0001640334-17-000296.txt : 20170214 0001640334-17-000296.hdr.sgml : 20170214 20170214152704 ACCESSION NUMBER: 0001640334-17-000296 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 48 CONFORMED PERIOD OF REPORT: 20161231 FILED AS OF DATE: 20170214 DATE AS OF CHANGE: 20170214 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: 17607908 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 December 31, 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: 469,667,527 shares outstanding as of February 9, 2017.

 

 
 
 

APPYEA, INC.

 

Index

 

Page

Part I – FINANCIAL INFORMATION

Item 1.

Financial Statements

3

Balance Sheets as of December 31, 2016 and June 30, 2016 (unaudited)

3

Statements of Operations for the three and six months ended December 31, 2016 and 2015 (unaudited)

4

Statements of Cash Flows for the three and six months ended December 31, 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

11

Item 3.

Quantitative and Qualitative Disclosure About Market Risk

14

Item 4.

Controls and Procedures

14

Part II - OTHER INFORMATION

Item 1.

Legal Proceedings

15

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

15

Item 3.

Defaults Upon Senior Securities

15

Item 4.

Mine Safety Disclosures

15

Item 5.

Other Information

15

Item 6.

Exhibits

16

SIGNATURES

17

 

 
2
Table of Contents

 

PART I. FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

APPYEA, INC.

BALANCE SHEETS

(Unaudited)

 

 

 

December 31,

 

 

June 30,

 

 

 

2016

 

 

2016

 

 

ASSETS

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$ 12,597

 

 

$ 14,637

 

Prepaid expenses

 

 

38,500

 

 

 

4,167

 

Total Current Assets

 

 

51,097

 

 

 

18,804

 

 

 

 

 

 

 

 

 

 

Fixed assets, net of accumulated depreciation of $197,210 and $175,226

 

 

60,660

 

 

 

82,644

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$ 111,757

 

 

$ 101,448

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

 

5,047

 

 

 

4,643

 

Accrued salary

 

 

80,000

 

 

 

32,000

 

Convertible loans and accrued interest, net of unamortized discounts of $17,381 and $0, respectively

 

 

109,943

 

 

 

454

 

Due to related party

 

 

1,108

 

 

 

-

 

Derivative liability

 

 

14,012

 

 

 

1,452

 

Total Current Liabilities

 

 

210,110

 

 

 

38,549

 

 

 

 

 

 

 

 

 

 

Total Liabilities

 

 

210,110

 

 

 

38,549

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity (Deficit):

 

 

 

 

 

 

 

 

Convertible preferred stock, $0.0001 par value, 5,000,000 shares authorized, 5,000,000 shares issued and outstanding at December 31, 2016 and June 30, 2016, respectively

 

 

500

 

 

 

500

 

Common stock, $0.0001 par value, 750,000,000 shares authorized, 469,667,527 and 464,667,527 shares issued and outstanding at December 31, 2016 and June 30, 2016, respectively

 

 

46,966

 

 

 

46,466

 

Additional paid-in capital

 

 

4,112,973

 

 

 

4,098,473

 

Accumulated deficit

 

 

(4,258,792 )

 

 

(4,082,540 )

Total Stockholders' Equity (Deficit)

 

 

(98,353 )

 

 

62,899

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

 

$ 111,757

 

 

$ 101,448

 

 

See accompanying notes to unaudited financial statements.

 

 
3
Table of Contents

 

APPYEA, INC.

STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three Months Ended

December 31,

 

 

Six Months Ended

December 31,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$ 139

 

 

$ 1,472

 

 

$ 541

 

 

$ 1,858

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

-

 

 

 

4,808

 

 

 

-

 

 

 

6,386

 

Legal and professional fees

 

 

83,506

 

 

 

848,739

 

 

 

86,503

 

 

 

1,726,393

 

General and administrative

 

 

33,304

 

 

 

2,949

 

 

 

61,257

 

 

 

7,663

 

Depreciation

 

 

10,891

 

 

 

22,115

 

 

 

21,984

 

 

 

37,730

 

