Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 192

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 192
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0.5
million from convertible debt during the current period. In the prior period we generated $1.0 million of notes payable and convertible
debt. and repaid $0.3 million of convertible debt.

At September 30, 2025, we
had outstanding convertible debt, including interest thereon of $5.5 million, net of unamortized debt discount of $0.1 million and outstanding
notes payable, including interest thereon of $1.9 million. The notes contain certain covenants, such as restrictions on: (i) distributions
on capital stock, (ii) stock repurchases, and (iii) sales and the transfer of assets. The notes bear interest at a rates ranging
from 0% to 18% per annum. and are convertible into our common stock at conversion prices ranging from fixed conversion prices of $0.005
per share (as adjusted for stock splits, stock combinations, dilutive issuances and similar events), to fixed conversion prices of $0.345.
Should the investors choose not to convert these convertible notes, we may need to repay these notes together with interest thereon which
will impact on our liquidity.

Given our losses and negative
cash flows, we will be required to raise significant additional funds by issuing equity or equity-linked securities to progress our existing
business model with IPSIPay Express. Additional debt financing, if available, may involve covenants restricting our operations or our
ability to incur additional debt. Any additional debt financing or additional equity that we raise may contain terms that are not favorable
to us or our stockholders and require significant debt service payments, which diverts resources from other activities. Moreover, there
is a risk that financing may be unavailable to support our operations on favorable terms, or at all.

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There is also a significant risk that none
of our plans to raise financing will be implemented in a manner necessary to sustain us for an extended period of time. If adequate funds
are not available to us when needed, we may be required to continue with reduced or discontinued operations or to obtain funds through
arrangements that may require us to relinquish rights to technologies or potential markets, any of which could have a material adverse
effect on our Company. In addition, our inability to secure additional funding when needed could cause our business to fail or become
bankrupt or force us to wind down or discontinue operations, accordingly, there is substantial doubt relating to our ability to continue