Exhibit 99.1
UNAUDITED PRO FORMA FINANCIAL STATEMENTS OF THE ESN GROUP AND ASA
Xcelerate Inc., ESN Group Inc. ASA Africa
Unaudited Proforma Consolidated Balance Sheets
For the Six Months Ended June 30, 2023
Xcelerate | ESN Group | ASA | Acquisition | |||||||||||||||||||
Inc. | Inc. | Africa | Entries | Consolidated | ||||||||||||||||||
Assets | ||||||||||||||||||||||
Current Assets: | ||||||||||||||||||||||
Cash | $ | 5,639 | $ | 10,355 | $ | 98,798 | $ | 114,791 | ||||||||||||||
Accounts receivable | 278,961 | 278,961 | ||||||||||||||||||||
Inventory | 545,603 | 545,603 | ||||||||||||||||||||
Prepaid expenses | 506 | 506 | ||||||||||||||||||||
Total current assets | 5,639 | 835,425 | 98,798 | – | 939,861 | |||||||||||||||||
Property and equipment - Net | 14 | 1,181 | 1,195 | |||||||||||||||||||
Investment | 300,000 | 5,000 | (300,000 | ) | (b) | 5,000 | ||||||||||||||||
Goodwill | 633,345 | (a)(b)(c) | 633,345 | |||||||||||||||||||
Intangible assets | 4,000 | 175,929 | (c)(d) | 179,929 | ||||||||||||||||||
Deposits | 7,038 | 7,038 | ||||||||||||||||||||
Total Assets | $ | 309,639 | $ | 842,477 | $ | 104,979 | $ | 509,274 | $ | 1,766,369 | ||||||||||||
Liabilities and Stockholders' Equity: | ||||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||||
Accounts Payable | $ | 163,802 | $ | 465,367 | 629,169 | |||||||||||||||||
Loans payable | 206,216 | 400,000 | 606,216 | |||||||||||||||||||
Convertible Debt | – | |||||||||||||||||||||
Accrued liabilities | 4,227 | 4,227 | ||||||||||||||||||||
Notes payable related parties | 356,074 | 83,000 | (a)(b) | 439,074 | ||||||||||||||||||
Total Current Liabilities | 519,877 | $ | 675,809 | – | 483,000 | 1,678,685 | ||||||||||||||||
Total liabilities | 519,877 | 675,809 | – | 483,000 | 1,678,685 | |||||||||||||||||
Stockholders' Equity (Deficit) | ||||||||||||||||||||||
Series A Preferred Stock | – | – | ||||||||||||||||||||
Series B Preferred Stock | 12 | – | 12 | |||||||||||||||||||
Common stock | 41,844 | 400 | (b) | 42,244 | ||||||||||||||||||
Additional paid in capital | 8,630,691 | 199,600 | (b) | 8,830,291 | ||||||||||||||||||
Retained earnings (deficit) | (8,882,784 | ) | 166,668 | 104,979 | (306,832 | ) | (a)(b)(d) | (8,917,970 | ) | |||||||||||||
Total Stockholders' Equity (Deficit) Xcelerate Inc. | (210,237 | ) | 166,668 | 104,979 | (106,832 | ) | (45,423 | ) | ||||||||||||||
Non-controlling interest | – | – | – | 133,107 | (a) | 133,107 | ||||||||||||||||
Total Stockholders' Equity (Deficit) | (210,237 | ) | 166,668 | 104,979 | 26,274 | 87,683 | ||||||||||||||||
Total Liabilities and Stockholders' Equity (Deficit) | $ | 309,639 | $ | 842,477 | 104,979 | $ | 509,274 | $ | 1,766,369 |
1 |
Xcelerate Inc., ESN Group Inc. ASA Africa
Unaudited Proforma Consolidated Income Statements
For the Six Months Ended June 30, 2023
Xcelerate | ESN Group | ASA | Acquisition | |||||||||||||||||
Inc. | Inc. | Africa | Entries | Consolidated | ||||||||||||||||
Sales – Net | $ | – | $ | 1,472,883 | $ | – | $ | – | $ | 1,472,883 | ||||||||||
Cost of Sales | – | 879,662 | – | – | 879,662 | |||||||||||||||
Gross Profit | – | 593,221 | – | – | 593,221 | |||||||||||||||
Operating expenses | ||||||||||||||||||||
Stock based compensation | 1,453,500 | 1,453,500 | ||||||||||||||||||
General and administrative expenses | 191,853 | 706,736 | 88,718 | 987,307 | ||||||||||||||||
Amortization of intangible assets | – | – | – | 35,186 | (d) | 35,186 | ||||||||||||||
