Company: APCXW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002130
Chunk: 991

Company: AppTech Payments Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 13
Chunk 991
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 thousand and $26 thousand in interest expense. AppTech has no further obligations to the Purchaser.

NOTE 7 – 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 2025. In December 2024,
the Company extended its lease for fourteen months through March 2026, with an option to extend for an additional fourteen months. At
inception of the lease, the Company recorded a right of use asset and liability. The Company used an incremental borrowing rate of 8.5%
within the calculation. The following are the expected future minimum lease payments as of December 31, 2024, including the total
amount of imputed interest related (in thousands):

    Schedule of right of use asset 

    2025 
    $73 
  
    2026 
     18 
  
    Minimum Future Lease Payments 
    $91 
  
    Less: Imputed interest 
     (5)
  
    Total Minimum Future Lease Payments 
    $86 

The rent expense was $80 thousand and $85 thousand
for the years ended December 31, 2024 and 2023, respectively.

     38 

NOTE 8 – COMMITMENTS AND CONTINGENCIES

The Company
may be involved in various claims and legal actions arising in the ordinary course of business. The Company establishes an accrued liability
for legal proceedings only when those matters present loss contingencies that are both probable and reasonably estimable.

Convertible Note and Warrant Litigation

On
July 14, 2021, EMA Financial LLC (“EMAF”), filed a complaint in the United States District Court for the Southern District
of New York against the Company alleging breach of contract. In April 2023, EMAF and AppTech entered into a settlement and release agreement.
The related convertible note, warrants, and derivative liabilities were extinguished resulting in a gain of $250 thousand for the year
ended December 31, 2023.

NCR
Litigation

On
November 30, 2022, AppTech filed a complaint against NCR Payment Solutions, LLC in the United States District Court for the Southern District
of California alleging Breach of Contract, Breach of Implied Covenant of Good Faith and Fair Dealing, Specific Performance and Accounting.
On March 11