Protect Pharmaceutical (PRTT) 10-K 14 Apr 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Jun. 30, 2015
Document and Entity Information:
Entity Registrant Name	PROTECT PHARMACEUTICAL Corp
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Trading Symbol	prtt
Amendment Flag	false
Entity Central Index Key	1,493,526
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding	1,111,460
Entity Public Float		$ 1,111,460
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	2,015
Document Fiscal Period Focus	FY

Balance Sheets

Balance Sheets - USD ($)	Dec. 31, 2015	Dec. 31, 2014
CURRENT ASSETS
Cash	$ 7	$ 502
Total Current Assets	7	502
TOTAL ASSETS	7	502
CURRENT LIABILITIES
Accounts payable and accrued expenses	69,656	63,443
Related party payables	30,798	58,052
Total Current Liabilities	100,454	121,485
TOTAL LIABILITIES	100,454	121,485
STOCKHOLDERS' DEFICIT
Common stock; 100,000,000 shares authorized, at $0.005 par value, 1,111,460 and 89,459shares issued and outstanding, respectively	5,557	447
Additional paid-in capital	9,244,288	8,593,398
Accumulated deficit	(9,350,292)	(8,714,828)
Total Stockholders' Deficit	(100,447)	(120,983)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 7	$ 502

Statements of Operations

Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
EXPENSES
Professional Fees	$ 22,085	$ 24,848
Executive compensation	6,000	6,000
General and administrative	1,942
LOSS FROM OPERATIONS	(30,027)	(30,848)
OTHER INCOME (EXPENSE)
Loss on settlement of debt	(605,437)
Gain on forgiveness of liabilities		(488,993)
INCOME (LOSS) BEFORE INCOME TAXES	(635,464)	458,145
PROFIT (LOSS)	$ (635,464)	$ 458,145
BASIC AND DILUTED INCOME (LOSS) PER SHARE OF COMMON STOCK	$ (1.44)	$ 8.48
BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING	442,169	54,047

Statements of Stockholders' Equ

Statements of Stockholders' Equity - USD ($)	Common stock	Additional Paid In Capital	Accumulated Deficit	Total
Balance common shares, beginning balance at Dec. 31, 2013	44,573			44,573
Stockholders' Equity, beginning balance at Dec. 31, 2013	$ 223	$ 8,577,622	$ (9,172,973)	$ (595,128)
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
Balance common shares, ending balance at Dec. 31, 2014	89,459			89,459
Stockholders' Equity, ending balance at Dec. 31, 2014	$ 447	8,593,398	(8,714,828)	$ (120,983)
Rounding shares issued, value	$ 110	(110)
Rounding shares issued, shares	22,001			22,001
Contributed services, value		6,000		$ 6,000
NET LOSS			(635,464)	$ (635,464)
Balance common shares, ending balance at Dec. 31, 2015	1,111,460			1,111,460
Stockholders' Equity, ending balance at Dec. 31, 2015	$ 5,557	$ 9,244,288	$ (9,350,292)	$ (100,447)

Statements of Cash Flows

Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
OPERATING ACTIVITIES
Net income (loss)	$ (635,464)	$ 458,145
Adjustments to reconcile income (loss)to cash flows from operating activities
Services contributed by an officer	6,000	6,000
Loss on settlement of debt	605,436
Gain on forgiveness of liabilities		(488,993)
Expenses paid on behalf of the Company		33,112
Changes in operating assets and liabilities
Accounts payable and accrued expenses	(3,330)	3,116
Accounts payable - related parties	9,553	(11,559)
Net Cash Used in Operating Activities	(17,805)	(179)
FINANCING ACTIVITIES
Advances from related party	17,310
Net Cash provided by Financing Activities	17,310
NET CHANGE IN CASH	(495)	(179)
CASH AT BEGINNING OF PERIOD	502	681
CASH AT END OF PERIOD	7	502
NON-CASH FINANCING ACTIVITIES:
Common stock issued for mining claims		130
Share issued for rounding in reverse split	$ 110	94
Capital contributed by related party in assumption of liabilities		$ 10,000
Common stock issued for settlement of debt	650,000

