10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2016

o 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: 333-190999

APPYEA, INC.

(Exact Name of Registrant as Specified in its Charter)

South Dakota	46-1496846
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

777 Main Street, Suite 600, Fort Worth, Texas 76102

(Address of Principal Executive Offices) (Zip Code)

Registrant's telephone number including area code: (817) 887-8142

N/A

Former name, former address, and former fiscal year, if changed since last report

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 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 o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).Yes x No o

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

Larger accelerated filer	o	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	x

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

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 464,667,527 shares outstanding as of November 8, 2016.

APPYEA, INC.

Index

		Page
Part I – FINANCIAL INFORMATION
Item 1.	Financial Statements	3
	Balance Sheets as of September 30, 2016 and June 30, 2016 (unaudited)	3
	Statements of Operations for the three months ended September 30, 2016 and 2015 (unaudited)	4
	Statements of Cash Flows for the three months ended September 30, 2016 and 2015 (unaudited)	5
	Notes to Financial Statements (unaudited)	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	10
Item 3.	Quantitative and Qualitative Disclosure About Market Risk	12
Item 4.	Controls and Procedures	13
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.	Mine Safety Disclosures	14
Item 5.	Other Information	14
Item 6.	Exhibits	15
SIGNATURES		16

 

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

APPYEA, INC.

BALANCE SHEETS

(Unaudited)

	September 30,			June 30,
	2016			2016
Current Assets:
Cash and cash equivalents	$	5,340		$	14,637
Prepaid expenses		4,667			4,167
Total Current Assets		10,007			18,804
Fixed assets, net of accumulated depreciation of $186,319 and $175,226		71,551			82,644
TOTAL ASSETS	$	81,558		$	101,448
Current Liabilities:
Accounts payable		2,394			4,643
Accrued salary		56,000			32,000
Convertible loans and accrued interest		454			454
Derivative liabilities		3,630			1,452
Total Current Liabilities		62,478			38,549
Total Liabilities		62,478			38,549
Commitments and Contingencies (Note 7)		-			-
Stockholders' Equity:
Convertible preferred stock, $0.0001 par value, 5,000,000 shares authorized, 5,000,000 shares issued and outstanding at September 30, 2016 and June 30, 2016, respectively		500			500
Common stock, $0.0001 par value, 750,000,000 shares authorized, 464,667,527 shares issued and outstanding at September 30, 2016 and June 30, 2016, respectively		46,466			46,466
Additional paid-in capital		4,098,473			4,098,473
Accumulated deficit		(4,126,359	)		(4,082,540	)
Total Stockholders' Equity		19,080			62,899
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	81,558		$	101,448

See accompanying notes to unaudited financial statements.

 

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APPYEA, INC.

STATEMENTS OF OPERATIONS

(Unaudited)

	Three months ended September 30,
	2016			2015
Revenues	$	402		$	386
Gross Profit		402			386
Operating Expenses
Sales and marketing		-			1,578
Legal and professional fees		2,997			877,654
General and administrative		27,953			4,714
Depreciation		11,093			15,615
Total Operating Expenses		42,043			899,561
Loss from operations		(41,641	)		(899,175	)
Other Income (Expense)
Change in fair value of derivative liabilities		(2,178	)		(335,503	)
Interest expense		-			(54,688	)
Net Other Income (Expense)		(2,178	)		(390,191	)
Net Loss	$	(43,819	)	$	(1,289,366	)
Net Loss Per Common Share: Basic and Diluted	$	(0.00	)	$	(0.03	)
Weighted Average Number of Common Shares Outstanding: Basic and Diluted		464,667,527			41,384,608

See accompanying notes to unaudited financial statements.

 

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APPYEA, INC.

STATEMENTS OF CASH FLOWS

(Unaudited)

	Three months ended September 30,
	2016			2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(43,819	)	$	(1,289,366	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense		11,093			15,615
Common stock issued for services		-			327,000
Amortization of stock issued for prepaid services		-			536,376
Amortization of deferred financing cost		-			1,649
Amortization of debt discounts		-			50,102
Change in fair value of derivative liabilities		2,178			335,503
Changes in operating assets and liabilities:
Accounts receivable		-			135
Prepaid expenses		(500	)		3,224
Accounts payable		(2,249	)		(3,677	)
Accrued salary		24,000			-
Accrued interest		-			2,937
Net Cash Used in Operating Activities		(9,297	)		(20,502	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from convertible notes payable, net of original issue discounts		-			81,750
Payment of deferred financing costs		-			(10,910	)
Net cash provided by Financing Activities		-			70,840
Net cash increase (decrease) for period		(9,297	)		50,338
Cash at beginning of period		14,637			265
Cash at end of period	$	5,340		$	50,603
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for income taxes	$	-		$	-
Cash paid for interest	$	-		$	-
NON CASH INVESTING AND FINANCING ACTIVITIES
Issuance of common stock for deferred financing costs	$	-		$	3,850
Issuance of common stock for conversion of debt and accrued interest	$	-		$	43,607
Resolution of derivative liabilities upon conversion of debt	$	-		$	134,866
Derivative liability recognized as debt discount	$	-		$	81,750

See accompanying notes to unaudited financial statements.

