Company: IPSI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044146
Chunk: 324

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part II, Item 1
Chunk 324
---
 Mr. Corbett were awarded costs
on appeal.

38

As expected, the plaintiff-initiated
arbitration before the American Arbitration Association (“AAA”) based on the appellate ruling. While, as the court order states,
the plaintiff may renew his challenge to the arbitration clause before the arbitrator, we believe such challenges are rare and rarely
succeed. Accordingly, we expect the dispute likely will be resolved through AAA arbitration. Management is vigorously defending the claims
and intends to continue to do so.

In mid-April 2024, the Company
and Mr. Corbett changed attorneys. The Law Offices of Jeffrey B. Neustadt replaced prior counsel. Mr. Neustadt’s office submitted
the cost bill and an attorneys’ fees motion that will be decided on September 10, 2024, by the trial court for the fees incurred
on the successful appeal. As with the Voloshin matter, we are contractually bound to proceed through arbitration and to that end completed
the process of selecting an arbitrator under the AAA rules. That appointment was made on August 7, 2024. Henceforth, the Minkovich matter
will track along the same lines as the Voloshin matter but on a smaller scale as there is only one plaintiff in the Minkovich matter as
opposed to five in the Voloshin matter. The arbitration hearing (“trial”) in the Minkovich matter was set for June 30, 2025
to July 3, 2025 at the continued “preliminary conference” held on October 7, 2024. Before the arbitration hearing, the parties
will engage in discovery and some motion work which may (1) either dispose of all or some of the case, and/or (2) result in the Minkovich
matter being sent back to the Superior Court for final determination.

We have a $22,000 deposit
on account for the arbitration of the Minkovich matter, the arbitrator has indicated that he will proceed as the deposit is expected to
be sufficient to cover all expenses of the arbitration. The arbitration summary call is scheduled for May 16, 2025 with all parties involved.
We expect a favorable outcome from the arbitration process.

Item 1A. Risk Factors.

We are a smaller reporting
company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise required under this Item.

Item 2. Unregistered Sales of Equity