Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 37

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 a loss on conversion of $89,527. Such conversion caused a reduction in
the $0.345 conversion price of the notes described above to $0.084.

Between
January 14, 2025 and August 12, 2025, Mercer converted an aggregate $52,548 of interest into 61,933,790 shares of common
stock at an average conversion price of $0.00085 per share. The Company realized a loss on conversion of $184,992.

In terms of the agreement with Cavalry,
the conversion price of the convertible note will be adjusted downwards on any dilutive issuances. The conversion price of the convertible
debt has been adjusted to $0.0005, the lowest conversion price of conversions executed during the nine months ended September 30, 2025.

On August 13, 2025, the Company entered
into an agreement to modify the conversion price of the Mercer 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 2,309,684,000 to 115,484,200 shares. 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 Mercer Note plus accrued interest at September 30, 2025 was $1,154,842.

Red
Road Holdings Corporation

    ● On April 2, 2024, the Company closed a transaction