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

Company: AppTech Payments Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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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 $40
thousand and $37 thousand for the six
months ended June 30, 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 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.

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 June 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