0001580695-19-000195.txt : 20190515 0001580695-19-000195.hdr.sgml : 20190515 20190515164203 ACCESSION NUMBER: 0001580695-19-000195 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 53 CONFORMED PERIOD OF REPORT: 20190331 FILED AS OF DATE: 20190515 DATE AS OF CHANGE: 20190515 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Voip-pal.com Inc CENTRAL INDEX KEY: 0001410738 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE & TELEGRAPH APPARATUS [3661] IRS NUMBER: 980184110 STATE OF INCORPORATION: NV FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-55613 FILM NUMBER: 19829042 BUSINESS ADDRESS: STREET 1: 10900 NE 4TH STREET STREET 2: SUITE 2300 CITY: BELLEVUE STATE: WA ZIP: 98004 BUSINESS PHONE: 253-219-9512 MAIL ADDRESS: STREET 1: 10900 NE 4TH STREET STREET 2: SUITE 2300 CITY: BELLEVUE STATE: WA ZIP: 98004 10-Q 1 vplm-10q_033119.htm QUARTERLY REPORT

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

For the quarterly period ended: March 31, 2019

☐ Transition Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

Commission File Number: 000-55613

VoIP-PAL.COM INC.

(Exact name of Registrant as specified in its charter)

Nevada		980184110
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

10900 NE 4th Street, Suite 2300 Bellevue, WA, 98004
(Address of principal executive offices)

1-888-605-7780

(Registrant’s telephone number, including area code)

Check whether the Registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to the filing requirements for at least the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer ☐		Accelerated filer ☐		Non-accelerated filer ☐
Smaller reporting company ☒		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Exchange Act: None

As of May 14, 2019, there were 1,952,267,592 shares of Common Stock outstanding.

TABLE OF CONTENTS

PART I—FINANCIAL INFORMATION

Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	20
Item 4.	Controls and Procedures	20

PART II—OTHER INFORMATION

Item 1.	Legal Proceedings	21
Item 1A.	Risk Factors	22
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	22
Item 3.	Defaults Upon Senior Securities	22
Item 4.	Mine Safety Disclosures	22
Item 5.	Other Information	22
Item 6.	Exhibits	23

PART I—FINANCIAL INFORMATION

Item 1.

Financial Statements.

VOIP-PAL.com Inc.

INTERIM CONSOLIDATED BALANCE SHEETS
(Unaudited – prepared by management)

As at

(Expressed in U.S. Dollars)


	March 31, 2019			September 30, 2018

ASSETS
CURRENT

Cash	$	2,501,436		$	3,175,523
Legal retainer		360,138			323,752
Prepaid expense		20,000			—
		2,881,574			3,499,275

NON-CURRENT

Fixed assets (Note 5)		11,541			—
Intellectual VoIP communications patent properties, net (Note 6)		848,450			917,550

TOTAL ASSETS	$	3,741,565		$	4,416,825

LIABILITIES

CURRENT

Accounts payable and accrued liabilities	$	105,832		$	112,935

TOTAL LIABILITIES	$	105,832		$	112,935

STOCKHOLDERS’ equity

SHARE CAPITAL (Note 9)	$	1,428,734		$	1,276,653
ADDITIONAL PAID-IN CAPITAL (Note 9)		50,929,440			45,198,281
SHARES TO BE ISSUED (Note 9)		549,320			477,320
DEFICIT		(49,271,761	)		(42,648,364	)
		3,635,733			4,303,890

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	3,741,565		$	4,416,825

Nature and Continuance of Operations (Note 1)

Contingent Liabilities (Note 11)

The accompanying notes are an integral part of these interim consolidated financial statements

VOIP-PAL.com Inc.

INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS

(Unaudited – prepared by management)

(Expressed in U.S. Dollars)


	Three Months Ended			Three Months Ended			Six Months Ended			Six Months Ended
	March 31, 2019			March 31, 2018			March 31, 2019			March 31, 2018

EXPENSES

Amortization (Note 5 and 6)	$	34,737		$	34,550		$	69,476		$	69,100
Officers and Directors Fees (Note 7)		155,729			53,100			446,329			106,200
Legal fees (Note 6)		288,635			284,875			526,043			628,652
Office & general		77,542			98,452			151,829			187,657
Patent consulting fees		33,800			10,000			77,475			43,529
Professional fees & services (Note 6)		161,551			2,916,917			272,245			3,027,847
Stock-based compensation (Note 10 and 11)		—			2,651,050			5,080,000			2,651,050

Total expenses	$	751,994		$	6,048,944		$	6,623,397		$	6,714,035

NET LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD	$	(751,994	)	$	(6,048,944	)	$	(6,623,397	)	$	(6,714,035	)
Basic and diluted loss per common share	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

Weighted-average number of common shares outstanding:

Basic and diluted		1,950,139,362			1,337,628,236			1,819,762,248			1,251,634,056

The accompanying notes are an integral part of these interim consolidated financial statements

VOIP-PAL.com Inc.

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited – prepared by management)

(Expressed in U.S. Dollars)


	Six Months Ended			Six Months Ended
	March 31, 2019			March 31, 2018

Cash Flows from Operating Activities
Net loss for the period	$	(6,623,397	)	$	(6,714,035	)
Add items not affecting cash:
Stock-based compensation		5,080,000			2,651,050
Shares issued for services		404,000			2,810,829
Amortization		69,476			69,100


Changes in non-cash working capital:
Prepaid expense		(20,000	)		—
Accounts payable and accrued liabilities		(7,103	)		(18,469	)
Legal retainer		(36,386	)		—
Subscriptions receivable		—			(50,000	)
Cash Flows Used in Operating Activities		(1,133,410	)		(1,251,525	)

Cash Flows from Investing Activities
Acquisition of Equipment		(11,917	)		—
Cash Flows Used in Investing Activities		(11,917	)		—

Cash Flows from Financing Activities
Proceeds from private placement		219,000			2,924,060
Proceeds from warrant exercise		252,240			958,000
Cash Flows Provided by Financing Activities		471,240			3,882,060

Increase / (Decrease) in cash		(674,087	)		2,630,536

Cash, beginning of the period		3,175,523			12,157

Cash, end of the period	$	2,501,436		$	2,642,693

Supplemental cash flow information (Note 8)

The accompanying notes are an integral part of these interim consolidated financial statements

VOIP-PAL.com Inc.

INTERIM CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited – prepared by management)

(Expressed in U.S. dollars)

	Common Shares			Shares to be Issued		Additional Paid-in Capital
	Number	Par Value		Value				Deficit		Total
Balance at September 30, 2017	1,142,125,534	$	1,018,760	$	1,063,041	$	33,028,389	$	(34,246,816)	$	863,374
Shares issued for private placement	85,037,663	85,038		—		1,845,055		—		1,930,093
Shares issued for warrant exercise	1,000,000	1,000		—		39,000		—		40,000
Shares issued for services	158,000	158		—		2,212		—		2,370
Net loss for the year	—	—		—		—		(665,090)		(665,090)
Balance at December 31, 2017	1,228,321,197	$	1,104,956	$	1,063,041	$	34,914,656	$	(34,911,906)	$	2,170,747
Shares issued for private placement	16,766,086	16,766		—		989,201		—		1,005,967
Shares issued for warrant exercise	22,650,000	22,650		—		883,350		—		906,000
Shares issued for services	86,937,500	86,938		(1,063,041)		3,784,563		—		2,808,460
Shares issued for Anti-Dilution Clause (Notes 4 & 9)	118,121,352	—		—		—		—		—
Share purchase options granted (Note 10)	—	—		—		2,651,050		—		2,651,050
Net loss for the period	—	—		—		—		(6,048,945)		(6,048,945)
Balance at March 31, 2018	1,472,796,135	$	1,231,310	$	—	$	43,222,820	$	(40,960,851)	$	3,493,279
Shares issued for private placement	(3,225,000)	(3,225)		—		454,350		—		451,125
Shares issued for warrant exercise	41,100,000	41,100		—		1,032,525		—		1,073,625
Shares issued for services	17,468,333	17,468		477,320		576,828		—		1,071,616
Shares issued for Anti-Dilution Clause (Notes 4 & 9)	56,862,333	—		—		—		—		—
Share purchase options granted (Note 10)	—	—		—		(98,242)		—		(98,242)
Shares returned (Note 9)	(10,000,000)	(10,000)		—		(21,542)		—		(31,542)
Forgiveness of debt by related party (Note 9)	—	—		—		31,542		—		31,542
Net loss for the period	—	—		—		—		(1,687,513)		(1,687,513)
Balance at September 30, 2018	1,575,001,801	$	1,276,653	$	477,320	$	45,198,281	$	(42,648,364)	$	4,303,890
Shares issued for private placement	2,250,000	2,250		—		87,750		—		90,000
Shares issued for warrant exercise	6,306,000	6,306		—		245,934		—		252,240
Shares issued for services	12,237,500	12,238		18,000		277,262		—		307,500
Shares issued for bonus compensation	127,000,000	127,000		—		4,953,000		—		5,080,000
Shares issued for Anti-Dilution Clause (Notes 4 & 9)	225,184,791	—		—		—		—		—
Net loss for the period	—	—		—		—		(5,871,403)		(5,871,403)
Balance at December 31, 2018	1,947,980,092	$	1,424,447	$	495,320	$	50,762,227	$	(48,519,767)	$	4,162,227
Shares issued for private placement	3,225,000	3,225		—		125,775		—		129,000
Shares issued for services	1,062,500	1,062		54,000		41,438		—		96,500
Net loss for the period	—	—		—		—		(751,994)		(751,994)
Balance at March 31, 2019	1,952,267,592	$	1,428,734	$	549,320	$	50,929,440	$	(49,271,761)	$	3,635,733

