UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                -----------------

                                   FORM 10-QSB

            [X] Quarterly Report pursuant Section 13 or 15(d) of the
                        Securities Exchange Act of 1934

                 For the quarterly period ended April 30, 2007

            [ ] Transition report pursuant section 13 or 15(d) of the
                        Securities Exchange Act of 1934

                                   333-11169
                                   ---------
                             Commission file number

                            YZAPP INTERNATIONAL INC.
                            ------------------------
        (Exact name of small business issuer as specified in its charter)

                                     Nevada
                                     ------
                          (State or other jurisdiction)

                                     Pending
                                     -------
                 (IRS         Employer of incorporation or organization
                              Identification No.)

         Suite 500 666 Burrard Street, British Columbia, Canada V6C 3P6
         --------------------------------------------------------------
                    (Address of principal executive offices)

                                  604 868 0264
                           (Issuer's telephone number)
                           ---------------------------

                  ---------------------------------------------
                  (Former Name, Address and Former Fiscal Year,
                         if Changed Since Last Report)

Check whether the issuer:

     (1)  filed all reports required to be filed by Section 13 or 15(d) of the
          Exchange Act during the past 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.
          Yes [X] No [ ]

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act). Yes [ ]  No  [X]

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

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE
PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.  Yes [ ]  No  [ ]

Common Stock of 50,000,000 authorized at $0.001 par value, 11,746,041 shares
were outstanding as of June 14, 2007.



<PAGE>

                            YZAPP INTERNATIONAL INC.

                                   FORM 10-QSB

                                      INDEX



PART I. FINANCIAL INFORMATION                                               Page


Item 1. Financial Statements

Consolidated Balance Sheets at April 30, 2007 (Unaudited) and
     July 31, 2006 (Audited)                                                F-1

Consolidated  Statements of Operations (Unaudited) for the
     nine months ended April 30, 2007 and 2006 and accumulated
     from August 24, 2000 to April 30, 2007                                 F-2

Consolidated  Statements of Cash Flows (Unaudited) for the
     nine months ended April 30, 2007 and 2006                              F-3

Notes to Consolidated Financial Statements                                  F-4


Item 2. Managements' Discussion and Analysis of Financial
                  Condition and Results of Operations                         3

Item 3. Controls and Procedures                                               4

PART II. OTHER INFORMATION                                                    5

Item 4. Legal Proceedings                                                     5

Item 5:  Subsequent Events                                                    5

Item 6. Exhibits and Reports on Form 8-K                                      5

Signatures                                                                    5


<PAGE>
<TABLE>
<CAPTION>
                            YzApp International Inc.
                          (A Development Stage Company)
                           Consolidated Balance Sheets
                           (expressed in U.S. dollars)

                                                           April 30,      July 31,
                                                             2007           2006
                                                               $              $
                                                          (unaudited)
                                                          ----------    ----------
<S>                                                              <C>        <C>
                                     ASSETS

Current Assets
Cash                                                             286        14,979
Amounts receivable                                             8,660         8,502
                                                          ----------    ----------

Total Current Assets                                           8,946        23,481

Property and Equipment (Note 3)                                   --         9,669

Software Development Costs (Note 4)                               --        38,306
                                                          ----------    ----------

Total Assets                                                   8,946        71,456
                                                          ==========    ==========

                     LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities

Accounts payable and accrued liabilities                      30,373        22,054
Advances payable (Note 5)                                     33,113         9,835
Current liabilities of discontinued operations (Note 6)       20,039       271,055
Due to related party (Note 7)                                     --        32,772
                                                          ----------    ----------

Total Current Liabilities                                     83,525       335,716
                                                          ----------    ----------

Going Concern (Note 1)

                             STOCKHOLDERS' DEFICIT

Preferred Stock:
1,000,000 authorized, $0.001 par value;
Nil shares issued and outstanding                                 --            --

Common Stock:
50,000,000 shares authorized, $0.001 par value;
11,746,041 and 11,546,041 shares issued and
outstanding, respectively                                     11,746        11,546

Additional Paid-in Capital                                   788,959       769,159

Donated Capital (Note 7)                                     147,152       142,152

Deficit Accumulated During the Development Stage            (965,576)   (1,127,083)

Accumulated Other Comprehensive Loss                         (56,860)      (60,034)
                                                          ----------    ----------
Total Stockholders' Deficit
                                                             (74,579)     (264,260)
                                                          ----------    ----------

