Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 28

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 28
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 transactions. Accordingly, stockholders may not always be able to resell their shares
of our common stock publicly at times and prices that they feel are appropriate.

Because we became
public by means of a reverse merger, we and our shareholders may be faced with regulatory constraints, and we may not be able to attract
the attention of brokerage firms.

Additional risks may
exist because we became public through a reverse merger. For example, our status as a former “shell company” may limit the
ability of shareholders to utilize SEC Rule 144 to sell their shares. Further, as we did not become a public company via a traditional,
underwritten initial public offering, securities analysts of brokerage firms may not provide coverage of our company since there is little
incentive for brokerage firms to recommend the purchase of our common stock. In addition, institutional investors may have limitations
on investing in reverse merger companies, which could limit the universe of potential investors for our company. No assurance can be
given that brokerage firms will want to conduct secondary offerings on our behalf in the future. In addition, if we were to attempt to
up-list the listing of our securities on a national securities exchange we will likely be subject to additional listing requirements
applicable to entities that became public through a reverse merger.

Compliance with
the reporting requirements of federal securities laws are expensive and time consuming.

We are a public reporting
company in the United States, and accordingly, subject to the information and reporting requirements of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), and other federal securities laws, and the compliance obligations of the Sarbanes-Oxley
Act of 2002. The costs (in terms of expenses and the required dedication of management’s time and attention) of preparing and filing
annual and quarterly reports and other information with the SEC and furnishing audited reports to stockholders are substantial. If we
do not provide current information about our company to market makers, they will not be able to trade our stock. Failure to comply with
the applicable securities laws could result in private or governmental legal action against us or our officers and directors, which could
have a detrimental impact on our business and financials, the value of our stock, and the ability of stockholders to resell their stock.

16

Our stock price
has been subject to significant volatility, and future volatility may result in our investors incurring substantial losses.

Our stock price has
fluctuated in the past, has been subject to volatility