Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 499

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1C
Chunk 499
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Item 1C. Cybersecurity

The manner in which
we store and/or transmit sensitive data in connection with our payment processing solutions is an important part of how we operate and
plan to operate. We recognize the importance of assessing, identifying, and managing material risks associated with cybersecurity threats,
as such term is defined in Item 106(a) of Regulation S-K. These risks include, among other things: operational risks, intellectual property
theft, fraud, extortion, harm to employees and violation of data privacy or security laws.

Identifying and assessing
cybersecurity risk is integrated into our overall risk management systems and processes. Cybersecurity risks related to our business,
technical operations, privacy and compliance issues are identified through review by our internal information technology governance,
risk and compliance policies. To defend, detect and respond to cybersecurity incidents, we, among other things: may conduct proactive
privacy and cybersecurity reviews of systems and applications, audit applicable data, conduct employee training, monitor emerging laws
and regulations related to data protection and information security and implement appropriate changes.

Our risk management
program also assesses third party risks, and we perform third-party risk management to identify and mitigate risks from IPSIPay Express
and third parties like OpenPath, EfinityPay, vendors, suppliers, and other business partners associated with our use of third-party service
providers. Cybersecurity risks are evaluated when determining the selection and oversight of applicable third-party service providers
and potential fourth-party risks when handling and/or processing our employee, business or customer data.

Item 2. Properties

The Company does not
operate out of any leased or owned properties. The previous lease was terminated with effect from August 31, 2023.

Item 3. Legal Proceedings

From time to time, we
may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. Below is a description
of our outstanding pending litigation matters. Litigation is subject to inherent uncertainties and an adverse result in the below described
or other matters may arise from time to time that may harm our business. Other than as set forth below, we are not presently a party
to any legal proceedings that, if determined adversely to us, would individually or taken together have a material adverse effect on
our business, operating results, financial condition or cash flows.

Voloshin, et al.,
v. Innovative Payment Solutions, Inc., et al.

On October 20, 2021,
a complaint was filed against our Company and certain of its officers and