Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 69

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 69
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 the balance sheets at fair value in accordance with the accounting guidance.

ASC
825-10 “Financial Instruments” allows entities to voluntarily 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.

f)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.

F-10

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

2ACCOUNTING POLICIES AND ESTIMATES
(continued)

g)Recent accounting pronouncements

The
Financial Accounting Standards Board (“FASB”) issued additional updates during the year ended December 31, 2024.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 consolidated financial statements upon adoption.

h)Reporting by Segment

The
Company adopted FAS