EX-99 4 cbi8ka_ex99-3.htm EXHIBIT 99.3 - UNAUDITED PRO FORMA CONDENSED CONSOLIDATED 01-31-07 ARIEL WAY, INC

Exhibit 99.3

CHAMPIONS BIOTECHNOLOGY, INC., AND SUBSIDIARIES
UNUADITED PRO FORMA CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
JANUARY 31, 2007

CHAMPIONS BIOTECHNOLOGY, INC., AND SUBSIDIARIES

INDEX TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

   

PAGE(S)
 

Introduction to Unaudited Pro Forma Condensed Consolidated

 

Financial Statements

1
 

Balance Sheet - January 31, 2007 (Unaudited)

2
 

Statement of Operations for the nine months ended

 

January 31, 2007 (Unaudited)

3
 

Statement of Operations for the three months ended
 

January 31, 2007 (Unaudited)

4
 

Notes to Financial Statements

5

 

CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES
INTRODUCTION TO UNAUDITIED PRO FORMA CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS

       On May 18, 2007, Champions Biotechnology, Inc. and Subsidiaries (“The Company”) entered into an Agreement and Plan of Merger under which Biomerk, Inc. was acquired by Champions Biotechnology, Inc. The Company issued 4,000,000 shares of its common stock to acquire all the assets, liabilities and 100% of the stock of Biomerk, Inc.

       The acquisition of Biomerk, Inc. by the Company will be accounted for under the purchase method of accounting.

       The accompanying unaudited pro forma condensed consolidated balance sheet as of January 31, 2007 has been presented with consolidated subsidiaries at January 31, 2007. The unaudited pro forma condensed consolidated statement of operations for the nine months ended January 31, 2007 and the condensed consolidated statement of income for the three months ended January 31, 2007 have been presented as if the acquisition had occurred September 6, 2006, the date of inception of Biomerk, Inc.

       The unaudited pro forma condensed consolidated statements do not necessarily represent the actual results that would have been achieved had the companies been combined at the beginning of the periods, nor may they be indicative of future operations. These unaudited pro forma condensed financial statements should be read in conjunction with the companies’ respective historical financial statements and notes included thereto.

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CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
JANUARY 31, 2007

ASSETS

    

(1)
         

Champions

              

Pro
         

Biotechnology, Inc.

  

Biomerk, Inc.

  

Note

 

Adjustments

  

Forma
                           

Current Assets

                        

  Cash and cash equivalents

    

$

20,779 

$

399,650 

    

$

- 

$

420,429 

  Interest Receivable

      

- 

  

4,529 

      

- 

  

4,529 

  Prepaid expenses

      

- 

  

25,202 

      

- 

  

25,202 
                           
 

Total current assets

    

20,779 

  

429,381 

      

- 

  

450,160 
                           

  Goodwill

      

- 

  

- 

  

a

  

731,776 

  

731,776 
                           

TOTAL ASSETS

    

$

20,779 

$

429,381 

    

$

731,776 

$

1,181,936 
                           

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

        
                           

Current Liabilites

                        

  Accounts payable

    

$

21,662 

$

1,157 

        

$

22,819 

  Other accrued expenses

      

311,563 

  

- 

          

311,563 

  Officer loans payable

      

43,693 

  

- 

          

43,693 

  Liability for stock to be issued

    

- 

  

- 

  

b

     

- 
                           
 

Total current liabilities

    

376,918 

  

1,157 

      

- 

  

378,075 
                           

TOTAL LIABILITIES

      

376,918 

  

1,157 

      

- 

  

378,075 
                           

STOCKHOLDERS’ EQUITY (DEFICIT)

                    

  Common stock, $.001 par value; 50,000,000 shares authorized;

          

    27,324,658 issued and outstanding

      

27,325 

  

100 

  

a & b

 

3,900 

  

31,325 
                           

  Additional paid-in capital

      

6,668,993 

  

449,900 

  

a & b

 

706,100 

  

7,824,993 
                           

  Accumulated deficit

      

(7,008,273)

  

(21,776)

  

a

 

21,776 

  

       (7,008,273)

  Less: prepaid consulting

      

(44,184)

  

- 

          

       (44,184)
                           
 

Total stockholders’ equity (deficit)

  

(356,139)

  

428,224 

      

731,776 

  

       803,861 

                         

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

$

20,779 

$

429,381 

    

$

731,776 

$

1,181,936 
                           

(1)  Represents acquisition agreement of Biomerk, Inc. on May 18, 2007.

