EX1A-15 ADD EXHB 6 ea126773ex16-2_gentech.htm PRO FORMAS FOR SINISTER LABS, LLC

Exhibit 16.2

 

The unaudited pro forma financial statements and related notes do not purport to represent what Sinister’s results of operations would actually have been if the transactions had in fact occurred on the dates discussed above. They also do not project or forecast Sinisters’s results of operations for any future date or period. The pro forma adjustments are based on available information and upon assumptions that Sinister Labs believes are reasonable; however, no assurance can be provided that actual results will not differ from the pro forma information and perhaps in material and adverse ways.

 

UNAUDITED PROFORMA CONDENSED BALANCE SHEET

YEAR ENDED OCTOBER 31, 2019

 

   Gentech
Holdings,
Inc.
   Sinister
Labs LLC
   Pro Forma
(1)Adjustments
   Pro Forma
Combined
 
Assets                
Current Assets                
Cash  $53   $28,899   $(28,899)  $53 
Accounts receivable   -    527,669    (488,635)   39,034 
Loan origination costs   1,645    -    -    1,645 
Other current assets   -    856,253    (645,287)   210,966 
Total current assets   1,698    1,412,821    (1,162,821)   251.968 
                     
Property and equipment, net   16,499    1,949    (1,949)   16,499 
                     
Total Assets  $18,197   $1,414,770   $(1,164,770)  $268.197 
                     
Liabilities and Stockholders Equity                    
                     
Current Liabilities                    
Judgement payable  $1,068,339   $-   $-   $1,068,339 
Accounts payable   22,404    403,491    (403,491)   22,404 
Accrued expenses, related parties   23,927    -    -    23,927 
Accrued expenses   186,905    -    -    186,905 
Accrued compensation   134,201    -    -    134,201 
Credit cards   -    31,379    (31,379)   - 
Loans payable, related parties   29,000    -    -    29,000 
Derivative liability   414,856    -    -    414,856 
Payroll liabilies   -    332    (332)   - 
Sales taxes payable   -    159    (159)   - 
Loans payable, related parties   35,979    -    -    35,979 
Loans payable   27,400    3,910,037    (3,910,037)   27,400 
Convertible debenture   1,143,146    -    -    1,143,146 
Total current liabilites   3,086,157    4,345,398    (4,345,398)   3,086,157 
                   - 
Stockholders’ Equity                  - 
Common stock   4,287    -    3,120    7,407 
Additional paid in capital   5,606,239    -    246,880    5,853,119 
Subscriptions payable   1,500    -    -    1,500 
Retained earnings   (8,679,986)   (2,930,628)   2,930,628    (8,679,986)
Total stockholders’ equity   (3,067,960)   (2,930,628)   3,180,628    (2,817,960)
                   - 
Total liabilities and Stockholder’s equity (Deficit)  $18,197   $1,414,770   $(1,164,770)  $268,197 

 

Notes to Unaudited Pro Forma Balance Sheets as of October 31, 2019

 

(1)Represents the acquisition of inventory of $210,963, accounts receivable of $39,034, customer lists, and certain other assets that were not assigned any value in a cash only transaction of $250,000. The cash was generated by issuing common stock from the company’s previous Regulation A. From May 1, 2020 through June 8, 2020, the Company issued 381,250,000 shares of common stock for $305,000 of proceeds. Fair value was assigned to the accounts receivable and inventory. GenTech Holdings, Inc did not assume any of Sinister Labs LLC liabilities in the transaction, and the adjustments to the Pro Forma balance sheet as of October 31, 2019 reflect the acquisition of the purchased assets only.

 

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UNAUDITED PROFORMA CONDENSED STATEMENT OF OPERATIONS

YEAR ENDED OCTOBER 31, 2019

 

   Gentech
Holdings,
Inc.
   Sinister
Labs LLC
   Pro Forma
Adjustments
   Pro Forma
Combined
 
