Company: APCXW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006148
Chunk: 37

Company: AppTech Payments Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 8
Chunk 37
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 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 June 30, 2025 and December 31, 2024, the
balance of the note payable was $60 thousand and $61 thousand, respectively.

On
April 11, 2025, the Company entered a three-party agreement with one of its banking partners and software providers. Under the terms
of the arrangement, AppTech agreed to pay a $103 thousand perpetual licensing fee (payable in six equal monthly installments through
October 1) to the software provider. In addition, the banking partner held a $250 thousand note receivable bearing 8% interest with
the software provider, while the software provider held an offsetting liability to the banking partner. As part of this arrangement,
AppTech assumed the note receivable and offsetting note payable to the software provider and banking partner, respectively. AppTech
further paid the accumulated interest to the bank and established an interest receivable from the software provider. The note
receivable can be converted into equity of the software provider’s Company. The note receivable matures on June 2026, and
may be converted early if a financing event occurs. The note payable is due on demand but no later than June 30, 2026 and the
interest expense incurred is paid out quarterly. As of June 30, 2025, the principal and accrued interest on the note receivable was
$250
thousand and $36
thousand, respectively. In addition, the $250
thousand obligation to the bank is recorded as a current liability and the accrued interest expense of $6
thousand is recorded in accrued expenses. 

On
June 18, 2025, the Company entered a six-month unsecured convertible note agreement with Eleven 11 Management LLC, a third-party lender,
with a principal value of $360
thousand. The discount on the note was $60 thousand and the note bears interest
of $18 thousand over the six-month term. At full term, total monies of $378 thousand are due or the note can be converted into common
stock.