Yippy, Inc. (YIPI)

[yipi kay yay]

WAITING FOR BOUNCE?? IMPORTANT PART OF FINANCIAL!!! READ CAREFULLY


Liquidity and Capital Resources

As of May 31, 2013, the Company had net cash of $22,705.

Net cash used for operating activities for the year ended May 31, 2013, was $1,307,536, as
compared to $860,530for the year ended May 31, 2012. The Company finances its operations
from the proceeds from debt offerings. Net cash obtained through all financing activities for the
year ended May 31, 2013, was $1,577,319 compared to $910,815for the year ended May 31,
2012.

The Company has an open credit line with Magna Group, LLC for $2,000,000 of which the
Company has drawn $732,000 as of September 20, 2012. The Company plans to raise additional
funds through joint venture partnerships, both project equity and debt financings or through future
sales of our common stock and potentially restricted stock, until such time as our revenues are
sufficient to meet our cost structure and financial obligations, and ultimately achieve profitable
operations. Our financial statements do not include any adjustments that might result from the
outcome of these uncertainties. If the Company is not successful in obtaining additional capital by
the end of fiscal year 2013, it may be limited in its ability to further the development of the current
product offering and to meet its financial commitments.