Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 120

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 120
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 common stock of Frictionless owned by the Company; (ii) the warrant to purchase 1,000,000 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, 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