Company: IPSI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044146
Chunk: 22

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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258    -    52,258    51,271       8.0%  February 1, 2025   15,000    664    -    15,664    15,368       8.0%  April 27, 2025   50,000    1,359    -    51,359    50, 373   Total Notes receivable          $406,190   $7,950   $(30,363)  $383,777   $371,170  

Discount amortized
to income as deemed interest during the three months ended March 31, 2025 and 2024 was $9,056 and $3,282, respectively.

Interest earned
for the three months ended March 31, 2025 and 2024 was $3,551 and $0, respectively.

14

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

5EQUITY 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 March 31, 2025, 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.

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 March 31, 2025 and December 31, 2024 is as follows:

    March 31,
  
    December 31, 

    2025  
    2024 
  
    Equity method Investment 

    Cash contribution to IPSIPay Express