Company: APCXW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002130
Chunk: 208

Company: AppTech Payments Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1C
Chunk 208
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 THE CONSOLIDATED FINANCIAL STATEMENTS

($ in thousands, except per share data)

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

AppTech Payments Corp. (“AppTech” or the
“Company”), a Delaware corporation, is a Fintech Company headquartered in Carlsbad, California. AppTech utilizes innovative
payment processing and digital banking technologies to complement its core merchant services capabilities. The Company’s proprietary
software will provide progressive and adaptable products that are available through a suite of synergistic offerings directly to merchants,
banking institutions, and business enterprises.

AppTech has a highly secure digital payments platform
that we acquired and are further developing digital banking products to power commerce experiences for clients and their customers. Based
upon industry standards for payment and banking protocols, we will offer standalone products and fully integrated solutions that deliver
innovative, unparalleled payments, banking, and financial services experiences. Our processing technologies can be taken off-the-shelf
or tapped into via our RESTful APIs to build fully branded and customizable experiences while supporting tokenized, multi-channel, and
multi-method transactions.

The Company successfully completed its uplisting onto
Nasdaq Capital Market (“NASDAQ”) on January 7, 2022. AppTech trades under the symbol “APCX” and its warrants trade
under the symbol “APCXW”.

In April 2022, the Company acquired HotHand Inc. (“HotHand”),
a patent-holding company. These patents are focused on the delivery, purchase, or request of any products or services within specific
geolocation and time parameters, provided by a consumer’s cell phone anywhere in the United States, and protect all mobile phone
advertising, including in a store’s mobile application. The Company is actively pursuing licensing revenue associated with these
patents.

In June 2023, the Company entered into licensing agreements
with InstaCash and PayToMe.co. The licensing arrangement with InstaCash was terminated in December 2024.

The shares related to the 7.5% preferred share equity
stake in PayToMe.co have not been issued as of the date of this filing. Additionally, PayToMe.co is a related party to AppTech. Senior
members of the Company sit on PayToMe.co's board of directors and AppTech's former Chief Financial Officer is married to its founder and
Chief Executive Officer.

Purchase of Alliance Partners, LLC

On October 13, 2023, the Company entered into a purchase
agreement