0001640334-16-001995.txt : 20161114 0001640334-16-001995.hdr.sgml : 20161111 20161114173510 ACCESSION NUMBER: 0001640334-16-001995 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 41 CONFORMED PERIOD OF REPORT: 20160930 FILED AS OF DATE: 20161114 DATE AS OF CHANGE: 20161114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: APPYEA, INC CENTRAL INDEX KEY: 0001568969 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROGRAMMING SERVICES [7371] IRS NUMBER: 461496846 STATE OF INCORPORATION: SD FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-55403 FILM NUMBER: 161996272 BUSINESS ADDRESS: STREET 1: 777 MAIN STREET STREET 2: SUITE 600 CITY: FORT WORTH STATE: TX ZIP: 76102 BUSINESS PHONE: 817 887 8142 MAIL ADDRESS: STREET 1: 777 MAIN STREET STREET 2: SUITE 600 CITY: FORT WORTH STATE: TX ZIP: 76102 10-Q 1 appyea_10q.htm FORM 10-Q appyea_10q.htm

 

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

 
 
2
 

 

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.

 
 
3
Table of Contents

 

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.

 
 
4
Table of Contents

 

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.

 
 
5
Table of Contents

 

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.

 
 
6
Table of Contents

 

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
Table of Contents

 

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.

 
 
8
Table of Contents


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
Table of Contents

 

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
Table of Contents

 

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
Table of Contents

 

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
Table of Contents

 

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.

 
 
13
Table of Contents

 

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.

 
 
14
Table of Contents

 

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
Table of Contents

 

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
 

 

 

16

 

EX-31.1 2 exhibit31_1.htm EXHIBIT 31.1 exhibit31_1.htm

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 3 exhibit32_1.htm EXHIBIT 32.1 exhibit32_1.htm

 

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

 

