10QSB 1 b408854_10qsb.txt QUARTERLY REPORT -------------------------------------------------------------------------------- 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: 07-31-05 ------------------ [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from 05-01-2004 to 07-31-05 ---------- ----------- 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 SHEETS

(UNAUDITED) For the Three Months Ended July 31, 2005 -------------------------- ASSETS Current assets: Cash $ - ----------- ----------- TOTAL CURRENT ASSETS $ - =========== LIABILITIES AND STOCKHOLDERS' (DEFICIT) Current liabilities: Accounts payable $ 14,997 Bank Overdraft 6,228 Advance from Officer / Shareholder 15,000 ----------- TOTAL CURRENT LIABILITIES 36,225 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, 18,269,918 shares issued and outstanding 182,714 Additional paid in capital 3,550,686 Accumulated (deficit) (3,715,171) ----------- 18,229 Less: Treasury stock, at cost (52,954) Less: Stock Subscriptions Receivable (1,500) ----------- Total Stockholder's (Deficit) (36,225) ----------- Total Liabilites and Stockholder's Equity $ 0 ===========

SEE NOTES TO FINANCIAL STATEMENTS 1 PREVENTION INSURANCE.COM STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED JULY 31, (UNAUDITED) (UNAUDITED) 2005 2004 ---------- ----------- Commission income $ 29,856 $ 51,618 General and administrative 80,858 57,676 -------- -------- (Loss) from operations (51,002) (6,058) Interest expense - -------- -------- (Loss) before income taxes (51,002) (6,058) Income taxes - -------- -------- Net (loss) $(51,002) $ (6,058) ======== ======== (Loss) per share $ (0.01) $ (0.01) ======== ======== SEE NOTES TO FINANCIAL STATEMENTS 2 PREVENTION INSURANCE.COM STATEMENTS OF CHANGES IN STOCKHOLDERS' (DEFICIT) FOR THE THREE MONTHS ENDED JULY 31, 2005

Preferred Additional Stock Par Common Stock paid in Accumulated Treasury Stock Number value Number Par value capital deficit stock Subscriptions -------------------------------------------------------------------------------------------------- Balance April 30, 2005 $ - $ - 17,969,918 $ 179,714 $ 3,537,811 $ (3,664,169) $ (52,954) $ (1,500) Shares issued for cash 300,000 3,000 12,875 Net (loss) for the period (51,002) -------------------------------------------------------------------------------------------------- Balance July 31, 2005 18,269,918 $ 182,714 $ 3,550,686 $ (3,715,171) $ (52,954) $ (1,500) ==================================================================================================

Total ----------- Balance April 30, 2005 $ (1,098) Shares issued for cash 15,875 Net (loss) for the period (51,002) ----------- Balance July 31, 2005 $(36,225) ===========

SEE NOTES TO FINANCIAL STATEMENTS 3 PREVENTION INSURANCE.COM STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED JULY 31,

2005 2004 -------- -------- Cash flows from operating activities: Net loss $(51,002) $ (6,058) Adjustments to reconcile net loss to net cash used by operating activities: Changes in operating assets and liabilities: Stock issued for services and to settle debt Increase / (Decrease) in accounts payable 11,569 (2,769) Increase / (Decrease) in accounts payable - related party Increase / (Decrease) in advances from officer/shareholder (3,673) -------- -------- Net cash used by operating activities (39,433) (12,500) Cash flows from investing activities: Purchase of property and equipment - - -------- -------- Net cash used by investing activities - Cash flows from financing activities: Proceeds from issuance of common stock 15,875 12,500 Advance from Officer / Shareholder 15,000 - Bank Overdraft 6,228 - -------- -------- Net cash provided by financing activities 37,103 12,500 -------- -------- Net increase in cash (2,330) - Cash, beginning of period 2,330 - -------- -------- Cash, end of period - - ======== ========

SEE NOTES TO FINANCIAL STATEMENTS 4 PREVENTION INSURANCE.COM NOTES TO FINANCIAL STATEMENTS 1. FINANCIAL STATEMENT PRESENTATION The financial statements have been prepared in accordance with Securities and Exchange Commission requirements for interim financial statements. Therefore, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. These financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended April 30, 2005 as filed with the Securities and Exchange Commission on July 27, 2005. The results of operations for the interim periods shown in this report are not necessarily indicative of results to be expected for the full year. In the opinion of management, the information contained herein reflects all adjustments necessary to make the results of operations for the interim periods a fair statement of such operations. All such adjustments are of a normal recurring nature. 2. Stockholder's Equity During the three months ended July 31, 2005, the Company received cash of $15,875 for 300,000 shares of common stock (an average of approximately $.05 per share). 3. RELATED PARTY TRANSACTIONS During the three months ended July 31, 2005, the Company's founder advanced the Company cash of $15,000. Officer Compensation for the three months ended July 31, 2005 totaled $28,784. 5 MANAGEMENT DISCUSSION MAY 1, 05 -- JULY 31, 05 We have entered into an agreement with Health Imaging Inc. to merge Health Imaging is a fully Integrated Provider of Positron Emission Tomography (PET SCANNING) used by Physicians to diagnose and treat Cancer, Heart Disease, Parkinsons and Alzeimers Diseases. Providing all Audits are submitted and approved we anticipate the merger would be completed within 60 to 90 days. MANAGEMENT DISCUSSION OF PREVENTION INSURANCE DIVISION OPERATIONS: 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 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 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 to double next year with the addition of new products and increasing the 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: September 15, 2005 /s/ Scott Goldsmith ------------------- Name: Scott Goldsmith Title: President 6