10-Q: Cyber Apps World Inc. Reports Q2 2024 Results, Highlights Shift to Energy Sector
Quarterly Report
Cyber Apps World Inc. reports a net loss for Q2 2024 and details its strategic shift towards acquiring energy production assets in the U.S.
Summary
- Cyber Apps World Inc. reported a net loss of $356,527 for the six months ended January 31, 2024, compared to a net loss of $77,205 for the same period in 2023.
- The company had no revenue for the three and six-month periods ended January 31, 2024 and 2023.
- Operating expenses for the six months ended January 31, 2024, totaled $545,785, which included a write-off of software assets.
- The company's focus has shifted to acquiring energy production and development opportunities in the U.S., with the first acquisition being a 5% royalty interest in producing oil wells in Lavaca County, Texas.
- Zenith Energy, the controlling stockholder, has provided approximately $140,000 in working capital and intends to provide additional funding.
- The company's cash position as of January 31, 2024, was $5,698.
- The company's accumulated deficit as of January 31, 2024, was $11,236,700.
Sentiment
Score: 3
Explanation: The sentiment is negative due to the significant net loss, lack of revenue, and reliance on external funding. However, the strategic shift to the energy sector and support from Zenith Energy offer some potential for future improvement.
Positives
- The company has shifted its focus to the energy sector, potentially opening up new revenue streams.
- Zenith Energy, the controlling stockholder, is providing financial support.
- The company completed its first acquisition in the U.S. energy production sector.
Negatives
- The company reported a significant net loss of $356,527 for the six months ended January 31, 2024.
- The company had no revenue for the three and six-month periods ended January 31, 2024 and 2023.
- The company wrote off $488,696 in software assets.
- The company has a substantial accumulated deficit of $11,236,700.
Risks
- The company's ability to continue as a going concern is dependent on obtaining additional financing.
- The company's disclosure controls and procedures were not effective as of January 31, 2024.
- The company has a history of losses and a significant accumulated deficit.
- The company's success depends on its ability to successfully acquire and develop energy production opportunities.
Future Outlook
The company intends to complete additional acquisitions in the U.S. energy sector and expects to raise additional capital through the sale of equity or debt securities.
Management Comments
- Zenith Energy has advised us that intends to provide the Company with additional working capital to fund the operations and acquisitions, pending receipt of additional funding.
Industry Context
The company's shift to the energy sector reflects a strategic pivot to capitalize on opportunities in U.S. energy production, potentially aligning with broader industry trends in energy investment and development.
Comparison to Industry Standards
- It is difficult to compare Cyber Apps World's performance to industry standards due to its transition from mobile applications to energy production.
- Companies like Amplify Energy Corp. and Ring Energy, Inc. are smaller US based oil and gas producers that could be used as a benchmark in the future.
- However, these companies have significantly larger operations and revenue streams than Cyber Apps World currently possesses.
Management Changes
| Role | Previous Person | New Person | Effective Date | Reason |
|---|---|---|---|---|
| Secretary and Director | Ippolito Cattaneo | TBD | 2024-03-06 | Stepped down |
Stakeholder Impact
- Shareholders face increased risk due to the company's financial losses and dependence on external funding.
- Employees may experience uncertainty due to the company's strategic shift and financial challenges.
- The company's creditors face increased risk due to its financial losses and dependence on external funding.
Next Steps
- Complete additional acquisitions in the U.S. energy sector.
- Raise additional capital through the sale of equity or debt securities.
Key Dates
| Date | Description |
|---|---|
| 2002-07-15 | Company incorporated as Titan Web Solutions, Inc. |
| 2013-01-18 | Company filed a Certificate of Change that affected a 1:50 reverse split in the Company's outstanding common stock |
| 2015-04-09 | Company merged with Cyber Apps World Inc. and changed its name to Cyber Apps World Inc. |
| 2021-08-18 | Company increased its authorized capital to 5,000,000,000 shares of common stock with par value $0.00075. |
| 2022-06-23 | Company issued 100,000 Series A Preferred Shares for consideration of $100. |
| 2023-07-06 | JanBella Group, LLC acquired 100,000 outstanding shares of Super A Voting Preferred Stock. |
| 2023-07-07 | 200,000 shares of Series A Super Voting Preferred Stock were cancelled. |
| 2023-08-23 | JanBella Group sold the Series A Preferred Shares to Zenith Energy. |
| 2023-10-04 | Company incorporated its newly created subsidiary CYAP Oil, LLC, in Houston (Texas). |
| 2024-01-17 | Company purchased a 5% royalty interest in a package of seven (7) producing oil wells located in the Eagle Ford Shale, Lavaca County, Texas. |
| 2024-01-31 | End of the quarterly period. |
| 2024-03-06 | Ippolito Cattaneo stepped down as Secretary and a director of the Company. |
| 2024-03-21 | 1,272,917 shares of common stock are issued and outstanding. |
| 2024-03-22 | Date of report filing. |
Keywords
energy production, oil wells, acquisition, financial results, net loss, Cyber Apps World, Zenith Energy
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