2023 Q1 Form 10-K Financial Statement

#000149315223009907 Filed on March 31, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022
Revenue $0.00 $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $430.0K $430.0K $2.033M
YoY Change -5.49% 219.15%
% of Gross Profit
Research & Development $9.000K $60.00K $129.0K
YoY Change -64.0% 59.26%
% of Gross Profit
Depreciation & Amortization $6.000K $0.00 $200.00
YoY Change 0.0% -100.0% -99.0%
% of Gross Profit
Operating Expenses $9.000K $490.0K $2.162M
YoY Change -98.13% 201.11%
Operating Profit -$436.0K -$2.162M
YoY Change -9.17% 201.11%
Interest Expense -$20.00K $10.00K -$50.00K
YoY Change 400.0%
% of Operating Profit
Other Income/Expense, Net -$19.00K -$90.00K -$52.00K
YoY Change -218.75% 766.67%
Pretax Income -$290.0K -$570.0K -$1.300M
YoY Change -59.12%
Income Tax
% Of Pretax Income
Net Earnings -$289.0K -$570.0K -$1.304M
YoY Change -138.43% -58.98%
Net Earnings / Revenue
Basic Earnings Per Share $0.00 -$0.01
Diluted Earnings Per Share $0.00 $0.00 -$0.01
COMMON SHARES
Basic Shares Outstanding 228.8M shares 220.9M shares 219.6M shares
Diluted Shares Outstanding 225.2M shares 219.6M shares

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $100.0K $60.00K $60.00K
YoY Change -71.43%
Cash & Equivalents $100.0K $60.00K $60.00K
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables $20.00K $20.00K $20.00K
Other Receivables $18.00K $19.00K $0.00
Total Short-Term Assets $118.0K $79.00K $80.00K
YoY Change -77.81% -77.78%
LONG-TERM ASSETS
Property, Plant & Equipment $1.000K $2.000K $0.00
YoY Change 0.0%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $119.0K $126.0K $130.0K
YoY Change -16.0% -13.33%
TOTAL ASSETS
Total Short-Term Assets $118.0K $79.00K $80.00K
Total Long-Term Assets $119.0K $126.0K $130.0K
Total Assets $237.0K $205.0K $210.0K
YoY Change -59.49% -58.82%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $40.00K $70.00K $70.00K
YoY Change 133.33%
Accrued Expenses $420.0K $62.00K $330.0K
YoY Change 376.92% 560.0%
Deferred Revenue
YoY Change
Short-Term Debt $620.0K $693.0K $810.0K
YoY Change 518.75% 252.17%
Long-Term Debt Due $1.440M $1.530M $1.530M
YoY Change -20.73%
Total Short-Term Liabilities $2.648M $2.768M $2.770M
YoY Change 9.8% 9.92%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0%
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $0.00 $0.00
YoY Change -100.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.648M $2.768M $2.770M
Total Long-Term Liabilities $0.00 $0.00
Total Liabilities $2.648M $2.768M $2.750M
YoY Change -5.72% -5.82%
SHAREHOLDERS EQUITY
Retained Earnings -$4.798M -$4.509M
YoY Change 40.69%
Common Stock $22.00K $21.00K
YoY Change 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$2.397M -$2.549M -$2.550M
YoY Change
Total Liabilities & Shareholders Equity $237.0K $205.0K $210.0K
YoY Change -59.49% -58.82%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022
OPERATING ACTIVITIES
Net Income -$289.0K -$570.0K -$1.304M
YoY Change -138.43% -58.98%
Depreciation, Depletion And Amortization $6.000K $0.00 $200.00
YoY Change 0.0% -100.0% -99.0%
Cash From Operating Activities -$97.00K -$90.00K -$595.0K
YoY Change -23.62% 12.5% 254.17%
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00
YoY Change -100.0% -100.0%
Cash From Investing Activities $0.00
YoY Change -100.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00
YoY Change -100.0%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $141.0K 50.00K $442.0K
YoY Change -28.57% 125.51%
NET CHANGE
Cash From Operating Activities -$97.00K -90.00K -$595.0K
Cash From Investing Activities 0.000
Cash From Financing Activities $141.0K 50.00K $442.0K
Net Change In Cash $40.00K -40.00K -$146.0K
YoY Change -131.5% -125.0% -174.87%
FREE CASH FLOW
Cash From Operating Activities -$97.00K -$90.00K -$595.0K
Capital Expenditures
Free Cash Flow -$595.0K
YoY Change 247.95%

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206000 usd
CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
11000 usd
CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
60000 usd
CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
206000 usd
CY2021 us-gaap Stock Issued1
StockIssued1
163000 usd
CY2021 APYP Working Capital Excluding Cash And Cash Equivalents Net
WorkingCapitalExcludingCashAndCashEquivalentsNet
-129000 usd
CY2021 us-gaap Debt Issuance Costs Incurred During Noncash Or Partial Noncash Transaction
DebtIssuanceCostsIncurredDuringNoncashOrPartialNoncashTransaction
2752000 usd
CY2021 APYP Cost Of Reverse Merger
CostOfReverseMerger
-2457000 usd
CY2021 APYP Shares Issued In Reverse Merger
SharesIssuedInReverseMerger
4000 usd
CY2021 APYP Cash Acquired In Reverse Merger
CashAcquiredInReverseMerger
170000 usd
CY2022 us-gaap Nature Of Operations
NatureOfOperations
