Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 133

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 133
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consisting only of normal
recurring adjustments), which the Company considers necessary, for a fair presentation of those financial statements. The results of operations
and cash flows for the three and nine months ended September 30, 2025 may not necessarily be indicative of results that may be expected
for any succeeding quarter or for the entire fiscal year. The information contained in this Report should be read in conjunction with
the audited financial statements of IPSI for the year ended December 31, 2024, included in the Company’s Annual Report on Form 10-K
as filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2025.

The accompanying unaudited condensed
financial statements have been prepared in accordance with U.S. GAAP.

All amounts referred to in the notes
to the unaudited condensed financial statements are in United States Dollars ($) unless stated otherwise.

b)Use of Estimates

The preparation of unaudited condensed
financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions, which are evaluated on an ongoing
basis, that affect the amounts reported in the unaudited condensed financial statements and accompanying notes. Management bases its estimates
on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which
form the basis for making judgments about the carrying values of assets and liabilities and the amounts of revenues and expenses that
are not readily apparent from other sources. Actual results could differ from those estimates and judgments. In particular, significant
estimates and judgments include those related to, the estimated useful lives for plant and equipment, the fair value of long-lived investments,
the fair value of warrants and stock options granted for services, debt extinguishments or compensation, convertible debt and amendments
thereto, derivative liabilities, the valuation allowance for deferred tax assets due to continuing operating losses and the allowance
for doubtful accounts.

Making estimates requires management
to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set
of circumstances that existed at the date of the unaudited condensed financial statements, which management considered in formulating
its estimate could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly
from our estimates.

c)Contingencies

Certain conditions may exist as of the
date the financial statements are issued, which may result in a loss to the Company, but which will only