Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 64

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 64
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 primarily related to the contractual increase in the interest rates on several matured notes which are currently in forbearance
and additional notes issued during the current period.

Interest income

Interest
income was $13,193 and $7,997 for the three months ended June 30, 2025 and 2024, respectively, an increase of $5,196 or 65.0%. The interest
income relates to funds advanced to Business Warrior prior to the cessation of our merger plans with them, we increased our investment
in Business Warrior over the second half of the prior year.

Amortization of debt discount

Amortization
of debt discount was $60,434 and $320,346 for the three months ended June 30, 2025 and 2024, respectively, a decrease of $259,912 or 81.1%.
The decrease is primarily due to the full amortization of debt discount on convertible debt in the prior year. The current period funding
and debt discount, and consequent amortization thereof, .is significantly lower than the prior period.

34

Derivative liability movements

Derivative
liability movements were $1,706,229 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