Company: APCXW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002130
Chunk: 271

Company: AppTech Payments Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 271
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, the Company does not believe any provisions are required in connection with uncertain
tax positions.

     34 

Research and Development

Research
and Development (R&D) expenses include internal and outsourced service costs incurred to maintain the FinZeo platform. Per ASC 730,
R&D costs are expensed as incurred. Total R&D expenses for the years ended December 31, 2024, and December 31, 2023, were approximately
$1,977 thousand and $3,498 thousand, respectively.

Per Share Information

Basic net income (loss) per common share is computed
by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the year. Diluted net income
(loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding
during the year, increased by the potentially dilutive common shares that were outstanding during the year. Dilutive securities include
stock options, warrants granted, convertible debt and convertible preferred stock.

The
number of common stock equivalents not included in diluted income per share for the years ended December 31, 2024 and 2023,
respectively are presented below. The weighted average number of common stock equivalents is not included in diluted income (loss)
per share, because the effects are anti-dilutive.

    Schedule of weighted
average number of common stock equivalents 

    December 31, 2024  
    December 31, 2023 
  
    Series A preferred stock 
     1,148  
     1,148 
  
    Warrants 
     15,906,627  
     7,489,960 
  
    Options 
     5,446,785  
     2,725,564 
  
    Total 
     21,354,560  
     10,216,672 

Stock Based Compensation

Stock
options are valued using the estimated grant-date fair value method of accounting in accordance with ASC Topic 718, Compensation –
Stock Compensation. Fair value is determined based on the Black-Scholes Model using inputs reflecting our estimates of expected volatility,
term and future dividends. We recognize forfeitures as they occur. The
Company has several consulting agreements that have share-based payment awards based on performance. These agreements typically require
the Company to issue common stock to the consultants on a monthly basis. The Company records the fair market value of the common stock
iss