58-20

Utopia Parkway Fresh Meadows NY 11365 Tel: 718-281-8200 nuapps.pr@gmail.com

 Napps is an Apple iOS app development company created enMrely by students, founded in 2012. Our headquarters are located in Queens, New York. We are the rst of our kind, as we are the rst Virtual Enterprise rm oering real products for the public. We strive to make a variety of apps ranging from entertaining our customers to helping them in every day tasks. Our app company may be new but we are here to stay with our riveMng and all from scratch apps.

I N D E X

03. 05. 07. 09.

LETTER TO STOCKHOLDERS

KEY FACTS BOARD OF DIRECTORS & MANAGEMENT FINANCIAL HIGHLIGHTS

11. 13. 16.

FINANCIAL STATEMENTS & HIGHLIGHTS MANAGEMENT DISCUSSION & ANALYSIS

ADDITIONAL SUPPORTING DOCUMENTATION FOR YEAR-END REPORTING

03.

LETTER TO STOCKHOLDERS

To our stockholders, customers, partners, and employees: This year was a huge year we incorporated ourselves, delivered powerful results, launched innovaMve new products and services, and posiMoned Napps for an amazing future. For scal year 2013, our revenue totaled $236, 887. Due to the nature of our business model in selling pre-orders up unMl the NYC V.E.I Trade Show, we ended up with a net loss of $70,480. Our cash in bank is $250,743; liabiliMes at $170,157, and accounts receivable at $301,921. Napps delivered the results it promised to all of our clients and customers through our products and services, and I can say with condence that we have many exciMng projects down the pipeline for the years to come. Our Products This year we developed three consumer apps and put them on the iTunes store: Skedoodle: A quirky drawing pad which lets our customers express themselves in color and drawing; users are able to blend colors, alter transparency, and alter the size of ink. Nuteller: Originally our rst project, Nuteller is an app version of the classic CooMe Catcher paper fortune game, with customizable fortunes. iGradeMySelf: [A few days aMer the scal year ended] Our most advanced app yet, iGradeMyself lets students keep track of their test averages in specic classes with algorithms that calculate what the student needs to score on their next test in order to raise their test average from their current gure to another.

Our services This year we developed an app for V.E. InternaMonal: V.E. InternaMonal Directory: Our crown jewel, the VEI Directory app consolidates all the V.E rms in the U.S Network (with a link to the internaMonal rms through Orange pages) along with contact informaMon and direct links to their websites and emails. Due to the Mming of the end of the scal year, I cannot report the other projects that are currently in the works. Our business Napps prides itself in being a new rm pushing Virtual Enterprise as a whole into a mobile revoluMon. Weve posiMoned ourselves to be the go-to people for access to the mobile market, and capitalized on this fact. We see incredible opportuniMes for us to grow and expand for the remainder of this school year and the next scal years to come. Although we have a lot of hard work to do, our rm is generaMng a buzz within V.E.I and outside as well. When I pause to reect upon how far weve come as a startup, I am overwhelmed with excitement and opMmism. Our future is bright, and there are so many more great things to come. Im condent that our presence in Virtual Enterprises and the New York City tech community will grow. Thank you for all of your support!

Lum Blaku, Napps C.E.O.

PAGE 4

05.

KEY FACTS

In scal 2012, we managed our business well and hold high expectaMons for nancial targets for scal 2013

$236,887
Revenues before reimbursements

Apps created this scal year and many more currently in producMon

28

Hardworking and well-paid employees (average salary= $1,637/mo.)

12

Number of countries our apps are distributed to (#1 USA, #2 UK, #3 China)

PAGE 6

07.

BOARD OF DIRECTORS AND MANAGEMENT

N U A P P S D I R E C T O R S A N D O F F I C E R S

Blaku, Lum Chief ExecuMve Ocer

Boryk, Andrew Chief Programming Ocer

Cho, Chrisbne Chief OperaMng Ocer

Nguyen, Nicole Chief Financial Ocer

V.E. D I R E C T O R S A N D O F F I C E R S

Blanc, Iris NaMonal Director Chapman, Nick NYC Program Director Chasin, Ma[hew Managing Director, Global Head of Collateral Trading, Royal Bank of Scotland Connell, Amanda Corporate Mentor, Tipping Point Partners Coneys, Michael Recording Secretary Legal Services, New York City Department of EducaMon Delaney, Joseph Vice Chair Director of Northeast Alumni RelaMons, Deloite LLP (ret.)