EX-101.INS 4 apyp-20160930.xml XBRL INSTANCE DOCUMENT 0001568969 2013-01-01 2013-01-30 0001568969 us-gaap:ConvertibleNotesPayableMember apyp:DebtInstrumentIssueDate13March2015Member 2015-03-13 0001568969 us-gaap:ConvertibleNotesPayableMember apyp:DebtInstrumentIssueDate13March2015Member 2015-03-01 2015-03-13 0001568969 2015-07-01 2015-09-30 0001568969 us-gaap:ChiefExecutiveOfficerMember 2016-03-01 2016-03-31 0001568969 2016-06-30 0001568969 apyp:MobileApplicationsMember 2016-06-30 0001568969 2016-07-01 2016-09-30 0001568969 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2016-07-01 2016-09-30 0001568969 2016-09-30 0001568969 apyp:MobileApplicationsMember 2016-09-30 0001568969 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2016-09-30 0001568969 us-gaap:FairValueMeasurementsRecurringMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2016-09-30 0001568969 us-gaap:FairValueMeasurementsRecurringMember us-gaap:EstimateOfFairValueFairValueDisclosureMember apyp:DebtInstrumentIssue13March2015Member 2016-09-30 0001568969 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member apyp:DebtInstrumentIssue13March2015Member 2016-09-30 0001568969 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member apyp:DebtInstrumentIssue13March2015Member 2016-09-30 0001568969 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member apyp:DebtInstrumentIssue13March2015Member 2016-09-30 0001568969 2016-11-08 0001568969 2015-06-30 0001568969 2015-09-30 0001568969 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2016-06-30 xbrli:shares iso4217:USD iso4217:USDxbrli:shares xbrli:pure APPYEA, INC 0001568969 apyp --06-30 Smaller Reporting Company 464667527 10-Q 2016-09-30 false 2017 Q1 14637 5340 265 50603 4167 4667 18804 10007 82644 71551 101448 81558 4643 2394 1452 3630 3630 3630 3630 3630 1452 454 454 38549 62478 38549 62478 500 500 46466 46466 4098473 4098473 -4082540 -4126359 62899 19080 101448 81558 0.0001 0.0001 5000000 5000000 5000000 5000000 5000000 5000000 0.0001 0.0001 750000000 750000000 464667527 464667527 464667527 464667527 386 402 386 402 1578 877654 2997 4714 27953 15615 11093 899561 42043 -899175 -41641 -335503 -2178 54688 -390191 -2178 -1289366 -43819 -0.03 -0.00 41384608 464667527 327000 536376 1649 50102 -135 -3224 500 -3677 -2249 2937 -20502 -9297 81750 10910 70840 50338 -9297 3850 43607 134866 81750 <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;"><b>1. NATURE OF OPERATIONS</b></p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">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.</p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">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.</p> <div> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;"><b>2. BASIS OF PRESENTATION</b></p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <div align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">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.</div> </div> <div> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;"><b>3. GOING CONCERN AND LIQUIDITY</b></p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">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&#8217;s ability to continue as a going concern.</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <div align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">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.</div> </div> <div> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;"><b>4. FIXED ASSETS</b></p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">As at September 30, 2016, and June 30, 2016, the balance of fixed assets represented a&#160;vehicle and&#160;mobile application software as follows:</p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="text-align: justify; width: 100%; font: 10pt 'times new roman'; font-stretch: normal;" border="0" cellspacing="0" cellpadding="0"> <tr> <td valign="bottom"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom"> <p style="margin: 0px;">&#160;</p> </td> <td align="center" style="border-bottom: black 1px solid;" valign="bottom" width="9%" colspan="2"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>September 30,<br />2016</strong></p> </td> <td style="padding-bottom: 1px;" valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td align="center" style="border-bottom: black 1px solid;" valign="bottom" width="9%" colspan="2"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>June 30,<br />2016</strong></p> </td> <td style="padding-bottom: 1px;" valign="bottom"> <p style="margin: 0px;">&#160;</p> </td> </tr> <tr bgcolor="#cceeff"> <td valign="top"> <p style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;">Mobile applications</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="9%">257,870</td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="9%">257,870</td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> </tr> <tr bgcolor="#ffffff"> <td valign="top"> <p style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;">Accumulated depreciation</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: black 1px solid;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td align="right" style="border-bottom: black 1px solid;" valign="bottom" width="9%">(186,319</td> <td style="padding-bottom: 1px;" valign="bottom" width="1%">)</td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: black 1px solid;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td align="right" style="border-bottom: black 1px solid;" valign="bottom" width="9%">(175,226</td> <td style="padding-bottom: 1px;" valign="bottom" width="1%">)</td> </tr> <tr bgcolor="#cceeff"> <td valign="top"> <p style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;">Fixed assets, net</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: black 1px solid;" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: black 1px solid;" valign="bottom" width="9%">71,551</td> <td style="padding-bottom: 1px;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: black 1px solid;" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: black 1px solid;" valign="bottom" width="9%">82,644</td> <td style="padding-bottom: 1px;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> </tr> </table> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <div align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">Depreciation expense for three months ended September 30, 2016, and 2015, was $11,093 and $15,615, respectively.</div> </div> <div> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;"><b>5. CONVERTIBLE LOANS</b></p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">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.</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <div align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">As of September 30, 2016, the outstanding principal balance of the note was $0 and the note had accrued interest of $454.</div> </div> <div > <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;"><b>6. DERIVATIVE LIABILITIES</b></p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">The Company analyzed the conversion option for derivative accounting consideration under ASC 815,&#160;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.</p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">Fair Value Assumptions Used in Accounting for Derivative Liabilities.</p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">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.</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">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.