Company: IPSI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044146
Chunk: 152

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 152
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 on price protected warrants was $1,618,545 and $0 for the three months ended March 31, 2025 and 2024, respectively. During the current
period, the exercise price of certain warrants was reset due to the anti-dilution price protection and in the case of certain warrants,
full ratchet price protection, from an exercise price of $0.084 to $0.001105. This resulted in a Black -Scholes derived valuation difference
related to those certain warrants.

Interest income

Interest income was $12,607
and $3,282 for the three months ended March 31, 2025 and 2024, respectively, an increase of $9,325 or 284.1%. 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.

34

Interest expense,
net

Interest
expense was $212,743 and $136,919 for the three months ended March 31, 2025 and 2024, respectively, an increase of $75,824 or 55.4%. The
increase is primarily related to the contractual increase in the interest rates on several matured notes which are currently in forbearance.

Amortization of debt discount

Amortization
of debt discount was $118,056 and $319,899 for the three months ended March 31, 2025 and 2024, respectively, a decrease of $201,843 or
63.1%. The decrease is primarily due to the full amortization of debt discount on convertible debt in the prior year, these notes were
carried over from the prior year. The current period funding and debt discount, and consequent amortization thereof, on this funding is
significantly lower than the prior period.

Derivative liability
movements

Derivative
liability movements were $928,979 and $815,941 for the three months ended March 31, 2025 and 2024, respectively, a net movement of $113,038
or 13.9%. 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 on the exercise of certain convertible debt during the current period