OTC: APYP

Historically,
through SleepX the Company operated in the digital health
company, focused on the development of accurate wearable monitoring solutions to treat sleep apnea and snoring and fundamentally improve
quality of life. Our solutions in the digital health area are based on our proprietary intellectual property portfolio comprised of Artificial
Intelligence (AI) and sensing technologies for the tracking, analysis, and diagnosis of vital signs and other physical parameters during
sleep time, offering extreme accuracy at an affordable cost.

As
disclosed in our public filings, as of August 21, 2025 we have entered into a transaction with Techlott Enterprises Ltd. (“Techlott”),
a Cypriot company, for the acquisition of proprietary blockchain-based lottery and gaming platform and the underlying intellectual property.
The transaction with Techlott represents a strategic business pivot for us by focusing on what we believe is the rapidly growing institutional
lottery market, providing a complete, production-ready technology package engineered for enterprise deployments. We are building an infrastructure
layer that makes fairness and transparency the default in games—spanning lottery and keno, virtual racing, and large multiplayer
titles. This is a “digital receipt printer” for every draw or in-game event, the system generates verifiable randomness (VRF),
records a public, tamper-evident receipt, and creates an audit trail ready for regulators and operators. Operators, regulators, and even
players can verify rather than just “trust.” The infrastructure layer plugs into an operator’s stack via SDK/API. The
architecture is multi-chain (including support for leading L2s such as Base), engineered for thousands of requests per second, and comes
with an audit trail and internal reporting to simplify regulatory compliance.

While
we continue to explore options with respect to our legacy digital health business, we currently intend to focus on the development and
expansion of our Blockchain based lottery and gaming field.

Overview
of the Blockchain Based Lottery and Gaming Field

The
lottery industry, long entrenched in traditional practices, is ripe for transformation. While it’s often lumped into the gaming
sector, the lottery market is more than just entertainment—it’s a high-volume commodity with its own set of challenges. Chief
among these are issues of transparency, fairness, and efficiency. However, the emergence of blockchain technology presents a compelling
opportunity to revolutionize the lottery industry.

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Blockchain
technology, with its decentralized and immutable ledger system, offers a promising solution to many of the longstanding problems plaguing
traditional lotteries. By leveraging blockchain, a lottery platform can fundamentally alter the way lottery games are conducted, enhancing
fairness and reducing fraud in the process.

Transparency
is a key issue in traditional lotteries, with participants often left in the dark about the inner workings of the system. Blockchain
technology addresses this by providing a transparent and auditable record of all transactions. Every ticket purchase, draw, and payout
is recorded on the blockchain, accessible to anyone with an internet connection. This transparency instills trust in the system, ensuring
that participants can verify the fairness of the lottery process.

Moreover,
blockchain technology enables the implementation of smart contracts, which are self-executing contracts with the terms of the agreement
directly written into code. Smart contracts can automate various aspects of the lottery process, from ticket sales to prize distribution,
eliminating the need for intermediaries and reducing the risk of human error or manipulation.

Additionally,
the immutable nature of blockchain ensures that once data is recorded, it cannot be altered or tampered with. This feature significantly
reduces the risk of fraud and manipulation, providing participants with peace of mind knowing that the integrity of the lottery is upheld.

The
lottery industry, despite its widespread popularity, grapples with a myriad of challenges that threaten its integrity and legitimacy.
One of the most pressing issues facing traditional lotteries is the pervasive lack of fairness, which casts a shadow of doubt over the
entire system. Players often question the authenticity of deals and tickets, wondering if they are legitimate or if they have been tampered
with in any way.

Central
to concerns about fairness is the method used for random number generation (RNG). In traditional lotteries, the RNG process is shrouded
in secrecy, leaving players skeptical about its security and randomness. Without transparent and verifiable RNG methods, players cannot
be certain that the outcome of the lottery draws is truly random, raising doubts about the fairness of the entire process.

