Summary of Significant Accounting Policies

6 Months Ended

Jan. 31, 2024

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Note 2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the unaudited interim financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

The accompanying unaudited condensed consolidated financial statements include the accounts of Leopard Energy, Inc, (formerly known as Cyber Apps World Inc.) (the “Company”). These financial statements are condensed and, therefore, do not include all disclosures normally required by accounting principles generally accepted in the United States of America. Therefore, these statements should be read in conjunction with the most recent annual financial statements of The Company for the year ended July 31, 2023, included in the Company’s Form 10-K filed with the Securities and Exchange Commission. In particular, the Company’s significant accounting principles were presented as Note 2 to the Financial Statements in that report. In the opinion of management, all adjustments necessary for a fair presentation have been included in the accompanying interim condensed financial statements and consist of only normal recurring adjustments. The results of operations presented in the accompanying interim condensed financial statements are not necessarily indicative of the results that may be expected for the full year ending July 31, 2024.

Going Concern

The accompanying unaudited interim consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future.

As reflected in the accompanying unaudited interim financial statements for the six months ended January 31, 2024, the Company incurred net loss of $55,557. The Company did not have any revenue during the six months ended January 31, 2024. As of January 31, 2024, the Company had accumulated deficit of $ 11,527,704 and a working capital deficit of $ 89,625. Management believes these factors raise substantial doubt about the Company’s ability to continue as a going concern for the next twelve months.

The Company’s financial statements for the three and six months ended January 31, 2024, have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business. The Company did not generate any revenue during the three and six months ended January 31, 2024.

Management recognized that the Company’s continued existence is dependent upon its ability to obtain needed working capital through additional equity and/or debt financing and revenue to cover expenses as the Company continues to incur losses. Since its incorporation, the Company has financed its operations through advances from its controlling shareholders, third-party convertible debt, and the sale of its common stock. Management’s plans are to finance operations through the sale of equity or other investments for the foreseeable future, as the Company does not receive significant revenue from its business operations. There is no guarantee that the Company will be successful in arranging financing on acceptable terms.

The Company’s ability to raise additional capital is affected by trends and uncertainties beyond its control. The Company does not currently have any arrangements for financing, and it may not be able to find such financing if required. Obtaining additional financing would be subject to a number of factors, including investor sentiment. Market factors may make the timing, amount, terms or conditions of additional financing unavailable to it. These uncertainties raise substantial doubt about the ability of the Company to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of these uncertainties.

Since its acquisition of a controlling interest in August 2023, Zenith Energy Ltd. (“Zenith Energy”), the Company’s controlling stockholder, has provided approximately $276,000 in working capital on behalf of the Company and also put in $45,000 paid in capital. Zenith Energy has indicated that intends to continue to finance CYAP and its expansion into the energy sector, pending the receipt of additional financing.

The Company’s significant accounting policies are summarized in Note 2 of the Company’s Annual Report on Form 10-K for the year ended July 31, 2023. There were no significant changes to these accounting policies during the three and six months ended January 31, 2024, and the Company does not expect that the adoption of other recent accounting pronouncements will have a material impact on its financial statements.

Restatement of previously issued consolidated financial statements

The Company identified series of misstatements and restated its previously issued financial statements for the years ended July 31, 2023 and 2022 in the Form 10-K filed with SEC on April 17, 2024. Accordingly, the Company has restated the accompanying unaudited consolidated financial statements for the six-month ended January 31,2024 and 2023 that were previously included in the Form 10-Q filed with the SEC on March 22, 2024.

The restatement primarily relates to equity retrospectively restatement, convertible bonds redemption liability and liabilities write off upon controlling interest transfer in August 2023.

Major Restatement Background

In October 2022, the shareholders representing a majority of the Company's issued voting shares, as well as the Company's Board of Directors approved a reverse stock split whereby each 840 pre-split shares of common stock shall be exchanged for one post-split share of common stock. Common stock, additional paid-in capital and per share data was not presented on a retroactive basis to reflect the reverse stock split in previously filed 10-K. The Company corrected the Changes in Shareholder’s Equity to retrospectively state the movement.

Subsequently on August 23, 2023, the original major shareholder, JanBella Group, LLC, sold the 100,000 Series A Preferred Shares it held to Zenith Energy Ltd. for consideration of approximately $398,400. In the change in control transaction, Zenith Energy acquired 99.87% of the voting power of the Company. Upon the share transfer, Zenith Energy bear the settlement for all existing convertible promissory notes and also partial accounts payable balance, the remining liabilities balance will be written off per controlling interest transfer. The Company previously recorded the redemption of convertible promissory notes and payment of accounts payable balance by Zenith Energy as other income. After reassessing the situation, the Company corrected the mistake to record the portion paid by Zenith Energy as a paid in capital from shareholder.