Total Operating Expenses

 

 

127,701

 

 

 

878,611

 

 

 

169,744

 

 

 

1,778,172

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(127,562 )

 

 

(877,139 )

 

 

(169,203 )

 

 

(1,776,314 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of derivative liabilities

 

 

1,118

 

 

 

3,013

 

 

 

(1,060 )

 

 

(332,490 )

Interest expense

 

 

(5,989 )

 

 

(64,396 )

 

 

(5,989 )

 

 

(119,084 )

Net Other Income (Expense)

 

 

(4,871 )

 

 

(61,383 )

 

 

(7,049 )

 

 

(451,574 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

$ (132,433 )

 

$ (938,522 )

 

$ (176,252 )

 

$ (2,227,888 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss Per Common Share: Basic and Diluted

 

$ (0.00 )

 

$ (0.01 )

 

$ (0.00 )

 

$ (0.04 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Number of Common Shares Outstanding: Basic and Diluted

 

 

467,874,049

 

 

 

69,742,109

 

 

 

466,270,788

 

 

 

55,427,024

 

 

See accompanying notes to unaudited financial statements.

 

 
4
Table of Contents

 

APPYEA, INC.

STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Six Months Ended

December 31,

 

 

 

2016

 

 

2015

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

Net loss

 

$ (176,252 )

 

$ (2,227,888 )

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation expense

 

 

21,984

 

 

 

37,730

 

Common stock issued for services

 

 

15,000

 

 

 

327,000

 

Convertible note issued for services

 

 

25,000

 

 

 

-

 

Amortization of stock issued for prepaid services

 

 

-

 

 

 

1,358,041

 

Amortization of deferred financing cost

 

 

-

 

 

 

6,344

 

Amortization of debt discounts

 

 

4,119

 

 

 

104,080

 

Change in fair value of derivative liabilities

 

 

1,060

 

 

 

332,490

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

-

 

 

 

339

 

Prepaid expenses

 

 

(34,333 )

 

 

(6,462 )

Accounts payable

 

 

404

 

 

 

(3,244 )

Due to related party

 

 

-

 

 

 

2,688

 

Accrued salary

 

 

48,000

 

 

 

-

 

Accrued interest

 

 

1,870

 

 

 

8,660

 

Net Cash Used in Operating Activities

 

 

(93,148 )

 

 

(60,222 )

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Purchase of mobile application software

 

 

-

 

 

 

(20,000 )

Net cash used in Investing Activities

 

 

-

 

 

 

(20,000 )

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Proceeds from convertible notes payable, net of original issue discounts

 

 

90,000

 

 

 

106,750

 

Payment of deferred financing costs

 

 

-

 

 

 

(12,910 )

Proceeds from related party

 

 

11,417

 

 

 

-

 

Repayment of loan to related party

 

 

(10,309 )

 

 

-

 

Net cash provided by Financing Activities

 

 

91,108

 

 

 

93,840

 

 

 

 

 

 

 

 

 

 

Net cash increase (decrease) for period

 

 

(2,040 )

 

 

13,618

 

Cash at beginning of period

 

 

14,637

 

 

 

265

 

Cash at end of period

 

$ 12,597

 

 

$ 13,883

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL CASH FLOW INFORMATION:

 

 

 

 

 

 

 

 

Cash paid for income taxes

 

$ -

 

 

$ -

 

Cash paid for interest

 

$ -

 

 

$ -

 

 

 

 

 

 

 

 

 

 

NON CASH INVESTING AND FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Purchase of mobile application software in exchange for a convertible loan

 

$ -

 

 

$ 58,000

 

Issuance of common stock for deferred financing costs

 

$ -

 

 

$ 3,850

 

Issuance of common stock for conversion of debt and accrued interest

 

$ -

 

 

$ 118,339

 

Resolution of derivative liability upon conversion of debt

 

$ -

 

 

$ 334,907

 

Derivative liability recognized as debt discount

 

$ 11,500

 

 

$ 164,750

 

Cancelation of issuance of common stock for services

 

$ -

 

 

$ 172

 

 

See accompanying notes to unaudited financial statements.

