Company: APCXW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001683168-25-003561
Chunk: 32

Company: AppTech Payments Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part II, Item 8
Chunk 32
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     –  
     15 
  
    Other 
     11  
     102 
  
    Total accrued liabilities 
    $1,326  
    $1,519 

In connection with the original Purchase of Alliance
Partners, $1,200 thousand remained outstanding as of March 31, 2025 and December 31, 2024. The payable amount is secured by substantially
all the Company's assets.

See Note 1 Purchase of Alliance Partners, LLC.

NOTE 5 – NOTES PAYABLE 

The Company
has a 30-year unsecured note payable with the U.S. Small Business Administration. The note payable incurred a $100 fee upon issuance and
incurs interest at 3.75% per annum. Payments totaling $4 thousand are due each year through the maturity date of July 1, 2050.

As of March 31, 2025 and December 31, 2024,
the balance of the note payable was $61 thousand and $61 thousand, respectively.

NOTE 6 – 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 rent expense was $21 thousand and $22 thousand
for the three months ended March 31, 2025 and 2024, respectively.

NOTE
7 – COMMITMENTS AND CONTINGENCIES

The Company
may be involved in various claims and legal actions arising in the ordinary course of business. The Company establishes an accrued liability
for legal proceedings only when those matters present loss contingencies that are both probable and reasonably estimable.

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