Innovative Payment Solutions, Inc. Files 2023 Annual Report

TL;DR

<b>Innovative Payment Solutions, Inc. has filed its 2023 10-K annual report, detailing its corporate structure and filing status.</b>

AI Summary

Innovative Payment Solutions, Inc. (IPSI) filed a Annual Report (10-K) with the SEC on March 29, 2024. Innovative Payment Solutions, Inc. filed its 10-K annual report for the fiscal year ended December 31, 2023. The company is incorporated in Nevada and its principal executive offices are located in Carmel by the Sea, CA. Innovative Payment Solutions, Inc. was formerly known as QPAGOS and Asiya Pearls, Inc. The company's common stock, $0.0001 par value, is registered under Section 12(g) of the Act. The filing indicates the company is not a well-known seasoned issuer, not required to file reports under Section 13 or 15(d) for the preceding 12 months, and has been subject to filing requirements for the past 90 days.

Why It Matters

For investors and stakeholders tracking Innovative Payment Solutions, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of the company's financial performance and operational status for the fiscal year 2023, which is crucial for investors to assess its current standing. Understanding the company's history of name changes and its classification as a non-accelerated filer and smaller reporting company is important for evaluating its market position and regulatory compliance.

Risk Assessment

Risk Level: low — Innovative Payment Solutions, Inc. shows low risk based on this filing. The filing is a standard 10-K report with no immediate indicators of significant financial distress or operational issues, suggesting a low level of immediate risk based solely on this document.

Analyst Insight

Review the full 10-K filing to understand the company's financial health, business operations, and future outlook.

Key Numbers

• 20231231 — Fiscal Year End (Conformed period of report)
• 20240329 — Filing Date (Filed as of date)
• 000-55648 — Commission File Number (SEC File Number)
• 0001591913 — Central Index Key (Company data)
• 5961 — Standard Industrial Classification (SIC Code for Retail-Catalog & Mail-Order Houses)
• $0.0001 — Par Value (Common Stock par value)

Key Players & Entities

• Innovative Payment Solutions, Inc. (company) — Registrant
• QPAGOS (company) — Former company name
• Asiya Pearls, Inc. (company) — Former company name
• Nevada (jurisdiction) — State of incorporation
• Carmel by the Sea, CA (location) — Address of principal executive offices
• Common Stock, $0.0001 par value (security) — Securities registered pursuant to Section 12(g) of the Act

FAQ

Risk Factors

• Filing Requirements [low — regulatory]: The company is not a well-known seasoned issuer and is not required to file reports under Section 13 or 15(d) for the preceding 12 months, but has been subject to such requirements for the past 90 days.

Industry Context

The company operates within the retail catalog and mail-order houses industry (SIC 5961).

Regulatory Implications

The filing adheres to the requirements of the Securities Exchange Act of 1934, specifically Section 13 or 15(d) for annual reports.

What Investors Should Do

1. Analyze the financial statements within the 10-K for detailed revenue, expenses, and profitability.
2. Review the 'Risk Factors' section for potential business and financial challenges.
3. Examine the 'Management's Discussion and Analysis of Financial Condition and Results of Operations' for insights into business performance and outlook.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2024-03-29: Filing Date — Date the 10-K report was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial 10-K filing for the fiscal year ended December 31, 2023, as no prior year data is presented in this extract.

Key Financial Figures

• $0.0001 — ection 12 (g) of the Act: Common Stock, $0.0001 par value. Indicate by check mark if
• $0.42 — mmon stock reported on June 30, 2023 of $0.42 per share). This calculation excludes s
• $1,500,000 — siness in the aggregate amount of up to $1,500,000 (the "IPSI Capital Contribution"). The
• $500,000 — pital Contribution in three tranches of $500,000 (each, a "Tranche"), or such lesser amo
• $200,000 — dates and in the following amounts: (i) $200,000 of the initial Tranche was paid by the
• $300,000 b — the Company on June 21, 2023; (ii) the $300,000 balance of the initial Tranche was paid o
• $0.45 — Common Stock with an exercise price of $0.45 per share. We are still obligated to is

