Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 17

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 and will be subject to significant risks and uncertainties including financial, operational, regulatory, and other risks, including
the potential risk of business failure. In particular, there is a risk that that IPSIPay Express business (the commercial launch of which
has taken longer than originally expected) may never generate revenue for the Company. Further, the ongoing wars in Ukraine and between
Israel, Hamas and more recently, Hezbollah and uncertainties regarding the global economic environment which has resulted in a general
tightening in the credit markets, lower levels of liquidity, increases in the rates of default and bankruptcy, and extreme volatility
in credit, equity and fixed income markets. These conditions may not only limit the Company’s access to capital, but also make it
difficult for its customers, vendors and the Company to accurately forecast and plan future business activities, which may have an
adverse impact on its business and financial condition and may hamper the Company’s ability to generate revenue and access usual
sources of liquidity on reasonable terms.

The Company’s results may be adversely
affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of
taxation, among other things.

9

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

2ACCOUNTING
POLICIES AND ESTIMATES (continued)

f)Recent
accounting pronouncements

The Financial Accounting Standards Board
(“FASB”) issued additional updates during the quarter ended June 30, 2025. None of these standards are either applicable to
the Company or require adoption at a future date and none are expected to have a material impact on the Company’s unaudited condensed
financial statements upon adoption.

g)Reporting
by Segment

The Company adopted FASB issued ASU
2023-07, “Segment Reporting (ASC Topic 280) for the annual reporting period ended December 31, 2024. The most significant provision
was for the Company to disclose significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”),
who is the CEO. All expense categories on the Statements of Operations are significant and there are no other significant segment expenses
that would require disclosure. The Company’s CODM, reviews financial information presented on an aggregated basis for the purpose
of making operating decisions, allocating resources, assessing financial performance and making strategic decisions related to headcount
and capital expenditures. The CODM regularly reviews