0001493152-16-010200.txt : 20160523 0001493152-16-010200.hdr.sgml : 20160523 20160523161916 ACCESSION NUMBER: 0001493152-16-010200 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20160331 FILED AS OF DATE: 20160523 DATE AS OF CHANGE: 20160523 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WORLD HEALTH ENERGY HOLDINGS, INC. CENTRAL INDEX KEY: 0000943535 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL ORGANIC CHEMICALS [2860] IRS NUMBER: 592762023 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-30256 FILM NUMBER: 161669253 BUSINESS ADDRESS: STREET 1: 777 S FLAGLER DR., SUITE 800 CITY: WEST PALM BEACH STATE: FL ZIP: 33411 BUSINESS PHONE: (212) 444 1019 MAIL ADDRESS: STREET 1: 777 S FLAGLER DR., SUITE 800 CITY: WEST PALM BEACH STATE: FL ZIP: 33411 FORMER COMPANY: FORMER CONFORMED NAME: ADVANCED PLANT PHARMACEUTICALS INC DATE OF NAME CHANGE: 19990622 10-Q 1 form10-q.htm

 

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

Form 10-Q

 

(Mark One)

 

[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2016

 

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ____________ to ____________

 

Commission file number 000-29462

 

WORLD HEALTH ENERGY HOLDINGS, INC.
(Name of small business issuer in its charter)

 

Delaware   59-2762023

 (State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

511 Avenue of the Americas #705
New York, NY
(Address of principal executive offices)

 

10011
(Zip Code)

 

Issuers telephone number: (212) 884-8395

 

Securities registered pursuant to Section 12(b) of the Exchange Act:
None

 

Securities registered pursuant to Section 12(g) of the Exchange Act:

 

Common Stock, Par Value $0.0007 Per Share

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [  ] No [X]

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes [  ] No [X]

 

Indicate by check mark whether the issuer (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [  ]

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [X]

 

Indicate by check mark whether the registrant is a large accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer [  ] Accelerated filer [  ]
Non-accelerated filer [  ] Smaller reporting company [X]

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes [  ] No [X]

 

As of March 31, 2016, the Registrant had 89,789,407,996 outstanding shares of its common stock, $0.0007 par value.

 

Transitional Small Business Disclosure Format (check one): Yes [  ] No [X]

 

DOCUMENTS INCORPORATED BY REFERENCE

 

None

 

 

 

 
   

 

INDEX

 

PART I. - FINANCIAL INFORMATION  
   
Item 1 Financial Statements 3
   
Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations 12
   
Item 3 Quantitative and Qualitative Disclosures About Market Risk 14
   
Item 4T Controls and Procedures 14
   
PART II. - OTHER INFORMATION  
   
Item 1 Legal Proceedings 14
   
Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 14
   
Item 3 Defaults Upon Senior Securities 14
   
Item 4 Submission of Matters to a Vote of Security Holders 14
   
Item 5 Other Information 14
   
Item 6 Exhibits 15
   
SIGNATURES 16

 

2 
   

 

PART I. - FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

Condensed Consolidated Balance Sheets 4
   
Condensed Consolidated Statements of Operations 5
   
Condensed Consolidated Statements of Cash Flows 6
   
Notes to Condensed Consolidated Financial Statements 7

 

3 
   

 

WORLD HEALTH ENERGY HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

   March 31, 2016   December 31, 2015 
   (Unaudited)     
         
ASSETS          
           
CURRENT ASSETS          
Cash  $2,345   $4,054 
Deposits   23,000    - 
    25,345    4,054 
PROPERTY AND EQUIPMENT          
Furniture, fixtures and equipment   4,353    4,353 
Software   113,774    113,774 
Less: Accumulated depreciation   (4,353)   (4,353)
    113,774    113,774 
           
TOTAL ASSETS  $139,119   $117,828 
           
LIABILITIES AND STOCKHOLDERS’ DEFICIT          
           
CURRENT LIABILITIES          
Accounts payable and accrued liabilities  $82,287   $68,521 
Due to affiliates   684,897    589,090 
Related party convertible note payable   21,474    21,474 
    788,658    679,085 
           
TOTAL LIABILITIES   788,658    679,085 
           
Commitments and Contingencies (Note 8)   -    - 
           
STOCKHOLDERS’ DEFICIT          
Preferred stock, $0.0007 par value, authorized 10,000,000 shares; 2,500,000 issued and outstanding   1,750    1,750 
Common stock, $0.0007 par value, authorized 110,000,000,000 shares; 89,789,407,996 issued and outstanding   62,852,585    62,852,585 
Discount on common stock   (49,000,000)   (49,000,000)
Additional paid in capital   11,433,491    11,433,491 
Accumulated deficit   (25,937,365)   (25,849,083)
    (649,539)   (561,257)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT  $139,119   $117,828 

