Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 2347

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 2347
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235,000 and $150,000,
respectively, using a Black-Scholes valuation model.

The
net movement on the derivative liability for the year ended December 31, 2023 was a net mark-to-market credit of $1,501,446 determined
by using a Black-Scholes valuation model.

On
August 6, 2024, the Company received a conversion notice from the holder of RRH Note 2 (see Note 13) 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, all other outstanding promissory
notes and warrants of the Company that contain price-based anti-dilution protection had the conversion prices of such notes and the exercise
price of such warrants adjusted to $0.084 per share and certain warrants of the Company that contain “full ratchet” anti-dilution
price protection had the number of shares exercisable for such warrants increased by the full ratchet provision and the conversion prices
of such warrants adjusted to $0.084 per share (the “Triggering Event”).

F-24

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

14DERIVATIVE LIABILITY (continued)

Convertible
notes with an aggregate principal and interest balance outstanding on August 6, 2024 of $2,165,578 have such price-based anti-dilution
protection. Based on the conversion by the RRH Note 2 as described above, the conversion price of these notes will reset to $0.084. In
addition, certain warrants exercisable for 3,145,342 shares of common stock at an exercise price of $0.345 per share,
have a full ratchet provision which resulted in an increase in the number of shares of Common Stock exercisable for such warrants by 9,773,028 to
a total number of shares of Common Stock exercisable for such warrants of 12,918,370. 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
$0.084 per share