Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 49

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 49
---
 derivative liability treatment.

25

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

10STOCKHOLDERS’
EQUITY (continued)

d.Warrants
(continued)

The 2023,
2024 and 2025 Warrants contain exercise limitations providing that a holder thereof may not exercise the Warrants to the extent that,
if after giving effect to such exercise, the holder or any of its affiliates would beneficially own in excess of 4.99% (the “Maximum
Percentage”) of the outstanding shares of the Common Stock immediately after giving effect to such exercise. A holder may increase
or decrease its beneficial ownership limitation upon notice to the Company provided that in no event such limitation exceeds 9.99%,
and that any increase shall not be effective until the 61st day after such notice.

The fair value
of the warrants granted, repriced and issued, as described above, were determined by using a Black Scholes valuation model using the following
assumptions:

    Six months ended June 301, 2025 
  
    Exercise price 
     $0.0005 to 0.084  
  
    Risk free interest rate 
     3.77 to 4.46%
  
    Expected life 
      1 month to 5 years 
  
    Expected volatility of underlying stock 
     183.1 to 352.45%
  
    Expected dividend rate 
     0%

A summary
of warrant activity during the period January 1, 2024 to June 30, 2025 is as follows:

    Shares Underlying Warrants  
    Exercise price per share  
    Weighted average exercise price 
  
    Outstanding January 1, 2024 
     10,442,093  
     $0.345 – 5.625  
    $0.626500 
  
    Granted 
     1,796,493  
     0.084 to 0.345  
     0.267000 
  
    Increase in warrants issued due to anti-dilution price protection 
     9,773,028  
     0.0840  
     0.084000 
  
    Forfeited 
     -  
     -  
     - 
  
    Exercised 
     -  
     -