Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 191

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 191
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 and administrative
in nature.

Deemed dividend

Deemed
dividend was $1,814,511 and $426,807 for the nine months ended September 30, 2025 and 2024, respectively, an increase of $1,387,704 or
325.1%. The deemed dividend in the current and the prior period related to the repricing of warrants and convertible debt. The deemed
dividend was recorded as a component of additional paid in capital.

Net loss attributable
to common stockholders

Net
loss was $48,343,936 and $3,284,069 for the nine months ended September 30, 2025 and 2024, respectively, an increase of $45,059,867 or
1,372.1%. The increase is primarily due to the increase in the loss on convertible debt, the increase in the fair value adjustment to
price protected warrants, the negative movement in derivative liabilities and the increase in the deemed dividend expense, offset by the
decrease in general and administrative expenses and the amortization of debt discount, discussed in detail above.

Liquidity and Capital Resources

To
date, our primary sources of cash have been funds raised primarily from the sale of our debt and equity securities.

We have an accumulated deficit
of $111.1 million through September 30, 2025 and incurred negative cash flow from operations of $0.5 million for the nine months ended
September 30, 2025. Our primary focus is on developing and marketing a proprietary consumer to merchant real-time payment platform initially
focused on the fast-growing online gaming and entertainment sectors to generate revenues. No assurances can be given, however, that such
revenue generation will commence or be meaningful to us.

At September 30, 2025, we
had cash of $7,045 and working capital deficit of $54.8 million, including a derivative liability of $45.0 million, after eliminating
the derivative liability our working capital deficit is $9.8 million.

We used cash of $0.5 million
and $0.5 million in operations for the nine months ended September 30, 2025 and 2024, respectively. We have reduced our expenditure substantially
while we actively seek other revenue generating opportunities

We had no investing activities
during the current period. In the prior period we had invested $0.3 million in Business Warrior while we were still pursuing merger discussions
with them.

We generated cash of $