Exhibit 99.4

 

    As of March 31, 2024  
    Yoshiharu Actual     LV Entities Actual     Combined     Adjustment       As adjusted  
ASSETS                                
Current assets                                          
Cash   $ 1,355,738       9,000       1,364,738       (179,648 )  b,a   $ 1,185,090  
Accounts receivable     94,135       68,852       162,987       (68,852 )  a     94,135  
Inventories     77,151       12,785       89,936       -    b     89,936  
Total current assets     1,527,024       90,637       1,617,661       (248,500 )       1,369,161  
                                           
Non-Current Assets:                                          
Property and equipment, net     4,278,910       1,098,070       5,376,980       -    b     5,376,980  
Operating lease right-of-use asset, net     5,322,909       1,409,288       6,732,197       -    b     6,732,197  
Goodwill     -       -       -       1,985,645    b,c     1,985,645  
Intangible assets     -       -       -       531,051    b     531,051  
Other assets     1,584,395       21,571       1,605,966       (749,723 )  a     856,243
Total non-current assets     11,186,214       2,528,929       13,715,143       1,766,973         15,482,116  
Total assets   $ 12,713,238       2,619,566       15,332,804       1,518,473         16,851,277  
                                           
LIABILITIES AND STOCKHOLDERS’ DEFICIT                                          
Current Liabilities:                                          
Accounts payable and accrued expenses   $ 674,989       262,735       937,724       (262,735 )  a   $ 674,989  
Line of Credit     1,000,000       103,214       1,103,214       (103,214 )  a     1,000,000  
Current portion of operating lease liabilities     589,561       201,562       791,123       -    b     791,123  
Current portion of bank notes payables     685,978       -       685,978       -         685,978  
Current portion of loan payable, EIDL     7,931       33,171       41,102       (33,171 )  a     7,931  
Loans payable to financial institutions     365,470       -       365,470       -         365,470  
Loans payable to seller     -       -       -       600,000    b     600,000  
Due to related party     81,097       -       81,097       -         81,097  
Other payables     65,700       -       65,700       -         65,700  
Total current liabilities     3,470,726       600,682       4,071,408       200,880         4,272,288  
Operating lease liabilities, less current portion     5,534,934       1,236,477       6,771,411       -    b     6,771,411  
Bank notes payables, less current portion     1,450,826       -       1,450,826       900,000    b     2,350,826  
Loan payable, EIDL, less current portion     415,329       2,692,626       3,107,955       (2,692,626 )  a     415,329  
Convertible note     -       -       -       1,200,000    b     1,200,000  
Total liabilities     10,871,815       4,529,785       15,401,600       (391,746 )       15,009,854  
                                           
Stockholders’ Equity                                          
Class A Common Stock - $0.0001 par value; 49,000,000 authorized shares; 1,230,246 and 1,228,246 shares issued and outstanding at December 31, 2023 and December 31, 2022     124       -       124       -         124  
Class B Common Stock - $0.0001 par value; 1,000,000 authorized shares; 100,000 shares issued and outstanding at December 31, 2023 and at December 31, 2022     10       -       10       -         10  
Additional paid-in-capital     12,058,267       3,452,868       15,511,135       (3,452,868 )  a     12,058,267  
Accumulated deficit     (10,216,978 )     (5,363,087 )     (15,580,065 )     5,363,087    a     (10,216,978 )
Total stockholders’ equity     1,841,423       (1,910,219 )     (68,796 )     1,910,219         1,841,423  
Total liabilities and stockholders’ equity   $ 12,713,238       2,619,566       15,332,804       1,518,473         $16,851,277  

 

 
 

 

    For the three months ended March 31, 2024  
    Yoshiharu Actual     LV Entities Actual     Combined     Adjustment     As adjusted  
Revenue:                              
Food and beverage   $ 2,811,609       1,353,542       4,165,151                   -     $ 4,165,151  
Total revenue     2,811,609       1,353,542       4,165,151       -       4,165,151  
                                         
