Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 161

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 161
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On
June 2, 2025, a 2024 convertible note holders converted principal of $2,138 and interest of $2,162, totaling $4,300 into 8,600,000 shares
of common stock at a conversion price of $0.0005.

On
September 30, 2025, a 2023 convertible note holder converted principal of $250,000 and interest of $40,500 into 14,525,000 shares of common
stock at a conversion price of $0.02 per share.

The
2023 Convertible Notes have an aggregate amount outstanding of $2,120,843 have all matured, and are technically in default, none
of the 2023 Convertible Note investors have declared a default.

The
2024 Convertible Notes have an aggregate amount outstanding of $659,881, net of unamortized debt discount of $1,394, of which convertible
notes with an aggregate amount outstanding of $553,778 matured and are technically in default.

One
noteholder with an aggregate amount outstanding of $19,195 declared a default, none of the other investors have declared a default,
this investor has not demanded payment as yet. The Company has advanced notes receivable to Business Warrior in an aggregate principal
amount of $406,190 and accrued interest thereon of $15,169. These investments were made out of proceeds received on notes payable
of $338,915 and convertible debt of $139,758 in the prior year from two investors who are in control of Business Warrior. We
intend to negotiate a global settlement whereby we will either collect the funds from Business Warrior or these two investors and utilize
the proceeds to settle our notes payable and convertible debt with these two investors, we do not expect to incur a loss or gain on a
negotiated settlement with these two investors.

The
2025 Convertible Notes have an aggregate amount outstanding of $712,583, net of unamortized debt discount of $72,424.

9DERIVATIVE
LIABILITY

The convertible debt and warrants issued
by the Company to Cavalry, Mercer, and Quick Capital, as described in Note 8 have variable priced conversion rights with no fixed floor
price and will re-price dependent on the share price performance over varying periods of time and certain notes and warrants have fundamental
transaction clauses which might result in cash settlement, due to these factors, all