Total Liabilities and Stockholders' Deficit                    8,946        71,456
                                                          ==========    ==========
</TABLE>

                 (The accompanying notes are an integral part of
                    these consolidated financial statements)

                                      F-1


<PAGE>
<TABLE>
<CAPTION>
                            YzApp International Inc.
                          (A Development Stage Company)
                      Consolidated Statements of Operations
                           (expressed in U.S. dollars)
                                   (unaudited)

                                                                                                          Accumulated from
                                                                                                           August 24, 2000
                                                     Nine Months Ended           Three Months Ended      (Date of Inception)
                                                         April 30,                     April 30,            to April 30,
                                                   2007            2006          2007            2006           2007
                                                     $               $             $               $              $
                                                -----------    -----------    -----------    -----------    -----------
<S>                                                  <C>            <C>             <C>           <C>           <C>
Revenue                                                  --             --             --             --             --
                                                -----------    -----------    -----------    -----------    -----------
Operating Expenses

   Depreciation                                         693          2,779             --            907         29,107
   General and administrative                        35,058         44,828          8,239         16,193        458,105
                                                -----------    -----------    -----------    -----------    -----------

Total Operating Expenses                             35,751         47,607          8,239         17,100        487,212
                                                -----------    -----------    -----------    -----------    -----------

Loss before Other Income (Expense)                  (35,751)       (47,607)        (8,239)       (17,100)      (487,212)

Other Income (Expense)

   Gain on debt forgiveness/settlements             244,016             --             --             --        244,016
   Impairment of property and equipment              (8,807)            --             --             --         (8,807)
   Interest income                                       --             --             --             --          2,789
   Interest expense                                    (392)            --           (265)            --        (56,029)

   Loss on disposal of property and equipment            --             --             --             --         (2,017)
                                                -----------    -----------    -----------    -----------    -----------

Income (Loss) from Continuing Operations            199,066        (47,607)        (8,504)       (17,100)      (307,260)

Loss from discontinued operations (Note 6)          (37,559)            --             --             --       (658,316)
                                                -----------    -----------    -----------    -----------    -----------

Net Income (Loss) for the Period                    161,507        (47,607)        (8,504)       (17,100)      (965,576)

Comprehensive Income (Loss)

   Foreign currency translation adjustment            3,174        (25,243)          (726)        (6,672)       (56,860)
                                                -----------    -----------    -----------    -----------    -----------

Comprehensive Loss                                  164,681        (72,850)        (9,230)       (23,772)    (1,022,436)
                                                ===========    ===========    ===========    ===========    ===========
Net Income (Loss) Per Share:
Continuing Operations - Basic and Diluted              0.02             --             --             --
Discontinued Operations - Basic and Diluted              --             --             --             --
                                                -----------    -----------    -----------    -----------

                                                       0.02             --             --             --
                                                ===========    ===========    ===========    ===========

Weighted Average Common Shares Outstanding       11,667,653     11,440,913     11,746,041     11,513,007
                                                ===========    ===========    ===========    ===========
</TABLE>

                 (The accompanying notes are an integral part of
                    these consolidated financial statements)

                                      F-2

<PAGE>



                            YzApp International Inc.
                          (A Development Stage Company)
                      Consolidated Statements of Cash Flows
                           (expressed in U.S. dollars)
                                   (unaudited)

                                                           Nine Months Ended
                                                               April 30,
                                                           2007         2006
                                                             $            $
                                                         --------      --------
Operating Activities

Net income (loss)                                         161,507       (47,607)

Adjustments to reconcile net loss to net
 cash used in operating activities:

 Depreciation                                                 693         2,779
 Donated services                                           5,000        27,000
 Gain on forgiveness of debt/debt settlement             (244,016)           --
 Impairment of property and equipment                       8,807            --
 Impairment of software development costs                  37,559            --

Changes in operating assets and liabilities:

 Amount receivable                                            (42)          624
 Accounts payable                                          (6,548)      (20,791)
 Due to related party                                          --         1,384
                                                         --------      --------

Net Cash Used In Operating Activities                     (37,040)      (36,611)
                                                         --------      --------

Financing Activities

 Increase (decrease) in advances payable                   23,278        (3,294)
 Proceeds from the issue of common stock                       --        70,000
                                                         --------      --------

Net Cash Provided By Financing Activities                  23,278        66,706
                                                         --------      --------

Effect of Exchange Rate Changes on Cash                      (931)          479
                                                         --------      --------

