Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 59

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 59
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 at a weighted average conversion price of $0.00208 (conversion
prices ranging from $0.0005 to $0.0325), realizing an aggregate loss on conversion of $935,399.

Loss
on price adjustment on convertible debt and warrants

As a result
of the conversion of the convertible debt, referred to in the paragraph above, all other outstanding convertible debt of the Company that
contain price-based anti-dilution protection had the conversion prices of such notes adjusted to $0.001105 per share (the “Triggering
Event”).

The value
of the derivative liability related to the anti-dilution price protected convertible debt was evaluated immediately prior to the Triggering
Event and immediately after the Triggering Event, resulting in an additional derivative liability and loss on convertible debt of $16,925,718.

On August
13, 2025, the Company entered into an agreement with Cavalry and Mercer and their affiliated entities, repricing the conversion feature
of certain convertible notes from prices ranging from $0.0005 to $0.345 per share to a conversion price of $0.01 per share, resulting
in a gain on repricing of convertible debt and a reduction in derivative liability of $11,955,877.

29

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

12NET
LOSS PER SHARE

Basic loss
per share is based on the weighted-average number of Common Stock outstanding during each period. Diluted loss per share is based on basic
shares as determined above plus Common Stock equivalents. The computation of diluted net loss per share does not assume the issuance of
Common Stock that have an anti-dilutive effect on net loss per share. For the three and nine months ended September 30, 2025 and 2024
all warrants options and convertible debt securities were excluded from the computation of diluted net loss per share.

Dilutive shares
which could exist pursuant to the exercise of outstanding stock instruments and which were not included in the calculation because their
affect would have been anti-dilutive for the three and nine months ended September 30, 2025 and 2024 are as follows:

    Nine months ended September 30, 2025 (Shares)  
    Nine months ended September 30,  2024 (Shares) 
  
    Convertible debt 
     599,675,944  
     38,680,