Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 425

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 425
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 to warrants subject to derivative liability treatment and $426,807 was recorded as a deemed dividend expense,
as it related to a down round adjustment to the price of a warrant issued during the current year, which is not subject to derivative
liability treatment.

On
October 22, 2024, the Company entered into a Securities Purchase Agreements with an accredited investor, as disclosed in note 13 above.
In terms of the Securities Purchase Agreement, the Company issued five-year warrants to purchase an aggregate of 289,855 shares
of the Common Stock at an exercise price of $0.345 per share (as adjusted for stock splits, stock combinations, dilutive issuances
and similar events). The Company is under no obligation to register the shares of Common Stock underlying the Note or the Warrant, for
public resale.

The
2023 and 2024 Warrants contain exercise limitations providing that a holder thereof may not exercise the Warrants to the extent that,
if after giving effect to such exercise, the holder or any of its affiliates would beneficially own in excess of 4.99% (the “Maximum
Percentage”) of the outstanding shares of the Common Stock immediately after giving effect to such exercise. A holder may increase
or decrease its beneficial ownership limitation upon notice to the Company provided that in no event such limitation exceeds 9.99%,
and that any increase shall not be effective until the 61st day after such notice.

F-28

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

15STOCKHOLDERS’ EQUITY
(continued)

d.Warrants (continued)

The
fair value of the warrants granted and issued, as described above, were determined by using a Black Scholes valuation model using the
following assumptions:

    Year ended
 December 31,
 2024 
  
    Exercise price 
    $
     0.084 to 0.345 
  
    Risk free interest rate 
    3.73 to 4.56%
  
    Expected life 
     1 to 5 years 
  
    Expected volatility of underlying stock 
     177.78 to 191.61%
  
    Expected dividend rate 
     0%

A
summary of warrant activity during the period January 1, 2023 to December 31, 2024 is as follows:

    Shares
 Underlying
 Warrants*