DS Healthcare (DSKX) 8-K/A Financial Statements and Exhibits

EXHIBIT 99.2

DS Healthcare Group, Inc.

Pro-Forma Consolidated Balance Sheet

September 30, 2012

	DS Healthcare Group, Inc. (Consolidated)			Divine Skin 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)	(210,920	)(d)						1,848,955
Other Assets		67,431			146,359												213,790
TOTAL ASSETS	$	9,040,313		$	1,026,042											$	9,505,893
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)						(2,553,863	)
Total Shareholders' Equity		6,879,116			593,866					(210,920	)(d)						7,165,287
Non-Controlling Interest		—			—					2,909	(b)						2,909
Total Equity		6,879,116			593,866												7,168,196
																	—
TOTAL LIABILITIES AND EQUITY	$	9,040,313		$	1,026,042		—			(421,840	)		—			$	9,505,893

————————

(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

(d)

To record nine months amortization of the customer list based on a 5 year amortization period

DS Healthcare Group, Inc.

Pro-Forma Consolidated Statement of Operations

For the year ended December 31, 2011

	DS Healthcare Group, Inc. (Consolidated)			Divine Skin 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

For the nine months ended September 30, 2012

	DS Healthcare Group, Inc. (Consolidated)			Divine Skin 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		210,920		(b)		3,460,479
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

(b)

To record nine months amortization of the customer list based on a 5 year amortization period