 

 
5
Table of Contents

 

APPYEA, INC.

NOTES TO FINANCIAL STATEMENTS

December 31, 2016

(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 December 31, 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 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 December 31, 2016, the Company had cash of $12,597 and current liabilities of $210,110 and a working capital deficit of $159,013. 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 December 31, 2016, and June 30, 2016, the balance of fixed assets represented mobile application software as follows:

 

 

 

December 31,

2016

 

 

June 30,

2016

 

Mobile applications

 

$ 257,870

 

 

$ 257,870

 

Accumulated depreciation

 

 

(197,210 )

 

 

(175,226 )

Fixed assets, net

 

$ 60,660

 

 

$ 82,644

 

 

Depreciation expense for six months ended December 31, 2016, and 2015, was $21,984 and $37,730, respectively.

 

 
6
Table of Contents

 

5. CONVERTIBLE LOANS

 

At December 31, 2016 and June 30, 2016, convertible loans consisted of the following:

 

 

 

December 31,

2016

 

 

June 30,

2016

 

March 2015 Note

 

$ -

 

 

$ -

 

November 2016 Note

 

 

125,000

 

 

 

-

 

Total convertible notes payable

 

 

125,000

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Accrued interest

 

 

2,324

 

 

 

454

 

Less: Unamortized debt discount

 

 

(17,381 )

 

 

-

 

Total convertible notes

 

 

109,943

 

 

 

454

 

 

 

 

 

 

 

 

 

 

Less: current portion of convertible notes

 

 

109,943

 

 

 

454

 

Long-term convertible notes

 

$ -

 

 

$ -

 

 

During the six months ended December 31, 2016 and 2015, the Company recognized interest expense of $1,870 and $7,349 and amortization of discount of $4,119 and $104,080, respectively.

 

November 2016 Note

 

On November 15, 2016, the Company entered into four separate agreements with Greentree Financial Group, Inc., consisting of a Financial Advisory Agreement, a Loan Agreement, a Convertible Promissory Note, and a Warrant.

 

The Loan Agreement allows for the Company to borrow up to $250,000 from Greentree, which will be evidenced by various promissory notes, which will automatically mature 12 months from the date of applicable Note, will accrue interest at a rate of 12% per annum, and will include an original issuance discount of 10%. In addition, the promissory notes will be convertible at a price equal to 55% of the lowest trading price during the 10 trading days immediately prior to a conversion date. Note may not be converted prior to 6 months from its issuance. There is a 10% prepayment penalty associated with each of the promissory notes. Each promissory note conversion shall result in $1,500 being added to the principal of each promissory note converted. An initial promissory note of $100,000 and the note of $25,000 for a financial advisory service were issued on November 15, 2016.

 

The warrant issued to Greentree allows for the purchase of up to 5,000,000 shares of the Company’s common stock for a three year period, expiring on November 15, 2019, with an exercise price of $0.03 per share. The warrants also contain a cashless exercise feature, based on a cashless exercise formula.

 

The Company determined that the exercise feature of the warrants met the definition of a liability in accordance with ASC Topic No. 815 - 40, Derivatives and Hedging - Contracts in Entity's Own Stock. The Company will bifurcate the embedded conversion option in the note once the note becomes convertible and account for it as a derivative liability. The fair value of the warrants was recorded as a debt discount being amortized to interest expense over the term of the note.

 

The Company valued the warrants using the Black Scholes valuation model. The fair value of the derivative liability for the warrants during six months ended December 31, 2016 amounted to $11,500. The derivative liability was recognized as a debt discount to the notes.

