UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
Exhibit
UNAUDITED
PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
(Currency
expressed in United States Dollars (“US$”))
On
September 29, 2009, Asia Global Holdings Corp. (“the Company” or “AAGH”))
entered into an agreement for the purchase of all the outstanding shares of
common stock of Ultra Professional Limited (“UPL”, a company incorporated under
the laws of the British Virgin Islands), by issuing 100,000,000 shares of common
stock of the Company to the sole shareholder of UPL. This share exchange
transaction resulted in the shareholder of UPL obtaining a majority voting
interest in the Company. Accounting principles generally accepted in the United
States of America (“US GAAP”) require that the company whose shareholders retain
the majority interest in a combined entity being treated as the acquirer for
accounting purposes, resulting in a reverse acquisition. Accordingly, the stock
exchange transaction has been accounted for as recapitalization of
AAGH.
On
September 30, 2009, the Company entered into and closed an agreement to sell its
wholly-owned subsidiary, Sino Trade-Intelligent Development Corp., Limited (a
corporation organized under the laws of the Hong Kong Special Administrative
Region), to Ms. Xxx Xx, for US$1. This transaction was negotiated at
arms-length. Ms. Xxx Xx is not an affiliate of any of the Company’s
shareholders.
The
following unaudited pro forma condensed combined financial information give
effect to the aforementioned reverse acquisition of the Company and UPL and
disposal of its subsidiary, based on the assumptions and adjustments set forth
in the accompanying notes to the unaudited pro forma condensed combined
financial information which management believes are reasonable. The unaudited
pro forma condensed combined balance sheet is derived from the historical
balance sheets of AAGH and UPL as of September 30, 2009 and represents the
combined financial position of AAGH and UPL as of September 30, 2009, as if
reverse acquisition and disposal of a subsidiary occurred on September 30, 2009.
The unaudited pro forma condensed combined statement of operations gives effect
to the reverse acquisition of AAGH by UPL and disposal of a subsidiary by AAGH,
assuming that both transactions took place on the beginning of the first
accounting period presented in these pro forma condensed combined financial
information. The pro forma condensed combined financial information should be
read in conjunction with the audited historical financial statements and related
notes of AAGH and UPL.
The
unaudited pro forma combined financial information is not necessarily indicative
of operating results or the financial position that the disposal of a subsidiary
and reverse acquisition of AAGH was in existence assuming both transactions were
completed, and is not necessarily indicative of future operating
results.
(SUCCESSOR
OF ULTRA PROFESSIONAL LIMITED)
UNAUDITED
PRO FORMA CONDENSED COMBINED BALANCE SHEET
AS
OF SEPTEMBER 30, 2009
(Currency
expressed in United States Dollars (“US$”))
|
AAGH
|
UPL
|
Proforma
Adjustment (1)
|
Proforma
Adjustment (2)
|
Pro forma
combined
|
||||||||||||||||
|
ASSETS
|
||||||||||||||||||||
|
Current
assets:
|
||||||||||||||||||||
|
Cash
and cash equivalents
|
$ | 3,470 | $ | 1,001 | - | (3,470 | ) | $ | 1,001 | |||||||||||
|
Accounts
receivable, net
|
- | 57,692 | - | - | 57,692 | |||||||||||||||
|
Amounts
due from related parties
|
39,677 | - | - | (39,677 | ) | - | ||||||||||||||
