Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 844

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 844
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 previous notes. The automatic extension of
the maturity date may not extend past November 27, 2024, thereafter all amounts due under the note are immediately due and payable. The
Company performed an analysis in terms of ASC 470 and it was determined that the extension was a debt modification, in addition, no additional
consideration was paid for the maturity date extension.

With
effect from November 27, 2024, the notes accrue interest at 18% per annum, the default interest rate per the note agreement. 

2024
Notes

Between
May 29, 2024 and November 27, 2024, the Company entered into nine Securities Purchase Agreements with four accredited investors, pursuant
to which the Company issued nine non-convertible promissory notes (the “2024 Notes”) with an aggregate principal
amount of $577,778 for gross proceeds of $433,333, after taking into account an aggregate original issuance discount of $144,445.

The
2024 Notes mature between February 28, 2025 and October 10, 2025 and bear interest at rates ranging from 0.0% to 8.5% per annum.

The
2024 Notes have restrictions relating to fundamental transactions which require the approval of the note holder, in addition the note
holder has an optional redemption right on subsequent transactions that may require the Company to redeem all or part of the Note, at
a premium of 120% of the cash amount of the Note, at the note holder’s discretion.

F-18

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

13CONVERTIBLE NOTES PAYABLE

Convertible
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   18.00%*  Matured  $819,371   $17,571   $-   $836,942   $909,218   Mercer Street Global  Opportunity Fund, LLC   18.00%*  Matured   991,754    59,259    -    1,051,013    1,