<p id="xdx_806_eus-gaap--NatureOfOperations_zAeK6ow6Vbt4" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 1</b></span> - <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_820_zgFS8TsPCYEc">GENERAL</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.8in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 no operating history. On November 1, 2021 the Company was redomiciled in the State of Nevada.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 56.7pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.8in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s common stock is traded on the OTC Markets, OTCQB tier, under the symbol “APYP”.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 56.7pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 56.7pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Reverse merger</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 56.7pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.8in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In anticipation of the reverse merger described below, on July 2, 2021, Boris Molchadsky a majority shareholder of the Company, acquired in a private transaction from the former majority shareholder consisting of two hundred and twenty-five thousand (<span id="xdx_905_eus-gaap--StockIssuedDuringPeriodSharesAcquisitions_c20210702__20210702__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--BorisMolchadskyMember_zHUxAFFfsTj3" title="Number of shares acquired">225,000</span>) Shares of Series A Preferred Stock of the Company. <span id="xdx_905_eus-gaap--PreferredStockVotingRights_c20210702__20210702__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--BorisMolchadskyMember_zRj4Jsynzo64" title="Preferred stock voting rights">The Series A Preferred Shares have the right to vote 1,000 to 1 as shares of common stock and are convertible into 1,500 to 1 of the shares of common stock of the Company.</span> The acquisition of the Preferred Shares provided Boris Molchadsky with control of a majority of the Company’s voting equity capital.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 63.8pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.8in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On August 2, 2021, the Company entered into a stock exchange agreement with SleepX Ltd., a company formed under the laws of the State of Israel (“SleepX”) and controlled by the majority shareholder of AppYea, Pursuant to the agreement, the outstanding equity capital consisting of <span id="xdx_90C_eus-gaap--SharesOutstanding_iI_pid_c20210802__us-gaap--TypeOfArrangementAxis__custom--StockExchangeAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--SleepXLtdMember_z1O0gzRAYcxf" title="Outstanding equity capital">1,724</span> common shares of SleepX was exchanged for <span id="xdx_904_eus-gaap--ConversionOfStockSharesConverted1_c20210801__20210802__us-gaap--TypeOfArrangementAxis__custom--StockExchangeAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--SleepXLtdMember_z9FtxvBZdwMf" title="Number shares exchanged for common stock">174,595,634</span> shares of common stock of the Company, based on the agreement that determined that to SleepX shareholders will be issued common shares in the amount that will result in them holding <span id="xdx_900_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_c20210802__us-gaap--TypeOfArrangementAxis__custom--StockExchangeAgreementMember__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--SleepXLtdMember_zkjHiTaCeoof" title="Equity ownership percentage">80</span>% of the issued common shares of AppYea. As a result, SleepX became a wholly owned subsidiary of the Company. On December 31, 2021, the terms of the agreement were fulfilled; however, the issuance of the shares to SleepX shareholders, due to administrative matters, was completed in March 2022 after the Company completed a reverse stock split (see Note 9E).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.8in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 56.7pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As a result of the transaction mentioned above, as of December 31, 2022, Mr. Molchadsky controls approximately <span id="xdx_90A_eus-gaap--BusinessAcquisitionPercentageOfVotingInterestsAcquired_iI_pid_dp_uPure_c20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--BorisMolchadskyMember__us-gaap--BusinessAcquisitionAxis__custom--SleepXLtdMember_zr6SlmMbFfrb" title="Voting interest rate">71.4</span>% of the total voting power of AppYea.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 56.7pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.8in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">SleepX is an Israeli research and development company that has developed a unique product for monitoring and treating sleep apnea and snoring. The technology is protected by several international patents and, subject to raising working capital, of which no assurance can be provided, the Company plans to start serial production in 2023. The Company will focus on further development and commercialization of the products. Its strategy will include continued investment in research and development and new initiatives in sales and marketing.