Exhibit 99.5 

 

Unaudited Pro Forma Condensed Consolidated Financial Information

 

On January 26, 2021, Boston Therapeutics, Inc., a Delaware corporation (the “Company”), BTHE Acquisition Inc., a California corporation and wholly-owned subsidiary of the Company (“Merger Sub”), and Nanomix, Inc., a California corporation (“Nanomix”), entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which, among other matters, and subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, Merger Sub will merge with and into Nanomix, with Nanomix continuing as a wholly-owned subsidiary of the Company and the surviving corporation of the merger (the “Merger”). The Merger is intended to qualify for federal income tax purposes as a tax-free reorganization under the provisions of Section 368(a) of the Internal Revenue Code of 1986, as amended. The merger closed on June 4, 2021.

 

The unaudited pro forma condensed combined financial information has been prepared to illustrate the effect of the Business Combination and has been prepared for informational purposes only.

 

The historical financial statements have been adjusted in the unaudited pro forma condensed combined financial information to give pro forma effect to events that are (1) directly attributable to the Business Combination, (2) factually supportable, and (3) with respect to the statements of operations, expected to have a continuing impact on the results of the post-combination company. No pro forma adjustments were required to eliminate activities between the companies.

 

The pro forma basic and diluted earnings per share amounts presented in the unaudited pro forma condensed combined statements of operations are based upon the number of the post combination shares outstanding assuming the Business Combination occurred on January 1, 2020 and 2019.

 

 

UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET AS OF MARCH 31, 2021 AND DECEMBER 31, 2020

 

		Boston Therapeutics								Nanomix, Inc								Proforma Adjustment								Combined
		March 31,  2021				December, 31 2020				March 31, 2021				December, 31 2020				March 31,  2021				December, 31 2020				March 31,  2021				December, 31 2020
ASSETS
Currents assets:
Cash		$	46,964			$	7,402			$	66,490			$	15,098											$	113,454			$	22,500
Accounts receivable			-				-				-				821												0				821
Inventory, net			-				2,225				-				-												-				2,225
Prepaid expenses and other current assets			3,500				10,273				165,561				156,875												169,061				167,148
Total current assets			50,464				19,900				232,051				172,794												282,515				192,694
Deposit			-				-				60,000				60,000												60,000				60,000
Property and Equipment, net			-				-				61,666				65,612												61,666				65,612
Other long-term assets			-				-				178,348				232,065												178,348				232,065
Total assets		$	50,464			$	19,900			$	532,065			$	530,471											$	582,529			$	550,371
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable			312,580				530,907				1,239,977				898,463												1,552,557				1,429,370
Accounts payable – related party			84,262				282,302				-				-												84,262				282,302
Accrued expenses and other current liabilities			830,983				1,286,119				-				-												830,983				1,286,119
Accrued expenses			-				-				232,323				344,065												232,323				344,065
Accrued expenses – related party			114,297				1,397,409				62,500				50,000												176,797				1,447,409
Accrued interest			-				-				159,554				132,175				(155,918	)			(129,538	)(b)			3,636				2,637
Accrued interest, related party			-				-				2,138,175				1,810,232				(1,577,731	)			(1,299,788	)(b)			560,444				510,444
Deferred Revenues			-				-				188,741				188,741												188,741				188,741
Deferred revenue – related party			104,782				104,782				-				-												104,782				104,782
Convertible note payable			-				1,402,000				-				-												-				1,402,000
Convertible notes payable, current portion – in default			200,000				200,000				-				-												200,000				200,000
Notes payable – related parties, current portion – portions in default			497,821				2,783,429				-				-												497,821				2,783,429
Note payable marketing agreement			450,000				450,000				-				-												450,000				450,000
Derivative liability, current portion			15,282				2,763				-				-												15,282				2,763
Warrant liability			438,972				160,342				-				-												438,972				160,342
Other current liabilities			-				-				260,241				313,146												260,241				313,146
Total current liabilities			3,048,979				8,600,053				4,281,511				3,736,822				(1,733,649	)			(1,429,326	)			5,596,841				10,907,548
Notes payable – net of current portion			-				-				900,000				610,000				(900,000	)			(610,000	)(b)			-				-
Notes payable, related party – net of current portion			-				-				8,634,500				8,307,000				(7,634,500	)			(7,307,000	)(b)			1,000,000				1,000,000
Other long-term liabilities			-				-				402,154				402,154												402,154				402,154
Total Liabilities			3,048,979				8,600,053				14,218,165				13,055,976				(10,268,149	)			(9,346,326	)			6,998,995				12,309,702
Commitments and Contingencies
Preferred stock			-				-				40,070,108				40,070,108				(40,070,108	)			(40,070,108	)(a)			-				-
Preferred stock B			963,964				-				-				-												963,964				-
Preferred stock C			-				-												22,005,949				889,051	(d)			22,005,949				889,051
Stockholders’ deficit:
Preferred stock A							83																				-				83
Common stock			916,915				111,131				16				7				1,070				1,070	(a)			916,915				111,131
							-												954				869	(b)
																			(2,040	)			(1,946	)(d)
Additional paid-in capital			37,165,114				19,322,864				44,779,011				44,727,164				40,069,037				40,069,037	(a)			68,231,940				84,563,188
							-												10,267,194				9,345,458	(b)
							-												(42,044,508	)			(28,014,231	)(c)
																			(22,003,909	)			(887,105	)(d)
Accumulated deficit			(42,044,508	)			(28,014,231	)			(98,535,234	)			(97,322,784	)			42,044,508				28,014,231	(c)			(98,535,234	)			(97,322,784	)
Total stockholders’ deficit			(3,962,479	)			(8,580,153	)			(53,756,207	)			(52,595,613	)			28,332,307				48,527,383				(29,386,379	)			(12,648,383	)
Total liabilities and stockholders’ deficit		$	50,464			$	19,900			$	532,065			$	530,471			$	-			$	-			$	582,529			$	550,371