Note 1 - Organization and Histo

Note 1 - Organization and History	12 Months Ended
	Dec. 31, 2015
Notes
Note 1 - Organization and History	NOTE 1 - ORGANIZATION AND HISTORY Business and Organization Protect Pharmaceutical Corporation (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, 2015
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. 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, 2015 and 2014 the Company had $7 and $502 of cash and cash equivalents, respectively. Revenue Recognition 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, product is delivered, 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, 2015 and 2014, 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, 2015 and 2014, 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. 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, 2015 and 2014. For the Year Ended December 31, 2015 For the Year Ended December 31, 2014 Income (Loss) (numerator) $ (635,464 ) $ 458,145 Shares (denominator) 442,169 54,047 Per share amount $ (1.44 ) $ 8.48 Recent Accounting Pronouncements Management has considered all 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, 2015
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 $9,350,292 as of December 31, 2015 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 4 - Related Party Transact

Note 4 - Related Party Transactions	12 Months Ended
	Dec. 31, 2015
Notes
Note 4 - Related Party Transactions	NOTE 4 – RELATED PARTY TRANSACTIONS 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, 2015 and December 31, 2014, respectively, the related party payable outstanding balance totaled $30,798 and $58,052. These payables are non-interest bearing, unsecured, and are due on demand. See also Note 5 for related party equity transactions.

Note 5 - Stockholders' Equity

Note 5 - Stockholders' Equity	12 Months Ended
	Dec. 31, 2015
Notes
Note 5 - Stockholders' Equity	NOTE 5 – STOCKHOLDERS’ EQUITY 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 September 19, 2014, the Company issued 26,000 shares of common stock to Blue Cap Development Corp. in exchange for certain mining and/or mineral claims and/or leases located in New Mexico. Two principals of Blue Cap, Edward F. Cowle and H. Deworth Williams, are principal stockholders of the Company. On November 4, 2014, the Company effected a reverse stock split of its issued and outstanding shares of common stock on a one (1) share for one thousand (1000) shares basis. As per the terms of the reverse stock split, any fractional share amount resulting from the split was automatically rounded up to the next higher whole share amount, with the provision that no individual stockholder’s holdings would be reduced below 100 shares. Additional shares to restore each such affected stockholder’s holdings to 100 shares were issued. The par value of the common stock remains at $0.005 per share. As a result of the reverse stock split and the rounding up of odd lots to 100 shares, at December 31, 2014, there were 89,459 shares certificated and outstanding, although not all shareholders had made claims for additional rounding shares. On September 1, 2015 the Company issued an aggregate of 1,000,000 shares of common stock to related parties as payment on a note payable with a balance of $44,563. The shares were valued at $0.65 per share, resulting in a total payment value of $650,000. The transaction resulted in the Company recording a loss on settlement of debt in the amount of $605,437.

Note 6 - Committments

Note 6 - Committments	12 Months Ended
	Dec. 31, 2015
Notes
Note 6 - Committments	NOTE 6 – COMMITTMENTS 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, 2014, 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, 2014. During the December 2015, this amount and $2,167 of accrued expenses owed to this former Officer was forgiven, resulting in a gain of $488,993. 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, 2015, these milestones have not been completed.

Note 7 - Income Taxes

Note 7 - Income Taxes	12 Months Ended
	Dec. 31, 2015
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, 2015 December 31, 2014 Income tax benefit (expense) at statutory rate $ 216,058 $ 155,770 Contributed services 2,040) 2,040 Change in valuation allowance 214,018 (157,810) Income tax expense per books $ - $ - Net deferred tax assets consist of the following components as of: December 31, 2015 December 31, 2014 NOL carryover $ 2,929,237 ) $ (2,713,179 ) Contributed services 2,642,531 2,642,531 Contributed Services 6,120 6,120 Valuation allowance 280,586 64,528 Net deferred tax asset $ - $ - Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $8,615,402 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 - Subsequent Events

Note 8 - Subsequent Events	12 Months Ended
	Dec. 31, 2015
Notes
Note 8 - Subsequent Events	NOTE 8 – SUBSEQUENT EVENTS 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.

Uncategorized Items - prtt-2015

Label	Element	Value
Contributed services, value	us-gaap_StockIssuedDuringPeriodValueIssuedForServices	$ 6,000
NET LOSS	us-gaap_OtherComprehensiveIncomeLossNetOfTax	(23,939)
Additional Paid In Capital
Contributed services, value	us-gaap_StockIssuedDuringPeriodValueIssuedForServices	6,000
Accumulated Deficit
NET LOSS	us-gaap_OtherComprehensiveIncomeLossNetOfTax	$ (23,939)