</p> <div style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;" >&#160;&#160;</div> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">At September 30, 2016, the estimated fair values of the liabilities measured on a recurring basis are as follows:</p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="text-align: justify; width: 100%; font: 10pt 'times new roman'; font-stretch: normal;" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-bottom: black 1px solid;" valign="top" colspan="16"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><b>Fair Value Measurements at September 30, 2016</b></p> </td> <td></td> </tr> <tr> <td valign="bottom"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom"> <p style="margin: 0px;">&#160;</p> </td> <td align="center" valign="bottom" colspan="2"></td> <td valign="bottom"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom"> <p style="margin: 0px;">&#160;</p> </td> <td align="center" valign="bottom" colspan="2"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>Quoted Prices in</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td align="center" valign="bottom" colspan="2"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>Significant Other</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td align="center" valign="bottom" colspan="2"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>Significant</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> </tr> <tr> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td align="center" valign="bottom" colspan="2"><strong>September 30,</strong></td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td align="center" valign="bottom" colspan="2"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>Active Markets</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td align="center" valign="bottom" colspan="2"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>Observable Inputs</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td align="center" valign="bottom" colspan="2"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>Unobservable Inputs</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> </tr> <tr> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td align="center" style="border-bottom: black 1px solid;" valign="bottom" width="9%" colspan="2"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>2016</strong></p> </td> <td style="padding-bottom: 1px;" valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td align="center" style="border-bottom: black 1px solid;" valign="bottom" width="9%" colspan="2"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>(Level 1)</strong></p> </td> <td style="padding-bottom: 1px;" valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td align="center" style="border-bottom: black 1px solid;" valign="bottom" width="9%" colspan="2"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>(Level 2)</strong></p> </td> <td style="padding-bottom: 1px;" valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td align="center" style="border-bottom: black 1px solid;" valign="bottom" width="9%" colspan="2"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>(Level 3)</strong></p> </td> <td style="padding-bottom: 1px;" valign="bottom"> <p style="margin: 0px;">&#160;</p> </td> </tr> <tr> <td> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td align="right" valign="bottom" width="9%" colspan="2"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td align="right" valign="bottom" width="9%" colspan="2"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td align="right" valign="bottom" width="9%" colspan="2"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td align="right" valign="bottom" width="9%" colspan="2"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> </tr> <tr bgcolor="#cceeff"> <td valign="top"> <p style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;">March 2015 Note</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: black 1px solid;" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: black 1px solid;" valign="bottom" width="9%">3,630</td> <td style="padding-bottom: 1px;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: black 1px solid;" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: black 1px solid;" valign="bottom" width="9%">-</td> <td style="padding-bottom: 1px;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: black 1px solid;" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: black 1px solid;" valign="bottom" width="9%">-</td> <td style="padding-bottom: 1px;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: black 1px solid;" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: black 1px solid;" valign="bottom" width="9%">3,630</td> <td style="padding-bottom: 1px;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> </tr> <tr bgcolor="#ffffff"> <td> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: black 3px double;" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: black 3px double;" valign="bottom" width="9%">3,630</td> <td style="padding-bottom: 3px;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: black 3px double;" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: black 3px double;" valign="bottom" width="9%">-</td> <td style="padding-bottom: 3px;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: black 3px double;" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: black 3px double;" valign="bottom" width="9%">-</td> <td style="padding-bottom: 3px;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: black 3px double;" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: black 3px double;" valign="bottom" width="9%">3,630</td> <td style="padding-bottom: 3px;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> </tr> </table> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">The following table summarizes the changes in the derivative liabilities during the three months ended September 30, 2016:&#160;</p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="text-align: justify; width: 100%; font: 10pt 'times new roman'; font-stretch: normal;" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-bottom: 1px solid;" valign="bottom" colspan="4"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>Fair Value Measurements Using Significant Observable Inputs (Level 3)</strong></p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> </tr> <tr> <td> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td align="right" valign="bottom" width="9%" colspan="2"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> </tr> <tr bgcolor="#cceeff"> <td valign="top"> <p style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;">Balance - June 30, 2016</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="9%">1,452</td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> </tr> <tr bgcolor="#ffffff"> <td valign="top"> <p style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;">Loss on change in fair value of the derivative</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: 1px solid;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td align="right" style="border-bottom: 1px solid;" valign="bottom" width="9%">2,178</td> <td style="padding-bottom: 1px;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> </tr> <tr bgcolor="#cceeff"> <td valign="top"> <p style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;">Balance - September 30, 2016</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: 3px double;" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: 3px double;" valign="bottom" width="9%">3,630</td> <td style="padding-bottom: 3px;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> </tr> </table> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <div align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">The aggregate loss on derivatives during the three months ended September 30, 2016 was $2,178.</div> </div> <div> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;"><b>7. COMMITMENTS AND CONTINGENCIES</b></p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;"><i>Leases and Long term Contracts</i></p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">The Company has not entered into any long term leases, contracts or commitments.</p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;"><i>Legal</i></p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">To the best of the Company's knowledge and belief, no legal proceedings are currently pending or threatened.