Quarterly Report (10-q)
December 26 2018 - 4:54PM
Edgar (US Regulatory)
UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 10-Q
(Mark One)
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[x] QUARTERLY
REPORT PURSUANT TO SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For
the Quarterly Period Ended October 31, 2018
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Or
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[ ] TRANSITION REPORT PURSUANT TO SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition
period from
to
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Commission
file number 000-50693
Cyber Apps
World Inc.
(Name of Registrant
as Specified in Its Charter)
Nevada
(State
or Other Jurisdiction
of
Incorporation or Organization)
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90-0314205
(I.R.S.
Employer
Identification
No.)
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420
N. Nellis Blvd., Suite A3-146, Las Vegas, Nevada
(Address
of Principal Executive Offices)
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89110
(Zip
Code)
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(702) 425-4289
(Issuer’s
Telephone Number, Including Area Code)
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Securities
registered under Section 12(b) of the Exchange Act:
None
Securities
registered under Section 12(g) of the Exchange Act:
Common Stock,
Par value $0.001per share
Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. [x] No
Indicate
by checkmark if the registrant is not required to file reports to Section 13 or 15(d) Of the Act. [ ] Yes [x] No
Indicate
by check mark whether the issuer: (1) filed all reports required to be filed by Section 13 or 15(d) of the
Exchange Act 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
Indicate
by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not
contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ ]
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 the definitions of "large accelerated filer," "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.
Large
accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] Smaller reporting company [x]
(Do
not check if a smaller reporting company)
Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). [ X ] Yes [ ] No
On
October 31, 2018, there were 24,319,935 shares of common stock outstanding.
Table
of Contents
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Page
No.
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PART
I. FINANCIAL INFORMATION
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1
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ITEM
1 - Unaudited Financial Statements
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1
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Balance
Sheets as of October 31, 2018 and July 31, 2017 (Unaudited)
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1
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Statements
of Operations for the Three Months Ended October 31, 2018 and 2017 (Unaudited)
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2
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Statements
of Cash Flows for the Three Months Ended October 31, 2018 and 2017 (Unaudited)
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3
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Notes
to Unaudited Financial Statements
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4
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ITEM
2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations
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6
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ITEM
3 - Quantitative and Qualitative Disclosures About Market Risk
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7
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ITEM
4 - Controls and Procedures
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7
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PART
II. OTHER INFORMATION
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8
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ITEM
6 – Exhibits
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9
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PART I FINANCIAL INFORMATION
Certain information
and footnote disclosures required under accounting principles generally accepted in the United States of America have been condensed
or omitted from the following financial statements pursuant to the rules and regulations of the Securities and Exchange Commission.
It is suggested that the following financial statements be read in conjunction with the year-end financial statements and notes
thereto included in the Company’s Annual Report on Form 10K for the year ended July 31, 2018. In the opinion of management,
all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included
and all such adjustments are of a normal recurring nature.
The results
of operations for the three months ended October 31, 2018 and 2017 are not necessarily indicative of the results for the entire
fiscal year or for any other period.
Cyber Apps World, Inc.
Balance Sheets
(unaudited)
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`
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October 31, 2018
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July 31, 2018
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Assets
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Current assets:
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Deposits
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$
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6,702
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469
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Total current assets
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6,702
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469
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Property & Equipment, net
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Total assets
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$
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6,702
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$
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469
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Liabilities and Stockholders' Deficiency
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Current liabilities:
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Accounts payable and accrued expenses
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$
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100,550
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$
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101,536
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Convertible Note Payable
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29,767
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29,767
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Notes Payable
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1,448
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77,593
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Loan Payable
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100,000
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—
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Total Current Liabilities
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231,765
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208,896
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Commitments and contingencies
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—
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—
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Stockholders' deficiency:
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Preferred stock, $.001 par value, 10,000,000 shares authorized, 0 issued and outstanding
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—
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—
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Common stock, $.001 par value, 50,000,000 shares authorized as of July 31, 2018;
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24,319,935 issued and outstanding at October31, 2018 and July 31
st
2018, respectively.
