Innovative Payment Solutions, Inc 8-K, filed May 19, 2020
Innovative Payment Solutions, Inc. (IPSI)
About this 8-K
Innovative Payment Solutions, Inc filed this 8-K on May 19, 2020, reporting on events of May 18, 2020.
Items reported
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): May 18, 2020
Innovative Payment Solutions, Inc.
(Exact name of registrant as specified in charter)
Nevada
(State or other jurisdiction of incorporation)
| 000-55648 | 33-1230229 | |
| (Commission File Number) | (IRS Employer Identification No.) |
4768 Park Granada, Suite 200
Calabasas, CA 91302
(Address of principal executive offices)
(818) 864-8404
(Registrant’s telephone number, including area code)
(Former Name and Former Address)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐ | Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act: None.
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☒ Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01. Regulation FD Disclosure
Innovative Payment Solutions, Inc. (the “Company”) will be making several investor presentations over the next couple of weeks. In connection with the presentations, the Company intends to discuss the slide presentation furnished as Exhibit 99.1 hereto, which is incorporated herein by reference.
The slide presentation attached as Exhibit 99.1 to this Report includes “safe harbor” language pursuant to the Private Securities Litigation Reform Act of 1995, as amended, indicating that certain statements contained in the slide presentation or in the press release are “forward-looking” rather than historical.
The information included in this Item 7.01 and in Exhibit 99.1 shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. The Company undertakes no duty or obligation to update or revise information included in this Report or any of the Exhibits.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
The following exhibit is being filed as part of this Report.
| Exhibit Number |
Description | |
| 99.1 | Presentation materials to be provided at Innovative Payment Solutions, Inc.’s presentations |
1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| INNOVATIVE PAYMENT SOLUTIONS, INC. | |||
| Date: May 18, 2020 | By: | /s/ William Corbett | |
| Name: | William Corbett | ||
| Title: | Chief Executive Officer | ||
2
Exhibit 99.1
Inn o vat e . Pay. Sol ve. Innovative Payment
Forward Looking Statements Innovative Payment This presentation includes forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 , as amended about our current expectations and projections about future events . In some cases forward - looking statements can be identified by terminology such as, but not limited to, “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,” “seek,” “should,” “strategy,” “target,” “will,” “would” and similar expressions or variation . The statements contained in this report that are not purely historical are forward - looking statements within the meaning of Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act of 1934 , as amended . These statements are based on the beliefs and assumptions of our management based on information currently available to management . Such forward - looking statements are subject to risks, uncertainties and other important factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward - looking statements . Factors that could cause or contribute to such differences include, but are not limited to, our ability to continue as a going concern ; our ability to raise additional working capital ; our ability to increase product demand and market acceptance for our products ; our ability to use working capital resources effectively and efficiently ; our ability to maintain our listing on the OTC - QB, our ability to attract key personnel ; our ability to maintain and add new relationships and customers and those discussed in our Annual Report on Form 10 - K for the year ended December 31 , 2019 . Furthermore, such forward - looking statements speak only as of the date of this report . Except as required by law, we undertake no obligation to update any forward - looking statements to reflect events or circumstances after the date of such statements . COVID - 19 Considerations The Company’s operations and business have experienced disruption due to the unprecedented conditions surrounding the COVID - 19 pandemic spreading throughout the United States, Mexico and the world . The Company provides an integrated network of kiosks, terminals and payment channels that enable consumers to deposit cash, convert it into a digital form and remit the funds to any merchant in its network quickly and securely . The Company has plans to roll out 50 kiosks in Southern California to provide digital payments for the unbanked and underbanked using self - service kiosks and an E wallet ecosystem . The kiosks are currently located in the Company’s warehouses in Southern California awaiting installation . Due to measures imposed by the local governments in areas affected by COVID - 19 , businesses have been suspended due to quarantine intended to contain this outbreak and many people have been forced to work from home in those areas . As a result, installation of the Company’s network of kiosks, terminals and payment channels in Southern California has been delayed, which has had an adverse impact on the Company’s business and financial condition and has hampered its ability to generate revenue and access usual sources of liquidity on reasonable terms .