 

See Accompanying Notes to Condensed Consolidated Financial Statements

 

4 
   

 

WORLD HEALTH ENERGY HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

   For the 3 Months Ended 
   March 31, 2016   March 31, 2015 
   (Unaudited) 
     
REVENUE  $-   $- 
COST OF SALES   -    - 
GROSS MARGIN   -    - 
           
OPERATING EXPENSES          
General and administrative   14,420    8,299 
Professional fees   73,873    15,207 
Total expenses   88,293    23,506 
           
NET OPERATING LOSS   88,293    23,506 
           
OTHER INCOME          
Interest Earned   11    - 
           
NET LOSS  $88,282   $23,506 
           
LOSS PER WEIGHTED AVERAGE COMMON SHARES  $0.00   $0.00 
           
NUMBER OF WEIGHTED AVERAGE COMMON SHARES OUTSTANDING   89,789,407,996    19,789,407,996 

 

See Accompanying Notes to Condensed Consolidated Financial Statements.

 

5 
   

 

WORLD HEALTH ENERGY HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

   For the Three Months Ended 
   March 31, 2016   March 31, 2015 
   (Unaudited) 
         
Cash flows from operating activities:          
           
Net loss  $(88,282)  $(23,506)
           
Changes in:          
Deposits   (3,000)   - 
Accounts payable and accrued liabilities   13,766    (9,201)
           
Net cash from operating activities   (77,516)   (32,707)
           
Cash flows from investing activities:          
Deposits on purchase of AMID   (20,000)   - 
           
Net cash from investing activities   (20,000)   - 
           
Cash flows from financing activities:          
Advances from affiliates   95,807    32,707 
           
Net cash from financing activities   95,807    32,707 
           
Change in cash   (1,709)   - 
           
Cash, beginning of year   4,054    - 
           
Cash, end of year  $2,345   $- 

 

See Accompanying Notes to Condensed Consolidated Financial Statements.

 

6 
   

 

WORLD HEALTH ENERGY HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

(1) Nature of Business

 

The Condensed Consolidated Financial Statements include the accounts of World Health Energy Holdings, Inc. (“WHEH”) and its wholly owned subsidiaries, World Health Energy, Inc. (“WHE”) and FSC Solutions, Inc. (FSC), an online software solutions trading company.

 

WHE’s corporate offices are located in New York City, New York. World Health Energy’s primary focus is the production of algae using their proprietary GB3000 growth system. The system quickly and efficiently grows algae for the production of biofuels and food protein. Though the Company has been successful in demonstrating the effectiveness of the GB3000 system on a small-scale the company has not yet been able to raise the necessary capital to implement their technologies on a commercial scale. The Company continues to pursue all available options for raising the necessary capital in addition to exploring alternative revenue sources.

 

FSC’s financial broker service companies will be www.onlinetrade.trade & www.stocks-4you.com. They will be competing with E Trade, www.etrade.com, and Ameritrade, www.tdamerirade.com.

 

The online software trading Company, www.fsc.trade, is looking to compete in the financial software market and expects to generate revenues in the second half of 2016. The Company will provide cutting edge complete software solutions for financial institutions, banks and traders.

 

(2) Basis of Presentation and Consolidation

 

The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) on the accrual basis of accounting. All significant intercompany accounts and transactions have been eliminated in consolidation. The interim financial statements reflect all adjustments, which are, in the opinion of management, necessary in order to make the financial statements not misleading.

 

(3) Significant Accounting Policies

 

a) Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates.

 

b) Loss per share

 

The Company has adopted Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 260-10-50, Earnings Per Share, which provides for the calculation of “basic” and “diluted” earnings per share. Basic earnings per share includes no dilution and is computed by dividing net income or loss available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity. Basic and diluted losses per share were the same at the reporting dates as there were no common stock equivalents outstanding at March 31, 2016 or December 31, 2015.

 

7 
   

 

c) Cash and Cash Equivalents

 

The Company considers all highly-liquid investments with a maturity of three months or less when purchased to be cash equivalents. There were no cash equivalents as of March 31, 2016 or December 31, 2015.

