Exhibit 99.2

 

PASITHEA THERAPEUTICS CORP. AND SUBSIDIARIES

UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS

 

The following unaudited pro forma consolidated balance sheet as of March 31, 2022 and the unaudited pro forma consolidated statements of operations for the three months ended March 31, 2022 and the year ended December 31, 2021 are based on the historical consolidated financial statements of Pasithea Therapeutics Corp. (the “Company”) and Alpha-5 Integrin LLC, a Delaware limited liability company (“Alpha-5”) after giving retroactive effect to the Company’s acquisition of Alpha-5 effective June 21, 2022 (the “Acquisition”), and applying the assumptions and adjustments described in the accompanying notes to the unaudited pro forma consolidated financial statements.

 

The unaudited pro forma consolidated balance sheet as of March 31, 2022 is presented as if the Acquisition had occurred on January 1, 2021 and is derived from the unaudited consolidated balance sheet of the Company at March 31, 2022 and the unaudited balance sheet of Alpha-5 at March 31, 2022 and gives effect to certain pro forma adjustments. The unaudited pro forma consolidated statement of operations for the three months ended March 31, 2022 is presented as if the Acquisition had occurred on January 1, 2021 and are derived from the unaudited consolidated statement of operations of the Company for the three months ended March 31, 2022 and the unaudited consolidated statement of operations of Alpha-5 for the three months ended March 31, 2022; the unaudited pro forma consolidated statement of operations for the year ended December 31, 2021 are derived from the audited historical statement of operations of the Company for the year ended December 31, 2021 and the audited historical statement of operations of Alpha-5 for the year ended December 31, 2021 and are presented as if the Acquisition occurred on January 1, 2021. These consolidated pro forma statements of operations do not and give effect to pro forma adjustments as any adjustments arising from the combined companies are deemed to be immaterial.

 

The unaudited pro forma consolidated financial information is based on the assumptions set forth in the notes to such information. These adjustments are provisional and subject to further adjustment as additional information becomes available, additional analyses are performed, and as warranted by changes in current conditions and future expectations. The unaudited pro forma adjustments made in preparation of the unaudited pro forma information are based upon available information and assumptions that the Company considers to be reasonable and have been made solely for purposes of developing such unaudited pro forma consolidated financial information for illustrative purposes in compliance with the disclosure requirements of the Securities and Exchange Commission (“SEC”).

 

The unaudited pro forma adjustments have been made solely for informational purposes. The actual results reported by the Company in periods following the Acquisition, and through the measurement period, may differ significantly from that reflected in these unaudited pro forma consolidated financial statements. As a result, the unaudited pro forma consolidated information is not intended to represent and does not purport to be indicative of what the Company’s financial condition or results of operations would have been had the Acquisition been completed on the applicable dates of the unaudited pro forma consolidated financial statements. In addition, the unaudited pro forma consolidated financial information does not purport to project the future financial condition and results of operations of the Company.

 

The unaudited pro forma consolidated financial statements, including the notes thereto, should be read in conjunction with:

 

the audited consolidated financial statements of the Company for the year ended December 31, 2021;

 

the unaudited consolidated financial statements of the Company for the three months ended March 31, 2022 and 2021;

 

the audited financial statements of Alpha-5 for the year ended December 31, 2021 filed as Exhibit 99.1 to this Current Report on Form 8-K/A; and

 

the unaudited financial statements of Alpha-5 for the three months ended March 31, 2022 and 2021 filed as Exhibit 99.2 to this Current Report on Form 8-K/A.

 

The purchase price allocation takes into account the information management believes is reasonable at the time of acquisition. Nevertheless, the Company has one year from the Closing Date to make a final determination of purchase price accounting allocations; and, accordingly, adjustments may be made to the foregoing allocations for the Acquisition (the measurement period).

 

 

 

 

ProForma Condensed Consolidated Statements of Operations

For the Three Months Ended March 31, 2022 and the

Twelve Months ended December 31, 2021

(Unaudited)

 

   Three Months Ended March 31, 2022 
   PASITHEA
THERAPEUTICS CORP.
   ALPHA-5
INTEGRIN, LLC
   PRO FROMA PASITHEA
THERAPEUTICS CORP.
 
