Company: APCXW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006148
Chunk: 56

Company: AppTech Payments Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 56
---
 delisted and transitioned to trading on the OTCQB market. Management remains
committed to enhancing shareholder value and intends to pursue an uplisting to a national exchange before the end of the fiscal year.

Financial Operations Overview

The following discussion sets forth certain components
of our statements of operations as well as factors that impact those items (in thousands, except per share data).

Revenues

Our Revenues. We derive our revenue by providing
financial processing services to businesses.

Expenses

Cost of Revenue. Includes costs directly attributable
to processing and other services the Company provides. These also include related costs such as residual payments to our business development
partners, which are based on a percentage of the net revenue generated from client referrals.

General and administrative. Include salaries,
professional services, software costs, regulatory expenses, stock-based compensation, rent, utilities, and other operating costs.

Research and development. Includes the internal
and outsourced services costs incurred to maintain and further develop the FinZeo platform, and the development of additional technology
needed to pursue new product offerings.

Other income (expenses). Consists of interest
on outstanding indebtedness, and the gain/loss on debt extinguishment.

Results of Operations

This section includes a summary of our historical
results of operations, followed by detailed comparisons of our results for the three and six months ended June 30, 2025 and 2024,
respectively.

 21 

Revenue

Revenue was approximately $291 thousand for the
three months ended June 30, 2025, compared to $76 thousand for the three months ended June 30, 2024, representing an increase of 283%.
For the six months ended June 30, 2025 and 2024, revenue was approximately $508 thousand and $181 thousand representing an increase
of 181%. The increase was principally driven by an increase of our ISO and lending revenue.

Cost of Revenue

Cost of revenue was approximately $107 thousand
for the three months ended June 30, 2025, compared to $14 thousand for the three months ended June 30, 2024, representing an increase
of $93. For the six months ended June 30, 2025 and 2024, cost of revenue was approximately $235 thousand and $25 thousand, representing
an increase of $210 thousand. The increase was driven by the revenue share with our ISO partners.

General and Administrative Expenses

General and administrative expenses were approximately
$1,155 thousand for the three