Full Press Release Details
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL
The following unaudited
pro forma condensed financial statements are based upon the historical financial statements of FRESH2 GROUP LIMITED, formerly ANPAC BIO-MEDICAL
SCIENCE CO., LTD. (the "Company" or "Fresh2"), adjusted to give effect to the acquisition of 98.64% of the issued
and outstanding securities Roxe Holding Inc. ("Roxe") and the sale of its business of providing multi-cancer screening and
detection tests, physical checkup packages, and technology services (the "Business").
On July 17, 2023, Fresh2
entered into a share purchase agreement (the "Purchase Agreement") with Roxe. Pursuant to the Purchase Agreement, Fresh2 acquired
51% of the issued and outstanding securities of Roxe in consideration of 110,476,291 shares of Fresh2 Class A Ordinary Shares.
On November 6, 2023,
the Company entered into a share purchase agreement with Roxe. Pursuant to the purchase agreement, subject to the satisfaction of the
conditions to closing, Fresh2 acquired 47.64% of the issued and outstanding securities of Roxe in consideration of 139,542,221 shares
of Class A ordinary Shares.
On September 1, 2022,
the Company entered into two share purchase agreements Changxin and Yiyou, pursuant to which the Company agreed to sell 70% of the shares
of Changwei, a subsidiary based in Shanghai, China, to Changxin in consideration of USD350,000 (RMB2,555,000) and sell the remaining 30%
of the shares to Yiyou in consideration of USD150,000 (RMB1,095,000). On February 10, 2023, Yiyou entered into a further arrangement with
Changxin and Ruoou Ying, pursuant to which a transfer of 29% of Changwei's shares to Changxin and 1% of the shares to Ruoou Ying was effectuated.
The closing took place on June 1, 2023. This transaction was a sale to related parties. Ruoou Ying held the position of Supervisor at
Anpac Lishui, while Changxin was under the common control of Ruoou Ying and Chris Yu, the Co-Founder and Chairman of the Company.
On July 28, 2023, the
Company entered into an agreement with New-Horizon, a company registered in Hong Kong with its business interests and focus in bio-medical
technologies, pursuant to which the Company agreed to sell 100% of the shares of AnPac Bio-Medical Technology (Lishui) Co., Ltd., a subsidiary
based in Lishui, China which has incurred significant financial losses in its operations and is not expected to reach a breakeven point
for a significant period of time, to New-Horizon in consideration of RMB1.00. The closing took place on August 23, 2023.
On July 28, 2023, the
Company entered into a share purchase agreement with New-Horizon, pursuant to which the Company agreed to sell 100% of the shares of Anpac
Technology USA CO., LTD., a subsidiary with operations in, Pennsylvania and California, to New-Horizon in consideration of USD1.00. The
closing took place simultaneously with the execution of the agreement.
On July 28, 2023, the
Company entered into a share purchase agreement with Ningkasai, a high-tech company in the life science applications sector, pursuant
to which the Company agreed to sell 100% of the shares of Changhe Bio-Medical Technology (Yangzhou) Co., Ltd., a subsidiary based in Yangzhou,
China, to Ningkasai in consideration of RMB1.00. The closing took place on November 22, 2023. This transaction was a sale to a related
party, as Ningkasai qualified as a related party of the Company, being under 99% control by Changxin.
The unaudited pro forma
consolidated combined balance sheet as of December 31, 2022 combines the historical consolidated balance sheet of Fresh2, the historical
consolidated balance sheet of Roxe as of December 31, 2022, giving effect to the acquisition as if it had been consummated on December
31, 2022, and as adjusted to give effect to the sale of the Business as if it had been consummated on December 31, 2022. The unaudited
pro forma consolidated combined statement of operations and comprehensive loss for the year ended December 31, 2022 combines the historical
consolidated statement of operations and comprehensive loss of Fresh2 and the historical consolidated statement of operations and comprehensive
loss of Roxe, giving effect to the acquisition as if it had been consummated on January 1, 2022, the beginning of the period presented,
and as adjusted to give effect to the sale of the Business as if it had been consummated on January 1, 2022. The transaction accounting
adjustments for the sale of the Business remove the assets, liabilities and results of operations of the Business. The adjustments also
give effect to the cash proceeds from the sale of the Business, less related transaction costs. Certain of the most significant assumptions
are set forth in the Notes to Unaudited Pro Forma Condensed Financial Statements.
