Voip-pal.com Inc SEC 10-K Report

VoIP-Pal.com Inc., a Nevada-based company specializing in Voice-over-Internet Protocol (VoIP) technologies, has released its annual 10-K report for the fiscal year ending September 30, 2024. The report provides a comprehensive overview of the company's financial performance, business operations, strategic initiatives, and the challenges it faces in the competitive VoIP market.

Financial Highlights

• Revenue: $0 million. The company reported no revenues for the fiscal years ending September 30, 2024, and 2023.
• Net Loss: $10.17 million. VoIP-Pal.com Inc. reported a net loss of $10,172,194 for the year ended September 30, 2024, a 56% decrease compared to the previous year. This reduction was primarily due to decreased stock-based compensation and lower legal and professional fees.
• Basic and Diluted Loss Per Common Share: $0.00. This reflects the net loss per share for the year ended September 30, 2024.

Business Highlights

• Company Overview: VoIP-Pal.com Inc. focuses on developing VoIP technologies and has transitioned to become a VoIP re-seller and provider of a proprietary billing platform and anti-virus applications for smartphones.
• Patent Portfolio: The company owns a comprehensive portfolio of issued and pending patents designed for the broadband VoIP market. These patents cover technologies such as communication classification and routing, lawful intercept, enhanced emergency calling support, mobile gateways, uninterrupted transmission during endpoint changes, and metering and billing.
• Litigation Activities: VoIP-Pal is actively pursuing patent infringement lawsuits against several Fortune 500 companies, alleging unauthorized use of its patented technologies. The company is also involved in antitrust lawsuits, both individually and as a lead plaintiff in a class action, against major companies for practices deemed restrictive to fair competition.
• Operational Focus: The company’s operations are centered around monetizing, selling, and licensing its VoIP patents, including pursuing legal actions to protect its intellectual property rights.
• Employee Structure: VoIP-Pal operates with one full-time employee and relies on consultants and contractors for additional services.
• Future Outlook: As an emerging growth company under the JOBS Act, VoIP-Pal benefits from reduced reporting requirements, which it plans to leverage. The company aims to continue its focus on patent monetization and legal actions to protect its intellectual property.

Strategic Initiatives

• Monetizing VoIP Patents: VoIP-Pal.com Inc. has been focusing on monetizing its VoIP patents through licensing and sales, which is a core part of its strategic initiatives. The company is also involved in ongoing patent litigation, crucial for protecting its intellectual property and potential revenue streams.
• Incentivizing Personnel: The company has been issuing stock options and warrants to incentivize and retain key personnel and consultants, aligning with its strategic goals to enhance operational capabilities.
• Capital Management: The company primarily finances its operations through private placements of common stock, settling outstanding debts, and the exercise of warrants. During the fiscal year, VoIP-Pal.com Inc. issued 551,974,976 common shares for cash proceeds of $2,759,875 and 5,000,000 shares for services. The company also issued 137,091,089 warrants as part of its anti-dilution clause and stock-based compensation strategy. As of September 30, 2024, the company had working capital of $2,158,351 and cash of $2,369,413, with no financing or interest costs reported for the year.
• Future Outlook: VoIP-Pal.com Inc. anticipates the need for additional capital to fund operations over the next 12 months, given its net loss and ongoing litigation expenses. The company plans to continue raising capital through private placements and the exercise of warrants. It also aims to resolve ongoing litigation to secure its intellectual property rights, which is expected to impact its ability to generate future revenues. The company remains focused on its strategy to monetize its patent suite, which is critical for its long-term sustainability.

Challenges and Risks

• Patent Litigation Risks: VoIP-Pal.com Inc. is primarily focused on monetizing its patent portfolio, which exposes the company to significant operational risks related to patent litigation and enforcement. The company is actively pursuing patent infringement lawsuits against several Fortune 500 companies, which could result in substantial legal expenses and uncertain outcomes.
• Antitrust Lawsuits: The company is involved in antitrust lawsuits, which could further complicate its legal landscape and financial stability.
• Financial Challenges: The company reported a significant decrease in general and administrative expenses, primarily due to reductions in officer and director fees and professional services. Despite this, the company continues to face financial challenges, with a net loss of $10,172,194 for the year ended September 30, 2024. The company's liquidity is heavily dependent on raising capital through private placements and settling outstanding debts, which may not be sustainable in the long term.
• Accumulated Deficit: The company has an accumulated deficit of $103,357,782, indicating ongoing financial strain. The need for additional capital to fund operations over the next 12 months is critical, and there is no assurance that such capital will be available on favorable terms.
• Market Risks: The company's business model, heavily reliant on patent litigation, exposes it to market risks associated with changes in the legal and regulatory environment, which could affect the enforceability and value of its patents.

SEC Filing: Voip-pal.com Inc [ VPLM ] - 10-K - Dec. 26, 2024