FINANCIAL
STATEMENTS
INDEX
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
WORLD
HEALTH ENERGY HOLDINGS, INC.
Condensed
Consolidated Balance Sheet
s
|
|
|
June
30, 2019
|
|
|
December
31
,
2018
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
Deposits
and prepaid expenses
|
|
$
|
23,750
|
|
|
$
|
23,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
current assets
|
|
|
23,750
|
|
|
|
23,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
23,750
|
|
|
$
|
23,000
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
DEFICIENCY IN STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
Accounts payable
and accrued liabilities
|
|
$
|
120,656
|
|
|
$
|
117,548
|
|
|
Due
related parties
|
|
|
277,202
|
|
|
|
266,608
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
current liabilities
|
|
|
397,858
|
|
|
|
384,156
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies (note 12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEFICIENCY IN STOCKHOLDERS’
EQUITY
|
|
|
|
|
|
|
|
|
|
Preferred stock,
par $0.0007, 10,000,000 shares authorized, 2,500,000 shares issued and outstanding
|
|
|
1,750
|
|
|
|
1,750
|
|
|
Common stock, par
$0.0007, 110,000,000,000 shares authorized, 89,789,407,996 shares issued and outstanding
|
|
|
62,852,585
|
|
|
|
62,852,585
|
|
|
Additional paid-in
capital
|
|
|
(37,566,509
|
)
|
|
|
(37,566,509
|
)
|
|
Accumulated
deficit
|
|
|
(25,661,934
|
)
|
|
|
(25,648,982
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total
deficiency in stockholders’ equity
|
|
|
(374,108
|
)
|
|
|
(361,156
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
and Deficiency in Stockholders’ Equity
|
|
$
|
23,750
|
|
|
$
|
23,000
|
|
The
accompanying notes are an integral part of the consolidated financial statements
WORLD
HEALTH ENERGY HOLDINGS, INC.
Condensed
Consolidated Statements of Operations
(unaudited)
|
|
|
For
the three months ended June 30,
|
|
|
For
the six months ended June 30,
|
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General
and administrative expenses
|
|
$
|
4,043
|
|
|
$
|
4,280
|
|
|
$
|
7,762
|
|
|
$
|
7,498
|
|
|
Professional
fees
|
|
|
3,795
|
|
|
|
-
|
|
|
|
5,190
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses
|
|
|
7,838
|
|
|
|
4,280
|
|
|
|
12,952
|
|
|
|
7,498
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
|
(7,838
|
)
|
|
|
(4,280
|
)
|
|
|
(12,952
|
)
|
|
|
(7,498
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income and expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on settlement
of debt
|
|
|
-
|
|
|
|
(443,197
|
)
|
|
|
-
|
|
|
|
(443,197
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other income
and expense
|
|
|
-
|
|
|
|
(443,197
|
)
|
|
|
-
|
|
|
|
(443,197
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss before income taxes
|
|
|
(7,838
|
)
|
|
|
438,917
|
|
|
|
(12,952
|
)
|
|
|
435,699
|
|
|
Income taxes
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(7,838
|
)
|
|
$
|
438,917
|
|
|
$
|
(12,952
|
)
|
|
$
|
435,699
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per weighted average common
share
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of weighted
average common shares outstanding - Basic and Diluted
|
|
|
89,789,407,996
|
|
|
|
89,789,407,996
|
|
|
|
89,789,407,996
|
|
|
|
89,789,407,996
|
|
The
accompanying notes are an integral part of the consolidated financial statements
WORLD
HEALTH ENERGY HOLDINGS, INC.
Condensed
Consolidated Statement of Changes in Deficiency in Stockholders’ Equity
For
the six months ended June 30, 2018
(Unaudited)
|
|
|
Preferred
Stock Number of Shares
|
|
|
Preferred
Stock Par Value
|
|
|
Common
Stock Number of Shares
|
|
|
Common
Stock Par Value
|
|
|
Additional
Paid-in Capital
|
|
|
Accumulated
Deficit
|
|
|
Deficiency
in
Stockholders’
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE,
January 1, 2018
|
|
|
2,500,000
|
|
|
$
|
1,750
|
|
|
|
89,789,407,996
|
|
|
$
|
62,852,585
|
|
|
$
|
(37,566,509
|
)
|
|
$
|
(26,188,082
|
)
|
|
$
|
(900,256
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,218
|
)
|
|
|
(3,218
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE,
March 31, 2018
|
|
|
2,500,000
|
|
|
|
1,750
|
|
|
|
89,789,407,996
|
|
|
|
62852585
|
|
|
|
(37,566,509
|
)
|
|
|
(26,191,300
|
)
|
|
|
(903,474
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
438,917
|
|
|
|
438,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE
,
June 30, 2018
|
|
|
2,500,000
|
|
|
$
|
1,750
|
|
|
|
89,789,407,996
|
|
|
$
|
62,852,585
|
|
|
$
|
(37,566,509
|
)
|
|
$
|
(25,752,383
|
)
|
|
$
|
(464,557
|
)
|
WORLD
HEALTH ENERGY HOLDINGS, INC.
