Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 13

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 13
---
 each own one-third (1/3) of the membership interests in IPSIPay Express. The IPSI Capital Contribution has been or will be
made by the following dates and in the following amounts: (i) $200,000 of the initial Tranche was paid by the Company on June 21,
2023; (ii) the $300,000 balance of the initial Tranche was paid on August 4, 2023; (iii) the second $500,000 Tranche was paid
in September 2023 and (iv) the third $500,000 Tranche was expected to be paid on or before November 30, 2023. In late 2023, the Company
agreed with its joint venture partners that such investment was not required as IPEX is not operational. The need for any additional advances
will be addressed with the joint venture partners once IPEX becomes operational and begins generating revenue, the Company’s current
equity holding in IPSIPay Express remains at 22%.

Simultaneously with the funding of the
initial Tranche, the Company issued to each of OpenPath and EfinityPay a five-year Common Stock purchase warrant (the “IPEX Warrant”)
to purchase 133,334 shares of Common Stock with an exercise price of $0.45 per share. We are still obligated to issue to
each of OpenPath and EfinityPay an additional IPEX Warrant to purchase 199,999 shares of Common Stock with an exercise price
equal to the average public closing price of the Common Stock for the three trading days immediately prior to the funding of the initial
Tranche. Simultaneously with the funding of the second Tranche, we are obligated to issue to each of OpenPath and EfinityPay an additional
IPEX Warrant to purchase 166,667 shares of Common Stock with an exercise price equal to the average public closing price of
the Common Stock for the three trading days immediately prior to the funding of the second Tranche. Should we decide to fund a third Tranche,
we will be obligated to issue to each of OpenPath and EfinityPay an additional IPEX Warrant to purchase 166,667 shares of Common
Stock with an exercise price equal to the average public closing price of the Common Stock for the three trading days immediately prior
to the funding of the third Tranche. If the full IPSI Capital Contribution is funded,