Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 586

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1C
Chunk 586
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 Naum Voloshin, Andrey Novikov, Frank Perez, Yulia
Rey and Alexander Voloshin (the “Plaintiff Group”), whereby the Company agreed to pay $500,000 in settlement and full and
final resolution of all claims and causes of action that the Plaintiff Group, or any member thereof, holds or has asserted (or could have
asserted) against the Company and Mr. Corbett.

Within
5 days of March 4, 2025, the Company will pay $100,000 (the “First Payment”) and within 60 days the Company will pay a further
$100,000 including interest thereon at 10% per annum from March 5, 2025, and within 24 days, a final payment of $300,000, including interest
thereon at 10% per annum from March 5, 2025. The initial payment of $100,000 was made on March 24, 2025.

Any
breach of the terms of the settlement agreement will result in a payment to the Plaintiffs of liquidated damages of $25,000 for each event
of default.

In
order to secure the obligations to the Plaintiff Group, the Company executed two convertible promissory notes, the first note for $100,000
(“Note 1”) and the second note for $300,000 (“Note 2”). Each note bears interest at the rate of 10% per annum,
Note 1 has a maturity date of 60 days and Note 2, 240 days from March 5, 2025. The Notes will be convertible upon an event of default,
which includes any failure to pay any of the installments. The Notes plus any accrued interest thereon, are convertible into common stock
of the Company at a conversion price of $0.02 per share or the lowest conversion price of the senior secured note holders, as determined
and established as the conversion price for all their notes outstanding as of March 5, 2025, if there are any limits on trading or the
trading price falls below $0.01 per share, the conversion price will be discounted by a further 15%. The notes provide for certain events
such as mergers and consolidations, distributions to shareholders, and stock splits and dividends. 

F-35

Item 9. Changes in
and Disagreements with Accountants on Accounting and Financial Disclosures

None.

Item 9