Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 177

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 177
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 a decrease of $461,754 or 72.1%.
The decrease is primarily due to the full amortization of debt discount on convertible debt in the prior year. The current period funding
and debt discount, and consequent amortization thereof, .is significantly lower than the prior period.

36

Derivative liability movements

Derivative
liability movements were $2,635,208 and $923,488 for the six months ended June 30, 2025 and 2024, respectively, an increase of $1,711,720
or 185.4%. The derivative liability arose primarily due to the revaluation of certain repriced conversion features on convertible debt
and the reset of the exercise price and full ratchet reset of certain warrants during the current period, and the subsequent mark-to-market
of these derivatives due to a declining stock price.

Net loss from equity
method investment

Net
loss from equity method investment was $0 and $572 for the six months ended June 30, 2025 and 2024, respectively, a decrease of $572 or
100.0%. No further expense is being incurred on the Joint Venture, in the prior period expenses were minimal and administrative in nature.

Deemed dividend

Deemed
dividend was $1,780,429 and $0 for the six months ended June 30, 2025 and 2024, respectively, an increase of $1,7890,429 or 100.0%. the
deemed dividend in the current period related to a full rachet anti-dilution adjustment to certain fixed exercise price warrants issued
to convertible note holders during the current year. The deemed dividend was recorded as a component of additional paid in capital.

Net loss attributable
to common stockholders

Net
loss was $26,101,493 and $1,129,110 for the six months ended June 30, 2025 and 2024, respectively, an increase of $24,972,383 or 2,211.7%.
The increase is primarily due to the increase in the loss on convertible debt, the increase in the fair value adjustment to price protected
securities and the deemed dividend expense, offset by the decrease in general and administrative expenses and the increase in derivative
liability movement, 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