Attached files
Exhibit 99.2
Intellicell BioSciences Inc. and Subsidiary
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UNAUDITED PRO FORMA CONDENSED COMBINED
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BALANCE SHEET
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As of March 31, 2011
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Historical
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IntelliCell BioSciences Inc
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Media Exchange Group Inc.
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Pro Forma Adjustments Merger
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Pro Forma Adjustments Spin Off
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Pro Forma Combined
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Current assets:
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Cash
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$ | 194,227 | $ | - | - | - | $ | 194,227 | ||||||||||||||||||||
Accounts receivable
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10,200 | - | - | - | 10,200 | |||||||||||||||||||||||
Prepaid Expenses
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12,561 | - | - | - | 12,561 | |||||||||||||||||||||||
Total current assets
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216,988 | - | 216,988 | |||||||||||||||||||||||||
Property, plant and equipment - net
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68,792 | - | - | - | 68,792 | |||||||||||||||||||||||
$ | 285,780 | $ | - | $ | 285,780 | |||||||||||||||||||||||
Current liabilities:
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Convertible debentures
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$ | 161,290 | $ | - | - | - | $ | 161,290 | ||||||||||||||||||||
Notes payable, related parties
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- | 652,983 | (128,047 | ) | (1 | ) | (524,936 | ) | (7 | ) | - | |||||||||||||||||
Notes payable
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- | 2,540,510 | (222,794 | ) | (1 | ),(5),(4) | (1,192,921 | ) | (7 | ) | 1,124,795 | |||||||||||||||||
Accounts payable and accrued expenses
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104,465 | 438,741 | (228,414 | ) | (1 | ),(4) | - | 314,792 | ||||||||||||||||||||
Deposits
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45,000 | - | - | - | 45,000 | |||||||||||||||||||||||
Derivative liabilities
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48,000 | 311,500 | (311,500 | ) | (3 | ) | - | 48,000 | ||||||||||||||||||||
Accrued compensation
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235,432 | 1,481,551 | (1,481,551 | ) | (1 | ),(2) | - | 235,432 | ||||||||||||||||||||
Accrued liabilities , related parties
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281,000 | 21,003 | 302,003 | |||||||||||||||||||||||||
Total current liabilities
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875,187 | 5,446,288 | 2,231,312 | |||||||||||||||||||||||||
Stockholders’ deficit :
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Preferred Stock -Series A
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- | 1,500 | (1,500 | ) | (3 | ) | - | - | ||||||||||||||||||||
Preferred Stock -Series B
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- | - | 20,521 | (6 | ) | 20,521 | ||||||||||||||||||||||
Preferred Stock -Series C
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- | - | 12,123 | (1 | ) | 12,123 | ||||||||||||||||||||||
Common stock
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18,551 | 499 | 1,263 | (4 | ),(5),(6) | - | 20,313 | |||||||||||||||||||||
Additional paid in capital
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1,029,239 | 16,792,338 | 2,610,400 | (1 | ),(3),(6) | 20,431,976 | ||||||||||||||||||||||
Accumulated deficit
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(1,637,197 | ) | (22,240,625 | ) | (270,500 | ) | (2 | ),(5) | 1,717,857 | (7 | ) | (22,430,465 | ) | |||||||||||||||
Total stockholders’ deficit
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(589,407 | ) | (5,446,288 | ) | (1,945,532 | ) | ||||||||||||||||||||||
$ | 285,780 | $ | - | $ | - | $ | - | $ | 285,780 | |||||||||||||||||||
See accompanying notes to the unaudited pro forma condensed combined balance sheet and statement of loss.
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1
Intellicell BioSciences Inc. and Subsidiary
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UNAUDITED PRO FORMA CONDENSED COMBINED
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STATEMENTS OF LOSS
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For the three months ended March 31, 2011
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Historical
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IntelliCell BioSciences Inc
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Media Exchange Group Inc.
