ITEM 1. Unaudited Financial Statements
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, 2015. 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 six months
ended January 31, 2016 and 2015 are not necessarily indicative of the results for the entire fiscal year or for any other period.
Cyber Apps World, Inc.
(formerly Clean Enviro Tech Corp.)
Balance Sheets
(unaudited)
|
|
Jaunary 31,
|
|
July 31,
|
|
|
2016
|
|
2015
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
10,000
|
|
|
$
|
10,000
|
|
Total current assets
|
|
|
10,000
|
|
|
|
10,000
|
|
Web development costs, net
|
|
|
3,000
|
|
|
|
—
|
|
Total assets
|
|
$
|
13,000
|
|
|
$
|
10,000
|
|
Liabilities and Stockholders' Deficiency
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
$
|
117,472
|
|
|
$
|
112,637
|
|
Convertible notes payable
|
|
|
29,767
|
|
|
|
29,767
|
|
Notes payable
|
|
|
100,563
|
|
|
|
68,112
|
|
Total current liabilities
|
|
|
247,802
|
|
|
|
210,516
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
Stockholders' deficiency:
|
|
|
|
|
|
|
|
|
Preferred stock, $.001 par value, 10,000,000 shares authorized, 0 issued and outstanding
|
|
|
—
|
|
|
|
—
|
|
Common stock, $.001 par value, 50,000,000 shares authorized;
|
|
|
|
|
|
|
|
|
19,519,935 and 19,519,935 issued and outstanding at January 31, 2016 and July 31, 2015
|
|
|
|
|
|
|
|
|
respectively.
|
|
|
19,520
|
|
|
|
19,520
|
|
Additional paid-in capital
|
|
|
8,256,341
|
|
|
|
8,256,341
|
|
Retained deficit
|
|
|
(8,510,663
|
)
|
|
|
(8,476,377
|
)
|
Stockholders' deficiency
|
|
|
(234,802
|
)
|
|
|
(200,516
|
)
|
Total liabilities and stockholders' deficiency
|
|
$
|
13,000
|
|
|
$
|
10,000
|
|
See accompanying notes to unaudited financial statement
Cyber Apps World, Inc.
(formerly Clean Enviro Tech Corp.)
Statements of Operations
(unaudited)
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
|
|
January 31
|
|
January 31
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net sales
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative
|
|
|
18,602
|
|
|
|
23,990
|
|
|
|
34,286
|
|
|
|
33,142
|
|
Loss from operations
|
|
|
(18,602
|
)
|
|
|
(23,990
|
)
|
|
|
(34,286
|
)
|
|
|
(33,142
|
)
|
Other (expenses)/income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of beneficial conversion feature
|
|
|
—
|
|
|
|
(370,845
|
)
|
|
|
—
|
|
|
|
(370,845
|
)
|
Net loss before provision for (benefit from) income taxes
|
|
|
(18,602
|
)
|
|
|
(394,835
|
)
|
|
|
(34,286
|
)
|
|
|
(403,987
|
)
|
Provision for (benefit from) income taxes
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Net loss
|
|
$
|
(18,602
|
)
|
|
$
|
(394,835
|
)
|
|
$
|
(34,286
|
)
|
|
$
|
(403,987
|
)
|
Net loss per common share - basic and diluted
|
|
$
|
(0.00
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.00
|
)
|
|
$
|
(0.03
|
)
|
Weighted average number of common shares outstanding – basic and diluted
|
|
|
19,519,935
|
|
|
|
19,376,764
|
|
|
|
19,519,935
|
|
|
|
14,607,743
|
|
See accompanying notes to unaudited financial statement.
Cyber Apps World, Inc.
(formerly Clean Enviro Tech Corp.)
