Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 693

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 693
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 the functioning of the IPSIPay software
in the cloud environment. On September 5, 2023, the Company novated all its rights and obligations to its IPSIPay wallet to a third
party (see note 5 above).

Amortization
expense was $0 and $347,298 for the years ended December 31, 2024 and 2023, respectively.

8EQUITY METHOD INVESTMENT

On
April 28, 2023, the Company formed IPSIPay Express with OpenPath and EfinityPay (see note 1(b) above). As described in note 1(b), the
Company has agreed to make the IPSI Capital Contributions to IPSIPay Express. As of December 31, 2023, the initial Tranche of $500,000 and
the second Tranche of $500,000 of capital contributions was paid by the Company to or on behalf of IPSIPay Express.

The
Company accounts for its investment in IPSIPay Express in accordance with ASC 323, Investments – Equity Method and Joint
Ventures, the movement in equity method investments related to IPSIPay Express for the period ended December 31, 2024 and 2023 is as
follow:

    Year ended December 31, 

    2024  
    2023 
  
    Equity method Investment 

    Cash contribution to IPSIPay Express 
    $999,500  
    $999,000 
  
    Fair value of warrants issued to third party joint venture partners 
     108,220  
     108,220 

     1,107,720  
     1,107,220 
  
    Equity loss from joint venture 
     (404,101) 
     (403,282)

    $703,619  
     703,938 
  
    Receivable from IPSIPay Express 
     1,524  
     - 

     705,143  
     703,938 
  
    Impairment of investment 
     (705,142) 
     - 
  
    Equity method investment 
     1  
     703,938 

    Loss from Equity method investment 

    Loss from joint venture 
     819  
     403,282 
  
    Impairment of equity method investment 
     705,142