Company: APCXW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002130
Chunk: 306

Company: AppTech Payments Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 306
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to note that actual results could differ from these estimates.

Critical accounting policies are those that we consider
the most critical to understanding our financial condition and results of operations. The accounting policies we believe to be most critical
to understanding our financial condition and results of operations are discussed below. As of December 31, 2024, there have been
no significant changes to our critical accounting estimates nor to our recently issued accounting pronouncements, except as described
in Note 2 to our consolidated financial statements.

Business Combination

Recognition and Measurement: Companies must
recognize the assets acquired, liabilities assumed, and any non-controlling interest in the acquiree at their fair value on the acquisition
date.

Goodwill: Arises when the consideration transferred
in a business combination exceeds the fair value of the net identifiable assets acquired. It represents future economic benefits arising
from assets that are not individually identified and separately recognized.

Intangible Assets: Identifiable intangible
assets, distinguishable either by separability from the acquired entity or through contractual or other legal rights, are valued and reported
independently from goodwill. These assets include, but are not limited to, trademarks, customer relationships, proprietary technology,
and patents. The fair value of these intangible assets is determined at the time of acquisition and is subject to subsequent impairment
tests.

The fair value of identifiable intangible assets is
estimated using income, market, or cost approach methods. The income approach, often applied through the discounted cash flow (DCF) method,
involves projecting future cash flows attributable to the asset and discounting them to present value using a discount rate that reflects
the risk associated with those cash flows. The estimation of fair value is inherently uncertain due to the assumptions and judgments involved
in projecting future cash flows, determining appropriate discount rates, and estimating the useful life of each asset.

Over the reporting period, changes in market conditions,
technological advancements, or strategic shifts in the business may necessitate revisions to the assumptions used in the valuation of
identifiable intangible assets. Management closely monitors these factors and will adjust the valuation of intangible assets as appropriate,
reflecting the impact of any such changes in our financial statements.

Contingent Consideration: Any contingent consideration,
such as earn-outs, is measured at fair value at the acquisition date and can be adjusted in subsequent periods if the fair value changes.

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Goodwill Impairment

Goodwill Impairment Testing: The process requires
an annual test for impairment of goodwill, and more