AppYea, Inc. reported its financial results for the first quarter of 2025, revealing revenues of $3,000, a decrease from $13,000 in the same period of 2024. The company attributed this decline primarily to the recognition of previously delivered wristbands that were paid for in advance during 2023. The gross margin for the quarter was negative $1,000, reflecting the cost of services at $4,000. AppYea's net loss for the quarter was $166,000, a significant improvement compared to a net loss of $1,244,000 in the first quarter of 2024.
The company's operating expenses also saw notable changes. Research and development expenses decreased from $60,000 in Q1 2024 to $6,000 in Q1 2025, largely due to the forfeiture of stock options by former CEO Adi Shemer. General and administrative expenses also fell from $294,000 to $111,000, driven by reduced salary and professional service costs. Sales and marketing expenses decreased from $54,000 to $17,000, as the company postponed its marketing campaign to the second quarter of 2025.
In terms of strategic developments, AppYea continues to focus on its flagship product, the AppySleep wristband, which is designed to monitor and treat snoring and sleep apnea. The product is currently in serial manufacturing and sales stages. The company has also engaged in various consulting agreements, including one that granted 2,000,000 shares of common stock to a consultant for services. Additionally, AppYea is preparing to file for FDA approval for its AppySleep LAB app, which aims to monitor breathing patterns during sleep.
Operationally, AppYea's total assets as of March 31, 2025, stood at $411,385, with current liabilities of $1,686,000. The company reported an accumulated deficit of $10,524,000, raising concerns about its ability to continue as a going concern. AppYea's cash and cash equivalents increased to $95,000 from $79,000 at the end of 2024, but the company continues to rely on external financing to support its operations. The management indicated that additional capital will be necessary to maintain operations and fund ongoing research and development efforts.
Looking ahead, AppYea plans to enhance its product offerings and expand its market presence. The company aims to establish its technology as a standard in the sleep monitoring and treatment sector, with plans to file for FDA approvals for its products in the coming years. However, the company acknowledges the challenges it faces in securing sufficient funding and generating revenue to meet its obligations, which could impact its future operations.
About APPYEA, INC
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