 

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APPYEA, INC.

NOTES TO FINANCIAL STATEMENTS FOR THE THREE MONTH PERIODS ENDED SEPTEMBER30, 2016 AND 2015

(UNAUDITED)

1. NATURE OF OPERATIONS

AppYea, Inc. ("AppYea", "the Company", "we" or "us") was incorporated in the State of South Dakota on November 26, 2012, to engage in the acquisition, purchase, maintenance and creation of mobile software applications. The Company is in the development stage with no significant revenues and a limited operating history.

The Company's common stock is traded on the OTC Markets (www.otcmarkets.com) under the symbol "APYP". The first day of trading on the OTC Markets was December 15, 2014.

2. BASIS OF PRESENTATION

The Company's fiscal year end is June 30. The accompanying unaudited interim condensed financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and the rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial reporting and are presented in US dollars. Accordingly, these unaudited interim condensed financial statements do not include all information and footnote disclosures required for an annual set of financial statements prepared under United States generally accepted accounting principles. In the opinion of our management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the financial position, results of operations and cash flows as of September 30, 2016, and for the interim periods presented herein have been reflected in these unaudited interim condensed financial statements and the notes thereto. Interim results included herein are not necessarily indicative of the results to be expected for the fiscal year as a whole. These unaudited interim condensed financial statements should be read in conjunction with the audited financial statements and accompanying notes for the fiscal year ended June 30, 2016, included in its Annual Report on Form 10-K filed on September 30, 2016. Certain prior period amounts have been reclassified to conform to current period presentation.

3. GOING CONCERN AND LIQUIDITY

At September 30, 2016, the Company had cash of $5,340 and current liabilities of $62,478 and a working capital deficit of $52,471. The Company has generated net losses since inception. The Company anticipates future losses in its business. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

The Company's ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. There is no assurance that this series of events will be satisfactorily completed.

4. FIXED ASSETS

As at September 30, 2016, and June 30, 2016, the balance of fixed assets represented a vehicle and mobile application software as follows:

	September 30, 2016			June 30, 2016
Mobile applications	$	257,870		$	257,870
Accumulated depreciation		(186,319	)		(175,226	)
Fixed assets, net	$	71,551		$	82,644

Depreciation expense for three months ended September 30, 2016, and 2015, was $11,093 and $15,615, respectively.

 

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5. CONVERTIBLE LOANS

On March 13, 2015, the Company issued a $10,000 convertible promissory note payable. The unsecured convertible promissory note payable is due upon demand and carries an interest rate of 12% per annum. The note payable is convertible at the option of the holder, at 50% of the lowest traded price for the 60 days preceding conversion as posted on the OTC Markets or on such US National Exchange upon which the Company may be listed. Effective March 13, 2015, the Company evaluated the terms of the conversion features of the convertible debenture in accordance with ASC Topic No. 815 - 40, Derivatives and Hedging - Contracts in Entity's Own Stock and determined it is indexed to the Company's common stock and that the conversion features meet the definition of a liability and therefore bifurcated the conversion feature and accounted for it as a separate derivative liability. The Company valued the conversion feature at the issue date (March 13, 2015) at $14,552 using the Black Scholes valuation model. $10,000 of the value assigned to the derivative liability was recognized as a debt discount on the convertible debenture. The debt discount was recorded as a reduction (contra-liability) to the convertible debenture and is being amortized over the life of the convertible debenture. The balance of $4,552 of the value assigned to the derivative liability was expensed on the issue date of the convertible note.

As of September 30, 2016, the outstanding principal balance of the note was $0 and the note had accrued interest of $454.

6. DERIVATIVE LIABILITIES

The Company analyzed the conversion option for derivative accounting consideration under ASC 815, Derivatives and Hedging, and hedging, and determined that the instrument should be classified as a liability since the conversion option becomes effective at issuance resulting in there being no explicit limit to the number of shares to be delivered upon settlement of the above conversion options.

Fair Value Assumptions Used in Accounting for Derivative Liabilities.

ASC 815 requires we assess the fair market value of derivative liability at the end of each reporting period and recognize any change in the fair market value as other income or expense item.

The Company determined our derivative liabilities to be a Level 3 fair value measurement and used the Black-Scholes pricing model to calculate the fair value as of September 30, 2016. The Black-Scholes model requires six basic data inputs: the exercise or strike price, time to expiration, the risk free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. Changes to these inputs could produce a significantly higher or lower fair value measurement. The fair value of each convertible note is estimated using the Black-Scholes valuation model.

 

7

At September 30, 2016, the estimated fair values of the liabilities measured on a recurring basis are as follows:

Fair Value Measurements at September 30, 2016
			Quoted Prices in		Significant Other		Significant
	September 30,		Active Markets		Observable Inputs		Unobservable Inputs
	2016		(Level 1)		(Level 2)		(Level 3)
March 2015 Note	$	3,630	$	-	$	-	$	3,630
	$	3,630	$	-	$	-	$	3,630

The following table summarizes the changes in the derivative liabilities during the three months ended September 30, 2016: 

Fair Value Measurements Using Significant Observable Inputs (Level 3)
Balance - June 30, 2016	$	1,452
Loss on change in fair value of the derivative		2,178
Balance - September 30, 2016	$	3,630

The aggregate loss on derivatives during the three months ended September 30, 2016 was $2,178.

