Form 10-Q - Quarterly report [Sections 13 or 15(d)]

Share Name	Share Symbol	Market	Type
AppSoft Technologies Inc (PK)	USOTC:ASFT	OTCMarkets	Common Stock

	Price Change	% Change	Share Price	Bid Price	Offer Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	0.00	0.00%	0.252	0.252	0.35				0.00	12:40:04

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: September 30, 2023

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to _________

Commission file number: 333-206764

APPSOFT TECHNOLOGIES, INC.

(Name of Small Business Issuer in its charter)

Nevada

47-3427919

(State or other jurisdiction of

Identification No.)

(I.R.S. Employer incorporation

or organization)

1225 Franklin Avenue, Suite 325, Garden City, NY 11530

Address of registrant's principal executive offices

(516) 224-7717

Issuer’s telephone number

______________________________________________________

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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 ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months. ☒ Yes ☐ No

Indicate by check mark whether the 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	☒	Smaller reporting company	☒
Emerging Growth Company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

At November 20, 2023, there were 4,504,103 shares of common stock outstanding.

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

AppSoft Technologies, Inc.

Balance Sheets

	As of			As of
	September 30, 2023 (Unaudited)			December 31, 2022 (Audited)
CURRENT ASSETS
Cash	$	15		$	5
TOTAL CURRENT ASSETS		15			5

TOTAL ASSETS	$	15		$	5

LIABILITIES
CURRENT LIABILITIES
Accounts Payable and Accruals		3,796			21,124
Accrued Interest		25,588			20,097
TOTAL CURRENT LIABILITIES		29,384			41,221

Note Payable		386,543			328,716
TOTAL LIABILITIES		415,927			369,937

COMMITMENTS AND CONTINGENCIES	$	-		$	-

STOCKHOLDER'S EQUITY
Series A Cumulative, Convertible Preferred stock ($0.0001 par value; 10,000,000 shares authorized; 1,936,000 and 1,936,000 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively)	$	193		$	193
Common stock ($0.0001 par value; 1,000,000,000 shares authorized; 4,504,103 and 4,504,103 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively)		449			449
Additional Paid in Capital		533,858			533,858
Accumulated Deficit		(950,412	)		(904,432	)
TOTAL STOCKHOLDER'S EQUITY (DEFICIT)		(415,912	)		(369,932	)
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY/(DEFICIT)	$	15		$	5

The accompanying notes are an integral part of these financial statements.

AppSoft Technologies, Inc.

Statements of Operations

For the three months ended

September 30,

For the nine months ended

September 30,

2023 (Unaudited)

2022 (Unaudited)

2023 (Unaudited)

2022 (Unaudited)

Sales

Total Revenue

EXPENSES:

Selling, General and Administrative

827

1,047

6,614

8,933

Interest Expense

1,918

1,606

5,491

4,712

Outside Services

855

2,720

1,629

Professional Fees

675

3,860

39,055

8,550

Total Expense

4,275

6,513

53,880

23,824

Loss from operations

(4,275

)

(6,513

)

(53,880

)

(23,824

)

Other Income/Loss)

Income on Extinguishment of Debt

7,900

Provision for Income Taxes

NET LOSS

(4,275

)

(6,513

)

(45,980

)

(23,824

)

Weighted average common shares outstanding, basic and fully diluted

4,504,103

Basic and fully diluted net loss per common share:

(0.00

)

(0.00

)

(0.01

)

(0.01

)

The accompanying notes are an integral part of these financial statements.

AppSoft Technologies, Inc.

Statements of Cash Flows

	For nine months ended September 30,
	2023 (Unaudited)			2022 (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(45,980	)	$	(23,824	)

Income on Extinbuishment of Debt		(7,900	)		-

Adjustments to reconcile net (loss) to net cash provided by (used in) operations:
Changes in Assets and Liabilities:
Increase (decrease) in Accounts Payable and Other Accruals		(9,428	)		-
Increase (decrease) in Accrued Interest Expense		5,491			4,712
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		(57,817	)		(19,112	)
CASH FLOWS TO/(FROM) FINANCING ACTIVITIES:
Note Payable - borrowings		57,827			18,800
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		57,827			18,800

NET INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS		10			(312	)

CASH AND CASH EQUIVALENTS,
BEGINNING OF THE PERIOD		5			325

END OF THE PERIOD	$	15		$	13

*SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:*
*CASH PAID DURING THE PERIOD FOR:*
Interest	$	-		$	-
Taxes	$	-		$	-

The accompanying notes are an integral part of these financial statements.

AppSoft Technologies, Inc.

Statement of Stockholders' Equity

For the nine months ended

September 30, 2023 (Unaudited)

Additional

Common Stock

Preferred Stock

Paid-in

Accumulated

Total

Shares

Amount

Shares

Amount

Capital

Deficit

Equity

Balances, January 1, 2023

4,504,143

449

1,936,000

193

533,858

(904,432

)

(369,932

)

Net Loss

(45,980

)

(45,980

)

Balances, September 30, 2023

4,504,143

449

1,936,000

193

533,858

(950,412

)

(415,912

)

For the nine months ended

September 30, 2022 (Unaudited)

Additional

Common Stock

Preferred Stock

Paid-in

Accumulated

Total

Shares

Amount

Shares

Amount

Capital

Deficit

Equity

Balances, January 1, 2022

4,504,143

449

1,936,000

193

533,858

(872,993

)

(338,493

)

Net Loss

(23,824

)

(23,824

)

Balances, September 30, 2022

4,504,143

449

1,936,000

193

533,858

(896,817

)

(362,317

)

The accompanying notes are an integral part of these financial statements.

NOTE A-BUSINESS ACTIVITY

AppSoft Technologies (the "Company”) was organized under the laws of the State of Nevada March 24, 2015. The Company’s fiscal year-end is December 31^st. AppSoft is a developer of innovative games/mobile apps as well as eSports/E-gaming platforms, including eSportsreporter, a leading news channel for all things esports and professional gaming. Coverage includes events with live reporters as well as conducting face-to-face and virtual interviews with professional players in the space. We are currently building a following on digital media to generate revenue from sales, sponsorships, or merchandise from our fanbase and advertisers published on our ad supported content.

NOTE B-GOING CONCERN

The accompanying financial statements have been prepared on a going concern basis, which assumes the Company will realize its assets and discharge its liabilities in the normal course of business. As reflected in the accompanying financial statements, the Company has a deficit accumulated of $950,412 and cash used in operations of $57,817 at the period ended September 30, 2023.

The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. These circumstances raise substantial doubt about the Company’s ability to continue as a going concern for the 12 months from the date when these financial statements were issued. The accompanying financial statements do not include any adjustments that might arise because of this uncertainty.

To address these aforementioned, management has undertaken the following initiatives: 1) enter into discussions to secure additional equity funding from current or new shareholders; 2) undertake a program to continue to monitor the Company’s ongoing working capital requirements and minimum expenditure commitments; 3) continue their focus on maintaining an appropriate level of corporate overhead in line with the Company’s available cash resources.

