10QSB 1 b405372_10qsb.txt 10QSB -------------------------------------------------------------------------------- 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. -------------------------------------------------------------------------------- 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: 01-31-05 ------------------ [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from 11-01-2004 to 01-31-05 ---------- ----------- Commission File Number: ---------------- PREVENTION INSURANCE.COM -------------------------------------------------------------------------------- (Exact name of small business issuer as specified in its charter) NEVADA 88-0126444 ------ ---------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 2770 So. Maryland Pkwy. 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 conformed by a court. Yes [ ] No [ ] PREVENTION INSURANCE.COM FINANCIAL STATEMENTS JANUARY 31, 2005 (Unaudited) PREVENTION INSURANCE.COM BALANCE SHEET

(UNAUDITED) JANUARY 31, APRIL 30, ASSETS 2005 2004 ----------------------------------------------------------------------------------------------------------------- Current assets: Cash $ 2,395 $ - ------------------------------- TOTAL CURRENT ASSETS 2,395 - ------------------------------- $ 2,395 $ - =============================== LIABILITIES AND STOCKHOLDERS' (DEFICIT) ----------------------------------------------------------------------------------------------------------------- Current liabilities: Accounts payable $ 500 $ 5,175 Advance from officer/shareholder 3,031 21,372 ------------------------------- TOTAL CURRENT LIABILITIES 3,531 26,547 Commitments - - Stockholders' (deficit): Preferred stock, par value $ .01, 2,000,000 shares authorized, no shares issued or outstanding - - Common stock, $ .01 par value, 100,000,000 shares authorized, 17,609,918 shares issued and outstanding 176,114 120,498 Additional paid in capital 3,530,911 3,466,529 Accumulated (deficit) (3,650,707) (3,560,620) ------------------------------- 56,318 26,407 Less: Treasury stock, at cost (52,954) (52,954) ------------------------------- 3,364 (26,547) Less: Receivables from the sale of common stock (4,500) - ------------------------------- (1,136) (26,547) ------------------------------- $ 2,395 $ - ===============================

SEE NOTES TO FINANCIAL STATEMENTS -1- PREVENTION INSURANCE.COM STATEMENTS OF OPERATIONS

(UNAUDITED) (UNAUDITED) NINE MONTHS ENDED THREE MONTHS ENDED JANUARY 31, JANUARY 31, ------------------------------ ------------------------------ 2005 2004 2005 2004 ------------------------------------------------------------------------------------------------------------------ Commission income $ 127,128 $ 95,807 $ 42,173 $ 33,145 General and administrative 217,215 122,048 77,107 41,616 ------------------------------ ------------------------------ (Loss) from operations (90,087) (26,241) (34,934) (8,471) Interest expense - - ------------------------------ ------------------------------ (Loss) before income taxes (90,087) (26,241) (34,934) (8,471) Income taxes - - - - ------------------------------ ------------------------------ Net (loss) $ (90,087) $ (26,241) $ (34,934) $ (8,471) ============================== ============================== (Loss) per share $ (0.01) $ (0.01) $ (0.01) $ (0.01) ============================== ==============================

SEE NOTES TO FINANCIAL STATEMENTS -2- PREVENTION INSURANCE.COM STATEMENTS OF CASH FLOWS

(UNAUDITED) NINE MONTHS ENDED JANUARY 31, ----------------------------------- 2005 2004 -------------------------------------------------------------------------------------------------------------------- Cash flows from operating activities: Cash received from customers $ 127,128 $ 95,807 Cash paid to employees and vendors (180,473) (118,557) Interest paid - - ----------------------------------- NET CASH (USED BY) OPERATING ACTIVITIES (53,345) (22,750) Cash flows from investing activities: - - ----------------------------------- Cash flows from financing activities: Stock issued for cash 55,740 Stock issued for cash 22,750 ----------------------------------- NET CASH PROVIDED BY FINANCING ACTIVITIES 55,740 22,750 Increase (decrease) in cash 2,395 - Cash at beginning of year - - ----------------------------------- Cash at end of year $ 2,395 $ - =================================== The following is a reconciliation of net (loss) to net cash (used by) operating activities Net (loss) $ (90,087) $ (26,241) Adjustments to reconcile net income to net cash provided by operating activities: Issuance of common stocks for costs and expenses 42,146 - Issuance of common stocks for debt relief 17,612 - Increase (Decrease) in accounts payable (4,675) 2,285 Increase (Decrease) in advances from officer/shareholder (18,341) 1,206 ----------------------------------- Net cash (used by) operating activities $ (53,345) $ (22,750) =================================== SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Non-cash financing activities Issuance of common stocks for costs and expenses $ 42,146 $ - ----------------------------------- Issuance of common stocks for debt relief $ 17,612 $ - -----------------------------------

SEE NOTES TO FINANCIAL STATEMENTS -3- 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. -4- MANAGEMENT DISCUSSIONS PERIOD NOVEMBER 1, 2004 - JANUARY 31, 2005 We are currently in various stages of discussions with insurance brokers and wholesalers 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 products either regionally or nationally. Their primary products are long term care, med supplements, life insurance and annuities. 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 position to accelerate our search for compatible insurance brokers to bring into Prevention Insurance. Prevention 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 capitol 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 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 to raise additional working capital this coming year. QUICK PAY ATM DIVISION Our ATM equipment sales division is growing, we are expanding our sales force. Our average number of ATM sales has increased. Revenue is projected to double next year with the addition of new products and increase in sales force. 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 Date: /s/ Scott Goldsmith ------------------- Name: Scott Goldsmith Title: President