Company: IPSI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044146
Chunk: 156

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 156
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 impacting our financial statements. However, our management does not expect that
our disclosure controls and procedures and our internal control processes, even if improved, will prevent all error and all fraud. A control
system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control
system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of
controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls
can provide absolute assurance that all control issues and instances of error or fraud, if any, within our Company have been detected.
These inherent limitations include the realities that judgments in decision-making can be faulty, and that the breakdowns can occur because
of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or
more people, or by management override of the control. The design of any system of controls also is based in part upon certain assumptions
about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under
all potential future conditions. Over time, controls may become inadequate because of changes in conditions, or the degree of compliance
with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements
due to error or fraud may occur and may not be detected. However, these inherent limitations are known features of the financial reporting
process. Therefore, it is possible to design into the process safeguards to reduce, though not eliminate, this risk.

36

Part II. Other Information

Item 1. Legal Proceedings.

From time to time, we may
become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. Below is a description of outstanding
pending litigation matters. As also noted previously, litigation is subject to inherent uncertainties and an adverse result in the below
described or other matters may arise from time to time that may harm our business. Other than as set forth below, we are not presently
a party to any legal proceedings that, if determined adversely to us, would individually or taken together have a material adverse effect
on our business, operating results, financial condition or cash flows.

Voloshin, et al., v. Innovative Payment Solutions, Inc., et al.

On October 20, 2021, a complaint
was filed