EX-99.1 2 ea020524201ex99-1_samsara.htm NOTES TO THE AUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS

Exhibit 99.1

 

Samsara Luggage Inc. 

 

Notes to the audited Pro Forma Condensed Combined Financial Statements

 

On February 23, 2024, Samsara Luggage, Inc., a Nevada corporation (the “Company”), entered into a Stock Purchase Agreement (the “SPA”) with Ilustrato Pictures International, Inc., a Nevada corporation (“ILUS”) which owns 71.1% of the Company. Simultaneous with the execution and delivery of the SPA, the Company acquired all the equity interests in seven companies owned by ILUS:

 

  ● Firebug Mechanical Equipment LLC 

 

  ● Georgia Fire & Rescue Supply LLC

 

  ● Bright Concept Detection and Protection System LLC

 

  ● Bull Head Products Inc

 

  ● E-Raptor

 

  ● The Vehicle Converters

 

  ● AL Shola Al Modea Safety and Security LLC, the only entity in which ILUS does not own 100% but only 51% of the membership interests.

 

The acquisition by the Company of these shares and membership interests, referred to by ILUS as the Emergency Response Technologies “ERT.

 

The consideration for the sale of the equity interests in the foregoing companies was paid by the Company by issuing to ILUS 350,000 restricted shares of Series B stock (the “Shares”) and further milestone payment/s should applicable performance targets referenced in Exhibit B be achieved. As a result, ILUS currently owns 89.1% of the Company’s voting rights.

 

Given the related party nature of the transaction, neither party provided representations and warranties customary of a sale of operating companies.

  

NOTE 1. BASIS OF PRO FORMA PRESENTATION

 

The audited pro forma condensed combined financial statements are based on the Company’s and Emergency Response Technologies historical consolidated financial statements as adjusted to give effect to the acquisition of Emergency Response Technologies and the shares issued as part of the acquisition. The audited pro forma combined statements of operations and balance sheet for the year ended December 31, 2023, give effect to the Emergency Response Technologies acquisition as if it had occurred on January 1, 2023.

 

Historical financial information has been adjusted in the pro forma balance sheet to pro forma events that are: (1) directly attributable to the Acquisition; and (2) factually supportable.

 

The pro forma adjustments presented in the pro forma combined balance sheet and statement of operations are described in Note 4 — Pro Forma Adjustments.

 

 

 

 

NOTE 2. ACCOUNTING PERIODS PRESENTED

 

Certain pro forma adjustments were made to conform accounting policies to the Company’s accounting policies as noted below.

 

The audited pro forma condensed combined balance sheet as of December 31, 2023, is presented as if the acquisition had occurred on January 1, 2023, and combines the balance sheet of the Company at December 31, 2023 and the balance sheet of the Emergency Response Technologies at December 31, 2023.

 

The audited pro forma condensed combined statement of operations for the year ended December 31, 2023, has been prepared by combining the Company’s consolidated statement of operations for the year ended December 31, 2023, with the statement of operations of Emergency Response Technologies for the year ended December 31, 2023.

 

NOTE 3. PRELIMINARY PURCHASE PRICE ALLOCATION

 

On February 23, 2024, Samsara Luggage, Inc., a Nevada corporation (the “Company”), entered into a Stock Purchase Agreement (the “SPA”) with Ilustrato Pictures International, Inc., a Nevada corporation (“ILUS”) which owns 71.1% of the Company. Simultaneous with the execution and delivery of the SPA, the Company acquired all the equity interests in seven companies owned by ILUS –

 

  ● Firebug Mechanical Equipment LLC 

 

  ● Georgia Fire & Rescue Supply LLC

 

  ● Bright Concept Detection and Protection System LLC

 

  ● Bull Head Products Inc

 

  ● E-Raptor

 

  ● The Vehicle Converters

 

  ● AL Shola Al Modea Safety and Security LLC, the only entity in which ILUS does not own 100% but only 51% of the membership interests.

 

The acquisition by the Company of these shares and membership interests, referred to by ILUS as the Emergency Response Technologies “ERT.

 

The consideration for the sale of the equity interests in the foregoing companies was paid by the Company by issuing to ILUS 350,000 restricted shares of Series B stock (the “Shares”) and further milestone payment/s should applicable performance targets referenced in Exhibit B be achieved. As a result, ILUS currently owns 88.91% of the Company’s voting rights.

