UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended January 31,April 30, 2016

or

o

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______to______.

Commission File Number: 333-177122

HEALTH ADVANCE INC.

(Exact name of registrant as specified in its Charter)

WYOMING

46-0525223

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

3651 Lindell Rd. Suite D155

Las Vegas, NV, 89103

(Address of Principal Executive Offices)(Zip Code)

702-943-0309

(Registrants telephone number, including area code)

N/A

(Former name, or former address and former fiscal year if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x  No

o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ x No 

o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company filer. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

o

Accelerated Filer 

o

Non-Accelerated Filer

o

(Do not check if a smaller reporting company)

Smaller Reporting Company

x

Indicate by check mark whether the registrant is a shell company as defined in Rule 12b-2 of the Exchange Act. Yes ☐ o No  

x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock. As of March 21,July 13, 2016, there were 24,520,000 shares of the issuer’s common stock issued and outstanding.



 

HEALTH ADVANCE INC.

FORM 10-Q

January 31,

April 30, 2016

INDEX

PART I — FINANCIAL INFORMATION

Condensed Financial Statements - Unaudited

3

Management’s Discussion and Analysis of Financial Condition and Results of Operations

12

Quantitative and Qualitative Disclosures About Market Risk

17

16

Controls and Procedures

17

16

PART II — OTHER INFORMATION

Legal Proceedings

17

16

Risk Factors

17

16

Unregistered Sales of Equity Securities and Use of Proceeds

17

Defaults Upon Senior Securities

17

Mine Safety Disclosures

18

17

Other Information

18

17

Exhibits

18

17

SIGNATURE

18

17

 

2

PART I –FINANCIAL INFORMATION

Item 1.

Condensed Financial Statements

HEALTH ADVANCE INC.

CONDENSED FINANCIAL STATEMENTS

JANUARY 31,

APRIL 30, 2016

CONTENTS

PAGE-4

CONDENSED BALANCE SHEETS AS AT JANUARY 31,APRIL 30, 2016 (UNAUDITED) AND AS AT JULY 31, 2015 (AUDITED)

PAGE-5 & 6

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE THREE AND SIXNINE MONTHS ENDED JANUARY 31,APRIL 30, 2016 AND 2015 (UNAUDITED)

PAGE-7

CONDENSED STATEMENTS OF CASH FLOWS FOR THE SIXNINE MONTHS ENDED JANUARY 31,APRIL 30, 2016 AND 2015 (UNAUDITED)

PAGE-8

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

 

3

HEALTH ADVANCE INC.

CONDENSED BALANCE SHEETS

AS AT JANUARY 31,APRIL 30, 2016 (UNAUDITED) AND JULY 31, 2015 (AUDITED)

(Expressed in United States Dollars)

  

January 31,

2016

  

July 31,

2015

 
  $  $ 

ASSET

        

CURRENT ASSET

        

Cash

      

TOTAL ASSET

      
         
         

LIABILITIES AND STOCKHOLDERS' DEFICIENCY

        

CURRENT LIABILITIES

        

Accounts payable

  55,699   50,618 

Accrued liabilities

  4,075   6,500 

Advances from a stockholder(Note 5)

  88,666   72,774 

TOTAL LIABILITIES

  148,440   129,892 
         
         

STOCKHOLDERS' DEFICIENCY

        

Authorized:

        

500,000,000 common stock, par value $0.001Issued and outstanding:(Note7)24,520,000 common stock as at January 31, 2016 and July 31, 2015

  24,520   24,520 

Additional paid-in capital

  186,080   186,080 

Common stock to be issued(Note7)

  67,500   67,500 
         

Accumulated deficit

  (426,540)  (407,992)
         

TOTAL STOCKHOLDERS' DEFICIENCY

  (148,440)  (129,892)

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY

      

See accompanying notes

       
  April 30,  July 31, 
  2016  2015 
  $   $  
ASSET        
CURRENT ASSET        
Cash      
TOTAL ASSET      
         
         
LIABILITIES AND STOCKHOLDERS' DEFICIENCY        
CURRENT LIABILITIES        
Accounts payable  57,062   50,618 
Accrued liabilities  2,575   6,500 
Advances from a shareholder (Note 4)
  94,879   72,774 
TOTAL LIABILITIES  154,516   129,892 
         
         
STOCKHOLDERS' DEFICIENCY        
Authorized:        
500,000,000 common stock, par value $0.001        
Issued and outstanding: (Note 6)
        
24,520,000 common stock as at April 30, 2016 and July 31, 2015  24,520   24,520 
Additional paid-in capital  186,080   186,080 
Common stock to be issued (Note 6)
  67,500  ��67,500 
Accumulated deficit  (432,616)  (407,992)
TOTAL STOCKHOLDERS' DEFICIENCY  (154,516)  (129,892)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY      
         
See accompanying notes        
 

4

HEALTH ADVANCE INC.

