Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 137

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 137
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 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 September 30, 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, realized and unrealized, are recognized
in other income (expense), net. Non-marketable equity securities that have been remeasured during the period are classified within Level
3 in the fair value hierarchy because the Company estimates the value based on valuation methods using the observable transaction price
at the transaction date and other unobservable inputs including volatility, rights, and obligations of the securities the Company holds.
The cost method is used when the Company has a passive, long-term investment that doesn’t result in influence over the Company.
The cost method is used when the investment results in an ownership stake of less than 20%, and there is no substantial influence.
Under the cost method, the stock purchased is recorded on the balance sheet as a non-current asset at the historical acquisition/purchase
price, and is not modified unless shares are sold, additional shares are purchased or there is evidence of the fair market value of the
investment declining below carrying value. Any dividends received are recorded as income.

k)Plant and Equipment

Plant and equipment is stated at cost,
less accumulated depreciation. Plant and equipment with costs greater than $1,000 are capitalized and depreciated. Depreciation is
computed using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of the assets are
as follows:

  Description   Estimated Useful Life   Computer equipment    3 years           Office equipment