Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 655

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 655
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as adjusted for stock splits, stock combinations, dilutive issuances and similar
events). The note may be prepaid at any time without penalty. The Company is under no obligation to register the shares of Common Stock
underlying the notes or the warrants for public resale.

The note and warrant contain conversion limitations
providing that a holder thereof may not convert the notes or exercise the warrants, to the extent that, if after giving effect to such
conversion, the holder or any of its affiliates would beneficially own in excess of 4.99% (the “Maximum Percentage”)
of the outstanding shares of the Common Stock immediately after giving effect to such conversion or exercise. The holder may increase
or decrease its beneficial ownership limitation upon notice to the Company provided that in no event such limitation exceeds 9.99%,
and that any increase shall not be effective until the 61st day after such notice.

Between November 26, 2024 and November 27, 2024,
the Company entered into two Securities Purchase Agreements with accredited investors, pursuant to which the Company issued two senior
promissory notes each with a principal amount totaling $66,667 (totaling $133,334), for gross proceeds of $50,000 each (totaling
$100,000), including an aggregate original issuance discount of $16,667 (totaling $33,334), for each note. The notes mature on July
15, 2025 and bear interest at 0% per annum.

Between January 7, 2025 and February 20, 2025,
the Company entered into Securities Purchase Agreements pursuant to which the Company issued two convertible promissory notes and two
warrants to one accredited investment entity for total gross proceeds of $223,000. The notes are unsecured, mature 12 months from issuance
date and bear interest at a rate of 8% per annum based on a 360 day trading-year, and are convertible into shares of common stock
of the Company at a conversion price of $0.084 per share (as adjusted for stock splits, stock combinations, and similar events).
The Notes may be prepaid at any time without penalty. The Note contains customary events of default. The Company is under no obligation
to register the shares of Common Stock underlying the Notes for public resale. In terms of the Securities Purchase Agreement, the Company
issued five-year warrants to purchase an aggregate of 2,654,761 shares of the Common Stock