Exhibit 99.1
iFRESH, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
AS OF MARCH 31, 2020
HUBEI | PRO FORMA | PRO FORMA | ||||||||||||||||
iFRESH | RONGENTANG | Note | ADJUSTMENT | COMBINED | ||||||||||||||
(UNAUDITED) | (UNAUDITED) | (UNAUDITED) | ||||||||||||||||
ASSETS | ||||||||||||||||||
Current assets: | ||||||||||||||||||
Cash and cash equivalents | $ | 836,745 | $ | 201,253 | (1) | $ | 2,500,000 | $ | 3,537,998 | |||||||||
Accounts receivable, net | 5,089,452 | 221,482 | 5,310,934 | |||||||||||||||
Inventories, net | 8,216,153 | 2,113,877 | 10,330,030 | |||||||||||||||
Prepaid expenses and other current assets | 4,130,155 | 3,844,786 | 7,974,941 | |||||||||||||||
Total current assets | 18,272,505 | 6,381,397 | 2,500,000 | 27,153,903 | ||||||||||||||
Advances and receivables - related parties | 4,709,372 | 4,709,372 | ||||||||||||||||
Property and equipment, net | 19,345,752 | 3,916,543 | 23,262,295 | |||||||||||||||
Intangible assets, net | 933,338 | 933,338 | ||||||||||||||||
Goodwill | - | (2) | 4,514,206 | 4,514,206 | ||||||||||||||
Security deposits | 1,264,353 | 1,264,353 | ||||||||||||||||
Right of use assets-lease | 58,453,544 | 58,453,544 | ||||||||||||||||
Total assets | $ | 102,978,864 | $ | 10,297,941 | $ | 7,014,206 | $ | 120,291,011 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIENCY) | ||||||||||||||||||
Current liabilities: | ||||||||||||||||||
Accounts payable | $ | 12,357,874 | $ | 7,883 | $ | $ | 12,365,757 | |||||||||||
Deferred revenue | 1,307,122 | 834,793 | 2,141,915 | |||||||||||||||
Borrowings against lines of credit, current,net | 20,141,297 | 20,141,297 | ||||||||||||||||
Notes payable, current | 78,835 | 78,835 | ||||||||||||||||
Finance lease obligations, current | 89,810 | 89,810 | ||||||||||||||||
Accrued expenses | 1,328,104 | 26,309 | 1,354,413 | |||||||||||||||
Operating lease liabilities, current | 5,904,428 | 5,904,428 | ||||||||||||||||
Other payables, current | 2,896,469 | 3,165,753 | 6,062,222 | |||||||||||||||
Total current liabilities | 44,103,939 | 4,034,737 | - | 48,138,676 | ||||||||||||||
Notes payable, non-current | 41,635 | 41,635 | ||||||||||||||||
Finance lease obligations, non-current | 343,241 | 343,241 | ||||||||||||||||
Other payables, non-current | 78,701 | 78,701 | ||||||||||||||||
Long term operating lease liabilities | 59,267,987 | 59,267,987 | ||||||||||||||||
Total liabilities | 103,835,503 | 4,034,737 | - | 107,870,240 | ||||||||||||||
Commitments and contingencies | ||||||||||||||||||
Shareholders’ equity (deficiency) | ||||||||||||||||||
Preferred shares, $0.0001 par value | - | - | - | - | ||||||||||||||
Common stock, $0.0001 par value | 1,837 | (1) | 178 | 2,401 | ||||||||||||||
(2) | 385 | |||||||||||||||||
Additional paid-in capital | 21,689,953 | 11,773,356 | (1) | 2,499,822 | 34,966,799 | |||||||||||||
(2) | (11,773,356 | ) | ||||||||||||||||
(2) | 5,400,640 | |||||||||||||||||
(2) | 5,376,384 | |||||||||||||||||
Accumulated earnings(deficit) | (22,548,429 | ) | (5,510,153 | ) | (2) | 5,510,153 | (22,548,429 | ) | ||||||||||
Total shareholders’ quity (deficiency) | (856,639 | ) | 6,263,203 | 7,014,206 | 12,420,771 | |||||||||||||
Total liabilities and shareholders’ equity (deficiency) | $ | 102,978,863 | $ | 10,297,941 | $ | 7,014,206 | $ | 120,291,011 |
(1) | To record the issuance of 1,783,167 common stock in the amount of $2,500,000 at a purchase price of $1.402 on April 6, 2020. |
(2) | To record the acquisition of Hubei Rongentang Wine Co., Ltd. and Hubei Rongentang Herbal Wine Co., Ltd. with total consideration of approximately $10.8 million, of which, 3,852,372 common stock will be issued at a purchase price of $1.402 and 1,000 convertible preferred stock will be issued that can be convertible into 3,834,796 common stock upon approval of iFresh's shareholders, at a purchase price of the convertible value of $1.402 per common stock. |