EX-99.2 3 ex_197848.htm EXHIBIT 99.2 ex_197848.htm

Exhibit 99.2

 

 

UNAUDITED PRO FORMA FINANCIAL STATEMENTS

 

On August 3, 2020, MCX Technologies Corporation (the “Company”), formerly McorpCX, Inc., completed the sale of all of the membership units of McorpCX, LLC pursuant to the terms of the Unit Purchase Agreement dated April 15, 2020, between the Company and mfifty, LLC (the “Sale Transaction”).

 

In connection with the completion of the Sale Transaction, the Company has prepared the following unaudited pro forma condensed combined financial statements (“Unaudited Pro Forma Statements”). The Unaudited Pro Forma Statements are based on the Company’s historical consolidated financial statements adjusted to give effect to the Sale Transaction. The Unaudited Pro Forma Condensed Consolidated Statements of Operations for the years ended December 31, 2019 and 2018, and the three months ended March 31, 2020 and 2019, have been prepared with the assumption that the Sale Transaction occurred as of January 1, 2018. The Unaudited Pro Forma Condensed Consolidated Balance Sheet as of March 31, 2020 has been prepared with the assumption that the Sale Transaction was completed as of the balance sheet date.

 

The Unaudited Pro Forma Statements do not necessarily reflect what the Company’s financial condition or results of operations would have been had the Sale Transaction occurred on the dates indicated, or which may result in the future. The actual financial position and results of operations may differ significantly from the pro forma amounts reflected herein due to a variety of factors. The Unaudited Pro Forma Statements have been prepared by the Company based upon assumptions deemed appropriate by the Company's management. An explanation of certain assumptions is set forth under the Notes to Unaudited Pro Forma Condensed Combined Financial Statements.

 

The Unaudited Pro Forma Statements should be read in conjunction with the (i) audited financial statements for the Company for the fiscal years ended December 31, 2019 and 2018 included in our annual report on Form 10-K for the year ended December 31, 2019, filed with the United States Securities and Exchange Commission on March 27, 2020 and the (ii) unaudited financial statements for the Company for the three months ended March 31, 2020 and 2019 included in our quarterly report on Form 10-Q for the three months ended March 31, 2020, filed with the United States Securities and Exchange Commission on May 15, 2020.

 

 
 

 

MCX Technologies Corporation

(formerly McorpCX, Inc.)

Unaudited Pro Forma Consolidated Statements of Operations

Year Ended December 31,

 

   

Registrant Historical

     Adjustments  

Notes

  

Pro Forma

  
   

2019

     2018*     2019     2018*       2019     2018*  
                                                   

Revenue, net

   $ 3,240,009     $ 3,987,199     $ (3,240,009 )   $ (1,575,637 )

(a)

   $ -     $ 2,411,562  

Cost of goods sold

     1,501,372       2,164,240       (1,392,404 )     (788,030 )

(a)

     108,968       1,376,210  

Gross profit

     1,738,637       1,822,959       (1,847,605 )     (787,607 )       (108,968 )     1,035,352  

Operating and administrative expenses

     2,494,124       2,227,174       (1,907,139 )     (738,353 )

(b)

     586,985       1,488,821  
                                                   

Net operating loss

     (755,487 )     (404,215 )     59,534       (49,254 )       (695,953 )     (453,469 )

Interest and other expenses

     (5,468 )     (7,001 )     10,377       6,026  

(b)

     4,909       (975 )
                                                   

Net loss

   $ (760,955 )   $ (411,216 )   $ 69,911     $ (43,228 )     $ (691,044 )   $ (454,444 )
                                                   

Net loss per share-basic and diluted

   $ (0.04 )   $ (0.02 )   $ (0.00 )   $ 0.00       $ (0.03 )   $ (0.02 )
                                                   

Weighted average common shares outstanding-basic and diluted

     20,426,158       20,426,158       20,426,158       20,426,158         20,426,158       20,426,158  

 

* McorpCX, LLC was created on August 16, 2018.

 

See accompanying notes to unaudited pro forma financial statements.

 

 
 

 

MCX Technologies Corporation

(formerly McorpCX, Inc.)

