NEWBRIDGE GLOBAL VENTURES, INC. AND SUBSIDIARIES

 

UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION

 

 

The following unaudited pro forma combined financial information of NewBridge Global Ventures, Inc. and Subsidiaries, (“Company”) is presented to reflect the acquisition (“Acquisition”) by the Company of all the issued and outstanding shares of NewBridge, the acquiree. Due to the relative size of the Consortium compared to the Company prior to the Closing, the July Acquisitions were considered a reverse acquisition and the Consortium is the acquiror for accounting purposes. The Acquisition was consummated on July 14, 2018. The unaudited pro forma combined balance sheet of the Company at June 30, 2018 reflects the effects of the Acquisition as if it occurred on that date. The unaudited pro forma combined statements of operations for the six months ended June 30, 2018 and the year ended December 31, 2017 reflect the effects of the Acquisition as if it occurred at the beginning of each period presented. The unaudited pro forma financial information is based on the historical consolidated financial statements of the Company and NewBridge. The historical financial information of NewBridge includes the financial information of its subsidiary Elevated Education, Inc. The combined historical information of both entities is necessary to provide a fair presentation of the historical operations that have been acquired by the Company.

 

Such unaudited pro forma combined financial information should be read in conjunction with the historical consolidated financial statements of the Company for the year ended December 31, 2017, including the notes thereto, as presented herein, with this 8-KA. In addition, the unaudited pro forma combined financial statements are based upon pro forma allocations of the purchase price of NewBridge based upon the fair value of the assets and liabilities acquired in connection with the Acquisition. Management believes that all material adjustments necessary to reflect the effect of the Acquisition have been made to the unaudited pro forma combined financial information.

 

The unaudited pro forma combined financial information is for informational purposes only and is not necessarily indicative of the results of operations of the Company that would have occurred if the acquisition of NewBridge had been completed on the dates indicated, nor does it purport to represent the Company’s results of operations as of any future date or for any future period.

 


PF-1


 

 

NEWBRIDGE GLOBAL VENTURES, INC. AND SUBSIDIARIES

PRO FORMA CONDENSED COMBINED BALANCE SHEETS

AS OF JUNE 30, 2018

(Unaudited)

 

 

 

 

 

 

ProForma

 

 

Historical

 

Historical

 

Pro Forma

 

 

 

Condensed

 

 

NBGV

 

Consortium

 

Adjustments

 

 

 

Combined

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$20,002 

 

$7,207 

 

 

 

 

 

$27,209 

Prepaid expenses and other current assets

 

194,204 

 

- 

 

 

 

 

 

194,204 

Total current assets

 

214,206 

 

7,207 

 

 

 

 

 

221,413 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

- 

 

2,287,416 

 

 

 

 

 

2,287,416 

Goodwill

 

- 

 

- 

 

9,245,953

 

(a)

 

9,245,953 

Total Assets

 

$214,206 

 

$2,294,623 

 

 

 

 

 

$11,754,782 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$76,073  

 

$ 

 

 

 

 

 

$76,073  

Accrued liabilities

 

137,364  

 

 

 

 

 

 

 

137,364  

Related party payables

 

30,700  

 

 

 

 

 

 

 

30,700  

Current portion of note payable

 

 

 

189,242  

 

 

 

 

 

189,242  

Current portion of convertible notes payable, net of discount

 

27,778  

 

12,819  

 

 

 

 

 

40,597  

Derivative liabilities

 

273,515  

 

 

 

 

 

 

 

273,515  

Total current liabilities

 

545,430  

 

202,061  

 

 

 

 

 

747,491  

 

 

 

 

 

 

 

 

 

 

 

Note payble, net of current portion

 

 

 

343,732  

 

 

 

 

 

343,732  

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities

 

$545,430  

 

$545,793  

 

 

 

 

 

$1,091,223  

 

 

 

 

 

 

 

 

 

 

 

Commitments and Contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

 

 

 

 

Common stock

 

988  

 

 

 

           3,100

 

(a)

 

         4,088 

Members' capital

 

 

 

2,037,063  

 

(2,037,063)

 

(a)

 

 

Additional paid-in capital

 

9,856,646  

 

 

 

1,091,058 

 

(a)

 

10,947,704  

Accumulated deficit

 

(10,188,858) 

 

