RPMT 10-Q Quarter ended Sept. 30, 2025

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 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, 2025
☐	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 0-53944

REGO PAYMENT ARCHITECTURES, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware		35-2327649
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)
325 Sentry Parkway , Suite 200
Blue Bell , PA		19422
(Address of Principal Executive Offices)		(Zip Code)
(267) 465-7530
(Registrant’s Telephone Number, Including Area Code)
(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 (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth 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 ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 136,586,403 shares of common stock outstanding at November 14, 2025.

TABLE OF CONTENTS

		Page
PART I - FINANCIAL INFORMATION
Cautionary Note Regarding Forward-Looking Statements		3
ITEM 1.	Financial Statements	4
Condensed Consolidated Balance Sheets (Unaudited)		5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited)		6
Condensed Consolidated Statements of Changes in Stockholders’ Deficit (Unaudited)		7
Condensed Consolidated Statements of Cash Flows (Unaudited)		8
Notes to Condensed Consolidated Financial Statements (Unaudited)		9
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	24
ITEM 4.	Controls and Procedures	24
PART II - OTHER INFORMATION
ITEM 1.	Legal Proceedings	24
ITEM 1A.	Risk Factors	24
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	24
ITEM 3.	Defaults Upon Senior Securities	25
ITEM 4.	Mine Safety Disclosures	25
ITEM 5.	Other Information	25
ITEM 6.	Exhibits	25
SIGNATURES		26

PART I - FINANCIAL INFORMATION

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q 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”). All statements other than statements of historical facts included or incorporated by reference in this Quarterly Report on Form 10-Q, including without limitation, statements regarding our future financial position, business strategy, budgets, projected revenues, projected costs and plans and objectives of management for future operations, are forward-looking statements. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “expects,” “intends,” “plans,” “projects,” “estimates,” “anticipates,” “believes,” “contemplates,” “targets,” “could,” “would” or “should” or the negative thereof or any variation thereon or similar terminology or expressions. Management cautions readers not to place undue reliance on any of the Company’s forward-looking statements, which speak only as of the date made.

We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are not guarantees and are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from our expectations include, but are not limited to: our ability to raise additional capital, the absence of any material operating history or revenue, our ability to attract and retain qualified personnel, our ability to develop and introduce a new service and products to the market in a timely manner, market acceptance of our services and products, our limited experience in the industry, the ability to successfully develop licensing programs and generate business, rapid technological change in relevant markets, unexpected network interruptions or security breaches, the ability to successfully complete our strategic alternatives process, changes in demand for current and future intellectual property rights, legislative, regulatory and competitive developments, intense competition with larger companies, general economic conditions, and other risks discussed in Part I – Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the Securities and Exchange Commission (the “SEC”), and the Company’s other subsequent filings with the SEC.

All subsequent written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by the foregoing. The Company has no obligation to and does not undertake to update, revise, or correct any of these forward-looking statements after the date of this report.

ITEM 1. FINANCIAL STATEMENTS

Rego Payment Architectures, Inc.

CONTENTS

	PAGE
CONDENSED CONSOLIDATED BALANCE SHEETS	5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS	6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT	7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS	8
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	9 to 17

Rego Payment Architectures, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

		September 30, 2025				December 31, 2024
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	1,691,485			$	3,011,493
Prepaid expenses			74,000				50,000
Deposits			341				341
TOTAL CURRENT ASSETS			1,765,826				3,061,834
OTHER ASSETS
Patents and trademarks, net of accumulated amortization of $ 399,335 and $ 369,550			262,319				286,897
			262,319				286,897
TOTAL ASSETS		$	2,028,145			$	3,348,731
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts payable and accrued expenses		$	9,199,907			$	8,470,575
Accounts payable and accrued expenses - related parties			18,154				6,519
Loans payable			42,600				42,600
10% secured convertible notes payable - stockholders			6,141,237				3,036,237
Notes payable - stockholders			595,000				595,000
4% secured convertible notes payable - stockholders			14,981,250				14,981,250
Preferred stock dividend liability			16,090,210				13,973,422
TOTAL CURRENT LIABILITIES			47,068,358				41,105,603
CONTINGENCIES
STOCKHOLDERS' DEFICIT
Preferred stock, $ .0001 par value; 2,000,000 preferred shares authorized; 195,500 preferred shares Series A authorized; 98,350 shares issued and outstanding at September 30, 2025 and December 31, 2024			10				10
Preferred stock, $ .0001 par value; 2,000,000 preferred shares authorized; 397,222 and 347,222 preferred shares Series B authorized at September 30, 2025 and December 31, 2024; 281,169 shares issued and outstanding at September 30, 2025 and December 31, 2024			29				29
Preferred stock, $ .0001 par value; 2,000,000 preferred shares authorized; 300,000 preferred shares Series C authorized; 0 shares issued and outstanding at September 30, 2025 and December 31, 2024			-				-
Common stock, $ .0001 par value; 230,000,000 shares authorized; 136,586,403 and 136,248,105 shares issued and outstanding at September 30, 2025 and December 31, 2024			13,659				13,625
Additional paid in capital			112,081,015				109,973,586
Accumulated deficit			( 157,134,926	)			( 147,744,122	)
STOCKHOLDERS' DEFICIT			( 45,040,213	)			( 37,756,872	)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT		$	2,028,145			$	3,348,731

See the accompanying notes to the condensed consolidated financial statements.

Rego Payment Architectures, Inc.

Condensed Consolidated Statements of Comprehensive Loss

(Unaudited)

		For the Three Months Ended								For the Nine Months Ended
		September 30,								September 30,
		2025				2024				2025				2024
NET REVENUE		$	-			$	-			$	-			$	-
OPERATING EXPENSES
Transaction expense			40,057				86,955				162,525				287,288
Sales and marketing			204,011				116,605				433,152				526,065
Product development			808,782				912,706				2,230,764				2,592,996
General and administrative			1,067,569				810,411				3,708,707				2,961,321
Total operating expenses			2,120,419				1,926,677				6,535,148				6,367,670
NET OPERATING LOSS			( 2,120,419	)			( 1,926,677	)			( 6,535,148	)			( 6,367,670	)
OTHER INCOME (EXPENSE)
Other income			-				-				60,176				-
Interest expense, net			( 296,764	)			( 247,310	)			( 799,042	)			( 741,461	)
			( 296,764	)			( 247,310	)			( 738,866	)			( 741,461	)
NET LOSS			( 2,417,183	)			( 2,173,987	)			( 7,274,014	)			( 7,109,131	)
LESS: Accrued preferred dividends			( 707,591	)			( 704,599	)			( 2,116,788	)			( 2,001,033	)
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS		$	( 3,124,774	)		$	( 2,878,586	)		$	( 9,390,802	)		$	( 9,110,164	)
BASIC AND DILUTED NET LOSS PER COMMON SHARE		$	( 0.02	)		$	( 0.02	)		$	( 0.07	)		$	( 0.07	)
BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING			136,262,975				136,148,105				136,253,080				135,998,654

See the accompanying notes to the condensed consolidated financial statements.

