Item 1. Financial Statements (Unaudited)
GLOBAL WHOLEHEALTH PARTNERS CORPORATION
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CONSOLIDATED BALANCE SHEETS
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December 31,
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June 30,
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2019
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2019
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(Unaudited)
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ASSETS
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Current assets:
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Cash
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$
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97
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$
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19,918
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Inventory
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23,372
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—
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Total current assets
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23,469
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19,918
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Total assets
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$
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23,469
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$
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19,918
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LIABILITIES AND STOCKHOLDERS' DEFICIT
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Current liabilities:
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Related party advances
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$
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52,175
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$
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—
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Accounts payable and accrued liabilities
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1,372
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100
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Total current liabilities
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53,547
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100
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Total liabilities
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53,547
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100
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Commitments and contingencies
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Stockholders' equity (deficit):
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Preferred stock; $0.001 par value, 10,000,000 shares authorized, no shares issued or outstanding at December 31, 2019 and June 30, 2019, respectively
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—
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—
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Common stock; $0.001 par value, 400,000,000 shares authorized, 58,116,358 and 56,116,358 shares issued and outstanding at December 31, 2019 and June 30, 2019, respectively
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58,116
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56,116
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Additional paid-in capital
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444,784
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426,784
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Retained deficit
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(532,978
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)
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(463,082
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)
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Total stockholders' equity
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(30,078
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)
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19,818
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Total liabilities and stockholders' equity
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$
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23,469
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$
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19,918
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(See accompanying notes to consolidated financial statements)
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GLOBAL WHOLEHEALTH PARTNERS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
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FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2019 AND 2018
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Three Months Ended
December 31,
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Six Months Ended
December 31,
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2019
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2018
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2019
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2018
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Revenue
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$
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—
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$
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—
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$
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—
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$
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—
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Operating expense
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Professional fees
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21,400
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—
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35,900
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—
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Selling, general and administrative
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29,698
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300
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33,996
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600
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Total operating expense
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51,098
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300
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69,896
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600
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Loss from operations
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(51,098
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)
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(300
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)
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(69,896
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)
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(600
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Other income
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Gain on forgiveness of liabilities
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—
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—
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—
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—
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Net loss
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$
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(51,098
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)
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$
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(300
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)
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$
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(69,896
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)
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$
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(600
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)
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Basic and Diluted Loss per Common Share
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$
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(0.00
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)
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$
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(0.01
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)
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$
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(0.00
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)
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$
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(0.01
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)
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Weighted average number of common shares outstanding - basic and diluted
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57,804,029
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52,358
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56,960,194
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52,358
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(See accompanying notes to consolidated financial statements)
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GLOBAL WHOLEHEALTH PARTNERS CORPORATION
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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (UNAUDITED)
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FOR THE SIX MONTHS ENDED DECEMBER 31, 2019
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Common
Stock
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Additional
Paid-in
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Retained
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Total
Stockholders’
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Shares
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Amount
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Capital
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Deficit
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Deficit
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BALANCE JULY 1, 2019
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56,116,358
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$
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56,116
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$
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426,784
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$
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(463,082
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)
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$
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19,818
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Net loss for the three months ended September 30, 2019
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—
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—
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—
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(18,798
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)
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(18,798
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Balance, September 30, 2019
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56,116,358
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56,116
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426,784
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(481,880
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)
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1,020
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Common stock issued to related party for cash at $0.01 per share
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2,000,000
