Eastgate Biotech (ETBI) 8-K Entry into a Material Definitive Agreement

Pro-forma Financial Statements

For the Years Ended December 31, 2011 & 2010

&

For the Quarter Ended

March 31, 2012

Notes to Unaudited Pro Forma Consolidated Financial Statements

On January 15, 2012, Eastgate Acquisitions Corporation, a Nevada corporation (“Eastgate”); and Anna Gluskin, who is the owner of certain patents, executed a Patent Acquisition Agreement (the “Agreement”) by which Eastgate acquired certain products, formulas, processes, proprietary technology and/or patents and patent applications related to pharmaceutical, nutraceutical, food supplements and consumer health products (collectively referred to as the “Products”).  In exchange for the acquired products and technology, Eastgate has agreed to issue at the closing to the seller, Anna Gluskin and/or her assigns, 10 million shares of Eastgate’s authorized, but previously unissued common stock, post-split as discussed below.  The closing of the agreement is contingent upon realizing initial financing of $300,000.  

In addition to the 10 million shares of common stock to be issued to the seller, the agreement provides that at the closing, Eastgate will issue 10 million shares of common stock to certain individuals in consideration for services rendered for and monies advanced to Eastgate.  Further, following the closing of the agreement, Eastgate will name at least two new directors to its board of directors, to be designated by the seller and Eastgate’s current management.  It is also anticipated that our corporate name will be changed to a name selected by the board, which name will be intended to reflect the acquisition of Products and our anticipated new business endeavors. The agreement is subject to completion of due diligence and certain other usual conditions.  

Pro forma adjustment [1] reflects the issuance of 10,000,000 shares of Eastgate common stock in exchange for the Products recorded at predecessor cost of $-0-.  Pro forma adjustment [2] reflects the issuance of 10,000,000 shares of Eastgate common stock in settlement of the liabilities of Eastgate.

EASTGATE ACQUISITIONS CORPORATION
Proforma Consolidated Balance Sheet
December 31, 2011
			Eastgate								Adjusted
			Acquisitions				Combined		Pro Forma		Pro Forma
			Corporation		Patents		Totals		Adjustments		Totals
ASSETS
CURRENT ASSETS
	Cash		$	-	$	-	$	-	$	-	$	-
	Prepaid expenses			-		-		-		-		-
	Inventory			-		-		-		-		-
		Total Current Assets		-		-		-		-		-
OTHER ASSETS
	Patents			-		-		-		-		-
		Total Other Assets		-		-		-		-		-
		TOTAL ASSETS	$	-	$	-	$	-	$	-	$	-
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
	Accounts payable and accrued expenses		$	12,408	$	-	$	12,408	$	-	$	12,408
	Related party payable			76,780		-		76,780		(76,780)		-
		Total Current Liabilities		89,188		-		89,188		(76,780)		12,408
LONG TERM LIABILITIES
	Loans and notes payable			-		-		-		-		-
		Long term liabilities		-		-		-		-		-
		TOTAL LIABILITIES		89,188		-		89,188		(76,780)		12,408
STOCKHOLDERS' EQUITY (DEFICIT)
	Preferred stock			-		-		-		-		-
	Common stock			116		-		116		100		316
	Additional paid-in capital			32,084		-		32,084		(100)		108,664
	Retained earnings (deficit)			(121,388)		-		(121,388)		-		(121,388)
		Total Stockholders' Equity (Deficit)		(89,188)		-		(89,188)		76,780		(12,408)
		TOTAL LIABILITIES AND
		STOCKHOLDERS' EQUITY (DEFICIT)	$	-	$	-	$	-	$	-	$	-