NOTE C-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation- The financial statements included herein were prepared under Generally Accepted Accounting Principles (GAAP). All adjustments have been made which in the opinion of management are necessary, normal, and recurring in nature for presentation.

Interim filings should be read in conjunction with the Company’s annual report as of December 31, 2022.

Cash and Cash Equivalents- For the purposes of the Statement of Cash Flows, the Company considers liquid investments with an original maturity of three months or less to be cash equivalents.

Management’s Use of Estimates- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The financial statements above reflect all the costs of doing business.

Revenue Recognition- On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, Topic 606 (“ASC 606”), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new revenue standard replaces most existing revenue recognition guidance in GAAP and permits the use of either the full retrospective or modified retrospective transition method. The Company adopted this standard using the modified basis effective January 1, 2019, and given the Company's limited revenue, the modified retrospective basis has no material impact on prior years given the limited revenue.

NOTE C-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—CONT’D

Comprehensive Income (Loss) - The Company reports Comprehensive income and its components following guidance set forth by section 220-10 of the FASB Accounting Standards Codification which establishes standards for the reporting and display of comprehensive income and its components in the financial statements. There were no items of comprehensive income (loss) applicable to the Company during the period covered in the financial statements.

Net Income per Common Share- Net loss per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during each period. There was a total of 1,936,000 upon conversion of preferred stock as of September 30, 2023.

Deferred Taxes- The Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date.

Fair Value of Financial Instruments- The carrying amounts reported in the balance sheet for cash, accounts receivable and accounts payable approximate fair value based on the short-term maturity of these instruments.

Accounts Receivable- Accounts deemed uncollectible are written off in the year they become uncollectible. As of September 30, 2023 and 2022, the balance in Accounts Receivable was $0 and $0.

Impairment of Long-Lived Assets- The Company evaluates the recoverability of its fixed assets and other assets in accordance with section 360-10-15 of the FASB Accounting Standards Codification for disclosures about Impairment or Disposal of Long-Lived Assets. Disclosure requires recognition of impairment of long-lived assets in the event the net book value of such assets exceeds its expected cash flows. If so, it is impaired and is written down to fair value, which is determined based on either discounted future cash flows or appraised values. The Company adopted the statement on inception. No impairments of these types of assets were recognized during the periods ended September 30, 2023 and 2022.

Stock-Based Compensation- The Company accounts for stock-based compensation using the fair value method following the guidance set forth in section 718-10 of the FASB Accounting Standards Codification for disclosure about Stock-Based Compensation. This section requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award- the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service.

Fair Value for Financial Assets and Financial Liabilities- The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP) and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below:

Level 1	Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.
Level 2	Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.
Level 3	Pricing inputs that are generally unobservable inputs and not corroborated by market data.

NOTE C-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—CONT’D

The carrying amounts of the Company’s financial assets and liabilities, such as cash and accrued expenses, approximate their fair values because of the short maturity of these instruments. The Company’s note payable approximates the fair value of such instrument based upon management’s best estimate of interest rates that would be available to the Company for similar financial arrangement at the periods ended September 30, 2023 and 2022.

The Company does not have any assets or liabilities measured at fair value on a recurring or a non-recurring basis, consequently, the Company did not have any fair value adjustments for assets and liabilities measured at fair value at September 30, 2023, nor gains or losses are reported in the statement of operations that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date for the periods ended September 30, 2023 and 2022.

Recently Issued Accounting Pronouncements

In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company is currently assessing the impact, if any, that ASU 2020-06 would have on its financial position, results of operations or cash flows.

Other pronouncements issued by the FASB or other authoritative accounting standards groups with future effective dates are either not applicable or are not expected to be significant to the Company’s financial position, results of operations or cash flows.

NOTE D-SEGMENT REPORTING

The Company follows the guidance set forth by section 280-10 of the FASB Accounting Standards Codification for reporting and disclosure on operating segments of the Company. It also requires segment disclosures about products and services, geographic areas, and major customers. The Company determined that it did not have any separately reportable operating segments as of September 30, 2023 and 2022.

NOTE E-CAPITAL STOCK

The Company is authorized to issue 1,000,000,000 Common Shares at $0.0001 par value per share.

Total issued and outstanding shares of common stock is 4,504,103 and 4,504,103 as of September 30, 2023 and September 30, 2022, respectively.

Total issued and outstanding shares of preferred stock is 1,936,000 and 1,936,000 as of September 30, 2023 and September 30, 2022, respectively.

NOTE E-CAPITAL STOCK—CONT’D

The Company is authorized to issue 10,000,000 Series A Cumulative, Convertible Preferred Shares (Preferred Stock) at $0.0001 par value per share. During the period from inception (March 24, 2015) through December 31, 2016, the Company issued 2,000,000 shares of preferred stock at $0.05 per share to Ventureo, LLC in exchange for $50,000 in cash and Phone Apps with a fair market value of $50,000 for a total of $100,000. The shares of “Preferred Stock” are convertible, at the option of the holder, into shares of common stock at a conversion price of $0.005 per share. The holder of the “Preferred Stock” may not convert any portion of the “Preferred Stock” if, after giving effect to such conversion, the holder would beneficially own in excess of 4.99%, except that the holder may, by written notice to the Company, increase or decrease this percentage up to a maximum of 9.99%, provided that any such increase will not be effective until the 61^st day after such notice is delivered to the Company. Upon a liquidation event, the Company shall first pay to the holders of the “Preferred Stock” an amount per share equal to the Original Issue Price (i.e., $0.05 per share of Series A Preferred Stock), plus all accrued and unpaid dividends on each share of Series A Preferred Stock (the “Series A Preference Amount”). After full payment of the liquidation preference amount to the holders of the “Preferred Stock,” the Company will then distribute the remaining assets to holders of common stock, other junior preferred shares (if any) and the “Preferred Stock” on an as-if-converted-basis. The Series A Preferred Stock ranks senior to the Company’s common stock and senior to any other shares of preferred stock the Company may issue in the future.

The Company is authorized to issue 10,000,000 Series A Cumulative, Convertible Preferred Shares (Preferred Stock) at $0.0001 par value per share. During the period from inception (March 24, 2015) through December 31, 2016, the Company issued 2,000,000 shares of preferred stock at $.05 per share to Ventureo, LLC in exchange for $50,000 in cash and Phone Apps with a fair market value of $50,000 for a total of $100,000. The shares of “Preferred Stock” are convertible, at the option of the holder, into shares of common stock at a conversion price of $0.005 per share. The holder of the “Preferred Stock” may not convert any portion of the “Preferred Stock” if, after giving effect to such conversion, the holder would beneficially own in excess of 4.99%, except that the holder may, by written notice to the Company, increase or decrease this percentage up to a maximum of 9.99%, provided that any such increase will not be effective until the 61^st day after such notice is delivered to the Company. Upon a liquidation event, the Company shall first pay to the holders of the “Preferred Stock” an amount per share equal to the Original Issue Price (i.e., $0.05 per share of Series A Preferred Stock), plus all accrued and unpaid dividends on each share of Series A Preferred Stock (the “Series A Preference Amount”). After full payment of the liquidation preference amount to the holders of the “Preferred Stock,” the Company will then distribute the remaining assets to holders of common stock, other junior preferred shares (if any) and the “Preferred Stock” on an as-if-converted-basis. The Series A Preferred Stock ranks senior to the Company’s common stock and senior to any other shares of preferred stock the Company may issue in the future.

