FORWARD LOOKING STATEMENTS

Except for historical information, this report contains forward-looking statements. Such forward-looking statements involve risks and uncertainties, including, among other things, statements regarding our business strategy, future revenues and anticipated costs and expenses. Such forward-looking statements include, among others, those statements including the words "expects," "anticipates," "intends," "believes" and similar language. Our actual results may differ significantly from those projected in the forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed herein as well as in the "Description of Business" section in our Form 10-K, as filed with the SEC on October 18, 2019. You should carefully review the risks described in our Annual Report and in other documents we file from time to time with the Securities and Exchange Commission. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this report. We undertake no obligation to publicly release any revisions to the forward-looking statements or reflect events or circumstances after the date of this document.

Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements.

As used in this quarterly report and unless otherwise indicated, the terms "we", "us", "our" and "AppYea" mean AppYea, Inc., and our wholly owned subsidiaries, AppYea Holdings, Inc., a South Dakota corporation and The Diagnostic Centers, Inc., a South Dakota corporation unless otherwise indicated.

Corporate Overview

We were 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.

Our administrative office is located at 777 Main Street, Suite 600, Fort Worth, TX 76102, Telephone: (817)-887-8142. Our corporate website is located at www.appyea.com.

Our fiscal year end is June 30. We have not been subject to any bankruptcy, receivership or similar proceeding.

We have two wholly owned subsidiaries, AppYea Holdings, Inc., a South Dakota corporation and The Diagnostic Centers, Inc., a South Dakota corporation.

Our Current Business

We are a development stage company that was initially only engaged in the acquisition, purchase, and maintenance of mobile software applications ("apps"). Although we are still active in the mobile applications industry, we began investigating healthcare markets to augment the apps business in early 2017 and subsequently formed a wholly owned subsidiary The Diagnostic Centers, Inc. to focus on marketing certain products and services to healthcare providers.

On November 15, 2017, we entered into a distribution agreement with Cedar Creek Labs Series Two LLC ("LLC") for the term of 1 year. The agreement shall be automatically extended for successive 1 year unless there is the notice to terminate. Our Company shall use best efforts to market the Products for the LLC and will receive compensation ranging from 15% to 40% of profit. Our company owns membership interests of 5% in LLC and the transactions between our company and LLC which is an equity method investee are deemed to be between related parties. The Company reviewed Cedar Creek Labs Series Two LLC financial condition at June 30, 2018 and concluded that there is a 100% impairment loss related to the Company's investment, and recorded an impairment loss of $24,524, for the year ended June 30, 2018. As of June 30, 2019 our company is no longer utilizing this lab.




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Results of Operations

Three months ended December 31, 2019 compared to three months ended December 31,
2018.

                            Three Months Ended
                               December 31,
                            2019          2018
Revenue                  $       68     $     119
Operating expenses       $  (49,677 )   $ (45,022 )
Other income (expense)   $ (195,954 )   $ 451,958
Net income (loss)        $ (245,563 )   $ 407,055

We generated revenues of $68 for the three months ended December 31, 2019, compared to revenues of $119 for the same period in 2018.

Our operating expenses, for the three months ended December 31, 2019 were $49,677 compared to $45,022 for the same period in 2018. The increase in operating expenses was primarily as a result of an increase in professional fees.

Other expense, for the three months ended December 31, 2019 was $195,954 compared to other income of $451,958 for the same period in 2018. The decrease in other income was primarily related to change in fair value of derivative liabilities.

We incurred a net income (loss) of ($245,563) and $407,055 for the three months ended December 31, 2019 and 2018, respectively.



Six months ended December 31, 2019 compared to six months ended December 31,
2018.

                             Six Months Ended
                               December 31,
                            2019          2018
Revenue                  $      203     $     197
Operating expenses       $ (104,976 )   $ (89,340 )
Other income (expense)   $ (228,249 )   $ 278,622
Net income (loss)        $ (333,022 )   $ 189,479

We generated revenues of $203 for the six months ended December 31, 2019, compared to revenues of $197 for the same period in 2018.

Our operating expenses, for the six months ended December 31, 2019 were $104,976 compared to $89,340 for the same period in 2018. The increase in operating expenses was primarily as a result of an increase in legal expenses.

Other expense, for the six months ended December 31, 2019 was $228,249 compared to other income of $278,622 for the same period in 2018. The decrease in other income was primarily related to change in fair value of derivative liabilities.

We incurred a net income (loss) of ($333,022) and $189,479 for the six months ended December 31, 2019 and 2018, respectively.

Liquidity and Capital Resources

The following table provides selected financial data about our company as of December 31, 2019 and June 30, 2019, respectively.



Working Capital

                               December 31,       June 30,
                                   2019             2019
Cash                           $         311     $    45,056

Current Assets                 $       2,311     $    54,556
Current Liabilities            $   1,158,815     $ 1,030,167
Working Capital (Deficiency)   $  (1,156,504 )   $  (975,611 )




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