Schmitt Industries (SMIT) 8-K Schmitt Industries Completes Sale of 28TH Street Property

Exhibit 99.2

SCHMITT INDUSTRIES, INC.

Unaudited Pro Forma Consolidated Statements of Operations

	Three Months Ended August 31,						Pro Forma		Adjusted
	2021			2020			Adjustment		8/31/2021
Net sales	$	3,759,175		$	1,507,485		$	—	$	3,759,175
Cost of revenue		1,349,975			899,841			—		1,349,975
Gross profit		2,409,200			607,644			—		2,409,200
Operating expenses
General, administrative and sales		4,130,686			2,086,716			—		4,130,686
Transaction costs		—			125,167			—		—
Research & development		9,265			17,453			—		9,265
Total operating expenses		4,139,951			2,229,336			—		4,139,951
Operating loss		(1,730,751	)		(1,621,692	)		—		(1,730,751	)
Bargain purchase gain		—			1,271,615			—		—
Gain on Sale of Building		—			—			4,576,403		4,576,403
Forgiveness of PPP loans		588,534			—			—		588,534
Interest expense		(11,276	)		(2,511	)		—		(11,276	)
Other income (expense), net		112,029			98,580			—		112,029
Loss before income taxes		(1,041,464	)		(254,008	)		4,576,403		3,534,939
Income tax provision (benefit)		3,575			(404,667	)		—		3,575
Net income (loss)	$	(1,045,039	)	$	150,659		$	4,576,403	$	3,531,364
Net income (loss) per common share:
Basic	$	(0.28	)	$	0.04		$	1.21	$	0.93
Weighted average number of common shares, basic		3,780,439			3,763,752			3,780,439		3,780,439
Diluted	$	(0.28	)	$	0.04		$	1.21	$	0.93
Weighted average number of common shares, diluted		3,780,439			3,776,494			3,780,439		3,780,439

SCHMITT INDUSTRIES, INC.

Unaudited Pro Forma Consolidated Balance Sheet

							Pro Forma			Adjusted
	August 31, 2021			May 31, 2021			Adjustment			August 31, 2021
ASSETS
Current assets
Cash and cash equivalents	$	2,725,643		$	4,032,690		$	4,723,346		$	7,448,989
Accounts receivable, net		981,421			1,154,645			—			981,421
Inventories, net		1,823,337			1,553,310			—			1,823,337
Prepaid expenses		203,625			198,345			—			203,625
Other current assets		264,476			—			—			264,476
Income tax receivable		3,676			18,057						3,676
Total current assets		6,002,178			6,957,047			4,723,346			10,725,524
Leasehold assets		10,131,277			10,448,486						10,131,277
Property and equipment, net		2,831,052			2,824,017			(2,475	)		2,828,577
Property and equipment held for sale, net		174,847			174,847			(174,847	)		—
Leasehold, utilities, and ERP deposits		513,946			431,808			—			513,946
Other assets
Intangible assets, net		305,846			337,725			—			305,846
TOTAL ASSETS	$	19,959,146		$	21,173,930		$	4,546,024		$	24,505,170
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	604,219		$	583,750		$	—		$	604,219
Accrued commissions		49,806			60,614			—			49,806
Accrued payroll liabilities		616,168			527,608			—			616,168
Accrued liabilities		627,532			465,146			—			627,532
Customer deposits and prepayments		143,273			93,364			(30,379	)		112,894
Other accrued liabilities		738,650			694,590			—			738,650
Current portion of long-term lease liabilities		815,141			1,042,331			—			815,141
Current portion of long-term debt		670,517			541,691			—			670,517
Total current liabilities		4,265,306			4,009,094			(30,379	)		4,234,927
Long-term debt		2,800,505			3,253,389						2,800,505
Long-term leasehold liabilities		10,141,864			10,141,864						10,141,864
Total liabilities		17,207,675			17,404,347			(30,379	)		17,177,296
Stockholders' equity
Common stock, no par value, 20,000,000 shares authorized, 4,218,530 and 3,800,479 shares issued and outstanding at August 31, 2021, respectively; and 4,204,553 and 3,786,502 shares issued and outstanding at May 31, 2021, respectively		12,250,286			12,223,359			—			12,250,286
Accumulated deficit		(9,498,815	)		(8,453,776	)		4,576,403			(4,922,412	)
Total stockholders' equity		2,751,471			3,769,583			4,576,403			7,327,874
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	19,959,146		$	21,173,930		$	4,546,024		$	24,505,170