The Company agreed to reduce the price at which each share of Series A Preferred Stock, of which Ventureo is the sole holder, converts into Common Stock from $0.005 per share to $0.0002 per share. The Company filed an amendment to its Articles of Incorporation reflecting the change of the conversion price. The Company’s Board approved the Agreement by unanimous written consent to action on November 30, 2018, and the Majority Holders approved the Agreement by the Stockholder Consent on December 4, 2018.

During 2021, the Company converted 1,400 shares of Preferred Stock into 350,000 shares of Common Stock.

Capital Contributions

Brian Kupchik, President, and CEO made no capital contributions during the nine months ended September 30, 2023 and September 30, 2022.

NOTE F-INCOME TAX

The Company provides for income taxes under (now included under Accounting Standards Codification (ASC), 740), Accounting for Income Taxes. ASC 740 requires the use of an asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences are expected to reverse.

ASC 740 requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all the deferred tax assets will not be realized. For Federal income tax purposes, the Company has net operating loss carry forwards that expire through 2030. The net operating loss carry forward as of September 30, 2023 is approximately $950,412 and as of September 30, 2022 is approximately $896,817. The total deferred tax assets are approximately $200,000 and $188,000 for the periods ended September 30, 2023 and 2022, respectively.

No tax benefit has been reported in the financial statements because after evaluating our own potential tax uncertainties, the Company has determined that there are no material uncertain tax positions that have a greater than 50% likelihood of reversal if the Company were to be audited. The provision for income taxes differs from the amounts which would be provided by applying the statutory federal income tax rate of 21% to the net loss before provision for income taxes for the following reasons:

The Company is not obligated to pay state income taxes because it is a Nevada corporation. The Company does not currently have any tax returns open for examination.

NOTE G-NOTES PAYABLE AND NOTE EXCHANGE AGREEMENT

The total amount of the Notes Payable is $386,543 and bears interest at 2% per year. Interest expense for the periods ended September 30, 2023 and 2022 were $5,491 and $4,712, respectively. Total accrued interest as of September 30, 2023 is $25,588.

Detail of the Notes Payable is as follows:

2018 Notes Payable

2018 Principal and Interest were consolidated into promissory note in the amount of $160,314. The note bears interest at 2% per year.

On November 30, 2018, the Company entered into an Exchange Agreement with its Creditors under which each Creditor agreed to cancel the Original Notes issued and accept a new promissory note in the amount of $160,314 from the Company evidencing the amount of principal and accrued interest thereon through such date owed to the Creditor that mature on December 31, 2021 in exchange for the Original Notes.

In consideration for the exchange of the Original Notes for the New Notes, the Company agreed to reduce the price at which each share of Series A Preferred Stock, of which Ventureo is the sole holder, converts into Common Stock from $0.005 per share to $0.0002 per share. The Company filed an amendment to its Articles of Incorporation reflecting the change of the conversion price. The Company’s Board approved the Agreement by unanimous written consent to action on November 30, 2018, and the Majority Holders approved the Agreement by the Stockholder Consent on December 4, 2018.

Although new borrowings are not yet formalized into a note agreement, the Company and the lender agree that the new loans have the same terms and conditions for the formalized notes.

2019 Notes Payable

In 2019 an additional $42,106 was incurred in promissory notes. The note bears interest at 2% per year.

NOTE G-NOTES PAYABLE AND NOTE EXCHANGE AGREEMENT—CONT’D

BGS Drawdown Promissory Note

On September 30, 2020, the Company executed a Drawdown Promissory Note in favor of Bryan Glass Securities, Inc. (“BGS”) under which the Company is entitled to borrow up to an aggregate of $150,000 during the 2020 and 2021 calendar years (the “Drawdown Note”). The original drawdown amount was $50,000 but has been increased to $150,000 in 2021. Under the Drawdown Note, the Company must request a drawdown against the instrument not less than three days prior to the date on which it requires the proceeds stating the amount of the drawdown and the purposes to which the proceeds will be applied. BGS is entitled to approve or decline an advance of all or a portion of the drawdown request. The unpaid principal amount of the Drawdown Note bears interest at the rate of 2% per year. On October 17, 2022, BGS agreed to extend the maturity date of the Drawdown Note to December 31, 2024. On January 1, 2023, the Drawdown Note amount was increased from $150,000 to $400,000.

	·	During the year 2020, $38,800 of the drawdown was borrowed.

	·	During the year 2021, $62,721 of the drawdown was borrowed.

	·	During the year 2022, $24,775 of the drawdown was borrowed.

	·	During the 1^st quarter of 2023, $19,323 of the drawdown was borrowed.

	·	During the 2^nd quarter of 2023, $29,504 of the drawdown was borrowed.

	·	During the 3rd quarter of 2023, $9,000 of the drawdown was borrowed.

As of September 30, 2023, the Company has borrowed an aggregate of $184,123 from BGS under the Drawdown Note and the sum of $215,877 remains available for advances thereunder.

NOTE H-WRITE-OFF OF PAYABLES

During the 1^st quarter 2023, management had requested legal counsel to render an opinion with respect to the collectability of an outstanding payable to the Company’s former independent auditor in the amount of $7,900 incurred pursuant to an engagement letter between the Company and the service provider and carried on the books since July 2015 (the “Liability”). Reference: Laws governing the statute of limitations relating to contractual obligations in Nevada are set forth in Title 2, Civil Practice, Chapter 11, of the Nevada Revised Statutes (“NRS”), entitled “Limitations of Actions,” comprising NRS 11.190 through NRS 11.250.

With respect to contractual obligations, under Nevada law, a plaintiff must commence an action permitted at law within the specific time period allotted under Chapter 11 of the NRS. If the action is not brought within the allotted time period, the defendant may assert a defense that the claim is time barred by the statute of limitations. The statute of limitations as it relates to contractual obligations is an affirmative defense in which a party introduces evidence, which, if found to be credible, will negate criminal or civil liability, even if it is proven that the party committed the alleged acts. In a civil action in which a creditor demands payment on a written instrument evidencing a debt, the successful assertion of the statute of limitations defense will bar collection of the debt. On the basis of the facts, counsel opined that since no action to enforce the Liability was brought before December 31, 2022, the end date of the statute of limitations under the NRS for contractual obligations evidenced by an instrument or writing, the Liability is time-barred from collection and may be removed from the Company’s current balance sheet.

Therefore, the Company made the decision to write-off the Liability. As of March 31, 2023, the write-off of the $7,900 resulted in a Gain on Extinguishment of Debt which was reported on the Statement of Operations for the year ended December 31, 2022 —per ASC Section 470-50-40. ASC Section 470-50-40 (Debt Modification and Extinguishments), considers the extinguishment of the debt to an unrelated party results in a Gain on Extinguishment of Debt which has been reported on the Statement of Operations.

