$4220 £2059 Securi Excha TINUE UE TA AEA Comm p SECURITIES AND EXCHANGE COMM se Ee Fae barcode Page The following document has been received: Receiving Rosalie Morilo Receiving Branch: SEC Head office Receipt Date and Time: April 14, 2021 02:04:00 PM Received From, Heed office Company Representative Doe Seuree Compary Information SEC Rogjatration Ne, €$201301006 Compary Name ALPHABETSOUP INC. Industry Classification ADVERTISING Compary Type Stock Corporation. 1427215032956) Document Type FINANCIAL STATEMENT. ANNUAL, Document code FS Period Covered December 21, 2020 No. of Days Late Department RemarksSecuri COVER SHEET Excha for Comm AUDITED FINANCIAL STATEMENTS [elst2lol [telere) vise tle[*Talele[*] 2] e]e]e] | Isfelolnlrlolalalrlele] LI COMPANY INFORMATION Company's Ema Adress company’s Totopnone Numbers obte Kember aiovee.adnnamalcon ‘esro-sé19 6025-3516 ose ssseaa2 Anes! ooting ‘aca Yaar oo tenner = memo 6 tor 3-006 CONTACT PERSON INFORMATION ‘Me esyne pen UT ean tera cert Rachee Tan acheletanealatabetounsh| asresato 63 017 401 4110 ‘Unit @V Eurovile tl, 154 Vilar Comer Leviste Stet Salcedo Vigo, Bair 1227 Makat! PipelinesL£L£10 14059 Securi Excha Comm . ALPHABET SOUP, INC. Financial Statements December 31, 2020 And 2019 And Independent Auditor’s Report GPC (8Z££0 12059 GPC crrarpo P. CLEMENTE Cees Pb Asoo INDEPENDENT AUDITOR’S REPOR’ To the Stockholders and Beard of Directors ALPHABET SOUP, INC. No.1 Saint Peter St ‘Oranbo Drive, Pasig City Reporton the Audit of the Fi 07 APR 200 Opinion 1 have audited the fnancilsatemests of ALPHABET SOUP, ENO Gah ebashionlfch comprise the statements of financial position as at December 31,2020 and 2019, and the statements of| comprenensive incomel(oss), statements of changes ia equity and statements of eash lows for the {years then ended, and notes to the rancialstalements, inctding a summary of sgnfiant accountng policies In my opinion, the accompanying financial statements present fairly, in all meteril respects, the financial positions of the Company as at December 31, 2020 and 2019. and its financial performances and its cash flows for the year then ended in accordance with Philippine Financial Reporting Standards for Small and Medium-sized Entities (PERS for SMEs). Basis for Opinion 1 conducted my audits in accordance with Philippe Standarés on Auditing. (FSAS). My responsibilities under those stindards are further described in the Auditor's Responsbiltes for the Autit of the Financial Statements section of my repor. 1am independent of the Company in ‘accordance withthe Code of Ethics for Professional Accountants in the Philippines (Code of Ethics) together with the ethical requirements that ae relevan: to my audit of the Financial satements in the Philippines, and 1 have fulfilled my other ethical responsibilities in sccodance with these requirements ard the Code of Ethics. I believe that the audit evidence Ihave obtined i sufficient and appropriate to provide e bass for my opinion. Emphasis of Few Matters | draw attention to Note | to the financial statements, which described the likely negative impact of the business disruptions as a result of the corona virus outbreak tothe Company's financial conditions and performances during this reporting period and possibly on subsequent periods unti the end of this pandemic is in sight. My opinion is not modified with respect to this matter. | draw attention alo to Note 2 to the financial statements, which described the likely impact to the business ofthe President of the Philippines’ approval of the CREATE Bill into law only ater vetoing several provisions, on March 26, 2021. This will become effective only afer 15 days from the time it ‘was first publish’ in a newspaper of general circulation and when the guidelines besed on its Implementing Rules & Regulations are in place already. My opinion isnot modified with respect to mater. Responsiblluies of Management and Those Charged with Governance for the Financial Statements Nanas i rg he prin ad cara lh PPRS Tor SME, nl fer uch teal eonol as managurent dean ‘Uni-a0s, WEST BIG No. Gt Cuezon Ave CarBNIA Ave, Qe Email AGGTES™ spergTIEMDATON COT “Teleshore Ne. 7110865; (OU)EIS1I24-MeyeanyenCiy, Buisewn Maile Phone: 0817-8519548 i resentation of he Fine tenet Securi Excha Comm6£L0 1£059 GPC cerarpo P. CLEMENTE necessary to enable the preparation of financial statements that ae