Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 1132

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 1132
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ing in an additional charge of $920,392, consisting of a mark-to-market warrant cost of $(43,608) and the value of the notes
of $964,000 (see note 12 above) and the value of full rachet provisions of certain of the warrants issued to the Cavalry
and Mercer amounting to $841,003 (see note 14 below), the amendment of the Cavalry/Mercer Notes was determined to be a debt extinguishment.

Effective
December 30, 2023 on February 27, 2024, the Company again extended the maturity dates of each of the Cavalry/Mercer Notes 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.

Cavalry
Fund LLP

On
February 16, 2021, the Company closed a transaction with Cavalry pursuant to which the Company received net proceeds of $500,500, after
an original issue discount of $71,500 in exchange for the issuance of a $572,000 Senior Secured Convertible Note, bearing interest
at 10% per annum and maturing on February 16, 2022. The Note was convertible into shares of Common Stock at an initial conversion
price of $0.23 per share, in addition, the Company issued a warrant exercisable for 82,899 shares of Common Stock
at an initial exercise price of $7.20 per share.

As
described more fully above, the maturity date of the note was extended to August 16, 2022, additionally to November 16, 2022, additionally
to December 30, 2023 and again 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