7. COMMITMENTS AND CONTINGENCIES

Leases and Long term Contracts

The Company has not entered into any long term leases, contracts or commitments.

Legal

To the best of the Company's knowledge and belief, no legal proceedings are currently pending or threatened.

Rent

As of January 30, 2013, the Company leases office space at $200 per month with three-month terms, which shall be automatically extended for successive three-month periods unless there is the notice to cancel. The lease can be cancelled at any time by either party with 30 days’ notice prior to expiration of an applicable term. For the three months ended September 30, 2016 and 2015, the Company incurred $607 and $609, respectively.

 

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8. SHAREHOLDERS' EQUITY

Convertible Preferred Stock

The Company is authorized to issue 5,000,000 shares of convertible preferred stock at a par value of $0.0001.

Each convertible preferred share is convertible into 1,500 shares of common stock and has the voting rights of 1,000 shares of common stock.

As at September 30, 2016, and June 30, 2016, 5,000,000 shares of the Company's convertible preferred stock were issued and outstanding.

Common Stock

The Company is authorized to issue 750,000,000 shares of common stock at a par value of $0.0001.

As at September 30, 2016, and June 30, 2016, 464,667,527 shares of the Company's common stock were issued and outstanding, respectively.

9. RELATED PARTY TRANSACTIONS

In March 2016, the Company appointed current CEO and approved a base compensation package of $8,000 per month for CEO. As of September 30, 2016 and June 30, 2016, the Company recorded accrued salary of $56,000 and $32,000.

9

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation

Introduction

The following discussion and analysis was prepared to supplement information contained in the accompanying financial statements and is intended to provide certain details regarding the Company’s financial condition as of September 30, 2016, and the results of operations for the three months ended September 30, 2016. It should be read in conjunction with the unaudited financial statements and notes thereto contained in this report as well as the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal years ended June 30, 2016.

Overview

AppYea, Inc. (“AppYea,” “we,” “our,” “us,” or the “Company”) was incorporated in the State of South Dakota on November 26, 2012. We are engaged in the acquisition, purchase, maintenance and creation of mobile software applications (or “apps”). The Company’s current business plans include the marketing of its mobile applications, as well the expansion of its mobile application portfolio through the acquisition of third party developed mobile applications and/or mobile applications development companies. The Company has derived revenue by way of the sale of its developed and acquired mobile applications as well as through advertisement integration. The Company currently uses advertising integration in the free versions of our mobile applications that are downloaded by consumers. The Company plans to continue using advertisement integration in the free versions of its mobile apps. However, at the time of the initial download, or at any time after the initial download of our application, the consumer can choose to pay for the full, “ad-free,” version of the application, at which time the advertisements are removed. We currently have 13 fully developed gaming applications, as well as a group of 14 applications that provide wait times at various amusement parks, and 23 additional source code applications that operate in the following categories: Business, Education, Entertainment, Finance, Lifestyle, Medical, Music, Navigation, News, Travel, Utilities and Wellness. We also have acquired an automobile application and a social media application.

The Company is currently focused on the sale of its fully developed applications to mobile phone users, and finalizing the development of its source code applications.

The Company is currently actively seeking acquisitions of developed mobile applications and/or mobile applications development companies, however, we currently do not have any proposals or arrangements to enter into any acquisition or other business combinations.

Results of Operations

For the Three Months Ended September 30, 2016 and 2015

We generated revenue of $402 and $386 for the three months ended September 30, 2016 and 2015, respectively. For the three months ended September 30, 2016, we had a larger mobile apps offering than in the corresponding period during the prior year. During our limited history, we have generated nominal revenue and have very little operating history upon which to evaluate our business.

Operating expenses, which consisted of sales and marketing costs, legal and professional fees, general and administrative expenses and depreciation expense, were $42,043 and $899,561, for the three months ended September 30, 2016 and 2015, respectively. Operating expense decreases during the three months ended September 30, 2016 were primarily the result of decreased professional fees.

Other expenses totaled $2,178 for the three months ended September 30, 2016 compared to $390,191 for the three months ended September 30, 2015. The decrease in other expenses was primarily the result of a decrease in change in fair value of derivative liabilities and interest expense during the period ended September 30, 2016.

 

10

As a result of the foregoing, we incurred losses of $43,819 and $1,289,366 during the three months ended September 30, 2016 and 2015, respectively.

Liquidity and Capital Resources

As of September 30, 2016, we had cash or cash equivalents of $5,340.

Net cash used in operating activities was $9,297 for the three months ended September 30, 2016 and net cash used in operating activities was $20,502 for the three months ended September 30, 2015. During the three months ended September 30, 2016 we incurred a net loss of $43,819, which was primarily the cause of the increase in our net cash used in operating activities. At September 30, 2016, our operating activities and available capital resources were not sufficient to fund our operations going forward. We believe that we are going to need to obtain additional funding for our activities during the next twelve months to: 1) further fund the development of our source code applications, 2) to fund any potential acquisitions of developed mobile applications and/or mobile applications development companies, and 3) to fund any operating deficits.

