Protect Pharmaceutical (PRTT) 10-K 15 Apr 15 2014 FY Annual report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2014	Jun. 30, 2014
Document and Entity Information:
Entity Registrant Name	PROTECT PHARMACEUTICAL Corp
Document Type	10-K
Document Period End Date	31-Dec-14
Amendment Flag	FALSE
Entity Central Index Key	1493526
Current Fiscal Year End Date	-19
Entity Common Stock, Shares Outstanding	44,573
Entity Public Float		$44,573
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	No
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY

Balance_Sheets

Balance Sheets (USD $)	Dec. 31, 2014	Dec. 31, 2013
ASSETS
Cash	$502	$681
Total Current Assets	502	681
TOTAL ASSETS	502	681
Accounts payable and accrued expenses	61,053	60,104
Accounts payable - related parties	2,380	23,939
Related party payables	58,052	24,940
Accrued officer salaries		486,826
Total Current Liabilities	121,485	595,809
TOTAL LIABILITIES	121,485	595,809
Common stock; 100,000,000 shares authorized,at $0.005 par value, 89,459 and 44,573shares issued and outstanding, respectively	447	223
Additional paid-in capital	8,593,398	8,577,622
Accumulated deficit	-8,714,828	-9,172,973
Total Stockholders' Deficit	-120,983	-595,128
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$502	$681

Statements_of_Operations

Statements of Operations (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
REVENUES
REVENUES	$458,145	($23,939)
Professional Fees	24,848	17,759
Executive compensation	6,000	6,000
General and administrative		180
LOSS FROM OPERATIONS	-30,848	-23,939
Gain on forgiveness of liabilities	-488,993
INCOME (LOSS) BEFORE INCOME TAXES	458,145	-23,939
PROFIT (LOSS)	$458,145	($23,939)
BASIC AND DILUTED INCOME (LOSS) PER SHARE OF COMMON STOCK	$8.48	($0.54)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING	54,047	44,573

Statements_of_Stockholders_Equ

Statements of Stockholders' Equity (USD $)	Common stock	Additional Paid In Capital	Accumulated Deficit	Total
Stockholders' Equity, beginning balance at Dec. 31, 2012	$223	$8,571,622	($9,149,034)	($577,189)
Balance common shares, beginning balance at Dec. 31, 2012	44,573			44,573
Contributed services, value		6,000		6,000
NET LOSS			-23,939	-23,939
Stockholders' Equity, ending balance at Dec. 31, 2013	223	8,577,622	-9,172,973	-595,128
Balance common shares, ending balance at Dec. 31, 2013	44,573			44,573
Common stock issued for mining claims, value	130	-130		-130
Common stock issued for mining claims, shares	26,000
Rounding shares issued, value	94	-94		-94
Rounding shares issued, shares	18,886
Contributed capital, value		10,000		10,000
Contributed services, value		6,000		6,000
NET LOSS			458,145	458,145
Stockholders' Equity, ending balance at Dec. 31, 2014	$447	$8,593,398	($8,714,828)	($120,983)
Balance common shares, ending balance at Dec. 31, 2014	89,459			89,459

Statements_of_Cash_Flows

Statements of Cash Flows (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
OPERATING ACTIVITIES
Net income (loss)	$458,145	($23,939)
Services contributed by an officer	6,000	6,000
Gain on forgiveness of liabilities	-488,993
Expenses paid on behalf of the Company	33,112	20,860
Change in accounts payable	3,116	-10,720
Change in Account payable - related parties	-11,559	7,620
Net Cash Used in Operating Activities	-179	-179
NET CHANGE IN CASH	-179	-179
CASH AT BEGINNING OF PERIOD	681	860
CASH AT END OF PERIOD	502	681
Common stock issued for mining claims	130
Share issued for rounding in reverse split	94
Capital contributed by related party in assumption of liabilities	$10,000

