Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 146

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 146
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 immediately due and payable. The Company performed
an analysis in terms of ASC 470 and it was determined that the extension was a debt modification, in addition, no additional consideration
was paid for the maturity date extension.

With effect
from November 27, 2024, the notes accrue interest at 18% per annum, the default interest rate per the note agreement.

2024
Notes

Between May
29, 2024 and November 27, 2024, the Company entered into nine Securities Purchase Agreements with four accredited investors, pursuant
to which the Company issued nine notes payable (the “2024 Notes”) with an aggregate principal amount of $577,778 for
gross proceeds of $433,333, after taking into account an aggregate original issuance discount of $144,445.

The 2024 Notes
mature between February 28, 2025 and October 10, 2025 and bear interest at rates ranging from 0.0% to 8.5% per annum.

The 2024 Notes
have restrictions relating to fundamental transactions which require the approval of the note holder, in addition the note holder has
an optional redemption right on subsequent transactions that may require the Company to redeem all or part of the Note, at a premium of 120%
of the cash amount of the Note, at the note holder’s discretion.

As of September
30, 2025, notes with a principal amount of $1,408,444 and interest thereon of $379,994 are technically in default.

16

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

    8
    CONVERTIBLE DEBT

Convertible
debt payable consists of the following:

  Description   Interest Rate   Maturity date***  Principal   Accrued Interest   Unamortized debt discount   September 30, 2025 Amount, net   December 31, 2024 Amount, net   Cavalry Fund I LP   18.00%*  Matured  $819,371   $79,501   $-   $898,872   $836,942   Mercer Street Global Opportunity Fund, LLC   18.00%*  Matured   1,042,701    112,141    -    1,154,842    1,051,