EX-99.2 17 v083129_ex99-2.htm Unassociated Document
EXHIBIT 99.2

UNAUDITED PRO FORMA FINANCIAL INFORMATION
  
The following unaudited pro forma combined balance sheet as of December 31, 2006 combines the audited historical balance sheet of China Broadband, Inc., a Nevada corporation formerly known as Alpha Nutra, Inc. as of December 31, 2006, and the audited historical balance sheet of China Broadband Ltd., a recently acquired Cayman Islands company, as of December 31, 2006. As the name change went into effect on May 4, 2007, references in these financial statements are to “Alpha Nutra, Inc.” The following unaudited pro forma combined balance sheet as of December 31, 2005 includes only the audited historical balance sheet of Alpha Nutra, Inc. as of December 31, 2005 as China Broadband Ltd., was formed during the year ended December 31, 2006. The following unaudited pro forma combined statement of operations for the year ended December 31, 2006 combines the audited historical statement of operations of Alpha Nutra, Inc. for the year ended December 31, 2006 and the audited historical consolidated statement of operations of China Broadband Ltd. for the year ended December 31, 2006, giving effect to the merger as if it had been consummated at the beginning of the period presented. The following unaudited pro forma combined statement of operations for the year ended December 31, 2005 includes only the audited historical statement of operations of Alpha Nutra, Inc. as of December 31, 2005 as China Broadband Ltd. was formed during the year ended December 31, 2006.

The unaudited pro forma combined financial information should be read in conjunction with the Audited historical financial statements and related notes of Alpha Nutra, Inc. which are incorporated by reference into this 8-K/A, the unaudited pro forma combined financial information excludes costs associated with the integration and consolidation of the companies.

This unaudited pro forma combined financial information is not necessarily indicative of the operating results and financial position that might have been achieved had the merger occurred as of the beginning of the earliest period presented, nor are they necessarily indicative of operating results and financial position which may occur in the future.
 
 
 
UNAUDITED PRO FORMA COMBINED BALANCE SHEETS
 
December 31, 2006
                   
   
 
 
China
 
 
 
 
 
 
 
Alpha Nutra
 
Broadband
 
 
 
 
 
 
 
December 31,
 
December 31,
 
 
 
Pro Forma
 
 
 
2006
 
2006
 
Adjustments
 
Combined
  
ASSETS
                  
                   
Current assets:
                  
Cash
  
$
-
  
$
53,170
        
$
53,170
  
Escrow cash
    
-
   
50,000
         
50,000
 
Accounts receivable, net
    
-
   
-
         
-
 
Inventories
    
-
   
-
         
-
 
Prepaid expenses and other current assets
    
-
   
-
         
-
 
Total current assets
    
-
   
103,170
   
-
   
103,170
 
                           
Property and equipment, net
    
-
   
-
         
-
 
Issuance costs associated with private placement offering
    
-
   
103,653
         
103,653
 
Other assets
    
-
   
-
         
-
 
                           
 
   $   -  
$
206,823
  
$
-
  
$
206,823
  
                           
LIABILITIES AND STOCKHOLDER'S EQUITY
                          
                           
Current liabilities:
                          
Accounts payable and accrued expenses
  
$
-
  
$
6,762
        
$
6,762
  
Convertible notes payable
    
-
   
325,000
         
325,000
 
Total current liabilities
    
-
   
331,762
   
-
   
331,762
 
                           
Convertible notes payable
    
-
   
-
         
-
 
Other liabilities
    
-
   
-
         
-
 
Total liabilities
    
-
   
331,762
   
-
   
331,762
 
                           
Stockholder's equity:
                          
Common stock
    
535
   
50,000
         
50,535
 
Additional paid-in capital
    
6,705,918
   
-
         
6,705,918
 
Retained Earnings (Accumulated Deficit)
    
(6,706,453
)
  
(174,939
)
        
(6,881,392
)
Note receivable from stockholders
                      
-
 
Accumulated other comprehensive income
          
-
         
-
 
Total stockholder's equity
    
-
   
(124,939
)
  
-
   
(124,939
)
                           
 
  $  -  
$
206,823
  
$
-
  
$
206,823
  
                           
 
 
2

UNAUDITED PRO FORMA COMBINED STATEMENTS OF OPERATIONS
               
For Year Ended December 31, 2006
               
   
 
 
China
 
 
 
 
 
Alpha Nutra
 
Broadband
 
 
 
`
 
Twelve Months Ended
 
Twelve Months Ended
 
 
 
 
 
December 31, 2006
 
December 31, 2006
 
Pro Forma
 
 
 
Historical
 
Historical
 
Combined
  
               
Sales
  
$
-
  
$
-
  
$
-
  
                     
Cost of Sales
    
-
   
-
   
-
 
                     
Gross Margin
    
-
   
-
   
-
 
                     
Operating expenses:
                    
