Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 2194

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7A
Chunk 2194
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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 year ended December 31, 2024 and revenues of $410 for the year ended December 31, 2023. 

F-12

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

2ACCOUNTING POLICIES AND ESTIMATES
(continued)

o)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 consolidated statement of operations.

Prior
to the Company’s reverse merger which took place on May 12, 2016, all share-based payments were based on management’s estimate
of market value of the Company’s equity. The factors considered in determining managements estimate of market value includes, assumptions
of future revenues, expected cash flows, market acceptability of our technology and the current market conditions. These assumptions are
complex and highly subjective, compounded by the business being in its early stage of development in a new market with limited data available.

Where
equity transactions with arms-length third parties, who had applied their own assumptions and estimates in determining the market value
of our equity, had taken place prior