Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 1020

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 1020
---
 Company
may need to repay the principal and interest outstanding on these notes.

21SUBSEQUENT EVENTS

Resignation
of director and officer

With
effect from January 7, 2025, Mr. Rosenblum resigned his positions of President, Chief Financial Officer and director of the Company. Mr.
Corbett, the Company’s CEO has stepped into the role of Chief Financial Officer and President, temporarily.

Executive
employment agreement

On
January 7, 2025, the Company entered into an employment agreement with Mr. Corbett, as the Company’s chief executive officer with
compensation of $240,000 per annum and the award of options exercisable for 600,000 shares of common stock at an exercise price of $0.09
per share. The options vest as to 300,000 immediately and 300,000 over the next three years, on a monthly basis.

F-34

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

21SUBSEQUENT EVENTS (continued)

Conversion
of convertible notes

Between January 7, 2025 and March
21, 2025, The Company received conversion notices from convertible note holders converting an aggregate of $226,917 into 51,296,285 shares
of common stock at conversion prices ranging from $0.0325 to $0.001105 per share, resulting in a loss on conversion of $101,254.

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 $0.084 per share to $0.001105 per share and certain warrants exercisable
for 12,918,370 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 $0.001105 per
share. In addition, certain convertible notes with an aggregate balance outstanding of $1,968,434 on December 31, 2024, had their conversion
price reduced to $0.001105 as of March 21, 2025. Further conversions at conversion prices lower than $0.001105 subsequent to March 21,
2025, will impact the exercise price and