Fina, Ashley President, Michael C. Fina & Company Frank, Charlo[e Ph. D., Chair Sr. Vice President, McGraw-Hill EducaMon of The McGraw-Hill Companies Israel, Steve President and CEO, SMI ProperMes Jastremski, John NYC Program Director Johnson, Bob Corporate Mentor, Apple Kim, Kevin Corporate Mentor, Tipping Point Partners

Kravitz, Barnard Corporate Mentor, CTO, GoWatchIt Perrone, Joe District Manager, FedEx Schanit, Ma[ Treasurer Accountant, Annaly Capital Management Serrano, Isai Coordinator Shama, Musa Ali Francis Lewis High School Principal Walco[, Dennis Chancellor, New York City Department of EducaMon EducaMon PAGE 8

09.

FINANCIAL HIGHLIGHTS

M O N T H L Y S A L E S
$200,000 $150,000 $100,000 $50,000 $0

Jan

Feb

Mar

Apr

S A L E S B Y P R O D U C T S & S E R V I C E S
$150,000 $100,000 $50,000 $0 Nuteller Skedoodle iGradeMyself Basic App Premium App

S A L E S A T N.Y. T R A D E S H O W
70 60 50 40 30 20 10 0 Nuteller iGradeMyself Skedoodle

S A L E S B Y D I S T R I B U T I O N
$140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 Internet NY Trade Outside Sales Show

PAGE 10

11.

FINANCIAL STATEMENTS & FOOTNOTES

 Napps is an iOS app building company. We make real apps to be sold on the Apple App Store. Our apps include the VE directory, Skedoodle, and Nuteller. We gained revenues of $11,000 from cash trade fair sales as well as $51,177.50 from guest checks alone. Other sales we had would consist of selling our services of building an app. This totaled to be $174,709. Our total revenue equals $236,887. However even with posiMve revenue; we have a negaMve net income. This is due to all the taxes we must pay. Our total net income axer tax equals -$70,480. Even with a negaMve number to end the scal year, we will process sales axerwards to ensure a beter, more stable rm for the next year Napps. Our accounts receivables of $301,921.00 include trade show sales, Atendance App, and the Francis Lewis High School Directory App. In the Other column of our LiabiliMes of $2,000.00 includes adverMsing payments. Although we are a new startup company, it took us merely 3-4 months to complete the required steps for a new rm. Our cash inow started from January and increased throughout the scal year. Napps consists of products and services made by students. Among the products are Nuteller, Skedoodle and iGradeMyself. Napps also has a special service allowing other rms to purchase their own app! Building an app varies between a Basic App and the Premium App. Our best selling product is our Skedoodle app and the best selling service is the Premium app.

PAGE 12

13.

MANAGEMENT DISCUSSION & ANALYSIS

 Napps crucial nancial goal was to make enough sales in order to break even and manage paying o our loan on Mme. To get enough sales, the markeMng department contacted many rms and sent out a vast number of emails. In addiMon, we promoted our apps at the Trade Show. Napps generated more than $100,000 in sales at the NY Trade Show. Not only did we achieve our nancial goals, but we also achieved our non-nancial goals. Our non-nancial goal included establishing our name in the VE world. In addiMon, we have succeeded by acquiring more than 90 followers on Twiter with the eorts from our Public RelaMons department. We also made a blog that has gathered much popularity. We currently have over 900 downloads on our apps and had over 100 sales at the trade show. We also specialize in making apps for other rms. The markeMng department set out a plan on how to market our products and services, but soon realized that things do not always go as planned. Before cold calling other virtual enterprise rms, markeMng representaMves reviewed the necessary skills needed to make sales calls. The representaMves pracMced calling each other within groups. Axer doing so, the representaMves were well prepared and ready to make calls. As the markeMng department started calling rms, we realized that they were not as cooperaMve as we originally had planned. During the process of making calls, many companies did not pick up or were very impolite. To counteract this problem, mulMple emails embedded with HTML were sent to rms, proving to be more successful. Many rms replied expressing an interest in our products through email.

