Company: IPSI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044146
Chunk: 44

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 44
---
, certain warrants exercisable for 457,897 shares of common stock have exercise price
protection which reduced the exercise price of these warrants to $0.084 per share from $0.345 per share, resulting in a decrease
in potential proceeds receivable from the exercise price of such warrants by $119,511. This resulted in a fair value adjustment charge
of $2,478,211 of which $2,051,405 was recorded as a charge to the statement of comprehensive loss as it related 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 January 7,
2025 and February 20, 2025, the Company entered into a Securities Purchase Agreements with one accredited investor. In terms of the Securities
Purchase Agreements, the Company issued five-year warrants to purchase an aggregate of 2,654,761 shares of the Common Stock
at an exercise price of $0.084 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 March 28,
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 $0.001105 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 $0.001105 per share. Certain
warrants exercisable for 12,918,370 shares of common stock at an exercise price of $0.084 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 969,111,567 to
a total number of shares of Common Stock exercisable for such warrants to 982,029,937 and a reduction in the exercise price
to $0.001105 per share from $0.