Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 24

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 24
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 restricted products.
In the past there have been news articles on how organized crime groups have used other payment services to transfer money in the course
of illegal transactions.

Criminals are using
increasingly sophisticated methods to engage in illegal activities such as counterfeiting and fraud. It is possible that incidents of
fraud could increase in the future. Our risk management policies and procedures may not be fully effective to identify, monitor and manage
these risks. We are not able to monitor in each case the sources for our counterparties’ funds or the ways in which they use them.
Increases in chargebacks or other liability could have a material adverse effect on our business, financial condition and results of
operations. Furthermore, an increase in fraudulent transactions or publicity regarding chargeback disputes could harm our reputation
and reduce consumer confidence in the use of our products.

14

We may not be
able to successfully protect the intellectual property we license or own and may be subject to infringement claims.

We rely on a combination
of contractual rights, copyright, trademark and trade secret laws to establish and protect our technology and the technology that we
license and/or that we develop in the future. We have applied for trademark protection for certain marks, but there is a risk that such
trademarks will not be approved, which could leave us without important protections for our brand.

Also, we customarily
require our employees and independent contractors to execute confidentiality agreements or otherwise to agree to keep our proprietary
information and the information we license confidential when their relationship with us begins. Typically, our employment contracts also
include clauses requiring our employees to assign to us all the inventions and intellectual property rights they develop in the course
of their employment and to agree not to disclose our confidential information. Nevertheless, others, including our competitors, may independently
develop similar technology to that licensed by us, duplicate our services or design around our intellectual property. Further, contractual
arrangements may not prevent unauthorized disclosure of our confidential information or ensure an adequate remedy in the event of any
unauthorized disclosure of our confidential information. We may have to litigate to enforce or determine the scope or enforceability
of our intellectual property rights (including trade secrets and know-how), which could be expensive, could cause a diversion of resources
and may not prove successful. The loss of intellectual property protection could harm our business and ability to compete and could result
in costly redesign efforts, discontinuance of certain service offerings or other competitive harm. Additionally, we do not hold any patents
for our