Company: APCXW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001683168-25-008326
Chunk: 35

Company: AppTech Payments Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part II, Item 8
Chunk 35
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on the estimated period over which the economic benefits of the intangible assets are expected to be consumed. Typically, the Company
amortizes its intellectual property, including patents and other identifiable intangible assets, on a straight-line basis. The amortization
periods generally range from three years to fifteen years, depending on the nature of the asset and its expected useful life.

Capitalized Software Development Cost

The Company capitalizes certain costs related
to the development of its digital payment and banking platform, including employee compensation and consulting fees for third-party developers,
only when it is probable that the development will result in new or additional functionality. Costs incurred during the preliminary project
planning phase and post-implementation phase are expensed as incurred. The capitalized software development costs are amortized 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.

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 nine months ended September 30, 2025 and 2024 were approximately $2,015 thousand and $1,278 thousand, respectively.

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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