OTC:ASFT
Appsoft Technologies, Inc.
An OTC-listed software developer leveraging heavy financing inflows to fund operations despite currently lacking traditional revenue streams.
Key Metrics
Investment Thesis
Bull Case
ASFT presents a turnaround opportunity for investors willing to accept extreme risk, as the company recently turned nominally profitable and has accumulated significant cash reserves relative to its tiny asset base. The ability to generate financing cash flow suggests active investor interest or strategic partnerships that could stabilize operations if revenue models are eventually implemented.
Bear Case
Avoid ASFT due to a fundamentally broken balance sheet where liabilities dwarf assets, resulting in deep negative shareholders' equity. The company has generated zero revenue and faces an enormous deficit in retained earnings, making it nearly impossible to achieve sustainable operational profitability without a complete business model overhaul.
About Appsoft Technologies, Inc.
Appsoft Technologies, Inc. (ASFT) is a software development entity operating within the OTC markets, focusing on custom software solutions and technology services. The company has recently reported nominal net profits of $60k in 2024 following years of negligible or slight losses, driven by significant financing activities rather than operational revenue generation. With minimal current assets and substantial long-term liabilities, the firm relies heavily on capital raises to sustain its operations.
Analysis
Management Discussion
The company posted a surprising net profit of $60,846 in 2024, yet this figure is heavily skewed by negative operating cash flow of -$52,492 and zero revenue. Management has secured $52,585 in financing cash flows which contrasts sharply with the company's total liabilities of $478,736, indicating a precarious balance sheet where equity is deeply negative at -$478,635.
Industry Overview
The software development industry is highly competitive and typically requires consistent revenue streams from recurring contracts or product sales to maintain solvency. Most profitable companies in this sector maintain positive working capital and healthy operating cash flows, which ASFT currently lacks entirely.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $0 | $0 | $0 |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $0 | $0 | $0 |
| Operating Expenses | $31.4K | $58.3K | $60.8K |
| Operating Income | $-31.4K | $-58.3K | $-60.8K |
| G&A | $10.7K | $7.6K | $8.1K |
| D&A | $0 | — | — |
| Other OpEx | $20.8K | $50.7K | $52.8K |
| Non-Operating Income | $0 | $0 | $0 |
| Interest Expense | $6.3K | $7.4K | $8.4K |
| Interest Income | — | — | $1 |
| Pre-Tax Income | $-31.4K | $-58.3K | $-60.8K |
| Income Tax | $0 | $0 | $0 |
| Continuing Ops | $-31.4K | $-58.3K | $-60.8K |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-31.4K | $-58.3K | $60.8K |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-31.4K | $-58.3K | $60.8K |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $6 | $8 | $101 |
| Accounts Receivable | $0 | $0 | $0 |
| Other Current Assets | $6 | $8 | $101 |
| Long-Term Assets | $0 | $0 | $0 |
| Total Assets | $6 | $8 | $101 |
| Current Liabilities | $41.2K | $27.8K | $36.2K |
| Long-Term Liabilities | $328.7K | $392.5K | $442.5K |
| Total Liabilities | $369.9K | $420.4K | $478.7K |
| Shareholders' Equity | $-369.9K | $-420.4K | $-478.6K |
| Paid-In Capital | $491.5K | $533.9K | $536.4K |
| Retained Earnings | $-904.4K | $-954.9K | $-1.0M |
| Total L&E | $5 | $8 | $101 |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $-31.4K | $-58.3K | $60.8K |
| Non-Cash Adjustments | $6.3K | $7.4K | $-129.6K |
| Working Capital Changes | $0 | $-12.9K | $16.3K |
| Cash from Operations | $-25.1K | $-63.8K | $-52.5K |
| Cash from Investing | $0 | $0 | $0 |
| Cash from Financing | $24.8K | $63.8K | $52.6K |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-319 | $3 | $93 |
| Beginning Cash | $325 | $5 | $8 |
| Ending Cash | $6 | $8 | $101 |
Frequently Asked Questions
How does Appsoft Technologies, Inc. make money?
Custom Software Development, Technology Consulting Services, and Strategic Capital Raising Initiatives
What are the main risks for ASFT?
Severe liquidity crisis with current liabilities exceeding assets by nearly $478k, complete absence of revenue generation in the latest reporting period, reliance on non-operating cash flows, and a massive retained earnings deficit of approximately $1M.
What is ASFT's competitive advantage?
Agile adaptation to market needs through custom builds, low overhead structure allowing for high net income on paper, and access to significant paid-in capital of over $536k.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.