Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 249

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 249
---
 debt discount, and consequent amortization thereof is significantly lower than the prior period.

34

Derivative liability movements

Derivative
liability movements were $(33,292,940) and $5,538,008 for the three months ended September 30, 2025 and 2024, respectively, a net movement
of $38,830,948 or 701.2%. The derivative liability arose primarily due to the revaluation of certain repriced conversion features on convertible
debt and warrants. The share price increased substantially during the current quarter, resulting in a significant movement in the derivative
liability.

Net loss from equity
method investment

Net
loss from equity method investment was $0 and $88 for the three months ended September 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 $34,082 and $426,807 for the three months ended September 30, 2025 and 2024, respectively, a decrease of $392,725 or 92.0%.
The deemed dividend in the current and the prior period related to the repricing of warrants and convertible debt. The deemed dividend
was recorded as a component of additional paid in capital.

Net loss attributable
to common stockholders

Net
loss attributable to common stockholders was $22,242,443 and $2,154,959 for the three months ended September 30, 2025 and 2024, respectively,
an increase of $20,087,484 or 932.2%. The increase is primarily due to an increase in operating expenses, offset by a gain on repricing
of convertible debt. Offset by the derivative liability movements, all discussed in detail above.

Results of Operations for the Nine Months Ended
September 30, 2025 and 2024

Net revenue

We had no revenues for the
nine months ended September 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 nine months ended September 30, 2025 and 2024.

General and administrative