             
Revenues  $13,658   $-   $13,658 
Cost of services   12,937    -    12,937 
Gross margin   721    -    721 
                
Operating expenses:               
Selling, general and administrative   2,405,258    447,196    2,852,454 
Loss from operations   (2,404,537)   (447,196)   (2,851,733)
                
Other income:               
Change in fair value of warrant liabilities   785,297    -    785,297 
Gain on forgiveness of accounts payable   45,000    -    - 
Other income   830,297    -    830,297 
               
Loss before income taxes   (1,574,240)   (447,196)   (2,021,436)
Provision for income taxes   -    -    - 
               
Net loss  $(1,574,240)  $(447,196)  $(2,021,436)
                
Weighted-average common shares outstanding, basic and diluted             23,008,371 
Basic and diluted net loss per common share            $(0.09)
                
Comprehensive loss:               
Net loss  $(1,574,240)  $(447,196)  $(2,021,436)
Foreign currency translation   (4,513)   -    (4,513)
Comprehensive loss  $(1,578,753)  $               (447,196)  $(2,025,949)

 

2

 

 

   Twelve Months Ended December 31, 2021 
   PASITHEA THERAPEUTICS CORP.   ALPHA-5 INTEGRIN, LLC   PRO FROMA PASITHEA THERAPEUTICS CORP. 
             
Revenues  $15,062   $-   $15,062 
Cost of services   17,275    -    17,275 
Gross margin   (2,213)   -    2,213 
                
Operating expenses:               
Selling, general and administrative   4,505,200    1,703,796    6,208,996 
Loss from operations   (4,507,413)   (1,703,796)   (6,211,209)
                
Other income:                 
Change in fair value of warrant liabilities   2,334,400    -    2,334,400 
Interest expense   (508)   -    (508)
Foreign currency exchange gain/(loss)   -    1,566    1,566 
Other income   2,333,892    1,566    2,335,458 
                
Loss before income taxes   (2,173,521)   (1,705,362)   (3,878,883)
Provision for income taxes   -    -    - 
                
Net loss  $(2,173,521)  $(1,705,362)  $(3,878,883)
                
Weighted-average common shares outstanding, basic and diluted             10,404,668 
Basic and diluted net loss per common share            $(0.37)
                
Comprehensive loss:               
Net loss  $(2,173,521)  $(1,705,362)  $(3,878,883)
Foreign currency translation   (10,561)   -    (10,561)
Comprehensive loss  $(2,184,082)  $(1,705,362)  $(3,889,444)

 

3

 

 

Pro Forma Balance Sheet As of March 31, 2022

 

   PASITHEA THERAPEUTICS CORP.   ALPHA-5 INTEGRIN, LLC   PRO FORMA ADJUSTMENTS   PRO FROMA PASITHEA THERAPEUTICS CORP. 
ASSETS                
Current assets:                
Cash and cash equivalents  $50,321,206   $122,083   $-   $50,443,289 
Prepaid expenses   628,740    30,351    -    659,091 
Total current assets   50,949,946    152,434    -    51,102,380 
                      
Property and equipment   128,619    20,915    -    149,534 
Restricted cash   -    26,780    -    26,780 
Goodwill   -    -    3,547,572(1)   3,547,572 
Total assets  $51,078,565   $200,129   $3,547,572   $54,826,266 
                     
LIABILITIES AND STOCKHOLDERS’ EQUITY                    
Current liabilities:                    
Accounts payable and accrued liabilities  $433,684   $90,182    -   $433,684 
Related party payable   -    13,318    -    13,318 
Total current liabilities   433,684    103,500    -    537,184 
                     
Non-current liabilities                    
Warrant liabilities   667,503    -    -    667,503 
Total non-current liabilities   667,503    -    -    667,503 
Total liabilities   1,101,187    103,500    -    1,204,687 
                     
Commitments and Contingencies (Note 4)                    
                     
Stockholders’ equity:                    
Preferred stock, par value $0.0001, 5,000,000 shares authorized; 0 issued and outstanding   -    -    -    - 
Common stock, par value $0.0001, 495,000,000 shares authorized; June 30, 2022, and December 31, 2021, respectively 26,548,688 and 23,008,371 shares issued and outstanding as of June 30, 2022, and December 31, 2021, respectively   17,684    1,000,000    (999,674)(1) (2)    18,010 
Additional paid-in capital   53,763,513    1,250,030    2,393,845(1) (2)    57,407,388 
Accumulated other comprehensive loss   (15,074)   -    -    (15,074)
Accumulated deficit   (3,788,745)   (2,153,401)   2,153,401    (3,788,745)
Total stockholders’ equity   49,977,378    96,629    3,547,572    53,621,579 
Total liabilities and stockholders’ equity  $51,078,565   $200,129   $3,547,572   $54,826,266 

 

(1)Reflects the estimated amount of goodwill purchased as part of the acquisition and the elimination of Alpha-5’s members’ equity.

 

(2)Reflects the fair value of the 3,260,870 common shares and 1,000,000 warrants issued to the sellers of Alpha-5.

 

 

4