Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 841

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 841
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 Technologies Inc.

On
May 12, 2023, the Company assigned to Frictionless all common stock of Frictionless owned by the Company (representing a 10% ownership
interest in Frictionless). refer Note 4 above.

10LEASES

On
March 22, 2021, the Company entered into a real property lease for an office located at 56B 5th Street, Lot 1, #AT, Carmel
By The Sea, California. The lease commenced on April 1, 2021 and is for a twelve-month period, terminating on April 1, 2022. Following
the expiry of the lease term, the landlord has agreed to continue the lease on a month-to-month basis at $4,800 per month. On January
1, 2023, the Company entered into a new month-to-month lease, with a 90-day termination clause, for a monthly rental of $5,088. The lease
was terminated effective August 31, 2023.

The
Company applied the practical expedient whereby operating leases with a duration of twelve months or less are expensed as incurred.

F-16

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

10LEASES (continued)

Total
Lease Cost

Individual
components of the total lease cost incurred by the Company is as follows:

    Year ended December 31, 2024  
    Year ended December 31, 2023 
  
    Operating lease expense 
    $         -  
    $40,704 

Other lease
information:

    Year ended December 31, 2024  
    Year ended December 31, 2023 
  
    Cash paid for amounts included in the measurement of lease liabilities 

    Operating cash flows from operating leases 
    $              
    $(40,704)

11FEDERAL RELIEF LOANS

Small
Business Administration Disaster Relief loan

On
July 7, 2020, the Company received a Small Business Economic Injury Disaster loan amounting to $150,000, bearing interest at 3.75%
per annum and repayable in monthly installments of $731 commencing twelve months after inception with the balance of interest and
principal repayable on July 7, 2050. The loan is secured by all tangible and intangible assets