Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 234

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 234
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. This resulted in a Black -Scholes derived valuation difference
related to those certain warrants.

Loss on disposal
of assets

Loss
on disposal of assets was $0 and $2,600 for the six months ended June 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 $440,549
and $283,095 for the six months ended June 30, 2025 and 2024, respectively, an increase of $157,454 or 55.6%. 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 $25,799 and $11,279 for the six months ended June 30, 2025 and 2024, respectively, an increase of $14,520 or 128.7%. 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 $178,491 and $640,245 for the six months ended June 30, 2025 and 2024, respectively, a decrease of $461,754 or 72.1%.
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 $2,635,208 and $923,488 for the six months ended June 30, 2025 and 2024, respectively, an increase of $1,711,720
or 185.4%. The derivative liability arose primarily due to the revaluation of certain repriced conversion features on convertible debt
and the reset of the exercise price and full ratchet reset of certain warrants during the current period, and the subsequent mark-to-market
of these derivatives due to a declining stock price.

Net loss from equity
method investment

Net
loss from equity method investment was $0 and $572 for the six months ended June 30, 2025 and 2024