Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 978

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 978
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 ended December 31, 2024, management evaluated the risks described in Note
2(f) above on the Company’s business and its future liquidity for the next twelve months from the date of issuance of these financial
statements.

The
accompanying consolidated financial statements for the period ended December 31, 2024
have been prepared assuming the Company will continue as a going concern, but the ability of the Company to continue as a going
concern is dependent on the Company obtaining adequate capital to fund operating losses until it establishes a revenue stream and
becomes profitable. Management’s plans to continue as a going concern include raising additional capital through sales of
equity securities and borrowing. However, management cannot provide any assurances that the Company will be successful in
accomplishing any of its plans. If the Company is not able to obtain the necessary additional financing on a timely basis, the
Company will be required to delay, and reduce the scope of the Company’s development and operations. Continuing as a going
concern is dependent upon its ability to successfully secure other sources of financing and attain profitable operations. The
accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to
continue as a going concern.

The Company has determined
that there is substantial doubt about their ability to continue as a going concern.

4DISPOSAL OF INVESTMENT IN
FRICTIONLESS AND BEYOND FINTECH

On
May 12, 2023, the Company entered into the May 2023 Frictionless Agreement to unwind the equity ownership stakes that the Company
and Frictionless have in each other and in Beyond Fintech. Pursuant to the May 2023 Frictionless Agreement: (i) the Company assigned to
Frictionless all common stock of Frictionless owned by the Company (representing a 10% ownership interest in Frictionless); (ii)
the warrant to purchase 1,000,000 shares of Common Stock previously issued by the Company to Frictionless as of December 30,
2022 was cancelled; (iii) the Company assigned to Frictionless all shares of common stock of Beyond Fintech owned by the Company (representing
a 51% ownership interest in Beyond Fintech) (the “Beyond Fintech Shares”); and (iv) the rights previously granted to
the Company to (a) acquire additional equity interests in Frictionless, (b) participate