Company: VPLM
Filing Date: 2025-12-23
Form Type: 10-K
Source: 0001493152-25-029094
Chunk: 159

Company: Voip-pal.com Inc
Filing Date: 2025-12-23
Form: 10-K
Item: Item 2
Chunk 159
---
 option pricing models. The changes in fair value of these
instruments are recorded in income or expense.

Preferred
Shares

The
preferred shares carry super-voting rights with each shared issued having the equivalent of 1,550 votes. Preferred shares issued by the
Company are not convertible into or exchangeable for common shares and they are not exchangeable for equity nor redeemable for cash.
The preferred shares do not pay dividends. The preferred shares cannot be sold, exchanged or transferred to another party.

Stock-Based
Compensation

The
Company recognizes compensation expense for all stock-based payments made to employees, directors and others based on the estimated fair
values of its common stock on the date of issuance.

The
Company determines the fair value of the stock-based compensation payments granted as either the fair value of the consideration received
or the fair value of the equity instruments issued, whichever is more reliably measurable. If the fair value of the equity 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