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

FOR THE THREE MONTHS ENDED JANUARY 31,APRIL 30, 2016 AND 2015 (UNAUDITED)

(Expressed in United States Dollars)


  

Three months

ended

January 31, 2016

  

Three months

ended

January 31, 2015

 
  $  $ 

SALES

      
         

COST OF SALES

      

GROSS PROFIT

      
         

EXPENSES

        

Professional fees

  10,707   9,977 

Office and general

  1,405   1,369 

Rent and occupancy

     3,600 

Consulting and management fees

     6,000 

Total expenses

  12,112   20,946 
         

Foreign exchange loss

      

Loss before income taxes

  (12,112)  (20,946)
         

Income taxes

      
         

NET AND COMPREHENSIVE LOSS FOR THE PERIOD

  (12,112)  (20,946)
         

Loss per common share, basic and diluted

  (0.0005)  (0.0009)
         

Weighted average number ofcommon stock outstanding, basic and diluted

  24,520,000   24,520,000 

See accompanying notes

       
  Three months  Three months 
  ended  ended 
  April 30,  April 30, 
  2016  2015 
  $   $  
         
SALES      
         
COST OF SALES      
         
GROSS PROFIT      
         
EXPENSES        
Professional fees  5,399   7,463 
Office and general  677   715 
Consulting and management fees     8,000 
Total expenses  6,076   16,178 
         
Foreign exchange loss      
Loss before income taxes  (6,076)  (16,178)
         
Income taxes      
         
NET AND COMPREHENSIVE LOSS FOR THE PERIOD  (6,076)  (16,178)
         
Loss per common share, basic and diluted (Note 6)
  (0.0002)  (0.0007)
         
Weighted average number of        
  common stock outstanding, basic and diluted  24,520,000   24,520,000 
         
See accompanying notes        
 

5

HEALTH ADVANCE INC.

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

FOR THE SIXNINE MONTHS ENDED JANUARY 31,APRIL 30, 2016 AND 2015 (UNAUDITED)

(Expressed in United States Dollars)


  

Six months

ended

January 31, 2016

  

Six months

ended

January 31, 2015

 
  $  $ 
SALES      
         
COST OF SALES      
GROSS PROFIT      
         

EXPENSES

        

Professional fees

  16,113   22,366 

Office and general

  2,435   3,178 

Rent and occupancy

     7,200 

Consulting and management fees

     12,000 

Total expenses

  18,548   44,744 
         

Foreign exchange loss

     251 

Loss before income taxes

  (18,548)  (44,995)
         

Income taxes

      
         

NET AND COMPREHENSIVE LOSS FOR THE PERIOD

  (18,548)  (44,995)
         

Loss per common share, basic and diluted

  (0.0008)  (0.0019)
         

Weighted average number ofcommon stock outstanding, basic and diluted

  24,520,000   24,520,000 

See accompanying notes

       
  Nine months  Nine months 
  ended  ended 
  April 30,  April 30, 
  2016  2015 
  $   $  
         
SALES      
         
COST OF SALES      
         
GROSS PROFIT      
         
EXPENSES        
Professional fees  21,512   29,829 
Office and general  3,112   3,893 
Rent and occupancy     7,200 
Consulting and management fees     20,000 
Total expenses  24,624   60,922 
         
Foreign exchange loss     251 
Loss before income taxes  (24,624)  (61,173)
         
Income taxes      
         
NET AND COMPREHENSIVE LOSS FOR THE PERIOD  (24,624)  (61,173)
         
Loss per common share, basic and diluted (Note 6)
  (0.0010)  (0.0025)
         
Weighted average number of        
  common stock outstanding, basic and diluted  24,520,000   24,520,000 
         
See accompanying notes        
 

6

HEALTH ADVANCE INC.

CONDENSED STATEMENTS OF CASH FLOWS

FOR THE SIXNINE MONTHS ENDED JANUARY 31,APRIL 30, 2016 AND 2015 (UNAUDITED)

(Expressed in United States Dollars)


  

Six months

ended

January 31,

2016

  

Six months

ended

January 31,

2015

 

CASH FLOWS FROM OPERATING ACTIVITIES

        

Net loss for the period

  (18,548)  (44,995)
         

Adjustments for non-cash items

        

In-kind contribution of services

     12,000 
         
         

Net change in non-cash working capital balances:

        

Accounts payable and accrued liabilities

  2,656   1,068 

Net cash used in operating activities

  (15,892)  (31,927)
         

CASH FLOWS FROM FINANCING ACTIVITIES

        

Bank indebtedness

     (28)

Proceeds from issuance of common stock

     25,000 

Advances from a stockholder

  15,892   6,955 

Net cash provided by financing activities

  15,892   31,927 
         

Net change in cash during the period

      

Cash, beginning of period

      

Cash, end of period

      
         

Cash paid for interest

      

Cash paid for taxes

      

See accompanying notes

       
  Nine months  Nine months 
  ended  ended 
  April 30,  April 30, 
  2016  2015 
CASH FLOWS FROM OPERATING ACTIVITIES      
Net loss for the period  (24,624)  (61,173)
         
Adjustments for non-cash items        
Common stock issued for services      
In-kind contribution of services     20,000 
         
         
Net change in non-cash working capital balances:        
Accounts payable  (3,925)   
Accrued liabilities  6,444   8,353 
Net cash used in operating activities  (22,105)  (32,820)
         
CASH FLOWS FROM FINANCING ACTIVITIES        
Bank indebtedness     (28)
Proceeds from issuance of common stock     23,000 
Advances from a shareholder  22,105   9,848 
Net cash provided by financing activities  22,105   32,820 
         
Net decrease in cash during the period      
Cash, beginning of period      
Cash, end of period      
         
         
See accompanying notes        
 

7

HEALTH ADVANCE INC.

