Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 30

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 30
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 the operations
    of our suppliers or result in political or economic instability

These and similar market
and industry factors may seriously harm the market price of our common stock, regardless of our operating performance. Since the stock
price of our common stock has fluctuated in the past, has been recently volatile and may be volatile in the future, investors in our
common stock could incur substantial losses. In the past, following periods of volatility in the market, securities class-action litigation
has often been instituted against companies. Such litigation, if instituted against us, could result in substantial costs and diversion
of management’s attention and resources, which could materially and adversely affect our business, financial condition, results
of operations and growth prospects. There can be no guarantee that our stock price will remain at current prices or that future
sales of our common stock will not be at prices lower than those sold to investors.

17

Our investors’
ownership will likely be diluted in the 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