Moreover,
delays in prize payouts further erode trust in traditional lotteries. Players rightfully expect prompt and timely payouts upon winning,
but all too often, they are left waiting for their prizes for extended periods. This lack of promptness not only frustrates players but
also fuels suspicions about the legitimacy of the lottery operators.

Embracing
innovative technologies, such as blockchain, can provide a viable solution to many of the industry’s longstanding problems. Blockchain’s
decentralized and transparent ledger system ensures that every transaction and draw is recorded in a tamper-proof manner, enhancing trust
and integrity. By implementing blockchain technology, lottery operators can establish a new standard of fairness and transparency in
the industry. Transparent RNG algorithms can be built into smart contracts, guaranteeing truly random outcomes for each draw. Furthermore,
blockchain’s immutable nature ensures that prize payouts are executed promptly and without the risk of manipulation.

In
conclusion, the challenges facing the lottery industry, particularly the lack of fairness and transparency, demand urgent attention and
innovative solutions. Through the adoption of blockchain technology and other cutting-edge advancements, the industry can rebuild trust
with players and pave the way for a more transparent and equitable future.

How
Blockchain Can Transform the Lottery Industry

Blockchain
technology has the potential to revolutionize the lottery industry by addressing some of its most persistent challenges. One of the most
significant benefits of blockchain technology in the lottery industry is its infallibility. Traditional lotteries are often susceptible
to human error and manipulation. However, blockchain eliminates the need for human intervention by automating key processes through smart
contracts. These self-executing contracts are programmed to execute predefined actions when certain conditions are met, ensuring that
prize delivery is guaranteed and tamper-proof. With smart contracts developed through blockchain app development services, players can
have confidence that the lottery’s operations are conducted fairly and without the risk of interference.

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Moreover,
blockchain-based lottery platforms are highly reliable. The security and reliability of prize delivery methods are guaranteed by smart
contracts, which are executed automatically and cannot be altered once deployed. This eliminates the potential for delays or disputes
in prize payouts, ensuring that winners receive their rewards promptly and without hassle. By leveraging blockchain app development services
to create a reliable system, lottery operators can instill trust in their players and uphold the integrity of their games.

Transparency
is another key advantage of utilizing blockchain app development services in the lottery industry. The immutable nature of the blockchain
ledger ensures that all data related to lottery transactions, including ticket purchases, draw results, and prize distributions, is recorded
transparently and cannot be altered or tampered with. This transparency provided by blockchain app development services allows players
visibility into the entire lottery process, enabling them to verify the fairness and integrity of the games. By leveraging blockchain’s
transparency through these services, lottery platforms can enhance trust and credibility among their players, fostering a more positive
gaming experience.

Furthermore,
blockchain-based lottery platforms built with blockchain app development services offer a democratic alternative to traditional lotteries
that are often subject to governmental control and regulation. By operating on a decentralized network, blockchain lotteries are beyond
the control of any single authority, making them resistant to censorship and manipulation. This decentralization facilitated by blockchain
app development services enables compliance with regulations while also ensuring that lottery games remain accessible and open to players
from around the world. By embracing blockchain’s democratic principles through these services, lottery platforms can promote inclusivity
and fairness in the industry.

In
short, blockchain technology holds immense potential to transform the lottery industry by offering infallible, reliable, transparent,
and democratic solutions. By leveraging blockchain’s core features through blockchain app development services, lottery platforms
can overcome the challenges of traditional lotteries and establish a new standard of trust and integrity in the industry. As blockchain
continues to evolve, it is poised to revolutionize the way lottery games are conducted, providing players with a more secure and transparent
gaming experience through the power of blockchain app development services.

Our
Lottery Platform

We
are developing a blockchain-based technology platform designed to support lottery and gaming operations through a combination of
smart contract infrastructure, verifiable randomness, and modular backend systems. Our platform is intended to enhance transparency,
operational efficiency, and auditability for lottery operators and regulators. Our solutions replace legacy, opaque systems with
transparent, blockchain-native architectures that ensure operational efficiency and regulatory compliance.

