Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
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Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
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Item 1. Business

Company Overview

We are a provider of
digital payment solutions and services to businesses and consumers.

The Company is currently
a fintech provider of digital payment solutions presently focused on, through its participation in IPSIPay Express, developing a new
account-to-account payment application called Instant Direct Payments as well as traditional credit card processing services. The Company
has in the past (under the name IPSIPay) and may in the future develop and operate “e-wallets” that enable consumers to deposit
cash, convert it into a digital form and remit funds quickly and securely.

IPSIPay Express

On April 28, 2023, the
Company formed a new company called IPSIPay Express. This entity was formed as a Delaware limited liability company joint venture with OpenPath,
Inc. (“OpenPath”) and EfinityPay, LLC (“EfinityPay”, and the Company, collectively with OpenPath and EfinityPay,
the “Members”) to develop and market a proprietary consumer to merchant real-time payment platform initially focused
on the fast-growing online gaming and entertainment sectors.

On June 19, 2023, the
Company entered into a Limited Liability Company Operating Agreement (the “Operating Agreement”) with OpenPath and EfinityPay
to jointly provide for the governance of and rights of the Members with respect to IPSIPay Express. The effective date of the Operating
Agreement is April 28, 2023.

IPSIPay Express was
formed by the Members with the initial business purposes of providing credit card processing solutions and also a proprietary solution
for real time bank-to-bank payment transactions in a manner that provides seamless and frictionless consumer and merchant experiences,
with an initial focus on merchants operating in gaming and entertainment sectors. Such solutions are collectively referred to herein
as “IPEX.”

Pursuant to the Operating
Agreement, the Company agreed to contribute cash to or on behalf IPSIPay Express to be used for the IPEX business in the aggregate amount
of up to $1,500,000 (the “IPSI Capital Contribution”). The Company was required to make the IPSIPay Capital Contribution
in three tranches of $500,000 (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 IPSIP