Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 153

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 153
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 2025, and iv) the
Company will seek approval to increase it authorized common stock by October 31, 2025, by a number to be determined by the management
of the Company, failing which the original terms of the convertible note would prevail. On October 3, 2025, the Company increased its
authorized shares of common stock to 1,500,000,000 shares.

The
balance of the Cavalry Note plus accrued interest at September 30, 2025 was $898,872.

Mercer
Street Global Opportunity Fund, LLC

On
February 16, 2021, the Company closed a transaction with Mercer, 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 is convertible into shares of Common Stock at an initial conversion
price of $6.90 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 due under the note are immediately due and payable. The Company is currently negotiating with
Mercer to place the note into forbearance, currently interest is being accrued at the default interest rate of 18% per annum in terms
of the agreement.

In
consideration for the November 16, 2022 extension, the Company agreed to (i) increase the principal amount outstanding and due to Mercer
by twenty percent (20%) and (ii) issue a new five-year warrant to purchase an additional 100,000 shares of Common Stock at
an exercise price of $4.50 per share. In consideration of the December 30, 2022