Company: APCXW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002130
Chunk: 431

Company: AppTech Payments Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 431
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 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 to acquire 100% of Alliance Partners, LLC, a Nevada based software development limited liability company (“Alliance Partners”,
“FinZeo”). As consideration for the purchase, the Company agreed to pay the Seller total consideration of $2,000 thousand
in cash and assume certain short-term and long-term liabilities of Alliance Partners. The primary reason for the purchase was to acquire
FinZeo's intellectual property, personnel, and software platform.

The Company closed the Transaction on October 26,
2023.

On October 31, 2023, the Company issued 1 million
shares of its common stock to an entity owned by the Seller. In exchange for the shares, the Seller waived, cancelled, and forgave the
long-term debt of FinZeo.

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Liquidity and Going Concern Considerations

The Company has experienced recurring operating losses, primarily
due to limited revenues. The Company's current financial conditions and recurring losses raise substantial doubt about its ability to
continue as a going concern.

In late 2024, we reorganized senior leadership and initiated
actions to reduce indebtedness to improve the current financial condition. In addition, we are actively pursuing additional funding options
and are confident that our revenue streams will begin generating cash, although no assurances can be made.

Management continues to maintain adequate working capital
and adhere to prudent financial forecasting.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying consolidated audited financial statements
have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Certain prior period amounts have been reclassified
to conform to the current period