Quarterly Report (10-q)

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: June 30, 2018

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission file number: 333-206764

APPSOFT TECHNOLOGIES, INC.

(Name of Small Business Issuer in its charter)

Nevada		47-3427919
(State or other jurisdiction of Identification No.)		(I.R.S. Employer incorporation or organization)

1225 Franklin Avenue, Suite 325, Garden City, NY 11530

Address of registrant’s principal executive offices

(516) 224-7717

Issuer’s telephone number

(Former name, former address and former

fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). x Yes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨ (Do not check if a smaller reporting company)	Smaller reporting company	x
Emerging Growth Company	x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ¨ Yes x No

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date:

At August 15, 2018, there were 4,145,198 shares of common stock outstanding.

PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

AppSoft Technologies, Inc.

Balance Sheets

	As of			As of
	June 30, 2018 (Unaudited)			December 31, 2017 (Audited)
CURRENT ASSETS
Cash	$	-		$	-
TOTAL CURRENT ASSETS		-			-
FIXED ASSETS
Computer Equipment, net		1,247			1,455
TOTAL FIXED ASSETS		1,247			1,455
OTHER ASSETS
Gaming Platform, net		39,000			45,000
Phone Apps, net		17,500			22,500
TOTAL OTHER ASSETS		56,500			67,500
TOTAL ASSETS	$	57,747		$	68,955

LIABILITIES
CURRENT LIABILITIES
Accounts Payable and Accruals		43,614			44,959
Convertible Note Payable		10,000			10,000
Accrued Interest		2,960			1,856
TOTAL CURRENT LIABILITIES		56,574			56,815

Note Payable		121,061			90,209
TOTAL LIABILITIES		177,635			147,024

COMMITMENTS AND CONTINGENCIES	$	-		$	-

STOCKHOLDER’S EQUITY
Series A Cumulative, Convertible Preferred stock ($0.0001 par value; 10,000,000 shares authorized; 1,945,900 shares issued and outstanding at June 30, 2018 and December 31, 2017)	$	195		$	195
Common stock ($0.0001 par value; 1,000,000,000 shares authorized; 4,038,214 shares issued and outstanding at June 30, 2018 and 4,032,500 issued and outstanding at December 31, 2017)		404			403
Stock Subscription Receivable		-			-
Additional Paid in Capital		480,508			474,409
Additional Paid in Capital - Stock Warrants		42,400			42,400
Accumulated Deficit		(643,395	)		(595,476	)
TOTAL STOCKHOLDER’S EQUITY (DEFICIT)		(119,888	)		(78,069	)

TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY/(DEFICIT)	$	57,747		$	68,955

The accompanying notes are an integral part of these financial statements.

AppSoft Technologies, Inc.

Statements of Operations

	For the three months ended June 30,						For the six months ended June 30,
	2018 (Unaudited)			2017 (Unaudited)			2018 (Unaudited)			2017 (Unaudited)

Sales	$	206		$	286		$	206		$	553
Total Revenue	$	206		$	286		$	206		$	553

EXPENSES:
Selling, General and Administrative		6,862			29,238			7,468			34,577
Amortization/Depreciation Expense		5,604			5,604			11,208			11,208
Interest Expense		572			352			1,104			459
Outside Services		3,400			15,300			3,400			15,300
Outside Services - Stock issued for Services		-			52,500			-			52,500
Professional Fees		18,405			2,864			24,945			3,608
Total Expense		34,843			105,858			48,125			117,652
Loss from operations	$	(34,637	)	$	(105,572	)	$	(47,919	)	$	(117,099	)
Provision for Income Taxes	$	-		$	-		$	-		$	-
NET LOSS		(34,637	)		(105,572	)		(47,919	)		(117,099	)
Weighted average common shares outstanding, basic and fully diluted		4,036,905			3,257,159			4,034,691			3,220,533

Basic and fully diluted net loss per common share:	$	(0.01	)	$	(0.03	)	$	(0.01	)	$	(0.04	)

The accompanying notes are an integral part of these financial statements.

AppSoft Technologies, Inc.

Statements of Cash Flows

	For the six months ended June 30,
	2018 (Unaudited)			2017 (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(47,919	)	$	(117,099	)

Amortization and Depreciation		11,208			11,208
Shares issued for Services		-			52,500
Adjustments to reconcile net (loss) to net cash provided by (used in) operations:
Changes in Assets and Liabilities:
Increase (decrease) in Accounts Payable and Other Accruals		(858	)		2,546
Increase (decrease) in Accrued Interest Expense		1,104			459
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		(36,465	)		(50,386	)
CASH FLOWS TO/(FROM) FINANCING ACTIVITIES:
Note Payable - borrowings		30,852			26,100
Note Payable - repayment		-			(800	)
Proceeds from sale of Common Stock		6,000			30,500
Bank overdraft		(487	)		-
Capital Contributions		100			-
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		36,465			55,800

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		-			5,414

CASH AND CASH EQUIVALENTS,
BEGINNING OF THE PERIOD		-			-

END OF THE PERIOD	$	-		$	5,414

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
CASH PAID DURING THE PERIOD FOR:
Interest	$	-		$	-
Taxes	$	-		$	-

The accompanying notes are an integral part of these financial statements.

NOTE A—BUSINESS ACTIVITY

AppSoft Technologies (the “Company”) was organized under the laws of the State of Nevada March 24, 2015. The Company’s fiscal year end is December 31 ^st . The Company develops, publishes and markets mobile software applications for smartphones and tablet devices (“Apps”). We currently own a portfolio comprising over 400 Apps titles including games designed to appeal to a broad cross section of consumers and legal-related Apps that provide compilations of federal and state laws and regulations across a variety of legal disciplines and digests of court decisions rendered by federal courts. Consumers download our Apps through direct-to-consumer digital storefronts, such as the Apple App Store and Google Play Store.

We currently generate revenue from sales, or downloads, of our Apps and from advertisements published on our ad supported game titles.

NOTE B—GOING CONCERN

The accompanying financial statements have been prepared on a going concern basis, which assumes the Company will realize its assets and discharge its liabilities in the normal course of business. As reflected in the accompanying financial statements, the Company has a deficit accumulated of $634,675 and cash used in operations of $43,395 at June 30, 2018.

