Innovative Payment Solutions Reports $4.1 Million Net Loss and Cash Challenges

Innovative Payment Solutions, Inc. (IPSI) reported a net loss of $4.1 million for the three months ending March 31, 2025, a significant increase from a loss of $331,465 during the same period in 2024. The company's financial performance was impacted by a notable rise in losses associated with convertible debt, which totaled $2.5 million, compared to $66,047 in the prior year. The company did not generate any revenue during the quarter, maintaining a trend from the previous year. General and administrative expenses decreased by 59.4% to $254,308, primarily due to reduced legal fees and salary adjustments following the resignation of the Chief Financial Officer.

Total assets for IPSI increased to $391.6 million as of March 31, 2025, up from $384.4 million at the end of 2024. However, total liabilities also rose significantly to $14.3 million, compared to $11 million at the end of the previous fiscal year. The increase in liabilities was largely driven by a rise in derivative liabilities, which reached $4.2 million, reflecting adjustments related to the company's convertible debt and warrants. The company's accumulated deficit now stands at $66.9 million.

Strategically, IPSI has focused on its joint venture, IPSIPay Express, which aims to develop a real-time payment platform targeting the online gaming and entertainment sectors. However, as of the reporting date, the platform has not yet launched, and the company has not established necessary banking relationships or secured customers. The company has committed to contribute up to $1.5 million to the joint venture, but the operational status remains uncertain, with no revenue generated to date.

Operationally, IPSI's cash position is precarious, with only $57 in cash and a working capital deficit of $13.8 million. The company has indicated that it will need to raise significant additional funds to support its operations and continue its business model. Management has expressed concerns about the company's ability to continue as a going concern, emphasizing the need for capital to fund ongoing losses and operational expenses. The outlook remains uncertain, with management acknowledging the risks associated with launching IPSIPay Express and the broader economic environment, including inflation and foreign exchange fluctuations.