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 56.7pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.8in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">SleepX has incorporated, together with an unrelated third party, a privately held company under the laws of the State of Israel named Ta-nooma Ltd. (“Ta-nooma”). Ta-nooma has developed sleeping monitoring technology for which patent applications were filed and has no revenue from operations. Since its incorporation and as of the financial statements date, Sleepx holds <span id="xdx_904_eus-gaap--BusinessAcquisitionPercentageOfVotingInterestsAcquired_iI_pid_dp_uPure_c20221231__us-gaap--BusinessAcquisitionAxis__custom--SleepXLtdMember_zlVBvqIA0Cxh" title="Voting interest rate">66.7</span>% of the voting interest of Ta-nooma.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 56.7pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.8in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In addition to SleepX, the Company has four wholly owned subsidiaries with no active operations.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 56.7pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 56.7pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 56.7pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>APPYEA INC.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"/> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO THE FINANCIAL STATEMENTS</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"/> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="text-align: justify; width: 0.65in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 1</b></span> </td> <td style="width: 0.1in">-</td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>GENERAL (cont.)</b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"/> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 63.8pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.8in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Accounting treatment of Acquisition</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 63.8pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.8in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">AppYea did not have material operations as of the date of the transactions and the Acquisition was accounted for as a reverse merger -a reverse capitalization. The entity that issues securities (the legal acquirer or-AppYea) is identified as the acquiree for accounting purposes. The entity whose interests are acquired (SleepX.) is the acquirer for accounting purposes. Since SleepX is considered the accounting acquirer, these consolidated financial statements are prepared as a continuation of the operations of SleepX, except for the legal capital which is of AppYea.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 63.8pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.8in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The legal capital of AppYea in the financial statements is restated using the exchange ratio established in the stock exchange agreement to reflect the number of shares of the legal acquirer issued in the reverse merger.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 63.8pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 63.8pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.8in; text-align: justify">Following the above, as of December 31, 2021, the date of the transaction, the fair value of the net liabilities of AppYea was in the amount of $<span id="xdx_905_eus-gaap--LiabilitiesFairValueAdjustment_c20210101__20211231_zgcYM5EwtC16">2,453,000</span>.</p> <p style="font: 11pt/110% Times New Roman, Times, Serif; margin: 0 0 0 63.8pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.8in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">This amount is presented at cost of the reverse merger in the statement of operations.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 63.8pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.8in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Financial position</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 63.8pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.8in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The financial statements are presented on a going concern basis. The Company has not yet generated any material revenues, has suffered recurring losses from operations and is dependent upon external sources for financing its operations. As of December 31, 2022, the Company has an accumulated deficit of <span id="xdx_90A_eus-gaap--RetainedEarningsAccumulatedDeficit_iNI_di_c20221231_zXJsM4HEU78f">4,509,000</span></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and a stockholders’ deficiency of <span id="xdx_904_eus-gaap--StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest_iNI_di_c20221231_zzXx5KKwD46b">2,563,000</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">. These matters, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The Company intends to continue to finance its operating activities by raising capital. There are no assurances that the Company will be successful in obtaining an adequate level of financing needed for its long-term research and development activities on commercially reasonable terms or at all. If the Company will not have sufficient liquidity resources, the Company may not be able to continue the development of its product candidates or may be required to implement cost reduction measures and may be required to delay part of its development programs.