Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 31

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 per share. The Extension Warrant contains the same terms and provisions in all material respects
as the Original Warrants, except for the difference in exercise price.

17

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

8CONVERTIBLE
DEBT (continued)

Cavalry and Mercer December 2022
Note Amendment Transaction (continued)

On
December 30, 2022, the Company again extended the maturity dates of each of the Cavalry/Mercer Notes to December 30, 2023. Each of Cavalry
and Mercer entered into Note Amendment Letter Agreement with the Company (the “Note Amendment”) pursuant to which the parties
agreed to the following:

(1)The
conversion price of the Cavalry/Mercer Notes was reduced from $4.50 to $0.345 per share (such reduced conversion price being
the current conversion price of the Notes give the passage of the November 16, 2022 maturity date of the Cavalry/Mercer Notes). As a
result of this change in conversion price, under the existing terms of the Cavalry/Mercer Notes, the 100,000 shares of Common
Stock underlying the Extension Warrants was increased to 1,304,348 shares;

(2)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”). This exchange caused the cancellation of the Original Warrants for all purposes. The Exchange Notes have
a maturity date of December 30, 2023 and carry an interest rate of ten percent (10%). The Company shall have the right, but
not the obligation, in lieu of a cash payment upon maturity of the Exchange Notes, to issue a total 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;

(3)Each
of Cavalry and Mercer agreed (i) not to convert all or any portion of the Cavalry/Mercer Notes until after March 30, 2023 and (ii) waive
any events