 

 

UNAUDITED PROFORMA CONDENSED COMBINED STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020

 

		Boston Therapeutics								Nanomix, Inc.								Proforma Adjustment								Combined
		3 Months Ended								3 Months Ended								3 Months Ended								3 Months Ended
		Mar. 31, 2021				Mar. 31, 2020				Mar. 31, 2021				Mar. 31, 2020				Mar. 31, 2021				Mar. 31, 2020				Mar. 31, 2021				Mar. 31, 2020
Revenue		$	-			$	3,093			$	141,778			$	23,136											$	141,778			$	26,229
Operating expenses:
Direct expenses			8,766				4,902				-				-												8,766				4,902
Research and development			2,500				-				608,771				760,342												611,271				760,342
Sales and marketing			308				541				-				-												308				541
General and administrative			574,955				131,361				388,871				437,131												963,826				568,492
Impairment of Intangibles			-				-				-				-												-				-
Total operating expenses			586,529				136,804				997,642				1,197,473												1,584,171				1,334,277
Operating loss			(586,529	)			(133,711	)			(855,864	)			(1,174,336	)			-				-				(1,442,393	)			(1,308,047	)
Other (expenses) income:
Interest expense			(21,740	)			(98,192	)			(28,644	)			(36,979	)											(50,384	)			(135,171	)
Interest expense, related, party			-				-				(327,943	)			(227,037	)											(327,943	)			(227,037	)
Change in fair value of derivative liability			(21,143	)			3,549				-				-												(21,143	)			3,549
Change in fair value of warrant liability			(278,630	)			101,993				-				-												(278,630	)			101,993
Loss on conversion of related party debt into common stock			(10,604,620	)			-				-				-												(10,604,620	)			-
Loss on conversion of trade payables into common stock			(993,715	)			-				-				-												(993,715	)			-
Loss on conversion of Series A preferred stock into common stock			(1,735,500	)			-				-				-												(1,735,500	)			-
Gain on settlement of accounts payable for Series B preferred stock			211,600				-				-				-												211,600				-
Total other (expenses) income			(13,443,748	)			7,350				(356,587	)			(264,016	)			-				-				(13,800,335	)			(256,666	)
Loss before provision for income taxes			(14,030,277	)			(126,361	)			(1,212,450	)			(1,438,352	)			-				-				(15,242,727	)			(1,564,713	)
Net loss		$	(14,030,277.00	)		$	(126,361.00	)		$	(1,212,450.36	)		$	(1,438,352.26	)		$	-			$	-			$	(15,242,727.36	)		$	(1,564,713.26	)
Net loss per share - basic and diluted			(0.02	)			(0.00	)			(0.99	)			(1.93	)											(0.02	)			(0.01	)
Weighted average shares outstanding basic and diluted			690,048,665				111,131,373				1,225,881				743,513												690,048,665				111,131,373

