Company: IPSI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044146
Chunk: 151

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 151
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 fully amortized in 2024, the current charge represents new options granted during the current period and a reduction in overall payroll taxes due to the reduction in salaries.

    (iii)
    Marketing expenses were $0 and $75,707 for the three months ended March
31, 2025 and 2024, respectively, a decrease of $75,707 or 100.0%. The decrease is primarily due to the full amortization of warrants in
the prior year. These warrants were issued to Mario Lopez to endorse the IPSIPay wallets in 2021.

    (iv)
    Audit fees were $95,500 and $80,000 for the three months ended March 31, 2025 and 2024, an increase of $15,500 or 19.4%, primarily due to the timing of invoices received from our auditors.

    (v)
    The balance of the general and administrative expenses was $43,455 and $49,493 for the three months ended March 31, 2025 and 2024, respectively, a decrease of $6,038 or 12.2%. The decrease is made up of several individually insignificant items.

Depreciation and
amortization

Depreciation
was $542 and $542 for the three months ended March 31, 2025 and 2024. The depreciation is on small office related equipment.

Loss on convertible
debt

Loss
on convertible debt was $2,487,213 and $66,047 for the three months ended March 31, 2025 and 2024, respectively, an increase of $2,421,166
or 3,665.8%. The loss on convertible debt during the current year related to; (i) a loss of $2,341,480 realized on an anti-dilution adjustment
to the conversion feature of certain convertible debt; (ii) a penalty on conversion of 39,229 on conversion of convertible debt which
are in default; and (iii) a loss of $106,504 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 on price
protected warrants

Fair
value