Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 197

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 197
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ised upon an alleged two-year contract signed in May 2021 that paid him $7,000 per month
and that promised him 333,334 shares of Common Stock (after giving effect to our August 2023 reverse stock split) on or about June 29,
2021. We have not received meaningful information on the amount of the claims of the other two plaintiffs.

39

An arbitrator was appointed through the American
Arbitration Association and the arbitrator issued a scheduling order and Notice of Hearing. The ten-day arbitration has been set for April
7-11, 2025, and April 14-18, 2025. Management continues its vigorous defense of the claims.

In mid-April 2024, the Company
and Mr. Corbett changed attorneys. The Law Offices of Jeffrey B. Neustadt replaced prior counsel. Mr. Neustadt and Plaintiffs’ counsel
conferred and timely submitted the required joint statement on April 25, 2024.

Initial discovery was served
by both sides. Documents were exchanged, and depositions proceeded for all persons.

On March 4, 2025, the Company
and Mr. Corbett, entered into a settlement agreement with Naum Voloshin, Andrey Novikov, Frank Perez, Yulia Rey and Alexander Voloshin
(the “Plaintiff Group”), whereby the Company agreed to pay $500,000 in settlement and full and final resolution of all claims
and causes of action that the Plaintiff Group, or any member thereof, holds or has asserted (or could have asserted) against the Company
and Mr. Corbett.

Within 5 days of March 4,
2025, the Company agreed to pay $100,000 (the “First Payment”) and within 60 days the Company agreed to pay a further $100,000
including interest thereon at 10% per annum from March 5, 2025, and within 240 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. The Company has not made the second
instalment as of the date of this report and has not issued the convertible notes, securing the obligations, as discussed below, as of
the date of this report.

Any breach of the terms of
the settlement agreement will result in a payment