Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 237

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 237
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 will be obligated to issue to each of OpenPath and EfinityPay an additional IPEX Warrant
to purchase 166,667 shares of Common Stock with an exercise price equal to the average public closing price of the Common Stock
for the three trading days immediately prior to the funding of the third Tranche. If the full IPSI Capital Contribution is funded, OpenPath
and EfinityPay will receive IPEX Warrants to purchase an aggregate of 1,333,334 shares of Common Stock.

c)Merger
Agreement with Business Warrior

Business Warrior
Corporation (“Business Warrior”) is a publicly listed, revenue generating fintech company that offers PayPlan,
a comprehensive lending software platform that includes marketing services for lenders and businesses. We believed that a potential combination
with a fintech company that generates some revenue monthly would complement the development and commercial launch of our IPSIPay ExpressTM products
and potentially other product offerings.

On July 28,
2024, the Company entered into an Agreement and Plan of Merger by and among the Company, IPSI Merger Sub, Inc., a Delaware corporation
and a newly formed, wholly owned subsidiary of the Company (“Merger Sub”) and Business Warrior.

On January
22, 2025, the Company and Business Warrior mutually agreed to terminate the Agreement and Plan of Merger dated July 28, 2024. This decision
reflects our shared understanding and agreement that discontinuing the merger is in the best interest of both parties.  

2ACCOUNTING POLICIES AND ESTIMATES

a)Basis of Presentation

The
accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S.
GAAP”).

All
amounts referred to in the notes to the consolidated financial statements are in United States Dollars ($) unless stated otherwise.

b)Principles of Consolidation

The
consolidated financial statements as of December 31, 2024, include the financial statements of the Company. The consolidated financial
statements as of December 31, 2023, include the financial statements of the Company and its subsidiary, Beyond Fintech, in which it had
a majority voting interest, until May 12, 2023, the date of disposal. Pursuant to the May 2023 Frictionless Agreement, the Company disposed
of its 51% interest in Beyond Fintech. Therefore, as of May