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 63.8pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.8in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The financial statements do not include any adjustments for the values of assets and liabilities and their classification that may be necessary in the event that the Company is no longer able to continue its operations as a “going concern”.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 63.8pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 63.8pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 63.8pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>APPYEA INC.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"/> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES TO THE FINANCIAL STATEMENTS</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p>
CY2021 us-gaap Liabilities Fair Value Adjustment
LiabilitiesFairValueAdjustment
2453000 usd
CY2022Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-4509000 usd
CY2022Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
-2563000 usd
CY2022 us-gaap Use Of Estimates
UseOfEstimates
<p id="xdx_844_eus-gaap--UseOfEstimates_zP658uNWy7n8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 56.9pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.75in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.4in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">a.</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_86D_znemQrqh8wXk">Use of estimates</span>:</span></td></tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 85.05pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.15in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The accompanying Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States of America which require management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses. Significant estimates include the ability to continue as a going concern, the recoverability of long-lived assets, the recoverability of amounts due from related parties, the valuation of stock-based compensation and certain debt and derivative liabilities, recognition of loss contingencies and deferred tax valuation allowances. Actual results could differ from those estimates. Changes in facts and circumstances may result in revised estimates, which would be recorded in the period in which they become known. See note 8 regarding the Convertible Loans and Warrants estimations.</span></p>
CY2022Q4 us-gaap Foreign Currency Exchange Rate Translation1
ForeignCurrencyExchangeRateTranslation1
3.519 pure
CY2021Q4 us-gaap Foreign Currency Exchange Rate Translation1
ForeignCurrencyExchangeRateTranslation1
3.110 pure
CY2022 APYP Severance Rate Of Employees Monthly Salary
SeveranceRateOfEmployeesMonthlySalary
0.0833 pure
CY2022 us-gaap Derivatives Reporting Of Derivative Activity
DerivativesReportingOfDerivativeActivity
<p id="xdx_84A_eus-gaap--DerivativesReportingOfDerivativeActivity_zUC6PG2VgGFd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 85.05pt; text-align: justify; text-indent: -28.35pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="vertical-align: top"> <td style="width: 0.75in"> </td> <td style="text-align: justify; width: 0.4in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">g.</span></td> <td style="text-align: justify"><span id="xdx_86D_zXhkbXxS0Yfk">Derivative Financial Instruments</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 56.7pt; text-align: justify; text-indent: 28.35pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.15in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income. For option-based simple derivative financial instruments, the Company uses an option-pricing model to value the derivative instruments at inception and subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. We do not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks.</span></p>
CY2022Q4 us-gaap Convertible Debt Fair Value Disclosures
ConvertibleDebtFairValueDisclosures
2257000 usd
CY2022Q4 APYP Warrants Fair Value Disclosure
WarrantsFairValueDisclosure
24000 usd
