Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 18

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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verse impact on its business and financial condition and may hamper the Company’s ability to generate revenue and access usual
sources of liquidity on reasonable terms.

The Company’s results may be
adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and
methods of taxation, among other things.

9

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

2ACCOUNTING
POLICIES AND ESTIMATES (continued)

f)Recent
accounting pronouncements

The Financial Accounting Standards Board
(“FASB”) issued additional updates during the quarter ended September 30, 2025. None of these standards are either applicable
to the Company or require adoption at a future date and none are expected to have a material impact on the Company’s unaudited condensed
financial statements upon adoption.

g)Reporting
by Segment

The Company adopted FASB issued ASU
2023-07, “Segment Reporting (ASC Topic 280) for the annual reporting period ended December 31, 2024. The most significant provision
was for the Company to disclose significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”),
who is the CEO. All expense categories on the Statements of Operations are significant and there are no other significant segment expenses
that would require disclosure. The Company’s CODM, reviews financial information presented on an aggregated basis for the purpose
of making operating decisions, allocating resources, assessing financial performance and making strategic decisions related to headcount
and capital expenditures. The CODM regularly reviews net loss as reported on the Company’s statements of operations. The CODM uses
net loss as the measure of profit or loss to allocate resources and assess performance.

Since the Company operates as one reportable
segment, all financial information required by “Segment Reporting” can be found in the accompanying financial statements.
The CODM does not review segment assets at a level other than that presented in the Company’s balance sheets. There are no intra-entity
sales or transfers, and no significant expense categories regularly provided to the CODM beyond those disclosed in the Statements of Operations.

h)Cash and Cash Equivalents

The Company considers all highly liquid
investments with original maturities of three months or less at the time of purchase to be cash equivalents. At September 30, 2025 and
December 31,