AppTech Payments Corp. Reports 45% Revenue Decline for Fiscal Year 2024

AppTech Payments Corp. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with total revenues of approximately $276,000, down 45% from $504,000 in 2023. The decrease was primarily attributed to the cancellation of a licensing arrangement and a reduction in legacy processing revenue. The company's cost of revenue also fell sharply to $52,000 from $187,000, reflecting a 72% decrease, which was driven by lower transaction volumes. Despite these challenges, AppTech managed to reduce its operating expenses by 50%, from $19.5 million in 2023 to $9.8 million in 2024, largely due to a restructuring plan that cut salaries and stock-based compensation.

In terms of strategic developments, AppTech completed the acquisition of Alliance Partners, LLC, on October 26, 2023, for $2 million, which included cash and the assumption of certain liabilities. This acquisition was aimed at enhancing AppTech's intellectual property and software platform capabilities. The company also entered into licensing agreements with PayToMe.co, although the arrangement with InstaCash was terminated in December 2024. As of the end of 2024, AppTech had 33,278,934 shares of common stock outstanding, a significant increase from 22,251,742 shares in the previous year, reflecting ongoing efforts to raise capital.

Operationally, AppTech reported a customer base of over 150 merchants across various market verticals, indicating a stable engagement level despite the revenue decline. The company has focused on enhancing its FinZeo platform, which offers Payments-as-a-Service (PaaS) and Banking-as-a-Service (BaaS) solutions. The platform's modular architecture allows for customization and integration, catering to the evolving needs of financial institutions and small to medium enterprises. As of December 31, 2024, AppTech employed nine full-time staff members, with additional consultants and contractors utilized as needed.

Looking ahead, AppTech's management expressed confidence in the potential for revenue generation from its new product offerings and strategic partnerships. The company is actively pursuing additional funding options to stabilize its financial condition and is implementing comprehensive expense reduction strategies. However, the management acknowledged that the company's recurring operating losses raise substantial doubt about its ability to continue as a going concern. The outlook remains cautious, with management emphasizing the need for continued innovation and market penetration to drive future growth.