DS Healthcare (DSKX) 8-K Completion of Acquisition or Disposition of Assets

EXHIBIT 99.2

DS Healthcare Group, Inc.

Pro-Forma Consolidated Balance Sheet

December 31, 2011

	DS Healthcare Group, Inc. (Consolidated)			DS Laboratories, S.A. DE C.V.		Acquisition Adjustment				Acquisition Adjustment				Elimination				ProForma Consolidated Balance Sheet
ASSETS
Current Assets
Cash	$	1,284,343		$	12,137													$	1,296,480
Accounts receivable, net		1,888,453			357,647										(375,634	)	(c)		1,870,466
Inventory		2,174,784			135,239														2,310,023
Prepaid expenses and other current assets		57,940			58,899		—		(a)										116,839
Total Current Assets		5,405,520			563,922														5,593,808
Furniture and Equipment, net		53,017			63,656														116,673
Intangible Assets, net		630,316			—		1,701,297		(a)										2,331,613
Other Assets		15,138			180,061														195,199
TOTAL ASSETS	$	6,103,991		$	807,639													$	8,237,293
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued expenses	$	1,021,313		$	460,063										(375,634	)	(c)	$	1,105,742
Client facility		—			—														—
Other current liabilities		77,432			48,873														126,305
TOTAL LIABILITIES		1,098,745			508,936														1,232,047
COMMITMENTS AND CONTINGENCIES
Equity
Preferred stock, $0.001 par value, 30 million shares authorized:
10,000,000 shares issued and outstanding at December 31, 2011		10,000			—														10,000
Common stock, $0.001 par value, 300 million shares authorized:
10,502,961 shares issued and outstanding at December 31, 2011		10,503			—						—								10,503
Additional paid-in-capital		6,606,668			118,300		1,881,700		(a)		—								8,606,668
Legal reserve					—		—		(a)										—
Stock subscription		(100,000	)		—		—		(a)										(100,000	)
Retained earnings (accumulated deficit)		(1,506,893	)		180,403		(180,403	)	(a)		(2,179	)	(b)						(1,509,072	)
Total Shareholders' Equity		5,020,278			298,703														7,018,099
Non-Controlling Interest		(15,032	)		—						2,179		(b)						(12,853	)
Total Equity		5,005,246			298,703														7,005,246
TOTAL LIABILITIES AND EQUITY	$	6,103,991		$	807,639		—				—				—			$	8,237,293

————————

(a)

To reclass initial purchase price of $2,000,000, record intangible asset associated with customer list and reverse equity for subsidiary purchased

(b)

To reflect 1% noncontrolling interest

(c)

To record intercompany eliminations

DS Healthcare Group, Inc.

Pro-Forma Consolidated Balance Sheet

September 30, 2012

	DS Healthcare Group, Inc. (Consolidated)			DS Laboratories, S.A. DE C.V.		Acquisition Adjustment				Acquisition Adjustment		Elimination				ProForma Consolidated Balance Sheet
ASSETS
Current Assets
Cash	$	945,065		$	70,762											$	1,015,827
Accounts receivable, net		2,575,231			392,323								(255,676	)	(c)		2,711,878
Inventory		2,920,721			249,295												3,170,016
Prepaid expenses and other current assets		1,766,397			57,191		(1,500,000	)	(a)								323,588
Total Current Assets		8,207,414			769,571												7,221,309
Furniture and Equipment, net		111,727			110,112												221,839
Intangible Assets, net		653,741			—		1,406,134		(a)								2,059,875
Other Assets		67,431			146,359												213,790
TOTAL ASSETS	$	9,040,313		$	1,026,042											$	9,716,813
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued expenses	$	1,432,191		$	374,969								(255,676	)	(c)	$	1,551,484
Client facility		602,298			—												602,298
Other current liabilities		126,708			57,207												183,915
TOTAL LIABILITIES		2,161,197			432,176												2,337,697
COMMITMENTS AND CONTINGENCIES
Equity
Preferred stock, $0.001 par value, 30 million shares authorized:
5,500,000 shares issued and outstanding at September 30, 2012		5,500			—												5,500
Common stock, $0.001 par value, 300 million shares authorized:
12,077,944 shares issued and outstanding at September 30, 2012		12,078			—												12,078
Additional paid-in-capital		9,801,572			128,210		(128,210	)	(a)								9,801,572
Legal reserve					12,130		(12,130	)	(a)								—
Stock subscription		(600,000	)		—		500,000		(a)								(100,000	)
Retained earnings (accumulated deficit)		(2,340,034	)		453,526		(453,526	)	(a)	(2,909)	(b)						(2,342,943	)
Total Shareholders' Equity		6,879,116			593,866												7,376,207
Non-Controlling Interest		—			—					2,909	(b)						2,909
Total Equity		6,879,116			593,866												7,379,116
																	—
TOTAL LIABILITIES AND EQUITY	$	9,040,313		$	1,026,042		—			—			—			$	9,716,813