Rego Payment Architectures, Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Deficit

For the Three and Nine Months Ended September 30, 2025 and September 30, 2024

(Unaudited)

		Preferred								Preferred								Preferred								Common
		Stock Series A								Stock Series B								Stock Series C								Stock								Additional
		Number of								Number of								Number of								Number of								Paid-In				Accumulated
		Shares				Amount				Shares				Amount				Shares				Amount				Shares				Amount				Capital				Deficit				Total
Balance, December 31, 2024			98,350			$	10				281,169			$	29				-			$	-				136,248,105			$	13,625			$	109,973,586			$	( 147,744,122	)		$	( 37,756,872	)
Share-based compensation			-				-				-				-				-				-				-				-				1,137,497				-				1,137,497
Accrued preferred dividends			-				-				-				-				-				-				-				-				-				( 704,600	)			( 704,600	)
Net loss			-				-				-				-				-				-				-				-				-				( 2,743,488	)			( 2,743,488	)
Balance, March 31, 2025			98,350			$	10				281,169			$	29				-			$	-				136,248,105			$	13,625			$	111,111,083			$	( 151,192,210	)		$	( 40,067,463	)
Share-based compensation			-				-				-				-				-				-				-				-				41,850				-				41,850
Accrued preferred dividends			-				-				-				-				-				-				-				-				-				( 704,599	)			( 704,599	)
Net loss			-				-				-				-				-				-				-				-				-				( 2,113,343	)			( 2,113,343	)
Balance, June 30, 2025			98,350			$	10				281,169			$	29				-			$	-				136,248,105			$	13,625			$	111,152,933			$	( 154,010,152	)		$	( 42,843,555	)
Conversion of 10 % secured convertible notes into Series B Preferred Stock			-				-				3,383				1				-				-				-				-				304,467				-				304,468
Conversion of Series B Preferred Stock into common stock			-				-				( 3,383	)			( 1	)			-				-				338,298				34				( 33	)			-				-
Share-based compensation			-				-				-				-				-				-				-				-				623,648				-				623,648
Accrued preferred dividends			-				-				-				-				-				-				-				-				-				( 707,591	)			( 707,591	)
Net loss			-				-				-				-				-				-				-				-				-				( 2,417,183	)			( 2,417,183	)
Balance, September 30, 2025			98,350			$	10				281,169			$	29				-			$	-				136,586,403			$	13,659			$	112,081,015			$	( 157,134,926	)		$	( 45,040,213	)

		Preferred								Preferred								Preferred								Common
		Stock Series A								Stock Series B								Stock Series C								Stock								Additional
		Number of								Number of								Number of								Number of								Paid-In				Accumulated
		Shares				Amount				Shares				Amount				Shares				Amount				Shares				Amount				Capital				Deficit				Total
Balance, December 31, 2023			98,350			$	10				234,403			$	24				-			$	-				135,848,105			$	13,585			$	104,707,296			$	( 136,110,967	)		$	( 31,390,052	)
Conversion of 10 % secured convertible notes into Series B Preferred Stock			-				-				5,399				1				-				-				-				-				485,893				-				485,894
Share-based compensation			-				-				-				-				-				-				-				-				114,522				-				114,522
Accrued preferred dividends			-				-				-				-				-				-				-				-				-				( 630,140	)			( 630,140	)
Net loss			-				-				-				-				-				-				-				-				-				( 2,291,463	)			( 2,291,463	)
Balance, March 31, 2024			98,350			$	10				239,802			$	25				-			$	-				135,848,105			$	13,585			$	105,307,711			$	( 139,032,570	)		$	( 33,711,239	)
Sale of Series B Preferred Stock			-				-				41,367				4				-				-				-				-				3,723,016				-				3,723,020
Issuance of common stock to board members and employees			-				-				-				-				-				-				300,000				30				307,470				-				307,500
Share-based compensation			-				-				-				-				-				-				-				-				395,063				-				395,063
Accrued preferred dividends			-				-				-				-				-				-				-				-				-				( 666,296	)			( 666,296	)
Net loss			-				-				-				-				-				-				-				-				-				( 2,643,681	)			( 2,643,681	)
Balance, June 30, 2024			98,350			$	10				281,169			$	29				-			$	-				136,148,105			$	13,615			$	109,733,260			$	( 142,342,547	)		$	( 32,595,633	)
Fair value of options for services			-				-				-				-				-				-				-				-				141,336				-				141,336
Accrued preferred dividends			-				-				-				-				-				-				-				-				-				( 704,599	)			( 704,599	)
Net loss			-				-				-				-				-				-				-				-				-				( 2,173,987	)			( 2,173,987	)
Balance, September 30, 2024			98,350			$	10				281,169			$	29				-			$	-				136,148,105			$	13,615			$	109,874,596			$	( 145,221,133	)		$	( 35,332,883	)

See the accompanying notes to the condensed consolidated financial statements.

Rego Payment Architectures, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

		For the Nine Months Ended September 30,
		2025				2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss		$	( 7,274,014	)		$	( 7,109,131	)
Adjustments to reconcile net loss to net cash used in operating activities:
Fair value of common stock issued in exchange for services			-				307,500
Share-based compensation			1,802,995				650,921
Amortization			29,785				29,519
Decrease in assets
Prepaid expenses			( 24,000	)			( 31,678	)
Increase in liabilities
Accounts payable and accrued expenses			833,798				636,337
Accounts payable and accrued expenses - related parties			11,635				13,153
Net cash used in operating activities			( 4,619,801	)			( 5,503,379	)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in patents			( 5,207	)			( 1,118	)
Net cash used in investing activities			( 5,207	)			( 1,118	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale of 10 % secured convertible notes payable - stockholders			3,305,000				-
Proceeds from sale of Series B Preferred Stock			-				3,723,021
Net cash provided by financing activities			3,305,000				3,723,021
DECREASE IN CASH AND CASH EQUIVALENTS			( 1,320,008	)			( 1,781,476	)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD			3,011,493				6,256,634
CASH AND CASH EQUIVALENTS - END OF PERIOD		$	1,691,485			$	4,475,158
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during period for:
Interest		$	-			$	-
Income taxes		$	-			$	-
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:
Accrued preferred dividends		$	2,116,788			$	2,001,033
Conversion of 10 % secured convertible note payable and accrued interest into 3,383 and 5,399 shares of Series B Preferred Stock		$	304,467			$	485,893

See the accompanying notes to the condensed consolidated financial statements.

Rego Payment Architectures, Inc.

Notes to Condensed Consolidated Financial Statements

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of the Business

REGO Payment Architectures, Inc. (“REGO”) was incorporated in the state of Delaware on February 11, 2008 .

REGO Payment Architectures, Inc. and its subsidiaries (collectively, except where the context requires, the “Company”) is a provider of consumer software that delivers a mobile payment platform solution—Mazoola® - a family focused mobile banking solution. Headquartered in Blue Bell, Pennsylvania, the Company maintains a portfolio of trade secrets and four US patent awards. REGO offers an all-digital financial payments platform (the “Platform”) to enable minors, particularly under 13 years old, to purchase goods and services, complete chores and learn in a secure online environment guided by parental permission, oversight, and control, while remaining Children’s Online Privacy Protection Act (“COPPA”) and General Data Protection Regulation (“GDPR”) compliant.

Management believes that building on its COPPA advantage, the future of REGO Payment Architectures, Inc. will be based on the foundational architecture of the Platform that will allow its use across multiple financial markets where secure controlled payments are needed. The Company intends to license in each alternative field of use the ability for its partners, distributors and/or value-added resellers to private label each of the alternative markets. These partners would deploy, customize and support each implementation under their own label, but with acknowledgement of the Company’s proprietary intellectual assets as the base technology. Management believes this approach will enable the Company to reduce expenses while broadening its reach.

Revenues generated from the Platform will come from multiple sources depending on the level of service and facilities requested by the parent. The Company’s model contemplates levels of subscription revenue paid monthly, service fees, transaction fees and revenue sharing and licensing with banking and distribution partners.

The Company’s principal office is located in Blue Bell, Pennsylvania.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). These statements include all adjustments (consisting only of normal recurring adjustments) which management believes necessary for a fair presentation of the financial statements and have been prepared on a consistent basis using the accounting policies described in the summary of accounting policies included in the Company’s 2024 Annual Report on Form 10-K (the “Form 10-K”). All significant intercompany transactions and balances have been eliminated in consolidation. Certain information and note disclosures normally included in the financial statements prepared in accordance with US GAAP have been condensed, or omitted pursuant to such rules and regulations, although the Company believes that the accompanying disclosures are adequate to make the information presented not misleading. The accompanying unaudited financial statements should be read in conjunction with the financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the SEC. Operating results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

The Company’s activities are subject to significant risks and uncertainties, including failing to secure additional financing to operationalize the Company’s current technology before another company develops or markets similar technology to compete with the Company.