 

d) Property & Equipment and Depreciation

 

Property and equipment is stated at cost and was depreciated using the straight line method over the estimated useful lives of the respective assets of three years. Routine maintenance, repairs and replacement costs are expensed as incurred and improvements that extend the useful life of the assets are capitalized. When office equipment is sold or otherwise disposed of, the cost and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is recognized in operations. As of March 31, 2016 and December 31, 2015 property and equipment was valued at $118,127 and had depreciation of $4,353. As the software was not yet in operation during the period, no amortization has been applied to the initial cost. Usage of the software began in April, 2016, and amortization will be applied from the second quarter.

 

e) Revenue Recognition

 

The Company recognizes revenue on arrangements in accordance with Securities and Exchange Commission Staff Accounting Bulletin Topic 13, Revenue Recognition and FASB ASC 605-15-25, Revenue Recognition. In all cases, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed and collectability is reasonably assured. The Company did not report any revenues during the three month periods ended March 31, 2016 or 2015.

 

f) Income Taxes

 

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Additionally, the recognition of future tax benefits, such as net operating loss carry forwards, is required to the extent that realization of such benefits is more likely than not. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the assets and liabilities are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date.

 

In the event the future tax consequences of differences between the financial reporting bases and the tax bases of the Company’s assets and liabilities result in deferred tax assets, an evaluation of the probability of being able to realize the future benefits indicated by such asset is required. A valuation allowance is provided for the portion of the deferred tax asset when it is more likely than not that some or all of the deferred tax asset will not be realized. In assessing the realizability of the deferred tax assets, management considers the scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies.

 

The Company’s income tax returns are subject to examination by tax authorities. Generally, the statute of limitations related to the Company’s federal and state income tax return is three years from the date of filing. The state impact of any federal changes for prior years remains subject to examination for a period up to five years after formal notification to the states.

 

Management has evaluated tax positions in accordance with FASB ASC 740, Income Taxes, and has not identified any significant tax positions, other than those disclosed.

 

g) Recently Issued Accounting Pronouncements

 

The Company reviewed all recent accounting pronouncements issued by the Financial Accounting Standards Board (including its Emerging Issues Task Force), the AICPA and the SEC and they did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

 

8 
   

 

h) Subsequent Events

 

In accordance with FASB ASC 855, Subsequent Events, the Company evaluated subsequent events through May 23, 2015, the date the financial statements were available for issue.

 

(4) Going Concern

 

The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company’s financial position and operating results raise substantial doubt about the Company’s ability to continue as a going concern, as reflected by the net losses of $25,937,365 accumulated through March 31, 2016. The condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Management is presently seeking to raise permanent equity capital in the capital markets to eliminate negative working capital and provide working capital. Failure to raise equity capital or secure some other form of long-term debt arrangement will cause the Company to further increase its negative working capital deficit and could result in the Company having to curtail or cease operations. Additionally, even if the Company does raise sufficient capital to support its operating expenses and generate revenues, there can be no assurances that the revenue will be sufficient to enable it to develop business to a level where it will generate profits and cash flows from operations.

 

(5) Income Taxes

 

The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes for the three months ended March 31, 2016 and 2015 are as follows:

 

Income tax at federal statutory rate   (34.00)%
State tax, net of federal effect   (3.96)%
    37.96%
Valuation allowance   (37.96)%
Effective rate   0.00%

 

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

 

As of March 31, 2016 and December 31, 2015, the Company’s only significant deferred income tax asset was a cumulative estimated net tax operating loss of approximately $26 million that is available to offset future taxable income, if any, in future periods, subject to expiration and other limitations imposed by the Internal Revenue Service. Management has considered the Company’s operating losses incurred to date and believes that a full valuation allowance against the deferred tax assets is required as of March 31, 2016 and December 31, 2015.

 

(6) Related Parties

 

As of March 31, 2016 and December 31, 2015, the Company had $0 and $1,623, respectively, included in Due to affiliates in the accompanying condensed consolidated balance sheets that is due to a stockholder. The amount was non-interest bearing and due upon demand.

 

As of March 31, 2016 and December 31, 2015, the Company had $59,157 included in Due to affiliates in the accompanying condensed consolidated balance sheets that is due to a stockholder for amounts paid to certain vendors for services rendered. The amounts are non-interest bearing and due upon demand.

 

As of March 31, 2016 and December 31, 2015, the Company had $211,609 and $177,133, respectively, included in Due to affiliates in the accompanying condensed consolidated balance sheets that is due to a stockholder and consultant of the Company for services rendered as a business advisor and for amounts paid to certain vendors for services rendered. The amounts are non-interest bearing and due upon demand.

 

As of March 31, 2016 and December 31, 2015, the Company had $64,000 included in Due to affiliates in the accompanying condensed consolidated balance sheets that is due to a stockholder and consultant of the Company for services rendered as the previous Chief Executive Officer of the Company. The amounts are non-interest bearing and due upon demand.

