Company: IPSI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044146
Chunk: 132

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 132
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 was further extended to June 14, 2024, and the maturity date of the $25,000 note was further extended
to June 30, 2024. In exchange for the maturity date extension, the Company issued to the note holders additional warrants exercisable
for 292,463 shares of Common Stock at an exercise price of $0.345 per share.

On
March 14, 2024, the Company extended the maturity date of 11 convertible notes maturing between February 13, 2024 and February 23, 2024
by an additional six months and as consideration for the extension, the note holders were issued additional warrants exercisable for 387,673 shares
of Common Stock at an exercise price of $0.345 per share. The modification was assessed in terms of ASC 470 and determined to be
a debt extinguishment, resulting in the warrant value of $66,047 being expensed as a loss on convertible debt.

The
Company attempted to extend the maturity date of the convertible debt to December 31, 2025, however this was not formally agreed to and
was not approved by the Board of Directors, the Company is still pursuing a global settlement with all convertible note holders and note
holders, no agreement has been reached as of the date of this report.

The
2023 Convertible Notes have an aggregate amount outstanding of $2,324,350 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 $622,748, net of unamortized debt discount of $18,702, of which convertible
notes with an aggregate amount outstanding of $336,906 matured and are technically in default.

One
noteholder with an aggregate amount outstanding of $22,704 declaring 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 $7,950. These investments were made out of proceeds received on notes payable of $311,111
and convertible debt of $138,856 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