Company: IPSI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044146
Chunk: 357

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part II, Item 1A
Chunk 357
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Item 1A. Risk Factors.

We are a smaller reporting
company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise required under this Item.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Unregistered Sales of Equity Securities 

Between January 7, 2025 and
March 28, 2025, in terms of conversion notices received from 5 convertible note holders, the Company issued 54,807,989 shares
of common stock for the conversion of $230,798 of convertible debt at a weighted average conversion price of $0.004211 (conversion
prices ranging from ($0.0325 to $0.001105) realizing an aggregate loss on conversion of $106,504.

Between April
7, 2025 and May 8, 2025, The Company received conversion notices from convertible note holders converting an aggregate of $79,652 into 80,052,341
shares of common stock at conversion prices ranging from $0.000585 to $0.001170 per share, resulting in a loss on conversion
of $52,187.

On April 29, 2025,
the Company entered into Securities Purchase Agreement pursuant to which the Company issued a convertible promissory note and a warrants
to one accredited investment entity for total gross proceeds of $150,000, less expenses of $6,000 for net proceeds of $144,000. The notes
are unsecured, mature 12 months from issuance date and bear interest at a rate of 8% per annum based on a 360 day trading-year, and
are convertible into shares of common stock of the Company at a conversion price of $0.005 per share (as adjusted for stock splits,
stock combinations, and similar events). The Notes may be prepaid at any time without penalty. The Note contains customary events of default.
The Company is under no obligation to register the shares of Common Stock underlying the Notes for public resale. In terms of the Securities
Purchase Agreement, the Company issued five-year warrants to purchase an aggregate of 30,000,000 shares of the Common Stock
at an exercise price of $0.005 per share (as adjusted for stock splits, stock combinations, and similar events). The Company is under
no obligation to register the shares of Common Stock underlying the Note or the Warrant, for public resale.

Use of Proceeds