Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 877

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 877
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 may be available to offset future taxable income. $3.5 million of the net
operating losses will begin to expire in 2034 and $28.6 million has an indefinite life. Due to the uncertainty of
the utilization and recoverability of the loss carryforwards and other deferred tax assets, Management has determined a full valuation
allowance for the deferred tax assets since it is more likely than not that the deferred tax assets will not be realizable.

The
Company’s ability to utilize the previous Federal operating loss carryforwards may be adjusted if, pursuant to IRC Section 382/383
of the Internal Revenue Code of 1986, as amended, a change of ownership occurs. Management does not believe an ownership change has occurred
under IRC Section 382/383. A future change in ownership may result in an adjustment to the loss carryforward.

The
Company is subject to taxation in the U.S. and CA state. U.S. federal income tax returns for 2019 and after, remain open to examination.
No income tax returns are currently under examination. As of December 31, 2024 and 2023, the Company does not have any unrecognized tax
benefits, and continues to monitor its current and prior tax positions for any changes. The Company recognizes penalties and interest
related to unrecognized tax benefits as income tax expense. For the years ended December 31, 2024 and 2023, there were no penalties or
interest recorded in income tax expense. 

F-33

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

18NET LOSS PER SHARE

Basic
loss per share is based on the weighted-average number of common shares outstanding during each period. Diluted loss per share is based
on basic shares as determined above plus common stock equivalents. The computation of diluted net loss per share does not assume the issuance
of common shares that have an anti-dilutive effect on net loss per share. For the years ended December 31, 2024 and 2023 all
warrants options and convertible debt securities were excluded from the computation of diluted net loss per share.

Dilutive
shares which could exist pursuant to the exercise of outstanding stock instruments and which were not included in the calculation because
their affect would have been anti-dilutive for the years ended December 31, 2024 and 2023 are as follows: