Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 18

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 net loss as reported on the Company’s statements of operations. The CODM uses
net loss as the measure of profit or loss to allocate resources and assess performance.

Since the Company operates as one reportable
segment, all financial information required by “Segment Reporting” can be found in the accompanying financial statements.
The CODM does not review segment assets at a level other than that presented in the Company’s balance sheets. There are no intra-entity
sales or 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 June 30, 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 June 30, 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 June 30, 2025 and 2024.

10

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial