Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 1426

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 1426
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 to register the shares of Common Stock underlying the Note or the Warrant, for
public resale.

On
May 4, 2024, the maturity date of two notes totaling $225,000 which originally matured on December 31, 2023 and which maturity dates
were extended to March 30, 2024, on May 4, 2024, the maturity date of the $200,000 note was further extended to June 14, 2024, and
the maturity date of the $25,000 note was further extended to June 30, 2024. In exchange for the maturity date extension, on
June 14, 2024, the Company issued to note holders warrants exercisable for 292,463 shares of Common Stock at an exercise price
of $0.345 per share.

On
August 6, 2024, the Company received a conversion notice from the holder of RRH Note 2 (see Note 13). As a result of the conversion of
the RRH Note 2, all warrants of the Company that contain price-based anti-dilution protection had the exercise price of such warrants
adjusted to $0.084 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 $0.084 per share. Certain warrants exercisable for 3,145,342 shares of common stock at an exercise price of $0.345 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 9,773,028 to a total number of shares of Common Stock exercisable for such warrants of 12,918,370 and a reduction
in the exercise price to $0.084 per share from $0.345 per share, In addition to this, 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 $