Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 950

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 950
---
 and $403,282 for the years ended December 31, 2024 and 2023, respectively, a decrease of $402,463 or 99.8%.
The loss in the prior year related is due to the dilutive effect of withdrawals of cash out of the joint venture by the other joint venture
parties, impacting on the overall value of the. IPSIPay Express Joint venture attributes to the Company.

Impairment of
equity method investments

Impairment of equity
method investments was $705,142 and $0 for the years ended December 31, 2024 and 2023, respectively, an increase of $705,142 or 100.0%.
The equity method investment was impaired due to uncertainty as to when, the joint venture will begin generating revenues and the certainty
of future business prospects at this time.

Net loss from
continuing operations

Net loss from continuing
operations was $4,126,341 and $5,301,112 for the years ended December 31, 2024 and 2023, respectively, a decrease of $1,174,771 or 22.2%.
The decrease is primarily due to the decrease in general and administrative expenses, a decrease in depreciation and amortization, a
decrease in loss on novation and the movement in derivative liability, offset by an increase in loss on convertible notes and fair value
of price protected warrants, as discussed in detail above.

Operating loss
from discontinued operations

Operating loss from
discontinued operations was $0 and $40,821 for the years ended December 31, 2024 and 2023, respectively, a decrease of $40,821 or 100.0%.
On May 12, 2023, we entered into an agreement with Frictionless to unwind the equity ownership stakes that we and Frictionless have
in each other and in Beyond Fintech. We assigned to Frictionless all common stock of Frictionless owned by us and all shares of common
stock of Beyond Fintech owned by us.

Loss on disposal
of subsidiary

Loss on disposal of
subsidiary was $0 and $495,424 for the years ended December 31, 2024 and 2023, respectively, a decrease of $495,424 or 100.0%. This relates
to the unwinding of our relationship with Frictionless as described above. The consideration received by us for the assignment of