Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 61

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 61
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 Rosenblum

The option expense for options still
vesting for Mr. Rosenblum was $0 and $9,292 for the three months ended September 30, 2025 and 2024, respectively and $0 and
$65,047 for the nine months ended September 30, 2025 and 2024, respectively.

On April 18, 2025, the Company entered
into a convertible note agreement, whereby $210,000 of payroll accrued to Mr. Rosenblum was exchanged for a convertible note, bearing
interest at 8% per annum and maturing on January 6, 2026. The convertible note was convertible into shares of common stock at a conversion
price of $0.02 per share. On April 29, 2025, the board of directors approved an amendment to the exercise price to $0.005 per share.

Mr. Rosenblum resigned all his positions
with the Company with effect from January 7, 2025.

14COMMITMENTS
AND CONTINGENCIES

The Company has notes payable and convertible
debt, disclosed under Notes 7 and 8 above, which had and have already matured and are technically in default.  Should the convertible
debt not be converted to Common Stock prior to their maturity dates, the Company may need to repay the principal and interest outstanding
on this convertible debt.

30

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

15SUBSEQUENT EVENTS

Conversion of convertible debt

Between October 9, 2025 and October
15, 2025, the Company received conversion notices from convertible note holders converting an aggregate of $472,712 into 36,385,616
shares of common stock at conversion prices ranging from $0.005 per share to $0.02 per share, resulting in a loss on conversion of $423,118. 

Convertible debt funding

On October 1, 2025, the Company entered
into two convertible note agreements pursuant to which the Company issued 2 convertible promissory notes, each totaling $62,500, each
with an original issue discount of $12,500, for net proceeds of $50,000 each. The notes are unsecured and mature on July 2, 2026, bearing
interest at 10% per annum based on a 360 day trading-year, and are convertible