Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 46

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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 a total deemed dividend expense of $34,082.

The net mark-to-market movement of
the derivative liability for the three months ended September 30, 2025 was a net mark-to-market debit of $33,292,940 and for the nine
months ended September 30, 2025 was $30,657,632, determined by using a Black-Scholes valuation model.

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

    Nine months
 ended September 30,
 2025  
    Year ended December 31,
 2024 

    Conversion price 
    $0.0005 to 0.01  
    $0.0364 to 0.345 
  
    Risk free interest rate 
     3.72 to 4.44% 
     3.58 to 5.50%
  
    Expected life of derivative liability 
     3 to 29 months  
     1 to 41 months 
  
    Expected volatility of underlying stock 
     189.8 to 443.26% 
     24.3 to 262.09%
  
    Expected dividend rate 
     0.0% 
     0.0%

The
movement in derivative liability is as follows:

    Nine months
 ended September 30, 
2025  
    Year ended December 31, 
2024 

    Opening balance 
    $1,138,204  
    $1,434,196 
  
    Derivative financial liability arising from convertible debt and warrants 
     -  
     226,329 
  
    Derivative liability arising on repricing of convertible debt and warrants 
     13,220,310  
     6,370,074 
  
    Fair value adjustment to derivative liability 
     30,657,732  
     (6,892,395)
  
    Closing balance 
    $45,016,246  
    $1,138,204 

a.Common
Stock

The Company has total authorized Common
Stock of 1,500,000,000 shares with a par value of $0.0001 each. The Company had 454,236,931 and 19,081,446 shares
of Common Stock issued and outstanding as of September 30, 2025 and December 31, 2024