Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 732

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 732
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 the next three years, on a monthly basis.

F-34

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

21SUBSEQUENT EVENTS (continued)

Conversion
of convertible notes

Between January 7, 2025 and March
21, 2025, The Company received conversion notices from convertible note holders converting an aggregate of $226,917 into 51,296,285 shares
of common stock at conversion prices ranging from $0.0325 to $0.001105 per share, resulting in a loss on conversion of $101,254.

As
a result of the conversion notices received, warrants exercisable for 457,897 shares of common stock that contain price-based anti-dilution
protection had the exercise price of such warrants adjusted from $0.084 per share to $0.001105 per share and certain warrants exercisable
for 12,918,370 shares of common stock 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 exercise prices of such warrants adjusted to $0.001105 per
share. In addition, certain convertible notes with an aggregate balance outstanding of $1,968,434 on December 31, 2024, had their conversion
price reduced to $0.001105 as of March 21, 2025. Further conversions at conversion prices lower than $0.001105 subsequent to March 21,
2025, will impact the exercise price and the number of warrants outstanding and the conversion price of convertible
notes for subsequent reporting periods.

Convertible
note funding

Between
January 7, 2025 and February 20, 2025, the Company entered into Securities Purchase Agreements pursuant to which the Company issued
two convertible promissory notes and two warrants to one accredited investment entity for total
gross proceeds of $223,000. The notes are unsecured, mature 12 months from issuance date and bear interest at a rate of 8% per annum
based on a 360 day trading-year, and are convertible into shares of common stock of the Company at a conversion price of $0.084 per
share (as adjusted for stock splits, stock combinations, and similar events). The Notes may be prepaid at any time without penalty. The
Note contains customary events of default. The Company is under