Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 251

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 251
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 the timing of invoices received for services provided by our external auditors.

    vi)
    Research and developments costs was $32,000 and $0 for the nine months ended September 30, 2025 and 2024, respectively, an increase of $32,000 or 100.0%. The increase was due to a cost incurred on developing a new revenue source during the current period.

    vii)
    Professional fees were $29,060 and $35,441 for the nine months ended September 30, 2025 and 2024, respectively, a decrease of $6,381 or 18.0%. The decrease is primarily due to a reduction in solicitation fees incurred in the prior year. 

    viii)
    The balance of the general and administrative expenses was $50,473 and $63,181 for the nine months ended September 30, 2025 and 2024, respectively, a decrease of $12,708 or 20.1%. The decrease is made up of several individually insignificant items.

Depreciation

Depreciation
was $1,627 and $1,627 for the nine months ended September 30, 2025 and 2024, respectively. Depreciation is on small office related equipment.

Loss on settlement and repricing of convertible
notes

Loss
on settlement and repricing of convertible notes was $5,966,969 and $4,643,454 for the nine months ended September 30, 2025 and 2024,
respectively, an increase of $1,323,515 or 28.5%. The loss on convertible debt during the current year related to; (i) a loss of $4,969,841
realized on repriced and 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 $935,399 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