10KSB 1 form10ksb.txt FORM 10KSB [LUDLOW & HARRISON LETTERHEAD] INDEPENDENT AUDITORS REPORT --------------------------- We have audited the accompanying balance sheets of Prevention Insurance-com as of April 30, 2001 and 2000, and the related statements of income, retained earnings and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit on accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance that the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as assessing the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Prevention Insurance.com as of April 30, 2001 and 2000, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. /s/ Ludlow & Harrison Ludlow & Harrison A CPA Corporation July 27, 2001 PREVENTION INSURANCE.COM BALANCE SHEET AS OF APRIL 30, ASSETS: 2001 2000 ----------- ----------- CURRENT ASSETS: CASH $ 80 $ 16,766 ACCOUNTS RECEIVABLE 7,382 ----------- ----------- TOTAL CURRENT ASSETS 7,462 16,766 ----------- ----------- TOTAL ASSETS $ 7,462 $ 16,766 =========== =========== LIABILIITES & STOCKHOLDERS'EQUITY: CURRENT LIABILITIES ACCOUNTS PAYABLE $ 14,458 $ 10,458 ----------- ----------- TOTAL CURRENT LIABILITIES 14,458 10,458 ----------- ----------- STOCKHOLDERS'EQUITY: COMMON STOCK 59,511 56,411 TREASURY STOCK (52,954) (52,954) ADDITIONAL PAID-IN CAPITAL 3,350,016 3,350,016 RETAINED EARNINGS (3,363,569) (3,347,165) ----------- ----------- TOTAL STOCKHOLDERS'EQUITY (6,996) 6,308 ----------- ----------- TOTAL LIABILIITIES & STOCKHOLDERS'EQUITY: $ 7,462 $ 16,766 =========== =========== The accompanying notes are an integral part of these financial statements. PREVENTION INSURANCE.COM STATEMENT OF INCOME AND CHANGES IN RETAINED EARNINGS FOR THE YEARS ENDED APRIL 30, 2001 2000 ----------- ----------- SALES $ 49 COST OF SALES ----------- GROSS PROFIT 49 OPERATING EXPENSES 16,404 17,781 ----------- ----------- NET LOSS (16,404) (17,732) BEGINNING RETAINED EARNINGS (DEFICIT) (3,347,165) (3,329,433) ----------- ----------- ENDING RETAINED EARNINGS (DEFICIT) ($3,363,569) ($3,347,165) =========== =========== The accompanying notes are an integral part of these financial statements. PREVENTION INSURANCE.COM STATEMENT OF CASH FLOWS YEAR ENDED APRIL 30, 2001 2000 -------- -------- Cash flows from Operating Activities Net loss ($16,404) ($17,732) Adjustments to reconcile net loss to cash used by operating activities (Increase) Decrease in A/R (7,382) 29,482 (Decrease) Increase in accounts payable 4,000 (99,799) -------- -------- Cash used by operating activities (19,786) (88,049) Cash flows from investing activities Cash from investing activities 0 0 Cash flows from financing activities Cash from sale of common stock 3,100 20,000 -------- -------- Net change in cash (16,686) (68,049) Cash beginning of year 16,766 84,815 -------- -------- Cash end of year $ 80 $ 16,766 ======== ======== The accompanying notes are an integral part of these financial statements. PREVENTION INSURANCE.COM NOTES TO FINANCIAL STATEMENTS APRIL 30, 2001 AND 2000 Note I - Nature of Business and Summary of Significant Accounting Policies A. Nature of Business - The Company was incorporated in Nevada in 1975 under the name of Vita Plus Vita Plus Industries, Inc.. The Company conducted business under this name until March 10, 1999, at which time it sold off its remaining inventory of nutritional products together with its name. Subsequent to this, the Company changed its name to Prevention Insurance.Com, and has entered into the area of consultation to the insurance industry. Note 2 - Related Party Transactions The Company loaned $ 10,580 to it's President, of which $ 3,198 was offset by amounts previously loaned by him to the Company. Note 3 - Capital Stock The common stock of the Company includes the following as of April 30, 2000: Number of Par Paid-in Shares Authorized and Issued. Shares Issued Value Capital ---------------------------- ------------- ------ ------- Preferred Stock, Par Value $.Ol 2,000,000 shares authorize -- $ -- $ -- Class A Common Stock; Par Value $.01; 20,000,000 share authorized 5,415,651 $ 54,156 $ 3,350,016 Total capital stock issued 5,951,100 $ 59,511 $ 3,350,016