Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 2188

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7A
Chunk 2188
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ay ExpressTM products
and potentially other product offerings.

On July 28,
2024, the Company entered into an Agreement and Plan of Merger by and among the Company, IPSI Merger Sub, Inc., a Delaware corporation
and a newly formed, wholly owned subsidiary of the Company (“Merger Sub”) and Business Warrior.

On January
22, 2025, the Company and Business Warrior mutually agreed to terminate the Agreement and Plan of Merger dated July 28, 2024. This decision
reflects our shared understanding and agreement that discontinuing the merger is in the best interest of both parties.  

2ACCOUNTING POLICIES AND ESTIMATES

a)Basis of Presentation

The
accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S.
GAAP”).

All
amounts referred to in the notes to the consolidated financial statements are in United States Dollars ($) unless stated otherwise.

b)Principles of Consolidation

The
consolidated financial statements as of December 31, 2024, include the financial statements of the Company. The consolidated financial
statements as of December 31, 2023, include the financial statements of the Company and its subsidiary, Beyond Fintech, in which it had
a majority voting interest, until May 12, 2023, the date of disposal. Pursuant to the May 2023 Frictionless Agreement, the Company disposed
of its 51% interest in Beyond Fintech. Therefore, as of May 12, 2023 the Company has no subsidiaries. See note 4 for further information.

All
significant inter-company accounts and transactions have been eliminated in the consolidated financial statements.

c)Use of Estimates

The
preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions, which
are evaluated on an ongoing basis, that affect the amounts reported in the consolidated 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