Statements of Cash Flows
(unaudited)
For the Six Months Ended
|
|
January 31,
|
|
|
2016
|
|
2015
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(34,286
|
)
|
|
$
|
(403,987
|
)
|
Adjustments to reconcile net loss to net cash utilized by operating activities
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
—
|
|
|
|
645
|
|
Amortization of beneficial conversion feature
|
|
|
—
|
|
|
|
370,845
|
|
Expenses paid on the Company's behalf by a third party
|
|
|
32,451
|
|
|
|
32,550
|
|
Increase (decrease) in cash flows from changes in operating assets and liabilities
|
|
|
|
|
|
|
|
|
Prepaid expenses and other current assets
|
|
|
—
|
|
|
|
—
|
|
Accounts payable and accrued expenses
|
|
|
4,835
|
|
|
|
(53
|
)
|
Net cash used in operating activities
|
|
|
3,000
|
|
|
|
—
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Additions to deposit
|
|
|
(3,000
|
)
|
|
|
—
|
|
Net cash used in investing activities
|
|
|
(3,000
|
)
|
|
|
—
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities
|
|
|
—
|
|
|
|
—
|
|
CHANGE IN CASH AND CASH EQUIVALENTS
|
|
|
|
|
|
|
|
|
Net decrease in cash and cash equivalents
|
|
|
—
|
|
|
|
—
|
|
Cash and cash equivalents at beginning of year
|
|
|
—
|
|
|
|
—
|
|
Cash and cash equivalents at end of year
|
|
$
|
—
|
|
|
$
|
—
|
|
SUPPLEMENTAL CASH FLOW DISCLOSURES
|
|
|
|
|
|
|
|
|
Cash paid during the year for:
|
|
|
|
|
|
|
|
|
Interest
|
|
$
|
—
|
|
|
$
|
—
|
|
Income taxes
|
|
$
|
—
|
|
|
$
|
—
|
|
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Convertible notes issued for debt and liabilities
|
|
$
|
—
|
|
|
$
|
556,267
|
|
Common shares issued for convertible debt
|
|
$
|
—
|
|
|
$
|
526,500
|
|
Beneficial conversion feature discount
|
|
$
|
—
|
|
|
$
|
370,845
|
|
See accompanying notes to unaudited financial statement.
Cyber Apps World Inc.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
As of and for the Three and Six Months Ended
January 31, 2016
(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, 2015 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, 2016.
Going Concern -
The Company’s
financial statements for the period ended January 31, 2016, 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 and as of January 31, 2016, there was a working capital deficit of $237,802. 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. The Company expects 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, 2015.
There were no significant changes to these accounting policies during the six months ended January 31, 2016 and the Company does
not expect that the adoption of other recent accounting pronouncements will have a material impact on its financial statements.
Website Development Costs -
The Company
capitalizes its costs to develop its website and when preliminary development efforts are successfully completed, management has
authorized and committed project funding, and it is probable that the project will be completed and the website will be used as
intended. Such costs are amortized on a straight-line basis over the estimated useful life of the related asset, which approximates
three years. Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed
as incurred. Costs incurred for enhancements that are expected to result in additional material functionality are capitalized
and expensed over the estimated useful life of the upgrades. The Company is still developing its website and plans to launch the
website in April 2016 and will commence amortization once the website is placed in service.
The Company capitalized website costs of $3,000
and $-0- during the six months ended January 31, 2016 and 2015, respectively. Amortization expenses of $-0- and $-0- during the
six months ended January 31, 2016 and 2015, respectively.
Note 2. Deposit
On May 28, 2015, the Company entered into
a license agreement (the “Agreement”) with eCommerce Technologies Inc. (“Licensor”), providing for the
license by the Company of certain patented ecommerce technology (the “Licensed Technology”), under a non-exclusive
right and license to market, use or sell the Licensed Technology and improvements thereto worldwide for a period of five years,
subject to the patent coverage of the Licensed Technology. On November 15, 2015, the parties agreed to extend the due date from
November 15, 2015 to February 15, 2016. On February 15, 2016, the parties agreed to extend the due date to June 30, 2016.