 

 

UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019

 

		Boston Therapeutics								Nanomix, Inc								Proforma Adjustment								Combined
		December 31,								December 31,								December 31,								December 31,
		2020				2019				2020				2019				2020				2019				2020				2019
ASSETS
Current assets:
Cash		$	7,402.00			$	6,701.00			$	15,098.11			$	590,433.53											$	22,500.11			$	597,134.53
Accounts receivable											821				-												821				-
Prepaid expenses and other current assets			10,273				12,662				156,875				4,446												167,148				17,108
Inventory, net			2,225				3,909				-				-												2,225				3,909
Total current assets			19,900				23,272				172,794				594,879				-				-				192,694				618,151
Deposit											60,000				20,000												60,000				20,000
Property and Equipment, net							509				65,612				50,521												65,612				51,030
Other long-term assets											232,065				424,852												232,065				424,852
Total assets		$	19,900			$	23,781			$	530,471			$	1,090,253			$	-			$	-			$	550,371			$	1,114,034
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable			530,907				458,175				898,463				134,141												1,429,370				592,316
Accounts payable–related party			282,302				152,302				-				-												282,302				152,302
Accrued expenses and other current liabilities			1,286,119				1,361,194				-				-												1,286,119				1,361,194
Accrued expenses											344,065				151,284												344,065				151,284
Accrued expenses–related party			1,397,409				1,097,974				50,000				37,500												1,447,409				1,135,474
Accrued interest											132,175				49,192				(129,538	)			(49,192)	(b)			2,637				-
Accrued interest, related party											1,810,232				733,754				(1,299,788	)			(426,643)	(b)			510,444				307,111
Deferred Revenues											188,741				176,102												188,741				176,102
Deferred revenue–related party			104,782				104,782				-				-												104,782				104,782
Convertible note payable			1,402,000				1,402,000				-				-												1,402,000				1,402,000
Convertible notes payable, current portion–in default			200,000				250,000				-				-												200,000				250,000
Notes payable–related parties, current portion–portions in default			2,783,429				1,948,429				-				-												2,783,429				1,948,429
Note payable marketing agreement			450,000				450,000				-				-												450,000				450,000
Derivative liability, current portion			2,763				9,451				-				-												2,763				9,451
Warrant liability			160,342				461,744				-				-												160,342				461,744
Other current liabilities											313,146				154,738												313,146				154,738
Total current liabilities			8,600,053				7,696,051				3,736,822				1,436,710				(1,429,326	)			(475,835	)			10,907,548				8,656,926
Notes payable–net of current portion											610,000				360,000				(610,000	)			(360,000	) (b)			-				-
Notes payable, related party–net of current portion											8,307,000				5,575,000				(7,307,000	)			(4,575,000	) (b)			1,000,000				1,000,000
Other long-term liabilities											402,154				313,146												402,154				313,146
Total Liabilities			8,600,053				7,696,051				13,055,976				7,684,856				(9,346,326	)			(5,410,835	)			12,309,702				9,970,073
Commitments and Contingencies
Preferred stock											40,070,108				40,070,108				(40,070,108	)			(40,070,108	) (a)			-				-
Preferred stock C																			889,051				1,778,102	(d)			889,051				1,778,102
Stockholders’ deficit:
Preferred stock A			83				83																				83				83
Common stock			111,131				111,131				7				7				1,070				1,070	(a)			111,131				111,131
																			869				503	(b)
																			(1,946	)			(1,581	) (d)
Additional paid-in capital			19,322,864				19,322,864				44,727,164				44,465,695				40,069,037				40,069,037	(a)			84,563,188				80,385,059
																			9,345,458				5,410,332	(b)
																			(28,014,231	)			(27,106,348	) (c)
																			(887,105	)			(1,776,521	) (d)
Accumulated deficit			(28,014,231	)			(27,106,348	)			(97,322,784	)			(91,130,414	)			28,014,231				27,106,348	(c)			(97,322,784	)			(91,130,414	)
Total stockholders’ deficit			(8,580,153	)			(7,672,270	)			(52,595,613	)			(46,664,712	)			48,527,383				43,702,841				(12,648,383	)			(10,634,141	)
Total liabilities and stockholders’ deficit		$	19,900			$	23,781			$	530,471			$	1,090,253			$	-			$	-			$	550,371			$	1,114,034

