Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 1015

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 1015
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, 2024, the maturity date of two notes totaling $225,000 which originally matured on December 31, 2023 and which maturity
dates were extended to March 30, 2024, on May 4, 2024, the maturity date of the $200,000 note was further extended to June
14, 2024, and the maturity date of the $25,000 note was further extended to June 30, 2024. In exchange for the maturity date
extension, on June 14, 2024, the Company issued to note holders warrants exercisable for 292,463 shares of Common Stock, the
modification of the terms and the issue of the new warrants was assessed as a debt extinguishment.

The
debt extinguishments resulted in a charge of $102,352 for the year ended December 31, 2024

F-31

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

16LOSS ON CONVERTIBLE NOTES
(continued)

Loss
on conversion of convertible notes

During the
prior year an aggregate amount of $432,500 of convertible debt was converted into equity at a fixed conversion price of $0.345 per share,
realizing an aggregate loss on conversion of $90,761.

Between
August 6, 2024 and December 6, 2024, in terms of conversion notices received from 4 convertible note holders, the Company issued 5,261,557
shares of common stock for the conversion of an aggregate amount of $441,971 of convertible debt at a conversion price of $0.084 per
share, realizing an aggregate loss on conversion of $170,246.

Loss on anti-dilution price
protection adjustment

As
a result of the conversion of the RRH Note 2 ( see note 13 above), included in the paragraph above, all other outstanding convertible
notes of the Company that contain price-based anti-dilution protection had the conversion prices of such notes adjusted to $0.084 per
share (the “Triggering Event”).

The
value of the derivative liability related to the anti-dilution price protected convertible notes was evaluated immediately prior to the
Triggering Event and immediately after the Triggering Event, resulting in an additional derivative liability and loss on convertible notes
of $4,318,669