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

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 25
---
 $500,000 of
capital contributions was paid by the Company to or on behalf of IPSIPay Express.

On December 31, 2024, the company impaired
the equity method investment and all receivables from the joint venture by $705,142 due to uncertainty as to the ability of the Joint
venture to generate revenues during the foreseeable future.

The Company accounts for its investment
in IPSIPay Express in accordance with ASC 323, Investments – Equity Method and Joint Ventures, the equity method investments
related to IPSIPay Express as of June 30, 2025 and December 31, 2024 is as follows:

    June 30,  
    December 31, 

    2025  
    2024 
  
    Equity method Investment 

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

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

     703,619  
     703,619 
  
    Receivable from IPSIPay Express 
     1,524  
     1,524 

     705,143  
     705,143 
  
    Impairment of investment 
     (705,142) 
     (705,142)
  
    Equity method investment 
    $1  
    $1 

The loss from equity method investments for the three and six months
ended June 30, 2025 and 2024, is as follows:

    Three months ended  
    Three months ended  
    Six months ended  
    Six months ended 

    June 30,  
    June 30,  
    June 30,  
    June 30, 

    2025  
    2024  
    2025  
    2024 
  
    Loss from joint venture 
    $        -  
    $(88) 
    $         -  
    $(572)

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