Company: APCXW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006148
Chunk: 58

Company: AppTech Payments Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 58
---
 June 30, 2025 compared to June 30, 2024, other expense increased from $1 thousand to other income of $30 
thousand. The biggest driver was the credit balance with the state of Delaware.

Liquidity and Capital Resources

The Company routinely evaluates its immediate working
capital needs and liquidity sources. For the three months ended June 30, 2025 and June 30, 2024, the Company maintained its liquidity
sources primarily through cash and cash equivalents, and proceeds received from the AFIOS Partners investment.

Cash and cash equivalents at June 30, 2025 and December
31, 2024 were $138 thousand and $868 thousand, respectively.

Management's Plan to Address Going Concern Considerations

The Company has experienced recurring operating losses,
primarily due to limited revenues. The Company's current financial conditions and recurring losses raise substantial doubt about its ability
to continue as a going concern.

Management has restructured its operations, reduced
its headcount, and is actively pursuing additional funding options. We are confident that two of its revenue streams will begin generating
revenue in the following twelve months from the issuance date of these financial statements.

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

Cash Flows

The following table presents a summary of cash flows
from operating, investing and financing activities for the following comparative periods ($ in thousands).

    Six Months Ended June 30, 

    2025  
    2024 

    Net cash used in operating activities 
    $(3,080) 
    $(3,901)
  
    Net cash provided by investing activities 
    $–  
    $– 
  
    Net cash provided by financing activities 
    $2,350  
    $2,636 

Cash Flow from Operating Activities

Net cash used in operating activities during the
six months ended June 30, 2025, was approximately $3,080 thousand, which is comprised of (i) our net loss of $4,501
thousand, adjusted for non-cash expenses totaling $1,590 thousand (which includes
adjustments for equity-based compensation, depreciation and amortization), and (ii) decreased by changes in operating assets and liabilities
of approximately $169 thousand.

Net cash used in operating activities during the
six months ended June 30, 2024, was approximately $3,901 thousand, which is comprised of (i) our net loss of $