Condensed
Consolidated Statement of Changes in Deficiency in Stockholders’ Equity
For
the three months ended June 30, 2019
(Unaudited)
|
|
|
Preferred
Stock Number of Shares
|
|
|
Preferred
Stock Par Value
|
|
|
Common
Stock Number of Shares
|
|
|
Common
Stock Par Value
|
|
|
Additional
Paid-in Capital
|
|
|
Accumulated
Deficit
|
|
|
Deficiency
in
Stockholders’
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE,
January 1, 2019
|
|
|
2,500,000
|
|
|
$
|
1,750
|
|
|
|
89,789,407,996
|
|
|
$
|
62,852,585
|
|
|
$
|
(37,566,509
|
)
|
|
$
|
(25,648,390
|
)
|
|
$
|
(360,564
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5,114
|
)
|
|
|
(5,114
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE,
March 31, 2019
|
|
|
2,500,000
|
|
|
|
1,750
|
|
|
|
89,789,407,996
|
|
|
|
62852585
|
|
|
|
(37,566,509
|
)
|
|
|
(25,653,504
|
)
|
|
|
(365,678
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(7,838
|
)
|
|
|
(7,838
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE
,
June 30, 2019
|
|
|
2,500,000
|
|
|
$
|
1,750
|
|
|
|
89,789,407,996
|
|
|
$
|
62,852,585
|
|
|
$
|
(37,566,509
|
)
|
|
$
|
(25,661,342
|
)
|
|
$
|
(373,516
|
)
|
The
accompanying notes are an integral part of the consolidated financial statements
WORLD
HEALTH ENERGY HOLDINGS, INC.
Condensed
Consolidated Statements of Cash Flows
Six
months ended June 30,
(unaudited)
|
|
|
2019
|
|
|
2018
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
$
|
(12,952
|
)
|
|
$
|
435,699
|
|
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
|
|
|
|
|
|
|
Gain on settlement of debt
|
|
|
-
|
|
|
|
(443,197
|
)
|
|
Changes in operating assets and liabilities
|
|
|
|
|
|
|
|
|
|
(Increase) in prepaid expense
|
|
|
(750
|
)
|
|
|
(7,500
|
)
|
|
Increase in deposits
|
|
|
-
|
|
|
|
(14,999
|
)
|
|
Increase (decrease) in accounts payable and accrued liabilities
|
|
|
3,108
|
|
|
|
(7,790
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in operating activities
|
|
|
(10,594
|
)
|
|
|
(37,787
|
)
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Proceeds from third party short term loan
|
|
|
10,594
|
|
|
|
37,787
|
|
|
Proceeds from related party advances
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities
|
|
|
10,594
|
|
|
|
37,787
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH,
beginning of year
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH,
end of year
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
|
|
Interest paid in cash
|
|
$
|
-
|
|
|
$
|
-
|
|
|
Income tax paid in cash
|
|
$
|
-
|
|
|
$
|
-
|
|
The
accompanying notes are an integral part of the consolidated financial statements
WORLD
HEALTH ENERGY HOLDINGS, INC.
Notes
to Unaudited Condensed Consolidated Financial Statements
(1)
NATURE OF OPERATIONS
World
Health Energy Holdings, Inc., (the “Company,” or “WHEN”), was formed on May 21, 1986, under the
laws of the State of Delaware and is based in Boca Raton, Florida. The Company has invested in and abandoned a variety of software
programs that it strove to commercialize. It is currently seeking software in the cyber-security arena to commercialize.
(2)
BASIS OF PRESENTATION AND USE OF ESTIMATES
a)
Basis of Presentation
The
comparative amounts presented in these condensed consolidated financial statements are the historical results of World Health
Energy Holdings, Inc., inclusive of its wholly owned subsidiaries World Health Energy, Inc. (“WHEH”) and FSC
Solutions, Inc. (“FSC”). All intercompany balances and transactions have been eliminated in consolidation
The
accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with Generally Accepted
Accounting Principles (“GAAP”) in the United States of America (“U.S.”) as promulgated by the Financial Accounting
Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and with the rules and regulations of the
U.S. Securities and Exchange Commission (“SEC”). In our opinion, the accompanying unaudited interim condensed financial
statements contain all adjustments (which are of a normal recurring nature) necessary for a fair presentation. Operating results
for the six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending
December 31, 2019.
b)
Use of Estimates
The
preparation of financial statements in conformity with accounting principles generally accepted in the United States 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 from these estimates. Significant estimates in the accompanying consolidated financial statements
involved the valuation of common stock issued as compensation and valuation allowance of deferred income tax assets.
