Company: APCXW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002130
Chunk: 113

Company: AppTech Payments Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 113
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 relying on its own historical stock price data to assess volatility.

Expected Term – The expected term of
stock options represents the weighted average period the stock options are expected to be outstanding. Given the limited historical exercise
data of the Company’s stock options, the Company uses the simplified method for estimating the expected term, which calculates the
expected term as the average time-to-vesting and the contractual life of the options for stock options issued to participants.

Risk-Free Interest Rate – The risk-free
rate assumption is based on U.S. Treasury instruments, the terms of which were consistent with the expected term of the Company’s
stock options.

Expected Dividend – The expected dividend
assumption is based on the Company’s history and expectation of dividend payouts. The Company has not paid any dividends to date
and does not intend to pay dividends.

Forfeitures are cancelled as they occur. Plan related
forfeitures are added back to the equity incentive plan.

Warrants

As of December 31, 2024, the Company has 15,906,627
warrants outstanding. The following table summarizes warrant activity:

    Schedule of warrant activity 

    Number of  shares  
    Weighted  Average  exercise price  
    Weighted  Average  remaining years 
  
    Outstanding December 31, 2023 
     7,489,960  
    $3.52  
     3.83 
  
    Cancelled 
     –  
    $–  

    Exercised 
     (2,416,667) 
    $0.70  

    Issued 
     10,833,334  
    $0.97  

    Outstanding as of December 31, 2024 
     15,906,627  
    $1.76  
     4.25 

Issuance of New Warrants (Inducement Transaction)

On August 30, 2024, AppTech Payments Corp. entered
a Warrant Inducement Agreement with Armistice Capital Master Fund Ltd., leading to the exercise of 1,666,667 October 2023 warrants at
$0.70 per share, generating $1,167 thousand in gross proceeds ($1,010 thousand net after fees). Concurrently, the exercise price of 1,666,667
February 2023 warrants was reduced from $4.64 to $0.70, increasing their fair value by $350