CONDENSED NOTES TO THE FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED JANUARY 31,APRIL 30, 2016 (UNAUDITED)

(Expressed in United States Dollars)

1.

NATURE OF OPERATIONS AND ORGANIZATION

Health Advance Inc. (the “Company” or “Health Advance”) was incorporated on April 14, 2010 in the State of Wyoming. The Company is an online retailer of home medical products with operations in Canada and the United States of America (“USA”).

2.

BASIS OF PRESENTATION

The condensed financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the USA for interim financial information and the SEC instructions to Form 10Q. Accordingly, they do not include all of the information and notes to the financial statements required by generally accepted accounting principles for complete financial statements. All adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. For further information, refer the financial statements and notes thereto included in the Company’s annual report on Form 10K for the year ended July 31, 2015.

3.

GOING CONCERN

These financial statements have been prepared assuming the Company will continue on a going concern basis. The Company has incurred losses since inception and the ability of the Company to continue as a going concern depends upon its ability to develop profitable operations and to continue to raise adequate financing. Management is actively targeting sources of additional financing to provide continuation of the Company’s operations. In order for the Company to meet its liabilities as they come due and to continue its operations, the Company is solely dependent upon its ability to generate such financing.

There can be no assurance that the Company will be able to continue to raise funds, in which case the Company may be unable to meet its obligations. Should the Company be unable to realize its assets and discharge its liabilities in the normal course of business, the net realizable value of its assets may be materially less than the amounts recorded in these financial statements.

These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.

4.

RELATED PARTY TRANSACTIONS

The transactions with related parties were in the normal course of operations and were measured at the exchange value which represented the amount of consideration established and agreed to by the parties. Related party transactions not disclosed elsewhere in these financial statements are as follows:

a.

During the three and sixnine months ended January 31,April 30, 2016, the Company was charged $nil and $nil respectively, as rent and occupancy charges (three and sixnine months ended January 31,April 30, 2015: $3,600$nil and $7,200 respectively).

In addition, during the three and sixnine months ended January 31,April 30, 2016, the Company was charged $nil and $nil respectively, as consulting and management fees (three and sixnine months ended January 31,April 30, 2015: $6,000 and $12,000$18,000 respectively).

  During the fiscal year 2016, the shareholder decided to discontinue charging rent and consultancy fees due to minimal activities in the Company.

b.

Advances from a shareholder of the Company as at January 31,April 30, 2016 and July 31, 2015 were $88,666$94,879 and $72,774, respectively. These advances are non-interest bearing, unsecured and with no specific terms of repayment.

 

8

HEALTH ADVANCE INC.

CONDENSED NOTES TO THE FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED JANUARY 31,APRIL 30, 2016 (UNAUDITED)

(Expressed in United States Dollars)

5.

RECENT ACCOUNTING PRONOUNCEMENTS

Recently Issued Accounting Standards

In April 2014,March 2016, the FASBCompany adopted the accounting pronouncement issued by the Financial Accounting Standards Update (“ASU”Board ("FASB") 2014-08, "Presentationto update guidance on how companies account for certain aspects of Financial Statementsshare-based payments to employees. This pronouncement is effective for fiscal years beginning after December 15, 2016, and Property, Plant,interim periods within those years, with early adoption permitted. This guidance requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled and Equipment - Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity'', which revises what qualifies as a discontinued operation, changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. This ASU will be effective forpresentation of excess tax benefits on the Company for applicable transactions occurring after August 1, 2016. statement of cash flows.
The Company will prospectively applyadopted these provisions on a prospective basis. In addition, this pronouncement changes guidance on: (a) accounting for forfeitures of share-based awards and (b) employers’ accounting for an employee’s use of shares to satisfy the guidance to applicable transactions and doesemployer’s statutory income tax withholding obligation. The adoption of this pronouncement did not expect adoption to have a material impact on theCompany’s financial statements.

On May 28, 2014,position and/or results of operations.


In February 2016, an accounting pronouncement was issued by the FASB issuedto replace existing lease accounting guidance. This pronouncement is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet for most leases. Expenses associated with leases will continue to be recognized in a new financialmanner similar to current accounting standard on revenue from contracts with customers, ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. In July 2015, the FASB voted to approve a one-year deferral of the effective date of ASU 2014-09, which will beThis pronouncement is effective for the Company in the first quarter of fiscal yearannual and interim periods beginning after December 15, 2018, and maywith early adoption permitted. The adoption is required to be applied on a full retrospective or modified retrospective approach. This ASU will have no impact on the Company until it begins to generate revenue.

In June 2014, the FASB issued Accounting Standards Update ASU 2014-10, “Development Stage Entities”. The amendments in this update remove the definition of a development stage entity from the Master Glossary of the ASC thereby removing the financialbasis for each prior reporting distinction between development stage entities and other reporting entities from U.S. GAAP.  In addition, the amendments eliminate the requirements for development stage entities to (1) presentinception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had’ been in the development stage. The amendments in this update are applied retrospectively.

