Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 184

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 184
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 with Naum Voloshin, Andrey Novikov, Frank Perez, Yulia Rey and Alexander Voloshin
(the “Plaintiff Group”), whereby the Company agreed to pay $500,000 in settlement and full and final resolution of all claims
and causes of action that the Plaintiff Group, or any member thereof, holds or has asserted (or could have asserted) against the Company
and Mr. Corbett.

Within 5 days of March 4,
2025, the Company agreed to pay $100,000 (the “First Payment”) and within 60 days the Company agreed to pay a further $100,000
including interest thereon at 10% per annum from March 5, 2025, and within 240 days, a final payment of $300,000, including interest thereon
at 10% per annum from March 5, 2025. The initial payment of $100,000 was made on March 24, 2025. The Company has not made the second
instalment as of the date of this report and has not issued the convertible notes, securing the obligations, as discussed below, as of
the date of this report.

Any breach of the terms of
the settlement agreement will result in a payment to the Plaintiffs of liquidated damages of $25,000 for each event of default. We are
negotiating with the plaintiffs on the payment of the second instalment, and may be obligated to pay the additional $25,000 default penalty,
if we are unable to agree to waive it.

In order to secure the obligations
to the Plaintiff Group, the Company is to execute two convertible notes, the first note for $100,000 (“Note 1”) and the second
note for $300,000 (“Note 2”). Each note bears interest at the rate of 10% per annum, Note 1 has a maturity date of 60 days
and Note 2, 240 days from March 5, 2025. The Notes will be convertible upon an event of default, which includes any failure to pay any
of the installments. The Notes plus any accrued interest thereon, are convertible into common stock of the Company at a conversion price
of $0.02 per share or the lowest conversion price of the senior secured note holders, as determined and established as the conversion
price for all their notes outstanding as of March 5, 2025, if there are any limits on