Company: IPSI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044146
Chunk: 13

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 management to make estimates and assumptions, which are evaluated on an ongoing
basis, that affect the amounts reported in the unaudited condensed financial statements and accompanying notes. Management bases its estimates
on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which
form the basis for making judgments about the carrying values of assets and liabilities and the amounts of revenues and expenses that
are not readily apparent from other sources. Actual results could differ from those estimates and judgments. In particular, significant
estimates and judgments include those related to, the estimated useful lives for plant and equipment, the fair value of long-lived investments,
the fair value of warrants and stock options granted for services, debt extinguishments or compensation, convertible debt and amendments
thereto, derivative liabilities, the valuation allowance for deferred tax assets due to continuing operating losses and the allowance
for doubtful accounts.

Making estimates requires management
to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set
of circumstances that existed at the date of the unaudited condensed financial statements, which management considered in formulating
its estimate could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly
from our estimates.

c)Contingencies

Certain conditions may exist as of the
date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more
future events occur or fail to occur.

The Company’s management assesses
such contingent liabilities, and such assessment inherently involves an exercise of judgment.

If the assessment of a contingency indicates
that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability
would be accrued in the Company’s unaudited condensed financial statements. If the assessment indicates that a potential material
loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent
liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. Loss contingencies
considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be
disclosed.

8

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

    2
    ACCOUNTING POLICIES AND ESTIMATES (continued)