Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 172

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 172
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was $542 and $542 for the three months ended June 30, 2025 and 2024. Depreciation is on small office related equipment.

Loss on settlement
and repricing of convertible notes

Loss
on convertible debt was $15,199,321 and $36,305 for the three months ended June 30, 2025 and 2024, respectively, an increase of $15,163,016
or 41,765.6%. The loss on convertible debt during the current year related to; (i) a loss of $14,584,238 realized on an anti-dilution
adjustment to the conversion feature of certain convertible debt; (ii) a penalty on conversion of $22,500 on conversion of convertible
debt which is in default; and (iii) a loss of $592,583 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 adjustment
to price protected warrants

Fair
value on price protected warrants was $6,631,924 and $0 for the three months ended June 30, 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 $0.001105 to $0.0005. This resulted in a Black -Scholes derived valuation difference
related to those certain warrants.

Loss on disposal
of assets

Loss
on disposal of assets was $0 and $2,600 for the three months ended June 30, 2025 and 2024, respectively. The loss on disposal of assets
relates to costs incurred on disposing of our kiosks in the prior year.

Interest expense

Interest
expense was $227,806 and $146,176 for the three months ended June 30, 2025 and 2024, respectively, an increase of $81,630 or 55.8%. The
increase is primarily related to the contractual increase in the interest rates on several matured notes which are currently in forbearance
and additional