Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 164

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 164
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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, the
modification of the terms and the issue of the new warrants was assessed as a debt extinguishment.

The debt extinguishments
resulted in a charge of $36,305 and $102,352 for the three and six months ended June 30, 2024, respectively.

Penalty
on convertible debt

Between January
7, 2025 and June 27, 2025, $61,729 of additional conversion penalties on convertible debt conversions were charged to the Company.

Loss
on conversion of convertible debt

Between January 7, 2025 and June 27,
2025, in terms of conversion notices received from 5 convertible note holders, the Company issued 300,868,611 shares of common
stock for the conversion of $439,108 of convertible debt at a weighted average conversion price of $0.00146 (conversion prices
ranging from $0.0325 to $0.0005), realizing an aggregate loss on conversion of $699,087.

Loss
on anti-dilution price protection adjustment

As a result
of the conversion of the convertible debt, referred to in the paragraph above, all other outstanding convertible debt of the Company that
contain price-based anti-dilution protection had the conversion prices of such notes adjusted to $0.001105 per share (the “Triggering
Event”).

The value
of the derivative liability related to the anti-dilution price protected convertible debt was evaluated immediately prior to the Triggering
Event and immediately after the Triggering Event, resulting in an additional derivative liability and loss on convertible debt of $16,925,718.

29

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

12NET
LOSS PER SHARE

Basic loss
per share is based on