The accompanying notes are an integral part of these interim consolidated financial statements

VOIP-PAL.COM INC.

Notes to the Interim Consolidated Financial Statements

(Unaudited – prepared by management)

(Expressed in United States Dollars)

March 31, 2019

NOTE 1.

NATURE AND CONTINUANCE OF OPERATIONS

VOIP-PAL.com, Inc. (the “Company”) was incorporated in the state of Nevada in September 1997 as All American Casting International, Inc. The Company’s registered office is located at 10900 NE 4^th Street, Suite 2300, Bellevue, Washington in the United States of America.

Since March 2004, the Company has developed technology and patents related to Voice-over-Internet Protocol (VoIP) processes. All business activities prior to March 2004 have been abandoned and written off to deficit.

In December 2013, the Company completed the acquisition of Digifonica (International) Limited, a private company controlled by the CEO of the Company, whose assets included several patents and technology developed for the VoIP market.

These consolidated financial statements have been prepared on the basis of a going concern, which contemplates the realization of assets and discharge of liabilities in the normal course of business. The Company is in various stages of product development and continues to incur losses and, at March 31, 2019, had an accumulated deficit of $49,271,761 (September 30, 2018 - $42,648,364). The ability of the Company to continue operations as a going concern is dependent upon raising additional working capital, settling outstanding debts and generating profitable operations. These material uncertainties raise substantial doubt about the Company’s ability to continue as 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 the terms acceptable to the Company. The issuances 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 consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”).

NOTE 3.

SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

These 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 March 31, 2019, Digifonica had no activities.

Use of Estimates

The preparation of these consolidated financial statements required management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from these estimates. Where estimates have been used financial results as determined by actual events could differ from those estimates.

VOIP-PAL.COM INC.

Notes to the Interim Consolidated Financial Statements

(Unaudited – prepared by management)

(Expressed in United States Dollars)

March 31, 2019

NOTE 3.

SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

Cash

Cash consists of cash on hand and monies held in checking and savings accounts. The Company had $2,501,436 and $3,175,523 in cash on March 31, 2019 and September 30, 2018, respectively.

Fixed Assets

Fixed assets are stated at cost less accumulated depreciation, and depreciated using the straight-line method over their useful lives; Furniture and equipment – 7 years; and Computers and Software – 3 years.

Intangible Assets

Intangible assets, consisting of VoIP communication patent intellectual properties (IP) are recorded at cost and amortized over the assets estimated life on a straight-line basis. Management considers factors such as remaining life of the patents, technological usefulness and other factors in estimating the life of the assets.