EASTGATE ACQUISITIONS CORPORATION
Proforma Consolidated Statements of Operations
December 31, 2011
											Pro-Forma
			Eastgate								Adjusted
			Acquisitions				Combined		Pro Forma		Combined
			Corporation		Patents		Totals		Adjustments		Totals
REVENUES			$	-	$	-	$	-	$	-	$	-
COST OF SALES				-		-		-		-		-
GROSS PROFIT				-		-		-		-		-
OPERATING EXPENSES
	General and administrative			23,943		-		23,943		-		23,943
		Total Costs and Expenses		23,943		-		23,943		-		23,943
		OPERATING LOSS		(23,943)		-		(23,943)		-		(23,943)
OTHER INCOME (EXPENSE)
	Interest expense			(5,977)		-		(5,977)		-		(5,977)
		Total Other Income (Expense)		(5,977)		-		(5,977)		-		(5,977)
		LOSS BEFORE INCOME TAXES		(29,920)		-		(29,920)		-		(29,920)
		PROVISION FOR INCOME TAXES		-		-		-		-		-
		NET LOSS	$	(29,920)	$	-	$	(29,920)	$	-	$	(29,920)
BASIC AND DILUTED LOSS PER SHARE			$	(0.00)	$	0.00					$	(0.00)
WEIGHTED AVERAGE SHARES OUTSTANDING				11,625,000		10,000,000				10,000,000		31,625,000

EASTGATE ACQUISITIONS CORPORATION
Proforma Consolidated Balance Sheet
March 31, 2012
			Eastgate								Adjusted
			Acquisitions				Combined		Pro Forma		Pro Forma
			Corporation		Patents		Totals		Adjustments		Totals
ASSETS
CURRENT ASSETS
	Cash		$	-	$	-	$	-	$	-	$	-
	Inventory			-		-		-		-		-
		Total Current Assets		-		-		-		-		-
OTHER ASSETS
	Patents			-		-		-		-		-
		Total Other Assets		-		-		-		-		-
		TOTAL ASSETS	$	-	$	-	$	-	$	-	$	-
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
	Accounts payable and accrued expenses		$	15,658	$	-	$	15,658	$	-	$	15,658
	Related party payable			79,267		-		79,267		(79,267)		-
		Total Current Liabilities		94,925		-		94,925		(79,267)		15,658
LONG TERM LIABILITIES
	Loans and notes payable			-		-		-		-		-
		Long term liabilities		-		-		-		-		-
		TOTAL LIABILITIES		94,925		-		94,925		(79,267)		15,658
STOCKHOLDERS' EQUITY (DEFICIT)
	Preferred stock			-		-		-		-		-
	Common stock			116		-		116		100		316
	Additional paid-in capital			33,584		-		33,584		(100)		33,484
	Retained earnings (deficit)			(128,625)		-		(128,625)		-		(128,625)
		Total Stockholders' Equity (Deficit)		(94,925)		-		(94,925)		79,267		(15,658)
		TOTAL LIABILITIES AND
		STOCKHOLDERS' EQUITY (DEFICIT)	$	-	$	-	$	-	$	-	$	-

EASTGATE ACQUISITIONS CORPORATION
Proforma Consolidated Statements of Operations
March 31, 2012
											Pro-Forma
			Eastgate								Adjusted
			Acquisitions				Combined		Pro Forma		Combined
			Corporation		Patents		Totals		Adjustments		Totals
REVENUES			$	-	$	-	$	-	$	-	$	-
COST OF SALES				-		-		-		-		-
GROSS PROFIT				-		-		-		-		-
OPERATING EXPENSES
	General and administrative			5,750		-		5,750		-		5,750
		Total Costs and Expenses		5,750		-		5,750		-		5,750
		OPERATING LOSS		(5,750)		-		(5,750)		-		(5,750)
OTHER INCOME (EXPENSE)
	Interest expense			(1,487)		-		(1,487)		-		(1,487)
		Total Other Income (Expense)		(1,487)		-		(1,487)		-		(1,487)
		LOSS BEFORE INCOME TAXES		(7,237)		-		(7,237)		-		(7,237)
		PROVISION FOR INCOME TAXES		-		-		-		-		-
		NET LOSS	$	(7,237)	$	-	$	(7,237)	$	-	$	(7,237)
BASIC AND DILUTED LOSS PER SHARE			$	(0.00)	$	0.00					$	(0.00)
WEIGHTED AVERAGE SHARES OUTSTANDING				11,625,000		10,000,000				10,000,000		31,625,000