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2,000
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18,000
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—
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20,000
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Net loss for the three months ended December 31, 2019
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—
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—
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—
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(51,098
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)
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(51,098
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)
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Balance, December 31, 2019
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58,116,358
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$
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58,116
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$
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444,784
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$
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(532,978
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)
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$
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(30,078
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)
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FOR THE SIX MONTHS ENDED DECEMBER 31, 2018
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BALANCE JULY 1, 2018
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52,358
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$
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52
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$
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430,748
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$
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(432,215
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)
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$
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(1,415
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)
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Net loss for the three months ended September 30, 2018
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—
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—
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—
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(300
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)
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(300
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)
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Balance, September 30, 2018
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52,358
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52
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430,748
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(432,515
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)
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(1,715
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)
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Net loss for the three months ended December 31, 2018
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—
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—
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—
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(300
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)
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(300
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)
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Balance, December 31, 2018
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52,358
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$
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52
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$
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430,748
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$
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(432,815
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)
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$
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(2,015
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)
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(See accompanying notes to consolidated financial statements)
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GLOBAL WHOLEHEALTH PARTNERS CORPORATION
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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
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FOR THE SIX MONTHS ENDED DECEMBER 31, 2019 AND 2018
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Six Months Ended December 31,
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2019
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2018
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Cash flows from operating activities
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Net loss
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$
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(69,896
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)
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$
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(600
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)
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Adjustments to reconcile net loss to net cash flows used in operating activities:
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Common stock issued for services
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—
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—
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Common stock issued for debt settlement
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—
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—
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Changes in operating assets and liabilities:
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(Increase) decrease in inventory
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(23,372
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)
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—
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Increase (decrease) in related party advances
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52,175
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—
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Increase (decrease) in accounts payable and accrued expenses
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1,272
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600
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Net cash flows from operating activities
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(39,821
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)
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—
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Cash flows from financing activities
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Cash for common shares of stock
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20,000
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Net cash flows from financing activities
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20,000
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—
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Change in cash
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(19,821
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)
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—
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Cash at beginning of period
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19,918
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|
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—
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Cash at end of period
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$
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97
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$
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—
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Supplemental disclosure of cash flow information:
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Interest paid in cash
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$
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—
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$
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—
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Income taxes paid in cash
|
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$
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—
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$
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—
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(See accompanying notes to consolidated financial statements)
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GLOBAL WHOLEHEALTH PARTNERS CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED DECEMBER
31, 2019 AND 2018
NOTE 1 – Basis of Presentation,
Organization and Going Concern
Basis of Presentation
The accompanying unaudited interim condensed
consolidated financial statements of Global WholeHealth Partners Corporation and Subsidiary (the “Company”) as of
December 31, 2019, and for the three and six months ended December 31, 2019 and 2018, include the accounts of the Company and
its wholly-owned and controlled subsidiary, Global WholeHealth Partners Corp, a private Wyoming corporation, and have been prepared
in accordance with generally accepted accounting principles in the United States of America (“US GAAP”), for interim
financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Certain information or footnote
disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted.
The preparation of consolidated financial
statements in conformity with U.S. GAAP 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 consolidated financial statements,
and the reported amounts of expenses during the reporting periods. Actual results may differ from those estimates. The interim
financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s
Annual Report on Form 10 for the year ended June 30, 2019. In the opinion of management, the accompanying unaudited interim
condensed consolidated financial statements have been prepared on the same basis as the audited financial statements and include
all adjustments (including normal recurring adjustments) necessary for the fair presentation of the Company’s financial
position as of December 31, 2019, results of operations for the three and six months ended December 31, 2019 and 2018, and stockholders’
equity and cash flows for the three and six months ended December 31, 2019 and 2018. The Company did not record an income tax
provision during the periods presented due to net taxable losses. The results of operations for any interim period are not necessarily
indicative of the results of operations for the entire year.
Organization
Global WholeHealth Partners Corporation was
incorporated on March 7, 2013 in the State of Nevada under the name Texas Jack Oil and Gas Corp. On May 9, 2019, the Company amended
its Articles of Incorporation to effect a change of name to Global WholeHealth Partners Corporation to align the company name with
its focus on health care related development and products. The Company’s ticker symbol changed to GWHP.
The Company was originally organized for the
purpose of exploration of Oil and Gas. However, the Company was unable to establish an oil and gas concern and was abandoned in
2016. On February 27, 2019, the Clark County District Court of Nevada appointed Barbara Bauman as custodian to the Company. The
custodian reestablished the Company in good standing.
On May 9, 2019, the Board reverse split (1-for-500)
the outstanding Common Shares of 58,172,000 to 116,358 shares.