The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. These circumstances raise substantial doubt about the Company’s ability to continue as a going concern for the 12 months from the date when these financial statements were issued. The accompanying financial statements do not include any adjustments that might arise because of this uncertainty.

To address these aforementioned, management has undertaken the following initiatives: 1) enter into discussions to secure additional equity funding from current or new shareholders; 2) undertake a program to continue to monitor the Company’s ongoing working capital requirements and minimum expenditure commitments; 3) continue their focus on maintaining an appropriate level of corporate overhead in line with the Company’s available cash resources.

NOTE C—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation- The financial statements included herein were prepared under Generally Accepted Accounting Principles (GAAP).

All adjustments have been made which in the opinion of management are necessary, normal, and recurring in nature for presentation.

Interim filings should be read in conjunction with the Company’s annual report as of December 31, 2017.

Cash and Cash Equivalents- For purposes of the Statement of Cash Flows, the Company considers liquid investments with an original maturity of three months or less to be cash equivalents.

Management’s Use of Estimates- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The financial statements above reflect all of the costs of doing business.

Revenue Recognition- The Company applies paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable and earned less estimated future doubtful accounts. The Company considers revenue realized or realizable and earned when all the following criteria are met:

(i)

persuasive evidence of an arrangement exists,

(ii)

the services have been rendered and all required milestones achieved,

(iii)

the sales price is fixed or determinable, and

(iv)

collectability is reasonably assured.

NOTE C—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—CONT’D

Comprehensive Income (Loss) - The Company reports Comprehensive income and its components following guidance set forth by section 220-10 of the FASB Accounting Standards Codification which establishes standards for the reporting and display of comprehensive income and its components in the financial statements. There were no items of comprehensive income (loss) applicable to the Company during the period covered in the financial statements.

Net Income per Common Share- Net loss per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during each period. There was a total of 19,459,000 upon conversion of preferred stock and 20,000 upon conversion for an outstanding note payable as of June 30, 2018.

Deferred Taxes- The Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date.

Fair Value of Financial Instruments- The carrying amounts reported in the balance sheet for cash, accounts receivable and payable approximate fair value based on the short-term maturity of these instruments.

Accounts Receivable- Accounts deemed uncollectible are written off in the year they become uncollectible. As of June 30, 2018, and 2017 the balance in Accounts Receivable was $0.

Impairment of Long-Lived Assets- The Company evaluates the recoverability of its fixed assets and other assets in accordance with section 360-10-15 of the FASB Accounting Standards Codification for disclosures about Impairment or Disposal of Long-Lived Assets. Disclosure requires recognition of impairment of long-lived assets in the event the net book value of such assets exceeds its expected cash flows. If so, it is impaired and is written down to fair value, which is determined based on either discounted future cash flows or appraised values. The Company adopted the statement on inception. No impairments of these types of assets were recognized during the periods ended June 30, 2018 and 2017.

Stock-Based Compensation- The Company accounts for stock-based compensation using the fair value method following the guidance set forth in section 718-10 of the FASB Accounting Standards Codification for disclosure about Stock-Based Compensation. This section requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award- the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service.

Fair Value for Financial Assets and Financial Liabilities- The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities

NOTE C—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—CONT’D

and the lowest priority to unobservable inputs. The three levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below:

Level 1	Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.

Level 2	Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.

Level 3	Pricing inputs that are generally unobservable inputs and not corroborated by market data.

The carrying amounts of the Company’s financial assets and liabilities, such as cash and accrued expenses, approximate their fair values because of the short maturity of these instruments. The Company’s note payable approximates the fair value of such instrument based upon management’s best estimate of interest rates that would be available to the Company for similar financial arrangement at June 30, 2018 and 2017.

The Company does not have any assets or liabilities measured at fair value on a recurring or a non-recurring basis, consequently, the Company did not have any fair value adjustments for assets and liabilities measured at fair value at April 30, 2015, nor gains or losses are reported in the statement of operations that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date for the periods ended June 30, 2018 and 2017.

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued ASU 2016-02, Leases , amending the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The new standard requires a modified retrospective transition approach for all leases existing at, or entered after, the date of initial application, with an option to use certain transition relief. The guidance will be effective in the first quarter of 2019 and allows for early adoption. The Company does not expect there to be a material impact from adopting this new guidance.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments, which changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019 and early adoption is permitted for annual and interim periods beginning after December 15, 2018. The Company does not expect there to be a material impact from adopting this new guidance.

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment. ASU 2017-04 eliminates step two of the goodwill impairment test and specifies that goodwill impairment should be measured by comparing the fair value of a reporting unit with its carrying amount. Additionally, the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets should be disclosed. ASU 2017-04 is effective for annual or interim goodwill impairment tests performed in fiscal years beginning after December 15, 2019; early adoption is permitted. We currently anticipate that the adoption of ASU 2017-04 will not have a material impact on our financial statements.

NOTE D—SEGMENT REPORTING

The Company follows the guidance set forth by section 280-10 of the FASB Accounting Standards Codification for reporting and disclosure on operating segments of the Company. It also requires segment disclosures about products and services, geographic areas, and major customers. The Company determined that it did not have any separately reportable operating segments as of June 30, 2018 and 2017.

NOTE E—CAPITAL STOCK

The Company is authorized to issue 1,000,000,000 Common Shares at $.0001 par value per share.

In May 2017, the Company issued the following shares:

61,000 shares were purchased at $.50 per share for a total of $30,500.

100,000 shares were issued to 2 different consultants with a fair value per share of $.50. The total value of the services is $50,000.

NOTE E—CAPITAL STOCK—CONT’D

In June 2017, the Company issued the following shares:

5,000 shares of common stock were issued to a consultant for services with a fair value per share of $.50. The total value of the services is $2,500.

In July 2017, the Company issued the following shares:

40,000 shares of common stock were issued to a consultant for services with a fair value per share of $.50. The total value of the services is $20,000.

In August 2017, the Company issued the following shares:

42,000 shares of common stock were issued to a consultant for services with a fair value per share of $.50. The total value of the services is $21,000.

40,000 shares of common stock were issued to a consultant for services with a fair value per share of $.50. The total value of the services is $20,000.

20,000 shares of common stock were issued to a consultant for services with a fair value per share of $.50. The total value of the services is $10,000.

During the 3 ^rd quarter ended September 30, 2017, Ventureo, LLC converted 54,100 Preferred Shares of stock into 541,000 common shares.

In April 2018, the Company sold 5,714 shares of common stock at $1.05 per share for a total value of $5,999.70

Total issued and outstanding shares of common stock as of June 30, 2018 were 4,038,214 and as of December 31, 2017 were 4,032,500.

Total issued and outstanding shares of preferred stock as of June 30, 2018 were 1,945,900 and as of December 31, 2017 were 1,945,900.

The Company is authorized to issue 10,000,000 Series A Cumulative, Convertible Preferred Shares (Preferred Stock) at $.0001 par value per share. During the period from inception (March 24, 2015) through September 30, 2016, the Company issued 2,000,000 shares of preferred stock at $.05 per share to Ventureo, LLC in exchange for $50,000 in cash and Phone Apps with a fair market value of $50,000 for a total of $100,000. The shares of “Preferred Stock” are convertible, at the option of the holder, into shares of common stock at a conversion price of $0.005 per share. The holder of the “Preferred Stock” may not convert any portion of the “Preferred

Stock” if, after giving effect to such conversion, the holder would beneficially own in excess of 4.99%, except that the holder may, by written notice to the Company, increase or decrease this percentage up to a maximum of 9.99%, provided that any such increase will not be effective until the 61 ^st day after such notice is delivered to the Company. Upon a liquidation event, the Company shall first pay to the holders of the “Preferred Stock” an amount per share equal to the Original Issue Price (i.e., $0.05 per share of Series A Preferred Stock), plus all accrued and unpaid dividends on each share of Series A Preferred Stock (the “Series A Preference Amount”). After full payment of the liquidation preference amount to the holders of the “Preferred Stock”, the Company will then distribute the remaining assets to holders of common stock, other junior preferred shares (if any) and the “Preferred Stock” on an as-if-converted-basis. The Series A Preferred Stock ranks senior to the Company’s common stock and senior to any other shares of preferred stock the Company may issue in the future.

Ventureo. LLC also paid $408 in expense incurred on behalf of AppSoft, Inc. and this amount is considered an additional capital contribution.

Capital Contributions

Brian Kupchik, President and CEO made a capital contribution of $1,350 in cash in October and November 2017 and $100 in cash in January 2018.

NOTE F—RELATED PARTY TRANSACTIONS

The Company has paid $0 and $14,300 in management fees for the six-month period June 30, 2018 and 2017, respectively (included in the Outside Services Expense line item on the Statement of Operations) to Brian Kupchik, President and CEO.

NOTE G—OTHER ASSET/PHONE APPS AND GAMING PLATFORM

Phone Apps

As a part of the Preferred Stock transaction (refer to Note E above), the Company acquired Phone Apps valued at $50,000. These Phone Apps are generating Sales Revenue. The Company will amortize the Phone Apps over 5 years. Management believes the estimated useful life of the Apps to be 3-5 years per the IRS MACRS tables. Monthly amortization is $833.34. Accumulated Amortization as of June 30, 2018 is $32,500. Amortization expense for the three months ended June 30, 2018 and 2017 is $2,500 and $2,500, respectively. Depreciation expense for the six months ended June 30, 2018 and 2017 is $5,000 and $5,000, respectively.

eSports Tournament Platform Assets

In June 2016, AppSoft Technologies, Inc. (the “Company”) acquired certain assets comprising an eSports tournament platform for competitive gamers from Guuf LLC (“Guuf”). The Company acquired the assets for a total purchase price of $60,000 (refer to Note J below). On October 1, 2016, the Company began amortizing the Phone Apps over 5 years. Management has determined that 5 years is a relatively short period. Monthly amortization is $1,000. Accumulated Amortization as of June 30, 2018 is $21,000. Amortization expense for the three months ended June 30, 2018 and 2017 is $3,000 and $3,000, respectively. Amortization expense for the six months ended June 30, 2018 and 2017 is $6,000 and $6,000, respectively

NOTE H—INCOME TAX

The Company provides for income taxes under (now included under Accounting Standards Codification (ASC), 740, Accounting for Income Taxes. ASC 740 requires the use of an asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences are expected to reverse.

ASC 740 requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all the deferred tax assets will not be realized. For Federal income tax purposes, the Company has net operating loss carry forwards that expire through 2030. The net operating loss carry forward as of June 30, 2018 is approximately $630,000 and as of December 31, 2017 is approximately $595,000. The total deferred tax asset is approximately $126,000 and $119,000 for the periods June 30, 2018 and December 31, 2017, respectively.

No tax benefit has been reported in the financial statements because after evaluating our own potential tax uncertainties, the Company has determined that there are no material uncertain tax positions that have a greater than 50% likelihood of reversal if the Company were to be audited. The provision for income taxes differs from the amounts which would be provided by applying the statutory federal income tax rate of 21% to the net loss before provision for income taxes for the following reasons:

The Company is not obligated to pay state income taxes because it is a Nevada corporation. The Company does not currently have any tax returns open for examination.

NOTE I—NOTES PAYABLE

The following demand Notes Payable were issued during the 1 ^st Quarter 2017, from an unrelated party and bear 2% interest per year:

Date Issued	Principal Amount
January 2017	$	2,200
February 2017	$	1,650
March 2017	$	850
March 2017	$	1,000
March 2017	$	1,200
Totals	$	6,900

The following demand Notes Payable were issued during the 2 ^nd Quarter 2017, from an unrelated party and bear 2% interest per year:

Date Issued	Principal Amount
April 2017	$	3,000
May 2017	$	6,200
Totals	$	9,200

The following demand Notes Payable were issued during the 3 ^rd Quarter 2017, from an unrelated party and bear 2% interest per year:

Date Issued	Principal Amount
August 2017	$	8,750
August 2017	$	1,230
August 2017	$	12,000
August 2017	$	3,500
Totals	$	25,480

The following demand Note Payable were issued during the 4 ^th Quarter 2017, from an unrelated party and bear 2% interest per year:

Date Issued	Principal Amount
October 2017	$	8,000
Totals	$	8,000

The following demand Notes Payable were issued during the 1 ^st and 2 ^nd Quarter 2018, from an unrelated party and bear 2% interest per year:

Date Issued	Principal Amount
January 2018	$	1,000
February 2018	$	5,100
March 2018	$	2,082
March 2018	$	490
March 2018	$	250
April 2018	$	5,330
June 2018	$	16,600
Totals	$	30,852

Total Notes Payable outstanding was $127,060 as of June 30, 2018. Total accrued interest was $2,960 as of June 30, 2018.

NOTE J—CONVERTIBLE NOTE PAYABLE

The Company issued an 8% Convertible Note Payable to a non-related party on May 5, 2017 in the amount of $10,000. This demand notes bears interest at 8% per year. The Holder of the Note Payable has may elect to convert the Note Payable into 20,000 shares of stock at $.50 per share in full payment of the $10,000 Note Payable amount outstanding.

NOTE K—ASSET ACQUISITIONS

Acquisition of eSports Tournament Platform Assets

On September 10, 2016, AppSoft Technologies, Inc. (the “Company”) acquired certain assets comprising an eSports tournament platform for competitive gamers from Guuf LLC (“Guuf”). The Company acquired the assets for a total purchase price of $60,000 consisting of (i) $15,000 in cash, which has been paid, (ii) 80,000 shares of common stock valued at $0.50 per share (the price at which the Company sold shares to its initial public offering completed in March 2016); (iii) $5,000 in cash payable due which is included in the Company’s Accounts Payable; and (iv) the grant of a royalty equal to 5% of the first calendar year’s profits generated by the Company from the assets, a royalty equal to 4% of year two profits and royalty equal to 3% of year three profits. As additional consideration for the assets, the Company entered into consulting agreement with Nathan Cavanaugh, the sole member of Guuf, as described below.

The assets consist of the following:

title to registered or unregistered trademarks and trade names;

web platform, files, source code and object code;

branding and marketing collateral;

Guuf.com domain name;

prototyped design files of Guuf’s mobile application for iOS;

web development of new Guuf features, including free play modes and mobile gaming tournaments;

strategic development of Guuf’s user achievements list and ranking and leaderboard system calculations; and

sourcing of development for new Guuf features including automated score reporting, API, mobile application for iOS, user achievements, ranking and leaderboard systems, and live streaming.

NOTE K—ASSET ACQUISITIONS—CONT’D

Acquisition of Mobile App Assets

On June 10, 2016, the Company acquired by assignment from Marc Seal certain concepts, artwork, story lines and related computer software in connection with a computer game titled “CryptoGene,” for mobile application (the “Assigned Property”), including:

(i)

Complete “CryptoGene” intellectual property (Any active and applicable trademarks, copyrights, patents, works, etc.)

(ii)

CryptoGene website (www.CryptoGene.com)

(iii)

CryptoGene software (Video Game for mobile and computer platforms)

(iv)

CryptoGene: Origins (Work in Progress 50 Page Graphic Novel)

(v)

CryptoGene Short Story (Work in Progress 10 Page Graphic Novel)

The assignment includes all of Mr. Seal’s right and interest in and to the intellectual property, including any right to use or disseminate CryptoGene as a mobile application or in any other medium (including all other audio-visual rights, print and allied and incidental rights), all advertising, publication, and promotion rights with respect to any part of CryptoGene or any adaptation or version thereof, and all merchandising, commercial tie-in, publishing, and exploitation rights.

NOTE L—FIXED ASSETS

In July 2016, the Company purchased computer equipment for $2,079. The computer equipment will be depreciated over its estimated useful life of 5 years. Annual depreciation is $416. Depreciation expense was $104 and $104 for the three months ended June 30, 2018 and 2017, respectively. Depreciation expense was $208 and $208 for the six months ended June 30, 2018 and 2017, respectively.

NOTE M—MATERIAL EVENTS

Departure of Directors or Certain Officers; Election of Directors:

On June 10, 2016, Seth Ingram resigned as a member of the board of directors. Mr. Ingram’s resignation was for personal reasons and not a result of a disagreement with the Company on any matter relating to the Company’s operations, policies, or practices. Upon his resignation, Mr. Ingram returned to the Company for cancellation 1.6 million of the 2 million shares of common stock registered in his name.

FINRA

During July 2017, the Company’s common stock was admitted to quotation in the OTC Bulletin Board Market (“OTCBB”), an interdealer quotation service for over-the-counter, or OTC, equity securities operated the Financial Regulatory Authority (“FINRA”), which permits to be eligible for quotation on OTCBB any OTC equity security that is current in certain required regulatory filings.

Consulting Agreement Amendments

During the 3 ^rd quarter 2017, the Company entered into the following agreements:

Amendment to Consulting Agreement between the Company and Marc Seal dated August 3, 2017, whereby the parties amended the original consulting agreement to increase the scope of engineering and technical services to be rendered by Mr. Seal in consideration of the issuance of 42,000 shares of common stock.

Amendment to Consulting Agreement between the Company and Kris Newman dated July 12, 2017, whereby the parties amended the original consulting agreement to increase the scope of marketing services to be rendered by Mr. Newman in consideration of the issuance of 40,000 shares of common stock.

Amendment to Consulting Agreement between the Company and Joseph Cheng dated August 3, 2017, whereby the parties amended the original consulting agreement to increase the scope of product analysis services to be rendered by Mr. Cheng in consideration of the issuance of 40,000 shares of common stock.

Amendment to Consulting Agreement between the Company and Gleb Kartsev dated August 3, 2017, whereby the parties amended the original consulting agreement to increase the scope of product analysis services to be rendered by Mr. Cheng in consideration of the issuance of 20,000 shares of common stock.

NOTE N—SUBSEQUENT EVENTS

Since the close of the period covered by the financial statements of which these notes form a part, the following material transactions have occurred:

The Company borrowed an aggregate of $11,625 which borrowings are evidenced by promissory notes. The promissory note bears interest at the rate of 8% per annum and is payable on December 1, 2018.

A Convertible Promissory Note in the amount of $10,000 plus $$992 of accrued interest was converted into shares 21,889 shares of Common Stock as of July 24, 2018.

In July, 8,500 shares of Preferred Stock were converted into 85,000 shares of Common Stock.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward Looking Statements

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q, or Report.