Note_1_Organization_and_Histor

Note 1 - Organization and History	12 Months Ended
	Dec. 31, 2014
Notes
Note 1 - Organization and History	NOTE 1 - ORGANIZATION AND HISTORY
	Business and Organization
	The financial statements presented are those of Protect Pharmaceutical Corporation (the Company).  The Company was originally incorporated under the laws of the state of Idaho on August 5, 1987.  The Company was incorporated for the purpose of purchasing, leasing or otherwise acquiring mining claims and rights and also to develop mines. The Company was unable to raise development money and the Company’s operations ceased.  The Company has been seeking new business opportunities believed to hold a potential profit or to merge with an existing, operating company.
	On June 15, 2006, the name of the Company changed to Pro-Tect, Inc. and its domicile was moved to the state of Nevada.  Subsequently, the Company changed its name on March 25, 2010 to Protect Pharmaceutical Corporation. Since that date the Company has engaged in licensing its patented pharmaceuticals technologies.

Note_2_Summary_of_Significant_

Note 2 - Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2014
Notes
Note 2 - Summary of Significant Accounting Policies	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Accounting Method
	These financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States. The Company’s fiscal year-end is December 31. The Company has realized no revenues from operations as of December 31, 2014 and is classified as a development stage enterprise.
	Use of Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.
	Cash and Cash Equivalents
	The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. As of December 31, 2014 and 2013 the Company had $502 and $681 of cash and cash equivalents, respectively.
	Revenue Recognition
	The Company’s source of revenue is the sale of patents. The Company will recognize revenue from the performance of its services and/or sale of its products in accordance with ASC 605 “Revenue Recognition. Revenue will be recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is provided, and collectability is assured.
	Advertising Costs
	The Company follows the policy of expensing advertising costs during the period in which they are incurred. The Company incurred no advertising costs during the years ended December 31, 2014 and 2013, respectively.
	Stock-based Compensation
	The Company adopted ASC 718 effective January 1, 2006 using the modified prospective method. Under this transition method, stock compensation expense includes compensation expense for all share-based compensation awards granted on or after January 1, 2006, based on the grant-date fair value estimated in accordance with the provisions of ASC 718. During the years ending December 31, 2014 and 2013, the Company issued $-0- and $-0-, respectively, in share-based payments for services.
	Provision for Taxes
	The Company applies ASC 740, which requires the asset and liability method of accounting for income taxes.  The asset and liability method requires that the current or deferred tax consequences of all events recognized in the financial statements are measured by applying the provisions of enacted tax laws to determine the amount of taxes payable or refundable currently or in future years. Deferred tax assets are reviewed for recoverability and the Company records a valuation allowance to reduce its deferred tax assets when it is more likely than not that all or some portion of the deferred tax assets will not be recovered.
	The Company adopted ASC 740 at the beginning of fiscal year 2009. This interpretation requires recognition and measurement of uncertain tax positions using a “more-likely-than-not” approach, requiring the recognition and measurement of uncertain tax positions. The adoption of ASC 740 had no material impact on the Company’s financial statements.
	Basic Income (Loss) per Common Share
	Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year.
	The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of December 31, 2014 and 2013.
		For the			For the
		Year Ended			Year Ended
		December 31,			December 31,
		2014			2013
	Income (Loss) (numerator)	$	458,145	)	$	(23,939	)
	Shares (denominator)		54,047			44,573
	Per share amount	$	8.48	)	$	(0.54	)
	Recent Accounting Pronouncements
	In June 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-10, which eliminated certain financial reporting requirements of companies previously identified as “Development Stage Entities” (Topic 915). The amendments in this ASU simplify accounting guidance by removing all incremental financial reporting requirements for development stage entities. The amendments also reduce data maintenance and, for those entities subject to audit, audit costs by eliminating the requirement for development stage entities to present inception-to-date information in the statements of income, cash flows, and shareholder equity.   Early application of each of the amendments is permitted for any annual reporting period or interim period for which the entity’s financial statements have not yet been issued (public business entities) or made available for issuance (other entities). Upon adoption, entities will no longer present or disclose any information required by Topic 915.  The Company has adopted this standard and will not report inception to date financial information.
	Management has considered all other recent accounting pronouncements issued since the last audit of the Company’s financial statements. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements.

