Company: IPSI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044146
Chunk: 19

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 instrument
with the same terms as the embedded derivative instrument would be considered a derivative instrument subject to the requirements of ASC
815. ASC 815 also provides an exception to this rule when the host instrument is deemed to be conventional, as described.

    p) Marketing and advertising expenses 

Marketing and advertising expenditure
incurred on promoting the Company’s previous products were expensed as incurred. Marketing and advertising costs amounted to $0 and
$75,707 for the three months ended March 31, 2025 and 2024, respectively.

12

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

2ACCOUNTING POLICIES AND ESTIMATES
(continued)

q)Income Taxes

The Company is based in the U.S. and
currently enacted U.S. tax laws are used in the calculation of income taxes.

Income taxes are computed using the
asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the
differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates
and laws. A full valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected
to be realized. It is the Company’s policy to classify interest and penalties on income taxes as interest expense or penalties expense.
As of March 31, 2025 and December 31, 2024, there have been no interest or penalties incurred on income taxes.

r)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.

s)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 financial statements
are prepared using 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 three months