Total operating expenses | 1,645,353 | 706,736 | 88,718 | 35,186 | 2,475,993 | |||||||||||||||
Income (loss) from operations | (1,645,353 | ) | (113,515 | ) | (88,718 | ) | (35,186 | ) | (1,882,772 | ) | ||||||||||
Other income (expense) | ||||||||||||||||||||
Interest expense | (157,500 | ) | – | – | – | (157,500 | ) | |||||||||||||
Total other income (expense) | (157,500 | ) | – | – | – | (157,500 | ) | |||||||||||||
Loss from operations before income tax | (1,802,853 | ) | (113,515 | ) | (88,718 | ) | (35,186 | ) | (2,040,272 | ) | ||||||||||
Provision for income taxes | – | – | – | – | – | |||||||||||||||
Net loss | $ | (1,802,853 | ) | $ | (113,515 | ) | $ | (88,718 | ) | $ | (35,186 | ) | $ | (2,040,272 | ) | |||||
Less : net loss attributable to non-controlling interest | – | – | – | (101,116 | ) (e) | (101,116 | ) | |||||||||||||
Net loss attributable to Xcelerate Inc. | $ | (1,802,853 | ) | $ | (113,515 | ) | $ | (88,718 | ) | $ | 65,931 | $ | (1,939,156 | ) | ||||||
Basic and fully diluted loss per share | $ | (0.00 | ) | $ | – | $ | – | $ | – | $ | (0.00 | ) | ||||||||
Weighted average number of shares outstanding | 418,446,072 | – | – | – | 418,446,072 |
Notes
(a) | To record ESN acquisition entry and to record debt necessary to consummate the acquisition | |
(b) | To record ASA acquisition entry and to record debt and 4,000,000 shares of common stock necessary to consummate the acquisition. These shares were valued at $0.05 per share | |
(c) | To initially allocate approximately 25% of preliminary goodwill to intangible assets | |
(d) | To record amortization of intangible assets over a three year period as if the acquisition had occurred on January 1, 2023 | |
(e) | To record net loss from non-affiliates for 49% interest |
2 |
Xcelerate Inc., ESN Group Inc. ASA Africa
Unaudited Proforma Consolidated Balance Sheets
For the Year Ended December 31, 2022
Xcelerate | ESN Group | ASA | Acquisition | |||||||||||||||||||
Inc. | Inc. | Africa | Entries | Consolidated | ||||||||||||||||||
Assets | ||||||||||||||||||||||
Current Assets: | ||||||||||||||||||||||
Cash | $ | 18,815 | $ | 10,771 | $ | 103,068 | $ | 132,654 | ||||||||||||||
Accounts receivable | 326,660 | 326,660 | ||||||||||||||||||||
Inventory | 592,221 | 592,221 | ||||||||||||||||||||
Prepaid expenses | – | – | ||||||||||||||||||||
Total current assets | 18,815 | 929,652 | 103,068 | – | 1,051,535 | |||||||||||||||||
Property and equipment - Net | 1 | 668 | 669 | |||||||||||||||||||
Investment | 210,000 | – | 10,000 | (210,000 | ) | (b) | 10,000 | |||||||||||||||
Goodwill | 633,345 | (a)(b)(c) | 633,345 | |||||||||||||||||||
Intangible assets | 140,743 | (c)(d) | 140,743 | |||||||||||||||||||
Deposits | 7,544 | 7,544 | ||||||||||||||||||||
Total Assets | $ | 228,815 | $ | 937,197 | $ | 113,736 | $ | 564,089 | $ | 1,843,837 | ||||||||||||
Liabilities and Stockholders' Equity: | ||||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||||
Accounts Payable | $ | 115,132 | $ | 384,620 | 499,752 | |||||||||||||||||
Loans payable | 400,000 | 400,000 | ||||||||||||||||||||
Convertible Debt | – | |||||||||||||||||||||
Accrued liabilities | 266,323 | 266,323 | ||||||||||||||||||||
Notes payable related parties | 132,067 | 173,000 | (a)(b) | 305,067 | ||||||||||||||||||
Total Current Liabilities | 247,199 | $ | 650,944 | – | 573,000 | 1,471,143 | ||||||||||||||||
