Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 876

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 876
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 statutory income tax to the effective income tax is as follows:

    Year ended December 31, 2024  
    Year ended December 31, 2023 
  
    Continuing operations 

    Tax expense at the federal statutory rate 
    $(866,532) 
    $(1,225,845)
  
    State tax expense, net of federal tax effect 
     (226,139) 
     (170,564)
  
    Permanent differences 
     387,714  
     712,951 
  
    Prior year net operating loss true up 
     (1,020,869) 
     (228,714)

     (1,725,826) 
     (912,172)
  
    Deferred income tax asset valuation allowance 
     1,725,826  
     912,172 

    $-  
    $- 

Significant
components of the Company’s deferred income tax assets are as follows:

    December 31, 2024  
    December 31, 2023 
  
    Other 
    $241,491  
    $241,491 
  
    Capital loss 
     491,275  
     491,275 
  
    Net operating losses 
     8,625,904  
     6,900,076 
  
    Stock based compensation 
     511,142  
     511,142 
  
    Valuation allowance 
     (9,869,812) 
     (8,143,984)
  
    Net deferred income tax assets 
    $-  
    $- 

The
valuation allowance for deferred income tax assets as of December 31, 2024 and December 31, 2023 was $9,869,812 and
$8,143,984, respectively. The net change in the deferred income tax assets valuation allowance was an increase of $1,725,826 and
is primarily attributable to tax operating losses and capital losses realized during the current year.

As
of December 31, 2024, the prior three years remain open for examination by the federal or state regulatory agencies
for purposes of an audit for tax purposes.

As
of December 31, 2024, the Company had available for income tax purposes approximately $32.1 million in federal and $30.0 million
in state net operating loss carry forwards, which