NOTE I-MATERIAL EVENTS/SUBSEQUENT EVENTS

Since the close of the period covered by the financial statements of which these notes form a part, the following material transactions have occurred:

Subsequent Events

The Company evaluated for subsequent events through the issuance date of the Company’s financial statements and has determined no subsequent events have occurred.

Material Events

On October 17, 2022, BGS agreed to extend the maturity date of the Drawdown note to December 31, 2024. On January 1, 2023, BGS increased the Drawdown Note agreement from $150,000 to $400,000.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward Looking Statements

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q, or Report.

The information in this discussion and elsewhere in this Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such statements are based upon current expectations that involve risks and uncertainties. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. For example, the words “may,” “will,” “believe,” “anticipate,” “plan,” “expect,” “intend,” “could,” “estimate,” “continue” and similar expressions or variations identify forward-looking statements.

Although we believe that we have a reasonable basis for each forward-looking statement contained in this Report, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and the development of the industry in which we operate may differ materially from the forward-looking statements contained in this Report. Factors that might cause such a discrepancy include, but are not limited to:

	·	Our ability to obtain financing as and when needed on acceptable terms.
	·	Our failure to develop or acquire and publish new Apps that achieve market acceptance or we do not continue to enhance our existing Apps.
	·	Our inability to maintain a good relationship with the markets where our Apps are distributed.
	·	Our inability to keep pace with technological changes and market conditions in the Apps industry.
	·	Our inability to compete against a wide range of companies that market Apps, many of which have significantly greater resources than we do.

We caution readers not to place undue reliance on any forward-looking statements made by us, which speak only as of the date they are made. We disclaim any obligation, except as specifically required by law and the rules of the Securities and Exchange Commission, to publicly update or revise any such statements to reflect any change in our expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.

AppSoft Technologies, Inc. (“we,” “us,” or the “Company”) develops, publishes and markets mobile software applications for smartphones and tablet devices (“Apps”). Our Apps titles include games designed to appeal to a broad cross section of consumers. We offer all of our game titles in both a free advertisement-supported version and a paid version that does not display ads. We believe that the ad supported versions allow for wider dissemination of our titles to consumers who might not otherwise spend money for an App without first playing the game.

We market, sell and distribute our games through direct-to-consumer digital storefronts, which currently comprises Apple’s App Store and the Google Play Store. We currently or expect to advertise our Apps through the digital storefronts, our own website, social media, such as Facebook and LinkedIn, through mobile ad networks and search engine optimization, or SEO, tools. We derive our revenue primarily from sales, or downloads, of our Apps and from advertisements published on our ad supported game titles.

We are seeking to develop and acquire new Apps to expand our existing product offerings. We rely on third party designers, developers and programs to develop new Apps. We also solicit ideas for new titles from unrelated parties. We evaluate prospects based on a variety of factors. If we conclude that a particular prospect is worth pursuing, we may fund the development of the App through launch and beyond.

During the second quarter of 2021, we launched an eSports/E-gaming platform which we refer to as eSportsreporter.com. eSportsreporter.com is a leading news channel for all things esports and gaming. We publishing the most relevant breaking news for esports and gaming. eSports is growing faster than ever with millions of gamers, millions of viewers, and millions of dollars in prizes. Accordingly, we believe now is an ideal time to bring all esports and gaming news into one platform to leverage the growth of this global audience and maximize user engagement through Esportreporter.com.

In addition to becoming a leading source of esports news, eSportsreporter.com has an editorial and digital content creation team that publishes fresh, original content covering the latest trends from the esports and gaming industry. Our platform is becoming one of the most exciting eSports news sites, with a heavy and popular presence in the gaming and eSports communities via content both article and video, and social media, on its way toward becoming a major broadcaster of eSports tournaments and gaming events, with its own large in-house family of avid content creators.

We also provide fans with recording clips of tournaments for montages, similar to highlights of a major sports game. Recording clips of professional streamers for montages, a very popular genre of content that YouTube and now Netflix are offering as their own channels, which we hope to emulate in the near future. Videos recording our own staff explaining latest game patches, eSport team news/drama, new game trailers, new game features. Turning personal streams into montages for the site and channel.

We expect to have reporters attending the important upcoming events, including Play NYC, and interview top Game Team Players. As capital permits, we will continue to grow and add more high caliber interviews as well as emerging game coverage and reviews, indie games still undiscovered, peripherals and gaming hardware systems, streaming video gameplay, competitive, walkthrough as well as industry technical topics.

We will seek to build a following on digital media from which we expect to generate revenue from sales, sponsorships, or merchandise from our fanbase and advertisers published on our ad supported content.

Growth Strategies and Outlook

Over the next several periods, we expect to focus our efforts on the development of our eSports/E-gaming platforms. eSports have become popular worldwide, not only with participants but also with fans who watch them online and in public spaces, including arenas. According to Statista, an online statistics gathering and dissemination portal, as of 2022, the worldwide eSports audience size reached 532 million people and the global eSports market was valued at just over 1.38 billion.

We will continue to seek to develop and acquire new Apps to supplement our existing Apps portfolio. Our primary focus will be to release new game titles. We are seeking to develop a pipeline of independent game designers, developers and programmers who provide us with new ideas and titles to publish. We also are soliciting new games and concepts that we may acquire from third parties. We will seek to develop and publish free-to-play games. Free-to-play games are games that a player can download and play for free, but which allow players to access a variety of additional content and features for a fee, through “in-app purchases” utilizing virtual currency they may be purchased through digital storefronts, and to engage with various advertisements and offers that generate revenues for us. We may seek to acquire franchises around which we develop games, including movies, television programs, toys and other cultural phenomena that lend themselves to gamification.

Our ability to pursue and achieve our objectives is predicated on our receipt of meaningful revenue from our eSports platform and sales of our existing Apps and those we may release in the future and from our ability to raise capital from outside sources.

Revenues from our eSports/eGaming platform is dependent on our ability to generate sufficient viewership to attract advertisers and sponsors. Viewership is dependent on providing interesting and timely content to our target audience. We must deploy reporters to cover important events and tournaments and land interviews with popular players. Viewership also is dependent on marketing and advertising efforts which we have yet to launch. We may never generate sufficient revenue from operations or possess sufficient capital to execute the full range of activities to achieve success of our eSports platform.

Our revenues from the gaming Apps segment will depend significantly on growth in the mobile games market and our ability to develop or acquire and publish Apps that are well received by consumers. In addition, because our products are purchased with disposable income, our success is dependent on the overall strength of the economy in the United States. We expect to invest resources in research and development, analytics and marketing to introduce new Apps and continue to update our existing Apps, and to the extent that Apps into which we have invested significant capital are not successful, our business and financial condition could be harmed. We operate in an environment that is extremely competitive for users against a continually increasing number of developers, many of which are significantly larger than us and have other competitive advantages. We expect to allocate operating revenue and investment capital to sales and marketing initiatives in connection with the launch and promotion of our games in an effort to drive sales.

Our revenues further depend on maintaining our continued good relationship with the digital storefront operators, primarily Apple and Google, each of which could unilaterally alter their terms of service in ways that could harm our business.

