Company: APCXW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001683168-25-008326
Chunk: 24

Company: AppTech Payments Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 thousand. The increase was due to higher third-party development costs related to maintaining and enhancing the FinZeo
platform.

Research and development expenses were approximately
$2,015 thousand and $1,278 thousand for the nine months ended September 30, 2025 and 2024, respectively. The increase was driven
by higher third-party costs related to maintaining and enhancing the platform.

Interest Income (Expense)

Interest expense was approximately $17 thousand
for the three months ended September 30, 2025, compared to an expense of $18 thousand for the three months ended September 30, 2024, representing
an increase of $1 thousand. For the nine months ended September 30, 2025 and 2024, interest expense decreased to $24 thousand from $53
thousand. The change was due to the interest related to the assigned agreement with our banking partners.

Gain on Debt Extinguishment 

Gain on debt extinguishment was approximately
$13 thousand for the nine months ended September 30, 2025, compared to $0 for the nine months ended September 30, 2024, representing an
increase of $13 thousand. The increase was driven by various accrued expenses written off.

 21 

Debt Discount Amortization

The amortization on debt discounts was $50 thousand
for the three and nine months ended September 30, 2025, compared to $151 thousand for the three and nine months ended September 30, 2024.
The changes were due to the amortization periods of each convertible note and the discounted amount.

Other Income (Expenses)

Other expense was $93 thousand for the three months
ended September 30, 2025, compared to an expense of $6 thousand for the three months ended September 30, 2024. The increase of $87 thousand
was primarily driven by the expensing of a security deposit  related to a proposed financing event.

For the nine months ended September 30, 2025
compared to September 30, 2024, other expense decreased from $63 thousand to  $8 thousand. The biggest driver was
security deposit write off. 

Liquidity and Capital Resources

The Company routinely evaluates its immediate
working capital needs and liquidity sources. For the three months ended September 30, 2025 and September 30, 2024, the Company maintained
its liquidity sources primarily through cash and cash equivalents, and proceeds received from the AFIOS