Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 19

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 19
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 which they are enforced has had and could in the future have an adverse effect on our business, financial condition, results of operations,
and cash flows.

Further, any determination
that our partners have violated laws and regulations could seriously damage our reputation and brands, resulting in diminished revenue
and profit and increased operating costs. In some cases, we could be liable for the failure of our partners to comply with laws which
also could have an adverse effect on our business, financial condition, results of operations, and cash flows. The regulations implementing
the remittance provisions of the Dodd-Frank Act also impose responsibility on us for any related compliance failures of our partners.

The requirements under
the U.S. Dodd-Frank Act, the European Revised Payment Services Directive and similar legislation enacted or proposed in other countries
have resulted and will likely continue to result in increased compliance costs, and in the event we or our agents are unable to comply,
could have an adverse impact on our business, financial condition, results of operations, and cash flows. Additional countries may adopt
similar legislation.

We may have difficulty
managing our growth, which may divert resources and limit our ability to successfully expand our operations.

Our implementation of
our business plan and current or future strategic initiatives will place significant demands on our operations and management. Our future
success will depend on the ability of our officers and other key employees to continue to implement and improve our operational, credit,
financial, management and other internal risk controls and processes, along with our reporting systems and procedures, as the number
and geographical scope of our customer and vendor relationships continue to expand. We may be unable to implement improvements to our
management information and control systems and control procedures and processes in an efficient or timely manner, and we may discover
additional deficiencies in existing systems and controls. In particular, our controls and procedures must be able to accommodate our
expected increase in revenue. Our growth strategy may require us to incur additional expenditures to expand our administrative and operational
infrastructure. If we are unable to manage future expansion in our operations, we may experience compliance and operational problems,
have to slow the pace of growth or have to incur additional expenditures beyond current projections to support such growth, any one of
which could adversely affect our business and results of operations. We may be unable to increase the volume of sales at acceptable risk
levels, expand our customer base and manage the costs and implementation risks associated with our growth strategy. We also cannot provide
you with any assurance that our further expansion will be profitable, that we