On August 27, 2014, the FASB issued a new financial accounting standard on going concern, ASU 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. The standard provides guidance about management’s responsibility to evaluate whether there is substantial doubt about the organization’s ability to continue as a going concern. The amendments apply to all companies and are effective in annual periods ending after December 15, 2016, with early application permitted.period presented. The Company is currently evaluatinghas not yet determined the impacteffect that the adoption of this accounting standardpronouncement may have on its financial statements.

position and/or results of operations.


On April 7, 2015,January 1, 2016, the Company adopted the accounting pronouncement issued by the FASB which eliminates the requirement that an acquirer in a business combination account for measurement-period adjustments retrospectively. Instead, an acquirer will recognize a measurement-period adjustment during the period in which it determines the amount of the adjustment. The adoption of this pronouncement did not have a material impact on its financial position and/or results of operations.

On January 1, 2016, the Company adopted the accounting pronouncement issued ASU No. 2015-03, “Interest - Imputationby the FASB to update the guidance related to the presentation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs”. The amendments in this ASU require thatdebt issuance costs. This guidance requires debt issuance costs, related to a recognized debt liability, be presented in the balance sheet as a direct deduction from the carrying amount of thatthe related debt liability consistent with debt discountsrather than being presented as an asset. The Company adopted this pronouncement on a retrospective basis, and the accounting for debt issue costs under IFRS. The recognition and measurement guidance for debt issuance costs areadoption did not affected by the amendments in this ASU. The amendments apply to all companies and are effective for public business entities in annual periods ending after December 15, 2015, and interim periods within those fiscal years, with early application permitted. The Company is currently evaluating the impact of this accounting standard on its financial statements.  

In January 2016, theFASB issued accounting guidance that affects the accounting for equity investments, financial liabilities accounted for under the fair value option and the presentation and disclosure requirements for financial instruments. Under the new guidance, all equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) will generally be measured at fair value through earnings. There will no longer be an available-for-sale classification for equity securities with readily determinable fair values. For financial liabilities when the fair value option has been elected, changes in fair value due to instrument-specific credit risk will be recognized separately in other comprehensive income. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new guidance is effective January 1, 2018, with the cumulative effect adjustment from initially applying the new guidance recognized in the Statement of Financial Position as of the beginning of the year of adoption. We do not expect the adoption to have a material impact on ourits financial statements.

position and/or results of operations.

In November 2015, an accounting pronouncement was issued by the FASB to simplify the presentation of deferred income taxes within the balance sheet. This pronouncement eliminates the requirement that deferred tax assets and liabilities are presented as current or noncurrent based on the nature of the underlying assets and liabilities. Instead, the pronouncement requires all deferred tax assets and liabilities, including valuation allowances, be classified as noncurrent. This pronouncement is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company intend to adopt this pronouncement on January 1, 2017, and the adoption will not have a material impact on its financial position and/or results of operations.

In May 2014, an accounting pronouncement was issued by the FASB to clarify existing guidance on revenue recognition. This guidance includes the required steps to achieve the core principle that a company should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This pronouncement is effective for fiscal years and interim periods beginning after December 15, 2017, with early adoption permitted. The guidance permits the use of one of two retrospective transition methods. The Company has not yet selected a transition method nor have we determined the effect that the adoption of the pronouncement may have on its financial position and/or results of operations.
 

9

HEALTH ADVANCE INC.

CONDENSED NOTES TO THE FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED JANUARY 31,APRIL 30, 2016 (UNAUDITED)

(Expressed in United States Dollars)

In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"). Under ASU 2016-02, an entity will be required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, with early adoption permitted. At adoption, this update will be applied using a modified retrospective approach. We have evaluated the new standard and it will not have an impact to the financial statements once implemented.

6.

LOSS PER SHARE

The Company has adopted the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 260-10 which provides for calculation of “basic” and “diluted” earnings per share. Basic earnings per share includes no dilution and is computed by dividing net income or loss available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity. Diluted earnings per share exclude all potentially dilutive shares if their effect is anti-dilutive. There were no potentially dilutive shares outstanding as at January 31,April 30, 2016 and July 31, 2015.

7.

STOCKHOLDERS’ DEFICIENCY

COMMON STOCK - AUTHORIZED

As at January 31,April 30, 2016, the Company has 500,000,000 authorized shares of common stock with a par value of $0.001 per share.

COMMON STOCK - ISSUED AND OUTSTANDING

Company’s outstanding 24,520,000 shares of common stock ($24,520) as at January 31,April 30, 2016 consisted of the following:

On April 14, 2010 the Company issued 14,000,000 shares of common stock at $0.0001 per share to the founding stockholder for a total cash proceeds of $1,400. 

During fiscal 2011, the Company completed non-brokered private placements of 920,000 shares of common stock at $0.01 per share for a total cash proceeds of $9,200.

During fiscal 2011, the Company issued 6,500,000 common stock for legal, consulting and web design services and directors fees.  These services were valued at $0.01 per share.  

