Company: SPPL
Filing Date: 2025-04-08
Form Type: 20-F
Source: 0001641172-25-003217
Chunk: 130

Company: SIMPPLE LTD.
Filing Date: 2025-04-08
Form: 20-F
Item: Item 18
Chunk 130
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 unrecognized tax positions will materially change over the next 12 months.

Earnings
or Loss per share

Basic
earnings or loss per share is computed by dividing net income or loss attributable to ordinary shareholders by the weighted average number
of ordinary shares outstanding during the year. Diluted earnings or loss per share reflect the potential dilution that could occur if
convertible bonds to issue ordinary shares were exercised or converted into ordinary shares.

Credit
risk

Assets
that potentially subject the Company to a significant concentration of credit risk primarily consist of cash, accounts receivable and
other current assets.

The
Company has designed their credit policies with an objective to minimize their exposure to credit risk. The Company’s accounts
receivable are short term in nature and the associated risk is minimal. The Company conducts credit evaluations on its clients and generally
does not require collateral or other security from such clients. Management reviews its receivables on a regular basis to determine if
the allowance for expected credit loss is adequate and provides allowance when necessary. The allowance is based on management’s
best estimates of specific losses on individual customer exposures, as well as the historical trends of collections. Account balances
are charged off against the allowance after all means of collection have been exhausted and the likelihood of collection is not probable.

SIMPPLE
LTD. AND ITS SUBSIDIARIES

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

2
Summary of significant accounting policies (cont’d)

Interest
rate risk

Interest
rate risk is the risk that the fair value or future cash flows of the Company’s financial instruments will fluctuate because of
changes in market interest rates. The Company’s exposure to interest rate risk arises mainly from its interest-bearing financial
liabilities. The Company periodically reviews its liabilities and monitors interest rate fluctuations to ensure that the exposure to
interest rate risk is within acceptable levels. The interest-bearing financial liabilities are carried at fixed interest rates. There
is no impact on the other comprehensive income.

Recent
Accounting Pronouncements

The
Company is an “emerging growth company” (“ EGC”) as defined in the Jumpstart Our Business Startups Act of 2012
(the “ JOBS Act “). Under the JOBS Act, EGC can delay adopting new or revised accounting standards issued subsequent to the
enactment of the JOBS Act until such time as those standards apply to private companies. The Company made the election to delay the adoption
of new or revised accounting standards.

In
December 202