As
of the date of this report, our commercial operations are in an early stage, with one active customer deployment. Our future growth will
depend on our ability to secure additional customers, expand into new markets, and continue developing our platform.

Platform
Architecture

Our
technology is built on a multi-layered architecture that integrates blockchain infrastructure with traditional backend systems and user-facing
applications. The platform is designed to support high-throughput environments and can be deployed across multiple jurisdictions.

At
its core, the system utilizes blockchain-based smart contracts to automate key operational processes, including ticket registration,
draw execution, and prize distribution. These processes are designed to reduce reliance on manual intervention and improve consistency
and traceability across lottery operations.

The
platform integrates frontend interfaces, backend services, and blockchain components to deliver a unified system that can be adapted
to different operator requirements and regulatory environments.

Blockchain
Infrastructure and Smart Contracts

The
platform currently utilizes blockchain infrastructure, including networks such as Binance Smart Chain (BSC), selected for their performance
characteristics and cost efficiency. Smart contracts are used to manage core lottery functions, including:

●Recording
ticket purchases and participation data

●Executing
draw logic

●Managing
prize allocation and distribution

These
smart contracts are designed to provide transparent and verifiable records of lottery activity, enabling operators, regulators, and,
where applicable, end users to independently validate system outcomes.

Verifiable
Randomness

A
central component of the platform is its use of verifiable randomness mechanisms for draw execution.

The
system integrates external randomness providers, such as Chainlink Verifiable Random Function (VRF), to generate cryptographically verifiable
random outcomes. This approach is intended to:

●Reduce
the risk of manipulation in the draw process

●Provide
verifiable proof that outcomes are generated in accordance with predefined rules

●Support
regulatory and audit requirements related to fairness and integrity

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We
are also developing additional mechanisms to further bind draw outcomes to predefined rule sets and improve traceability and auditability
of each draw event.

Platform
Capabilities

The
platform is designed as a modular system that supports a wide range of operational capabilities for lottery operators, including:

Lottery
Management

End-to-end
management of lottery lifecycle processes, including ticket sales, draw execution, and prize distribution, with system events recorded
and traceable.

Operator
Tools and Back Office

Administrative
interfaces that provide real-time visibility into system activity, including transaction tracking, reporting, and operational controls.
These tools are intended to support compliance, auditing, and operational oversight.

Affiliate
and Promotional Systems

Integrated
tools for campaign management, affiliate tracking, and promotional logic, enabling operators to manage user acquisition and engagement
strategies.

Player
Engagement Features

Optional
engagement features, such as promotional campaigns and reward-based mechanisms, designed to support user retention and activity.

Operational
Flow

The
platform supports a full operational lifecycle, which typically includes:

1.User
onboarding and account or wallet connection

2.Participation
in lottery draws through ticket purchase

3.Execution
of draws using verifiable randomness

4.Automated
or system-assisted prize distribution

5.Ongoing
user engagement through additional platform features

Each
stage is recorded and managed through a combination of backend systems and blockchain-based components, enabling traceability across
the lifecycle.

Security
and System Integrity

We
implement multiple layers of security designed to protect system integrity and user data. These include:

●Use
of audited smart contract frameworks and third-party review processes, where applicable

●Adherence
to industry-standard security practices, including OWASP guidelines

●Continuous
system monitoring using infrastructure observability tools

●Internal
controls designed to mitigate fraud and unauthorized activity

While
these measures are designed to enhance security and reliability, no system can be guaranteed to be completely free from vulnerabilities
or risks.

Technology
Stack and Infrastructure

Our
platform is supported by a modern technology stack, including:

●Frontend
frameworks for web-based user interfaces

●Backend
systems built on scalable server architectures

●Database
systems for operational and analytical data

●Containerized
infrastructure and orchestration tools (e.g., Docker, Kubernetes)

●Blockchain
indexing and storage solutions

●Monitoring
and analytics tools for system performance and reliability

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This
architecture enables us to scale the platform, support multiple operators, and adapt to evolving technical and regulatory requirements.