May 23, 2019, the Company and LionsGate Funding
Group LLC (“LionsGate”), owner of a majority of the Company’s outstanding common stock as of May 23, 2019, entered
into a Stock Sale and Purchase Agreement (the “SPA”) which closed on June 27, 2019. Pursuant the SPA, the Company
issued 56,000,000 shares of common stock to LionsGate in exchange for 100% of their interests in Global WholeHealth Partners Corp.,
a private Wyoming corporation incorporated on April 9, 2019 (“Global Private”). Global Private has contacts with suppliers
and contract manufacturers in the In vitro diagnostic industry, with rights to sell rapid diagnostic tests, such as the following
6 minute rapid whole blood Ebola Test, 6 minute whole blood Zika test, 8 minute whole blood rapid TB test and 75 plus other tests
more than 40 which are FDA approved. Due to the common control of the Company and Global Private, pursuant to ASC 805-50-25, “Transactions
Between Entities Under Common Control”, the SPA was accounted for as a transfer of the carrying amounts of assets and liabilities
under the predecessor value method of accounting. Financial statement presentation under the predecessor values method of accounting
as a result of a business combination between entities under common control requires the receiving entity (i.e., the Company)
to report the results of operations as if both entities had been combined as of the beginning of the periods presented. The consolidated
financial statements include both entities’ full results since the inception of Global Private.
Going Concern
The Company’s consolidated financial
statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern
which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not
yet established an ongoing source of revenues sufficient to cover its operating costs to allow it to continue as a going concern.
As of December 31, 2019, the Company had an accumulated deficit of $532,978. The ability of the Company to continue as a going
concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company
is unable to obtain adequate capital, it could be forced to cease operations.
In view of these conditions, the ability of
the Company to continue as a going concern is in doubt and dependent upon achieving a profitable level of operations and on the
ability of the Company to obtain necessary financing to fund ongoing operations. Historically, the Company has relied upon internally
generated funds, and funds from the sale of stock, issuance of promissory notes and loans from its shareholders and private investors
to finance its operations and growth. Management is planning to raise necessary additional funds for working capital through loans
and/or additional sales of its common stock. However, there is no assurance that the Company will be successful in raising additional
capital or that such additional funds will be available on acceptable terms, if at all. Should the Company be unable to raise this
amount of capital its operating plans will be limited to the amount of capital that it can access. These consolidated financial
statements do not give effect to any adjustments which will be necessary should the Company be unable to continue as a going concern
and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at
amounts different from those reflected in the accompanying consolidated financial statements.
NOTE 2 – Summary of Significant
Accounting Policies
Principles of Consolidation
Global WholeHealth Partners Corp, a private
Wyoming corporation was incorporated on April 9, 2019 to receive private investor funds and aggregate certain in vitro diagnostic
assets.
These consolidated financial statements presented
are those of Global WholeHealth Partners Corporation and its wholly owned subsidiary, Global Private. All significant intercompany
balances and transactions have been eliminated.
Accounting estimates
The preparation of consolidated financial statements
in conformity with U.S. generally accepted accounting principles (“GAAP”) 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual
results could differ significantly from those estimates.
Cash and cash equivalents
The Company considers all highly liquid instruments
purchased with an original maturity of three months or less and money market accounts to be cash equivalents.
Income Taxes
The Company accounts for income taxes
using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are
recognized for the future tax consequences attributed to differences between the financial statement carrying amounts of
existing assets and liabilities and their respective tax bases and tax credits and loss carry-forwards. Deferred tax assets
and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those
temporary differences and carry-forwards 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 in the period that includes the enactment date. A valuation
allowance is established when necessary to reduce deferred tax assets to amounts expected to be realized. The Company reports
a liability for unrecognized tax benefits resulting from uncertain income tax positions, if any, taken or expected to be
taken in an income tax return. Estimated interest and penalties are recorded as a component of interest expense or other
expense, respectively.
Fair Value Measurements
Fair value is defined as the price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. The Company utilizes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy
gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement)
and the lowest priority to unobservable inputs (level 3 measurements). These tiers include:
Level 1, defined as observable
inputs such as quoted prices for identical instruments in active markets;
Level 2, defined as inputs other
than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments
in active markets or quoted prices for identical or similar instruments in markets that are not active; and
Level 3, defined as unobservable
inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations
derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
During the periods covered by this
report, the Company did not have any assets or liabilities that were required to be measured at fair value on a recurring basis
or on a non-recurring basis.
