Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 674

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 674
---
 

    RECONCILIATION OF OPENING CASH WITHIN THE BALANCE SHEET TO THE STATEMENT OF CASH FLOWS 

    Cash 
    $50,433  
    $373,822 
  
    Cash included in assets held for resale 
     -  
     943 
  
    CASH AT BEGINNING OF THE YEAR 
    $50,433  
    $374,765 

    RECONCILIATION OF CLOSING CASH WITHIN THE BALANCE SHEET TO THE STATEMENT OF CASH FLOWS 

    Cash 
    $526  
    $50,433 
  
    CASH AT END OF THE YEAR 
    $526  
    $50,433 

    CASH PAID FOR INTEREST AND TAXES: 

    Cash paid for income taxes 
    $-  
    $- 
  
    Cash paid for interest 
    $(55,055) 
    $(31,403)

    NON-CASH INVESTING AND FINANCING ACTIVITIES 

    Fair value of warrants issued with convertible notes 
    $109,268  
    $1,045,655 
  
    Conversion of convertible debt to equity 
    $441,971  
    $432,500 
  
    Fair value of warrants issued on debt extinguishment 
    $102,353  
    $- 
  
    Fair value of warrants issued for equity method investments 
    $-  
    $108,220 

The accompanying notes
are an integral part of these audited consolidated financial statements.

F-6

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

1ORGANIZATION AND DESCRIPTION
OF BUSINESS

a)Organizational history

On May
12, 2016, Innovative Payment Solutions, Inc., a Nevada corporation (“IPSI” or the “Company”) (originally formed
on September 23, 2013 under the name “Asiya Pearls, Inc.”), entered into an Agreement and Plan of Merger (the “Qpagos
Merger Agreement”) with Qpagos Corporation, a Delaware corporation (“Qpagos Corporation”), and Qpagos Merge, Inc., a
Delaware corporation and wholly owned subsidiary of the Company (“Merger Sub”). Pursuant to the Qpagos Merger Agreement,
on May 12