Exhibit 99.4
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
Defined terms included below have the same meaning as terms defined and included elsewhere in this Current Report on Form 8-K (this “Form 8-K”) and, if not defined in this Form 8-K, the Original Report.
Introduction
The unaudited pro forma condensed combined balance sheet as of September 30, 2022, and year ended March 31, 2022, gives pro forma effect to the Business Combination as if it had been consummated as of that date. The unaudited pro forma condensed combined statements of operations for the nine months ended September 30, 2022, and year ended March 31, 2022, give pro forma effect to the Business Combination as if it had occurred as of April 1, 2021. This information should be read together with Earth Science Tech, Inc. (“ETST”) audited financial statements for the year ended March 31, 2022 and related notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations of ETST for the year ended March 31, 2022 included incorporated by reference into this Form 8-K, and PEAK S CURATIVE, LLC’S (“PEAKS”) audited financial statements for the year ended September 30, 2022 and related notes and RXCOMPOUNDSTORE.COM, LLC (“RXCOMPOUND”) , included in this Form 8-K.
The unaudited pro forma condensed combined balance sheet as of September 30, 2022, has been prepared using the following:
| ● | ETST’s audited historical balance sheet as of March 31, 2022, incorporated by reference into this Form 8-K. | |
| ● | PEAK’s audited historical balance sheet as of September 30, 2022, included in this Form 8-K. | |
| ● | RXCOMPOUND’s audited historical balance sheet as of September 30, 2022, included in this Form 8-K. |
The unaudited pro forma condensed combined statement of operations for the nine months ended September 30, 2022, and year ended March 31, 2022, has been prepared using the following:
| ● | ETST’s audited historical consolidated statement of operations for the year ended March 31, 2022, incorporated by reference into this Form 8-K.; and | |
| ● | PEAK’s audited historical statement of operations for the year ended September 30, 2022 (1st year of operations), included in this Form 8-K. | |
| ● | RXCOMPOUND’s audited historical statement of operations for the year ended September 30, 2022, and March 31, 2022, included in this Form 8-K. |
Description of the Transactions
On November 8, 2022, Earth Science Tech, Inc. (“the Company”) acquired Peaks Curative, LLC. (“LLC”) a Florida limited liability company (“PEAKS”), and RxCompoundStore.com, LLC. (“RXCOMPOUND”). for 53,700,000 restricted shares of the Company’s common stock, and the assumption of certain indebtedness of PEAKS and RXCOMPOUND. PEAKS had one managing member, Mario G. Tabraue, who created the LLC and established the company’s brand and website, who was appointed to the Company as its President and a board of directors’ member on November 3, 2021, as part of a definitive agreement to be acquired by the Company. Pursuant to the definitive agreement the Company set terms for the transaction that was subsequently settled on November 8, 2022, for 53,700,000 of the Company’s restricted common stock along with the PEAKS sister company, RxCompoundStore.com, LLC. (“RXCOMPOUND”). The shares issued consummated a merger, presently having the Company’s owned 100% by ETST
Accounting for the Merger
The Merger will be accounted for as a reverse recapitalization in accordance with U.S. GAAP. Under this method of accounting, PEAKS AND RXCOMPOUND, who are the legal acquirers, will be treated as the “acquired” companies for financial reporting purposes and ETST will be treated as the accounting acquirer. This determination was primarily based on PEAKS and RXCOMPOUND having a majority of the voting power of the post-combination company, PEAKS and RXCOMPOUND’s senior management comprising substantially all of the senior management of the post-combination company, the relative size of PEAKS and RXCOMPOUND combined compared to ETST, and PEAKS and RXCOMPOUND operations comprising the ongoing operations of the post-combination company. Accordingly, for accounting purposes, the Merger will be treated as the equivalent of a capital transaction in which ETST is issuing stock for the net assets of PEAKS and RXCOMPOUND. The net assets of PEAKS and RXCOMPOUND will be stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Merger will be those of ETST.