 

9 
   

 

As of March 31, 2016 and December 31, 2015, the Company had $117,598 included in Due to affiliates in the accompanying condensed consolidated balance sheets that is due to a stockholder for amounts paid to certain vendors for services rendered. The amount is non-interest bearing and due upon demand.

 

As of March 31, 2016 and December 31, 2015, the Company had $45,504 and $7,027, respectively, included in Due to affiliates in the accompanying condensed consolidated balance sheets that is due to a stockholder and consultant of the Company for amounts paid to certain vendors for services rendered. The amounts are non-interest bearing and due upon demand.

 

As of March 31, 2016 and December 31, 2015, the Company had $31,544 and $7,067, respectively, included in Due to affiliates in the accompanying condensed consolidated balance sheets that is due to a stockholder and consultant of the Company for amounts paid to certain vendors for services rendered. The amounts are non-interest bearing and due upon demand.

 

As of March 31, 2016 and December 31, 2015, the Company had $155,485 included in Due to affiliates in the accompanying condensed consolidated balance sheets that is due to creditors of FSC, a business acquired by the Company during the year (see Note 9). The amounts are non-interest bearing and due upon demand.

 

(7) Convertible Note Payable

 

During 2015, the Company entered into a convertible note payable with a third party for $21,474. The note is non-interest bearing and is convertible to common stock at $0.0001 per share (or the comparable rate following any share split or reverse split) on the conversion date. During 2015 the note holder became the CEO and is now a related party. The note is expected to be converted in the 2nd Quarter of 2016.

 

(8) Commitments & Contingencies

 

During the normal course of business, the Company may be exposed to litigation. In the event the Company were to become aware of potential litigation, it would evaluate the merits of the case in accordance with ASC 450-20-50, Contingencies. The Company evaluates its exposure to the matter, possible legal or settlement strategies and the likelihood of an unfavorable outcome. If the Company determines that an unfavorable outcome is probable and can be reasonably estimated, it establishes the necessary accruals. As of March 31, 2016, the Company is not aware of any contingent liabilities that should be reflected in the accompanying condensed consolidated financial statements.

 

(9) Business Acquisitions

 

On June 26, 2015, WHEH entered into a Stock Purchase Agreement (the “Agreement”) with FSC. FSC is the owner of a proprietary trading platform and accompanying software. The Agreement was effective as of July 1, 2015. Pursuant to the terms of the Agreement, WHEH acquired all of the capital stock of FSC. In consideration, WHEH issued 70 Billion common shares at closing with the possibility of the issuance of an additional 130 billion common shares upon FSC meeting certain milestones as outlined in the Agreement. WHEH intends to employ FSC’s software and trading platform to enter the on-line trading industry. The acquisition was valued at the book value of FSC at the date of acquisition.

 

The following table summarizes the assets acquired and liabilities assumed at the acquisition date:

 

Consideration Cash  $- 
Common Stock in WHEH (70 billion shares at no value)   - 
Contingent Common Stock in WHEH (up to 130 billion shares at no value)   - 
      
Recognized amounts of identifiable financial assets acquired and liabilities assumed     
Financial Assets including cash at bank  $41,711 
Software   113,774 
Liabilities including due to affiliates   (155,485)
TOTAL identifiable net liabilities   - 
Acquisition-related costs (included in selling, general and administrative expenses in WHEH’s income statement for the period ending September 30, 2015  $1,500 

 

10 
   

 

(10) Subsequent Events

 

On March 13, 2016, FSC entered into a Stock Purchase Agreement (the “Agreement”) with Natalie Stock, Ltd. for the purchase of all of the outstanding shares of Amid Financial Centre, Ltd. (“Amid”), a Mauritius Company that operates as a broker-dealer.

 

Pursuant to the terms of the Agreement, FSC will acquire all of the capital stock of FSC. In consideration, WHEH will pay cash and other consideration to Natalie Stock, Ltd. WHEH intends to integrate FSC’s software and trading platform and Amid’s broker-dealer operations.

 

The Agreement contains customary representations, warranties and covenants by Natalie and FSC. The Closing of the Agreement is subject to customary closing conditions.

 

Eli Gal Levy, a director of WHEH and FSC, is the owner of Natalie Stock, Ltd.

 

During the first quarter of 2016, an initial deposit of $20,000 was made as part of the agreement.

 

11 
   

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

The following discussion and analysis should be read in conjunction with our Financial Statements and Notes thereto appearing elsewhere in this Report on Form 10-Q as well as our other SEC filings.

