Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 7

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 7
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Carmel By The Sea, California.

6

The Merger was treated
as a reverse acquisition of our company, which was then a public shell company, for financial accounting and reporting purposes. As such,
Qpagos Corporation was treated as the acquirer for accounting and financial reporting purposes while IPSI was treated as the acquired
entity for accounting and financial reporting purposes.

Pursuant to a Stock
Purchase Agreement dated June 22, 2021 (the “Frictionless SPA”), we acquired a 10% common stock interest in Frictionless.
Frictionless agreed to deliver to us, a live, fully compliant financial payment Software as a Service solution for use by us as a digital
payment platform that enables payments within the United States and abroad, including Mexico, together with a service agreement providing
a full suite of product services to facilitate our anticipated product offerings. Under the terms of the Frictionless SPA, we were granted
irrevocable rights to (i) participate up to fifty percent (50%) in future financings of Frictionless and (ii) acquire up to an additional 41%
of the outstanding common stock of Frictionless at a purchase price of $300,000 for each 1% acquired. Further, pursuant to
the Frictionless SPA, we agreed to issue to Frictionless or its designees a non-restricted, non-dilutable, five-year warrant to purchase 1,000,000
(30,000,000 pre-split) shares of our common stock at an exercise price of $4.50 ($0.15 pre-split) per share based on the delivery
of the financial payment software in accordance with the SPA. On December 30, 2022, we issued a warrant to Frictionless in satisfaction
of this obligation. Due to the pricing of financings undertaken by us between the date of the Frictionless SPA and the date the warrant
was granted, the exercise price of the warrant was set upon issuance at $0.345 ($0.0115 pre-split) per share. Further, the warrant
issued to Frictionless was for restricted shares of common stock and the “non-dilutable” provision was omitted.

On August 26, 2021,
we formed a new subsidiary, Beyond Fintech to acquire a product known as Beyond Wallet from a third party, together with the logo, use
of name and implementation of the product into our technology. We own