Company: APCXW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001683168-25-008326
Chunk: 29

Company: AppTech Payments Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 29
---
 system, misstatements due to error or fraud may occur and not be detected.

 25 

PART II - Other Information

Item 1. Legal Proceedings.

Litigation with Former Employees

On May 3, 2024, the Company was sued by three
former employees over severance payments. On February 14, 2025, the Company filed a cross complaint against the plaintiffs for breach
of fiduciary duty and breach of contract. In March 2025, the Company settled its lawsuit for $172 thousand. The first payment of $86 thousand
was made in March 2025 and the second in May 2025.

Litigation with Former Law Firm

On March 13, 2025, Moses & Singer LLP filed
a case against AppTech Payments Corp. for unpaid fees of approximately $445 thousand with the American Arbitration Association. AppTech
has brought a counterclaim of legal malpractice for $800 thousand. Arbitration is confidential and ongoing; resolution is expected before
or by spring 2026. Invoices for fees and costs to date are reflected in accounts payable.

Item 1A. Risk Factors.

As a smaller reporting company, as defined in
Rule 12b-2 of the Exchange Act, we are not required to provide the information required by this Item.

Item
2. Unregistered Sales of Equity Securities and Use of Proceeds.

Not applicable.

Item 3. Defaults Upon Senior Securities.

Not applicable.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

During the quarter ended September 30, 2025, no
director or officer adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, as each term is
defined in Item 408(a) of Regulation S-K.

 26 

Item 6. Exhibits.

EXHIBIT INDEX

    Exhibit Number
     
    Exhibit Title
  
    10.1
     
    Securities Purchase Agreement, dated July 23, 2025, by and between AppTech Payments Corp. and Labrys Fund II, L.P. incorporated by reference to Exhibit 10.1 to the Company’s Current Report on From
8-K filed on July 29, 2025

    10.2
     
    Promissory Note, dated July 23, 2025, issued by AppTech Payments Corp. to Labrys Fund II,