Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 1017

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 1017
---
2021, there have been no interest or penalties incurred on income
taxes.

F-32

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

17INCOME TAXES (continued)

The
provision for income taxes consists of the following:

    Year ended December 31, 2024  
    Year ended December 31,  2023 
  
    Current 

    Federal 
    $          -  
    $        - 
  
    State 
     -  
     - 
  
    Foreign 
     -  
     - 

    $-  
    $- 
  
    Deferred 

    Federal 
    $-  
    $- 
  
    State 
     -  
     - 
  
    Foreign 
     -  
     - 

    $-  
    $- 

A
reconciliation of the U.S. Federal statutory income tax to the effective income tax is as follows:

    Year ended December 31, 2024  
    Year ended December 31, 2023 
  
    Continuing operations 

    Tax expense at the federal statutory rate 
    $(866,532) 
    $(1,225,845)
  
    State tax expense, net of federal tax effect 
     (226,139) 
     (170,564)
  
    Permanent differences 
     387,714  
     712,951 
  
    Prior year net operating loss true up 
     (1,020,869) 
     (228,714)

     (1,725,826) 
     (912,172)
  
    Deferred income tax asset valuation allowance 
     1,725,826  
     912,172 

    $-  
    $- 

Significant
components of the Company’s deferred income tax assets are as follows:

    December 31, 2024  
    December 31, 2023 
  
    Other 
    $241,491  
    $241,491 
  
    Capital loss 
     491,275  
     491,275 
  
    Net operating losses 
     8,625,904  
     6,900,076 
  
    Stock based compensation 
     511,142