EXHIBIT 99.2

  

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

 

The following unaudited pro forma condensed combined financial statements and related notes present the historical consolidated financial statements of Unrivaled Brands, Inc. (the “Company”), formerly Terra Tech Corp., and Silverstreak Solutions, Inc. (“Silverstreak”) as if completion of the acquisition had occurred on the dates specified below.

 

The following unaudited pro forma combined condensed financial information has been prepared to illustrate the estimated effects of the acquisition.

 

The unaudited pro forma condensed combined balance sheet as of June 30, 2021 is based on the individual unaudited historical consolidated balance sheets of the Company and Silverstreak as of the transaction had occurred on June 30, 2021.

 

The unaudited pro forma combined condensed statements of operations for the year ended December 31, 2020 combines the historical individual results of operations for the Company and Silverstreak for the year ended December 31, 2020 and has been prepared to reflect the transaction as if it occurred on January 1, 2020.

 

The unaudited pro forma combined condensed statements of operations for the six months ended June 30, 2021 combines the historical unaudited results of operations for the Company and Silverstreak for the six months ended June 30, 2021 and has been prepared to reflect the transaction as if it occurred on January 1, 2021.

 

Other than as disclosed in the notes thereto, the unaudited pro forma combined financial statements do not reflect any additional liabilities, off-balance sheet commitments or other obligations that may become payable after the date of such financial statements.

 

The unaudited pro forma condensed combined financial statements are presented for illustrative purposes only to reflect the acquisition and do not represent what our results of operations or financial position would actually have been had the transactions occurred on the dates noted above or project our results of operations or financial position for any future periods. The unaudited pro forma condensed combined financial statements are intended to provide information about the continuing impact of the acquisition as if it had been consummated earlier. The pro forma adjustments are based on available information and certain assumptions that management believes are factually supportable and are expected to have a continuing impact on our results of operations. In the opinion of management, all adjustments necessary to present fairly the unaudited pro forma condensed combined financial statements have been made.

 

The acquisition will be accounted for using the acquisition method of accounting for business combinations. The allocation of the preliminary estimated purchase price is based upon management’s estimates of and assumptions related to the fair value of assets to be acquired and liabilities to be assumed as of December 31, 2020 using currently available information. Due to the fact that the unaudited pro forma combined financial information has been prepared based on these preliminary estimates, the final purchase price allocation and the resulting effect on financial position and results of operations may materially differ from the pro forma amounts included herein. The Company expects to finalize its allocation of the purchase consideration as soon as practicable but is not required to finalize for one year from the closing date of the transaction.

 

The following unaudited pro forma condensed combined financial information should be read in conjunction with the Company’s consolidated financial statements and related notes. The Company’s financial statements and notes are included in our Annual Report on Form 10-K for the year ended December 31, 2020 and in our Quarterly Report on Form 10-Q for the six months ended June 30, 2021.

 

 
1

 

  

UNRIVALED BRANDS (FORMERLY TERRA TECH CORP.) AND SUBSIDIARIES

 

UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET

 

AS OF JUNE 30, 2021

 

(in thousands of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrivaled Brands (formerly Terra Tech Corp.)
(as reported)

 

 

SilverStreak

Solutions Inc.

 

 

Pro Forma

Adjustments

 

 

Pro Forma

Combined

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

 $ 40,283

 

 

 $ 263

 

 

 $ -

 

 

 $ 40,546

 

Accounts receivable, net

 

 

 2,202

 

 

 

 -

 

 

 

 -

 

 

 

 2,202

 

Short term investments

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Inventory

 

 

 2,590

 

 

 

 311

 

 

 

 -

 

 

 

 2,901

 

Prepaid expenses and other current assets

 

 

 1,038

 

 

 

 -

 

 

 

 -

 

 

 

 1,038

 

Current assets of discontinued operations

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current assets

 

 

 46,113

 

 

 

 574

 

 

 

 -

 

 

 

 46,687

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 -

 

Property, equipment and leasehold improvements, net

 

 

 31,214

 

 

 

 257

 

 

 

 -

 

 

 

 31,471

 

Intangible assets, net

 

 

 7,339

 

 

 

 -

 

 

 

 -

 

 

 

 7,339

 

Goodwill

 

 

 6,171

 

 

 

 -

 

 

 

 10,330

 

 

 

 16,501

 

