# EDGAR Filing Document

**Accession Number:** 0001138608
**File Stem:** 0001477932-23-000136
**Filing Date:** 2023-1
**Character Count:** 102425
**Document Hash:** 83fb32b8dc3fd85b12458635eaf5ab0d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001477932-23-000136.hdr.sgml**: 20230105

**ACCESSION NUMBER**: 0001477932-23-000136

**CONFORMED SUBMISSION TYPE**: 8-K/A

**PUBLIC DOCUMENT COUNT**: 18

**CONFORMED PERIOD OF REPORT**: 20221026

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230105

**DATE AS OF CHANGE**: 20230105

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BLOOMIOS, INC.
- **CENTRAL INDEX KEY:** 0001138608
- **STANDARD INDUSTRIAL CLASSIFICATION:** MEDICINAL CHEMICALS & BOTANICAL PRODUCTS [2833]
- **IRS NUMBER:** 874696476
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-50026
- **FILM NUMBER:** 23512236

**BUSINESS ADDRESS:**
- **STREET 1:** 701 ANACAPA STREET, SUITE C
- **CITY:** SANTA BARBARA
- **STATE:** CA
- **ZIP:** 93101
- **BUSINESS PHONE:** 805-222-6330

**MAIL ADDRESS:**
- **STREET 1:** 701 ANACAPA STREET, SUITE C
- **CITY:** SANTA BARBARA
- **STATE:** CA
- **ZIP:** 93101

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** XLR MEDICAL CORP.
- **DATE OF NAME CHANGE:** 20040917

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** RELAY MINES LTD
- **DATE OF NAME CHANGE:** 20010417

?xml version="1.0" encoding="utf-8"?blms_8ka.htm

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K/A**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of**

**the Securities Exchange Act of 1934**

**Date of report (Date of earliest event reported): October 26, 2022**

---

| |
|:---|
| **BLOOMIOS, INC.** |
| (Exact name of registrant as specified in its charter) |

---

---

| | | |
|:---|:---|:---|
| **Nevada** | **000-50026** | **87-4696476** |
| (State or other jurisdiction<br>of incorporation) | (Commission<br>File Number) | (I.R.S. Employer<br>Identification Number) |

---

---

| |
|:---|
| **<u>701 Anacapa Street, Suite C, Santa Barbara, CA 93101</u>** |
| (Address of principal executive offices) |

---

---

| |
|:---|
| **<u>(805) 222-6330</u>** |
| (Registrant's telephone number, including area code) |

---

**<u>Not Applicable</u>**<br>(Former name or former address, if changed since last report)<br>

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions.

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**EXPLANATORY NOTE**

This Amendment No. 1 to the Current Report on Form 8-K/A amends the Current Report on Form 8-K of Bloomios, Inc. (the "Company") filed on October 31, 2022 (the "Original Report"). The Original Report was filed to report the completion of the Company's purchase of Infusionz, LLC, a Colorado limited liability company ("Infusionz"). In response to parts (a) and (b) of Item 9.01 of the Original Report, the Company stated that it would file the required financial information by amendment, as permitted by Items 9.01(a) and 9.01(b) of Form 8-K. The Company hereby amends the Original Report in order to provide part (a) and (b) of Item 9.01. This Amendment No. 1 does not amend any other items of the Original Report and all other information previously reported in or filed with the Original Report is hereby incorporated by reference to this Form 8-K/A.

The pro forma financial information included in this Amendment No. 1 has been presented for informational purposes only, as required by Form 8-K. It does not purport to represent the actual results of operations that the Company and Infusionz would have achieved had the companies been combined during the periods presented in the pro forma financial information and is not intended to project the future results of operations that the combined company may achieve after completion of the acquisition.

**Section 9 – Financial Statements and Exhibits**

**Item 9.01 Financial Statements and Exhibits.**

---

| | |
|:---|:---|
| **(a)** | **Financial Statements of Businesses Acquired** |
|  | The audited financial statements of Infusionz as of and for the years ended June 30, 2021 and 2022, and the related Independent Auditor's Report are filed hereto as Exhibit 99.1 and incorporated herein by reference. |
| **(b)** | **Financial Statements of Businesses Acquired** |
|  | The unaudited financial statements of Infusionz as of and for the three months ended September 30, 2022, are filed hereto as Exhibit 99.2 and incorporated herein by reference. |
| **(c)** | **Pro Forma Financial Information** |
|  | The unaudited Pro Forma Condensed Combined Balance Sheet of Bloomios, Inc. and Infusionz as of September 30, 2022, Unaudited Pro Forma Condensed Combined Statement of Income of Bloomios, Inc. and Infusionz for the year ended June 30, 2022, Unaudited Pro Forma Condensed Combined Statement of Income of Bloomios, Inc. and Infusionz for the three months ended September 30, 2022 are filed hereto as Exhibit 99.3 and incorporated herein by reference. |
| **(d)** | **Exhibits** |

---

---

| | |
|:---|:---|
| **Exhibit No.** | **Exhibit Description** |
| [23.1](blms_ex231.htm) | [Consent of B F Borgers CPA PC](blms_ex231.htm) |
| [99.1](blms_ex991.htm) | [Audited financial statements of Infusionz as of and for the years ended June 30, 2021 and 2022, and the related Independent Auditor's Report](blms_ex991.htm) |
| [99.2](blms_ex992.htm) | [The unaudited financial statements of Infusionz as of and for the three months ended September 30, 2022.](blms_ex992.htm) |
| [99.3](blms_ex993.htm) | [Unaudited Pro Forma Condensed Balance Sheet of Bloomios, Inc. and Infusionz as of September 30, 2022, Unaudited Pro Forma Condensed Combined Statement of Income of Bloomios, Inc. and Infusionz for the year ended June 30, 2022, and the Unaudited Pro Forma Condensed Combined Statement of Income of Bloomios, Inc. and Infusionz for the three months ended September 30, 2022](blms_ex993.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL Document). |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | |
|:---|:---|
|  | **BLOOMIOS, INC.** |
| Dated: January 5, 2023 | */s/ Michael Hill* |
|  | Name: Michael Hill |
|  | Title: Chief Executive Officer |

---

## Exhibit 23.1

&nbsp;&nbsp;&nbsp;&nbsp;**EXHIBIT 23.1**

**Independent Auditor's Report**

***To the Members' and Board of Directors of Infusionz, LLC***

**<u>Opinion</u>**

We have audited the accompanying financial statements of Infusionz, LLC which comprise the balance sheets as of June 30, 2022 and 2021, and the related statements of operations, statement of Stockholders' equity, and cash flows for the years then ended, and the related notes to the financial statements.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Infusionz, LLC as of June 30, 2022 and 2021, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United State of America.

**<u>Basis for Opinion</u>**

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Infusionz, LLC and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

**<u>Management's Responsibility for the Financial Statements</u>**

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

**<u>Auditor's Responsibility for the Audit of the Financial Statements</u>**

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards, we:

o Exercise professional judgment and maintain professional skepticism throughout the audit.

o Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

o Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Infusionz, LLC internal control. Accordingly, no such opinion is expressed.

o Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

**/s/ B F Borgers CPA PC**

**Certified Public Accountants**

**Lakewood, CO**

**January 5, 2023**

**We have served as the Company's auditor since 2019**

<br> <u> Page 2 of 2</u>

## Exhibit 99.1

&nbsp;&nbsp;&nbsp;&nbsp;**EXHIBIT 99.1**

**INFUSIONZ LLC**

**FINANCIAL STATEMENTS**

**FISCAL YEARS ENDED JUNE 30, 2022 AND 2021**

**AND**

**INDEPENDENT AUDITORS' REPORT**

**INFUSIONZ LLC**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
| **Report of Independent Registered Public Accounting Firm** | 3  |
| **Financial Statements** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Balance Sheets | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp; Statements of Operations | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp; Statements of Changes in Members' Interest | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp; Statements of Cash Flows | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp; Notes to Financial Statements | 9 |

---

**Independent Auditor's Report**

***To the Members' and Board of Directors of Infusionz, LLC***

**<u>Opinion</u>**

We have audited the accompanying financial statements of Infusionz, LLC which comprise the balance sheets as of June 30, 2022 and 2021, and the related statements of operations, statement of Stockholders' equity, and cash flows for the years then ended, and the related notes to the financial statements.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Infusionz, LLC as of June 30, 2022 and 2021, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United State of America.

**<u>Basis for Opinion</u>**

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Infusionz, LLC and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

**<u>Management's Responsibility for the Financial Statements</u>**

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

**<u>Auditor's Responsibility for the Audit of the Financial Statements</u>**

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards, we:

o Exercise professional judgment and maintain professional skepticism throughout the audit.

o Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

o Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Infusionz, LLC internal control. Accordingly, no such opinion is expressed.

o Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

**/s/ B F Borgers CPA PC**

**Certified Public Accountants**

**Lakewood, CO**

**January 5, 2023**

**We have served as the Company's auditor since 2019**

**INFUSIONZ LLC**

**BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2022** | **June 30,**<br>**2021** |
| **ASSETS** |  |  |
| **Current assets** |  |  |
| Cash | $107133 | $642802 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net (allowance for doubtful accounts was $15,000 at June 30, 2022 and June 30, 2021, respectively) | 106804 | 106886 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid and other expenses | 3258 | 8315 |
| &nbsp;&nbsp;&nbsp;&nbsp; Inventory | 82082 | 141043 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 299277 | 899046 |
| &nbsp;&nbsp;&nbsp;&nbsp; Property and equipment, net | 59976 | 78042 |
| &nbsp;&nbsp;&nbsp;&nbsp; Right-of-use asset | 10290 | 28430 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $369543 | $1005518 |
| **LIABILITIES AND MEMBERS' EQUITY** |  |  |
| **Current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $- | $45370 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities |  | 71173 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued compensation | 25288 | 43547 |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 58082 | 171415 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 83370 | 331505 |
| Notes payable, net of current portion |  | 297100 |
| Operating lease payable, net of current portion | 10817 | 29273 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total long-term liabilities | 10817 | 326373 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | $94187 | $657878 |
| Commitments and Contingencies (Note 7) |  |  |
| **Members' equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Members' interest | 28511 | 28511 |
| &nbsp;&nbsp;&nbsp;&nbsp; Retained earnings | 246845 | 319129 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total members' equity | 275356 | 347640 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and members' equity | $369543 | $1005518 |

---

See accompanying notes to financial statements.

