Company: IPSI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044146
Chunk: 134

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 134
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 reset to $0.001105. In addition, certain warrants exercisable for 12,918,370 shares of common stock at an exercise price
of $0.084 per share, have a full ratchet provision which results in an increase in the number of shares of Common Stock exercisable
for such warrants by 969,111,567 to a total number of shares of Common Stock exercisable for such warrants of 982,029,937.
In addition to this, certain warrants exercisable for 457,897 shares of common stock have exercise price protection which will
reduce the exercise price of these warrants to $0.001105 per share from $0.084 per share, resulting in a decrease in potential proceeds
receivable from the exercise price of such warrants by $37,957.

The value of the derivative liability
related to the anti-dilution price protected convertible debt and warrants was evaluated immediately prior to the Triggering Event and
immediately after the Triggering Event, resulting in an additional derivative liability of $2,341,480 on the convertible debt and
$1,618,545 on the warrants.

The net mark-to-market movement of
the derivative liability for the three months ended March 31, 2025 was a net mark-to-market credit of $928,978, determined by using a
Black-Scholes valuation model.

The following assumptions were used
in the Black-Scholes valuation model:

    Three 
months
ended
March 31,
 2025  
    Year 
ended
 December 31, 2024 

    Conversion price 
    $0.0022  
    $0.0364 to 0.345 
  
    Risk free interest rate 
       3.89 to 4.33 % 
     3.58 to 5.50%
  
    Expected life of derivative liability 
      3 to 29 months   
     1 to 41 months  
  
    Expected volatility of underlying stock 
       189.8 to 219.4 % 
       24.3 to 262.09 %
  
    Expected dividend rate 
     0.0% 
     0.0%

The
movement in derivative liability is as follows:

    Three months ended  March 31, 2025  
    Year ended December 31, 2024