The information in this discussion and elsewhere in this Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such statements are based upon current expectations that involve risks and uncertainties. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. For example, the words “may,” “will,” “believe,” “anticipate,” “plan,” “expect,” “intend,” “could,” “estimate,” “continue” and similar expressions or variations identify forward-looking statements.

Although we believe that we have a reasonable basis for each forward-looking statement contained in this Report, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and the development of the industry in which we operate may differ materially from the forward-looking statements contained in this Report. Factors that might cause such a discrepancy include, but are not limited to:

Our failure to develop or acquire and publish new Apps that achieve market acceptance or we do not continue to enhance our existing Apps.

Our inability to maintain a good relationship with the markets where our Apps are distributed.

Our inability to keep pace with technological changes and market conditions in the Apps industry.

Our inability to compete against a wide range of companies that market Apps, many of which have significantly greater resources than we do.

Our ability to obtain financing as and when needed on acceptable terms.

We caution readers not to place undue reliance on any forward-looking statements made by us, which speak only as of the date they are made. We disclaim any obligation, except as specifically required by law and the rules of the Securities and Exchange Commission, to publicly update or revise any such statements to reflect any change in our expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.

Overview

AppSoft Technologies, Inc., a Nevada corporation organized on March 24, 2015 (“we,” “us,” or the “Company”), develops, publishes and markets mobile software applications for smartphones and tablet devices (“Apps”). Our Apps titles include games designed to appeal to a broad cross section of consumers and legal-related Apps that provide compilations of federal and state laws and regulations across a variety of legal disciplines and digests of court decisions rendered by federal courts that are directed to legal professionals. We offer all of our game titles in both a free advertisement-supported version and a paid version that does not display ads. We believe that the ad supported versions allow for wider dissemination of our titles to consumers who might not otherwise spend money for an App without first playing the game.

We market, sell and distribute our games through direct-to-consumer digital storefronts, which currently comprises Apple’s App Store and the Google Play Store. We currently or expect to advertise our Apps through the digital storefronts, our own website, social media, such as Facebook and LinkedIn, through mobile ad networks and search engine optimization, or SEO, tools.

We are developing and acquiring new Apps to expand our existing product offerings. We rely on third party designers, developers and programs to develop new Apps. We also solicit ideas for new titles from unrelated parties. We evaluate prospects based on a variety of factors. If we conclude that a particular prospect is worth pursuing, we may fund the development of the App through launch and beyond. We expect to release several new Apps during 2017, assuming we are able to obtain adequate funding to complete the development of these Apps.

We currently derive our revenue primarily from sales, or downloads, of our Apps and from advertisements published on our ad supported game titles. Over the course of 2017, we expect to generate revenue from the sale of software titles that we develop for own account, that are developed by third-parties which we acquired, or that have been developed for our benefit. Operating margins are dependent in part upon our ability to release new, commercially successful products and to manage effectively their development costs.

Over the last several years, mobile devices, including smartphone and tablets, have proliferated extensively around the world across a wide range of demographic groups. The Apps industry has experienced corresponding growth in the number of downloads, the number and types of Apps published. We believe that there will continue to be an increase in the number of smartphones and tablets sold. In addition, technological advances to these devices, including more powerful smartphones and tablets with larger screens provide a platform for more diverse Apps and make games more fun and visually appealing. We believe that technological developments will continue to drive growth in our industry for the foreseeable future.

History

We were organized in the State of Nevada in March 2015. In April 2015, we concluded a transaction in which we issued 2,000,000 shares of our Series A Preferred Stock in exchange for the sum of $50,000 and the portfolio comprising over 400 Apps titles.

We completed updating our legal Apps during 2016 and many of these Apps are among the most downloaded Apps on Google Play providing access to federal and state laws and regulations.

On June 30, 2016, we closed our initial public offering of common stock, which we refer to throughout this Report as our IPO. In our IPO, we registered 1,000,000 shares of common stock for sale at a price of $0.50 per share and sold 252,500 shares of common stock to the public for an aggregate offering price of $126,250.

Growth Strategies and Outlook

Our principal growth strategy entails developing and acquiring new Apps to supplement our existing Apps portfolio. Our primary focus will be to release new game titles. We are developing a pipeline of independent game designers, developers and programmers who provide us with new ideas and titles to publish. We also are soliciting new games and concepts that we may acquire from third parties. We will seek to develop and publish free-to-play games. Free-to-play games are games that a player can download and play for free, but which allow players to access a variety of additional content and features for a fee, through “in-app purchases” utilizing virtual currency they may be purchased through digital storefronts, and to engage with various advertisements and offers that generate revenues for us. We may seek to acquire franchises around which we develop games, including movies, television programs, toys and other cultural phenomena that lend themselves to gamification.

During 2016, we purchased an eSports tournament platform and the related software, trademarks and trade names; and other intellectual property. When we took control of these assets, they were fully developed and ready for live launch. Since the acquisition date, we have improved them by tailoring them towards our unique competitive strategy.

eSports (also known as electronic sports, competitive (video) gaming, professional (video) gaming, or pro gaming) are a form of competition that is facilitated by electronic systems, particularly video games; the input of players and teams as well as the output of the eSports system are mediated by human-computer interfaces. Most commonly, eSports take the form of organized, multiplayer video game competitions, particularly between professional players. The most common video game genres associated with eSports are real-time strategy, fighting, first-person shooter (FPS), and multiplayer online battle arena. Tournaments such as The International, the League of Legends World Championship, the Battle.net World Championship Series, the Evolution Championship Series, and the Intel Extreme Masters provide live broadcasts of the competition, and prize money and salaries to competitors.

eSports have become popular worldwide, not only with participants but also with fans who watch them online and in public spaces, including arenas. According to Statista, an online statistics gathering and dissemination portal, during 2015, there were 162 million frequent viewers and 161 occasional viewers of eSports worldwide. During 2014, “Newzoo Esports” reported that eSports revenue, which comprises media rights, merchandise, tickets, advertising, sponsorship and game publisher fees, was $194 million, which climbed to $325 million in 2015 and which Newzoo estimates could grow to and over $1.1 billion in 2019, which would represent a compound annual growth rate of 42.2% from 2014 through 2019.

