The following discussion and analysis of our financial condition and results of
operations should be read in conjunction with the Condensed Consolidated
Financial Statements and supplementary data referred to in this Form 10-Q.
This discussion contains forward-looking statements that involve risks and
uncertainties. Such statements, which include statements concerning revenue
sources and concentration, selling, general and administrative expenses and
capital resources, are subject to risks and uncertainties, including, but not
limited to, those discussed elsewhere in this Form 10-Q that could cause actual
results to differ materially from those projected. Unless otherwise expressly
indicated, the information set forth in this Form 10-Q is as of March 31, 2020,
and we undertake no duty to update this information.
Plan of Operations
SPYR®, Inc. acts as a holding company to develop a portfolio of profitable
subsidiaries, not limited by any particular industry or business.
With our October 20, 2020, acquisition of Applied Magix, a Nevada corporation
("Applied Magix"), our business model changed to focus on the development of our
wholly owned subsidiary Applied Magix Inc., a registered Apple® developer, and
reseller of Apple® ecosystem compatible products and accessories with an
emphasis on the smart home market. As such, we are in the global "Internet of
Things" (IoT) market, and more specifically, the segment of the market related
to the development, manufacture and sale of devices and accessories specifically
built on Apple's HomeKit® framework. These products work within the Apple®
HomeKit® ecosystem and are exclusive to the Apple market and its consumers.
Apple® HomeKit® is a system that lets users control smart home devices, so long
as they're compatible with the HomeKit® ecosystem, giving users control over
smart thermostat, lights, locks and more in multiple rooms, creating comfortable
environments and remote control of other connected devices. Our strategy is
two-fold. First, we intend to resell, under our Applied Magix brand, a variety
of chargers, cables, cords, charging docks, cases, cameras, adaptors and other
accessories used in the Apple® ecosystem in various internet marketplaces.
Secondly, we are developing an Applied Magix branded hardware device for use
with the Apple HomeKit® framework, that will allow users to program and securely
control and manage multiple smart home devices labeled as a "Works with Apple
HomeKit" accessory through the Apple® HomeKit® app for iOS. To date, our
strategy is in the development stage. We have yet to begin sales efforts for our
branded Apple® ecosystem compatible products and accessories, and our Apple
HomeKit® hardware device is in development.
We will also continue to identify and target acquisitions, which will grow our
footprint in the technology industry and expand the products we offer consumers,
including companies developing artificial intelligence and smart-technology
products.
The Company intends to utilize cash on hand, shareholder loans and other forms
of financing such as the sale of additional equity and debt securities, capital
leases and other credit facilities to conduct its ongoing business, and to also
conduct strategic business development, marketing analysis, due diligence
investigations into possible acquisitions, and implementation of our Applied
Magix business plans generally. The Company also seeks to diversify, through
acquisition or otherwise, in other related and/or unrelated business areas and
is exploring opportunities to do so.
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