Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 395

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 395
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ictionless all common stock of Frictionless owned by the Company (representing a 10% ownership interest in Frictionless); (ii)
the warrant to purchase 1,000,000 shares of Common Stock previously issued by the Company to Frictionless as of December 30,
2022 was cancelled; (iii) the Company assigned to Frictionless all shares of common stock of Beyond Fintech owned by the Company (representing
a 51% ownership interest in Beyond Fintech) (the “Beyond Fintech Shares”); and (iv) the rights previously granted to
the Company to (a) acquire additional equity interests in Frictionless, (b) participate in future financings of Frictionless and (c) appoint
a board member of Frictionless were terminated. The consideration to the Company for the assignment of the Beyond Fintech Shares to Frictionless
is $250,000, which will be paid by Frictionless exclusively in the form of 20% credits against invoices for work done by Frictionless
for the Company for the 18-mobnth period following the closing under the existing software services between the Company and Frictionless.
The May 2023 Frictionless Agreement has customary representations, indemnification and mutual release provisions. The closing of the transactions
contemplated by the May 2023 Frictionless Agreement occurred on May 12, 2023.

The
assets and liabilities disposed of as of May 12, 2023 were as follows:

    Amount 
  
    Assets 

    Current Assets 

    Cash 
    $339 

    Non-current assets 

    Intangible assets 
     327,211 
  
    Security deposit 
     15,000 
  
    Investment 
     500,000 

     842,211 
  
    Total assets 
     842,550 

    Liabilities 

    Current Liabilities 

    Accounts payable 
     97,126 

    Net assets sold 
     745,424 
  
    Proceeds due on disposal 
     (250,000)
  
    Net loss on disposal 
    $495,424 

F-14

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

5NOVATION  OF CERTAIN
ASSETS AND LIABILITES

On
September 5,