Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 2

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 2
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X Warrant to purchase 166,667 shares
of Common Stock with an exercise price equal to the average public closing price of the Common Stock for the three trading days immediately
prior to the funding of the third Tranche. If the full IPSI Capital Contribution is funded, OpenPath and EfinityPay will receive IPEX
Warrants to purchase an aggregate of 1,333,334 shares of Common Stock.

Merger agreement
with Business Warrior Corporation

Business Warrior Corporation
(“Business Warrior”) is a publicly listed, revenue generating fintech company that offers PayPlan, a comprehensive lending
software platform that includes marketing services for lenders and businesses. We believed that a potential combination with a fintech
company that generates some revenue monthly would complement the development and commercial launch of our IPSIPay ExpressTM products
and potentially other product offerings.

On July 28, 2024, the
Company entered into an Agreement and Plan of Merger by and among the Company, IPSI Merger Sub, Inc., a Delaware corporation and a newly
formed, wholly owned subsidiary of the Company (“Merger Sub”) and Business Warrior.

On January 22, 2025,
the Company and Business Warrior mutually agreed to terminate the Agreement and Plan of Merger dated July 28, 2024. This decision reflects
our shared understanding and agreement that discontinuing the merger is in the best interest of both parties.

4

2024 Business Developments

IPSIPay Express

While we believe the
IPSIPay Express opportunity has great promise, as of the date of this report, IPEX has not been launched and we have derived no revenue
or cash distributions from IPSIPay Express. We expect that revenue will be generated by IPSIPay Express through fees derived from merchant
processing fees, money transfer fees, and commissions on international bill payment processing. To date, our activities related to IPSIPay
Express have included the following:

    ●
    Securing Banking Relationships. To engage in traditional
    credit card processing or the proposed IPEX account-to-account payment solution, it is necessary to work with qualified banking institutions
    through which transactions are processed. As of the date of this Report, such relationships are not  in place.

    ●
    Assisting with Payment Logistics. We have been working
    with our IPSIPay Express joint venture partners to establish the systems and technology necessary to effectuate payments through
    IPEX. As of the date