Company: IPSI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044146
Chunk: 102

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 102
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SPA”). Of the 2,250,000 shares of Vivi, nine percent (9%) was allocated as follows: Gaston Pereira
(5%), Andrey Novikov (2.5%), and Joseph Abrams (1.5%). The transactions contemplated by the SPA closed on December 31, 2019 after
the satisfaction of customary conditions, the receipt of a final fairness opinion and the approval of the Company’s shareholders.
As a result, the Company no longer has any business operations in Mexico and has retained its U.S. operations, currently based in Carmel
By The Sea, California.

On June 21, 2021, the Company acquired
a 10% strategic interest in Frictionless Financial Technologies, Inc. (“Frictionless”). Frictionless delivered to
the Company, a live fully compliant financial payment Software as a Service solution for use by the Company as a digital payment platform
(which was subsequently branded as IPSIPay) that enabled payments within the United States and abroad, including Mexico, together with
a service agreement providing a full suite of product services to facilitate the Company’s anticipated product offerings. The Company
had an irrevocable right to acquire up to an additional 41% of the outstanding common stock of Frictionless at a purchase price of
$300,000 for each 1% acquired.

5

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

1ORGANIZATION AND DESCRIPTION
OF BUSINESS (continued)

a)Organizational History (continued)

On August 26, 2021, the Company formed
a new subsidiary, Beyond Fintech, Inc. (“Beyond Fintech”), in which it owns a 51% stake, with Frictionless owning
the remaining 49%. Beyond Fintech acquired an exclusive license to a product known as Beyond Wallet, to further its
objective of providing virtual payment services allowing U.S. persons to transfer funds to Mexico and other countries.

On May 12, 2023, the Company
entered into an Agreement with Frictionless (the “May 2023 Frictionless Agreement”) to unwind the equity ownership stakes
that the Company and Frictionless have in each other and in Beyond Fintech. Pursuant to the May 2023 Frictionless Agreement: (i) the Company
assigned to Frictionless all common