fiee from Whether due to fraud o: error. In preparing the financial statements, management is responsible for assessing the ‘to continue as a going concera, disclosing, as applicable, matters related to going the going concem basis of accounting unless management either intends to liquidate the Company ot ‘0 cease operations, orhasno realistic altemative but todo so ‘Those charged with governance are responsible for overseeing the Ci process. ‘includes my opinion. Reasonable assurance tuit condacted in accordance with PSAs wil alvays detect a matenal missatenent when i enss Misstaiements can arise ffom fraud or error and are considered material if, inividually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements. ‘As put of an audit in accordance with PSAs, 1 excreise professional judgment and maintain professional skepticism throughout the auct. I also ‘© Identify and assess the risks of material misstitement ofthe financial statements, whether due to fraud or err, design and perform audit procedures responsive te these risks, and obtain audit evidence tha is sufficient and appropriate to provide a basi for my opinion, The rsk of rot detecting a material miss.atement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentatons, or the override of intemal contol. © Obtain an understanding of intemal conirol relevant to the audit in order to design audit procedures that are aporopriat> in the circamstances, but not forthe purpose of expressing an ‘opinion onthe effectivencis of the Company’s internal contol ‘© Evaluate the appropriateness of accounting policies used and the ressombleness of accounting estimates end related disclosures made by management. ‘© Conclude on the appropriateness of management's use of the going concem basis of ‘accounting and, based on the audit evidence obtained, whether 2 material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to ‘continue as a going concem. If | conclude that a material uncertainty exist, | am required to draw attention in my auditor's report to the related disclosures in the financial statements or, iffsuch disclosures are inadequate, to modify my opinion, My conclusions are based on the audit evidence ottained up to the date of my auditor’s report. However, future even's of conditions may cause the Company toceaze to continee at a going concer. ‘© Evaluate the overall presentation, strctue ard content ofthe financial statements, including the disclosures, and whether the financial statements represent the underiying transactions ané ‘events in 1 manner that achieves fair presentation. I communicate with those charged with ‘govertance regarding, among other matters, the plamed scope and timing of the audit and Significant audit findings, including any significant deficiencies in internal control that | SaenitifyAiing my audit. 02:34:18 PM 04/03/2023 ‘Wat a0rw, web ret ig, No. 64 Queaon A GOTENA Ave, QC —Enall GSS mpeCeMayaO aH ‘Telephone Nos. 710566; (044)151324-Meyauayan Cty, Bulan Mobile Phove: (917-3619948,oszo £2059 GPC cerarpo p. CLEMENTE erica ratte Account | communicate with those charged with govemance regarding, among oth scope and timing of the audit and significant audit findings, including any si internal control that | identify during my audit Report on the Supplementary Information Required Under Revenue Regulations 2010 and No. 19-2011 of the Bureau of Internal Revenue ‘My audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information in Note 21 to the financial statements is presented for purposes of filing withthe Bureau of Internal Revenue and is not a required part of the basic finan Statements. Such information ic the responsibility of management. The information has boon Of the basic financial statements. In my ‘basic financial subjected to the auditing procedures applied in my au opinion, the information is fairly stated in all material respects in rel statements taken asa whole, CLEMENTE, ‘Accreditation No. 5176 January |, 2020, valid until January 2, 2023 PRC License No. 44367 SEC Accreditation No. 1381-AR-2 (Group C) Jenuary 19, 2020, valid until January 18, 2023, PTR No. 0598656 D, January 04, 2021 Quezon City ‘Tax Identification No. 111-660-481 BIR AN 07-001831-003-2018 ‘August 16, 2018, valid until August 15, 2021 : ‘March 20, 2021 ‘Quezon City Philippines ‘UniaOe-B, Web et Bi. No. 64 Quezon Ave corBMA Ave, QS Enall