Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 136

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 136
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2025 and 2024, respectively and $76,550 and $2,660 for the six months ended June
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 immediately due and payable. The Company performed
an analysis in terms of ASC 470 and it was determined that the extension was a debt modification, in addition, no additional consideration
was paid for the maturity date extension.

With effect
from November 27, 2024, the notes accrue interest at 18% per annum, the default interest rate per the note agreement.

2024
Notes

Between May
29, 2024 and November 27, 2024, the Company entered into nine Securities Purchase Agreements with four accredited investors, pursuant
to which the Company issued nine notes payable (the “2024 Notes”) with an aggregate principal amount of $577,778 for
gross proceeds of $