Full Press Release Details
SMART FOR LIFE, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL
The following unaudited pro
forma condensed consolidated financial statements are based on the Company's historical consolidated results of operations and financial
position, adjusted to give effect to the Disposition, as defined in Item 2.01 of this Form 8-K, as if it had been completed on December
31, 2023 with respect to the unaudited pro forma condensed consolidated balance sheet and on January 1, 2023 with respect to the unaudited
pro forma condensed consolidated statements of operations for the year ended December 31, 2023.
These unaudited pro forma
condensed consolidated financial statements have been prepared in accordance with Article 11 of Regulation S-X and do not include all
of the information and note disclosures required by generally accepted accounting principles of the United States.
The unaudited pro forma condensed
consolidated financial information is subject to the assumptions and adjustments described in the accompanying notes. These assumptions
and adjustments are based on information presently available. Actual adjustments may differ materially from the information presented.
The unaudited pro forma condensed consolidated financial statements are based on the historical financial statements of the Company for
each period presented and in the opinion of the Company's management, all adjustments and disclosures necessary for a fair presentation
of the pro forma data have been made. These unaudited pro forma condensed consolidated financial statements are presented for illustrative
purposes only and are not necessarily indicative of the results of operations or financial condition that would have been achieved had
events reflected been completed as of the dates indicated, and may not be useful in predicting the impact of the Disposition on the future
financial condition and results of operations of the Company due to a variety of factors.
SMART FOR LIFE, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE
| Historical | Pro Forma Adjustments | Pro Forma | ||||||||||||||
| ASSETS | ||||||||||||||||
| Current assets: | ||||||||||||||||
| Cash | $ | 188,596 | $ | (29,871 | ) | <A> | $ | 158,725 | ||||||||
| Accounts receivable, net | 70,231 | (18,687 | ) | <A> | 51,544 | |||||||||||
| Inventory | 1,242,777 | (89,997 | ) | <A> | 1,152,780 | |||||||||||
| Related party receivable, net | 332,142 | - | 332,142 | |||||||||||||
| Prepaid expenses and other current assets | 148,993 | (6,500 | ) | <A> | 142,493 | |||||||||||
| Discontinued operations current assets | 348,971 | - | 348,971 | |||||||||||||
| Total current assets | 2,331,710 | (145,055 | ) | 2,186,655 | ||||||||||||
| Property and equipment, net | 100,539 | (4,188 | ) | <A> | 96,351 | |||||||||||
| Intangible assets, net | 11,046,767 | (3,911,019 | ) | <A> | 7,135,748 | |||||||||||
| Goodwill | 3,045,000 | - | <A> | 3,045,000 | ||||||||||||
| Deposits and other assets | 57,324 | - | 57,324 | |||||||||||||
| Right of use asset | 2,015,299 | (702,818 | ) | <A> | 1,312,481 | |||||||||||
| Discontinued operation noncurrent assets | 1,062,588 | - | 1,062,588 | |||||||||||||
| Total assets | $ | 19,659,227 | $ | (4,763,080 | ) | $ | 14,896,147 | |||||||||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||||||||||
| Current liabilities: | ||||||||||||||||
| Accounts payable | $ | 3,612,578 | $ | (528,126 | ) | <B> | $ | 3,084,452 | ||||||||
| Accrued expenses | 3,718,070 | (109,623 | ) | <B> | 3,608,447 | |||||||||||
| Accrued expenses, related parties | 264,141 | - | 264,141 | |||||||||||||
| Contract liabilities | 464,721 | (99,408 | ) | <A> | 365,313 | |||||||||||
| Preferred stock dividend payable | 450,562 | - | 450,562 | |||||||||||||