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Pro Forma Adjustments Merger
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Pro Forma Adjustments Spin Off
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Pro Forma Combined
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Revenues
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$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||
Cost of goods sold
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- | - | - | - | - | |||||||||||||||||||||||
Gross margin
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- | - | - | |||||||||||||||||||||||||
Operating Expenses
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Research and development
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92,888 | - | - | - | 92,888 | |||||||||||||||||||||||
Selling, general and administrative
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1,080,031 | 448,026 | (230,000 | ) | (2 | ),(4) | - | 1,298,057 | ||||||||||||||||||||
1,172,919 | 448,026 | 1,390,945 | ||||||||||||||||||||||||||
Other income (expense)
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Change in fair value of warrant derivative liability
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(9,290 | ) | (59,695 | ) | 311,500 | (3 | ) | - | 242,515 | |||||||||||||||||||
Interest expense, related parties
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- | (48,322 | ) | - | (48,322 | ) | ||||||||||||||||||||||
Interest expense, net
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- | (296,326 | ) | (812,000 | ) | (5 | ) | - | (1,108,326 | ) | ||||||||||||||||||
(9,290 | ) | (404,343 | ) | (413,633 | ) | |||||||||||||||||||||||
Gain on disposal of business segment
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1,717,857 | (7 | ) | 1,717,857 | ||||||||||||||||||||||||
Loss before income taxes
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(1,182,209 | ) | (852,369 | ) | (86,721 | ) | ||||||||||||||||||||||
Provision for income taxes
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- | - | - | - | - | |||||||||||||||||||||||
- | ||||||||||||||||||||||||||||
Net loss
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$ | (1,182,209 | ) | $ | (852,369 | ) | $ | (270,500 | ) | $ | 1,717,857 | $ | (587,221 | ) | ||||||||||||||
Basic and diluted loss per common share
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$ | (1.71 | ) | $ | (0.03 | ) | ||||||||||||||||||||||
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Basic and diluted weighted average common shares outstanding
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498,921 | 17,238,399 | ||||||||||||||||||||||||||
See accompanying notes to the unaudited pro forma condensed combined balance sheet and statement of loss.
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2
Intellicell BioSciences Inc. and Subsidiary
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NOTES TO THE UNAUDITED PRO FORMA CONDENSED COMBINED
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BALANCE SHEET AND STATEMENT OF INCOME
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As of March 31, 2011
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Merger:
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(1)
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Record settlement agreements with the holders of an aggregate of $1,619,606 of indebtedness to the Company, comprised of accrued compensation in the amount of $1,201,551, promissory notes in the principal amount of $263,707 plus accrued interest of $9.398 less unamortized debt discounts of $83,264 and accrued expenses totaling $228,414 (the “Series C Debt”), which included $,1,201,551 of accrued compensation, $128,047 of notes payable held or made by affiliates of the Company, pursuant to which such persons agreed to settle and compromise such Series C Debt in exchange for the issuance of an aggregate of 12,123 shares of series C preferred stock. The table below summarizes these transactions:
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Principal
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Interest
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Discount
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Total
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Notes payable
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$ | 58,758 | $ | 3,036 | $ | - | $ | 61,794 | ||||||||
Notes payable, related parties
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204,949 | 6,362 | (83,264 | ) | 128,047 | |||||||||||
263,707 | 9,398 | (83,264 | ) | 189,841 | ||||||||||||
Accrued compensation
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1,201,551 | 1,201,551 | ||||||||||||||
Accrued expenses
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228,214 | - | - | 228,214 | ||||||||||||
$ | 1,693,472 | $ | 9,398 | $ | (83,264 | ) | $ | 1,619,606 |
(2)
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Record agreements with the holders of an aggregate of $280,000 of accrued compensation, pursuant to which such persons agreed to forgive all amounts owed to the Company.
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(3)
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A former controlling shareholder entered into a return to treasury agreement pursuant to which he agreed to return to the Company for cancellation all of shares of series A preferred stock of the Company that had previously been issued to him (150,000 shares). The Company then cancelled those shares at the closing of the Merger. The Company had recorded a derivative liability with a balance of $311,500 at March 31, 2011 related to its Series A preferred stock which was recognized as other income upon retirement of the series A preferred stock.
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(4)
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Record agreements with the holders of (i) an aggregate of $86,000 of notes and $50,000 in accrued expenses pursuant to which such persons agreed to settle and compromise such debt in exchange for the issuance of an aggregate of 262,500 shares of common stock.
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(5)
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Record the Company's agreement to amend $375,000 in notes payable pursuant to which the note holder agreed to amend such note to make it convertible into an aggregate of 187,500 shares of common stock of the Company (based upon a conversion price of $2.00 per share). In addition, the Company issued an aggregate of 1,000,000 shares of common stock pursuant to a settlement and compromise with a debt holder of the Company.
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(6)
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Issuance of an aggregate of 15,476,978 shares of common stock to the holders of an aggregate of 7,975,768 of IntelliCell’s common stock, and 20,521 shares of the Company’s series B preferred stock to Dr. Steven Victor, the principal shareholder of Intellicell, in exchange for an aggregate of 10,575,482 shares of IntelliCell’s common stock, in exchange for 100% of the issued and outstanding shares of Intellicell common stock based upon an effective exchange rate of 1.94 shares of the Company for each share of Intellicell common stock held. Each share of series B preferred stock shall be convertible into 1,000 shares of the Company’s common stock.
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Spinoff:
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(7)
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Sale all of the Company rights, title and interests to, and agreements relating to, its digital trading card business and platform as well as all other intangible assets of the business in exchange for Consorteum assuming an aggregate amount of $1,717,857 of indebtedness including $1,477,052 of principal, $250,695 of accrued interest and net of $9,890 in unamortized discount. Included in the foregoing is note to affiliated persons/companies totaling $524,935 inclusive of accrued interest of $74,935.
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3