The carrying value of intangible assets are reviewed for impairment by management of the Company at least annually or upon the occurrence of an event which may indicate that the carrying amount may be less than its fair value. If impaired, the Company will write-down such impairment. In addition, the useful life of the intangible assets will be evaluated by management at least annually or upon the occurrence of an event which may indicate that the useful life may have changed.

Fair Value of Financial Instruments

FASB ASC 820, Fair Value Measurement, defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity.

The Company classifies financial assets and liabilities as held-for-trading, available-for-sale, held-to-maturity, loans and receivables or other financial liabilities depending on their nature. Financial assets and financial liabilities are recognized at fair value on their initial recognition, except for those arising from certain related party transactions which are accounted for at the transferor’s carrying amount or exchange amount.

Financial assets and liabilities classified as held-for-trading are measured at fair value, with gains and losses recognized in net income. Financial assets classified as held-to-maturity, loans and receivables, and financial liabilities other than those classified as held-for-trading are measured at amortized cost, using the effective interest method of amortization. Financial assets classified as available-for-sale are measured at fair value, with unrealized gains and losses being recognized as other comprehensive income until realized, or if an unrealized loss is considered other than temporary, the unrealized loss is recorded in income.

U.S. GAAP establishes a framework for measuring fair value under generally accepted accounting principles and enhances disclosures about fair value measurements. Fair value is defined as the amount that would be received for an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes the following fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value:

Level 1: Quoted prices in active markets for identical assets and liabilities.

Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3: Unobservable inputs supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The fair value of cash is classified as Level 1 at March 31, 2019 and September 30, 2018.

The Company classifies its financial instruments as follows: Cash is classified as held for trading and is measured at fair value. Accounts payable and accrued liabilities are classified as other financial liabilities, and have a fair value approximating their carrying value, due to their short-term nature.

VOIP-PAL.COM INC.

Notes to the Interim Consolidated Financial Statements

(Unaudited – prepared by management)

(Expressed in United States Dollars)

March 31, 2019

NOTE 3.

SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

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, generally for three years after they are filed.

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 six-month period ended March 31, 2019 and the year ended September 30, 2018 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.

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 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 maintains cash at financial institutions, which at times, may be in excess of insured limits. The Company has not experienced any losses to date as a result of this policy and, in assessing its risk, the Company’s policy is to maintain cash only with reputable financial institutions. As of March 31, 2019, the Company’s bank operating account balances exceeded the Federal Deposit Insurance Corporation Insurance Limit of $250,000 by $2,251,436.

Recent Accounting Pronouncements

In January 2016, FASB issued an ASU, Subtopic 825-10, to amend certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Most prominent among the amendments is the requirement for changes in fair value of equity investments, with certain exceptions, to be recognized through profit or loss rather than other comprehensive income. The Company adopted the standard October 1, 2018. There was no impact on the Company’s financial statements from the adoption of this amendment.

In January 2016, FASB issued ASU 2016-01 to amend certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Most prominent among the amendments is the requirement for changes in fair value of equity investments, with certain exceptions, to be recognized through profit or loss rather than other comprehensive income. The new standard was effective for the Company beginning October 1, 2018. The standard did not have any impact on the Company’s financial statements.

VOIP-PAL.COM INC.

Notes to the Interim Consolidated Financial Statements

(Unaudited – prepared by management)

(Expressed in United States Dollars)

March 31, 2019

NOTE 3.

SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

Recent Accounting Pronouncements (cont’d)

In February 2016 FASB issued ASU No. 2016-02, Leases (Topic 842) which supersedes FASB ASC Topic 840, Leases (Topic 840) and provides principles for the recognition, measurement, presentation, and disclosure of leases for both lessees and the lessors. The new standard requires the lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. The classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. The standard is effective for annual periods beginning after December 15, 2018, with early adoption permitted upon issuance. When adopted, the Company does not expect this guidance to have a material impact on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13 to replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss credit loss estimates. For trade and other receivables, loans and other financial instruments, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available for sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The new standard will be effective for the Company beginning October 1, 2020, with early adoption permitted. Application of the amendments is through a cumulative-effect adjustment to deficit as of the effective date. The Company is currently assessing the impact of the standard on its consolidated financial statements.