Our ability to achieve and sustain profitability will depend not only on our ability to grow our revenues, but also on our ability to manage our operating expenses. Currently, we have one full-time employee, who receives compensation when and as determined by the board of directors. For the foreseeable further, we expect to utilize the services of independent contractors and consultants, who we believe are readily available for our purposes, in order to manage our personnel costs. We also will continue to maintain a virtual office as long as our operations permit to contain our office space overhead.

Over the last several quarters, our growth has been constrained by our lack of capital. We require additional capital to fund the development of Apps in process that we have developed internally or acquired from third parties. We also require capital to fund marketing initiatives for our existing products and to launch and market Apps in development. We cannot be sure that the additional capital we require will be available on acceptable terms or at all. If adequate funds are not available on acceptable terms or at all, we may be unable to develop or enhance our services and products, take advantage of future opportunities, repay debt obligations as they become due, or respond to competitive pressures, any of which would have a material adverse effect on our business, prospects, financial condition, and results of operations.

Results of Operations for the Three Months Ended September 30, 2023 Compared to the Three Months Ended September 30, 2022 (unaudited)

The following table presents our results of operations for the three months ended September 30, 2023 and 2022:

	Three Months Ended September 30,
	2023			2022
Revenue	$	-		$	-

Expenses
Selling, General and Administrative		827			1,047

Interest Expense		1,918			1,606
Outside Services		855			-
Professional Fees		675			3,860
Total Expenses		4,275			6,513
Net Loss	$	(4,275	)	$	(6,513	)

Business Activity

During the quarter ended September 30, 2023, our efforts focused on identifying sources of meaningful capital and we experienced only inconsequential business activity.

Net Loss

During the three months ended September 30, 2023, we had a net loss from operations of $4,275, as compared to a net loss of $6,513 for the comparable 2022 period.

Results of Operations for the Nine Months Ended September 30, 2023 Compared to the Nine Months Ended September 30, 2022 (unaudited)

The following table presents our results of operations for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022:

	Nine Months Ended September 30,
	2023			2022
Revenue	$	-		$	-

Expenses
Selling, General and Administrative		6,614			8,933

Interest Expense		5,491			4,712
Outside Services		2,720			1,629
Professional Fees		39,055			8,550
Total Expenses		53,880			23,824
Net Loss	$	(53,880	)	$	(23,824	)

Revenues

During the nine months ended September 30, 2023 and 2022, we did not record any revenue.

Net Loss

During the nine months ended September 30, 2023, we had a net loss from operations of $53,880, as compared to a net loss of $23,824 for the comparable 2022 period.

Liquidity and Capital Resources

Liquidity is the ability of a company to generate adequate amounts of cash to support its current and future operations, satisfy its obligations, and otherwise operate on an ongoing basis. Significant factors in the management of liquidity are funds generated by operations, the availability of credit facilities, levels of accounts receivable and accounts payable and capital expenditures.

As of September 30, 2023, we had a working capital deficit of $29,369, compared to a working capital deficit of $41,216 at December 31, 2022.

Since our inception, we have financed our operations through the sale of equity securities, from third party loans and from internally generated revenue from operations.

Over the last several years, we have been borrowing cash from Bryan Glass Securities, Inc. (“BGS”) and its affiliates to fund our operations. Since 2016, we have borrowed and aggregate of $386,543 from Bryan Glass Securities and its affiliates. Since 2019, the borrowings have been under a drawdown note that allows us to borrow up to $400,000, of which we had borrowed $184,123 through September 30, 2023, leaving $215,877 remaining to be borrowed as we require to fund our operations. All of the promissory notes evidencing our borrowings bear interest at the rate of 2% per year. The drawdown note matures on December 31, 2024 the other outstanding debt, $202,420 in the aggregate, is payable on demand.

Our primary requirements for liquidity and capital are (i) to develop our eSports platform and business, (ii) to fund the development and acquisition of new Apps and for sales and marketing initiatives in connection with the launch and promotion of our games, (iii) for working capital to fund our general corporate needs, including filing reports under the federal securities laws.

Since our customers pay for their purchases by credit or debit card at the time of sale, neither inventories nor receivables are relevant to our business.

Our cash on hand and cash flow from operations are not sufficient to fund our existing operations or support our desired development and acquisition strategy or required in connection with launching, marketing and promoting our games. Over the last twelve months, we have been using the proceeds from loans to fund our operations. We are seeking to identify meaningful sources of capital to fund the entire range of our operations and development activities, though we cannot provide any assurance that we will identify any such sources of capital. Financing transactions may include the issuance of equity or debt securities, obtaining credit facilities or through other financing mechanisms. Even if we are able to raise the funds required, it is possible that we could incur unexpected costs and expenses or experience unexpected cash requirements that would force us to seek alternative financing. Furthermore, if we issue additional equity or debt securities, stockholders may experience additional dilution or the new equity securities may have rights, preferences or privileges senior to those of existing holders of our common stock. The inability to obtain additional capital will continue to constrain our operations, including App development and marketing, and restrict our ability to grow. If we are unable to obtain additional financing, we may possibly have to cease our operations.

Cash Flows:

The following table presents summary cash flow information.

	For the nine months ended September 30, 2023			For the nine months ended September 30, 2022
Net cash used in operating activities	$	(57,817	)	$	(19,112	)
Net cash used in investing activities
Net cash provided by financing activities		57,817			19,112
Net increase / (decrease) in cash	$	10		$	(312	)

Contractual Commitments as of September 30, 2023

As of September 30, 2023, the Company had no contractual obligations, as such term is defined in Item 303 of Regulation S-K promulgated under the Securities Act of 1933, as amended.

Going Concern

The notes to our financial statements for the quarter ended September 30, 2023 and the report of our independent registered public accounting firm on our financial statements for the year ended December 31, 2022 include an explanatory paragraph with respect to our ability to continue as a going concern. As reflected in the accompanying financial statements, the Company has a deficit accumulated of $950,413 at September 30, 2023. The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and pay its liabilities arising from normal business operations when they come due. The accompanying financial statements do not include any adjustments that might arise because of this uncertainty

The presence of the going concern explanatory paragraph suggests that we may not have sufficient liquidity, or minimum cash levels, to operate our business. Since our inception, we have incurred losses and anticipate that we will continue to incur losses until such time as our Apps generate sufficient revenue to offset our research and development, general and administrative and sales and marketing expenses. We will need to raise additional capital to fund our near-term operational plans described elsewhere in this report. We cannot assure you that we will be successful in our operational plans. We cannot be sure that the additional capital we require will be available on acceptable terms or at all. If adequate funds are not available on acceptable terms or at all, we may be unable to develop or enhance our services and products, take advantage of future opportunities, repay debt obligations as they become due, or respond to competitive pressures, any of which would have a material adverse effect on our business, prospects, financial condition, and results of operations.

Off-Balance Sheet and Other Arrangements

We do not engage in any activities involving variable interest entities or off-balance sheet arrangements.

Inflation

We do not believe that inflation has had a material effect on our business, financial condition or results of operations. If our costs were to become subject to significant inflationary pressures, we might not be able to fully offset these higher costs through price increases. Our inability or failure to do so could harm our business, operating results and financial condition.

