APPYEA, INC

AppYea, Inc.

Overview

AppYea has shifted its focus to a blockchain-based lottery and gaming platform. The company designs, develops, and deploys production-ready infrastructure for lottery and gaming operators with emphasis on fairness, transparency, and regulatory compliance. Its value proposition centers on verifiable randomness, auditable records, tamper-evident receipts for draws and payouts, and multi-chain support with an API/SDK integration layer for operators.

Platform architecture and capabilities

• Multi-layer platform:
  • Protocol Layer: blockchain-based core lottery logic and data recording.
  • Platform Layer: full-stack system for operator configuration, game management, reporting, and user management.
  • API/Services Layer: API services that provide third-party access to randomness, operator tools, and integrations without requiring direct blockchain development.
• Blockchain and randomness:
  • Uses external randomness providers (for example Chainlink VRF) to generate verifiable, cryptographically provable draw outcomes.
  • Supports multiple networks, including Binance Smart Chain and leading Layer 2 networks such as Base.
• Core operations automated with smart contracts:
  • Recording of ticket purchases and participation data
  • Draw execution
  • Prize allocation and distribution
• Security and compliance:
  • Audited contract frameworks, OWASP-aligned development practices, observability, and internal controls
  • Audit trails, regulatory-ready reporting, and verifiable draw results

Products and services

• Platform access and deployment tailored to operator requirements and regulatory environments
• Custom development: bespoke game configurations, local payment integrations, regulatory adaptations, and feature development
• Ongoing support and maintenance: monitoring, issue resolution, updates, and live-operations support
• Additional modules: lottery lifecycle management, admin/reporting tooling, affiliate/promotional systems, and optional player engagement features
• Roadmap: continued development of protocol, platform, and API/services layers plus expansion of network and regional capabilities

Market focus and customers

• Geographic focus: active in Africa, with a deployed customer in The Gambia
• Commercial progress: one active customer deployment as of the report date
• Growth strategy: expand into additional regions, including Asia and Europe, and partner with licensed operators to modernize lottery infrastructure

Competitive positioning

• Competitors cited include Camelot UK, Intralot, and IGT
• Stated advantages: auditable decentralized transactions, automated operations, modular and rapid deployments, hybrid fiat-crypto functionality, and transparent blockchain-native processes

Corporate history and structure

• Incorporated in South Dakota in 2012; re-domiciled to Nevada on November 1, 2021
• August 2, 2021: entered into a stock exchange agreement with SleepX Ltd. (Israel); SleepX became a wholly owned subsidiary. SleepX shareholders received AppYea common stock to achieve 80% ownership, finalized in March 2022 after a reverse stock split
• July 2, 2021: CEO Barry Molchadsky acquired Series A Preferred Stock with enhanced voting and conversion terms that conferred control of a majority voting stake
• Historically operated in digital health via SleepX and related entities; on August 21, 2025 the company announced a strategic pivot to blockchain lottery and gaming

Financial snapshot (as of December 31, 2025)

• Employees: fourteen personnel (reported breakdown: five in administration, ten in research and development, and two in marketing)
• Negative working capital: approximately $0.22 million
• Stockholders’ surplus: about $12.9 million
• Net operating loss: $15.1 million for the year ended December 31, 2025
• Net cash used in operations: $0.6 million for the year ended December 31, 2025
• Anticipated cash needs: approximately $500,000 to complete product design/testing and to build infrastructure for growth
• The audited financial statements are prepared on a going concern basis

Operations and facilities

• Corporate office: 16 Balfour Street, Jerusalem, Israel
• The company leases office space and does not own real property; some leased space is partly the personal residence of the Chairman

Intellectual property and licensing

• SleepX and related entities hold a licensing agreement with Ben-Gurion University and Mor Research Applications for sensor and software solutions in sleep monitoring
• The license is exclusive worldwide for 15 years, with royalty and milestone payments and standard termination provisions
• Certain exit scenarios provide licensors with exit fees and/or equity rights

Regulatory and risk considerations

• The business spans lottery and gaming regulation, data privacy, anti-money laundering, export controls, and securities laws across multiple jurisdictions
• Regulatory changes could affect operations and market access
• The company’s stock is not listed on a national exchange and faces risks including potential dilution, customer concentration, cybersecurity threats, and geopolitical risk tied to international operations
• Operations rely on third-party vendors and partners for essential services and data handling
• Significant voting control is held by current senior management through enhanced voting rights