CY2022 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p id="xdx_840_eus-gaap--ConcentrationRiskCreditRisk_z6pYQoVt0g62" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 85.05pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.75in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.4in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">i.</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_862_zAimA3YBOoj5">Concentrations of credit risks</span>:</span></td></tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 85.05pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.15in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The financial instruments include cash, accounts receivable, accounts payable, accrued expenses, loans payable, due to officers and derivative financial instruments. Balances in various cash accounts may at times exceed federally insured limits. We have not experienced any losses in such accounts. Cash and cash equivalents are invested in major banks in Israel and United States. Generally, these deposits may be redeemed upon demand and therefore, management believes there is minimal risk. Other than certain warrant and convertible instruments (derivative financial instruments)., we believe the carrying values of our financial instruments approximate their fair values because they are short term in nature or payable on demand. Our derivative financial instruments are carried at a measured fair value. The Company has no significant off-balance-sheet concentration of credit risk such as foreign exchange contracts, option contracts or other foreign hedging arrangements.</span></p>
CY2021Q4 us-gaap Other Receivables
OtherReceivables
6000 usd
CY2022Q4 us-gaap Other Receivables Net Current
OtherReceivablesNetCurrent
19000 usd
CY2021Q4 us-gaap Other Receivables Net Current
OtherReceivablesNetCurrent
13000 usd
CY2022Q4 us-gaap Convertible Preferred Stock Shares Issued Upon Conversion
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CY2021Q4 us-gaap Convertible Preferred Stock Shares Issued Upon Conversion
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CY2022Q4 us-gaap Other Assets
OtherAssets
12000 usd
CY2021Q4 us-gaap Other Assets
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7000 usd
CY2022Q4 us-gaap Other Receivables
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CY2022Q4 us-gaap Property Plant And Equipment Gross
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3000 usd
CY2021Q4 us-gaap Property Plant And Equipment Gross
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3000 usd
CY2022Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
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1000 usd
CY2021Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
1000 usd
CY2022Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
2000 usd
CY2021Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
2000 usd
CY2022 us-gaap Depreciation
Depreciation
200 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
163000 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
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39000 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Net
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124000 usd
CY2022 us-gaap Adjustment For Amortization
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23285 usd
CY2021 us-gaap Adjustment For Amortization
AdjustmentForAmortization
15000 usd
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62000 usd
CY2021Q4 us-gaap Accrued Liabilities Current
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13000 usd
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6000 usd
CY2021Q4 us-gaap Deferred Income Current
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5000 usd
CY2022Q4 APYP Government Institutions
GovernmentInstitutions
4000 usd
CY2021Q4 APYP Government Institutions
GovernmentInstitutions
15000 usd
CY2022Q4 us-gaap Accrued Payroll Taxes Current
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268000 usd
CY2021Q4 us-gaap Accrued Payroll Taxes Current
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32000 usd
CY2022Q4 us-gaap Accounts Payable Other Current
AccountsPayableOtherCurrent
340000 usd
CY2021Q4 us-gaap Accounts Payable Other Current
AccountsPayableOtherCurrent
65000 usd
CY2021Q4 us-gaap Due From Related Parties Current
DueFromRelatedPartiesCurrent
137000 usd
CY2022Q4 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
268000 usd
CY2021Q4 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
46000 usd
CY2022Q4 us-gaap Notes Payable Related Parties Classified Current
NotesPayableRelatedPartiesClassifiedCurrent
140000 usd
CY2022Q4 us-gaap Due To Related Parties Current
DueToRelatedPartiesCurrent
80000 usd
CY2021Q4 us-gaap Due To Related Parties Current
DueToRelatedPartiesCurrent
89000 usd
CY2022Q4 APYP Convertible Loans Related Party Current
ConvertibleLoansRelatedPartyCurrent
36000 usd
CY2021Q4 APYP Convertible Loans Related Party Current
ConvertibleLoansRelatedPartyCurrent
32000 usd
CY2022 us-gaap Salaries Wages And Officers Compensation
SalariesWagesAndOfficersCompensation
1356000 usd
CY2021 us-gaap Salaries Wages And Officers Compensation
SalariesWagesAndOfficersCompensation
595000 usd
CY2021 us-gaap Management Fee Expense
ManagementFeeExpense
60000 usd
CY2021 us-gaap Interest Income Related Party
InterestIncomeRelatedParty
2000 usd
CY2021Q4 us-gaap Convertible Debt
ConvertibleDebt
2492000 usd
CY2022 us-gaap Adjustments To Additional Paid In Capital Convertible Debt With Conversion Feature
AdjustmentsToAdditionalPaidInCapitalConvertibleDebtWithConversionFeature
526000 usd
CY2022 us-gaap Proceeds From Collection Of Notes Receivable
ProceedsFromCollectionOfNotesReceivable
