Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 1297

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 6
Chunk 1297
---
 research and experimental expenditures that will be effective in the future). Notwithstanding
the reduction in the corporate income tax rate, the overall impact of the new federal tax law is uncertain, including to what extent various
states will conform to the newly enacted federal tax law.

Income
taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities
are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using
the currently enacted tax rates and laws. A full valuation allowance is provided for the amount of deferred tax assets that, based on
available evidence, are not expected to be realized. It is the Company’s policy to classify interest and penalties on income taxes
as interest expense or penalties expense. As of December 31, 2022 and 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,