Innovative Payment Solutions, Inc. (IPSI) reported a net loss of approximately $4.6 million for the fiscal year ending December 31, 2024, a decrease from a loss of $5.8 million in the previous year. The company generated no revenue in 2024, down from $410 in 2023, as it shifted focus to its joint venture, IPSIPay Express, which has yet to launch commercially. The accumulated deficit now stands at $62.8 million. General and administrative expenses decreased by 47.3% to $1.88 million, primarily due to reduced salaries, professional fees, and marketing costs as the company streamlined operations.
In terms of strategic developments, IPSI formed a joint venture, IPSIPay Express, in April 2023 with OpenPath, Inc. and EfinityPay, aimed at creating a real-time payment platform targeting the online gaming and entertainment sectors. The company committed to contribute up to $1.5 million to this venture, with $999,500 already invested as of December 31, 2024. However, the joint venture has not yet generated any revenue, and the company has acknowledged the uncertainty surrounding its future profitability.
Operationally, IPSI's employee count remained low, with only three full-time employees reported as of December 31, 2024. The company has also faced challenges in securing banking relationships necessary for its payment processing services. As of the end of 2024, IPSI had cash and cash equivalents of just $526, raising concerns about its ability to continue as a going concern without additional funding. The company has indicated a need for significant capital to support its operations and development plans.
Looking ahead, IPSI's management remains optimistic about the potential for revenue generation from IPSIPay Express, anticipating that initial revenues could be realized in the current fiscal year, contingent on successful product testing and market acceptance. However, the company has cautioned that there are no guarantees regarding the timing or magnitude of revenue generation, and it continues to explore various financing options to sustain its operations. The ongoing economic environment and competitive landscape in the fintech sector present additional uncertainties that could impact the company's future performance.
About Innovative Payment Solutions, Inc.
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