Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 439

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 439
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 on Accounting and Financial Disclosures

None.

Item 9A. Controls
and Procedures

Disclosure Controls
and Procedures

We have adopted and maintain
disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the
reports filed under the Exchange Act, such as this Annual Report, is collected, recorded, processed, summarized and reported within the
time periods specified in the rules of the SEC. Our disclosure controls and procedures are also designed to ensure that such information
is accumulated and communicated to management to allow timely decisions regarding required disclosure. As required under Exchange Act,
Rule 13a-15, our management, including our Chief Executive Officer (who is our Principal Executive Officer and our President and Chief
Financial Officer (who is our Principal Financial Officer), after evaluating the effectiveness of disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this Annual Report have concluded that our
disclosure controls are not effective due to a lack of written policies and procedures to address all material transactions and developments
impacting the financial statements.

Management’s
Annual Report on Internal Control over Financial Reporting

Our management is also
responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Exchange Act Rule 13a-15.
Internal control over financial reporting is defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act as a process designed to provide
reasonable assurance to our management and Board of Directors regarding the preparation and fair presentation of published financial statements.
Management conducted an assessment of our internal control over financial reporting as of December 31, 2024 based on the framework and
criteria established by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control-Integrated Framework
2013 (“COSO”). The COSO framework requires rigid adherence to control principles that require sufficient and adequately trained
personnel to operate the control system. Our management has concluded that our internal control over financial reporting continued to
be ineffective as of December 31, 2024 as a result of continuing insufficient segregation of duties and oversight of work performed in
the finance and accounting function due to limited personnel with the appropriate skill sets. During 2025, our management plans to continue
to address these matters with a view towards remediating the weaknesses.

Our management, including
our Chief Executive Officer and President and Chief Financial