&#160;<i>Rent</i></p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <div align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">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&#8217; 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.</div> </div> <div> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;"><b>8. SHAREHOLDERS' EQUITY</b></p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;"><i>Convertible Preferred Stock</i></p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">The Company is authorized to issue 5,000,000 shares of convertible preferred stock at a par value of $0.0001.</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">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.</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">As at September 30, 2016, and June 30, 2016, 5,000,000 shares of the Company's convertible preferred stock were issued and outstanding.</p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;"><i>Common Stock</i></p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">The Company is authorized to issue 750,000,000 shares of common stock at a par value of $0.0001.</p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <div align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">As at September 30, 2016, and June 30, 2016, 464,667,527 shares of the Company's common stock were issued and outstanding, respectively.</div> </div> <div> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;"><b>9.&#160;RELATED PARTY TRANSACTIONS</b></p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <div align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">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.</div> </div> <div align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">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.</div> <div> <table style="text-align: justify; width: 100%; font: 10pt 'times new roman'; font-stretch: normal;" border="0" cellspacing="0" cellpadding="0"> <tr> <td valign="bottom"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom"> <p style="margin: 0px;">&#160;</p> </td> <td align="center" style="border-bottom: black 1px solid;" valign="bottom" width="9%" colspan="2"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>September 30,<br />2016</strong></p> </td> <td style="padding-bottom: 1px;" valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td align="center" style="border-bottom: black 1px solid;" valign="bottom" width="9%" colspan="2"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>June 30,<br />2016</strong></p> </td> <td style="padding-bottom: 1px;" valign="bottom"> <p style="margin: 0px;">&#160;</p> </td> </tr> <tr bgcolor="#cceeff"> <td valign="top"> <p style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;">Mobile applications</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="9%">257,870</td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="9%">257,870</td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> </tr> <tr bgcolor="#ffffff"> <td valign="top"> <p style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;">Accumulated depreciation</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: black 1px solid;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td align="right" style="border-bottom: black 1px solid;" valign="bottom" width="9%">(186,319</td> <td style="padding-bottom: 1px;" valign="bottom" width="1%">)</td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: black 1px solid;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td align="right" style="border-bottom: black 1px solid;" valign="bottom" width="9%">(175,226</td> <td style="padding-bottom: 1px;" valign="bottom" width="1%">)</td> </tr> <tr bgcolor="#cceeff"> <td valign="top"> <p style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;">Fixed assets, net</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: black 1px solid;" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: black 1px solid;" valign="bottom" width="9%">71,551</td> <td style="padding-bottom: 1px;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: black 1px solid;" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: black 1px solid;" valign="bottom" width="9%">82,644</td> <td style="padding-bottom: 1px;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> </tr> </table> </div> <div> <table style="text-align: justify; width: 100%; font: 10pt 'times new roman'; font-stretch: normal;" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-bottom: black 1px solid;" valign="top" colspan="16"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><b>Fair Value Measurements at September 30, 2016</b></p> </td> <td></td> </tr> <tr> <td valign="bottom"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom"> <p style="margin: 0px;">&#160;</p> </td> <td align="center" valign="bottom" colspan="2"></td> <td valign="bottom"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom"> <p style="margin: 0px;">&#160;</p> </td> <td align="center" valign="bottom" colspan="2"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>Quoted Prices in</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td align="center" valign="bottom" colspan="2"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>Significant Other</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td align="center" valign="bottom" colspan="2"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>Significant</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> </tr> <tr> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td align="center" valign="bottom" colspan="2"><strong>September 30,</strong></td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td align="center" valign="bottom" colspan="2"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>Active Markets</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td align="center" valign="bottom" colspan="2"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>Observable Inputs</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td align="center" valign="bottom" colspan="2"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>Unobservable Inputs</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> </tr> <tr> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td align="center" style="border-bottom: black 1px solid;" valign="bottom" width="9%" colspan="2"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>2016</strong></p> </td> <td style="padding-bottom: 1px;" valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td align="center" style="border-bottom: black 1px solid;" valign="bottom" width="9%" colspan="2"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>(Level 1)</strong></p> </td> <td style="padding-bottom: 1px;" valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td align="center" style="border-bottom: black 1px solid;" valign="bottom" width="9%" colspan="2"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>(Level 2)</strong></p> </td> <td style="padding-bottom: 1px;" valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td valign="bottom"> <p style="margin: 0px;"><strong>&#160;</strong></p> </td> <td align="center" style="border-bottom: black 1px solid;" valign="bottom" width="9%" colspan="2"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>(Level 3)</strong></p> </td> <td style="padding-bottom: 1px;" valign="bottom"> <p style="margin: 0px;">&#160;</p> </td> </tr> <tr> <td> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td align="right" valign="bottom" width="9%" colspan="2"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td align="right" valign="bottom" width="9%" colspan="2"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td align="right" valign="bottom" width="9%" colspan="2"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td align="right" valign="bottom" width="9%" colspan="2"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> </tr> <tr bgcolor="#cceeff"> <td valign="top"> <p