Company: VPLM
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006777
Chunk: 6

Company: Voip-pal.com Inc
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 6
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 a going concern. Should the going concern assumption not continue to be appropriate, further adjustments to carrying values
of assets and liabilities may be required. There can be no assurance that capital will be available as necessary to meet these continued
developments and operating costs or, if the capital is available, that it will be on terms acceptable to the Company. The issuance of
additional stock by the Company may result in a significant dilution in the equity interests of its current shareholders. Obtaining commercial
loans, assuming those loans would be available, will increase the Company’s liabilities and future cash commitments. If the Company
is unable to obtain financing in the amounts and on terms deemed acceptable, its business and future success may be adversely affected.

Additionally,
as the Company’s stated objective is to monetize its patent suite through the licensing or sale of its intellectual property (“IP”),
the Company being forced to litigate or to defend its IP claims through litigation casts substantial doubt on its future to continue
as a going concern. IP litigation is generally a costly process, and in the absence of revenue the Company must raise capital to continue
its own defense and to validate its claims – in the event of a failure to defend its patent claims, either because of lack of funding,
a court ruling against the Company or because of a protracted litigation process, there can be no assurance that the Company will be
able to raise additional capital to pay for an appeals process or a lengthy trial. The outcome of any litigation process may have a significant
adverse effect on the Company’s ability to continue as a going concern.

NOTE
2. BASIS OF PRESENTATION

The
accompanying interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting
principles in the United States of America (“US GAAP”).

    7

VOIP-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

Principles
of Consolidation

These
interim condensed 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 December 31, 2024,
Digifonica had no activities.

Use
of Estimates

The
preparation of these interim