Restaurant operating expenses:                                        
Food, beverages and supplies     667,892       386,795       1,054,687       -       1,054,687  
Labor     1,286,534       727,705       2,014,239       -       2,014,239  
Rent and utilities     318,568       129,150       447,718       -       447,718  
Delivery and service fees     143,361       22,743       166,104       -       166,104  
Depreciation     170,682       49,090       219,772       -       219,772  
Total restaurant operating expenses     2,587,037       1,315,483       3,902,520       -       3,902,520  
                                         
Net restaurant operating income     224,572       38,059       262,631       -       262,631  
                                         
Operating expenses:                                        
General and administrative     920,401       68,570       988,971       -       988,971  
Related party compensation     42,154       -       42,154       -       42,154  
Advertising and marketing     33,904       20,563       54,467       -       54,467  
Total operating expenses     996,459       89,133       1,085,592       -       1,085,592  
                                         
Income (loss) from operations     (771,887 )     (51,074 )     (822,961 )     -       (822,961 )
                                         
Other expense:                                        
Interest     (104,318 )     (30,894 )     (135,212 )     -       (135,212 )
Total other income     (104,318 )     (30,894 )     (135,212 )     -       (135,212 )
                                         
Loss before income taxes     (876,205 )     (81,968 )     (958,173 )     -       (958,173 )
                                         
Income tax provision     -       -       -       -       -  
                                         
Net loss     (876,205 )     (81,968 )     (958,173 )     -       (958,173 )
                                         
Loss per share:                                        
Basic and diluted     (0.65 )     -       (0.71 )     -       (0.71 )
                                         
Weighted average number of common shares outstanding:                                        
Basic and diluted     1,341,488       -       1,341,488       -       1,341,488  

 

a Represents the assets and liabilities that are not acquired by the Company.

 

b Represents purchase adjustments

 

Cash  $900,000   Fixed assets gross   1,708,538 
Loans payable to seller   600,000   Operating lease right-of-use asset, net   1,483,632 
Bank notes payables   900,000   Goodwill   1,917,365 
Convertible note   1,200,000   Operating lease liabilities   (1,509,535)
Total purchase price  $3,600,000   Acquired assets, net   3,600,000 

 

c Goodwill adjustment is subject to appropriate asset valuation based on purchase price after valuation is completed

 

NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS

 

1. Basis of Presentation

 

The Purchase will be accounted for as an acquisition, in accordance with GAAP. The Company was deemed the accounting acquirer in the Purchase based on an analysis of the criteria outlined in Accounting Standards Codification (“ASC”) 805, Business Combinations. LV Entities were deemed to be the predecessor entity of the Company. Accordingly, the historical financial statements of the LV Entities will become the historical financial statements of the Company, upon the consummation of the Purchase. Under the acquisition method of accounting, the certain assets and liabilities of the LV Entities will be recorded at their fair values measured as of the acquisition date. The excess of the purchase price over the estimated fair values of the net assets acquired, if applicable, will be recorded as goodwill.

 

 
 

 

The unaudited pro forma combined balance sheet as of March 31, 2024, assumes that the Purchase occurred on March 31, 2024. The unaudited pro forma combined statement of operations for the three months ended March 31, 2024 reflects pro forma effect to the Purchase as if it had been completed on January 1, 2024.

 

Management has made significant estimates and assumptions in its determination of the pro forma adjustments. As the unaudited pro forma combined financial information has been prepared based on these preliminary estimates, the final amounts recorded may differ materially from the information presented. The unaudited pro forma combined financial information does not give effect to any anticipated synergies, operating efficiencies, tax savings, or cost savings that may be associated with the Purchase.

 

The pro forma adjustments reflecting the consummation of the Purchase are based on certain currently available information and certain assumptions and methodologies that the Company believes are reasonable under the circumstances. The unaudited pro forma adjustments, which are described in the accompanying notes, may be revised as additional information becomes available and is evaluated. Therefore, it is likely that the actual adjustments will differ from the pro forma adjustments and it is possible the difference may be material. The Company believes that its assumptions and methodologies provide a reasonable basis for presenting all of the significant effects of the Purchase based on information available to management at the time and that the pro forma adjustments give appropriate effect to those assumptions and are properly applied in the unaudited pro forma combined financial information.

