AppYea, Inc. reported significant financial challenges in its 10-K filing for the fiscal year ending December 31, 2024. The company generated $29,000 in revenue, a notable increase from $0 in the previous year, but still reflects its ongoing struggle to achieve profitability. AppYea's net loss for the year was $4.03 million, compared to a loss of $1.82 million in 2023, indicating a worsening financial position. The accumulated deficit has now reached $10.36 million, raising concerns about the company's ability to sustain operations without additional funding.
The filing highlights a substantial increase in research and development expenses, which rose from $124,000 in 2023 to $339,000 in 2024. This increase is attributed to intensified efforts in product development, particularly for its AppySleep product line, which includes wearable devices aimed at treating sleep apnea and snoring. General and administrative expenses decreased from $1.39 million to $1.11 million, primarily due to lower salary expenses, although a significant portion of the 2024 expenses was attributed to non-cash stock-based compensation.
Strategically, AppYea has focused on enhancing its product offerings, with the AppySleep wristband currently in serial manufacturing and sales. The company successfully piloted the product with over 200 users and plans to file for FDA approval for its AppySleep LAB app in 2025. However, the company faces challenges in securing the necessary capital to continue its operations and product development. As of December 31, 2024, AppYea had only $79,000 in cash against liabilities of approximately $4.53 million, including $1.67 million in current liabilities.
Looking ahead, AppYea's management has expressed substantial doubt about the company's ability to continue as a going concern without raising additional capital. The company anticipates needing at least $5 million to fund ongoing operations and product development. Future funding may come from a combination of equity offerings, debt financing, and strategic partnerships, but the company acknowledges the uncertainty surrounding its ability to secure such funding on favorable terms. The filing underscores the critical need for AppYea to navigate its financial challenges effectively to realize its business objectives and achieve market acceptance for its products.
About APPYEA, INC
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