Net cash used in investing activities was $0 for the three months ended September 30, 2016 and 2015. 

Net cash provided by financing activities for the three months ended September 30, 2016 was $0, compared to net cash provided by financing activities of $70,840 for the three months ended September 30, 2015. During the three months ended September 30, 2015 we received $81,750 in proceeds from the sale of convertible notes to third parties.

As of September 30, 2016, our total assets were $81,558 and our total liabilities were $62,478. Included in our assets of as of September 30, 2016 was $5,340 of cash, $4,667 in prepaid expenses, and net fixed assets of $71,551. As of June 30, 2016, our total assets were $101,448 and our total liabilities were $38,549.

Plan of Operation and Funding

During the next twelve months, we anticipate that our principal sources of liquidity will consist of any, or all, of the following: 1) proceeds from sales of our common stock, 2) revenue generated from our operations, and 3) additional debt borrowings. While we are presently generating revenue and we anticipate our revenue will continue to increase, we are currently operating at a loss.

On a long-term basis, our ability to ultimately achieve and maintain profitability and positive cash flow is dependent upon our ability to successfully continue to develop our products and our ability to generate revenues.

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

This report contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties and are based on the beliefs and assumptions of management and information currently available to management. The use of words such as “believes”, “expects”, “anticipates”, “intends”, “plans”, “estimates”, “should”, “likely” or similar expressions, indicates a forward-looking statement.

The identification in this report of factors that may affect our future performance and the accuracy of forward-looking statements is meant to be illustrative and by no means exhaustive. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty.

 

11

Factors that could cause our actual results to differ materially from those expressed or implied by forward-looking statements include, but are not limited to:

· Trends affecting the Company’s financial condition, results of operations or future prospects;

· The Company’s business and growth strategies;

· The Company’s financing plans and forecasts;

· The factors that we expect to contribute to our success and the Company’s ability to be successful in the future;

· The Company’s business model and strategy for realizing positive results as sales increase;

· Competition, including the Company’s ability to respond to such competition and its expectations regarding continued competition in the market in which the Company competes;

· Expenses;

· The Company’s expectations with respect to continued disruptions in the global capital markets and reduced levels of consumer spending and the impact of these trends on its financial results;

· The Company’s ability to meet its projected operating expenditures and the costs associated with development of new projects;

· The Company’s ability to pay dividends or to pay any specific rate of dividends, if declared;

· The impact of new accounting pronouncements on its financial statements;

· That the Company’s cash flows from operating activities will be sufficient to meet its projected operating expenditures for the next twelve months;

· The Company’s market risk exposure and efforts to minimize risk;

· Development opportunities and its ability to successfully take advantage of such opportunities;

· Regulations, including anticipated taxes, tax credits or tax refunds expected;

· The outcome of various tax audits and assessments, including appeals thereof, timing of resolution of such audits, the Company’s estimates as to the amount of taxes that will ultimately be owed and the impact of these audits on the Company’s financial statements;

· The Company’s overall outlook including all statements under Management’s Discussion and Analysis or Plan of Operation;

· That estimates and assumptions made in the preparation of financial statements in conformity with US GAAP may differ from actual results; and

· Expectations, plans, beliefs, hopes or intentions regarding the future.

Item 3. Quantitative and Qualitative Disclosure About Market Risk

Smaller reporting companies are not required to provide the information required by this item.

 

12

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

The Company’s management conducted an evaluation of the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rule 13a-15(e) and Rule 15d-15(e) under the 1934 Act) pursuant to Rule 13a-15 under the 1934 Act. The Company’s disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports it files or submits under the 1934 Act is recorded, processed, summarized and reported on a timely basis and that such information is communicated to management and the Company’s board of directors to allow timely decisions regarding required disclosure.

Based on this evaluation, it has been concluded that the design and operation of our disclosure controls and procedures are not effective since the following material weaknesses exist:

· Since inception our chief executive officer also functions as our chief financial officer. As a result, our officers may not be able to identify errors and irregularities in the financial statements and reports.

· We were unable to maintain full segregation of duties within our financial operations due to our reliance on limited personnel in the finance function. While this control deficiency did not result in any material adjustments to our financial statements, it could have resulted in a material misstatement that might have been prevented or detected by a segregation of duties.

· Documentation of all proper accounting procedures is not yet complete.

To the extent reasonably possible given our limited resources, as financial resources become available we intend to take measures to cure the aforementioned weaknesses, including, but not limited to, the following:

· Increasing the capacity of our qualified financial personnel to ensure that accounting policies and procedures are consistent across the organization and that we have adequate control over financial statement disclosures.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

To the best of the Company’s knowledge and belief, no legal proceedings are currently pending or threatened.

Item 1A. Risk Factors.

We are not required to provide this information as we are a Smaller Reporting Company.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Default Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable to our Company.

Item 5. Other Information.

None.