 

 
7
Table of Contents

 

Warrants

 

A summary of activity during the period ended December 31, 2016 follows:

 

 

 

Warrant Outstanding

 

 

 

 

 

Weighted Average

 

 

 

Shares

 

 

Exercise Price

 

 

 

 

 

 

 

 

Outstanding, June 30, 2016

 

 

-

 

 

$ -

 

Granted

 

 

5,000,000

 

 

 

0.03

 

Exercised

 

 

-

 

 

 

-

 

Forfeited/canceled

 

 

-

 

 

 

-

 

Outstanding, December 31, 2016

 

 

5,000,000

 

 

$ 0.03

 

 

The following table summarizes information relating to outstanding and exercisable warrants as of December 31, 2016:

 

Warrants Outstanding

 

 

Warrants Exercisable

 

Number of

 

 

Weighted Average

Remaining
Contractual life

 

 

Weighted

Average

 

 

Number of

 

 

Weighted

Average

 

Shares

 

 

(in years)

 

 

Exercise Price

 

 

Shares

 

 

Exercise Price

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,000,000

 

 

 

2.87

 

 

$ 0.03

 

 

 

5,000,000

 

 

$ 0.03

 

 

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 December 31, 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 December 31, 2016, the estimated fair values of the liabilities measured on a recurring basis are as follows:

 

 

 

Six Months Ended

 

 

Year Ended

 

 

 

December 31,

2016

 

 

June 30,

2016

 

Expected term

 

2.87 - 3.00 years

 

 

0.00 - 1.00 years

 

Expected average volatility

 

553%-567

%

 

25%-1,390

%

Expected dividend yield

 

 

-

 

 

 

-

 

Risk-free interest rate

 

1.28%-1.47

%

 

0.00%-0.57

%

 

 
8
Table of Contents

 

At December 31, 2016, the estimated fair values of the liabilities measured on a recurring basis are as follows:

 

Fair Value Measurements at December 31, 2016

 

 

 

 

Quoted Prices in

 

 

Significant Other

 

 

Significant

 

 

 

December 31,

 

 

Active

Markets

 

 

Observable

Inputs

 

 

Unobservable

Inputs

 

 

 

2016

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

March 2015 Note

 

$ 1,512

 

 

$ -

 

 

$ -

 

 

$ 1,512

 

Warrants -Issued in fiscal year 2017

 

 

12,500

 

 

 

-

 

 

 

-

 

 

 

12,500

 

Total liabilities

 

$ 14,012

 

 

$ -

 

 

$ -

 

 

$ 14,012

 

 

The following table summarizes the changes in the derivative liabilities during the six months ended December 31, 2016:

 

Balance - June 30, 2016

 

$ 1,452

 

Addition of new derivatives recognized as debt discounts

 

 

11,500

 

Loss on change in fair value of the derivative

 

 

1,060

 

Balance - December 31, 2016

 

$ 14,012

 

 

The aggregate loss on derivatives during the six months ended December 31, 2016 was $1,060.

 

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 six months ended December 31, 2016 and 2015, the Company incurred $1,215 and $1,223, respectively.

 

 
9
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 December 31, 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.

 

During the period ended December 31, 2016, the Company issued 5,000,000 shares of common stock with a fair value of $15,000 for consulting services.

 

As at December 31, 2016, and June 30, 2016, 469,667,527 and 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 December 31, 2016 and June 30, 2016, the Company recorded accrued salary of $80,000 and $32,000, respectively.

 

During the period ended December 31, 2016, the Company borrowed a total amount of $11,417 from Evergreen Venture Partners LLC (“EVP”), which the CEO is the majority owner, and repaid $10,309. This loan is a non-interest bearing and due on demand. As of December 31, 2016 and June 30, 2016, the Company owed EVP, a related party $1,108 and $0, respectively.

 

10. SUBSEQUENT EVENTS

 

Subsequent to December 31, 2016, the Company drew down another $75,000 under the November 15, 2016 Loan Agreement (see Note 5).

 

 
10
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 December 31, 2016, and the results of operations for the three and six months ended December 31, 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 year 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.

 

On November 15, 2016, the Company entered into four separate agreements with Greentree Financial Group, Inc., consisting of a Financial Advisory Agreement, a Loan Agreement, a Convertible Promissory Note, and a Warrant.

