Company: IPSI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044146
Chunk: 125

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 125
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30, 2022 extension, the Company agreed to the following terms;
(i) the conversion price of the Note was reduced from $4.50 to $0.345 per share; (ii) Cavalry agreed (a) not to convert all
or any portion of the Notes until after March 30, 2023 and (b) waive any events of default under the Note and the SPA; (iii) the Company
agreed to and registered the shares of Common Stock underlying the Note and the shares underlying all warrants held by Cavalry for resale
with the Securities and Exchange Commission and filed the registration statement to satisfy the Company’s registration obligation.

Between
August 24, 2023 and November 20, 2023, Cavalry converted $139,726 of interest and $192,774 of principal into 963,769 shares
of Common Stock at a conversion price of $0.345 per share realizing a loss on conversion of $42,210.

Between
September 5, 2024 and November 11, 2024, Cavalry converted an aggregate of $79,608 of principal and $88,876 of interest into 2,005,762 shares
of Common Stock at a conversion price of $0.084 per share realizing a loss on conversion of $37,490. Such conversion caused a reduction
in the $0.345 conversion price of the notes described above to $0.084.

On January 14, 2025, Cavalry
converted an aggregate $13,346 of interest into 526,474 shares of common stock at a conversion price of $0.0254 per share. The Company
realized a gain on conversion of $184. 

In terms of the agreement with Cavalry,
the conversion price of the convertible note will be adjusted downwards on any dilutive issuances. The conversion price of the convertible
debt has been adjusted to $0.001105, the lowest conversion price of conversions executed during the three months ended March 31, 2025.

The
balance of the Cavalry Note plus accrued interest at March 31, 2025 was $860,467.

Mercer
Street Global Opportunity Fund, LLC

On
February 16, 2021, the Company closed a transaction with Mercer, pursuant to which the Company received net proceeds of $500,500, after
an original issue discount of $71,500 in exchange for