Increase (Decrease) In Cash                               (14,693)       30,574

Cash - Beginning Of Period                                 14,979           274
                                                         --------      --------

Cash - End Of Period                                          286        30,848
                                                         ========      ========

Supplemental Disclosures
  Interest paid                                                --         2,201
  Income taxes paid                                            --            --
                                                         ========      ========
Non-cash Financing Activities
  Common shares issued for to settle debt                  20,000            --
                                                         ========      ========


                 (The accompanying notes are an integral part of
                    these consolidated financial statements)

                                      F-3


<PAGE>
                            YzApp International Inc.
                          (A Development Stage Company)
                 Notes to the Consolidated Financial Statements
                           (expressed in U.S. dollars)
                                 April 30, 2007
                                   (unaudited)


1.   Nature of Operations and Continuance of Business

     YzApp International Inc. (the "Company") was incorporated in the State of
     Nevada on December 26, 2002. Effective October 15, 2003, the Company
     acquired all the outstanding common stock of YzApp Solutions Inc.
     ("Solutions"), a company under common control, by issuing 9,520,000 common
     shares on a one share for two shares owned basis. Solutions was
     incorporated under the Company Act of British Columbia on August 24, 2000
     and continued into federal jurisdiction under the Canada Business
     Corporations Act on October 15, 2001. The principal business of Solutions
     is operating as an application service provider acting as a conduit between
     retailers and financial institutions. Prior to the reverse acquisition, the
     Company was a non-operating shell company with nominal net assets.
     Therefore, this acquisition was a capital transaction in substance, rather
     than a business combination, and was accounted for as a reverse acquisition
     using the purchase method of accounting. Because Solutions was deemed to be
     the acquirer for accounting purposes, the financial statements are
     presented as a continuation of Solutions and include the results of
     operations of Solutions since its incorporation on August 24, 2000, except
     that all share issuances of Solutions were adjusted to reflect the 1 for 2
     share exchange on the acquisition.

     The Company is based in Vancouver, British Columbia, Canada and its
     principal business is the development of software allowing the Company to
     act as an application service provider acting as a conduit between
     retailers and financial institutions. As at January 31, 2007, the Company
     decided to discontinue its business of developing software. See Note 6.

     These financial statements have been prepared on a going concern basis,
     which implies the Company will continue to realize its assets and discharge
     its liabilities in the normal course of business. The Company has generated
     minimal revenue since inception and has never paid any dividends and is
     unlikely to pay dividends or generate earnings in the immediate or
     foreseeable future. The continuation of the Company as a going concern is
     dependent upon the continued financial support from its shareholders, the
     ability of the Company to obtain necessary equity financing to continue
     operations and the attainment of profitable operations. As at April 30,
     2007, the Company has a working capital deficiency of $74,579 and has
     accumulated losses of $965,576 since inception. These factors raise
     substantial doubt regarding the Company's ability to continue as a going
     concern These financial statements do not include any adjustments to the
     recoverability and classification of recorded asset amounts and
     classification of liabilities that might be necessary should the Company be
     unable to continue as a going concern.

     On August 23, 2005, the Company had its SB-2 Registration Statement
     declared effective by the United States Securities and Exchange Commission,
     which allowed the Company to sell 3,000,000 shares of common stock at $0.50
     per share to raise approximate net proceeds of $1,350,000 after all
     offering costs. In February 2006, pursuant to the SB-2 Registration, the
     Company raised $70,000 through the issuance of 140,000 shares at $0.50.


2.   Summary of Significant Accounting Policies

     (a)  Basis of Presentation

          These consolidated financial statements are prepared in conformity
          with accounting principles generally accepted in the United States and
          are presented in U.S. dollars. All significant inter-company
          transactions and balances have been eliminated. The Company has not
          produced significant revenue from its principal business and is a
          development stage company as defined by Statement of Financial
          Accounting Standard ("SFAS") No. 7 "Accounting and Reporting by
          Development Stage Enterprises".

     (b)  Year End

          The Company's fiscal year end is July 31.

                                      F-4

<PAGE>
                            YzApp International Inc.
                          (A Development Stage Company)
                 Notes to the Consolidated Financial Statements
                           (expressed in U.S. dollars)
                                 April 30, 2007
                                   (unaudited)


2.   Summary of Significant Accounting Policies (continued)


     (c)  Use of Estimates

          The preparation of financial statements in conformity with accounting
          principles generally accepted in the United States requires management
          to make estimates and assumptions that affect the reported amounts of
          assets and liabilities and disclosure of contingent assets and
          liabilities at the date of the financial statements and the reported
          amounts of revenues and expenses during the periods. Actual results
          could differ from those estimates.

