Company: APCXW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001683168-25-008326
Chunk: 39

Company: AppTech Payments Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part II, Item 8
Chunk 39
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4 thousand
are due each year through the maturity date of July 1, 2050.

As of September 30, 2025 and December 31,
2024, the balance of the note payable was $60 thousand and $61 thousand, respectively.

On April 11, 2025, the Company entered a three-party
agreement with one of its banking partners and software providers. Under the terms of the arrangement, AppTech 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 September 30, 2025, the principal and accrued
interest on the note receivable was $250 thousand and $41 thousand, respectively. In addition, the $250 thousand obligation to the bank
is recorded as a current liability and the accrued interest expense of $5 thousand is recorded in accrued expenses.

During the nine months ended September 30, 2025,
the Company entered into multiple unsecured convertible note agreements with third-party lenders, with principal amounts ranging from
approximately $300 thousand to $360 thousand, bearing stated interest rates of 10%, and original issue discounts ranging from $50 thousand
to $60 thousand. The notes have terms of six to twelve months, with maturities between December 2025 and August 2026.

     14 

Each note may be converted into shares of
the Company’s common stock at a fixed conversion price of $2.00 per share, subject to adjustment in the event of default, at
which point the conversion price may be reduced to the lower of $2.00 and 80% of the volume-weighted average price (VW