**INFUSIONZ LLC**

**STATEMENTS OF OPERATIONS**

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| **Revenue** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Product sales | $3688715 | $4134464 |
| **Total revenues** | 3688715 | 4134464 |
| &nbsp;&nbsp;&nbsp;&nbsp; Product costs | 2131027 | 2449020 |
| **Cost of revenues** | 2131027 | 2449020 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross profit | 1557688 | 1685444 |
| **Operating expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Selling, general and administrative expenses | 892903 | 1432107 |
|  | 892903 | 1432107 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from operations | 664785 | 253337 |
| Other expense (income), net |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest expense (income), net | 3049 | 3436 |
| &nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of assets | (5500) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gain on SBA PPP loan forgiveness | (300995) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other (income) expense, net | (303446) | 3436 |
| Net income before income tax | 968231 | 249901 |
| &nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | - | - |
| Net income | $968231 | $249901 |

---

*See accompanying notes to financial statements.*

**INFUSIONZ LLC**

**STATEMENTS OF MEMBERS' INTEREST**

---

| | | | |
|:---|:---|:---|:---|
|  | <br>**Members'**<br>**Interest** | <br>**Retained**<br>**Earnings** | **Total**<br>**Members'**<br>**Equity** |
| **<u>2020</u>** |  |  |  |
| **Balance, June 30, 2020**  | 28511 | $69228 | $97739 |
| Member contribution |  |  |  |
| Net income | - | 249901 | 249901 |
| **Balance, June 30, 2021**  | $28511 | $319129 | $347640 |
| Member contribution |  | (1040515) | (1040515) |
| Net income | - | 968231 | 968231 |
| **Balance, June 30, 2022**  | 28511 | $246845 | $275356 |

---

*See accompanying notes to financial statements.*

**INFUSIONZ LLC**

**STATEMENTS OF CASH FLOW**

---

| | | |
|:---|:---|:---|
|  | **June 30,** | **June 30,** |
|  | **2022** | **2021** |
| **Cash flows from operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income | $968231 | $249901 |
| &nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; provided by operating activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 17298 | 19557 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of equipment | (5500) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on forgiveness of SBA PPP loan | (300995) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Changes in assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | 82 | (54414) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, related party | 23197 | 1411 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventory | 58961 | 33802 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | (149363) | 2294 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | (113333) | 58992 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities | 498578 | 311543 |
| **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Acquisition of property and equipment | 6268 | 3137 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in investing activities | 6268 | 3137 |
| **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Repayment of debt |  | (84000) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution to member | (1040515) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by financing activities | (1040515) | (84000) |
| **Net increase in cash**  | (535669) | 230680 |
| **Cash, beginning of period** | 642802 | 412122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Cash, end of period** | $107133 | $642802 |
| **Supplemental cash flow disclosures** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash paid for interest | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash paid for income taxes | $- | $- |

---

*See accompanying notes to financial statements.*

**INFUSIONZ LLC**

**NOTES TO FINANCIAL STATEMENTS**

**1. ORGANIZATION AND BUSINESS**

***Description of the Business***

Infusionz LLC (the "Company") was incorporated in the state of Colorado in May 2016. The Company develops, manufactures and markets products based on Hemp-based Cannabidiol ("CBD") including, but not limited to edibles, tinctures, topicals, capsules and pet products. The Company also manufactures CBD products for other businesses under their brand and specifications.

On July 1, 2020, the Company was purchased by Upexi, Inc. a Nevada corporation. Upexi, Inc. is the single member of the Company.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

***Basis of Presentation***

The financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP").

***Use of Estimates***

The preparation of the financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results may differ from these estimates. Significant estimates include the valuation of inventory and the allowance for doubtful accounts.

***Concentrations of Credit Risk***

Financial instruments, which potentially subject the Company to concentrations of credit risk, are accounts receivable and revenue from individual customers in excess of 10%.

***Fair Value of Financial Instruments***

The Company adopted the provisions of ASC Topic 820, "Fair Value Measurements and Disclosures," which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value, and expands disclosure of fair value measurements.

The estimated fair value of certain financial instruments, including cash and cash equivalents, are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments.

ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value:

**INFUSIONZ LLC**

**NOTES TO FINANCIAL STATEMENTS**

Level 1 — quoted prices in active markets for identical assets or liabilities

Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable

Level 3 — inputs that are unobservable (for example cash flow modeling inputs based on assumptions)

The Company has no assets or liabilities valued at fair value on a recurring basis.

***Cash and Cash Equivalents***

For purposes of the statements of cash flows, the Company considers amounts held by financial institutions and short-term investments with an original maturity of three months or less when purchased to be cash and cash equivalents. As of June 30, 2022 and 2021, the Company had no cash equivalents.

 ***Accounts Receivable***

Generally, the Company requires payment prior to shipment. However, in certain circumstances, the Company extends credit terms of 10 to 30 days after shipment to companies located throughout the U.S. Accounts receivable consists of trade accounts arising in the normal course of business. Accounts for which no payments have been received after 30 days from product shipment are considered delinquent and customary collection efforts are initiated. Accounts receivable are carried at original invoice amount less a reserve made for doubtful receivables based on a review of all outstanding amounts on a quarterly basis.

Management has determined the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer's financial condition and credit history, and current economic conditions. As of June 30, 2022, and 2021, the Company maintained an allowance for doubtful accounts related to accounts receivable in the amount of $15,000.

***Inventory***

Inventory is stated at lower of cost or net realizable value, with cost being determined on a weighted average cost basis. Cost includes costs directly related to manufacturing and distribution of the products. Primary costs include raw materials and packaging.

The Company performs an assessment of inventory obsolescence to measure inventory at the lower of cost or net realizable value. Factors considered in the determination of obsolescence include slow-moving or non-marketable items. There was no obsolete inventory written off during the periods ended June 30, 2022 and 2021.

**INFUSIONZ LLC**

**NOTES TO FINANCIAL STATEMENTS**

***Property & Equipment***

Property and equipment are stated at cost less accumulated depreciation and impairment, if applicable. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. Depreciation is provided on a straight-line basis over the assets estimated useful lives, ranging from 2 to 7 years. Tenant improvements are amortized on a straight-line basis over the shorter of the useful life or the remaining life of the related lease. Maintenance or repairs are charged to expense as incurred. Upon sale or disposition, the historically recorded asset cost and accumulated depreciation are removed from the respective accounts and any related gain or loss is recognized.

***Impairment of Long-Lived Assets***

In accordance with ASC Topic 360, *Accounting for the Impairment or Disposal of Long-Lived Assets*, the Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of property and equipment is measured by comparing its carrying value to the undiscounted projected future cash flows that the asset(s) are expected to generate. If the carrying amount of an asset is not recoverable, the Company recognizes an impairment loss based on the excess of the carrying amount of the long-lived asset over its respective fair value, which is generally determined as the present value of estimated future cash flows or at the appraised value. The impairment analysis is based on significant assumptions of future results made by management, including revenue and cash flow projections. Circumstances that may lead to impairment of property and equipment include a significant decrease in the market price of a long-lived asset, a significant adverse change in the extent or manner in which a long-lived asset is being used or in its physical condition and a significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset including an adverse action or assessment by a regulator. As of June 30, 2022 and 2021, the Company determined that long-lived assets were not impaired.

***Revenue Recognition***

The Company follows the guidance of the Accounting Standards Codification ("ASC") Topic 606, "Revenue from Contracts with Customers" which is effective as of the annual reporting period beginning after December 15, 2017 using either of two methods: (1) retrospective application of Topic 606 to each prior reporting period presented with the option to elect certain practical expedients as defined within Topic 606 or (2) retrospective application of Topic 606 with the cumulative effect of initially applying Topic 606 recognized at the date of initial application and providing certain additional disclosures as defined per Topic 606. We adopted Topic 606 pursuant to the method (2) and we determined that any cumulative effect for the initial application did not require an adjustment to retained earnings at July 1, 2018.

Most of the Company's revenue contracts represent a single performance obligation related to the fulfillment of customer orders for the purchase of its CBD products. Net sales reflect the transaction prices for these contracts based on the Company's selling list price, which is then reduced by estimated costs for trade promotional programs, consumer incentives, and allowances and discounts used to incentivize sales growth and build brand awareness.

