Company: VPLM
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006777
Chunk: 10

Company: Voip-pal.com Inc
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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IP-PAL.COM
INC.

Notes
to the Interim Condensed Consolidated Financial Statements

(Unaudited
– prepared by management)

(Expressed
in United States Dollars)

December
31, 2024

    NOTE
    3.
    SIGNIFICANT
    ACCOUNTING POLICIES (CONT’D)

Stock-based
compensation (cont’d)

The
Company determines the fair value of the share-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 the stock price and other measurement assumptions as of the earlier of either the date at which
a commitment for performance to earn the equity instrument is reached or the date the performance is complete.

The
Company recognizes compensation expense for stock awards with service conditions on a straight-line basis over the requisite service
period, which is included in operations. Stock option expense is recognized over the option’s vesting period.

Concentrations
of Credit Risk

The
Company’s policy is to maintain cash with reputable financial institutions or in retainers with trusted vendors. The Company has
at times had cash balances at financial institutions in excess of the Federal Deposit Insurance Corporation (FDIC) Insurance Limit of
$250,000; however, has not experienced any losses to date. As of December 31, 2024, the Company’s bank operating account balances
exceeded the FDIC Insurance Limit of $250,000 by $1,543,232.

Recent
Accounting Pronouncements and Adoption

Certain
new standards, amendments and interpretations, and improvements to existing standards have been published by the FASB and United States
Securities and Exchange Commission but are not yet effective and have not been adopted early by the Company. Management anticipates that
all the relevant pronouncements will be adopted in the first reporting period following the date of application unless noted. Information
on the new standards, amendments and interpretations, and improvements to existing standards which could potentially impact the Company’s
financial statements are detailed as follows:

In
November 2023, the FASB issued ASU 2023-07, Segment Reporting – Improvements to Reportable Segments Disclosures. The amendments
enhance disclosures of significant segment expenses by requiring disclosure of significant segment expenses regularly provided to the
chief operating decision maker (CODM), extend certain annual disclosures to interim periods, and permit more