8-K/A - XERI - Equibles

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

Amendment No. 1 on

Form 8-K/A

Current ReportPursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 30, 2019

BANJO & MATILDA, INC.

| (Exact name of registrant as specified in its charter) |

Nevada	000-54277	27-1519178

| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |

Innovation Centre #1, 3998 FAU Blvd., Suite<br> <br>309 Boca Raton, FL	33431

| (Address of principal executive offices) | (Zip Code) |

Registrant’s telephone number, including area code: (561) 491-9595

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Company under any of the following provisions:

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

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

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

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

SECTION 9 – AUDITED FINANCIAL STATEMENTS AND EXHIBITS

Item 9.01 Financial Statements and Exhibits

As reported on our Current Report on Form 8-K filed with the Securities and Exchange Commission on October 4, 2019, Banjo & Matilda, Inc. (the “Company”) entered into a Share Exchange Agreement (the “Exchange Agreement”) with American Aviation Technologies, LLC (“AAT”) on April 16, 2019. The agreement was pursuant to which the Company agreed to acquire all of the membership units of AAT (the “Exchange”) with AAT becoming a wholly owned subsidiary of the Company. Consummation of the Exchange was effective on September 30, 2019. Pursuant to the Exchange Agreement, the Company a) agreed to issue 2,750,000 shares of the Company’s Series A Preferred Stock to the members of AAT, b) agreed to issue 193,000 shares of the Company’s Series A Preferred Stock to various parties to settle outstanding debt and threatened litigation, c) agreed to issue 170,000 shares of the Company’s Series A Preferred Stock for consulting services, and d) spun out the right, title and interest in its two subsidiaries; Banjo & Matilda (USA), Inc. and Banjo & Matilda Australia Pty LTD, including all related assets and liabilities. The merger is treated as a “reverse merger” with AAT as the accounting acquirer.

Exhibits

99.1	Audited financial statements of American Aviation Technologies, LLC for the period from Inception (August 8, 2018) through June 30, 2019
99.3	Unaudited pro forma condensed combined financial statements of Banjo & Matilda, Inc. and American Aviation Technologies, LLC

2

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.

	BANJO & MATILDA, INC.
Date: May 5, 2020	By:	/s/ Keith Duffy

| | | Keith Duffy Chief Executive Officer and Chief Financial Officer (Principal Executive and Financial Officer) |

3

banj_ex991.htm EXHIBIT 99.1

AMERICAN AVIATION TECHNOLOGES, LLC

FROM INCEPTION (AUGUST 6, 2018) THROUGH JUNE 30, 2019

INDEX TO FINANCIAL STATEMENTS

Financial Statements

| Report of Independent Registered Public Accounting Firm | F-2 |

| Balance Sheet as of June 30, 2019 | F-3 |

| Statement of Operations from Inception (August 6, 2018) through June 30, 2019 | F-4 |

| Statement of Changes in Member's Capital from Inception (August 6, 2018) through June 30, 2019 | F-5 |

| Statement of Cash Flows from Inception (August 6, 2018) through June 30, 2019 | F-6 |

| Notes to Financial Statements | F-7 |

F-1

Report of Independent Registered Public Accounting Firm

To the shareholders and board of directors of Banjo & Matilda, Inc.

Opinion on the Financial Statements

We have audited the accompanying balance sheet of American Aviation Technologies, LLC (the "Company") as of June 30, 2019, the related statement of operations, members’ equity (deficit), and cash flows for the period from August 6, 2018 (inception) through to June 30, 2019, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2019, and the results of its operations and its cash flows for the period from August 6, 2018 (inception) through to June 30, 2019, in conformity with accounting principles generally accepted in the United States.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

Substantial Doubt about the Company’s Ability to Continue as a Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 7 to the financial statements, the Company’s significant operating losses raise substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ BF Borgers CPA PC

BF Borgers CPA PC

Served as Auditor since 2019

Lakewood, CO

May 5, 2020

F-2

American Aviation Technologies, LLC

Balance Sheet

| Cash | $ | 3,029 | |

| Total current assets | | 3,029 | | | Total assets | $ | 3,029 | | | Liabilities & member's capital | | | |

| Accrued expenses | $ | 1,877 | |

| Convertible notes payable, related party | | 35,000 | |

| Member's capital | | 50,907 | |

| Accumulated deficit | | (84,755 | ) |

| Total member's deficit | | (33,848 | ) |

| Total liabilities and member's deficit | $ | 3,029 | |

The accompanying notes are an integral part of these financial statements

F-3

American Aviation Technologies, LLC

Statement of Operations
Operating expenses:

| Research and development expenses | $ | 8,384 | |

| Professional fees | | 64,311 | |

| Other general and administrative expenses | | 11,682 | |

| Total operating expenses | | 84,377 | | | Operating loss | | (84,377 | ) | | Operating (expenses): | | | |

| Interest expense, related party | | (378 | ) |

| Total other (expense) | | (378 | ) | | Net loss | $ | (84,755 | ) |

The accompanying notes are an integral part of these financial statements

F-4

American Aviation Technologies, LLC

| Statement of Changes in Member's Capital | | | | | | | | | | |

| Inception, August 6, 2018 | | - | $ | - | $ | - | | $ | - | | | Member's contributions | | 2,000,000 | | 200 | | - | | | 200 | | | Sale of units | | 933,334 | | 50,000 | | - | | | 50,000 | | | Units issued for compensation | | 7,066,666 | | 707 | | - | | | 700 | | | Net Loss | | - | | - | | (84,755 | ) | | (84,755 | ) | | Balance June 30, 2019 | **** | 10,000,000 | $ | 50,907 | $ | (84,755 | ) | $ | (33,848 | ) |

