Company: IPSI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044146
Chunk: 127

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 127
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Mercer
Street Global Opportunity Fund, LLC (continued)

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.

On
January 14, 2025, Mercer 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 Mercer Note plus accrued interest at March 31, 2025 was $1,098,637.

Red
Road Holdings Corporation

●On April 2, 2024, the
Company closed a transaction with RRH pursuant to which the Company received net proceeds of $70,000, after an original issue discount
and fees of $18,500 in exchange for the issuance of a $88,500 Convertible Note (“RRH Note 4”), bearing interest
at 15%, which interest was earned on issuance of the note, an effective interest rate of 24.98%, and matured on December 30,
2024. The RRH Note 4 had mandatory repayments of $61,065 on September 30, 2024 and $13,570 per month on October 30, 2024, November
30, 2024 and December 30, 2024. The RRH Note 4 is convertible into shares of Common Stock at a variable conversion rate of 65% of
the lowest trading price