Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 11

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 11
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 business plan as we seek
to achieve revenues, positive cash flow and profitability. There is a material risk that we will be unable to generate sufficient revenues
to pay our expenses, and if our existing sources of cash and cash flows are insufficient to fund our activities, we will need to raise
additional funds. Additional equity or debt financing may not be available on acceptable terms, if at all, particularly in the current
economic environment. If adequate funds are not available, we may be required to delay, reduce the scope of or eliminate one or more
of our new products in development.

Until such time, if
ever, as we can generate substantial product revenues, we will be required to finance our cash needs through public or private equity
offerings, debt financings and corporate collaboration and licensing arrangements. If we raise additional funds by issuing equity securities,
our stockholders may experience dilution. Debt financing, if available, may involve agreements that include covenants limiting or restricting
our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. Any debt
financing or additional equity that we may raise may contain terms, such as liquidation and other preferences, that are not favorable
to us or our stockholders. If we raise additional funds through collaboration and licensing arrangements with third parties, it may be
necessary to relinquish valuable rights to our technologies, research programs or product candidates or grant licenses on terms that
may not be favorable to us.

If we are unable to
generate cash flow positive operations or achieve profitability, and if we are unable to raise additional funds on commercially reasonable
terms or at all, we may be required to significantly reduce or cease our operations, or our business could fail, which could result in
the loss to investors of their investment in our securities.

8

We have not generated
sufficient revenue or cash flow to pay our convertible notes, and conversion of such debt into shares of common stock, which would cause
significant dilution.

As of December 31, 2024,
we had outstanding convertible notes owed to institutional investors in the aggregate principal amount of approximately $5.02 million,
net of debt discount of $0.08 million, which has either matured or is maturing during 2025. To date, we have not generated sufficient
revenue or cash flows to pay the balances owed under these notes and provide sufficient working capital to run our business. The outstanding
principal amount of the notes is convertible at any time into shares of