Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 689

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 689
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 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, 2024 and December 31, 2023, there have been no interest or penalties incurred
on income taxes.

s)Comprehensive income

Comprehensive
income is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding
transactions resulting from investments from owners and distributions to owners. The Company does not have any comprehensive income (loss)
for the periods presented.

F-13

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

2ACCOUNTING POLICIES AND ESTIMATES
(continued)

t)Reclassification of prior
year presentation

Certain
prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on
the reported results of operations.

3LIQUIDITY MATTERS AND GOING
CONCERN

The
Company’s consolidated financial statements are prepared using accounting principles generally accepted in the United States (“U.S.
GAAP”) applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal
course of business. The Company has incurred net losses since its inception and anticipates net losses and negative operating cash flows
for the near future. For and as of the year ended December 31, 2024, the Company had a net loss of $4.6 million. In connection with
preparing the consolidated financial statements for the year ended December 31, 2024, management evaluated the risks described in Note
2(f) above on the Company’s business and its future liquidity for the next twelve months from the date of issuance of these financial
statements.

The
accompanying consolidated financial statements for the period ended December 31, 2024
have been prepared assuming the Company will continue as a going concern, but the ability of the Company to continue as a going
concern is dependent on the Company obtaining adequate capital to fund operating losses until it establishes a revenue stream and
becomes profitable. Management’s plans to continue as a going concern include raising additional capital through sales of
equity securities and borrowing. However, management cannot provide any assurances that the Company will be successful in
accomplishing any of its plans. If the Company is not able to obtain the necessary additional financing on a timely