Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 1246

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 6
Chunk 1246
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 stake, with Frictionless owning the remaining 49%. Beyond Fintech acquired an exclusive license to a product known
as Beyond Wallet, to further its objective of providing virtual payment services allowing U.S. persons to transfer funds to Mexico
and other countries.

F-7

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

1ORGANIZATION AND DESCRIPTION
OF BUSINESS (continued)

a)Organizational history (continued)

On
May 12, 2023, the Company entered into an Agreement with Frictionless (the “May 2023 Frictionless Agreement”) to unwind
the equity ownership stakes that the Company and Frictionless have in each other and in Beyond Fintech. Pursuant to the May 2023 Frictionless
Agreement: (i) the Company assigned to Frictionless all common stock of Frictionless owned by the Company; (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 (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 was a credit against potential future services to be provided by Frictionless to the Company
in an amount up to $250,000. As a result of the novation agreement with Frictionless discussed below, the Company no longer utilizes,
and does not expect to utilize, the services of Frictionless for the foreseeable future. The collectability of the remaining credit receivable
of $231,431 was impaired.

On
August 30, 2023, the Company implemented a 1 for 30 reverse stock split of its Common Stock. Unless the context expressly requires
otherwise, as used in this Report, all share and per share numbers reflect such reverse stock split.

On
September 5, 2023, the Company’s entered into a novation