ForceField Energy (FNRG) 8-K Entry into a Material Definitive Agreement

SunSi Energies Inc.

INTRODUCTION TO PRO-FORMA CONSOLIDATED FINANCIAL STATEMENTS

AS OF

THE FISCAL YEAR ENDED MAY 31, 2010

The following unaudited pro-forma income statements and the explanatory notes give effect to the acquisition by SunSi of Zibo Baokai Trade Co. Ltd(“Baokai”) on December 8, 2010.

The pro-forma consolidated income statement and balance sheets and explanatory notes are based on the estimates and assumptions set forth in the explanatory notes. These pro-forma consolidated income statements have been prepared utilizing the historical financial statements of SunSi Energies, Inc. Baokai and should be read in conjunction with the historical financial statements and notes thereto included elsewhere in this filing.

The pro-forma income statements have been prepared as if the reverse capitalization had occurred on June 1, 2009. This pro-forma consolidated financial data is provided for comparative purposes only, and does not purport to be indicative of the actual financial position or results of operations had the acquisition occurred at the beginning of the periods presented, nor are they necessarily indicative of the results of future operations.

Sunsi Energies, Inc.

Unaudited Balance Sheets

for the Year ended May 31, 2010

	Sunsi			Zibo Baoaki		Adjustments			Consolidated
	Energies, Inc.			Trade Co. Ltd
	2010			2010					2010
ASSETS
Current assets
Cash and cash equivalents	$	598,468		$	63,452	$	(270,000	)(b)	$	391,920
Inventory		-			210,341					210,341
Tax receivabe		-			32,784					32,784
Other receivable		-			117,165					117,165
Total current assets		598,468			423,742		(270,000	)		752,210
Related party receivable		-			408,084					408,084
Total assets	$	598,468		$	831,826		(270,000	)	$	1,160,294
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities	$	149,538		$	134,926			(a)	$	284,464
Other payable		-			320,738					320,738
Related party payable		-			73,228					73,228
Advances payable		230,981			-					230,981
Compensation payable-related party		5,671			-					5,671
Total current liabilities		386,190			528,892		-			915,082
Minority interest		-			-		1,448			1,448
Stockholders' equity
Common stock, $0.001 par value, 75,000,000 shares authorized, 27,312,500and 26,760,000 issued and outstanding in 2010 and 2009, respectively		27,312			-					27,312
Additional paid-in capital		1,018,764			287,886		(270,000	)(b)		1,036,650
Accumulated deficit		(833,798	)		10,210		(1,448	)(a)		(825,036	)
Accumulated othe comprehensive income		-			4,838					4,838
Total stockholders' equity		212,278			302,934		(271,448	)		243,764
Total liabilities and stockholders' equity	$	598,468		$	831,826	$	(270,000	)	$	1,160,294

(a) to record liability for minority interest

(b) to reflect the net impact of the purchase price that SunSi paid for Baokai

Sunsi Energies, Inc.

Unaudited Proforma Statement of Operations

and Comprehensive Income for the Year ended

May 31, 2010

	Historical
	Sunsi			Zibo Baoaki					Combined
	Energies, Inc.			Trade Co. Ltd		Adjustments			Pro Forma
Sales	$	-			483,148		-		$	483,148
Cost of goods sold		-			433,386		-			433,386
Gross margin		-			49,762		-			49,762
Operating expenses
Selling,general and administrative		40,854			35,336		-			76,190
Professional and outside services		580,981			-		-			580,981
Total operating expenses		621,835			35,336		-			657,171
Loss from operations		(621,835	)		14,426		-			(607,409	)
Other expense
Interest income		-			477		-			477
Total other expense		-			477		-			477
Loss before income taxes		(621,835	)		14,903		-			(606,932	)
Income taxes		-			615		-			615
Net income		(621,835	)		14,288					(607,547	)
Other comprehensive income:
Foreign currency translation adjustments		-			190					190
Total comprehensive income		(621,835	)		14,478					(607,357	)
Less: minority interest Baokai							(1,448	)(a)		(1,448	)
Net loss	$	(621,835	)	$	14,478	$	(1,448	)	$	(608,805	)
Loss per share:
Basic and diluted	$	(0.02	)			$	-		$	(0.02	)
Weighted average number of common shares outstanding:
Basic and diluted		26,972,486					-			26,972,486

(a)  Reflects a 10% minority interest in Baokai