The accompanying notes are an integral part of these financial statements

F-5

American Aviation Technologies, LLC

Statement of Cash Flows
Cash Flows from Operating Activities

| Net Loss | $ | (84,755 | ) |

| Stock compensation | | 707 | |

| Changes in operating assets & liabilities | | | |

| Accrued expenses | | 1,877 | |

Net cash used by operating activities		(82,171	)

| Proceeds from convertible notes payables | | 35,000 | |

| Member's contributions | | 200 | |

| Sale of member units | | 50,000 | |

| Net cash provided by financing activities | | 85,200 | | | Increase in Cash | | 3,029 | | | Cash at beginning of period | | - | | | Cash at end of period | $ | 3,029 | | | Supplemental Cash Flow Information | | | |

| Cash paid for interest | $ | - | |

| Cash paid for income taxes | $ | - | |

F-6

AMERICAN AVIATION TECHNOLOGIES, LLC

NOTES TO

FINANCIAL STATEMENTS

1. Nature of operations

American Aviation Technologies, a Florida Limited Liability Company (“AAT” or the “Company”) was formed on August 6, 2018. AAT is an aircraft design and development company dedicated to advancing aeronautical safety and performance through new and innovative concepts. Among the most revolutionary is the “Halo,” a powered lift ducted fan system which allows a seamless transition from vertical to forward flight with unprecedented operational flexibility.

The Company's corporate office is located in Boca Raton, Florida.

2. Summary of significant accounting policies

Basis of Presentation

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant assumptions and estimates relate to the valuation of equity issued for services, valuation of equity associated with convertible debt, the valuation of derivative liabilities, and the valuation of deferred tax assets. Actual results could differ from these estimates.

Fair Value Measurements and Fair Value of Financial Instruments

The Company adopted ASC Topic 820, Fair Value Measurements. ASC Topic 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:

Level 1: Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.

Level 2: Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data.

Level 3: Inputs are unobservable inputs which reflect the reporting entity's own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information.

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

F-7

2. Summary of significant accounting policies (continued)

Deferred Taxes

The Company follows Accounting Standards Codification subtopic 740-10, Income Taxes ("ASC 740-10") for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability during each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods.

Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse and are considered immaterial. As of June 30, 2019 there are no deferred tax assets.

Cash and Cash Equivalents

For purposes of the Statements of Cash Flows, the Company considers highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company has no cash equivalents.

Accounts Receivable and Allowance for Doubtful Accounts

The Company monitors outstanding receivables based on factors surrounding the credit risk of specific customers, historical trends, and other information. The allowance for doubtful accounts is estimated based on an assessment of the Company's ability to collect on customer accounts receivable. There is judgment involved with estimating the allowance for doubtful accounts and if the financial condition of the Company's customers were to deteriorate, resulting in their inability to make the required payments, the Company may be required to record additional allowances or charges against revenues. The Company writes-off accounts receivable against the allowance when it determines a balance is uncollectible and no longer actively pursues its collection. The allowance for doubtful accounts is created by forming a credit balance which is deducted from the total receivables balance in the balance sheet. As of June, 30, 2019 there are no accounts receivable.

Revenue Recognition

Revenue includes product sales. The Company recognizes revenue from product sales in accordance with Topic 606 "Revenue Recognition in Financial Statements" which considers revenue realized or realizable and earned when all of the following criteria are met:

(i)	persuasive evidence of an arrangement exists,

| (ii) | the services have been rendered and all required milestones achieved, |

| (iii) | the sales price is fixed or determinable, and |

| (iv) | Collectability is reasonably assured. |

As of June 30, 2019, the Company has no revenue.

F-8

2. Summary of significant accounting policies (continued)

Convertible Debentures

If the conversion features of conventional convertible debt provide for a rate of conversion that is below market value at issuance, this feature is characterized as a beneficial conversion feature ("BCF"). A BCF is recorded by the Company as a debt discount pursuant to ASC Topic 470-20 "Debt with Conversion and Other Options." In those circumstances, the convertible debt is recorded net of the discount related to the BCF, and the Company amortizes the discount to interest expense, over the life of the debt. As of June 30, 2019 the Company’s convertible instruments do not have any BCFs.

Fair Value of Financial Instruments

Accounting Standards Codification subtopic 825-10, Financial Instruments ("ASC 825-10") requires disclosure of the fair value of certain financial instruments. The carrying value of cash and cash equivalents, accounts payable and accrued liabilities as reflected in the balance sheets, approximate fair value because of the short-term maturity of these instruments. All other significant financial assets, financial liabilities and equity instruments of the Company are either recognized or disclosed in the financial statements together with other information relevant for making a reasonable assessment of future cash flows, interest rate risk and credit risk. Where practicable the fair values of financial assets and financial liabilities have been determined and disclosed; otherwise only available information pertinent to fair value has been disclosed.

The Company follows Accounting Standards Codification subtopic 820-10, Fair Value Measurements and Disclosures ("ASC 820-10") and Accounting Standards Codification subtopic 825-10, Financial Instruments ("ASC 825-10"), which permits entities to choose to measure many financial instruments and certain other items at fair value.

Research and Development Expenses

Expenditures for research and development are expensed as incurred. The Company incurred research and development expenses of $8,384 for the year ended June 30, 2019.

Advertising, Marketing and Public Relations

The Company expenses advertising and marketing costs as they are incurred. There were no advertising expenses from inception through June 30, 2019.

Offering Costs

Costs incurred in connection with raising capital by the issuance of common stock are recorded as contra equity and deducted from the capital raised. There were no offering costs from inception through June 30, 2019.

F-9

Income Taxes

The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits as a component of general and administrative expenses. Our consolidated federal tax return and any state tax returns are not currently under examination.

