Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 196

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 196
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 our revenue and earnings could
be adversely impacted. Additionally, in recent years, non-practicing entities have been acquiring patents, making claims of patent infringement
and attempting to extract settlements from companies in our industry. Even if we believe that such claims are without merit and successfully
defend these claims, defending against such claims is time consuming and expensive and could result in the diversion of the time and
attention of our management and employees.

We may use open-source software in
a manner that could be harmful to our business.

We use open-source software
in connection with our technology and services. The original developers of the open source code provide no warranties on such code. Moreover,
some open source software licenses require users who distribute open source software as part of their software to publicly disclose all
or part of the source code to such software and/or make available any derivative works of the open source code on unfavorable terms or
at no cost. The use of such open source code may ultimately require us to replace certain code used in our products, pay a royalty to
use some open source code or discontinue certain products. Any of the above requirements could be harmful to our business, financial
condition and operations.

We do not have and may be unable to
obtain sufficient insurance to protect ourselves from business risks.

While we hold certain
mandatory types of insurance policies, we do not currently maintain insurance coverage for business interruption, property damage or
loss of key management personnel, as we have been unable to obtain these on commercially acceptable terms. We do not hold insurance policies
to cover for any losses resulting from counterparty and credit risks or fraudulent transactions. We also do not generally maintain separate
funds or otherwise set aside reserves for most types of business-related risks. Accordingly, our lack of insurance coverage or reserves
with respect to business-related risks may expose us to substantial losses, which could materially adversely affect our business, financial
condition and results of operations.

We rely on certain
key personnel and in a dynamic industry like ours, the ability to attract, recruit, retain and develop qualified personnel is critical
to our success and growth.

We rely substantially
on the efforts of our current senior management, including our Chief Executive Officer, William Corbett. Our business would be impeded
or harmed if we were to lose his services. In addition, our business functions at the intersection of rapidly changing technological,
social, economic and regulatory developments that require a wide-ranging set of expertise and intellectual capital. In order for us to
compete and grow