Basis of Pro Forma Presentation
The historical financial information has been adjusted to give pro forma effect to events that are related and/or directly attributable to the Business Combination. The adjustments presented on the unaudited pro forma combined financial statements have been identified and presented to provide relevant information necessary for an accurate understanding of the post-combination company upon consummation of the Business Combination. The unaudited pro forma condensed combined financial information is for illustrative purposes only. The financial results may have been different had the companies always been combined. You should not rely on the unaudited pro forma combined financial information as being indicative of the historical financial position and results that would have been achieved had the companies always been combined or the future financial position and results that the post-combination company will experience. ETST, PEAKS and RXCOMPOUND did not have any historical relationship prior to the Business Combination. Accordingly, no pro forma adjustments were required to eliminate activities between the companies.
EARTH SCIENCES TECH, INC. & SUBSIDIARIES
PRO FORMA CONDENSED COMBINED BALANCE SHEETS (Unaudited)
| SEPTEMBER 30, 2022 | MARCH 31. 2022 | |||||||||||||||||||||||||||||||||||||||||
EARTH SCIENCES TECH INC. | PEAKS CURATIVE LLC | RX COMPOUND STORE.COM LLC | Merger Adjustments | Pro Forma Combined | EARTH SCIENCES TECH INC. | PEAKS CURATIVE LLC | RX COMPOUND STORE.COM LLC | Merger Adjustments | Pro Forma Combined | |||||||||||||||||||||||||||||||||
(Public Co.) Accounting Acquiror | (Private Co.) Accounting Acquiree | (Private Co.) Accounting Acquiree | (Public Co.) Accounting Acquiror | (Private Co.) Accounting Acquiree | (Private Co.) Accounting Acquiree | |||||||||||||||||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||||||||||||||||||
| CURRENT ASSETS: | ||||||||||||||||||||||||||||||||||||||||||
| Cash | $ | 1,205 | $ | 545 | 5,663 | 7,413 | $ | 26,942 | $ | 545 | 4,829 | 32,316 | ||||||||||||||||||||||||||||||
| Inventory | - | 10,259 | 10,259 | - | 10259 | 10,259 | ||||||||||||||||||||||||||||||||||||
| Other current assets | - | 224,873 | 224,873 | - | 116405 | 116,405 | ||||||||||||||||||||||||||||||||||||
| TOTAL CURRENT ASSETS | 1,205 | 545 | 240,795 | 242,545 | 26,942 | 545 | 131493 | 158,980 | ||||||||||||||||||||||||||||||||||
| OTHER ASSETS | ||||||||||||||||||||||||||||||||||||||||||
| Due from RxCompound | 303,057 | -0 | -0 | bb | (303,057 | ) | 303,057 | 25,000 | - | - | bb | (25,000 | ) | 25,000 | ||||||||||||||||||||||||||||
| Prepaid acquisition costs | 51,500 | -0 | -0 | 51,500 | 25,000 | - | - | 25,000 | ||||||||||||||||||||||||||||||||||
| TOTAL OTHER ASSETS | 354,557 | -0 | -0 | 354,557 | 50,000 | -0 | -0 | 50,000 | ||||||||||||||||||||||||||||||||||
| PROPERTY AND EQUIPMENT, net | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
| INTANGIBLE ASSET, NET | -0 | 17,806 | 87,806 | -0 | 19,209 | 19,209 | ||||||||||||||||||||||||||||||||||||
| Total assets | $ | 355,762 | $ | 18,351 | 240,795 | (303,057 | ) | $ | 614,908 | $ | 76,942 | $ | 19,754 | 131493 | (25,000 | ) | 228,189 | |||||||||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||||||||||||||||||||||||||||||||||||
| CURRENT LIABILITIES | ||||||||||||||||||||||||||||||||||||||||||
