Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 198

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 198
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of our common stock may be adversely affected. 

Our common stock is
deemed to be a “penny stock” if, among other things, the stock price is below $5.00 per share, it is not listed on a national
securities exchange, or it has not met certain net tangible asset or average revenue requirements. Broker-dealers who sell penny stocks
must provide purchasers of these stocks with a standardized risk-disclosure document prepared by the SEC. This risk-disclosure document
provides information about penny stocks and the nature and level of risks involved in investing in the penny-stock market. A broker must
also give a purchaser, orally or in writing, bid and offer quotations and information regarding broker and salesperson compensation,
make a written determination that the penny stock is a suitable investment for the purchaser and obtain the purchaser’s written
agreement to the purchase. Broker-dealers must also provide customers that hold penny stock in their accounts with such broker-dealer
a monthly statement containing price and market information relating to the penny stock. If a penny stock is sold to an investor in violation
of the penny stock rules, the investor may be able to cancel its purchase and get their money back.

If applicable, the penny
stock rules may make it difficult for stockholders to sell their shares of our common stock. Because of the rules and restrictions applicable
to a penny stock, there is less trading in penny stocks and the market price of our common stock may be adversely affected. Also, many
brokers choose not to participate in penny stock 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