|
Income
tax recoverable
|
183,151 | - | - | (183,151 | ) | - | ||||||||||||||
|
Prepayments
and other receivables
|
62,986 | - | - | (62,986 | ) | - | ||||||||||||||
|
Total
current assets
|
289,284 | 58,693 | 58,693 | |||||||||||||||||
|
Non-current
assets:
|
||||||||||||||||||||
|
Intangible
assets, net
|
2,967 | - | (2,967 | ) | - | |||||||||||||||
|
Plant
and equipment, net
|
1,808 | 1,018 | - | (1,808 | ) | 1,018 | ||||||||||||||
|
TOTAL
ASSETS
|
$ | 294,059 | $ | 59,711 | $ | 59,711 | ||||||||||||||
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||||||||||||||
|
Current
liabilities:
|
||||||||||||||||||||
|
Bank
overdraft
|
$ | 9,129 | $ | - | - | (9,129 | ) | $ | - | |||||||||||
|
Secured
bank loans
|
298,443 | - | - | (298,443 | ) | - | ||||||||||||||
|
Obligation
under capital lease
|
117,670 | - | - | (117,670 | ) | - | ||||||||||||||
|
Accounts
payable and accrued liabilities
|
844,001 | 34,872 | - | (792,719 | ) | 86,154 | ||||||||||||||
|
Amounts
due to directors
|
- | 6,203 | - | - | 6,203 | |||||||||||||||
|
Amount
due to related parties
|
15,289 | - | - | (15,289 | ) | - | ||||||||||||||
|
Income
tax payable
|
11,752 | 3,148 | - | (11,752 | ) | 3,148 | ||||||||||||||
|
Total
current liabilities
|
1,296,284 | 44,223 | 95,505 | |||||||||||||||||
|
Stockholders’
(deficit) equity:
|
||||||||||||||||||||
|
Preferred
stock
|
250 | - | - | - | 250 | |||||||||||||||
|
Common
stock
|
142,138 | 100 | 99,900 | - | 242,138 | |||||||||||||||
|
Additional
paid in capital
|
18,029,654 | - | (18,029,654 | ) | - | |||||||||||||||
|
Accumulated
other comprehensive loss
|
(7,810 | ) | - | 7,810 | - | |||||||||||||||
|
(Accumulated
deficit) retained earnings
|
(19,166,457 | ) | 15,388 | (99,900 | ) | 18,972,787 | (278,182 | ) | ||||||||||||
|
Total
stockholders’ (deficit) equity
|
(1,002,225 | ) | 15,488 | (35,794 | ) | |||||||||||||||
|
TOTAL
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
|
$ | 294,059 | $ | 59,711 | $ | 59,711 | ||||||||||||||
(SUCCESSOR
OF ULTRA PROFESSIONAL LIMITED)
UNAUDITED
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
From
January 1, 2009 to September 30, 2009
(Currency
expressed in United States Dollars (“US$”))
|
AAGH
|
UPL
|
Proforma
Adjustment (1)
|
Proforma
Adjustment (2)
|
Pro forma
Combined
|
||||||||||||||||
|
Revenue,
net
|
$ | 36,603 | $ | 57,692 | - | (36,603 | ) | $ | 57,692 | |||||||||||
|
Cost
of revenue
|
- | (17,949 | ) | - | - | (17,949 | ) | |||||||||||||
|
Gross
profit
|
36,603 | 39,743 | - | (36,603 | ) | 39,743 | ||||||||||||||
|
Operating
expenses:
|
||||||||||||||||||||
|
General
and administrative
|
(149,796 | ) | (21,206 | ) | - | (139,796 | ) | (31,206 | ) | |||||||||||
|
Total
operating expenses
|
(149,796 | ) | (21,206 | ) | - | (31,206 | ) | |||||||||||||
|
(Loss)
income from operation
|
(113,193 | ) | 18,537 | - | 8,537 | |||||||||||||||
|
Other
income (expenses):
|
||||||||||||||||||||
|
Other
income
|
13 | - | - | (13 | ) | - | ||||||||||||||
|
Other
expense
|
(37,849 | ) | - | - | 37,849 | - | ||||||||||||||
|
(Loss)
income before income taxes
|
(151,029 | ) | 18,537 | - | 8,537 | |||||||||||||||
|
Income
tax expense
|
- | (3,149 | ) | - | - | (3,149 | ) | |||||||||||||
|
NET
(LOSS) INCOME
|
$ | (151,029 | ) | $ | 15,388 | - | - | $ | 5,388 | |||||||||||
|
Net
loss per share – basic and diluted
|
$ | (0.00 | ) | $ | 0.00 | |||||||||||||||
|
Weighted
average number of common stock – basic and diluted
|
137,385,082 | 237,385,082 | ||||||||||||||||||
(SUCCESSOR
OF ULTRA PROFESSIONAL LIMITED)
