Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 35

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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30, 2025.

On August 13, 2025, the Company entered
into an agreement to modify the conversion price of the Cavalry convertible debt from $0.0005 to a conversion price of $0.01 per share
of common stock, thereby reducing the number of shares of common stock that the aggregate convertible debt at September 30, 2025 is convertible
into from 1,797,744,000 to 89,887,200. This is subject to certain conditions, including i) if the shares of common stock trade above $0.04
during the period expiring on December 31, 2025, the investors may convert up to 10% of the aggregate debt outstanding, ii) if the common
stock trades below $0.01 and/or the Company generates no revenue by December 31, 2025, then the conversion price reverts to the original
conversion price per common stock, iii) the Company has to produce revenues of at least $250,000 prior to December 31, 2025, and iv) the
Company will seek approval to increase it authorized common stock by October 31, 2025, by a number to be determined by the management
of the Company, failing which the original terms of the convertible note would prevail. On October 3, 2025, the Company increased its
authorized shares of common stock to 1,500,000,000 shares.

The
balance of the Cavalry Note plus accrued interest at September 30, 2025 was $898,872.

Mercer
Street Global Opportunity Fund, LLC

On
February 16, 2021, the Company closed a transaction with Mercer, pursuant to which the Company received net proceeds of $500,500, after
an original issue discount of $71,500 in exchange for the issuance of a $572,000 Senior Secured Convertible Note, bearing interest
at 10% per annum and maturing on February 16, 2022. The Note is convertible into shares of Common Stock at an initial conversion
price of $6.90 per share, in addition, the Company issued a warrant exercisable for 82,899 shares of Common Stock
at an initial exercise price of $7.20 per share.

As
described more fully above, the maturity date of the note was extended to August 16, 2022, additionally to November 16, 202