The Company anticipates that the selection of a business combination will be complex and extremely risky. Because of general economic conditions, rapid technological advances being made in some industries and shortages of available capital, our management believes that there are numerous firms seeking even the limited additional capital which we will have and/or the perceived benefits of becoming a publicly traded corporation. Such perceived benefits of becoming a publicly traded corporation include, among other things, facilitating or improving the terms on which additional equity financing may be obtained, providing liquidity for the principals of and investors in a business, creating a means for providing incentive stock options or similar benefits to key employees, and offering greater flexibility in structuring acquisitions, joint ventures and the like through the issuance of stock. Potentially available business combinations may occur in many different industries and at various stages of development, all of which will make the task of comparative investigation and analysis of such business opportunities extremely difficult and complex.
As of April 30, 2013, the Company had assets equal to $9,218, comprised exclusively of cash. This compares with assets of $4,343, comprised exclusively of cash, as of April 30, 2012. The Company’s current liabilities as of April 30, 2013 totaled $93,861 comprised of $18,861 of accounts payable and $75,000 due to a related party. This compares with total liabilities of $54,044, comprised of $14,044 of accounts payable and $40,000 due to a related party, as of April 30, 2012. The Company can provide no assurance that it can continue to satisfy its cash requirements for at least the next twelve months.
The following is a summary of the Company's cash flows provided by (used in) operating, investing, and financing activities for the fiscal years ended April 30, 2013 and 2012.
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, 2013, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.
As of April 30, 2013 and 2012, the Company’s financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business.
As of April 30, 2013, the Company maintains office space in New York, New York with the Company’s majority shareholder at no cost to the Company. For the year ended April 30, 2013 and 2012, the rent expense was zero.
During the year ended April 30, 2012, the Company issued 1,395,000 common shares for the cash-less exercise of all of the warrants that were being held by Paragon Capital LP.
As of April 30, 2012, Mr. Goldsmith held warrants that were exercisable into 100,000 common shares of the Company at an exercise price of $1.00 per share post-reverse stock split effective April 27, 2011. Pursuant to the agreement with Mr. Goldsmith of March 8, 2010, the exercise period for the warrants that Mr. Goldsmith holds was extended to April 30, 2013.
As of April 30, 2013, the Company had a federal net operating loss carryforward of approximately $793,000, which expires through 2033. This carryforward is limited due to the change in control that took place in the year ended April 30, 2008 and maybe further limited in the future upon change(s) in control of the Company in accordance with the provisions under Internal Revenue Code Section 381.
As of April 30, 2013, the Company determined it was more likely than not the deferred tax assets would not be realized and recorded a full valuation allowance.
As of April 30, 2013 and 2012, the total amount of gross unrecognized tax benefits and gross interest and penalties were zero.