Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 537

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1C
Chunk 537
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 loss as reported
on the Company’s consolidated 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 consolidated financial statements. The CODM does not review segment assets at a level other than that presented
in the Company’s consolidated 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 Consolidated Statements of Operations.

i)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 December 31, 2024 and 2023, 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 December 31, 2024 and 2023, the balances did not exceed
federally insured limits.

j)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 December
31, 2024 and 2023.

k)Investments

The
Company’s non-marketable equity securities are investments in privately held companies without readily determinable market values.
The carrying