Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 1401

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 1401
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2. Following
the expiry of the lease term, the landlord has agreed to continue the lease on a month-to-month basis at $4,800 per month. On January
1, 2023, the Company entered into a new month-to-month lease, with a 90-day termination clause, for a monthly rental of $5,088. The lease
was terminated effective August 31, 2023.

The
Company applied the practical expedient whereby operating leases with a duration of twelve months or less are expensed as incurred.

F-16

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

10LEASES (continued)

Total
Lease Cost

Individual
components of the total lease cost incurred by the Company is as follows:

    Year ended December 31, 2024  
    Year ended December 31, 2023 
  
    Operating lease expense 
    $         -  
    $40,704 

Other lease
information:

    Year ended December 31, 2024  
    Year ended December 31, 2023 
  
    Cash paid for amounts included in the measurement of lease liabilities 

    Operating cash flows from operating leases 
    $              
    $(40,704)

11FEDERAL RELIEF LOANS

Small
Business Administration Disaster Relief loan

On
July 7, 2020, the Company received a Small Business Economic Injury Disaster loan amounting to $150,000, bearing interest at 3.75%
per annum and repayable in monthly installments of $731 commencing twelve months after inception with the balance of interest and
principal repayable on July 7, 2050. The loan is secured by all tangible and intangible assets of the Company. The proceeds are to be
used for working capital purposes to alleviate economic injury caused by the COVID-19 pandemic.

The
company has accrued interest of $8,869 and $9,369 on this loan as of December 31, 2024 and 2023, respectively.

12NOTES PAYABLE

Notes
payable consists of the following:

  Description  Interest Rate   Maturity date*  Principal   Accrued Interest   Unamortized debt discount   December 31, 2024 Amount, net   December  31, 2023 Amount, net   Cavalry Fund