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)

(210,920

)(d)

1,848,955

Other Assets

67,431

146,359

213,790

TOTAL ASSETS

$

9,040,313

$

1,026,042

$

9,505,893

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: 120,779,442 shares issued and outstanding at September 30, 2012

120,779

—

120,779

Additional paid-in-capital

9,692,871

128,210

(128,210

)

(a)

9,692,871

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)

(210,920

)(d)

(2,553,863

)

Total Shareholders' Equity

6,879,116

593,866

7,165,287

Non-Controlling Interest

—

—

2,909

(b)

2,909

Total Equity

6,879,116

593,866

7,168,196

TOTAL LIABILITIES AND EQUITY

$

9,040,313

$

1,026,042

—

—

—

$

9,505,893

DS Healthcare

Group, Inc.

(Consolidated)

DS

Laboratories,

S.A. DE C.V.

Eliminations

ProForma

Consolidated

Statement of

Operations

Net Revenues

$

6,643,770

$

795,832

(559,674

)

(a)

$

6,879,928

Cost of Goods Sold

3,181,103

568,290

(559,674

)

(a)

3,189,719

Gross Profit

3,462,667

227,542

3,690,209

Operating Costs and Expenses:

Selling and marketing

1,972,913

—

1,972,913

General and administrative

2,169,036

209,413

210,920

(b)

2,589,369

Total operating costs and expenses

4,141,949

209,413

4,562,282

Operating Income (Loss)

(679,282

)

18,129

(872,073

)

Other Income

(10,789

)

(13,900

)

(24,689

)

Net income (loss) before income tax

(690,071

)

4,229

(847,384

)

Provision for income tax

—

—

Net Income (Loss)

(690,071

)

4,229

(847,384

)

Net Income (Loss) Attributable to Non-Controlling Interest

$

(2,292

)

$

42

$

(2,250

)

Net Income (Loss) Attributable to Shareholders of Divine Skin, Inc.

$

(687,779

)

$

4,187

$

(845,134

)

Basic and Diluted Earnings per Share:

Weighted average shares

99,508,214

99,508,214

Earnings per share

$

(0.0069

)

$

(0.0085

)

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

210,920

(b)

3,460,479

Total operating costs and expenses

5,146,187

639,569

5,996,676

Operating Income (Loss)

(853,723

)

278,853

(785,790

)

Other Income

4,937

12,036

16,973

Net income (loss) before income tax

(848,786

)

290,889

(768,817

)

Provision for income tax

—

—

Net Income (Loss)

(848,786

)

290,889

(768,817

)

Net Income (Loss) Attributable to Non-Controlling Interest

$

—

$

2,909

$

2,909

Net Income (Loss) Attributable to Shareholders of Divine Skin, Inc.

$

(848,786

)

$

287,980

$

(765,908

)

Basic and Diluted Earnings per Share:

Weighted average shares

100,611,200

100,611,200

Earnings per share

$

(0.0084

)

$

(0.0076

)