Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 12

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 12
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 our common stock at prices ranging from 60% of historical trading
prices over a trading period to $0.345 per share, which has subsequently been adjusted to $0.04 per share. In addition, upon the occurrence
and during the continuation of an Event of Default (as defined in the notes), the notes each will become immediately due and payable
and we have agreed to pay additional default interest rates. We may not have sufficient cash resources or access to funding to repay
such notes. Moreover, upon conversion of these notes, our current shareholders will suffer dilution, which given the current conversion
price of the notes would be significant.

Servicing our
debt requires a significant amount of cash. Our ability to generate sufficient cash to service our debt depends on many factors beyond
our control.

Our ability to make
payments on and to refinance our debt, to fund planned capital expenditures and to maintain sufficient working capital depends on our
ability to generate cash in the future. This, to a certain extent, is subject to general economic, financial, competitive, legislative,
regulatory and other factors that are beyond our control. We cannot assure you that our business will generate sufficient cash flow from
operations or from other sources in an amount sufficient to enable us to service our debt or to fund our other liquidity needs. If our
cash flow and capital resources are insufficient to allow us to make scheduled payments on our debt, we may need to seek additional capital
or restructure or refinance all or a portion of our debt on or before the maturity thereof, any of which could have a material adverse
effect on our business, financial condition or results of operations. We cannot assure you that we will be able to refinance any of our
debt on commercially reasonable terms or at all, or that the terms of that debt will allow any of the above alternative measures or that
these measures would satisfy our scheduled debt service obligations. If we are unable to generate sufficient cash flow to repay or refinance
our debt on favorable terms, it could significantly adversely affect our financial condition and the value of our outstanding debt. Our
ability to restructure or refinance our debt will depend on the condition of the capital markets and our financial condition. Any refinancing
of our debt could be at higher interest rates and may require us to comply with more onerous covenants, which could further restrict
our business operations. There can be no assurance that we will be able to obtain any financing when needed.

Covenant restrictions