The Company has adopted FASB ASC 740-10, Accounting for Income Taxes, which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually from differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.

Recent Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, issued as a new Topic, ASC Topic 606. The new revenue recognition standard supersedes all existing revenue recognition guidance. Under this ASU, an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2015-14, issued in August 2015, deferred the effective date of ASU 2014-09 to the first quarter of 2018, with early adoption permitted in the first quarter of 2017.

In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This update addresses a diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period.

On June 20, 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. ASU 2018-07 is intended to reduce cost and complexity and to improve financial reporting for share-based payments to nonemployees (for example, service providers, external legal counsel, suppliers, etc.). Under the new standard, companies will no longer be required to value non-employee awards differently from employee awards. Meaning that companies will value all equity classified awards at their grant-date under ASC 718 and forgo revaluing the award after this date. The Company adopted ASU 2018-07 on August 6, 2018. The adoption of this standard did not have a material impact on the financial statements.

The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the consolidated financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

F-10

3. Exchange agreement

Effective April 18, 2019, we entered into an Exchange Agreement with Banjo & Matilda, Inc, an OTC Pink Company. The agreement was pursuant to which Banjo shall acquire 100% of our issued and outstanding membership units in exchange for the issuance of Banjo shares of its Series A Preferred Stock constituting 84.4% of the total voting power of Banjo capital stock to be outstanding upon closing, after giving effect to the consummation of concurrent debt settlement and other capital stock issuances but before the issuance of shares of capital stock for investor relations purposes. As a result of the Exchange Agreement, the Company will become a wholly owned subsidiary of Banjo.

4. Convertible notes payable

On March 4, 2019 the Company issued a convertible note payable. The note was for a maximum of $50,000 and has a maturity date of one year. The note has a coupon rate of 8%. In the event the Company has been merged into or sold to the public company, Banjo & Matilda, Inc., at any time prior to the Maturity Date the holder has the option to convert the principal balance and any accrued interest at a conversion price of $.0033 per share. As of June 30, 2019, the Company received $35,000 in proceeds from the Note. For the year ended June 30, 2019, the Company recorded $378 in interest expense related to the note.

5. Commitments and contingencies

None.

6. Member’s capital

The Company received an initial contribution of $200 in exchange for 2,000,000 units.

On September 20, 2018, the Company received $50,000 in exchange for 9,333,334 membership units.

During the period from inception (August 6, 2018) through June 30, 2019, the Company issued 7,066,666 units for compensation valued at $707.

7. Going concern matters

The Company's financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. At June 30, 2019, the Company had $3,029 in cash and $33,848 in negative working capital, respectively. From inception (August 6, 2018) through June 30, 2019, the Company had a net loss of $83,249. Continued losses may adversely affect the liquidity of the Company in the future. Therefore, the factors noted above raise substantial doubt about our ability to continue as a going concern. The recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon continued operations of the Company, which in turn is dependent upon the Company's ability to raise additional capital, obtain financing and to succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s existence is dependent upon management’s ability to develop profitable operations and resolve its liquidity problems.

F-11

8. Commitments and contingencies

None.

9. Subsequent events

Convertible notes payable, related party

Subsequent to June 30, 2019, the Company issued additional convertible notes payable to a related party aggregating $33,000. The notes have a coupon rate of 8% and a term of six months. The agreements provided that in the event AAT is merged into Banjo (“Company”), at any time prior to the Maturity Date the holder has the option to convert the principal balance and any accrued interest at a conversion price of $.0033 per share.

Convertible notes payable, related party

Subsequent to June 30, 2019, the Company issued additional Convertible Notes aggregating $342,929. The notes have a coupon rate of 6% and a term of six months. The notes are convertible at a fixed price of $0.0033 per share. The agreements provided that in the event AAT is merged into Banjo (“Company”), at any time prior to the Maturity Date the holder has the option to convert the principal balance and any accrued interest at a conversion price of $.0033 per share.

Lease Agreement

On September 24, 2019, the Company entered into an agreement to lease 2,911 square feet of office space located at Innovation Centre No. 1, 3998 FAU Boulevard, Boca Raton, Florida. The agreement commenced on November 1, 2019 and expires on January 1, 2025. The Company will account for the lease under the guidance of ASC 842.

Exchange agreement

Consummation of the Exchange Agreement was effective on September 30, 2019. Pursuant to the Exchange Agreement, the members of AAT received 2,750,000 shares of the Banjo & Matilda, Inc.’s Series A Preferred Stock to the members of AAT in exchange for the 10,000,000 member units.

F-12

banj_ex992.htm EXHIBIT 99.2

AMERICAN AVIATION TECHNOLOGES, LLC

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2019 AND FROM INCEPTION (AUGUST 6, 2018) THROUGH SEPTEMBER 30, 2018

INDEX TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

Financial Statements

| Condensed Balance Sheets as of September 30, 2019 (Unaudited) and June 30, 2019 | F-1 |

| Condensed Statements of Operations for the three months ended September 30, 2019 (Unaudited) and from inception (August 6, 2018) through September 30, 2018 (Unaudited) | F-2 |

| Condensed Statements of Changes in Member's Deficit for the three months ended September 30, 2019 (Unaudited) and from inception (August 6, 2018) through September 30, 2018 (Unaudited) | F-3 |

| Condensed Statements of Cash Flows for the three months ended September 30, 2019 (Unaudited) and from inception (August 6, 2018) through September 30, 2018 (Unaudited) | F-4 |

| Notes to Unaudited Condensed Financial Statements | F-5 |

F-1

American Aviation Technologies, LLC

Condensed Balance Sheets

| Cash | $ | 169,796 | | $ | 3,029 | |

| Total current assets | | 169,796 | | | 3,029 | | | Total assets | $ | 169,796 | | $ | 3,029 | | | Liabilities & member's capital | | | | | | |

