Company: VPLM
Filing Date: 2025-12-23
Form Type: 10-K
Source: 0001493152-25-029094
Chunk: 478

Company: Voip-pal.com Inc
Filing Date: 2025-12-23
Form: 10-K
Item: Item 8
Chunk 478
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, 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. Accounts payable and accrued liabilities are classified as other financial liabilities, and have a fair value approximating
their carrying value, due to their short-term nature.

Income
Taxes

Deferred
income taxes have been provided for temporary differences between financial statement and income tax reporting under the asset and liability
method, using expected tax rates and laws that are expected to be in effect when the differences are expected to reverse. A valuation
allowance is provided when realization is not considered more likely than not.

The
Company’s policy is to classify income tax assessments, if any, for interest expense and for penalties in general and administrative
expenses. The Company’s income tax returns are subject to examination by the IRS and corresponding states.

Loss
per Common Share

Basic
loss per share is calculated using the weighted-average number of common shares outstanding during each period. Diluted income per share
includes potentially dilutive securities such as outstanding options and warrants outstanding during each period. To calculate diluted
loss per share, the Company uses the treasury stock method and the if-converted method.

For
the year ended September 30, 2025 and the year ended September 30, 2024, there were no potentially dilutive securities included in the
calculation of weighted-average common shares outstanding.

Derivatives

We
account for derivatives pursuant to ASC 815, Accounting for Derivative Instruments and Hedging Activities. All derivative instruments
are recognized in the consolidated financial statements and measured at fair value regardless of the purpose or intent for holding them.
We determine fair value of warrants and other option-type instruments based on 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