Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 514

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1C
Chunk 514
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6,892,395 and $1,501,446 for the years ended December 31, 2024 and 2023, respectively, an increase of $5,390,949 or 359.1%.
The derivative liability arose primarily due to the revaluation of certain repriced conversion features on convertible notes and the
reset of the exercise price and full ratchet reset of certain warrants during the current year, and the subsequent mark-to-market of
these derivatives due to a declining stock price on the exercise of certain convertible notes during the current year.

Operating loss
from equity method investment

Net loss from equity
method investment was $819 and $403,282 for the years ended December 31, 2024 and 2023, respectively, a decrease of $402,463 or 99.8%.
The loss in the prior year related is due to the dilutive effect of withdrawals of cash out of the joint venture by the other joint venture
parties, impacting on the overall value of the. IPSIPay Express Joint venture attributes to the Company.

Impairment of
equity method investments

Impairment of equity
method investments was $705,142 and $0 for the years ended December 31, 2024 and 2023, respectively, an increase of $705,142 or 100.0%.
The equity method investment was impaired due to uncertainty as to when, the joint venture will begin generating revenues and the certainty
of future business prospects at this time.

Net loss from
continuing operations

Net loss from continuing
operations was $4,126,341 and $5,301,112 for the years ended December 31, 2024 and 2023, respectively, a decrease of $1,174,771 or 22.2%.
The decrease is primarily due to the decrease in general and administrative expenses, a decrease in depreciation and amortization, a
decrease in loss on novation and the movement in derivative liability, offset by an increase in loss on convertible notes and fair value
of price protected warrants, as discussed in detail above.

Operating loss
from discontinued operations

Operating loss from
discontinued operations was $0 and $40,821 for the years ended December 31, 2024 and 2023, respectively, a decrease of $40,821 or 100.0%.
On May 12, 2023, we entered into an agreement with Frictionless to unwind the equity ownership