The impact of restatement

The following table summarized the effect of the restatement on each financial statement line items as of and for the six-month ended January 31, 2023 and 2022, as indicated:

Summary of restatement – unaudited condensed consolidated balance sheets

	As of January 31,
	2024			2024
	(Unaudited and Restated)			(Previously Filed)
	$			$
Current assets:
Cash	$	5,698		$	5,698
Deposits & prepayments		3,561			3,561
Total current assets		9,259			9,259
Other assets:
Lavaca Country Texas Producing Asset		39,280			39,280
Total other assets		39,280			39,280
Total Assets	$	48,539		$	48,539
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities	$	98,884		$	21,171
Total current liabilities		98,884			21,171
Long term liabilities:
Convertible notes payable		-			-
Loan payable		-			-
Total non-current liabilities		-			-
Total Liabilities		98,884			21,171
STOCKHOLDER’S DEFICIT
Preferred stock: $0,001 par value, 10,000,000 authorized, 100,000 issued and outstanding as of January 31, 2024 and July 31, 2023,		100			100
Common stock: $0,001 par value, 250,000,000 authorized, 1,272,917 issued and outstanding as of January 31, 2024 and as of July 31, 2023, respectively		1,272			1,272
Additional paid in capital		11,475,987			11,262,696
Accumulated deficit		(11,527,704	)		(11,236,700	)
Total Stockholder’s Deficit		(50,345	)		27,368

Total Liabilities and Stockholder’s Deficit	$	48,539		$	48,539

Summary of restatement – unaudited condensed consolidated statements of operations and comprehensive loss

For the three and six month periods ended January 31, 2024 and 2023 (Restated)

	For the three month period ended						For the six month period ended
	January 31, 2024 (Unaudited and Restated)			January 31, 2023 (Unaudited and Restated)			January 31, 2024 (Unaudited and Restated)			January 31, 2023 (Unaudited and Restated)
	$			$			$			$
Net Sales		-			-			-			-

Cost of Goods Sold		-			-			-			-
Gross Income		-			-			-			-

General and administrative		32,726	)		(38,447	)		(75,243	)		(62,205	)
Negotiating expenses		(1,235	)		-			(25,465	)		-
Total operating expenses		(33,961	)		(38,447	)		(100,708	)		(62,205	)

Operating loss		(33,961	)		(38,447	)		(100,708	)		(62,205	)

Other income (expense)
Write off convertible notes		-			-			8,423			-
Write off loan payable		-			-			13,134			-
Write off loan payable		-			-			26,619			-
Financial expense		(3,025	)		-			(3,025	)		-
Total other income (expense)		(3,025	)		-			45,151			-

Net loss		(36,986	)		(38,447	)		(55,557	)		(62,205	)

Net loss per share – basic and diluted		(0.03	)		(0.04	)		(0.04	)		(0.06	)
Weighted average shares outstanding – basic and diluted		1,272,917			1,059,608			1,272,917			1,057,512

For the three and six month periods ended January 31, 2024 and 2023 (Previously Filed)

	For the three month period ended						For the six month period ended
	January 31, 2024			January 31, 2023			January 31, 2024			January 31, 2023
	$			$			$			$
Net Sales		-			-			-			-

Cost of Goods Sold		-			-			-			-
Gross Income		-			-			-			-

General and administrative		(7,168	)		(53,447	)		(75,243	)		(77,205	)
Write off Accounts payable		43,619			-			43,619			-
Write off Software		(488,696	)		-			(488,696	)		-
Negotiating expenses		(25,465	)		-			25,465	)		-
Total operating expenses		(477,710	)		(53,447	)		(545,785	)		(77,205	)

Operating income (loss)		(477,710	)		(53,447	)		(545,785	)		(77,205	)

Other income (expense)
Write off convertible notes		-			-			180,686			-
Write off loan payable		11,597			-			11,597			-
Financial expense		(3,025	)		-			(3,025	)		-
Total other income (expense)		8,572			-			189,258			-

Net income (loss)		(469,138	)		(53,447	)		(356,527	)		(77,205	)

Net income (loss) per share – basic and diluted		(0.37	)		(0.00	)		(0.28	)		(0.00	)
Weighted average shares outstanding – basic and diluted		1,272,917			16,061,667			1,272,917			16,061,667

Summary of restatement – unaudited consolidated statement of changes in shareholders’ deficit

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIT

For the six-month periods ended January 31, 2024 and 2023 (Unaudited and Restated)

	Common Stock						Preferred Stock						Paid in		Accumulated
	Number			Par Value			Number			Par Value			Capital		Deficit			Total
				$						$			$		$			$
Opening balance as of July 31, 2022		961,448			961			-			-			11,123,597		(11,323,253	)		(198,695	)
Issuance of Common stock from convertible notes conversion		98,160			98						-			23,388		-			23,486
Issuance of Common Stock		37,079			37			-			-			-		-			37
Cancellation of Common shares		(37,079	)		(37	)					-			-		-			(37	)
Net Loss		-			-			-			-			-		(23,758	)		(23,758	)
Closing Balance as of October, 2022		1,059,608			1,059			-			-			11,146,985		(11,347,011	)		(198,967	)

