Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 663

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 663
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 of our Beyond Fintech subsidiary in the prior year, thereby eliminating minority shareholders’ interests.

Deemed dividend

Deemed dividend was $426,807
and $0 for the years ended December 31, 2024 and 2023, respectively, an increase of $426,807 or 110.0%. the deemed dividend in the current
period related to a full rachet anti-dilution adjustment to certain fixed exercise price warrants issued to a convertible note holder
during the current year. The deemed dividend was recorded as a component of additional paid in capital.

Net loss attributable
to Innovative Payment Solutions Inc., stockholders

Net loss was $4,553,148
and $5,835,760 for the years ended December 31, 2024 and 2023, respectively, a decrease of $1,282,612 or 22.0%. the decrease is primarily
attributable to the decrease in net loss and the deemed dividend discussed above.

26

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 $62.8 million through December 31, 2024 and incurred negative cash flow from operations of $0.65 million for the year ended
December 31, 2024. Our primary focus is on our IPSIPay Express LLC three-way joint venture to develop and market a proprietary consumer
to merchant real-time payment platform initially focused on the fast-growing online gaming and entertainment sectors. To date, this joint
venture has not generated revenue, but we believe much of the background work necessary for IPSIPay Express to commence revenue generating
operations from payment processing has been completed. No assurances can be given, however, that such revenue generation will commence
or be meaningful to us as an approximately 22% joint venture partner in IPSIPay Express.

At December 31, 2024,
we had cash of $526 and working capital deficit of $10.4 million, including a derivative liability of $1.1 million. After eliminating
the derivative liability our working capital deficit is $9.3 million.

We used cash of $0.65
million and $1.45 million in operations for the years ended December 31, 2024 and 2023, respectively. Overall cash used in operations
decreased by $0.8 million due to cost containment to preserve cash balances.