Our App will provide eSports players with an easy-to-use platform that provides fair, transparent, and prompt payouts for prize tournaments. We will differentiate our product from competing platforms by focusing on casual games and mobile games. We also expect to focus on direct integrations with existing game publishers enabling them to offer prize tournaments to their existing player base.

During 2016, we acquired a suite of concepts, artwork, story lines and related computer software in connection with a computer game titled “CryptoGene,” for mobile application. CryptoGene represents a potential franchise that we can develop and roll out over multiple platforms, including as an App and video game version, graphic novels and other print and audio-visual media. This is a long-term project that will require significant capital and personnel resources.

Also during 2016, we acquired a product, which we call “GoDex”, is a Pokémon Go companion app for iOS and Android. The App uses sophisticated image recognition that will enable users to take screenshots of their Pokémon and have GoDex calculate its statistic, IV percentage, combat power calculations, and other statistics that players deem relevant to the Pokémon experience. The App also will provide users to send and receive in-App messages to and from team mates within a 10-kilometer radius. As GoDex develops, we expect that it will become a “one-stop-shop” for all Pokémon Go related tools.

Since its release in July 2016, it is estimated that Pokémon GO has enjoyed 500 million downloads with 20 million daily active users and that revenues are estimated to be $2 million per day. During 2016, Pokémon Go generated an estimated $950 million in revenues according to a report by market researcher App Annie. Our App will seek to take advantage of this active market

Our ability to pursue and achieve our objectives is predicated on our receipt of meaningful revenue from sales of our existing Apps and those we may release in the future and from our ability to raise capital from outside sources.

Our revenues will depend significantly on growth in the mobile games market and our ability to develop or acquire and publish Apps that are well received by consumers. In addition, because our products are purchased with disposable income, our success is dependent on the overall strength of the economy in the United States. We expect to invest resources in research and development, analytics and marketing to introduce new Apps and continue to update our existing Apps, and to the extent that Apps into which we have invested significant capital are not successful, our business and financial condition could be harmed. We operate in an environment that is extremely competitive for users against a continually increasing number of developers, many of which are significantly larger than us and have other competitive advantages. We expect to allocate a material portion of our operating revenue and capital that we receive to sales and marketing initiatives in connection with the launch and promotion of our games in an effort to drive sales.

Our revenues further depend on maintaining our continued good relationship with the digital storefront operators, primarily Apple and Google, each of which could unilaterally alter their terms of service in ways that could harm our business.

Our ability to achieve and sustain profitability will depend not only on our ability to grow our revenues, but also on our ability to manage our operating expenses. Currently, we have one full-time employee, who receives compensation when and as determined by the board of directors. For the foreseeable further, we expect to utilize the services of independent contractors and consultants, who we believe are readily available for our purposes, in order to manage our personnel costs. We also will continue to maintain a virtual office as long as our operations permit to contain our office space overhead.

During fiscal 2018, our growth has been constrained by our lack of capital. We require additional capital to fund the development of Apps in process that we have developed internally or acquired from third parties. We also require capital to fund marketing initiatives for our existing products and to launch and market Apps in development. We cannot be sure that the additional capital we require will be available on acceptable terms or at all. If adequate funds are not available on acceptable terms or at all, we may be unable to develop or enhance our services and products, take advantage of future opportunities, repay debt obligations as they become due, or respond to competitive pressures, any of which would have a material adverse effect on our business, prospects, financial condition, and results of operations.

Results of Operations for the Three Months Ended June 30, 2018 Compared to the Three Months Ended June 30, 2017 (unaudited)

The following table presents our results of operations for the three months ended June 30, 2018 and 2017:

	Three Months Ended June 30,
	2018			2017
Revenue	$	206		$	286

Expenses
Selling, General and Administrative		6,862			29,238
Depreciation/Amortization Expense		5,604			5,604
Interest Expense		602			352
Outside Services		3,400			15,300
Outside Services – Stock for Services		-			52,500
Professional Fees		18,405			2,864
Total Expenses		34,843			105,858
Net Loss	$	(34,637	)	$	(105,572	)

Revenues

We recorded revenue during the quarter ended June 30, 2018 period of $286 comprising revenues generated from downloads of our Apps and in-App advertising revenues, compared to revenue of $491 during the 2017 period. The decline in revenue is a result of inability to advertise our products for lack of cash.

Expenses

Selling, General and Administrative , or SGA, expenses consist of expenses relating to, among other things, web hosting and email hosting costs, rent for our virtual office, and other general and administrative expenses. During the quarter ended June 30, 2018, our SGA expenses were $6,962, as compared to SGA expenses of $29,2385 during the 2017 period.

Depreciation and Amortization Expense. For the three months ended June 30, 2018, we recorded depreciation of $5,604 relating certain computer equipment purchased in July 2016, as compared with to depreciation expense of $104 recorded during the 2017 period. For the three months ended June 30, 2018 and 2017, we recorded amortization of our Apps, which we amortize over a five-year period, of $5,500.

Interest Expense is attributable to interest accrued on promissory notes outstanding during the relevant periods. During the three months ended June 30, 2018, interest expenses were $602, as compared to $352 for the 2017 period.

Outside Services represents the amount we paid to third party developers and software designers in connection with the Company’s Apps. During the quarter ended June 30, 2018, we paid our third-party developers and software designers an aggregate of $3,400, as compared to payments of $15,300 made during the 2017 period. We continue to require these services of these third-party service providers but did not have sufficient cash to engage them at the levels necessary to develop our products. We expect that at such time as the cash is available, we will expend additional resources on these service providers.

Outside Services - Stock for Services represents shares of common stock issued in consideration for services rendered. During the quarter ended June 30, 2018, we did not pay any third-party developers or software designers in stock. During the quarter ended June 30, 2017, we paid to two consultants for services rendered and to be rendered to the Company in connection with the development and maintenance of our Apps in common stock valued at $52,500.

Professional Fees consist of amounts paid to our third-party professionals for services rendered during the quarter. During the quarter ended June 30, 2018, we recorded expenses for professional fees of $9.655 as compared to $2,864 during the 2017 period.

Net Loss

During the quarter ended June 30, 2018, we had a net loss of $25,917, which represents the difference between our total expenses of $26,123 partially offset by our revenue of $206, as compared to a net loss of $105,572, which represents the difference between our total expenses of $105,858 partially offset by our revenue of $286.

