Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 231

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 231
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 to equity 
    $441,971  
    $432,500 
  
    Fair value of warrants issued on debt extinguishment 
    $102,353  
    $- 
  
    Fair value of warrants issued for equity method investments 
    $-  
    $108,220 

The accompanying notes
are an integral part of these audited consolidated financial statements.

F-6

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

1ORGANIZATION AND DESCRIPTION
OF BUSINESS

a)Organizational history

On May
12, 2016, Innovative Payment Solutions, Inc., a Nevada corporation (“IPSI” or the “Company”) (originally formed
on September 23, 2013 under the name “Asiya Pearls, Inc.”), entered into an Agreement and Plan of Merger (the “Qpagos
Merger Agreement”) with Qpagos Corporation, a Delaware corporation (“Qpagos Corporation”), and Qpagos Merge, Inc., a
Delaware corporation and wholly owned subsidiary of the Company (“Merger Sub”). Pursuant to the Qpagos Merger Agreement,
on May 12, 2016, the merger was consummated, and Qpagos Corporation and Merger Sub merged (the Qpagos “Merger”), with Qpagos
Corporation continuing as the surviving corporation of the Merger. On May 27, 2016, the Company’s name was changed from “Asiya
Pearls, Inc.” to “QPAGOS”.

Pursuant to
the Qpagos Merger Agreement, upon consummation of the Qpagos Merger, each share of Qpagos Corporation’s capital stock issued and
outstanding immediately prior to the Merger was converted into the right to receive two shares of the Company’s common stock, par
value $0.0001 per share (the “Common Stock”). Additionally, pursuant to the Qpagos Merger Agreement, upon consummation
of the Merger, the Company assumed all of Qpagos Corporation’s warrants issued and outstanding immediately prior to the Merger,
which were exercisable for an aggregate of approximately 621,920 shares of Common Stock as of the date of the Qpagos Merger.
Prior to and as a condition to the closing of the Qpagos Merger, a then-current holder of