Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 4

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 4
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, we
formed IPSIPay Express. This entity was formed as a joint venture with OpenPath, Inc. and EfinityPay, LLC to develop and market a
proprietary consumer to merchant real-time payment platform initially focused on the fast-growing online gaming and entertainment sectors.

IPSIPay Express was
formed by the Members with the initial business purposes of providing credit card processing solutions and also a proprietary solution
for real time bank-to-bank payment transactions in a manner that provides seamless and frictionless consumer and merchant experiences,
with an initial focus on merchants operating in gaming and entertainment sectors.

On December 31, 2024,
we fully impaired our investment in IPSIPay Express due to the length of time it has taken since inception to establish a revenue stream.
The expected period to generate any revenues remains uncertain and we are unable to justify the carrying value of the joint venture at
this time.

5

Government and Environmental Regulation
and Laws

We act as a facilitator
between consumers and finance product providers, and therefore operate in a highly regulated industry. While we do not believe that our
core business as a facilitator presently is subject to significant government regulation our finance product providers are subject to
a variety of regulations aimed at preventing money laundering and financing criminal activity and terrorism, financial services regulations,
payment services regulations, consumer protection laws, currency control regulations, advertising laws and privacy and data protection
laws and therefore may expect to experience periodic investigations by various regulatory authorities in connection with the same, which
may sometimes result in monetary or other sanctions being imposed upon them. Many of these laws and regulations are constantly evolving
and are often unclear and inconsistent with other applicable laws and regulations, making compliance challenging, and may indirectly
increase our operating costs and legal risks (or directly should it be determined that our business model is or becomes subject to more
extensive regulation). Any violations of any of the foregoing or similar laws, rules or regulations could adversely affect our ability
to maintain IPSIPay Express, which could have a material adverse effect on our operations and financial condition.

Human Capital/Employees

As of December 31, 2024,
we had 3 full time employees, including our Chief Executive Officer and our President and Chief Financial Officer and 1 part-time
consultant. None of our employees are represented by a labor union, and we consider our employee relations to be good.

Our Corporate History
and Background

On May 12, 2016, the
Company (originally formed on September