 

The Loan Agreement allows for the Company to borrow up to $250,000 from Greentree, which will be evidenced by various promissory notes, which will accrue interest at a rate of 12% per annum, and will include an original issuance discount of 10%. In addition, the promissory notes will be convertible at a price equal to 55% of the lowest trading price during the 10 trading days immediately prior to a conversion date. Greentree shall not be able to convert the promissory notes in an amount that would result in the beneficial ownership of greater than 4.9% of the outstanding shares of the Company, with the exception that the limitation may be waived by Greentree with 61 days prior notice. There is a 10% prepayment penalty associated with each of the promissory notes. Each promissory note conversion shall result in $1,500 being added to the principal of each promissory note converted. An initial promissory note of $100,000 was entered into on November 15, 2016.

 

The warrant issued to Greentree allows for the purchase of up to 5,000,000 shares of the Company’s common stock for a three year period, expiring on November 15, 2019, with an exercise price of $0.03 per share. The warrants also contain a cashless exercise feature, based on a cashless exercise formula.

 

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 December 31, 2016 and 2015

 

 
11
Table of Contents

 

We generated revenue of $139 and $1,472 for the three months ended December 31, 2016 and 2015, respectively. 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 $127,701 and $878,611, for the three months ended December 31, 2016 and 2015, respectively. Operating expense decreased during the three months ended December 31, 2016 were primarily the result of decreased professional fees.

 

Other expenses totaled $4,871 for the three months ended December 31, 2016 compared to $61,383 for the three months ended December 31, 2015. The decrease in other expenses was primarily the result of a decrease in interest expense during the period ended December 31, 2016.

 

As a result of the foregoing, we incurred losses of $132,433 and $938,522 during the three months ended December 31, 2016 and 2015, respectively.

 

For the Six Months Ended December 31, 2016 and 2015

 

We generated revenue of $541 and $1,858 for the six months ended December 31, 2016 and 2015, respectively. 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 $169,744 and $1,778,172, for the six months ended December 31, 2016 and 2015, respectively. Operating expense decreases during the six months ended December 31, 2016 were primarily the result of decreased professional fees.

 

Other expenses totaled $7,049 for the six months ended December 31, 2016 compared to $451,574 for the six months ended December 31, 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 December 31, 2016.

 

As a result of the foregoing, we incurred losses of $176,252 and $2,227,888 during the six months ended December 31, 2016 and 2015, respectively.

 

Liquidity and Capital Resources

 

As of December 31, 2016, we had cash or cash equivalents of $12,597.

 

Net cash used in operating activities was $93,148 for the six months ended December 31, 2016 and net cash used in operating activities was $60,222 for the six months ended December 31, 2015. During the six months ended December 31, 2016 we incurred a net loss of $176,252, which was primarily the cause of the increase in our net cash used in operating activities. At December 31, 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 six months ended December 31, 2016 compared to net cash used in investing activities of $20,000 for the six months ended December 31, 2015.

 

Net cash provided by financing activities for the six months ended December 31, 2016 was $91,108, compared to net cash provided by financing activities of $93,840 for the six months ended December 31, 2015. During the six months ended December 31, 2016, we received $90,000 by way of loan under a convertible note payable and $11,417 loan from a related party and repaid $10,309 to a related party. During the six months ended December 31, 2015, we received $106,750 by way of loan under a convertible note payable.

 

 
12
Table of Contents

 

As of December 31, 2016, our total assets were $111,757 and our total liabilities were $210,110. Included in our assets of as of December 31, 2016 was $12,597 of cash, $38,500 in prepaid expenses, and net fixed assets of $60,660. 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.

 

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.

 

 
13
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Item 3. Quantitative and Qualitative Disclosure About Market Risk

 

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

 

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.

 

 
14
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.

 

During the period ended December 31, 2016, the Company issued 5,000,000 shares of common stock to Caro Partners LLC with a fair value of $15,000 for consulting services.

 

Item 3. Default Upon Senior Securities.

 

None.

 

Item 4. Mine Safety Disclosures.

 

Not applicable to our Company.

 

Item 5. Other Information.

 

None.

 

 
15
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.

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XBRL Instance Document

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XBRL Taxonomy Schema

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XBRL Taxonomy Calculation Linkbase

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XBRL Taxonomy Definition Linkbase

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XBRL Taxonomy Label Linkbase

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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.

