Company: APCXW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006148
Chunk: 62

Company: AppTech Payments Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 62
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 and
operated, are designed to provide a reasonable, but not an absolute, level of assurance that the objectives of the control system are
met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must
be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide
absolute assurance that all control issues and instances of fraud, if any, have been detected. Because of the inherent limitations in
any control system, misstatements due to error or fraud may occur and not be detected.

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PART II - Other Information

Item 1. Legal Proceedings.

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 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, as the claimant,
opened an arbitration case with the American Arbitration Association against AppTech for unpaid invoices totaling $416 thousand. The Company
has responded to Claimant Moses & Singer’s Arbitration Demand and Statement of Facts on May 1, 2025. The Company believes we
can come to an agreement before the arbitration hearing and we intend to work with the claimant to resolve this case. The invoiced amount
is already reflected in accounts payable.

Item 1A. Risk Factors.

As a smaller reporting company, as defined in Rule
12b-2 of the Exchange Act, we are not required to provide the information required by this Item.

Item 2. Unregistered
Sales of Equity Securities and Use of Proceeds.

Not applicable.

Item 3. Defaults Upon Senior Securities.

Not applicable.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

During the quarter ended June 30, 2025, no director
or officer adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, as each term is defined in
Item 408(a) of Regulation S-K.

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