Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 235

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 235
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 currently a fintech provider of digital payment solutions presently focused on, through its participation in IPSIPay Express,
developing a new account-to-account payment application called Instant Direct Payments as well as traditional credit card processing services.
The Company has in the past (under the name IPSIPay) and may in the future develop and operate “e-wallets” that enable consumers
to deposit cash, convert it into a digital form and remit funds quickly and securely.

IPSIPay
Express

On
April 28, 2023, the Company formed a new company called IPSIPay Express. This entity was formed as a Delaware limited liability company
joint venture with OpenPath, Inc. (“OpenPath”) and EfinityPay, LLC (“EfinityPay”, and the Company, collectively
with OpenPath and EfinityPay, the “Members”) to develop and market a proprietary consumer to merchant real-time
payment platform initially focused on the fast-growing online gaming and entertainment sectors.

On
June 19, 2023, the Company entered into a Limited Liability Company Operating Agreement (the “Operating Agreement”) with OpenPath
and EfinityPay to jointly provide for the governance of and rights of the Members with respect to IPSIPay Express. The effective date
of the Operating Agreement is April 28, 2023.

IPSIPay
Express was formed by the Members with the initial business purposes of providing credit card processing solutions and also a proprietary
solution for real time bank-to-bank payment transactions in a manner that provides seamless and frictionless consumer and merchant experiences,
with an initial focus on merchants operating in gaming and entertainment sectors. Such solutions are collectively referred to herein as
“IPEX.”

Pursuant
to the Operating Agreement, the Company agreed to contribute cash to or on behalf IPSIPay Express to be used for the IPEX business in
the aggregate amount of up to $1,500,000 (the “IPSI Capital Contribution”). The Company was required to make the IPSIPay
Capital Contribution in three tranches of $500,000 (each, a “Tranche”), or such lesser amounts as may be unanimously
approved by the Board of Managers of IPSIPay Express. With the full funding of each Tranche, the Company will automatically receive an 11.11%
membership interest in IPSIPay Express (or a pro rata portion thereof if less than a full Tranche is funded), and OpenPath and EfinityPay’s
percentage interest in