Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 27

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 27
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 do not meet the initial listing criteria for any registered securities exchange. The
OTCQB and OTC Markets are less recognized markets than the registered securities exchanges and is often characterized by low trading
volume and significant price fluctuations. These and other factors may further impair our stockholders’ ability to sell their shares
when they want to and/or could depress our stock price. As a result, stockholders could find it difficult to dispose of or obtain accurate
quotations of the price of our securities because smaller quantities of shares could be bought and sold, transactions could be delayed
and security analyst and news coverage of our Company may be limited. If a public market for our common stock does develop, these factors
could result in lower prices and larger spreads in the bid and ask prices for our shares of common stock.

Because our common
stock may be a “penny stock,” it may be more difficult for investors to sell shares of our common stock, and the market price
of our common stock may be adversely affected. 

Our common stock is
deemed to be a “penny stock” if, among other things, the stock price is below $5.00 per share, it is not listed on a national
securities exchange, or it has not met certain net tangible asset or average revenue requirements. Broker-dealers who sell penny stocks
must provide purchasers of these stocks with a standardized risk-disclosure document prepared by the SEC. This risk-disclosure document
provides information about penny stocks and the nature and level of risks involved in investing in the penny-stock market. A broker must
also give a purchaser, orally or in writing, bid and offer quotations and information regarding broker and salesperson compensation,
make a written determination that the penny stock is a suitable investment for the purchaser and obtain the purchaser’s written
agreement to the purchase. Broker-dealers must also provide customers that hold penny stock in their accounts with such broker-dealer
a monthly statement containing price and market information relating to the penny stock. If a penny stock is sold to an investor in violation
of the penny stock rules, the investor may be able to cancel its purchase and get their money back.

If applicable, the penny
stock rules may make it difficult for stockholders to sell their shares of our common stock. Because of the rules and restrictions applicable
to a penny stock, there is less trading in penny stocks and the market price of our common stock may be adversely affected. Also, many
brokers choose not to participate in penny stock