        

See accompanying notes to unaudited pro forma condensed consolidated financial statements.

2
 

CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED JANUARY 31, 2007

             

(1)

            
         

Champions

              

Pro
         

Biotechnology, Inc.

  

Biomerk, Inc.

  

Note

  

Adjustments

  

Forma
                           

REVENUES

    

$

- 

$

- 

        

$

- 
                           

OPERATING EXPENSES

                      
 

General and adminstrative expenses

  

74,086 

  

28,048 

          

102,134 
                           

LOSS BEFORE OTHER INCOME

    

(74,086)

  

(28,048)

          

(102,134)
                           

OTHER INCOME

                        
 

Interest income

    

- 

  

6,272 

          

6,272 
 

Total other income

    

- 

  

6,272 

          

6,272 
                           

LOSS BEFORE PROVISION FOR INCOME TAXES

(74,086)

  

(21,776)

          

(95,862)
 

Provision for income taxes

    

- 

  

- 

          

- 
                           

NET LOSS APPLICABLE TO COMMON SHARES

$

(74,086)

$

(21,776)

        

$

(95,862)
                           

BASIC AND DILUTED INCOME LOSS PER SHARE

$

(0.00)

$

(2.18)

            
                           

WEIGHTED AVERAGE NUMBER

                     

   OF COMMON SHARES

     

20,489,493 

  

10,000 

  

b

       
                           

(1)  represents the activity from inception (September 6, 2006) to January 31, 2007

                

See accompanying notes to unaudited pro forma condensed consolidated financial statements.

3
 

CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED JANUARY 31, 2007

         

Champions

              

Pro
         

Biotechnology, Inc.

  

Biomerk, Inc.

  

Note

  

Adjustments

  

Forma
                           

REVENUES

    

$

- 

$

- 

        

$

- 
                           

OPERATING EXPENSES

                      
 

General and adminstrative expenses

  

37,198 

  

20,405 

          

57,603 
                           

LOSS BEFORE OTHER INCOME

    

(37,198)

  

(20,405)

          

(57,603)
                           

OTHER INCOME

                        
 

Interest income

    

- 

  

5,765 

          

5,765 
 

Total other income

   

- 

  

5,765 

          

5,765 
                           

LOSS BEFORE PROVISION FOR INCOME TAXES

(37,198)

  

(14,640)

          

(51,838)
 

Provision for income taxes

    

- 

  

- 

          

- 
                           

NET LOSS APPLICABLE TO COMMON SHARES

$

(37,198)

$

(14,640)

        

$

(51,838)
                           

BASIC AND DILUTED LOSS PER SHARE

$

(0.00)

$

(1.46)

            
                           

WEIGHTED AVERAGE NUMBER

                     

   OF COMMON SHARES

     

18,091,931 

  

10,000 

  

b

       
 

See accompanying notes to unaudited pro forma condensed consolidated financial statements.

4
 

CHAMPIONS BIOTECHNOLOGY, INC., AND SUBSIDIARIES
NOTES TO THE UNAUDITED PRO FORMA CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

 

The following unaudited pro forma adjustments are included in the accompanying unaudited pro forma condensed consolidated balance sheet as of January 31, 2007 and the unaudited pro forma condensed consolidated statement of operations for the nine months ended January 31, 2007 and the condensed consolidated statement of income for the three months ended January 31, 2007, to reflect the proposed combination of Champions Biotechnology, Inc., and Biomerk, Inc.

a.To record the issuance of the 4,000,000 shares of Champions Biotechnology, Inc. common stock on May 18, 2007 in consideration for all the assets, liabilities and 100% of the shares of Biomerk, Inc.

b.To reflect shares issued on September 6, 2006 (date of inception) for Biomerk, Inc. instead of the actual date of issuance of May 14, 2007. The shares were issued on May 14, 2007 which represented a timing difference between when the cash was received and the date the Company had authorized them to be released for the cash.
 
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