Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 21

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations
under each of its revenue transactions:

i.identify
the contract with a customer;

ii.identify
the performance obligations in the contract;

iii.determine
the transaction price;

iv.allocate
the transaction price to performance obligations in the contract; and

v.recognize
revenue as the performance obligation is satisfied.

TheCompany had no revenues for the three and nine months
ended September 30, 2025 and 2024.

n)Share-Based Payment Arrangements

Generally, all forms of share-based
payments, including stock option grants, restricted stock grants and stock appreciation rights are measured at their fair value on the
awards’ grant date, based on the estimated number of awards that are ultimately expected to vest. Share-based compensation awards
issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the
share-based payment, whichever is more readily determinable. The expense resulting from share-based payments is recorded in operating
expenses in the statement of operations.

Subsequent to the Company’s reverse
merger which took place on May 12, 2016, the Company has utilized the market value of its Common Stock as quoted on the OTCQB, as an indicator
of the fair value of its Common Stock in determining share- based payment arrangements.

o)Derivative
Liabilities

ASC 815 generally provides three criteria
that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative
financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded
derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid
instrument that embodies both the embedded derivative instrument and the host contract is not re- measured at fair value under otherwise
applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument
with the same terms as the embedded derivative instrument would be considered a derivative instrument subject to the requirements of ASC
815. ASC 815 also provides an exception to this rule when the host instrument is deemed to be conventional, as described.

p)Marketing
and advertising expenses

Marketing and advertising expenditure
incurred on promoting the Company’s previous products were expensed as incurred. Marketing and