Principal Solar : Amended Annual Financial Statements

PRINCIPAL SOLAR, INC.

UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED

DECEMBER 31, 2021 AND 2020

PRINCIPAL SOLAR, INC. CONSOLIDATED BALANCE SHEETS

(Unaudited)

ASSETS

CURRENT ASSETS

Cash in Bank

Loan Origination Fees TOTAL CURRENT ASSETS

NON-CURRENT ASSETS

Interest Receivable

Investments

Investment - Oil and Gas Leases

Due from Subsidiary

Goodwill

Note Receivable - Related Party TOTAL NON-CURRENT ASSETS TOTAL ASSETS

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts Payable and Accrued Expenses

Accrued Payroll

Notes Payable

Accrued Interest on Notes Payable

Convertible Notes Payable, net

TOTAL CURRENT LIABILITIES

NON-CURRENT LIABILITIES

Mediation Settlement Payable

Liabilities Arising from Reverse Merger TOTAL NON-CURRENT LIABILITIES

TOTAL LIABILITIES

STOCKHOLDERS' EQUITY (DEFICIT)

Preferred Stock Series A: $0.01 par value, 500,000 shares

authorized; no shares issued and outstanding at

December 31, 2021 and December 31, 2020,

respectively

Preferred Stock Series B: $0.01 par value, 1,000,000

shares authorized; 1,000,000 shares issued and

outstanding at December 31, 2021 and December 31,

2020, respectively

Common Stock: $0.01 par value, 1,000,000,000 shares

authorized; 263,141,013 and 62,214,392 shares

issued and outstanding at December 31, 2021 and

December 31, 2020, respectively

Additional Paid-in-capital

Accumulated Deficit

TOTAL STOCKHOLDERS' EQUITY (DEFICIT) TOTAL LIABILITIES AND EQUITYDecember 31,2021

$

• 386,789 $ 53,425 440,214

160,000 80,000

2,547,500 544,000

533,750 - - 1,000,000 4,241,250

$

4,681,464

$

140,514 $ 123,109

495,000 577,633

66,128 152,426

1,214,653 18,500

2,039,404

215,062 1,003,839 1,218,901

$

3,258,305

-

10,000 10,000

2,631,411 622,145

39,541,390 (40,759,642)

1,423,159

$

4,681,464

The accompanying notes are an integral part of these financial statements.

2020

11,355 - 11,355

-

100

302,751

1,000,000

1,926,851

$

1,938,206

890,283 -

1,638,842

215,062 1,003,839 1,218,901

$

2,857,743

-

28,074,501 (29,626,183)

(919,537)

$

1,938,206

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

REVENUE

OPERATING EXPENSES

General and Administrative Expenses

For the Year Ended

December 31,2021

2020

$

5,000

$

-

6,945,116

15,628,112

OPERATING LOSS

OTHER (INCOME) EXPENSE

Interest Income

Interest Expense

TOTAL OTHER EXPENSE

(6,940,116)

(15,628,112)

(80,000)

(80,000)

3,434,928 142,491

3,354,928 62,491

NET LOSS

• $ (10,295,044)

$

(15,690,603)

Net loss per share attributable to common stockholders, basic

Net loss per share attributable to common stockholders, diluted

$ $

(0.07) $ (0.29)

(0.07) $ (0.29)Weighted average shares outstanding, basic

Weighted average shares outstanding, diluted

155,668,094 53,611,362

155,668,094 53,611,362

The accompanying notes are an integral part of these financial statements.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES: Net Loss

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Interest Receivable

Accrued Interest on Convertible Notes PayableChanges in Assets and Liabilities:

Accounts Payable and Accrued Expenses

Accrued Payroll

Net cash provided by (used in) operating activities

CASH FLOWS FROM FINANCING ACTIVITIES:

Business Acquisition, net of cash acquired Net cash provided by financing activities

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from Issuance of Notes Payable

For the Year Ended December 31,2021

• $ (10,295,044)

2020

• $ (15,690,603)

(80,000)

(80,000)

795,481 184,808

(475,236) 241,872

(70,405) (10,125,204)

- (15,343,923)

(2,547,500) (2,547,500)

- -

281,389

-

Proceeds from Issuance of Convertible Notes Payable - 18,500 Common Stock Issued in Business Combination

Stock Subscription - 70,000

Stock Issuance in lieu of payments Net cash provided by financing activities

12,766,749 15,266,778

13,048,138 15,355,278

Net increase in cash and cash equivalents Cash and cash equivalents, at beginning of year Cash and cash equivalents, at end of year

$

375,434 11,355 386,789

$

11,355 - 11,355

SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES: Interest Paid

Taxes Paid

$ $

- -

The accompanying notes are an integral part of these financial statements.

$ $

- -

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT

December 31, 2021

(Unaudited)

Preferred Stock -

Series A Number of

Shares ValuePreferred Stock -

Series BCommon Stock

Common stock issued Common stock issued for services rendered Net loss

Balance December 31, 2019

Balance December 31, 2020

Common stock issued Common stock issued for services rendered Common stock issued upon conversion of debt Other

Net loss

Balance December 31, 2021

The accompanying notes are an integral part of these financial statements.

• - $ -

Number of

Shares Value

- - -

• - $ -

-

-

- - -

-

$ -

- - -

- - -

-

-

1,000,000 - - -

1,000,000

1,000,000

- - -

-

-

$ 10,000 - - -

$ 10,000

$ 10,000

- - -

-

-

263,141,013

Number of

11,839,137 $ 118,392 1,450,000 14,500 48,925,255 489,253

62,214,392 $ 622,145

55,076,745 550,767

57,929,090 579,291

87,920,786 879,208

Shares Value

Accumulated
APIC	Deficit	Total Equity
$ 13,551,476	$(13,935,580)	$ (255,712)
30,500	-	45,000
14,492,525	-	14,981,778
-	(15,690,603)	(15,690,603)
$ 28,074,501	$(29,626,183)	$ (919,537)
4,666,873	-	5,217,640
3,550,646	-	4,129,937
3,249,371	-	4,128,579
-	(838,416)	(838,416)
-	(10,295,044)	(10,295,044)
$ 2,631,411	$ 39,541,391	$(40,759,642)	$ 1,423,159

-

- -

-

- -