 

Overview

 

The following discussion and analysis should be read in conjunction with the Condensed Consolidated Financial Statements of the Company and the accompanying notes appearing subsequently under the caption “Condensed Consolidated Financial Statements.”

 

This report on Form 10-Q contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements and from historical results of operations. Among the risks and uncertainties which could cause such a difference are those relating to our dependence upon certain key personnel, our ability to manage our growth, our success in implementing the business strategy, our success in arranging financing where required, and the risk of economic and market factors affecting us or our customers. Many of such risk factors are beyond the control of the Company and its management.

 

Management has not been satisfied with the results of its operations in the field of our current endeavors. Due to limited capital resources, it has not been able to properly promote or advertise its products. Moreover, even with increased brand awareness, competition in the field remains intense. As a result the Company is pursuing other business opportunities and has acquired all of the issued and outstanding shares of common stock of World Health. Assuming the Company can raise sufficient finances, the Company will focus its attention on the operations on World Health. In the interim, it will continue with its current operations.

 

Comparison of Operating Results for the Quarter Ended March 31, 2016 to the Quarter Ended March 31, 2015

 

Revenues

 

Revenues for the three month periods ended March 31, 2016 and 2015 were $0. The income during the current year relates to interest earned on savings in the Company bank account.

 

12 
   

 

Operating Expenses

 

Operating expenses for the three month period ended March 31, 2016 were $88,293 compared to $23,506 for the three month period ended March 31, 2015. The reason for the increase is due to there being an increase in consultancy and other professional fees relating to the development of software crucial to the business.

 

We recorded a net operating loss for the three month period ended March 31, 2016 of $88,293 compared to $23,506 for the three month period ended March 31, 2015.

 

Net Income/Loss and Net Income/Loss Per Share

 

Our net loss and net loss per share was $88,282 and $0.00 for the three month period ended March 31, 2016, compared to a $23,506 and $0.00 per share for the three month period ended March 31, 2015.

 

Financial Condition, Liquidity and Capital Resources

 

At March 31, 2016 and December 31, 2015, we had current assets of $25,345 and $4,054, respectively, and total assets of $139,119 and $117,828, respectively. The increase is due to the initial deposit on the Agreement with Natalie Stock, Ltd. for the purchase of all of the outstanding shares of Amid. We had current and total liabilities of $788,658 as compared to $679,085, as of March 31, 2016 and December 31, 2015, respectively. The increase is primarily due to shareholder advances used to fund operations.

 

At March 31, 2016, we had a working capital deficiency of $763,313 as compared with a working capital deficiency of $675,031 at December 31, 2015.

 

If we need to obtain capital, no assurance can be given that we will be able to obtain this capital on acceptable terms, if at all. In such an event, this may have a materially adverse effect on our business, operating results and financial condition. If the need arises, we may attempt to obtain funding through the use of various types of short term funding, loans or working capital financing arrangements from banks or financial institutions.

 

Going Concern

 

The accompanying Condensed Consolidated Financial Statements have been prepared assuming that we will continue as a going concern. We have stockholders deficit of $649,539 and a working capital deficiency of $763,313 at March 31, 2016 and net loss from operations of $88,282 for the three month period ended March 31, 2016. These conditions raise substantial doubt about our ability to continue as a going concern. The Condensed Consolidated Financial Statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.

 

Critical Accounting Policies

 

Use of Estimates The Condensed Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). In preparing the Condensed Consolidated Financial Statements, management is required to make estimates and assumptions that affect the reported amounts on the condensed consolidated balance sheets and condensed consolidated statements of operations for the year then ended. Actual results may differ significantly from those estimates.

 

Net loss per share The Company has adopted FASB ASC 260-10-50, Earnings Per Share, which provides for calculation of “basic” and “diluted” earnings per share. Basic earnings per share includes no dilution and is computed by dividing net income or loss available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity. Basic and diluted losses per share were the same at the reporting dates as there were no common stock equivalents outstanding at March 31, 2016 or December 31, 2015.

 

Fair value of financial instruments The carrying values of the Company’s liabilities approximate their fair values due to the short maturity of these instruments.

 

13 
   

 

Off-Balance Sheet Arrangements We have not entered into any off-balance sheet arrangements during 2016 and do not anticipate entering into any off-balance sheet arrangements during the next 12 months.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

The Company is not subject to any specific market risk other than that encountered by any other public company related to being publicly traded.

 

ITEM 4T. CONTROLS AND PROCEDURES

 

As required by Rule 13a-15 under the Exchange Act, within the 90 days prior to the filing date of this report, the Company carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures. This evaluation was carried out under the supervision and with the participation of the Company’s management, including the Company’s President, Chief Executive Officer and Chief Financial Officer. Based upon that evaluation, the Company’s President, Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures are effective. There have been no significant changes in the Company’s internal controls or in other factors, which could significantly affect internal controls subsequent to the date the Company carried out its evaluation.

