Company: APCXW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002130
Chunk: 114

Company: AppTech Payments Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 114
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 thousand, and the Company issued 3,333,334
new warrants at $0.70 per share, valued at $2,200 thousand using the Black-Scholes model. There was zero impact to equity as we recorded
both an increase and decrease within Additional Paid-in Capital (APIC) due to the transaction being considered a cost of the capital raise.
The new warrants are exercisable after six months and expire in five and a half years.

Cashless Exercise of Peak One Warrants

Refer to Note 6 - Note Payables.

     44 

AFIOS Partners Warrant Issuance

Refer to Stock Issued as part of an Investment.

NOTE 10 – INCOME TAXES

The
Company’s net deferred tax assets at December 31, 2024 and 2023 was $8,562 thousand and $7,100 thousand, respectively,
which primarily consists of net operating loss carry forwards and various accruals. The Company provided a 100% valuation allowance
against the net deferred tax assets. For the years ended December 31, 2024 and 2023, the valuation allowance increased by
approximately $1,462 thousand and $3,078 thousand, respectively.

The
Company’s effective tax rate is 0%, resulting from the impact of permanent differences and a full valuation allowance applied against
the tax benefit of net operating losses. With no material temporary differences affecting the deferred tax asset, any potential temporary
differences, such as those related to research and development expenses and stock-based compensation, are either immaterial or fully offset
by the valuation allowance. For operations in California, the state corporate tax rate is 8.84%, which is deductible on the federal return
at the applicable federal rate. At December 31, 2024 and 2023, the applicable federal rate used in calculating the deferred tax provision
was 21%.

The Company is subject to tax in the United States
(“U.S.”) and files tax returns in the U.S. Federal jurisdiction and California state jurisdiction. The Company is subject
to U.S. Federal, state and local income tax examinations by tax authorities for all periods starting in 2020. The Company currently is
not under examination by any tax authorities.

NOTE
11 – SUBSEQUENT EVENTS

In January 2025, the Company issued 10,000 shares
of restricted stock to a former investor relations firm, 1,500,000 options to its current board of directors,