Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 37

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 Note 5”), bearing interest at 15%, which interest is earned on issuance of the note, an effective interest rate of 24.51%, and maturing on March 30, 2025. The RRH Note 5 has mandatory repayments of $93,498 on December 30, 2024 and $16,782 per month on January 30, 2025, February 28, 2025 and March 30, 2025. The RRH Note 5 is convertible into shares of Common Stock at a variable conversion rate of 65% of the lowest trading price ten trading days before conversion.     The first instalment was not made, automatically placing the note into default, with a penalty charge of 150% of the total balance outstanding of $71,921 recorded by the Company on December 30, 2024.   Between January 13, 2025 and May 8, 2025, RRH converted an aggregate of $191,772, including an aggregate penalty of $54,000 into 117,230,187 shares of common stock at a weighted average conversion price of $0.00164, realizing a loss on conversion of $116,055.   On May 8, 2025, RRH entered into an assignment agreement, whereby the remaining balance of the convertible note of $77,991 was assigned to a third party, who in turn assigned a portion of the convertible note to eight parties (the “assignees”). Between May 22, 2025 and May 23, 2025, the assignees and the third party converted the remaining RRH 5 note of $77,991 into 88,626,136 shares of common stock at a conversion price of $0.00088 per share, resulting in a loss on conversion of 323,964, and thereby extinguishing the note. 

20

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

8CONVERTIBLE
DEBT (continued)

Quick
Capital, LLC

    ●  On May 28, 2024, the Company closed a transaction with Quick Capital pursuant to which the Company received net proceeds of $46,500, after an original issue discount and fees of $10,644 in exchange for the issuance of a $57,144 Convertible Note (“Quick Cap Note 2”), bearing interest at an effective interest rate of