Company: APCXW
Filing Date: 2025-04-17
Form Type: DEF 14A
Source: 0001683168-25-002670
Chunk: 33

Company: AppTech Payments Corp.
Filing Date: 2025-04-17
Form: DEF 14A
Chunk 33
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 amount that, the participant recognizes
ordinary income on account of the lapse of the restrictions. A participant’s tax basis in the shares will equal their fair market
value at the time the restrictions lapse, and the participant’s holding period for capital gains purposes will begin at that time.
Any cash dividends paid on the restricted stock before the restrictions lapse will be taxable to the participant as additional compensation
rather than as dividend income. Under Section 83(b) of the Internal Revenue Code, a participant may elect to recognize ordinary income
at the time the shares of restricted stock are awarded in an amount equal to their fair market value at that time, notwithstanding the
fact that such shares of restricted stock are subject to restrictions and a substantial risk of forfeiture. If such an election is made,
no additional taxable income will be recognized by such participant at the time the restrictions lapse, the participant will have a tax
basis in the shares equal to their fair market value on the date of grant of their award, and the participant’s holding period for
capital gains purposes will begin at that time. AppTech will generally be entitled to a tax deduction at the time when and to the extent
that such participant recognizes ordinary income.

RSUs

In general, the grant of
RSUs (including performance share units) will not result in income for the participant or in a tax deduction for AppTech. Upon the settlement
of such an award in cash or shares, the participant will recognize ordinary income equal to the aggregate value of the payment received,
and AppTech will generally be entitled to a tax deduction at the same time and in the same amount. A gain or loss recognized upon a subsequent
sale or exchange of the shares (if settled in shares) is treated as capital gain or loss for which AppTech will not be entitled to a deduction.

Other Awards

With respect to other awards
granted under the 2025 Plan, including stock bonuses, other stock-based awards, and cash awards, generally, when the participant receives
payment with respect to an award, the amount of cash and/or the fair market value of any shares or other property received will be ordinary
income to the participant, and AppTech generally will be entitled to a tax deduction at the same time and in the same amount.

Section 409A of the Code.
Certain types of awards under the 2025 Plan may constitute or provide for a deferral of compensation subject to Section 409A of the Code.
Unless certain requirements set forth in Section 409A of the Code are complied