Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 398

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 398
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 Company to or on behalf of IPSIPay Express.

The
Company accounts for its investment in IPSIPay Express in accordance with ASC 323, Investments – Equity Method and Joint
Ventures, the movement in equity method investments related to IPSIPay Express for the period ended December 31, 2024 and 2023 is as
follow:

    Year ended December 31, 

    2024  
    2023 
  
    Equity method Investment 

    Cash contribution to IPSIPay Express 
    $999,500  
    $999,000 
  
    Fair value of warrants issued to third party joint venture partners 
     108,220  
     108,220 

     1,107,720  
     1,107,220 
  
    Equity loss from joint venture 
     (404,101) 
     (403,282)

    $703,619  
     703,938 
  
    Receivable from IPSIPay Express 
     1,524  
     - 

     705,143  
     703,938 
  
    Impairment of investment 
     (705,142) 
     - 
  
    Equity method investment 
     1  
     703,938 

    Loss from Equity method investment 

    Loss from joint venture 
     819  
     403,282 
  
    Impairment of equity method investment 
     705,142  
     - 
  
    Total loss from equity method investment 
    $(705,961) 
    $(403,282)

9INVESTMENTS

Investment
in Frictionless Financial Technologies Inc.

On
May 12, 2023, the Company assigned to Frictionless all common stock of Frictionless owned by the Company (representing a 10% ownership
interest in Frictionless). refer Note 4 above.

10LEASES

On
March 22, 2021, the Company entered into a real property lease for an office located at 56B 5th Street, Lot 1, #AT, Carmel
By The Sea, California. The lease commenced on April 1, 2021 and is for a twelve-month period, terminating on April 1, 2022. Following
the expiry of the lease term, the landlord has agreed to continue the lease on