Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 27

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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ensed Financial Statements

7NOTES
PAYABLE

Notes payable
consists of the following:

  Description  Interest Rate   Maturity date  Principal   Accrued Interest   Unamortized debt discount   September 30, 2025 Amount, 
net   December 31, 2024 Amount, 
net   Cavalry Fund I LP   18.0%  Matured  $482,000   $167,441   $-   $649,441   $583,648   Mercer Street Global Opportunity Fund, LLC   18.0%  Matured   482,000    167,441    -    649,441    583,648   2024 notes     0.0 to 18.0%  February 28, 2025 to October 10, 2025   577,778    56,134    (942)   632,970    502,577                                       Total notes payable          $1,541,778   $391,016   $(942)  $1,931,852   $1,669,873  

Interest expense totaled $61,400 and
$28,489 for the three months ended September 30, 2025 and 2024, respectively, and $173,860 and $77,980 for the nine months ended September
30, 2025 and 2024, respectively.

Amortization of debt discount totaled
$11,569 and $14,248 for the three months ended September 30, 2025 and 2024, respectively and $88,119 and $16,908 for the nine months ended
September 30, 2025 and 2024, 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