Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 35

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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% per annum in terms
of the agreement.

In
consideration for the November 16, 2022 extension, the Company agreed to (i) increase the principal amount outstanding and due to Mercer
by twenty percent (20%) and (ii) issue a new five-year warrant to purchase an additional 100,000 shares of Common Stock at an
exercise price of $4.50 per share. In consideration of the December 30, 2022 extension, the Company agreed to the following terms;
(i) the conversion price of the Note was reduced from $4.50 to $0.345 per share; (ii) Mercer agreed (a) not to convert all or
any portion of the Notes until after March 30, 2023 and (b) waive any events of default under the Note and the SPA; (iii) the Company
agreed to and registered the shares of Common Stock underlying the Note and the shares underlying all warrants held by Mercer for resale
with the Securities and Exchange Commission and filed the registration statement to satisfy the Company’s registration obligation.

19

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

8CONVERTIBLE
DEBT (continued)

Mercer
Street Global Opportunity Fund, LLC (continued)

Between
May 19, 2023 and August 30, 2023, Mercer converted an aggregate of $100,000 into 289,856 shares of common stock at a conversion
price of $0.345 per share, realizing a loss on conversion of $48,551.

Between
August 20, 2024 and November 11, 2024, Mercer converted an aggregate of $197,348 of interest into 2,349,380 shares of Common
Stock at a conversion price of $0.084 per share, realizing a loss on conversion of $89,527. Such conversion caused a reduction in
the $0.345 conversion price of the notes described above to $0.084.

Between
January 14, 2025 and June 27, 2025, Mercer converted an aggregate $37,847 of interest into 36,802,853 shares of common
stock at an average conversion price of $0.00103 per share. The Company realized a loss on conversion of $92,255.

In terms of the agreement with Cavalry,
the conversion price of the convertible