Company: APCXW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001683168-25-008326
Chunk: 26

Company: AppTech Payments Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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 nine months ended September 30, 2025,
net cash provided by financing activities was $3,400 thousand, which consists of proceeds received on the outstanding equity receivable
at year-end, additional funds related to the AFIOS investment, and three convertible notes.

During the nine months ended September 30,
2024, net cash provided by financing activities was approximately $4,358 thousand. This amount primarily consists of $2,438 thousand in
net proceeds from the issuance of common shares, $910 thousand from a convertible note, and $1,010 from a warrant exercise.

Critical Accounting Policies and Estimates

Our discussion and analysis of our financial condition
and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with GAAP. The
preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of
assets, liabilities, revenues and expenses. Significant estimates include those related to the valuation of goodwill impairment and intangible
assets, and equity-based compensation. These estimates are based on historical experience and assumptions believed to be reasonable under
current conditions. It’s important to note that actual results could differ from these estimates.

Critical accounting policies are those that we
consider the most critical to understanding our financial condition and results of operations. The accounting policies we believe to be
most critical to understanding our financial condition and results of operations are discussed below. As of September 30, 2025, there
have been no significant changes to our critical accounting estimates nor to our recently issued accounting pronouncements, except as
described in Note 2 to our consolidated financial statements.

Equity-Based Compensation: We estimate
the fair value of stock options granted using the Black-Scholes option pricing model, which requires input of subjective assumptions.
The model inputs include expected stock price volatility, expected term, risk-free interest rate, and dividend yield. The assumptions
about future stock price volatility and the option’s expected term involve significant judgments based on historical data and future
expectations. The reported equity-based compensation expense is sensitive to changes in the volatility assumption. An increase in expected
volatility could materially impact the amount of compensation expense recognized.

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Goodwill Impairment 

Goodwill Impairment Testing: The process
requires an annual test for impairment of goodwill, and more frequent testing if certain indicators suggest that the goodwill might be
impaired. This assessment involves comparing the carrying amount of a reporting unit, including goodwill, to its fair value. Key