Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 140

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 140
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 realized. It is the Company’s policy to classify interest and penalties on income taxes as interest expense or penalties expense.
As of September 30, 2025 and December 31, 2024, there have been no interest or penalties incurred on income taxes.

r)Comprehensive
income

Comprehensive income is defined as the
change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from
investments from owners and distributions to owners. The Company does not have any comprehensive income (loss) for the periods presented.

s)Reclassification
of prior year presentation

Certain prior year amounts have been
reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.

3LIQUIDITY
MATTERS AND GOING CONCERN

The Company’s financial statements
are prepared using U.S. GAAP applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities
in the normal course of business. The Company has incurred net losses since its inception and anticipates net losses and negative operating
cash flows for the near future. For and as of the nine months ended September 30, 2025, the Company had a net loss of $48.3 million,
after deemed dividends of $1.8 million. In connection with preparing the unaudited condensed financial statements for the nine months
ended September 30, 2025, management evaluated the risks described in Note 2(e) above on the Company’s business and its future liquidity
for the next twelve months from the date of issuance of these financial statements.

The accompanying financial statements
for the period ended September 30, 2025 have been prepared assuming the Company will continue as a going concern, but the ability of the
Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it establishes
a revenue stream and, ultimately, becomes profitable. Management’s plans to continue as a going concern include raising additional
capital through sales of equity securities and borrowing. However, management cannot provide any assurances that the Company will be successful
in accomplishing any of its plans. If the Company is not able to obtain the necessary additional financing on a timely basis, the Company
will be required to delay and reduce the scope of the Company’s development and operations. Continuing as a going concern is dependent
upon its ability to successfully secure other sources of financing and attain profitable operations. The