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

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 a Certificate of Change with the Secretary of State of the State of Nevada to effect
a reverse split of the then outstanding Common Stock at a ratio of 1-for-10, effective on November 1, 2019 (the “Reverse Stock
Split”). As a result of the Reverse Stock Split, each ten pre-split shares of Common Stock outstanding automatically combined into
one new share of Common Stock without any further action on the part of the holders, and the number of outstanding shares of Common Stock
was reduced from 320,477,867 shares to 32,047,817 after rounding for fractional shares.

On December 31, 2019, the Company
consummated the disposal of Qpagos Corporation, Qpagos Mexico and Redpag in exchange for 2,250,000 shares (the “Vivi Shares”)
of common stock of Vivi Holdings, Inc. (“Vivi. or “Vivi Holdings”) pursuant to a Stock Purchase Agreement dated August
5, 2019 (the “SPA”). Of the 2,250,000 shares of Vivi, nine percent (9%) was allocated as follows: Gaston Pereira
(5%), Andrey Novikov (2.5%), and Joseph Abrams (1.5%). The transactions contemplated by the SPA closed on December 31, 2019 after
the satisfaction of customary conditions, the receipt of a final fairness opinion and the approval of the Company’s shareholders.
As a result, the Company no longer has any business operations in Mexico and has retained its U.S. operations, currently based in Carmel
By The Sea, California.

On June 21, 2021, the Company acquired
a 10% strategic interest in Frictionless Financial Technologies, Inc. (“Frictionless”). Frictionless delivered
to the Company, a live fully compliant financial payment Software as a Service solution for use by the Company as a digital payment platform
(which was subsequently branded as IPSIPay) that enabled payments within the United States and abroad, including Mexico, together with
a service agreement providing a full suite of product services to facilitate the Company’s anticipated product offerings. The Company
had an irrevocable right to acquire up to an additional 41% of the outstanding common stock of Frictionless at a purchase price
of $300,000 for each 1% acquired.

5

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes