Company: IPSI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044146
Chunk: 135

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 135
---
 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 
     3,960,025  
     6,370,074 
  
    Fair value adjustment to derivative liability 
     (928,979) 
     (6,892,395)
  
    Closing balance 
    $4,169,250  
    $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 73,889,435 and 19,081,446 shares of Common Stock issued and outstanding as of March 31, 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 in a deemed dividend charge and a credit to additional paid in capital of $426,807.

Between August 6, 2024 and September
17, 2024, in terms of conversion notices received from 4 convertible note holders, including the RRH Note 2 described above, the Company
issued 2,365,663 shares of common stock for the conversion of $198,716 of convertible debt at a conversion price of $0.084 per
share, realizing an aggregate loss on conversion of