(3)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a)
Cash and cash equivalents
The
Company considers all highly liquid securities with original maturities of three months or less when acquired, to be cash equivalents.
We had no financial instruments that qualified as cash equivalents at June 30, 2019 and December 31, 2018.
b)
Related Party Transactions
All
transactions with related parties are in the normal course of operations and are measured at the exchange amount.
WORLD
HEALTH ENERGY HOLDINGS, INC.
Notes
to Unaudited Condensed Consolidated Financial Statements
(3)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
c)
Financial instruments and Fair value measurements
ASC
825-10 “Financial Instruments”, allows entities to voluntarily choose to measure certain financial assets and
liabilities at fair value (fair value option). The fair value option may be elected on an instrument-by-instrument basis and is
irrevocable, unless a new election date occurs. If the fair value option is elected for an instrument, unrealized gains and losses
for that instrument should be reported in earnings at each subsequent reporting date. The Company did not elect to apply the fair
value option to any outstanding instruments. ASC 825 also requires disclosures of the fair value of financial instruments. The
carrying value of the Company’s current financial instruments, which include cash and cash equivalents, accounts
payable and accrued liabilities approximates their fair values because of the short-term maturities of these instruments.
FASB
ASC 820 “Fair Value Measurement” clarifies that fair value is an exit price, representing the amount that would
be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. It also requires
disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and
liabilities must be grouped, based on significant levels of inputs as follows:
Level
1: Quoted prices in active markets for identical assets or liabilities.
Level
2: Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability.
Level
3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
The
determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant
to the fair value measurement.
d)
Income Taxes
The
Company uses the asset and liability method of ASC 740 to account for income taxes. Under this method, deferred income taxes are
determined based on the differences between the tax basis of assets and liabilities and their reported amounts in the consolidated
financial statements which will result in taxable or deductible amounts in future years and are measured using the currently enacted
tax rates and laws. A valuation allowance is provided to reduce net deferred tax assets to the amount that, based on available
evidence, is more likely than not to be realized.
The
Company follows the provisions of ASC 740-10, Accounting for Uncertain Income Tax Positions. When tax returns are filed, it is
highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject
to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. In accordance
with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during
which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon
examination including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated
with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount
of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The
portion of the benefits associated with tax positions taken that exceeds the amount measured as described above should be reflected
as a liability for unrecognized tax benefits in the accompanying consolidated balance sheets along with any associated interest
and penalties that would be payable to the taxing authorities upon examination.
WORLD
HEALTH ENERGY HOLDINGS, INC.
Notes
to Unaudited Condensed Consolidated Financial Statements
(3)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
e)
Net income (loss) per share
Basic
loss per share excludes dilution and is computed by dividing the loss attributable to stockholders by the weighted-average number
of shares outstanding for the period. Diluted loss per share reflects the potential dilution that could occur if securities or
other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock
that shared in the earnings of the Company. Diluted loss per shar is computed by dividing the loss available to stockholders by
the weighted average number of shares outstanding for the period and dilutive potential shares outstanding unless consideration
of such dilutive potential shares would result in anti-dilution. There were no common stock equivalents at June 30, 2019 and December
31, 2018.
f)
Recent accounting pronouncements
In
February 2016, the FASB issued ASU 2016-02, “Leases” which, for operating leases, requires a lessee to recognize
a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet.
The standard also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over
the lease term, on a generally straight-line basis. The ASU is effective for public companies for fiscal years beginning after
December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company believes that
the adoption of ASU 2016-02 will have no effect on the Company’s consolidated financial statements.
(4)
LIQUIDITY AND GOING CONCERN CONSIDERATIONS
Our
financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement
of liabilities and commitments in the normal course of business. The Company sustained a net loss of approximately $12,000 for
the six months ended June 30, 2019 and has an accumulated deficit of approximately $25.7 million and a negative working capital
of approximately $374,000 at June 30, 2019. These conditions raise substantial doubt about our ability to continue as a going
concern.
Failure
to successfully develop operations and revenues could harm our profitability and materially adversely affect our financial condition
and results of operations. We face all of the risks inherent in a new business, including the need for significant additional
capital, management’s potential underestimation of initial and ongoing costs, and potential delays and other problems
in connection with establishing our planned operations.