The unaudited pro forma
consolidated combined balance sheet as of June 30, 2023 combines the historical consolidated balance sheet of Fresh2, the historical consolidated
balance sheet of Roxe as of June 30, 2023, giving effect to the acquisition as if it had been consummated on June 30, 2023, and as adjusted
to give effect to the sale of the Business as if it had been consummated on June 30, 2023. The unaudited pro forma consolidated combined
statement of operations and comprehensive loss for the six months ended June 30, 2023 combines the historical consolidated statement of
operations and comprehensive loss of Fresh2 and the historical consolidated statement of operations and comprehensive loss of Roxe, giving
effect to the acquisition as if it had been consummated on January 1, 2023, the beginning of the period presented, and as adjusted to
give effect to the sale of the Business as if it had been consummated on January 1, 2023. The transaction accounting adjustments for the
sale of the Business remove the assets, liabilities and results of operations of the Business. The adjustments also give effect to the
cash proceeds from the sale of the Business, less related transaction costs. Certain of the most significant assumptions are set forth
in the Notes to Unaudited Pro Forma Condensed Financial Statements.
The historical consolidated
financial statements have been adjusted in the unaudited pro forma consolidated combined financial statements to give pro forma effect
to events that are: (1) directly attributable to the acquisition and sale; (2) factually supportable; and (3) with respect to the statement
of operations, expected to have a continuing impact on Fresh2's results following the completion of the acquisition.
The unaudited pro forma
consolidated combined financial statements have been developed from and should be read in conjunction with:
| The accompanying notes to the unaudited pro forma consolidated combined financial statements; | ||
| The historical consolidated financial statements and related notes of Fresh2 as of December 31, 2022, for the year ended December 31, 2022, as well as "Management's Discussion and Analysis of Financial Condition and Results of Operations," included in Fresh2's Annual Report on Form 20-F for the year ended December 31, 2022, which were filed with the Securities and Exchange Commission; | ||
| The historical consolidated financial statements of Roxe as of December 31, 2022 and 2021 and for the years ended December 31, 2022 and 2021, which were filed with the SEC in a Form 6-K on August 21, 2023; |
| The historical consolidated financial statements and related notes of Fresh2 as of June 30, 2023, for the six months ended June 30, 2023, as well as "Management's Discussion and Analysis of Financial Condition and Results of Operations," included in Fresh2's Interim Report on Form 6-K/A for the six months ended June 30, 2023, which were filed with the SEC on December 1, 2023; and | ||
| The historical consolidated financial statements of Roxe as of June 30, 2023 and December 31, 2022, and for the six months ended June 30, 2023 and 2022, which are included herein. |
We have included the
following unaudited pro forma condensed financial information for illustrative and informational purposes. The unaudited pro forma condensed
financial information is not intended to reflect what the Company's financial position and results of operations would have been
had the acquisition and the sale of the Business occurred on the dates indicated above; and is not necessarily indicative of the results
of operations or financial position that may occur in the future. The pro forma condensed information does not reflect the realization
of any expected cost savings, or any impact of the continuing businesses of the Company.
