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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 under the name Titan Web Solutions, Inc. with a view
to offering a full range of business consulting services in the retail specialty coffee industry in China.
On
April 9, 2015 we merged with our wholly-owned subsidiary Cyber Apps World Inc. and concurrently changed our name to Cyber Apps
World Inc. Our business focused on the development of mobile applications focusing on allowing users around the world to save
money on products and services from member merchants and suppliers instantly with mobile coupons, using their desktops and/or
mobile devices, including smartphones.
We
completed the acquisition of a website originally located at www.savinstultra.com and now to be located at www.smartsavenow.com
(the “Website”), including, without limitation, the website domain, content, data, and all incorporated technology
on April 19, 2019. We acquired a 100% undivided interest in and to the Website in consideration of us issuing 11,500,000 shares
of our common stock to the vendor at closing.
The
Website consists of a search engine that users access in order to compare the prices of different consumer products, which is
known as a price comparison website. The initial version of the website is published and is undergoing further development. It
currently features consumer items in various product categories, such as electronics, computers, cellular phones, office equipment,
clothing, books, toys, and jewelry. As well, the Website includes a search function that allows users to input key words and receive
a list of available consumer items that include those words. The Website was developed in Ukraine and India.
We
intend to further develop the Website to specifically market to American consumers by providing real-time pricing for items that
major U.S. retailers, including Wal-Mart, Best Buy, EBay, and Target, publish on their company websites. The Website will show
products available at the lowest price among all sellers and incorporate this automatically into its digital marketing advertising.
In order to access the content of the Website, consumers must register and establish an account with us and provide us with contact
information, including a name, email address, and telephone number. Account holders who consent to the receipt of electronic correspondence
from us will receive periodic emails from us that highlight sales items for specific consumer products that reflect their Website
search interests.
During
initial development, the vendor of the Website is able to offer products from 86 existing sellers and has agreements with an additional
420 sellers. As with other price comparison websites, we will not charge users anything to use the Website. We intend to generate
revenue by securing commission payments from retailers and other sellers. These payments will vary from seller to seller, but
will either consist of a fee for each time one of our users accesses a retail website through our website, a fee for each time
one of our users buys an item from a retailer or register with their website, or a flat fee for inclusion on our website. Each
fee arrangement with a retailer will be negotiated separately. Since our acquisition of the Website and related technology, we
have retained software developers in India that have continued development of the Website for commercial deployment.
On
December 1, 2020, we entered into an agreement with a private Wyoming company whereby we will acquire a 100% undivided interest
in and to a ride-hailing and food delivery computer and mobile device application including, without limitation, the application,
all software, the corresponding website domain, content, data, and all incorporated technology, known as WarpSpeed Taxi. However,
all operational data and databases relating to the WarpSpeed Taxi application will be jointly owned by us and the vendor. However,
the vendor cannot use the data for any purpose that competes directly or indirectly with our use and operation of the application
for ride-hailing and food delivery.
In
consideration of the vendor selling the WarpSpeed Taxi application to us, we agreed to:
(a)
pay $10,000 to The vendor upon execution of the agreement, which we have paid;
(b)
pay an additional $40,000 to The vendor upon its delivery of a working prototype of the WarpSpeed Taxi application to us in a
form acceptable to us; and
(c)
issuing a promissory note to The vendor for an amount equal to the estimation of value of the WarpSpeed Taxi application and our
joint ownership interest in related data and databases based on an independent business valuation completed by a valuator who
is accredited by the American Society of Appraisers and acceptable to both parties (the “Valuation”) less the $50,000
in cash payments noted above. In any event, the promissory note shall not be less than $50,000 and shall not exceed $250,000.
The Note shall bear simple interest at a rate of 5% per annum and all principal and accrued interest shall be payable in full
and on demand provided that The vendor’s demand shall not be made until at least December 31, 2023.
The
agreement closed on December 31, 2020, though we have the post-closing obligations described in (b) and (c) above.
Results
of Operations for the Six Months Ended January 31, 2021 and 2019
Our
net loss for the three-month period ended January 31, 2021 was $102,420 (2020: loss of $35,411), which consisted entirely
of general and administrative fees. We did not generate any revenue during either three-month period in fiscal 2021 or 2020. The
expenses in the current fiscal year were significantly higher than those that we incurred in the same period in fiscal 2020 due
to increased business operations in connection with the development of our SmartSaveNow website and application.
LIQUIDITY
AND CAPITAL RESOURCES
As
at January 31, 2021, our current assets were $87,507 compared to $1,099 at July 31, 2020. The increase in current assets in the
current fiscal year is due to loans we obtained as a result of issuing convertible promissory notes. As at January 31, 2021, our
current liabilities were $886,665 compared to $443,559 at July 31, 2020. Current liabilities at January 31, 2021 were comprised
of $155,472 in accounts payable and accrued expenses, convertible notes payable of $616,114, and loans payable of $115,079, including
$10,000 due to a related party.
We
expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital
through, among other methods, the sale of equity or debt securities.
Cash
Flows from Operating Activities
We
have not generated positive cash flows from operating activities. For the six-month period ended January 31, 2021, net cash
flows used in operating activities were $292,846 consisting of a net loss of 162,298 , which was offset by a $28,998 non-cash
component of accounts payable, notes payable of $425,814, and $10,000 due to a related party.
Cash
Flows from Financing Activities
We
have financed our operations primarily from either the issuance of our shares of common stock or from loans. Net cash flows generated
from financing activities were $88,295 in the six-month period ended January 31, 2021 compared to $12,695 in the comparative
period in fiscal 2020. The $88,295 in cash flow from financing activities in the current fiscal year relates to loans we received
in consideration of our issuance of convertible promissory notes of $125,157 and $100,000 proceeds from the sale of 250,000 shares
of our common stock.
OFF-BALANCE
SHEET ARRANGEMENTS
As
of the date of this report, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current
or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources that are material to investors.
GOING
CONCERN
The
independent auditors' report accompanying our July 31, 2020 financial statements contained an explanatory paragraph expressing
substantial doubt about our ability to continue as a going concern. The financial statements have been prepared "assuming
that we will continue as a going concern," which contemplates that we will realize our assets and satisfy our liabilities
and commitments in the ordinary course of business.