Product
Layers and Services

Our
technology strategy includes the development of multiple product layers:

Protocol
Layer

Blockchain-based
infrastructure that manages core lottery logic and data recording.

Platform
Layer

A
modular, full-stack system that enables operators to manage lottery operations, including game configuration, reporting, and user management.

API
and Services Layer

We
are developing API-based services that allow third-party operators to access specific platform capabilities, including randomness services
and operational tools, without requiring direct blockchain integration.

Ecosystem
Development

Over
time, we intend to expand the platform into a broader ecosystem that can support multiple operators, game formats, and distribution channels
within a shared infrastructure framework.

Technology
Roadmap

Our
development roadmap includes:

●Expansion
to additional blockchain networks to support scalability and flexibility

●Enhancement
of API-based services for third-party operators

●Continued
development of operator tools and user interfaces

●Integration
of additional payment methods and regional capabilities

●Ongoing
improvements to security, monitoring, and system performance

These
initiatives are intended to support our long-term strategy of providing a scalable and compliant technology platform for the global lottery
and gaming industry.

Our
Products and Services

We
provide a range of technology products and services designed to support licensed lottery operators:

Platform
Access and Deployment

We
provide operators with access to our technology platform, including system setup, configuration, and deployment tailored to the operator’s
requirements and regulatory environment.

Customization
and Development

We
offer development services to adapt the platform to specific customer needs, including:

●Custom
game configurations

●Integration
with local payment systems

●Adaptation
to regulatory requirements

●Development
of additional features unique to each operator

Ongoing
Support and Maintenance

We
provide continuous technical support and system maintenance services, including:

●Platform
monitoring

●Issue
resolution

●System
updates and improvements

●Operational
support for live environments

Additional
Platform Capabilities

Our
platform includes modules for:

●Lottery
lifecycle management

●Administrative
and reporting tools

●Affiliate
and promotional systems

●User
engagement features

These
capabilities may be configured differently depending on the customer’s requirements.

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Revenue
Model

Our
revenue model is based on a combination of upfront fees, recurring service payments, and performance-based components. Specifically,
we generate revenue from:

Setup
and Implementation Fees

One-time
fees charged for the initial deployment, configuration, and onboarding of new customers onto our platform.

Service
and Support Fees

Recurring
fees for ongoing technical support, maintenance, and operation of the platform.

Custom
Development Fees

Fees
charged for the development of customer-specific features, integrations, and enhancements.

Revenue-Based
Fees

In
certain cases, we receive a percentage-based fee linked to the operational activity of the platform, such as a share of turnover or transaction
volume generated through the system.

The
exact fee structure may vary between customers based on commercial agreements.

Our
Growth Strategy

We
focus on providing technology solutions to licensed operators in regulated or emerging markets. Our go-to-market strategy includes:

●Partnering
with existing licensed operators – We focus on working with operators that hold
the necessary licenses in their respective jurisdictions, allowing us to provide technology
solutions without acting as a licensed operator ourselves.

●Supporting
digital transformation of traditional lottery systems

●Enabling
operators to integrate modern infrastructure into their existing operations — We
adapt our platform to meet local requirements, including regulatory constraints, payment
systems, and user preferences

●Expansion
of Existing Platforms. We continue to develop additional platform features and services
to support operator needs, including enhancements to system performance, reporting, and operational
tools

We
currently have one active customer operating on our platform and are in the process of expanding our commercial activity.

Market
Opportunity and Growth Strategy

Market
Opportunity

The
global lottery industry represents a large and established market, with significant participation across both developed and emerging
economies. Historically, the industry has been dominated by traditional, retail-based distribution models, with a growing but still limited
share of digital adoption.

Many
operators, particularly in emerging markets, continue to rely on legacy systems that may lack transparency, operational efficiency, and
real-time reporting capabilities. At the same time, regulators and consumers are increasingly focused on system integrity, auditability,
and digital accessibility.

We
believe these trends create an opportunity for technology providers to support the modernization of lottery infrastructure through scalable,
digital platforms.

