Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 1110

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 1110
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 the $300,000 balance of the initial Tranche was paid on August 4, 2023; (iii) the second $500,000 Tranche was
paid in September 2023 and (iv) the third $500,000 Tranche was expected to be paid on or before November 30, 2023. In late 2023,
the Company agreed with its joint venture partners that such investment was not required as IPEX is not operational. The need for any
additional advances will be addressed with the joint venture partners once IPEX becomes operational and begins generating revenue, the
Company’s current equity holding in IPSIPay Express remains at 22%.

F-8

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

1ORGANIZATION AND DESCRIPTION
OF BUSINESS (continued)

b)Description
of current business (continued)

Simultaneously
with the funding of the initial Tranche, the Company issued to each of OpenPath and EfinityPay a five-year Common Stock purchase warrant
(the “IPEX Warrant”) to purchase 133,334 shares of Common Stock with an exercise price of $0.45 per share.
We are still obligated to issue to each of OpenPath and EfinityPay an additional IPEX Warrant to purchase 199,999 shares of
Common Stock with an exercise price equal to the average public closing price of the Common Stock for the three trading days immediately
prior to the funding of the initial Tranche. Simultaneously with the funding of the second Tranche, we are obligated to issue to each
of OpenPath and EfinityPay an additional IPEX Warrant to purchase 166,667 shares of Common Stock with an exercise price equal
to the average public closing price of the Common Stock for the three trading days immediately prior to the funding of the second Tranche.
Should we decide to fund a third Tranche, we will be obligated to issue to each of OpenPath and EfinityPay an additional IPEX Warrant
to purchase 166,667 shares of Common Stock with an exercise price equal to the average public closing price of the Common Stock
for the three trading days immediately prior to the funding of the third Tranche. If the full IPSI Capital Contribution is funded, OpenPath
and EfinityPay will receive IPEX Warrants to purchase an aggregate of 1,