     (d)  Basic and Diluted Net Income (Loss) per Share

          The Company computes net income (loss) per share in accordance with
          SFAS No. 128, "Earnings per Share", which requires presentation of
          both basic and diluted earnings per shares (EPS) on the face of the
          income statement. Basic EPS is computed by dividing net income (loss)
          available to common shareholders (numerator) by the weighted average
          number of common shares outstanding (denominator) during the period.
          Diluted EPS gives effect to all dilutive potential common shares
          outstanding during the period including stock options, using the
          treasury stock method, and convertible preferred stock, using the
          if-converted method. In computing diluted EPS, the average stock price
          for the period is used in determining the number of shares assumed to
          be purchased from the exercise of stock options or warrants. Diluted
          EPS excludes all dilutive potential common shares if their effect is
          anti-dilutive.

     (e)  Foreign Currency Translation

          The Company's functional currency is the Canadian dollar. The
          financial statements of the Company are translated to United States
          dollars under the current rate method in accordance with SFAS No. 52
          "Foreign Currency Translation". Under the current rate method, all
          assets and liabilities are translated at the current rate, while
          stockholders' equity accounts are translated at the appropriate
          historical rate. The revenues and expenses that occur evenly over the
          period are translated at the weighted-average rate for the period. The
          cumulative translation adjustments balance is reported as a component
          of accumulated other comprehensive income. (f) Comprehensive Loss SFAS
          No. 130, "Reporting Comprehensive Income," establishes standards for
          the reporting and display of comprehensive income and its components
          in the financial statements. As at April 30, 2007 and 2006, the only
          component of comprehensive loss was foreign currency translation
          adjustments.

     (g)  Financial Instruments and Concentrations of Risk

          The fair values of financial instruments, which include cash, amounts
          receivable, accounts payable, accrued liabilities, advances payable,
          current liabilities of discontinued operations, and due to related
          party were estimated to approximate their carrying values due to the
          immediate or short-term maturity of these financial instruments. It is
          management's opinion that the Company is not exposed to significant
          interest rate, currency exchange rate or credit risks arising from
          these financial instruments.

     (h)  Property and Equipment

          Property and equipment are capitalized at original cost and amortized
          over their estimated useful lives at the following annual bases and
          rates:

          Computer equipment                             30% declining balance
          Furniture and fixtures                         20% declining balance
          Equipment under capital lease                  30% declining balance

          One-half the normal amortization is taken in the year of acquisition.

                                      F-5
<PAGE>



                            YzApp International Inc.
                          (A Development Stage Company)
                 Notes to the Consolidated Financial Statements
                           (expressed in U.S. dollars)
                                 April 30, 2007
                                   (unaudited)


2.   Summary of Significant Accounting Policies (continued)

     (i)  Long-lived Assets

          In accordance with Financial Accounting Standards Board ("FASB") SFAS
          No. 144, "Accounting for the Impairment or Disposal of Long-Lived
          Assets", the carrying value of intangible assets and other long-lived
          assets is reviewed on a regular basis for the existence of facts or
          circumstances that may suggest impairment. The Company recognizes
          impairment when the sum of the expected undiscounted future cash flows
          is less than the carrying amount of the asset. Impairment losses, if
          any, are measured as the excess of the carrying amount of the asset
          over its estimated fair value.

     (j)  Software Development Costs

          SFAS No. 86, "Accounting for the Costs of Computer Software to be
          Sold, Leased or Otherwise Marketed", requires the capitalization of
          certain software development costs subsequent to the establishment of
          technological feasibility. Based on the Company's product development
          process, technological feasibility is established upon the completion
          of a working model. Amortization of these costs will commence when the
          product is ready for release to customers.

     (k)  Income Taxes

          Potential benefits of income tax losses are not recognized in the
          accounts until realization is more likely than not. The Company has
          adopted SFAS No. 109 "Accounting for Income Taxes" as of its
          inception. Pursuant to SFAS No. 109 the Company is required to compute
          tax asset benefits for net operating losses carried forward. The
          potential benefits of net operating losses have not been recognized in
          these financial statements because the Company cannot be assured it is
          more likely than not it will utilize the net operating losses carried
          forward in future years.

