Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 184

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 184
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, paying dividends and making investments;

    ●
    create liens;

    ●
    sell or otherwise dispose of assets; and

    ●
    enter into transactions with affiliates.

In addition, the notes
contain price protection anti-dilution provisions that will discourage financing at prices below the conversion price of the notes and
will result in a decrease in the conversion price of the notes if we should issue securities below such price.

9

We have identified
material weaknesses in our internal controls, and we cannot provide assurances that these weaknesses will be effectively remediated or
that additional material weaknesses will not occur in the future.

Our management is responsible
for establishing and maintaining adequate internal control over our financial reporting, as defined in Rule 13a- 15(f) under the Exchange
Act. In connection with our audited financial statements for the year ended December 31, 2024, we identified material weaknesses in our
internal controls which included (i) insufficient segregation of duties and oversight of work performed in our accounting and finance
function due to limited personnel with the appropriate skill sets and (ii) lack of written policies and procedures to address all material
transactions and developments impacting our financial statements. However, given the small size of our company and the current state
of our business, we are faced with the risk that we may not always be able to detect errors or omissions in our financial reporting and
we face internal control weaknesses in the future. If we fail to comply with the rules under Sarbanes-Oxley related to disclosure controls
and procedures in the future, or, if we experience material weaknesses and other deficiencies in our internal control and accounting
procedures and disclosure controls and procedures, our stock price could decline significantly and raising capital could be more difficult.
If new material weaknesses or significant deficiencies are discovered or if we otherwise fail to address the adequacy of our internal
control and disclosure controls and procedures from time to time, our business may be harmed. Moreover, effective internal controls are
necessary for us to produce reliable financial reports and are important to helping prevent financial fraud. If we cannot provide reliable
financial reports or prevent fraud, our business and operating results could be harmed, investors could lose confidence in our reported
financial information, and the trading price of our securities could drop significantly.

Risks Related to
Our Business

The payment services
industry is highly competitive, and many of our competitors are larger and have greater financial and other resources.

The payment services
industry is highly competitive, and our continued