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

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 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.

9

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

2ACCOUNTING POLICIES AND ESTIMATES
(continued)

f)Recent accounting pronouncements

The Financial Accounting Standards Board
(“FASB”) issued additional updates during the quarter ended March 31, 2025. 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 unaudited condensed
financial statements upon adoption.

g)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 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 an aggregated 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 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 financial statements.
The CODM does not review segment assets at a level other than that presented in the Company’s balance sheets. There are no intra-entity
sales or