Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 536

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1C
Chunk 536
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operations and prospects are 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.

F-10

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

2ACCOUNTING POLICIES AND ESTIMATES
(continued)

g)Recent accounting pronouncements

The
Financial Accounting Standards Board (“FASB”) issued additional updates during the year ended December 31, 2024.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 consolidated financial statements upon adoption.

h)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 Consolidated 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 a consolidated 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 net