Company: IPSI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044146
Chunk: 147

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 147
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 of convertible debt

Between April 7, 2025 and May 14, 2025,
The Company received conversion notices from convertible note holders converting an aggregate of $97,064 into 99,338,142 shares
of common stock at conversion prices ranging from $0.000585 to $0.001170 per share, resulting in a loss on conversion of $62,537.

As a result of the conversion notices
received, warrants exercisable for 457,897 shares of common stock that contain price-based anti-dilution protection had the
exercise price of such warrants adjusted from $0.001105 per share to $0.000585 per share and certain warrants exercisable for 982,029,937 shares
of common stock that contain “full ratchet” anti-dilution price protection had the number of shares exercisable for such warrants
increased by the full ratchet provision and the exercise prices of such warrants adjusted to $0.000585 per share. In addition, certain
convertible notes with an aggregate balance outstanding of $2,049,064 on March 31, 2025, will have their conversion prices adjusted
to the lowest conversion price during subsequent periods, as of the date of this report, the lowest conversion price is $0.000585. Further
conversions at conversion prices lower than $0.000585 subsequent to May 14, 2025, will impact the exercise price and the number of
warrants outstanding and the conversion price of convertible notes for subsequent reporting periods.

Convertible debt funding

On April 29, 2025, the Company entered
into Securities Purchase Agreement pursuant to which the Company issued a convertible promissory note and a warrants to one accredited
investment entity for total gross proceeds of $150,000, less expenses of $6,000 for net proceeds of $144,000. The notes are unsecured,
mature 12 months from issuance date and bear interest at a rate of 8% per annum based on a 360 day trading-year, and are convertible
into shares of common stock of the Company at a conversion price of $0.005 per share (as adjusted for stock splits, stock combinations,
and similar events). The Notes may be prepaid at any time without penalty. The Note contains customary events of default. The Company
is under no obligation to register the shares of Common Stock underlying the Notes for public resale. In terms of the