FRESH2 GROUP LIMITED
(FORMERLY ANPAC BIO-MEDICAL SCIENCE
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS
OF OPERATIONS AND COMPREHENSIVE LOSS
For the year ended December 31, 2022
(Amounts in thousands of US$, except
for number of shares and per share data)
| Historical | Pro Forma | |||||||||||||||||||||||||||||||||||
| Fresh2 Group Limited and Subsidiaries | ROXE Holdings Inc and Subsidiaries | Pro Forma Adjustments Roxe | Pro Forma Combined | Pro Forma Adjustments Sale of Business | Pro Forma | |||||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||||||
| Cross-border remittance platform services | - | 1 | 1 | 1 | ||||||||||||||||||||||||||||||||
| Revenues-third parties | 1,428 | - | 1,428 | (1,428 | ) | d | - | |||||||||||||||||||||||||||||
| Revenues-related parties | 318 | - | 318 | (318 | ) | d | - | |||||||||||||||||||||||||||||
| Total revenues | 1,746 | 1 | - | 1,747 | (1,746 | ) | 1 | |||||||||||||||||||||||||||||
| Cost of revenues | (538 | ) | (492 | ) | (1,030 | ) | 538 | d | (492 | ) | ||||||||||||||||||||||||||
| Gross Profit | 1,208 | (491 | ) | - | 717 | (1,208 | ) | (491 | ) | |||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||||||
| Selling and marketing expenses | (1,762 | ) | (388 | ) | (2,150 | ) | 1,260 | e | (890 | ) | ||||||||||||||||||||||||||
| Research and development expenses | (1,381 | ) | (1,381 | ) | 629 | e | (752 | ) | ||||||||||||||||||||||||||||
| General and administrative expenses | (10,263 | ) | (5,259 | ) | (15,522 | ) | 3,402 | e | (12,120 | ) | ||||||||||||||||||||||||||
| Professional Service Fee | (105 | ) | b | (105 | ) | (4 | ) | c | (109 | ) | ||||||||||||||||||||||||||
| Bad Debt Expenses | (12,798 | ) | b | (12,798 | ) | |||||||||||||||||||||||||||||||
| Impairment of long-term investments | - | - | - | |||||||||||||||||||||||||||||||||
| Impairment of intangible assets | (1,147 | ) | (1,147 | ) | 1,147 | e | - | |||||||||||||||||||||||||||||
| Impairment of goodwill | (1,850 | ) | (1,850 | ) | 1,850 | e | - | |||||||||||||||||||||||||||||
| Impairment of long-lived assets | - | (1,774 | ) | (1,774 | ) | (1,774 | ) | |||||||||||||||||||||||||||||
| Loss from operations | (15,195 | ) | (7,912 | ) | (105 | ) | (23,212 | ) | (5,722 | ) | (28,934 | ) | ||||||||||||||||||||||||
| Non-operating income and expenses: | ||||||||||||||||||||||||||||||||||||
| Interest expense, net | (54 | ) | - | (54 | ) | 50 | f | (4 | ) | |||||||||||||||||||||||||||
| Foreign exchange loss, net | (114 | ) | (114 | ) | (5 | ) | f | (119 | ) | |||||||||||||||||||||||||||
| Share of net gain (loss) in equity method investments | 23 | 23 | (23 | ) | f | - | ||||||||||||||||||||||||||||||
| Other income (expense), net | (9 | ) | (204 | ) | (213 | ) | 9 | f | (204 | ) | ||||||||||||||||||||||||||
| Bargain purchase gain | - | 12,056 | a | 12,056 | 12,056 | |||||||||||||||||||||||||||||||
| Change in fair value of convertible debt | 21 | 21 | 21 | |||||||||||||||||||||||||||||||||
| Gain on disposal | - | 15,393 | a | 15,393 | ||||||||||||||||||||||||||||||||
| Loss before income taxes | (15,328 | ) | (8,116 | ) | 11,951 | (11,493 | ) | 9,702 | (1,791 | ) | ||||||||||||||||||||||||||
| Income tax benefit | 309 | - | 309 | (309 | ) | f | - | |||||||||||||||||||||||||||||
| Net loss | (15,019 | ) | (8,116 | ) | 11,951 | (11,184 | ) | 9,393 | (1,791 | ) | ||||||||||||||||||||||||||
| Net loss attributable to noncontrolling interests | (247 | ) | - | (577 | ) | d | (824 | ) | 247 | g | (577 | ) | ||||||||||||||||||||||||
| Net loss attributable to ordinary shareholders | (14,772 | ) | (8,116 | ) | 12,528 | (10,360 | ) | 9,146 | (1,214 | ) | ||||||||||||||||||||||||||
| Loss per share | ||||||||||||||||||||||||||||||||||||
| Class A and B ordinary shares - basic and diluted | (0.39 | ) | (0.04 | ) | (0.00 | ) | ||||||||||||||||||||||||||||||
| Weighted average shares outstanding used in calculating basic and diluted loss per share | ||||||||||||||||||||||||||||||||||||
| Class A and Class B ordinary shares - basic and diluted | 38,242,073 | 288,260,585 | c | 288,260,585 |
FRESH2 GROUP LIMITED
(FORMERLY ANPAC BIO-MEDICAL SCIENCE CO., LTD.)
