Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 415

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 415
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9.99%, and that any increase shall
not be effective until the 61st day after such notice.

On
December 14, 2023, two notes totaling $225,000 ($200,000 and $25,000, respectively) which matured on December 31, 2023
were extended for an additional 3 months to March 30, 2024. In exchange for the extension, the Company issued the note holders additional
warrants exercisable for 292,463 shares of Common Stock at an exercise price of $0.345 per share. On May 4, 2024, the maturity
date of the $200,000 note was further extended to June 14, 2024, and the maturity date of the $25,000 note was further extended
to June 30, 2024. In exchange for the maturity date extension, the Company issued to the note holders additional warrants exercisable
for 292,463 shares of Common Stock at an exercise price of $0.345 per share.

On
March 14, 2024, the Company extended the maturity date of 11 convertible notes maturing between February 13, 2024 and February 23, 2024
by an additional six months and as consideration for the extension, the note holders were issued additional warrants exercisable for 387,673 shares
of Common Stock at an exercise price of $0.345 per share. The modification was assessed in terms of ASC 470 and determined to be
a debt extinguishment, resulting in the warrant value of $66,047 being expensed as a loss on convertible notes.

At
December 31, 2024, notes with a principal amount of $2,026,666 and accrued interest thereon on $254,901 have matured. Between
February 11, 2025 and February 19, 2025, convertible
note with a total balance outstanding of $772,669 had
maturity dates extended to December 31,2025 in exchange for a reduction in the conversion price of the convertible notes to $0.04 per
share. The Company will perform an analysis in terms of ASC 470 and determine whether the extension of the maturity date and the reduction
in the conversion price of the note is a debt modification or extinguishment. 

The
balance of the 2023 Convertible Notes and the 202