(288,233) 

 

10,188,858 

 

(a)

 

(288,233) 

Total stockholders' equity (deficit)

 

(331,224) 

 

1,748,830  

 

 

 

 

 

10,663,559  

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Stockholders' Equity (Deficit)

 

$214,206  

 

$2,294,623  

 

 

 

 

 

$11,754,782  


PF-2


 

 

NEWBRIDGE GLOBAL VENTURES, INC. AND SUBSIDIARIES

PRO FORMA CONDENSED COMBINED STATEMENTS OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2018

(Unaudited)

 

 

 

 

 

 

 

ProForma

 

Historical

 

Historical

 

Pro Forma

 

Condensed

 

NBGV

 

Consortium

 

Adjustments

 

Combined

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

Rental income

$ 

 

$7,200 

 

 

 

$7,200  

Revenue from related party

19,000  

 

- 

 

 

 

19,000  

Total Revenue

19,000  

 

7,200 

 

 

 

26,200  

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

Selling, general and administrative

1,419,453  

 

164,399 

 

 

 

1,583,852  

        Total Operating Expenses

1,419,453  

 

164,399 

 

 

 

1,583,852  

 

 

 

 

 

 

 

 

Loss from Operations

(1,400,453) 

 

(157,199) 

 

 

 

(1,557,652) 

 

 

 

 

 

 

 

 

Other Income (Expense):

 

 

 

 

 

 

 

Interest expense

(27,778) 

 

(8,781) 

 

 

 

(36,559) 

Loss on derivative

(148,515) 

 

- 

 

 

 

(148,515) 

Total Other Income (Expense)

(176,293) 

 

(8,781) 

 

 

 

(185,074) 

 

 

 

 

 

 

 

 

Net Loss

$(1,576,746) 

 

$(165,980) 

 

 

 

$(1,742,726) 

 

 

 

 

 

 

 

 

Net loss per common share - basic and diluted

(0.23) 

 

 

 

 

 

(0.05) 

 

 

 

 

 

 

 

 

Weighted average common shares

 

 

 

 

 

 

 

outstanding - basic and diluted

6,782,809  

 

 

 

31,000,000  

(b)

37,782,809  


PF-3


 

 

NEWBRIDGE GLOBAL VENTURES, INC. AND SUBSIDIARIES

PRO FORMA CONDENSED COMBINED STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ProForma

 

Historical

 

Historical

 

Pro Forma

 

Condensed

 

NBGV

 

Consortium

 

Adjustments

 

Combined

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

Rental income

$ 

 

$29,200  

 

 

 

$29,200  

Total Revenue

 

 

29,200  

 

 

 

29,200  

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

Selling, general and administrative

1,701,096  

 

96,728  

 

 

 

1,797,824  

        Total Operating Expenses

1,701,096  

 

96,728  

 

 

 

1,797,824  

 

 

 

 

 

 

 

 

Loss from Operations

(1,701,096) 

 

(67,528) 

 

 

 

(1,768,624) 

 

 

 

 

 

 

 

 

Other Income (Expense):

 

 

 

 

 

 

 

Interest expense

(179,880) 

 

(13,298) 

 

 

 

(193,178) 

Loss on debt settlement

(417,090) 

 

 

 

 

 

(417,090) 

Gain on derivative

40,972  

 

 

 

 

 

40,972  

Total Other Income (Expense)

(555,998) 

 

(13,298) 

 

 

 

(569,296) 

 

 

 

 

 

 

 

 

Net loss from continuing operations

(2,257,094) 

 

(80,826) 

 

 

 

(2,337,920) 

Discontinued operations

 

 

 

 

 

 

 

Loss on sale of discontinued operations

(5,883) 

 

 

 

 

 

(5,883) 

Loss from discontinued operations

(1,938,134) 

 

 

 

 

 

(1,938,134) 

Net loss from discontinued operations

(1,944,017) 

 

 

 

 

 

(1,944,017) 

 

 

 

 

 

 

 

 

Net loss

$(4,201,111) 

 

$(80,826) 

 

 

 

$(4,281,937) 

 

 

 

 

 

 

 

 

Net loss per common share - basic and diluted:

 

 

 

 

 

 

 

Continuing operations

(1.42) 

 

 

 

 

 

(0.07) 

Discontinued operations

(1.23) 