Fair Value of Financial Instruments
The Company’s financial instruments consist
of cash, accounts payable and accrued expenses. The carrying amounts of the Company’s financial instruments approximate fair
value because of the short term maturity of these items. These fair value estimates are subjective in nature and involve uncertainties
and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly
affect those estimates. We do not hold or issue financial instruments for trading purposes, nor do we utilize derivative instruments.
Net Income (Loss) Per Share
The computation of basic earnings per share
(“EPS”) is based on the weighted average number of shares that were outstanding during the period, including shares
of common stock that are issuable at the end of the reporting period. The computation of diluted EPS is based on the number of
basic weighted-average shares outstanding plus the number of common shares that would be issued assuming the exercise of all potentially
dilutive common shares outstanding using the treasury stock method. The Company had no potentially dilutive securities as of December
31, 2019.
New Accounting Pronouncements
Any reference in these notes to applicable
accounting guidance is meant to refer to the authoritative non-governmental US GAAP as found in the Financial Accounting Standards
Board's Accounting Standards Codification.
We review new accounting standards as
issued. Although some of these accounting standards issued or effective after the end of our previous fiscal year may be
applicable to us, we have not identified any standards that we believe merit discussion. We believe that none of the new
standards will have a significant impact on our consolidated financial statements.
NOTE 3 – Stockholder’s
Equity
Preferred Stock
The Company has Preferred stock: $0.001 par
value; 10,000,000 shares authorized with no shares issued and outstanding.
Common Stock
The Company has 400,000,000 shares of Common
Stock authorized of which 58,116,358 and 56,116,358 shares were issued and outstanding as of December 31, 2019 and June 30, 2019,
respectively. The number of shares increased by 2,000,000 as a result of the Company selling 2,000,000 shares at $0.01 per share
to LionsGate in exchange for cash of $20,000.
NOTE 4 – Related Party Transactions
During the three months ended December 31,
2019, the Company received $20,000 upon the sale of 2,000,000 shares of common stock to LionsGate for $0.01 per share.
From time-to-time the Company receives shareholder
advances to cover operating costs which are reflected on the balance sheet as related party advances. During the six months ended
December 31, 2019, LionsGate provided advances totaling $50,675.
NOTE 5 – Subsequent Events
Management has reviewed material events subsequent
of the period ended December 31, 2019 and prior to the filing of our consolidated financial statements in accordance with FASB
ASC 855 “Subsequent Events”.
Item
2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Statements
This Report on Form
10-Q contains forward-looking statements which involve assumptions and describe our future plans, strategies, and expectations,
and are generally identifiable by use of words such as “may,” “will,“ “should,” “expect,”
“anticipate,” “estimate,” “believe,” “intend,” or “project,” or the
negative of these words or other variations on these words or comparable terminology. These statements are expressed in good faith
and based upon a reasonable basis when made, but there can be no assurance that these expectations will be achieved or accomplished.
Such forward-looking
statements include statements regarding, among other things, (a) the potential markets for our products, our potential profitability,
and cash flows, (b) our growth strategies, (c) anticipated trends in the in-vitro diagnostics industry, (d) our future financing
plans, and (e) our anticipated needs for working capital. This information may involve known and unknown risks, uncertainties,
and other factors that may cause our actual results, performance, or achievements to be materially different from the future results,
performance, or achievements expressed or implied by any forward-looking statements. These statements may be found under “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” as well as in this Form 10-Q generally. Actual
events or results may differ materially from those discussed in forward-looking statements as a result of various factors, including,
without limitation, the matters described in this Form 10-Q generally. In light of these risks and uncertainties, there can be
no assurance that the forward-looking statements contained in this filing will in fact occur. In addition to the information expressly
required to be included in this filing, we will provide such further material information, if any, as may be necessary to make
the required statements, in light of the circumstances under which they are made, not misleading.
