Company: VPLM
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010694
Chunk: 38

Company: Voip-pal.com Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 October 1, 2024, a share certificate of 30,000,000 restricted common shares was issued to the Plaintiff.

Performance Bonus Payable

In 2016, the board of directors authorized the Company
to provide a performance bonus (the “Performance Bonus”) of up to 3% of the capital stock of the Company by way of the issuance
of Common shares from its treasury to an as yet undetermined group of related and non-related parties upon the occurrence of a bonusable
event, defined as the successful completion of a sale of the Company or substantially all its assets, or a major licensing transaction.
In order to provide maximum flexibility to the Company with respect to determining the level of Performance Bonus payable, and who may
qualify to receive a pro-rata share of such a Performance Bonus, the Company authorized full discretion to the Board in making such determinations.

In 2019, the board of directors authorized the increase
of the Performance Bonus to up to 10% of the capital stock of the Company. Concurrently, the directors authorized 66.67% of the Performance
Bonus to be issued in an advance payment of an aggregate 127,000,000 common shares (“Bonus Shares”) to a group of related
and non-related parties, which included members of management, a director and several consultants. 30,000,000 of the Bonus Shares are
restricted from trading under Rule 144 and subject to a voluntary lock-up agreement under which they cannot be traded, pledged, hypothecated,
transferred or sold by the holder until such time as the Company has met the requirements of the bonusable event as described above.

As at March 31, 2025 and September 30, 2024, no bonusable
event had occurred and there was no Performance Bonus payable.

19

    Item 2.
    Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s
Discussion and Analysis of Financial Condition and Results of Operations

The following management’s discussion and analysis
(MD&A) should be read in conjunction with our interim condensed consolidated financial statements for the six months ended March 31,
2025 and notes thereto appearing elsewhere in this report, and our audited consolidated financial statements for the year ended September
30, 2024 and notes thereto.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION

This MD&A for the period ending March 31, 2025
contains forward-looking statements within the meaning of