Company: APCXW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001683168-25-003561
Chunk: 8

Company: AppTech Payments Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 8
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 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 recorded as cost of revenues.

     10 

Intangible
Assets and Intellectual Property

Intellectual Property

The Company amortizes intellectual property based
on the estimated period over which the economic benefits of the intangible assets are expected to be consumed. Typically, the Company
amortizes its intellectual property, including patents and other identifiable intangible assets, on a straight-line basis. The amortization
periods generally range from three years to fifteen years, depending on the nature of the asset and its expected useful life.

Capitalized Software Development Cost

The Company capitalizes certain costs related
to the development of its digital payment and banking platform, including employee compensation and consulting fees for third-party developers,
only when it is probable that the development will result in new or additional functionality. Costs incurred during the preliminary project
planning phase and post-implementation phase are expensed as incurred. The capitalized software development costs are amortized on a straight-line
basis over the estimated useful life of the asset.

Goodwill 

The Company accounts for goodwill in accordance
with ASC 350, Intangibles – Goodwill and Other (“ASC 350”). ASC 350 requires that goodwill and other intangibles with
indefinite lives be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an
asset has decreased below its carrying value. The Company performs a goodwill impairment test annually. 

Impairment of Long-Lived Assets

Long-lived assets are reviewed for impairment
when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be
recoverable.

Research and Development

In accordance with ASC 730, Research and Development
(“R&D”) costs are expensed when incurred. R&D costs include costs of acquiring patents and other unproven technologies,
contractor fees and other costs associated with the development of the SMS short code texting platform, contract and other outside services.
Total R&D costs for the three months ended March 31, 2025 and 2024 were approximately $780 thousand and $644 thousand, respectively.

Per Share Information

Basic net income (loss) per common share is computed
by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the year. Diluted net income