Company: IPSI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044146
Chunk: 16

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 transfers, and no significant expense categories regularly provided to the CODM beyond those disclosed in the Statements of Operations.

h)Cash and Cash Equivalents

The Company considers all highly liquid
investments with original maturities of three months or less at the time of purchase to be cash equivalents. At March 31, 2025 and December
31, 2024, respectively, the Company had no cash equivalents.

The Company minimizes credit risk associated
with cash by periodically evaluating the credit quality of its primary financial institution in the United States. The balance at times
may exceed federally insured limits. At March 31, 2025 and December 31, 2024, the balance did not exceed federally insured limits.

    i) Accounts Receivable and Allowance for Doubtful Accounts 

Accounts receivable are reported at
realizable value, net of allowances for doubtful accounts, which is estimated and recorded in the period the related revenue is recorded.
The Company has a standardized approach to estimate and review the collectability of its receivables based on a number of factors, including
the period they have been outstanding. Historical collection and payer reimbursement experience is an integral part of the estimation
process related to allowances for doubtful accounts. In addition, the Company regularly assesses the state of its billing operations in
order to identify issues, which may impact the collectability of these receivables or reserve estimates. Revisions to the allowance for
doubtful accounts estimates are recorded as an adjustment to bad debt expense. Receivables deemed uncollectible are charged against the
allowance for doubtful accounts at the time such receivables are written-off. Recoveries of receivables previously written-off are recorded
as credits to the allowance for doubtful accounts. There were no recoveries during the period ended March 31, 2025 and 2024.

10

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

2ACCOUNTING POLICIES AND ESTIMATES
(continued)

j)Investments

The Company’s non-marketable equity
securities are investments in privately held companies without readily determinable market values. The carrying value of our non-marketable
equity securities is adjusted to fair value for observable transactions for identical or similar investments of the same issuer or impairment
(referred to as the measurement alternative). All gains and losses on non-marketable equity securities