Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 690

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 690
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 basis, the
Company will be required to delay, and reduce the scope of the Company’s development and operations. Continuing as a going
concern is dependent upon its ability to successfully secure other sources of financing and attain profitable operations. The
accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to
continue as a going concern.

The Company has determined
that there is substantial doubt about their ability to continue as a going concern.

4DISPOSAL OF INVESTMENT IN
FRICTIONLESS AND BEYOND FINTECH

On
May 12, 2023, the Company entered into 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 (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