Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 842

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 842
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 of the Company. The proceeds are to be
used for working capital purposes to alleviate economic injury caused by the COVID-19 pandemic.

The
company has accrued interest of $8,869 and $9,369 on this loan as of December 31, 2024 and 2023, respectively.

12NOTES PAYABLE

Notes
payable consists of the following:

  Description  Interest Rate   Maturity date*  Principal   Accrued Interest   Unamortized debt discount   December 31, 2024 Amount, net   December  31, 2023 Amount, net   Cavalry Fund I LP   10.0%  Matured  $482,000   $101,648   $-   $583,648   $531,004   Mercer Street Global Opportunity Fund, LLC   10.0%  Matured   482,000    101,648    -    583,648    531,003   2024 notes   0.0 to 8.5%  February 28, 2025 to October 10, 2025   577,778    13,861    (89,062)   502,577    -                                       Total notes payable          $1,541,778   $217,157   $(89,062)  $1,669,873   $1,062,007  

*All notes payable are technically in default due the default on
the outstanding Red Road Holdings Corporation and the Quick Capital LLC convertible notes disclosed in note 13 below. None of the note
payable lenders have formally declared a default to the Company.

Interest
expense totaled $119,151 and $97,739 for the years ended December 31, 2024 and 2023, respectively.

Amortization
of debt discount totaled $55,383 and $0 for the years ended December 31, 2024 and 2023, respectively.

F-17

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

12NOTES PAYABLE (continued)

Cavalry
Fund I LP and Mercer Street Global Opportunity Fund, LLC

On
February