Company: IPSI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044146
Chunk: 106

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 106
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 Stock.

    c)
    Merger Agreement with Business Warrior

Business Warrior Corporation (“Business
Warrior”) is a publicly listed, revenue generating fintech company that offers PayPlan, a comprehensive lending software platform
that includes marketing services for lenders and businesses. We believed that a potential combination with a fintech company that generates
some revenue monthly would complement the development and commercial launch of our IPSIPay ExpressTM products and potentially
other product offerings.

On July 28, 2024, the Company entered
into an Agreement and Plan of Merger by and among the Company, IPSI Merger Sub, Inc., a Delaware corporation and a newly formed, wholly
owned subsidiary of the Company (“Merger Sub”) and Business Warrior.

On January 22, 2025, the Company and
Business Warrior mutually agreed to terminate the Agreement and Plan of Merger dated July 28, 2024. This decision reflects our shared
understanding and agreement that discontinuing the merger is in the best interest of both parties.  

7

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

2ACCOUNTING POLICIES AND ESTIMATES

a)Basis of Presentation

The accompanying unaudited condensed
financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for
interim financial information with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, these unaudited condensed
financial statements do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In
the opinion of management, the accompanying unaudited condensed financial statements include all adjustments (consisting only of normal
recurring adjustments), which the Company considers necessary, for a fair presentation of those financial statements. The results of operations
and cash flows for the three months ended March 31, 2025 may not necessarily be indicative of results that may be expected for any succeeding
quarter or for the entire fiscal year. The information contained in this Report should be read in conjunction with the audited financial
statements of IPSI for the year ended December 31, 2024, included in the Company’s Annual Report on Form 10-K as filed with the
Securities and Exchange Commission (the “SEC”) on March 31, 2025.

The accompanying unaudited condensed
financial statements have been prepared in accordance with