 

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in Company reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in Company reports filed under the Exchange Act is accumulated and communicated to management, including the Company’s Chief Executive Officer and Chief Financial Officer as appropriate, to allow timely decisions regarding required disclosure.

 

PART II - OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

None

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

None

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None

 

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

 

None

 

ITEM 5. OTHER INFORMATION

 

None

 

14 
   

 

ITEM 6. EXHIBITS

 

(a)The following sets forth those exhibits filed pursuant to Item 601 of Regulation S-K:

 

Exhibit   Number Descriptions
     
31.1   * Certification of the Chief Executive Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002.
     
31.2   * Certification of the Acting Chief Financial Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002.
     
32.1   * Certification Chief Executive Officer pursuant to Section 906 of Sarbanes-Oxley Act of 2002.
     
32.2    * Certification Acting Chief Financial Officer pursuant to Section 906 of Sarbanes-Oxley Act of 2002.
     
32.3    * Agreement with Natalie Stock for the purchase of all of the outstanding shares of Amid

 

 

 

* Filed herewith.

 

(b) The following sets forth the Company’s reports on Form 8-K that have been filed during the quarter for which this report is filed:

 

None

 

15 
   

 

SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

  World Health Energy Holdings, Inc.
     
Date: May 23, 2016 By: /s/ Uri Tadelis
    Uri Tadelis,
    CEO, Director

 

16 
   
EX-31.1 2 ex31-1.htm

 

EXHIBIT 31.1

 

OFFICER’S CERTIFICATION PURSUANT TO SECTION 302 OF SARBANES OXLEY ACT

 

I, Uri Tadelis, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q for the period ended March 31, 2016 of World Health Energy Holdings, Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;

 

4. The small business issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:

 

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c) Evaluated the effectiveness of the small business issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d) Disclosed in this report any change in the small business issuer’s internal control over financial reporting that occurred during the small business issuer’s most recent fiscal quarter (the small business issuer’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer’s internal control over financial reporting; and

 

5. The small business issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer’s auditors and the audit committee of the small business issuer’s board of directors (or persons performing the equivalent functions):

 

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer’s ability to record, process, summarize and report financial information; and

 

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer’s internal control over financial reporting.

 

Date: May 23, 2016 By: /s/ Uri Tadelis
    Uri Tadelis
    CEO

 

   
   

 

 

EX-31.2 3 ex31-2.htm

 

EXHIBIT 31.2

 

OFFICER’S CERTIFICATION PURSUANT TO SECTION 302 OF SARBANES OXLEY ACT

 

I, Chaim Lieberman, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of World Health Energy Holdings, Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;

 

4. The small business issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:

 

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c) Evaluated the effectiveness of the small business issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d) Disclosed in this report any change in the small business issuer’s internal control over financial reporting that occurred during the small business issuer’s most recent fiscal quarter (the small business issuer’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer’s internal control over financial reporting; and

 

5. The small business issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer’s auditors and the audit committee of the small business issuer’s board of directors (or persons performing the equivalent functions):

 

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer’s ability to record, process, summarize and report financial information; and

 

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer’s internal control over financial reporting.

 

Date: May 23, 2016 By: /s/ Chaim Lieberman
   

Chaim Lieberman

    Director

 

   
   

 

EX-32.1 4 ex32-1.htm

 

EXHIBIT 32.1

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION
906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of World Health Energy Holdings, Inc., (the “Company”) on Form 10-Q for the period ended March 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned, in the capacities and on the dates indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

 

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

 

Date: May 23, 2016 By: /s/ Uri Tadelis
    Uri Tadelis
    CEO

  

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

   
   

 

 

EX-32.2 5 ex32-2.htm

 

EXHIBIT 32.2

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION
906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of World Health Energy Holdings, Inc., (the “Company”) on Form 10-Q for the period ended March 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned, in the capacities and on the dates indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

 

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

 

Date: May 23, 2016 By: /s/ Chaim Lieberman
   

Chaim Lieberman

    Director

 

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

   
   

 

EX-32.3 6 ex32-3.htm

 

STOCK PURCHASE AGREEMENT

 

THIS AGREEMENT (the “Agreement”) is made and entered into this 10 day of March, 2016, by and between FSC SOLUTIONS INC. (“Purchaser”) and Natalie Stock LTD (“Seller”), also hereinafter collectively referred to as the “Parties”;