NOTE 4.

PURCHASE OF DIGIFONICA

The Company acquired Digifonica in December 2013. Pursuant to the terms in the Share Purchase Agreement (the “SPA”) the Company acquired 100% of Digifonica from the seller, the CEO of the Company (the “Seller”), for a cash payment of $800,000 and 389,023,561 common shares of the Company. The assets acquired through the acquisition were VoIP-related patented technology, including patents for Lawful Intercept, routing, billing and rating, mobile gateway, advanced interoperability solutions, intercepting voice over IP communications, and uninterrupted transmission of internet protocol transmissions during endpoint changes.

The SPA included an anti-dilution clause (the “Anti-Dilution Clause”) that requires the Company to maintain the Seller’s percentage ownership of the Company at 40% by issuing the Seller a proportionate number of common shares of any future issuance of the Company’s common shares. Shares issued pursuant to the Anti-Dilution Clause are recorded as a share issuance cost within the Additional Paid-in Capital account (Notes 7 and 9).

NOTE 5.

FIXED ASSETS

A summary of the Company’s fixed assets as of March 31, 2019 and September 30, 2018 is as follows:

	March 31, 2019			September 30, 2018
Office furniture & computers	$	11,917		$	—
Accumulated depreciation		(376	)		—
Net book value	$	11,541		$	—

There were no retirements of any fixed assets in the periods presented.

VOIP-PAL.COM INC.

Notes to the Interim Consolidated Financial Statements

(Unaudited – prepared by management)

(Expressed in United States Dollars)

March 31, 2019

NOTE 6.

INTANGIBLE ASSETS

The Company acquired certain patents and technology from Digifonica in December 2013 (see Note 4). These assets have been recorded in the financial statements as intangible assets. These assets are being amortized over twelve (12) years on a straight-line basis. A summary of intangible assets as of March 31, 2019 and September 30, 2018 is as follows:

	March 31, 2019			September 30, 2018
VoIP Intellectual property and patents	$	1,552,416		$	1,552,416
Accumulated amortization		(703,966	)		(634,866	)
Net book value	$	848,450		$	917,550

There were no disposals of any intangible assets in the periods presented.

NOTE 7.

RELATED PARTY TRANSACTIONS AND KEY MANAGEMENT COMPENSATION

The Company compensates certain of its key management personnel to operate its business in the normal course. Key management includes the Company’s executive officers and members of its Board of Directors.

Compensation paid or accrued to key management for services during the six-month period ended March 31, 2019 includes:

	March 31, 2019		March 31, 2018
Management fees paid or accrued to the CEO	$	72,000	$	45,000
Management fees paid or accrued to the CFO		43,200		43,200
Management fees paid or accrued to the President		30,000		18,000
Fees paid or accrued to Directors		36,000		36,000
	$	181,200	$	142,200

During the six-month period ended March 31, 2019 the Company issued 1,650,000 (2018 – 825,000) common shares for a value of $96,000 (2018 - $48,000), accrued 1,800,000 (2018 – 900,000) common shares to be issued valued at $72,000 (2018 – $36,000) and paid cash of $13,200 (2018 - $13,200) for key management compensation as shown in the above table. The Company also issued 90,000,000 (2018 – nil) common shares as bonus compensation to three directors which were recorded as an expense to the Company of $3,600,000 (2018 – Nil) (Notes 9 and 11), and 10,000,000 (2018 – Nil) common shares at a value of $200,000 to the CEO as additional compensation.

As at March 31, 2019, included in shares to be issued is $434,000 (September 30, 2018 - $416,000) for unpaid Director fees. As at March 31, 2019, 2,858,333 (September 30, 2018 – 126,655,791) common shares are accrued to the Seller of Digifonica for the Anti-Dilution Clause. 225,184,791 common shares were issued during the six-month period ended March 31, 2019 (March 31, 2018 – Nil) to the Seller of Digifonica pursuant to the Anti-Dilution Clause (Notes 4 and 9).

