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AppTech Payments Reports Positive Second Quarter Financial Results and Strategic Progress
Globe Newswire 14-Aug-2024 12:35 PM
CARLSBAD, Calif., Aug. 14, 2024 (GLOBE NEWSWIRE) -- AppTech Payments Corp. (NASDAQ:APCX) ("AppTech" or the "Company"), a pioneering Fintech company powering frictionless commerce, today announces its financial results for the second quarter ended June 30, 2024, showcasing strategic progress and continued operational efficiency.
Financial Highlights
Revenue Performance Reported revenue of approximately $76 thousand for Q2 2024, reflecting a decrease of $134 thousand in the same period last year due to lower merchant processing revenue. This decrease aligns with the Company's strategic decision to prioritize long-term growth through multiple integrations and the licensing of its innovative product offerings. These initiatives are expected to contribute positively to future quarters, subject to market adoption and customer uptake.
Operating Efficiency Operating expenses were strategically reduced to approximately $3.0 million, a significant improvement from $9.4 million in Q2 2023. This reduction is largely due to the absence of a $6.1 million impairment charge recorded in the prior year and reflects AppTech's disciplined cost management and operational effectiveness.
Substantial Net Loss Improvement The net loss was approximately $(2.9) million for Q2 2024, a dramatic improvement compared to $(9.1) million in Q2 2023, driven by effective cost management and focus on strategic investments that align with long-term growth objectives.
Earnings Per Share Growth Earnings per share improved significantly to approximately $(0.12), compared to $(0.49) in the same period last year. This improvement reflects ongoing efforts to enhance shareholder value through strategic financial stewardship.
Recent Business Highlights
On August 8, 2024, AppTech entered into a Settlement Agreement and Mutual Release with Infinios Solutions (Bahrain) W.L.L. The terms of the Settlement Agreement are confidential. Following the fulfillment of its terms, both parties will jointly file for the dismissal and termination of the arbitration, expected to be completed before the end of September 2024.
In August 2024, the Company successfully piloted and tested multiple portfolios, which are now ready to scale to commercial levels.
In July 2024, AppTech successfully tested and integrated payment systems for multiple airports, building custom back-end payment systems and upgrading the airport's legacy systems. The Company anticipates rolling out these systems to over 440 airports over the next 18 months.
On June 11, 2024, AppTech announced a strategic partnership with FISB Solutions to modernize legacy core banking systems for over 250 community banks. This partnership enables these banks to compete in the digital banking era by providing them with advanced neobank technologies, including automated underwriting, and leveraging local Independent Sales Organizations (ISOs) to foster community engagement and growth. After years of supporting and driving millions of dollars in revenue to Jack Henry, Jerry Federico is exclusively committed to AppTech.
Following a successful pilot program, AppTech officially launched its Banking-as-a-Service platform in May 2024. The platform supports the launch of InstaCash, offering virtual accounts, debit and credit cards, and high-yielding financial products. This initiative aims to democratize banking by providing small and medium-sized enterprises with access to financial products typically reserved for large corporations.
In May 2024, strategic partner PayToMe.co was honored with six prestigious Stevie® Awards, including gold, silver, and bronze awards. These accolades underscore the transformative power of AppTech's collaborative approach to technological innovation and our shared vision of driving long-term shareholder value.
In May 2024, the Company began integrating multiple credit union backends, providing the necessary support to offer mobile to mobile payment systems, ACH capabilities, virtual card issuance, ledger management, and fraud detection. The Company plans to roll out these services to 4,000 credit union locations over the next 12 months.
After acquiring Finzeo last year, AppTech has been focused in Q1 and Q2 2024 on consolidating, integrating, and streamlining operations to support the scaling of top-line revenue, which includes the projects mentioned above.
"We continue to execute our strategy to enhance our technology platform and expand our market presence," stated Luke D'Angelo, Chairman and CEO of AppTech Payments Corp. "The second quarter of 2024 was a period of significant progress in our partnerships and technology innovation. We remain focused on leveraging our strong platform to drive future growth and deliver value to our shareholders."
About AppTech Payments Corp.
AppTech Payments Corp. (NASDAQ:APCX) provides digital financial services for financial institutions, corporations, small and midsized enterprises ("SMEs"), and consumers through the Company's scalable cloud-based platform architecture and infrastructure, coupled with our Specialty Payments development and delivery model. AppTech maintains exclusive licensing and partnership agreements in addition to a full suite of patented technology capabilities. For more information, please visit apptechcorp.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that are inherently subject to risks and uncertainties. Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate, believe, estimate, expect, forecast, intend, may, plan, project, predict, should, will" and similar expressions as they relate to AppTech are intended to identify such forward-looking statements. These risks and uncertainties include but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in methods of marketing, delays in manufacturing or distribution, changes in customer order patterns, changes in customer offering mix, and various other factors beyond the Company's control. Actual events or results may differ materially from those described in this press release due to any of these factors. AppTech is under no obligation to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