 

WHEREAS, the Seller is the record owner and holder of all of the shares of AMID Financial Centre LTD, a Mauritius company (the “Corporation”), and

 

WHEREAS, the Purchaser desires to purchase all of the Seller’s stock of the Corporation, and the Seller desires to sell or cause to be sold all of his stock, upon the terms and subject to the conditions hereinafter set forth;

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement, and in order to consummate the purchase and the sale of the Seller’s stock aforementioned, it is hereby agreed as follows:

 

1. PURCHASE AND SALE.

 

a. Purchase and Sale of Corporation’s Stock. Subject to the terms and conditions hereinafter set forth, upon the payment of the following sums:

 

  1. $20,000 upon the signing of the Agreement; and
     
  2. $35,000 by April 15, 2016; and,

 

the Seller shall sell, convey and transfer, or cause to be sold, conveyed or transferred, Seller’s Stock and deliver to the Purchaser certificates representing such stock, and the Purchaser shall purchase from the Sellers the Corporation’s Stock in consideration of such sum. The certificates representing the Corporation’s Stock shall be duly endorsed for transfer or accompanied by appropriate stock transfer powers duly executed in blank, in either case with signatures guaranteed in the customary fashion.

 

b. Other Payments. The Purchaser is required to make the following additional payments:

 

  1. $10,000 by July 15, 2016.
     
  2. $10,000 by August 15, 2016.
     
  3. $10,000 by September 15, 2016.
     
  4. $20,000 by October 15, 2016.
     
  5. $10,000 by November 15, 2016.
     
  6. $20,000 by December 15, 2016.
     
  7. $10,000 by January 15, 2016.
     
  8. $10,000 by February 15, 2016.

 

 

 

  
 

 

Failure to make any of the above payments shall cause Purchaser to forfeit and transfer to the Seller the Stock transferred under the terms of the Agreement. Failure to make payments is defined as not transferring the funds due within 15 days of the dates above.

 

2. OTHER CONDITIONS TO CLOSING.

 

Buyer agrees that as an integral part of this Agreement:

 

  a. Purchaser will transfer funds to Seller to cover the cash balance on the date of closing in the clearing account of the corporation; and, the Centre account
     
  b. Purchaser will pay the clearing fees charged to the Corporation from the date of closing the Agreement.
     
  c. Purchaser will transfer funds to Amid clearing account to cover the minimum clearing fee at Vision Clearing for 2016, 3 payments of $7500, as follows:

 

  1. $7,500 by May 15,2016.
     
  2. $7,500 by June 15, 2016.
     
  3. $7,500 by July 15, 2016.

 

If Mr. Levy prefers it will be paid to Gal Levy, and then that amount in Amid clearing Account will transfer ownership to FSC SOLUTIONS INC.; example if $15,000 is transferred to Gal Levy then $15,000 from the $100,000 deposit will belong to FSC SOLUTIONS INC.

 

  d. Purchaser will assume all responsibilities of the Corporation, including Anti-Money Laundering (AML) obligations, upon the date of closing the Agreement.
     
  e. Purchaser will transfer funds to Seller to cover the $100,000 cash balance in the AMID Financial Centre account at Vision clearing within 5 months of the close of the Agreement.

 

Until such time as $100,000 has been transferred, Mr. Gal Levy will continue to be the sole signatory on AMID Financial Centre account for at Vision Clearing. No application, by Purchaser or anyone else, will be sent to Vision Clearing to add or change a signatory to this account until the $100,000 has been paid to Seller or transferred from AMID Financial Centers account at Vision Clearing to Seller.

 

 

 

  
 

 

3. REPRESENTATIONS AND WARRANTIES OF SELLER.

 

Seller hereby warrants and represents:

 

a. Organization and Standing. Corporation is a corporation duly organized, validly existing and in good standing under the laws of Mauritius and has the corporate power and authority to carry on its business as it is now being conducted.

 

b. Capitalization. The authorized capital stock of the Corporation consists of 100,000 shares of common stock.

 

c. Restrictions on Stock.

 

i. Neither the Corporation nor the Seller are a party to any agreement, written or oral, creating rights in respect to the Corporation’s Stock in any third person or relating to the voting of the Corporation’s Stock.

 

ii. Seller is the lawful owner of 100% the Corporation’s Stock, free and clear of all security interests, liens, encumbrances, equities and other charges.

 

iii. There are no existing warrants, options, stock purchase agreements, redemption agreements, restrictions of any nature, calls or rights to subscribe of any character relating to the capital stock of the Corporation, nor are there any securities convertible into such stock.

