DS Healthcare

Group, Inc.

(Consolidated)

DS

Laboratories,

S.A. DE C.V.

Acquisition

Adjustment

Acquisition

Adjustment

Elimination

ProForma

Consolidated

Balance

Sheet

ASSETS

Current Assets

Cash

$

1,284,343

$

12,137

$

1,296,480

Accounts receivable, net

1,888,453

357,647

(375,634

)

(c)

1,870,466

Inventory

2,174,784

135,239

2,310,023

Prepaid expenses and other current assets

57,940

58,899

—

(a)

116,839

Total Current Assets

5,405,520

563,922

5,593,808

Furniture and Equipment, net

53,017

63,656

116,673

Intangible Assets, net

630,316

—

1,701,297

(a)

2,331,613

Other Assets

15,138

180,061

195,199

TOTAL ASSETS

$

6,103,991

$

807,639

$

8,237,293

LIABILITIES AND EQUITY

Current Liabilities

Accounts payable and accrued expenses

$

1,021,313

$

460,063

(375,634

)

(c)

$

1,105,742

Client facility

—

—

—

Other current liabilities

77,432

48,873

126,305

TOTAL LIABILITIES

1,098,745

508,936

1,232,047

COMMITMENTS AND CONTINGENCIES

Equity

Preferred stock, $0.001 par value, 30 million shares authorized:

10,000,000 shares issued and outstanding at December 31, 2011

10,000

—

10,000

Common stock, $0.001 par value, 300 million shares authorized:

10,502,961 shares issued and outstanding at December 31, 2011

10,503

—

—

10,503

Additional paid-in-capital

6,606,668

118,300

1,881,700

(a)

—

8,606,668

Legal reserve

—

—

(a)

—

Stock subscription

(100,000

)

—

—

(a)

(100,000

)

Retained earnings (accumulated deficit)

(1,506,893

)

180,403

(180,403

)

(a)

(2,179

)

(b)

(1,509,072

)

Total Shareholders' Equity

5,020,278

298,703

7,018,099

Non-Controlling Interest

(15,032

)

—

2,179

(b)

(12,853

)

Total Equity

5,005,246

298,703

7,005,246

TOTAL LIABILITIES AND EQUITY

$

6,103,991

$

807,639

—

—

—

$

8,237,293

DS Healthcare

Group, Inc.

(Consolidated)

DS

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)

2,059,875

Other Assets

67,431

146,359

213,790

TOTAL ASSETS

$

9,040,313

$

1,026,042

$

9,716,813

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)

(2,342,943

)

Total Shareholders' Equity

6,879,116

593,866

7,376,207

Non-Controlling Interest

—

—

2,909

(b)

2,909

Total Equity

6,879,116

593,866

7,379,116

—

TOTAL LIABILITIES AND EQUITY

$

9,040,313

$

1,026,042

—

—

—

$

9,716,813

DS Healthcare

Group, Inc.

(Consolidated)

DS

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

)

DS Healthcare

Group, Inc.

(Consolidated)

DS

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

3,249,559

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

)