Unaudited Pro Forma Consolidated Statements of Operations

Three Months Ended March 31,

 

   

Registrant Historical

     Adjustments  

Notes

  

Pro Forma

  
   

2020

    

2019

    

2020

    

2019

      

2020

    

2019

  
                                                   

Revenue, net

   $ 669,792     $ 1,010,328     $ (669,792 )   $ (1,010,328 )

(a)

   $ -     $ -  

Cost of goods sold

     259,343       388,400       (259,343 )     (345,332 )

(a)

     -       43,068  

Gross profit

     410,449       621,928       (410,449 )     (664,996 )       -       (43,068 )

Operating and administrative expenses

     570,724       611,420       (413,307 )     (468,139 )

(b)

     157,417       143,281  
                                                   

Net operating loss

     (160,275 )     10,508       2,858       (196,857 )       (157,417 )     (186,349 )

Interest and other expenses

     (5,576 )     (5,731 )     (4,999 )     5,108  

(b)

     (10,575 )     (623 )
                                                   

Net loss

   $ (165,851 )   $ 4,777     $ (2,141 )   $ (191,749 )     $ (167,992 )   $ (186,972 )
                                                   

Net loss per share-basic and diluted

   $ (0.01 )   $ 0.00     $ 0.00     $ 0.01       $ (0.01 )   $ (0.01 )
                                                   

Weighted average common shares outstanding-basic and diluted

     20,426,158       20,426,158       20,426,158       20,426,158         20,426,158       20,426,158  

 

See accompanying notes to unaudited pro forma financial statements.

 

 
 

 

MCX Technologies Corporation

(formerly McorpCX, Inc.)

Unaudited Pro Forma Consolidated Balance Sheets

As of March 31, 2020

 

   

Registrant Historical

    

Adjustments

  

Notes

  

Pro Forma

  

Assets

                          

Current assets:

                          

Cash and cash equivalents

   $ 438,461     $ 120,107  

(c), (e)

   $ 558,568  

Note receivable, current portion

     -       87,504  

(d)

     87,504  

Accounts receivable

     399,338       (399,338 )

(e)

     -  

Total current assets

     837,799       (191,727 )       646,072  

Long term assets:

                          

Property and equipment, net

     86,920       (1,920 )

(e)

     85,000  

Note receivable, long term portion

     -       668,496  

(d)

     668,496  

Other assets

     59,376       (40,139 )

(e)

     19,237  

Total assets

   $ 984,095     $ 434,710       $ 1,418,805  
                           

Liabilities and Shareholders' Equity

                          

Liabilities:

                          

Accounts payable and accrued liabilities

   $ 194,199     $ (144,597 )

(e)

   $ 49,602  

Deferred revenue

     530       (530 )

(e)

     -  

Lease payable

     15,048       (15,048 )

(e)

     -  

Other current liabilities

     1,682       (674 )

(e)

     1,008  

Total current liabilities

     211,459       (160,849 )       50,610  
                           

Total liabilities

     211,459       (160,849 )       50,610  

Shareholders' equity:

                          

Common stock, no par value, 500,000,000 shares authorized, 20,426,158 shares issued and outstanding at December 31, 2019

     -       -         -  

Additional paid-in capital

     6,533,615       (536,983 )       5,996,632  

Accumulated deficit

     (5,760,979 )     1,132,542  

(f)

     (4,628,437 )

Total shareholders' equity

     772,636       595,559         1,368,195  

Total liabilities and shareholders' equity

   $ 984,095     $ 434,710       $ 1,418,805  

 

See accompanying notes to unaudited pro forma financial statements.

 

 
 

 

Notes to Unaudited Pro Forma Condensed Combined Financial Information

 

 

 

a)

This adjustment reflects the elimination of revenues and cost of goods sold of the McorpCX, LLC entity. Note: McorpCX, LLC was created on August 16, 2018.
 

b)

This adjustment reflects the elimination of operating and administrative expenses and other expenses. Not included in the pro-forma results are anticipated savings due to costs that may be reduced or eliminated. Note: McorpCX, LLC was created on August 16, 2018.
 

c)

This adjustment represents the receipt of cash consideration at the closing of the transaction which consisted of $252,000 cash paid at closing and $100,000 cash dividend paid at signing.
 

d)

This adjustment represents the current and long-term portion of a secured promissory note in the amount of $756,000 issued to the Company by mfifty, LLC.
 

e)

These adjustments reflect the elimination of assets and liabilities attributable to the McorpCX, LLC entity subsequent to August 16, 2018. Note: McorpCX, LLC was created on August 16, 2018.
 

f)

This adjustment reflects the net impact of the Sale Transaction based on the purchase consideration of $1,108,000. This has not been reflected in the pro forma consolidated statement of operations as it is considered to be nonrecurring in nature. No adjustment has been made to the sale proceeds to give effect to any potential post-closing adjustments under the terms of the asset purchase agreement.

 

* McorpCX, LLC was created on August 16, 2018.