Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 235

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 235
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, respectively, a decrease of $572 or
100.0%. No further expense is being incurred on the Joint Venture, in the prior period expenses were minimal and administrative in nature.

Deemed dividend

Deemed
dividend was $1,780,429 and $0 for the six months ended June 30, 2025 and 2024, respectively, an increase of $1,7890,429 or 100.0%. the
deemed dividend in the current period related to a full rachet anti-dilution adjustment to certain fixed exercise price warrants issued
to convertible note holders during the current year. The deemed dividend was recorded as a component of additional paid in capital.

Net loss attributable
to common stockholders

Net
loss was $26,101,493 and $1,129,110 for the six months ended June 30, 2025 and 2024, respectively, an increase of $24,972,383 or 2,211.7%.
The increase is primarily due to the increase in the loss on convertible debt, the increase in the fair value adjustment to price protected
securities and the deemed dividend expense, offset by the decrease in general and administrative expenses and the increase in derivative
liability movement, discussed in detail above.

Liquidity and Capital Resources

To
date, our primary sources of cash have been funds raised primarily from the sale of our debt and equity securities.

We have an accumulated deficit
of $88.9 million through June 30, 2025 and incurred negative cash flow from operations of $0.4 million for the six months ended June 30,
2025. Our primary focus is on developing and marketing a proprietary consumer to merchant real-time payment platform initially focused
on the fast-growing online gaming and entertainment sectors to generate revenues. No assurances can be given, however, that such revenue
generation will commence or be meaningful to us.

At June 30, 2025, we had cash
of $20,214 and working capital deficit of $33.5 million, including a derivative liability of $23.7 million. After eliminating the derivative
liability our working capital deficit is $9.8 million.

We used cash of $0.4 million
and $0.4 million in operations for the six months ended June 30, 2025 and 2024, respectively. We have reduced our expenditure substantially
while we actively seek other revenue generating opportunities

We had no investing activities
during