Exhibit 99.3

 

AVALON GLOBOCARE CORP., FORMERLY KNOWN AS GLOBAL TECHNOLOGIES CORP.

PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS

June 30, 2016

(Unaudited)

 

 

 

 

AVALON GLOBOCARE CORP., FORMERLY KNOWN AS GLOBAL TECHNOLOGIES CORP.

INDEX TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS

June 30, 2016

 

  Pages
   
Introduction to Unaudited Pro Forma Condensed Combined Financial Statements 2
   
Unaudited Pro Forma Condensed Combined Balance Sheet as of June 30, 2016 3
   
Unaudited Pro Forma Condensed Combined Statement of Operations for the Six Months Ended June 30, 2016 4
   
Unaudited Pro Forma Condensed Combined Statement of Operations for the Year Ended December 31, 2015 5
   
Notes to Unaudited Pro Forma Condensed Combined Financial Statements 6

 

 1 

 

 

AVALON GLOBOCARE CORP., FORMERLY KNOWN AS GLOBAL TECHNOLOGIES CORP.

Introduction to Unaudited Pro Forma Condensed Combined Financial Statements

June 30, 2016

 

On September 14, 2016, Avalon Healthcare System Inc. (“AHS”), a Delaware Corporation entered into a stock purchase agreement (the “September Agreement”) to acquire 1,500,000 shares of Global Technologies Corp.’s, which subsequently changed its name on October 18, 2016 to Avalon Globocare Corp. (“the Company”, “our”, “we”, “Globocare”), restricted common stock (the “Control Shares”). Upon purchase of the Control Shares, AHS beneficially owned shares of common stock representing control of the Company. AHS subsequently assigned the Control Shares to its three shareholders resulting in Wenzhao Lu receiving 900,000 shares, David Jin receiving 450,000 shares and Meng Li receiving 150,000 shares. On October 19, 2016, we entered into and closed a Share Exchange Agreement with the shareholders of AHS, pursuant to which we acquired 100% of the outstanding securities of AHS in exchange for 50,000,000 shares of our common stock (the “Share Exchange Agreement”).

 

For accounting purposes, the Share Exchange Agreement has been accounted for as a reverse acquisition, and accordingly, the transaction has been treated as a recapitalization of AHS, with AHS as the accounting acquirer and surviving and continuing entity although Globocare is the legal acquirer. Accordingly, the Company’s historical financial statements are those of AHS immediately following the consummation of the reverse acquisition.

 

The following unaudited pro forma condensed combined financial statements are presented to illustrate the pro forma effects of our having entered into and closed a Share Exchange Agreement with AHS, hence consummation of the reverse acquisition. We have derived our historical financial data for the six months ended June 30, 2016 and for the year ended December 31, 2015 from our financial statements contained on Form 10-Q and Form 10-K, respectively, as filed with the Securities and Exchange Commission.   We have derived AHS historical financial statements as of June 30, 2016, for the six months ended June 30, 2016, and for the period from May 18, 2015 (date of inception) through December 31, 2015 from AHS financial statements contained elsewhere in this Form 8-K. Currently, AHS engages in medical related consulting services for its customers.

 

The unaudited pro forma condensed combined statement of operations for the six months ended June 30, 2016 assumes that the Share Exchange Agreement and distribution of certain assets and liabilities consummated on such period. The unaudited pro forma condensed combined balance sheet as of June 30, 2016 assumes the Share Exchange Agreement and distribution of assets and liabilities consummated on such period. The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2015 assumes that the Share Exchange Agreement and distribution of certain assets and liabilities consummated on such period.

 

The information presented in the unaudited pro forma condensed combined financial statements does not purport to represent what our financial position or results of operations would have been had the Share Exchange Agreement and distribution of assets and liabilities, nor is it indicative of our future financial position or results of operations for any period. You should not rely on this information as being indicative of the historical results that would have been achieved had the companies always been combined or the future results that the combined company will experience after the Share Exchange Agreement.

 

The unaudited pro forma adjustments are based upon available information and certain assumptions that we believe are reasonable under the circumstances. These unaudited pro forma condensed combined financial statements should be read in conjunction with the accompanying notes and assumptions and the historical financial statements and related notes of Globocare and AHS.

