Company: APCXW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001683168-25-008326
Chunk: 15

Company: AppTech Payments Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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ance 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 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 filed
a case against AppTech Payments Corp. for unpaid fees of approximately $445 thousand with the American Arbitration Association. AppTech
has brought a counterclaim of legal malpractice for $800 thousand. Arbitration is confidential and ongoing; resolution is expected before
or by spring 2026. Invoices for fees and costs to date are reflected in accounts payable.

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 September 30, 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.

     15 

Common Stock

As of September 30, 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 34,488,934 as of September 30, 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