| Lease liability, current | 298,644 | (72,431 | ) | <A> | 226,213 | |||||||||||
| Debt, current, net of debt discounts | 10,616,114 | (51,767 | <A> | 10,564,347 | ||||||||||||
| Discontinued operations current liabilities | 2,631,078 | - | 2,631,078 | |||||||||||||
| Total current liabilities | 22,055,908 | (861,355 | ) | 21,194,553 | ||||||||||||
| Long-term liabilities: | ||||||||||||||||
| Lease liability, noncurrent | 1,800,158 | (647,258 | ) | <A> | 1,152,900 | |||||||||||
| Debt, noncurrent | 1,748,686 | - | 1,748,686 | |||||||||||||
| Discontinued operation noncurrent liabilities | 441,929 | - | 441,929 | |||||||||||||
| Total liabilities | 26,046,681 | (1,508,613 | ) | 24,538,068 | ||||||||||||
| Commitments and contingencies | ||||||||||||||||
| Stockholders' equity | ||||||||||||||||
| Series B Preferred Stock | 3 | - | 3 | |||||||||||||
| Common Stock | 37 | - | 37 | |||||||||||||
| Additional paid in capital | 61,280,662 | - | 61,280,662 | |||||||||||||
| Accumulated deficit | (67,668,156 | ) | (3,254,467 | ) | <C> | (70,922,623 | ) | |||||||||
| Total stockholders' equity | (6,387,454 | ) | (3,254,467 | ) | (9,641,921 | ) | ||||||||||
| Total liabilities and stockholders' equity | $ | 19,659,227 | $ | (4,763,080 | ) | $ | 14,896,147 |
SMART FOR LIFE, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS
YEAR ENDED DECEMBER 31, 2023
| Historical | Pro Forma Adjustments | Pro Forma | ||||||||||||||
| Revenues | ||||||||||||||||
| Products | $ | 7,863,977 | $ | (3,275,011 | ) | <D> | $ | 4,588,966 | ||||||||
| Advertising | 361,815 | - | 361,815 | |||||||||||||
| Total revenues | 8,225,792 | (3,275,011 | ) | 4,950,781 | ||||||||||||
| Costs of revenues | ||||||||||||||||
| Products | 4,854,554 | (1,877,019 | ) | <D> | 2,977,535 | |||||||||||
| Advertising | 281,131 | - | 281,131 | |||||||||||||
| Total cost of revenues | 5,135,685 | (1,877,019 | ) | 3,258,666 | ||||||||||||
| Gross profit | 3,090,107 | (1,397,992 | ) | 1,692,115 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| General and administrative | 4,258,202 | (440,199 | ) | <D> | 3,818,003 | |||||||||||
| Compensation | 5,561,017 | (519,010 | ) | <D> | 5,042,007 | |||||||||||
| Professional services | 2,263,405 | 3,500 | <D> | 2,266,905 | ||||||||||||
| Consulting fee - related party | 46,686 | - | 46,686 | |||||||||||||
| Impairment of intangible assets | 5,843,501 | (2,603,233 | ) | <D> | 3,240,268 | |||||||||||
| Depreciation and amortization expense | 2,273,288 | (1,425,606 | ) | <D> | 847,682 | |||||||||||
| Total operating expenses | 20,246,099 | (4,984,548 | ) | 15,261,551 | ||||||||||||
| Loss from continuing operations | (17,155,992 | ) | 3,586,556 | (13,569,436 | ) | |||||||||||
| Other income (expense) | ||||||||||||||||
| Gain on disposal of subsidiary | 726,225 | <C> | 726,225 | |||||||||||||
| Other income (expense) | 400,397 | (8,826 | ) | <D> | 391,571 | |||||||||||
| Gain on debt extinguishment | 269,828 | (67,332 | ) | <D> | 202,496 | |||||||||||
| Interest expense | (4,634,839 | ) | 349,871 | <D> | (4,284,968 | ) | ||||||||||
| Total expense | (3,964,614 | ) | 999,938 | (2,964,676 | ) | |||||||||||
| Net loss from continuing operations | (21,120,606 | ) | - | (21,120,606 | ) | |||||||||||
| Net loss from discontinued operations | (1,555,135 | ) | (3,586,556 | ) | <E> | (5,141,691 | ) | |||||||||
| Net loss | $ | (22,675,741 | ) | $ | (3,586,556 | ) | $ | (26,262,297 | ) | |||||||
| Weighted average shares outstanding | 136,346 | 136,346 | ||||||||||||||
| Loss per share continuing operations | $ | (154.90 | ) | $ | (154.90 | ) | ||||||||||
| Loss per share discontinued operations | $ | (11.41 | ) | $ | (37.71 | ) | ||||||||||
| Net loss per share | $ | (166.31 | ) | $ | (192.62 | ) |