Company: IPSI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044146
Chunk: 118

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 118
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 Statements

    7
    NOTES PAYABLE

Notes payable
consists of the following:

  Description  Interest
Rate   Maturity date*  Principal   Accrued Interest   Unamortized debt
discount   March 31, 2025 Amount, net   December  31, 
2024 
Amount, net   Cavalry Fund I LP   18.0%  Matured   $482,000   $123,338   $-   $605,338   $583,648   Mercer Street Global Opportunity Fund, LLC   18.0%  Matured    482,000    123,338    -    605,338    583,648   2024 notes     0.0 to 18.0 %  February 28, 2025 to October 10, 2025    577,778    24,059    (42,867)   558,970    502,577                                       Total notes payable          $1,541,778   $270,735   $(42,867)  $1,769,646   $1,669,873  

Interest expense totaled $53,578 and
$24,368 for the three months ended March 31, 2025 and 2024, respectively.

Amortization of debt discount totaled
$46,195 and $0 for the three months ended March 31, 2025 and, 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