 

The unaudited pro forma combined financial information is not necessarily indicative of what the actual results of operations and financial position would have been had the Purchase taken place on the dates indicated, nor are they indicative of the future consolidated results of operations or financial position of the combined company. They should be read in conjunction with the historical financial statements and notes thereto of the Company’s Form 10-K and Form 10-Q and the LV Entities included in this prospectus.

 

The following unaudited pro forma combined financial information has been prepared in accordance with Article 11 of Regulation S-X, as amended by the final rule, Release No. 33-10786 “Amendments to Financial Disclosures about Acquired and Disposed Businesses.” Release No. 33-10786 replaces the existing pro forma adjustment criteria with simplified requirements to depict the accounting for the Purchase (“Transaction Accounting Adjustments”) and present the reasonably estimable synergies and other transaction effects that have occurred or are reasonably expected to occur (“Management’s Adjustments”). The Company has elected not to present Management’s Adjustments and will only be presenting Transaction Accounting Adjustments in the following unaudited pro forma combined financial information.

 

2. Accounting Policies

 

Upon consummation of the Purchase, management will perform a comprehensive review of the accounting policies of the two entities. As a result of the review, management may identify differences between the accounting policies of the two entities which, when conformed, could have a material impact on the financial statements of the combined company. Based on its initial analysis, management did not identify any differences that would have a material impact on the unaudited pro forma combined financial information. As a result, the unaudited pro forma combined financial information does not assume any differences in accounting policies.

 

3. Preliminary Purchase Price Allocation

 

The preliminary purchase price of the LV Entities has been allocated to the assets acquired and liabilities assumed for purposes of this pro forma financial information based on their estimated relative fair values. The purchase price allocations herein are preliminary. The final purchase price allocations for the Purchase will be determined after completion of a thorough analysis to determine the fair value of all assets acquired and liabilities assumed but in no event later than one year following the closing date of the acquisition. Accordingly, the final acquisition accounting adjustments could differ materially from the accounting adjustments included in the pro forma financial statements presented herein. Any increase or decrease in the fair value of the assets acquired and liabilities assumed, as compared to the information shown herein, could also change the portion of purchase price allocable to goodwill and could impact the operating results of the Company following the acquisition due to differences in purchase price allocation, depreciation and amortization related to some of these assets and liabilities.

 

Purchase Price      
Cash   $ 900,000  
Loans payable to seller     600,000  
Bank notes payables     900,000  
Convertible note     1,200,000  
Total purchase price   $ 3,600,000  
         
Purchase Price Allocation        
Inventory and other assets   $ 13,985  
Fixed assets, net     1,098,070  
Operating lease right-of-use asset, net     1,409,288  
Goodwill     1,985,645  
Intangible assets     531,051  
Operating lease liabilities     (1,438,039 )
Acquired assets, net   $ 3,600,000  

 

 
 

 

4. Adjustments to Unaudited Pro forma combined Financial Information

 

The unaudited pro forma combined financial information has been prepared to illustrate the effect of the Purchase and has been prepared for informational purposes only.

 

The pro forma combined provision for income taxes does not necessarily reflect the amounts that would have resulted had the combined company filed consolidated income tax returns during the periods presented.

 

The pro forma basic and diluted earnings per share amounts presented in the unaudited pro forma combined statement of operations are based upon the number of the combined company’s shares outstanding, assuming the Purchase occurred on January 1, 2024.

 

Transaction Adjustments

 

  (a) Reflects the assets and liabilities that are not acquired by the Company.
  (b) Reflects the purchase adjustments.
  (c) Goodwill adjustment is subject to appropriate asset valuation based on purchase price after valuation is completed

 

5. Pro Forma Earnings per Share

 

Basic earnings per share is computed based on the historical weighted average number of shares of common stock outstanding during the period, and the issuance of additional shares in connection with the Purchase, assuming the shares were outstanding since January 1, 2024. As the Purchase is being reflected as if it had occurred at the beginning of the period presented, the calculation of weighted average shares outstanding for basic and diluted net loss per share assumes that the shares issuable in connection with the Purchase have been outstanding for the entire period presented.