Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 176

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 176
---
 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 $36,305 and $102,352 for the three and nine months ended September 30, 2024, respectively.

Penalty
on convertible debt

Between January
7, 2025 and September 30, 2025, $61,729 of additional conversion penalties on convertible debt conversions were charged to the Company.

Loss
on conversion of convertible debt

Between January 7, 2025 and September
30, 2025, in terms of conversion notices received from 6 convertible note holders, the Company issued 365,655,485 shares of
common stock for the conversion of $759,011 of convertible debt at a weighted average conversion price of $0.00208 (conversion
prices ranging from $0.0005 to $0.0325), realizing an aggregate loss on conversion of $935,399.

Loss
on price adjustment on convertible debt and warrants

As a result
of the conversion of the convertible debt, referred to in the paragraph above, all other outstanding convertible debt of the Company that
contain price-based anti-dilution protection had the conversion prices of such notes adjusted to $0.001105 per share (the “Triggering
Event”).

The value
of the derivative liability related to the anti-dilution price protected convertible debt was evaluated immediately prior to the Triggering
Event and immediately after the Triggering Event, resulting in an additional derivative liability and loss on convertible debt of $16,925,718.

On August
13, 2025, the Company entered into an agreement with Cavalry and Mercer and their affiliated entities, repricing the conversion feature
of certain convertible notes from prices ranging from $0.000