Exhibit 99.3
REVIV3 PROCARE
PRO-FORMA FINANCIAL STATEMENTS
REVIV3 PROCARE
CONTENTS
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET
Reviv3 As Of May 31, 2022 | Axil As Of March 31, 2022 | Combined Historical | Proforma Adjustments | Combined Pro Forma | |||||||||||||||||
CURRENT ASSETS | |||||||||||||||||||||
Cash and cash equivalents | $ | 373,731 | $ | 2,198,924 | $ | 2,572,655 | $ | — | $ | 2,572,655 | |||||||||||
Accounts receivables | 86,765 | 185,762 | 272,527 | 272,527 | |||||||||||||||||
Inventory | 374,895 | 941,295 | 1,316,190 | 1,316,190 | |||||||||||||||||
Other current assets | — | 376,345 | 376,345 | 376,345 | |||||||||||||||||
TOTAL CURRENT ASSETS | 835,391 | 3,702,326 | 4,537,717 | 4,537,717 | |||||||||||||||||
Property, plant and equipment | 29,145 | 15,675 | 44,820 | 44,820 | |||||||||||||||||
Other assets | 100,860 | 13,750 | 114,610 | 114,610 | |||||||||||||||||
Investments | — | — | — | #1 | 4,007,480 | ||||||||||||||||
#2 | (4,007,480 | ) | — | ||||||||||||||||||
Goodwill and other intangible assets | — | — | — | #2 | 2,352,388 | 2,352,388 | |||||||||||||||
TOTAL ASSETS | $ | 965,396 | $ | 3,731,751 | $ | 4,697,147 | $ | 2,352,388 | $ | 7,049,535 | |||||||||||
CURRENT LIABILITIES | |||||||||||||||||||||
Accounts payable and accrued expenses | $ | 458,264 | $ | 733,712 | $ | 1,191,976 | $ | — | $ | 1,191,976 | |||||||||||
Payable to related party | 25,452 | — | 25,452 | 25,452 | |||||||||||||||||
Note payable | 159,600 | 21,819 | 181,419 | 181,419 | |||||||||||||||||
Other liabilities | 63,688 | 1,185,734 | 1,249,422 | 1,249,422 | |||||||||||||||||
TOTAL CURRENT LIABILITIES | 707,004 | 1,941,265 | 2,648,269 | — | 2,648,269 | ||||||||||||||||
Note payable | 2,200 | 135,394 | 137,594 | — | 137,594 | ||||||||||||||||
TOTAL LIABILITIES | 709,204 | 2,076,659 | 2,785,863 | — | 2,785,863 | ||||||||||||||||
STOCKHOLDERS' EQUITY (DEFICIT) | |||||||||||||||||||||
Common stock | 4,195 | 59,525 | 63,720 | #1 | 7,318 | ||||||||||||||||
#2 | (59,525 | ) | 11,513 | ||||||||||||||||||
Preferred stock | — | — | — | #1 | 25,000 | 25,000 | |||||||||||||||
Additional paid in capital | 5,450,117 | 5,354,534 | 10,804,651 | #1 | 3,975,162 | ||||||||||||||||
#2 | (5,354,534 | ) | 9,425,279 | ||||||||||||||||||
Accumulated deficit | (5,198,120 | ) | (3,758,967 | ) | (8,957,087 | ) | #2 | 3,758,967 | (5,198,120 | ) | |||||||||||
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) | 256,192 | 1,655,092 | 1,911,284 | 2,352,388 | 4,263,672 | ||||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 965,396 | $ | 3,731,751 | $ | 4,697,147 | $ | 2,352,388 | $ | 7,049,535 | |||||||||||
#1 Investment | 4,007,480 | ||||||||||||||||||||
Common stock | 7,318 | ||||||||||||||||||||
Preferred stock | 25,000 | ||||||||||||||||||||
APIC | 3,975,162 | ||||||||||||||||||||
(to record the common and preferred stock issued for acquisition) | |||||||||||||||||||||
#2 Common stock | 59,525 | ||||||||||||||||||||
APIC | 5,354,534 | ||||||||||||||||||||
Goodwill & other intangible assets | 2,352,388 | ||||||||||||||||||||
Accumulated deficit | 3,758,967 | ||||||||||||||||||||
Investment | 4,007,480 |
(See Note 3 adjustment (2) in the unaudited proforma footnotes)
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UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
Reviv3 For The Year Ended May 31, | Axil For The Year Ended March 31, | Combined | Proforma | ||||||||||||||||||
2022 | 2022 | Historical | Adjustments | Pro Forma | |||||||||||||||||
Revenue, net | $ | 2,336,257 | $ | 16,020,605 | $ | 18,356,862 | $ | — | $ | 18,356,862 | |||||||||||
Cost of sales | 757,104 | 4,876,554 | 5,633,658 | 5,633,658 | |||||||||||||||||
Gross profit | 1,579,153 | 11,144,051 | 12,723,204 | 12,723,204 | |||||||||||||||||
Marketing and selling expenses | 1,199,305 | 8,509,616 | 9,708,921 | 9,708,921 | |||||||||||||||||
Compensation and related taxes | 15,129 | 2,118,938 | 2,134,067 | 2,134,067 | |||||||||||||||||
Professional and consulting expenses | 232,774 | 2,822,624 | 3,055,398 | 3,055,398 | |||||||||||||||||
General and administrative | 249,899 | 855,678 | 1,105,577 | 1,105,577 | |||||||||||||||||
Total operating expenses | 1,697,107 | 14,306,856 | 16,003,963 | 16,003,963 | |||||||||||||||||
Loss from operations | (117,954 | ) | (3,162,805 | ) | (3,280,759 | ) | (3,280,759 | ) | |||||||||||||