Filing Documents

• ea0202071-10k_innov.htm (10-K) — 1526KB
• ea020207101ex31-1_innov.htm (EX-31.1) — 10KB
• ea020207101ex31-2_innov.htm (EX-31.2) — 10KB
• ea020207101ex32-1_innov.htm (EX-32.1) — 3KB
• ea020207101ex32-2_innov.htm (EX-32.2) — 3KB
• image_001.jpg (GRAPHIC) — 5KB
• image_002.jpg (GRAPHIC) — 2KB
• 0001213900-24-027769.txt (&nbsp;) — 9759KB
• ipsi-20231231.xsd (EX-101.SCH) — 102KB
• ipsi-20231231_cal.xml (EX-101.CAL) — 63KB
• ipsi-20231231_def.xml (EX-101.DEF) — 511KB
• ipsi-20231231_lab.xml (EX-101.LAB) — 849KB
• ipsi-20231231_pre.xml (EX-101.PRE) — 511KB
• ea0202071-10k_innov_htm.xml (XML) — 1162KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 9 Item 1B. Unresolved Staff Comments 20 Item 1C. Cybersecurity 20 Item 2.

Properties

Properties 20 Item 3.

Legal Proceedings

Legal Proceedings 20 Item 4. Mine Safety Disclosures 21 PART II. 22 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 22 Item 6. Reserved 23 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 29 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data F-1 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 30 Item 9A.

Controls and Procedures

Controls and Procedures 30 Item 9B. Other Information 30 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 30 PART III. 31 Item 10. Directors, Executive Officers and Corporate Governance 31 Item 11.

Executive Compensation

Executive Compensation 34 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 38 Item 13. Certain Relationships and Related Transactions, and Director Independence 39 Item 14. Principal Accountant Fees and Services 40 PART IV. 41 Item 15. Exhibits and Financial Statement Schedules 41 Item 16. Form 10-K Summary 42

SIGNATURES

SIGNATURES 43 i PART I Unless the context requires otherwise, references in this Report to "we," "us," "our," "the Company" "IPSI" and "Innovative Payment Solutions," refer to Innovative Payment Solutions, Inc. and its subsidiaries. Unless the context requires otherwise, all share and per share numbers reflected in this Report take into account a 1-for-30 reverse stock split of our common stock which became effective on August 30, 2023. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains "forward-looking statements" (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) that reflect our current expectations and views of future events. Readers are cautioned that significant known and unknown risks, uncertainties and other important factors (including those over which we may have no control and others listed in report and in the "Risk Factors" section of this Annual Report On Form 10-K) may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "potential," "project," "continue" or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements include our ability to implement our business plan, including our ability to launch and generate revenue from our IPSIPay Express joint venture or other digital payment solutions we may seek to develop or commercialize in the future; acceptance by the marketplac

Business

Item 1. Business Company Overview We are a provider of digital payment solutions and services to businesses and consumers. Our historical core business was focused on operating and developing "e-wallets" that enabled consumers to deposit cash, convert it into a digital form, and remit the funds to Mexico and other countries quickly and securely. Our flagship e-wallet, IPSIPay , was focused on the consumer market and was fully launched in July 2022 after a soft launch in December 2021. The IPSIPay platform (which can be used both business-to-business and business-to-consumer) facilitated the transfer of funds in digital form to other countries, initially Mexico but also, India and the Philippines, primarily from hand-held devices as well as on desktop or laptop computers. Our launch plan for IPSIPay was to target lower income, migrant communities in California (notably in the agriculture industry) and expanding to other states with large migrant populations such as Texas and Florida. We not only believed that the addressable market for IPSIPay was large and growing, but that servicing this market is socially responsible. Based on our public announcement in May 2023, described below, we exited the e-wallet line of business by novating all of our rights and obligations thereunder to a third party. We may in future develop another e-wallet product. On April 28, 2023, we formed a new company called IPSIPay Express LLC ("IPSIPay Express"). This entity was formed as a Delaware limited liability company joint venture with OpenPath, Inc. ("OpenPath") and EfinityPay, LLC ("EfinityPay", and the Company, collectively with OpenPath and EfinityPay, the "Members") to develop and market a proprietary consumer to merchant real-time payment platform initially focused on the fast-growing online gaming and entertainment sectors. On June 19, 2023, we entered into a Limited Liability Company Operating Agreement (the "Operating Agreement") with OpenPath and EfinityPay to jointly

View Full Filing

View this 10-K filing on SEC EDGAR