Company: IPSI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044146
Chunk: 18

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 18
---
 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 the
three months ended March 31, 2025 and 2024. 

n)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 statement of operations.

Subsequent to the Company’s reverse
merger which took place on May 12, 2016, the Company has utilized the market value of its Common Stock as quoted on the OTCQB, as an indicator
of the fair value of its Common Stock in determining share- based payment arrangements.

o)Derivative Liabilities

ASC 815 generally provides three criteria
that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative
financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded
derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid
instrument that embodies both the embedded derivative instrument and the host contract is not re- measured at fair value under otherwise
applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate