Company: IPSI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044146
Chunk: 114

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 114
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AP 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 three months ended March 31, 2025, the Company had a net loss of $4.1 million,
after deemed dividends. In connection with preparing the unaudited condensed financial statements for the three months ended March 31,
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 March 31, 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 accompanying unaudited condensed
financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

The Company has determined that there is substantial doubt
about its ability to continue as a going concern.

13

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

4NOTES
                                            RECEIVABLE

On February
22, 2024, the Company (utilizing a portion of the proceeds from the issuance of convertible debt) loaned funds to Business Warrior in
the principal amount of $226,190, which includes an original issue discount equal to $67,857, for net proceeds to Business Warrior of
$158,333. The loan is memorialized by a secured promissory note (the “Business Warrior Note”). The Business Warrior Note does
not accrued interest, except in the case of an event of default,