style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;">March 2015 Note</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: black 1px solid;" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: black 1px solid;" valign="bottom" width="9%">3,630</td> <td style="padding-bottom: 1px;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: black 1px solid;" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: black 1px solid;" valign="bottom" width="9%">-</td> <td style="padding-bottom: 1px;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: black 1px solid;" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: black 1px solid;" valign="bottom" width="9%">-</td> <td style="padding-bottom: 1px;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: black 1px solid;" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: black 1px solid;" valign="bottom" width="9%">3,630</td> <td style="padding-bottom: 1px;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> </tr> <tr bgcolor="#ffffff"> <td> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: black 3px double;" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: black 3px double;" valign="bottom" width="9%">3,630</td> <td style="padding-bottom: 3px;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: black 3px double;" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: black 3px double;" valign="bottom" width="9%">-</td> <td style="padding-bottom: 3px;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: black 3px double;" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: black 3px double;" valign="bottom" width="9%">-</td> <td style="padding-bottom: 3px;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: black 3px double;" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: black 3px double;" valign="bottom" width="9%">3,630</td> <td style="padding-bottom: 3px;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> </tr> </table> </div> <div> <table style="text-align: justify; width: 100%; font: 10pt 'times new roman'; font-stretch: normal;" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-bottom: 1px solid;" valign="bottom" colspan="4"> <p align="center" style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;"><strong>Fair Value Measurements Using Significant Observable Inputs (Level 3)</strong></p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> </tr> <tr> <td> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td align="right" valign="bottom" width="9%" colspan="2"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> </tr> <tr bgcolor="#cceeff"> <td valign="top"> <p style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;">Balance - June 30, 2016</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="9%">1,452</td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> </tr> <tr bgcolor="#ffffff"> <td valign="top"> <p style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;">Loss on change in fair value of the derivative</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: 1px solid;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td align="right" style="border-bottom: 1px solid;" valign="bottom" width="9%">2,178</td> <td style="padding-bottom: 1px;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> </tr> <tr bgcolor="#cceeff"> <td valign="top"> <p style="margin-top: 0px; margin-bottom: 0px; margin-right: 0px;">Balance - September 30, 2016</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td style="border-bottom: 3px double;" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: 3px double;" valign="bottom" width="9%">3,630</td> <td style="padding-bottom: 3px;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> </tr> </table> </div> -52471 257870 257870 175226 186319 454 10000 10000 0.12 0.50 P60D 0 14552 Black Scholes valuation model 4552 2178 200 609 607 P3M 1500 voting rights of 1,000 share of common stock 8000 32000 56000 24000 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. EX-101.SCH 5 apyp-20160930.xsd XBRL TAXONOMY EXTENSION SCHEMA 001 - Document - Document and Entity Information link:presentationLink link:definitionLink link:calculationLink 002 - Statement - BALANCE SHEETS link:presentationLink link:definitionLink link:calculationLink 003 - Statement - BALANCE SHEETS (Parentheticals) link:presentationLink link:definitionLink link:calculationLink 004 - Statement - STATEMENTS OF OPERATIONS (Unaudited) link:presentationLink link:definitionLink link:calculationLink 005 - Statement - STATEMENTS OF CASH FLOWS (Unaudited) link:presentationLink link:definitionLink link:calculationLink 006 - Disclosure - NATURE OF OPERATIONS link:presentationLink link:definitionLink link:calculationLink 007 - Disclosure - BASIS OF PRESENTATION link:presentationLink link:definitionLink link:calculationLink 008 - Disclosure - GOING CONCERN AND LIQUIDITY link:presentationLink link:definitionLink link:calculationLink 009 - Disclosure - FIXED ASSETS link:presentationLink link:definitionLink link:calculationLink 010 - Disclosure - CONVERTIBLE LOANS link:presentationLink link:definitionLink link:calculationLink 011 - Disclosure - DERIVATIVE LIABILITIES link:presentationLink link:definitionLink link:calculationLink 012 - Disclosure - COMMITMENTS AND CONTINGENCIES link:presentationLink link:definitionLink link:calculationLink 013 - Disclosure - SHAREHOLDERS' EQUITY link:presentationLink link:definitionLink link:calculationLink 014 - Disclosure - RELATED PARTY TRANSACTIONS link:presentationLink link:definitionLink link:calculationLink 015 - Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (POLICIES) link:presentationLink link:definitionLink link:calculationLink 016 - Disclosure - FIXED ASSETS (Tables) link:presentationLink link:definitionLink link:calculationLink 017 - Disclosure - DERIVATIVE LIABILITIES (Tables) link:presentationLink link:definitionLink link:calculationLink 018 - Disclosure - GOING CONCERN AND LIQUIDITY (Detail Textuals) link:presentationLink link:definitionLink link:calculationLink 019 - Disclosure - FIXED ASSETS - Fixed assets balance of mobile application software (Details) link:presentationLink link:definitionLink link:calculationLink 020 - Disclosure - FIXED ASSETS (Detail Textuals) link:presentationLink link:definitionLink link:calculationLink 021 - Disclosure - CONVERTIBLE LOANS (Detail Textuals) link:presentationLink link:definitionLink link:calculationLink 022 - Disclosure - DERIVATIVE LIABILITIES (Details) link:presentationLink link:definitionLink link:calculationLink 023 - Disclosure - DERIVATIVE LIABILITIES (Details 1) link:presentationLink link:definitionLink link:calculationLink 024 - Disclosure - DERIVATIVE LIABILITIES (Detail Textuals) link:presentationLink link:definitionLink link:calculationLink 025 - Disclosure - COMMITMENTS AND CONTINGENCIES (Detail Textuals) link:presentationLink link:definitionLink link:calculationLink 026 - Disclosure - SHAREHOLDERS' EQUITY (Detail Textuals) link:presentationLink link:definitionLink link:calculationLink 027 - Disclosure - RELATED PARTY TRANSACTIONS (Detail Textuals) link:presentationLink link:definitionLink link:calculationLink EX-101.CAL 6 apyp-20160930_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE EX-101.DEF 7 apyp-20160930_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE EX-101.LAB 8 apyp-20160930_lab.xml XBRL TAXONOMY EXTENSION LABEL LINKBASE EX-101.PRE 9 apyp-20160930_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE XML 10 R1.htm IDEA: XBRL DOCUMENT v3.5.0.2
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  
XML 11 R2.htm IDEA: XBRL DOCUMENT v3.5.0.2
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
XML 12 R3.htm IDEA: XBRL DOCUMENT v3.5.0.2
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
XML 13 R4.htm IDEA: XBRL DOCUMENT v3.5.0.2
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
XML 14 R5.htm IDEA: XBRL DOCUMENT v3.5.0.2
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
XML 15 R6.htm IDEA: XBRL DOCUMENT v3.5.0.2
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.