Recently Adopted Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities to disclose significant segment expenses and other segment items on an interim and annual basis and provide in interim periods all disclosures about a reportable segment's profit or loss and assets that are currently required annually. The ASU does not change how a public entity identifies its operating segments, aggregates them, or applies the quantitative threshold to determine its reportable segments. The new disclosure requirements are also applicable to entities that account and report as a single operating segment entity. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. The Company adopted the guidance for the annual reporting period ended December 31, 2024. There was no impact on the Company’s reportable segments identified and additional required disclosures have been included in Note 15, Segment Reporting.

Recently Issued Accounting Pronouncements Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures which requires public entities to disclose specific categories in the effective tax rate reconciliation, as well as expanded disclosures on income taxes paid by jurisdictions. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact related to the adoption of ASU 2023-09 on its consolidated financial statement disclosures.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (Topic 220), which requires disclosure in the notes to financial statements about specific types of expenses included in the expense captions presented on the face of the statement of operations. The requirements of the ASU are effective for annual periods beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The requirements will be applied prospectively with the option for retrospective application. The Company is currently evaluating the impact related to the adoption of ASU 2024-03 on its consolidated financial statement disclosures.

NOTE 2 – MANAGEMENT PLANS

The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred significant losses and experienced negative cash flow from operations since inception. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Since inception, the Company has focused on developing and implementing its business plan. The Company believes that its existing cash resources will not be sufficient to sustain operations during the next twelve months. The Company currently needs to generate revenue in order to sustain its operations. In the event that the Company cannot generate sufficient revenue to sustain its operations, the Company will need to reduce expenses or obtain financing through the sale of debt and/or equity securities. The issuance of additional equity would result in dilution to existing shareholders. If the Company is unable to obtain additional funds when they are needed or if such funds cannot be obtained on terms acceptable to the Company, the Company would be unable to execute upon the business plan or pay costs and expenses as they are incurred, which would have a material, adverse effect on the business, financial condition and results of operations.

The Company’s current monetization model is to derive revenues from levels of service fees, transaction fees and in some cases, revenue sharing with banking and distribution partners. As these bases of revenues grow, the Company expects to generate additional revenue to support operations.

As of November 14, 2025, the Company has a cash position of approximately $ 1,000,000 . Based upon the current cash position and the Company’s planned expense run rate, management believes the Company has funds currently to finance its operations through December 2025.

NOTE 3 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES - RELATED PARTIES

As of September 30, 2025 and December 31, 2024, the Company owed the Chief Executive Officer, who is also a more than 5 % beneficial owner, a total of $ 12,308 and $ 4,327 in unpaid salary.

As of September 30, 2025 and December 31, 2024, the Company owed the Chief Financial Officer a total of $ 5,846 and $ 2,192 in unpaid salary.

NOTE 4 – LOANS PAYABLE

Loans payable as of September 30, 2025 and December 31, 2024 were $ 42,600 . Interest accrued on the loans at 6 % and 10 % was $ 14,917 and $ 12,701 as of September 30, 2025 and December 31, 2024. Interest expense related to these loans payable was $ 747 and $ 2,216 for the three months and nine months ended September 30, 2025 and $ 747 and $ 2,224 for the three and nine months ended September 30, 2024. There is no collateral associated with these loans.

NOTE 5 – 10% SECURED CONVERTIBLE NOTES PAYABLE - STOCKHOLDERS

On March 6, 2015, the Company, pursuant to a Securities Purchase Agreement (the “Purchase Agreement”), issued $ 2,000,000 aggregate principal amount of its 10 % Secured Convertible Promissory Notes due March 5, 2016 (the “Notes”) to certain stockholders. On May 11, 2015, the Company issued an additional $ 940,000 of Notes to stockholders. In June 2025, the Company issued an additional $ 2,000,000 of Notes to stockholders. In August and September 2025, the Company issued an additional $ 1,305,000 of Notes to stockholders. The maturity dates of the Notes have been extended most recently from December 31, 2024 to April 30, 2025 , with the consent of the Note holders. An additional extension was provided by the Note holders on April 30, 2025. This extended the maturity date until May 31, 2025, with a provision stipulating that unless previously repaid in full such date shall be automatically extended on a month-to-month basis thereafter unless the Note holder submits notification in writing to the contrary.

The Notes are convertible by the holders, at any time, into shares of the Company’s Series B Preferred Stock at a conversion price of $ 90.00 per share, subject to adjustment for stock splits, stock dividends and similar transactions with respect to the Series B Preferred Stock only. Each share of Series B Preferred Stock is currently convertible into 100 shares of the Company’s common stock at a current conversion price of $ 0.90 per share, subject to anti-dilution adjustment as described in the Certificate of Designation of the Series B Preferred Stock. See Note 9 for additional information regarding the Series B Preferred Stock. In addition, pursuant to the terms of a Security Agreement entered into on May 11, 2015 by and among the Company, the Note holders and a collateral agent acting on behalf of the Note holders (the “Security Agreement”), the Notes are secured by a lien against substantially all of the Company’s business assets. Pursuant to the Purchase Agreement, the Company also granted piggyback registration rights to the holders of the Series B Preferred Stock upon a conversion of the Notes.

The Notes are recorded as a current liability as of September 30, 2025 and December 31, 2024 in the amount of $ 6,141,237 and $ 3,036,237 , respectively. Interest accrued on the Notes was $ 3,153,542 and $ 2,940,724 as of September 30, 2025 and December 31, 2024. Interest expense related to these Notes payable was $ 136,230 and $ 297,083 for the three and nine months ended September 30, 2025 and $ 75,906 and $ 227,718 for the three and nine months ended September 30, 2024.

During the nine months ended September 30, 2025, a 10 % Secured Convertible Noteholder converted $ 200,000 of principal plus $ 104,468 of accrued interest into 3,383 shares of Series B Preferred Stock.

NOTE 6 – NOTES PAYABLE – STOCKHOLDERS

These notes payable have no formal repayment terms and $ 370,000 of the notes bear interest at 10 % per annum and the remaining $ 225,000 of the notes bear interest at 20 % per annum.

These notes payable are recorded as a current liability as of September 30, 2025 and December 31, 2024 in the amount of $ 595,000 . Interest accrued on the notes as of September 30, 2025 and December 31, 2024 was $ 505,807 and $ 443,952 . Interest expense, including accretion of discounts, and warrants issued related to these notes payable was $ 20,845 and $ 61,855 for the three and nine months ended September 30, 2025 and $ 22,330 and $ 63,567 for the three and nine months ended September 30, 2024.

NOTE 7 – 4% SECURED CONVERTIBLE NOTES PAYABLE - STOCKHOLDERS

On August 26, 2016, the Company, pursuant to a Securities Purchase Agreement, issued $ 600,000 aggregate principal amount of its 4.0 % Secured Convertible Promissory Notes due June 30, 2019 (the “New Secured Notes”) to certain accredited investors (“investors”). The Company issued additional New Secured Notes during the years 2016 through 2022.

