Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 74

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 74
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September 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 September 30, 2025, we
had cash of $7,045 and working capital deficit of $54.8 million, including a derivative liability of $45.0 million, after eliminating
the derivative liability our working capital deficit is $9.8 million.

We used cash of $0.5 million
and $0.5 million in operations for the nine months ended September 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 $0.3 million in Business Warrior while we were still pursuing merger discussions
with them.

We generated cash of $0.5
million from convertible debt during the current period. In the prior period we generated $1.0 million of notes payable and convertible
debt. and repaid $0.3 million of convertible debt.

At September 30, 2025, we
had outstanding convertible debt, including interest thereon of $5.5 million, net of unamortized debt discount of $0.1 million and outstanding
notes payable, including interest thereon of $1.9 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 0% 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 convertible notes, we may need to repay these notes together with interest thereon which
will impact on our liquidity.

Given our losses and negative
cash flows, we will be required to raise significant additional funds by issuing equity or equity-linked securities to progress our existing
business model with IPSIPay Express. Additional debt financing, if available, may involve covenants