Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 1364

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 1364
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 any material impact on our liquidity
as forecast in our business plan due to recent inflationary concerns in the U.S.

Foreign Exchange
Risks

We intend to operate
in several foreign countries. Changes and fluctuations in the foreign exchange rate between the US Dollar and other foreign currencies
may in future have an effect our results of operations.

Results of Operations
for the years Ended December 31, 2024 and December 31, 2023

Net revenue

We had revenue of $0
and $410 for the years ended December 31, 2024 and 2023, respectively. We pivoted to focus our attention on the IPSIPay Express joint
venture, where we expect to generate initial revenues during the 2025 fiscal year, dependent on product testing, which is currently underway,
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 Volosh