Company: VPLM
Filing Date: 2025-12-23
Form Type: 10-K
Source: 0001493152-25-029094
Chunk: 96

Company: Voip-pal.com Inc
Filing Date: 2025-12-23
Form: 10-K
Item: Item 1A
Chunk 96
---
 at fair value on
their initial recognition, except for those arising from certain related party transactions which are accounted for at the transferor’s
carrying amount or exchange amount.

Financial
assets and liabilities classified as held-for-trading are measured at fair value, with gains and losses recognized in net income. Financial
assets classified as held-to-maturity, loans and receivables, and financial liabilities other than those classified as held-for-trading
are measured at amortized cost, using the effective interest method of amortization. Financial assets classified as available-for-sale
are measured at fair value, with unrealized gains and losses being recognized as other comprehensive income until realized, or if an
unrealized loss is considered other than temporary, the unrealized loss is recorded in income.

U.S.
GAAP establishes a framework for measuring fair value under generally accepted accounting principles and enhances disclosures about fair
value measurements. Fair value is defined as the amount that would be received for an asset or paid to transfer a liability (i.e., an
exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants
on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of
unobservable inputs. The standard describes the following fair value hierarchy based on three levels of inputs, of which the first two
are considered observable and the last unobservable, that may be used to measure fair value:

    -
    Level
    1: Quoted prices in active markets for identical assets and liabilities.

    23

VOIP-PAL.COM
INC.

Notes
to the Consolidated Financial Statements

(Expressed
in United States Dollars)

September
30, 2025

NOTE
3. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

    -
    Level 2: Inputs other than
    Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices
    in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially
    the full term of the assets or liabilities.

    -
    Level 3: Unobservable inputs
    supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The
Company classifies its financial instruments as follows: Cash and restricted cash are classified as held to maturity and are measured
at amortized cost