     (l)  Recent Accounting Pronouncements

          In February 2007, the Financial Accounting Standards Board ("FASB")
          issued SFAS No. 159, "The Fair Value Option for Financial Assets and
          Financial Liabilities - Including an Amendment of FASB Statement No.
          115". This statement permits entities to choose to measure many
          financial instruments and certain other items at fair value. Most of
          the provisions of SFAS No. 159 apply only to entities that elect the
          fair value option. However, the amendment to SFAS No. 115 "Accounting
          for Certain Investments in Debt and Equity Securities" applies to all
          entities with available-for-sale and trading securities. SFAS No. 159
          is effective as of the beginning of an entity's first fiscal year that
          begins after November 15, 2007. Early adoption is permitted as of the
          beginning of a fiscal year that begins on or before November 15, 2007,
          provided the entity also elects to apply the provision of SFAS No.
          157, "Fair Value Measurements". The adoption of this statement is not
          expected to have a material effect on the Company's future reported
          financial position or results of operations.

          In September 2006, the SEC issued Staff Accounting Bulletin ("SAB")
          No. 108, "Considering the Effects of Prior Year Misstatements when
          Quantifying Misstatements in Current Year Financial Statements." SAB
          No. 108 addresses how the effects of prior year uncorrected
          misstatements should be considered when quantifying misstatements in
          current year financial statements. SAB No. 108 requires companies to
          quantify misstatements using a balance sheet and income statement
          approach and to evaluate whether either approach results in
          quantifying an error that is material in light of relevant
          quantitative and qualitative factors. SAB No. 108 is effective for
          periods ending after November 15, 2006. The adoption of this statement
          did not have a material effect on the Company's reported financial
          position or results of operations


                                      F-6
<PAGE>



                            YzApp International Inc.
                          (A Development Stage Company)
                 Notes to the Consolidated Financial Statements
                           (expressed in U.S. dollars)
                                 April 30, 2007
                                   (unaudited)


2.   Summary of Significant Accounting Policies (continued)


     (l)  Recent Accounting Pronouncements (continued)

          In September 2006, the FASB issued SFAS No. 158, "Employers'
          Accounting for Defined Benefit Pension and Other Postretirement Plans
          - an amendment of FASB Statements No. 87, 88, 106, and 132(R)". This
          statement requires employers to recognize the overfunded or
          underfunded status of a defined benefit postretirement plan (other
          than a multiemployer plan) as an asset or liability in its statement
          of financial position and to recognize changes in that funded status
          in the year in which the changes occur through comprehensive income of
          a business entity or changes in unrestricted net assets of a
          not-for-profit organization. This statement also requires an employer
          to measure the funded status of a plan as of the date of its year-end
          statement of financial position, with limited exceptions. The
          provisions of SFAS No. 158 are effective for employers with publicly
          traded equity securities as of the end of the fiscal year ending after
          December 15, 2006. The adoption of this statement is not expected to
          have a material effect on the Company's future reported financial
          position for results of operations.

          In September 2006, the FASB issued SFAS No. 157, "Fair Value
          Measurements". The objective of SFAS No. 157 is to increase
          consistency and comparability in fair value measurements and to expand
          disclosures about fair value measurements. SFAS No. 157 defines fair
          value, establishes a framework for measuring fair value in generally
          accepted accounting principles, and expands disclosures about fair
          value measurements. SFAS No. 157 applies under other accounting
          pronouncements that require or permit fair value measurements and does
          not require any new fair value measurements. The provisions of SFAS
          No. 157 are effective for fair value measurements made in fiscal years
          beginning after November 15, 2007. The adoption of this statement is
          not expected to have a material effect on the Company's future
          reported financial position or results of operations.

          In June 2006, the FASB issued FASB Interpretation No. 48, "Accounting
          for Uncertainty in Income Taxes, an interpretation of FASB Statements
          No. 109" ("FIN 48"). FIN 48 clarifies the accounting for uncertainty
          in income taxes by prescribing a two-step method of first evaluating
          whether a tax position has met a more likely than not recognition
          threshold and second, measuring that tax position to determine the
          amount of benefit to be recognized in the financial statements. FIN 48
          provides guidance on the presentation of such positions within a
          classified statement of financial position as well as on
          derecognition, interest and penalties, accounting in interim periods,
          disclosure, and transition. FIN 48 is effective for fiscal years
          beginning after December 15, 2006. The adoption of this statement is
          not expected to have a material effect on the Company's future
          reported financial position or results of operations.

