Company: APCXW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002130
Chunk: 225

Company: AppTech Payments Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1C
Chunk 225
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. See Note 1 - Purchase of
Alliance Partners, LLC.

As of December
31, 2024, the payment terms under the Purchase Agreement with Alliance Partners, LLC, were
amended as follows: 1) $150,000 due on or before July 11, 2024; 2) Remaining payments are deferred until either February 1, 2025, or until
the Company generates $400,000 in monthly revenue from the FinZeo products (after cost of sales, excluding operating expenses). At the
time of this filing, the Seller and Company are discussing updated payment terms.

In consideration
for modifying the original payment schedule, the Seller received a total of 15,000 shares
of AppTech Payments Corp. and 55,000 options to purchase shares of the Company’s stock.

     41 

Stock Options

The Company grants stock options as part of employee
compensation and recognizes these options’ expense over the vesting period. If an employee does not meet certain conditions such
as sales targets or leaves the Company before the options vest, these options are forfeited as they occur.

On December 7, 2021, the board authorized the Company’s
Equity Incentive Plan to facilitate the grant of equity incentives to employees (including our named executive officers), directors, independent
contractors, merchants, referral partners, channel partners, and employees of our company. This plan is essential for attracting, retaining,
and motivating these key personnel, which is critical to our long-term success.

In May 2023, shareholders approved an additional 700,000
shares for the Company’s Equity Incentive Plan, bringing the total authorized shares to 1,752,632.

On
March 20, 2024, the Company extended the expiration term of vested and
outstanding stock options to 10 years from the original grant date for current employees and consultants, which resulted in an option
modification. Also, certain terminated or separated option holders were allowed to retain their vested options through the original expiration
date following their termination. The fair value was calculated
both on the modification date and prior to the modification. The Company recorded the option modification expense of $325 thousand.

Also in May 2023, the shareholders approved the Company's
proposed resolution to re-price its options. In total, 615,264 employee options were repriced to $0.715, and 250,658 options for board
of directors and consultants'