EX-99.2 4 tm2611367d1_ex99-2.htm EXHIBIT 99.2

 

Exhibit 99.2

 

GRID AI TECHNOLOGIES CORP.

Pro Forma Consolidated Balance Sheets (unaudited)

As of September 30, 2025

 

   Grid AI
Technologies
Corp		   GridAI, Corp   Adjustments      Consolidated 
   September 30,
2025		   September 30,
2025		   September 30,
2025		     September 30,
2025		 
ASSETS                       
                        
Current Assets:                       
Cash and cash equivalents  $2,180,789   $332,969    —      $2,513,758 
Subscription receivable   —    447,935    —       447,935 
Trade receivable   —    37,372    —       37,372 
Prepaid expenses   98,175    11,125    —       109,300 
Assets of disposal group held-for-sale   83,170,009    —    —       83,170,009 
Other receivables   —    138,145    —       138,145 
Other current assets   —    206,043    —       206,043 
Total Current Assets   85,448,973    1,173,589    —       86,622,562 
                        
Other Assets:                       
Developed technology, net   —    563,116    18,002,884   Note 3   18,566,000 
Customer relationships   —    90,854    2,215,146   Note 3   2,306,000 
DLS developed technology        -    727,000   Note 3   727,000 
Trade name   —    156,317    656,683   Note 3   813,000 
Goodwill   1,684,182    225,001    18,911,030   Note 4   19,136,031 
Investment GridAI   27,110,586    —    (27,110,586)  Note 5   — 
Deposits   49,122    —    —       49,122 
Total Other Assets   28,843,890    1,035,288    11,808,829       41,688,007 
                        
Total Assets  $114,292,863   $2,208,877   $11,808,829      $128,310,569 
                        
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)                       
                        
Current Liabilities:                       
Accounts payable  $3,474,909   $1,079,668    —      $4,554,577 
Accrued expenses   410,324    —    —       410,324 
Deferred consideration- short term   —    7,000,000    —       7,000,000 
Accrued dividend payable   1,564,753    —    —       1,564,753 
Line of credit   700,000    310,000    —       1,010,000 
Operating lease liabilities - current   135,609    —    —       135,609 
Liabilities held-for-sale   23,672,708    —    —       23,672,708 
Income tax payable   —    71,140    —       71,140 
Due to related party   —    269,898    —       269,898 
Other current liabilities   59,482    —    —       59,482 
Total Liabilities   30,017,785    8,730,706    —       38,748,491 
                        
Mezzanine Equity:                       
Series G preferred stock- Par value $0.0001 per share; 13,000 shares designated; 12,373.226 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively.   61,681,100    —    —       61,681,100 
Stockholders’ Equity (Deficit):                       
Series B preferred stock- Par value $0.0001 per share; 1,731.6 shares authorized; 475.56 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively.   255    —    —       255 
Series C preferred stock- Par value $0.0001 per share; 25,000 shares authorized; 0 shares issued and outstanding at September 30, 2025 and December 31, 2024.   —    —    —       — 
Series D preferred stock- Par value $0.0001 per share; 50 shares designated; 0 shares issued and outstanding at September 30, 2025 and December 31, 2024.   —    —    —       — 
Series E preferred stock- Par value $0.0001 per share; 50 shares designated; 0 shares issued and outstanding at September 30, 2025 and December 31, 2024.   —    —    —       — 
Series F preferred stock- Par value $0.0001 per share; 2,333 shares designated; 0 shares issued and outstanding at September 30, 2025 and December 31, 2024.   ,                 — 
Series H preferred stock-Par value $0.0001 per share, 38,801.546 shares designated and 28,604.5 shares issued and outstanding at September 30, 2025 and 0 at December 31, 2024   4    —    —       4 
Common stock - Par value $0.0001 per share; 100,000,000 shares authorized; 2,547,147 and 1,584,650 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively.   —    380,000    (380,000)  Note 6   — 
Additional paid-in capital   228,392,426    —    —       228,392,426 
Accumulated deficit   (205,798,707)   (5,508,419)   5,508,419   Note 6   (205,798,707)
Cumulative translation adjustment   —    237,047    (237,047)  Note 6     
Non-controlling interest        (1,630,457)    6,917,457   Note 7   5,287,000 
Total Stockholders’ Equity (Deficit)   22,593,978    (6,521,829)   11,808,829   Note 6   27,880,978 
Total Liabilities, Mezzanine Equity and Stockholders’ Equity (Deficit)  $114,292,863   $2,208,877   $11,808,829      $128,310,569 

 

 

 

 

GRID AI TECHNOLOGIES CORP.

