Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 233

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 233
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 matters which were claimed in the prior year by several individuals.

    vii)
    Selling and marketing expenses were $0 and $148,874 for the six months ended June 30, 2025 and 2024, respectively, a decrease of $148,874 or 100.0%. Selling and marketing costs related to an endorsement deal with a celebrity ceased during the prior year.

    viii)
    The balance of the general and administrative expenses was $33,291
and $44,064 for the six months ended June 30, 2025 and 2024, respectively, a decrease of $10,773 or 24.4%. The decrease is made up of
several individually insignificant items.

Depreciation

Depreciation
was $1,084 and $1,084 for the six months ended June 30, 2025 and 2024, respectively. Depreciation is on small office related equipment.

Loss on settlement and repricing of convertible
notes

Loss
on convertible debt was $17,686,534 and $102,352 for the six months ended June 30, 2025 and 2024, respectively, an increase of $17,584,182
or 17,180.1%. The loss on convertible debt during the current year related to; (i) a loss of $16,925,718 realized on an anti-dilution
adjustment to the conversion feature of certain convertible debt; (ii) a penalty on conversion of $61,729 on conversion of convertible
debt which is in default; and (iii) a loss of $699,087 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 adjustment
to price protected warrants

Fair
value on price protected warrants was $8,250,469 and $0 for the six months ended June 30, 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 $0.0005