Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 9

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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 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 500,000 shares of Common Stock agreed to return 497,500 shares
of Common Stock held by such holder to the Company and such holder retained an aggregate of 2,500 shares of Common Stock. The
other stockholders of the Company retained 500,000 shares of Common Stock. Therefore, immediately following the Qpagos Merger,
Qpagos Corporation’s former stockholders held 4,992,900 shares of Common Stock which represented approximately 91%
of the outstanding Common Stock.

The Qpagos Merger was treated as a reverse
acquisition of the Company, then a public shell company, for financial accounting and reporting purposes. As such, Qpagos Corporation
was treated as the acquirer for accounting and financial reporting purposes while the Company was treated as the acquired entity for accounting
and financial reporting purposes.

Qpagos Corporation was incorporated
on May 1, 2015 under the laws of the state of Delaware to effectuate a reverse merger transaction with Qpagos, S.A.P.I. de C.V. (“Qpagos
Mexico”) and Redpag Electrónicos S.A.P.I. de C.V. (“Redpag”). Each of the entities were incorporated in November
2013 in Mexico. Qpagos Mexico was formed to process payment transactions for service providers it contracts with, and Redpag was formed
to deploy and operate kiosks as a distributor. 

On June 1, 2016, the board of directors
of the Company (the “Board”) changed the Company’s fiscal year end from October 31 to December 31.

On November 1, 2019, the Company
changed its corporate name from “QPAGOS” to “Innovative Payment Solutions, Inc.” Additionally, and immediately
following the name change, the Company filed