UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549



FORM 10-Q/A

(Amendment No. 1)



(Mark One)

|x QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
|------------------------------------------------------------------------------------
|For the quarterly period ended: December 31, 2013                                   
|                                                                                    
|                                                                                    
| ̈ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|For the transition period from N/A to N/A                                           
|                                                                                    



Commission file number: 000-27145



THE SPENDSMART PAYMENTS COMPANY

(Name of small business issuer in its charter)



|Colorado                                                 |  |  | 33-0756798                          
|-------------------------------------------------------- |  |  | ------------------------------------
|(State or jurisdiction of incorporation or organization) |  |  | (I.R.S. Employer Identification No.)



|2680 Berkshire Parkway, Suite 130            |  |  |           
|-------------------------------------------- |  |  | ----------
|Des Moines Iowa                              |  |  | 50325     
|(Address and of principal executive offices) |  |  | (Zip Code)





(858) 677-0080

(Issuer’s telephone number, including
area code)



Indicate
by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934
during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.  Yes  x    No  o



Indicate
by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such files).    Yes  x    No  o



Indicate
by check mark whether registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting
company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting
company” in Rule 12b-2 of the Exchange Act.





|Large accelerated filer  ̈ | Accelerated
        filer  ̈                   |                            
|------------------------- | --------------------------------------------- | ---------------------------
|Non-accelerated filer  ̈   | (Do not check if a smaller reporting company) | Smaller reporting company x



Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  o   No  x



At March 31, 2014 15,624,062 shares outstanding of the issuer’s
common stock, par value $0.001 per share.













Explanatory
Note



The
sole purpose of this Amendment to The SpendSmart Payments Company’s Quarterly Report on Form 10-Q for the fiscal quarter
ended December 31, 2013, filed with the Securities and Exchange Commission on February 14, 2014 (the “Original Report”),
is to amend our disclosure in Part I, Item 4 “Controls and Procedures” to clarify and include the conclusions of our
principal executive and principal financial officers regarding the effectiveness of our disclosure controls and procedures as of
the fiscal quarter ended December 31, 2013.



We
have made no attempt in this Amendment to modify or update the disclosures presented in the Original Report other than as noted
in the previous paragraph. Also, this Amendment does not reflect events occurring after the filing of the Original Report. Accordingly,
this Amendment should be read in conjunction with the Original Report and our other filings with the SEC subsequent to the filing
of the Original Report.



Item 4 – Controls and Procedures



Disclosure Controls and Procedures



We maintain disclosure controls and procedures
and internal controls that are designed to provide reasonable assurance that information required to be disclosed in our Exchange
Act reports is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s
rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer
and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating
the disclosure controls and procedures and internal controls, management recognizes that any controls and procedures, no matter
how well designed and operated, can provide only reasonable, and not absolute, assurance of achieving the desired control objectives. In
reaching a reasonable level of assurance, management necessarily was required to apply its judgment in evaluating the cost benefit
relationship of possible controls and procedures and internal controls.



As required by the Securities and Exchange
Commission Rule 13a-15(e) and Rule 15d-15(e), we carried out an evaluation, under the supervision of and with the participation
of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation
of our disclosure controls and procedures as of the end of the period covered by this report. On August 19, 2013, after consulting
with the Company’s Audit Committee, management concluded it had incorrectly calculated its historical volatility for the
fiscal years ended September 30, 2012 and 2011. The error also impacted the three and nine months ended June 30, 2012 interim periods.
The error specifically related to an excel spreadsheet calculation whereby it was calculating a volatility that was significantly
higher than it should have been. The historical volatility is a key assumption and driver in determining the valuation of the company’s
stock based compensation and derivative liabilities. The aforementioned errors constitute a material weakness over financial reporting
and therefore the Company did not maintain effective internal control over financial reporting as of September 30, 2012. The control
environment that existed at September 30, 2012 continued to exist through December 31, 2013. Based on the foregoing, our Chief
Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective at the reasonable
assurance level as of December 31, 2013.



Changes in Internal Controls over Financial Reporting



During the period ended December 31, 2013, we concluded that
we did not maintain effective control over financial reporting related to the classification and reporting of certain financial
instruments. In order to remediate such condition, we undertook and put in place the following actions.



| | · | In October 2013, we hired a new Chief Financial Officer through Chord Advisors to lead our complex accounting and finance initiatives.
| | - | --------------------------------------------------------------------------------------------------------------------------------------



| | · | In October 2012, we hired a Controller to assist our Chief Financial Officer with our Company’s accounting and financial tasks.
| | - | -------------------------------------------------------------------------------------------------------------------------------



| | · | We have engaged a third party to administer our equity based compensation plan.
| | - | -------------------------------------------------------------------------------













Item 6 – Exhibits



|Exhibit No. | Description                                                                                                          
|----------- | ---------------------------------------------------------------------------------------------------------------------
|31.1*       | Certification pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, by Chief Executive Officer
|31.2*       | Certification pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, by Chief Financial Officer
|32.1*       | Certification pursuant to 18 U.S.C. §1350 by Chief Executive Officer                                                 
|32.2*       | Certification pursuant to 18 U.S.C. §1350 by Chief Financial Officer                                                 
|*           | Filed as an exhibit
to this report                                                                                   





SIGNATURES



In accordance with
the requirements of the Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.





| | The SpendSmart Payments Company, a Colorado corporation
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| | By:                                                    
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| | April 11, 2014                                         
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| | By:                                                    
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| | April 11, 2014