Other income (expense), net | 28,499 | 133,389 | 161,888 | 161,888 | |||||||||||||||||
Loss before income tax provision | (89,455 | ) | (3,029,416 | ) | (3,118,871 | ) | (3,118,871 | ) | |||||||||||||
Income tax provision | — | — | — | — | |||||||||||||||||
Net loss | (89,455 | ) | (3,029,416 | ) | (3,118,871 | ) | (3,118,871 | ) | |||||||||||||
Earnings per share: | |||||||||||||||||||||
Basic | $ | (0.002 | ) | $ | (0.054 | ) | $ | (0.03 | ) | $ | — | $ | (0.03 | ) | |||||||
Diluted | $ | (0.002 | ) | $ | (0.054 | ) | $ | (0.03 | ) | $ | — | $ | (0.03 | ) | |||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||
Basic | 41,945,881 | 56,082,794 | 98,028,675 | #3 | 17,101,099 | 115,129,774 | |||||||||||||||
Diluted | 41,945,881 | 56,082,794 | 98,028,675 | #3 | 17,101,099 | 115,129,774 |
(See Note 3 adjustment (3) in the unaudited proforma footnotes)
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Notes to Unaudited Pro Forma Condensed Combined Financial Information
(Unaudited)
Note 1 — Basis of presentation
The unaudited pro forma condensed combined financial statements are based on Reviv3 Procare Company and Axil & Associated Brands Corp.’s unaudited historical consolidated financial statements as adjusted to give effect to the Asset Purchase Agreement. The unaudited pro forma combined statements of operations for the twelve months ended May 31, 2022 for Reviv3 Procare Company and twelve months ended March 31, 2022 for Axil & Associated Brands Corp., give effect to the Asset Purchase Agreement as if it had occurred on June 1, 2021. The unaudited pro forma combined balance sheets as of May 31, 2022 for Reviv3 Procare Company and as of March 31, 2022 for Axil & Associated Brands Corp. give effect to the Asset Purchase Agreement as if it had occurred on May 31, 2022.
Note 2 — Preliminary purchase price allocation
On June 16, 2022, Reviv3 Procare Company (the “Company”) and its wholly owned subsidiary Reviv3 Acquisition Corporation (the “Acquisition Sub”) completed the previously announced acquisition of both (i) the hearing protection business of Axil & Associated Brands Corp., a Delaware corporation (“Axil”), consisting of ear plugs and ear muffs, and (ii) Axil’s ear bud business (collectively the “Acquisition”) pursuant to the Asset Purchase Agreement, dated May 1, 2022, as amended on June 15, 2022 (the “Purchase Agreement”), by and among the Company, the Acquisition Sub, Axil and certain stockholders of Axil. The Acquisition was of substantially all of the business operations of Axil but did not include Axil’s hearing aid line of business, which Axil continues to operate.
The Acquisition purchase price consisted of (a) 73,183,893 shares of the Company’s common stock (the “Common Shares”), which Axil gave officers of the Company a proxy to vote on all matters that may be subject to stockholder approval for a period of two years following the closing of the Acquisition (the “Closing”), and (b) 250,000,000 shares of its non-voting Series A Preferred Stock (the “Preferred Shares”), which are convertible into shares of Company common stock on a one-to-one ratio after two years from the issuance date subject to beneficial owner limitations.
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REVIV3
Notes to Unaudited Pro Forma Condensed Combined Financial Information
(Unaudited)
Note 3 — Pro forma adjustments
The pro forma adjustments are based on our preliminary estimates of the fair value of the purchase price and assets acquired and liabilities assumed and other assumptions that are subject to change upon completion of valuations. The following adjustments have been reflected in the unaudited pro forma condensed combined financial information:
Adjustments to the unaudited pro forma condensed combined balance sheet and unaudited pro forma condensed combined statement of operations
(1) | Reflects the Shares of common stock and preferred stock of the Company, issued pursuant to the Asset Purchase Agreement. |
(2) | Reflects adjustment to the step up in basis of assets acquired and the elimination of the investment and initial Axil equity in consolidation. |
(3) | Reflects adjustment to common stock quantity to equal 41,945,881 outstanding at May 31, 2022 plus 73,183,893 shares issued to sellers. |
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