Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 8

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 8
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51% of Beyond Fintech with the other 49% owned by Frictionless.

On April 28, 2023, the
Company formed IPSIPay Express. See disclosure above for more information.

On May 12, 2023, the
Company entered into an Agreement with Frictionless (the “May 2023 Frictionless Agreement”) to unwind the equity ownership
stakes that the Company and Frictionless have in each other and in Beyond Fintech. Pursuant to the May 2023 Frictionless Agreement: (i)
the Company assigned to Frictionless all common stock of Frictionless owned by the Company; (ii) the warrant to purchase 1,000,000
(30,000,000 pre-split) shares of Common Stock previously issued by the Company to Frictionless as of December 30, 2022 was cancelled;
(iii) the Company assigned to Frictionless all shares of common stock of Beyond Fintech owned by the Company (the “Beyond Fintech
Shares”); and (iv) the rights previously granted to the Company to (a) acquire additional equity interests in Frictionless, (b)
participate in future financings of Frictionless and (c) appoint a board member of Frictionless, were terminated. The consideration to
the Company for the assignment of the Beyond Fintech Shares to Frictionless was a credit against potential future services to be provided
by Frictionless to the Company in an amount up to $250,000. As a result of the novation agreement with Frictionless discussed below (see
note 5), the Company no longer utilizes, and does not expect to utilize, the services of Frictionless for the foreseeable future. The
collectability of the remaining credit receivable of $231,431 has been impaired.

On September 5, 2023,
the Company entered into a novation agreement whereby it assigned all its rights and interest in its e-wallet product, IPSIPay, and its
receivables and payables due from and to Frictionless, related to IPSIPay, to a third party in order to concentrate all of its efforts
on the IPSIPay Express joint venture. See note 5 to the accompanying financial statements for further information.

Corporate Information

Our principal offices
are located at 56B 5th Street, Lot 1, #AT, Carmel by the