Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 2185

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7A
Chunk 2185
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); 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, 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 was impaired.

On
August 30, 2023, the Company implemented a 1 for 30 reverse stock split of its Common Stock. Unless the context expressly requires
otherwise, as used in this Report, all share and per share numbers reflect such reverse stock split.

On
September 5, 2023, the Company’s 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 LLC (“IPSIPay Express”) joint venture. See note 1(b) for further information.

b)Description
of current business

The
Company is currently a fintech provider of digital payment solutions presently focused on, through its participation in IPSIPay Express,
developing a new account-to-account payment application called Instant Direct Payments as well as traditional credit card processing services.
The Company has in the past (under the name IPSIPay) and may in the future develop and operate “e-wallets” that enable consumers
to deposit cash, convert it into a digital form and remit funds quickly and securely.

IPSIPay
Express

On
April 28, 2023, the Company formed a new company called IPSIPay Express. This entity was formed as a Delaware limited liability company
joint venture with OpenPath, Inc. (“OpenPath”) and EfinityPay, LLC (“EfinityPay”, and the Company, collectively
with OpenPath and EfinityPay, the “Members”) to develop and market a proprietary consumer to