On November 1, 2011 the Company issued 1,500,000 shares of common stock for professional services rendered.  These services were valued at $15,000.

On July 18, 2012 the Company issued 1,600,000 shares at $0.01 per share for a total cash proceeds of $16,000.

COMMON STOCK – TO BE ISSUED

The Company’s 6,790,000 common stock to be issued amounting to $67,500 as at January 31, 2016 consist of the following:

In November 2012, the Company agreed to issue 2,000,000 shares of common stock at an issue price of $0.005 per share for a total cash proceeds of $10,000.


HEALTH ADVANCE INC.

CONDENSED NOTES TO THE FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED JANUARY 31, 2016 (UNAUDITED)

(Expressed in United States Dollars)

In December 2012, the Company agreed to issue 1,000,000 shares of common stock valued at $0.01 per share for a total value of $10,000 for web design services and repairs.  

In January 2013, the Company agreed to issue 500,000 shares of common stock valued at $0.01 per share for a total value of $5,000 for consulting services.

In March 2013, the Company agreed to issue 800,000 shares of common stock at an issue price of $0.01 per share for a total cash proceeds of $8,000.


10

HEALTH ADVANCE INC.
CONDENSED NOTES TO THE FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED APRIL 30, 2016 (UNAUDITED)
(Expressed in United States Dollars)
In June 2013, the Company agreed to issue 350,000 shares of common stock at an issue price of $0.01 per share for a total cash proceeds of $3,500.

In October 2013, the Company agreed to issue 1,600,000 shares of common stock at an issue price of $0.0025 per share for a total cash proceeds of $4,000.

In April 2014, the Company agreed to issue 40,000 shares of common stock at an issue price of $0.05 per share for a total cash proceeds of $2,000.

In August 2014, the Company agreed to issue 500,000 shares of common stock at an issue price of $0.05 per share for a total cash proceeds of $25,000.

8.

SUPPLEMENTAL CASH FLOW INFORMATION

During the sixnine months ended January 31,April 30, 2016, and 2015, there were no interest or taxes paid by the Company.


9.

SUBSEQUENT EVENTS

The Company’s management has evaluated subsequent events up to March 21,July 13, 2016, the date the financial statements were issued, pursuant to the requirements of ASC 855 and has determined that there are no material subsequent events to report.

 

11

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following plan of operation provides information which management believes is relevant to an assessment and understanding of our results of operations and financial condition. The discussion should be read along with our financial statements and notes thereto. This section includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our predictions.

Overview


Health Advance Inc. (the “Company”) was incorporated on April 14, 2010 in Wyoming. The Company is an on-line retailer of home medical products with operations in Canada and the United States, and with administration and infrastructure supported globally.  Our strategy is to attract opportunities in the health care industry through the development and growth of our existing web site www.leadingmedicalproducts.com.   We believe we can operate more cost efficiently and compete as a discounter that delivers value and low cost branded lines of home medical care products together with valuable customer care that is currently missing in the marketplace.  Our goal is to become our customers’ single source for low cost health care supplies, by meeting all of our customer’s needs.

From inception to January 31,April 30, 2016 we have incurred a net loss of $426,540.$432,616.  The ability of the Company to continue as a going concern depends upon its ability to raise adequate financing and develop profitable operations. If we cannot generate sufficient revenues from our services, we may have to delay the implementation of our business plan. Management is actively targeting sources of additional financing to provide continuation of the Company’s operations. In order for the Company to meet its liabilities as they come due and to continue its operations, the Company is solely dependent upon its ability to generate such financing.

The Company is actively seeking financing for its current business operation.  The Company is optimistic that the financing will be secured and the going concern risk will be removed.  We are in discussions with various parties and believe a successful financing is likely. Any capital raised will be through either a private placement or a convertible debenture and will result in the issuance of shares of common stock from the Company’s authorized capital.

  In addition, the Company is also seeking acquisitions within the health space as a means to grow the Company.

On February 14, 2014, the Company affected a 10-for-1 forward split of the Company’s issued and outstanding common shares. The Company’s issued and outstanding common shares were therefore increased from 2,452,000 to 24,520,000.  All per share amounts have been restated to reflect this stock split.

Plan of Operation

We were incorporated on April 14, 2010 in Wyoming. Our business office is located at 3651 Lindell Road, Suite D#155, Las Vegas, NV, 89103.  Our telephone number is 702-943-0309. We were founded by Jordan Starkman, who serves as our President and Director.  In addition, Domenico Pascazi was appointed as a director in March 2011.  On February 12, 2013, Mr. Pascazi resigned from his position as a member of the board of directors. Mr. Pascazi’s resignation was not a result of any disagreement with the Company or its executive officers, or any matter relating to the Company’s operations, policies or practices.

We are an on-line retailer of home medical products with operations in Canada and the United States, and with administration and infrastructure supported globally. In September 2015, the Company launched a new e-commerce platform, leadingmedicalproducts.com. The site features a new vibrant design with a fresh look, and offers quick and easy access to essential product information that provides a more comprehensive understanding of the Company’s product lines. Our strategy is to attract opportunities in the health care industry through the development and growth of our existing web site. We believe we can operate more cost efficiently and compete as a discounter that delivers value and low cost branded lines of home medical care products together with valuable customer care that is currently missing in the marketplace.  Our goal is to become our customers’ single source for low cost health care supplies, by meeting all of our customer’s needs.

We strive to offer health care professionals, medical distributors and consumers the highest quality brands and products at the most affordable prices. We expect to achieve this by forming relationships with suppliers that will be able to provide us with preferred prices once we are able to make bulk purchases.

 

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Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

In the fiscal year 2016 and continuing into fiscal year 2017, we plan to build our business across four key product categories including: (1) respiratory, (2) diabetes, (3) ostomy, and (4) mastectomy supplies. Our growth plan is to generate operating revenues during fiscal years 2016-2017.

We plan to complete a financing in the fiscal years 2015-2016.2016-2017. We have not yet entered into any agreements with any parties with respect to obtaining financing for the Company.

If we are unable to obtain financing on reasonable terms, we could be forced to delay or scale back our plans for expansion. In addition, such inability to obtain financing on reasonable terms could have a material adverse effect on our business, operating results, or financial condition.

If we are able to obtain financing, we plan to implement both online and offline marketing and customer engagement campaigns for both our traditional durable medical products and our four key product areas mentioned above. We intend to target consumers with on-line marketing, and businesses, including various senior care facilities, with direct mail, telemarketing and flyer campaigns. Initially, we will target small to medium size facilities. We also intend to launch our direct mail onsite flyer campaigns and outbound calling campaigns in unison to increase the frequency and awareness of Leading medical products.www.leadingmedicalproducts. We expect to replace and expand any existing major wholesaler relationships we currently work with by fiscal years 2015-2016.2016-2017. Further, during this expected time frame, we plan to establish direct-from-manufacturer programs for our four key growth markets. We intend to continue to run our durable medical products business through the existing wholesaler relationships given the large range of product SKUs in the durable medical product category where we carry no less than a selection of nearly 2,000 products. No steps have been taken thus far to secure customers for our products.

The Company has started the process of preparing for an online marketing campaign.  The Company has a relationship with AGS Cybertech located in India who will manage and coordinate all of our online marketing efforts.  The campaign will include internet banner ads, search engine optimization, and social media optimization.  All banner advertising will be strategically placed with various click per view programs as part of our overall sales and marketing plan.

In our key growth areas we plan to focus on reducing and concentrating the number of product SKUs in each growth category in order to create leverage with our supply chain across selected relationships with respiratory, diabetes, ostomy and mastectomy suppliers.  These new direct-from-manufacturer programs will primarily be drop ship programs and will essentially result in no new product inventory risks.  They will be predominantly product substitution strategies where direct manufacturers carry the inventory risk in order to get shelf space within our business to consumer e-commerce property www.leadingmedicalproducts.comand other sales channels.  These programs will be based on committed but non-binding contracted volume from us with each manufacturer, but where the manufacturer still carries the inventory, marketing investment, and the majority of the time continues to handle drop shipments direct to our customers and sales channels.

The first tranche of these direct-from-manufacturer programs is expected to be with North America based manufacturers given a tendency for higher quality product, margins and their ability to handle inventory and direct shipments to our customers.  We also plan to evaluate a select number of overseas supplier relationships if we identify that a select overseas direct supplier can and will meet our delivery, financing and quality and return warranty terms.  As a result of these supply chain improvements we expect to increase our net revenues based on margin improvements of an average of 20-25% and this does not include factoring in even higher margins if we choose to source from overseas markets.

We expect that these new product launches will be outlined and planned within the 20162017 fiscal year and the beginning of fiscal year 2017, once our financing is completed.  During the next 24 months following our 20152016 year-end, we plan to work with our manufacturing partners to develop and finalize no less than two new product lines within each core product group for respiratory, diabetes, ostomy and mastectomy supplies and launch them by the second half of fiscal year 2.2017.  Together with our manufacturer partners we intend to develop and test market and then finalize our packaging and product features and licensing requirements by the end of 20162017 fiscal year.

In addition to attempting to achieve supply chain optimization by the beginning of fiscal year 2017, which we intend to result in reduced overall cost of goods, we also plan to drive top line growth with a major marketing initiative for new products. No formal products have been discussed as of yet. By the end of July 2017, we intend to achieve the 3 key milestones outlined above including: (1) entering into new growth markets, (2) optimizing our supply chain, and (3) launching new product lines in our new growth from existing product line sales in growth markets for respiratory, diabetes, ostomy and mastectomy supplies through a margin optimized supply chain; a contribution from our traditional durable medical products businesses through existing wholesaler channels and from new products launched.

 

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Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

We have estimated that we will incur minimum expenses equal to $75,000 in the year following our July 31, 20152016 year-end in order to maintain our business operations.  However, if we conduct a financing, we will devote the capital raised to operational expenses as indicated below. The Company will attempt to complete a financing for a minimum of $200,000 within the 12-month period following the Company’s 20152016 year-end.  Any capital raised will be through either a private placement or a convertible debenture and will result in the issuance of common shares from the Company’s authorized capital.