The New Secured Notes are convertible by the holders, at any time, into shares of the Company’s authorized Series C Cumulative Convertible Preferred Stock (“Series C Preferred Stock”) at a conversion price of $ 90.00 per share, subject to adjustment for stock splits, stock dividends and similar transactions with respect to the Series C Preferred Stock only. Each share of Series C Preferred Stock is currently convertible into 100 shares of the Company’s common stock at a current conversion price of $ 0.90 per share, subject to full ratchet anti-dilution adjustment for one year and weighted average anti-dilution adjustment thereafter, as described in the Certificate of Designation of the Series C Preferred Stock. The New Secured Notes are secured by a lien against substantially all of the Company’s business assets. Upon a liquidation event, the Company shall first pay to the holders of the Series C Preferred Stock, on a pari passu basis with the holders of the Company’s outstanding Series A Preferred Stock and Series B Preferred Stock, an amount per share equal to 700 % of the conversion price (i.e., $ 630.00 per share of Series C Preferred Stock), plus all accrued and unpaid dividends on each share of Series C Preferred Stock (the “Series C Preference Amount”). The Series C Preference Amount shall be paid prior and in preference to payment of any amounts to the Common Stock. After the payment of all preferential amounts required to be paid to the holders of shares of Series C Preferred Stock, Series A Preferred Stock, Series B Preferred Stock and any additional senior preferred stock, the Series C Preferred Stock participates in further distributions subject to an aggregate cap of seven and one-half times (7.5x) the original issue price thereof, plus all accrued and unpaid dividends.

The maturity dates of the New Secured Notes were extended by the investors most recently to April 30, 2025. An additional extension was provided by the New Secured Note holders on April 30, 2025. This extended the maturity date until May 31, 2025 , with a provision stipulating that unless previously repaid in full such date shall be automatically extended on a month-to-month basis thereafter unless the New Secured Note holder submits notification in writing to the contrary.

The New Secured Notes are recorded as a current liability in the amount of $ 14,981,250 as of September 30, 2025 and December 31, 2024. Interest accrued on the New Secured Notes was $ 3,798,386 and $ 3,348,949 , as of September 30, 2025 and December 31, 2024. Interest expense, including accretion of discounts related to these New Secured Notes was $ 149,813 and $ 449,437 for the three and nine months ended September 30, 2025 and September 30, 2024.

NOTE 8 – INCOME TAXES

Income tax expense was $0 for the three and nine months ended September 30, 2025 and 2024.

As of January 1, 2025, the Company had no unrecognized tax benefits, and accordingly, the Company did not recognize interest or penalties during 2024 related to unrecognized tax benefits. There has been no change in unrecognized tax benefits during the three and nine months ended September 30, 2025, and there was no accrual for uncertain tax positions as of September 30, 2025. Tax years from 2021 through 2024 remain subject to examination by major tax jurisdictions.

There is no income tax benefit for the losses for the three and nine months ended September 30, 2025 and 2024, since management has determined that the realization of the net tax deferred asset is not assured and has created a valuation allowance for the entire amount of such benefits.

NOTE 9 – CONVERTIBLE PREFERRED STOCK

Rego Payment Architectures, Inc. Series A Preferred Stock

The Series A Preferred Stock has a preference in liquidation equal to two times its original issue price, or $ 19,670,000 , to be paid out of assets available for distribution prior to holders of common stock and thereafter participates with the holders of common stock in any remaining proceeds subject to an aggregate cap of 2.5 times its original issue price. The Series A Preferred Stockholders may cast the number of votes equal to the number of whole shares of common stock into which the shares of Series A Preferred Stock can be converted. The Series A Preferred Stock also contains customary approval rights with respect to certain matters. The Series A Preferred Stock accrues dividends at the rate of 8 % per annum or $ 8.00 per Series A Preferred Share.

The conversion price of Series A Preferred Stock is currently $ 0.90 per share. The Series A Preferred Stock is subject to mandatory conversion if certain registration or related requirements are satisfied and the average closing price of the Rego’s common stock exceeds 2.5 times the conversion price over a period of twenty consecutive trading days.

Rego Payment Architectures, Inc. Series B Preferred Stock

The Series B Preferred Stock is pari passu with the Series A Preferred Stock and has a preference in liquidation equal to two times its original issue price, or $ 50,610,420 as of September 30, 2025, to be paid out of assets available for distribution prior to holders of common stock and thereafter participates with the holders of common stock in any remaining proceeds subject to an aggregate cap of 2.5 times its original issue price. The Series B Preferred Stockholders may cast the number of votes equal to the number of whole shares of common stock into which the shares of Series B Preferred Stock can be converted. The Series B Preferred Stock also contains customary approval rights with respect to certain matters. The Series B Preferred Stock accrues dividends at the rate of 8 % per annum or $ 7.20 per Series B Preferred Share.

The conversion price of the Series B Preferred Stock is currently $ 0.90 per share. The Series B Preferred Stock is subject to mandatory conversion if certain registration or related requirements are satisfied and the average closing price of the Company’s common stock exceeds 2.5 times the conversion price over a period of twenty consecutive trading days.

During the nine months ended September 30, 2025, a Series B Preferred Stockholder converted 3,383 shares of Series B Preferred Stock into 338,298 shares of the Company’s common stock.

During the nine months ended September 30, 2025 and 2024, the Company sold 0 and 41,367 shares of the Company’s Series B Preferred Stock in private placements to accredited investors and received proceeds of $0 and $ 3,723,021 .

Rego Payment Architectures, Inc. Series C Preferred Stock

In August 2016, Rego authorized 150,000 shares of Rego’s Series C Cumulative Convertible Preferred Stock (“Series C Preferred Stock”). On August 23, 2021, Rego filed with the Delaware Secretary of State an Amendment to Certificate of Designation of Preferences, Rights and Limitations of Series C Cumulative Convertible Preferred Stock, pursuant to which the amount of authorized Series C Preferred Stock was increased from 150,000 shares to 300,000 shares. As of September 30, 2025, none of the Series C Preferred Stock was issued or outstanding. After the date of issuance of Series C Preferred Stock, dividends at the rate of $ 7.20 per share will begin accruing and will be cumulative. The Series C Preferred Stock is pari passu with the Series A Preferred Stock and Series B Preferred Stock and has a preference in liquidation equal to seven times its original issue price to be paid out of assets available for distribution prior to holders of common stock and thereafter participates with the holders of common stock in any remaining proceeds subject to an aggregate cap of 7.5 times its original issue price. The Series C Preferred Stockholders may cast the number of votes equal to the number of whole shares of common stock into which the shares of Series C Preferred Stock can be converted. The Series C Preferred Stock also contains customary approval rights with respect to certain matters. There are no outstanding Series C Preferred Shares, therefore the current per annum dividend per share is $ 0 .

As of September 30, 2025, the value of the cumulative 8 % dividends for all Rego preferred stock was $ 16,090,210 . Such dividends will be paid when and if declared payable by Rego’s board of directors or upon the occurrence of certain liquidation events. In accordance with FASB ASC 260-10-45-11, the Company has recorded these accrued dividends as a current liability.

NOTE 10 – STOCKHOLDERS’ EQUITY

On February 22, 2024, the Company engaged a merchant bank in a consultative capacity to advise on capital funding and strategic initiatives which include the prospective sale of the Company. The Company had agreed to pay a fee equal to 1.5 % of the transaction value upon closing. On March 18, 2025, the Company terminated this agreement due to the incapacity of the principal of the merchant bank.

On May 7, 2025, the Company engaged a new investment banker to advise on capital funding and strategic alternatives which include the prospective sale of the Company. The Company agreed to pay a fee equal to 1.75 % or 2.00 % of the transaction value upon closing, which is dependent upon the aggregate consideration received. There is a minimum fee threshold amount of $ 1,000,000 . No fees were paid to this new investment banker during the nine months ended September 30, 2025.

Option Amendments and Adjustments

On February 6, 2025, the Board of Directors approved amendments extending the term of certain outstanding options to purchase in the aggregate 4,072,875 shares of common stock of the Company at exercise prices ranging from $ 0.90 to $ 1.48 per share. These options were scheduled to expire in the first and second quarter of 2025 and the expiration date of each such option was extended to December 31, 2026. The increase in fair value of this term extension was $ 1,137,256 which was expensed during the nine months ended September 30, 2025. The Company used the Black-Scholes option pricing model to calculate the increase in fair value, with the following assumptions for the extended options: no dividend yield, expected volatility of 63.0 %, risk free interest rate of 4.21 %, and expected option life of 1.9 years.

