Company: VPLM
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010694
Chunk: 47

Company: Voip-pal.com Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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 weakness
is a deficiency or combination of deficiencies that results more than a remote likelihood that a material misstatement of annual or interim
financial statements will not be prevented or detected.

In connection with the assessment described above,
management identified the following control deficiencies that represent material weaknesses as of March 31, 2025:

    -
    No formal codes of conduct.

    -
    Lack of proper controls over financial reporting of unusual and complex transactions.

Based on this evaluation, our management, including
our Chief Executive Officer and Chief Financial Officer, concluded that, as of March 31, 2025, our disclosure controls and procedures
were not effective due to the material weaknesses in our internal control over financial reporting, relating to no formal codes of conduct
and the lack of proper controls over financial reporting of unusual and complex transactions.

Remediation

In response to the material weakness described above,
the Company will be implementing a remediation plan to address the material weaknesses which will include measures to enhance its documentation
of a formal code of conduct. The management is in progress to establish a regular review process with clearly defined roles and responsibilities
and implement reconciliation tools to ensure timely and accurate comparisons of financial data. Management will also implement additional
controls over financial reporting of unusual and complex transactions including but not limited to engaging financial reporting consultants
to evaluate the accounting implications of complex issues.

The Company will continue to monitor and evaluate
the effectiveness of the Company’s internal control over financial reporting on an ongoing basis and if the remediation plan is
not sufficient to eliminate the material weakness, the Company will consider what additional actions would be required.

24

PART II—OTHER INFORMATION

    Item 1.
    Legal Proceedings.

The Company is party to the following legal proceedings:

Patent Litigation

The Company is party to patent and patent-related
litigation cases as follows:

    i.
    VoIP-Pal.com Inc. v. Amazon.com, Inc. et al. Case No. 6-20-cv-00272 in the U.S. District Court, Western District of Texas.

In April 2020, the Company filed a lawsuit
in the United States District Court, Western District of Texas, against Amazon.com, Inc. and certain related entities, alleging infringement
of U.S. Patent No. 10,218,606. The case is pending.

    ii.
    VoIP-Pal.com, Inc. v. Verizon Comms., Inc. et al. Case No. 6-21-cv-672 in the