UNAUDITED PRO FORMA CONSOLIDATED COMBINED BALANCE
(Amounts in thousands of U.S. dollars ("US$"),
except for number of shares and per share data)
| Historical | Pro Forma | |||||||||||||||||||||||||||||||
| Fresh2 Group Limited and Subsidiaries | ROXE Holdings Inc and Subsidiaries | Pro Forma Adjustments Roxe | Pro Forma Combined | Pro Forma Adjustments Sale of Business | Pro Forma | |||||||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||||||||
| Current assets: | ||||||||||||||||||||||||||||||||
| Cash and cash equivalents | 68 | 9 | 77 | 0 | e | 77 | ||||||||||||||||||||||||||
| Prepayment | 315 | - | 315 | 315 | ||||||||||||||||||||||||||||
| Accounts receivable, net | 37 | 52 | 89 | 89 | ||||||||||||||||||||||||||||
| Amounts due from related parties, net | 1,698 | - | 1,698 | 1,698 | ||||||||||||||||||||||||||||
| Inventories, net | 19 | - | 19 | 19 | ||||||||||||||||||||||||||||
| Other current assets, net | 57 | 87 | 144 | 144 | ||||||||||||||||||||||||||||
| Current assets held for sale | 1,348 | 1,348 | (1,348 | ) | a | - | ||||||||||||||||||||||||||
| Total current assets | 3,542 | 148 | - | 3,690 | (1,348 | ) | 2,342 | |||||||||||||||||||||||||
| Digital Assets | - | 6 | 6 | 6 | ||||||||||||||||||||||||||||
| Long-term prepayment | 875 | 875 | 875 | |||||||||||||||||||||||||||||
| Property and equipment, net | 594 | 6 | 600 | 600 | ||||||||||||||||||||||||||||
| Land use rights, net | - | - | - | |||||||||||||||||||||||||||||
| Intangible assets, net | 6,229 | 3,734 | 43,625 | a | 53,588 | 53,588 | ||||||||||||||||||||||||||
| (4,363 | ) | d | ||||||||||||||||||||||||||||||
| Goodwill | 5,034 | - | 5,034 | 5,034 | ||||||||||||||||||||||||||||
| Right of use assets | 31 | 1,168 | 1,199 | 1,199 | ||||||||||||||||||||||||||||
| Long-term investments, net | 5,486 | - | 5,486 | 5,486 | ||||||||||||||||||||||||||||
| Noncurrent assets held for sale | 2,785 | - | 2,785 | (2,785 | ) | b | - | |||||||||||||||||||||||||
| TOTAL ASSETS. | 24,576 | 5,062 | 39,263 | 68,901 | (4,133 | ) | 69,130 | |||||||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT) | ||||||||||||||||||||||||||||||||
| Current liabilities: | ||||||||||||||||||||||||||||||||
| Short-term debts | 2 | - | 2 | 2 | ||||||||||||||||||||||||||||
| Accounts payable | 58 | 2,135 | 2,193 | 2,193 | ||||||||||||||||||||||||||||
| Advance from customers | 66 | - | 66 | 66 | ||||||||||||||||||||||||||||
| Amounts due to related parties | 82 | - | 82 | 82 | ||||||||||||||||||||||||||||
| Lease liability-current | 20 | 312 | 332 | 332 | ||||||||||||||||||||||||||||
| Accrued expenses and other current liabilities | 3,415 | 201 | 105 | c | 3,721 | 3,721 | ||||||||||||||||||||||||||
| Current liabilities held for sale | 4,609 | 4,609 | (4,609 | ) | c | - | ||||||||||||||||||||||||||
