Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 231

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 231
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706,229 and $107,547 for the three months ended June 30, 2025 and 2024, respectively, a net movement of $1,598,682
or 1,486.5%. 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 $88 for the three months ended June 30, 2025 and 2024, respectively, a decrease of $88 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 $1,430,065 and $0 for the three months ended June 30, 2025 and 2024, respectively, an increase of $1,430,065 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 $22,001,308 and $797,645 for the three months ended June 30, 2025 and 2024, respectively, an increase of $21,203,663 or 2,658.3%.
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.

Results of Operations for the Six Months Ended
June 30, 2025 and June 30, 2024

Net revenue

We had no revenues for the
three months ended June 30, 2025 and 2024. We pivoted to focus our attention on the IPSIPay Express joint venture and potential payment
processing opportunities to generate revenues, however there can be no guarantees that we will be successful in our endeavors.

Cost of goods sold

We had no cost of goods sold
for the three months ended June 30