Address spegerlem@yaboo. com ‘Telephone Nos. 7110856: (44)151524-Meycauayan City, Bulan Tail Ares serge @yaboo.com Mobile Phone: (B17-8619848T8409 ££089 ALPHABETSOUP, INC. Securi Ln Peat De, ag Cy Excha Comm STATEMENT OF MANAGEMENT'S RESPON! FOR FINANCIAL STATEMENTS ‘The management of ALPHABETSOUP, INC. is responsible forthe preparation and fair presentation of the financial statements including the Schedules atached therein, for the years ended December 31, 2020 end 2019, in accordance with the prescribed financial reporting fiamework indicated therein, ‘and for such intemal conirol as management determines is necessary to enable the preparation of financial statements that are fee fom material misstatement, whether due to fiaud or error In preparing the financial statements, management is responsible for assessing the Company's ability to continue a6 a going concer, disclosing, as applicable matters related to going concem and using. the going concem basis of accounting unless management either intends fo liquidate the Company oF {0 cease operation, or tas ro realistic alternative bat to do so. ‘The Board of Directors is responsible for overseeing the Company's financial reporting process. ‘The Board of Directors reviews and approves the financial satements including the schedules attached therein, and submits the same ta the stockholders or members GERARDO P, CLEMENTE, the independent aditor, appointed by the stockholders forthe periods December 31, 2620 and 2019, has audited the financial statements of the Company in accordance ‘with Philippine Standards on Auditing, and its reports to stockholders or members, has expressed its ‘opinion on the faimess of presentation upon completion of such audit. RACHELLE PY 1, CHIEF EXECUTIVE OFFICER ‘AND PRES} JOSEPH FREDERICK 8. ROSALES ‘CHIEF FINANCIAL OFFICER Signed this 20th day of March 20212810 £2089 ALPHABET SOUP, INC. ‘STATEMENTS OF FINANCIAL POSITION ASSETS Current Assets Cash 49 78,902,018 15,687,389 Trade and other receivables 51719 70,383,454 63,724,767 Other curtont assets 69.18 51,614,082 55,554,712 “Total Current Assets 130,860,514 134,966,868 Non-Current Assets Property & equipment 7 2,703,215, 3,810,742 ‘Total Noa-Current Assets 2,703,215 3,810,742, TOTAL ASSETS 133,572,729 __P138,177,610. LIABILITIES AND EQUITY LIABILITIES Current ‘Trade and other payables 419 12,958,037 P2,316201 [Accrued expenses. 10.19 419,668 368,111 ‘Current portion of bank loan N19 11.229,037 5,444,262 Other current liabilities 10,19 408,660 312,554 “Total Current Liabilities 25,018,402 441,138 ‘Non-Current Liabilities Long-term portion of tank ioan 9 79856227 8,166,393 Advances from related parties i719 50,416,644 37,052,905 ‘Total Nov-Current Liabilities 57,972,871, 65,219,208, TOTAL LIABILITIES (PS2,988,273 P73, 660,436 EQUITY Share capital B 5,000,000 5,000,000, Retained ear’ 3 45,584,456 60,117,174 65,117,174 138,777,610¢10 £2059 Securi Excha Comm ALPHABET SOUP, INC. ‘STATEMENTS OF COMPREHENSIVE INCOME, Revenue P 194,880,519 426,697,091 Direct Cost 1518 156,375,003) (334,967,861) ‘Gross Profi ‘35,505,516 91,729,230 Intreat income 49 16.244 12491 Other income 14,400 103,218 Interest expense HAD 2,578,960) (5,794,035) Administrative expenses 161821 (49.719510 69.290 261 (LossyProfit Before Tax (13,762,320) 16,760,643 Current ax» MCIT 8 (770388) (5,025,992) (LossyProft After Tax (532,718) 11,734,651 Comprehensive Income o ° P7465 FIR sows Firat Senn 07 APR 2021 a9 HPGSLLECTION SECTIONvei0 £4859 Securi xcha Comm ALPHABET SOUP, INC. STATEMENTS OF CHANGES IN EQUITY SHARE CAPITAL ‘Authorized shares 500,000 00,000 Issued shares ‘500,000 300,000 Pas value PIO Plo Suboribed and paid-up 2 5,000,000 S,000,000 RETAINED EARNINGS Restricted Restiction for business projects B 24,000,000 24,000,000 Additional restriction for business 10,000,000 30,000,000 Total 34,000,000 54,000,000 Varestricied Balance at beginning of year a 67,174 24,382,523 (Loss)/profit forthe year 4,522,718) 11,734,651 Additional restriction for business = reduction 720,000,000 0 Restriction for business projects o (60,000,000), Balance at end of year 11,584,456, 6.1774 TOTAL RETAINED EARNINGS 45,584,456 60,117,174 TOTAL EQUITY 50,584,456 PS5,117,174 Tes exmpaning Naso Fnacl Stentss$8z0 £2089 ALPHABET SOUP, INC. STATEMENTS OF CASH FLOWS, ‘CASH FLOWS FROM OPERATING ACTIVITIES (Loss)/profit before tax (P13,762,320) P16, 