Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 2214

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7A
Chunk 2214
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 of the principal and interest outstanding. The final instalment was not made and a penalty
charge of 150% of the total balance outstanding, amounting to $6,695 was recorded by the Company on December 30, 2024.  
The balance owing on the RRH Note 4 plus accrued interest at December 31, 2024 was $20,085.

●On
June 25, 2024, the Company closed a transaction with RRH pursuant to which the Company received net proceeds of $100,000, after an original
issue discount and fees of $25,080 in exchange for the issuance of a $125,080 Convertible Note (“RRH Note 5”),
bearing interest at 15%, which interest is earned on issuance of the note, an effective interest rate of 24.51%, and maturing
on March 30, 2025. The RRH Note 5 has mandatory repayments of $93,498 on December 30, 2024 and $16,782 per month on January
30, 2025, February 28, 2025 and March 30, 2025. The RRH Note 5 is convertible into shares of Common Stock at a variable conversion rate
of 65% of the lowest trading price ten trading days before conversion.
 
The first
instalment was not made, automatically placing the note into default, with a penalty charge of 150% of the total balance outstanding of
$71,921 recorded by the Company on December 30, 2024.
 
The
balance owing on the RRH Note 5 plus accrued interest, net of unamortized debt discount of $40,043 at December 31, 2024 was $173,798.

F-22

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

13CONVERTIBLE NOTES PAYABLE
(continued)

Quick Capital,
LLC

    ●  On March 4, 2024, the Company closed a transaction with Quick Capital, LLC (“Quick Capital”) pursuant to which the Company received net proceeds of $94,000, after an original issue discount and fees of $20,286 in exchange for the issuance of a $114,286 Convertible Note (“Quick Cap Note 1”) , bearing interest at an effective interest rate of 11.12% per annum,