Company: APCXW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002130
Chunk: 680

Company: AppTech Payments Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9
Chunk 680
---
 future payments by using an estimated incremental borrowing rate, which
approximates the rate at which the Company would borrow on a secured basis and over a similar term, and recognizes lease expense for
operating leases on a straight-line basis over the lease term. Right-of-use assets represent the Company’s right to control
the use of an identified asset for the lease term and lease liabilities represent the Company’s obligation to make lease
payments arising from the lease. The Company uses the incremental borrowing rate on the commencement date in determining the present
value of the lease payments.

The Company has lease agreements which include lease
and non-lease components, which the Company has elected to account for as a single lease component for all classes of underlying assets.
Lease expense for variable lease components are recognized when the obligation is probable.

The lease term for all of the Company’s leases
includes the non-cancellable period of the lease plus any additional periods covered by either a Company option to extend (or not to terminate)
the lease that the Company is reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the
lessor. Options for lease renewals have been excluded from the lease term (and lease liability) for the majority of the Company’s
leases as the reasonably certain threshold is not met.

Lease payments included in the measurement of the
lease liability are comprised of fixed payments, variable payments that depend on index or rate, and amounts probable to be payable under
the exercise of the Company option to purchase the underlying asset if reasonably certain. Variable lease payments are presented as operating
expenses in the Company’s statement of operations in the same line as expense arising from fixed lease payments. As of December 31,
2024 and 2023, management determined that there were no variable lease costs.

Income Taxes

The Company recognizes deferred tax assets and liabilities
for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. Under
this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets
and liabilities using enacted tax rates in effect for the fiscal year in which the differences are expected to reverse. Deferred tax assets
are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized.
Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which
those temporary differences are expected to be recovered or settled. The