| Total current liabilities | 8,252 | 2,648 | 105 | 11,005 | (4,609 | ) | 6,396 | |||||||||||||||||||||||||
| Deferred tax liabilities | 405 | - | 405 | 405 | ||||||||||||||||||||||||||||
| Lease liability-non-current | 5 | 1,061 | 1,066 | 1,066 | ||||||||||||||||||||||||||||
| Other long-term liabilities | 124 | - | 124 | 124 | ||||||||||||||||||||||||||||
| Noncurrent liabilities held for sale | 336 | 336 | (336 | ) | d | - | ||||||||||||||||||||||||||
| TOTAL LIABILITIES. | 9,122 | 3,709 | 105 | 12,936 | (4,945 | ) | 7,991 | |||||||||||||||||||||||||
| Commitments and contingencies | ||||||||||||||||||||||||||||||||
| Shareholders' equity (deficit): | ||||||||||||||||||||||||||||||||
| Fresh2 | ||||||||||||||||||||||||||||||||
| Class A Ordinary shares ((US$0.01 par value per share); 2,400,000,000 shares authorized, 79,536,589 and 176,070,465 shares issued and outstanding as of December 31, 2022 and June 30, 2023, respectively | 1,680 | 2,500 | a | 4,180 | 4,180 | |||||||||||||||||||||||||||
| Class B Ordinary shares ((US$0.01 par value per share; 30,000,000 authorized and 3,573,100 shares issued and outstanding as of December 31, 2022 and June 30, 2023 | 33 | 33 | 33 | |||||||||||||||||||||||||||||
| Roxe | ||||||||||||||||||||||||||||||||
| Class A common stock, $0.00002 par value, 10,000,000 shares authorized and 10,000,000 shares issued and outstanding at December 31, 2022 and June 30, 2023 | - | - | b | - | - | |||||||||||||||||||||||||||
| Class B common stock, $0.00002 par value, 240,000,000 shares authorized and 209,005,594 shares issued and outstanding at December 31, 2022 and June 30, 2023 | 4 | (4 | ) | b | - | - | ||||||||||||||||||||||||||
| Treasury stock | - | - | - | |||||||||||||||||||||||||||||
| Additional paid-in capital | 98,648 | 10,246 | (10,246 | ) | b | 128,561 | 128,561 | |||||||||||||||||||||||||
| 29,913 | a | |||||||||||||||||||||||||||||||
| (779 | ) | k | ||||||||||||||||||||||||||||||
| Accumulated deficit | (89,896 | ) | (8,898 | ) | 8,898 | b | (77,986 | ) | 3,507 | f | (74,479 | ) | ||||||||||||||||||||
| 8,362 | a | |||||||||||||||||||||||||||||||
| (4,363 | ) | d | ||||||||||||||||||||||||||||||
| (105 | ) | c | ||||||||||||||||||||||||||||||
| Accumulated other comprehensive income | 2,294 | 1 | (1 | ) | b | 2,294 | 2,294 | |||||||||||||||||||||||||
| Total Fresh2 Group Limited shareholders' deficit | 12,759 | 1,353 | 37,828 | 57,082 | 3,507 | 60,589 | ||||||||||||||||||||||||||
| Non-controlling interest | 2,695 | 4,203 | b | 6,898 | (2,695 | ) | g | 4,203 | ||||||||||||||||||||||||
| 779 | k | |||||||||||||||||||||||||||||||
| Total shareholders' equity (deficit) | 15,454 | 1,353 | 39,157 | 60,327 | 812 | 61,139 | ||||||||||||||||||||||||||
| TOTAL LIABILITIES AND EQUITY (DEFICIT) | 24,576 | 5,062 | 39,262 | 68,900 | (4,133 | ) | 69,130 |
ANPAC BIO-MEDICAL SCIENCE CO., LTD.)
