Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 153

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 153
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     1 to 41 months 
  
    Expected volatility of underlying stock 
      189.8 to 352.45% 
      24.3 to 262.09%
  
    Expected dividend rate 
     0.0% 
     0.0%

The
movement in derivative liability is as follows:

    Six months ended June 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 anti-dilutive convertible debt and warrants 
     25,176,187  
     6,370,074 
  
    Fair value adjustment to derivative liability 
     (2,635,208) 
     (6,892,395)
  
    Closing balance 
    $23,679,183  
    $1,138,204 

23

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

10STOCKHOLDERS’
EQUITY

a.Common
Stock

The Company has total authorized Common
Stock of 750,000,000 shares with a par value of $0.0001 each. The Company had 319,950,057 and 19,081,446 shares
of Common Stock issued and outstanding as of June 30, 2025 and December 31, 2024, respectively.

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