During the year ended September 30, 2018, 10,000,000 common shares were returned to the treasury from an officer of the Company at a per share price of $0.003 ($31,542) on the unwinding of a loan conversion transaction and the associated forgiveness of a loan to the Company provided by the officer dating from 2014.

NOTE 8.

SUPPLEMENTAL CASH FLOW INFORMATION

During the six-month period ended March 31, 2019, the Company paid $nil (March 31, 2018 - $nil) in interest or income taxes.

There were no non-cash investing or financing transactions during the period ended March 31, 2019. During the period ended March 31, 2018, the Company re-classified $1,063,041 from shares to be issued into Additional paid-in capital upon the issuance of shares.

VOIP-PAL.COM INC.

Notes to the Interim Consolidated Financial Statements

(Unaudited – prepared by management)

(Expressed in United States Dollars)

March 31, 2019

NOTE 9.

SHARE CAPITAL

Capital Stock Authorized and Issued:

–

3,000,000,000 (September 30, 2018 – 2,000,000,000) common voting shares authorized with a par value of $0.001 each, of which 1,952,267,592 (September 30, 2018 – 1,575,001,801) shares are issued.

–

1,000,000 convertible preferred shares authorized with a par value of $0.01 each, of which nil (2018 – nil) shares are issued.

During the six-month period ended March 31, 2019, the board of directors of the Company authorized the increase of the Company’s capital stock to up to 3,000,000,000 common voting shares with a par value of $0.001 per share.

Issues during the six-month period ended March 31, 2019

During the six-month period ended March 31, 2019, the Company issued:

–

5,475,000 common shares priced at $0.04 per common share for cash proceeds of $219,000 from a private placement of common shares;

–

6,306,000 common shares priced at $0.04 per common share for cash proceeds of $252,240 from the exercise of 6,306,000 common share purchase warrants;

–

13,300,000 common shares priced between $0.02 and $0.04 per common share for services with an aggregate value of $332,000 (September 30, 2018 - $477,320), and accrued 1,800,000 shares to be issued valued at $72,000 for services received;

–

127,000,000 common shares issued as bonus compensation, recorded as an expense to the Company of $5,080,000 (Note 11); and

–

225,184,791 common shares priced between $0.003 and $0.04 per common share pursuant to the Anti-Dilution Clause for a value of $5,124,641 (Note 4 and 6).

Issues during the year ended September 30, 2018

During the year ended September 30, 2018, the Company issued:

–

113,453,749 common shares for cash proceeds of $3,402,060 from private placements, as follows;

○

107,147,749 common shares priced between $0.015 and $0.06 per common share for cash proceeds of $3,303,940 from a private placement of common shares; and

○

6,306,000 units at between $0.013 and $0.02 per unit for cash proceeds of $98,120. Each unit consists of one common share and one common share purchase warrant. Each common share purchase warrant allows the holder to purchase one common share for $0.04 for a period of twelve months from the date of issuance;

–

50,125,000 common shares at $0.04 per common share for cash proceeds of $2,005,000 on the exercise of 50,125,000 common share purchase warrants;

–

104,313,833 common shares priced at between $0.02 and $0.06 per common share for services with an aggregate value of $4,467,917, of which $585,721 (September 30, 2017 - $Nil) was in settlement of Shares to be issued; and

–

174,983,685 common shares priced at $0.038 per common share pursuant to the Anti-Dilution Clause for a value of $6,649,380 (Note 4 and 6).

During the year ended September 30, 2018, 10,000,000 common shares were returned to the treasury at $0.003 per share with an aggregate value of $31,542 (Note 7).

Subsequent Issues

Subsequent to the six-month period ended March 31, 2019, the Company issued nil common shares.

VOIP-PAL.COM INC.

Notes to the Interim Consolidated Financial Statements

(Unaudited – prepared by management)

(Expressed in United States Dollars)

March 31, 2019

NOTE 9.

