Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 680

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 680
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NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

1ORGANIZATION AND DESCRIPTION
OF BUSINESS (continued)

b)Description
of current business (continued)

Simultaneously
with the funding of the initial Tranche, the Company issued to each of OpenPath and EfinityPay a five-year Common Stock purchase warrant
(the “IPEX Warrant”) to purchase 133,334 shares of Common Stock with an exercise price of $0.45 per share.
We are still obligated to issue to each of OpenPath and EfinityPay an additional IPEX Warrant to purchase 199,999 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 initial Tranche. Simultaneously with the funding of the second Tranche, we are 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 second Tranche.
Should we decide to fund a third Tranche, we 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