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24,320
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24,320
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Additional paid-in capital
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8,347,541
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8,347,541
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Accumulated deficit
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(8,596,924
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)
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(8,580,288
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)
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Stockholders' deficiency
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(225,063
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)
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(208,427
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)
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Total liabilities and stockholders' equity
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$
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6,702
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$
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469
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`
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The accompanying notes are an integral part of these unaudited financial statements
Cyber Apps World, Inc.
Statements of Operations
(unaudited)
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For the Three Months Ended October 31,
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2018
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2017
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Net Sales
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$
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—
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$
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—
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Operating expenses:
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General and administrative
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16,636
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(576
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)
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Research & Development
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—
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—
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Total operating expenses
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16,636
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(576
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)
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Income / (Loss) from operations
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$
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(16,636
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)
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$
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576
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Other (expenses)/ income
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—
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—
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Net Income / (Loss) before provision for income taxes
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$
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(16,636
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)
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$
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576
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Provision for (benefit from) income taxes
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—
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—
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Net Income / (Loss)
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$
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(16,636
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)
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$
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576
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Net Loss per common share- basic and diluted
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$
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—
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$
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—
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Weighted average number of common shares outstanding- basic and diluted
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24,319,935
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24,319,935
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The accompanying notes are an integral part of these unaudited financial statements
Cyber Apps World, Inc.
Statements of Cash Flows
(unaudited)
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Three Months Ended October 31,
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2018
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2017
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CASH FLOWS FROM OPERATING ACTIVITIES:
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Net Income / (loss)
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$
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(16,636
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)
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$
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576
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Adjustments to reconcile net loss to net cash utilized in operating activities
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Change in accounts receivable
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—
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—
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Change in accounts payable and accrued expenses
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(7,219
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)
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(25,895
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)
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Change in other receivable
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—
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—
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Net cash used in operating activities
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$
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(23,855
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)
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$
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(25,319
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)
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CASH FLOWS FROM INVESTING ACTIVITIES:
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Net cash used in investing activities
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—
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—
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CASH FLOWS FROM FINANCING ACTIVITIES:
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Loan Payable
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$
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100,000
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$
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—
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Note Payable
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(76,145
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)
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25,319
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Net cash provided by financing activities
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$
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23,855
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$
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25,319
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CHANGE IN CASH AND CASH EQUIVALENTS:
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Net decrease in cash and cash equivalents
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—
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—
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Cash and cash equivalents at beginning of year
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—
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—
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Cash and cash equivalents at end of Period
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$
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—
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$
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—
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NON-CASH SUPPLEMENTARY DISCLOSURES:
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Cash paid for interest
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$
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—
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$
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—
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Cash paid for income taxes
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$
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—
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$
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—
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The accompanying
notes are an integral part of these unaudited financial statements
NOTES TO
UNAUDITED FINANCIAL STATEMENTS
As of and
for the Three Ended October 31, 2018
(unaudited)
Note 1.
Summary of Significant Accounting Policies
Condensed
Interim Financial Statements –
The accompanying unaudited condensed financial statements include the accounts
of Cyber Apps World Inc. (the “Company”). These financial statements are condensed and, therefore, do not include
all disclosures normally required by accounting principles generally accepted in the United States of America. Therefore, these
statements should be read in conjunction with the most recent annual financial statements of Cyber Apps World for the year ended
July 31, 2018 included in the Company’s Form 10-K filed with the Securities and Exchange Commission. In particular, the
Company’s significant accounting principles were presented as Note 2 to the Financial Statements in that report. In
the opinion of management, all adjustments necessary for a fair presentation have been included in the accompanying condensed
financial statements and consist of only normal recurring adjustments. The results of operations presented in the accompanying
condensed financial statements are not necessarily indicative of the results that may be expected for the full year ending July
31, 2019.
Going Concern
The Company’s
financial statements for the period ended October 31, 2018, have been prepared on a going concern basis which contemplates the
realization of assets and settlement of liabilities and commitments in the normal course of business. The Company did not have
any revenue in and as of October 31, 2018. Management recognized that the Company’s continued existence is dependent upon
its ability to obtain needed working capital through additional equity and/or debt financing and revenue to cover expenses as
the Company continues to incur losses.