Results of Operations for the Six Months Ended June 30, 2018 Compared to the Six Months Ended June 30, 2017

The following table presents our results of operations for the six months ended June 30, 2018 compared to the six months ended June 30, 2017:

	Six Months Ended June 30,
	2018			2017
Revenue	$	206		$	553

Expenses
Selling, General and Administrative		7,468			34,577
Amortization/Depreciation Expense		11,208			11,208
Interest Expense		1,104			459
Outside Services		3,400			15,300
Outside Services – Stock for Services		-			52,500
Professional Fees		24,945			3,608
Total Expenses		48,125			117,652
Net Loss	$	(47,919	)	$	(117,099	)

Revenues

During the six months ended June 30, 2018, we recorded revenue of $206 comprising revenues generated from downloads of our Apps and in-App advertising revenues, compared to revenue of $553 during the 2017 period.

Expenses

Selling, General and Administrative , or SGA, expenses consist of expenses relating to, among other things, web hosting and email hosting costs, rent for our virtual office, and other general and administrative expenses. During the six months ended June 30, 2018, our SGA expenses were $7,468, as compared to SGA expenses of $34,577 during the 2017 period.

Depreciation and Amortization Expense. For the three months ended June 30, 2018 and 2017, we recorded depreciation expense of $208. For the six months ended June 30, 2018 and 2017, we recorded amortization of our Apps, which we amortize over a five-year period, of $11,000, as compared to amortization expenses of $11,000 during the 2017 period.

Interest Expense is attributable to interest accrued on promissory notes outstanding during the relevant periods. During the six months ended June 30, 2018, interest expenses were $1,134, as compared to $459 for the 2017 period.

Outside Services represents the amount we paid to third party developers and software designers in connection with the Company’s Apps. During the six months ended June 30, 2018, we paid $3,400 to our third-party developers and software designers, as compared to $15,300 during the 2017 period. We continue to require these services of these third-party service providers but did not have sufficient cash to engage them at the levels necessary to develop our products. We expect that at such time as the cash is available, we will expend additional resources on these service providers.

Outside Services - Stock for Services represents shares of common stock issued in consideration for services rendered. During the six months ended June 30, 2018, we did not pay any third-party developers or software designers in stock. During the six months ended June 30, 2017, we paid to two consultants for services rendered and to be rendered to the Company in connection with the development and maintenance of our Apps in common stock valued at $52,500.

Professional Fees consist of amounts paid to our third-party professionals for services rendered during the quarter. During the six months ended June 30, 2018, we recorded expenses for professional fees of $16,195, as compared to professional fees of $3,608 paid during the 2017 period. During the 2018 period, we paid certain accrued fees too our professionals, which accounts for the increase in the amount or professional fees recorded.

Net Loss

During the six months ended June 30, 2018, we had a net loss of ($39,199), which represents the difference between our total expenses of ($39,405) partially offset by our revenue of $206, as compared to a net loss of ($117,099), which represents the difference between our total expenses of ($117,652) partially offset by our revenue of $553, for the comparable 2017 period.

Liquidity and Capital Resources

Liquidity is the ability of a company to generate adequate amounts of cash to support its current and future operations, satisfy its obligations, and otherwise operate on an ongoing basis. Significant factors in the management of liquidity are funds generated by operations, the availability of credit facilities, levels of accounts receivable and accounts payable and capital expenditures.

As of June 30, 2018, we had working capital deficit of ($47,854), compared to working capital deficit of ($147,024) at December 31, 2017.

Since our inception, we have financed our operations through the sale of equity securities, from third party loans and from internally generated revenue from operations. On June 30, 2016, we closed our initial public offering of securities from which we received net proceeds of $126,250. At various times since the closing of our initial public offering, we have sold securities, including common stock and promissory notes, to fund our operations.

Our primary requirements for liquidity and capital are to fund the development and acquisition of new Apps and for sales and marketing initiatives in connection with the launch and promotion of our games, as well as for working capital to fund our general corporate needs, including filing reports under the federal securities laws. We work with independent game designers, developers and programmers who provide us with new ideas and titles to publish. We also are soliciting new games and concepts that we may acquire from third parties. When we receive an idea for a new App, we research the commercial viability of the concept, undertaking an analysis of the cost to develop the App against its potential economic return. If we determine that the App is commercially viable, we may fund the cost of development, publication and marketing. Upon completion of development we will own the App title. Developing and publishing free-to-play games will require considerable capital to develop, maintain and update, particularly games we may seek to develop around popular movie, television, toy other cultural phenomena that lend themselves to gamification.

Since our customers pay for their purchases by credit or debit card at the time of sale, neither inventories nor receivables are relevant to our business.

Our cash on hand and cash flow from operations will allow us to operate at current levels but will not be sufficient to fund all of our desired development and acquisition strategy or the cash required in connection with launching, marketing and promoting our games. We have been using the proceeds from small loans and from exempt sales of common stock to fund these endeavors; however, we do not believe these funds will be sufficient for all such purposes. We will seek to fund acquisitions and to engage third party developers partially through the issuance of securities. Therefore, our future operations may be dependent on our ability to secure additional financing. Financing transactions may include the issuance of equity or debt securities, obtaining credit facilities or through other financing mechanisms. However, a downturn in the U.S. equity and debt markets could make it more difficult to obtain financing through the issuance of equity or debt securities and we might not be able to obtain additional financing on terms favorable to us, if at all. Even if we are able to raise the funds required, it is possible that we could incur unexpected costs and expenses, fail to collect significant amounts owed to us, or experience unexpected cash requirements that would force us to seek alternative financing. Furthermore, if we issue additional equity or debt securities, stockholders may experience additional dilution or the new equity securities may have rights, preferences or privileges senior to those of existing holders of our common stock. The inability to obtain additional capital will continue to constrain our operations, including App development and marketing, and restrict our ability to grow. If we are unable to obtain additional financing, we may possibly have to cease our operations.

Cash Flows:

The following table presents summary cash flow information.

