Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 193

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 193
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 and prospects could be adversely affected. Furthermore, we may be unable to recover the costs we have
incurred in developing new services. Our development efforts could result in increased costs and we could also experience a loss in business
that could reduce our earnings or could cause a loss of revenue if promised new services are not timely delivered to our clients, we
are not able to compete effectively with our competitors’ or do not perform as anticipated. If we are unable to develop, adapt
to or access technological changes or evolving industry standards on a timely and cost effective basis, our business, financial condition
and results of operations could be materially adversely affected.

Our systems and
our third party providers’ systems may fail due to factors beyond our control, which could interrupt our service, cause us to lose
business and increase our costs.

We depend on the efficient
and uninterrupted operation of numerous systems, including our computer systems, software and telecommunications networks, as well as
the data centers that we lease from third parties. Our systems and operations, or those of our third party providers, could be exposed
to damage or interruption from, among other things, fire, flood, natural disaster, power loss, telecommunications failure, vendor failure,
unauthorized entry, improper operation and computer viruses. Substantial property and equipment loss, and disruption in operations, as
well as any defects in our systems or those of third parties or other difficulties could expose us to liability and materially adversely
impact our business, financial condition and results of operations. In addition, any outage or disruptive efforts to our data center
would result in the failure of our computers to operate and would, if for an extensive period, adversely impact our reputation, brand
and future prospects.

Unauthorized disclosure
of data, whether through cybersecurity breaches, computer viruses or otherwise, could expose us to liability, protracted and costly litigation
and damage our reputation.

We store and/or transmit
sensitive data, and we have ultimate liability to our consumers for our failure to protect this data. If breaches occur our encryption
of data and other protective measures may not prevent unauthorized disclosure of data. Unauthorized disclosure of data or a cybersecurity
breach could harm our reputation and deter clients from using electronic payments generally, increase our operating expenses in order
to correct the breaches or failures, expose us to uninsured liability, increase our risk of regulatory scrutiny, subject us to lawsuits,
result in the imposition of material penalties and fines by state authorities and otherwise materially adversely affect our business,
financial condition and results of operations.

Customer complaints