Web Development and Maintenance $5,000 
Legal/Accounting $15,000 
Computer hardware and software systems $10,000 
Advertising and Marketing $130,000 
General and administrative $10,000 
Salaries and Customer Service $25,000 
Telephone $1,000 
Travel $4,000 
Total Expenses $200,000 

The above represents managements’ best estimate of our cash requirements based on our business plans and current market conditions. The above is based on our ability to raise sufficient financing and generate adequate revenues to meet our cash flow requirements. The actual allocation between expenses may vary depending on the actual funds raised and the industry and market conditions over the next 12 months following our July 31, 20152016 year-end.

The Company is currently negotiating financing in the amount of $200,000 to further the Company’s business operations.  Any capital raised will likely be through either a private placement or a convertible debenture and will likely result in the issuance of common shares from the Company’s authorized capital.

If we are able to complete a financing through a private offering for a minimum of $200,000 within the 12 month period following our July 31, 20152016 year-end, we expect to replace and expand any existing major wholesaler relationships we currently work with by the beginning of year two following our July 31, 20152017 year-end. Further, during this expected time frame, we plan to establish direct-from-manufacturer programs for our four key growth markets in order to achieve improved margin of between 25-35%.  We will continue, however, to run our durable medical products business through the existing wholesaler relationships given the large range of product SKUs in the durable medical product category where we carry no less than a selection of nearly 2,000 products.

  In addition, the Company is also seeking acquisitions within the health space as a means to grow the Company.

Results of Operations

For the three and sixnine months ended January 31,April 30, 2016 and 2015

For the three and sixnine months ended January 31,April 30, 2016 and 2015 we did not have any sales. The Company has launched a new e-commerce platform, leadingmedicalproducts.com. The site features a new vibrant design with a fresh look, and offers quick and easy access to essential product information that provides a more comprehensive understanding of the Company’s product lines. In addition, the Company has not been successful in completing the required financing to begin its advertising campaign.campaign and promotion of www.leadingmedicalproducts.com. We expect to generate increased sales once our advertising campaign begins.

 

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Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Operating expenses for the three and sixnine months ended January 31,April 30, 2016 were $12,112$6,076 and $18,548$24,624 respectively, as compared to $20,946$16,178 and $44,995$60,922 for the three and sixnine months ended January 31,April 30, 2015, respectively.

During the three and sixnine months ended January 31,April 30, 2016, we recorded $10,707$5,399 and $16,113$21,512 respectively, as professional feefees (three and sixnine months ended January 31,April 30, 2015, $9,977$7,463 and $22,366 respectively) $nil and $nil as consulting and management fee (three and six months ended January 31, 2015, $6,000 and $12,000, respectively), $nil and $nil as rent and occupancy (three and six months ended January 31, 2015, $3,600 and $7,200,$29,829 respectively) and $1,405$677 and $2,435$3,112 respectively, as office and general expenses (three and sixnine months ended January 31,April 30, 2015, $1,369$715 and $3,178$3,893 respectively) due to decrease in activities.

Moreover, professional expenses (consulting fee and website design fee) were also booked during the quarter ended January 31, 2015. There were no such expenses during the quarter and six months ended January 31, 2016.

.  During the three and six months ended January 31,April 30, 2016, the Company did not record any expense relating to rent and occupancy and consulting and management fees due to decrease in activities.  During the fiscal year 2016, the shareholder decided to discontinue charging rent and consultancy fees due to minimal activities in the Company.

During the three and nine months ended April 30, 2016 and 2015, we had no provision for income taxes due to the net operating losses incurred.

Liquidity and Capital Resources

As of January 31,April 30, 2016, we had nil cash balance and a working capital deficit of $148,440

$154,516.

The Company is currently seeking funding for our continued operations.  The Company intends to raise a minimum of $200,000 and a maximum of $500,000 in order to continue the introduction of the www.Leadingmedicalproducts.com e-commerce site to the retail community and health care community.  To achieve our goals the Company expects to commit the majority of its funding to the advertising of the Company’s web site. There is no assurance that the Company will be able to raise the capital required to complete its goal and objectives and the Company is currently seeking capital to further its business plan.  We are planning to raise funds through either debt or issuing shares of our common stock in order to achieve our business goals. The issuance of additional shares or securities convertible into any such shares may dilute the percentage ownership of our current stockholders. There are no agreements with any parties at this point in time for additional funding; however, we are in discussions with various funders in the United States.

We believe we can satisfy our cash requirements for the next twelve months with our expected revenues and if needed an additional loan from our director, Jordan Starkman.  We cannot assure investors that adequate revenues will be generated and there is no current loan commitment in place between the Company and Jordan Starkman. However, the success of our operations is dependent on attaining adequate revenue. In the absence of our projected revenues, we may be unable to proceed with our plan of operations or we may require financing to achieve our profit, revenue, and growth goals.

We anticipate that our fixed costs made up of legal and accounting and general and administrative expenses for the next 12 months will total approximately $25,000. Legal and accounting expenses of $15,000 represents the minimum funds needed to sustain operations. The $25,000 will be financed through the Company’s additional financing, net sales and if needed, an advance from our officer and director, Jordan Starkman. We do not anticipate the purchase or sale of any significant equipment. We also do not expect any significant additions to the number of employees, until financing is raised. The foregoing represents our best estimate of our cash needs based on our current business condition. The exact allocation, purposes and timing of any monies raised in subsequent private financings may vary significantly depending upon the exact amount of funds raised and our progress with the execution of our business plan. It is currently expected that the Company will spend an additional $175,000 in variable costs relating to marketing and business development that will be funded from future financings.

