Company: APCXW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002130
Chunk: 1074

Company: AppTech Payments Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 15
Chunk 1074
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 splits, dividends, recapitalizations, or similar events.

The Warrant Shares, Commitment Shares, and common stock issuable under the Debenture were registered under the Securities Act via a Form
S-1 registration statement (File No. 333-281409), declared effective by the SEC on August 22, 2024. In connection with the August 28,
2024, Armistice Capital Master Fund Inducement Agreement (see Note 9), the warrant and debenture conversion price was reduced from $1.07
to $0.70 per share, and on November 18, 2024, the Company agreed with the Investor that an issuance of common stock at $0.56 per share
triggered another reduction in the debenture conversion to $0.56.
The adjustment provision resulted in a revaluation of the warrant conversion repricing charge to additional paid-in capital and an accumulated
deficit of $15 thousand as of December 31, 2024.

Between August 29, 2024, and December 19, 2024, the
cashless Warrant was exercised in full resulting in 521,739 shares of common stock. The debenture was converted on multiple occasions,
resulting in the issuance of an aggregate of 1,975,606 shares of common stock. At December 31, 2024, the Company amortized the convertible
debt discount of $579 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