Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 285

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 285
---
 of assets and liabilities and are measured using
the currently enacted tax rates and laws. A full valuation allowance is provided for the amount of deferred tax assets that, based on
available evidence, are not expected to be realized. It is the Company’s policy to classify interest and penalties on income taxes
as interest expense or penalties expense. As of December 31, 2022 and 2021, there have been no interest or penalties incurred on income
taxes.

F-32

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

17INCOME TAXES (continued)

The
provision for income taxes consists of the following:

    Year ended December 31, 2024  
    Year ended December 31,  2023 
  
    Current 

    Federal 
    $          -  
    $        - 
  
    State 
     -  
     - 
  
    Foreign 
     -  
     - 

    $-  
    $- 
  
    Deferred 

    Federal 
    $-  
    $- 
  
    State 
     -  
     - 
  
    Foreign 
     -  
     - 

    $-  
    $- 

A
reconciliation of the U.S. Federal 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