Note_3_Going_Concern

Note 3 - Going Concern	12 Months Ended
	Dec. 31, 2014
Notes
Note 3 - Going Concern	NOTE 3 – GOING CONCERN
	The Company’s financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business.  However, the Company the Company has an accumulated deficit of $8,714,828 as of December 31, 2014 which raises substantial doubt about its ability to continue as a going concern.  It is the intent of the Company to seek a merger with an existing, operating company.  In the interim, shareholders of the Company have committed to meeting its minimal operating expenses.

Note_5_Related_Party_Transacti

Note 5 - Related Party Transactions	12 Months Ended
	Dec. 31, 2014
Notes
Note 5 - Related Party Transactions
	NOTE 4 – RELATED PARTY TRANSACTIONS
	Various startup expenses of the Company including purchase of property and equipment, officer’s compensation and general and administrative expenses have been paid for using funds provided by two directors of the Company. The liabilities are non-interest bearing, unsecured and due upon demand. The Company owed $2,380 and $23,939 for such payables as of December 31, 2014 and 2013, respectively. These amounts due are for services rendered by related parties.
	The Company has recorded advances from related parties and expenses paid by related parties on behalf of the Company as related party payables. As of December 31, 2014 and December 31, 2013, respectively, the related party payable outstanding balance totaled $58,052 and $24,940. These payables are non-interest bearing, unsecured, and are due on demand.

Note_5_Common_and_Preferred_St

Note 5 - Common and Preferred Stock	12 Months Ended
	Dec. 31, 2014
Notes
Note 5 - Common and Preferred Stock	NOTE 5 – COMMON AND PREFERRED STOCK
	On June 20, 2011, the Company received written consent from its majority stockholders to amend the Company’s articles of incorporation to change the authorized capitalization. The board of directors previously approved the resolution to increase the number of authorized common stock from 50,000,000 to 100,000,000 shares and to authorize 10,000,000 shares of “blank check” preferred shares.
	The newly authorized preferred shares may be issued from time to time in one or more series in the discretion of the board of directors. The board will have the authority to establish the number of shares to be included in each such series, and to fix the designation, powers, preferences and rights of the shares of each such series and the qualifications, limitations and restrictions thereof.
	On April 11, 2011, the Board of Directors appointed a new Chief Financial Officer, effective immediately and for a term of twelve months.  The Company issued 60,000 shares of its common stock at $1.05 per share to the officer as compensation for his services for an aggregate value of $63,000.  On the same date, the Company also issued 85,000 shares of its common stock at $1.05 per share to two consultants as compensation for professional services for an aggregate value of $89,250.
	On June 17, 2011, the Company issued 150,000 shares of common stock at $1.01 per share to a consultant for services rendered. The cost of the shares was valued at the trading price on the issuance date of $1.01 per share for an aggregate value of $151,500.
	On August 29, 2011 the Company issued 125,000 shares of its common stock to board members as compensation. The cost of the shares was valued at the trading price on the issuance date of $1.00 per share for an aggregate value of $125,000.
	On August 29, 2011 the Company issued 750,000 shares of common stock pursuant to a consulting agreement. The cost of services was valued at the trading price of the shares on the issuance date of $1.00 per share for an aggregate value of $750,000. This amount was amortized as appropriate for 2012, with the balance recorded as a prepaid asset as of December 31, 2012.
	On October 4, 2011, the Company issued 35,000 shares of common stock for services. The cost of the shares was valued at the trading price on the issuance date of $0.98 per share for an aggregate value of $34,300.