 

 
16
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: February 14, 2017

By:

/s/ Douglas O. McKinnon

Douglas O. McKinnon, Chief Financial Officer,
Principal Accounting Officer, Chief Executive Officer


17

 

EX-31 2 appyea_ex31.htm CERTIFICATION appyea_ex31.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 December 31, 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.

 

 

 

 

February 14, 2017

/s/ Douglas O. McKinnon

Douglas O. McKinnon

Principal Executive Officer and Principal Financial Officer

 

EX-32 3 appyea_ex32.htm CERTIFICATION appyea_ex32.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 December 31, 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.

 

February 14, 2017

/s/ Douglas O. McKinnon

Douglas O. McKinnon

Principal Executive Officer and Principal Financial Officer

 

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NATURE OF OPERATIONS</b></p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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;">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 align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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;">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> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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;"><b>2. BASIS OF PRESENTATION</b></p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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;">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 December 31, 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 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.</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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;"><b>3. 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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;">The Loan Agreement allows for the Company to borrow up to $250,000 from Greentree, which will be evidenced by various promissory notes, which will automatically mature 12 months from the date of applicable Note, will accrue interest at a rate of 12% per annum, and will include an original issuance discount of 10%. In addition, the promissory notes will be convertible at a price equal to 55% of the lowest trading price during the 10 trading days immediately prior to a conversion date. Note may not be converted prior to 6 months from its issuance. There is a 10% prepayment penalty associated with each of the promissory notes. Each promissory note conversion shall result in $1,500 being added to the principal of each promissory note converted. 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The warrants also contain a cashless exercise feature, based on a cashless exercise formula.</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">The Company determined that the exercise feature of the warrants met the definition of a liability in accordance with ASC Topic No. 815 - 40, Derivatives and Hedging - Contracts in Entity's Own Stock. The Company will bifurcate the embedded conversion option in the note once the note becomes convertible and account for it as a derivative liability. 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valign="top"> <p style="margin: 0px 0px 0px 0in;">Balance - June 30, 2016</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%">$</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: 0px 0px 0px 0in;">Addition of new derivatives recognized as debt discounts</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%">11,500</td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> </tr> <tr bgcolor="#cceeff"> <td valign="top"> <p style="margin: 0px 0px 0px 0in;">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%">1,060</td> <td style="padding-bottom: 1px;" valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> </tr> <tr bgcolor="#ffffff"> <td valign="top"> <p style="margin: 0px 0px 0px 0in;">Balance - December 31, 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%">14,012</td> <td style="padding-bottom: 3px;" 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; text-indent: 0px; margin: 0px 0px 0px 0in; 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> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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;">The aggregate loss on derivatives during the six months ended December 31, 2016 was $1,060.</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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: 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margin: 0px 0px 0px 0in; 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> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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;">The Company has not entered into any long term leases, contracts or commitments.</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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;"><i>Legal</i></p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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;">To the best of the Company's knowledge and belief, no legal proceedings are currently pending or threatened.</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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;"><i>Rent</i></p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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> <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; 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;">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. 