Company: VPLM
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010694
Chunk: 12

Company: Voip-pal.com Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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audited – prepared by management)

(Expressed in United States Dollars)

March 31, 2025

    NOTE 3.
    SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

Fair Value of Financial Instruments (cont’d)

U.S. GAAP establishes a framework for measuring fair
value under generally accepted accounting principles and enhances disclosures about fair value measurements. Fair value is defined as
the amount that would be received for an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous
market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques
used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes the
following fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable,
that may be used to measure fair value:

Level 1: Quoted prices in active markets for identical
assets and liabilities.

Level 2: Inputs other than Level 1 that are observable,
either directly or indirectly, 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 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, generally for three years after they are filed.

Loss per Common Share

Basic loss per share is calculated using the weighted-average
number of common shares outstanding during each period