021     2021         Entries     2021  
                             
Assets                            
Current assets:                                    
Cash   $ 146,406     $ 48,280     (b)   $ (30,000 )   $ 164,686  
Accounts receivable -net     -       26,079           -        26,079  
Inventory     78,000       -           -        78,000  
Prepaid expenses     93,369       5,900           -        99,269  
Other assets     3,600       -           -        3,600  
Total current assets     321,375       80,260           (30,000 )     371,635  
Building, land, and improvements- not in service     2,667,246       -           -        2,667,246  
Property and equipment, net     233,854       15,386           -        249,240  
Intangible assets     -       -     (b) (c)     260,881       260,881  
Total Assets   $ 3,222,475     $ 95,646         $ 230,881     $ 3,549,002  
                                     
Liabilities and Stockholders’ Equity:                                    
                                     
Current Liabilities:                                    
Accounts payable and accrued liabilities   $ 424,015     $ 174,332         $ -     $ 598,346  
Customer deposits -short term     236,429       -           -        236,429  
Contract liabilities     -       14,016           -        14,016  
Mortgage payable -short term     58,101       -            -       58,101  
Loan payable-short term     5,431       -            -        5,431  
Note payable to member     -       80,000     (b)     (80,000 )     -  
Total Current Liabilities     723,976       268,348           (80,000 )     912,323  
Mortgage payable -long term     2,441,899                     -      2,441,899  
Customer deposits -long term     201,428                   -        201,428  
Loan payable     20,550       -           -        20,550  
Total liabilities     3,387,853       268,348           (80,000 )     3,576,200  
                                     
Commitments and Contingencies     -       -                   -  
                                     
Stockholders’ Equity                                    
  Common stock     100,003       -     (b)     73       100,076  
  Additional Paid-In Capital     5,730,905       -     (b)     366,147       6,097,052  
  Accumulated Deficit     (5,996,285 )     (172,702 )   (a)(b)(c)     (55,339 )     (6,224,326 )
  Total Stockholders’ Equity     (165,378 )     (172,702 )         310,881       (27,198)  
Total Liabilities and Stockholders’ Equity   $ 3,222,475     $ 95,646         $ 230,881     $ 3,549,002  

  

Notes

(a)Represents members deficit net of capital contributions and disbursements
(b)Reflects the issuance of 73,244 shares valued at the Company’s private placement memorandum price of 5.00 per share or a value of $336,220 plus $30,000 in cash and the reduction of $80,000 in debt to an LLC member. The Company estimates that all of the purchase price will be allocated to intangible assets with an estimated 10 year amortization period. These estimates will be subject to further analysis and adjustment by the Company as it completes its acquisition accounting
(c)To record amortization for the nine month period ended September 30, 2021

 

See notes to unaudited pro forma financial statements

 

 F-1 

 

 

Sollensys Corp and Abstract Media, LLC

Unaudited Proforma Consolidated Statements of Operations

For the Nine Months Ended September 30, 2021

 

    Sollensys     Abstract                  
    Corp     Media, LLC               Consolidated  
    September 30,     September 30,         Acquisition     September 30,  
    2021     2021         Entries     2021  
                             
Revenue   $ 145,357     $ 296,681           -      $ 442,038  
Cost of sales     167,352       391,104           -        558,456  
Gross (loss)     (21,995 )     (94,423 )                 (116,418 )
                                     
Operating expenses                                    
Depreciation and amortization                    (b)      23,717        23,717   
Selling, general and administrative expense     2,505,120       148,008           -        2,653,129  
Total operating expenses     2,505,120       148,008           (23,717 )     2,629,412  
Loss from operations     (2,527,115 )     (242,431 )         (23,717 )     (2,793,264 )
                                     
Other income (expense)                                    
Other income     3,675       208,731           -        212,406  
Interest expense     (30,767 )     -            -        (30,767 )
Total other income (expense)     (27,092 )     208,731           -        181,639  
Net loss   $ (2,554,207 )     (33,700 )         (23,717 )     (2,611,624 )
                                  -  
Basic and fully diluted loss per share   $ (0.03 )   $ -           -      $ (0.03 )
                                     
Weighted average number of shares outstanding     99,554,582       -     (a)     521,154       100,075,736  

 

Notes

(a)Reflects 100,002,492 shares outstanding as of September 30, 2021 plus 73,244 acquisition shares
(b)Represents amortization of intangible assets for the nine month period ended September 30, 2021

 

