Exhibit 99.2

 

SIMPLICITY ESPORTS AND GAMING COMPANY

 

UNAUDITED PRO FORMA COMBINED BALANCE SHEET

May 31, 2018

 

 

   Historical         
Assets 

Simplicty Esports

and Gaming

Company

  

Simplicity Esports,

LLC

  

Pro Forma

Adjustments

  

Pro Forma

Combined

 
Current assets:                    
                     
Cash and cash equivalents  $458,063   $918,034        $1,376,097 
Prepaid expenses   3,168             3,168 
                     
Total current assets   461,231    918,034         1,379,265 
                     
Other assets:                    
                     
Goodwill           6,090,000(a)   6,090,000 
Cash held in Trust Account   52,895,652             52,895,652 
                     
Total other assets   52,895,652        6,090,000    58,985,652 
                     
Total assets  $53,356,883   $918,034   $6,090,000   $60,364,917 
                     
Liabilities and Stockholders’ Deficit                    
Current liabilities:                    
Loan payable - Related party  $81,618   $        $81,618 
Accrued expenses   63,579             63,579 
Deferred legal fees   100,000             100,000 
                     
Total current liabilities   245,197            245,197 
                     
Long term liabilities:                    
Deferred underwriting fees   1,820,000             1,820,000 
                     
Total long term liabilities   1,820,000             1,820,000 
                     
Total liabilities   2,065,197            2,065,197 
                     
Commitments                    
Common stock subject to possible redemption, $0.0001 par value   46,291,685             46,291,685 
                     
Stockholders’ deficit:                    
Common stock, par value $.0001, 20,000,000 shares authorized, 2,252,743 shares issued and outstanding   225         300(b)   525 
Additional paid in capital   5,009,310    918,034    6,089,700(b)   12,017,044 
Accumulated deficit   (9,534)             (9,534)
 Total shareholders ‘equity   5,000,001    918,034    6,090,000    12,008,035 
                     
Total liabilities and shareholders’ deficit  $53,356,883   $918,034   $6,090,000   $60,364,917 

 

(a) Goodwill as a result of the acquisition. Goodwill is the excess of our purchase cost over the fair value of the net assets of acquiring Simplicity Esports, LLC. We do not amortize goodwill, but assess our goodwill for impairment at least annually. Goodwill was based on provisional information.

 

(b) The Company issued 3,000,000 resticted shares of common stock as consideration, which was valued at market at the date of the closing, fair value of $6,090,000

 

 

 

 

SIMPLICITY ESPORTS AND GAMING COMPANY

 

UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS

 

 

   Historical         
  

Simplicty Esports

and Gaming Company
Year Ended
May 31, 2018

  

Simplicity Esports, LLC
for the Period from
September 24, 2017
(inception) Through
May 31, 2018

  

Pro Forma

Adjustments

   Pro Forma
Combined
 
                 
Revenue  $   $   $   $ 
                     
Operating expenses:                    
General and administrative   530,564    274,424        804,988 
                     
Total cost and expenses   530,564    274,424        804,988 
                     
Other income (expenses):                    
Interest income   521,702            521,702 
                     
Total other income (expenses)   521,702            521,702 
                     
Loss before income taxes   (8,862)   (274,424)       (283,286)
                     
Provision for income taxes                  
                     
Net loss  $(8,862)  $(274,424)  $   $(283,286)
                     
Earnings per common share (basic and diluted)   (0.00)             (0.06)
                     
Weighted average number of shares outstanding                    
(Basic and Diluted)   2,050,790         3,000,000(1)   5,050,790 

 

(1) This adjustment reflects the acquisition of Simpicity Esports, LLC, which resulted in the issuance of 3,000,000 resticted shares of common stock

 

 

 

 

SIMPLICITY ESPORTS AND GAMING COMPANY

 

UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS

SIX MONTHS ENDED NOVEMBER 30, 2018

 

 

   Historical         
  

Simplicty Esports

and Gaming

Company

  

Simplicity Esports,

LLC

  

Pro Forma

Adjustments

  

Pro Forma

Combined

 
                 
Revenue  $   $15,937   $   $15,937 
                     
Operating expenses:                    
General and administrative   3,381,602    205,664        3,587,266 
                     
Total cost and expenses   3,381,602    205,664        3,587,266 
                     
Other income (expenses):                    
Interest income   401,418    1,097        402,515 
                     
Total other income (expenses)   401,418    1,097        402,515 
                     
Loss before income taxes   (2,980,184)   (188,631)       (3,168,815)
                     
Provision for income taxes                  
                     
Net loss  $(2,980,184)  $(188,631)  $   $(3,168,815)
                     
Earnings per common share (basic and diluted)   (1.27)             (0.59)
                     
Weighted average number of shares outstanding                    
(Basic and Diluted)   2,354,655         3,000,000(1)   5,354,655 

 

(1) This adjustment reflects the acquisition of Simpicity Esports, LLC, which resulted in the issuance of 3,000,000 resticted shares of common stock