Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 548

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1C
Chunk 548
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,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 16, 2021, the Company entered into separate Securities Purchase Agreements (the “SPAs”), with each of Cavalry Fund
I LP (“Cavalry”) and Mercer Street Global Opportunity Fund, LLC (“Mercer”), pursuant to which the Company received
$500,500 and $500,500 from Cavalry and Mercer, respectively, in exchange for the issuance of: (i) Original Issue Discount 12.5%
Convertible Notes (the “Notes” and each a “Note”) in the principal amount of $572,000 to each of Cavalry
and Mercer; and (ii) five-year warrants (the “Original Warrants”) issued to each of Cavalry and Mercer to purchase 2,486,957 shares
of Common Stock at an exercise price of