CONVERTIBLE LOANS AND WARRANTS |
NOTE
4 - CONVERTIBLE LOANS AND WARRANTS
The
following table summarizes fair value measurements by level as of June 30, 2023 and December 31, 2022 measured at fair value on a recurring
basis:
SCHEDULE OF FAIR VALUE RECURRING BASIS
December
31, 2022 | |
Level
1 | | |
Level
2 | | |
Level
3 | | |
Total | |
| |
In
U.S. dollars in thousands | |
Assets | |
| | | |
| | | |
| | | |
| | |
None | |
| - | | |
| - | | |
| - | | |
| - | |
| |
| | | |
| | | |
| | | |
| | |
Liabilities | |
| | | |
| | | |
| | | |
| | |
Convertible
Loans | |
| - | | |
| - | | |
| 2,257 | | |
| 2,257 | |
Warrants | |
| | | |
| - | | |
| 24 | | |
| 24 | |
June
30, 2023 | |
Level
1 | | |
Level
2 | | |
Level
3 | | |
Total | |
| |
In
U.S. dollars in thousands | |
Assets | |
| | | |
| | | |
| | | |
| | |
None | |
| - | | |
| - | | |
| - | | |
| - | |
| |
| | | |
| | | |
| | | |
| | |
Liabilities | |
| | | |
| | | |
| | | |
| | |
Convertible
Loans | |
| - | | |
| - | | |
| 1,687 | | |
| 1,687 | |
Warrants | |
| | | |
| - | | |
| 231 | | |
| 231 | |
The
Convertible Loans changes consist of the following as of June 30, 2023 and December 31, 2022:
SCHEDULE
OF CONVERTIBLE LOANS AT FAIR VALUE
| |
June
30, 2023 | | |
December
31, 2022 | |
| |
Convertible
Loans at Fair Value | |
| |
June
30, 2023 | | |
December
31, 2022 | |
| |
$000 | |
Opening
Balance | |
| 2,257 | | |
| 2,492 | |
Additional
convertible loans (a) | |
| 153 | | |
| 526 | |
Repayment
of convertible loan (b) | |
| - | | |
| (18 | ) |
Conversion
of convertible loan (c) | |
| (243 | ) | |
| - | |
Change
in fair value of convertible loans liability | |
| (480 | ) | |
| (743 | ) |
Closing
balance | |
| 1,687 | | |
| 2,257 | |
| (a) | During
the six months ended June 30, 2023, and the year ended December 31, 2022, the Company received
a principal amount of $152,750 and $526,826 respectively. The amount received during the
period is convertible at a price equal 65% of the lowest trading price during the (10)
days prior to the conversion date, with 35% discount. |
| (b) | During
the six months ended June 30, 2023, and the year ended December 31, 2022, the Company repaid
nill and $17,500, respectively. |
| (c) | During
the six months ended June 30, 2023, and the year ended December 31, 2022, a total amount
of $242,538 and $0 respectively, were converted into 19,390,359 shares
of common stock. |
APPYEA
INC.
NOTES
TO THE FINANCIAL STATEMENTS
NOTE
4 - CONVERTIBLE LOANS AND WARRANTS (cont.)
The
estimated fair values of the Convertible loans were measured according to the Monte Carlo Model using the following assumptions:
SCHEDULE
OF FAIR VALUES OF WARRANTS AND CONVERTIBLE LOAN ASSUMPTION USED
| |
As
of June 30, | | |
As
of December 31, | |
| |
2023 | | |
2022 | |
Expected
term (in years) | |
| 1-1.5 | | |
| 0.5 | |
Expected
average (Monte Carlo) volatility | |
| 171 | % | |
| 169 | % |
Expected
dividend yield | |
| - | | |
| - | |
Risk-free
interest rate | |
| 5.2%-5.4 | % | |
| 4.8 | % |
WACC | |
| 30 | % | |
| 30 | % |
The
following table summarizes information relating to outstanding and exercisable warrants as of December 31, 2022:
SUMMARIZES
RELATING TO OUTSTANDING AND EXERCISABLE WARRANTS
Warrants
Outstanding and Exercisable | | |
| |
Number
of | | |
Weighted
Average Remaining Contractual life | | |
Weighted
Average | | |
Valuation
as of | |
Warrants | | |
(in
years) | | |
Exercise
Price | | |
December
31, 2022 | |
| 300,000 | | |
| 2.9 | | |
| 0.043 | | |
$ | 11,351 | |
| 300,000 | | |
| 3.35 | | |
| 0.043 | | |
$ | 11,679 | |
| 8,334 | | |
| 2.9 | | |
| 0.6 | | |
$ | 230 | |
| 32,500 | | |
| 3.35 | | |
| 0.6 | | |
$ | 992 | |
The
following table summarizes information relating to outstanding and exercisable warrants as of June 30, 2023:
Warrants
Outstanding and Exercisable | | |
| |
Number
of | | |
Weighted
Average Remaining Contractual life | | |
Weighted
Average | | |
Valuation
as of | |
Warrants | | |
(in
years) | | |
Exercise
Price | | |
June
30, 2023 | |
| 300,000 | | |
| 2.41 | | |
| 0.022 | | |
$ | 1,794 | |
| 300,000 | | |
| 2.86 | | |
| 0.022 | | |
$ | 1,955 | |
| 8,334 | | |
| 2.41 | | |
| 0.6 | | |
$ | 23 | |
| 32,500 | | |
| 2.86 | | |
| 0.6 | | |
$ | 116 | |
| 7,000,000 | * | |
| 1.00 | | |
| 0.04 | | |
$ | 227,014 | |
During
the quarter the company issued a new warrant to an Additional Third Party Note holder. See Note 6-H.
APPYEA
INC.
NOTES
TO THE FINANCIAL STATEMENTS
NOTE
4 - CONVERTIBLE LOANS AND WARRANTS (cont.)
The
estimated fair values of the Warrants were measured according to the data as follows:
SCHEDULE OF FAIR VALUES OF WARRANTS AND CONVERTIBLE LOAN ASSUMPTION USED
| |
As
of June 30, | | |
As
of December 31, | |
| |
2023 | | |
2022 | |
Expected
term | |
| 2.41-2.86 | | |
| 2.9-3.35 | |
Expected
average volatility | |
| 172.17%-174 | % | |
| 179 | % |
Expected
dividend yield | |
| - | | |
| - | |
Risk-free
interest rate | |
| 4.54%-4.74 | % | |
| 4.09%-4.15 | % |
Common
Stock Market Value | |
$ | 0.009 | | |
$ | 0.043 | |
|