Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 946

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 946
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and market acceptance. We are focusing all of our efforts on developing and launching IPSIPay Express, which we believe has a higher
possibility for revenue generation in the near and longer term.

Cost of goods sold

We had cost of goods
sold of $0 and $3,547 for the years ended December 31, 2024 and 2023, respectively. In the prior year cost of goods sold of bank and
merchant related fees and chargebacks.

General and administrative
expenses

General and administrative
expenses were $1,883,257 and $3,576,352 for the years ended December 31, 2024 and 2023, respectively, a decrease of $1,693,095 or 47.3%.
The decrease is primarily due to the following;

    (i)
    Salaries and wages were $979,514 and $1,114,424 for the
    years ended December 31, 2024 and 2023, respectively, a decrease of $134,910 or 12.1%. The decrease is primarily due to the following;
    (i) the decrease in compensation of $223,882, primarily due to the voluntary reduction of salary by our CEO and a reduction in health
    care benefits no longer offered to executives, (ii) a reduction in stock based compensation of $157,440 due to the full vesting of
    all options during the current year; (iii) a reduction in employer taxation of $30,781 due to the reduction in salaries discussed
    above; and offset by (iv) an increase in severance accrual of $278,000 due to the settlement of the Voloshin matter in March 2025.

    (ii)
    Professional fees were $43,726 and $620,381 for the years
    ended December 31, 2024 and 2023, respectively, a decrease of $576,655 or 93.0%. The decrease is primarily due to a decrease in fees
    paid to Frictionless of $490,293 due to the disposal and novation of all of the IPSIPAY operations in the prior year and a reduction
    in solicitation agent fees of $71,180, the solicitation agent was used during our 2023 annual general meeting.

    (iii)
    Legal fees were $414,801 and $965,989 for the years ended
    December 31, 2024 and 2023,