Innovative Payment Solutions, Inc. (IPSI) reported significant financial challenges in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded a net loss of $22 million, a stark increase from a loss of $797,645 in the same period last year. This represents a 2,658% rise in losses, primarily driven by substantial losses on convertible debt and adjustments related to price-protected warrants. Notably, the company reported no revenue for the quarter, consistent with the previous year, as it continues to pivot towards its IPSIPay Express joint venture, which has yet to launch commercially.

The financial performance reflects a dramatic shift in the company's operational landscape. General and administrative expenses decreased by 58% to $170,638, down from $407,132 in the prior year, largely due to reduced salaries following the resignation of key personnel, including the CFO. However, the company incurred a loss of $15.2 million related to the settlement and repricing of convertible notes, a significant increase from $36,305 in the prior year. This loss was attributed to anti-dilution adjustments and penalties on convertible debt, which is currently in default.

Operationally, IPSI has been focusing on developing its IPSIPay Express platform, a joint venture aimed at creating a real-time payment solution targeting the online gaming and entertainment sectors. Despite the potential of this venture, the company has not yet established banking relationships necessary for processing transactions, nor has it secured customers for its services. The company has indicated that it expects to generate revenue from IPSIPay Express through merchant processing fees and commissions, but no assurances can be made regarding the successful launch or revenue generation.

As of June 30, 2025, IPSI reported total assets of $435,847, a notable increase from $384,449 at the end of 2024, primarily due to an increase in notes receivable. However, the company's liabilities surged to $34 million, up from $10.9 million, largely due to a significant increase in derivative liabilities associated with its convertible debt. The company’s working capital deficit stands at $33.5 million, raising concerns about its liquidity and ability to continue as a going concern. Management has acknowledged the need for additional capital to fund operations and has expressed uncertainty about its ability to secure necessary financing.

Looking ahead, IPSI's management remains focused on launching the IPSIPay Express platform and generating revenue, but acknowledges the risks associated with its business model and market conditions. The company is actively seeking to raise funds through equity sales and other financing options, but faces substantial challenges given its current financial position and the ongoing volatility in the market.

About Innovative Payment Solutions, Inc.

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