| EQUITY METHOD INVESTMENT |
| 7 |
EQUITY METHOD INVESTMENT |
On
April 28, 2023, the Company formed IPSIPay Express with OpenPath and EfinityPay. The Company had agreed to make IPSI Capital Contributions
to IPSIPay Express. As of December 31, 2023, the initial Tranche of $500,000 and the second Tranche of $500,000 of capital contributions
was paid by the Company to or on behalf of IPSIPay Express.
The
Company accounts for its investment in joint ventures in accordance with ASC 323, Investments – Equity Method and Joint
Ventures, the movement in equity method investments for the six months ended June 30, 2026 and the year ended December 31, 2025 is as
follow:
| | |
June 30, | | |
December 31, | |
| | |
2026 | | |
2025 | |
| Equity method Investment | |
| | |
| |
| IPSIPay Express | |
| | |
| |
| Cash contribution to IPSIPay Express | |
$ | 999,500 | | |
$ | 999,500 | |
| Fair value of warrants issued to third party joint venture partners | |
| 108,220 | | |
| 108,220 | |
| | |
| 1,107,720 | | |
| 1,107,720 | |
| Equity loss from joint venture | |
| (404,101 | ) | |
| (404,101 | ) |
| | |
| 703,619 | | |
| 703,619 | |
| Receivable from IPSIPay Express | |
| 1,524 | | |
| 1,524 | |
| | |
| 705,143 | | |
| 705,143 | |
| Impairment of investment | |
| (705,142 | ) | |
| (705,142 | ) |
| Net Investment in IPSIPay Express | |
$ | 1 | | |
$ | 1 | |
| | |
| | | |
| | |
| Jetties Partners, LLC | |
| | | |
| | |
| Fair value of equity issued to joint venture partners | |
$ | 4,200,000 | | |
$ | 4,200,000 | |
| Equity loss from joint venture | |
| - | | |
| - | |
| Derecognition of equity method investment in Jetties Partners and reclassified as a consolidated Variable Interest Entity (Note 5) | |
| (4,200,000 | ) | |
| - | |
| Net Investment in Jetties Partners, LLC | |
$ | - | | |
$ | 4,200,000 | |
| | |
| | | |
| | |
| Equity method investments | |
$ | 1 | | |
$ | 4,200,001 | |
|