Pro Forma Consolidated Statement of Operations (unaudited)

For the period January 1, 2025 to September 30, 2025

 

   GridAI
Technologies Corp
September 30,
2025		   Grid AI Corp
September 30,
2025		   Adjustments      Combined
ProForma		 
Revenue  $—   $138,697    —      $138,697 
Operating expenses:                       
Cost of services   —    320,548    —       320,548 
Research and development expenses   32,080         —       32,080 
General and administrative expenses   2,362,967    4,957,068    1,672,425   Note 8   8,992,450 
Total operating expenses   2,395,037    5,277,616    1,672,425       9,345,078 
                        
Loss from operations   (2,395,037)   (5,138,919)   (1,672,425)      (9,174,301)
                        
Other (expense) income:                       
Interest income (expense), net   (90,037)        —       (90,037)
Foreign exchange loss   —    (202,761)   —       (202,761)
Other income (expense), net   (108,818)   1,515   —       (107,303)
Financing costs        (4,334)   —       (4,334)
Total other income (expense)   (198,855)   (205,580)   —       (404,435)
                        
Current tax benefit   —    (92,748)   —       (92,748)
                        
Loss from continued operations  $(2,593,892)  $(5,251,751)  $(1,672,425)     $(9,518,068)
                        
Loss from discontinued operations net of tax   (816,808)   —    —       (816,808)
Net loss  $(3,410,700)  $(5,251,751)  $(1,672,425)     $(10,589,048)
                        
Preferred stock dividends   (254,172)   —    —       (254,172)
Net loss applicable to common shareholders  $(3,664,882)  $(5,251,751)  $(1,672,425)     $(10,598,048)
                        
Weighted average shares outstanding, basic and diluted   1,609,863    —    424,348       2,034,211 
Loss per share, basic and diluted  $(2.28)        —      $(5.21)
Loss per share from discontinued operations, basic and diluted  $(0.51)        —      $(0.40)

 

 

 

 

 

Note 1 – Basis of Presentation

 

The unaudited pro forma condensed consolidated balance sheet as of September 30, 2025 gives effect to the acquisition of Grid AI Corp. (“GridAI”) as if the transaction had occurred on September 30, 2025. The unaudited pro forma condensed consolidated statements of operations for the period from January 1, 2025 to September 30, 2025 reflect the combined results of the Company and GridAI for such period. GridAI’s substantive operations commenced on February 28, 2025; accordingly, no material operating activity is reflected for GridAI prior to that date, consistent with the financial statement footnote disclosure.

 

Note 2 – Purchase Price Allocation

 

The acquisition has been accounted for as a business combination under ASC 805. The preliminary purchase price allocation resulted in the recognition of identifiable intangible assets and goodwill as follows:

 

·Developed technology: $18,566,000

·Customer relationships: $2,306,000

·DLS developed technology: $727,000

·Trade name: $813,000

·Goodwill: $17,542,703

 

These amounts represent the excess of purchase consideration over the fair value of identifiable net assets acquired.

 

Note 3 – Intangible Asset Adjustments

 

The pro forma adjustments reflect the recognition of intangible assets to their estimated fair values in accordance with ASC 805. These adjustments adjust the carrying value of intangible assets to the following fair values as determined in the purchase price allocation:

 

·Developed technology: $18,566,000

·Customer relationships: $2,306,000

·DLS developed technology: $727,000

·Trade name: $813,000

 

These amounts are reflected within “Developed technology, net,” “Customer relations,” and “Trade name” in the pro forma balance sheet.

 

Note 4 – Goodwill Recognition

 

Goodwill of $17,542,703 represents the excess of the purchase consideration over the fair value of identifiable net assets acquired. The goodwill recognized is primarily attributable to expected synergies, assembled workforce, and future economic benefits from GridAI.

 

Note 5 – Elimination of Investment in GridAI

 

The pro forma adjustments include the elimination of the historical investment in GridAI of $27,110,586, which is replaced by the underlying assets and liabilities of GridAI in consolidation.

 

 

 

 

Note 6 – Equity Adjustments

 

The pro forma adjustments reflect:

 

·Elimination of GridAI historical equity balances, including:

oAdditional paid-in capital: $(4,831,875)

oAccumulated deficit: $3,289,116

oCumulative translation adjustment: $(240,078)

·Recognition of non-controlling interest of $5,287,000 representing the portion of GridAI not acquired.

 

Note 7 – Non-Controlling Interest

 

The pro forma balance sheet reflects non-controlling interest of $5,287,000, representing the equity interest retained by minority shareholders in GridAI following the acquisition.

 

Note 8– Intangible Asset Amortization

 

The pro forma adjustment of $1,672,425 reflects incremental amortization expense related to the identifiable intangible assets recognized in the acquisition of GridAI, as if the acquisition had occurred on January 1, 2025. This adjustment is reflected within general and administrative expenses in the unaudited pro forma condensed consolidated statement of operations.

 

This adjustment represents the difference between amortization based on the preliminary fair values assigned to the acquired intangible assets and the historical amortization recorded by GridAI and is reflected within general and administrative expenses.