We
are continuing our plan to further grow and expand restaurant operations and seek sources of capital to pay our contractual obligations
as they come due. Management believes that its current operating strategy will provide the opportunity for us to continue as a
going concern as long as we are able to obtain additional financing; however, there is no assurance this will occur. The accompanying
financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.
The
independent auditors’ report on our consolidated financial statements for the year ended December 31, 2018 contained
an explanatory paragraph expressing substantial doubt as to our ability to continue as a going concern.
WORLD
HEALTH ENERGY HOLDINGS, INC.
Notes
to Unaudited Condensed Consolidated Financial Statements
(5)
DUE TO RELATED PARTIES
Certain
stockholders and officers paid expenses of the Company and were reimbursed finds during the year. The net amount due to related
parties was $277,202 and $266,608 at June 30, 2019 and December 31, 2018, respectively.
(6)
DEFICIENCY IN STOCKHOLDERS’ EQUITY
At
June 30, 2019 and December 31, 2018, the Company has 110,000,000,000 shares of par value $0.0007 common stock authorized and 89,789,407,996
shares issued and outstanding. At June 30, 2019 and December 31, 2018, the Company has 10,000,000 shares of par value $0.0007
preferred stock and 2,500,000 shares issued and outstanding.
(7)
COMMITMENTS AND CONTINGENCIES
a)
Legal Matters
From
time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business.
As of June 30, 2019, there were no pending or threatened lawsuits that could reasonably be expected to have a material
effect on the results of our operations.
(8)
Subsequent Events
a)
Stockholders’ equity
Subsequent
to June 30, 2019, the Company’s Board accepted the return and cancellation of 2,500,000 shares of outstanding Series A Preferred
Stock. The Board also approved the issuance of 5,000,000 shares of Series A Preferred Stock to the current Directors, with
each share of Series A Preferred stock equaling 10,000 votes on all matters submitted to a vote of the holders of the Common Stock.
|
ITEM
2.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
Cautionary Note Regarding Forward-Looking
Information and Factors That May Affect Future Results
This Quarterly Report on Form 10-Q contains
forward-looking statements regarding our business, financial condition, results of operations and prospects. The Securities and
Exchange Commission (the “SEC”) encourages companies to disclose forward-looking information so that investors can
better understand a company’s future prospects and make informed investment decisions. This Quarterly Report on Form 10-Q
and other written and oral statements that we make from time to time contain such forward-looking statements that set out anticipated
results based on management’s plans and assumptions regarding future events or performance. We have tried, wherever possible,
to identify such statements by using words such as “anticipate,” “estimate,” “expect,” “project,”
“intend,” “plan,” “believe,” “will” and similar expressions in connection with
any discussion of future operating or financial performance. In particular, these include statements relating to future actions,
future performance or results of current and anticipated sales efforts, expenses, the outcome of contingencies, such as legal
proceedings, and financial results.
We caution that these factors could cause
our actual results of operations and financial condition to differ materially from those expressed in any forward-looking statements
we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking
statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking
statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated
or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of
such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any
factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
The following discussion should be read in conjunction with our unaudited financial
statements and the related notes that appear elsewhere in this Quarterly Report on Form 10-Q.
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 Energy Inc. (“World Health”) in January of 2007.
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.
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.
Company
Overview
World
Health Energy Holdings, Inc.(“we” “us” “our” the “Company” or “WHEH”
or “WHEN”) was
incorporated on May 21, 1986 in the
state of Delaware. WHEH is a diversified energy, health, and security technology company with corporate offices that are located
in Boca Raton, Florida and Ramat Gan, Israel.
WHEH
is a holding company which owns an algae-tech business and various software technology businesses. The company does not have revenues
yet but is planning on launching its products in the near future. The Company is actively looking and needs to raise capital for
its going concerns until it produces revenues. WHEH’s eventual plan is to spin-off its businesses into subsidiary public
companies. However, there can be no assurance that the foregoing can occur as planner, or at all.
During
the year ended December 31, 2014 up until our July 1, 2015 acquisition of FSC Solutions, Inc. (“FSC”) the Company’s
primary focus was 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. We also sought to produce and market high-quality, low-cost B100 biodiesel.
Though, we believe that 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
including joint ventures and mergers with existing Green Energy organizations.
FSC
Solutions, Inc.
On June 26, 2015, we entered into a Stock Purchase Agreement (the “Agreement”) with FSC and
its shareholders which included Uri Tadelis, our former Chief Executive Officer and Director and our former Directors Chaim J.