As of July 31, 2015, the Company has made
a deposit of $10,000 with a remaining balance due on June 30, 2016, totaling $490,000. Through the date of this filing, the balance
remains outstanding.
Note 3. Website
During the six months ended January 31, 2016,
the Company had $3,000 in website development costs related to the licensed technology. The Company is still developing the website
and has not placed in service. Amortization will commence once the website is placed in service over a three year useful life.
Note 4. Common Stock
Effective March 1, 2016, the
Company stock has been moved from being listed on OTCQB to the Pink Sheets.
Note 5. Net Loss Per Common
Share
Loss per share is computed based on the weighted
average number of shares outstanding during the year. Diluted loss per common share is computed by dividing net loss by the weighted
average number of common shares and potential common shares during the specified periods. The Company has no outstanding options,
warrants or other convertible instruments that could affect the calculated number of shares, except for $29,767 of debt that is
convertible into common stock at approx. $0.02 per share (post split). If all of the debt is converted with common share equivalents
would be 1,488,350 (post split).
Note 6. Convertible Notes
Payable and Notes Payable
As of January 31, 2016, the
Company has a balance of convertible notes is $29,767 which is convertible into common stock at approx. $0.02 per share (post
split). If all of the debt is converted it would be 1,488,350 (post split). The debt is due upon demand and bears 0% interest.
As of January 31, 2016, the
Company has several notes payable totaling $100,563 of which $92,088 is due upon demand and bears 0% interest and $8,475 is due
on March 1, 2016 and bears 0% interest.
Note 7. Subsequent Events
On February 15, 2016, the Company and eCommerce Technologies Inc. agreed to extend the
due date from February 15, 2016 to June 30, 2016 for the balance due of $490,000.
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.
Introduction
We were incorporated on July 15, 2002, under
the laws of the State of Nevada. We changed our business in 2008, entering into a license agreement with Li-ion Motors on April
15, 2008, for the license of the development of their lithium battery technology. We sold our Zingo Telecom, Inc. and
M/S Zingo BPO Services Pvt. Ltd. subsidiaries that offered telecommunications services to business and residential customers utilizing
VoIP technology on May 15, 2008. To reflect our new business, we changed our name from Zingo, Inc. to Superlattice Power,
Inc. on April 25, 2008 and on April 2, 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.
A three-for-one forward split in our common
stock was effective October 19, 2009. The Certificate of Change filed with the Nevada Secretary of State on September 18, 2009,
for the forward split changed the number of shares of our outstanding common stock from 115,000,000 to 345,000,000, and the number
of shares of our authorized common stock in the same ratio, from 250,000,000 to 750,000,000. On April 2, 2011, the
Board approved the filing with the Secretary of State of Nevada a Certificate of Change that affected a 1:300 reverse split in
our outstanding common stock and a reduction of our authorized common stock in the same 1:300 ratio, from 750,000,000 shares to
2,500,000 shares. This was effective April 26, 2011.
On December 19, 2012, our Board of Directors
authorized the merger with our wholly-owned subsidiary, Clean Enviro Tech Corp. and also approved the filing with the Secretary
of State of Nevada a Certificate of Change that effected a 1:50 reverse split in our outstanding common stock and a reduction
of our authorized common stock in the same 1:50 ratio, from 500,000,000 shares to 10,000,000 shares. In the merger the name of
our company was changed from Sky Power Solutions Corp. to Clean Enviro Tech Corp. The change of the Company’s name to Clean
Enviro Tech Corp. and the 1:50 reverse split with the concurrent reduction of our authorized common stock in the same ratio were
approved by FINRA and effective for trading purposes on January 19, 2013.
