Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 164

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 164
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    Expected volatility of underlying stock 
     189.8 to 443.26% 
     24.3 to 262.09%
  
    Expected dividend rate 
     0.0% 
     0.0%

The
movement in derivative liability is as follows:

    Nine months
 ended September 30, 
2025  
    Year ended December 31, 
2024 

    Opening balance 
    $1,138,204  
    $1,434,196 
  
    Derivative financial liability arising from convertible debt and warrants 
     -  
     226,329 
  
    Derivative liability arising on repricing of convertible debt and warrants 
     13,220,310  
     6,370,074 
  
    Fair value adjustment to derivative liability 
     30,657,732  
     (6,892,395)
  
    Closing balance 
    $45,016,246  
    $1,138,204 

a.Common
Stock

The Company has total authorized Common
Stock of 1,500,000,000 shares with a par value of $0.0001 each. The Company had 454,236,931 and 19,081,446 shares
of Common Stock issued and outstanding as of September 30, 2025 and December 31, 2024, respectively.

23

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

10STOCKHOLDERS’
EQUITY

On August 6, 2024, the Company received
a conversion notice from the holder of RRH Note 2 (see Note 12) pursuant to which $13,833 of the remaining principal, interest and
late payment penalty under the RRH 2 Note was converted into 164,679 shares of Common Stock at a conversion price of $0.084 per
share. As a result of the conversion of the RRH Note 2, a warrant, with full ratchet anti-dilution price protection, exercise price was
reduced from $0.345 per share to $0.084 per share and the number of shares exercisable was increased from 3,145,342 shares
to 12,918,370 shares, resulting in a deemed dividend charge and a credit to additional paid in capital