**INFUSIONZ LLC**

**NOTES TO FINANCIAL STATEMENTS**

Revenue is recognized based on the following five step model:

- Identification of the contract with a customer

- Identification of the performance obligations in the contract

- Determination of the transaction price

- Allocation of the transaction price to the performance obligations in the contract

- Recognition of revenue when, or as, the Company satisfies a performance obligation

The Company recognizes revenue at the point in time that control of the ordered product is transferred to the customer, which is typically upon shipment to the customer or other customer-designated delivery point. Taxes collected from customers that are remitted to governmental agencies are accounted for on a net basis and not included as revenue.

Sales returns from wholesale customers must be completed within 15 days from the date of purchase and are subject to a restocking fee. E-Commerce product returns must be completed within 30 days of the date of purchase. The Company does not accrue for estimated sales returns as historical sales returns have been minimal.

Shipping and handling fees billed to customers are included in revenue. Shipping and handling fees associated with freight are generally included in cost of revenue.

***Deferred Revenue***

The Company records deposits as deferred revenue when a customer pays in advance of the Company shipping the product. Once the product is shipped, the deposit is recorded as revenue and the related commissions are paid. All products related to deposits in deferred revenue were shipped in less than one year. At June 30, 2022 and 2021, there was $58,082 and $171,415 of deferred revenue, respectively.

***Advertising***

The Company supports its products with advertising to build brand awareness of the Company's various products in addition to other marketing programs executed by the Company's marketing team. The Company believes the continual investment in advertising is critical to the development and sale of its CBD branded products. Advertising costs of $89,177 and $141,368 were expensed as incurred during the years ending June 30, 2022 and 2021, respectively.

***Income Taxes***

Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes resulting from temporary differences. Such temporary differences result from differences in the carrying value of assets and liabilities for tax and financial reporting purposes. The deferred tax assets and liabilities represent the future tax consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized.

**INFUSIONZ LLC**

**NOTES TO FINANCIAL STATEMENTS**

The Company identifies and evaluates uncertain tax positions, if any, and recognizes the impact of uncertain tax positions for which there is a less than more-likely-than-not probability of the position being upheld when reviewed by the relevant taxing authority. Such positions are deemed to be unrecognized tax benefits and a corresponding liability is established on the balance sheet. The Company has not recognized a liability for uncertain tax positions. If there were an unrecognized tax benefit, the Company would recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses.

Infusionz LLC is a single member limited liability corporation and is a disregarded entity for tax purposes.

***Recently Issued Accounting Pronouncements***

In August 2020, the FASB issued ASU 2020-06-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity, which simplifies the guidance for certain convertible debt instruments by removing the separation models for convertible debt with a cash conversion feature or convertible instruments with a beneficial conversion feature. As a result, convertible debt instruments will be reported as a single liability instrument with no separate accounting for embedded conversion features. Additionally, ASU 2020-06 requires the application of the if-converted method for calculating diluted earnings per share and the treasury stock method will be no longer available. The provisions of ASU 2020-06 are applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. The Company expects the primary impacts of this new standard will be to increase the carrying value of its Convertible Debt and reduce its reported interest expense. In addition, the Company will be required to use the if-converted method for calculating diluted earnings per share. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

No other recent accounting pronouncements were issued by FASB and the SEC that are believed by management to have a material impact on the Company's present or future unaudited consolidated financial statements

**3. ACCOUNTS RECEIVABLE, NET**

Accounts receivable consist of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30,** | **June 30,** |
|  | **2022** | **2021** |
| Customer receivables | $112099 | $120043 |
| &nbsp;&nbsp;&nbsp; Merchant receivable from credit card payments from customers | 9705 | 1843 |
|  | 121804 | 121886 |
| &nbsp;&nbsp;&nbsp; Less – Allowance for doubtful accounts | (15000) | (15000) |
|  | $106804 | $106886 |

---

**INFUSIONZ LLC**

**NOTES TO FINANCIAL STATEMENTS**

**4. INVENTORY**

Inventory as of June 30, 2022 and 2021 was comprised of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30,** | **June 30,** |
|  | **2022** | **2021** |
| Raw materials | $82082 | $141043 |
| &nbsp;&nbsp;&nbsp; Finished goods | - | - |
|  | $82082 | $141043 |

---

The process of producing finished goods from raw materials typically takes one to two days. The work in process at June 30, 2022 and 2021 is immaterial.

**5. PROPERTY AND EQUIPMENT, NET**

Property and equipment consist of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30,** | **June 30,** |
|  | **2022** | **2021** |
| Furniture and Fixtures | $4500 | $4500 |
| &nbsp;&nbsp;&nbsp; Computer equipment | 3495 | 3495 |
| &nbsp;&nbsp;&nbsp; Machinery and equipment | 103914 | 103914 |
| Automobiles | - | 9500 |
|  | 111909 | 121409 |
| &nbsp;&nbsp;&nbsp; Less - Accumulated depreciation | (51933) | (43367) |
|  | $59976 | $78042 |

---

Depreciation expense for the years ended June 30, 2022 and 2021 was $17,298 and $19,557, respectively.

**6. ACCRUED LIABILITIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses as of June 30, 2022 and 2021 were as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30,** | **June 30,** |
|  | **2022** | **2021** |
| Accrued payroll and taxes | $25288 | $43547 |
| &nbsp;&nbsp;&nbsp; Other accrued liabilities | - | 71173 |
|  | $25288 | $114720 |

---

**7. SIGNIFICANT CUSTOMERS**

The Company had significant customers in each of the year presented. A significant customer is defined as one that makes up ten percent or more of total revenues or ten percent of outstanding accounts receivable balance as of the year end.

14<br>

**INFUSIONZ LLC**

**NOTES TO FINANCIAL STATEMENTS**

Net revenues for the years ended June 30, 2022 and 2021 include revenues from significant customers as follows:

---

| | | |
|:---|:---|:---|
|  | **Years Ended June 30,** | **Years Ended June 30,** |
|  | **2022** | **2021** |
| Customer A  | 0% | 13% |
| Customer B  | 0% | 11% |
| Customer C  | 14% | 0% |

---

Accounts receivable balances as of June 30, 2022 and 2021 from significant customers are as follows:

---

| | | |
|:---|:---|:---|
|  | **Years Ended June 30,** | **Years Ended June 30,** |
|  | **2022** | **2021** |
| Customer A  | 0% | 7% |
| Customer B | 0% | 0% |
| Customer C  | 22% | 0% |
| Customer D  | 0% | 31% |
| Customer E  | 18% | 20% |
| Customer F | 10% | 0% |
| Customer G | 13% | 0% |
| Customer H | 19% | 0% |

---

**8. SUBSEQUENT EVENTS**

On October 26, 2022, Upexi, Inc. (the "Company") entered into a membership interest purchase agreement with Bloomios, Inc., a Nevada corporation ("Bloomios") and its wholly owned subsidiary Infused Confections LLC, a Wyoming limited liability company (together with Bloomios, the Buyers) whereby the Company sold 100% of the membership interest of Infusionz LLC, a Colorado limited liability company to the Buyers for consideration of $23,500,000, subject to adjustments. The consideration consists of $5,500,000 in cash paid at closing, a convertible secured subordinated promissory note in the original principal amount of $5,000,000, 85,000 shares of Bloomios Series D Convertible Preferred Stock with a stated value of $8,500,000, a senior secured convertible debenture with a subscription amount of $4,500,000 (with an original principal amount, after OID, of $5,294,118) and a common stock purchase warrant to purchase up to 2,853,910 shares of Bloomios common stock. The agreement provides for a two-way, post-closing working capital adjustment based on target working capital of $1,275,000.

## Exhibit 99.2

**EXHIBIT 99.2**

**INFUSIONZ LLC**

**FINANCIAL STATEMENTS**

**THREE MONTHS ENDED SEPTEMBER 30, 2022**

**INFUSIONZ LLC**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page**  |
| **Financial Statements** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Balance Sheet | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp; Statement of Operations | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp; Statement of Changes in Members' Interest | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp; Statement of Cash Flows | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp; Notes to Financial Statements | 7 |

---

**INFUSIONZ LLC**

**UNAUDITED BALANCE SHEET**

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2022** | **June 30,**<br>**2022** |
| **ASSETS** |  |  |
| **Current assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash | $41685 | $107133 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net (allowance for doubtful accounts was $15,000 at September 30, 2022 and June 30, 2022) | 101219 | 106804 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid and other expenses | 3161 | 3258 |
| &nbsp;&nbsp;&nbsp;&nbsp; Inventory | 68747 | 82082 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 214812 | 299277 |
| &nbsp;&nbsp;&nbsp;&nbsp; Property and equipment, net | 55963 | 59976 |
| &nbsp;&nbsp;&nbsp;&nbsp; Right-of-use asset | 8802 | 10290 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $279577 | $369543 |
| **LIABILITIES AND MEMBERS' EQUITY** |  |  |
| **Current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued compensation | 11797 | 25288 |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 94380 | 58082 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 106177 | 83370 |
| &nbsp;&nbsp;&nbsp;&nbsp; Notes payable, net of current portion |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Operating lease payable, net of current portion | 9250 | 10817 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total long-term liabilities | 9250 | 10817 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 115427 | 94187 |
| Commitments and Contingencies (Note 7) |  |  |
| **Members' equity** |  |  |
| &nbsp;&nbsp;&nbsp; Members' interest | 28511 | 28511 |
| &nbsp;&nbsp;&nbsp; Retained earnings | 135639 | 246845 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total members' equity | 164150 | 275356 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and members' equity | $279577 | $369543 |

