FORWARD LOOKING STATEMENTS

This quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our unaudited financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles. The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this quarterly report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this quarterly report.

Our financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles.

In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to "common shares" refer to the common shares in our capital stock.

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.





General 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 30th. 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.






          3

  Table of Contents




Results of Operations



Three months ended September 30, 2019 compared to three months ended September
30, 2018.



                        Three Months Ended
                          September 30,
                       2019           2018
Revenue              $     135     $       78
Operating expenses   $ (55,299 )   $  (44,318 )
Other expense        $ (32,295 )   $ (173,336 )
Net loss             $ (87,459 )   $ (217,576 )

We generated revenue of $135 and $78 for the three months ended September 30, 2019 and 2018, 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 legal and professional fees, general and administrative expenses, and depreciation expense, were $55,299 and $44,318, for the three months ended September 30, 2019 and 2018, respectively. Operating expense increased during the three months ended September 30, 2019, by $10,981 as compared to 2018, were primarily the result of increased professional fees. Professional fees increase by $19,318 during the three months ended September 30, 2019, due to an increase in legal fees.

Other expense totaled $32,295 for the three months ended September 30, 2019 compared to $173,336 for the three months ended September 30, 2018. The decrease in other expense was primarily related a decrease in loss on the change in fair value of our derivative liabilities as well as a decrease in interest expense.

As a result of the foregoing, we incurred losses of $87,459 and $217,576 during the three months ended September 30, 2019 and 2018, respectively.

Our activities have been entirely directed at the development of our internal apps, the acquisition of third-party apps, investigation and analysis of the healthcare industry, and the sourcing of capital to fund these activities.

The following table provides selected financial data about our Company as at September 30, 2019 and 2018.





                        September 30,       June 30,
                            2019              2019
Cash                   $        11,555     $    45,056
Total Assets           $        13,555     $    54,556
Total Liabilities      $     1,067,496     $ 1,030,167
Stockholders' Equity   $    (1,053,941 )   $  (975,611 )

As at September 30, 2019, the Company's cash balance was $11,555 compared to $45,056 as at June 30, 2019 and our total assets at September 30, 2019 were $13,555 compared with $54,556 as at June 30, 2018. The decrease in total assets was due to a decrease in cash and prepaid expense.

As at September 30, 2019, the Company had total liabilities of $1,067,496 compared with total liabilities of $1,030,167 as at June 30, 2019. The increase in total liabilities of $37,329, during the three months ended September 30, 2019, was primarily the result of an increase in accrued salary and convertible notes. As of September 30, 2019 and June 30, 2019, the Company accrued $21,506 and $3,506 for officer salary, respectively.






          4

  Table of Contents

Liquidity and Capital Resources

Currently we do not have sufficient capital to fund our overhead expenses or business development for the next 12 months.





Working Capital



                                September 30,       June 30,
                                    2019              2019
Cash                           $        11,555     $    45,056

Current Assets                 $        13,555     $    54,556
Current Liabilities            $     1,067,496     $ 1,030,167
Working Capital (Deficiency)   $    (1,053,941 )   $  (975,611 )

The decrease in working capital deficiency was primarily attributed to an increase in accrued salary and convertible notes and a decrease in cash.

© Edgar Online, source Glimpses