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

Company: Voip-pal.com Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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igate or to defend its IP claims through litigation casts substantial doubt on its future to continue as a going concern. IP litigation
is generally a costly process, and in the absence of revenue the Company must raise capital to continue its own defense and to validate
its claims – in the event of a failure to defend its patent claims, either because of lack of funding, a court ruling against the
Company or because of a protracted litigation process, there can be no assurance that the Company will be able to raise additional capital
to pay for an appeals process or a lengthy trial. The outcome of any litigation process may have a significant adverse effect on the Company’s
ability to continue as a going concern.

NOTE 2. BASIS OF PRESENTATION

The accompanying interim condensed consolidated financial
statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”).

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VOIP-PAL.COM INC.

Notes to the Interim Condensed Consolidated Financial
Statements

(Unaudited – prepared by management)

(Expressed in United States Dollars)

March 31, 2025

NOTE 3. SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

These interim condensed consolidated financial statements
have been prepared on a consolidated basis and include the accounts of the Company and its wholly owned subsidiary, Digifonica. All intercompany
transactions and balances have been eliminated. As at March 31, 2025, Digifonica had no activities.

Use of Estimates

The preparation of these interim condensed consolidated
financial statements required management to make estimates and assumptions that affect the reported amounts of assets and liabilities
at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could
differ from these estimates. Where estimates have been used, financial results as determined by actual events could differ from those
estimates. Some of the more significant accounting estimates used in the preparation of the company’s financial statements include
deferred income taxes, the valuation of equity-related instruments issued, and the useful life and impairment of intangible assets.

Cash

Cash consists of cash on hand, cash held in trust,
and monies held in checking and savings accounts. The Company had $1,455,194 in cash on March 31, 2025 (September 30, 2024 - $2,369,413).
The Company also had $40,250 restricted cash on March 31, 2025 (September