Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 2348

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 2348
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 from $0.345 per share, resulting in a decrease in potential proceeds receivable from the exercise price of
such warrants by $119,511.

The
value of the derivative liability related to the anti-dilution price protected convertible notes and warrants was evaluated immediately
prior to the Triggering Event and immediately after the Triggering Event, resulting in an additional derivative liability of $4,318,669 on
the convertible notes and $2,051,405 on the warrants. In addition, a payment was not made on a convertible note with a no notice
default clause, resulting in the triggering of a variable priced conversion feature, which gave rise to a derivative liability on the
payment due date, this gave rise to an additional derivative liability of $56,329, both determined using a Black-Scholes valuation model.

The
net mark-to-market movement of the derivative liability for the year ended December 31, 2024 was a net mark-to-market credit of $6,892,395,
determined by using a Black-Scholes valuation model.

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

    Year ended December 31, 2024  
    Year ended December 31, 2023 

    Conversion price 
    $0.0364 to 0.345  
    $0.104
to 0.345 
  
    Risk free interest rate 
     3.58
to 5.50% 
     3.60 to 5.55%
  
    Expected life of derivative liability 
    $1
to 41 months  
     3.5 to 47 months 
  
    Expected volatility of underlying stock 
     24.3
to 262.09% 
     158.72
to 217.01%
  
    Expected dividend rate 
     0.0% 
     0.0%

The
movement in derivative liability is as follows:

    Year ended December 31, 2024  
    Year ended December 31, 2023 

    Opening balance 
    $1,434,196  
    $2,550,642 
  
    Derivative financial liability arising from convertible notes and warrants 
     226,329  
     385,000 
  
    Derivative liability arising on anti-dilutive convertible notes and warrants 
     6,370,074  
     - 
  
    Fair