Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 1008

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 1008
---
 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 $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
October 22, 2024, the Company entered into a Securities Purchase Agreements with an accredited investor, as disclosed in note 13 above.
In terms of the Securities Purchase Agreement, the Company issued five-year warrants to purchase an aggregate of 289,855 shares
of the Common Stock at an exercise price of $0.345 per share (as adjusted for stock splits, stock combinations, dilutive issuances
and similar