Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 230

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 230
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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 $6,631,924 and $0 for the three 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 $0.001105 to $0.0005. This resulted in a Black -Scholes derived valuation difference
related to those certain warrants.

Loss on disposal
of assets

Loss
on disposal of assets was $0 and $2,600 for the three months ended June 30, 2025 and 2024, respectively. The loss on disposal of assets
relates to costs incurred on disposing of our kiosks in the prior year.

Interest expense

Interest
expense was $227,806 and $146,176 for the three months ended June 30, 2025 and 2024, respectively, an increase of $81,630 or 55.8%. 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 $13,193 and $7,997 for the three months ended June 30, 2025 and 2024, respectively, an increase of $5,196 or 65.0%. 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 $60,434 and $320,346 for the three months ended June 30, 2025 and 2024, respectively, a decrease of $259,912 or 81.1%.
The decrease is primarily due to the full amortization of debt discount on convertible debt in the prior year. The current period funding
and debt discount, and consequent amortization thereof, .is significantly lower than the prior period.

34

Derivative liability movements

Derivative
liability movements were $1,