Company: APCXW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002130
Chunk: 809

Company: AppTech Payments Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9C
Chunk 809
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 In addition, we are actively pursuing additional funding options
and are confident that our revenue streams will begin generating cash, although no assurances can be made.

Management continues to maintain adequate working capital
and adhere to prudent financial forecasting.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying consolidated audited financial statements
have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Certain prior period amounts have been reclassified
to conform to the current period’s presentation.

Basis of Consolidation

The consolidated audited financial statements include
the accounts of AppTech Payments Corp., Alliance Partners., LLC, and wholly owned subsidiary. All significant inter-company accounts and
transactions are eliminated in consolidation.

Use of Estimates

The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period.

The
Company makes critical estimates and assumptions in valuing: identifiable intangible assets from the FinZeo acquisition, and the related
goodwill impairment test. Actual results could differ from those estimates.

Concentration of Credit Risk

Cash and cash equivalents are maintained at financial
institutions and, at times, balances may exceed federally insured limits of $250,000 per institution that pays Federal Deposit Insurance
Corporation (“FDIC”) insurance premiums. The Company has never experienced any losses related to these balances.

The accounts receivable from merchant services are
paid by the financial institutions on a monthly basis. As of December 31, 2024 and 2023, 85% 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

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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