On May 1, 2025, the Board of Directors approved amendments extending the term of certain outstanding options to purchase in the aggregate 150,000 shares of common stock of the Company at exercise prices ranging from $ 1.30 to $ 1.40 per share. These options were scheduled to expire in May 2025 and the expiration date of each such option was extended to December 31, 2026. The increase in fair value of this term extension was $ 16,535 which was expensed during the nine months ended September 30, 2025. The Company used the Black-Scholes option pricing model to calculate the increase in fair value, with the following assumptions for the extended options: no dividend yield, expected volatility of 67.2 %, risk free interest rate of 3.70 %, and expected option life of 1.7 years.

On July 30, 2025, the Board of Directors approved amendments extending the term of certain outstanding options to purchase in the aggregate 1,305,000 shares of common stock of the Company at exercise prices ranging from $ 0.25 to $ 1.05 per share. These options were scheduled to expire in July and August 2025 and the expiration date of each such option was extended to December 31, 2027. The increase in fair value of this term extension was $ 226,656 which was expensed during the three and nine months ended September 30, 2025. The Company used the Black-Scholes option pricing model to calculate the increase in fair value, with the following assumptions for the extended options: no dividend yield, expected volatility of 74.7 %, risk free interest rate of 3.94 %, and expected option life of 2.4 years.

On September 26, 2025, the Board of Directors approved amendments extending the term of certain outstanding options to purchase in the aggregate 75,000 shares of common stock of the Company at an exercise price of $ 1.42 per share. These options were scheduled to expire in October 2025 and the expiration date of each such option was extended to December 31, 2027. The increase in fair value of this term extension was $ 4,014 which was expensed during the three and nine months ended September 30, 2025. The Company used the Black-Scholes option pricing model to calculate the increase in fair value, with the following assumptions for the extended options: no dividend yield, expected volatility of 77.1 %, risk free interest rate of 3.55 %, and expected option life of 2.3 years

Issuance of Restricted Shares

A restricted stock award (“RSA”) is an award of common shares that is subject to certain restrictions during a specified period. Restricted stock awards are independent of option grants and are generally subject to forfeiture if employment terminates prior to the release of the restrictions. The grantee cannot transfer the shares before the restricted shares vest. Shares of nonvested restricted stock have the same voting rights as common stock, are entitled to receive dividends and other distributions thereon and are considered to be currently issued and outstanding. The Company’s restricted stock awards generally vest over a period of one year . The Company expenses the cost of the restricted stock awards, which is determined to be the fair market value of the shares at the date of grant, straight-line over the period during which the restrictions lapse. For these purposes, the fair market value of the restricted stock is determined based on the closing price of the Company’s common stock on the grant date. There were no RSAs granted during the three and nine months ended September 30, 2025.

NOTE 11 – STOCK OPTIONS

During 2008, the Board of Directors (“Board”) of the Company adopted the 2008 Equity Incentive Plan (“2008 Plan”) that was approved by the stockholders. Under the 2008 Plan, the Company was authorized to grant options to purchase up to 25,000,000 shares of common stock to any officer, other employee or director of, or any consultant or other independent contractor who provides services to the Company. The 2008 Plan was intended to permit stock options granted to employees under the 2008 Plan to qualify as incentive stock options under Section 422 of the Internal Revenue Code of 1986, as amended (“Incentive Stock Options”). All options granted under the 2008 Plan, which were not intended to qualify as Incentive Stock Options are deemed to be non-qualified options (“Non-Statutory Stock Options”). As of September 30, 2025, under the 2008 Plan, options to purchase 200,000 shares of common stock have been issued and are unexercised, and no shares were available for grants under the 2008 Plan. The 2008 Plan expired on March 3, 2019.

During 2013, the Board adopted the 2013 Equity Incentive Plan (“2013 Plan”), which was approved by stockholders at the 2013 annual meeting of stockholders. Under the 2013 Plan, the Company was authorized to grant awards of stock options, restricted stock, restricted stock units and other stock-based awards of up to an aggregate of 5,000,000 shares of common stock to any officer, employee, director or consultant. The 2013 Plan was intended to permit stock options granted to employees under the 2013 Plan to qualify as Incentive Stock Options. All options granted under the 2013 Plan, which were not intended to qualify as Incentive Stock Options are deemed to be Non-Qualified Stock Options. As of September 30, 2025, under the 2013 Plan grants of restricted stock and options to purchase 1,200,000 shares of common stock are unvested or unexercised and no shares of common stock remained available for grants under the 2013 Plan. The 2013 Plan expired on November 18, 2023.

The Company also grants stock options outside the option plans on terms determined by the Board.

In connection with Incentive Stock Options, the exercise price of each option may not be less than 100 % of the fair market value of the common stock on the date of the grant (or 110 % of the fair market value in the case of a grantee holding more than 10 % of the outstanding stock of the Company).

Prior to January 1, 2014, volatility in all instances presented is the Company’s estimate of volatility that is based on the volatility of other public companies that are in closely related industries to the Company. Beginning January 1, 2014, volatility in all instances presented is the Company’s estimate of volatility that is based on the historical volatility of the Company’s common stock.

The following table presents the weighted-average assumptions used to estimate the fair values of the stock options granted by the Company during the nine months ended September 30, 2025:

Risk Free Interest Rate			3.9	%
Expected Volatility			82.1	%
Expected Life (in years)			4.4
Dividend Yield			0	%
Weighted average estimated fair value of options during the period		$	0.22

During the nine months ended September 30, 2025, the Company issued options to purchase 1,899,000 shares of the Company’s common stock to various consultants and employees. The options were valued at $ 418,534 fair value, using the Black-Scholes option pricing model to calculate the grant-date fair value of the options. The fair value of options was expensed immediately.

The following table summarizes the activities for the Company’s stock options for the nine months ended September 30, 2025:

			Options Outstanding
											Weighted -
											Average
											Remaining				Aggregate
							Weighted-				Contractual				Intrinsic
			Number of				Average				Term				Value
			Shares				Exercise Price				(in years)				(in 000's) (1)
Balance, December 31, 2024			14,133,650			$	0.90				0.8			$	2,232
Granted			1,899,000				0.36				4.2				-
Exercised			-				-				-				-
Expired/Cancelled			( 2,365,000	)			0.54				-				-
Balance, September 30, 2025			13,667,650			$	0.89				1.5			$	253
Exercisable at September 30, 2025 and expected to vest thereafter			13,667,650			$	0.89				1.5			$	253

(1)

The aggregate intrinsic value at September 30, 2025 is calculated as the difference between the exercise price of the underlying options and the closing stock price of $ 0.39 for the Company’s common stock on September 30, 2025.

The Company recognized share-based compensation expense of $ 623,648 and $ 1,802,995 for the three and nine months ended September 30, 2025 and $ 131,497 and $ 650,921 for the three and nine months ended September 30, 2024 with respect to stock options.

As of September 30, 2025, there was $ 0 of unrecognized share-based compensation cost related to outstanding stock options. The difference, if any, between the stock options exercisable at September 30, 2025 and the stock options exercisable and expected to vest relates to management’s estimate of options expected to vest in the future.

NOTE 12 – OPERATING LEASES

For the three and nine months ended September 30, 2025, total rent expense under leases amounted to $ 1,316 and $ 3,972 and for the three and nine months ended September 30, 2024 total rent under leases amounted to $ 1,315 and $ 3,970 . The Company has elected not to recognize right-of-use assets and lease liabilities arising from short-term leases. The Company has no long-term lease obligations as of September 30, 2025.

NOTE 13 – RELATED PARTY TRANSACTIONS

On February 19, 2025, the Chief Executive Officer and the Chief Financial Officer each received cash bonuses of $ 30,000 for a total of $ 60,000 in aggregate.

See Notes 3,5,6, and 7, which also include related party transactions.

