Company: APCXW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002130
Chunk: 47

Company: AppTech Payments Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 47
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 into arbitration.

As of December 31, 2024, the parties settled
the lawsuit under a confidential Settlement Confirmation letter whereby the terms of the Settlement Agreement and Mutual Release were
fulfilled. Under the settlement, no payments were exchanged between the parties, and both the anti-dilution liability and the payable
owed to Infinios were fully extinguished. The matter is closed.

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 settlement amount was accrued for at December
31, 2024.

NOTE 9 – STOCKHOLDERS’ EQUITY

Series A Preferred Stock

The Company is authorized to issue 100,000 shares
of Series A preferred stock (“Series A”) with a par value of $0.001 per share. As of December 31, 2024 and 2023, fourteen
(14) Series A shares were outstanding. Series A shareholders have one vote per share on an “as converted” basis for all matters
submitted to a stockholder vote, without the right to cumulative voting in director elections. They are entitled to dividends, if declared
by the Board of Directors from legally available funds, distributed pro rata based on their Series A holdings on an as-converted basis.
In the event of liquidation or dissolution, Series A shareholders share ratably in any remaining assets after liabilities are paid, with
no liquidation preferences. Each Series A share is convertible into 82 shares of common stock at the holder’s discretion.

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Common Stock

As of December 31, 2024 and December 31, 2023, the
Company is authorized to issue 105,263,158 shares of common stock with a par value of $0.001 per share. The number of shares outstanding
was 33,278,934 as of December 31, 2024 and 22,251,742 as of December 31, 2023. Common stockholders are entitled to one vote per share
on all matters submitted to a stockholder vote, without the right to cumulative voting in director elections. They are eligible for dividends,
if declared by the Board of Directors from legally