Company: IPSI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076595
Chunk: 19

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 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   10 years 

The cost of repairs and maintenance
is expensed as incurred. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts,
and any resulting gains or losses are included in income in the year of disposition.

l)Long-Term
Assets

Assets are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be
held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated
by the asset