 

 

 

 

 

(0.06) 

Total

$(2.65) 

 

 

 

 

 

$(0.13) 

 

 

 

 

 

 

 

 

Weighted average common shares

 

 

 

 

 

 

 

outstanding - basic and diluted

1,584,321  

 

 

 

31,000,000 

(b)

32,584,321  


PF-4


 

 

NEWBRIDGE GLOBAL VENTURES, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED PRO FORMA FINANCIAL INFORMATION

 

NOTE 1 — BACKGROUND OF INFORMATION AND BASIS OF PRESENTATION

 

On July 14, 2018, NewBridge closed on Share Exchange and Purchase Agreements (“Closing”) with the various members and shareholders of 11th Street, Mad Creek, Timothy, Genus (formerly GLML), Roots Nursery, Inc. (“Roots”), and 5 Leaf (together the “Consortium”), whereby NewBridge purchased the shares or membership interests (as the case may be) of the entities making up the Consortium for a total of 31,000,000 shares of the Company’s common stock, par value $0.0001 per share. The Consortium consists of a farm, nursery, management and real estate companies with plans to operate in the cannabis industry.  

 

The 31,000,000 shares issued to the Consortium represented 76% of the 40,904,589 shares of the Company’s common stock issued and outstanding immediately following the July 14 Acquisitions. In addition, three of the four board members were replaced by the sellers at the Close. Due to the relative size of the Consortium compared to the Company prior to the Closing and the change in control of the Company, the July Acquisitions were considered a reverse acquisition and the Consortium is the acquirer for accounting purposes.  The historical financial statements are of the Consortium.

 

On September 12, 2018, NewBridge provided Roots notice of termination of the Roots Agreement pursuant to Section 10.01 of the Roots Nursery, Inc. Share Exchange and Purchase Agreement (the “Termination Agreement”), effective immediately.  Pursuant to the Termination Agreement, the Company cancelled a total of 9,850,000 shares of Common Stock issued in connection with the July 14 Closing.  On the same day, the Company issued a total of 9,850,000 shares to acquire East 10th Street LLC, a California limited liability real estate company, for 2,925,000 shares of the Company’s common stock and the rights to certain trademarks, logos, business operating procedures, marketing material and future plans for a tissue culture lab and cloning operations for 6,925,000 shares of the Company’s common stock.  These assets were acquired from Sam Mac and Eric Tran, respectively, both directors and principal shareholders in the Company.  

 

The unaudited pro forma combined balance sheet as of June 30, 2018, combines the unaudited consolidated balance sheets of the Company and NewBridge on June 30, 2018, and gives effect to the Acquisition as if it had occurred on June 30, 2018.

 

The unaudited pro forma combined statement of operations for the six months ended June 30, 2018 combines the unaudited results of operations of the Company and NewBridge to give the effect as if the Acquisition occurred the first day of the period presented (January 1, 2018). The pro forma combined statement of operations for the twelve months ended December 31, 2017, combines the audited consolidated statements of operations of the Company for the twelve months fiscal year ended December 31, 2017, with the audited combined statement of operations of NewBridge for the twelve months ended December 31, 2017, to give the effect as if the Acquisition occurred the first day of the period presented (January 1, 2017).

 

 

NOTE 2 – PRO FORMA ADJUSTMENTS

 

The pro forma financial statements have been prepared as if the acquisition was completed on January 1, 2018 and January 1, 2017 for annual pro formas and reflects the following pro forma adjustment:

 

(a)To record the goodwill on NewBridge at the time of the acquisition, to eliminate the accumulated deficit of NewBridge incurred before the reverse acquisition, and to adjust members’ capital to zero. The goodwill was calculated as the total consideration of $8,418,901 plus the net liabilities assumed of $827,052.  The total consideration is the total value of the Company immediately following the acquisition of $34,768,901 (40,904,589 shares x $0.85 share price) multiplied by the  


PF-5


percent ownership given up by the Consortium (24.2%).  

 

 

Dr. Goodwill$9,245,953 

Dr. Members’ capital$2,037,063 

    Cr. Common stock                      $        3,100

    Cr. Additional paid-in capital     $  1,091,058

    Cr. Accumulated deficit     $10,188,858 

 

(b)To record the issuance of 31,000,000 shares as part of the acquisition. 


PF-6