Lieberman and Gal Levy. The Agreement was effective as of July 1, 2015 which served as the closing date for the acquisition. Pursuant
to the terms of the Agreement, we acquired all of the capital stock of FSC in exchange for the issuance of 70 billion shares of
our unregistered common stock with the possibility of the issuance of an additional 130 Billion common shares upon FSC meeting
certain milestones as outlined in the Agreement. Upon completion of the acquisition of FSC, we intended to employ FSC’s
software and trading platform to enter the on-line trading industry. Subsequent to the completion of the acquisition, we determined
that FSC did not have control over the trading platform and software we expected to acquire and operate. Consequently, we never
commenced operations of this business and we are in discussions with the non-management sellers of FSC to resolve this issue that
arose after closing and are evaluating our alternatives.
Amid
Financial Centre, Ltd
. On March 13, 2016, FSC entered into a Stock Purchase Agreement (the “Amid Purchase 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. During the first quarter of 2016, an initial deposit of $20,000 was made
as part of the Amid Purchase Agreement. Prior to December 31, 2016, we elected to terminate the Amid Purchase Agreement, and,
as a result the $20,000 deposit was written off as an expense in 2016.
UCG,
Inc
.
On October 23, 2017, the Company entered into definitive agreements (collectively the
“Agreements”) to buy 70% of UCG INC, with each of Gaya Anastasia Rozensweig, one of the Company’s current directors
and Giora Rozensweig, the Company’s current Interim Chief Executive Officer, as JTWRS (jointly “Gaya”), Uri
Tadelis, the Company’s former Chief Executive Officer and a former director (“Uri”) and Chaim Lieberman, a former
Company shareholder and former director (“Chaim;” collectively, the “Shareholders” and each a Shareholder),
pursuant to which the Company agreed to issue to the Shareholders an aggregate of six billion shares (the “Initial Share
Issuance”) of the Company’s common stock, 0.0007 per share (the “Common Stock”), to be allocated equally
among the Shareholders, in exchange for holdings of outstanding shares of UCG Inc., a newly formed Florida corporation
(“UCG”), the outstanding shares of which are held by the Shareholders (in equal measure), representing in the aggregate
70% of the outstanding capital of UCG. UCG is engaged in Software development and following the transaction, it was planned that
UCG was to become a majority owned subsidiary of the Company. Prior to the Agreements being closed or implemented, Chaim Lieberman,
a former Shareholder and Director, passed away and Uri Tadelis, the Company’s former Chief Executive Officer, resigned from
all positions with the Company. Subsequently, all outstanding shares of UCG reverted back to Gaya. As of this date, the Agreements
have not closed but continue to be reviewed and revised. The anticipated closing date is expected prior to year-end 2019. However,
there can be no assurance that the foregoing can occur as planned or at all.
We
are currently exploring our alternatives as it relates to the acquisition of FSC and the development of other technologies and
websites that we control.
Comparison of Operating Results for
the Three and Six Months Ended June 30, 2019 to the Three and Six Months Ended June 30, 2018
Revenues
Revenues for the
three and six month periods ended June 30, 2019 and 2018 were $0.
Operating Expenses
Operating expenses for the three and six month periods ended June 30, 2019 were $7,838 and $12,952 compared
to $4,280 and $7,498 for the three and six month periods ended June 30, 2018.The reason for the increase is due to there being
an increase in the activities of the Company during the period, in particular relating to the consultancy and other professional
fees.
We recorded a
net operating loss for the three and six month periods ended June 30, 2019 of $7,838 and $12,952 compared to $4,280 and $7,498
for the three and six month periods ended June 30, 2018.
Net Income/Loss
and Net Income/Loss Per Share
Our net income(loss)
and net income(loss) per share was ($7,838) and $0.00 and ($12,952) and $0.00 for the three and six month periods ended June
30, 2019, respectively, compared to $438,917 and $0.00 and $435,699 and $0.00 for the three and six month periods ended June
30, 2018, respectively.
Financial Condition,
Liquidity and Capital Resources
At June 30, 2019,
we had current and total assets of $23,750. We had current and total liabilities of $397,858 at June 30, 2019. The decrease is
primarily due to the waiver of related party debt by the estate of our related party that died in February 2018.
At June 30, 2019,
we had a working capital deficiency of $374,108.
We need capital
to sustain operations, and 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 $374,108, and a working capital deficiency of $374,108 at June 30, 2019, and net loss of $12,952 for the
six month period ended June 30, 2019. 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 FASBASC260-10-50,
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 June 30, 2019 or December 31, 2018.
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.
Off-Balance Sheet Arrangements
We
have not entered into any off-balance sheet arrangements during 2019 and do not anticipate entering into any off-balance sheet
arrangements during the next 12 months.
