Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 12

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 reverse stock split.

On September 5, 2023, the Company’s
entered into a novation agreement whereby it assigned all its rights and interest in its e-wallet product, IPSIPay, and its receivables
and payables due from and to Frictionless, related to IPSIPay, to a third party in order to concentrate all of its efforts on the IPSIPay
Express LLC (“IPSIPay Express”) joint venture. See note 1(b) for further information.

b)Description
of current business

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.”

6

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

1ORGANIZATION
AND DESCRIPTION OF BUSINESS (continued)

b)Description
of current business (continued)