Company: VPLM
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010694
Chunk: 46

Company: Voip-pal.com Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 46
---
 to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.

23

Change in ICFR

In connection with the audit of our financials for
the year ended September 30, 2024, the Company’s auditors noted material weaknesses and made certain recommendations to management
regarding material weaknesses related to 1. lack of proper controls over financial reporting of unusual and complex transactions; 2. no
formal codes of conduct (the “2024 Material Weaknesses”).

In connection with the 2024 Material Weaknesses, the
Company has allocated resources to its remediation plan and implemented additional controls this year.

As of March 31, 2025, management believes that we
are making progress to remediate the 2024 Material Weaknesses relating to its lack of proper controls over financial reporting of unusual
and complex transactions. However, other than as described in the preceding paragraph, there were no changes in our internal control over
financial reporting during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal
control over financial reporting.

Evaluation of Effectiveness of ICFR

The Company’s management (with the participation
of the CEO and the CFO) conducted an evaluation of the effectiveness of the Company’s internal control over financial reporting
as of March 31, 2025. In making this assessment, management used the criteria established in Internal Control-Integrated Framework issued
by the Committee of Sponsoring Organizations of the Treadway Commission, or COSO. The COSO framework summarizes each of the components
of a company’s internal control system, including (i) the control environment, (ii) risk assessment, (iii) control activities, (iv)
information and communication, and (v) monitoring. In management’s assessment of the effectiveness of internal control over financial
reporting (as defined in Exchange Act Rule 13a-15(f)) as required by Exchange Act Rule 13a-15(c), our management concluded as of the end
of the period covered by this Annual Report on Form 10-K that our internal control over financial reporting has not been effective.

As defined by Auditing Standard No. 5, “An Audit
of Internal Control Over Financial Reporting that is Integrated with an Audit of Financial Statements and Related Independence Rule and
Conforming Amendments,” established by the Public Company Accounting Oversight Board (“PCAOB”), a material