| Accrued expenses | $ | 1,809 | | $ | 1,877 | |

| Convertible notes payable, related party | | 68,000 | | | 35,000 | |

| Convertible notes payable | | 153,000 | | | - | |

| Total current liabilities | | 222,809 | | | 36,877 | | | Total liabilities | | 222,809 | | | 36,877 | | | Commitments and contingencies (Note 5) | | | | | | | | Member's deficit | | | | | | |

| Member's capital | | 50,907 | | | 50,907 | |

| Accumulated deficit | | (103,920 | ) | | (84,755 | ) |

| Total member's deficit | | (53,013 | ) | | (33,848 | ) |

| Total liabilities and member's deficit | $ | 169,796 | | $ | 3,029 | |

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

F-2

American Aviation Technologies, LLC

Condensed Statements of Operations<br> <br>(Unaudited)
Operating expenses:

| Research and development expense | $ | 6,339 | | $ | - |

| Professional fees | | 10,560 | | | - |

| Other general and administrative expenses | | 834 | | | - |

| Total operating expenses | | 17,733 | | | - | | Operating loss | | (17,733 | ) | | - | | Other expenses: | | | | | |

| Interest expense | | (1,431 | ) | | - |

| Total other expenses | | (1,431 | ) | | - | | Net loss | $ | (19,164 | ) | $ | - |

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

F-3

American Aviation Technologies, LLC

| Statement of Changes in Member's Deficit |

| For the three months ended September 30, 2019 (Unaudited) |

	Member's Capital				Accumulated

| Balance June 30, 2019 | **** | 10,000,000 | | 50,907 | **** | (84,756 | ) | **** | (33,849 | ) | | Net Loss | | - | | - | | (19,164 | ) | | (19,164 | ) | | Balance September 30, 2019 | **** | 10,000,000 | $ | 50,907 | $ | (103,920 | ) | $ | (53,013 | ) |

American Aviation Technologies, LLC

| Statement of Changes in Member's Capital |

| From inception (August 6, 2018) to September 30, 2018 (Unaudited) |

	Member's Capital				Accumulated

| Inception, August 6, 2018 | **** | - | $ | 50,907 | $ | - | $ | 50,907 | | Net Loss | | - | | - | | - | | - | | Balance September 30, 2018 | | | $ | 50,907 | $ | - | $ | 50907 |

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

F-4

American Aviation Technologies, LLC

| Condensed Statements of Cash Flows (Unaudited) | | | | | |

	For the three months ended September 30,<br> <br>2019			From Inception (August 6, 2018) throughSeptember 30,<br> <br>2018

| Net Loss | $ | (19,164 | ) | $ | - |

| Changes in operating assets & liabilities | | | | | |

| Accrued expenses | | (69 | ) | | - |

Net cash used by operating activities		(19,233	)		-

| Proceeds from convertible notes payable | | 186,000 | | | - |

| Net cash provided by financing activities | | 186,000 | | | - | | Increase in Cash | | 166,767 | | | - | | Cash at beginning of period | | 3,029 | | | - | | Cash at end of period | $ | 169,796 | | $ | - | | Supplemental Cash Flow Information | | | | | |

| Cash paid for interest | $ | - | | $ | - |

| Cash paid for income taxes | $ | - | | $ | - |

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

F-5

AMERICAN AVIATION TECHNOLOGIES, LLC

NOTES TO

UNAUDITED CONDENSED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2019

AND FROM INCEPTION (AUGUST 6, 2018) THROUGH SEPTEMBER 30, 2018

(UNAUDITED)

1. Nature of operations

The Company's corporate office is located in Boca Raton, Florida.

2. Summary of significant accounting policies

Basis of Presentation

The unaudited condensed financial statements of the Company and the accompanying notes included in this Quarterly Report are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of the unaudited condensed financial statements have been included. Such adjustments are of a normal, recurring nature. The unaudited condensed financial statements, and the accompanying notes, are prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). Results for the interim periods presented are not necessarily indicative of the results that might be expected for the entire fiscal year. These financial statements should be read in conjunction with the company’s latest annual financial statements.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant assumptions and estimates relate to the valuation of equity issued for services. Actual results could differ from these estimates.

Fair Value Measurements and Fair Value of Financial Instruments

Level 1: Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.

F-6

Deferred Taxes

Cash and Cash Equivalents

Accounts Receivable and Allowance for Doubtful Accounts

Revenue Recognition

(i)	persuasive evidence of an arrangement exists,

| (ii) | the services have been rendered and all required milestones achieved, |

| (iii) | the sales price is fixed or determinable, and |

| (iv) | Collectability is reasonably assured. |

F-7

For the three months ended September 30, 2019 and from inception (August 6, 2018) through September 30, 2018, the Company has no revenue.

Convertible Debentures

If the conversion features of conventional convertible debt provide for a rate of conversion that is below market value at issuance, this feature is characterized as a beneficial conversion feature ("BCF"). A BCF is recorded by the Company as a debt discount pursuant to ASC Topic 470-20 "Debt with Conversion and Other Options." In those circumstances, the convertible debt is recorded net of the discount related to the BCF, and the Company amortizes the discount to interest expense, over the life of the debt. As of September 30, 2019 and June 30, 2019 the Company’s convertible instruments do not have any BCFs.

