Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 180

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 180
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Item 1A. Risk Factors

Risks Relating to Our Company

We have had no revenue generating operations
to date with our current IPSIPay Express business model.

We have no operating
history in our current IPSIPay Express business model, which makes it difficult to evaluate our future potential. We have yet to demonstrate
our ability to overcome the risks frequently encountered in “start-up” companies, including in the payment services industry
in the United States, and are still subject to many of the risks common to early stage companies, including the uncertainty as to our
ability to implement our business plan, market acceptance of our proposed business and services, under-capitalization, cash shortages,
limitations with respect to personnel, financing and other resources and uncertainty of our ability to generate revenues. There is therefore
a significant risk that our activities will not result in any material revenues or profit, and the likelihood of our business viability
and long-term prospects must be considered in light of the stage of our development. There can be no assurance that we will be able to
fulfill our stated business strategy and plans, or that financial, technological, market, or other limitations may force us to modify,
alter, significantly delay, or significantly impede the implementation of such plans. We have no results of operations in our current
business model for investors to use to identify historical trends. Investors should consider our prospects considering the risk, expenses
and difficulties we will encounter as an early-stage company. Our revenue and income potential is unproven and our business model is
continually evolving. We are subject to the risks inherent to the operation of a new business enterprise and cannot assure you that we
will be able to address these risks, and our inability to address these risks could lead to the failure of our business.

We have generated
and we will likely continue to generate, operating losses and experience negative cash flows, and it is uncertain whether we will ever
generate predictable revenues or achieve positive cash flows or profitability.

For the year ended December
31, 2024 and 2023, we incurred a net loss of approximately $4.6 million and $5.8 million, respectively. We have an accumulated deficit
of $62.8 million through December 31, 2024. We expect to continue to incur operating losses until such time, if ever, as we are able
to achieve sufficient levels of revenue from operations. There can be no assurance that we will ever generate significant sales or achieve
profitability. Accordingly,