Other assets

 

 

 12,733

 

 

 

 -

 

 

 

 -

 

 

 

 12,733

 

Other investments

 

 

 330

 

 

 

 6

 

 

 

 -

 

 

 

 336

 

Assets of discontinued operations

 

 

 2,901

 

 

 

 -

 

 

 

 -

 

 

 

 2,901

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 $ 106,801

 

 

 $ 837

 

 

 $ 10,330

 

 

 $ 117,968

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and other accrued expenses

 

 $ 10,550

 

 

 $ 917

 

 

 $ -

 

 

 $ 11,467

 

Income Tax Payable

 

 

 -

 

 

 

 1,719

 

 

 

 -

 

 

 

 1,719

 

Short-term debt

 

 

 11,775

 

 

 

 31

 

 

 

 -

 

 

 

 11,806

 

Current liabilities of discontinued operations

 

 

 14,356

 

 

 

 -

 

 

 

 -

 

 

 

 14,356

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 

 

 36,681

 

 

 

 2,667

 

 

 

 -

 

 

 

 39,348

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt, net of discounts

 

 

 3,500

 

 

 

 -

 

 

 

 -

 

 

 

 3,500

 

Long-term lease liabilities

 

 

 7,094

 

 

 

 -

 

 

 

 -

 

 

 

 7,094

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

 47,275

 

 

 

 2,667

 

 

 

 -

 

 

 

 49,942

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Company's stockholders' equity

 

 

 55,549

 

 

 

 (1,830 )

 

 

 10,330

 

 

 

 64,049

 

Non-controlling interest

 

 

 3,977

 

 

 

 -

 

 

 

 -

 

 

 

 3,977

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

 

 59,526

 

 

 

 (1,830 )

 

 

 10,330

 

 

 

 68,026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 $ 106,801

 

 

 $ 837

 

 

 $ 10,330

 

 

 $ 117,968

 

 

 
2

 

 

UNRIVALED BRANDS (FORMERLY TERRA TECH CORP.) AND SUBSIDIARIES

UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2020

(in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrivaled Brands (formerly Terra Tech Corp.)
(as reported)

 

 

SilverStreak

Solutions, Inc.

 

 

Pro Forma

Adjustments

 

 

Pro Forma

Combined

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

 $ 14,287

 

 

 $ 12,522

 

 

 $ -

 

 

 $ 26,809

 

Cost of goods sold

 

 

 10,687

 

 

 

 6,818

 

 

 

 -

 

 

 

 17,505

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 3,600

 

 

 

 5,704

 

 

 

 -

 

 

 

 9,304

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

 24,602

 

 

 

 6,175

 

 

 

 -

 

 

 

 30,777

 

Impairment of assets

 

 

 19,910

 

 

 

 -

 

 

 

 -

 

 

 

 19,910

 

(Gain) / Loss  on sale of assets

 

 

 (35 )

 

 

 -

 

 

 

 -

 

 

 

 (35 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

 (40,877 )

 

 

 (471 )

 

 

 -

 

 

 

 (41,348 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income / (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 (2,932 )

 

 

 -

 

 

 

 -

 

 

 

 (2,932 )

Unrealized gain/(loss) on investments

 

 

 29,045

 

 

 

 -

 

 

 

 -

 

 

 

 29,045

 

Bargain purchase on purchase of business

 

 

 

 

 

 

 -

 

 

 

 

 

 

 

 -

 

Other expense

 

 

 

 

 

 

 (15 )

 

 

 

 

 

 

 (15 )

Other income / (loss)

 

 

 964

 

 

 

 -

 

 

 

 -

 

 

 

 964

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other income / (expense)

 

 

 27,077

 

 

 

 (15 )

 

 

 -

 

 

 

 27,062

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income / (loss) from continuing operations

 

 

 (13,800 )

 

 

 (486 )

 

 

 -

 

 

 

 (14,286 )

Income / (loss) from discontinued operations, net of tax

 

 

 (17,071 )

 

 

 -

 

 

 

 -

 

 

 

 (17,071 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME / (LOSS)

 

 $ (30,871 )

 

 $ (486 )

 

 $ -

 

 

 $ (31,357 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:  Income / (Loss) attributable to non-controlling interest from continuing operations

 

 

 (754 )

 

 

 -

 

 

 

 -

 

 

 