NOTE 14 - INVESTOR PRIVATE LINE OF CREDIT

On March 13, 2023, the Company entered into an Investor Private Line of Credit agreement (the “LOC Agreement”) with an existing shareholder of the Company (the “Lender”). Pursuant to this agreement, the Lender may extend unsecured loans to the Company in the amount of up to twenty million dollars ($ 20,000,000 ) which may be drawn upon by the Company for a period of one year in order to provide additional capital to facilitate the Company’s operations. Drawings may be made by the Company as long as there has not been any material change in the operations of the Company. Loans under the LOC Agreement bear interest at the rate of 7 % per annum. Drawings under the LOC Agreement must be repaid in full: (i) upon the execution and completion of a sale, merger or other transaction of the Company whereby the Company transfers its ownership and/or its assets to a third party within thirty (30) days of the completion of the transaction (a “Change of Control”) or (ii) if a Change of Control does not occur within one year from the date of the LOC Agreement, the Company will repay any amounts outstanding within sixty (60) days.

On March 13, 2024, the Company entered into an Amendment to Investor Private Line of Credit (the “Amendment”) with the Lender. The Amendment extended the maturity date of the existing Investor Private Line of Credit Agreement with the Lender by one year, from March 13, 2024 to March 13, 2025. On March 13, 2025, the maturity date of this LOC Agreement was extended again for one year to March 13, 2026.

As of September 30, 2025 the outstanding balance on this LOC Agreement is $0 .

NOTE 15 – SEGMENT REPORTING

The Company manages the business activities on a consolidated basis and operates in one reportable segment. The Company's reportable segment is a family financial solutions platform that safeguards children’s privacy and provides anti-fraud protection for the elderly. The segment is data management and monetization. As the Company has one reportable segment, sales, transaction expense, marketing, product development, and general and administrative expenses are equal to consolidated results.

Financial results for the Company's reportable segment have been prepared using a management approach, which is consistent with the basis and manner in which financial information is evaluated by the Company's Chief Operating Decision Maker ("CODM") in allocating resources and in assessing performance. The Company's CODM is the Chief Executive Officer . The measurement of segment profit or loss that the CODM uses to evaluate the performance of the Company's segment is net income attributable to Rego Payment Architectures, Inc. Financial budgets and actual results used by the CODM to assess performance and allocate resources, as well as strategic decisions related to headcount and other expenditures are reviewed on a consolidated basis. The CODM considers the impact of the significant segment expenses in the table below on net income when deciding where and when to make expenditures.

		For the Three Months Ended								For the Nine Months Ended
		September 30,								September 30,
		2025				2024				2025				2024
NET REVENUE		$	-			$	-			$	-			$	-
OPERATING EXPENSES
Transaction expense			40,057				86,955				162,525				287,288
Sales and marketing			204,011				116,605				433,152				526,065
Product development			808,782				912,706				2,230,764				2,592,996
General and administrative			1,067,569				810,411				3,708,707				2,961,321
Total operating expenses			2,120,419				1,926,677				6,535,148				6,367,670
NET OPERATING LOSS			( 2,120,419	)			( 1,926,677	)			( 6,535,148	)			( 6,367,670	)

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

Overview

REGO Payment Architectures, Inc. is a provider of consumer software that delivers a mobile payment platform— Mazoola® - a family focused mobile banking solution. Headquartered in Blue Bell, Pennsylvania, the Company maintains a portfolio of trade secrets and four US patent awards. REGO offers an all-digital financial payments platform to enable minors, particularly under 13 years old, to transact, complete chores and learn in a secure online environment guided by parental permission, oversight, and control, while remaining COPPA and GDPR compliant.

COPPA applies not only to websites and mobile apps. It can apply to a growing list of connected devices that is included in the Internet of Things. Some of these include toys and products that could collect personal information, such as voice recordings or geolocation information. Non-compliance with COPPA has meant substantial fines for many violators.

Management believes that by building on its COPPA compliance advantage, the future of REGO Payment Architectures, Inc. will be based on the foundational architecture of its software platform (the “Platform”) that will allow its use across multiple financial markets where secure controlled payments are needed. The Company intends to license in each alternative field of use the ability for its partners, distributors and/or value-added resellers to private label each of the alternative markets. These partners would deploy, customize and support each implementation under their own label, but with acknowledgement of the Company’s proprietary intellectual assets as the base technology. Management believes this approach will enable the Company to reduce marketing expenses while broadening its reach.

Further, California passed the California Consumer Privacy Act of 2018 (“CCPA”) on June 28, 2018. CCPA gives consumers (defined as natural citizens who are California residents) four rights relative to their personal information as follows:

●

the right to know, through a general privacy policy and with more specifics available upon request, what personal information a business has collected about them, where it was sourced from, what it is being used for, whether it is being disclosed or sold, and to whom it is being disclosed or sold;

●

the right to “opt out” of allowing a business to sell their personal information to third parties (or, for consumers who are under 16 years old, the right not to have their personal information sold absent their, or their parent’s, opt-in);

●

the right to have a business delete their personal information, with some exceptions; and

●

the right to receive equal service and pricing from a business, even if they exercise their privacy rights under the CCPA.

With respect to the evolving CCPA, the Company has designed its Platform and app to be in compliance.

Additionally, the European Parliament and Council agreed upon the General Data Protection Regulation (“GDPR”) in April 2016, to replace the Data Protection Directive 95/46/EC. This is the primary law regulating how companies protect European Union (“EU”) citizens’ personal data. GDPR became effective on May 25, 2018. Companies that fail to achieve GDPR compliance are subject to severe fines and penalties.

GDPR requirements apply to each member state of the European Union, aiming to create more consistent protection of consumer and personal data across EU nations. Some of the key privacy and data protection requirements of the GDPR include:

●

Requiring the consent of subjects for data processing

●

Anonymizing collected data to protect privacy

●

Providing data breach notifications

●

Safely handling the transfer of data across borders

●

Requiring certain companies to appoint a data protection officer to oversee GDPR compliance

In short, the handling of EU citizens’ data is mandated by GDPR using a baseline set of standards for companies that are designed to better safeguard the processing and movement of personal data. The Company has designed its Platform and app to be in compliance with GDPR, and has received the GDPRkidsTM Trustmark from PRIVO.

We anticipate that revenues generated from the Platform will come from multiple sources depending on the level of service and facilities requested. There would be levels of subscription revenue paid monthly, service fees, transaction fees and in some cases, revenue sharing and licensing with banking and distribution partners.

Our goal, moving forward, is to enable both incumbent and new financial technology (“FinTech”) participants, as well as key verticals with a large base of ‘family accounts,’ to provide their consumers with safe and empowering youth money management and financial literacy content and tools via the mobile payment platform.

While some of the REGO Platform can be easily duplicated/commoditized, such as the app skin, APIs to retailers, APIs to financial infrastructure and cloud storage, we believe that defending our market position rests on three factors:

1.

The ability to define data control settings from parent to child.

Our approach to this opportunity uses a master account to dictate purchase rules to sub-accounts via a hierarchical architecture. This approach adheres to data flow and privacy policy requirements specifically outlined for COPPA compliance. We believe other approaches based on machine learning, or other artificial intelligence methodologies are potentially viable alternatives but are likely too costly, do not meet current compliance timelines, and may defy the core of COPPA’s “opt-in” parameters. There is considerable room for next-generation automation techniques to be layered on REGO’s hierarchical approach. Given its current stability and scalability metrics, the REGO Platform strongly features these advances in its technical development roadmap without compromising any of its current data control performance.

2.

The ability to (mis)attribute the child’s transaction and personal identification.

REGO has solved this issue by masking user data and maintaining separate identity and financial data flows. As a result, REGO can verify the age of the internet user through the transaction lifecycle on its Platform. Authenticating and validating the identity of the actual user on the internet remains one of the more difficult cybersecurity challenges. Current approaches are mainly not for commercial use; however, there is investment in commercial innovation in this area. REGO’s data control features and its (mis)attribution approach are inextricably linked and a key to its scalability and extensibility.

