ALPHA NETWORK ALLIANCE VENTURES INC. RESULTS OF OPERATIONS
For the years endedDecember 31, 2019 and 2018, we generated revenues of$151,562 and$141,538 , respectively. The cost of such revenue for the years endedDecember 31, 2019 and 2018, was$101,177 and$105,993 , respectively. Our revenues were generated in 2019 and 2018, were primarily from the sale of food supplements on our on-line marketplace.
Our gross profits for the year ended
For the year endedDecember 31, 2019 , we incurred total operating expenses of$777,791 , consisting of marketing expenses of$0 , wages of$622,029 , rent of$925 , travel of$69,980 , professional fees of$20,140 , office supplies of$460 , computer and internet costs of$12,529 , and other general and administrative expense of$51,728 .
For the year endedDecember 31, 2018 , we incurred total operating expenses of$794,372 , consisting of marketing expenses of$325 , wages of$614,220 , rent of$1,266 , travel of$83,516 , professional fees of$33,712 , office supplies of$2,465 , computer and internet costs of$19,661 , loss on disposal of fixed assets of$3,797 , and other general and administrative expense of$35,410 . 8 Table of Contents We incurred net losses of$727,406 and$758,827 for the years endedDecember 31, 2019 and 2018, respectively. The following table provides selected financial data about our company for the years endedDecember 31, 2019 and 2018. December 31, December 31, Balance Sheet Data 2019 2018 Cash and Cash Equivalents $ 48 $ 3,601 Total Assets$ 34,853 $ 43,151 Total Liabilities$ 3,612,352 $ 2,893,244
Shareholders' Equity (Deficit)
GOING CONCERNAlpha Network Alliance Ventures Inc. is a development stage company and currently has limited operations. Our independent auditor has issued an audit opinion forAlpha Network Alliance Ventures which includes a statement raising substantial doubt as to our ability to continue as a going concern.
LIQUIDITY AND CAPITAL RESOURCES
Our cash balance atDecember 31, 2019 was$48 with$3,612,352 in outstanding liabilities. Total expenditures over the next 12 months are expected to be approximately$45,000,000 , in order to complete our 12-month plan of operation, more fully described below in the section titled, "Plan of Operation." If we experience a shortage of funds prior to generating revenues from operations we may utilize funds from our director, who has informally agreed to advance funds to allow us to pay for operating costs, however they have no formal commitment, arrangement or legal obligation to advance or loan funds to us. Management believes our current cash balance will not be sufficient to fund our operations for the next twelve months. PLAN OF OPERATION
Our plan of operation over the next 12-month period is as follows, assuming we offer and sell the amount of securities in our Registration Statement on Form S-1 (File No. 333-224132), declared effective by theSEC onJune 25, 2018 : Gross Proceeds Itemized % Total % from this offering$ 11,250,000 $ 22,500,000 $ 33,750,000 $ 45,000,000 Product Development Company Acquisition and Development 10%$ 1,125,000 $ 2,250,000 $ 3,375,000 $ 4,500,000 Health and Wellness Industry 5 %$ 562,500 $ 1,125,000 $ 1,687,500 $ 2,250,000 Technology Company 5 %$ 562,500 $ 1,125,000 $ 1,687,500 $ 2,250,000 TOTAL$ 1,125,000 $ 2,250,000 $ 3,375,000 $ 4,500,000 Infra Structures 10%$ 1,125,000 $ 2,250,000 $ 3,375,000 $ 4,500,000 Licensing & Development 5 %$ 562,500 $ 1,125,000 $ 1,687,500 $ 2,250,000 Corporate Office Acquisition 5 %$ 562,500 $ 1,125,000 $ 1,687,500 $ 2,250,000 TOTAL$ 1,125,000 $ 2,250,000 $ 3,375,000 $ 4,500,000 Executive Salaries (Max 10) 10%$ 1,125,000 $ 2,250,000 $ 3,375,000 $ 4,500,000 Founder Dato 1.35 %$ 151,875 $ 303,750 $ 455,625 $ 607,500 Founder Lance 1.35 %$ 151,875 $ 303,750 $ 455,625 $ 607,500 CEO 1.20 %$ 135,000 $ 270,000 $ 405,000 $ 540,000 President 1.10 %$ 123,750 $ 247,500 $ 371,250 $ 495,000 CFO 1.00 %$ 112,500 $ 225,000 $ 337,500 $ 450,000 COO 1.00 %$ 