Critical Accounting Policies and Use of Estimates

The discussion and analysis of financial condition and results of operations are based upon the Company’s financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States. The preparation of these condensed consolidated financial statements requires estimates and assumptions that affect the reported amounts of assets, liabilities, sales and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, our management evaluates its estimates based upon historical experience and various other assumptions that it believes to be reasonable in the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The Company believes that its significant accounting policies affect its more significant estimates and judgments used in the preparation of its consolidated financial statements. Our significant accounting policies are described in Note C to our audited financial statements included in our annual report on Form 10-K for the period ended December 31, 2022. We do not believe that there has been any significant change in the Company’s critical accounting policies since December 31, 2022.

Recent Accounting Pronouncements

Emerging Growth Company Critical Accounting Policy Disclosure: We qualify as an “emerging growth company” under the 2012 JOBS Act. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. As an emerging growth company, we can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period.

See Note C to the financial statements furnished with this report for a discussion of recent accounting pronouncements that had a material effect on the financial statements presented herein.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 4. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e)) under the Exchange Act) that is designed to ensure that information required to be disclosed by the Company in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. However, a control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all controls systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. Our disclosure controls and procedures are designed to provide reasonable assurance of achieving its objectives.

Pursuant to Rule 13a-15(b) under the Exchange Act, the Company carried out an evaluation with the participation of the Company’s management performed an evaluation, under the supervision and with the participation of the Company’s Chief Executive Officer, who is the Company’s principal executive officer and principal financial officer and who we refer to herein as our PEO, of the effectiveness of the Company’s disclosure controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the quarter ended September 30, 2023. Based upon that evaluation, the Company’s PEO concluded that the Company’s disclosure controls and procedures were not effective as of September 30, 2023 due to the Company’s limited internal resources and lack of ability to have multiple levels of transaction review.

Management is in the process of determining how best to address this condition and implement a more effective system to ensure that information required to be disclosed in this quarterly report on Form 10-Q has been recorded, processed, summarized and reported accurately. Our management acknowledges the existence of this problem, and intends to developed procedures to address them to the extent possible given limitations in financial and manpower resources. While management is working on a plan, no assurance can be made at this point that the implementation of such controls and procedures will be completed in a timely manner or that they will be adequate once implemented.

Changes in Internal Controls

There have been no changes in our internal control over financial reporting during the quarter ended September 30, 2023 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

PART II—OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

There are presently no pending legal proceedings to which the Company is a party or as to which any of its property is subject, and no such proceedings are known to the Company to be threatened or contemplated against it.

ITEM 1A. RISK FACTORS

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934, as amended, and are not required to provide the information required under this item.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Since the date on which the Company filed its last quarterly report on Form 10-Q and through the date of this report, the Company did not sell any securities.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None

ITEM 6. EXHIBITS.

Exhibit		Description

31.1		Certification of the Company’s Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to the registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023.
31.2		Certification of the Company’s Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to the registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023.
32.1*		Certification of the Company’s Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002.
101.INS		Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
101.SCH		Inline XBRL Taxonomy Extension Schema Document.
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB		Inline XBRL Taxonomy Extension Labels Linkbase Document.
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

In accordance with Item 601 of Regulation S-K, this Exhibit is hereby furnished to the SEC as an accompanying document and is not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	APPSOFT TECHNOLOGIES, INC.

Date: November 20, 2023	By:	/s/ Brian Kupchik
	Name:	Brian Kupchik
	Title:	President, Principal Executive Officer and Principal Financial Officer

nullnullnull

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2023	Nov. 20, 2023
Cover [Abstract]
Entity Registrant Name	APPSOFT TECHNOLOGIES, INC.
Entity Central Index Key	0001651992
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	true
Entity Current Reporting Status	Yes
Document Period End Date	Sep. 30, 2023
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023
Entity Ex Transition Period	false
Entity Common Stock Shares Outstanding		4,504,103
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	333-206764
Entity Incorporation State Country Code	NV
Entity Tax Identification Number	47-3427919
Entity Address Address Line 1	1225 Franklin Avenue
Entity Address Address Line 2	Suite 325
Entity Address City Or Town	Garden City
Entity Address State Or Province	NY
Entity Address Postal Zip Code	11530
City Area Code	516
Local Phone Number	224-7717
Entity Interactive Data Current	Yes

Balance Sheets - USD ($)	Sep. 30, 2023	Dec. 31, 2022
CURRENT ASSETS
Cash	$ 15	$ 5
TOTAL CURRENT ASSETS	15	5
TOTAL ASSETS	15	5
CURRENT LIABILITIES
Accounts Payable and Accruals	3,796	21,124
Accrued Interest	25,588	20,097
TOTAL CURRENT LIABILITIES	29,384	41,221
Note Payable	386,543	328,716
TOTAL LIABILITIES	415,927	369,937
COMMITMENTS AND CONTINGENCIES	0	0
STOCKHOLDER'S EQUITY
Series A Cumulative, Convertible Preferred stock ($0.0001 par value; 10,000,000 shares authorized; 1,936,000 and 1,936,000 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively)	193	193
Common stock ($0.0001 par value; 1,000,000,000 shares authorized; 4,504,103 and 4,504,103 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively)	449	449
Additional Paid in Capital	533,858	533,858
Accumulated Deficit	(950,412)	(904,432)
TOTAL STOCKHOLDER'S EQUITY (DEFICIT)	(415,912)	(369,932)
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY/(DEFICIT)	$ 15	$ 5

Balance Sheet (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022
Common Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	1,000,000,000	1,000,000,000	1,000,000,000
Common Stock, Shares, Issued	4,504,103	4,504,103	4,504,103
Common Stock, Shares, Outstanding	4,504,103	4,504,103	4,504,103
Series A Cumulative Convertible Preferred Stock [Member]
Preferred Stock, shares issued	1,936,000	1,936,000	1,936,000
Preferred Stock, shares outstanding	1,936,000	1,936,000	1,936,000
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001	$ 0.0001
Preferred Stock, shares authorized	10,000,000	10,000,000	10,000,000

Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
Statements of Operations (Unaudited) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statements of Operations (Unaudited)
Sales	$ 0	$ 0	$ 0	$ 0
Total Revenue	0	0	0	0
EXPENSES:
Selling, General and Administrative	827	1,047	6,614	8,933
Interest Expense	1,918	1,606	5,491	4,712
Outside Services	855	0	2,720	1,629
Professional Fees	675	3,860	39,055	8,550
Total Expense	4,275	6,513	53,880	23,824
Loss from operations	(4,275)	(6,513)	(53,880)	(23,824)
Other Income/Loss)
Income on Extinguishment of Debt	0	0	7,900	0
Provision for Income Taxes	0	0	0	0
NET LOSS	$ (4,275)	$ (6,513)	$ (45,980)	$ (23,824)
Weighted average common shares outstanding, basic and fully diluted	4,504,103	4,504,103	4,504,103	4,504,103
Basic and fully diluted net loss per common share:	$ (0.00)	$ (0.00)	$ (0.01)	$ (0.01)

Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
Statements of Cash Flows (Unaudited) - USD ($)	Sep. 30, 2023	Sep. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (45,980)	$ (23,824)
Income on Extinbuishment of Debt	(7,900)	0
Changes in Assets and Liabilities:
Increase (decrease) in Accounts Payable and Other Accruals	(9,428)	0
Increase (decrease) in Accrued Interest Expense	5,491	4,712
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	(57,817)	(19,112)
CASH FLOWS TO/(FROM) FINANCING ACTIVITIES:
Note Payable - borrowings	57,827	18,800
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	57,827	18,800
NET INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS	10	(312)
CASH AND CASH EQUIVALENTS,
BEGINNING OF THE PERIOD	5	325
END OF THE PERIOD	15	13
CASH PAID DURING THE PERIOD FOR:
Interest	0	0
Taxes	$ 0	$ 0

Statement of Stockholders' Equity (Unaudited) - USD ($)	Total	Common Stock	Preferred Stock	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)
Balance, shares at Dec. 31, 2021		4,504,143	1,936,000
Balance, amount at Dec. 31, 2021	$ (338,493)	$ 449	$ 193	$ 533,858	$ (872,993)
Net Loss	(23,824)	$ 0	$ 0	0	(23,824)
Balance, shares at Sep. 30, 2022		4,504,143	1,936,000
Balance, amount at Sep. 30, 2022	(362,317)	$ 449	$ 193	533,858	(896,817)
Balance, shares at Dec. 31, 2022		4,504,143	1,936,000
Balance, amount at Dec. 31, 2022	(369,932)	$ 449	$ 193	533,858	(904,432)
Net Loss	(45,980)	$ 0	$ 0	0	(45,980)
Balance, shares at Sep. 30, 2023		4,504,143	1,936,000
Balance, amount at Sep. 30, 2023	$ (415,912)	$ 449	$ 193	$ 533,858	$ (950,412)

BUSINESS ACTIVITY

9 Months Ended

Sep. 30, 2023

BUSINESS ACTIVITY

BUSINESS ACTIVITY

NOTE A-BUSINESS ACTIVITY

GOING CONCERN

9 Months Ended

Sep. 30, 2023

GOING CONCERN

GOING CONCERN

NOTE B-GOING CONCERN

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2023

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE C-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Interim filings should be read in conjunction with the Company’s annual report as of December 31, 2022.

Cash and Cash Equivalents- For the purposes of the Statement of Cash Flows, the Company considers liquid investments with an original maturity of three months or less to be cash equivalents.

Accounts Receivable- Accounts deemed uncollectible are written off in the year they become uncollectible. As of September 30, 2023 and 2022, the balance in Accounts Receivable was $0 and $0.

Level 1	Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.
Level 2	Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.
Level 3	Pricing inputs that are generally unobservable inputs and not corroborated by market data.

Recently Issued Accounting Pronouncements

SEGMENT REPORTING

9 Months Ended

Sep. 30, 2023

SEGMENT REPORTING

NOTE D - SEGMENT REPORTING

NOTE D-SEGMENT REPORTING

CAPITAL STOCK

9 Months Ended

Sep. 30, 2023

CAPITAL STOCK

CAPITAL STOCK

NOTE E-CAPITAL STOCK

The Company is authorized to issue 1,000,000,000 Common Shares at $0.0001 par value per share.

Total issued and outstanding shares of common stock is 4,504,103 and 4,504,103 as of September 30, 2023 and September 30, 2022, respectively.

Total issued and outstanding shares of preferred stock is 1,936,000 and 1,936,000 as of September 30, 2023 and September 30, 2022, respectively.

The Company is authorized to issue 10,000,000 Series A Cumulative, Convertible Preferred Shares (Preferred Stock) at $0.0001 par value per share. During the period from inception (March 24, 2015) through December 31, 2016, the Company issued 2,000,000 shares of preferred stock at $.05 per share to Ventureo, LLC in exchange for $50,000 in cash and Phone Apps with a fair market value of $50,000 for a total of $100,000. The shares of “Preferred Stock” are convertible, at the option of the holder, into shares of common stock at a conversion price of $0.005 per share. The holder of the “Preferred Stock” may not convert any portion of the “Preferred Stock” if, after giving effect to such conversion, the holder would beneficially own in excess of 4.99%, except that the holder may, by written notice to the Company, increase or decrease this percentage up to a maximum of 9.99%, provided that any such increase will not be effective until the 61^st day after such notice is delivered to the Company. Upon a liquidation event, the Company shall first pay to the holders of the “Preferred Stock” an amount per share equal to the Original Issue Price (i.e., $0.05 per share of Series A Preferred Stock), plus all accrued and unpaid dividends on each share of Series A Preferred Stock (the “Series A Preference Amount”). After full payment of the liquidation preference amount to the holders of the “Preferred Stock,” the Company will then distribute the remaining assets to holders of common stock, other junior preferred shares (if any) and the “Preferred Stock” on an as-if-converted-basis. The Series A Preferred Stock ranks senior to the Company’s common stock and senior to any other shares of preferred stock the Company may issue in the future.

During 2021, the Company converted 1,400 shares of Preferred Stock into 350,000 shares of Common Stock.

Capital Contributions

Brian Kupchik, President, and CEO made no capital contributions during the nine months ended September 30, 2023 and September 30, 2022.

INCOME TAX

9 Months Ended

Sep. 30, 2023

INCOME TAX

INCOME TAX

NOTE F-INCOME TAX

The Company is not obligated to pay state income taxes because it is a Nevada corporation. The Company does not currently have any tax returns open for examination.

NOTES PAYABLE AND NOTE EXCHANGE AGREEMENT

9 Months Ended

Sep. 30, 2023

NOTES PAYABLE AND NOTE EXCHANGE AGREEMENT

NOTES PAYABLE AND NOTE EXCHANGE AGREEMENT

NOTE G-NOTES PAYABLE AND NOTE EXCHANGE AGREEMENT

Detail of the Notes Payable is as follows:

2018 Notes Payable

2018 Principal and Interest were consolidated into promissory note in the amount of $160,314. The note bears interest at 2% per year.

Although new borrowings are not yet formalized into a note agreement, the Company and the lender agree that the new loans have the same terms and conditions for the formalized notes.

2019 Notes Payable

In 2019 an additional $42,106 was incurred in promissory notes. The note bears interest at 2% per year.

BGS Drawdown Promissory Note

	·	During the year 2020, $38,800 of the drawdown was borrowed.

	·	During the year 2021, $62,721 of the drawdown was borrowed.

	·	During the year 2022, $24,775 of the drawdown was borrowed.

	·	During the 1^st quarter of 2023, $19,323 of the drawdown was borrowed.

	·	During the 2^nd quarter of 2023, $29,504 of the drawdown was borrowed.

	·	During the 3rd quarter of 2023, $9,000 of the drawdown was borrowed.

As of September 30, 2023, the Company has borrowed an aggregate of $184,123 from BGS under the Drawdown Note and the sum of $215,877 remains available for advances thereunder.

