Company: IPSI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044146
Chunk: 24

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 31, 
2024 
Amount, net   Cavalry Fund I LP   18.0%  Matured   $482,000   $123,338   $-   $605,338   $583,648   Mercer Street Global Opportunity Fund, LLC   18.0%  Matured    482,000    123,338    -    605,338    583,648   2024 notes     0.0 to 18.0 %  February 28, 2025 to October 10, 2025    577,778    24,059    (42,867)   558,970    502,577                                       Total notes payable          $1,541,778   $270,735   $(42,867)  $1,769,646   $1,669,873  

Interest expense totaled $53,578 and
$24,368 for the three months ended March 31, 2025 and 2024, respectively.

Amortization of debt discount totaled
$46,195 and $0 for the three months ended March 31, 2025 and, respectively,

Cavalry
Fund I LP and Mercer Street Global Opportunity Fund, LLC

In terms of
the December 30, 2022 Note Amendment Transaction, described in more detail in note 8 below, the Original Warrants issued on February 16,
2021 were irrevocably exchanged for 12-month notes payable in the amount of $482,000 (the “Exchange Notes”) to each of
Cavalry and Mercer. This exchange caused the cancellation of the Original Warrants for all purposes.

The Exchange
Notes had a maturity date of December 30, 2023 and carried an interest rate of 10% per annum. The Company had the right, but
not the obligation, in lieu of a cash payment upon maturity of the Exchange Notes, to issue a total of 1,730,058 shares
of Common Stock, as adjusted for any stock splits, dividends or other similar corporate events, in full satisfaction of its obligations
under the Exchange Notes (or any pro rata portion of such number of shares in partial satisfaction of such