Company: APCXW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002130
Chunk: 980

Company: AppTech Payments Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 13
Chunk 980
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 October 13, 2023, the Company entered into a purchase
agreement to acquire 100% of Alliance Partners, LLC, a Nevada based software development limited liability company (“Alliance Partners”,
“FinZeo”). As consideration for the purchase, the Company agreed to pay the Seller total consideration of $2,000 thousand
in cash and assume certain short-term and long-term liabilities of Alliance Partners. The primary reason for the purchase was to acquire
FinZeo's intellectual property, personnel, and software platform.

The Company closed the Transaction on October 26,
2023.

On October 31, 2023, the Company issued 1 million
shares of its common stock to an entity owned by the Seller. In exchange for the shares, the Seller waived, cancelled, and forgave the
long-term debt of FinZeo.

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Liquidity and 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.

In late 2024, we reorganized senior leadership and initiated
actions to reduce indebtedness to improve the current financial condition. 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