3.

The ability to disseminate transactional data on minors while remaining COPPA and GDPR compliant.

The highest value data will be that which shows the most nuanced detail afforded under current regulations. Without extreme data control features, such as in the REGO Platform, any lesser data precision will be less valuable.

These three factors are all supported by REGO’s patented technology.

REGO addresses hard industry problems such as:

●

COPPA compliant technology with a key component being its ability to verify the age of an internet user

●

A master and sub-account architecture with the ability to administer user-specific controls

●

An advanced rules engine to provide strict automated compliance of the parental rules for each child

●

Near real-time buying behavior database on minors - anonymized geolocation, age range and purchases

Currently, we are targeting established brands with large family-focused account bases — including banks, telecommunication companies, faith-based organizations, media distributors, mobile device Original Equipment Manufacturers (“OEMs”), and merchants.

We are seeking partners that will leverage our Platform to:

Buy vs. Build: Partners can license or revenue share for their specific market or field of use a safe, compliant system, instead of building one on their own.

Safety & Security: Partners can safely engage a younger consumer segment and their families with a new family friendly peer-to-peer-payment approach. Vendors will be explicitly protected from non-compliant transactions and the underlying technology protects the privacy of the user.

Youth Financial Literacy: Partners can expand their brand story around empowerment and education of youth financial literacy while engaging their ‘future customers’ with Gen Z, a digital native population of post-millennial youth.

The REGO Mazoola® app and associated digital wallet technology is designed to enable our partners to engage families with Gen Z and Gen Alpha youths through a money management, transactional and financial literacy platform that enables young people to make smart decisions about the things they value in life — including their money, their time, their ideas and their connections. The Mazoola® app enables a new way for individual users to own and monetize their purchasing behavior that is currently unavailable to them.

In addition, we are analyzing specific components of our technology for individual monetization as well as exploring opportunities in the Business to Business (“B2B”) realm.

Other markets for potential licensed applications are:

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Government social services payments where control over how benefits allowances are used is required. This is particularly necessary in some European countries where social benefits are not being used as intended by the government or where benefits are subject to fraud.

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Closed network consumer to business (C2B) and business to business (B2B). An example is school lunch programs where the consumer can make direct mobile payments to the provider’s point of sale (POS) terminal without the need to traverse the traditional merchant payment system. This reduces the cost per transaction for the vendor and provides instant non-repudiated settlement. Many school lunch programs are now provided by large catering companies. This is particularly valuable as credit card fees, transaction fees and service fees can exceed 3% in overhead costs per transaction dependent on the negotiated rate. Removing this overhead can have significant positive financial impact on profitably. It also allows the closed network to own its own behavioral use data thus obviating the need to pay a third party for the same data.

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Integration of our certified COPPA-compliant white label Family Wallet Banking-as-a-Platform into digital banking platforms. This will make the Company’s family wallet available to financial institutions which will allow end-user customers of subscribing financial institutions to utilize the Company’s family wallet.

We believe that our near-term success will depend particularly on our ability to develop customer awareness and confidence in our service. Since we have extremely limited capital resources, we will need to closely manage our expenses and conserve our cash by continually monitoring any increase in expenses and reducing or eliminating unnecessary expenditures. Our prospects must be considered in light of the risks, expenses and difficulties encountered by companies at an early stage of development, particularly given that we operate in new and rapidly evolving markets, that we have limited financial resources, and face an uncertain economic environment. We may not be successful in addressing such risks and difficulties.

Results of Operations

Comparison of the Three months ended September 30, 2025 and 2024

The following discussion analyzes our results of operations for the three months ended September 30, 2025 and 2024. The following information should be considered together with our condensed financial statements for such period and the accompanying notes thereto.

Net Revenue

We have not generated significant revenue since our inception. For the three months ended September 30, 2025 and 2024, we generated revenues of $0 and $0.

Net Loss

For the three months ended September 30, 2025 and 2024, we had a net loss of $2,417,183 and $2,173,987.

Transaction Expense

Transaction expense for the three months ended September 30, 2025 was $40,057 compared to $86,955 for the three months ended September 30, 2024. These are transactional charges primarily for the operation of the Mazoola® app. The decrease is attributed to a diminished focus on the business-to-consumer marketspace for the three months ended September 30, 2025 when compared to the three months ended September 30, 2024.

Sales and Marketing

Sales and marketing expenses for the three months ended September 30, 2025 were $204,011 compared to $116,605 for the three months ended September 30, 2024, an increase of $87,406. The increase was due to higher event expenditures along with higher marketing options expenses for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024.

Product Development

Product development expenses were $808,782 and $912,706 for the three months ended September 30, 2025 and 2024, a decrease of $103,924. Decreases in consultant and payroll costs were slightly offset by an increase in integration costs associated with the rollout of the Platform to subscribing financial institutions for the three months ended September 30, 2025 when compared to the three months ended September 30, 2024.

General and Administrative Expenses

General and administrative expenses increased $257,158 to $1,067,569 for the three months ended September 30, 2025 from $810,411 for the three months ended September 30, 2024. The increase is attributed to higher consulting options expense for the three months ended September 30, 2025 when compared to the three months ended September 30, 2024.

Interest Expense, net

During the three months ended September 30, 2025, the Company incurred interest expense, net of interest income of $296,764 compared to $247,310 for the three months ended September 30, 2024, an increase of $49,454. The increase in interest expense relates to increased levels of outstanding debt resulting from the issuance of additional 10% Secured Promissory Notes.

Dividend Accrual

Accrued preferred dividend expense increased by $2,992 to $707,591 for the three months ended September 30, 2025 compared to $704,599 for the three months ended September 30, 2024.

Comparison of the Nine months ended September 30, 2025 and 2024

The following discussion analyzes our results of operations for the nine months ended September 30, 2025 and 2024. The following information should be considered together with our condensed financial statements for such periods and the accompanying notes thereto.

Net Revenue

We have not generated significant revenue since our inception. For the nine months ended September 30, 2025 and 2024, we generated revenues of $0 and $0.

Net Loss

For the nine months ended September 30, 2025 and 2024, we had a net loss of $7,274,014 and $7,109,131.

Transaction Expense

Transaction expense for the nine months ended September 30, 2025 was $162,525 compared to $287,288 for the nine months ended September 30, 2024. These are transactional charges primarily for the operation of the Mazoola® app. The decrease is attributed to the shift away from business-to-consumer initiatives to more of a business-to-business focus.

Sales and Marketing

Sales and marketing expenses for the nine months ended September 30, 2025 were $433,152 compared to $526,065 for the nine months ended September 30, 2024, a decrease of $92,913. The decrease was due to lower marketing consulting and marketing event expenses, offset slightly by an increase in marketing options expense for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024.

Product Development

Product development expenses were $2,230,764 and $2,592,996 for the nine months ended September 30, 2025 and 2024, a decrease of $362,232. Costs attributed to the Data Center along with the timing of certain consulting expenditures led to higher costs for the nine months ended September 30, 2024 when compared to the nine months ended September 30, 2025. This was partially offset by integration, payroll, and security/compliance cost increases associated with the rollout of the Platform to subscribing financial institutions for the nine months ended September 30, 2025 when compared to the nine months ended September 30, 2024.

General and Administrative Expenses

General and administrative expenses increased $747,386 to $3,708,707 for the nine months ended September 30, 2025 from $2,961,321 for the nine months ended September 30, 2024. As a result of the revaluation of options awarded to certain consultants, the Company incurred additional consulting options expenses of approximately $950,000 along with an increase in professional fees. These were offset by reductions in payroll costs for the nine months ended September 30, 2025 when compared to the nine months ended September 30, 2024.

Other Income

Other income increased by $60,176 for the nine months ended September 30, 2025 compared to $0 for the nine months ended September 30, 2024. The increase is attributed primarily to proceeds received for the sale of the Oink.com domain name that occurred during the nine months ended September 30, 2025 and did not occur during the nine months ended September 30, 2024.

