Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 135

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 135
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 choose to measure certain financial assets and liabilities at fair value (fair value option). The fair
value option may be elected on an instrument-by-instrument basis and is irrevocable unless a new election date occurs. If the fair value
option is elected for an instrument, unrealized gains and losses for that instrument should be reported in earnings at each subsequent
reporting date. We evaluate the fair value of variably priced derivative liabilities on a quarterly basis and report any movements thereon
in earnings.

e)Risks and Uncertainties

The Company’s operations and prospects
are and will be subject to significant risks and uncertainties including financial, operational, regulatory, and other risks, including
the potential risk of business failure. In particular, there is a risk that that IPSIPay Express business (the commercial launch of which
has taken longer than originally expected) may never generate revenue for the Company. Further, the ongoing wars in Ukraine and between
Israel, Hamas and more recently, Hezbollah and uncertainties regarding the global economic environment which has resulted in a general
tightening in the credit markets, lower levels of liquidity, increases in the rates of default and bankruptcy, and extreme volatility
in credit, equity and fixed income markets. These conditions may not only limit the Company’s access to capital, but also make it
difficult for its customers, vendors and the Company to accurately forecast and plan future business activities, which may have an
adverse 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