	For the six months ended June 30, 2018			For the six months ended June 30, 2017

Net cash used in operating activities	$	(36,465	)	$	(50,386	)
Net cash used in investing activities		—			—
Net cash provided by financing activities		36,465			55,800
Net increase in cash	$	—		$	5,414

Operating Activities

We used net cash used in operating activities for the six months ended June 30, 2018 of ($36,465) compared to ($50,386) for the 2017 period, in each case consisting principally of payments to outside consultants, developers and programmers and payments to web hosting and email hosting providers. The decrease in cash used in operating activities was the result of our limited cash resources to deploy to our operations.

Investing Activities

We did not utilize and cash in investing activities for the six months ended June 30, 2018 or 2017.

Financing Activities

During the six months ended June 30, 2018, net cash provided by financing activities was $36,465 compared to $55,800 during the 2017 period. Our financing activities during the 2018 period consisted of borrowings and sales of stock. During the 2017 period, we sold and issued securities in private placement from which we received proceeds that we utilized for working capital.

Contractual Commitments as of June 30, 2018

As of June 30, 2018, the Company had no contractual obligations, as such term is defined in Item 303 of Regulation S-K promulgated under the Securities Act of 1933, as amended.

Going Concern

The notes to our financial statements for the quarter ended June 30, 2018 and the report of our independent registered public accounting firm on our financial statements for the year ended December 31, 2017 include an explanatory paragraph with respect to our ability to continue as a going concern. As reflected in the accompanying financial statements, the Company has a deficit accumulated of $634,675 at June 30, 2018. The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and pay its liabilities arising from normal business operations when they come due. The accompanying financial statements do not include any adjustments that might arise because of this uncertainty

The presence of the going concern explanatory paragraph suggests that we may not have sufficient liquidity, or minimum cash levels, to operate our business. Since our inception, we have incurred losses and anticipate that we will continue to incur losses until such time as our Apps generate sufficient revenue to offset our research and development, general and administrative and sales and marketing expenses. We will need to raise additional capital to fund our near term operational plans described elsewhere in this report. We cannot assure you that we will be successful in our operational plans. We cannot be sure that the additional capital we require will be available on acceptable terms or at all. If adequate funds are not available on acceptable terms or at all, we may be unable to develop or enhance our services and products, take advantage of future opportunities, repay debt obligations as they become due, or respond to competitive pressures, any of which would have a material adverse effect on our business, prospects, financial condition, and results of operations.

Off-Balance Sheet and Other Arrangements

We do not engage in any activities involving variable interest entities or off-balance sheet arrangements.

Inflation

We do not believe that inflation has had a material effect on our business, financial condition or results of operations. If our costs were to become subject to significant inflationary pressures, we might not be able to fully offset these higher costs through price increases. Our inability or failure to do so could harm our business, operating results and financial condition.

Critical Accounting Policies and Use of Estimates

The discussion and analysis of financial condition and results of operations are based upon the Company’s financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States. The preparation of these condensed consolidated financial statements requires estimates and assumptions that affect the reported amounts of assets, liabilities, sales and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, our management evaluates its estimates based upon historical experience and various other assumptions that it believes to be reasonable in the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The Company believes that its significant accounting policies affect its more significant estimates and judgments used in the preparation of its consolidated financial statements. Our significant accounting policies are described in Note C to our audited financial statements included in our annual report on Form 10-K for the period ended December 31, 2017. We do not believe that there has been any significant change in the Company’s critical accounting policies since December 31, 2017.

Recent Accounting Pronouncements

Emerging Growth Company Critical Accounting Policy Disclosure: We qualify as an “emerging growth company” under the 2012 JOBS Act. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. As an emerging growth company, we can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period.

See Note C to the financial statements furnished with this report for a discussion of recent accounting pronouncements that had a material effect on the financial statements presented herein.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 4. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e)) under the Exchange Act) that is designed to ensure that information required to be disclosed by the Company in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Pursuant to Rule 13a-15(b) under the Exchange Act, the Company carried out an evaluation with the participation of the Company’s management performed an evaluation, under the supervision and with the participation of the Company’s Chief Executive Officer, who is the Company’s principal executive officer and principal financial officer and who we refer to herein as our PEO, of the effectiveness of the Company’s disclosure controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the quarter ended June 30, 2018. Based upon that evaluation, the Company’s PEO concluded that the Company’s disclosure controls and procedures were not effective as of June 30, 2018 due to the Company’s limited internal resources and lack of ability to have multiple levels of transaction review.

Management is in the process of determining how best to address this condition and implement a more effective system to ensure that information required to be disclosed in this quarterly report on Form 10-Q has been recorded, processed, summarized and reported accurately. Our management acknowledges the existence of this problem, and intends to developed procedures to address them to the extent possible given limitations in financial and manpower resources. While management is working on a plan, no assurance can be made at this point that the implementation of such controls and procedures will be completed in a timely manner or that they will be adequate once implemented.

Changes in Internal Controls

There have been no changes in our internal control over financial reporting during the quarter ended June 30, 2018 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

PART II—OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

There are presently no pending legal proceedings to which the Company is a party or as to which any of its property is subject, and no such proceedings are known to the Company to be threatened or contemplated against it.

ITEM 1A. RISK FACTORS

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934, as amended, and are not required to provide the information required under this item.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Since the date on which the Company filed its last quarterly report on Form 10-Q and except as otherwise reported in its current reports on Form 8-K since such filing, the Company has sold the following securities without registration under Section 5 of the Securities Act of 1933, as amended (the “Securities Act”):

On April 18, 2018, the Company sold 5,714 shares of common stock to Alexndr Dekhtyarev at a price of $1.05 per share for an aggregate price of approximately $6,000.00 in a private transaction.

The sale of the above securities were exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon Section 4(2) of the Securities Act as transactions by an issuer not involving any public offering and/or the private offering safe harbor provision of Rule 506 of Regulation D promulgated under the Securities Act of 1933.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS.

Exhibit	Description
31.1	Certification of the Company’s Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2018.
31.2	Certification of the Company’s Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2018.
32.1*	Certification of the Company’s Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002.

101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

In accordance with Item 601 of Regulation S-K, this Exhibit is hereby furnished to the SEC as an accompanying document and is not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	APPSOFT TECHNOLOGIES, INC.


Date: August 20, 2018	By:	/s/ Brian Kupchik
	Name:	Brian Kupchik
	Title:	President, Principal Executive Officer and Principal Financial Officer