Interest Expense, net

During the nine months ended September 30, 2025, the Company incurred interest expense, net of interest income of $799,042, compared to $741,461 for the nine months ended September 30, 2024, an increase of $57,581. The increase in interest expense relates to increased levels of outstanding debt resulting from the issuance of additional 10% Secured Promissory Notes which occurred during the nine months ended September 30, 2025 and did not occur during the nine months ended September 30, 2024

Dividend Accrual

Accrued preferred dividend expense increased by $115,755 to $2,116,788 for the nine months ended September 30, 2025 compared to $2,001,033 for the nine months ended September 30, 2024.

Liquidity and Capital Resources

As of November 14, 2025 we had cash on hand of approximately $1,000,000.

Net cash used in operating activities decreased $883,578 to $4,619,801 for the nine months ended September 30, 2025 as compared to $5,503,379 for the nine months ended September 30, 2024. The decrease resulted primarily from the change in share-based compensation, offset by the change in the fair value of common stock issued in exchange for services compared to that of the same period in the prior year.

Net cash used in investing activities increased to $5,207 for the nine months ended September 30, 2025 from $1,118 for the nine months ended September 30, 2024 as a result of an increase in expenditures related to investments in patents.

Net cash provided by financing activities decreased to $3,305,000 for the nine months ended September 30, 2025 from $3,723,021 for the nine months ended September 30, 2024. Proceeds from the sale of Series B Preferred Stock decreased when compared to the prior year offset, by proceeds of 10% secured convertible notes payable to stockholders.

As we have not realized significant revenues since our inception, we have financed our operations through offerings of debt and equity securities. On March 13, 2023, the Company entered into a $20 million Investor Private Line of Credit agreement (the “LOC”) with an existing shareholder of the Company. On March 13, 2024, the Company entered into an Amendment to the LOC (the “Amendment”) with the Lender. The Amendment extended the maturity date of the existing LOC with the Lender by one year, from March 13, 2024 to March 13, 2025. The maturity date of the LOC was extended a second time on March 13, 2025 until March 13, 2026. As of September 30, 2025 the outstanding balance on this LOC is $0.

Since our inception, we have focused on developing and implementing our business plan. We believe that our existing cash resources will not be sufficient to sustain our operations during the next twelve months. We currently need to generate sufficient revenues to support our cost structure to enable us to pay ongoing costs and expenses as they are incurred, finance enhancements to our Platform, and execute the business plan. If we cannot generate sufficient revenue to fund our business plan, we intend to seek to raise such financing through the sale of debt and/or equity securities. The issuance of additional equity would result in dilution to existing shareholders. The issuance of convertible debt may also result in dilution to existing stockholders. If we are unable to obtain additional funds when they are needed or if such funds cannot be obtained on terms acceptable to us, we will be unable to execute upon the business plan or pay costs and expenses as they are incurred, which would have a material, adverse effect on our business, financial condition and results of operations. See Note 2 to our consolidated financial statements included in this Form 10-Q.

Even if we are successful in generating sufficient revenue or in raising sufficient capital in order to commercialize the Platform, our ability to continue in business as a viable going concern can only be achieved when our revenues reach a level that sustains our business operations. We do not project that significant revenue will be developed at the earliest until late fourth quarter of 2025. There can be no assurance that we will raise sufficient proceeds, or any proceeds, for us to implement fully our proposed business plan. Moreover, there can be no assurance that even if the Platform is fully developed and successfully commercialized, that we will generate revenues sufficient to fund our operations. In either such situation, we may not be able to continue our operations and our business might fail.

Based upon the current cash position and the Company’s planned expense run rate, management believes the Company will not be able to finance its operations beyond December 2025.

The foregoing forward-looking information was prepared by us in good faith based upon assumptions that we believe to be reasonable. No assurance can be given, however, regarding the attainability of the projections or the reliability of the assumptions on which they are based. The projections are subject to the uncertainties inherent in any attempt to predict the results of our operations, especially where new products and services are involved. Certain of the assumptions used will inevitably not materialize and unanticipated events will occur. Actual results of operations are, therefore, likely to vary from the projections and such variations may be material and adverse to us. Accordingly, no assurance can be given that such results will be achieved. Moreover, due to changes in technology, new product announcements, competitive pressures, system design and/or other specifications we may be required to change the current plans.

Off-Balance Sheet Arrangements

As of September 30, 2025, we do not have any off-balance sheet arrangements.

Critical Accounting Policies

Our financial statements are impacted by the accounting policies used and the estimates and assumptions made by management during their preparation. A complete summary of these policies is included in Note 1 of the Notes to Financial Statements included in the Company’s Form 10-K for the year ended December 31, 2024. We have identified below the accounting policies that are of particular importance in the presentation of our financial position, results of operations and cash flows and which require the application of significant judgment by management.

Stock-based Compensation

We have adopted the fair value recognition provisions of Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 718. In addition, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 107 “ Share-Based Payment ” (“SAB 107”), which provides supplemental FASB ASC 718 application guidance based on the views of the SEC. Under FASB ASC 718, compensation cost recognized includes compensation cost for all share-based payments granted, based on the grant date fair value estimated in accordance with the provisions of FASB ASC 718.

We have used the Black-Scholes option-pricing model to estimate the option fair values. The option-pricing model requires a number of assumptions, of which the most significant are, expected stock price volatility, the expected pre-vesting forfeiture rate and the expected option term (the amount of time from the grant date until the options are exercised or expire).

All issuances of stock options or other equity instruments to non-employees as consideration for goods or services received by the Company are accounted for based on the fair value of the equity instruments issued. Non-employee equity based payments that do not vest immediately upon grant are recorded as an expense over the vesting period.

Revenue Recognition

In accordance with FASB ASC 606, Revenue from Contracts with Customers , the Company recognizes revenue when it satisfies performance obligations, by transferring promised goods or services to customers, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for fulfilling those performance obligations.

Recently Issued Accounting Pronouncements

Recently issued accounting pronouncements are discussed in Note 1 of the Notes to Condensed Consolidated Financial Statements contained elsewhere in this report.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not required.

ITEM 4. CONTROLS AND PROCEDURES.

As of September 30, 2025 we carried out the evaluation of the effectiveness of our disclosure controls and procedures required by Rule 13a-15(e) under the Exchange Act under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of September 30, 2025, our disclosure controls and procedures were effective to ensure that information we are required to disclose in reports that we file or submit under the Exchange Act is: (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (ii) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

There has been no change in our internal control over financial reporting that occurred during our fiscal quarter ended September 30, 2025 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

There have been no material developments since the disclosure provided in the Company’s Form 10-K for the year ended December 31, 2024.

ITEM 1A. RISK FACTORS.

Not required.

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

During the three months ended September 30, 2025, the Company issued $1,305,000 aggregate principal amount of its 10% Secured Convertible Promissory Notes in a private placement to certain accredited investors. Each of the foregoing issuances were exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. See the footnotes to the financial statements contained herein for additional detail on the applicable securities issued.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable.

ITEM 5. OTHER INFORMATION.

No director or officer of the Company adopted or terminated a Rule 10b5-1 trading arrangement and/or a non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408(a) of Regulation S-K) during the quarter ended September 30, 2025.

ITEM 6. EXHIBITS

31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Exhibit 101.INS	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.
Exhibit 101.SCH	Inline XBRL Taxonomy Extension Schema Document.
Exhibit 101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
Exhibit 101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.
Exhibit 101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
Exhibit 101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.
Exhibit 104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

SIGNATURES

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

	REGO PAYMENT ARCHITECTURES, INC.
	By:	/s/ Joseph R. Toczydlowski
		Joseph R. Toczydlowski
		Chief Financial Officer (Duly Authorized Officer and Principal Financial Officer)
Date: November 14, 2025

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