Company: APCXW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001683168-25-003561
Chunk: 42

Company: AppTech Payments Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part II, Item 8
Chunk 42
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 ended March 31, 2024 was approximately $2,164 thousand, which is comprised of (i) our net loss of $3,037 thousand, adjusted
for non-cash expenses totaling $834 thousand (which includes adjustments for equity-based compensation, depreciation and amortization),
and (ii) increased by changes in operating assets and liabilities of approximately $39 thousand.

Cash Flow from Investing Activities

There was no cash used by investing activities
during the three months ended March 31, 2025 and 2024.

Cash Flow from Financing Activities

During
the three months ended March 31, 2025, net cash provided by financing activities was $1,350 thousand,
which consists of proceeds received on the outstanding equity receivable at year-end.

Net cash provided by financing activities during
the year ended March 31, 2024 was approximately $2,436 thousand, which principally consists of net proceeds through the issuance
of common shares and warrants in our public offering.

Critical Accounting Policies and Estimates

Our discussion and analysis of our financial condition
and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with GAAP. The
preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of
assets, liabilities, revenues and expenses. Significant estimates include those related to the valuation of goodwill impairment and intangible
assets, and equity-based compensation. These estimates are based on historical experience and assumptions believed to be reasonable under
current conditions. It’s important to note that actual results could differ from these estimates.

Critical accounting policies are those that we
consider the most critical to understanding our financial condition and results of operations. The accounting policies we believe to be
most critical to understanding our financial condition and results of operations are discussed below. As of March 31, 2025, there
have been no significant changes to our critical accounting estimates nor to our recently issued accounting pronouncements, except as
described in Note 2 to our consolidated financial statements.

Equity-Based Compensation: We estimate
the fair value of stock options granted using the Black-Scholes option pricing model, which requires input of subjective assumptions.
The model inputs include expected stock price volatility, expected term, risk-free interest rate, and dividend yield. The assumptions
about future stock price volatility and the option’s expected term involve significant judgments based on historical data and future
expectations. The reported equity-based compensation expense is sensitive to changes in the volatility assumption. An increase