Company: APCXW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002130
Chunk: 301

Company: AppTech Payments Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 301
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 platform packages together elements of
AppTech’s intellectual property, BaaS, and PaaS to create a one-hub connection point of multi-tenant portals giving the merchant,
ISO/ISV, and each customer a well-defined user experience.

Financial Operations Overview

The following discussion sets forth certain components
of our statements of operations as well as factors that impact those items (in thousands, except per share data).

Revenues

Our Revenues. We derive our revenue by providing
financial services to businesses.

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.

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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 is based upon a percentage of the amounts processed by these
merchant accounts.

Expenses

Cost of Revenue. Includes costs directly attributable
to processing and other services the Company provides. These also include related costs such as residual payments to our business development
partners, which are based on a percentage of the net revenue generated from client referrals.

General and administrative. Include salaries,
professional services, software costs, regulatory expenses, stock-based compensation, rent and utilities, and other operating costs.

Research and development. Includes the internal
and outsourced services costs incurred to maintain and further develop the FinZeo platform, and the development of additional technology
needed to pursue new product offerings.

Other income (expenses). Consists of interest
on outstanding indebtedness, the change in value of derivative liabilities, and the gain/loss on debt extinguishment.

Results of Operations

This section includes a summary of our historical
results of operations, followed by detailed comparisons of our results for the years ended December 31, 2024 and 2023, respectively.
We have derived this data from our annual consolidated financial statements included elsewhere in this report.

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The following table presents our historical results