Note_6_Research_and_Developmen

Note 6 - Research and Development Costs	12 Months Ended
	Dec. 31, 2014
Notes
Note 6 - Research and Development Costs	NOTE 6 – RESEARCH AND DEVELOPMENT COSTS
	On February 12, 2010, the Company issued 5,000,000 shares of its common stock pursuant to a Patent Acquisition Agreement to purchase various patents to be used in the commercialization of certain drugs. In accordance with ASC 730, the Company has recorded the cost of these expenses as research and development expenses.
	As part of the Patent Acquisition Agreement, the Company has agreed to pay a royalty equal to 20% of gross sales from licensing fees or net sales.  Additionally, the Company is obligated to achieve the following developmental milestones:
		a)	Commercially reasonable efforts must begin within 12 months of the agreement
		b)	File an Investigational New Drug (IND) application for at least one product within two years of closing
		c)	Initiate clinical studies for at least one product within three years of closing
		d)	Commercialize at least one product within five years of closing
	As of December 31, 2013, these milestones have not been completed.

Note_7_Income_Taxes

Note 7 - Income Taxes	12 Months Ended
	Dec. 31, 2014
Notes
Note 7 - Income Taxes	NOTE 7 – INCOME TAXES
	The Company provides for income taxes under ASC 740 “Tax Provisions”. ASC 740 requires the use of an asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences are expected to reverse.
	ASC 740 requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.
	The provision for income taxes differs from the amounts which would be provided by applying the statutory federal income tax rate of 34% to net loss before provision for income taxes for the following reasons:
		December 31,			December 31,
		2014			2013
	Income tax benefit (expense) at statutory rate	$	(10,488	)	$	(8,138	)
	Contributed services		2,040			2,040
	Change in valuation allowance		8,488			6,098
	Income tax expense per books	$	-		$	-
	Net deferred tax assets consist of the following components as of:
		December 31,			December 31,
		2014			2013
	NOL carryover	$	(2,713,179	)	$	(2,868,948	)
	Contributed services		2,642,531			2,642,531
	Contributed Services		6,120			4,080
	Valuation allowance		64,528			222,337
	Net deferred tax asset	$	-		$	-
	Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $7,979,938 for federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur net operating loss carry forwards may be limited as to use in future years.

Note_8_Significant_Agreements

Note 8 - Significant Agreements	12 Months Ended
	Dec. 31, 2014
Notes
Note 8 - Significant Agreements	NOTE 8 – SIGNIFICANT AGREEMENTS
	On February 6, 2009, the Company entered into a Patent Acquisition Agreement, whereby it was assigned various patents for pharmaceutical products in exchange for 7,000,000 shares of the Company’s common stock. 5,000,000 shares were delivered immediately to the assignor and 2,000,000 shares are held to be delivered upon the successful completion of $2,000,000 financing. The patents are also subject to a 20% royalty on revenues, a 10% milestone payment and an employment agreement. The Company is responsible for the completion of a development program to commercialize products using the patented technologies within 5 years.
	The employment agreement provides that the patent holder will become the Company’s Chief Operating Officer. The agreement provides for an annual salary $250,000 in year one, $300,000 in year two and $350,000 in year three. The agreement also provides for compensatory common stock purchase warrants to be issued at not less than 20% of the shares issued for financing and other standard employee benefits. In January, 2013, the Chief Operating Officer resigned and the employment agreement expired, leaving a remaining balance owing in Accrued officer salaries of $486,826 on the balance sheet for both December 31, 2013.  During the December 2014, this amount and $2,167 of accrued expenses owed to this former Officer was forgiven, resulting in a gain of $488,993.

Note_9_Subsequent_Events

Note 9 - Subsequent Events	12 Months Ended
	Dec. 31, 2014
Notes
Note 9 - Subsequent Events	NOTE 9 – SUBSEQUENT EVENTS
	Subsequent to year end, the Company issued shares to beneficial shareholders pursuant to the rounding terms of the reverse stock split.
	In accordance with ASC 855-10, Company management reviewed all material events through the date of this report, and there are no other material subsequent events to report.