Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 69

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 69
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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 $88.9 million through June 30, 2025 and incurred negative cash flow from operations of $0.4 million for the six months ended June 30,
2025. Our primary focus is on developing and marketing a proprietary consumer to merchant real-time payment platform initially focused
on the fast-growing online gaming and entertainment sectors to generate revenues. No assurances can be given, however, that such revenue
generation will commence or be meaningful to us.

At June 30, 2025, we had cash
of $20,214 and working capital deficit of $33.5 million, including a derivative liability of $23.7 million. After eliminating the derivative
liability our working capital deficit is $9.8 million.

We used cash of $0.4 million
and $0.4 million in operations for the six months ended June 30, 2025 and 2024, respectively. We have reduced our expenditure substantially
while we actively seek other revenue generating opportunities

We had no investing activities
during the current period. In the prior period we had invested $0.2 million in Business Warrior while we were still pursuing merger discussions
with them.

We generated cash of $0.4
million from convertible debt during the current period. In the prior period we generated $0.8 million of notes payable and convertible
debt. and repaid $0.1 million of convertible debt.

At June 30, 2025, we had outstanding
convertible debt, including interest thereon of $5.6 million, net of unamortized debt discount of $0.1 million and outstanding notes payable,
including interest thereon of $1.9 million, net of unamortized debt discount of $0.01 million. The notes contain certain covenants, such
as restrictions on: (i) distributions on capital stock, (ii) stock repurchases, and (iii) sales and the transfer of assets. The notes
bear interest at a rates ranging from 8% to 18% per annum. and are convertible into our common stock at conversion prices ranging from
fixed conversion prices of $0.005 per share (as adjusted for stock splits, stock combinations, dilutive issuances and similar events),
to fixed conversion prices of $0.345. Should the investors choose not to convert these