Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 156

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 156
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 $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 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 April
29, 2025 and June 24, 2025, the Company entered into Securities Purchase Agreements with two accredited investors. In terms of the Securities
Purchase Agreements, the Company issued five-year warrants to purchase an aggregate