Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 190

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 190
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 assets

Loss
on disposal of assets was $0 and $2,600 for the nine months ended September 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 $674,158 and $435,471 for the nine months ended September 30, 2025 and 2024, respectively, an increase of $238,687 or 54.8%.
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 $39,616 and $21,019 for the nine months ended September 30, 2025 and 2024, respectively, an increase of $18,597 or 88.5%. 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 $227,025 and $874,193 for the nine months ended September 30, 2025 and 2024, respectively, a decrease of $647,168
or 74.0%. 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.

36

Derivative liability movements

Derivative
liability movements were $(30,657,732) and $6,461,496 for the nine months ended September 30, 2025 and 2024, respectively, an increase
of $37,119,228 or 574.5%. The derivative liability arose primarily due to the revaluation of certain repriced conversion features on convertible
debt and warrants. The share price increased substantially during the current quarter, resulting in a significant movement in the derivative
liability.

Net loss from equity
method investment

Net
loss from equity method investment was $0 and $660 for the nine months ended September 30, 2025 and 2024, respectively, a decrease of
$660 or 100.0%. No further expense is being incurred on the Joint Venture, in the prior period expenses were minimal