Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 23

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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30, 2025, management evaluated the risks described in Note 2(e) above on the Company’s business and its future liquidity
for the next twelve months from the date of issuance of these financial statements.

The accompanying financial statements
for the period ended September 30, 2025 have been prepared assuming the Company will continue as a going concern, but the ability of the
Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it establishes
a revenue stream and, ultimately, becomes profitable. Management’s plans to continue as a going concern include raising additional
capital through sales of equity securities and borrowing. However, management cannot provide any assurances that the Company will be successful
in accomplishing any of its plans. If the Company is not able to obtain the necessary additional financing on a timely basis, the Company
will be required to delay and reduce the scope of the Company’s development and operations. Continuing as a going concern is dependent
upon its ability to successfully secure other sources of financing and attain profitable operations. The accompanying unaudited condensed
financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

The Company has determined that there is substantial doubt
about its ability to continue as a going concern.

13

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

4NOTES
RECEIVABLE

On February
22, 2024, the Company (utilizing a portion of the proceeds from the issuance of convertible debt) loaned funds to Business Warrior in
the principal amount of $226,190, which includes an original issue discount equal to $67,857, for net proceeds to Business Warrior of
$158,333. The loan is memorialized by a secured promissory note (the “Business Warrior Note”). The Business Warrior Note does
not accrued interest, except in the case of an event of default, which case interest accrues at 15% per annum. The Business Warrior
Note matures on the earlier to occur of December 31, 2025 and the date that Business Warrior securities are listed on a national securities
exchange. The Business Warrior Note may be prepaid at any time for an amount equal to 110% of the then principal and accrued interest.
The Company has the right to exchange the Business Warrior Note for securities issued by Business Warrior in any subsequent private placement
by Business Warrior. The principal and accrued interest