Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 136

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 136
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 280) for the annual reporting period ended December 31, 2024. The most significant provision
was for the Company to disclose significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”),
who is the CEO. All expense categories on the Statements of Operations are significant and there are no other significant segment expenses
that would require disclosure. The Company’s CODM, reviews financial information presented on an aggregated basis for the purpose
of making operating decisions, allocating resources, assessing financial performance and making strategic decisions related to headcount
and capital expenditures. The CODM regularly reviews 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 September 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 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