Although forward-looking
statements in this report reflect the good faith judgment of our management, forward-looking statements are inherently subject
to known and unknown risks, business, economic and other risks and uncertainties that may cause actual results to be materially
different from those discussed in these forward-looking statements. Readers are urged not to place undue reliance on these forward-looking
statements, which speak only as of the date of this report. We assume no obligation to update any forward-looking statements in
order to reflect any event or circumstance that may arise after the date of this report, other than as may be required by applicable
law or regulation. Readers are urged to carefully review and consider the various disclosures made by us in our filings with the
Securities and Exchange Commission which attempt to advise interested parties of the risks and factors that may affect our business,
financial condition, results of operation and cash flows. If one or more of these risks or uncertainties materialize, or if the
underlying assumptions prove incorrect our actual results may vary materially from those expected or projected.
Except where the context
otherwise requires and for purposes of this Form 10-Q only, “we” “us“ “our“ “Company“
“our Company“ and “Global WholeHealth Partners” refer to Global WholeHealth Partners Corporation, a Nevada
corporation.
Overview
The Company was founded
to develop, manufacture and market in-vitro diagnostic (“IVD”) tests for over-the-counter (“OTC” or consumer),
or consumer-use and point-of-care (“POC” or professional) which includes hospitals, physicians’ offices and medical
clinics, including those within penal systems throughout the US and abroad. The Company currently manufactures and markets a range
of diagnostic test kits for consumer use through OTC sales, and for use by health care professionals, generally located at medical
clinics, physician offices and hospitals known POC, in the United States. These test kits are known as in-vitro diagnostic test
kits or “IVD” products.
The Company believes,
according to publicly available sources, that the IVD industry is a multi-billion dollar industry that is increasing each
year. This assessment includes all laboratory hospital-based products, OTC devices, and rapid tests performed at the
point-of-care. The Company believes that the following factors can be attributed to the increase in overall need and use of
IVD test kits: an aging baby-boomer population; increasing healthcare costs; the ever-growing number of uninsured and
under-insured in the U.S. and abroad; and a general increase in consumer awareness, in part due to the wealth of information
available on the Internet.
The concepts that distinguish POC technology—operation
simple enough for non-laboratory users; little or no maintenance requirement; and rapid, reliable results—mean that it can
be applied equally well in many non-clinical settings, such as the OTC market. As advances in medical technology increasingly
make it possible to diagnose diseases and physiological conditions from ever-smaller amounts of body fluids, certain diseases
and conditions that once required diagnosis by physicians and/or medical technicians inside hospital emergency rooms, exam rooms/bedside
studies, or private clinics, can now also be done by inexpensive, easy-to-use diagnostic devices that consumers can use in the
comfort and anonymity of their home. Today, the average pharmacy, whether a privately owned neighborhood store, or chain owned,
has become an outlet for selling IVD test kits for in-home use.
All of the products we sell are manufactured
in an FDA Approved Facility in the USA. An FDA Approved facility is a facility that meets Good Manufacturing Practices (“GMP”)
with the FDA.
Industry
The use of diagnostics in quality measures
often is supported by clinical practice guidelines. Of all the quality measures contained in The Healthcare Effectiveness Data
and Information Set (“HEDIS”) is a widely used set of performance measures in the managed care industry, developed
and maintained by the National Committee for Quality Assurance (“NCQA”) and The National Quality Measures Clearinghouse
(“NQMC”). We identified guidelines specifically recommending diagnostic use in the NGC for 61.5% of those in HEDIS
and 78.5% of those in the NQMC.
Of course, the development of measures for HEDIS, NQMC and other quality assessment initiatives
is a relatively new process and represents only a sample of evidence-based use of diagnostics. Nevertheless, this analysis conveys
the essential role of diagnostics in health care quality. Further, the incorporation of diagnostics into quality measures serves
as a benchmark for assessing underuse of diagnostics and the health and economic impact of such underuse.
In its annual report on the state of health
care quality in the US, NCQA assessed the impact of under-compliance with HEDIS measures, including those pertaining to diagnostics,
on avoidable adverse health events, deaths and costs. Figure 7.7 below shows these impacts for measures pertaining to diagnostics
used in breast cancer detection, cholesterol management, colorectal cancer screening and diabetes management.
