Company: VPLM
Filing Date: 2025-12-23
Form Type: 10-K
Source: 0001493152-25-029094
Chunk: 275

Company: Voip-pal.com Inc
Filing Date: 2025-12-23
Form: 10-K
Item: Item 5
Chunk 275
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 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.

Loss
per Common Share

Basic
loss per share is calculated using the weighted-average number of common shares outstanding during each period. Diluted income per share
includes potentially dilutive securities such as outstanding options and warrants outstanding during each period. To calculate diluted
loss per share, the Company uses the treasury stock method and the if-converted method.

For
the year ended September 30, 2025 and the year ended September 30, 2024, there were no potentially dilutive securities included in the
calculation of weighted-average common shares outstanding.

Derivatives

We
account for derivatives pursuant to ASC 815, Accounting for Derivative Instruments and Hedging Activities. All derivative instruments
are recognized in the consolidated financial statements and measured at fair value regardless of the purpose or intent for holding them.
We determine fair value of warrants and other option-type instruments based on option pricing models. The changes in fair value of these
instruments are recorded in income or expense.

Preferred
Shares

The
preferred shares carry super-voting rights with each shared issued having the equivalent of 1,550 votes. Preferred shares issued by the
Company are not convertible into or exchangeable for common shares and they are not exchangeable for equity nor redeemable for cash.
The preferred shares do not pay dividends. The preferred shares cannot be sold, exchanged or transferred to another party.

Stock-Based
Compensation

The
Company recognizes compensation expense for all stock-based payments made to employees, directors and others based on the estimated fair
values of its common stock on the date of issuance.

The
Company determines the fair value of the stock-based compensation payments granted as either the fair value of the consideration received
or the fair value of the equity instruments issued, whichever is more reliably measurable. If the fair value of the equity instruments
issued is used, it is measured using