 

d. Authority Relative to this Agreement. Seller has full power and authority to execute this Agreement. The execution, delivery and performance of this Agreement by the Sellers will not:

 

i. constitute a breach or a violation of the Corporation’s Certificate of Incorporation, By- Laws, or of any law, agreement, indenture, deed of trust, mortgage, loan agreement or other instrument to which it is a party, or by which it is bound;

 

ii. constitute a violation of any order, judgment or decree to which it is a party or by which its assets or properties are bound or affected; or

 

iii. result in the creation of any lien, charge or encumbrance upon its assets or properties, except as stated herein.

 

e. Litigation. The Corporation is not a party to any litigation, proceeding or administrative investigation and to the best knowledge of the Sellers none is pending against the Corporation or its properties.

 

f. Compliance with Applicable Laws. None of the Corporation’s actions are prohibited by or have violated or will violate any law in effect on the date of this Agreement or on the date of closing. None of the actions of the Corporation shall conflict with or result in any breach of any of the provisions of, or constitute a default under, or result in the creation of any lien, security interest, charge or encumbrance upon the capital stock of the Corporation, or upon any of the assets of the Corporation, under the provisions of the Certificate of Incorporation or Bylaws or any indenture, mortgage, lease, loan agreement or other agreement to which the Corporation and/or the Seller is a party or by which the capital stock or properties and assets of the Corporation are bound to effect it.

 

 

 

  
 

 

4. REPRESENTATIONS AND WARRANTIES OF PURCHASER.

 

Purchaser hereby warrants and represents:

 

a. Organization and Standing. Purchaser is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has the corporate power and authority to carry on its business as it is now being conducted.

 

b. Authority Relative to this Agreement. Except as otherwise stated herein, the Purchaser has full power and authority to execute this Agreement and carry out the transactions contemplated by it and no further action is necessary by the Seller to make this Agreement valid and binding upon Purchaser in accordance with the terms hereof, or to carry out the actions contemplated hereby. The execution, delivery and performance of this Agreement by the Purchaser will not:

 

i. constitute a breach or a violation of the Purchaser’s Certificate of Incorporation, By- Laws, or of any law, agreement, indenture, deed of trust, mortgage, loan agreement or other instrument to which it is a party, or by which it is bound;

 

ii. constitute a violation of any order, judgment or decree to which it is a party or by which its assets or properties are bound or affected; or

 

iii. result in the creation of any lien, charge or encumbrance upon its assets or properties, except as stated herein.

 

c. Compliance with Applicable Laws. None of the Purchaser’s actions are prohibited by or have violated or will violate any law in effect on the date of this Agreement or on the date of closing. None of the actions of the Purchaser shall conflict with or result in any breach of any of the provisions of, or constitute a default under, or result in the creation of any lien, security interest, charge or encumbrance upon the capital stock of the Purchaser, or upon any of the assets of the Purchaser, under the provisions of the Certificate of Incorporation or Bylaws or any indenture, mortgage, lease, loan agreement or other agreement to which the Corporation and/or the Purchaser is a party or by which the capital stock or properties and assets of the Corporation are bound to effect it.

 

 

 

  
 

 

5. GENERAL.

 

a. Waivers. No action taken pursuant to this Agreement, including any investigation by or on behalf of any party shall be deemed to constitute a waiver by the party taking such action or compliance with any representation, warranty, covenant or agreement contained herein, therein and in any documents delivered in connection herewith or therewith. The waiver by any party hereto of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach.

 

b. Notices. All notices, requests, demands and other communications which are required or may be given under this Agreement shall be in writing and shall be deemed to have been duly given if delivered or mailed, first class mail, postage prepaid:

 

To Seller: Gal Levy

 

To Purchaser: Chaim Lieberman, FSC Solutions Inc.

 

or to such other address as such party shall have specified by notice in writing to the other party.

 

c. Entire Agreement. This Agreement (including the exhibits hereto and all documents and papers delivered by Seller pursuant hereto and any written amendments hereof executed by the parties hereto) constitutes the entire Agreement and supersedes all prior agreements and understandings, oral and written, between the parties hereto with respect to the subject matter hereof.

 

d. Sections and Other Headings. The section and other headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

 

e. Governing Law. This Agreement hall be governed by, construed and enforced in accordance with the laws of the State of Delaware.

 

IN WITNESS WHEREOF, this Agreement has been executed by each of the individual parties hereto all on the date first above written.

 

Signed  
   
/s/ Gal Lavy  
Gal Lavy, AMID  
   
/s/ Chaim Lieberman  
Chaim Lieberman, FSC SOLUTIONS INC.  

 

  
 

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