XML 16 R7.htm IDEA: XBRL DOCUMENT v3.5.0.2
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.
XML 17 R8.htm IDEA: XBRL DOCUMENT v3.5.0.2
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.
XML 18 R9.htm IDEA: XBRL DOCUMENT v3.5.0.2
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.
XML 19 R10.htm IDEA: XBRL DOCUMENT v3.5.0.2
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.
XML 20 R11.htm IDEA: XBRL DOCUMENT v3.5.0.2
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.
XML 21 R12.htm IDEA: XBRL DOCUMENT v3.5.0.2
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.
XML 22 R13.htm IDEA: XBRL DOCUMENT v3.5.0.2
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.
XML 23 R14.htm IDEA: XBRL DOCUMENT v3.5.0.2
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.
XML 24 R15.htm IDEA: XBRL DOCUMENT v3.5.0.2
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.
XML 25 R16.htm IDEA: XBRL DOCUMENT v3.5.0.2
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

 

XML 26 R17.htm IDEA: XBRL DOCUMENT v3.5.0.2
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

 

XML 27 R18.htm IDEA: XBRL DOCUMENT v3.5.0.2
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)      
XML 28 R19.htm IDEA: XBRL DOCUMENT v3.5.0.2
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
XML 29 R20.htm IDEA: XBRL DOCUMENT v3.5.0.2
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
XML 30 R21.htm IDEA: XBRL DOCUMENT v3.5.0.2
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  
XML 31 R22.htm IDEA: XBRL DOCUMENT v3.5.0.2
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  
XML 32 R23.htm IDEA: XBRL DOCUMENT v3.5.0.2
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
XML 33 R24.htm IDEA: XBRL DOCUMENT v3.5.0.2
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)
XML 34 R25.htm IDEA: XBRL DOCUMENT