Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 181

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 181
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 the extent of future losses and the time required to achieve profitability, if ever, cannot be predicted.

We also expect to experience
negative cash flows for the foreseeable future as we fund our operating losses. Although we believe our existing cash and cash equivalents
will be sufficient for the near term, if in the long term we do not generate significant revenues or raise additional financing in order
to achieve and maintain profitability. We may not be able to generate these revenues or achieve profitability in the future. Our failure
to achieve or maintain profitability would likely negatively impact the value of our securities and financing activities.

We have a present
need for additional funding, which raises questions about our ability to continue as a going concern. We may be unable to raise capital
when needed, which would force us to delay, reduce or eliminate our product development programs or commercialization efforts, or could
cause our business to fail.

As of December 31, 2024,
we had cash and cash equivalents of $526. We believe that based on our current operating plan, our existing cash and cash equivalents
will not be sufficient to enable us to fund our operations and our debt and other obligations. See “Management’s Discussion
and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” below. This raises questions
about our ability to continue as a going concern. Moreover, we have significant indebtedness due in the first half of 2025, and thus
we will need significant additional funds to repay our debt, fund our working capital, and fully implement our business plan as we seek
to achieve revenues, positive cash flow and profitability. There is a material risk that we will be unable to generate sufficient revenues
to pay our expenses, and if our existing sources of cash and cash flows are insufficient to fund our activities, we will need to raise
additional funds. Additional equity or debt financing may not be available on acceptable terms, if at all, particularly in the current
economic environment. If adequate funds are not available, we may be required to delay, reduce the scope of or eliminate one or more
of our new products in development.

Until such time, if
ever, as we can generate substantial product revenues, we will be required to finance our cash needs through public or private equity
offerings, debt financings and corporate collaboration and licensing arrangements. If we raise additional funds by issuing equity securities,
our stockholders may experience dilution. Debt financing, if available, may involve agreements that include covenants limiting