Company: APCXW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001683168-25-003561
Chunk: 33

Company: AppTech Payments Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part II, Item 8
Chunk 33
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 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, as the claimant, opened an arbitration case with the American Arbitration Association against AppTech
for unpaid invoices totaling $416 thousand. The Company has responded
to Claimant Moses & Singer’s Arbitration Demand and Statement of Facts on May 1, 2025. The Company believes we can come to
an agreement before the arbitration hearing and we intend to work with the claimant to resolve this case. The invoiced amount is already
reflected in accounts payable.

     13 

NOTE 8 – STOCKHOLDERS’ EQUITY 

Series A Preferred Stock

The Company is authorized to issue 100,000 shares
of $0.001 par value Series A preferred stock (“Series A”). There were fourteen (14) shares of Series A preferred stock outstanding
as of March 31, 2025 and December 31, 2024. Series A stockholders 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 Company’s
board of directors (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 stockholders 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 stockholder’s discretion.

Common
Stock

As of March 31, 2025 and December 31, 2024, the
Company was 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 33,288,934 as of March 31, 2025 and 33,278,934 as of December 31, 2024. 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 available funds, subject to the prior rights of any outstanding preferred stock and
any contractual restrictions on dividend