Since its
incorporation, the Company financed its operations almost exclusively through advances from its controlling shareholders. Management’s
plans are to finance operations through the sale of equity or other investments for the foreseeable future, as the Company does
not receive significant revenue from its business operations. There is no guarantee that the Company will be successful in arranging
financing on acceptable terms.
The Company's
ability to raise additional capital is affected by trends and uncertainties beyond its control. The Company does not currently
have any arrangements for financing and it may not be able to find such financing if required. Obtaining additional financing
would be subject to a number of factors, including investor sentiment. Market factors may make the timing, amount, terms or conditions
of additional financing unavailable to it. These uncertainties raise substantial doubt about the ability of the Company to continue
as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of
these uncertainties.
The Company’s
significant accounting policies are summarized in Note 1 of the Company’s Annual Report on Form 10-K for the year ended
July 31, 2018. There were no significant changes to these accounting policies during the three months ended October 31, 2018 and
the Company does not expect that the adoption of other recent accounting pronouncements will have a material impact on its financial
statements
Note 2.
Net Loss Per Common Share
Basic loss
per common share is computed based on the weighted average number of shares outstanding during the year. Diluted earnings per
common share is computed by dividing net earnings (loss) by the weighted average number of common shares and potential common
shares during the specified periods. The Company has no outstanding options or warrants that could affect the calculated number
of shares. Common stock equivalents related to convertible debt are detailed in Note 3.
Note 3.
Convertible Notes Payable and Notes Payable
As of July
31, 2018, the Company has a balance of convertible notes is $77,593 which is convertible into common stock at approx. $0.02 per
share. If all of the debt is converted it would result in the issuance of 3,879,650 common shares. The debt is due upon demand
and bears 0% interest.
As of October
31, 2018, the Company has several notes payable totaling $1,448, which are due upon demand and bear 0% interest.
Note 4. Subsequent Events
On November
6, 2018 Kateryna Malenko was appointed as Secretary and a member of the board of Directors. Twenty-five million two hundred thousand
shares of common stock were issued to Kat Consulting Corp. according to a private placement subscription agreement. The shares
of common stock issued at par $.001. Financial Impact of shares issued is $25,200 which is 25,200,000 shares @ $.001
ITEM 2.
Management’s Discussion and Analysis of Financial Conditions and Results of Operations.
Forward
Looking Statements
This quarterly
report contains forward-looking statements that involve risks and uncertainties. We use words such as anticipate,
believe, plan, expect, future, intend and similar expressions to identify such forward-looking statements. You should not
place too much reliance on these forward-looking statements. Our actual results are likely to differ materially
from those anticipated in these forward-looking statements for many reasons, including the risks faced
by us described in this section.
Background
We were incorporated
on July 15, 2002 under the laws of the State of Nevada. On April 5, 2011, we merged with our wholly owned subsidiary, Sky Power
Solutions Corp., and in the merger the name of the Company was changed to Sky Power Solutions Corp. December 24, 2012
Sky Power Solutions merged with our wholly owned subsidiary, Clean Enviro Tech Corp., and in the merger changed the name of the
Company to Clean Enviro Tech Corp. On April 9, 2015 the Company merged with our wholly owned subsidiary Cyber Apps World Inc.
and in the merger changed the name of the Company to Cyber Apps World Inc. (CYAP)
Cyber
Apps World redirected the Company focus and intended to develop and acquire a worldwide e-commerce internet platform in which
revenues would be based on the purchase and sale of products and services by way of mobile/computer applications online.
Results
of Operations for the Three months Ended October 31, 2018 and 2017
As
of October 31, 2018 and 2017, we had cash on hand of $0 and $0 respectively. As there is no cash in hand, liquidity is managed
through Notes payable which are due on demand and bear 0% interest. During the period ended October 31, 2018 and 2017 we incurred
a net loss of $16,636 and a gain of $576 respectively. On October 31, 2018 and 2017, we had a working capital deficiency of $93,848
and $99,528 respectively and a stockholders' deficit of $225,063 and $208,427 respectively.
Plan
of Operations
After termination
of the Agreement, management is still looking into other opportunities and direction for the Company.