Formation costs
    
-
   
168,177
   
168,177
 
Selling, general and administrative
    
-
   
-
   
-
 
 
      -    
-
   
-
 
                     
Income (loss) from operations
    
-
   
(168,177
)
  
(168,177
)
                     
Interest and other income (expense), net
    
-
   
(6,762
)
  
(6,762
)
                     
Income (loss) before income tax provision
    
-
   
(174,939
)
  
(174,939
)
                     
Income tax provision
    
-
   
-
   
-
 
                     
Net income (loss)
  
$
-
  
$
(174,939
)
$
(174,939
)
                     
Earnings (loss) per share:
                    
Primary
  
$
-
        
$
(0.33
)
                     
Fully diluted
  
$
-
        
$
(0.33
)
                     
Weighted average number of common and common
                    
equivalent shares outstanding:
                    
Primary
    
534,494
         
534,494
 
                     
Fully diluted
    
534,494
         
534,494
 
                     
 
 
3

UNAUDITED PRO FORMA COMBINED BALANCE SHEETS
                   
December 31, 2005
                   
   
 
 
China
 
 
 
 
 
 
 
Alpha Nutra
 
Broadband
 
 
 
 
 
 
 
December 31,
 
December 31,
 
 
 
Pro Forma
 
 
 
2005
 
2005
 
Adjustments
 
Combined
 
ASSETS
                  
                   
Current assets:
                  
Cash
  
$
-
  
$
-
        
$
-
  
Escrow cash
    
-
   
-
         
-
 
Accounts receivable, net
    
-
   
-
         
-
 
Inventories
    
-
   
-
         
-
 
Prepaid expenses and other current assets
    
-
   
-
         
-
 
Total current assets
    
-
   
-
   
-
   
-
 
                           
Property and equipment, net
    
-
   
-
         
-
 
Issuance costs associated with private placement offering
    
-
   
-
         
-
 
Other assets
    
-
   
-
         
-
 
                           
 
   $   -  
$
-
  
$
-
  
$
-
  
                           
LIABILITIES AND STOCKHOLDER'S EQUITY
                          
                           
Current liabilities:
                          
Accounts payable and accrued expenses
  
$
-
  
$
-
        
$
-
  
Convertible notes payable
    
-
   
-
         
-
 
Total current liabilities
    
-
   
-
   
-
   
-
 
                           
Convertible notes payable
    
-
   
-
         
-
 
Other liabilities
    
-
   
-
         
-
 
Total liabilities
    
-
   
-
   
-
   
-
 
                           
Stockholder's equity:
                          
Common stock
    
535
   
-
         
535
 
Additional paid-in capital
    
6,705,918
   
-
         
6,705,918
 
Retained Earnings (Accumulated Deficit)
    
(6,706,453
)
  
-
         
(6,706,453
)
Note receivable from stockholders
                      
-
 
Accumulated other comprehensive income
          
-
         
-
 
Total stockholder's equity
    
-
   
-
   
-
   
-
 
                           
 
   $   -  
$
-
  
$
-
  
$
-
  
                           
 
 
4

UNAUDITED PRO FORMA COMBINED STATEMENTS OF OPERATIONS
               
For Year Ended December 31, 2005
               
   
 
 
China
 
 
 
 
 
Alpha Nutra
 
Broadband
 
 
 
 
 
Twelve Months Ended
 
Twelve Months Ended
 
 
 
 
 
December 31, 2005
 
December 31, 2005
 
Pro Forma
 
 
 
Historical
 
Historical
 
Combined
  
               
Sales
  
$
-
  
$
-
  
$
-
  
                     
Cost of Sales
    
-
   
-
   
-
 
                     
Gross Margin
    
-
   
-
   
-
 
                     
Operating expenses:
                    
Formation costs
    
-
   
-
   
-
 
Selling, general and administrative
    
500,000
   
-
   
500,000
 
 
      -    
-
   
-
 
                     
Income (loss) from operations
    
(500,000
)
  
-
   
(500,000
)
                     
Interest and other income (expense), net
    
-
   
-
   
-
 
                     
Income (loss) from continuing operations
    
(500,000
)
  
-
   
(500,000
)
                     
Discontinued operations, net of tax
                    
Loss from discontinued operations, net of tax ($0)
    
(474,306
)
        
(474,306
)
                     
Loss from discontinued operations
    
(474,306
)
  
-
   
(474,306
)
                     
Net income (loss)
  
$
(974,306
)
$
-
  
$
(974,306
)
                     
Earnings (loss) per share:
                    
Continuing Operations
  
$
(0.10
)
      
$
(0.10
)
                     
Fully diluted
  
$
(0.09
)
      
$
(0.09
)
                     
Weighted average number of common and common
                    
equivalent shares outstanding:
                    
Basic & Diluted
    
5,232,046
         
5,232,046
 
                     
 
5