          In March 2006, the FASB issued SFAS No. 156, "Accounting for Servicing
          of Financial Assets, an amendment of FASB Statement No. 140,
          Accounting for Transfers and Servicing of Financial Assets and
          Extinguishments of Liabilities". This statement requires all
          separately recognized servicing assets and servicing liabilities be
          initially measured at fair value, if practicable, and permits for
          subsequent measurement using either fair value measurement with
          changes in fair value reflected in earnings or the amortization and
          impairment requirements of Statement No. 140. The subsequent
          measurement of separately recognized servicing assets and servicing
          liabilities at fair value eliminates the necessity for entities that
          manage the risks inherent in servicing assets and servicing
          liabilities with derivatives to qualify for hedge accounting treatment
          and eliminates the characterization of declines in fair value as
          impairments or direct write-downs. SFAS No. 156 is effective for an
          entity's first fiscal year beginning after September 15, 2006. The
          adoption of this statement is not expected to have a material effect
          on the Company's future reported financial position or results of
          operations.


                                      F-7
<PAGE>



                            YzApp International Inc.
                          (A Development Stage Company)
                 Notes to the Consolidated Financial Statements
                           (expressed in U.S. dollars)
                                 April 30, 2007
                                   (unaudited)


2.   Summary of Significant Accounting Policies (continued)

     (l)  Recent Accounting Pronouncements (continued)

          In February 2006, the FASB issued SFAS No. 155, "Accounting for
          Certain Hybrid Financial Instruments-an amendment of FASB Statements
          No. 133 and 140", to simplify and make more consistent the accounting
          for certain financial instruments. SFAS No. 155 amends SFAS No. 133,
          "Accounting for Derivative Instruments and Hedging Activities", to
          permit fair value re-measurement for any hybrid financial instrument
          with an embedded derivative that otherwise would require bifurcation,
          provided that the whole instrument is accounted for on a fair value
          basis. SFAS No. 155 amends SFAS No. 140, "Accounting for the
          Impairment or Disposal of Long-Lived Assets", to allow a qualifying
          special-purpose entity to hold a derivative financial instrument that
          pertains to a beneficial interest other than another derivative
          financial instrument. SFAS No. 155 applies to all financial
          instruments acquired or issued after the beginning of an entity's
          first fiscal year that begins after September 15, 2006, with earlier
          application allowed. The adoption of this statement is not expected to
          have a material effect on the Company's future reported financial
          position or results of operations.

     (m)  Stock-based Compensation

          Prior to February 1, 2006, the Company accounted for stock-based
          awards in accordance with SFAS No. 123, "Accounting for Stock-Based
          Compensation". Effective February 1, 2006, the Company adopted the
          fair value recognition provisions of SFAS No. 123R "Share Based
          Payments", using the modified retrospective transition method. There
          was no effect on the Company's reported loss from operations, cash
          flows or loss per share as a result of adopting SFAS No. 123R.

     (n)  Interim Financial Statements

          These interim unaudited financial statements have been prepared on the
          same basis as the annual financial statements and in the opinion of
          management, reflect all adjustments, which include only normal
          recurring adjustments, necessary to present fairly the Company's
          financial position, results of operations and cash flows for the
          periods shown. The results of operations for such periods are not
          necessarily indicative of the results expected for a full year or for
          any future period.

     (p)  Reclassifications

          Certain of the prior period figures have been reclassified to conform
          to the current period's presentation.


3.   Property and Equipment
<TABLE>
<CAPTION>
                                                                  April 30,       July 31,
                                                                    2007            2006
                                                Accumulated     Net Carrying    Net Carrying
                                       Cost     Depreciation        Value           Value
                                         $            $               $               $
<S>                                      <C>          <C>            <C>             <C>
     Computer equipment                   -           -               -             2,545
     Furniture and fixtures               -           -               -             1,526
     Equipment under capital lease        -           -               -             5,598
                                       -----------------------------------------------------

                                          -           -               -           9,669
                                       =====================================================
</TABLE>

                                      F-8

<PAGE>

                            YzApp International Inc.
                          (A Development Stage Company)
                 Notes to the Consolidated Financial Statements
                           (expressed in U.S. dollars)
                                 April 30, 2007
                                   (unaudited)


4.   Software Development Costs
<TABLE>
<CAPTION>
                                                             April 30,       July 31,
                                                               2007           2006
                                             Accumulated   Net Carrying   Net Carrying
                                    Cost    Depreciation       Value          Value
                                      $           $              $              $
<S>                                  <C>          <C>           <C>          <C>
     Software development costs       -           -              -           38,306
     ----------------------------------------------------------------------------------
</TABLE>

     As at January 31, 2007, the Company decided to discontinue its software
     development business and recorded an impairment loss of $37,559 due to the
     uncertainty about expected future cash flows from the sales of products.