See notes to unaudited pro forma financial statements

 

 F-2 

 

 

Sollensys Corp and Abstract Media, LLC

Unaudited Proforma Consolidated Balance Sheets

For the Year Ended December 31, 2020

 

    Sollensys     Abstract                  
    Corp     Media, LLC               Consolidated  
    December 31,     December 31,         Acquisition     December 31,  
    2020     2020         Entries     2020  
                             
Assets                            
Current assets:                                    
Cash   $ 129,624     $ 35,279     (b)   $ (30,000 )   $ 134,903  
Accounts receivable -net     -       78,987           -        78,987  
Inventory     54,000       -           -       54,000  
Other assets     -       4,300            -       4,300  
Total current assets     183,624       118,566           (30,000 )     272,190  
Property and equipment, net     -        17,650           -        17,650  
Intangible assets     -        --      (b)(c)     284,598       284,598  
Total assets   $ 183,624     $ 136,216         $ 254,598     $ 574,438  
                                     
Liabilities and Stockholders’ Equity:                                    
                                     
Current Liabilities:                                    
Accounts payable  and accrued liabilities   $ 46,134     $ 85,468         $ -     $ 131,602  
Customer deposits -short term     17,143       -           -        17,143  
Contract liabilities     -       14,016           -        14,016  
Note payable to member     -       80,000     (b)     (80,000 )     -  
Total current liabilities     63,277       179,484           (80,000 )     162,761  
Customer deposits -long term     72,857       -                   72,857  
Total liabilities     136,134       179,484           (80,000 )     235,618  
                                     
Commitments and Contingencies     -       -           -       -  
                                     
Stockholders’ Equity                                    
  Common stock     99,355       -     (b)     73       99,428  
  Additional paid-in capital     3,390,213       -     (b)     366,147       3,756,360  
  Accumulated deficit     (3,442,078 )     (43,268 )   (a)(b)(c)     (31,622 )     (3,516,968 )
  Total Stockholders’ Equity     47,490       (43,268 )         334,598       338,820  
Total liabilities and Stockholders’ Equity   $ 183,624     $ 136,216         $ 254,598     $ 574,438  

 

Notes

(a)Represents members deficit net of capital contributions and disbursements
(b)Reflects the issuance of 73,244 shares valued at the Company’s private placement memorandum price of 5.00 per share or a value of $336,220 plus $30,000 in cash and the reduction of $80,000 in debt to an LLC member. The Company estimates that all of the purchase price will be allocated to intangible assets with an estimated 10 year amortization period. These estimates will be subject to further analysis and adjustment by the Company as it completes its acquisition accounting
(c)To record amortization for the year ended December 31, 2020

 

See notes to unaudited pro forma financial statements

 

 F-3 

 

 

Sollensys Corp and Abstract Media, LLC

Unaudited Proforma Consolidated Statements of Operations

For the Year Ended December 31, 2020

 

    Sollensys     Abstract                  
    Corp     Media, LLC               Consolidated  
    December 31,     December 31,         Acquisition     December 31,  
    2020(a)     2020         Entries     2020  
                                     
Revenue   $ 180,000     $ 593,006           -      $ 773,006  
Cost of sales     30,000       468,313           -        498,313  
Gross profit     150,000       124,693           -        274,693  
                                     
Operating expenses                                    
Depreciation and amortization     -       7,363     (c)      31,622        38,985  
Selling, general and administrative expenses     3,063,903       259,909                   3,323,812  
Total operating expenses     3,063,903       267,272           31,622       3,362,797  
Loss from operations     (2,913,903 )     (142,579 )         (31,622 )     (3,088,104 )
                                     
Other income (expense)                                    
Gain from the extinguishment of debt     85,771       148,000           -        233,771  
Interest expense             (7,684 )         -        (7,684 )
Total other income     85,771       140,316           -        226,087  
Net loss   $ (2,828,132 )     (2,263 )         (31,622 )     (2,862,017 )
                                     
Basic and fully diluted loss per share   $ (0.19 )   $ -           -      $ (0.03 )
                                     
Weighted average number of shares outstanding     14,910,512       -     (b)     85,165,224       100,075,736  

 

Notes

(a)Represents nine months ended December 31, 2020 due to the change of the Company’s year end on From 10-KT
(b)Reflects 100,002,492 shares outstanding as of September 30, 2021 plus 73,244 acquisition shares
(c)To record amortization for the year ended December 31, 2020

 

See notes to unaudited pro forma financial statements

 

 F-4