Geographic
Focus

Our
current commercial activity is focused in Africa, where we have an active customer operating on our platform in The Gambia.

We
believe that certain emerging markets present favorable conditions for technology adoption due to:

●Increasing
mobile and digital payment usage

●Demand
for more efficient and transparent systems

●Opportunities
for modernization of existing lottery operations

Expansion
Strategy

We
intend to expand our operations into additional regions over time, with a focus on:

Asia

We
plan to explore opportunities in select Asian markets, where large populations and growing digital adoption may support demand for modern
lottery infrastructure.

Europe

We
also intend to evaluate opportunities in European markets, particularly where operators may seek to upgrade or complement existing systems
with more advanced technology solutions.

Our
expansion into new markets will depend on a range of factors, including regulatory requirements, availability of local partners, and
commercial viability.

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Competition

We
compete with a range of companies across its product lines. Competition varies by product:

1.Camelot
UK (national Lottery)

As
the operator of the UK National Lottery, Camelot boasts significant market share and a large player base with over £8.1 billion
in sales (2020-21. Our competitive advantage lies in that blockchain ensures unparalleled transparency and significantly lower operational
costs compared to their traditional, centralized infrastructure.

2.Intralot

A
global leader in lottery and gaming solutions, Intralot has a wide international presence, serving 40+ countries with €398 million
in revenue (2022). Our competitive advantage is that our modular architecture enables rapid, flexible deployment and superior hybrid
fiat-crypto functionality, outperforming Intralot’s often legacy integrations.

3.IGT
(International Game Technology)

IGT
is a dominant global gaming company, offering lottery, gaming machines, and sports betting solutions with billions in annual revenue
($4.2B in 2022). However, we offer auditable, decentralized transactions and fully automated operations, providing a level of trust and
efficiency that, in our opinion, traditional giants like IGT cannot match

Regulation
and Compliance

We
are subject to a variety of laws in the U.S. and abroad that affect our business, including state, territorial, and federal laws regarding
lotteries, gaming, sweepstakes, consumer protection, electronic marketing, data protection and privacy, competition, taxation, intellectual
property, export, and national security, all of which are continuously evolving. The scope and interpretation of the laws that are or
may be applicable to us are often evolving or new and uncertain and may conflict with each other, particularly those governing our international
operations.

Lottery
and gaming laws are generally based upon declarations of public policy designed to protect consumers from fraud and other misdeeds and
the viability and integrity of the games, while raising revenues for the particular country, state, or other authorizing jurisdiction.
To accomplish these goals, stringent laws and regulations may be established to ensure that participants in the industry meet certain
standards of character and responsibility, which may require participants to:

●
ensure
that games are conducted fairly and honestly;

●
establish
procedures designed to prevent cheating and fraudulent practices;

●
establish
and maintain anti-money laundering practices and procedures;

●
establish
and maintain responsible accounting practices and procedures;

●
ensure
that lottery games are sold only at the price established by the applicable lottery regulator;

●
report
prizes awarded and withhold certain amounts for taxes and other specified liabilities;

●
file
periodic reports with regulators;

●
establish
programs to promote responsible gaming and comply with other social responsibility practices; and

●
enforce
minimum age requirements.

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State
and federal laws in the U.S. govern and, in some cases, limit our business practices. For example, the Interstate Wagering Amendment
to 18 U.S.C. § 1301 limits our ability to purchase lottery games for a user located in one state from a lottery authority located
in another state, except under certain limited circumstances, such as where the lottery authorities in the respective states allow the
sales. Therefore, for our users located within the U.S., we only purchase lottery games for users geolocated to be physically
situated within the U.S. state or jurisdiction where the lottery game they are purchasing is being conducted, unless an exception were
to be authorized by the applicable lottery authorities.

