Company: APCXW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001683168-25-008326
Chunk: 42

Company: AppTech Payments Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part II, Item 8
Chunk 42
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2024, the Company issued 15,000 shares
of common stock to the former owner of Alliance Partners as consideration for extending the payment due date for the remaining balance
of the Purchase consideration due.

See Note 1 - Purchase of Alliance Partners,
LLC.

Equity Receivable

$500 thousand related to the AFIOS Partners investment
was received in September 2025. Of the amount received, $450 thousand settled the equity receivable and $50 thousand was related to the
over-allotment provision in the original contract that allowed AFIOS to invest an additional $1,000 thousand under the original terms.
See the subsequent events for a discussion on the $1,000 thousand over-allotment invested.

Stock Options 

The Company grants stock options as part of employee
compensation and recognizes these options’ expense over the vesting period. If an employee does not meet certain conditions such
as sales targets or leaves the Company before the options vest, these options are forfeited as they occur.

On December
7, 2021, the Board of Directors authorized the Company’s Equity Incentive Plan in order to facilitate the grant of equity
incentives to employees (including our named executive officers), directors, independent contractors, merchants, referral partners, channel
partners and employees of the Company’s to enable the Company to attract, retain and motivate employees, directors, merchants, referral
partners and channel partners, which is essential to its long-term success. A total of 2,702,632 shares of common stock were previously
authorized under the Company’s Equity Incentive Plan. As of September 30, 2025, 1,029,842 shares were cancelled as part of employee
terminations and 1,250 thousand shares were added to the plan as part of the shareholder meeting. In total as of September 30, 2025, 2,788,009
shares are available for issuance.

On January 21, 2025, the Company extended the
expiration term of vested and outstanding stock options to the former CFO. On July 8, 2025, the Company extended the expiration term for
the former Corporate Secretary. The fair value was calculated both on the modification date and prior to the modification. The Company
recorded a total option modification expense of $49 thousand.

     16 

During the nine months ended September 30, 2025,
the Company granted 3,042,911 options to purchase common stock. The