Segments of market research included learning about the S.W.O.T Analysis, analyzing our target markets and coming up with business risks. Our target market is divided into three parts: primary market, secondary market, and terMary market. Most of the companys revenue comes from the primary market. This includes young adults who are sMll in school, aged from 14 to 25. They consume the most sales. Our secondary market encompasses all people of every income bracket in developed countries. The terMary market include those who consume the most Apple products from other countries like China, Japan, and India. Napps primary targets regarding educaMon are young adults atending secondary school and college. Our target age group are people from the age of 14 to 25. This margin consists of the ages where the majority of people included are atending school. Young adults are most likely to purchase and use apps, since theyre constantly engaged with mobile products and media. Their educaMonal environment is lenient towards allowing students to use apps to help them with schoolwork. They are likely to want to have fun and maintain good grades at the same Mme. Our apps oer the chance for these demands to be fullled since these apps are made by people within the target age group, also having similar interests. We not only understand what kind of apps people within this age group would want to buy, but we also engage in social networking to be updated on their interests. Teenagers spend $13 billion on apps a year!

PAGE 14

 Napps secondary target market consists of middle class families and upper class families that make approximately 45,000 to 90,000 dollars. We feel that since they make a decent income, they would be more willing to buy our apps. Families that have a lower income would be less likely to spend their money on applicaMons. As long as they feel that they could aord our apps, they are more than welcome to buy them. Napps has decided to target families of about 4-6 members. The average household in the United States has 2-3 children according to the United States Census Bureau. Families mostly purchase educaMonal apps for their children. Most of our sales were to teenagers as expected from our primary target market, quanMtaMve wise. Our apps were popular with adults at the trade fair with guest checks. Many customers with guest checks informed sales representaMves that our apps will be popular amongst their children which connect our products to our secondary target market. However, we could not measure the number of children using our apps. We will implement a method of analyzing user app use in the near future. Our terMary target markets are the customers internaMonally. We analyzed these internaMonal app purchases from customer informaMon online using our newly developed shopping cart and monitored app downloads on our Apple App Store storefront. We have downloads from countries such as Thailand, UK, Jordan, Singapore, Philippines, Canada, and many more. Napps chose to adverMse itself through social media as well as emailing and calling other rms. We have a Facebook, Twiter and a blog on WordPress. At the Trade Show, yers and brochures were given out to people to let them know about our apps. In addiMon, we are adverMsing our company on the Virtual Enterprise InternaMonal website. In the end, we sparked a lot of interest in our company.

Our booth was surrounded with banners of our apps. The booth was designed this way in order to atract more people to our booth. We also had many iPads laid out to atract potenMal consumers. The markeMng department went to many workshops and pracMced how to approach customers. We prepared ourselves so that we would know what had to be said in order to obtain a sale. It was expected to make at least $80,000. However, the sales were higher than the expected. We made 103 sales at the trade show that totaled $103,177. A company website and social media accounts were created to increase our exposure. Our website is nuapps.wix.com/home. Napps chose to adverMse itself through social media, emailing and calling other rms. We have a Facebook page, Google Hangout account, Twiter, and a blog on WordPress. At the Trade Show, yers and brochures were distributed to inform individuals about our apps. In addiMon, we are adverMsing our company on the Virtual Enterprise InternaMonal website. Moreover, we made numerous phone calls to introduce our company and sent immense emails to other virtual enterprise rms. The risk of not meeMng the expected sales goals hung heavily on our shoulders. There was concern that we would not breakeven and that we would end up in debt. We were also worried that the bank would not give us a loan, as we did not have any previous capital. We successfully acquired a $200,000 loan with a 60-month term payment schedule. Although the scal year ended on April 20, 2013, we expect $300,000 from accounts receivables and $100,000 in the upcoming month in May 2013 from our new apps in producMon. Next year, Napps will emphasize the producMon of our new and improved apps. Some of these apps include our Atendance App and our FLHS Handbook. We will also focus on more corporate apps. We want other virtual enterprise rms to acknowledge us and for Napps to be a top contender in the virtual enterprise world. As far as new products go, the creaMvity will be lex on next years employees. The creaMvity will always ow within the walls of Napps and to wherever we take our products.

T A R G E T M A R K E T S
Secondary Target Market Middle to upper class families Adults and children Terbary Target Market InternaMonal countries China, Japan and India

Primary Target Market Young adults in school Aged 14 to 25

PAGE 15

16.

