Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 157

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 157
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 of 40,000,000 shares of the Common
Stock at an exercise price of $0.005 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.

Between January 7, 2025 and June 27,
2025, the Company received conversion notices from 5 note holders. As a result of these conversion notices, all warrants of the Company
that contain price-based anti-dilution protection had the exercise price of such warrants adjusted to $0.0005 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 $0.0005 per share. Certain
warrants exercisable for 982,029,937 shares of common stock at an exercise price of $0.001105 per share, have a full ratchet
provision which results in an increase in the number of shares of Common Stock exercisable for such warrants by 1,188,256,223 to
a total number of shares of Common Stock exercisable for such warrants to 2,170,286,160 and a reduction in the exercise price
to $0.0005 per share from $0.001105 per share, In addition to this, certain warrants exercisable for 40,457,897 shares
of common stock have exercise price protection which reduced the exercise price of these warrants to between $0.0005 and $0.000585 from
$0.001105 to $0.005 per share, resulting in a decrease in potential proceeds receivable from the exercise price of such warrants
by $179,427. This resulted in a fair value adjustment charge of $9,976,484 of which $8,250, was recorded as a charge to the statement
of comprehensive loss as it related to warrants subject to derivative liability treatment and $1,726,015 was recorded as a deemed
dividend expense, as it related to a down round adjustment to the price of warrants issued during the current year, which is not subject
to derivative liability treatment.

25

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Cond