Fair Value of Financial Instruments

Accounting Standards Codification subtopic 825-10, Financial Instruments ("ASC 825-10") requires disclosure of the fair value of certain financial instruments. The carrying value of cash, accounts payable and accrued liabilities as reflected in the balance sheets, approximate fair value because of the short-term maturity of these instruments. All other significant financial assets, financial liabilities and equity instruments of the Company are either recognized or disclosed in the financial statements together with other information relevant for making a reasonable assessment of future cash flows, interest rate risk and credit risk. Where practicable the fair values of financial assets and financial liabilities have been determined and disclosed; otherwise only available information pertinent to fair value has been disclosed.

Research and Development Expenses

Expenditures for research and development are expensed as incurred. The Company incurred research and development expenses of $6,339 and $0 for the three months ended September 30, 2019 and from inception (August 6, 2018) through September 30, 2018, respectively.

Advertising, Marketing and Public Relations

The Company expenses advertising and marketing costs as they are incurred. There were no advertising expenses for the three months ended September 30, 2019 and from inception (August 6, 2018) through September 30, 2018, respectively.

Offering Costs

F-8

Income Taxes

Recent Accounting Pronouncements

3. Exchange agreement

Executed April 18, 2019, we entered into an Exchange Agreement with Banjo & Matilda, Inc., an OTC Pink Company. The agreement was pursuant to which Banjo shall acquire 100% of our issued and outstanding membership units in exchange for the issuance of Banjo shares of its Series A Preferred Stock constituting 86.39% of the total voting power of Banjo capital stock to be outstanding upon closing, after giving effect to the consummation of concurrent debt settlement and other capital stock issuances but before the issuance of shares of capital stock for investor relations purposes. As a result of the Exchange Agreement, the Company will become a wholly owned subsidiary of Banjo.

F-9

The Exchange Agreement is subject to the satisfaction of certain conditions as set forth in the Exchange Agreement. At Closing, two additional directors will be added, resulting in a total of 4 directors serving post-closing. Consummation of the Exchange Agreement was effective on September 30, 2019. Pursuant to the Exchange Agreement, the members of AAT received 2,750,000 shares of the Banjo & Matilda, Inc.’s Series A Preferred Stock to the members of AAT in exchange for the 10,000,000 member units.

4. Convertible notes payable

Between March 4, 2019 and September 23, 2019, the Company issued a convertible notes payable to a related party with an aggregate face value of $68,000 with a coupon rate of 8%. The notes have a maturity date of six months. In the event the Company has been merged into or sold to the public company, Banjo & Matilda, Inc., at any time prior to the Maturity Date the holder has the option to convert the principal balance and any accrued interest at a conversion price of $0.0033 per share. For the three months ended September 30, 2019 the Company recorded $917 in interest expense.

Between September 27, 2019 and September 30, 2019 the Company issued a convertible notes payable with an aggregate face value of $153,000 with a coupon rate of 6%. The notes have a maturity date of six months. In the event the Company has been merged into or sold to the public company, Banjo & Matilda, Inc., at any time prior to the Maturity Date the holder has the option to convert the principal balance and any accrued interest at a conversion price of $0.0033 per share. For the three months ended September 30, 2019 the Company recorded $46 in interest expense.

5. Commitments and contingencies

During the normal course of business, the Company may be exposed to litigation. When the Company becomes aware of potential litigation, it evaluates the merits of the case in accordance with FASB ASC 450-20-50, Contingencies. The Company evaluates its exposure to the matter, possible legal or settlement strategies and the likelihood of an unfavorable outcome. If the Company determines that an unfavorable outcome is probable and can be reasonably estimated, it establishes the necessary accruals. As of September 30, 2019, the Company is not aware of any contingent liabilities that should be reflected in the condensed unaudited financial statements.

6. Member’s capital

The Company received an initial contribution of $200 in exchange for 2,000,000 units.

On September 20, 2018, the Company received $50,000 in exchange for 9,333,334 membership units.

During the period from inception (August 6, 2018) through September 30, 2019, the Company issued 7,066,666 units for compensation valued at $707.

7. Going concern matters

The Company's financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. At September 30 2019 and June 30, 2019, the Company had $169,796 and $3,029 in cash and $53,013 and $33,848 in negative working capital, respectively. For the three months ended September 30, 2019 and from inception (August 6, 2018) through September 30, 2018, the Company had a net loss of $19,164 and $0, respectively. Continued losses may adversely affect the liquidity of the Company in the future. Therefore, the factors noted above raise substantial doubt about our ability to continue as a going concern. The recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheets is dependent upon continued operations of the Company, which in turn is dependent upon the Company's ability to raise additional capital, obtain financing and to succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s existence is dependent upon management’s ability to develop profitable operations and resolve its liquidity problems.

8. Subsequent events

Convertible notes payable, related party

Subsequent to September 30, 2019, the Company issued additional Convertible Notes aggregating $189,929. The notes have a coupon rate of 6% and a term of six months. The notes are convertible at a fixed price of $0.0033 per share. The agreements provided that in the event AAT is merged into Banjo (“Company”), at any time prior to the Maturity Date the holder has the option to convert the principal balance and any accrued interest at a conversion price of $.0033 per share.

Lease Agreement

The Company entered into an agreement to lease 2,911 square feet of office space located at Innovation Centre No. 1, 3998 FAU Boulevard, Boca Raton, Florida, which commenced on November 1, 2019 and expires on January 1, 2025. The Company will account for the lease under the guidance of ASC 842.

F-10

banj_ex993.htm

EXHIBIT 99.3

BANJO & MATILDA, INC.

