Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 1122

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 1122
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 the third party assuming these obligations. Each party agreed to indemnify the other party harmless
for any damages, claims or expenses incurred by the other party.

The
novation agreement also provided the third party a 30-day transition period in which the Company assisted the third party in transferring
all the assets and obligations, including existing customers and wallets to the third party, thereafter the third party will no longer
be permitted to operate the IPSIPay app under the brand name “IPSIPay”.

The
assets and liabilities novated under the agreement as of September 5, 2023, were as follows:

    Amount 
  
    Assets 

    Current Assets 

    Receivable on sale of subsidiary 
    $231,431 

    Non-current assets 

    Intangible assets 
     1,098,598 
  
    Total assets 
     1,330,029 

    Current Liabilities 

    Accounts payable 
     263,864 

    Net loss on novation 
    $1,066,165 

6DISCONTINUED OPERATIONS

Effective
May 12, 2023, the Company disposed of its investment in Beyond Fintech pursuant to the May 2023 Frictionless Agreement, as disclosed in
note 4 above.

The
statement of operations from discontinued operations is as follows:

    Year ended December 31, 

    2024  
    2023 
  
    Net Revenue 
    $   -  
    $- 
  
    Cost of Goods Sold 
     -  
     - 
  
    Gross loss 
     -  
     - 

    General and administrative 
     -  
     40,821 
  
    Total Expense 
     -  
     40,821 

    Loss from operations before income taxes 
     -  
     (40,821)
  
    Income Taxes 
     -  
     - 
  
    Loss from discontinued operations, net of taxation 
    $-  
    $(40,821)

F-15

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

7INTANGIBLES

On
August 26, 2021, the Company formed Beyond Fintech to acquire a product known as Beyond Wallet from a third party for gross proceeds of
$250,000, together