Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 545

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1C
Chunk 545
---
 
  
    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 with the logo, use of name and implementation of the product into the Company’s technology. The Company owned 51%
of Beyond Fintech with the other 49% owned by Frictionless. Up until the date of disposal, the Company invested a further $77,211
on the software to further enhance the Beyond Wallet product offering.  On May 12, 2023, Beyond Fintech was sold to Frictionless
(see note 4 above).

During
the year ended December 31, 2021, the Company paid gross proceeds of $375,000 to Frictionless for the development of the IPSIPay
wallet, and up until the date of novation, the Company invested a further $1,171,805 to facilitate the functioning of the IPSIPay software
in the cloud environment. On September 5, 2023, the Company novated all its rights and obligations to its IPSIPay wallet to a third
party (see note 5 above).

Amortization
expense was $0 and $347,298 for the years ended December 31, 2024 and 2023, respectively.

8EQUITY METHOD INVESTMENT

On
April 28, 2023, the Company formed IPSIPay Express with OpenPath and EfinityPay (see note 1(b) above). As described in note 1(b), the
Company has agreed to make the IPSI Capital Contributions to IPSIPay Express. As of December 31, 2023, the initial Tranche of $500,000 and
the second Tranche of $500,000 of capital contributions was paid by the Company to or on behalf of IPSIPay Express.

The