For the fiscal year ended April 30, 2016, the Company had a net loss of $272,516 of which $69,603 comprised of general and administrative expenses including legal, accounting, audit, and other professional service fees incurred in relation to the filing of the Company’s periodic reports on Form 10-K and Form 10-Q. In addition, the Company has an interest expense of $202,913 for fiscal year 2016 in connection with our convertible notes payable to a related party. Of this balance, $199,500 related to the amortization of the debt discount arising on the issuance of the convertible notes to the related party. These notes were converted to common stock on December 8, 2015.
For the fiscal year ended April 30, 2015, the Company had a net loss of $39,709 comprised of general and administrative expenses including legal, accounting, audit, and other professional service fees incurred in relation to the filing of the Company’s periodic reports on Form 10-K and Form 10-Q.
During the year ended April 30, 2016, four convertible notes totaling $199,500 were converted into 19,950,000 shares of common stock of the Company pursuant to their terms.
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, 2016 and 2015.
We have audited the accompanying balance sheets of Prevention Insurance.Com (the “Company”) as of April 30, 2016 and 2015, and the related statements of operations, changes in stockholders’ deficit, and cash flows for the years then ended. Prevention Insurance.Com’s management is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements based on our audits.
Effective December 8, 2015, a change of control occurred with respect to the Company. Pursuant to a Securities Purchase Agreement entered into by and among the Company, Paragon Capital LP (“Seller”), and Yik Kei Ong (“Buyer”, as nominee for certain third parties), Seller assigned, transferred and conveyed to Buyer, as nominee, 2,109,286 shares of common stock of Company and convertible notes of the Company totaling $199,500. The convertible notes were convertible into common stock of the Company at $0.01 per share for a total of 19,950,000 shares of common stock. On the closing of the above transaction, Mr. Alan Donenfeld, the then sole officer of Seller, resigned in all officer capacities from the Company and Yik Kei Ong was appointed interim Chief Executive Officer and Chief Financial Officer of the Company. Immediately following the closing of the transaction, the convertible notes ($199,500 in principal amount) were converted into 19,950,000 shares of common stock of the Company. After giving effect to the above described transaction, the controlling shareholders of the Company are Wooi Huat Teow, Chee Chow Teow and Ee Meng Teow.
On March 9, 2016, the Board of Directors appointed Mr. Chee Chau Ng to the Company’s Board of Directors. In addition, on that same date, the Board of Directors appointed Mr. Ng as its President (Chief Executive Officer), Treasurer (Chief Financial Officer) and Secretary, replacing Mr. Yik Kei Ong who had resigned in all capacities as an officer of the Company on that date. As President of the Company, Mr. Ng will assume the role of Chairman of the Company Board of Directors.
The Company maintains cash balances in a non-interest bearing account that currently does not exceed federally insured limits. For the purpose of the statements of cash flows, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents.
As of April 30, 2016, the Company is an “emerging growth company” under the federal securities laws and will be subject to reduced public company reporting requirements. In addition, Section 107 of the JOBS Act also provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an “emerging growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company is choosing to take advantage of the extended transition period for complying with new or revised accounting standards.
From March 9, 2016 through April 30, 2016, an entity related to the Company’s controlling shareholders has advanced funds totaling $11,697 to the Company to meet its working capital requirements. The advances were unsecured, interest free and due on demand.
Subsequent to April 30, 2016 through the date these financial statements were issued, the entity related to the Company’s controlling shareholders advanced further funds totaling $27,367 to the Company to meet its working capital requirements
In assessing the recovery of the deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the periods in which those temporary differences become deductible. As of April 30, 2016, the Company determined it was more likely than not the deferred tax assets would not be realized and recorded a full valuation allowance.
Effective March 9, 2016 through April 30, 2016, the Company maintained office space in Kuala Lumpor, Malaysia provided by the Company’s controlling shareholder also at no cost to the Company.
Accordingly, for the years ended April 30, 2016 and 2015, the Company recognized no rent expense.
No shares of preferred stock were issued or outstanding during the years ended April 30, 2016 and 2015.
During the year ended April 30, 2015, the Company did not issue any shares of common stock.