Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 145

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 145
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 502,577                                       Total notes payable          $1,541,778   $391,016   $(942)  $1,931,852   $1,669,873  

Interest expense totaled $61,400 and
$28,489 for the three months ended September 30, 2025 and 2024, respectively, and $173,860 and $77,980 for the nine months ended September
30, 2025 and 2024, respectively.

Amortization of debt discount totaled
$11,569 and $14,248 for the three months ended September 30, 2025 and 2024, respectively and $88,119 and $16,908 for the nine months ended
September 30, 2025 and 2024, respectively,

Cavalry
Fund I LP and Mercer Street Global Opportunity Fund, LLC

In terms of
the December 30, 2022 Note Amendment Transaction, described in more detail in note 8 below, 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”) to each of
Cavalry and Mercer. This exchange caused the cancellation of the Original Warrants for all purposes.

The Exchange
Notes had a maturity date of December 30, 2023 and carried an interest rate of 10% per annum. The Company had the right,
but not the obligation, in lieu of a cash payment upon maturity of the Exchange Notes, to issue a total of 1,730,058 shares
of Common Stock, as adjusted for any stock splits, dividends or other similar corporate events, in full satisfaction of its obligations
under the Exchange Notes (or any pro rata portion of such number of shares in partial satisfaction of such obligations). The Company is
under no legal obligation to reserve such number of shares for future issuance.

On February
27, 2024, the maturity date of the notes was extended to April 30, 2024 with an automatic one-month extension each month until such time
as the note is declared to be in default, all other terms remain the same as the previous notes. The automatic extension of the maturity
date may not extend past November 27, 2024, thereafter all amounts due under the note are