ALPHA NETWORK ALLIANCE VENTURES INC. The following information should be read in conjunction with (i) the consolidated financial statements ofAlpha Network Alliance Ventures Inc. , aDelaware corporation and development stage company, and the notes thereto appearing elsewhere in this Form 10-Q together with (ii) the more detailed business information and theDecember 31, 2020 audited financial statements and related notes included in the Company's most recent Annual Report on Form 10-K (File No. 000-54126), as filed with theSEC onJune 21, 2021 . Statements in this section and elsewhere in this Form 10-Q that are not statements of historical or current fact constitute "forward-looking" statements. OVERVIEWAlpha Network Alliance Ventures Inc. is a development stage company. We were incorporated under the laws of theState of Delaware onAugust 12, 2010 , and are engaged in the development of a social networking website, www.kababayanko.com, for overseas workers fromthe Philippines and others who share or are interested in their lifestyle. Our fiscal year end isDecember 31 , and we have no subsidiaries. Our social networking website aims to provide overseas workers fromthe Philippines with a platform to share their overseas working and living experiences, and interact with a community of Filipino overseas workers from around the world.
Our business offices are currently located at11801 Pierce St. , 2nd Floor,Riverside, California 92505. We have a website located at www.kababayanko.com; however, the information contained on our website does not form a part of this Form 10-Q. Going Concern To date the Company has little operations and little revenues and consequently has incurred recurring losses from operations. No revenues are anticipated until we complete the financing described in our Registration Statement on Form S-1, as amended (File No. 333-182596), declared effective by theSEC onMarch 18, 2014 , and implement our initial business plan. The ability of the Company to continue as a going concern is dependent on raising capital to fund our business plan and ultimately to attain profitable operations. Accordingly, these factors raise substantial doubt as to the Company's ability to continue as a going concern. Our activities have been financed primarily from cash loans in the principal amount of$1,201,406 from our sole director and officer. Of this amount,$901,406 is designated as advances from stockholders, while$300,000 is designated as deposit for future share subscriptions. No subscribed shares are outstanding that cannot be legally issued until paid for. These advances are unsecured and there are no terms for repayment. CRITICAL ACCOUNTING POLICIES The discussion and analysis of our financial condition and results of operations are based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted inthe United States ("US GAAP"). The preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. We have identified the policies below as critical to our business operations and to the understanding of our financial results: 4 Table of Contents
The Company is considered to be in the development stage as defined in Statement of Financial Accounting Standards (SFAS) No. 7, "Accounting and Reporting byDevelopment Stage Enterprises ". The Company has devoted substantially all of its efforts to business planning, and development. Additionally, the Company has allocated a substantial portion of their time and investment in bringing their product to the market, and the raising of capital. Use of Estimates The Company prepares financial statements in conformity with generally accepted accounting principles that require management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on management's knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. Cash and Cash Equivalents
The Company considers all highly liquid instruments purchased with maturities of one year or less to be cash equivalents.
Property and Equipment Property and equipment are stated at cost. Major repairs and betterments are capitalized and normal maintenance and repairs are charged to expense as incurred. Depreciation is computed by the straight-line method over the estimated useful lives of the related assets. Upon retirement or sale of an asset, the cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in operations.
Fair Value of Financial Instruments
The fair value of cash and cash equivalents and accounts receivable and accounts payable approximates their carrying amount.
PLAN OF OPERATION
We are a development stage corporation which operates a food products and beverage business and have not yet generated or realized only nominal revenues from our business.
Our plan of operation for the following 12 months is as follows, provided that we raise sufficient funds to commence such plan:
We have filed with theSEC a Registration Statement on Form S-1 with respect to a public offering of 100,000,000 shares of our common stock, which offering is being made on a self-underwritten basis, and no minimum number of shares must be sold in order for the offering to proceed. The net proceeds to us from the sale of up to 100,000,000 shares offered at a public offering price of$0.45 per share will vary depending upon the total number of shares sold. Regardless of the number of shares sold, we expect to incur offering expenses estimated at$16,899 for legal, accounting, printing and other costs in connection with
this
prospective offering.
