Company: APCXW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006148
Chunk: 9

Company: AppTech Payments Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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 on a straight-line
basis over the estimated useful life of the asset.

Goodwill 

The Company accounts for goodwill in accordance with
ASC 350, Intangibles – Goodwill and Other (“ASC 350”). ASC 350 requires that goodwill and other intangibles with indefinite
lives be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an asset has
decreased below its carrying value. The Company performs a goodwill impairment test annually. 

Impairment of Long-Lived Assets

Long-lived assets are reviewed for impairment when
there is evidence that events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable.

     11 

Research and Development

In accordance with ASC 730, Research and Development
(“R&D”) costs are expensed when incurred. R&D costs include costs of acquiring patents and other unproven technologies,
contractor fees and other costs associated with the development of our core banking platform, contract and other outside services. Total
R&D costs for the six months ended June 30, 2025 and 2024 were approximately $1,690 thousand and $1,276 thousand, respectively.

Per Share Information

Basic net income (loss) per common share is computed
by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the year. Diluted net income
(loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding
during the year, increased by the potentially dilutive common shares that were outstanding during the year. Dilutive securities include
stock options, warrants granted, and convertible preferred stock.

The number of common stock equivalents not included
in diluted income per share was 26,560,392 and 10,702,946 for the six months ended June 30, 2025 and 2024, respectively. The weighted
average number of common stock equivalents is not included in diluted income (loss) per share because the effects are anti-dilutive.

    Schedule of weighted
average number of common stock equivalents 

    June 30, 2025  
    June 30, 2024 
  
    Series A preferred stock 
     1,148  
     1,148 
  
    Warrants 
     21,031,627  
     7,489,960 
  
    Options