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

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 10
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 evolving. We are subject to the risks inherent to the operation of a new business enterprise and cannot assure you that we
will be able to address these risks, and our inability to address these risks could lead to the failure of our business.

We have generated
and we will likely continue to generate, operating losses and experience negative cash flows, and it is uncertain whether we will ever
generate predictable revenues or achieve positive cash flows or profitability.

For the year ended December
31, 2024 and 2023, we incurred a net loss of approximately $4.6 million and $5.8 million, respectively. We have an accumulated deficit
of $62.8 million through December 31, 2024. We expect to continue to incur operating losses until such time, if ever, as we are able
to achieve sufficient levels of revenue from operations. There can be no assurance that we will ever generate significant sales or achieve
profitability. Accordingly, the extent of future losses and the time required to achieve profitability, if ever, cannot be predicted.

We also expect to experience
negative cash flows for the foreseeable future as we fund our operating losses. Although we believe our existing cash and cash equivalents
will be sufficient for the near term, if in the long term we do not generate significant revenues or raise additional financing in order
to achieve and maintain profitability. We may not be able to generate these revenues or achieve profitability in the future. Our failure
to achieve or maintain profitability would likely negatively impact the value of our securities and financing activities.

We have a present
need for additional funding, which raises questions about our ability to continue as a going concern. We may be unable to raise capital
when needed, which would force us to delay, reduce or eliminate our product development programs or commercialization efforts, or could
cause our business to fail.

As of December 31, 2024,
we had cash and cash equivalents of $526. We believe that based on our current operating plan, our existing cash and cash equivalents
will not be sufficient to enable us to fund our operations and our debt and other obligations. See “Management’s Discussion
and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” below. This raises questions
about our ability to continue as a going concern. Moreover, we have significant indebtedness due in the first half of 2025, and thus
we will need significant additional funds to repay our debt, fund our working capital, and fully implement our