 

 

UNAUDITED PROFORMA CONDENSED COMBINED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2020 AND 2019

 

		Boston Therapeutics								Nanomix, Inc.								P roforma Adjustment								Combined
		12 Months Ended								12 Months Ended								12 Months Ended								12 Months Ended
		Dec. 31, 2020				Dec. 31, 2019				Dec. 31, 2020				Dec. 31, 2019				Dec. 31, 2020				Dec. 31,  2019				Dec. 31, 2020				Dec. 31, 2019
Revenue		$	9,336			$	16,329			$	513,244			$	392,422											$	522,580			$	408,751
Operating expenses:
Direct expenses			32,041				27,008				-				-												32,041				27,008
Research and development			180,908				1,710,943				4,184,820				3,765,203												4,365,728				5,476,146
Sales and marketing			898				791,232				-				-												898				791,232
General and administrative			581,423				980,381				1,234,784				1,331,593												1,816,207				2,311,974
Impairment of Intangibles							367,181				-				-												-				367,181
Total operating expenses			795,270				3,876,745				5,419,604				5,096,796												6,214,874				8,973,541
Operating loss			(785,934	)			(3,860,416	)			(4,906,359	)			(4,704,373	)											(5,692,293	)			(8,564,789	)
Other (expenses) income:
Interest income											6				47												6				47
Interest expense			(430,039	)			(342,516	)			(209,538	)			(200,110	)											(639,577	)			(542,626	)
Interest expense, related, party											(1,076,478	)			(619,147	)											(1,076,478	)			(619,147	)
Change in fair value of derivative liability			6,688				44,791				-				-												6,688				44,791
Change in fair value of warrant liability			301,402				464,062				-				-												301,402				464,062
Total other (expenses) income			(121,949	)			166,337				(1,286,011	)			(819,210	)											(1,407,960	)			(652,873	)
Loss before provision for income taxes			(907,883	)			(3,694,079	)			(6,192,370	)			(5,523,583	)											(7,100,253	)			(9,217,662	)
Net loss		$	(907,883.00	)		$	(3,694,079.00	)		$	(6,192,370.08	)		$	(5,523,582.92	)										$	(7,100,253.08	)		$	(9,217,661.92	)
Net loss per share - basic and diluted			(0.01	)			(0.03	)			(8.33	)			(7.43	)											(0.06	)			(0.08	)
Weighted average shares outstanding basic and diluted			111,131,373				111,076,124				743,513				743,513												111,131,373				111,076,124

 

 

Notes to Unaudited Pro Forma Condensed Consolidated Financial Information

 

Note 1 - Basis of Presentation

 

The unaudited pro forma condensed financial information was prepared pursuant to the rules and regulations of SEC Regulation S-X, and present the pro forma condensed financial balance sheet and results of operations of the combined companies based on the historical data of Boston Therapeutics and Nanomix.