 

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Item 6. Exhibits

31	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Douglas O. McKinnon.
32	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for Douglas O. McKinnon.
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Schema
101.CAL*	XBRL Taxonomy Calculation Linkbase
101.DEF*	XBRL Taxonomy Definition Linkbase
101.LAB*	XBRL Taxonomy Label Linkbase
101.PRE*	XBRL Taxonomy Presentation Linkbase

_______________

* Furnished herewith. XBRL (eXtensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

15

SIGNATURES

Pursuant to the requirements 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.

 

	APPYEA, INC.
Date: November 14, 2016	By:	/s/ Douglas O. McKinnon
		Douglas O. McKinnon, Chief Financial Officer, Principal Accounting Officer, Chief Executive Officer

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EX-31.1

EXHIBIT 31

Certification of Chief Executive Officer and Chief Financial Officer

I, Douglas O. McKinnon, certify that;

1. I have reviewed this quarterly report on Form 10-Q of AppYea, Inc. for the quarter ended September 30, 2016;

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 the 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 registrant as of, and for, the periods presented in this report;

4. The registrant’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 registrant 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 registrant, 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 registrant’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 registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’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 registrant’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 registrant’s internal control over financial reporting.

November 14, 2016	/s/ Douglas O. McKinnon
	Douglas O. McKinnon
	Principal Executive Officer and Principal Financial Officer

EX-32.1

EXHIBIT 32

CERTIFICATION PURSUANT TO

18 U.S.C. Sec.1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of AppYea, Inc. (the “Company”) on Form 10-Q for the quarter ended September 30, 2016, as filed with the Securities Exchange Commission on the date hereof (the “Report”), Douglas O. McKinnon, the Principal Executive Officer and Principal Financial Officer of the Company, certifies pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(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.

This certificate is being made for the exclusive purpose of compliance by the Chief Executive Officer and the Chief Financial Officer of the Company with the requirements of Section 906 of the Sarbanes-Oxley Act of 2002, and may not be disclosed, distributed or used by any person or for any reason other than as specifically required by law.

November 14, 2016	/s/ Douglas O. McKinnon
	Douglas O. McKinnon
	Principal Executive Officer and Principal Financial Officer

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Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2016	Nov. 08, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	APPYEA, INC
Entity Central Index Key	0001568969
Trading Symbol	apyp
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		464,667,527
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1

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BALANCE SHEETS - USD ($)	Sep. 30, 2016	Jun. 30, 2016
Current Assets:
Cash and cash equivalents	$ 5,340	$ 14,637
Prepaid expenses	4,667	4,167
Total Current Assets	10,007	18,804
Fixed assets, net of accumulated depreciation of $186,319 and $175,226	71,551	82,644
TOTAL ASSETS	81,558	101,448
Current Liabilities:
Accounts payable	2,394	4,643
Accrued salary	56,000	32,000
Convertible loans and accrued interest	454	454
Derivative liabilities	3,630	1,452
Total Current Liabilities	62,478	38,549
Total Liabilities	62,478	38,549
Commitments and Contingencies (Note 7)
Stockholders' Equity:
Convertible preferred stock, $0.0001 par value, 5,000,000 shares authorized, 5,000,000 shares issued and outstanding at September 30, 2016 and June 30, 2016, respectively	500	500
Common stock, $0.0001 par value, 750,000,000 shares authorized, 464,667,527 shares issued and outstanding at September 30, 2016 and June 30, 2016, respectively	46,466	46,466
Additional paid-in capital	4,098,473	4,098,473
Accumulated deficit	(4,126,359)	(4,082,540)
Total Stockholders' Equity	19,080	62,899
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 81,558	$ 101,448

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BALANCE SHEETS (Parentheticals) - USD ($)	Sep. 30, 2016	Jun. 30, 2016
Statement of Financial Position [Abstract]
Accumulated depreciation of fixed assets (in dollars)	$ 186,319	$ 175,226
Convertible preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Convertible preferred stock, shares authorized	5,000,000	5,000,000
Convertible preferred stock, shares issued	5,000,000	5,000,000
Convertible preferred stock, shares outstanding	5,000,000	5,000,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	750,000,000	750,000,000
Common stock, shares issued	464,667,527	464,667,527
Common stock, shares outstanding	464,667,527	464,667,527

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STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Revenues	$ 402	$ 386
Gross Profit	402	386
Operating Expenses
Sales and marketing		1,578
Legal and professional fees	2,997	877,654
General and administrative	27,953	4,714
Depreciation	11,093	15,615
Total Operating Expenses	42,043	899,561
Loss from operations	(41,641)	(899,175)
Other Income (Expense)
Change in fair value of derivative liabilities	(2,178)	(335,503)
Interest expense		(54,688)
Net Other Income (Expense)	(2,178)	(390,191)
Net Loss	$ (43,819)	$ (1,289,366)
Net Loss Per Common Share: Basic and Diluted (in dollars per share)	$ (0.00)	$ (0.03)
Weighted Average Number of Common Shares Outstanding: Basic and Diluted (in shares)	464,667,527	41,384,608