Issuance of Common Stock		2,034			2			-			-			-		-			2
Issuance of Preferred stock								300,000			300			-		-			300
Cancellation of Preferred stock								(200,000	)		(200	)		-		-			(200	)
Net Loss																(38,447	)		(38,447	)
Closing Balance as of January 31, 2023		1,061,642			1,061			100,000			100			11,146,985		(11,385,458	)		(237,312	)


Opening balance as of July 31, 2023		1,272,917			1,272			100,000			100			11,155,185		(11,472,147	)		(315,590	)
Additional paid in capital		-			-			-			-			266,444		-			266,444
Net Loss		-			-			-			-			-		(18,571	)		(18,571	)
Closing Balance as of October, 2023		1,272,917			1,272			100,000			100			11,421,629		(11,490,718	)		(67,717	)

Additional paid in capital														54,358					54,358
Net Loss																(36,986	)		(36,986	)
Closing Balance as of January 31, 2024		1,272,917			1,272			100,000			100			11,475,987		(11,527,704	)		(50,345	)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIT

For the six-month periods ended January 31, 2024 and 2023 (Previously Filed)

											Additional			Shares
	Common Stock						Preferred Stock				paid in			to be		Accumulated
	Share			Value			Share		Value		Capital			issued		Deficit			Total
				$					$		$			$		$			$
Opening balance as of July 31, 2022		807,616,147			444,701			100,000		100		10,654,292			-		(10,882,935	)		216,158
Issuance of Common Stock		97,454,780			76,841			-		-		(38,391	)		-		-			38,450
Cancellation of Common shares		(889,011,264	)		-			-		-		-			-		-			-
Preferred Stock Issuance		-			-			200,000		200		-			-		-			200
Round up shares		2,004			2			-		-		(2	)		-		-			-
Net Loss		-			-			-		-		-			-		(77,205	)		(77,205	)
Closing Balance as of January 31, 2023		16,061,667			521,544			300,000		300		10,615,899			-		(10,960,140	)		177,603

Opening balance as of July 31, 2023		1,272,917			506,755			100,000		100		10,624,138			-		(10,880,173	)		250,820
Issuance of Common Stock		-			-			-		-		-			-		-			-
Additional paid in capital		-			-			-		-		133,075			-		-			133,075
Fair Value Adjustment		-			(505,483	)		-		-		505,483			-		-			-
Net Profit		-			-			-		-		-			-		(356,527	)		(356,527	)
Closing Balance as of January 31, 2024		1,272,917			1,272			100,000		100		11,262,696			-		(11,236,700	)		27,368

Summary of restatement – consolidated statement of cash flows

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	For the six months ended January 31,
	2024			2023			2024			2023
	(Unaudited and Restated)			(Unaudited and Restated)			(Previously Filed)			(Previously Filed)
*Cash flows from operating activities*	$			$						$
Net loss for the period		(55,557	)		(77,205	)		(356,527	)		(77,205	)
Adjustments to reconcile net loss to cash used in operating activities:
Convertible Notes Write off		(8,423	)		-			(180,686	)		-
Impairment of Intangible		-			-			488,696			-
Loan Payable write off		(13,134	)		-			(11,597	)		-
Accounts payable write off		(26,619	)		-			(43,619	)		-
Original initial discount and legal processing fees		-			19,340						19,340
Change in operating assets and liabilities
Deposits & prepayments		(3,561	)		-			(3,561	)		-
Accounts payable and accrued liabilities		19,194			(3,785	)		19,194			(19,327	)
Due to parent-operating expenses		88,075						88,075
Net cash provided from (used in) operating activities		(25	)		(61,650	)		(25	)		(96,532	)
*Cash flows from investing activities*
Lavaca County Texas Producing Asset		(39,280	)		-			(39,280	)		-
Software Development		-			(51,942	)		-			(51,942	)
Net cash used in investing activities		(39,280	)		(51,942	)		(39,280	)		(51,942	)
*Cash flows from financing activities*
Change in convertible notes payable		-			102,436			-			109,768
Proceeds from loan		-			22,000			-			-
Loan Repayment		-			(11,000	)		-			-
Proceeds from issuance of preferred shares		-			100			-			20,000
Proceeds from issuance of common shares		-			-			-			76,843
Proceeds from additional paid in capital		45,000			-			45,000			(38,393	)
Net cash provided by financing activities		45,000			113,536			45,000			148,418

Change in Cash		5,695			(56	)		5,695			(56	)
Cash – beginning of period		3			320			3			320
Cash – end of period		5,698			264			5,698			264

Supplemental cash flow disclosures
Cash paid For:
Interest		-			-
Income tax		-			-
Non-Cash Activities:
Shareholder contribution converted from due to parent balance		275,802			-

Leopard Energy, Inc. 10-Q/A