Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 167

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 167
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2025, the Company received conversion
notices from convertible note holders converting an aggregate of $29,403 into 50,261,874 shares of common stock at a conversion
price of $0.000585 per share, resulting in a loss on conversion of $185,474. 

Convertible debt funding

On July 24, 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 $50,000. The note is 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 10,000,000 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.

Cancellation of certain warrants
and issue of common shares in lieu thereof and modification of conversion features of certain convertible notes.

On
August 13, 2025, the Company entered into an agreement with certain convertible note holders and warrant holders whereby the Company
and the convertible note and warrant holders agreed as follow:

●To cancel
certain warrants exercisable for 1,853,425,066 shares of common stock and issue the investors an aggregate of 10,000,000 shares of common
stock in lieu thereof.

●To modify the conversion price of certain convertible debt from prices ranging from $0.0005 to $0.345 to a conversion price of $0.01 per share of common stock, thereby reducing the number of shares of common stock that the aggregate convertible debt at June 30, 2025 is convertible into from 4,039,314,101 to 285,033,744. This is subject to certain conditions, including i