Company: APCXW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002130
Chunk: 275

Company: AppTech Payments Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 275
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 Company closed a private placement
offering consisting of a 6% convertible debenture (the “Debenture”) with a principal amount of $1,100,000 and a warrant (the
“Warrant”) to purchase up to 750,000 shares of the Company’s common stock. The Debenture was sold to Peak One Investments
(the “Purchaser”) for $1,000,000, reflecting a 10% original issue discount, under a Securities Purchase Agreement executed
on the same date. The Warrant, expiring five years from issuance, allows the holder to purchase up to 750,000 shares of common stock at
an initial exercise price of $1.16 (the “Exercise Price”), subject to adjustments described below. The fair value of the Warrant
was determined to be $0.85 per share.

Net proceeds from the Private Placement Offering were $910,000,
after deducting a $20,000
non-accountable fee withheld per the Purchase Agreement and $70,000
paid to a registered broker-dealer. The offering includes dilutive issuance
protection and prohibits variable rate transactions until the Debenture is fully repaid. Additionally,
on the closing date, the Company issued 100,000 restricted common stock shares (the “Commitment Shares”) with a fair value
of $0.96 per share.

The Debenture matures twelve months from issuance and carries a 6% annual interest rate, payable at maturity. At the holder’s option,
it is convertible into common stock based on the principal amount plus accrued, unpaid interest, at an initial conversion price of $1.07
(the “Conversion Price”), adjustable for stock splits, dividends, recapitalizations, or similar events.

The Warrant Shares, Commitment Shares, and common stock issuable under the Debenture were registered under the Securities Act via a Form
S-1 registration statement (File No. 333-281409), declared effective by the SEC on August 22, 2024. In connection with the August 28,
2024, Armistice Capital Master Fund Inducement Agreement (see Note 9), the warrant and debenture conversion price was reduced from $1.07
to $0.70 per share, and on November 18, 2024, the Company agreed with the Investor that an issuance of common stock at $0.56 per share
triggered another reduction in the debenture conversion to $