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
the six months ended June 30, 2023
in thousands of US$, except for number of shares and per share data)
| Historical | Pro Forma | |||||||||||||||||||||||||||||
| Fresh2 Group Limited and Subsidiaries | ROXE Holdings Inc and Subsidiaries | Pro Forma Adjustments Roxe | Pro Forma Combined | Pro Forma Adjustments Sale of Business | Pro Forma | |||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||
| Technology Service | - | 67 | 67 | 67 | ||||||||||||||||||||||||||
| Cross-border remittance platform services | - | 2 | 2 | 2 | ||||||||||||||||||||||||||
| Revenues-fresh2 | 681 | - | 681 | 681 | ||||||||||||||||||||||||||
| Total revenues | 681 | 69 | - | 750 | - | 750 | ||||||||||||||||||||||||
| Cost of revenues | (557 | ) | - | (557 | ) | (557 | ) | |||||||||||||||||||||||
| Gross Profit | 124 | 69 | - | 193 | - | 193 | ||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||
| Selling and marketing expenses | (837 | ) | (6 | ) | (843 | ) | (843 | ) | ||||||||||||||||||||||
| Research and development expenses | (318 | ) | (318 | ) | (318 | ) | ||||||||||||||||||||||||
| General and administrative expenses | (4,920 | ) | (545 | ) | (4,363 | ) | d | (9,828 | ) | (9,828 | ) | |||||||||||||||||||
| Professional Service Fee | (105 | ) | f | (105 | ) | (4 | ) | h | (109 | ) | ||||||||||||||||||||
| Bad Debt Expenses | - | |||||||||||||||||||||||||||||
| Impairment of long-term investments | - | - | - | |||||||||||||||||||||||||||
| Impairment of intangible assets | - | - | - | |||||||||||||||||||||||||||
| Impairment of goodwill | - | - | - | |||||||||||||||||||||||||||
| Impairment of long-lived assets | - | - | - | - | ||||||||||||||||||||||||||
| Loss from operations | (5,951 | ) | (482 | ) | (4,468 | ) | (10,901 | ) | (4 | ) | (10,905 | ) | ||||||||||||||||||
| Non-operating income and expenses: | ||||||||||||||||||||||||||||||
| Interest expense, net | (43 | ) | - | (43 | ) | (43 | ) | |||||||||||||||||||||||
| Foreign exchange loss, net | - | - | - | |||||||||||||||||||||||||||
| Share of net gain (loss) in equity method investments | (13 | ) | (13 | ) | (13 | ) | ||||||||||||||||||||||||
| Other income (expense), net | 3 | (1 | ) | 2 | 2 | |||||||||||||||||||||||||
| Bargain purchase gain | - | 12,015 | e | 12,015 | 12,015 | |||||||||||||||||||||||||
| Change in fair value of convertible debt | - | - | - | |||||||||||||||||||||||||||
| Gain on disposal | - | 3,507 | e | 3,507 | ||||||||||||||||||||||||||
| Loss before income taxes | (6,004 | ) | (483 | ) | 7,547 | 1,060 | 3,503 | 4,563 | ||||||||||||||||||||||
| Income tax benefit | 11 | - | 11 | 11 | ||||||||||||||||||||||||||
| Loss from continuing operations | (5,993 | ) | (483 | ) | 7,547 | 1,071 | 3,503 | 4,574 | ||||||||||||||||||||||
| Loss from discontinued operations, net of taxes | (4,344 | ) | - | (4,344 | ) | 4,344 | i | - | ||||||||||||||||||||||
| Net Loss | (10,337 | ) | (483 | ) | 7,547 | - | (3,273 | ) | - | 7,847 | 4,574 | |||||||||||||||||||
| Net loss attributable to noncontrolling interests | (88 | ) | - | 78 | (10 | ) | 88 | j | 78 | |||||||||||||||||||||
| Net loss attributable to ordinary shareholders | (10,249 | ) | (483 | ) | 7,469 | (3,263 | ) | 7,759 | 4,496 | |||||||||||||||||||||
| Loss per share | ||||||||||||||||||||||||||||||
| Class A and B ordinary shares - basic and diluted | (0.27 | ) | (0.01 | ) | 0.02 | |||||||||||||||||||||||||
| Weighted average shares outstanding used in calculating basic and diluted loss per share | ||||||||||||||||||||||||||||||
| Class A and Class B ordinary shares - basic and diluted | 38,242,073 | 288,260,585 | g | 288,260,585 |
ANPAC BIO-MEDICAL SCIENCE CO., LTD.)
TO UNAUDITED PRO FORMA CONDENSED FINANCIAL STATEMENTS
of Pro Forma Presentation
unaudited pro forma consolidated combined financial statements have been prepared assuming the acquisition is accounted for as a business
combination using the acquisition method of accounting under Financial Accounting Standards Board ("FASB") ASC 805, Business
Combinations ("ASC 805"). For business combinations under ASC 805, acquisition-related transaction costs are not included
as a component of consideration transferred but are accounted for as expenses in the periods in which such costs are incurred. Acquisition-related
transaction costs include valuation, auditing, legal consulting fee and others.
unaudited pro forma consolidated combined financial statements reflect adjustments, based on available information and certain assumptions
that Fresh2 believes are reasonable, attributable to the following:
pro forma adjustments represent management's estimates based on information available as of the date of this filing and are subject