Company: VPLM
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006777
Chunk: 11

Company: Voip-pal.com Inc
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 than one measure of segment
profit or loss to be reported under certain conditions. The amendments are effective for the Company in fiscal years beginning after
December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption of the amendment is permitted,
including adoption in any interim periods for which financial statements have not been issued. The Company is currently evaluating the
guidance and its impact to the financial statements.

Certain
other new standards and interpretations have been issued but are not expected to have a material impact on the Company’s financial
statements.

    10

VOIP-PAL.COM
INC.

Notes
to the Interim Condensed Consolidated Financial Statements

(Unaudited
– prepared by management)

(Expressed
in United States Dollars)

December
31, 2024

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-Dilution Clause”) that required the Company to maintain the Seller’s
percentage ownership of the Company at 40% by issuing the Seller a proportionate number of common shares of any future issuance of the
Company’s common shares. Shares issued pursuant to the Anti-Dilution Clause were recorded as a share issuance cost within the Additional
Paid-in Capital account (Notes 8 and 10).

During
the year ended September 30, 2021, on April 12, 2021, the SPA was amended to provide that: a) from its inception until March 31, 2021,
the Company would issue warrants to purchase common shares of the Company in an equivalent amount to and instead of the required shares
being issued pursuant to the Anti-Dilution Clause; and b) the Anti-Dilution Clause would be null and void from April 1, 2021 forward.
As a