In
addition, the Wire Act provides that anyone engaged in the business of betting or wagering that knowingly uses a wire communication facility
for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on
any sporting event or contest, or for the transmission of a wire communication that entitles the recipient to receive money or credit
as a result of bets or wagers, or for information assisting in the placing of bets or wagers, may be fined or imprisoned, or both. The
Wire Act provides, however, that it shall not be construed to prevent the transmission in interstate or foreign commerce of information
for use in news reporting of sporting events or contests, or for the transmission of information assisting in the placing of bets or
wagers on a sporting event or contest from a state or foreign country where betting on that sporting event or contest is legal into a
state or foreign country in which such betting is legal. In late 2011, the Office of Legal Counsel (“OLC”) in the United
States Department of Justice (“DOJ”) issued an opinion that concluded the conduct prohibited by the Wire Act was limited
to sports gambling; however, in January 2019, the OLC issued a new opinion that concluded that the restrictions in the Wire Act on the
transmission in interstate or foreign commerce of bets and wagers was not limited to sports gambling but applied to all bets and wagers,
including those involving state lotteries. Reinterpretation of the federal Wire Act by the OLC threatened certain online lottery sales,
leading to litigation in which the First Circuit Court of Appeals determined that the Wire Act applies only to interstate wire communications
related to sporting events or contests and not lottery games. In addition to the First Circuit’s decision, the U.S. Circuit Court
of Appeals for the Fifth Circuit has previously held the Wire Act prohibitions apply only to sports gambling. The Company is still analyzing
the impact of these decisions on its business.

Our
compliance with local, territorial and federal laws is based on our interpretation of existing state and federal laws regarding lottery
services such as ours. We have obtained legal advice and notified certain lottery authorities in U.S. jurisdictions where we do business
of the services that we offer, but in most cases, we have not received definitive determinations of the laws applicable to our services.
There is a risk that existing or future laws in the states and jurisdictions in which we operate may be interpreted in a manner that
is not consistent with our business model. Future laws that permit certain lottery services may be accompanied by restrictions or taxes
that make it impractical or less feasible to operate in certain jurisdictions.

Other
laws and regulations may be adopted or construed to apply to us that could restrict our business model, including privacy, taxation,
marketing, anti-money laundering, anti-corruption, copyright, currency exchange, export, and antitrust laws, as well as those governing
public companies.

The
growth of electronic commerce may prompt calls for stronger consumer protection laws that may impose additional burdens on companies
such as ours conducting business through the Internet and mobile devices. It is likely that scrutiny and regulation of our industry may
increase, and we will be required to devote additional resources to compliance with applicable regulations. While we believe that we
are currently in compliance in all material respects with all applicable laws and regulatory requirements, we cannot assure that our
activities or our users’ activities will not become the subject of any regulatory or law enforcement investigation, proceeding,
or other governmental action or that any such investigation, proceeding, or action, as the case may be, would not have a materially adverse
impact on us or our business, financial condition or results of operations.

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Corporate
Office

Our
principal executive office is 16 Balfour Street Jerusalem Israel. T Our main telephone number is (800) 674-3561. We maintain a website at
www,Techlott.com through which we make available free of charge our annual report on Form 10-K, quarterly reports on Form 10-Q, current
reports on Form 8-K, proxy statements on Schedule 14A, and amendments to those reports filed or furnished pursuant to Section 13(a) or
15(d) of the Exchange Act as soon as reasonably practicable after we electronically file such materials with, or furnish them to, the
Securities and Exchange Commission (the “SEC”). Alternatively, you may also access our reports at the SEC’s website
at www.sec.gov. Information contained on or accessible through our website is not, and should not be considered, part of, or incorporated
by reference into, this annual report.

Employees

We
and our subsidiaries retain the services of fourteen personnel, of which five are in administration, ten 10 in research and development
and two in marketing.

Corporate
and Available Information

Our
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and all amendments to those reports are available
free of charge though our website as soon as practicable after such material is electronically filed with, or furnished to, the Securities
and Exchange Commission (the “SEC”). Except as otherwise stated in these documents, the information contained on our website
or available by hyperlink from our website is not incorporated by reference into this report or any other documents we file, with or
furnish to, the SEC.