Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 965

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 965
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 dated August 5, 2019 (the “SPA”). Of the 2,250,000 shares of Vivi, nine percent (9%) was allocated
as follows: Gaston Pereira (5%), Andrey Novikov (2.5%), and Joseph Abrams (1.5%). The transactions contemplated by the SPA closed
on December 31, 2019 after the satisfaction of customary conditions, the receipt of a final fairness opinion and the approval of the Company’s
shareholders. As a result, the Company no longer has any business operations in Mexico and has retained its U.S. operations, currently
based in Carmel By The Sea, California.

On
June 21, 2021, the Company acquired a 10% strategic interest in Frictionless Financial Technologies, Inc. (“Frictionless”).
Frictionless delivered to the Company, a live fully compliant financial payment Software as a Service solution for use by the Company
as a digital payment platform (which was subsequently branded as IPSIPay) that enabled payments within the United States and abroad, including
Mexico, together with a service agreement providing a full suite of product services to facilitate the Company’s anticipated product
offerings. The Company had an irrevocable right to acquire up to an additional 41% of the outstanding common stock of Frictionless
at a purchase price of $300,000 for each 1% acquired.

On
August 26, 2021, the Company formed a new subsidiary, Beyond Fintech, Inc. (“Beyond Fintech”), in which it owns
a 51% stake, with Frictionless owning the remaining 49%. Beyond Fintech acquired an exclusive license to a product known
as Beyond Wallet, to further its objective of providing virtual payment services allowing U.S. persons to transfer funds to Mexico
and other countries.

F-7

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

1ORGANIZATION AND DESCRIPTION
OF BUSINESS (continued)

a)Organizational history (continued)

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