Revenue  $-   $2,239,266   $                $2,239,266 
                   - 
Cost of goods sold        1,607,941         1,607,941 
                   - 
Gross profit        631,325         631,325 
                   - 
Operating expenses                  - 
Amazon Advertising Fees        787         787 
Bad Debt        171,931         171,931 
Charitable Contributions        -         - 
E-commerce Expenses        -         - 
CS Product Replacement        1,463         1,463 
D2C Shipping        114,418         114,418 
Digital Strategy        65,000         65,000 
Ecommerce Software        12,712         12,712 
Gateway Fees        120         120 
Merchant Fees        16,184         16,184 
Paid Advertising        114,477         114,477 
Website Expenses        330         330 
Domain Registration        77         77 
Shopify Application Fee        (3,330)        (3,330)
Shopify Shipping Fee        -         - 
Shopify Subscription Fees        2,664         2,664 
Shopify Transaction Fees        2,279         2,279 
Website Expenses - UK        187         187 
Total Website Expenses        2,207         2,207 
Total E-commerce Expenses        326,582         326,582 
Employee Benefits & Labor                  - 
Employee Benefits                  - 
Dental Insurance        1,210         1,210 
Health Insurance        13,796         13,796 
Vision Insurance        165         165 
Total Employee Benefits        15,171         15,171 
Reimbursement                  - 
Taxes        26,044         26,044 
Wages                  - 
Bonus        13,862         13,862 
Commission        39,340         39,340 
Holiday Pay        288         288 
Other Earnings        15,356         15,356 
Overtime                  - 
Paid time off        672         672 
Regular Pay        22,970         22,970 
Salary   120,050    244,487         364,537 
Vacation Pay                  - 
Total Wages   120,050    336,976         457,026 
Total Employee Benefits & Labor        378,191         378,191 
Facility Expenses                  - 
Janitorial        1,214         1,214 
Pest Control        80         80 
Rent Expense        17,178         17,178 
Repair & Maintenance        716         716 
TX Internet Expenses        508         508 
Utilities        1,877         1,877 
Total Facility Expenses        21,573         21,573 
Genreal & administrative   478,442              478,442 
Bank Fees        1,021         1,021 
Computer Maintenance        820         820 
G&A Software Expense        4,148         4,148 
Gifts        656         656 
Insurance Expense        11,064         11,064 
Interest Expense        64,430         64,430 
Inventory XFer Account        -         - 
Licenses, Registrations, & Permits        649         649 
Management Services        -         - 
Meals & Entertainment        1,345         1,345 
Office Supplies        3,262         3,262 
Payroll Processing Fees        650         650 
Postage        532         532 
Professional Fees   115,417    -         115,417 
Contract Consultant        6,376         6,376 
Legal & Professional Fees        38,369         38,369 
Total Professional Fees   115,417    44,745         160,162 
Recruiting Expenses                  - 
Taxes Paid        14         14 
Franchise Taxes        963         963 
Property Taxes        25,657         25,657 
Total Taxes Paid        26,634         26,634 
Total General/Administrative Expenses        159,956         159,956 
Marketing & Advertising                  - 
Athlete Sponsorship        4,800         4,800 
Clothing        176         176 
Demo Expense        3,250         3,250 
Event Sponsorships        -         - 
Influencer Commission        -         - 
Influencer Product        3,121         3,121 
Marketing Materials        47,275         47,275 
Marketing Other        2,799         2,799 
Print Advertising        562         562 
Promotional Product        33,856         33,856 
Sampling Expense        182         182 
Social Media Consulting        20,000         20,000 
Tradeshow Expenses        -         - 
Tradeshow Booth Fees/Materials        20,776         20,776 
Tradeshow Booth Workers        3,015         3,015 
Tradeshow Discounts & Giveaways                  - 
Tradeshow Internet        2,664         2,664 
Tradeshow M&E        4,467         4,467 
Tradeshow Shipping        4,718         4,718 
Tradeshow Travel        11,253         11,253 
Total Tradeshow Expenses        46,894         46,894 
Total Marketing & Advertising        162,914         162,914 
Payroll Expenses                  - 
Wages                  - 
Paid time off        -         - 
Total Wages        -         - 
Total Payroll Expenses        -         - 
Product Development        1,760         1,760 
Miscellaneous Development        12,163         12,163 
Packaging Design        18,359         18,359 
Product Registrations        315         315 
Research & Development        6,484         6,484 
Total Product Development        39,081         39,081 
Selling Expenses                  - 
Advertising/Promotional        8,004         8,004 
Amazon Fees        14,853         14,853 
Car Stock        6,821         6,821 
Distributor/Wholesale Freight        102,368         102,368 
EDI Expense        3,149         3,149 
Freight Damages        3,440         3,440 
Outside Sales Commission        585         585 
QuickBooks Payments Fees        1,088         1,088 
Registration Fees        51         51 
Store/Retail Product Promo        5,120         5,120 
Travel Expenses                  - 
Airfare        4,336         4,336 
Gas        5,663         5,663 
Hotel        2,419         2,419 
Taxi/Train/Bus/Shuttle        4,259         4,259 
Travel Internet        46         46 
Travel Meals        5,645         5,645 
Total Travel Expenses        22,367         22,367 
UPS Shipping        5,063         5,063 
Vendor Slotting, Compliance  & Other Fees        18,986         18,986 
Wholesale Software        750         750 
Total Selling Expenses        192,644         192,644 
Technology Expenses                  - 
Minor Hardware                  - 
Total Technology Expenses        -         - 
Warehouse & Logistics        -         - 
Inner Warehouse Shipping        4,797         4,797 
Logistics Consulting        4,100         4,100 
Warehouse Labor        5,730         5,730 
Warehouse Repairs        -         - 
Warehouse Storage - External        55,166         55,166 
Warehouse Supplies        14,903         14,903 
Total Warehouse & Logistics   -    84,696         84,696 
Total Expenses   713,909    1,538,354         2,252,263 
Net Operating Income   (713,909)   (907,029)        (1,620,938)
                   - 
Other Income/(Expenses)                  - 
Gain on settlement of debt   149,856    -         149,856 
Interest expense   (219,620)   -         (219,620)
Total Other Income/( Expenses)   (69,764)   -         (69,764)
Net Other Income/(Expenses)        -         - 
                   - 
Net loss  $(783,673)  $(907,029)  $    $(1,690,702)

 

 

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