EX-99.2 4 ex99-2.htm

 

Exhibit 99.2

 

UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS

 

On August 11, 2021, Minim, Inc. (the “Company”) entered into an agreement with Zoom Video Communications, Inc. (“Zoom Video”) to sell, and sold, all of the Company’s right, title and interest in the ZOOM® trademark for cash consideration in the amount of $4 million (the “Disposition”).

 

The following unaudited pro forma financial information gives effect to the Disposition as if the Disposition had occurred on January 1, 2020. The unaudited Pro Forma Consolidated Financial Statements should be read in conjunction with our unaudited Pro Forma Consolidation Balance Sheet and Pro Forma Consolidated Statement of Operations appearing herein and our historical financial statements and notes hereto as filed in our annual report on Form 10-K and 10-K/A for the year ended December 31, 2020, filed with the Securities and Exchange Commission (the “SEC”) on April 13, 2021 and April 30, 2021, respectively.

 

The accompanying unaudited pro forma balance sheet as of December 31, 2020, giving effect to the Disposition, as if the Disposition event had occurred on January 1, 2020. The accompanying unaudited pro forma statement of operations for the twelve months ended December 31, 2020, giving effect to the Disposition as if the Disposition event had occurred on January 1, 2020, the first day of the Company’s calendar year ended December 31, 2020.

 

The accompanying pro forma adjustments are based on estimates that have been made solely for the purpose of providing unaudited pro forma financial information prepared in accordance with the rules and regulations of the SEC. The unaudited pro forma financial information does not purport to represent the actual results of operations that the Company would have achieved had the Disposition been completed on January 1, 2020.

 

The Company has prepared the following unaudited pro forma financial information pursuant to the requirements of Rule 8-05 of Regulation S-X, as amended by SEC Final Rule Release No. 33-10786, Amendments to Financial Disclosures About Acquired and Disposed Businesses. The unaudited pro forma financial information is presented to illustrate the transaction accounting adjustments related to the Disposition. The unaudited pro forma financial information is not intended to project the future results of operations that the Company may achieve after the Disposition.

 

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UNAUDITED PRO FORMA BALANCE SHEET

 

   As of
December 31, 2020 (1)		   Pro Forma
Adjustments		   Pro Forma 
             
ASSETS               
Current Assets               
Cash and cash equivalents  $771,757   $4,000,000(a)  $4,771,757 
Restricted cash   800,000    -    800,000 
Accounts receivable, net   9,203,334    -    9,203,334 
Inventories, net   16,504,840    -    16,504,840 
Prepaid expenses and other current assets   399,119    -    399,119 
Total current assets   27,679,050    -    31,679,050 
                
Equipment, net   455,066    -    455,066 
Operating lease right-of-use asset, net   86,948    -    86,948 
Goodwill   58,872    -    58,872 
Intangible assets, net   388,629    -    388,629 
Other assets   942,404    -    942,404 
Total assets  $29,610,969   $4,000,000   $33,610,969 
                
Current Liabilities               
Accounts payable  $11,744,834   $-   $11,744,834 
Current maturities of long-term debt   2,507,471    -    2,507,471 
Current maturities of operating lease liabilities   65,651    -    65,651 
Accrued other expenses   7,465,063    -    7,465,063 
Total current liabilities   21,783,019    -    21,783,019 
                
Long-term debt, less current maturities   15,245    -    15,245 
Operating lease liabilities, less current maturities   22,235    -    22,235 
Total liabilities  $21,820,499   $-   $21,820,499 
                
Stockholders’ (deficit) equity               
Common stock: Authorized 40,000,000 shares at $0.01 par value; Issued and outstanding 35,074,922 shares   350,749    -    350,749 
Additional paid-in capital   64,526,664    -    64,526,664 
Accumulated deficit   (57,086,943)   4,000,000(a)   (53,086,943)
Total stockholders’ (deficit) equity   7,790,470    4,000,000    11,790,470 
Total liabilities and stockholders’ (deficit) equity  $29,610,969   $4,000,000   $33,610,969 

 

(1) Source: Audited financial statements of Minim, Inc. (formerly known as Zoom Telephonics, Inc.) obtained from the Company’s Form 10-K and Form 10-K/A filed with the SEC for the year ended December 31, 2020.

 

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UNAUDITED PRO FORMA STATEMENT OF OPERATIONS

 

   Twelve Months Ended
December 31, 2020 (1)		   Pro Forma
Adjustments		   Pro Forma 
             
Total revenue  $47,988,549   $-   $47,988,549 
                
Cost of sales   34,382,314    -    34,382,314 
                
Gross profit   13,606,235    -    13,606,235 
                
Operating expenses:               
Selling expenses   9,154,685    -    9,154,685 
General and administrative expenses   5,443,529    -    5,443,529 
Research and development expenses   3,828,223    -    3,828,223 
Total operating expenses   18,426,437    -    18,426,437 
                
Operating loss   (4,820,202)   -    (4,820,202)
                
Other income (expense):               
Interest income   1,081    -    1,081 
Interest expense   (48,552)   -    (48,552)
Other expense   (21,356)   -    (21,356)
Gain on forgiveness of debt   1,057,330    -    1,057,330 
Gain on disposition of tradename   -    4,000,000(aa)   4,000,000 
Total other income   988,503    4,000,000    4,988,503 
                
Income (loss) before income taxes   (3,831,699)   4,000,000    168,301 
                
Income taxes   26,716    -    26,716 
Net loss  $(3,858,415)  $4,000,000   $141,585 
                
Basic and diluted net loss per share  $(0.15)   -   $(0.01)
                
Weighted average common and common equivalent shares (Basic and Diluted)   25,300,976    -    25,300,976 

 

(1) Source: Audited financial statements of Minim, Inc. (formerly known as Zoom Telephonics, Inc.) obtained from the Company’s Form 10-K and Form 10-K/A filed with the SEC for the year ended December 31, 2020.

 

ADJUSTMENTS TO UNAUDITED PRO FORMA BALANCE SHEET

 

  (a)The pro forma adjustments represent the adjustments necessary to reflect the sale proceeds and gain on the sale of the Disposition. The Company did not have a carrying basis in the tradename that was subject to the Disposition.

 

ADJUSTMENTS TO UNAUDITED PRO FORMA STATEMENT OF OPERATIONS

 

  (aa) The pro forma adjustments represent the adjustments necessary to reflect the gain on the sale of the Disposition.

 

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