DS HEALTHCARE GROUP, INC. - FORM 8-K/A - EX-99.2 - PROFORMA FINANCIALS

Attached files

file	filename
8-K/A - CURRENT REPORT - DS HEALTHCARE GROUP, INC.	dskx_8k.htm
EX-99.1 - FINANCIAL STATEMENTS - DS HEALTHCARE GROUP, INC.	dskx_99z1.htm

EXHIBIT 99.2

DS Healthcare Group, Inc.

Pro-Forma Consolidated Balance Sheet

September 30, 2012


	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			249,296												3,170,017
Prepaid expenses and other current assets		1,766,397			203,550		(1,500,000	)	(a)								469,947
Total Current Assets		8,207,414			915,931												7,367,669
																	—
Furniture and Equipment, net		111,727			110,112												221,839
Intangible Assets, net		653,741			—		1,482,227		(a)	(492,147	)(d)						1,643,821
Other Assets		67,431			—												67,431
TOTAL ASSETS	$	9,040,313		$	1,026,043											$	9,300,760

LIABILITIES AND EQUITY

Current Liabilities
Accounts payable and accrued expenses	$	1,432,191		$	374,192								(255,676	)	(c)	$	1,550,707
Client facility		602,298			—												602,298
Taxes payable		—			7,718												7,718
Deferred income taxes		—			76,871												76,871
Other current liabilities		126,708			49,489												176,197
TOTAL LIABILITIES		2,161,197			508,270												2,413,791

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			118,300		(118,300	)	(a)								9,692,871
Legal reserve					12,130		(12,130	)	(a)								—
Stock subscription		(600,000	)		—		500,000		(a)								(100,000	)
Other comprehensive income		—			9,910		(9,910	)	(a)								—
Retained earnings (accumulated deficit)		(2,340,034	)		377,433		(377,433	)	(a)	(492,147	)(d)						(2,832,181	)
Total Shareholders' Equity		6,879,116			517,773												6,886,969
Non-Controlling Interest		—			—					2,140	(b)						2,140
Total Equity		6,879,116			517,773												6,884,829
TOTAL LIABILITIES AND EQUITY	$	9,040,313		$	1,026,043		—			—			—			$	9,300,760

————————

(a)

To reclass initial purchase price of $2,000,000, record intangible asset associated with customer list and reverse equity for subsidiary purchased.

(b)

To reflect 1% noncontrolling interest.

(c)

To record intercompany eliminations.

(d)

To record amortization of the customer list from January 1, 2011 through September 30, 2012 based on a 5 year amortization period.

PF-1

DS Healthcare Group, Inc.

Pro-Forma Consolidated Statement of Operations

For the year ended December 31, 2011


	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		(559,674	)	(a)	$	10,258,406

Cost of Goods Sold		4,751,961			547,067		(559,674	)	(a)		4,739,354

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		281,227		(b)		3,690,008

Total operating costs and expenses		5,914,470			350,793						6,546,490

Operating Income (Loss)		(993,570	)		247,359						(1,027,438	)

Other Income (Expense)		12,678			16,771						(4,093)

Net income (loss) before income tax		(980,892	)		230,588						(1,031,531	)

Provision for income tax		—			46,118						46,118

Net Income (Loss)		(980,892	)		184,470						(1,077,649	)

Net Income (Loss) Attributable to Non-Controlling Interest	$	(2,292	)	$	1,845					$	(447	)
Net Income (Loss) Attributable to Shareholders of DS Healthcare Group, Inc.	$	(978,600	)	$	182,625					$	(1077,202	)

Basic and Diluted Earnings per Share:
Weighted average shares		100,611,200									100,611,200
Earnings per share	$	(0.01	)							$	(0.01	)

————————

(a)

To eliminate intercompany sales and purchases.

(b)

To record twelve months amortization of the customer list based upon a 5 year amortization period.

PF-2

DS Healthcare Group, Inc.

Pro-Forma Consolidated Statement of Operations

For the nine months ended September 30, 2012


	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			12,035						16,972

Net income (loss) before income tax		(848,786	)		290,888						(768,818	)

Provision for income tax		—			76,871						76,871

Net Income (Loss)		(848,786	)		214,017						(845,689	)

Net Income (Loss) Attributable to Non-Controlling Interest	$	—		$	2,140					$	2,140
Net Income (Loss) Attributable to Shareholders of DS Healthcare Group, Inc.	$	(848,786	)	$	211,877					$	(843,549	)

Basic and Diluted Earnings per Share:
Weighted average shares		107,784,752									107,784,752
Earnings per share	$	(0.01	)							$	(0.01	)

————————

(a)

To eliminate intercompany sales and purchases.

(b)

To record nine months amortization of the customer list based on a 5 year amortization period.

PF-3

DS HEALTHCARE GROUP, INC. - FORM 8-K/A - EX-99.2 - PROFORMA FINANCIALS - July 25, 2013

Attached files

DS HEALTHCARE GROUP, INC. Reports