Figure 7.7 Relationship between Application
of Selected HEDIS Diagnostic Quality Measures and Avoidable Adverse Health Events, Deaths and Costs
HEDIS Quality Measure
|
Percent National Under-use in HEDIS Compliant Health Plans
|
Estimated Annual Avoidable
Adverse Health Events
|
Estimated
Annual Avoidable Deaths
|
Estimated
Annual Avoidable Costs
|
Breast cancer screening
|
19.3%
|
7,600 breast cancer
|
600–1,000
|
$ 48 million
|
(biopsy, needle
|
|
cases treated in Stage
|
|
|
aspiration or
|
|
IV due to late
|
|
|
mammography)
|
|
diagnosis
|
|
|
Cholesterol management
|
48.9
|
14,600 major coronary events
|
6,900–17,000
|
$ 87 million
|
Colorectal cancer
|
51.9
|
20,000 cases of
|
4,200–6,300
|
$191 million
|
screening
|
|
colorectal cancer
|
|
|
(FOBT or colonoscopy)
|
|
diagnosed/treated at a
|
|
|
|
|
later stage
|
|
|
Diabetes management
(HbA1c control)
|
20.2
|
14,000 heart attacks, strokes, or amputations
|
4,300–9,600
|
$573 million
|
549
State of health care quality: industry trends and analysis. Washington, DC:
National Committee for Quality Trance, 2004.
These and other
findings of the 2004 NCQA report on the state of health care quality demonstrate the potential for evidence-based use of diagnostics
to improve health care quality and to avoid unnecessary adverse health events, deaths and costs. These studies are the most recent
and as time has passed, we all understand that the cost of Health Care has gone up dramatically and therefore the savings to the
health care industry is even greater than the studies show (See Figure 7.7 above).
Health care
increasingly is subject to demands for improved health and quality of life and constraints on the spending required to deliver
these improvements. In vitro diagnostics, henceforth in this report referred to as diagnostics, aid in responding to such
demands by enabling accurate detection of health risks and disease at earlier stages and improving treatment and disease management,
while diminishing subsequent health problems and their associated costs. Diagnostics serve a key role in the health value chain
by influencing the quality of patient care, health outcomes, and downstream resource requirements.
From consumer-friendly
at-home pregnancy and glucose monitoring tests to more complex automated laboratory-based systems, these tests are often first-line
health decision tools. While diagnostics comprise less than 5% of hospital costs and about 1.6% of all Medicare costs, their findings
influence as much as 60-70% of health care decision-making. The value of diagnostics accrues to not only clinicians and patients,
but to health care managers, third-party payers, and quality assurance organizations that use diagnostic performance to measure
and improve health care quality.
The following data have
been culled from various publicly available sources that the Company believes to be accurate but cannot guarantee it. The Company
has attempted to provide conservative statistics and believe that it is generally known that the market for IVD products is significant
and is continuing to grow.
The pregnancy test
is one of the primary home tests used in the world. The Company believes that approximately, 85,000 retail drug stores in the U.S.
are selling over $900 million of pregnancy tests alone and continues to increase annually. Presently, it knows of five major manufacturers
of this product.
The ovulation test
market is generally estimated at $51 million annually and is growing annually. Presently, the Company is aware of four major brand
companies that offer this test.
The glucose (diabetes)
whole blood test is used to test for abnormal glucose blood levels. A significant number of individuals are affected in the United
States with non-insulin dependent diabetes (Type II), many of whom are without knowledge of the disease. This disease, left untreated,
can cause cardiovascular disorders and cataracts. With the explosive growth of childhood obesity and general poorer health on Americans,
this test can saves thousands of lives.
As mentioned in the table
7.7: Diabetes management: There are 14,000 heart attacks, strokes, or amputations; 4,300–9,600 Deaths, but with Rapid
Diagnostic Testing an annual avoidable cost of $573 million per year, and lives saved.
The Company’s
most recent OTC product is its colorectal test (colon disorders). The Company estimates the demand for this test to increase
with awareness of availability. It knows of only one other company that is currently offering this product. The colorectal
Cancer screening tests helps detect the possibility of cancer early and can saves thousands of lives and millions of dollars.
