Company: APCXW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001683168-25-003561
Chunk: 59

Company: AppTech Payments Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 4
Chunk 59
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Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation
of our management, including the Chief Executive Officer and the Chief Financial Officer, we evaluated the effectiveness of the design
and operation of our “disclosure controls and procedures” (as defined in Rule 13a-15(e) under the Exchange Act) as of the
end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded
that our disclosure controls and procedures were effective as of March 31, 2025.

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Changes in Internal Control over Financial Reporting

There have not been any changes in our internal
control over financial reporting during the three months ended March 31, 2025 that have materially affected, or are reasonably likely
to materially affect, our internal control over financial reporting.

Limitations on the Effectiveness of Controls

Control systems, no matter how well conceived
and operated, are designed to provide a reasonable, but not an absolute, level of assurance that the objectives of the control system
are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls
must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can
provide absolute assurance that all control issues and instances of fraud, if any, have been detected. Because of the inherent limitations
in any control system, misstatements due to error or fraud may occur and not be detected.

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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.

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