Company: VPLM
Filing Date: 2025-12-23
Form Type: 10-K
Source: 0001493152-25-029094
Chunk: 98

Company: Voip-pal.com Inc
Filing Date: 2025-12-23
Form: 10-K
Item: Item 1A
Chunk 98
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 instruments
issued is used, it is measured using the stock price and other measurement assumptions as of the earlier of either the date at which
a commitment for performance to earn the equity instrument is reached or the date the performance is complete.

The
Company recognizes compensation expense for stock awards with service conditions on a straight-line basis over the requisite service
period, which is included in operations. Stock option expense is recognized over the option’s vesting period.

    24

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)

Concentrations
of Credit Risk

The
Company’s policy is to maintain cash with reputable financial institutions or in retainers with trusted vendors. The Company has
at times had cash balances at financial institutions in excess of the Federal Deposit Insurance Corporation (FDIC) Insurance Limit of
$250,000; however, has not experienced any losses to date as a result. As of September 30, 2025, the Company’s bank operating account
balances exceeded the FDIC Insurance Limit of $250,000 by $810,499.

Recent
Accounting Pronouncements and Adoption

The
FASB issues ASUs to amend the authoritative literature in ASC. There have been a number of ASUs to date, including those above, that
amend the original text of ASC. Management believes that those issued to date either (i) provide supplemental guidance, (ii) are technical
corrections, (iii) are not applicable to us or (iv) are not expected to have a significant impact on our consolidated financial statements.

NOTE
4. PURCHASE OF DIGIFONICA

The
Company acquired Digifonica in December 2013. Pursuant to the terms in the Share Purchase Agreement (the “SPA”), the Company
acquired 100% of Digifonica from the seller, the CEO of the Company (the “Seller”), for a cash payment of $800,000 and 389,023,561
common shares of the Company. The assets acquired through the acquisition were VoIP-related patented technology, including patents for
Lawful Intercept, routing, billing and rating, mobile gateway, advanced interoperability solutions, intercepting voice over IP communications,
and uninterrupted transmission of internet protocol transmissions during endpoint changes.

The
SPA included an anti-dilution clause (the “Anti