 

The unaudited pro forma condensed financial information includes pro forma adjustments that are (i) directly attributable to the transaction, (ii) factually supportable, and (iii) with respect to the unaudited condensed pro forma statements of operations, expected to have a continuing impact on the results of operations of the combined company.

 

Note 2 – Pro Forma Adjustments

 

In the merger which closed on June 4, 2021, Boston Therapeutics (BT) issued 1,000,000 shares of Preferred C shares that convert into 80% ownership in the merged company.  The conversion into common shares will occur after approval by regulatory authorities of the reverse stock split. As Boston Therapeutics has minimal assets and operations, the merger was accounted for as a reverse recapitalization. The resulting unaudited pro forma condensed consolidated financial statements thus reflect the following:

 

The issuance of Preferred C shares in exchange for :

 

●

All Nanomix common shares

 

●

All Nanomix preferred shares as converted to common

 

●

All Nanomix Convertible Notes and Accrued interest as converted to common

 

●

Assumption of all outstanding Nanomix stock options and warrants

 

The Secured $1M Note payable and accrued interest to a related party was not converted and is an obligation of the merged company. 

 

The adjustments included in the unaudited pro forma condensed combined balance sheet as of March 31, 2021 and December 31, 2020 and in the unaudited pro forma condensed combined balance sheet as of December 31, 2020 and 2019 are as follows:

 

(a)

Nanomix preferred stock conversion into common stock:

 

Convertible Preferred Stock		Preferred stock shares Outstanding				Issue price				Preferred stock Amount				Conversion Ratio				Common Stock Shares Outstanding				Common Stock Amount
Series AA:			1,045,650				1.1500			$	1,202,498				1.2220				1,277,784			$	13
Series BB:			22,120,639				0.0811				1,794,205				1.0000				22,120,639				221
Series CC:			13,761,489				0.4618				6,354,368				1.0823				14,894,060				149
Series DD:			33,790,975				0.6197				20,940,605				1.1377				38,443,992				384
Series EE-1:			14,030,343				0.3228				4,528,434				1.0000				14,030,343				140
Series EE-2:			16,265,953				0.3228				5,249,999				1.0000				16,265,953				163
Total Preferred Stock:			101,015,049							$	40,070,108								107,032,771			$	1,070

 

 

(b)

Nanomix Convertible Notes and accrued interest conversion into common stock:

 

		As of December 31,				As of December 31,				As of March 31,
		2019				2020				2021
Pricipal Amount		$	4,935,000			$	7,917,000			$	8,534,500
Accrued Interest		$	475,835			$	1,429,326			$	1,733,649
Total		$	5,410,835			$	9,346,326			$	10,268,149
Conversion rate			0.10759				0.10759				0.10759
Shares on Conv.			50,291,244				86,869,843				95,437,760
Common Stock Amount		$	503			$	869			$	954
Additional paid-in capital		$	5,410,332			$	9,345,458			$	10,267,194

 

(c)

Boston Therapeutics accumulated deficit elimination

 

(d)

Issuance of BTHE Preferred C shares for exchange 80% of BTHE stock to 100% of Nanomix common stock:

 

		As of December 31,				As of December 31,				As of March 31,
		2019				2020				2021
Common stock shares outstanding			111,131,373				111,131,373				916,914,554
Market price per share		$	0.02			$	0.01			$	0.03
Market capitalization		$	2,222,627			$	1,111,314			$	27,507,437
Nanomix 80% share		$	1,778,102			$	889,051			$	22,005,949

 

Note 3 – Subsequent Financial Transaction

 

Post merger, the combined company entered into a Convertible Secured Note offering that closed on June 25, 2021.  This was a financing of the merged companies and a separate transaction from the merger. As a result of post-merger split, after approval by the regulatory authorities of the 173:1 reverse split, there are 46,188,898 shares of common stock par value $0.01 per share.

 

 

7