Company: APCXW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002130
Chunk: 1160

Company: AppTech Payments Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 1160
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 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 $0.56.
The adjustment provision resulted in a revaluation of the warrant conversion repricing charge to additional paid-in capital and an accumulated
deficit of $15 thousand as of December 31, 2024.

Between August 29, 2024, and December 19, 2024, the
cashless Warrant was exercised in full resulting in 521,739 shares of common stock. The debenture was converted on multiple occasions,
resulting in the issuance of an aggregate of 1,975,606 shares of common stock. At December 31, 2024, the Company amortized the convertible
debt discount of $579 thousand and $26 thousand in interest expense. AppTech has no further obligations to the Purchaser.

NOTE 7 – RIGHT OF USE ASSET

Lease Agreement

In January 2020, the Company entered into a