10QSB 1 form10qsb.txt FORM 10-QSB [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2002 [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT For the transition period from ___________ to __________ Commission file number ______________________________ PREVENTION INSURANCE.COM (Exact name of small business issuer as specified in its charter) NEVADA (State of other jurisdiction of (IRS Employer Identification No.) incorporation or organization) 2770 So. Maryland PKWY. #403A, Las Vegas, NV 89109 (Address of principal executive offices) (702) 732 - 2758 (Issuer's telephone number) (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 confirmed by a court. Yes [ ] No [ ] PART II--OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS None ITEM 2. CHANGES IN SECURITIES (a) Not applicable. (b) Not applicable. (c) Not applicable. (d) Not applicable. ITEM 3. DEFAULTS UPON SENIOR SECURITIES (a) Not applicable. (b) Not applicable. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS Not applicable. ITEM 5. OTHER INFORMATION None ITEM 6. EXHIBITS AND REPORTS on Form 8-K (a) Not applicable. (b) Not applicable. MANAGEMENT DISCUSSIONS Period May 1, 2002 - April 30, 2003 We have made good progress in completing our marketing plan. We will utilize this plan to start acquiring agencies. We are in the process of finalizing our first acquisition of a top insurance agency. Next quarter we will begin to assemble the sales force on a regional basis. We are going to capitalize the company's marketing efforts for two years through a mezzanine round of financing. We have started trading on the NASDAQ Bulletin Board. Our symbol is PVNC. MANAGEMENT DISCUSSION OF OPERATIONS: Prevention Insurance's primary focus will be to merger with top insurance agencies in various parts of the U.S. Our goal is to merge or enroll a minimum 12 agencies by the end of our fiscal year which is April 30, 2003. Prevention Insurance's cash needs will be covered by the service fees, however, we still intend to raise working capital of $5,000,000 for sufficient working capital on hand to cover any expansion plans. Our plan is to have one year's total operating expenses on hand and for any acquisitions that may require cash as well as stock. DISCUSSION OF FINANCIAL CONDITION & 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 equipment sales division, Quick Pay Co., that is selling ATM machines to retail outlets around the U.S. We have also received a small amount of seed capital from existing shareholders through stock sales. We will also be seeking out venture capital or strategic partners as possible sources of financing. PREVENTION INSURANCE.COM SUMMARY BALANCE SHEET OCTOBER 31, UNAUDITED

2002 2001 ASSETS Current assets Cash $ 2,058 $ 1,555 ---------------------------------------- Total current assets 2,058 1,555 Other assets -- 19,811 ---------------------------------------- $ 2,058 $ 21,366 ======================================== LIABILITIES & EQUITY Current liabilities Accounts payable $ 27,149 $ 10,458 ---------------------------------------- Total current liabilities 27,149 10,458 Equity Common stock 77,858 59,442 Additional paid in capital 3,451,069 3,395,997 Retained Earnings (3,501,065) (3,391,577) ---------------------------------------- 27,863 63,862 Less: cost of treasury stock (52,954) (52,954) ---------------------------------------- (25,092) 10,908 ---------------------------------------- $ 2,058 $ 21,366 ========================================

PREVENTION INSURANCE.COM SUMMARY STATEMENTS OF OPERATIONS UNAUDITED

Six months ended Three months ended October 31, October 31, --------------------------------------------------------------------- 2002 2001 2002 2001 --------------------------------------------------------------------- Commission income $ 41,606 $ 1,301 $ 22,889 $ 1,301 General and administrative expenses 100,062 29,309 68,420 28,354 --------------------------------------------------------------------- Net (loss) $ (58,456) $ (28,008) $ (45,531) $ (27,053) ===================================================================== Net (loss) per share $ (0.008) $ (0.005) $ (0.006) $ 0.005 =====================================================================

PREVENTION INSURANCE.COM STATEMENT OF CASH FLOWS UNAUDITED

Six months ended Three months ended October 31, October 31, -------------------------------------------------------- 2002 2001 2002 2001 -------------------------------------------------------- Cash applied to operating activities Net (loss) $(58,456) $(28,008) $(45,531) $(27,053) Adjustments to reconcile net income to net cash provided by operations Decrease (increase) in accounts receivable -- (12,429) -- (10,266) Increase (decrease) in accounts payable and 27,149 -- 27,149 -- accrued expenses (14,579) (4,000) -- -- -------------------------------------------------------- NET CASH PROVIDED BY OPERATIONS (45,886) (44,437) (18,382) (37,319) Cash provided by investing activities -- -- -- -- Cash provided by financing activities Proceeds from issuance of common stock 47,400 45,912 19,900 37,000 -------------------------------------------------------- NET CASH PROVIDED BY FINANCING ACTIVITIES 47,400 45,912 19,900 37,000 Increase (decrease) in cash 1,514 1,475 1,518 (319) Cash at beginning of period 544 80 540 1,874 -------------------------------------------------------- Cash at October 31, 2002 $ 2,058 $ 1,555 $ 2,058 $ 1,555 ========================================================

PREVENTION INSURANCE.COM STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY SIX MONTHS ENDED OCTOBER 31, 2002 UNAUDITED

TOTAL COMMON STOCK TREASURY ADD'TL PAID IN RETAINED STOCKHOLDERS # OF SHARES PAR VALUE STOCK CAPITAL EARNINGS EQUITY ------------------------------------------------------------------------------------------ BALANCE, April 30, 2002 6,407,951 $ 64,079 $ (52,954) $ 3,417,448 $(3,442,608) $ (14,035) SHARES ISSUED 537,866 5,379 22,121 27,500 NET LOSS, THREE MONTHS ENDED JULY 31, 2002 (12,925) (12,925) ----------------------------------------------------------------------------------------- BALANCE, July 31, 2002 6,945,817 69,458 (52,954) 3,439,569 (3,455,533) 540 SHARES ISSUED 840,000 8,400 11,500 19,900 NET LOSS, THREE MONTHS ENDED OCTOBER 31, 2002 (45,531) (45,531) ----------------------------------------------------------------------------------------- BALANCE, October 31, 2002 7,785,817 $ 77,858 $ (52,954) $ 3,451,069 $(3,501,064) $ (25,091) =========================================================================================

SIGNATURE PAGE 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: December 13, 2002 /s/ Scott Goldsmith ------------------------------------- Name: Scott Goldsmith Title: President