Company: APCXW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001683168-25-008326
Chunk: 10

Company: AppTech Payments Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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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 our core banking platform, contract and other outside services. Total
R&D costs for the nine months ended September 30, 2025 and 2024 were approximately $2,015 thousand and $1,278 thousand, respectively.

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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
(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, increased by the potentially dilutive common shares that were outstanding during the year. Dilutive securities include
stock options, warrants granted, and convertible preferred stock.

The number of common stock equivalents not included
in diluted income per share was 27,685,129 and 14,360,863 for the nine months ended September 30, 2025 and 2024, respectively. The weighted
average number of common stock equivalents is not included in diluted income (loss) per share because the effects are anti-dilutive.

    Schedule of weighted
average number of common stock equivalents 

    September 30, 2025  
    September 30, 2024 
  
    Series A preferred stock 
     1,148  
     1,148 
  
    Warrants 
     22,281,627  
     9,156,627 
  
    Options 
     5,402,354  
     5,203,088 
  
    Total 
     27,685,129  
     14,360,863 

Stock-Based Compensation

Stock options are valued using the estimated grant-date
fair value method of accounting in accordance with ASC Topic 718, Compensation – Stock Compensation. Fair value is determined based
on the Black-Scholes Model using inputs reflecting our estimates of expected volatility, term and future dividends. We recognize forfeitures
as they occur. The Company has several consulting agreements that have share-based payment awards based on performance. These agreements
typically require the Company to issue common stock to the consultants on a monthly basis. The Company records the fair market value of
the common stock issuable at each month end when the performance is complete