Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 19

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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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 September 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 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