| Accounts payable and accrued expenses | $ | 357,397 | - | 25532 | 382929 | $ | 611,784 | - | 17,806 | 629,590 | ||||||||||||||||||||||||||||||||
| Current portion of Notes payable | 820,000 | - | -0 | 820,000 | 406,838 | - | - | 406,838 | ||||||||||||||||||||||||||||||||||
| Government Loans | 111,752 | - | -0 | 111,752 | 138,550 | - | - | 138,550 | ||||||||||||||||||||||||||||||||||
| Loan payable | 50,000 | - | -0 | -0 | 50,000 | 50,000 | - | - | 50,000 | |||||||||||||||||||||||||||||||||
| Notes Payable - Related Parties | 88,505 | - | -0 | 88,505 | 87,402 | - | - | 87,402 | ||||||||||||||||||||||||||||||||||
| Due to ETST | - | - | 286,000 | bb | (192,694 | ) | 286,000 | - | - | 30,000 | bb | (23,105 | ) | 30,000 | ||||||||||||||||||||||||||||
| Due to RX | 110,363 | - | bb | (110,363 | ) | 110363 | 1,895 | - | bb | (1,895 | ) | 1,895 | ||||||||||||||||||||||||||||||
| Other current liabilities | 845,318 | - | -0 | 845,318 | 585,886 | -0 | - | 585,886 | ||||||||||||||||||||||||||||||||||
| TOTAL CURRENT LIABILITIES | 2,383,335 | -0 | 311,532 | 2,694,867 | 1,882,355 | -0 | 47,806 | 193,0161 | ||||||||||||||||||||||||||||||||||
| NON-CURRENT LIABILITIES | ||||||||||||||||||||||||||||||||||||||||||
| Notes payable | - | - | 108,700 | 108,700 | - | - | 108,700 | 108,700 | ||||||||||||||||||||||||||||||||||
| TOTAL NON-CURRENT LIABILITIES | - | - | 108,700 | 108,700 | -0 | -0 | 108,700 | 108,700 | ||||||||||||||||||||||||||||||||||
| TOTAL LIABILITIES | 2,383,335 | -0 | 420,232 | 2,803,567 | 1,882,355 | - | 156,506 | 2,038,861 | ||||||||||||||||||||||||||||||||||
| STOCKHOLDERS’/MEMBERS’ EQUITY (DEFICIT): | ||||||||||||||||||||||||||||||||||||||||||
| Preferred stock | 1,000 | -0 | -0 | 1,000 | - | - | - | |||||||||||||||||||||||||||||||||||
| Common stock | 59,053 | -0 | -0 | aa | 53,700 | 59053 | 53,853 | - | aa | 53,700 | 53,853 | |||||||||||||||||||||||||||||||
| Common Units | 30,217 | aa | (44,252 | ) | (30,217 | ) | 21,867 | aa | (36,401 | ) | 21,867 | |||||||||||||||||||||||||||||||
| Opening balance equity | 73,190 | 73,190 | 73,190 | 73,190 | ||||||||||||||||||||||||||||||||||||||
| Shareholders distribution | (6,180 | ) | (6,180 | ) | (5,680 | ) | (5,680 | ) | ||||||||||||||||||||||||||||||||||
| Additional paid-in capital | 28,264,452 | 0 | -0 | aa | (241,378 | ) | 28,264,452 | 28,264,452 | -0 | aa | (41,499 | ) | 28,264,452 | |||||||||||||||||||||||||||||
| Accumulated earnings (deficit) | (30,352,078 | ) | (11,866 | ) | (24644 | ) | aa | 231,930 | (30,610,391 | ) | (30,123,718 | ) | (2,113 | ) | (92,523 | ) | aa | 74,201 | (30,219,354 | ) | ||||||||||||||||||||||
| TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) | (2,027,573 | ) | 18,351 | (179,437 | ) | (2,188,659 | ) | (1,805,413 | ) | 19,754 | (25,013 | ) | (1,810,672 | ) | ||||||||||||||||||||||||||||
| Total liabilities and Equity | $ | 355,762 | $ | 18,351 | $ | 240795 | (303,057 | ) | 614,908 | $ | 76,942 | $ | 19,754 | 131,493 | 25,000 | 228,189 | ||||||||||||||||||||||||||
See accompanying notes to the Unaudited Pro Forma Comdensed Combined Financial Information
EARTH SCIENCES TECH, INC. & SUBSIDIARIES
PRO FORMA CONDENSED COMBINED STATEMENTS OF OPERATIONS (Unaudited)
| SIX MONTHS ENDED SEPTEMBER 30, 2022 | YEAR ENDED MARCH 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
EARTH SCIENCES TECH INC. |
PEAKS CURATIVE LLC |
RX COMPOUND STORE.COM |
Merger Adjustments |
Pro Forma Combined |
EARTH SCIENCES TECH INC. |
PEAKS CURATIVE LLC |
RX COMPOUND STORE.COM |