In May 2014, the Company entered into a letter
of intent with Red Apple Pharm. They had sixty days to provide their financial records and completion of due diligence. Gordon
F. Lee was appointed as CEO on May 30, 2014. The Company didn’t receive financials. On June 20, 2014 Mr. Lee resigned.
On May 28, 2015, the Company entered
into a license agreement (the “Agreement”) with eCommerce Technologies Inc. (“Licensor”), providing for
the license by the Company of certain patented ecommerce technology (the “Licensed Technology”), under a non-exclusive
right and license to market, use or sell the Licensed Technology and improvements thereto worldwide for a period of five years,
subject to the patent coverage of the Licensed Technology. As of July 31, 2015, the Company has made a deposit of $10,000 with
a remaining balance due on February 15, 2016, totaling $490,000. On February 15, 2016, the Company and eCommerce Technologies
Inc. agreed to extend the due date from February 15, 2016 to June 30, 2016 for the balance due of $490,000.
Results of Operations for the Three
and Six months Ended January 31, 2016 and 2015
We incurred a net loss of $18,602 during the three months ended
January 31, 2016, which included: general and administrative (G&A) costs of $18,602 compared to the three months ended January
31, 2015, which included: general and administrative (G&A) costs of $23,990 and interest expense related to beneficial conversion
feature of $370,845.
We incurred a net loss of $34,286 during the six months ended January
31, 2016, which included: general and administrative (G&A) costs of $34,286 compared to the six months ended January 31, 2015,
which included: general and administrative (G&A) costs of $33,142 and interest expense related to beneficial conversion feature
of $370,845.
2016 Compared to 2015
Our net loss for the six months ended January
31, 2016 decreased to $34,286 from $403,987 for the same period ending January 31, 2015. The decrease was primarily due to a decrease
in interest expense related to beneficial conversion feature of $370,845. The general and administrative expenses increased to
$34,286 from $33,142 due to normal fluctuations in business operations.
Plan of Operations
We are developing mobile applications (“Apps”)
to make available to subscribers for several programs. The first beta app to be released will be the “INSTANT COUPONS”
platform.
The INSTANT COUPONS app will be a subscriber-based
application 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. No coupon printing is required from mobile
devices.
Cyber Apps plans to generate revenues using
technology to process and complete transactions around the world with reduced overhead and a minimal cost for handling. Products
would be shipped directly from the Merchant Partner to the customer further reducing the transaction cost for us.
Liquidity and Capital Resources
As of January 31, 2016, we had cash on hand
of $0 and liabilities of $247,802 as compared with liabilities of $210,516 at July 31, 2015. Accounts payable and accrued expenses
increased at January 31, 2016, to $117,472 as compared with $112,637 at July 31, 2015 and notes payable were $100,563 at January
31, 2016, as compared to $68,112 at July 31, 2015.
At January 31, 2016, we had a working capital deficiency
of $237,802 and a stockholders' deficit of $234,802.
We net cash provided by operating activities
of $3,000 in the six months ended January 31, 2016, as compared with $0 in the comparable period in 2015, and cash flows used
in investing activities for the purchase of website was $3,000 during 2016 and $0 in 2015.
Since our incorporation, we have
financed our operations almost exclusively through advances from our controlling shareholders. We expect to finance
operations through the sale of equity or other investments for the foreseeable future, as we do not receive significant revenue from
our new business operations. There is no guarantee that we will be successful in arranging financing
on acceptable terms.
Our ability to raise additional capital is
affected by trends and uncertainties beyond our control. We do not currently have any arrangements for financing
and we 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 us.
Our auditors are of the opinion that our continuation
as a going concern is in doubt. Our continuation as a going concern is dependent upon continued financial support
from our shareholders and other related parties.
Critical Accounting Issues
The Company's discussion and analysis of its
financial condition and results of operations are based upon the Company's financial statements, which have been prepared
in accordance with accounting principles generally accepted in the United States of America. The preparation of the financial
statements requires the Company to make estimates and judgments that affect the reported amount of assets, liabilities,
and expenses, and related disclosures of contingent assets and liabilities. On an on-going basis, the Company evaluates
its estimates, including those related to intangible assets, income taxes and contingencies and litigation. The Company
bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the
circumstances, the results of which form the basis for making judgments about carrying values of assets
and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under
different assumptions or conditions.