WRITE-OFF OF PAYABLES

9 Months Ended

Sep. 30, 2023

WRITE-OFF OF PAYABLES

WRITE-OFF OF PAYABLES

NOTE H-WRITE-OFF OF PAYABLES

MATERIAL EVENTS SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2023

MATERIAL EVENTS SUBSEQUENT EVENTS

MATERIAL EVENTS/SUBSEQUENT EVENTS

NOTE I-MATERIAL EVENTS/SUBSEQUENT EVENTS

Since the close of the period covered by the financial statements of which these notes form a part, the following material transactions have occurred:

Subsequent Events

The Company evaluated for subsequent events through the issuance date of the Company’s financial statements and has determined no subsequent events have occurred.

Material Events

On October 17, 2022, BGS agreed to extend the maturity date of the Drawdown note to December 31, 2024. On January 1, 2023, BGS increased the Drawdown Note agreement from $150,000 to $400,000.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2023

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Interim filings should be read in conjunction with the Company’s annual report as of December 31, 2022.

Cash and Cash Equivalents

Cash and Cash Equivalents- For the purposes of the Statement of Cash Flows, the Company considers liquid investments with an original maturity of three months or less to be cash equivalents.

Management's Use of Estimates

Revenue recognition

Comprehensive Income (Loss)

Net Income per Common Share

Deferred Taxes

Fair Value of Financial Instruments

Accounts Receivable

Accounts Receivable- Accounts deemed uncollectible are written off in the year they become uncollectible. As of September 30, 2023 and 2022, the balance in Accounts Receivable was $0 and $0.

Impairment of Long-Lived Assets

Stock-Based Compensation

Fair Value for Financial Assets and Financial Liabilities

Level 1	Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.
Level 2	Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.
Level 3	Pricing inputs that are generally unobservable inputs and not corroborated by market data.

Recently Issued Accounting Pronouncements

GOING CONCERN (Details Narrative) - USD ($)	9 Months Ended
GOING CONCERN (Details Narrative) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
GOING CONCERN
Accumulated Deficit	$ (950,412)		$ (904,432)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$ (57,817)	$ (19,112)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock	1,936,000
Accounts Receivable	$ 0	$ 0

CAPITAL STOCK (Details Narrative) - USD ($)	9 Months Ended	12 Months Ended	21 Months Ended
CAPITAL STOCK (Details Narrative) - USD ($)	Sep. 30, 2023	Dec. 31, 2021	Dec. 31, 2016	Dec. 31, 2022	Sep. 30, 2022
Common Stock, Shares, Outstanding	4,504,103			4,504,103	4,504,103
Common Stock, Shares, Issued	4,504,103			4,504,103	4,504,103
Common Stock, Shares Authorized	1,000,000,000			1,000,000,000	1,000,000,000
Common Stock, Par or Stated Value Per Share	$ 0.0001			$ 0.0001	$ 0.0001
Original Issue Price	0.05
Maximum [Member]
Common Stock, Convertible, Conversion Price, Decrease	$ 0.005
Convertible Preferred Stock ,Beneficially Ownership Percentage			9.99%
Series A Cumulative Convertible Preferred Stock [Member]
Preferred Stock, shares outstanding	1,936,000			1,936,000	1,936,000
Preferred Stock, shares issued	1,936,000			1,936,000	1,936,000
Common Stock, Par or Stated Value Per Share	$ 0.0001
Preferred Stock, Share Authorized	10,000,000			10,000,000	10,000,000
Preferred Stock, Par or Stated Value Per Share	$ 0.0001			$ 0.0001	$ 0.0001
Common Stocks Member
Preferred Shares Converted to Common Shares		350,000
Convertible preferred stock, shares		1,400
Series A Preferred Stock [Member] \| Ventureo LLC [Member]
Preferred Stock, shares issued			2,000,000
Preferred Stock, Par or Stated Value Per Share			$ 0.05
Proceeds from Issuance of Preferred Stock and Preference Stock			$ 50,000
Stock Issued During Period, Value, New Issues			$ 100,000
Convertible Preferred Stock Conversion Price			$ 0.005
Payments to Acquire Productive Assets, Total			$ 50,000

INCOME TAX (Details Narrative) - USD ($)	9 Months Ended
INCOME TAX (Details Narrative) - USD ($)	Sep. 30, 2023	Sep. 30, 2022
INCOME TAX
Operating Loss Carryforwards	$ 950,412	$ 896,817
Federal Statutory Income Tax Rate	21.00%
Deferred Tax Assets	$ 200,000	$ 188,000
Description of net operating loss carryforward expiry year	the Company has net operating loss carry forwards that expire through 2030
Income tax descriptions	the Company has determined that there are no material uncertain tax positions that have a greater than 50% likelihood of reversal if the Company were to be audited

NOTES PAYABLE AND NOTE EXCHANGE AGREEMENT (Details Narrative) - USD ($)	3 Months Ended					9 Months Ended		12 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Nov. 30, 2018
Promissory note											$ 160,314
Debt instrument interest rate, stated percentage	2.00%					2.00%
Note Payable	$ 386,543			$ 386,543		$ 386,543	$ 386,543	$ 328,716
Interest Expense	1,918			$ 1,606	$ 1,575	5,491	4,712
Accrued Interest	$ 25,588					$ 25,588		20,097
Bryan Glass Securities, Inc. [Member]
Debt instrument interest rate, stated percentage	2.00%					2.00%
Additional notes payable						$ 150,000	$ 150,000
Proceeds from issuance preferred stock						50,000
Drawdown amount increased	$ 150,000					150,000
Drawdown amount	9,000	$ 29,504	$ 19,323					$ 24,775	$ 62,721	$ 38,800
Drawdown Note	184,123					184,123
Advances drawdown Note	$ 215,877					$ 215,877
2018 Notes Payable [Member]
Promissory note											$ 160,314
Debt instrument interest rate, stated percentage	2.00%					2.00%
2019 Notes Payable [Member]
Promissory note	$ 42,106					$ 42,106
Debt instrument interest rate, stated percentage	2.00%					2.00%
Maximum [Member]
Common Stock, Convertible, Conversion Price, Decrease						$ 0.005
Drawdown amount increased	$ 400,000					$ 400,000
Minimum [Member]
Common Stock, Convertible, Conversion Price, Decrease						$ 0.0002
Drawdown amount increased	$ 150,000					$ 150,000

WRITEOFF OF PAYABLES (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
WRITEOFF OF PAYABLES (Details Narrative) - USD ($)	Jul. 31, 2016	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
WRITE-OFF OF PAYABLES
Accounts payable				$ 7,900
Gain on Extinguishment of Debt	$ 7,900	$ 0	$ 0	$ 7,900	$ 0

MATERIAL EVENTS SUBSEQUENT EVENTS (Details Narrative)	9 Months Ended
MATERIAL EVENTS SUBSEQUENT EVENTS (Details Narrative)	Sep. 30, 2023
MATERIAL EVENTS SUBSEQUENT EVENTS
Description Related to Promissory Note	On January 1, 2023, BGS increased the Drawdown Note agreement from $150,000 to $400,000
Maturity Date Extend of Drawdown Promissory Note	Dec. 31, 2024

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ASFT AppSoft Technologies Inc (PK)