Attached files

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EX-99.2 - UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - New Momentum Corp.ekkh_ex992.htm
EX-99.1 - CONSOLIDATED FINANCIAL STATEMENTS - New Momentum Corp.ekkh_ex991.htm
EX-10.1 - COOPERATION AGREEMENT - New Momentum Corp.ekkh_ex101.htm
EX-3.1 - CERTIFICATE OF AMENDMENT - New Momentum Corp.ekkh_ex31.htm
EX-2.1 - SHARE EXCHANGE AGREEMENT - New Momentum Corp.ekkh_ex21.htm
8-K - FORM 8-K - New Momentum Corp.ekkh_8k.htm

EXHIBIT 99.3

 

EASON EDUCATION KINGDOM HOLDINGS, INC.

PRO FORMA CONDENSED COMBINED BALANCE SHEET

AS OF MARCH 31, 2020

(Unaudited)

 

 

 

Historical

 

 

Historical

 

 

Pro Forma

 

 

 

 

Pro Forma

Condensed

 

 

 

EKKH

 

 

NHCL

 

 

Adjustments

 

 

Note

 

Combined

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$ -

 

 

$ 16,429

 

 

 

 

 

 

 

$ 16,429

 

Escrow accounts held by attorney

 

 

21,131

 

 

 

-

 

 

 

 

 

 

 

 

21,131

 

Accounts receivable

 

 

-

 

 

 

524

 

 

 

 

 

 

 

 

524

 

Deposits and prepayments

 

 

-

 

 

 

11,523

 

 

 

 

 

 

 

 

11,523

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current assets

 

 

21,131

 

 

 

28,476

 

 

 

 

 

 

 

 

49,607

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$ 21,131

 

 

$ 28,476

 

 

 

 

 

 

 

$ 49,607

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrued liabilities and other payables

 

$ 20,000

 

 

$ 967

 

 

 

 

 

 

 

$ 20,967

 

Amount due to a related company

 

 

-

 

 

 

25,624

 

 

 

 

 

 

 

 

25,624

 

Amounts due to directors

 

 

-

 

 

 

80,813

 

 

 

 

 

 

 

 

80,813

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 

 

20,000

 

 

 

107,404

 

 

 

 

 

 

 

 

127,404

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

20,000

 

 

 

107,404

 

 

 

 

 

 

 

 

127,404

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

-

 

Common stock

 

 

310,869

 

 

 

-

 

 

 

10,000

 

 

(b)

 

 

320,869

 

Additional paid-in capital

 

 

413,349

 

 

 

10,000

 

 

 

(423,349 )

 

(a),(b)

 

 

-

 

Accumulated other comprehensive income

 

 

-

 

 

 

(676 )

 

 

 

 

 

 

 

 

(676 )

(Accumulated deficit) retained earnings

 

 

(723,087 )

 

 

(88,252 )

 

 

413,349

 

 

(a),(b)

 

 

(397,990 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders’ equity

 

 

1,131

 

 

 

(78,928 )

 

 

 

 

 

 

 

 

(77,797 )

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$ 21,131

 

 

$ 28,476

 

 

 

 

 

 

 

 

$ 49,607

 

  

 
F-1

 

 

EASON EDUCATION KINGDOM HOLDINGS, INC.

PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATION

FOR THE THREE MONTHS ENDED MARCH 31, 2020

(Unaudited)

 

 

 

Historical

 

 

Historical

 

 

 Pro forma

 

Pro Forma

Condensed

 

 

 

EKKH

 

 

NHCL

 

 

Adjustment

 

Combined

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues, net

 

$ -

 

 

$ 20

 

 

 

 

$ 20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

-

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

-

 

 

 

20

 

 

 

 

 

20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

 

(8,573 )

 

 

(3,538 )

 

 

 

 

(12,111 )

Total operating expenses

 

 

(8,573 )

 

 

(3,538 )

 

 

 

 

(12,111 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(8,573 )

 

 

(3,518 )

 

 

 

 

(12,091 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subsidy income

 

 

-

 

 

 

10,295

 

 

 

 

 

10,295

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other income

 

 

-

 

 

 

10,295

 

 

 

 

 

10,295

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(LOSS) INCOME BEFORE INCOME TAXES

 

 

(8,573 )

 

 

6,777

 

 

 

 

 

(1,796 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

-

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET (LOSS) INCOME

 

$ (8,573 )

 

$ 6,777

 

 

 

 

$ (1,796 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per share

 

$ (0.00 )

 

 

 

 

 

 

 

$

#(0.00

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

310,868,500

 

 

 

 

 

 

 

 

 

320,868,500

 

 

# less than $0.001

 

 
F-2

 

 

EASON EDUCATION KINGDOM HOLDINGS, INC.

