Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 1164

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 1164
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 and within 24 days, a final payment of $300,000, including interest
thereon at 10% per annum from March 5, 2025. The initial payment of $100,000 was made on March 24, 2025.

Any
breach of the terms of the settlement agreement will result in a payment to the Plaintiffs of liquidated damages of $25,000 for each event
of default.

In
order to secure the obligations to the Plaintiff Group, the Company executed two convertible promissory notes, the first note for $100,000
(“Note 1”) and the second note for $300,000 (“Note 2”). Each note bears interest at the rate of 10% per annum,
Note 1 has a maturity date of 60 days and Note 2, 240 days from March 5, 2025. The Notes will be convertible upon an event of default,
which includes any failure to pay any of the installments. The Notes plus any accrued interest thereon, are convertible into common stock
of the Company at a conversion price of $0.02 per share or the lowest conversion price of the senior secured note holders, as determined
and established as the conversion price for all their notes outstanding as of March 5, 2025, if there are any limits on trading or the
trading price falls below $0.01 per share, the conversion price will be discounted by a further 15%. The notes provide for certain events
such as mergers and consolidations, distributions to shareholders, and stock splits and dividends. 

F-35

Item 9. Changes in
and Disagreements with Accountants on Accounting and Financial Disclosures

None.

Item 9A. Controls
and Procedures

Disclosure Controls
and Procedures

We have adopted and maintain
disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the
reports filed under the Exchange Act, such as this Annual Report, is collected, recorded, processed, summarized and reported within the
time periods specified in the rules of the SEC. Our disclosure controls and procedures are also designed to ensure that such information
is accumulated and communicated to management to allow timely decisions regarding required disclosure. As required under Exchange Act,
Rule 13a-15, our management, including our Chief Executive Officer (who is our Principal Executive Officer and our President and Chief
Financial Officer (who is our Principal Financial Officer), after evaluating