Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 1411

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 1411
---

consideration for the November 16, 2022 extension, the Company agreed to (i) increase the principal amount outstanding and due to Mercer
by twenty percent (20%) and (ii) issue a new five-year warrant to purchase an additional 100,000 shares of Common Stock at an
exercise price of $4.50 per share. In consideration of the December 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) Mercer 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 Mercer for resale
with the Securities and Exchange Commission and filed the registration statement to satisfy the Company’s registration obligation.

Between
May 19, 2023 and August 30, 2023, Mercer converted an aggregate of $100,000 into 289,856 shares of common stock at a conversion
price of $0.345 per share, realizing a loss on conversion of $48,551.

Between
August 20, 2024 and November 11, 2024, Mercer converted an aggregate of $197,348 of interest into 2,349,380 shares of Common
Stock at a conversion price of $0.084 per share, realizing a loss on conversion of $89,527. Such conversion caused a reduction in
the $0.345 conversion price of the notes described above to $0.084 (see note 14).

The
balance of the Mercer Note plus accrued interest at December 31, 2024 was $1,051,013.

Red
Road Holdings Corporation

●On September 9, 2023,
the Company closed a transaction with Red Road Holdings Corporation (“RRH”) pursuant to which the Company received net proceeds
of $125,000, after an original issue discount and fees of $21,900 in exchange for the issuance of a $146,900 Convertible Note
(“RRH Note 1”), bearing interest at 13%, which interest was earned on issuance of the note, an effective interest rate
of 29.3%, and matured