Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 248

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 248
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.01 per share, resulting in a gain of $11,955,877. In the prior
period, the loss on settlement and repricing of convertible notes related to (i) a loss of $4,318,669 realized on an anti-dilution adjustment
to the conversion feature of certain convertible notes; (ii) a loss of $56,329 realized on the conversion feature of a convertible note
which through a no notice default clause, triggered a variable priced conversion liability; and (iii) a loss of $159,493 realized on conversion
of certain convertible notes at prices lower than the current market price during the prior year. 

Fair value adjustment
to price protected warrants

Fair
value on price protected warrants was $0 and $2,051,405 for the three months ended September 30, 2025 and 2024, respectively. During the
prior year the exercise price of certain warrants were reset due to the anti-dilution price protection and in the case of certain warrants,
full ratchet price protection, from an exercise price of $0.345 to $0.084. This resulted in a Black -Scholes derived valuation difference
related to those certain warrants of $2,051,405.

Interest expense

Interest
expense was $233,609 and $152,379 for the three months ended September 30, 2025 and 2024, respectively, an increase of $81,230 or 53.3%.
The increase is primarily related to the contractual increase in the interest rates on several matured notes which are currently in forbearance
and additional notes issued during the current period.

Interest income

Interest
income was $13,817 and $9,740 for the three months ended September 30, 2025 and 2024, respectively, an increase of $4,077 or 41.9%. 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.

Amortization of debt discount

Amortization
of debt discount was $48,534 and $233,948 for the three months ended September 30, 2025 and 2024, respectively, a decrease of $185,414
or 79.3%. The decrease is primarily due to the full amortization of debt discount on convertible debt in the prior year. The current period
funding and