Company: APCXW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006148
Chunk: 23

Company: AppTech Payments Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 income was approximately $26 thousand
for the three months ended June 30, 2025, compared to an expense of $32 thousand for the three months ended June 30, 2024, representing
an increase of $58 thousand. For the six months ended June 30, 2025 and 2024, interest expense decreased from $35 thousand to $7 thousand.
The change was due to the interest related to the assigned agreement with our banking partners.

Gain on debt extinguishment 

Gain on debt extinguishment was approximately
$13 thousand for the three months ended June 30, 2025, compared to $0 for the three months ended June 30, 2024, representing an increase
of $13 thousand. The increase was driven by reconciling journal entries and accrued expenses write-offs. The balance remained unchanged
as of June 30, 2025.

 22 

Other income (expenses)

Other
expense was $5 thousand for the three months ended June 30, 2025, compared to income of $1 thousand for the three months ended June 30,
2024. The decrease of $6 thousand was primarily driven by the interest expense related to the note assumption recorded in April 2025.
For the six months ended June 30, 2025 compared to June 30, 2024, other expense increased from $1 thousand to other income of $30 
thousand. The biggest driver was the credit balance with the state of Delaware.

Liquidity and Capital Resources

The Company routinely evaluates its immediate working
capital needs and liquidity sources. For the three months ended June 30, 2025 and June 30, 2024, the Company maintained its liquidity
sources primarily through cash and cash equivalents, and proceeds received from the AFIOS Partners investment.

Cash and cash equivalents at June 30, 2025 and December
31, 2024 were $138 thousand and $868 thousand, respectively.

Management's Plan to Address Going Concern Considerations

The Company has experienced recurring operating losses,
primarily due to limited revenues. The Company's current financial conditions and recurring losses raise substantial doubt about its ability
to continue as a going concern.

Management has restructured its operations, reduced
its headcount, and is actively pursuing additional funding options. We are confident that two of its revenue streams will begin generating
revenue in the following twelve months from the issuance date of these financial statements.

Management intends to maintain adequate working capital
and