Merger Adjustments |
Pro Forma Combined |
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(Public Co.) Accounting Acquiror |
(Private Co.) Accounting Acquiree |
(Private Co.) Accounting Acquiree |
(Public Co.) Accounting Acquiror |
(Private Co.) Accounting Acquiree |
(Private Co.) Accounting Acquiree |
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| REVENUES | ||||||||||||||||||||||||||||||||||||||||||
| Net Sales | - | $ | 1,134 | 101,378 | 102,512 | $ | 14,123 | - | 255,176 | 269,299 | ||||||||||||||||||||||||||||||||
| TOTAL REVENUES | ||||||||||||||||||||||||||||||||||||||||||
| COST OF REVENUES | - | 398 | 50,128 | 50,526 | 22,639 | - | 38,720 | 61,359 | ||||||||||||||||||||||||||||||||||
| GROSS PROFIT | - | 736 | 51,250 | 51,986 | (8,516 | ) | - | 216,456 | 207,940 | |||||||||||||||||||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||||||||||||||||||||||||
| Sales and Marketing | 544 | 444- | 988 | 3,655 | 381 | - | 4,036 | |||||||||||||||||||||||||||||||||||
| General and administrative | 246,160 | 12,058 | 204,728 | 462,946 | 207,035 | 1,173 | 296,582 | 504,790 | ||||||||||||||||||||||||||||||||||
| Litigation expense | 522,925 | - | - | 522,925 | 7,500 | - | - | 7,500 | ||||||||||||||||||||||||||||||||||
| Total expenses | 769,085 | 12,602 | 205,172 | 986,859 | 218,190 | 1,554 | (80,126 | ) | 516,326 | |||||||||||||||||||||||||||||||||
| INCOME (LOSS) FROM OPERATIONS | (769,085 | ) | (11,866 | ) | (153,922 | ) | (934,873 | ) | (226,706 | ) | (1,554 | ) | (80,126 | ) | (308,386 | ) | ||||||||||||||||||||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||||||||||||||||||||||||||||||||
| Interest expense | (17,300 | ) | - | (1 | ) | (17,301 | ) | (50,043 | ) | - | (50,043 | ) | ||||||||||||||||||||||||||||||
| Other income (expense) | 558,025 | - | 585,025 | 3,450,009 | - | 3,450,009 | ||||||||||||||||||||||||||||||||||||
| TOTAL OTHER INCOME (EXPENSE) | 540,725 | - | (1 | ) | 540,724 | 3,399,966 | - | 3,399,966 | ||||||||||||||||||||||||||||||||||
| NET INCOME (LOSS) | $ | (228,360 | ) | $ | (11,866 | ) | (153,923 | ) | (394,149 | ) | $ | 3,173,260 | $ | (1,554 | ) | (80,126 | ) | 3,091,580 | ||||||||||||||||||||||||
| Common stock/units outstanding | 59,051,966 | 1,000 | - | aa | (1,000 | ) | 59,051,966 | 53,851,966 | 1,000 | - | aa | (1,000 | ) | 53,851,966 | ||||||||||||||||||||||||||||
| Common stock issued in merger | - | aa | 53,700,000 | 53,700,000 | - | aa | 53,700,000 | 53,700,000 | ||||||||||||||||||||||||||||||||||
| Total common stock /units outstanding | 59,051,966 | 1,000 | - | 112,751,966 | 53,851,966 | 1,000 | - | 107,551,966 | ||||||||||||||||||||||||||||||||||
| NET LOSS PER SHARE | $ | (0.0039 | ) | $ | (0.0038 | ) | 0.0589 | $ | 0.0287 | |||||||||||||||||||||||||||||||||
See accompanying notes to the Unaudited Pro Forma Comdensed Combined Financial Information
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
1. Unaudited Pro Forma Condensed Combined Balance Sheet Adjustments
| aa | Reflects the recapitalization of PEAKS and RXCOMPOUND through (i) the exchange of 100% of the common units of PEAKS and RXCOMPOUND for 53,700,000 shares of common stock of ETST public stock on a 1:1 exchange basis, (ii) the elimination of the historical retained earnings of PEAKS and RXCOMPOUND. | |
| bb | Reflects the settlement of the outstanding loans receivable/loans payable between ETST, PEAKS and RXCOMPOUND upon the closing of the Merger. |