AppYea, Inc. reported its financial results for the first quarter of 2026, revealing a significant shift in its operational focus following the acquisition of blockchain-based lottery technology from Techlott Enterprises Ltd. As of March 31, 2026, the company did not generate any revenue, a decrease from $3,000 in the same period last year. The absence of revenue reflects the company's transition from its previous digital health products to a new business model centered on blockchain technology for lottery and gaming operations. The net loss for the quarter was approximately $1.57 million, compared to a net loss of $166,000 in the first quarter of 2025.
The company's total assets as of March 31, 2026, were reported at $21.54 million, a slight decrease from $21.73 million at the end of 2025. Cash and cash equivalents increased to $811,000 from $408,000, primarily due to a capital raise in January 2026, which generated $750,000 in gross proceeds. However, total liabilities also rose to $9.73 million, up from $8.8 million, largely driven by an increase in current liabilities, including a derivative liability related to anti-dilution rights amounting to $7.84 million.
Operationally, AppYea has made strategic changes, including the appointment of a new executive team in late 2025, which has led to increased general and administrative expenses of $413,000 for the quarter, compared to $111,000 in the prior year. Research and development expenses also rose to $215,000, reflecting ongoing efforts to enhance the newly acquired lottery platform. The company has initiated its first customer deployment in The Gambia, marking its entry into the market for blockchain-based lottery solutions.
Looking ahead, AppYea's management expressed a commitment to expanding its blockchain technology platform and securing additional customers. However, the company faces substantial challenges, including an accumulated deficit of $27 million and ongoing cash flow constraints. The financial statements indicate a substantial doubt about the company's ability to continue as a going concern, emphasizing the need for further capital to support its operations and strategic objectives. The company plans to explore various financing options, including equity offerings and strategic partnerships, to ensure its long-term viability.
About Techlott Inc.
AppYea, Inc. is a digital health company specializing in innovative wearable solutions for sleep apnea and snoring. Its flagship products, including the AppySleep wristband and AppySleep LAB app, leverage AI and sensing technologies for accurate monitoring and treatment. Targeting a growing market projected to reach $8.6 billion by 2028, AppYea aims to enhance sleep quality while pursuing FDA approvals and expanding its product pipeline through strategic partnerships and R&D initiatives.
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