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

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 25
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 business model or our business processes, and we do not currently intend to obtain any such patents in the United States or elsewhere.

We may also be subject
to costly litigation in the event our services or the technology that we license are claimed to infringe, misappropriate or otherwise
violate any third party’s intellectual property or proprietary rights. Such claims could include patent infringement, copyright
infringement, trademark infringement, trade secret misappropriation or breach of licenses. We may not be able to successfully defend
against such claims, which may result in a limitation on our ability to use the intellectual property subject to these claims and might
require us to redesign affected services, enter into costly settlement or license agreements, pay costly damage awards, or face a temporary
or permanent injunction prohibiting us from marketing or selling certain of our services. In such circumstances, if we cannot or do not
license the infringed technology on reasonable terms or substitute similar technology from another source, our revenue and earnings could
be adversely impacted. Additionally, in recent years, non-practicing entities have been acquiring patents, making claims of patent infringement
and attempting to extract settlements from companies in our industry. Even if we believe that such claims are without merit and successfully
defend these claims, defending against such claims is time consuming and expensive and could result in the diversion of the time and
attention of our management and employees.

We may use open-source software in
a manner that could be harmful to our business.

We use open-source software
in connection with our technology and services. The original developers of the open source code provide no warranties on such code. Moreover,
some open source software licenses require users who distribute open source software as part of their software to publicly disclose all
or part of the source code to such software and/or make available any derivative works of the open source code on unfavorable terms or
at no cost. The use of such open source code may ultimately require us to replace certain code used in our products, pay a royalty to
use some open source code or discontinue certain products. Any of the above requirements could be harmful to our business, financial
condition and operations.

We do not have and may be unable to
obtain sufficient insurance to protect ourselves from business risks.

While we hold certain
mandatory types of insurance policies, we do not currently maintain insurance coverage for business interruption, property damage or
loss of key management personnel, as we have been unable to obtain these on commercially acceptable terms. We do not hold insurance policies
to