Company: APCXW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002130
Chunk: 267

Company: AppTech Payments Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 267
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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. As of
December 31, 2024 and 2023, the Company recognized $94 thousand and $156 thousand in licensing revenue, respectively.

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

Business Combination

ASC 805, Business Combinations (“ASC 805”),
applies the acquisition method of accounting for business combinations to all acquisitions where the acquirer gains a controlling interest,
regardless of whether consideration was exchanged. ASC 805 establishes principles and requirements for how the acquirer: a) recognizes
and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in
the acquiree; b) recognizes and measures the goodwill acquired in the business combination or a gain from a bargain purchase; and c) determines
what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business
combination. Accounting for acquisitions requires the Company to recognize, separately from goodwill, the assets acquired, and the liabilities
assumed at their acquisition-date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred
and the net of the acquisition-date fair values of the assets acquired and the liabilities assumed. While the Company provided its best
estimates and assumptions when accurately valuing assets acquired and liabilities assumed at the acquisition date, the estimates are inherently
uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date,
the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill.

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Intangible Assets and Intellectual Property

Intellectual Property

The Company amortizes