We do not have sufficient
revenues to sustain our operations.
We
have no revenues from operations. All funding is from a third party. We expect that we will continue to incur operating losses Failure
to achieve or maintain profitability may materially and adversely affect the future value of our common stock.
If we do not obtain additional
financing, our business will fail.
The
Company currently has no operating funds, all funding is from a third party. If funding from shareholders, third parties
or financing is not obtained we will not be able to launch the apps, and nor will we be able to complete our business plan.
We do not currently have any arrangements for financing and we may not be able to find such financing if required. Market factors
may make the timing, amount, terms or conditions of additional financing unavailable to us.
We have been the subject
of a going concern opinion from our independent auditors, which means that we may not be able to continue operations unless we
obtain additional funding.
Our
independent auditors have added an explanatory paragraph to their audit opinions, issued in connection with our financial
statements, which states that our ability to continue as a going concern is uncertain.
Item 4. Controls and Procedures.
As
supervised by our board of directors and our principal executive and principal financial officer, management has established a
system of disclosure, controls and procedures and has evaluated the effectiveness of that system. The system and its
evaluation are reported on in the below Management's Annual Report on Internal Control over Financial Reporting. Our principal
executive and financial officer has concluded that our disclosure, controls and procedures (as defined in Securities Exchange
Act of 1934 (“Exchange Act”) Rule 13a-15(e)) as of July 31, 2016, were not effective, based on the evaluation of these
controls and procedures required by paragraph (b) of Rule 13a-15.
Management's Annual Report
on Internal Control over Financial Reporting
Management
is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in
Rule 13a-15(f) of the Exchange Act. Internal control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance
with U.S. generally accepted accounting principles.
Management
assessed the effectiveness of internal control over financial reporting as of July 31, 2015. We carried out this assessment using
the criteria of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—Integrated
Framework.
This
annual report does not include an attestation report of our registered public accounting firm regarding internal control over
financial reporting. Management's report was not subject to attestation by our registered public accounting firm, pursuant
to rules of the Securities and Exchange Commission that permit us to provide only management's report in this annual report.
Management concluded in this assessment that as of July 31, 2018, our internal control over financial reporting is not effective.
There
have been no significant changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f)
under the Exchange Act) during the fourth quarter of our 2015 fiscal year that have materially affected, or are reasonably
likely to materially affect, our internal control over financial reporting.
PART II—OTHER INFORMATION
Item 1. Legal Proceedings.
None
Item 2. Unregistered Sales of Equity
Securities and Use of Proceeds.
Private placement restricted shares
of 25,200,000 issued at $.001 per share with proceeds of $25,200 used towards working capital of the company.
Item 3. Defaults Upon Senior
Securities.
None
Item 4. Mine Safety
Not Applicable
PART II
Item 6.
Exhibits.
Copies of
the following documents are included as exhibits to this report pursuant to Item 601 of Regulation S-K.
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SEC
Ref. No.
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Title of Document
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101.
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INS
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XBRL
Instance Document
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101.
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SCH
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XBRL
Taxonomy Extension Schema Document
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101.
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CAL
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XBRL
Taxonomy Calculation Linkbase Document
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101.
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DEF
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XBRL
Taxonomy Extension Definition Linkbase Document
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101.
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LAB
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XBRL
Taxonomy Label Linkbase Document
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101.
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PRE
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XBRL
Taxonomy Presentation Linkbase Document
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The XBRL related
information in Exhibits 101 to this Annual Report on Form 10-K shall not be deemed “filed” or a part of a registration
statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, and is not filed for purposes
of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of those sections.
SIGNATURES
In accordance
with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
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Cyber Apps World, Inc.
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By:
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/s/ Liudmilla
Voinarovska
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Chief Executive Officer and Principal Financial
Officer
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Date: December 26, 2018
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In accordance with
the Securities Exchange Act, this report has been signed below by the following persons on behalf
of the registrant and in the capacities and on the dates indicated.
By:
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/s/
Liudmilla Voinarovska
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Liudmilla Voinarovska
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(President, Chief Executive Officer and Director)
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Date: December 26, 2018
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