NOTES TO PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

AS OF MARCH 31, 2020

(Unaudited)

NOTE 1 – BACKGROUND

 

On June 29, 2020, Eason Education Kingdom Holdings, Inc. or the Company or EKKH completed the Share Exchange Agreement with NEMO Holding Company Limited and Subsidiary (collectively “NHCL”) (the “Share Exchange”) for its 100% equity interest.

 

The consideration of the Share Exchange totaled approximately 10,000,000 shares of the Company’s common stock, at the price of $0.6 equal to $6,000,000.

 

NOTE 2 – BASIS OF PRESENTATION

 

Because EKKH is a shell company, NHCL will comprise the ongoing operations of the combined entity and its senior management will serve as the senior management of the combined entity, NHCL is deemed to be the accounting acquirer for accounting purposes. The transaction will be treated as a recapitalization of EKKH. Accordingly, the consolidated assets, liabilities and results of operations of NHCL will become the historical financial statements of NHCL, and EKKH’s assets, liabilities and results of operations will be consolidated with NHCL beginning on the acquisition date. These pro forma financial statements are presented as a continuation of NHCL.

 

The pro forma balance sheet as of March 31, 2020 is based on the historical financial statements of EKKH after giving effect to NHCL’s acquisition of EKKH as a reverse merger using the acquisition method of accounting and applying the assumptions and adjustments described in the notes to the pro forma financial statements as if such acquisition had occurred as of March 31, 2020 for the balance sheet for pro forma financial statements purposes.

 

The pro forma financial statements have been prepared by management for illustrative purposes only and are not necessarily indicative of the financial position or results of operations in future periods. The pro forma adjustments are based on the preliminary information available at the time of the preparation of this document and assumptions that management believes are reasonable. The pro forma financial statements, including the notes thereto, are qualified in their entirety by reference to, and should be read in conjunction with EKKH’s historical financial statements included elsewhere on Form 10-Q for the quarter ended March 31, 2020, as Exhibits filed with SEC herewith.

 

The pro forma financial statements do not purport to represent what the results of operations or financial position of the combined entity would actually have been if the merger had in fact occurred on March 31, 2020, nor do they purport to project the results of operations or financial position of the combined entity for any future period or as of any date.

 

These pro forma financial statements do not give effect to any restructuring costs or to any potential cost savings or other operating efficiencies that could result from the merger between EKKH and NHCL since such amounts, if any, are not presently determinable.

 

 
F-3

 

 

NOTE 3 – PRO FORMA ADJUSTMENTS

 

The pro forma financial statements have been prepared as if the acquisition was completed on March 31, 2020 for combined balance sheet purpose and reflects the following pro forma adjustment(s):

 

(a)

To eliminate the accumulated deficits of EKKH incurred before the merger transaction to reflect the recapitalization of EKKH

 

 

 

Dr. Additional paid-in capital                                        413,349

Cr. Accumulated losses                                                 413,349

 

 

(b)

To reflect the issuance of 10,000,000 shares of common stock of EKKH for the acquisition of 100% of NHCL outstanding capital stock

 

 

 

Dr. Additional paid-in capital                                            10,000

Cr. Common stock                                                               10,000

 

NOTE 4 – PRO FORMA EARNINGS PER SHARE

 

The pro forma earnings per share, giving effect to the share exchange transaction has been computed as follows:

 

Net loss

 

$ (1,796 )

 

 

 

 

 

Net loss per share – Basic and diluted

 

$

#(0.00

)

 

 

 

 

 

Weighted average number of shares deemed issued and outstanding

 

 

320,868,500

 

 

# less than $0.001