Total liabilities | 247,199 | 650,944 | – | 573,000 | 1,471,143 | |||||||||||||||||
Stockholders' Equity (Deficit) | ||||||||||||||||||||||
Series A Preferred Stock | – | – | ||||||||||||||||||||
Series B Preferred Stock | 12 | – | 12 | |||||||||||||||||||
Common stock | 38,544 | 400.00 | (b) | 38,944 | ||||||||||||||||||
Additional paid in capital | 7,022,991 | 199,600.00 | (b) | 7,222,591 | ||||||||||||||||||
Retained earnings (deficit) | (7,079,931 | ) | 286,253 | 113,736 | (342,018 | ) | (a)(b)(d) | (7,021,960 | ) | |||||||||||||
Total Stockholders' Equity (Deficit) Xcelerate Inc. | (18,384 | ) | 286,253 | 113,736 | (142,018 | ) | 239,587 | |||||||||||||||
Non-controlling interest | – | – | – | 133,107 | (a) | 133,107 | ||||||||||||||||
Total Stockholders' Equity (Deficit) | (18,384 | ) | 286,253 | 113,736 | (8,912 | ) | 372,693 | |||||||||||||||
Total Liabilities and Stockholders' Equity (Deficit) | $ | 228,815 | $ | 937,197 | 113,736 | $ | 564,088 | $ | 1,843,837 |
3 |
Xcelerate Inc., ESN Group Inc. ASA Africa
Unaudited Proforma Consolidated Income Statements
For the Year Ended December 31, 2022
Xcelerate | ESN Group | ASA | Acquisition | |||||||||||||||||
Inc. | Inc. | Africa | Entries | Consolidated | ||||||||||||||||
Sales – Net | $ | 2,672,488 | $ | 2,672,488 | ||||||||||||||||
Cost of Sales | 1,519,480 | 1,519,480 | ||||||||||||||||||
Gross Profit | – | 1,153,009 | – | – | 1,153,009 | |||||||||||||||
Operating expenses | ||||||||||||||||||||
Stock based compensation | 650,000 | 796,263 | ||||||||||||||||||
General and administrative expenses | 194,609 | 1,282,952 | 146,263 | 340,872 | ||||||||||||||||
Amortization of intangible assets | 70,372 | (d) | 70,372 | |||||||||||||||||
Total operating expenses | 844,609 | 1,282,952 | 146,263 | 70,372 | 1,207,507 | |||||||||||||||
Income (loss) from operations | (844,609 | ) | (129,943 | ) | (146,263 | ) | (70,372 | ) | (54,498 | ) | ||||||||||
Other income (expense) | ||||||||||||||||||||
Interest expense | – | – | – | – | – | |||||||||||||||
Total other income (expense) | – | – | – | – | – | |||||||||||||||
Loss from operations before income tax | (844,609 | ) | (129,943 | ) | (146,263 | ) | (70,372 | ) | (1,191,187 | ) | ||||||||||
Provision for income taxes | – | – | – | – | – | |||||||||||||||
Net loss | $ | (844,609 | ) | $ | (129,943 | ) | $ | (146,263 | ) | $ | (70,372 | ) | $ | (1,191,187 | ) | |||||
Less : net loss attributable to non-controlling interest | – | – | – | (138,103 | ) (e) | (138,103 | ) | |||||||||||||
Net loss attributable to Xcelerate Inc. | $ | (844,609 | ) | $ | (129,943 | ) | $ | (146,263 | ) | $ | 67,731 | $ | (1,053,084 | ) | ||||||
Basic and fully diluted loss per share | $ | (0.00 | ) | $ | – | $ | – | $ | – | $ | (0.00 | ) | ||||||||
Weighted average number of shares outstanding | 385,446,072 | – | – | – | 385,446,072 |
Notes
(a) | To record ESN acquisition entry and to record debt necessary to consummate the acquisition | |
(b) | To record ASA acquisition entry and to record debt and 4,000,000 shares of common stock necessary to consummate the acquisition. These shares were valued at $0.05 per share | |
(c) | To initially allocate approximately 25% of preliminary goodwill to intangible assets | |
(d) | To record amortization of intangible assets over a three year period as if the acquisition had occurred on January 1, 2022 | |
(e) | To record net loss from non-affiliates for 49% interest |
4 |