UNAUDITED
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
From
January 1, 2008 and December 31, 2008
(Currency
expressed in United States Dollars (“US$”))
|
AAGH
|
UPL #
|
Proforma
Adjustment (1)
|
Proforma
Adjustment (2)
|
Pro forma
Combined
|
||||||||||||||||
|
Revenue,
net
|
$ | 4,968,145 | $ | - | - | (4,968,145 | ) | $ | - | |||||||||||
|
Cost
of revenue
|
(4,107,219 | ) | - | - | 4,107,219 | - | ||||||||||||||
|
Gross
profit
|
860,926 | - | - | - | ||||||||||||||||
|
Operating
expenses:
|
||||||||||||||||||||
|
General
and administrative
|
4,390,618 | - | - | (4,349,336 | ) | 41,282 | ||||||||||||||
|
Total
operating expenses
|
4,390,618 | - | - | 41,282 | ||||||||||||||||
|
Loss
income from operation
|
(3,529,692 | ) | - | - | (3,529,692 | ) | (41,282 | ) | ||||||||||||
|
Other
income (expenses):
|
||||||||||||||||||||
|
Other
income
|
19,976 | - | - | (19,976 | ) | - | ||||||||||||||
|
Other
expense
|
(87,677 | ) | - | - | 87,677 | - | ||||||||||||||
|
Loss
before income taxes
|
(3,597,393 | ) | - | - | (41,282 | ) | ||||||||||||||
|
Income
tax benefit
|
638,440 | - | - | (638,440 | ) | - | ||||||||||||||
|
LOSS
FROM CONTINUING OPERATIONS
|
(2,958,953 | ) | (41,282 | ) | ||||||||||||||||
| - | - | |||||||||||||||||||
|
Loss
from discontinued operation
|
(258,386 | ) | - | - | (258,386 | ) | - | |||||||||||||
|
NET
LOSS
|
$ | (3,217,339 | ) | $ | - | - | $ | (41,282 | ) | |||||||||||
|
Net
loss per share – basic and diluted
|
$ | (0.02 | ) | $ | (0.00 | ) | ||||||||||||||
|
Weighted
average number of common stock – basic and diluted
|
137,385,082 | 237,385,082 | ||||||||||||||||||
# UPL was
incorporated on January 2, 2009.
(SUCCESSOR
OF ULTRA PROFESSIONAL LIMITED)
NOTES
TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
(Currency
expressed in United States Dollars (“US$”))
NOTE－1 BASIS
OF PRESENTATION
The
unaudited pro forma condensed combined balance sheet represents the combined
financial position of AAGH and UPL as of September 30, 2009, as if the
completion of the below transactions occurred on September 30,
2009:
The
Exchange
The share
exchange between AAGH and UPL is treated as a reverse acquisition and
recapitalization of AAGH whereby UPL is deemed to be the accounting acquirer
(legal acquiree) and AAGH to be the accounting acquiree (legal
acquirer).
The
Disposal
On
September 30, 2009, AAGH disposed its wholly-owned subsidiary, Sino
Trade-Intelligent Development Corp., Limited and transferred to Ms. Xxx Xx, an
independent party.
After the
consummation of the above two transactions, UPL’s shareholder will collectively
hold approximately 41% of the voting rights in the combined entity.
NOTE－2
PRO
FORMA ADJUSTMENTS
The
unaudited pro forma combined financial information reflects the following pro
forma adjustments:
Adjustment
1, relating to the Exchange
|
1a.
|
To
eliminate the accumulated deficit of AAGH as UPL will be the continuing
entity as accounting acquirer for accounting
purposes.
|
|
1b.
|
To
record the issuance of 100,000,000 shares of the common stock of AAGH at
par value of $0.001 in exchange for all the outstanding shares of
UPL.
|
Adjustment
2, relating to the Disposal
To record
the disposal of Sino Trade-Intelligent Development Corp., Limited, a
wholly-owned subsidiary of AAGH at its carrying values and transfer to an
independent party, Ms. Xxx Xx. All of AAGH’s assets and liabilities contributed
by its subsidiary, Sino Trade-Intelligent Development Corp., Limited. Upon the
disposal, AAGH has no assets and liabilities on its balance
sheet.