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STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (43,819)	$ (1,289,366)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	11,093	15,615
Common stock issued for services		327,000
Amortization of stock issued for prepaid services		536,376
Amortization of deferred financing cost		1,649
Amortization of debt discounts		50,102
Change in fair value of derivative liabilities	2,178	335,503
Changes in operating assets and liabilities:
Accounts receivable		135
Prepaid expenses	(500)	3,224
Accounts payable	(2,249)	(3,677)
Accrued salary	24,000
Accrued interest		2,937
Net Cash Used in Operating Activities	(9,297)	(20,502)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from convertible notes payable, net of original issue discounts		81,750
Payment of deferred financing costs		(10,910)
Net cash provided by Financing Activities		70,840
Net cash increase (decrease) for period	(9,297)	50,338
Cash at beginning of period	14,637	265
Cash at end of period	5,340	50,603
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for income taxes
Cash paid for interest
NON CASH INVESTING AND FINANCING ACTIVITIES
Issuance of common stock for deferred financing costs		3,850
Issuance of common stock for conversion of debt and accrued interest		43,607
Resolution of derivative liabilities upon conversion of debt		134,866
Derivative liability recognized as debt discount		$ 81,750

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NATURE OF OPERATIONS

3 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NATURE OF OPERATIONS

1. NATURE OF OPERATIONS

AppYea, Inc. ("AppYea", "the Company", "we" or "us") was incorporated in the State of South Dakota on November 26, 2012, to engage in the acquisition, purchase, maintenance and creation of mobile software applications. The Company is in the development stage with no significant revenues and a limited operating history.

The Company's common stock is traded on the OTC Markets (www.otcmarkets.com) under the symbol "APYP". The first day of trading on the OTC Markets was December 15, 2014.

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BASIS OF PRESENTATION

3 Months Ended

Sep. 30, 2016

Basis Of Presentation [Abstract]

BASIS OF PRESENTATION

2. BASIS OF PRESENTATION

The Company's fiscal year end is June 30. The accompanying unaudited interim condensed financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and the rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial reporting and are presented in US dollars. Accordingly, these unaudited interim condensed financial statements do not include all information and footnote disclosures required for an annual set of financial statements prepared under United States generally accepted accounting principles. In the opinion of our management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the financial position, results of operations and cash flows as of September 30, 2016, and for the interim periods presented herein have been reflected in these unaudited interim condensed financial statements and the notes thereto. Interim results included herein are not necessarily indicative of the results to be expected for the fiscal year as a whole. These unaudited interim condensed financial statements should be read in conjunction with the audited financial statements and accompanying notes for the fiscal year ended June 30, 2016, included in its Annual Report on Form 10-K filed on September 30, 2016. Certain prior period amounts have been reclassified to conform to current period presentation.

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GOING CONCERN AND LIQUIDITY

3 Months Ended

Sep. 30, 2016

Going Concern And Liquidity [Abstract]

GOING CONCERN AND LIQUIDITY

3. GOING CONCERN AND LIQUIDITY

At September 30, 2016, the Company had cash of $5,340 and current liabilities of $62,478 and a working capital deficit of $52,471. The Company has generated net losses since inception. The Company anticipates future losses in its business. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

The Company's ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. There is no assurance that this series of events will be satisfactorily completed.

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FIXED ASSETS

3 Months Ended

Sep. 30, 2016

Property, Plant and Equipment [Abstract]

FIXED ASSETS

4. FIXED ASSETS

As at September 30, 2016, and June 30, 2016, the balance of fixed assets represented a vehicle and mobile application software as follows:

	September 30, 2016			June 30, 2016
Mobile applications	$	257,870		$	257,870
Accumulated depreciation		(186,319	)		(175,226	)
Fixed assets, net	$	71,551		$	82,644

Depreciation expense for three months ended September 30, 2016, and 2015, was $11,093 and $15,615, respectively.

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CONVERTIBLE LOANS

3 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

CONVERTIBLE LOANS

5. CONVERTIBLE LOANS

On March 13, 2015, the Company issued a $10,000 convertible promissory note payable. The unsecured convertible promissory note payable is due upon demand and carries an interest rate of 12% per annum. The note payable is convertible at the option of the holder, at 50% of the lowest traded price for the 60 days preceding conversion as posted on the OTC Markets or on such US National Exchange upon which the Company may be listed. Effective March 13, 2015, the Company evaluated the terms of the conversion features of the convertible debenture in accordance with ASC Topic No. 815 - 40, Derivatives and Hedging - Contracts in Entity's Own Stock and determined it is indexed to the Company's common stock and that the conversion features meet the definition of a liability and therefore bifurcated the conversion feature and accounted for it as a separate derivative liability. The Company valued the conversion feature at the issue date (March 13, 2015) at $14,552 using the Black Scholes valuation model. $10,000 of the value assigned to the derivative liability was recognized as a debt discount on the convertible debenture. The debt discount was recorded as a reduction (contra-liability) to the convertible debenture and is being amortized over the life of the convertible debenture. The balance of $4,552 of the value assigned to the derivative liability was expensed on the issue date of the convertible note.

As of September 30, 2016, the outstanding principal balance of the note was $0 and the note had accrued interest of $454.

