COMMITMENTS AND CONTINGENCIES |
3 Months Ended |
|---|---|
Mar. 31, 2025 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| COMMITMENTS AND CONTINGENCIES | 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.
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