Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 179

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 179
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AND CONTINGENCIES

The Company has notes payable and convertible
debt, disclosed under Notes 7 and 8 above, which had and have already matured and are technically in default.  Should the convertible
debt not be converted to Common Stock prior to their maturity dates, the Company may need to repay the principal and interest outstanding
on this convertible debt.

30

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

15SUBSEQUENT EVENTS

Conversion of convertible debt

Between October 9, 2025 and October
15, 2025, the Company received conversion notices from convertible note holders converting an aggregate of $472,712 into 36,385,616
shares of common stock at conversion prices ranging from $0.005 per share to $0.02 per share, resulting in a loss on conversion of $423,118. 

Convertible debt funding

On October 1, 2025, the Company entered
into two convertible note agreements pursuant to which the Company issued 2 convertible promissory notes, each totaling $62,500, each
with an original issue discount of $12,500, for net proceeds of $50,000 each. The notes are unsecured and mature on July 2, 2026, bearing
interest at 10% 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 the lesser of $0.01 or 90% of the average of the two lowest volume weighted average prices (“VWAPS”) for the 20 consecutive
trading days prior to conversion (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.

On October 1, 2025, the Company entered
into a securities purchase agreement pursuant to which the Company issued a convertible promissory note for $50,000 and a five year warrant
exercisable for 2,500,000 shares of common stock at an exercise price of $0.04 per share. The note is unsecured and matures on September
30, 2026, bearing interest at 8% per annum based on a 360 day trading-year, and are convertible into shares of common stock