5.   Advances Payable


     As at April 30, 2007, the Company owed $18,754 (July 31, 2006 - $9,835) to
     shareholders for cash advances which are non-interest bearing, unsecured
     and due on demand.

     As at April 30, 2007, the Company owed $14,172 to an unrelated party which
     bears interest at 5% per annum, is unsecured and due on demand. As of April
     30, 2007 interest of $187 has been accrued on the loan.


6.   Discontinued Operations


     As at January 31, 2007, the Company has decided to discontinue its business
     of developing software

     The results of discontinued operations are summarized as follows:
<TABLE>
<CAPTION>

                                                                                          Accumulated from
                                             Nine         Nine       Three      Three      August 24, 2000
                                            Months       Months      Months     Months   (Date of Inception)
                                             Ended        Ended      Ended      Ended           to
                                            April 30,    April 30,  April 30,  April 30,     April 30,
                                              2007         2006       2007      2006           2007
                                                $            $          $         $              $
<S>                                          <C>           <C>        <C>       <C>            <C>
     Revenue                                     --          -          -         -            16,940
     ------------------------------------------------------------------------------------------------------
     Expenses                                37,559          -          -         -           675,256
     ------------------------------------------------------------------------------------------------------
     Net Operating Loss                     (37,559)         -          -         -          (658,316)
     ------------------------------------------------------------------------------------------------------
     Loss from Discontinued Operations      (37,559)         -          -         -          (658,316)
     ------------------------------------------------------------------------------------------------------
</TABLE>

     Assets and liabilities related to discontinued operations comprise the
     following:

                                            April 30,     July 31,
                                              2007         2006
                                               $             $

     Accounts payable                        20,039       271,055
     -------------------------------------------------------------

     Total Liabilities                       20,039       271,055
     -------------------------------------------------------------


                                       F-9


<PAGE>

                            YzApp International Inc.
                          (A Development Stage Company)
                 Notes to the Consolidated Financial Statements
                           (expressed in U.S. dollars)
                                 April 30, 2007
                                   (unaudited)


7.   Related Party Transactions

     (a) During the nine months ended April 30, 2007, the Company incurred
         management fees for ongoing management of the Company's affairs to a
         director and officer of the Company of $5,000 (2006 - $19,500), all of
         which was waived and recognized as donated services.

     (b) At April 30, 2007, the Company owed $Nil (July 31, 2006 - $32,772) to
         the President of the Company for advances and expenses paid on behalf
         of the Company. On October 31, 2006, the President forgave the $32,772
         owing to him as at July 31, 2006.


8.   Common Stock

     On November 15, 2006, the Company issued 200,000 shares at a fair value of
     $0.10 per share to settle debt of $227,808 resulting in a gain of $207,808.







                                      F-10
<PAGE>



Item 2.  Management's Discussion and Analysis of Financial Condition and
         Results of Operations


When used herein, the words "may", "will", "expect", "anticipate", "continue",
"estimate", "project", "intend", "plan" and similar expressions are intended to
identify forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended, regarding events, conditions and
financial trends that may affect Yzapp International Inc's (YZAPP or the
Company) future plans of operations, business strategy, operating results and
financial position. All statements, other than statements of historical facts,
included or incorporated by reference in this Form 10-QSB which address
activities, events or developments which the Company expects or anticipates will
or may occur in the future, including such things as future capital expenditures
(including the amount and nature thereof), business strategy, expansion and
growth of the Company's business and operations, and other such matters are
forward-looking statements. These statements are based on certain assumptions
and analyses made by the Company in light of its experience and its perception
of historical trends, current conditions and expected future developments as
well as other factors it believes are appropriate in the circumstances. Such
statements are not guarantees of future performance and are subject to risks and
significant uncertainties and that actual results may differ materially from
those included within the forward-looking statements as a result of various
factors. The occurrence of any unanticipated events may cause actual results to
differ from those expressed or implied by the forward-looking statements
contained herein. You are cautioned not to place undue reliance on these
statements, which speak only as of the date of this report.

Overview

Our operation activities have been related primarily to the research,
development and marketing of our interactive credit application called the
Intelligent Credit Application or "ICA". There are two versions of this
application, one for use by retailers and financial institutions and another
simplified version for consumers or those unfamiliar with computers or software.
These two versions are called the ICA Business Office also known as SalesMax and
the ICA Weblink respectively. We are no longer conducting research as our user
acceptance testing was completed on August 31, 2004. The results of the testing
indicated that the dealers could connect with, and use as intended, the
Intelligent Credit Application. The dealers requested a number of enhancements
so that the software would be easier to use and could print additional
documents. The full results of the user acceptance testing and desired
enhancements are contained in a document that is ready for programmers to use in
programming the required modifications. However due to our lack of capital our
marketing activities by Brian Jaggard and Douglas Dunn on a voluntary basis have
ceased.

Highlights of the Quarter

Revenues

With no active operations, there has been no revenue to report for the current
quarter or for the same quarter last year. General and administrative expenses
for the nine months ended April 30, 2007 were $35,058 compared to $44,828 for
the same period in 2006.

Management fees of $5,000 accrued to the President in the nine month period were
waived by the President and recorded as donated services.

Depreciation and amortization expense for the nine months ended April 30, 2007
was $693 compared to $2,779 for the same period last year. The difference is due
to the write off of the capital assets in the second quarter where no
depreciation was recorded.

                                       3
<PAGE>

Net Income (Loss)

Net Income for the nine months ended April 30, 2007 was $161,507 compared to a
loss of $47,607 for nine months ended April 30, 2006. Net income was the direct
result of the gain of $244,016 from debt forgiveness and debt settlements. This
was offset by a loss of $37,559 from discontinued operations as the Company
discontinued the development of its application software due to the lack of
adequate funds and no customer orders.


Liquidity and Capital Resources

Any company such as ours faced with liquidity pressures can be expected to make
internal adjustments to maximize near-term cash flow. Management has reduced
costs by carrying out the following. Waiver of first quarter executive
compensation, obtaining, at no charge, the expertise of current shareholders,
friends and family in several areas of the business. We are reducing capital
expenditures by delaying the purchase of equipment such as additional servers
and other hardware.

Our auditors have issued a going concern opinion. This means that our auditors
believe there is substantial doubt that we can continue as an on-going business
for the next twelve months unless we obtain additional capital to pay our bills.
This is because we have not generated any revenues with our basic product
offering and no revenues are anticipated as we have discontinued the development
of our application software due to the lack of adequate funds and no customer
orders.

Currently we must raise cash from sources other than operations. Our only other
sources for cash at this time include shareholder advances and the issuance of
shares. We must raise cash to implement our project and continue our operations.


Other than the methods of funding discussed above, we have no other financing
plans.

Item 3. Controls and Procedures

The Company's principal executive and financial officers have evaluated our
disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)
under the Securities Exchange Act of 1934) as of April 30, 2007. They have
determined that such disclosure controls and procedures are effective to ensure
that information required to be disclosed in our filings under the Securities
Exchange Act of 1934 with respect to the Company is recorded, processed,
summarized and reported within the time periods specified in the Securities and
Exchange Commission's rules and forms and is accumulated and communicated to our
management, including the Company's principal executive officer and principal
financial officer, as appropriate, to allow timely decisions regarding required
disclosures.

The Company has made no significant changes in its internal controls over
financial reporting during the most recent fiscal quarter covered by this Report
that materially affected or are reasonably likely to materially affect our
internal controls over financial reporting.


                                       4
<PAGE>

PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

There were no new legal proceedings during the quarter ended April 30, 2007.

Item 2.  Changes in Securities:    None

Item 3.  Default Upon Senior Securities:     There are no defaults to report.

Item 4.  Submission of Matters to a Vote of Security Holders:    None.

Item 5.  Other Information:    None



Item 6.   Exhibits and Reports On Form 8-K

     (a)  Exhibits.

          31   -- Certifications of CEO and CFO pursuant to Section 302 of the
               Sarbanes-Oxley Act of 2002

          32   -- Certifications of CEO and CFO pursuant to 18 U.S.C. Section
               1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
               Act of 2002


     (b)  Reports on Form 8-K

          The Company filed no reports on Form 8K during the quarter ended April
          30, 2007 however an 8-K was filed on March 9, 2007 to report a change
          in the Company's auditor.


                                   SIGNATURES

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

Date: June 14, 2007           YZAPP INTERNATIONAL INC.
                                   (Registrant)

                                By: /s/ Brian Jaggard
                                    -----------------
                                    Brian Jaggard,
                                    Chief Financial Officer, President and CEO




                                       5
<PAGE>