Company: VPLM
Filing Date: 2025-12-23
Form Type: 10-K
Source: 0001493152-25-029094
Chunk: 217

Company: Voip-pal.com Inc
Filing Date: 2025-12-23
Form: 10-K
Item: Item 3
Chunk 217
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United States of America (“US GAAP”).

    22

VOIP-PAL.COM
INC.

Notes
to the Consolidated Financial Statements

(Expressed
in United States Dollars)

September
30, 2025

NOTE
3. SIGNIFICANT ACCOUNTING POLICIES

Principles
of Consolidation

These
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 September 30, 2025, Digifonica had no
activities.

Use
of Estimates

The
preparation of these 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
and Restricted Cash

Cash
consists of cash on hand, cash held in trust, and monies held in checking and savings accounts. The Company had $1,060,499 in cash on
September 30, 2025 (September 30, 2024 - $2,369,413). The Company also had $40,250 restricted cash on September 30, 2025 (2024 - $40,250)
which is a collateral GIC held for the Company’s corporate credit card.

Intangible
Assets

Intangible
assets, consisting of VoIP communication patent intellectual properties (IP) are recorded at cost and amortized over the assets estimated
life on a straight-line basis. Management considers factors such as remaining life of the patents, technological usefulness and other
factors in estimating the life of the assets.

The
carrying value of intangible assets are reviewed for impairment by management of the Company at least annually or upon the occurrence
of an event which may indicate that the carrying amount may be less than its fair value. If impaired, the Company will write- down such
impairment. In addition, the useful life of the intangible assets will be evaluated by management at least annually or upon the