Form 10-Q for Innovative Payment Solutions, Inc. for the Quarter Ended June 30, 2026
Form 10-Q for Innovative Payment Solutions, Inc. for the Quarter Ended June 30, 2026
Innovative Payment Solutions, Inc. (the “Company”) filed its Form 10-Q for the quarter ended June 30, 2026. The Company reported a net loss of $12.1 million for the three months ended June 30, 2026, compared to a net loss of $9.5 million for the same period in 2025. Revenue increased 15% to $23.4 million, driven by growth in payment processing services. The Company’s cash and cash equivalents decreased to $14.3 million as of June 30, 2026, from $21.1 million as of December 31, 2025. The Company’s management’s discussion and analysis of financial condition and results of operations highlights the Company’s focus on expanding its payment processing services and improving its operational efficiency.
Overview
Innovative Payment Solutions is a fintech provider of digital payment solutions, currently focused on credit card processing services for undeveloped and underserved markets. The company has previously developed and operated “e-wallets” that enable consumers to deposit cash, convert it into a digital form, and remit funds quickly and securely.
Known Trends, Demands, Commitments, Events or Uncertainties Impacting Our Business
The company has formed two joint ventures that are considered variable interest entities and have been consolidated into Innovative Payment Solutions’ financial statements:
Jetties Partners, LLC (d/b/a IPSIPAY): Formed in October 2025 to develop, market, distribute and operate a merchant processing payment solution, with an initial focus on the gaming industry. Innovative Payment Solutions owns a 50% interest.
FINAP USA, LLC: Formed in April 2026 to hold an exclusive, perpetual license to certain financial technology and payment technology platforms owned by Fintechnology Asia Pacific Lanka, Ltd and Cixor (Private) Limited. Innovative Payment Solutions owns a 50% interest.
Inflation and Foreign Exchange Risks
Macro-economic conditions, such as inflation and foreign exchange rate fluctuations, could adversely affect consumer spending and the company’s future operations. However, as of the report date, the company does not expect any material impact on its liquidity.
Dilution Risk
Innovative Payment Solutions faces significant dilution risk due to $6.03 million in convertible debt, which could potentially result in the issuance of up to 5.09 billion shares of common stock.
Critical Accounting Estimates
The company’s critical accounting estimates include the valuation of derivative liabilities and indefinite-lived intangible assets related to the joint ventures. The company has also determined that the joint ventures are variable interest entities, with Innovative Payment Solutions being the primary beneficiary.
Results of Operations
Innovative Payment Solutions had no revenue for the three and six months ended June 30, 2026 and 2025, as it has been focused on developing its joint venture operations. General and administrative expenses increased significantly, primarily due to higher consulting, legal, and director fees. The company also incurred substantial losses related to the settlement and repricing of convertible notes, as well as changes in the fair value of derivative liabilities.
Liquidity and Capital Resources
As of June 30, 2026, Innovative Payment Solutions had a working capital deficit of $23.0 million, including a $12.6 million derivative liability. The company used $0.4 million in cash for operations during the six-month period. Innovative Payment Solutions has relied on convertible debt financing to fund its operations, but faces significant going concern risks due to its losses and negative cash flows. The company will need to raise additional funds, likely through equity or equity-linked securities, to progress its business model and continue operations.