 

Globocare effected an one-for-four reverse stock split of its common stock on October 18, 2016. All share and per share information of Globocare presented in these unaudited pro forma condensed combined financial statements have been retroactively adjusted to reflect the reverse stock split.

 

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AVALON GLOBOCARE CORP., FORMERLY KNOWN AS GLOBAL TECHNOLOGIES CORP.

UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET

June 30, 2016

 

   Avalon Globocare Corp.,   Avalon Healthcare             
   Formerly Known As   System Inc.             
   Global Technologies Corp.   and Subsidiary             
   June 30,   June 30   Pro Forma Adjustments   Pro Forma 
   2016   2016   Dr.   Cr.   Balances 
                     
ASSETS                         
                          
CURRENT ASSETS:                         
Cash  $104   $611,487(3)  $-   $104   $611,487 
                          
Total Current Assets   104    611,487    -    104    611,487 
                          
Total Assets  $104   $611,487   $-   $104   $611,487 
                          
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                         
                          
CURRENT LIABILITIES:                         
Accounts payable and accrued liabilities  $4,950   $18,900(3)  $4,950   $-   $18,900 
Accounts payable and accrued liabilities - related party   -    20,565    -    -    20,565 
Loans from related parties - directors and stockholders   26,000    -(3)   26,000    -    - 
Advance from customers - related parties   -    452,500    -    -    452,500 
Due to related parties   -    97,150    -    -    97,150 
                          
Total Current Liabilities   30,950    589,115    30,950    -    589,115 
                          
Commitments and Contingencies                         
                          
STOCKHOLDERS' EQUITY (DEFICIT):                         
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; no shares issued and outstanding at June 30, 2016   -    -    -    -    - 
Common stock, $0.0001 par value; 490,000,000 shares authorized; 1,750,000 and 51,750,000 pro forma shares issued and outstanding at June 30, 2016, respectively   175    -(1)(2)    -    5,000    5,175 
Additional paid-in capital   28,925    230,000(1)(2)(3)   64,946    30,846    224,825 
Accumulated deficit   (59,946)   (207,843)(2)   -    59,946    (207,843)
Accumulated other comprehensive income - foreign currency translation adjustment   -    215    -    -    215 
                          
Total Stockholders' Equity (Deficit)   (30,846)   22,372    64,946    95,792    22,372 
                          
Total Liabilities and Stockholders' Equity (Deficit)  $104   $611,487   $95,896   $95,792   $611,487 

 

See accompanying notes to unaudited pro forma condensed combined financial statements.

 

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AVALON GLOBOCARE CORP., FORMERLY KNOWN AS GLOBAL TECHNOLOGIES CORP.

UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS

 

   Avalon Globocare Corp.,   Avalon Healthcare     
   Formerly Known As   System Inc.     
   Global Technologies Corp.   and Subsidiary     
   For the Six Months   For the Six Months     
   Ended   Ended   Pro Forma 
   June 30, 2016   June 30, 2016   Balances 
             
REVENUE  $-   $-   $- 
                
OPERATING EXPENSES:               
Professional fees   25,440    77,075    102,515 
Other general and administrative   -    28,456    28,456 
                
Total Operating Expenses   25,440    105,531    130,971 
                
OTHER INCOME               
Interest Income   -    60    60 
                
Total Other Income   -    60    60 
                
NET LOSS  $(25,440)  $(105,471)  $(130,911)
COMPREHENSIVE LOSS               
NET LOSS   (25,440)   (105,471)   (130,911)
OTHER COMPREHENSIVE INCOME               
Unrealized foreign currency translation gain   -    215    215 
COMPREHENSIVE LOSS  $(25,440)  $(105,256)  $(130,696)
                
NET LOSS PER COMMON SHARE:               
Basic and diluted  $(0.01)       $(0.00)
                
WEIGHTED AVERAGE SHARES OUTSTANDING:               
Basic and diluted   1,750,000         51,750,000 

 

See accompanying notes to unaudited pro forma condensed combined financial statements.

 

 4 

 

 

AVALON GLOBOCARE CORP., FORMERLY KNOWN AS GLOBAL TECHNOLOGIES CORP.

UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS

 

   Avalon Globocare Corp.,         
   Formerly Known As   Avalon Healthcare     
   Global Technologies Corp.   System Inc.     
   For the Year   For the Period from May 18, 2015     
   Ended   (Date of Inception) through   Pro Forma 
   December 31, 2015   December 31, 2015   Balances 
             
REVENUE  $-   $-   $- 
                
OPERATING EXPENSES:               
Professional fees   31,006    83,900    114,906 
Other general and administrative   -    18,480    18,480 
                
Total Operating Expenses   31,006    102,380    133,386 
                
OTHER INCOME               
Interest Income   -    8    8 
                
Total Other Income   -    8    8 
                
NET LOSS  $(31,006)  $(102,372)  $(133,378)
                
NET LOSS PER COMMON SHARE:               
Basic and diluted  $(0.02)       $(0.00)
                
WEIGHTED AVERAGE SHARES OUTSTANDING:               
Basic and diluted   1,583,589         51,583,589 

 

See accompanying notes to unaudited pro forma condensed combined financial statements.

 

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AVALON GLOBOCARE CORP., FORMERLY KNOWN AS GLOBAL TECHNOLOGIES CORP.

NOTES TO UNAUDITED PRO FORMAT CONDENSED COMBINED FINANCIAL STATEMETNS

June 30, 2016

 

[1] Basis of presentation.

 

The unaudited pro forma condensed combined financial statements have been prepared in order to present combined financial position and results of operations of Globocare and AHS as if the reverse acquisition had occurred as of June 30, 2016 for the unaudited pro forma condensed combined balance sheet, to give effect to the reverse acquisition of Globocare, as if the transaction had taken place at May 18, 2015 (date of AHS’s inception) for the unaudited pro forma condensed combined statement of operations for the period from May 18, 2015 (date of inception) through December 31, 2015, and to give effect to the reverse acquisition of Globocare, as if the transaction had taken place at January 1, 2016 for the unaudited pro forma condensed combined statement of operations for the six months ended June 30, 2016.

 

The condensed financial statements of Globocare as of June 30, 2016, for the six months ended June 30, 2016 and for the year ended December 31, 2015 were derived from the financial statements contained on Form 10-Q and 10-K, respectively, as filed with the Securities and Exchange Commission.

 

The condensed financial statements of AHS as of June 30, 2016, for the six months ended June 30, 2016 and for the period from May 18, 2015 (date of inception) through December 31, 2015 were derived from AHS’s financial statements contained elsewhere in this Form 8-K.

 

The following unaudited pro forma adjustments are incorporated into the unaudited pro forma condensed combined balance sheet as of June 30, 2016, the unaudited pro forma condensed combined statements of operations for the six months ended June 30, 2016 and for the year ended December 31, 2015.

 

[2] The consummation of the Share Exchange Agreement is deemed to be a reverse acquisition. Globocare (the legal acquirer) is considered the accounting acquiree and AHS (the legal acquiree) is considered the accounting acquirer and surviving and continuing entity. The financial statements of the combined entities will in substance be those of AHS, with the assets and liabilities, and expenses, of Globocare being included effective from the date of consummation of the Share Exchange Agreement. Globocare is deemed to be a continuation of the business of AHS. The outstanding stock of Globocare prior to the consummation of the Share Exchange Agreement will be accounted for at their net book value and no goodwill will be recognized.

 

[3] To recapitalize for the Share Exchange Agreement (or Reverse Acquisition).

 

[4] To reflect the distribution of certain assets and liabilities upon closing of the Share Exchange Agreement.

 

Unaudited pro forma adjustments reflect the following transactions:

 

(1)          
Additional paid-in capital   5,000      
Common stock, at par        5,000 
To reflect the issuance of 50,000,000 shares of common stock in connection with the Share Exchange Agreement.          
           
(2)          
Common stock, at par   -      
Additional paid-in capital        - 
Additional paid-in capital   59,946      
Accumulated deficit        59,946 
To recapitalize for the Share Exchange Agreement (or Reverse Acquisition).          

 

(3)          
Accounts payable and accrued liabilities   4,950      
Loans from related parties - directors and stockholders   26,000      
Cash        104 
Additional paid-in capital        30,846 
To reflect the distribution of certain assets and liabilities upon closing the Share Exchange Agreement.          

 

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