Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 355

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 355
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”) and within 60 days the Company will pay a further $100,000 including interest thereon at
10% per annum from March 5, 2025, and within 240 days, a final payment of $300,000, including interest thereon at 10% per annum from March
5, 2025. The initial payment of $100,000 was made on March 24, 2025.

Any breach of the terms of the settlement agreement
will result in a payment to the Plaintiffs of liquidated damages of $25,000 for each event of default.

In order to secure the obligations to the Plaintiff
Group, the Company executed two convertible promissory notes, the first note for $100,000 (“Note 1”) and the second note
for $300,000 (“Note 2”). Each note bears interest at the rate of 10% per annum, Note 1 has a maturity date of 60 days and
Note 2, 240 days from March 5, 2025. The Notes will be convertible upon an event of default, which includes any failure to pay any of
the installments. The Notes plus any accrued interest thereon, are convertible into common stock of the Company at a conversion price
of $0.02 per share or the lowest conversion price of the senior secured note holders, as determined and established as the conversion
price for all their notes outstanding as of March 5, 2025, if there are any limits on trading or the trading price falls below $0.01
per share, the conversion price will be discounted by a further 15%. The notes provide for certain events such as mergers and consolidations,
distributions to shareholders, and stock splits and dividends. 

20

Minkovich v. Corbett,
et al.

On May 26, 2022, Mr.
Jan Minkovich (“Minkovich”) filed a lawsuit in California Superior Court in Los Angeles County (Minkovich v. Corbett, et
al., CASE NO. 22CHCV00377) against our Company and our Chairman and Chief Executive Officer William Corbett. The complaint asserts six
causes of action for: (i) breach of contract; (ii) nonpayment of wages; (iii) waiting time penalties; (iv) failure to indemnify for alleged
employee business expenses; (v) violation of Section 17200 of the California Business and Professional Code; and (vi)