Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 1114

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 1114
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 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 loss as reported
on the Company’s consolidated statements of operations. The CODM uses net loss as the measure of profit or loss to allocate resources
and assess performance.

Since
the Company operates as one reportable segment, all financial information required by “Segment Reporting” can be
found in the accompanying consolidated financial statements. The CODM does not review segment assets at a level other than that presented
in the Company’s consolidated balance sheets. There are no intra-entity sales or transfers, and no significant expense categories
regularly provided to the CODM beyond those disclosed in the Consolidated Statements of Operations.

i)Cash and Cash Equivalents

The
Company considers all highly liquid investments with original maturities of three