---

*See accompanying notes to financial statements.* 

**INFUSIONZ LLC**

**UNAUDITED STATEMENT OF OPERATIONS**

---

| | | |
|:---|:---|:---|
|  | **Three Months**<br>**Ended**<br>**September 30, 2022** | **Three Months**<br>**Ended**<br>**September 30, 2021** |
| **Revenue** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Product sales | $454516 | $1034662 |
| **Total revenues** | 454516 | 1034662 |
| &nbsp;&nbsp;&nbsp;&nbsp; Product costs | 264772 | 631893 |
| **Cost of revenues** | 264772 | 631893 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross profit | 189744 | 402769 |
| **Operating expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Selling, general and administrative expenses | 114845 | 324236 |
|  | 114845 | 324236 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from operations | 74899 | 78533 |
| Other expense (income), net |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest expense (income), net | 119 | 418 |
| &nbsp;&nbsp;&nbsp;&nbsp; Gain on SBA PPP loan forgiveness | - | (300995) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other (income) expense, net | 119 | (300577) |
| Net income before income tax | 74780 | 379110 |
| &nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | - | - |
| Net income | $74780 | $379110 |

---

*See accompanying notes to financial statements.*

**INFUSIONZ LLC**

**UNAUDITED STATEMENT OF MEMBERS' INTEREST**

---

| | | | |
|:---|:---|:---|:---|
|  | <br>**Members'**<br>**Interest** | <br>**Retained**<br>**Earnings** | **Total**<br>**Members'**<br>**Equity** |
| **Balance, June 30, 2020**  | $28511 | $69228 | $97739 |
| Member contribution |  |  |  |
| Net income |  | 249901 | 249901 |
| **Balance, June 30, 2021**  | $28511 | $319129 | $347640 |
| Member contribution |  | (1040515) | (1040515) |
| Net income | - | 968231 | 968231 |
| **Balance, June 30, 2022**  | $28511 | $246845 | $275356 |
| Member contribution |  | (185986) | (185986) |
| Net income | - | 74780 | 74780 |
| **Balance, September 30, 2022**  | $28511 | $135639 | $164150 |

---

*See accompanying notes to financial statements.*

**INFUSIONZ LLC**

**UNAUDITED STATEMENT OF CASH FLOW**

---

| | | |
|:---|:---|:---|
|  | **September 30,** | **September 30,** |
|  | **2022** | **2021** |
| **Cash flows from operating activities** |  |  |
| &nbsp;&nbsp;&nbsp; Net income | $74780 | $379110 |
| &nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; provided by operating activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 4013 | 4013 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on forgiveness of SBA PPP loan |  | (300995) |
| &nbsp;&nbsp;&nbsp;&nbsp; Changes in assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | 5585 | (83269) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 1585 | 21924 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventory | 13335 | 16596 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | (15058) | (87005) |
| &nbsp;&nbsp;&nbsp;&nbsp; Due to parent company |  | 288333 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 36298 | 177905 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities | 120538 | 416612 |
| **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp; Acquisition of property and equipment | - | 791 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in investing activities | - | 791 |
| **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp; Distribution to member | (185986) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by financing activities | (185986) | - |
| **Net decrease in cash**  | (65448) | 417403 |
| **Cash, beginning of period** | 107133 | 642802 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Cash, end of period** | $41685 | $1060205 |
| **Supplemental cash flow disclosures** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash paid for interest | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash paid for income taxes | $- | $- |

---

*See accompanying notes to financial statements.*

**INFUSIONZ LLC**

**NOTES TO FINANCIAL STATEMENTS**

**1. ORGANIZATION AND BUSINESS**

***Description of the Business***

Infusionz LLC (the "Company") incorporated in the state of Colorado in May 2016. The Company develops, manufactures and markets products based on Hemp-based Cannabidiol ("CBD") including, but not limited to edibles, tinctures, topicals, capsules and pet products. The Company also manufactures CBD products for other businesses under their brand and specifications.

On July 1, 2020, the Company was purchased by Upexi, Inc. a Nevada corporation. Upexi, Inc. is the single member of the Company.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

***Basis of Presentation***

The financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). In the opinion of management, the unaudited interim condensed financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. However, the results of operations included in such financial statements may not necessary be indicative of annual results.

***Use of Estimates***

The preparation of the financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results may differ from these estimates. Significant estimates include the valuation of inventory and the allowance for doubtful accounts.

***Concentrations of Credit Risk***

Financial instruments, which potentially subject the Company to concentrations of credit risk, are accounts receivable and revenue from individual customers in excess of 10%. See Note 8 for significant customer concentration disclosure.

***Fair Value of Financial Instruments***

The Company adopted the provisions of ASC Topic 820, "Fair Value Measurements and Disclosures," which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value, and expands disclosure of fair value measurements.

The estimated fair value of certain financial instruments, including cash and cash equivalents, are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments.

**INFUSIONZ LLC**

**NOTES TO FINANCIAL STATEMENTS**

ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value:

Level 1 — quoted prices in active markets for identical assets or liabilities

Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable

Level 3 — inputs that are unobservable (for example cash flow modeling inputs based on assumptions)

The Company has no assets or liabilities valued at fair value on a recurring basis.

***Cash and Cash Equivalents***

For purposes of the statements of cash flows, the Company considers amounts held by financial institutions and short-term investments with an original maturity of three months or less when purchased to be cash and cash equivalents. As of September 30, 2022, the Company had no cash equivalents.

 ***Accounts Receivable***

Generally, the Company requires payment prior to shipment. However, in certain circumstances, the Company extends credit terms of 10 to 30 days after shipment to companies located throughout the U.S. Accounts receivable consists of trade accounts arising in the normal course of business. Accounts for which no payments have been received after 30 days from product shipment are considered delinquent and customary collection efforts are initiated. Accounts receivable are carried at original invoice amount less a reserve made for doubtful receivables based on a review of all outstanding amounts on a quarterly basis.

Management has determined the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer's financial condition and credit history, and current economic conditions. As of September 30, 2022, the Company maintained an allowance for doubtful accounts related to accounts receivable in the amount of $15,000.

***Inventory***

Inventory is stated at lower of cost or net realizable value, with cost being determined on a weighted average cost basis. Cost includes costs directly related to manufacturing and distribution of the products. Primary costs include raw materials and packaging.

**INFUSIONZ LLC**

**NOTES TO FINANCIAL STATEMENTS**

The Company performs an assessment of inventory obsolescence to measure inventory at the lower of cost or net realizable value. Factors considered in the determination of obsolescence include slow-moving or non-marketable items. There was no obsolete inventory written off during the three month period ended September 30, 2022.

***Property & Equipment***

Property and equipment are stated at cost less accumulated depreciation and impairment, if applicable. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. Depreciation is provided on a straight-line basis over the assets estimated useful lives, ranging from 2 to 7 years. Tenant improvements are amortized on a straight-line basis over the shorter of the useful life or the remaining life of the related lease. Maintenance or repairs are charged to expense as incurred. Upon sale or disposition, the historically recorded asset cost and accumulated depreciation are removed from the respective accounts and any related gain or loss is recognized.

***Impairment of Long-Lived Assets***

In accordance with ASC Topic 360, *Accounting for the Impairment or Disposal of Long-Lived Assets*, the Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of property and equipment is measured by comparing its carrying value to the undiscounted projected future cash flows that the asset(s) are expected to generate. If the carrying amount of an asset is not recoverable, the Company recognizes an impairment loss based on the excess of the carrying amount of the long-lived asset over its respective fair value, which is generally determined as the present value of estimated future cash flows or at the appraised value. The impairment analysis is based on significant assumptions of future results made by management, including revenue and cash flow projections. Circumstances that may lead to impairment of property and equipment include a significant decrease in the market price of a long-lived asset, a significant adverse change in the extent or manner in which a long-lived asset is being used or in its physical condition and a significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset including an adverse action or assessment by a regulator. As of September 30, 2022, the Company determined that long-lived assets were not impaired.

***Revenue Recognition***

The Company follows the guidance of the Accounting Standards Codification ("ASC") Topic 606, "Revenue from Contracts with Customers" which is effective as of the annual reporting period beginning after December 15, 2017 using either of two methods: (1) retrospective application of Topic 606 to each prior reporting period presented with the option to elect certain practical expedients as defined within Topic 606 or (2) retrospective application of Topic 606 with the cumulative effect of initially applying Topic 606 recognized at the date of initial application and providing certain additional disclosures as defined per Topic 606. We adopted Topic 606 pursuant to the method (2) and we determined that any cumulative effect for the initial application did not require an adjustment to retained earnings at July 1, 2018.

**INFUSIONZ LLC**

**NOTES TO FINANCIAL STATEMENTS**

Most of the Company's revenue contracts represent a single performance obligation related to the fulfillment of customer orders for the purchase of its CBD products. Net sales reflect the transaction prices for these contracts based on the Company's selling list price, which is then reduced by estimated costs for trade promotional programs, consumer incentives, and allowances and discounts used to incentivize sales growth and build brand awareness.

Revenue is recognized based on the following five step model:

- Identification of the contract with a customer

- Identification of the performance obligations in the contract

- Determination of the transaction price

- Allocation of the transaction price to the performance obligations in the contract

- Recognition of revenue when, or as, the Company satisfies a performance obligation

The Company recognizes revenue at the point in time that control of the ordered product is transferred to the customer, which is typically upon shipment to the customer or other customer-designated delivery point. Taxes collected from customers that are remitted to governmental agencies are accounted for on a net basis and not included as revenue.

Sales returns from wholesale customers must be completed within 15 days from the date of purchase and are subject to a restocking fee. E-Commerce product returns must be completed within 30 days of the date of purchase. The Company does not accrue for estimated sales returns as historical sales returns have been minimal.

Shipping and handling fees billed to customers are included in revenue. Shipping and handling fees associated with freight are generally included in cost of revenue.

***Deferred Revenue***

The Company records deposits as deferred revenue when a customer pays in advance of the Company shipping the product. Once the product is shipped, the deposit is recorded as revenue and the related commissions are paid. All products related to deposits in deferred revenue were shipped in less than one year. At September 30, 2022 and June 30, 2022, there were $94,380 and $58,082 of deferred revenue, respectively.

***Advertising***

The Company supports its products with advertising to build brand awareness of the Company's various products in addition to other marketing programs executed by the Company's marketing team. The Company believes the continual investment in advertising is critical to the development and sale of its CBD branded products. Advertising costs of $23,153 was expensed as incurred during the three months ended September 30, 2022.

***Income Taxes***

Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes resulting from temporary differences. Such temporary differences result from differences in the carrying value of assets and liabilities for tax and financial reporting purposes. The deferred tax assets and liabilities represent the future tax consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized.

**INFUSIONZ LLC**

**NOTES TO FINANCIAL STATEMENTS**

The Company identifies and evaluates uncertain tax positions, if any, and recognizes the impact of uncertain tax positions for which there is a less than more-likely-than-not probability of the position being upheld when reviewed by the relevant taxing authority. Such positions are deemed to be unrecognized tax benefits and a corresponding liability is established on the balance sheet. The Company has not recognized a liability for uncertain tax positions. If there were an unrecognized tax benefit, the Company would recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses.

***Recently Issued Accounting Pronouncements***

In August 2020, the FASB issued ASU 2020-06-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity, which simplifies the guidance for certain convertible debt instruments by removing the separation models for convertible debt with a cash conversion feature or convertible instruments with a beneficial conversion feature. As a result, convertible debt instruments will be reported as a single liability instrument with no separate accounting for embedded conversion features. Additionally, ASU 2020-06 requires the application of the if-converted method for calculating diluted earnings per share and the treasury stock method will be no longer available. The provisions of ASU 2020-06 are applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. The Company expects the primary impacts of this new standard will be to increase the carrying value of its Convertible Debt and reduce its reported interest expense. In addition, the Company will be required to use the if-converted method for calculating diluted earnings per share. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

No other recent accounting pronouncements were issued by FASB and the SEC that are believed by management to have a material impact on the Company's present or future unaudited consolidated financial statements

**3. ACCOUNTS RECEIVABLE, NET**

Accounts receivable consist of the following:

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br> **2022** | **June 30,**<br> **2022** |
| Customer receivables | $112099 | $112099 |
| &nbsp;&nbsp;&nbsp; Merchant receivable from credit card payments from customers | 4120 | 9705 |
|  | 116219 | 121804 |
| &nbsp;&nbsp;&nbsp; Less – Allowance for doubtful accounts | (15000) | (15000) |
|  | $101219 | $106804 |

---

**INFUSIONZ LLC**

**NOTES TO FINANCIAL STATEMENTS**

**4. INVENTORY**

Inventory as of September 30, 2022 was comprised of the following:

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2022** | **June 30,**<br>**2022** |
| Raw materials | $68747 | $82082 |
| &nbsp;&nbsp;&nbsp; Finished goods | - | - |
|  | $68747 | $82082 |

---

The process of producing finished goods from raw materials typically takes one to two days. The work in process at September 30, 2022 and June 30, 2022 is immaterial.

**5. PROPERTY AND EQUIPMENT, NET**

Property and equipment consist of the following:

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;**September 30,**<br> **2022** | **June 30,**<br> **2022** |
| Furniture and Fixtures | $4500 | $4500 |
| &nbsp;&nbsp;&nbsp; Computer equipment | 3495 | 3495 |
| &nbsp;&nbsp;&nbsp; Machinery and equipment | 103914 | 103914 |
| Automobiles | - | - |
|  | 111909 | 111909 |
| &nbsp;&nbsp;&nbsp; Less - Accumulated depreciation | (55946) | (51933) |
|  | $55963 | $59976 |

---

Depreciation expense for the three months ended September 30, 2022 was $4,013.

**6. ACCRUED LIABILITIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses as of September 30, 2022 was as follows:

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2022** | **June 30,**<br>**2022** |
| Accrued payroll and taxes | $11797 | $25288 |
| &nbsp;&nbsp;&nbsp; Other accrued liabilities | - | - |
|  | $11797 | $25288 |

---

**7. SIGNIFICANT CUSTOMERS**

The Company had significant customers in each of the year presented. A significant customer is defined as one that makes up ten percent or more of total revenues or ten percent of outstanding accounts receivable balance as of the year end.

**INFUSIONZ LLC**

**NOTES TO FINANCIAL STATEMENTS**

Net revenues for the three months ended September 30, 2022 and the year ended June 30, 2022 includes revenues from significant customers as follows:

---

| | | |
|:---|:---|:---|
|  | **Three** <br> **months ended**<br> **September 30,** <br> **2022** | **Year ended**<br> **June 30,** <br> **2022** |
| Customer A | 32% | 14% |
| Customer B | 12% | 0% |

---

Accounts receivable balances as of September 30, 2022 and June 30, 2022 from significant customers are as follows:

---

| | | |
|:---|:---|:---|
|  | **Three** <br> **months ended**<br>**September 30,**<br> **2022** | **Year ended**<br>**June 30,** <br> **2022** |
| Customer A | 0% | 0% |
| Customer B | 0% | 0% |
| Customer C | 18% | 22% |
| Customer D | 34% | 0% |
| Customer E | 18% | 18% |
| Customer F | 10% | 10% |
| Customer G | 13% | 13% |
| Customer H | 19% | 19% |

---

**8. SUBSEQUENT EVENTS**

On October 26, 2022, Upexi, Inc. (the "Company") entered into a membership interest purchase agreement with Bloomios, Inc., a Nevada corporation ("Bloomios") and its wholly owned subsidiary Infused Confections LLC, a Wyoming limited liability company (together with Bloomios, the Buyers) whereby the Company sold 100% of the membership interest of Infusionz LLC, a Colorado limited liability company to the Buyers for consideration of $23,500,000, subject to adjustments. The consideration consists of $5,500,000 in cash paid at closing, a convertible secured subordinated promissory note in the original principal amount of $5,000,000, 85,000 shares of Bloomios Series D Convertible Preferred Stock with a stated value of $8,500,000, a senior secured convertible debenture with a subscription amount of $4,500,000 (with an original principal amount, after OID, of $5,294,118) and a common stock purchase warrant to purchase up to 2,853,910 shares of Bloomios common stock. The agreement provides for a two-way, post-closing working capital adjustment based on target working capital of $1,275,000.

## Exhibit 99.3

**EXHIBIT 99.3**

**BLOOMIOS, INC.**

**UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION**

The following unaudited pro forma combined financial information is based on the historical financial statements of Bloomios, Inc. (the "Company") and Infusionz, LLC ("Infusionz"), after giving effect to the Company's acquisition of Infusionz. The notes to the unaudited pro forma financial information describe the reclassifications and adjustments to the financial information presented.

The unaudited pro forma combined balance sheet as of September 30, 2022, and statements of operations for the year ended September 30, 2022, and the three and nine months ended September 30, 2022 are presented as if the acquisition of Infusionz had occurred on October 1, 2021 and were carried forward through each of the periods presented.

The allocation of the purchase price used in the unaudited pro forma combined financial information is based upon the respective fair values of the assets and liabilities of Infusionz as of the date on which the Infusionz Stock Purchase agreement was signed.

The unaudited pro forma combined financial information is not intended to represent or be indicative of the Company's consolidated results of operations or financial position that the Company would have reported had the Infusionz acquisition been completed as of the dates presented and should not be taken as a representation of the Company's future consolidated results of operation or financial position.

The unaudited pro forma combined financial information should be read in conjunction with the historical consolidated financial statements and accompanying notes of the Company included in the annual report on form 10-K for the year ended December 31, 2021.