Colorectal cancer screening (FOBT) Fecal Occult Blood Test: 20,000 cases of colorectal cancer diagnosed/treated at a later
stage and 4,200–6,300 deaths, but with Rapid Diagnostic Testing an annual avoidable cost of $191 million per year and
lives saved.
The Company’s cholesterol
OTC test and its cholesterol colorimetric POC test are available to test for abnormal levels of cholesterol in whole blood. There
is evidence that a high blood cholesterol level increases the risk of developing arteriosclerosis, and with it the risk of coronary
heart disease or stroke. This heart disease is the leading cause of death in the United States, as reported by the American Heart
Association. Estimated Annual Avoidable Adverse Health Events are estimated to be approximately 14,600 with estimated annual avoidable
deaths of approximately 6,900–17,000 from high Cholesterol. Rapid Diagnostic Tests taken by this populations would save an
estimated $87 million per year and lives saved.
The market for drugs-of-abuse
tests for the over-the-counter market is generally estimated to be one of the fastest growing markets of all IVD test products.
At present, the Company believes that many law enforcement and governmental agencies are using laboratory testing facilities and
must wait for results, often taking one week to ten days. The Company’s tests are completed onsite within ten minutes.
A significant number of
people are infected by the H-Pylori bacteria, which are associated with ulcers. The Company’s H-Pylori test for the POC is
one of its newest products.
All of the Company’s
diagnostic tests, over 90 products are available for international distribution. The Company believes that its tests are excellent
for distribution and use in underdeveloped countries because, unlike lab and other rapid diagnostic tests, its test kits do not
need refrigeration and can withstand extended periods of excessive heat.
Competition
Several companies around
the world carry similar products, typically comprised of approximately 10-30 different products. However, we carry the largest
line of products that we know of including over 100 products. As of December 31, 2019, Global Wholehealth Partners Corp. has made
no sales.
Marketing and Sales
The company plans on selling
through large and small distributors, giving the company the greatest opportunity to sell to a greater amount of people, doctors,
hospitals, clinics and governments.
Research and Development:
We are continuing to look
for needs in the world to create and work with our scientific team and science partners to make a rapid test for the newest diseases,
such as ZIKA, EBOLA, TB, and Malaria.
Results of Operations
Three and six months ended December 31, 2019 compared with
the three and six months ended December 31, 2018
Operating Expenses
Professional Fees
Professional fees relate
to expenditures incurred primarily for legal and accounting services. During the three and six months ended December 31, 2019 compared
to the three and six months ended December 31, 2018, professional fees increased $21,400 and $35,900, respectively. The increase
was due to increased professional and management fees incurred in furtherance of the Company’s business plan and the administration
of the public entity.
Selling, General and Administrative
Selling, general and administrative
(“SG&A”) costs include all expenditures related to personnel, travel and entertainment, public company compliance
costs, insurance and other office related costs. During the three and six months ended December 31, 2019 compared to the three
and six months ended December 31, 2018, SG&A increased $29,398 and $33,396, respectively. The increase was due to increased
cost incurred in furtherance of the Company’s business plan and the administration of the public entity.
Liquidity and Capital Resources
As of December 31, 2019,
our assets consisted of $97 in cash and $23,372 in inventory compared to current liabilities of $53,547. From inception to December
31, 2019, we have incurred an accumulated deficit of $532,978. This loss has been incurred through a combination of professional
fees and SG&A costs to support our plans to develop our business. During the six months ended December 31, 2019 and 2018, the
Company had no revenue and incurred a loss from operations of $69,896 and $600, respectively. The Company has incurred losses since
inception and may not be able to generate sufficient net revenue from its business in the future to achieve or sustain profitability.
The Company currently has insufficient funds to operate over the next twelve months. To finance our operations, we are currently
pursuing additional funds through equity or debt financing or a combination thereof. The Company currently has no commitments to
obtain any such financing, and there can be no assurance that financing will be available in amounts or on terms acceptable to
the Company, if at all.
Summary of Cash Flows
Presented below is a table
that summarizes the cash provided or used in our activities and the amount of the respective increases or decreases in cash provided
by (used in) those activities between the fiscal periods: