Company: APCXW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002130
Chunk: 133

Company: AppTech Payments Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 133
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 processing revenue.

Cost of Revenue

Cost of revenue was approximately $52 thousand for
the year ended December 31, 2024, compared to $187 thousand for the year ended December 31, 2023, representing a decrease of
72%. The decrease was principally driven by lower transaction volume.

 14 

General and Administrative Expenses

General
and administrative expenses decreased 21% to approximately $7,794
thousand for the year ended December 31, 2024, from $9,873 thousand in 2023. The reduction was mainly due to lower salaries following
the Company’s restructuring plan and a $1,240    thousand
decrease in stock-based compensation for 2024.

Research and Development Expenses

Research and development expenses were
approximately $1,977 thousand for the year ended December 31, 2024, compared to $3,498 thousand for the year ended December 31,
2023, representing a decrease of 43%. The decrease was primarily due to less stock-based compensation and the capitalization of
specific software development costs.

Other Income (Expenses) 

Interest Expense, net

Interest
expense, net was approximately $646 thousand and $52 thousand for the years ended December 31, 2024 and December 31, 2023, respectively,
representing an increase of $594 thousand. The increase was primarily due to the amortization of the debt discount. 

Change in Fair Value of Derivative Liability

Change in fair value of derivative liability was approximately
$0 for the year ended December 31, 2024, compared to $27 thousand for the year ended December 31, 2023, representing a decrease
of 100%. The decrease was primarily due to the Company's settlement of the notes and warrants that contained the embedded derivative liabilities
in April 2023.

Other income (expenses)

Other income was approximately $1,260 thousand for
the year ended December 31, 2024, compared to approximately $698 thousand for the year ended December 31, 2023, representing
an increase of $562 thousand or 81%. The increase was primarily driven by a $1,245 thousand gain from extinguishment of debt related to
2024, less the $430 thousand gain from the cancellation of stock repurchase liabilities and gain of $250 thousand from extinguishment
of debt related to 2023.

Liquidity and Capital Resources

The Company routinely evaluates its immediate working