---

| | |
|:---|:---|
| **Bloomios, Inc.**  | **Bloomios, Inc.**  |
| Unaudited Proforma Combined Balance Sheet  | Unaudited Proforma Combined Balance Sheet  |
|  | as of September 30, 2022  |
|  | (Unaudited)  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Bloomios, Inc.** | **Infusions** | **Proforma Adjustments** |  | **Proforma** |
| **Assets**  |  |  |  |  |  |
| **Current Assets:**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash | $8360 | $41685 | $(41685) | (1) | $8360 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable - net | 81982 | 101219 | (101219) | (1) | 81982 |
| &nbsp;&nbsp;&nbsp;&nbsp; Inventory | 246964 | 68747 | 1337662 | (1) | 1653373 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid Expenses | 103500 | 3161 | (3161) | (1) | 103500 |
| &nbsp;&nbsp;&nbsp;&nbsp; Deposits | 2155 |  | - |  | 2155 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Current Assets | 442961 | 214812 | 1191597 |  | 1849370 |
| &nbsp;&nbsp;&nbsp;&nbsp; Property and Equipment - Net | 2243210 | 55963 | 614559 | (1) | 2913732 |
| &nbsp;&nbsp;&nbsp;&nbsp; Loan receivable | 50000 |  |  |  | 50000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Right of use asset | 142049 | 8802 | (8802) | (1) | 142049 |
| &nbsp;&nbsp;&nbsp;&nbsp; Intangible assets acquired |  |  | 10000000 | (3) | 10000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Goodwill | 300000 |  | 11702646 | (3) | 12002646 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other assets | 67290 | - | - |  | 67290 |
| **Total Assets**  | $3245510 | $279577 | $23500000 |  | $27025087 |
| **Liabilities and Stockholders' (Deficit)**  |  |  |  |  |  |
| **Current Liabilities:**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $1749837 | $- |  |  | $1749837 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 333562 | 11797 | (11797) | (1) | 333562 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses related party | 272922 |  |  |  | 272922 |
| &nbsp;&nbsp;&nbsp;&nbsp; Unearned revenue | 41325 | 94380 | (94380) | (1) | 41325 |
| &nbsp;&nbsp;&nbsp;&nbsp; Customer JV account liabilities | 300000 |  |  |  | 300000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Lease liability current | 142049 | 9250 | (9250) | (1) | 142049 |
| &nbsp;&nbsp;&nbsp;&nbsp; Notes payable | 1522864 |  |  |  | 1522864 |
| &nbsp;&nbsp;&nbsp;&nbsp; Notes payable PPP |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Notes payable - related party | 356500 |  | 5294118 | (4) | 5650618 |
| &nbsp;&nbsp;&nbsp;&nbsp; Notes Payable - Convertibles Related Party | 1274935 |  |  |  | 1274935 |
| &nbsp;&nbsp;&nbsp;&nbsp; Notes payable - convertibles (net of debt discount) | 2058343 | - | 9985459 | (5) | 12043802 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Current Liabilities | 8052337 | 115427 | 15164150 |  | 23331914 |
| **Long-Term Debt:**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Lease liability |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Notes payable | 150000 | - | - |  | 150000 |
| **Total Liabilities**  | 8202337 | 115427 | 15164150 |  | 23481914 |
| **Stockholders' (Deficit)**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Preferred series A stock ($0.00001 par value; 10,000 shares authorized; 10,000 and 0 shares issued and outstanding at June 30, 2022 and December 31, 2021 respectively | 0 |  |  |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Preferred series B stock ($0.00001 par value; 800 shares authorized; 800 and 0 shares issued and outstanding at September 30, 2022 and December 31, 2021 respectively | 0 |  |  |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Preferred series C stock ($0.00001 par value; 3,000,000 shares authorized; 310,000 and 0 shares issued and outstanding at September 30, 2022 and December 31, 2021 respectively | 3 |  |  |  | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp; Preferred series D stock ($0.00001 par value; 3,000,000 shares authorized; 310,000 and 0 shares issued and outstanding at September 30, 2022 and December 31, 2021 respectively |  |  | 8500000 | (6) | 8500000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shares to be issued |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common stock ($0.00001 par value; 950,000,000 shares authorized; 12,702,134 and 12,508,011 shares issued and outstanding at September 30, 2022 and December 31, 2021 respectively | 188 |  |  |  | 188 |
| &nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 5897150 | 28511 | (28511) |  | 5897150 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (10854168) | 135639 | (135639) |  | (10854168) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Stockholders' (Deficit) | (4956827) | 164150 | 8335850 |  | 3543173 |
| **Total Liabilities and Stockholders' Deficit**  | $3245510 | $279577 | $23500000 |  | $27025087 |

---

See notes to unaudited pro forma combined financial information

(1) Assets and Liabilities not acquired

(2) Assets acquired in acquisition

(3) Represents the management estimated intangible asset and goodwill as of closing date, to be verified post acquisition with full purchase price allocation

(4) The non-cash consideration consisted of the issuance by the Company to the Seller of: (i) a Debenture having a subscription amount of four million five hundred thousand dollars ($4,500,000) (which, for purposes of clarity, as a result of the original issue discount, has an original principal amount of five million two hundred ninety-four thousand one hundred seventeen dollars and sixty cents ($5,294,117.60));

(5) On October 26, 2022, the Company closed on an offering of the Debentures (the "Debenture Offering"). The Debentures have an aggregate principal amount of approximately $13,893,059 (including a 15% original issue discount). The Debentures were issued to eleven (11) holders, six (6) of whom invested $6.25 million with the balance of the principal amount consisting of the issuance of the Debenture to the Seller and the issuances of Debentures to four (4) lenders to refinance previous loans. The cash proceeds of the Debenture Offering were used to finance the cash consideration paid to the Seller pursuant to the MIPA along with the cash repayment of previous loans.

(6) On October 26, 2022, the Company issued eighty-five thousand (85,000) shares of Series D Preferred to the Seller pursuant to the MIPA. The Series D Preferred shares entitle the holder to receive dividends equal to eight and one-half percent (8.50%) per annum of the Stated Value of the Series D Preferred shares, on a monthly basis, 30 days in arrears, for each month during which the Series D Preferred shares remain outstanding. The monthly dividends shall be declared but not become due and payable and shall not be paid (but instead shall accrue) until the date that is three (3) months following the date on which the Debentures are fully repaid and /or converted into shares of Common Stock (such date the "Dividend and Conversion Restriction Release Date"). In addition, no asserted claims, losses or liabilities related to the Debentures to which the holders of the Debentures are entitled to indemnification or reimbursement can remain unresolved. The monthly dividends shall be fully paid in twelve equal monthly installments. On or after the Dividend and Conversion Restriction Release Date, the holder of the Series D Preferred shares can convert the Series D Preferred shares into shares of Common Stock. The number of shares of Common Stock will equal the product obtained by dividing the number of shares of Series D Preferred Stock being converted by the closing price per share of the Common Stock on the conversion date and multiplying that number by 100. The holders of the Series D Preferred shares shall have the same voting rights as the holders of the Common Stock and the shares of Series D Preferred shall vote equally with the shares of Common Stock, and not as a separate class, at any annual or special meeting, upon the following basis: the holder of Series D Preferred shares shall be entitled to cast such number of votes as shall be equal to the aggregate number of shares of Common Stock into which such holder's shares of Series D Preferred Stock are convertible immediately after the close of business on the record date fixed for such meeting. The Series D Preferred shares have a liquidation preference over all other Company securities other than the Debentures. In addition, the Company may, in its sole discretion, on or after one year anniversary of the Closing Date, subject to whether the Debentures are still outstanding, elect to redeem all or any portion of the Series D Preferred shares at a price per share equal to one hundred dollars up to an aggregate amount of eight million five hundred thousand dollars ($8,500,000) for all of the shares of Series D Preferred Stock.

---

| |
|:---|
| **Bloomios, Inc.**  |
| Unaudited Pro Forma Consolidated Statement of Operations  |
| for the three months ended September 30, 2022  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Bloomios, Inc.** | **Infusions** | **Proforma Adjustments** |  | **Proforma** |
| Sales | $1197927 | $454516 | $5056920 | (1) | $6709363 |
| Cost of Goods Sold | 597621 | 264772 | 2661500 | (2) | $3523893 |
| Gross Profit | 600306 | 189744 | 2395420 |  | 3185470 |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales and Marketing |  |  | 561229 | (3) | 561229 |
| &nbsp;&nbsp;&nbsp;&nbsp; General and Administrative expense | 1308210 | 114845 | 812151 | (3) | 2235206 |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation | 109275 |  |  |  | 109275 |
| &nbsp;&nbsp;&nbsp;&nbsp; Amortization |  |  |  | (4) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Share based Expense | 95217 | - | - |  | 95217 |
| Total Expenses | 1512702 | 114845 | 1373380 |  | 3000927 |
| Net Profit From Operations | (912396) | 74899 | 1022041 |  | 184544 |
| Other Income / (Expenses) |  |  |  |  |  |
| Gain on Debt settlement |  |  |  |  |  |
| Other Income |  |  |  |  |  |
| Financing Fees | (1017637) |  |  |  | (1017637) |
| Interest Expense | (170815) | (119) | - |  | (170934) |
| Net Profit / (Loss) Before Income Taxes | (2100848) | 74780 | 1022041 |  | (1004027) |
| Income Tax Expense | - | - | - |  | - |
| Net Profit / (Loss) | $(2100848) | $74780 | $1022041 |  | $(1004027) |
| NET PROFIT / (LOSS) PER COMMON SHARE - BASIC AND DILUTED | $(0.16) | $- | $- |  | $(0.08) |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED | 13200405 | - | - |  | 13200405 |