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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> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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;">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; text-indent: 0px; margin: 0px 0px 0px 0in; 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> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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;">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; text-indent: 0px; margin: 0px 0px 0px 0in; 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> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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;">As at December 31, 2016, and June 30, 2016, 5,000,000 shares of the Company's convertible preferred stock were issued and outstanding.</p> <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; 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> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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;"><i>Common Stock</i></p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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;">The Company is authorized to issue 750,000,000 shares of common stock at a par value of $0.0001.</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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;">During the period ended December 31, 2016, the Company issued 5,000,000 shares of common stock with a fair value of $15,000 for consulting services.</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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;">As at December 31, 2016, and June 30, 2016, 469,667,527 and 464,667,527 shares of the Company's common stock were issued and outstanding, respectively.</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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;"><b>9. RELATED PARTY TRANSACTIONS</b></p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px 0px 0px 0in; 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;">In March 2016, the Company appointed current CEO and approved a base compensation package of $8,000 per month for CEO. 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The accompanying unaudited interim condensed financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and the rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial reporting and are presented in US dollars. Accordingly, these unaudited interim condensed financial statements do not include all information and footnote disclosures required for an annual set of financial statements prepared under United States generally accepted accounting principles. In the opinion of our management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the financial position, results of operations and cash flows as of December 31, 2016, and for the interim periods presented herein have been reflected in these unaudited interim condensed financial statements and the notes thereto. 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Document and Entity Information - shares
6 Months Ended
Dec. 31, 2016
Feb. 09, 2017
Document And Entity Information [Abstract]    
Entity Registrant Name APPYEA, INC  
Entity Central Index Key 0001568969  
Trading Symbol apyp  
Current Fiscal Year End Date --06-30  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   469,667,527
Document Type 10-Q  
Document Period End Date Dec. 31, 2016  
Amendment Flag false  
Document Fiscal Year Focus 2017  
Document Fiscal Period Focus Q2  
XML 11 R2.htm IDEA: XBRL DOCUMENT v3.6.0.2
BALANCE SHEETS - USD ($)
Dec. 31, 2016
Jun. 30, 2016
Current Assets:    
Cash and cash equivalents $ 12,597 $ 14,637
Prepaid expenses 38,500 4,167
Total Current Assets 51,097 18,804
Fixed assets, net of accumulated depreciation of $197,210 and $175,226 60,660 82,644
TOTAL ASSETS 111,757 101,448
Current Liabilities:    
Accounts payable 5,047 4,643
Accrued salary 80,000 32,000
Convertible loans and accrued interest, net of unamortized discounts of $17,381 and $0, respectively 109,943 454
Due to related party 1,108
Derivative liability 14,012 1,452
Total Current Liabilities 210,110 38,549
Total Liabilities 210,110 38,549
Stockholders' Equity (Deficit):    
Convertible preferred stock, $0.0001 par value, 5,000,000 shares authorized, 5,000,000 shares issued and outstanding at December 31, 2016 and June 30, 2016, respectively 500 500
Common stock, $0.0001 par value, 750,000,000 shares authorized, 469,667,527 and 464,667,527 shares issued and outstanding at December 31, 2016 and June 30, 2016, respectively 46,966 46,466
Additional paid-in capital 4,112,973 4,098,473
Accumulated deficit (4,258,792) (4,082,540)
Total Stockholders' Equity (Deficit) (98,353) 62,899
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) $ 111,757 $ 101,448
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BALANCE SHEETS (Parentheticals) - USD ($)
Dec. 31, 2016
Jun. 30, 2016
Statement of Financial Position [Abstract]    
Accumulated depreciation of fixed assets (in dollars) $ 197,210 $ 175,226
Unamortized discounts (in dollars) $ 17,381 $ 0
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 469,667,527 464,667,527
Common stock, shares outstanding 469,667,527 464,667,527
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STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Income Statement [Abstract]        
Revenues $ 139 $ 1,472 $ 541 $ 1,858
Operating Expenses        
Sales and marketing 4,808 6,386
Legal and professional fees 83,506 848,739 86,503 1,726,393
General and administrative 33,304 2,949 61,257 7,663
Depreciation 10,891 22,115 21,984 37,730
Total Operating Expenses 127,701 878,611 169,744 1,778,172
Loss from operations (127,562) (877,139) (169,203) (1,776,314)
Other Income (Expense)        
Change in fair value of derivative liabilities 1,118 3,013 (1,060) (332,490)
Interest expense (5,989) (64,396) (5,989) (119,084)
Net Other Income (Expense) (4,871) (61,383) (7,049) (451,574)
Net Loss $ (132,433) $ (938,522) $ (176,252) $ (2,227,888)
Net Loss Per Common Share: Basic and Diluted (in dollars per share) $ (0.00) $ (0.01) $ (0.00) $ (0.04)
Weighted Average Number of Common Shares Outstanding: Basic and Diluted (in shares) 467,874,049 69,742,109 466,270,788 55,427,024