INDEX TO PRO FORMA FINANCIAL INFORMATION

Unaudited Pro Forma Combined Financial Informationof Banjo & Matilda Inc. and American Aviation Technologies, LLC

	Page

| Unaudited Pro Forma Financial Information | 2 |

| Unaudited Pro Forma Condensed Combined Balance Sheets as of September 30, 2019 | 3 |

| Unaudited Pro Forma Condensed Combined Balance Sheets as of June 30, 2019 | 4 |

| Unaudited Pro Forma Condensed Combined Statements of Operations for the Three Months Ended September 30, 2019 | 5 |

| Unaudited Pro Forma Condensed Combined Statements of Operations for the Year Ended June 30, 2019 | 6 |

| Notes to the Unaudited Pro Forma Condensed Combined Financial Statements | 7 |

1

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

The unaudited pro forma condensed combined balance sheet presents the historical balance sheets of Banjo & Matilda, Inc. (“Banjo”) and American Aviation Technologies, LLC (“AAT”) as of September 30, 2019 and June 30, 2019 and accounts for the merger of AAT and Banjo as a reverse merger transaction, with AAT as the accounting acquirer giving effect to the transaction as if it had occurred as of June 30, 2019. On April 16, 2019, Banjo & Matilda, Inc. (“BANJ”) and American Aviation Technologies LLC (“AAT”) entered into an Exchange Agreement dated as of April 16, 2019 pursuant to which Banjo shall acquire 100% of the issued and outstanding membership units of AAT in exchange for the issuance of Banjo shares of its Series A Preferred Stock constituting 86.39% of the total voting power of Banjo capital stock to be outstanding upon closing, after giving effect to the consummation of concurrent debt settlement and other capital stock issuances but before the issuance of shares of capital stock for investor relations purposes. As a result of the Exchange Agreement, AAT will become a wholly owned subsidiary of the Company.

The AAT balance sheet information was derived from its unaudited balance sheet as of September 30, 2019 and audited balance sheet as of June 30, 2019. The Banjo balance sheet information was derived from its unaudited balance sheet as of September 30, 2019 which is included in its interim report Form 10-Q that was filed with the SEC on April 23,2020, and its audited balance sheet as of June 30, 2019, included in its annual report Form 10-K that was filed with the SEC on March 31, 2020.

The unaudited pro forma condensed combined statements of operations are based on the historical statements of AAT and Banjo and combine the results of operations of (i) AAT from inception (August 6, 2018) through June 30, 2019 and (ii) Banjo for the year ended June 30, 2019, giving effect to the transaction as if it occurred on August 6, 2018 (AAT’s inception), and reflecting the pro forma adjustments expected to have a continuing impact on the combined results. Additionally, the unaudited pro forma condensed combined statements of operations are based on the historical statements of AAT and Banjo and combine the results of operations of (i) AAT for the three months ended September 30, 2019 and (ii) Banjo for the three months ended September 30, 2019, giving effect to the transaction as if it occurred on August 6, 2018 (AAT’s inception), and reflecting the pro forma adjustments expected to have a continuing impact on the combined results.

The historical results of operations of AAT was derived from its unaudited statement of operations for the three months ended September 30, 2019 and its audited statement of operations from inception (August 6, 2018) through June 30, 2019. The historical results of operations for Banjo was derived from its unaudited statement of operations for the three months ended September 30, 2019 and its audited statement of operations for the year ended June 30, 2019.

The unaudited pro forma condensed combined financial statements are for informational purposes only. They do not purport to indicate the results that would have actually been obtained had the reverse acquisition been completed on the assumed dates or for the periods presented, or that may be realized in the future. Furthermore, while the pro forma financial information reflects transaction costs incurred with the merger of AAT with and into Banjo on September 30, 2019, the pro forma financial information does not reflect the impact of any reorganization or restructuring expenses or operating efficiencies resulting from the transaction. The unaudited pro forma condensed combined financial statements, including the notes thereto, are qualified in their entirety by reference to, and should be read in conjunction with, the historical financial statements referred to above.

2

BANJO & MATILDA, INC.

| UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEETS | | | | | | | | | | | |

AS OF SEPTEMBER 30, 2019

| Cash | - | | $ | 169,796 | | $ | - | | $ | 169,796 | |

| Total current assets | - | | | 169,796 | | | - | | | 169,796 | | | Total assets | - | | $ | 169,796 | | $ | - | | $ | 169,796 | | | Liabilities | | | | | | | | | | | |

| Trade and other payables | 49,902 | | $ | - | | $ | - | | $ | 49,902 | |

| Accrued interest | - | | | 46 | | | - | | | 46 | |

| Accrued interest, related parties | - | | | 1,764 | | | - | | | 1,764 | |

| Convertible notes payable | - | | | 153,000 | | | - | | | 153,000 | |

| Convertible notes payable, related party | - | | | 68,000 | | | - | | | 68,000 | |

| Total current liabilities | 49,902 | | | 222,810 | | | - | | | 272,712 | | | Total liabilities | 49,902 | | | 222,810 | | | - | | | 272,712 | | | Stockholders' equity | | | | | | | | | | | |

| Series A Preferred stock, 0.00001 par value; 3,500,000 designated; 3,113,368 shares issued and outstanding at September 30, 2019 | 3 | | | - | | | 28 | (i) | | 31 | |

| Common stock, 0.00001 par value; 100,000,000 shares authorized; 69,584,149 shares issued and outstanding at September 30, 2019 | 696 | | | - | | | - | | | 696 | |

| Additional paid-in capital | 15,968,175 | | | 50,907 | | | (15,703,074 | )(h) (i) | | 316,008 | |

| Other accumulated comprehensive gain | 100,007 | | | - | | | (100,007 | )(g) | | - | |

| Accumulated deficit | (16,118,783 | ) | | (103,921 | ) | | 15,803,053 | | | (419,651 | ) |

| Total stockholders' deficit | (49,902 | ) | | (53,014 | ) | | - | | | (102,916 | ) |

| Total liabilities and stockholders' deficit | - | | $ | 169,796 | | $ | - | | $ | 169,796 | |

All values are in US Dollars.

