EX-1 2 ex_unauditedfsofhkwb.txt UNAUDITED FINANCIAL STATEMENTS OF HONGKONG WAH BON ENTERPRISE
HONGKONG WAH BON ENTERPRISE LIMITED AND SUBSIDIARIES (An Exploration Stage Company) UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30, 2007 ASSETS CURRENT ASSETS Cash and cash equivalents $ 484,099 Other current assets and prepayments 436,463 Due from related companies 509,875 ---------------- Total current assets 1,430,437 FURNITURE AND EQUIPMENT,NET 245,182 LAND USE RIGHTS, NET 16,383,326 GOODWILL 3,031,207 ---------------- TOTAL ASSETS $ 21,090,152 ================ LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Other payables and accrued liabilities $ 1,849,440 Due to stockholders 1,874,426 Due to related companies 2,362,861 ---------------- Total current liabilities 6,086,727 ---------------- COMMITMENTS AND CONTINGENCIES - MINORITY INTEREST 633,022 ---------------- STOCKHOLDERS' EQUITY Share capital (1 HK$ par value, 10,000 shares - authorized, 1 share issued and outstanding as of September 30, 2007) - Additional paid-in capital 23,808,493 Accumulated deficits during the exploration stage (11,438,515) Accumulated other comprehensive income 2,000,425 ---------------- Total Stockholders' Equity 14,370,403 ---------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 21,090,152 ================ The accompanying notes are an integral part of these condensed consolidated financial statements. -2-
HONGKONG WAH BON ENTERPRISE LIMITED AND SUBSIDIARIES (An Exploration Stage Company) UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS For the three months ended For the nine months ended September 30, September 30, -------------------------- --------------------------- 2007 2006 2007 2006 ---------- ---------- ----------- ----------- OPERATING EXPENSES General and administrative expenses $ 94,753 $ 64,942 $ 198,836 $ 430,318 Depreciation 8,914 5,925 21,692 16,760 Amortization of land use rights 92,448 87,729 273,507 261,823 ---------- ---------- ----------- ----------- Total Operating Expenses 196,115 158,596 494,035 708,901 ---------- ---------- ----------- ----------- LOSS FROM OPERATIONS (196,115) (158,596) (494,035) (708,901) ---------- ---------- ----------- ----------- OTHER INCOME (EXPENSES) Interest income 1,523 84 1,706 273 Imputed interest expenses (67,492) (20,518) (169,880) (69,063) Other expenses (1,344) - (1,555) - ---------- ---------- ----------- ----------- Total Other Expenses (67,313) (20,434) (169,729) (68,790) ---------- ---------- ----------- ----------- LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND MINORITY INTERESTS (263,428) (179,030) (663,764) (777,691) Minority interests 12,831 10,750 26,572 45,507 ---------- ---------- ----------- ----------- LOSS FROM CONTINUING OPERATIONS (250,597) (168,280) (637,192) (732,184) DISCONTINUED OPERATIONS Loss from discontinued operations - (59,315) - (245,362) Loss on disposal of subsidiary (55,886) - (7,965,993) - ---------- ---------- ----------- ----------- NET LOSS (306,483) (227,595) (8,603,185) (977,546) OTHER COMPREHENSIVE INCOME 254,535 249,263 700,108 435,096 ---------- ---------- ----------- ----------- COMPREHENSIVE INCOME (LOSS) $ (51,948) $ 21,668 $(7,903,077) $ (542,450) ========== ========== =========== =========== Net loss per share from continuing operations - basic and diluted $ (306,483) $ (168,280) $(8,603,185) $ (732,184) ========== ========== =========== =========== Net loss per share from discontinued operations - basic and diluted $ - $ (59,315) $ - $ (245,362) ========== ========== =========== =========== Weighted average number of shares outstanding during the period - basic and diluted 1 1 1 1 ========== ========== =========== =========== The accompanying notes are an integral part of these condensed consolidated financial statements -3-
HONGKONG WAH BON ENTERPRISE LIMITED AND SUBSIDIARIES (An Exploration Stage Company) UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the nine months ended September 30, --------------------------- 2007 2006 ----------- ----------- CASH FLOWS FROM OPERATING ACTIVITIES Net loss from continuing operations $(8,603,185) $ (732,184) Net loss from discontinued operations - (245,362) ----------- ----------- Total net loss (8,603,185) (977,546) Adjusted to reconcile net loss to net cash used in operating activites: Loss on disposal of discontinued operations 7,965,993 - Depreciation 21,692 16,760 Amortization of land use rights 273,507 261,823 Imputed interest expenses 169,880 69,063 Minority interests 26,572 45,507 Changes in operating assets and liabilities (Increase) decrease in: Other receivables and prepayments (158,989) (25,861) Other payables and other liabilities (16,350) 164,604 Income tax and other tax payables (61) - Discontinued operations, net - 153,891 ----------- ----------- Net cash used in operating activities (320,941) (291,759) ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES Purchase of furniture and equipment (33,944) (70,018) Due from a stockholder 25,584 (10,595) Due from related parties (506,037) (51,862) Net cash outflow from acquisition of a subsidiary (990,349) - Net cash outflow from disposal of discontinued operations (1,395,700) - Discontinued operations, net - (142,292) ----------- ----------- Net cash used in investing activities (2,900,446) (274,767) ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES Due to stockholders (225,614) 1,075,228 Due to related parties 1,986,333 143,036 Repayment of note payable - (179,231) Investment from minority stockholders (633,022) - Discontinued operations, net - 184,276 ----------- ----------- Net cash provided by financing activities 1,127,697 1,223,309 ----------- ----------- EFFECT OF EXCHANGE RATES ON CASH 511,811 (109,606) ----------- ----------- NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (1,581,879) 547,177 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 2,065,978 123,975 ----------- ----------- CASH AND CASH EQUIVALENTS AT END OF PERIOD 484,099 671,152 ----------- ----------- Continuing operations $ 484,099 $ 646,845 Discontinued operations $ - $ 24,307 =========== =========== SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION ------------------------------------------------ Cash paid during the period for: Income taxes $ - $ - =========== =========== Interest expenses $ - $ - =========== =========== The accompanying notes are an integral part of these condensed consolidated financial statements -4-