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 three and nine months ended April 30, 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
|
|
|
|
|
|
|
|
April
30,
|
|
July
31,
|
|
|
2016
|
|
2015
|
|
(unaudited)
|
|
|
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
|
|
$
|
121,163
|
|
|
$
|
112,637
|
|
Convertible
notes payable
|
|
|
29,767
|
|
|
|
29,767
|
|
Notes
payable
|
|
|
41,278
|
|
|
|
68,112
|
|
|
|
|
|
|
|
|
|
|
Total
current liabilities
|
|
|
192,208
|
|
|
|
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 as of July 31, 2015;
|
|
|
|
|
|
|
|
|
24,319,935
and 19,519,935 issued and outstanding at April 30, 2016 and July 31, 2015
|
|
|
|
|
|
|
|
|
respectively.
|
|
|
24,320
|
|
|
|
19,520
|
|
|
|
|
|
|
|
|
|
|
Additional
paid-in capital
|
|
|
8,347,541
|
|
|
|
8,256,341
|
|
Retained
deficit
|
|
|
(8,551,069
|
)
|
|
|
(8,476,377
|
)
|
|
|
|
|
|
|
|
|
|
Stockholders'
deficiency
|
|
|
(179,208
|
)
|
|
|
(200,516
|
)
|
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' deficiency
|
|
$
|
13,000
|
|
|
$
|
10,000
|
|
|
|
|
|
|
|
|
|
|
See
accompanying notes to unaudited financial statements
|
|
|
|
|
|
|
|
|
Cyber
Apps World, Inc.
|
(formerly
Clean Enviro Tech Corp.)
|
Statements
of Operations
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the Three Months Ended
|
|
For
the Nine Months Ended
|
|
|
April
30,
|
|
April
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net
sales
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General
and administrative
|
|
|
6,806
|
|
|
|
19,389
|
|
|
|
41,092
|
|
|
|
52,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
from operations
|
|
|
(6,806
|
)
|
|
|
(19,389
|
)
|
|
|
(41,092
|
)
|
|
|
(52,531
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
(expenses)/income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
on settlement of debt
|
|
|
(33,600
|
)
|
|
|
—
|
|
|
|
(33,600
|
)
|
|
|
—
|
|
Amortization
of beneficial conversion feature
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(370,845
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss before provision for (benefit from) income taxes
|
|
|
(40,406
|
)
|
|
|
(19,389
|
)
|
|
|
(74,692
|
)
|
|
|
(423,376
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Provision
for (benefit from) income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
$
|
(40,406
|
)
|
|
$
|
(19,389
|
)
|
|
$
|
(74,692
|
)
|
|
$
|
(423,376
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss per common share - basic and diluted
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
|
$
|
(0.05
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares outstanding – basic and diluted
|
|
|
20,416,638
|
|
|
|
19,517,764
|
|
|
|
19,816,662
|
|
|
|
8,332,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See
accompanying notes to unaudited financial statements
|
|
|
|
|
|
|
|
|
Cyber
Apps World, Inc.
|
(formerly
Clean Enviro Tech Corp.)
|
Statements
of Cash Flows
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the Nine Months Ended
|
|
|
|
|
April
30,
|
|
|
|
|
2016
|
|
2015
|
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
Net
loss
|
$ (74,692)
|
|
$ (423,376)
|
|
Adjustments
to reconcile net loss to net cash utilized by operating activities
|
|
|
|
|
|
Depreciation
|
-
|
|
967
|
|
|
Amortization
of beneficial conversion feature
|
-
|
|
370,845
|
|
|
Expenses
paid on the Company's behalf by a third party
|
35,566
|
|
49,513
|
|
|
Loss
on settlement of debt
|
33,600
|
|
-
|
|
Increase
(decrease) in cash flows from changes in operating assets and liabilities
|
|
|
|
|
|
|
Prepaid
expenses and other current assets
|
-
|
|
(750)
|
|
|
|
Accounts
payable and accrued expenses
|
8,526
|
|
2,801
|
|
Net
cash provided by (used in) operating activities
|
3,000
|
|
-
|
|
|
|
|
|
|
|
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
Web
development costs
|
(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
|
$ -
|
|
$ 468,000
|
|
Common
shares issued for convertible debt – related party
|
$ -
|
|
$ 58,500
|
|
Beneficial
conversion feature discount
|
$ -
|
|
$ 370,845
|
|
Common
shares issued for settlement of debt
|
$ 62,400
|
|
$ -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See
accompanying notes to unaudited financial statements
|
Cyber Apps
World Inc.
NOTES TO UNAUDITED
FINANCIAL STATEMENTS
As of and
for the Three and Nine Months Ended April 30, 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 April 30, 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 April 30, 2016, there was a working capital deficit of $182,208. 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 nine months ended April
30, 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 late June
2016 and will commence
amortization once the website is placed in service.
The Company
capitalized website costs of $3,000 and $-0- during the nine months ended April 30, 2016 and 2015, respectively. Amortization
expenses of $-0- and $-0- during the nine months ended April 30, 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 nine
months ended April 30, 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 it in service. Amortization will commence once the website is placed in service
over a three year useful life.
Note
4. Common Stock
On
April 18, 2016, the Company agreed to issue 4,800,000 shares of common stock for the settlement of debt of $62,400. The shares
were issued on May 31, 2016.
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. If all of the debt is converted with
common share equivalents would be 1,488,350.
Note
6. Convertible Notes Payable and Notes Payable
As
of April 30, 2016, the Company has a balance of convertible notes is $29,767 which is convertible into common stock at approx.
$0.02 per share. If all of the debt is converted it would be 1,488,350. The debt is due upon demand and bears 0% interest.
As
of April 30, 2016, the Company has several notes payable totaling $41,278 which is due upon demand and bears 0% interest.
On
April 18, 2016, the Company agreed to convert $62,400 of debt into 4,800,000 shares of common stock, which will reduce the debt
and notes owed. The Company recorded a loss on settlement of debt of $33,600. The shares were issued on May 31, 2016.
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 Nine months Ended April 30, 2016 and 2015
We incurred a net loss of $40,406
during the three months ended April 30, 2016, which included: general and administrative (G&A) costs of $6,806 and loss on
settlement of debt of $33,600 compared to a net loss of $19,368 for the three months ended April 30, 2015, which included: general
and administrative (G&A) costs of $19,389.
We incurred a net loss of $74,692
during the nine months ended April 30, 2016, which included: general and administrative (G&A) costs of $41,092 and loss on
settlement of debt of $33,600 compared to a net loss of $423,376 for the nine months ended April 30, 2015, which included: general
and administrative (G&A) costs of $52,531 and interest expense related to beneficial conversion feature of $370,845.
Our net loss for the nine months
ended April 30, 2016 decreased to $74,692 from $423,376 for the same period ending April 30, 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
decreased to $41,092 from $52,531 due to normal fluctuations in business operations. There was a loss on settlement of debt during
the nine months ended April 30, 2016 of $33,600.
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 April
30, 2016, we had cash on hand of $0 and liabilities of $192,208 as compared with liabilities of $210,516 at July 31, 2015. Accounts
payable and accrued expenses increased at April 30, 2016, to $121,163 as compared with $112,637 at July 31, 2015 and notes payable
were $41,278 at April 30, 2016, as compared to $68,112 at July 31, 2015.
At April 30,
2016, we had a working capital deficiency of $182,208 and a stockholders' deficit of $179,208.
We had net cash
provided by operating activities of $3,000 in the nine months ended April 30, 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.