Innovative Payment Solutions, Inc. (IPSIPay) reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company recorded total assets of $1,037,752, a notable increase from $805,216 at the end of 2023. Current assets rose to $145,627 from $89,251, while non-current assets increased to $892,125 from $715,965. However, current liabilities also surged to $10,629,015 from $8,383,227, leading to a worsening total stockholders’ equity deficit of $(9,591,263) compared to $(7,578,011) at the end of 2023.

Revenue for the three and nine months ended September 30, 2024, was reported at $0, a decline from $410 for the same period in 2023. This drop is attributed to the novation of the legacy IPSIPay platform to a third party in September 2023. General and administrative expenses decreased significantly, totaling $296,438 for the third quarter of 2024, down 60.2% from $745,688 in the same quarter of 2023. For the nine-month period, these expenses were $1,330,367, a 51.7% reduction from $2,753,266 in 2023.

The company reported a net loss of $(1,728,152) for the third quarter of 2024, compared to $(1,015,143) in the same quarter of 2023, marking a 70.2% increase in losses. For the nine months ended September 30, 2024, the net loss was $(2,857,262), a decrease of 36.0% from $(4,464,347) in 2023. The loss from operations for the nine-month period was $(1,331,994), down from $(3,135,704) in the previous year.

Strategically, IPSIPay has been focusing on its joint venture, IPSIPay Express, which aims to develop a real-time payment platform for the online gaming and entertainment sectors. The company has committed to contribute up to $1,500,000 to this venture. Additionally, a merger agreement was signed on July 28, 2024, to acquire Business Warrior Corporation, which is expected to enhance capital-raising capabilities and operational efficiencies.

The company has also faced challenges, including a significant increase in losses related to convertible notes, which rose to $(4,534,491) for the third quarter of 2024 from $(58,769) in the same period of 2023. The derivative liability movements for the quarter showed a credit of $5,538,008, reflecting the volatility in the company's financial instruments.

As of September 30, 2024, IPSIPay's cash balance was $1,033, with a working capital deficit of $10.3 million. The company plans to raise additional funds through equity or equity-linked securities to support its operations and the merger with Business Warrior, while acknowledging the risks associated with potential dilution and unfavorable financing terms.