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DERIVATIVE LIABILITIES

3 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE LIABILITIES

6. DERIVATIVE LIABILITIES

The Company analyzed the conversion option for derivative accounting consideration under ASC 815, Derivatives and Hedging, and hedging, and determined that the instrument should be classified as a liability since the conversion option becomes effective at issuance resulting in there being no explicit limit to the number of shares to be delivered upon settlement of the above conversion options.

Fair Value Assumptions Used in Accounting for Derivative Liabilities.

ASC 815 requires we assess the fair market value of derivative liability at the end of each reporting period and recognize any change in the fair market value as other income or expense item.

The Company determined our derivative liabilities to be a Level 3 fair value measurement and used the Black-Scholes pricing model to calculate the fair value as of September 30, 2016. The Black-Scholes model requires six basic data inputs: the exercise or strike price, time to expiration, the risk free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. Changes to these inputs could produce a significantly higher or lower fair value measurement. The fair value of each convertible note is estimated using the Black-Scholes valuation model.

At September 30, 2016, the estimated fair values of the liabilities measured on a recurring basis are as follows:

Fair Value Measurements at September 30, 2016
			Quoted Prices in		Significant Other		Significant
	September 30,		Active Markets		Observable Inputs		Unobservable Inputs
	2016		(Level 1)		(Level 2)		(Level 3)
March 2015 Note	$	3,630	$	-	$	-	$	3,630
	$	3,630	$	-	$	-	$	3,630

The following table summarizes the changes in the derivative liabilities during the three months ended September 30, 2016: 

Fair Value Measurements Using Significant Observable Inputs (Level 3)
Balance - June 30, 2016	$	1,452
Loss on change in fair value of the derivative		2,178
Balance - September 30, 2016	$	3,630

The aggregate loss on derivatives during the three months ended September 30, 2016 was $2,178.

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

7. COMMITMENTS AND CONTINGENCIES

Leases and Long term Contracts

The Company has not entered into any long term leases, contracts or commitments.

Legal

To the best of the Company's knowledge and belief, no legal proceedings are currently pending or threatened. Rent

As of January 30, 2013, the Company leases office space at $200 per month with three-month terms, which shall be automatically extended for successive three-month periods unless there is the notice to cancel. The lease can be cancelled at any time by either party with 30 days’ notice prior to expiration of an applicable term. For the three months ended September 30, 2016 and 2015, the Company incurred $607 and $609, respectively.

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SHAREHOLDERS' EQUITY

3 Months Ended

Sep. 30, 2016

Equity [Abstract]

SHAREHOLDERS' EQUITY

8. SHAREHOLDERS' EQUITY

Convertible Preferred Stock

The Company is authorized to issue 5,000,000 shares of convertible preferred stock at a par value of $0.0001.

Each convertible preferred share is convertible into 1,500 shares of common stock and has the voting rights of 1,000 shares of common stock.

As at September 30, 2016, and June 30, 2016, 5,000,000 shares of the Company's convertible preferred stock were issued and outstanding.

Common Stock

The Company is authorized to issue 750,000,000 shares of common stock at a par value of $0.0001.

As at September 30, 2016, and June 30, 2016, 464,667,527 shares of the Company's common stock were issued and outstanding, respectively.

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RELATED PARTY TRANSACTIONS

3 Months Ended

Sep. 30, 2016

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

9. RELATED PARTY TRANSACTIONS

In March 2016, the Company appointed current CEO and approved a base compensation package of $8,000 per month for CEO. As of September 30, 2016 and June 30, 2016, the Company recorded accrued salary of $56,000 and $32,000.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (POLICIES)

3 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

BASIS OF PRESENTATION

The Company's fiscal year end is June 30. The accompanying unaudited interim condensed financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and the rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial reporting and are presented in US dollars. Accordingly, these unaudited interim condensed financial statements do not include all information and footnote disclosures required for an annual set of financial statements prepared under United States generally accepted accounting principles. In the opinion of our management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the financial position, results of operations and cash flows as of September 30, 2016, and for the interim periods presented herein have been reflected in these unaudited interim condensed financial statements and the notes thereto. Interim results included herein are not necessarily indicative of the results to be expected for the fiscal year as a whole. These unaudited interim condensed financial statements should be read in conjunction with the audited financial statements and accompanying notes for the fiscal year ended June 30, 2016, included in its Annual Report on Form 10-K filed on September 30, 2016. Certain prior period amounts have been reclassified to conform to current period presentation.

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FIXED ASSETS (Tables)

3 Months Ended

Sep. 30, 2016

Property, Plant and Equipment [Abstract]

Schedule of balance of fixed assets

	September 30, 2016			June 30, 2016
Mobile applications	$	257,870		$	257,870
Accumulated depreciation		(186,319	)		(175,226	)
Fixed assets, net	$	71,551		$	82,644

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DERIVATIVE LIABILITIES (Tables)

3 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of estimated fair values of the liabilities measured on a recurring basis

Fair Value Measurements at September 30, 2016
			Quoted Prices in		Significant Other		Significant
	September 30,		Active Markets		Observable Inputs		Unobservable Inputs
	2016		(Level 1)		(Level 2)		(Level 3)
March 2015 Note	$	3,630	$	-	$	-	$	3,630
	$	3,630	$	-	$	-	$	3,630