 (754 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS ATTRIBUTABLE TO UNRIVALED BRANDS, INC

 

 $ (30,117 )

 

 $ (486 )

 

 $ -

 

 

 

 (30,603 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income / ( Loss) from continuing operations per common share attributable to Unrivaled Brands, Inc. common stockholders – basic and diluted

 

 $ (0.07 )

 

 

 

 

 

 

 

 

 

 $ (0.07 )

Income / ( Loss) from continuing operations per common share attributable to Unrivaled Brands, Inc. common stockholders – basic and diluted

 

 $ (0.16 )

 

 

 

 

 

 

 

 

 

 $ (0.16 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-Average Number of Common Shares Outstanding – Basic and Diluted

 

 

 191,978,187

 

 

 

 

 

 

 

 

 

 

 

 192,626,566

 

 

 
3

 

 

UNRIVALED BRANDS (FORMERLY TERRA TECH CORP.) AND SUBSIDIARIES

UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS

FOR THE THREE MONTHS ENDED JUNE 30, 2021

(in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrivaled Brands (formerly Terra Tech Corp.)
(as reported)

 

 

SilverStreak

Solutions, Inc.

 

 

Pro Forma

Adjustments

 

 

Pro Forma

Combined

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

 $ 6,262

 

 

 $ 2,001

 

 

 $ -

 

 

 $ 8,263

 

Cost of goods sold

 

 

 3,924

 

 

 

 907

 

 

 

 -

 

 

 

 4,831

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 2,338

 

 

 

 1,094

 

 

 

 -

 

 

 

 3,432

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

 6,188

 

 

 

 8

 

 

 

 -

 

 

 

 6,196

 

Loss (gain) on sale of assets

 

 

 6

 

 

 

 -

 

 

 

 -

 

 

 

 6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

 (3,856 )

 

 

 1,094

 

 

 

 -

 

 

 

 (2,762 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income / (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 (204 )

 

 

 -

 

 

 

 -

 

 

 

 (204 )

Gain/(loss) on sale of investment

 

 

 (874 )

 

 

 -

 

 

 

 -

 

 

 

 (874 )

Other income / (loss)

 

 

 17

 

 

 

 -

 

 

 

 -

 

 

 

 17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other income / (expense)

 

 

 (1,061 )

 

 

 -

 

 

 

 -

 

 

 

 (1,061 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income / (loss) from continuing operations

 

 

 (4,917 )

 

 

 1,094

 

 

 

 -

 

 

 

 (3,823 )

Income / (loss) from discontinued operations, net of tax

 

 

 (56 )

 

 

 -

 

 

 

 -

 

 

 

 (56 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME / (LOSS)

 

 $ (4,973 )

 

 $ 1,094

 

 

 $ -

 

 

 $ (3,879 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:  Income / (Loss) attributable to non-controlling interest from continuing operations

 

 

 (868 )

 

 

 -

 

 

 

 -

 

 

 

 (868 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS ATTRIBUTABLE TO TERRA TECH CORP.

 

 $ (4,105 )

 

 

 1,094

 

 

 

 -

 

 

 

 (3,011 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income / ( Loss) from continuing operations per common share attributable to Terra Tech Corp. common stockholders – basic and diluted

 

 $ (0.02 )

 

 

 

 

 

 

 

 

 

 $ (0.02 )

Net Loss per common share attributable to Terra Tech Corp. common stockholders – basic and diluted

 

 $ (0.02 )

 

 

 

 

 

 

 

 

 

 $ (0.01 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-Average Number of Common Shares Outstanding – Basic and Diluted

 

 

 258,897,777

 

 

 

 

 

 

 

 

 

 

 

 238,236,138

 

 

 

4

 

 

   

Note 1 – Unaudited Pro Forma Condensed Combined Balance Sheet

 

Consideration for the acquisition of Silverstreak consisted of  $1,500,000 in cash, $4,500,000 in unsecured promissory notes, and $2,500,000 in shares of the Company’s common stock, based on the volume-weighted average stock price for the ten days prior to the close.  The consideration is $8.5 million.

 

The following adjustments have been made to the accompanying unaudited pro forma combined balance sheet as of June 30, 2021 to reflect the acquisition adjustments related to the transaction:

 

(a) The preliminary estimated fair value of goodwill reflects the preliminary purchase price allocation.

 

 
5