Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 40

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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 stock have price protection which reduces the exercise price of the warrant for any subsequent stock issuances lower
than the current exercise price.

The
2023 Convertible Notes, the 2024 Convertible Notes, and the 2025 Convertible Notes bear interest at rates ranging from 8.0% to 12.0%
per annum, and are convertible into shares of common stock at a conversion price of $0.0005 to $0.345 per share (as adjusted
for stock splits, stock combinations, dilutive issuances and similar events). The 2023 Convertible Notes, the 2024 Convertible Notes and
the 2025 Convertible Notes may be prepaid at any time without penalty.

21

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

8CONVERTIBLE
DEBT (continued)

2023,
2024 and 2025 Convertible Notes (continued)

The
Company is under no obligation to register the shares of Common Stock underlying the 2023 Convertible Notes, the 2024 Convertible Notes,
the 2025 Convertible Notes or the 2023 Warrants, the 2024 Warrants and the 2025 Warrants, for public resale.

The
2023 Convertible Notes, the 2024 Convertible Notes, the 2025 Convertible Notes and the 2023 Warrants, the 2024 Warrants and the 2025 Warrants,
contain conversion limitations providing that a holder thereof may not convert or exercise such securities to the extent that, if after
giving effect to such conversion or exercise, the holder or any of its affiliates would beneficially own in excess of 4.99% (the
“Maximum Percentage”) of the outstanding shares of the Common Stock immediately after giving effect to such conversion or
exercise. A holder may increase or decrease its beneficial ownership limitation upon notice to the Company provided that in no event such
limitation exceeds 9.99%, and that any increase shall not be effective until the 61st day after such notice.

On
December 14, 2023, two notes totaling $225,000 ($200,000 and $25,000, respectively) which matured on December 31, 2023
were extended for an additional 3 months to March 30, 2024. In exchange for the extension, the Company issued the note holders additional
warrants exercisable