In the event we are not successful in reaching our initial revenue targets, we will need additional funds to proceed with our business plan for the development and marketing of our core services. Should this occur, we would likely seek additional financing to support the continued operation of our business. We anticipate that depending on market conditions and our plan of operations, we may incur operating losses in the foreseeable future. Therefore, our auditors have raised substantial doubt about our ability to continue as a going concern.

 

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Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Recent

Recently Issued Accounting Pronouncements

In April 2014,Standards


As explained in notes to the FASB issued Accounting Standards Update (“ASU”) 2014-08, "Presentation of Financial Statements and Property, Plant, and Equipment - Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity'', which revises what qualifies as a discontinued operation, changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. This ASU will be effective forcondensed financial statements, the Company for applicable transactions occurring after August 1, 2016. The Company will prospectively applyevaluated all recent accounting pronouncements issued and determined that the guidance to applicable transactions and doesadoption of these pronouncements would not expect adoption to have a material impacteffect on the financial statements.

On May 28, 2014, the FASB issued a new financial accounting standard on revenue from contracts with customers, ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. In July 2015, the FASB voted to approve a one-year deferralposition, results of operations or cash flows of the effective date of ASU 2014-09, which will be effective for the Company in the first quarter of fiscal year 2018 and may be applied on a full retrospective or modified retrospective approach. This ASU will have no impact on the Company until it begins to generate revenue.

In June 2014, the FASB issued Accounting Standards Update ASU 2014-10, “Development Stage Entities”. The amendments in this update remove the definition of a development stage entity from the Master Glossary of the ASC thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP.  In addition, the amendments eliminate the requirements for development stage entities to (1) present

inception-to-date information in the statements of income, cash flows, and stockholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had’ been in the development stage. The amendments in this update are applied retrospectively.

On August 27, 2014, the FASB issued a new financial accounting standard on going concern, ASU 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. The standard provides guidance about management’s responsibility to evaluate whether there is substantial doubt about the organization’s ability to continue as a going concern. The amendments apply to all companies and are effective in annual periods ending after December 15, 2016, with early application permitted. The Company is currently evaluating the impact of this accounting standard on its financial statements.

On April 7, 2015, the FASB issued ASU No. 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs”. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts and the accounting for debt issue costs under IFRS. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The amendments apply to all companies and are effective for public business entities in annual periods ending after December 15, 2015, and interim periods within those fiscal years, with early application permitted. The Company is currently evaluating the impact of this accounting standard on its financial statements.  

Company.


Off-Balance Sheet Arrangements

We do not have any outstanding derivative financial instruments, off-balance sheet guarantees, interest rate swap transactions or foreign currency contracts.


Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Not required for Smaller Reporting Companies.

Item 4. 

Controls and Procedures

Evaluation of disclosure controls and procedures

Pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934 (“Exchange Act”), the Company carried out an evaluation, with the participation of the Company’s management, including the Company’s principal executive officer and principal financial officer of the effectiveness of the Company’s disclosure controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Company’s principal executive officer and principal financial officer concluded that the Company’s disclosure controls and procedures were not effective as of January 31,April 30, 2016 to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act (i) is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms and (ii) is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure.

It should be noted that any system of controls, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system are met. In addition, the design of any control system is based in part upon certain assumptions about the likelihood of future events. Because of these and other inherent limitations of control systems, there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Changes in internal controls

No change in our system of internal control over financial reporting occurred during the sixnine months ended January 31,April 30, 2016 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1.

Legal Proceedings

We are currently not involved in any litigation that we believe could have a materially adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our company’s or our company’s subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

Item 1A.

Risk Factors

Not required for Smaller Reporting Companies.


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Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

In August 2014, the Company agreed to issue 500,000 common stock valued at $0.05 per share against cash proceeds

No recent sales of $25,000.

The above proceeds were used to fund operations as discussed in our Plan of Operations.

equity securities.

Item 3.

Defaults Upon Senior Securities

None

 

None

Item 4.

Mine Safety Disclosures

Not Applicable

Item 5.

Other Information

None

Item 6.

31.1

Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1

Certification of Principal Executive Officer and Principal Financial Officer of the Registrant pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS**

XBRL Instance

101.SCH**

XBRL Taxonomy Extension Schema

101.CAL**

XBRL Taxonomy Extension Calculation

101.DEF**

XBRL Taxonomy Extension Definition

101.LAB**

XBRL Taxonomy Extension Labels

101.PRE**

XBRL Taxonomy Extension Presentation

**XBRL

information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections

17

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Health Advance, Inc.

By:

/s/ Jordan Starkman

Jordan Starkman

President, Chief Executive Officer,
Chief Financial Officer

(Duly Authorized Officer,
Principal Executive Officer and
Principal Financial Officer)

Dated: March 21,July 13, 2016

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