Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 805

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 805
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.1%. The decrease is primarily due to the following;
    (i) the decrease in compensation of $223,882, primarily due to the voluntary reduction of salary by our CEO and a reduction in health
    care benefits no longer offered to executives, (ii) a reduction in stock based compensation of $157,440 due to the full vesting of
    all options during the current year; (iii) a reduction in employer taxation of $30,781 due to the reduction in salaries discussed
    above; and offset by (iv) an increase in severance accrual of $278,000 due to the settlement of the Voloshin matter in March 2025.

    (ii)
    Professional fees were $43,726 and $620,381 for the years
    ended December 31, 2024 and 2023, respectively, a decrease of $576,655 or 93.0%. The decrease is primarily due to a decrease in fees
    paid to Frictionless of $490,293 due to the disposal and novation of all of the IPSIPAY operations in the prior year and a reduction
    in solicitation agent fees of $71,180, the solicitation agent was used during our 2023 annual general meeting.

    (iii)
    Legal fees were $414,801 and $965,989 for the years ended
    December 31, 2024 and 2023, respectively, a decrease of $551,188 or 57.1%, primarily related to a reduction in legal activity
    and therefore expenses on the two ongoing legal matters. Management is mobbing towards settling the one matter with the other matter
    still ongoing.

    (iv)
    Selling and marketing costs were $154,864 and $428,909
    for the years ended December 31, 2024 and 2023, respectively, a decrease of $274,045 or 64.0%. The decrease is due to a decrease
    in endorsement fees of $141,423 related to the conclusion of the three year marketing deal with Mario Lopez in July 2024 and a reduction
    in direct marketing and social marketing spend of $132,622 due to the strategic shift away from the e-wallet business as we focus
    our attention ion the IPSIPay Express joint venture.

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    (v)
    Insurance expense was $793 and $105,380 for the years ended
    December 31, 2024