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The following table sets forth the uses of proceeds from the primary offering
would be used assuming the sale of 25%, 50%, 75% and 100%, respectively, of the
securities offered for sale by the Company. There is no assurance that we will
raise the full $45,000,000 as anticipated.
If 25% of If 50% of If 75% of If 100% of
Shares Sold Shares Sold Shares Sold Shares Sold
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
Executives
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
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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 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 eg
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 7 Table of Contents The above figures represent only estimated costs. All proceeds will be deposited into our corporate bank account. Any funds that we raise from our offering of 100,000,000 shares will be deposited in a Company bank account inthe United States immediately available for our use and will not be returned to investors. We do not have any arrangements to place the funds received from our offering of$45,000,000 in an escrow, trust or similar account. Accordingly, if we file for bankruptcy protection or a petition for involuntary bankruptcy is filed by creditors against us, your funds will become part of the bankruptcy estate and administered according to the bankruptcy laws. If a creditor sues us and obtains a judgment against us, the creditor could garnish the bank account and take possession of the subscriptions. We currently do not have any arrangements for further financing 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. Results of Operations
Results of Operations for the Six Months Ended
The Company's revenue was$32,225 and$77,379 for the six months endedJune 30, 2021 and 2020, respectively, a decrease of$45,154 , or 58%. All of the Company's revenue was derived from sales of food supplements on an on-line market place. Total expenses were$341,512 for the six months endedJune 30, 2021 as compared to$354,747 for the six months endedJune 30, 2020 , a decrease of$13,235 or 4%. Wages were$300,000 or 88% of the Company's total expenses for the six months endedJune 30, 2021 and$303,625 or 86%% of the Company's total expenses for the six months endedJune 30, 2020 . Travel was$12,566 months endedJune 30, 2021 and$24,636 for the six months endedJune 30, 2020 . Professional fees were$6,632 for the six months endedJune 30, 2021 and$8,750 for the six months endedJune 30, 2020 . Rent was$-0 - for the six months endedJune 30, 2021 and$31 for the six months endedJune 30, 2020 . Computer and Internet expenses were$2,972 for the six months endedJune 30, 2021 and$6,361 for the six months endedJune 30, 2020 . Other general and administrative expenses were$19,263 for the six months endedJune 30, 2021 and$23,265 for the six months endedJune 30, 2020 .
Net income (loss) was a net loss of$330,757 for the six months endedJune 30, 2021 , compared to a net loss of$328,942 for the six months endedJune 30, 2020 , a decrease of$1,815 or 0.6%. The decrease in net loss was primarily the result of the Company's decreased in computer and internet expense and other general and administrative expenses.
Liquidity and Capital Resources
As ofJune 30, 2021 , we had cash totaling$1,753 , total assets of$84,400 , total liabilities of$4,607,455 and working capital of$(4,523,055) . We do not have sufficient cash on hand to commence our 12-month plan of operation or to fund our ongoing operational expenses. We will need to raise funds to commence our 12-month plan of operation and fund our ongoing operational expenses. Additional funding will likely come from equity financing from the sale of our common stock. If we are successful in completing an equity financing, existing shareholders will experience dilution of their interest in our Company. We do not have any financing arranged and we cannot provide investors with any assurance that we will be able to raise sufficient funding from the sale of our common stock to fund our 12-month plan of operation and ongoing operational expenses. In the absence of such financing, our business will likely fail. There are no assurances that we will be able to achieve further sales of our common stock or any other form of additional financing. If we are unable to achieve the financing necessary to continue our plan of operations, then we will not be able to continue our 12-month plan of operation and our business will fail. 8 Table of Contents Subsequent Events
On
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