Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 993

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 993
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iii) the Company
agreed to and registered the shares of Common Stock underlying the Note and the shares underlying all warrants held by Mercer for resale
with the Securities and Exchange Commission and filed the registration statement to satisfy the Company’s registration obligation.

Between
May 19, 2023 and August 30, 2023, Mercer converted an aggregate of $100,000 into 289,856 shares of common stock at a conversion
price of $0.345 per share, realizing a loss on conversion of $48,551.

Between
August 20, 2024 and November 11, 2024, Mercer converted an aggregate of $197,348 of interest into 2,349,380 shares of Common
Stock at a conversion price of $0.084 per share, realizing a loss on conversion of $89,527. Such conversion caused a reduction in
the $0.345 conversion price of the notes described above to $0.084 (see note 14).

The
balance of the Mercer Note plus accrued interest at December 31, 2024 was $1,051,013.

Red
Road Holdings Corporation

●On September 9, 2023,
the Company closed a transaction with Red Road Holdings Corporation (“RRH”) pursuant to which the Company received net proceeds
of $125,000, after an original issue discount and fees of $21,900 in exchange for the issuance of a $146,900 Convertible Note
(“RRH Note 1”), bearing interest at 13%, which interest was earned on issuance of the note, an effective interest rate
of 29.3%, and matured on June 15, 2024. The RRH Note 1 had mandatory monthly repayments of $18,444 which commenced on October
14, 2023. The RRH Note 1 was convertible into shares of Common Stock at a variable conversion rate of 60% of the lowest trading
price twenty trading days before conversion.

The RRH note 1 was repaid in full during the quarter ended June 30, 2024.

F-21

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

13CONVERTIBLE NOTES PAYABLE
(continued)

Red
Road Holdings Corporation (continued)

●On October 19, 2023,
the Company closed a transaction with RRH pursuant to which