Schedule of derivative liabilities included in the balance sheet

Fair Value Measurements Using Significant Observable Inputs (Level 3)
Balance - June 30, 2016	$	1,452
Loss on change in fair value of the derivative		2,178
Balance - September 30, 2016	$	3,630

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GOING CONCERN AND LIQUIDITY (Detail Textuals) - USD ($)	Sep. 30, 2016	Jun. 30, 2016	Sep. 30, 2015	Jun. 30, 2015
Going Concern And Liquidity [Abstract]
Cash	$ 5,340	$ 14,637	$ 50,603	$ 265
Current liabilities	62,478	$ 38,549
Working capital deficit	$ (52,471)

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FIXED ASSETS - Fixed assets balance of mobile application software (Details) - USD ($)	Sep. 30, 2016	Jun. 30, 2016
Property, Plant and Equipment [Line Items]
Accumulated depreciation	$ (186,319)	$ (175,226)
Fixed assets, net	71,551	82,644
Mobile applications
Property, Plant and Equipment [Line Items]
Fixed assets, gross	$ 257,870	$ 257,870

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FIXED ASSETS (Detail Textuals) - USD ($)	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 11,093	$ 15,615

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CONVERTIBLE LOANS (Detail Textuals) - USD ($)	Mar. 13, 2015	Sep. 30, 2016
Short-term Debt [Line Items]
Outstanding principle balance of debt		$ 0
Accrued interest		$ 454
Convertible promissory note payable | March 13, 2015 Note
Short-term Debt [Line Items]
Convertible promissory note payable, issued	$ 10,000
Interest rate	12.00%
Discount percentage of lowest traded price	50.00%
Number of trading days for lowest traded price	60 days
Conversion features, value	$ 14,552
Valuation techniques	Black Scholes valuation model
Debt discount	$ 10,000
Derivative liability	$ 4,552

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DERIVATIVE LIABILITIES (Details) - USD ($)	Sep. 30, 2016	Jun. 30, 2016
Derivatives, Fair Value [Line Items]
Derivative liabilities	$ 3,630	$ 1,452
Recurring basis | Estimated fair values
Derivatives, Fair Value [Line Items]
Derivative liabilities	3,630
Recurring basis | Estimated fair values | March 2015 Note
Derivatives, Fair Value [Line Items]
Derivative liabilities	3,630
Recurring basis | Quoted Prices in Active Markets (Level 1) | March 2015 Note
Derivatives, Fair Value [Line Items]
Derivative liabilities
Recurring basis | Significant Other Observable Inputs (Level 2) | March 2015 Note
Derivatives, Fair Value [Line Items]
Derivative liabilities
Recurring basis | Significant Unobservable Inputs (Level 3)
Derivatives, Fair Value [Line Items]
Derivative liabilities	3,630	$ 1,452
Recurring basis | Significant Unobservable Inputs (Level 3) | March 2015 Note
Derivatives, Fair Value [Line Items]
Derivative liabilities	$ 3,630

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DERIVATIVE LIABILITIES (Details 1)	3 Months Ended
	Sep. 30, 2016 USD ($)
Derivative Liability [Roll Forward]
Balance - June 30, 2016	$ 1,452
Balance - September 30, 2016	3,630
Recurring basis | Significant Unobservable Inputs (Level 3)
Derivative Liability [Roll Forward]
Balance - June 30, 2016	1,452
Loss on change in fair value of the derivative	2,178
Balance - September 30, 2016	$ 3,630

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DERIVATIVE LIABILITIES (Detail Textuals) - USD ($)	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Aggregate loss on derivatives	$ (2,178)	$ (335,503)

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COMMITMENTS AND CONTINGENCIES (Detail Textuals) - USD ($)	1 Months Ended	3 Months Ended
	Jan. 30, 2013	Sep. 30, 2016	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Lease and rental expense	$ 200	$ 607	$ 609
Leases, term of contract	3 months
Description of lease term	three-month terms, which shall be automatically extended for successive three-month periods unless there is the notice to cancel. The lease can be cancelled at any time by either party with 30 days' notice prior to expiration of an applicable term.

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SHAREHOLDERS' EQUITY (Detail Textuals) - $ / shares	3 Months Ended
	Sep. 30, 2016	Jun. 30, 2016
Equity [Abstract]
Convertible preferred stock, shares authorized	5,000,000	5,000,000
Convertible preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Convertible preferred stock, number of shares issued on conversion	1,500
Convertible preferred stock, voting rights	voting rights of 1,000 share of common stock
Convertible preferred stock, shares issued	5,000,000	5,000,000
Convertible preferred stock, shares outstanding	5,000,000	5,000,000
Common stock, shares authorized	750,000,000	750,000,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares issued	464,667,527	464,667,527
Common stock, shares outstanding	464,667,527	464,667,527

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RELATED PARTY TRANSACTIONS (Detail Textuals) - USD ($)	1 Months Ended
	Mar. 31, 2016	Sep. 30, 2016	Jun. 30, 2016
Related Party Transaction [Line Items]
Accrued salaries		$ 56,000	$ 32,000
CEO
Related Party Transaction [Line Items]
Base compensation package month	$ 8,000