Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 60

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 60
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 Express
have included the following:

●Securing
Banking Relationships. To engage in traditional credit card processing or the proposed IPEX account-to-account payment solution, it is
necessary to work with qualified banking institutions through which transactions are processed. As of the date of this Report, such relationships
are not  in place.

●Assisting
with Payment Logistics. We have been working with our IPSIPay Express joint venture partners to establish the systems and technology
necessary to effectuate payments through IPEX. As of the date of this Report, the establishment of such systems and technology is still
ongoing, which is the primary reason why IPEX has not been commercially launched to date.

●Securing
Customers. Our management has also been working to secure potential customers for IPEX. These customers would include gaming and entertainment
businesses.

No assurances can be given
that IPSIPay Express will be successfully launched or will generate revenues or otherwise have a positive impact on our results of operations.
We believe IPSIPay Express could be commercially launched and generate initial revenues during the current fiscal year, but no assurances
can be provided that this will be achieved or that (i) we will be able to raise funds satisfactory to fulfill all of our capital contributions
to IPSIPay Express or (ii) that we will ever receive distributions of free cash flow from IPSIPay Express. Moreover, the IPSIPay Express
product offering will be targeting so-called “high risk” sectors such as online gaming and entertainment, which also carries
certain risks.

Inflation

Macro-economic conditions
could affect consumer spending adversely and consequently our future operations when we fully launch our e-wallet products commercially.
The U.S. has entered a period of significant inflation, and this may impact consumer’s desire to adopt our products and services
and may increase our costs overall. However, as of the date of this report, we do not expect there to be any material impact on our liquidity
as forecast in our business plan due to recent inflationary concerns in the U.S.

Foreign Exchange Risks

We intend to operate in several
foreign countries. Changes and fluctuations in the foreign exchange rate between the US Dollar and other foreign currencies may in future
have an effect our results of operations.

32

Critical Accounting Estimates

Preparation of our financial
statements in accordance with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of certain assets,
liabilities, revenues and expenses, as well