743000 usd
CY2022Q4 us-gaap Convertible Debt
ConvertibleDebt
2257000 usd
CY2022Q4 us-gaap Convertible Notes Payable Current
ConvertibleNotesPayableCurrent
693410 usd
CY2021Q4 us-gaap Convertible Notes Payable Current
ConvertibleNotesPayableCurrent
111828 usd
CY2022Q4 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
220930798 shares
CY2022Q4 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
220930798 shares
CY2021Q4 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
218246326 shares
CY2021Q4 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
218246326 shares
CY2022Q4 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
900000000 shares
CY2021Q4 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
10000000000 shares
CY2022 us-gaap Salaries And Wages
SalariesAndWages
1356000 usd
CY2021 us-gaap Salaries And Wages
SalariesAndWages
528000 usd
CY2022 us-gaap Professional Fees
ProfessionalFees
605000 usd
CY2021 us-gaap Professional Fees
ProfessionalFees
67000 usd
CY2022 APYP Vehicle Expenses
VehicleExpenses
10000 usd
CY2021 APYP Vehicle Expenses
VehicleExpenses
7000 usd
CY2022 us-gaap Business Development
BusinessDevelopment
1000 usd
CY2021 us-gaap Business Development
BusinessDevelopment
5000 usd
CY2022 us-gaap Other General And Administrative Expense
OtherGeneralAndAdministrativeExpense
45000 usd
CY2021 us-gaap Other General And Administrative Expense
OtherGeneralAndAdministrativeExpense
25000 usd
CY2022 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
2017000 usd
CY2021 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
632000 usd
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Accelerated Compensation Cost
ShareBasedCompensationArrangementByShareBasedPaymentAwardAcceleratedCompensationCost
1049379000 usd
CY2021 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Accelerated Compensation Cost
ShareBasedCompensationArrangementByShareBasedPaymentAwardAcceleratedCompensationCost
485096000 usd
CY2022 us-gaap Costs And Expenses
CostsAndExpenses
74850 usd
CY2022Q4 us-gaap Defined Benefit Plan Funded Percentage
DefinedBenefitPlanFundedPercentage
0.0833 pure
CY2021Q3 us-gaap Officers Compensation
OfficersCompensation
20000
CY2021Q3 us-gaap Officers Compensation
OfficersCompensation
5683 usd
CY2022Q4 APYP Officers Compensation Shares
OfficersCompensationShares
9205450 shares
CY2021Q4 APYP Officers Compensation Shares
OfficersCompensationShares
9093597 shares
CY2021Q3 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P2Y
CY2021Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Weighted Average Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsWeightedAverageVolatilityRate
1.877 pure
CY2021Q3 APYP Common Stock Par Or Stated Market Value
CommonStockParOrStatedMarketValue
0.76
CY2021Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.003 pure
CY2022 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
6904087 shares
CY2022 APYP Stock Issued During Period Shares Stock Options Unexercised
StockIssuedDuringPeriodSharesStockOptionsUnexercised
2301363 shares
CY2022 APYP Share Based Compensation Arrangement By Share Based Payment Award Options Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisePrice
0.0001
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Expiration Date
ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate
2031-07-01
CY2022Q4 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized
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1049379 usd
CY2021Q4 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized
485096 usd
CY2022 us-gaap Credit Derivative Liquidation Proceeds Percentage
CreditDerivativeLiquidationProceedsPercentage
0.015 pure
CY2022Q4 APYP Bonus
Bonus
10000000 usd
CY2022Q4 APYP Revenue Capital Percentage
RevenueCapitalPercentage
0.010 pure
CY2022Q4 APYP Accumulated Revenues
AccumulatedRevenues
20000000 usd
CY2022 us-gaap Officers Compensation
OfficersCompensation
20000
CY2022 us-gaap Officers Compensation
OfficersCompensation
5683 usd
CY2022Q4 APYP Additional Revenues
AdditionalRevenues
10000
CY2022Q4 APYP Additional Revenues
AdditionalRevenues
2842 usd
CY2022Q4 APYP Accumulated Revenue
AccumulatedRevenue
1000000 usd
CY2022Q4 APYP Management Fees
ManagementFees
72000
CY2022Q4 APYP Management Fees
ManagementFees
20460 usd
CY2022 APYP Management Fees Percentage
ManagementFeesPercentage
0.50 pure
CY2022Q4 us-gaap Salaries Wages And Officers Compensation
SalariesWagesAndOfficersCompensation
40000
CY2022 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.21 pure
CY2022Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
178000 usd
CY2021Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
64000 usd
CY2022Q4 us-gaap Deferred Tax Assets Gross
DeferredTaxAssetsGross
178000 usd
CY2021Q4 us-gaap Deferred Tax Assets Gross
DeferredTaxAssetsGross
64000 usd
CY2022Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
178000 usd
CY2021Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
64000 usd

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apyp-20221231.xsd Edgar Link pending
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