$0.042 $5,750,508 136,916,858 common $995,132 Self service kiosk solutions (B2C, B2B), fintech development and integration infrastructure Payments ecosystem for unbanked and underbanked Plans for advanced B2B kiosk rev share solutions, cash remittance, e - wallets, other payment channels IPSI Snapshot Source: OTCMarkets.com as of 5/18/20 and edgar.com IPSI /20) Share Price (5/18 Market Cap Capitalization Debt (3/31/20) Innovative Payment
FDIC: 49 Million US adults underbanked Need payment options in cash Mexico: 42 million adults lack bank accounts Unbanked, Underbanked Cash Centric Reality Sources: https://www.fdic.gov/householdsurvey/ ; Reuters ; Government Protecting Consumers Laws and actions to require acceptance of cash Industry Wants to Go Cashless Digital payments reduce theft and fraud Innovative Payment
St r ategy Simple payment solutions and low cost financial services that deliver superior value for consumers and businesses . Remittance, merchant payments, lotto, mobile phone top off, micro loans, additional financial services Provide access to digital payments for the unbanked and underbanked using self service kiosks and an e - wallet ecosystem. Application of internationally proven kiosk payment model to U.S. Innovative Payment
Debt Restructure Underway Total convertible debt as of 9/30/19 $2,160,108 Converted to equity on 12/31/19 $1,330,907 Innovative Payment Balance remaining on 3/31/20 $995,132
Value of Kiosk Channel ● Traffic magnet - new customers ● Low maintenance with remote monitoring and software updates ● Easy to use and requires little or no service from customer representatives ● Low staff training and overhead FOR BUSINESS ● Additional revenue source ● No lines - 24/7 convenient access to bill payment services FOR CONSUMERS ● Easy alternative for cash dependent unbanked and online payment skeptics FOR ADD - ON SERVICES ● Ads (second screen and targeted), payday loans, check deposits, prepaid cards or even checkout services Innovative Payment Innovative Payment
IPSI’s Kiosk Platform Hardware Options Change machine Debit card reader Barcode reader Advanced peripherals Camera biometrics ● Flexible open architecture minimizes costs but allows new applications ● New features and transaction modules easily added ● Cost: $2,000 & up depending upon options Innovative Payment
IPSI Platform 9 Innovative Payment
Kiosk Network History Proven software & hardware Established vendor relationships Cost effective customer capture ● Low upfront cost ● Recurring revenue streams 2 million consumers 2019: 4.5 million transactions $17 million processed while deployed in Mexico Technology Validation Consumer Adoption 10 Innovative Payment
Linked to Mexico’s Largest Service Providers 11 • Over 150 services planned for payment through IPSI Network • Every mobile network, cable operators, home lenders, 12 out of 32 states, bank payments, micro lenders, Innovative Payment
IPSI Kiosk Services Cell phone top up 2nd Screen Advertising Current Bill pay Gaming Auto insurance/title loans In Development Payday loans Lottery International remittance Mobile app eWallet Innovative Payment
= Innovative Payment x x $900/ month per unit — potential net revenue Estimated U.S. Unit Economics Simple monetization strategy 15 T r ansactions per day $30 $/day 4% Fee % $50 Size
Innovative Payment’s US Pilot Program Rollout Gas Stations Convenience Stores Malls 50 kiosk pilot program planned for Q3, 2020 Revenue share with location partners grows IPSI footprint with low cost Retailer benefits from incremental monetization of foot traffic Innovative Payment
Sept. 2020 US Pilot 3Q20 - 50 Southern California Kiosks May 2020 June 2020 Hone marketing, customer acquisition July 2020 Refurbish existing kiosk inventory Identify locations software Launch Plans to launch with 50 Kiosks in California in 3Q20 Integrate services into Keep CapEx low Prove US Customer economics Placement Strategy April 2020 Collect data & optimize Timeline: Goals: 2021 500 kiosks, Southern California Innovative Payment
Qiwi PLC (Nasdaq: QIWI) $1B mkt cap Internationally Proven Model - QIWI 2018 Results 16 In payments processed Innovative Payment Virtual Wallets Kiosks and terminals In revenue 52M USD in profit 20.8M $16B $441M 144K Source: QIWI SEC Filings
IPSI Timetable Founded November 2013 100 kiosks July 2015 700 kiosks July 2016 2M Customers June 2018 2013 Restructuring Begins Feb 2019 2015 2014 2020 2016 2018 2019 2017 First kiosk installed July 2014 200 kiosks December 2015 Public company May 2016 Sale of Mexican Assets & Name Change Dec 2019 M e xican network expansion 2017 - 18 50 Kiosk Pilot Q3 2020 2021 Innovative Payment
Proven Leadership Board of Directors Innovative Payment Advisory Panel Joe Abrams Founder, MySpace, Software Toolworks Bill Corbett - CEO, Director Former CEO, Digital Power Lending Career investment banker with Bear Stearns, Shemano, and Paulson Group Andrey Novikov - COO, Director Former VP, global business development QIWI, Plc. (Nasdaq:QIWI) Lead role QIWI startups in China, Mexico, India, Brazil, Argentina, Chile, Peru, and others Jim Fuller Former, SVP New York Stock Exchange, SIPC Director
Summary 2 million customer, business model proven in Mexico now shifting to U.S. Proven economics for self service kiosks Solution for unbanked through merge of physical transactions with digital Cost effective model Planning to scale into greater fee capture from IPSI network expansion Innovative Payment
Thank You investors@innovatepaysolve.com (818) 864 - 4004 Innovatepaysolve.com Innovative Payment