---

See notes to unaudited pro forma combined financial information

(1) Additional revenue from acquisition

(2) Additional cost of goods sold from acquisition

(3) Additional salaries from acquired assets

(4) Proforma amortization of the intangible assets acquired

---

| |
|:---|
| **Bloomios, Inc.**  |
| Unaudited Pro Forma Consolidated Statement of Operations  |
| for the nine months ended September 30, 2022  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Bloomios, Inc.** | **Infusions** | **Proforma Adjustments** |  | **Proforma** |
| Sales | $3957356 | $2654053 | $13880256 | (1) | $20491665 |
| Cost of Goods Sold | 1967220 | 1499134 | 7279682 | (2) | $10746036 |
| Gross Profit | 1990136 | 1154919 | 6600574 |  | 9745629 |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales and Marketing |  |  | 1683686 | (3) | 1683686 |
| &nbsp;&nbsp;&nbsp;&nbsp; General and Administrative expense | 4106918 | 568667 | 2212320 | (3) | 6887905 |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation | 322308 |  |  |  | 322308 |
| &nbsp;&nbsp;&nbsp;&nbsp; Amortization |  |  | 1071429 | (4) | 1071429 |
| &nbsp;&nbsp;&nbsp;&nbsp; Share based Expense | 285901 | - | - |  | 285901 |
| Total Expenses | 4715127 | 568667 | 4967435 |  | 10251229 |
| Net Profit From Operations | (2724991) | 586252 | 1633139 |  | (505600) |
| Other Income / (Expenses) |  |  |  |  |  |
| Gain on Debt settlement |  | 5500 |  |  | 5500 |
| Other Income |  |  |  |  |  |
| Financing Fees | (1268597) |  |  |  | (1268597) |
| Interest Expense | (525191) | (2631) | - |  | (527822) |
| Net Profit / (Loss) Before Income Taxes | (4518779) | 589121 | 1633139 |  | (2296519) |
| Income Tax Expense | - | - | - |  | - |
| Net Profit / (Loss) | $(4518779) | $589121 | $1633139 |  | $(2296519) |
| NET PROFIT / (LOSS) PER COMMON SHARE - BASIC AND DILUTED | $(0.34) | $- | $- |  | $(0.17) |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED | 13200405 | - | - |  | 13200405 |

---

See notes to unaudited pro forma combined financial information

(1) Additional revenue from acquisition

(2) Additional cost of goods sold from acquisition

(3) Additional salaries from acquired assets

(4) Proforma amortization of the intangible assets acquired

---

| |
|:---|
| **Bloomios, Inc.**  |
| Unaudited Pro Forma Consolidated Statement of Operations  |
| for the year ended September 30, 2022  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Bloomios, Inc.** | **Infusions** | **Proforma Adjustments** |  | **Proforma** |
| Sales | $5616637 | $3108569 | $18937176 | (1) | $27662382 |
| Cost of Goods Sold | 2928062 | 1763906 | 9941182 | (2) | $14633150 |
| Gross Profit | 2688575 | 1344663 | 8995994 |  | 13029232 |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales and Marketing |  |  | 2244915 | (3) | 2244915 |
| &nbsp;&nbsp;&nbsp;&nbsp; General and Administrative expense | 3122922 | 683512 | 3024471 | (3) | 6830905 |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation | 429961 |  |  |  | 429961 |
| &nbsp;&nbsp;&nbsp;&nbsp; Amortization |  |  | 1428571 | (4) | 1428571 |
| &nbsp;&nbsp;&nbsp;&nbsp; Share based Expense | 563234 | - | - |  | 563234 |
| Total Expenses | 4116117 | 683512 | 6697957 |  | 11497586 |
| Net Profit From Operations | (1427542) | 661151 | 2298037 |  | 1531646 |
| Other Income / (Expenses) |  |  |  |  |  |
| Gain on Debt settlement |  | 5500 |  |  | 5500 |
| Other Income | 84628 |  |  |  | 84628 |
| Financing Fees | (835204) |  |  |  | (835204) |
| Interest Expense | (2919604) | (2750) | - |  | (2922354) |
| Net Profit / (Loss) Before Income Taxes | (5097722) | 663901 | 2298037 |  | (2135784) |
| Income Tax Expense | - | - | - |  | - |
| Net Profit / (Loss) | $(5097722) | $663901 | $2298037 |  | $(2135784) |
| NET PROFIT / (LOSS) PER COMMON SHARE - BASIC AND DILUTED | $(0.39) | $- | $- |  | $(0.16) |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED | 13200405 | - | - |  | 13200405 |

---

See notes to unaudited pro forma combined financial information

(1) Additional revenue from acquisition

(2) Additional cost of goods sold from acquisition

(3) Additional salaries from acquired assets

(4) Proforma amortization of the intangible assets acquired

**BLOOMIOS, INC.**

**NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION**

1. BASIS OF PRO FORMA PRESENTATION

The unaudited pro forma combined balance sheet as of September 30, 2022, and the unaudited pro forma statements of operations for the three and nine month's ended September 30, 2022, are based on the historical financial statements of the Company and Infusionz, LLC ("Infusionz") after giving effect to the Company's acquisition of Infusionz and reclassification and adjustments described in the accompanying notes to the unaudited pro forma combined financial information.

The Company accounts for its business combinations using the acquisition method of accounting. The cost of an acquisition is measured as the aggregate of the acquisition date fair values of the assets transferred and liabilities assumed by the Company to the seller's cash consideration and equity instruments issued. Transaction costs directly attributable to the acquisition are expensed as incurred. The excess of (i) the total costs of acquisition over (ii) the fair value of the identifiable net assets of the acquiree is recorded as identifiable intangible assets and goodwill.

The fair values assigned to Infusionz's assets acquired and liabilities assumed are based on management's estimates and assumptions. The estimated fair values of these assets acquired and liabilities assumed are considered preliminary and are based on the information that was available as of the date of acquisition. The Company believes that the information provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed, but is waiting for additional information, primarily related to estimated values of current and non-current income taxes payable and deferred taxes, which are subject to change, pending the finalization of certain tax returns. The Company expects to finalize the valuation of the assets and liabilities as soon as practicable, but not later than one year from the acquisition date.

The unaudited pro forma combined financial information is not intended to represent or be indicative of the Company's consolidated results of operations or financial position that the Company would have reported had the Infusionz acquisition been completed as of the dates presented and should not be taken as a representation of the Company's future consolidated results of operation or financial position.

The unaudited pro forma combined financial information should be read in conjunction with the historical consolidated financial statements and accompanying notes of the Company included in the annual report on Form 10-K for the year ended December 31, 2021.

<u>Accounting Periods Presented</u>

The unaudited pro forma combined balance sheet as of September 30, 2022, and the statements of operations for the three months ended September 30, 2022 and for the nine months ended September 30, 2022 are presented as if the acquisition of Infusionz had occurred on October 1, 2021 and were carried forward through each of the periods presented.

<u>Reclassifications</u>

The Company reclassified certain accounts in the presentation of Infusionz's historical financial statements to conform to the Company's presentation.

<u>Income Taxes</u>

Infusionz was treated as a single member LLC and a disregarded entity for federal income tax and state tax income tax purposes. Under these elections, the Company is not a taxpaying entity for federal and state income tax purposes and, accordingly, no provision has been made for such income taxes, except for a minimum state corporate business tax. The member's allocable share of the Company's income or loss is reportable on his or her income tax returns. Effective April 1, 2022 Infusionz was no longer a single member LLC for federal income tax and state tax purposes.

2. ACQUISITION OF INFUSIONZ

<u>Membership Interest Purchase Agreement</u>

On October 26, 2022, Bloomios, Inc. (the "Company") entered into a Membership Interest Purchase Agreement (the "MIPA") by and among the Company, Upexi, Inc., (the "Seller") and Infused Confections LLC (the "Buyer"). The Buyer is a wholly-owned subsidiary of the Company. Pursuant to the MIPA, the Buyer purchased from the Seller all of the issued and outstanding limited liability company membership interests (the "<u>LLC Interests</u>") of Infusionz LLC ("Infusionz"). Infusionz is in the business of developing, manufacturing, and marketing CBD products including, but not limited to, edibles, tinctures, topicals, capsules and pet products (the "Business").

Seller also agreed to transfer certain equipment used in connection with operation of the Business and agreed to allow the Company to provide: (i) white label and private label manufacturing services to Seller's customers and (ii) contracted services for certain brands of the Seller that were manufactured by the Seller ((i) and (ii) are referred to collectively herein as the "Assets").

The closing of the purchase of the LLC Interests and the transfer of the Assets occurred on October 26, 2022 (the "Closing Date").

The purchase price of the LLC Interests was twenty-three million five hundred thousand dollars ($23,500,000) which consisted of cash consideration of five million five hundred thousand dollars ($5,500,000) and non-cash consideration of eighteen million dollars ($18,000,000).

As further described below under the heading "Senior Secured Convertible Debenture Offering, " on October 26, 2022, the Company completed an offering of 15.0% Original Issue Discount Senior Secured Convertible Debentures (the "Debentures").

As further described under Item 5.03 of this Current Report on Form 8-K, the Company filed a Certificate of Designation of Preferences, Rights and Limitations of Series D Convertible Preferred Stock (the "COD") with the Secretary of State of the State of Nevada. The Company, pursuant to the COD, is able to issue shares of Series D Convertible Preferred Stock (the "Series D Preferred").

The non-cash consideration consisted of the issuance by the Company to the Seller of: (i) a Debenture having a subscription amount of four million five hundred thousand dollars ($4,500,000) (which, for purposes of clarity, as a result of the original issue discount, has an original principal amount of five million two hundred ninety-four thousand one hundred seventeen dollars and sixty cents ($5,294,117.60)); (ii) a convertible secured subordinated promissory note (the "Note") in the principal amount of five million dollars ($5,000,000), which will mature and be payable on the 24 month anniversary of the Closing Date; and (iii) eighty-five thousand (85,000) shares of Series D Preferred with a stated value per share of one hundred dollars ($100) for a total value of eight million five hundred thousand dollars ($8,500,000).

To the extent that the working capital of Infusionz on the Closing Date is respectively greater than or less than one million two hundred seventy-five thousand dollars ($1,275,000) the purchase price will be increased or decreased on a dollar-for-dollar basis. Within sixty (60) days of the Closing Date, the Seller shall prepare and deliver to Buyer a written statement setting forth in reasonable detail its determination of the revenue of Infusionz for the year ended June 30, 2022 and the working capital of Infusionz on the Closing Date and its calculation of the applicable adjustment to the purchase price, if any.

