Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 1386

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 1386
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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, 2023; (iii) the second $500,000 Tranche was
paid in September 2023 and (iv) the third $500,000 Tranche was expected to be paid on or before November 30, 2023. In late 2023,
the Company agreed with its joint venture partners that such investment was not required as IPEX is not operational. The need for any
additional advances will be addressed with the joint venture partners once IPEX becomes operational and begins generating revenue, the
Company’s current equity holding in IPSIPay Express remains at 22%.

F-8

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

1ORGANIZATION AND DESCRIPTION
OF BUSINESS (continued)

b)Description
of current business (continued)

Simultaneously
with the funding of the initial Tranche, the Company issued to each of OpenPath and EfinityPay a five-year Common Stock purchase warrant
(the “IPEX Warrant”) to purchase 133,334 shares of Common Stock with an exercise price of $0.45 per share.
We are still obligated to issue to each of OpenPath and EfinityPay an additional IPEX Warrant to purchase 199,999 shares of
Common Stock with an exercise price equal to the average public closing price of the Common Stock for the three trading days immediately
prior to the funding of the initial Tranche. Sim