Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 1276

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 6
Chunk 1276
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2025 and March 30, 2025. The RRH Note 5 is convertible into shares of Common Stock at a variable conversion rate
of 65% of the lowest trading price ten trading days before conversion.
 
The first
instalment was not made, automatically placing the note into default, with a penalty charge of 150% of the total balance outstanding of
$71,921 recorded by the Company on December 30, 2024.
 
The
balance owing on the RRH Note 5 plus accrued interest, net of unamortized debt discount of $40,043 at December 31, 2024 was $173,798.

F-22

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

13CONVERTIBLE NOTES PAYABLE
(continued)

Quick Capital,
LLC

    ●  On March 4, 2024, the Company closed a transaction with Quick Capital, LLC (“Quick Capital”) pursuant to which the Company received net proceeds of $94,000, after an original issue discount and fees of $20,286 in exchange for the issuance of a $114,286 Convertible Note (“Quick Cap Note 1”) , bearing interest at an effective interest rate of 11.12% per annum, which interest is earned on issuance of the note, and maturing on September 4, 2024. The Quick Cap Note 1 has monthly 30,875 commencing on May 4, 2024. The Note was convertible into shares of Common Stock at an adjusted conversion price of $0.084 per share, in addition, the Company issued a warrant exercisable for 357,764 shares of Common Stock at an initial exercise price of $0.345 per share. The warrant has full ratchet price protection which has resulted in the number of shares exercisable under the warrant increasing to 1,469,388 and the exercise price being amended to $0.084 per share.   The Company had repaid an aggregate of $92,523 of the principal and interest outstanding and between September 6, 2024 and September 17, 2024, Quick Capital converted an aggregate of $32,906, including a penalty of $2,000 into 391,736 shares of Common Stock at a conversion price of $0.084 per share, realizing a loss