Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 1144

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 1144
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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 value adjustment to derivative liability 
     (6,892,395) 
     (1,501,446)
  
    Closing balance 
    $1,138,204  
    $1,434,196 

F-25

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

15STOCKHOLDERS’ 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 19,081,446 and13,819,889 shares
of Common Stock issued and outstanding as of December 31, 2024 and December 31, 2023, respectively.

On
May 19, 2023, in terms of a conversion notice received from a convertible note holder, the Company issued 72,464 shares of Common
Stock for the conversion of $25,000 of convertible debt.

On
August 16, 2023, in terms of a conversion notice received from a convertible note holder, the Company issued 72,464 shares of
Common Stock for the conversion of $25,000 of convertible debt.

On
August 24, 2023, in terms of a conversion notice received from a convertible note holder, the Company issued 173,914 shares
of Common Stock for the conversion of $60,000 of interest on convertible debt.

On
August 30, 2023, the Company effectuated a 1 for 30 reverse stock split, resulting in the issuance of an additional 2,838 shares
to existing stockholders due to rounding of existing shareholdings. All share amounts disclosed in the unaudited condensed consolidated
financial statements have been adjusted to reflect the Company’s