Company: IPSI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044146
Chunk: 10

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 OpenPath and EfinityPay,
the “Members”) to develop and market a proprietary consumer to merchant real-time payment platform initially focused
on the fast-growing online gaming and entertainment sectors.

On June 19, 2023, the Company entered
into a Limited Liability Company Operating Agreement (the “Operating Agreement”) with OpenPath and EfinityPay to jointly provide
for the governance of and rights of the Members with respect to IPSIPay Express. The effective date of the Operating Agreement is April
28, 2023.

IPSIPay Express was formed by the Members
with the initial business purposes of providing credit card processing solutions and also a proprietary solution for real time bank-to-bank
payment transactions in a manner that provides seamless and frictionless consumer and merchant experiences, with an initial focus on merchants
operating in gaming and entertainment sectors. Such solutions are collectively referred to herein as “IPEX.”

6

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

1ORGANIZATION AND DESCRIPTION
OF BUSINESS (continued)

b)Description of current business
(continued)

Pursuant to the Operating Agreement,
the Company agreed to contribute cash to or on behalf IPSIPay Express to be used for the IPEX business in the aggregate amount of up to
$1,500,000 (the “IPSI Capital Contribution”). The Company was required to make the IPSIPay Capital Contribution in three
tranches of $500,000 (each, a “Tranche”), or such lesser amounts as may be unanimously approved by the Board of Managers
of IPSIPay Express. With the full funding of each Tranche, the Company will automatically receive an 11.11% membership interest in
IPSIPay Express (or a pro rata portion thereof if less than a full Tranche is funded), and OpenPath and EfinityPay’s percentage
interest in IPSIPay Express will be reduced pro rata accordingly. Should the Company contribute the full IPSI Capital Contribution, the
Members will each own one-third (1/3) of the membership interests in IPSIPay Express. The IPSI Capital Contribution has been or will be
made by the following dates and in the following amounts: (i) $200,000 of the initial Tranche was paid by the Company on June 21,
2023; (ii) the $300,000 balance of the initial Tranche was paid on August 4,