Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 139

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 139
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 Company agreed to extend the maturity date
of the Cavalry/Mercer Notes to August 16, 2022. Additionally, on August 30, 2022, the Company entered agreements for an additional
maturity date extension to November 16, 2022. In consideration for the second extension, the Company agreed to (i) increase the principal
amount outstanding and due to Cavalry and Mercer under the Cavalry/Mercer Notes by twenty percent (20%) and (ii) issue to each of Cavalry
and Mercer a new five-year warrant (each, an “Extension Warrant”) to purchase an additional 100,000 shares of Common
Stock at an exercise price of $4.50 per share. The Extension Warrant contains the same terms and provisions in all material respects
as the Original Warrants, except for the difference in exercise price.

17

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

8CONVERTIBLE
DEBT (continued)

Cavalry and Mercer December 2022
Note Amendment Transaction (continued)

On
December 30, 2022, the Company again extended the maturity dates of each of the Cavalry/Mercer Notes to December 30, 2023. Each of Cavalry
and Mercer entered into Note Amendment Letter Agreement with the Company (the “Note Amendment”) pursuant to which the parties
agreed to the following:

(1)The
conversion price of the Cavalry/Mercer Notes was reduced from $4.50 to $0.345 per share (such reduced conversion price being
the current conversion price of the Notes give the passage of the November 16, 2022 maturity date of the Cavalry/Mercer Notes). As a
result of this change in conversion price, under the existing terms of the Cavalry/Mercer Notes, the 100,000 shares of Common
Stock underlying the Extension Warrants was increased to 1,304,348 shares;

(2)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”). This exchange caused the cancellation of the Original Warrants for all purposes. The Exchange Notes have
a maturity date of December 30, 2023 and carry an interest rate of ten percent (10%). The Company