ADDITIONAL SUPPORTING DOCUMENTATION FOR YEAR- END REPORTING

Form 1120VE
NUAPPS 58-20 UTOPIA PKWY. FRESH MEADOWS, NY, 11365

V.E. Corporation Income Tax Return

Fiscal 2013 ending 4/30/13
Employer identification number Date incorporated Total assets

2013
610436899 11/21/12 552,664

1a. Gross receipts or sales 1a. 236887 1b. Returns or allowances 1b. 0 1c. Net receipts or sales 1c. 236887 2. Cost of goods sold (Schedule A, line 7) 2. 0 3. Gross profit. Subtract line 2 from line 1c. 3. 236887 4. Dividends 4. 5. Interest 5. 6. Capital gain net income (attach Schedule D (Form 1120)) 6. 7. Other income 7. 8. Total income 8. 236887 9. Compensation of officers 9. 0 10. Salaries and wages 10. 166109 11. Repairs and maintenance 11. 12. Bad debts 12. 13. Rents 13. 15326 14. Payroll taxes 14. 96746 15. Interest 15. 3833 16. Advertising 16. 475 17. Pension, profit sharing, 401(k) plans, etc. 17. 0 18. Depreciation 18. 5635 19. Other deductions (attach schedule) LOAN PAYMENTS 19. 19243 20. Total deductions. Add lines 9 through 19. 20. 307367 21. Taxable income before net operating loss deduction. (Subtract line 20 from line 8) 21. -70480 22. Less: Net operating loss deductions 22. 23. Taxable income. Subtract line 22 from line 21. 23. 24. Tax. (Refer to tax table in instructions) 24. 25. Payments a. 2012 payment credited to 2013 0 b. 2013 estimated tax payments c. Other credits 0 d. Sum of a, b and c. 25d. 26. Estimated tax penalty 26. 0 27.Tax due. If line 25d is smaller than line 24, enter amount owed. 27. 28. Overpayment . If line 25d is greater than line 24, enter amount of overpayment. 28. 0 29a. Enter the amount of line 28 you want credited to 2014 estimated tax 29a. 0 29b. Enter the amount of line 28 you want refunded. 29b. 0 Under penalties of perjury, I declare that I have examined this return and the accompanying schedules, and to the best of my knowledge and belief, it is true, correct and complete. Signature of officer Date 5/10/13 Title CFO

Tax and payments

Deductions

Income

Paid Preparer's Use Only

Preparer's signature NICOLE NGUYEN Firm name (or yours if self-employed) NUAPPS Address 58-20 UTOPIA PKWY. FRESH MEADOWS, NY, 11365

Date

5/10/13

PAGE 17

VIRTUAL ENTERPRISE TAX ACCOUNT

At

122 Amsterdam Avenue New York, N.Y. 10023 WITHHOLDING TAX FORM 941
READ ALL INSTRUCTIONS BEFORE COMPLETING THIS FORM Company Name: NUAPPS Address: 58-20 UTOPIA PKWY. FRESH MEADOWS NY, 11365, USA Beginning Date of Payroll: 4/1/13 Ending Date of Payroll: 4/30/13 Employer Identification #610436899

FEDERAL WITHHOLDING REMITTANCE FORM 1 NUMBER OF EMPLOYEES IN THE PAY PERIOD THAT INCLUDES THE 12th DAY OF THE MONTH A 2 3 4 5 6 7 8 TOTAL WAGES PLUS OTHER COMPENSATION CONTRIBUTIONS TO QUALIFIED RETIREMENT PLANS WAGES SUBJECT TO FED. INCOME TAX (2C - 3C) TOTAL FEDERAL INCOME TAX WITHHELD TAXABLE SOCIAL SECURITY WAGES TAXABLE MEDICARE WAGES TOTAL OF LINES 5C, 6C AND 7C

28 B C 45,852.10 6,426.17 5,685.66 1,329.71 13,441.54

45852.1 x .124 45852.1 x .029

STATE AND LOCAL TAX REMITTANCE 9 10 11 12 TAXABLE WAGES AMOUNT OF STATE TAX WITHHELD AMOUNT OF LOCAL TAX WITHHELD TOTAL OF LINES 10 AND 11 REMITTANCE AMOUNT Pay to the VE Tax Account, VEC-Bank # 10000 2354 13 LINE 8 FROM ABOVE 14 LINE 12 FROM ABOVE 15 TOTAL OF LINES 13 AND 14 TYPE OR PRINT NAME OF PERSON RESPONSIBLE FOR THE PAYROLL RECORDS: NICOLE NGUYEN SIGNATURE OF PERSON RESPONSIBLE FOR THE PAYROLL RECORDS NICOLE NGUYEN Date: 05/09/13 13,441.54 2,682.80 16,124.34 45,852.10 2,682.80 2,682.80

PAGE 18

V I R T U A L E N T E R P R I S E S I N T E R N A T I O N A L L O A N T A B L E NUAPPS
Fiscal'year' APR' 201212013 Report1Date 1$May$12 1$Jun$12 1$Jul$12 1$Aug$12 1$Sep$12 1$Oct$12 1$Nov$12 1$Dec$12 1$Jan$13 1$Feb$13 1$Mar$13 1$Apr$13 Total Beginning1Balance $11111111111111111111111 $ $11111111111111111111111 $ $11111111111111111111111 $ $11111111111111111111111 $ $11111111111111111111111 $ $11111111111111111111111 $ $1111111111 200,000.00 $1111111111 196,553.70 $1111111111 193,580.34 $1111111111 190,595.22 $1111111111 187,598.28 Interest $1111111111111111111 $ $1111111111111111111 $ $1111111111111111111 $ $1111111111111111111 $ $1111111111111111111 $ $1111111111111111111 $ $1111111111111111111 $ $11111111111111 791.67 $11111111111111 778.03 $11111111111111 766.26 $11111111111111 754.44 $11111111111111 742.58 $11111111113,832.96 2012$2013 4.75% Adjusted1Balance $111111111111111111111 $ $111111111111111111111 $ $111111111111111111111 $ $111111111111111111111 $ $111111111111111111111 $ $111111111111111111111 $ $111111111111111111111 $ $11111111200,791.67 $11111111197,331.72 $11111111194,346.60 $11111111191,349.66 $11111111188,340.85 End1Balance $1111111111111111111 $ $1111111111111111111 $ $1111111111111111111 $ $1111111111111111111 $ $1111111111111111111 $ $1111111111111111111 $ $1111111111111111111 $ $11111111114,237.97 $111111 196,553.70 3,751.38 $111111 193,580.34 $11111111113,751.38 $111111 190,595.22 $11111111113,751.38 $111111 187,598.28 $11111111113,751.38 $111111 184,589.47 $1111111119,243.49 $111111 184,589.47 Payment

Income Statement (Year Ending 4/30/2013)

Revenues
Cash Trade Fair Sales (net) 11,000 Trade Fair Sales to Sales on Non-VE Account Customers (net) (net) 51,178 Cost of Goods Sold or Services Provided

Firm Name

All Other Sales

Total Sales

Gross Profit

Formulas Firm Name

174,709 236,887

0 236,887

!
Other Operatin g Total Expense Operating s Expenses

Operating Expenses

Salaries

Payroll Tax

Rent

Utilities

Advertising Insurance

Interest

Depreciation Supplies

401(k)

166,109 96,746

12,441

2,885

475

3,833

5,635

0 19,243 307,367

Income from Operations

Other Gains/ Losses

Corporate Net Income Tax After Tax

!70,480

!70,480

PAGE 19

Cash Budget (Year Ending 4/30/2013)

Cash Receipts
Cash Receipts (Current Year Sales) Cash Receipts (Prior Year Sales)

Firm Name

Cash in Bank 11/21/12

Other Cash Receipts

Total Cash Receipts

Formulas NUAPPS

200000

69,219

167,668

236887

Cash Payments

Cash Payments for Purchases

Other Cash Payments

Loan Repayment

Total Cash Payments

Cash in Bank 4/30/12

!! !!

181906

4238! !! !!

186144! !!

250743!

!!

Balance Sheet (Year Ending 4/30/2013)

Current Assets

Firm Name

Formulas

Cash 250,743

Accounts Receivable 301,921

Merchandise Inventory 0

Supplies 0

Other 0

Total Current Assets 552,664

Fixed Assets
NUAPPS
Less: Accumulated Depreciation -5,635

Nuapps

Trade*Show,* Mr.*Shama,* Serrano n/a

Total Fixed Assets 50,715 Total Assets 603,379

n/a

n/a

Fixed Assets 56,350

Computers,+ Balance Sheet Desks,+ Current Liabilities cabinets

Accounts Payable 2,442 Salaries Payable 33,235

!
Non Current Liabilities

(4/30/2013): Liabilities

Payroll Tax Payable 96,746

Sales Tax Payable 20,728

Corporate Tax Payable 0

Other 2,000

Total Current Liabilities 155,151

Loan Payable 15,006

Total Noncurren Total Other t Liabilities Liabilities 170,157 0 15,006

Stockholders' Equity
Common Stock
# of shares issued 5,635 # of shares issued * par value (par Additional value = $10 Paid-in per share) Capital 56,350 0 Total Liabilities Total and Shareholde Shareholde rs' Equity rs' Equity 433,222 603,379

Retained Earnings 376,872

PAGE 20

L O A N A M O R T I Z A T I O N S C H E D U L E

PAGE 21

B A N K S T A T E M E N T S

PAGE 22