Company: APCXW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002130
Chunk: 487

Company: AppTech Payments Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 6
Chunk 487
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% and 80% of the accounts receivable balance
was generated from three customers in 2024 and two customers in 2023.

For the year ended December 31, 2024, three
customers accounted for 34%,
22% and 15% of our revenues compared to 49%
and 31% for the top two customers for the year ended December 31, 2023. The loss of the customers would have a significant
impact on the Company's financials

     31 

Cash and Cash Equivalents

The Company's cash consists of cash on deposit at
its bank. Cash equivalents, if applicable, represents highly liquid investments with maturities of three months or less at the date of
purchase. Management determines the appropriate classification.

Accounts Receivable and Allowance for Doubtful
Accounts

Accounts receivable are recorded net of an allowance
for doubtful accounts, when applicable. The Company regularly monitors receivables for recoverability. Historically, the Company has not
written off any accounts receivable balances and does not maintain an allowance for doubtful accounts.

Revenue Recognition

The Company accounts for revenue under Accounting
Standards Codification (“ASC”) 606 Revenue from Contracts with Customers, which provides a single comprehensive model for
entities to use in accounting for revenue arising from contracts with customers.

Licensing Revenue

The
Company is actively pursuing strategic partnership agreements that license our technology for a fee. The licensing fee is deferred and
recognized over the term of the service period or contract. As of
December 31, 2024 and 2023, the Company recognized $94 thousand and $156 thousand in licensing revenue, respectively.

Merchant Processing Services

The Company provides merchant processing solutions
for credit card and ACH transactions. We act as an intermediary between merchants, who initiate transactions and banks that process them.
We collect either a flat fee, a fee for each transaction, and or a fee calculated as a percentage of its value, from both credit cards
and ACHs. Revenue is recognized when transactions are processed by banks or at month-end based on the processing activity. Payments to
channel partners are deducted from revenue.

Accrued Residuals

The Company pays commissions to independent agents
who refer merchant accounts. The amounts payable to these independent agents are based upon a percentage of the amounts processed by these
merchant accounts.

Business Combination

ASC 805, Business Combinations (“ASC 805”),
applies the acquisition method of accounting for business combinations