See notes to the unaudited pro forma condensed combined financial statements

3

BANJO & MATILDA, INC.

| UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEETS | | | | | | | | | | | |

AS OF JUNE 30, 2019

| Cash | - | | $ | 3,029 | | $ | - | | $ | 3,029 | |

| Total current assets | - | | | 3,029 | | | - | | | 3,029 | | | Total assets | - | | $ | 3,029 | | $ | - | | $ | 3,029 | | | Liabilities | | | | | | | | | | | |

| Trade and other payables | 105,692 | | $ | 1,877 | | $ | (55,789 | )(d) | $ | 51,780 | |

| Trade and other payables, related parties | 576,290 | | | - | | | (576,290 | )(d) | | - | |

| Settlement payable | 250,000 | | | - | | | (250,000 | )(d) | | - | |

| Trade financing | 56,194 | | | - | | | (56,194 | )(d) | | - | |

| Accrued interest | 531,065 | | | - | | | (531,065 | )(d) | | - | |

| Accrued interest, related parties | 317,218 | | | - | | | (317,218 | )(d) | | - | |

| Loans payable, net of discount and deferred interest | 580,875 | | | - | | | (580,875 | )(d) | | - | |

| Convertible notes payable | 171,814 | | | - | | | (171,814 | )(d) | | - | |

| Convertible notes payable, related party | 443,871 | | | 35,000 | | | (443,871 | )(d) | | 35,000 | |

| Total current liabilities | 3,033,019 | | | 36,877 | | | (2,983,116 | ) | | 86,780 | | | Total liabilities | 3,033,019 | | | 36,877 | | | (2,983,116 | ) | | 86,780 | | | Stockholders' equity | | | | | | | | | | | |

| Series A Preferred stock, 0.00001 par value; 3,500,000 designated; 3,113,368 shares issued and outstanding at June 30, 2019 | 10 | | | - | | | 21 | (c)(e)(f) | | 31 | |

| Common stock, 0.00001 par value; 100,000,000 shares authorized; 69,584,149 shares issued and outstanding at June 30, 2019 | 695 | | | - | | | - | | | 695 | |

| Additional paid-in capital | 7,377,335 | | | 50,907 | | | (7,427,964 | )(b)(c)(d)(e)(f) | | 278 | |

| Other accumulated comprehensive gain | 100,007 | | | | | | (100,007 | )(a) | | - | |

| Accumulated deficit | (10,511,066 | ) | | (84,755 | ) | | 10,511,066 | (a)(d)(e) | | (84,755 | ) |

| Total stockholders' deficit | (3,033,019 | ) | | (33,848 | ) | | 2,983,116 | | | (83,751 | ) |

| Total liabilities and stockholders' deficit | - | | $ | 3,029 | | $ | - | | $ | 3,029 | |

All values are in US Dollars.

See notes to the unaudited pro forma condensed combined financial statements

4

BANJO & MATILDA, INC.

| UNAUDITED CONDENSED COMBINED STATEMENTS OF OPERATIONS |

| FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2019 |

	**<br> <br>Banjo & Matilda, Inc. (Historical)**			American Aviation Technologies<br> <br>(Historical)			**<br> <br>Pro Forma<br> <br>Adjustments**			**<br> <br>Pro Forma Combined**

| Research and development expense | $ | - | | $ | 6,339 | | $ | - | | $ | 6,339 | |

| Professional fees | | 3,312,002 | | | 10,560 | | | (3,312,002 | )(j) | | 10,560 | |

| Other general and administrative expenses | | 24,500 | | | 834 | | | - | | | 25,334 | |

| Total operating expenses | | 3,336,502 | | | 17,733 | | | (3,312,002 | ) | | 42,233 | | | Loss from operations | | (3,336,502 | ) | | (17,733 | ) | | 3,312,002 | | | (42,233 | ) | | Other income (expense) | | | | | | | | | | | | |

| Interest expense | | (49,909 | ) | | (1,202 | ) | | - | | | (51,111 | ) |

| Interest expense, related parties | | (22,283 | ) | | (230 | ) | | - | | | (22,513 | ) |

| Loss on settlement of debt | | (3,050,886 | ) | | - | | | 2,831,847 | (j) | | (219,039 | ) |

| Gain on forgiveness of debt | | 459,049 | | | - | | | (459,049 | )(j) | | - | |

| Total other income (expense) | | (2,664,029 | ) | | (1,432 | ) | | 2,372,798 | | | (292,663 | ) | | Net loss | | (6,000,531 | ) | | (19,165 | ) | | 5,684,800 | | | (334,896 | ) | | Net Income (Loss) per Common Share - Basic and Diluted | $ | (0.09 | ) | | | | | | | $ | (0.00 | ) | | Weighted Average Number of Common Shares Outstanding - Basic and Diluted | | 69,584,149 | | | | | | | | | 69,584,149 | |

