Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 201

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 201
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 future.

In the future, we will
likely issue additional authorized but previously unissued equity securities, resulting in the dilution of ownership interests of our
present stockholders. We expect to need to issue a substantial number of shares of common stock or other securities convertible into
or exercisable for common stock in connection the conversion or exercise of outstanding convertible notes and warrants as well as in
connection with hiring or retaining employees, future acquisitions, raising additional capital in the future to fund our operations,
and other business purposes. Additional shares of common stock issued by us in the future, including shares issued upon exercise of the
options, warrants and the outstanding notes, will dilute an investor’s investment in the Company.

Our Board of Directors
has historically had significant control over us and we have yet to establish committees comprised of independent directors.

Each of our board members
has significant control over all corporate issues. In addition, one of our three directors serve as a senior officer. We have not established
board committees comprised of independent members, and we do not have an audit or compensation committee comprised of independent directors.
Our three directors performed these functions, despite not all being independent directors. Thus, there is potential conflict in that
one of our directors was also engaged in management and participated in decisions concerning management compensation and audit issues
that may affect management and our performance.

We do not have
an independent compensation committee, which presents the risk that compensation and benefits paid to those executive officers who are
board members and other officers may not be commensurate with its financial performance.

A compensation committee
consisting of independent directors is a safeguard against self-dealing by company executives. Our Board of Directors is comprised of
one executive officer and two other directors, and absent an independent compensation committee currently determines the compensation
and benefits of our executive officers, administers our employee stock and benefit plans, and reviews policies relating to the compensation
and benefits of our employees. Our lack of an independent compensation committee presents the risk that our executive officers on the
board may have influence over their personal compensation and benefits levels that may not be commensurate with its financial performance.

Limitations on
director and officer liability and indemnification of our officers and directors by our articles of incorporation, as amended, and by-laws
may discourage stockholders from bringing suit against an officer or director.

Our articles of incorporation,
as amended, and bylaws provide, with certain exceptions as permitted by Nevada law, that a director or officer shall not be personally
liable to us or our