The foregoing summary of the MIPA contains only a brief description of the material terms of the MIPA and such description is qualified in its entirety by reference to the full text of the MIPA, filed herewith as Exhibit 2.1.

The MIPA contains representations, warranties and covenants that the respective parties made to each other as of the date of the MIPA or other specific dates. The assertions embodied in those representations, warranties and covenants were made for purposes of the contract among the respective parties and are subject to important qualifications and limitations agreed to by the parties in connection with negotiating such agreement. The representations, warranties and covenants in the MIPA are also modified in important part by the underlying disclosure schedules which are not filed publicly and which are subject to a contractual standard of materiality different from that generally applicable to stockholders and were used for the purpose of allocating risk among the parties rather than establishing matters as facts. The Company does not believe that these schedules contain information that is material to an investment decision.

In connection with the MIPA, the Company entered into: (i) employment agreements to employ the Chief Operating Officer and Chief Manufacturing Officer of Infusionz and (ii) a registration rights agreement to register the shares of the Company's common stock, par value $0.00001 per share (the "Common Stock") underlying the Series D Preferred shares held by the Seller following the Common Stock being listed on a national securities exchange (the "Uplisting") with the initial registration statement to register the shares of Common Stock due to be filed with the Securities and Exchange Commission (the "Commission") prior to the one year anniversary of the Closing Date.

In addition, the Company entered into a Transition Services Agreement with the Seller whereby the Seller will provide to the Company: (i) access to the Seller's facilities used in connection with the Business (at an estimated cost of $100,000 per month); (ii) finance services; and (iii) Human Resource assistance. This assistance includes allowing operational and other employees to work for the Company (at an estimated cost of $135,000 per month). The access to the facilities and the Human Resource assistance will be provided for four (4) months.

The foregoing summary of the Transition Services Agreement contains only a brief description of the material terms of the Transition Services Agreement and such description is qualified in its entirety by reference to the full text of the Transition Services Agreement, filed herewith as Exhibit 10.1.

<u>Senior Secured Convertible Debenture Offering</u>

On October 26, 2022, the Company closed on an offering of the Debentures (the "Debenture Offering"). The Debentures have an aggregate principal amount of approximately $13,893,059 (including a 15% original issue discount). The Debentures were issued to eleven (11) holders, six (6) of whom invested $6.25 million with the balance of the principal amount consisting of the issuance of the Debenture to the Seller and the issuances of Debentures to four (4) lenders to refinance previous loans. The cash proceeds of the Debenture Offering were used to finance the cash consideration paid to the Seller pursuant to the MIPA along with the cash repayment of previous loans.

The Debentures have a maturity date of October 26, 2024, have an interest rate of ten percent (10.00%) per annum, and are convertible into shares of Common Stock. The conversion price: (i) prior to the date of a Qualified Offering (an offering the Company enters into in connection with the Uplisting) is eighty percent (80%) of the lowest VWAP of the Common Stock during the five (5) trading day period immediately prior to the applicable Conversion Date; (ii) at the Qualified Offering, at the Qualified Offering Conversion Price (the effective price per share paid by investors per share of Common Stock that is sold to the public in the Qualified Offering); or (ii) following the date of the Qualified Offering, eighty percent (80%) of the lowest VWAP of the Common Stock during the ten (10) trading day period immediately prior to the three (3) month anniversary of date of the Qualified Offering.

On the date of the Qualified Offering, the Company will need to repay the lesser of the outstanding principal and an amount equal to the A) the outstanding principal sum on such date, multiplied by (B) the quotient obtained by dividing (1) the gross proceeds of the Qualified Offering by (2) the outstanding principal sum of all Debentures issued and any interest on the aggregate unconverted and then outstanding principal amount of the Debentures. By way of example, if the principal amount outstanding of a Debenture is $500,000, the gross proceeds of the Qualified Offering is $5,000,000 and total amount outstanding of all the Debentures is $10,000,000, then the holder of the $500,000 Debenture shall receive $250,000: $500,000 x $5,000,000/ $10,000,000.

The Debentures were offered pursuant to a Securities Purchase Agreement (the "SPA") between the Company and the holders of the Debentures entered into on October 26, 2022. The SPA contains customary representations, warranties and indemnification provisions. The Debentures are secured by a senior security interest in all assets of the Company and its subsidiaries pursuant to that certain Security Agreement, dated as of October 26, 2022, by and among the Company, the Company's subsidiaries, the holders of the Debentures, and the agent for the holders (the "Security Agreement").

In addition, pursuant to the SPA, the holders of the Debentures were each issued a warrant to purchase shares of the Common Stock (the "Warrant"). Each Warrant provides for the purchase by the applicable holder of Debentures of a number shares of Common Stock equal to the total principal amount of the Debenture purchased by such holder divided by the average of the VWAP of the Common Stock during the ten (10) trading day period immediately prior to the Closing Date (the "Warrant Shares"). The exercise price of the Warrants is 125% of the conversion price of the Debentures. A total of 7,449,007 Warrants were issued on the Closing Date.

Pursuant to the SPA, the holders of the Debentures were each issued a number of shares of Common Stock (the "Incentive Shares") equal to 35% of such holder's subscription amount (without regard for any beneficial ownership limitations) divided by the lower of (i) the closing price of the Common Stock on the Closing Date or (ii) the average of the VWAP of the Common Stock during the ten (10) trading day period immediately prior to the Closing Date. A total of 2,216,080 shares of Common Stock were issued on the Closing Date.

Pursuant to the SPA, the Company agreed to use its commercially reasonable efforts to complete a Qualified Offering within six months of the Closing Date. The Company agreed to use its commercially reasonable efforts to cause the filing of a registration statement with the Commission covering the resale of the Incentive Shares, the Warrant Shares, and the shares of Common Stock underlying the Debentures (collectively, the "Underlying Shares") at the same time as the Qualified Offering and shall use its commercially reasonable efforts to cause such registration statement to become effective at the time of the Qualified Offering. Notwithstanding the foregoing, in the event the Qualified Offering is not completed on or before the six-month anniversary of the Closing Date, (1) the Company shall file a separate registration statement with the Commission covering the resale of the Underlying Shares (a "Separate Registration Statement"), and shall use its commercially reasonable efforts to cause such Separate Registration Statement to become effective within nine months of the Closing Date.

The foregoing summary of the Debentures, the SPA, the Security Agreement, and the Warrants contains only a brief description of the material terms of the Debentures, the SPA, the Security Agreement, and the Warrants and such description is qualified in its entirety by reference to the full text of each of the Debentures, the SPA, the Security Agreement, and the Warrants, forms of which are filed herewith as Exhibits 4.1, 10.2, 10.3 and 4.2, respectively.

<u>Convertible Secured Subordinated Promissory Note</u>

In connection with the closing of the purchase of the LLC Interests and the transfer of the Assets, the Company issued the Note to the Seller. The Note has an interest rate of eight and one-half percent (8.5%) per annum, requires the Company to remit in repayment of amounts outstanding pursuant to the Noe an amount equal to forty percent (40%) of the net proceeds received by the Company in connection with any offering by the Company of the Company's securities conducted in connection with the Uplisting. The Company shall pay the Seller interest on a monthly basis. The Note is convertible, at the Seller's option, into shares of Common Stock at a conversion price of $5.00 per share subject to adjustment: (i) if the Uplisting does not occur prior to the one-year anniversary of the Closing Date or (ii) upon an event of default as described in the Note.

The Note is secured by a subordinated security interest in all assets of Infusionz pursuant to that certain Pledge and Security Agreement, dated as of October 26, 2022, by and between Infusionz as pledgor and the Seller as pledgee (the "Pledge and Security Agreement"), which security interest shall rank junior to all liens and security interests granted by the Company and each of its subsidiaries (including without limitation Infusionz), to the holders of the Debentures.

The foregoing summary of the Note and the Pledge and Security Agreement contains only a brief description of the material terms of the Note and the Pledge and Security Agreement and such description is qualified in its entirety by reference to the full text of each of the Note and the Pledge and Security Agreement, which are filed herewith as Exhibits 4.3 and 10.4, respectively.

3. PRO FORMA ADJUSTMENTS

(1) Assets and Liabilities not acquired

(2) Assets acquired in acquisition

(3) Represents the management estimated intangible asset as of closing date, to be verified post acquisition with full purchase price allocation

(4) The non-cash consideration consisted of the issuance by the Company to the Seller of: (i) a Debenture having a subscription amount of four million five hundred thousand dollars ($4,500,000) (which, for purposes of clarity, as a result of the original issue discount, has an original principal amount of five million two hundred ninety-four thousand one hundred seventeen dollars and sixty cents ($5,294,117.60));

(5) On October 26, 2022, the Company closed on an offering of the Debentures (the "Debenture Offering"). The Debentures have an aggregate principal amount of approximately $13,893,059 (including a 15% original issue discount). The Debentures were issued to eleven (11) holders, six (6) of whom invested $6.25 million with the balance of the principal amount consisting of the issuance of the Debenture to the Seller and the issuances of Debentures to four (4) lenders to refinance previous loans. The cash proceeds of the Debenture Offering were used to finance the cash consideration paid to the Seller pursuant to the MIPA along with the cash repayment of previous loans.