Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 71

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 71
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 our CEO concluded that our disclosure controls and procedures as of June 30, 2025 are not effective due to a lack of
written policies and procedures to address all material transactions and developments impacting our financial statements.

Changes in Internal Control over Financial
Reporting

There has been no change in
our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during our
fiscal quarter ended June 30, 2025.

Our management is committed
to improving our controls and procedures by, among other matters, continuing to consider and adopt appropriate policies and procedures
to address all material transactions and developments impacting our financial statements. However, our management does not expect that
our disclosure controls and procedures and our internal control processes, even if improved, will prevent all error and all fraud. A control
system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control
system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of
controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls
can provide absolute assurance that all control issues and instances of error or fraud, if any, within our Company have been detected.
These inherent limitations include the realities that judgments in decision-making can be faulty, and that the breakdowns can occur because
of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or
more people, or by management override of the control. The design of any system of controls also is based in part upon certain assumptions
about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under
all potential future conditions. Over time, controls may become inadequate because of changes in conditions, or the degree of compliance
with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements
due to error or fraud may occur and may not be detected. However, these inherent limitations are known features of the financial reporting
process. Therefore, it is possible to design into the process safeguards to reduce, though not eliminate, this risk.

38

Part II. Other Information

Item 1. Legal Proceedings.

From time to time, we may
become involved in various lawsuits