AppTech Payments (US:APCX)2024-11-14 11:01Revenue Performance - Revenue for the three months ended September 30, 2024, was approximately $43 thousand, a decrease of 69% compared to $140 thousand for the same period in 2023, primarily due to $34 thousand lower merchant processing revenue and $62 thousand lower licensing fees [162]. - Revenue for the nine months ended September 30, 2024, was approximately $224 thousand, a decrease of 38% compared to $363 thousand in 2023, primarily due to $161 thousand lower merchant processing revenue [163]. Compliance and Regulatory Issues - The company has until November 5, 2024, to regain compliance with Nasdaq's minimum bid price requirement of $1.00 after receiving a deficiency notification on May 9, 2024 [151]. - AppTech's common stock and warrants continue to trade on The Nasdaq Capital Market under the symbols "APCX" and "APCXW" despite recent compliance issues [153]. - The company has submitted a compliance plan to Nasdaq to regain and maintain compliance with listing requirements [154]. Financial Activities and Funding - A private placement offering closed on July 11, 2024, raising $1,100,000 through a 6% convertible debenture and a warrant to purchase up to 750,000 shares at an exercise price of $1.16 [145][146]. - Management is actively pursuing additional funding options and is confident in generating revenue within the next twelve months, although no assurances can be made [180]. - Net cash provided by financing activities for the nine months ended September 30, 2024, was approximately $4.4 million, an increase from $3.4 million in 2023, primarily from public offerings and convertible notes [186]. Expenses and Financial Health - Cost of revenue for the nine months ended September 30, 2024, was approximately $49 thousand, representing a decrease of 69% from $159 thousand in 2023, driven by a reduction in residual payouts [164]. - General and administrative expenses for the nine months ended September 30, 2024, were approximately $6.7 million, a decrease of 6% from $7.1 million in 2023, primarily due to lower stock-based compensation [166]. - Research and development expenses for the nine months ended September 30, 2024, were approximately $1.3 million, down from $2.8 million in 2023, due to lower stock-based compensation and reclassification of expenses [168]. - Impairment of intangible assets was approximately $0 for the nine months ended September 30, 2024, compared to $6.1 million in 2023, as the company wrote off the impaired asset related to Infinios [170]. - Net cash used in operating activities for the nine months ended September 30, 2024, was approximately $5.0 million, compared to $6.5 million in 2023, reflecting a reduction in net loss and adjustments for non-cash expenses [182]. - As of September 30, 2024, the company had cash and cash equivalents of approximately $104 thousand and working capital of negative $4.8 million [176]. - The company has experienced recurring operating losses, raising substantial doubt about its ability to continue as a going concern [179]. Product and Service Offerings - AppTech's FinZeo™ platform offers Payments-as-a-Service (PaaS) and Banking-as-a-Service (BaaS), enhancing digital payment and banking solutions for clients [131][133]. - The company aims to accelerate digital transformation through its automated underwriting portal, which expedites business onboarding [133]. - AppTech's flexible architecture allows for white labeling, providing personalized payment and banking experiences for merchants and partners [136]. Equity and Warrant Transactions - AppTech sold warrants to Armistice Capital Master Fund Ltd. for up to 1,666,667 shares at an exercise price of $4.64 per share in February 2023 and $2.74 per share in October 2023 [139][140]. - The company is prohibited from entering into subsequent equity sales for a 45-day period following the Warrant Inducement Agreement with Armistice, which involved a reduced exercise price of $0.70 per share [141].