————————

(a)

To reclass initial purchase price of $2,000,000, record intangible asset associated with customer list and reverse equity for subsidiary purchased

(b)

To reflect 1% noncontrolling interest

(c)

To record intercompany eliminations

DS Healthcare Group, Inc.

Pro-Forma Consolidated Statement of Operations

December 31, 2011

	DS Healthcare Group, Inc. (Consolidated)			DS Laboratories, S.A. DE C.V.			Eliminations				ProForma Consolidated Statement of Operations
Net Revenues		9,672,861			1,145,219			(475,634	)	(a)		10,342,446
Cost of Goods Sold		4,751,961			547,067			(475,634	)	(a)		4,823,394
Gross Profit		4,920,900			598,152							5,519,052
Operating Costs and Expenses:
Selling and marketing		2,856,482			—							2,856,482
General and administrative		3,057,988			350,793							3,408,781
Total operating costs and expenses		5,914,470			350,793							6,265,263
Operating Income (Loss)		(993,570	)		247,359							(746,211	)
Other Income (Expense)		12,678			(16,771	)						(4,093	)
Net income (loss) before income tax		(980,892	)		230,588							(750,304	)
Provision for income tax		—			12,650							12,650
Net Income (Loss)		(980,892	)		217,938							(762,954	)
Net Income (Loss) Attributable to Non-Controlling Interest	$	(2,292	)	$	2,179						$	(113	)
Net Income (Loss) Attributable to Shareholders of DS Healthcare Group, Inc.	$	(978,600	)	$	215,759						$	(762,841	)
Basic and Diluted Earnings per Share:
Weighted average shares		10,061,120										10,061,120
Earnings per share	$	(0.0973	)								$	(0.0758	)

————————

(a)

To eliminate intercompany sales and purchases

DS Healthcare Group, Inc.

Pro-Forma Consolidated Statement of Operations

September 30, 2012

	DS Healthcare Group, Inc. (Consolidated)			DS Laboratories, S.A. DE C.V.		Eliminations				ProForma Consolidated Statement of Operations
Net Revenues		8,672,634			1,334,820		(343,730	)	(a)		9,663,724
Cost of Goods Sold		4,380,170			416,398		(343,730	)	(a)		4,452,838
Gross Profit		4,292,464			918,422						5,210,886
Operating Costs and Expenses:
Selling and marketing		2,536,197			—						2,536,197
General and administrative		2,609,990			639,569						3,249,559
Total operating costs and expenses		5,146,187			639,569						5,785,756
Operating Income (Loss)		(853,723	)		278,853						(574,870	)
Other Income (Expense)		4,937			12,036						16,973
Net income (loss) before income tax		(848,786	)		290,889						(557,897	)
Provision for income tax		—			—						—
Net Income (Loss)		(848,786	)		290,889						(557,897	)
Net Income (Loss) Attributable to Non-Controlling Interest	$	—		$	2,909					$	2,909
Net Income (Loss) Attributable to Shareholders of DS Healthcare Group, Inc.	$	(848,786	)	$	287,980					$	(560,806	)
Basic and Diluted Earnings per Share:
Weighted average shares		10,778,475									10,778,475
Earnings per share	$	(0.0787	)							$	(0.0520	)

————————

(a)

To eliminate intercompany sales and purchases