Company: IPSI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044146
Chunk: 198

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 198
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,500 and $80,000 for the three months ended March 31, 2025 and 2024, an increase of $15,500 or 19.4%, primarily due to the timing of invoices received from our auditors.

    (v)
    The balance of the general and administrative expenses was $43,455 and $49,493 for the three months ended March 31, 2025 and 2024, respectively, a decrease of $6,038 or 12.2%. The decrease is made up of several individually insignificant items.

Depreciation and
amortization

Depreciation
was $542 and $542 for the three months ended March 31, 2025 and 2024. The depreciation is on small office related equipment.

Loss on convertible
debt

Loss
on convertible debt was $2,487,213 and $66,047 for the three months ended March 31, 2025 and 2024, respectively, an increase of $2,421,166
or 3,665.8%. The loss on convertible debt during the current year related to; (i) a loss of $2,341,480 realized on an anti-dilution adjustment
to the conversion feature of certain convertible debt; (ii) a penalty on conversion of 39,229 on conversion of convertible debt which
are in default; and (iii) a loss of $106,504 realized on conversion of certain convertible debt at prices lower than the current market
price during the current period. In the prior period, the loss on convertible debt related to the extension warrants issued to certain
noteholders to extend the maturity date of their notes by 6 months, the value of the warrants was determined to be a debt extinguishment
and were therefore expensed.

Fair value on price
protected warrants

Fair
value on price protected warrants was $1,618,545 and $0 for the three months ended March 31, 2025 and 2024, respectively. During the current
period, the exercise price of certain warrants was reset due to the anti-dilution price protection and in the case of certain warrants,
full ratchet price protection, from an exercise price of $0.084 to $0.001105. This resulted in a Black -Scholes derived valuation difference
related to those certain warrants.

Interest income

Interest income was $12,607
and $3,282 for the three months ended March