Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 20

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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. If such assets are considered impaired, the impairment to be recognized is measured by the amount by which the carrying
amount of the assets exceeds the fair value of the assets.

11

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

2ACCOUNTING
POLICIES AND ESTIMATES (continued)

m)Revenue Recognition

The Company’s revenue recognition
policy is consistent with the requirements of FASB ASC 606, Revenue.

The Company’s revenues are recognized
when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company
expects to receive in exchange for those services. The Company derives its revenues from the sale of its services, as defined below. The
Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations
under each of its revenue transactions:

i.identify
the contract with a customer;

ii.identify
the performance obligations in the contract;

iii.determine
the transaction price;

iv.allocate
the transaction price to performance obligations in the contract; and

v.recognize
revenue as the performance obligation is satisfied.

The Company had no revenues
for the three and six months ended June 30, 2025 and 2024. 

n)Share-Based Payment Arrangements

Generally, all forms of share-based
payments, including stock option grants, restricted stock grants and stock appreciation rights are measured at their fair value on the
awards’ grant date, based on the estimated number of awards that are ultimately expected to vest. Share-based compensation awards
issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the
share-based payment, whichever is more readily determinable. The expense resulting from share-based payments is recorded in operating
expenses in the statement of operations.

Subsequent to the Company’s reverse
merger which took place on May 12, 2016, the Company has utilized the market value of its Common Stock as quoted on the OTCQB, as an indicator
of the fair value of its Common Stock in determining share- based payment arrangements.

o)Derivative
Liabilities

ASC 815 generally provides three criteria
that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative
financial instruments. These three