Company: APCXW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006148
Chunk: 13

Company: AppTech Payments Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 agreed to pay a $103 thousand perpetual licensing fee (payable in six equal monthly installments through
October 1) to the software provider. In addition, the banking partner held a $250 thousand note receivable bearing 8% interest with
the software provider, while the software provider held an offsetting liability to the banking partner. As part of this arrangement,
AppTech assumed the note receivable and offsetting note payable to the software provider and banking partner, respectively. AppTech
further paid the accumulated interest to the bank and established an interest receivable from the software provider. The note
receivable can be converted into equity of the software provider’s Company. The note receivable matures on June 2026, and
may be converted early if a financing event occurs. The note payable is due on demand but no later than June 30, 2026 and the
interest expense incurred is paid out quarterly. As of June 30, 2025, the principal and accrued interest on the note receivable was
$250
thousand and $36
thousand, respectively. In addition, the $250
thousand obligation to the bank is recorded as a current liability and the accrued interest expense of $6
thousand is recorded in accrued expenses. 

On
June 18, 2025, the Company entered a six-month unsecured convertible note agreement with Eleven 11 Management LLC, a third-party lender,
with a principal value of $360
thousand. The discount on the note was $60 thousand and the note bears interest
of $18 thousand over the six-month term. At full term, total monies of $378 thousand are due or the note can be converted into common
stock. The stated interest rate on the note is 10%. The maturity date of the note is December
18, 2025, but it can be converted early at a $2 conversion price. If a default occurs, the note could be converted into shares of common
stock at 80% of the volume weighted average price. As of June 30, 2025, the principal and accrued interest on the note are $360 thousand
and $1 thousand, respectively.

     15 

NOTE 6 – RIGHT OF USE ASSET

Lease Agreement

In January 2020, the Company entered into a lease
agreement commencing February 8, 2020 for its corporate office in Carlsbad, California, which was set to expire in