Appsoft Technologies, Inc. (ASFT)
AppSoft Technologies, Inc. (OTC Pink: APFT) is a small mobile games and esports content developer that has paused app publishing and its Esportsreporter portal due to lack of funding. The company pivoted to a game incubator model (Gamerfy.com), hoping to attract and fund third‐party titles in exc...
AppSoft Technologies, Inc. (OTC Pink: APFT) 10‑K 2024 Review and Investment Score
Welcome to our deep dive on AppSoft Technologies, Inc. (OTC Pink: APFT), a small‐cap mobile gaming and esports play that filed its annual report on Form 10‑K for the fiscal year ended December 31, 2024. In this article, we’ll:
Warren.AI 💰 1.5 / 10
• Summarize what AppSoft does and where it stands in the market • Walk through the key financials and trends • Uncover the most critical risks and uncertainties • Evaluate AppSoft’s cash burn and capital needs • Deliver a final investment score from 1 to 10
Whether you’re a seasoned valued investor or just curious about microcap plays in mobile gaming, read on for our unvarnished take.
Company Overview (Item 1)
Business: AppSoft Technologies, Inc. is a development, publishing and marketing company focused on mobile software applications (“apps”) and esports content.
• Mobile Apps History. AppSoft built a portfolio of 200+ smartphone and tablet game titles, available in paid and ad‑supported versions.
• Esportsreporter.com. In 2021 the company launched Esportsreporter, a digital news channel for electronic sports and pro gaming, driven by advertising.
• Gamerfy.com. In 2022 AppSoft added a video game incubator platform—Gamerfy—designed to attract third‐party game concepts, help assess and fund development, and take a revenue share on successful titles.
Current Focus:
AppSoft has temporarily paused publishing and marketing of existing apps and its esports portal due to a lack of financial resources. Management has shifted all efforts to building a pipeline of new titles via Gamerfy—and hopes to resume full operations if and when fresh capital arrives.
Competitive Landscape:
The company competes against deep‐pocketed game giants (e.g., Tencent, NetEase, Supercell, Niantic) and thousands of small indie developers on Apple’s App Store (over 472,000 games as of 3Q 2024). AppSoft’s small size offers nimbleness but presents severe marketing and distribution challenges.
Employees: Just one full‐time employee (the CEO), plus eight contractors for app development. No unionized labor or collective bargaining.
Properties: A nominal virtual office in Garden City, NY at $149 per month.
Risk Factors (Item 1A):
AppSoft elected smaller reporting company status and declined to file Item 1A risk factors. Nonetheless, the filing discloses:
• Extreme financing risk: no clear path to capital to fund development or marketing.
• Concentration risk: operations hinge on one officer and no independent board oversight.
• Execution risk: reliance on third‐party platforms, changing technology, zero in‐house IP protection.
• Competitive risk: inability to stand out in a crowded app market.
Financial Highlights & Trends (Items 7, 7A, 8)
($ in thousands)
| Metric | 2024 | 2023 |
|---|---|---|
| Revenue | $0 | $0 |
| Net Loss | $(60.8) | $(58.3) |
| Cash | $0.1 | $0.008 |
| Total Assets | $0.1 | $0.008 |
| Total Liabilities | $478.7 | $420.4 |
| Working Capital Deficit | $(36.1) | $(27.8) |
| Debt Outstanding | $442.5 | $392.5 |
No Revenue
AppSoft generated zero operating revenue in 2023 and 2024. All business lines are effectively mothballed while the company awaits funding.
Rising Losses
Operating expense rose slightly to $60.8k in 2024—from $58.3k in 2023—driven by professional fees, interest on related‐party debt and web development costs.
Balance Sheet
• Assets. Merely $101 in cash and no receivables, inventory or fixed assets.
• Liabilities. $442.5k of related‑party promissory notes (at 2% interest) and $36.2k of current payables and accrued interest.
• Working Capital. Negative $36.1k at year‑end, down from a negative $27.8k in 2023.
Cash Flow
Operating cash burn of $52.5k in 2024 was almost entirely offset by $52.6k draws on the related‑party line of credit. No investing activity.
Liquidity & Capital Resources
Going Concern:
The auditor’s report and management note a substantial doubt about AppSoft’s ability to continue as a going concern. The company has no revenue and minimal cash on hand.
Related‑Party Line:
• Under a drawdown promissory note with Bryan Glass Securities, AppSoft can draw up to $400k through Dec 31, 2027. As of Dec 31, 2024, $240k was drawn and $160k remained available.
• 2% interest on the outstanding balance.
Additional Financing Needed:
AppSoft must raise equity or third‑party debt to fund any resumption of app publishing, esports coverage or incubator development. Otherwise it risks insolvency.
Use of Proceeds:
Management intends to use fresh capital to: 1) Relaunch app publishing (paid and ad‑supported) 2) Restart Esportsreporter.com operations 3) Expand Gamerfy platform development pipeline 4) Cover general corporate overhead and reporting costs
Capital Raises:
No public equity offerings in 2024. All funding via related‑party “advance notes.”
Risk and Uncertainties
Key Risks:
• Financing Risk: No revenue, negative working capital, dependent on related‑party loans.
• Execution Risk: Zero track record of successful game launches in the past three years.
• Competitive Risk: Vastly out‑gunned by major studios in marketing, IP, distribution and R&D.
• Governance Risk: Single‑person board/officer with no independent oversight or audit committee and no segregation of duties.
• Market Risk: The mobile gaming and esports sectors are fickle and driven by massive trends, in‑game economies and platform gatekeepers (Apple/Google).
• Liquidity Risk: Trading on the OTC Pink Sheets is extremely illiquid (just $0.252 bid on April 10, 2025).
SEC Matters:
Fully compliant on filings; however, the lack of Item 1A disclosure is a concession of smaller reporting status, not a business omission.
Net Profit (Loss)
• 2024 Net Loss: $(60,846)
• 2023 Net Loss: $(58,342)
No profits historically; continued operating losses.
Buckets of Uncertainty: The Key Takeaway
AppSoft sits in a classic early‑stage hole: 0 revenue, negative cash, mounting debt and a starving of resources. Management has paused core activities while hoping to find capital.
The incubator concept (Gamerfy) has potential in a bootstrap environment but requires marketing muscle and development budgets that AppSoft does not have.
In today’s crowded app world—where marketer budgets dwarf smaller players’ war chests—AppSoft remains perilously underfunded. Its sole CEO/board member cannot fill the mega‑gap.
Investment Score: 1.5/10
Why: • No revenue traction or meaningful customer base
• Negative working capital and going‑concern doubt
• Overreliance on related‑party debt lines
• No independent governance or audit oversight
Bottom Line: AppSoft is a highly speculative microcap with near‑zero operating runway. Unless a substantial equity infusion materializes, it faces further cash burn and potential dissolution.
“Investments in early‐stage ventures with zero revenue and negative working capital are akin to lottery tickets—thin odds, but seasoned speculators place small bets in hope of major upside. AppSoft presently lacks the spark to light that fuse.”
Caution: This is not financial advice; consult with a qualified advisor before making any investment.
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