Company: IPSI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044146
Chunk: 25

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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 obligations). The Company is
under no legal obligation to reserve such number of shares for future issuance.

On February
27, 2024, the maturity date of the notes was extended to April 30, 2024 with an automatic one-month extension each month until such time
as the note is declared to be in default, all other terms remain the same as the previous notes. The automatic extension of the maturity
date may not extend past November 27, 2024, thereafter all amounts due under the note are immediately due and payable. The Company performed
an analysis in terms of ASC 470 and it was determined that the extension was a debt modification, in addition, no additional consideration
was paid for the maturity date extension.

With effect
from November 27, 2024, the notes accrue interest at 18% per annum, the default interest rate per the note agreement.

2024
Notes

Between May
29, 2024 and November 27, 2024, the Company entered into nine Securities Purchase Agreements with four accredited investors, pursuant
to which the Company issued nine notes payable (the “2024 Notes”) with an aggregate principal amount of $577,778 for
gross proceeds of $433,333, after taking into account an aggregate original issuance discount of $144,445.

The 2024 Notes
mature between February 28, 2025 and October 10, 2025 and bear interest at rates ranging from 0.0% to 8.5% per annum.

The 2024 Notes
have restrictions relating to fundamental transactions which require the approval of the note holder, in addition the note holder has
an optional redemption right on subsequent transactions that may require the Company to redeem all or part of the Note, at a premium of 120%
of the cash amount of the Note, at the note holder’s discretion.

As of
March 31, 2025, notes with a principal amount of $1,097,333 and interest thereon of $256,903 are technically in default. None of these note holders have declared a default.

16

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

    8
    CONVERTIBLE DEBT

Convertible
debt payable consists of the following:

  Description   Interest Rate    Maturity
date***   Principal   Accrued Interest   Unamortized debt discount