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SEC POTENTIAL PERSONS WHO ARE TO RESPOND TO THE COLLECTION OF INFORMATION
2334 (6 CONTAINED IN THIS FORM ARE NOT REQUIRED TO RESPOND UNLESS THE FORM
00) DISPLAYS A CURRENTLY VALID OMB CONTROL NUMBER.
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UNITED STATES OMB
SECURITIES AND EXCHANGE COMMISSION APPROVAL
WASHINGTON D.C. 20549 OMB NUMBER: 3235-0416
EXPIRES: APRIL 30, 2005
FORM 10-QSB ESTIMATED AVERAGE BURDEN
HOURS PER RESPONSE: 32.00
(Mark One)
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended: 10-31-04
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[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from 7-31-2004 to 10-31-04
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Commission File Number:
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PREVENTION INSURANCE.COM
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(Exact name of small business issuer as specified in its charter)
NEVADA 88-0126444
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2770 So. Maryland Pkwy. Las Vegas, NV 89109
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(Address of principal executive offices)
(702) 732-2758
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(Issuer's telephone number)
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(Former name, former address and former fiscal year,
if changed since last report)
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan conformed by a court. Yes [ ] No [ ]
PREVENTION INSURANCE.COM
BALANCE SHEETS
UNAUDITED
OCTOBER 31, April 30,
ASSETS 2004 2004
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Current assets:
Cash $ -- $ --
------------------------------
TOTAL CURRENT ASSETS $ -- $ --
==============================
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
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Current liabilities:
Accounts payable $ 1,419 $ 5,175
Advance from officer/shareholder 20,731 21,372
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TOTAL CURRENT LIABILITIES 22,150 26,547
Stockholders' (deficit):
Common stock 159,381 120,498
Additional paid in capital 3,460,147 3,466,529
Accumulated (deficit) (3,588,724) (3,560,620)
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30,804 26,407
Less: Treasury stock, at cost (52,954) (52,954)
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(22,150) (26,547)
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$ -- $ --
==============================
SEE NOTES TO FINANCIAL STATEMENTS
PREVENTION INSURANCE.COM
SUMMARY STATEMENTS OF OPERATIONS
Unaudited
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Six months ended Three months ended
October 31, October 31,
-------------------------------------------------
2004 2003 2004 2003
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Commission income $ 84,955 $ 62,662 $ 33,337 $30,440
General and administrative expenses 113,058 80,432 43,482 35,904
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Net (loss) $(28,103) $(17,770) $(10,145) $(5,464)
=================================================
Net income (loss) per share ($0.01) ($0,01) $0.00 ($0.01)
=================================================
SEE NOTES TO FINANCIAL STATEMENTS
PREVENTION INSURANCE.COM
STATEMENT OF CASH FLOWS
Unaudited
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Six months ended
October 31,
2004 2003
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Cash applied to operating activities
Net (loss) $ (28,103) $ (17,770)
Adjustments to reconcile net income to net cash
provided by operations
Stock issued for services 11,500 --
Decrease (increase) in accounts receivable -- --
Increase (decrease) in accounts payable and
accrued expenses (3,756) 64
Increase (decrease) in advance from
officer/shareholder (641) 1,206
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NET CASH PROVIDED BY OPERATIONS (21,000) (16,500)
Cash provided by investing activities --
Cash provided by financing activities
Proceeds from issuance of common stock 21,000 16,500
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NET CASH PROVIDED BY FINANCING ACTIVITIES 21,000 16,500
Increase (decrease) in cash --
Cash at beginning of period --
------------ ------------
Cash at October 31, $ -- $ --
============ ============
SEE NOTES TO FINANCIAL STATEMENTS
PREVENTION INSURANCE.COM
STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY
QUARTER ENDING OCTOBER 31, 2004
Common Stock Treasury Addt'l Paid Retained Total Equity
# of Shares Par Value Stock in Capital Earnings
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BALANCE, JULY 31, 2004 14,313,067 $143,146.50 -$52,954.00 $3,456,381.00 -$3,566,678.86 -$20,105.36
SHARES ISSUED 1,625,000 $6,250.00 $2,250.00 $8,500.00
NET INCOME QTR END JULY 31, 2004 -$10,544.30 -$10,544.30
BALANCE OCTOBER 31, 2004 15,938,067 $149,396.60 -$52,954.00 $3,458,631.00 -$3,577,223.16 -$22,149.66
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PREVENTION INSURANCE.COM
NOTES TO FINANCIAL STATEMENTS
Unaudited
NOTE 1. BASIS OF PRESENTATION
In the opinion of management all adjustments necessary for the financial
statements to be in conformity with generally accepted accounting principles
have been recorded.
NOTE 2. GOING CONCERN
The financial statements have been presented on the basis of a going concern.
The Company has incurred significant losses and is dependant on its ability to
raise capital pending the return to profitability. If it does not return to
profitability and if, it is unable to obtain interim financing, the Company will
cease operations.
MANAGEMENT DISCUSSIONS
PERIOD AUGUST 1, 2004 - OCTOBER 31, 2004
We have made good progress in identifying insurance wholesalers in the senior
market that we would like to merge into Prevention Insurance. We plan to
finalize our first acquisitions by the end of the year. We currently are trading
on the NASDAQ Bulletin Board. Our symbol is PVNC. OB
MANAGEMENT DISCUSSION OF PREVENTION INSURANCE DIVISION OPERATIONS:
Prevention Insurance's primary focus will be to merge into or acquire private
insurance wholesalers that market senior products either regionally or
nationally. Their products are targeted to baby boomers age 50 and over. their
primary products are long term care, med supplements, life insurance and
annuities, fixed and variable. Our goal is to acquire 2-4 profitable companies
by the end of our fiscal year, which is April 30, 2005. we are now in a position
to accelerate our search for compatible insurance brokers to bring into the
holding company.
Prevention's Insurance's cash needs will be covered by periodic
investments and our ATM sales division, however, we still intend to raise
additional working capital to cover any expansion plans. Our plan is to have one
year's total operating expenses on hand and additional capital for any
acquisitions that may require cash as well as stock.
DISCUSSION OF FINANCIAL CONDITIONS & RESULTS OF OPERATIONS:
Our condition is at present under-capitalized. We have basically been able to
pay off all of our payables as agreed. Revenue to date has been provided by our
ATM equipment sales division, Quick Pay, that is selling ATM machines to retail
outlets around the U.S. We have also received a small amount of capital from
existing shareholders through periodic stock sales. We will also be seeking out
private equity capital or a strategic partner as possible sources of financing.
QUICK PAY ATM DIVISION
We have insured additional blocks of ATM machines for both the equipment and
cash against damage and loss with our ATM insurance coverage policies that we
broker through insurance agencies.
In addition our equipment ATM division is growing we are expanding our sales
force. Our average number of ATM sales has increased. Revenue is projected next
year at $300,000 or more in sales. We anticipate opening an additional sales
office to boost sales further. We have also introduced a new ATM insurance
policy that provides coverage for both the ATM machine and the cash inside up to
$25,000. This has been well received and we started issuing polices for
customers who own blocks of ATM machines.
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Prevention Insurance.com Date:
/s/ Scott Goldsmith
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Name: Scott Goldsmith
Title: President