Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 1006

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 1006
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aneously with the funding of the second Tranche in September 2023, the Company became obligated to issue
to each of OpenPath and EfinityPay an additional IPEX Warrant to purchase 166,667 shares of Common Stock with an exercise price
equal to the average public closing price of the Common Stock for the three trading days immediately prior to the funding of the second
Tranche. Simultaneously with the funding of the third Tranche, the Company will issue to each of OpenPath and EfinityPay an additional
IPEX warrant to purchase 166,667 shares of Common Stock with an exercise price equal to the average public closing price of
the Common Stock for the three trading days immediately prior to the funding of the third Tranche. If the full IPSI Capital Contribution
is funded, OpenPath and EfinityPay will receive IPEX Warrants to purchase an aggregate of 1,333,334 shares of Common Stock.
See note 1(b) above. As of the date of this Report, it is not expected that the full IPSI Capital Contribution will be required to be
funded.

On
December 14, 2023, the maturity date of two notes totaling $225,000 ($200,000 and $25,000, respectively) which matured on December
31, 2023 were extended for an additional 3 months to March 30, 2024. In exchange for the maturity date extension, the Company issued the
note holders five-year warrants exercisable for 292,463 shares of Common Stock at an exercise price of $0.345 per share.
On May 4, 2024, the maturity date of the $200,000 note was further extended to June 14, 2024, and the maturity date of the $25,000 note
was further extended to June 30, 2024. In exchange for the maturity date extension, the Company issued to note holders warrants exercisable
for 292,463 shares of Common Stock at an exercise price of $0.345 per share.

During
2023, warrants exercisable for 33,334 shares expired as unexercised and an additional warrant exercisable for 1,000,000 shares
of Common Stock was forfeited on the disposal of Frictionless and Beyond Fintech.

F-27

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOT