Company: APCXW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001683168-25-008326
Chunk: 34

Company: AppTech Payments Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part II, Item 8
Chunk 34
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 results
to be expected for the year ending December 31, 2025 or for any future interim periods.

Basis of Consolidation

The consolidated unaudited financial statements
include the accounts of AppTech, and wholly owned subsidiaries of which the Company is the primary beneficiary. 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.

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 September 30, 2025, 53% of the accounts receivable balance was generated
from two customers. As of December 31, 2024, the top three customers accounted for 88% of total accounts receivable.

For the nine months ended September 30, 2025,
68% of the Company’s revenue was generated from two customers. For the nine months ended September 30, 2024, the top three customers
represented 77% of total revenues. The loss of a top customer would have a significant impact on the Company's financials.

     10 

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.

Merchant Processing Services

The Company provides merchant processing solutions
for credit card and ACH transactions. We act as an intermediary between merchants, who initiate transactions and banks that process them.
We collect either a flat fee, a fee for each transaction, and or a fee calculated as a percentage 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.

Intangible Assets and Intellectual Property

Intellectual Property

The Company amortizes intellectual property based