Company: APCXW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002130
Chunk: 1106

Company: AppTech Payments Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 16
Chunk 1106
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. 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 those estimates.

Concentration of Credit Risk

Cash and cash equivalents are maintained at financial
institutions and, at times, balances may exceed federally insured limits of $250,000 per institution that pays Federal Deposit Insurance
Corporation (“FDIC”) insurance premiums. The Company has never experienced any losses related to these balances.

The accounts receivable from merchant services are
paid by the financial institutions on a monthly basis. As of December 31, 2024 and 2023, 85% and 80% of the accounts receivable balance
was generated from three customers in 2024 and two customers in 2023.

For the year ended December 31, 2024, three
customers accounted for 34%,
22% and 15% of our revenues compared to 49%
and 31% for the top two customers for the year ended December 31, 2023. The loss of the customers would have a significant
impact on the Company's financials

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Cash and Cash Equivalents

The Company's cash consists of cash on deposit at
its bank. Cash equivalents, if applicable, represents highly liquid investments with maturities of three months or less at the date of
purchase. Management determines the appropriate classification.

Accounts Receivable and Allowance for Doubtful
Accounts

Accounts receivable are recorded net of an allowance
for doubtful accounts, when applicable. The Company regularly monitors receivables for recoverability. Historically, the Company has not
written off any accounts receivable balances and does not maintain an allowance for doubtful accounts.

Revenue Recognition

The Company accounts for revenue under Accounting
Standards Codification (“ASC”) 606 Revenue from Contracts with Customers, which provides a single comprehensive model for
entities to use in accounting for revenue arising from contracts with customers.

Licensing Revenue

The
Company is actively pursuing strategic partnership agreements that license our technology for a fee. The licensing