760,643 ‘Adjustments for: Interest income eared 419 (16,244) 2491) Interest expense due 418 2,878,960 5,794,035, ation z 2,223,981 2,872,186 ‘Operating (loss)profit before working capital changes 6.975.613) 25,414,973 ((ncrease)/decrease in: ‘Trade and other receivables 5.17 18 (6,628,687) 371,603 Other current assets 69.19 3,940,670 (3,078,381) Increasel(desrease) in: Trade and other payabies 319 10,641,826 (1,824,275) ‘Accrued expenses: 1019 ‘51,557 55,117) (Other current abilities 1419 96,106 312,554 Bank foan ng 5,174,600 (956,060), ‘Cash (used in)/provided by operating activities 4.300.458, 20,485,297 Interest received 419 16,244 12.491 Interest paid 19 578,960) (5,794,035) {Income tax paid 9 (770398) (5,025,992) ‘Net cash (used in/provided by cperating activities 967 344 9,677,761 ‘CASH FLOWS FROM INVESTING ACTIVITIES Property & equipment net additions z (116,484) 1,680,525 Tet cash used in investing activities 1,316,454) (1,680,525) ‘CASH FLOWS FROM FINANCING ACTIVITIES ‘Additional(partal payment) of advances from related parties 179 (6.636261) (451,202) ‘Net cash used in financing activities (6,636,261) (451,202) NET (DECREASEVINCREASE IN CASH, (6,785,371) 7,546,034 CASH AT BEGINNING OF YEAR 15,687,389 8,141,355 ‘CASH AT END OF YEAR. F8,902,018 ___P15,687,389 “Se aconpaning Nose Financial tenes9840 £2089 ALPHABET SOUP, INC. , Notes To Financial Statements Comm As Of And For The Years Ended December 31, 2020 And 2019 1. CORPORATE INFORMATION AND STATUS OF OPERATIONS ‘The Company was registered withthe Securities and Exchange Commission on January 22, 2013 with SEC Registration No. C5201301006 primarily to do a geveral business in te development and canyjirg. out the production and other services on advertising, marketing, communications, promotions sles and distribution requirements for various clits as supplie, consultast, agent (except insurance agent) and commission merchant. Likewise, to undertake the marketing, production, sales end promotion of properties, goods, ware, merchandise, services or anything of the ‘nature, nara or atfial, which is or may become an article of eamerce ‘The Company's Tax Identification Number (TIN) is 008-450-525-000, ‘The office is located at No.1 Saint Peter Street, Oranbo Drive, Pasig City In view of the COVID-19 Inter-Agency Task Force on Emerging Infectious Diseases (COVID-19 IATE-EID)'s continuing “Community Quarartines” (CQe), from Enbanced (ECQ) and row General (GCQ), brought about by the Bayanihan to Heal as One Act (Bayaninan Aci) declaring existence of the State of National Public Health Emergency by the government; this has affected the Company's ‘operations, and infact resulted to the forced business slowdown for several months during this period. ‘The business slowdown resulted to sharp plunge in sales/revenues for several months in 2020 for the Company. 2. BASIS OF PREPARATION, ‘The accompanying financial statements have been prepared assuming thatthe Company will continue a going concer which contemplates the realization an¢ the satisfaction of liabilities or the nomal course cof business 2.1 Statement of Compliance ‘The financial statements have been prepared in compliance with Philippine Financial Reporting Standards for Small end Medium-sized Entities (PFRS for SMEs) issued by Philippine Financial Reporting Stardards Council form for A Inclusion Act Republic Act No. 10963 or the TRAIN wes signed into law on December 19,2017 and took effect on January 1, 2018, making the new tax law exacted as of the reporting date. Although the TRAIN, changes existing tax laws and included several provisions that generally affecied businesses on prospestive basis, management assessed thatthe sane did sot have any significant impact on the financial siatements balances es ofthe reporting date. ‘Corporate Recovery and Tax Incentives for Enterprise Act (CREATE) Initally, the House of the Representatives, parsed their measure for CREATE, which ees to reduce the corporate income tx rate and to ratoralize the cute fiscal incextves by making itime-bound, targeted, and perfermance-based in September 2019 ‘On November 26,2020, he Senae approved on third and fra reading her counterpart Senate Bill ‘No, 1357, otherwise known abthe CREATE Bil, The proposed changes ta the Corporate Income Tax (CIT) rales under the Senate version (ie, the Create Bil are as follows: ‘Wows nema Saerens a