See notes to the unaudited pro forma condensed combined financial statements

5

BANJO & MATILDA, INC.<br> <br>UNAUDITED CONDENSED COMBINED STATEMENTS OF OPERATIONS
	For the Year Ended June 30, 2019			From Inception (August 6, 2018) through June 30, 2019

| Research and development expense | $ | - | | $ | 8,384 | | $ | - | | $ | 8,384 | |

| Payroll and employee related expenses | | 135,000 | | | - | | | - | | | 135,000 | |

| Professional fees | | - | | | 64,311 | | | 3,312,002 | | | 3,376,313 | |

| Other general and administrative expenses | | 55,016 | | | 11,682 | | | - | | | 66,698 | |

| Total operating expenses | | 190,016 | | | 84,377 | | | 3,312,002 | | | 3,586,395 | | | Loss from operations | | (190,016 | ) | | (84,377 | ) | | (3,312,002 | ) | | (3,586,395 | ) | | Other income (expense) | | | | | | | | | | | | |

| Interest expense | | (189,117 | ) | | (378 | ) | | - | | | (189,495 | ) |

| Interest expense, related parties | | (88,394 | ) | | - | | | - | | | (88,394 | ) |

| Loss on settlement of debt | | - | | | - | | | (2,831,847 | ) | | (2,831,847 | ) |

| Gain on forgiveness of debt | | 18,006 | | | - | | | 391,558 | | | 409,564 | |

| Total other income (expense) | | (259,505 | ) | | (378 | ) | | (2,440,289 | ) | | (2,700,172 | ) | | Loss from continuing operations | | (449,521 | ) | | (84,755 | ) | | (5,752,291 | ) | | (6,286,567 | ) | | Discontinued operations: | | | | | | | | | | | | |

| Loss from operations of discontinued operations | | (54,483 | ) | | - | | | - | | | (54,483 | ) |

| Loss on disposition of discontinued operations | | (3,883,952 | ) | | - | | | - | | | (3,883,952 | ) |

| | | (3,938,435 | ) | | - | | | - | | | (3,938,435 | ) | | Net loss | $ | (4,387,956 | ) | $ | (84,755 | ) | $ | (5,752,291 | ) | $ | (10,225,002 | ) | | Basic diluted earnings per share on net loss: | | | | | | | | | | | | |

| Continuing operations | | (0.01 | ) | | | | | | | | (0.09 | ) |

| Discontinued operations | | (0.06 | ) | | | | | | | | (0.06 | ) |

| | | (0.06 | ) | | | | | | | | (0.15 | ) | | Weighted average shares outstanding | | 69,584,149 | | | | | | | | | 69,584,149 | |

See notes to the unaudited pro forma condensed combined financial statements

6

NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS

On April 16, 2019, Banjo & Matilda, Inc. (“BANJ”) and American Aviation Technologies LLC (“AAT”) entered into an Exchange Agreement dated as of April 16, 2019 pursuant to which Banjo shall acquire 100% of the issued and outstanding membership units of AAT in exchange for the issuance of Banjo shares of its Series A Preferred Stock constituting 86.39% of the total voting power of Banjo capital stock to be outstanding upon closing, after giving effect to the consummation of concurrent debt settlement and other capital stock issuances but before the issuance of shares of capital stock for investor relations purposes. As a result of the Exchange Agreement, AAT will become a wholly owned subsidiary of the Company.

The pro forma adjustments to the June 30, 2019 combined unaudited financial statements include the following:

a)	To eliminate the accumulated deficit account and other comprehensive gain accounts of Banjo & Matilda, Inc (See Entry #1)
b)	To eliminate the equity account of American Aviation Technologies, LLC (See Entry #1)
c)	To record Preferred Series A stock issued pursuant to the Merger Agreement (See Entry #1)
d)	Extinguishment of liabilities by (i) recording the issuance 185,427 shares of Series A Preferred Stock; related to $2,580,963 in liabilities and (ii) recording the forgiveness of $391,561 in liabilities (See Entry #2)
e)	To record the issuance 165,000 shares of Series A Preferred Stock for compensation (See Entry #2)
f)	To record the return of 1,000,000 shares of Series A Preferred Stock by the Company’s former CEO on 9/30/19 (See Entry #2)

Entry #1 as follows:

	Debit		Credit

| Accumulated deficit | | | | 16,262,355 | (a) |

| Other comprehensive gain | | 100,007 | | | (a) |

| Additional paid in capital | | 106,861,442 | | | |

| Additional paid in capital (AAT) | | 50,907 | | | (b) |

| Preferred stock | | | | 28 | (c) |

| Additional paid in capital | | | | 90,749,973 | (c) |

Entry #2 as follows:

	Debit		Credit

| Trade and other payables | | 55,789 | | | (d) |

| Trade and other payables, related parties | | 576,290 | | | (d,g) |

| Settlement payable | | 250,000 | | | (d) |

| Trade financing | | 56,194 | | | (d) |

| Accrued interest | | 531,065 | | | (d,g) |

| Accrued interest, related parties | | 317,218 | | | (d,g) |

| Loans payable, net of discount and deferred interest | | 580,875 | | | (d) |

| Convertible notes payable | | 171,814 | | | (d) |

| Convertible loan from related parties | | 443,871 | | | (d) |

| Preferred stock | | 7 | | | (d,e,f) |

| Additional paid in capital | | | | 8,734,412 | (d,e,f) |

| Accumulated deficit | | 5,751,289 | | | (e,g) |

7

The pro forma adjustments to the September 30, 2019 combined unaudited financial statements include the following:

g)	To eliminate the accumulated deficit account through June 30, 2019 and other comprehensive gain accounts of Banjo & Matilda, Inc.
h)	To eliminate the equity account of American Aviation Technologies, LLC.
i)	To record Preferred Series A stock issued pursuant to the Merger Agreement.
j)	For pro forma purposes, the extinguishment of certain debt and shares issued for compensation were reflected in the June 30, 2019 period. As such these amounts reflected in the unaudited statement of operations for the three months ended September 30, 2019 have to be removed from the 9/30/19 pro forma.

The pro form adjustment entry at September 30, 2019 is as follows:

	Debit		Credit

| Accumulated deficit | | | | 15,803,053 | (a) |

| Other comprehensive gain | | 100,007 | | | (a) |

| Additional paid in capital | | 106,861,442 | | | |

| Additional paid in capital (AAT) | | 50,907 | | | (b) |

| Preferred stock | | | | 28 | (c) |

| Additional paid in capital | | | | 90,749,973 | (c) |

8