112,500 $ 225,000 $ 337,500 $ 450,000 CMO 1.00 %$ 112,500 $ 225,000 $ 337,500 $ 450,000 CIO 1.00 %$ 112,500 $ 225,000 $ 337,500 $ 450,000 CSO 1.00 %$ 112,500 $ 225,000 $ 337,500 $ 450,000 TOTAL$ 1,125,000 $ 2,250,000 $ 3,375,000 $ 4,500,000 Staffs Salary (Max 70) 20%$ 2,250,000 $ 4,500,000 $ 6,750,000 $ 9,000,000 VP Country (10 Countries) 4.0 %$ 450,000 $ 900,000 $ 1,350,000 $ 1,800,000 HR Manager (10 C'ries) 2.5 %$ 281,250 $ 562,500 $ 843,750 $ 1,125,000 Sales & Marketing Manager (10 C) 2.5 %$ 281,250 $ 562,500 $ 843,750 $ 1,125,000 Marketing Manager (10 C) 2.50 %$ 281,250 $ 562,500 $ 843,750 $ 1,125,000 Finance Manager (10 C) 2.50 %$ 281,250 $ 562,500 $ 843,750 $ 1,125,000 CS Manager (10 C) 2.50 %$ 281,250 $ 562,500 $ 843,750 $ 1,125,000 Rank & File (10 C) 3.50 %$ 393,750 $ 787,500 $ 1,181,250 $ 1,575,000 TOTAL$ 2,250,000 $ 4,500,000 $ 6,750,000 $ 9,000,000 Expansion (10 Countries Max) 20%$ 2,250,000 $ 4,500,000 $ 6,750,000 $ 9,000,000 USA 3 %$ 337,500 $ 675,000 $ 1,012,500 $ 1,350,000 Canada 1.50 %$ 168,750 $ 337,500 $ 506,250 $ 675,000 Mexico 2 %$ 225,000 $ 450,000 $ 675,000 $ 900,000 Malaysia 2 %$ 225,000 $ 450,000 $ 675,000 $ 900,000 Philippines 2 %$ 225,000 $ 450,000 $ 675,000 $ 900,000 Indonesia 2 %$ 225,000 $ 450,000 $ 675,000 $ 900,000 Singapore 1.50 %$ 168,750 $ 337,500 $ 506,250 $ 675,000 Thailand 2 %$ 225,000 $ 450,000 $ 675,000 $ 900,000 Russia 2 %$ 225,000 $ 450,000 $ 675,000 $ 900,000 Turkey 2 %$ 225,000 $ 450,000 $ 675,000 $ 900,000 TOTAL$ 2,250,000 $ 4,500,000 $ 6,750,000 $ 9,000,000 9 Table of Contents Inventory (6 Months Allocation) 25%$ 2,812,500 $ 5,625,000 $ 8,437,500 $ 11,250,000 Weight Loss Products 10 %$ 1,125,000 $ 2,250,000 $ 3,375,000 $ 4,500,000 Dental Products 5 %$ 562,500 $ 1,125,000 $ 1,687,500 $ 2,250,000 Supplements Products 2.50 %$ 281,250 $ 562,500 $ 843,750 $ 1,125,000 Beverage Products 2.50 %$ 281,250 $ 562,500 $ 843,750 $ 1,125,000 Technology Gadgets 2.50 %$ 281,250 $ 562,500 $ 843,750 $ 1,125,000 Kits & Promotional & Collaterals 2 %$ 225,000 $ 450,000 $ 675,000 $ 900,000 Others e.g., stationary 0.50 %$ 56,250 $ 112,500 $ 168,750 $ 225,000 TOTAL$ 2,812,500 $ 5,625,000 $ 8,437,500 $ 11,250,000 Legal & Accounting 2%$ 225,000 $ 450,000 $ 675,000 $ 900,000 SEC Lawyer 0.20 %$ 22,500 $ 45,000 $ 67,500 $ 90,000 Residence Legal Team 0.70 %$ 78,750 $ 157,500 $ 236,250 $ 315,000 External Auditor 0.20 %$ 22,500 $ 45,000 $ 67,500 $ 90,000 Internal Auditor 0.20 %$ 22,500 $ 45,000 $ 67,500 $ 90,000 Residence Finance Team 0.70 %$ 78,750 $ 157,500 $ 236,250 $ 315,000 TOTAL$ 225,000 $ 450,000 $ 675,000 $ 900,000 Transfer Agent 0.20%$ 22,500 $ 45,000 $ 67,500 $ 90,000 Over All Media Advertising & Printing 0.80%$ 90,000 $ 180,000 $ 270,000 $ 360,000 Contingency 2%$ 225,000 $ 450,000 $ 675,000 $ 900,000 GRAND TOTAL 100.00%$ 11,250,000 $ 22,500,000 $ 33,750,000 $ 45,000,000
We currently do not have any agreements or arrangements regarding financing our plan of operation, and we may not be able to obtain financing when required. Our future is dependent upon our ability to obtain further financing, the successful development of our planned business consulting services, a successful marketing and promotion program, and achieving a profitable level of operations. The issuance of additional equity securities by us could result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments. There are no assurances that we will be able to obtain further funds required for our continued operations. Even if additional financing is available, it may not be available on terms we find favorable. At this time, there are no anticipated sources of additional funds in place. Failure to secure the needed additional financing will have an adverse effect on our ability to remain in business.
OFF BALANCE SHEET TRANSACTIONS
We have had no off-balance sheet transactions.
OFF-BALANCE SHEET ARRANGEMENTS
We have no off-balance sheet arrangements.
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