 

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NOTE 4. PRO FORMA ADJUSTMENTS

 

The pro forma adjustments are based on our preliminary estimates and assumptions that are subject to change. The following adjustments have been reflected in the audited pro forma condensed combined financial information:

 

  a) To give effect of consolidation as per general accepted principles of consolidation, purchase consideration, goodwill and minority Interest has been recorded.

 

SAMSARA LUGGAGE INC.
AUDITED PRO FORMA COMBINED BALANCE SHEET
 
   Samsara
Luggage
Inc.		   Emergency
Response
Technologies
Inc.		   Pro Forma
Adjustments		   Pro Forma
Combined		 
   31-Dec-23   31-Dec-23       31-Dec-23 
ASSETS                
Current assets                
Cash and cash equivalents   12,000    204,632         216,632 
Other current assets        2,314,754         2,314,754 
Total current assets   12,000    2,519,386         2,531,386 
                     
Non- Current assets                    
Property Plant & Equipment        89,163         89,163 
Intangible Assets             8,534,067    8,534,067 
Total other assets   -    89,163    8,534,067    8,623,230 
Total Assets   12,000    2,608,549    8,534,067    11,154,616 
LIABILITIES AND STOCKHOLDERS’ DEFICIT                    
Current liabilities                    
Accounts payable and accrued liabilities   327,000    1,662,596         1,989,596 
Other Current Liabilities   146,000    951,080    -    1,097,080 
Related party payables   193,000              193,000 
Total current liabilities   666,000    2,613,676    -    3,279,676 
                     
Long Term liabilities                    
Convertible Notes   1,398,000    -    -    1,398,000 
Other long term liabilities        145,662    -    145,662 
Total Long-Term Liabilities   1,398,000    145,662    -    1,543,662 
Stockholders’ Equity                    
Convertible and redeemable preferred shares, $0.0001 par value, 1,000,000 shares authorized, 80,698 and 221,374 shares outstanding at December 31, 2023 and December 31, 2022, respectively   66,000    305,009    (305,009)   66,000 
Common stock, authorized 7,500,000,000 shares, $0.0001 par value as of December 31, 2023 and December 31, 2022, respectively; 13,922,414 issued and outstanding as of December 31, 2023 and 4,406,312 issued and outstanding as of December 31, 2022.   1,000    -    -    1,000 
Stock Payable             8,400,000    8,400,000 
Additional paid-in capital   10,625,000    -    -    10,625,000 
Retained Earnings/ accumulated Deficit   (12,744,000)   (455,799)   455,799    (12,744,000)
Minority Interest             (16,723)   (16,723)
Total stockholders’ Equity   (2,052,000)   (150,789)   8,534,067    6,331,277 
Total liabilities and stockholders’ Equity   12,000    2,608,549    8,534,067    11,154,616 

 

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SAMSARA LUGGAGE INC.

AUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS

 

   Samsara
Luggage
Inc.		   Emergency
Response
Technologies
Inc.		   Proforma
Adjustments		   Pro Forma
Combined		 
   31-Dec-23   31-Dec-23       31-Dec-23 
Revenue   361,000    6,586,037                   6,947,037 
    -                
Cost of revenues   208,000    4,439,162         4,647,162 
    -                
Gross profit   153,000    2,146,875         2,299,875 
Operating expenses:                    
Professional fees        -         - 
Product Development   -    -           
General and administrative   652,000    2,176,025         2,828,025 
Total operating expenses   652,000    2,176,025         2,828,025 
                     
Profit/ Loss from Operations   (499,000)   (29,150)        (528,150)
                     
Non-Operating expenses:                    
Interest on Convertible Notes   227,000    -         227,000 
Impairment of assets ( Intellectual Property)   -    755,730         755,730 
Loss on License Agreement        -         - 
Depreciation   79,000    43,041         122,041 
Total non- operating expense   306,000    798,771         1,104,771 
Non-Operating Income:                    
Other Non-Operating Income   -    1,691         1,691 
Reversal of derivative Liability   661,000    -         661,000 
Net loss/ profit   (144,000)   (826,231)        (970,231)

 

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