SHARE CAPITAL (CONT’D)

Shares to be Issued

As at March 31, 2019, there are 15,067,523 (September 30, 2018 – 12,817,523) common shares to be issued that are accrued for services provided to the Company valued at $549,320 (September 30, 2018– $477,320), of which 13,090,000 (September 30, 2018– 10,840,000) valued at $506,000 (September 30, 2018 - $416,000) are accrued to management and related parties (see Note 7).

As at March 31, 2019, there are 2,858,333 (September 30, 2018 – 126,655,791) common shares to be issued that are accrued to the seller of Digifonica pursuant to the Anti-Dilution Clause (see Notes 4 and 7), valued at $114,333 (September 30, 2018 - $4,812,920).

Warrants

During the six-month period ended March 31, 2019, the Company issued no new warrants.

During the six-month period ended March 31, 2019, 6,306,000 common share purchase warrants were exercised to purchase 6,306,000 common shares in the capital stock of the Company at a price of $0.04 per common share.

As of March 31, 2019, there were no outstanding warrants to be exercised.

The following table summarizes the Company’s share purchase warrant transactions:

	Number of warrants			Weighted average exercise price
Balance September 31, 2017		61,500,500		$	0.04
Issued		6,306,000			0.04
Exercised		(50,125,000	)		0.04
Expired		(11,375,500	)		0.04
Balance September 31, 2018		6,306,000		$	0.04
Issued		Nil			N/A
Exercised		(6,306,000	)		0.04
Expired		Nil			N/A
Balance March 31, 2019		Nil			N/A

VOIP-PAL.COM INC.

Notes to the Interim Consolidated Financial Statements

(Unaudited – prepared by management)

(Expressed in United States Dollars)

March 31, 2019

NOTE 10.

STOCK-BASED COMPENSATION

Stock Option Plan

In order to provide incentive to directors, officers, management, employees, consultants and others who provide services to the Company or any subsidiary (the “Service Providers”) to act in the best interests of the Company, and to retain such Service Providers, the Company has in place an incentive Stock Option Plan (the “Plan”) whereby the Company is authorized to issue up to 10% of its issued and outstanding share capital in options to purchase common shares of the Company. The maximum term of options granted under the Plan cannot exceed ten years, with vesting terms determined at the discretion of the Board of Directors.

The following table summarizes the Company’s stock option transactions:

	Number of options			Weighted average exercise price
Balance September 30, 2017		39,850,000		$	0.058
Granted		18,500,000			0.18
Cancelled		(18,500,000	)		(0.18	)
Balance September 30, 2018		39,850,000		$	0.058
Granted		10,000,000			0.065
Cancelled		—			—
Balance March 31, 2019		49,850,000		$	0.060

The following table summarizes the stock options outstanding at March 31, 2019:

Options Outstanding		Exercise Price		Remaining Contractual Life (Yrs)		Number of Options Currently Exercisable
	14,000,000	$	0.060		2.23		14,000,000
	14,000,000		0.060		2.43		14,000,000
	3,450,000		0.060		2.57		3,450,000
	8,400,000		0.050		3.05		8,400,000
	10,000,000		0.065		4.73		—
	49,850,000	$	0.058		3.0		39,850,000

The following assumptions were used for the Black-Scholes valuation of stock options granted during the six-month period ended March 31, 2019: risk-free rate of 1.62% (2018 – 1.62%), expected life of 5 years (2018 – 5 years), annualized historical volatility of 138.8% (2018 – 138.8%) and a dividend rate of 0% (2018 – 0%). Expected volatilities are based on historical volatility of the Company’s stock and other factors. The compensation cost that has been charged against income from options vested under the Plan was $nil for the six-month period ended March 31, 2019 (March 31, 2018 – $2,651,050) as none of the options granted were currently vested.

The weighted-average grant-date fair value of options granted during the six-month period ended March 31, 2019 was $0.07 (2018 - $0.14). The total intrinsic value of options exercised during the period ended March 31, 2019 was $nil (2018 - $1,538,525).

VOIP-PAL.COM INC.

Notes to the Interim Consolidated Financial Statements

(Unaudited – prepared by management)

(Expressed in United States Dollars)

March 31, 2019

NOTE 11.

CONTINGENT LIABILITIES

Litigation

The Company is party to pending litigation cases as follows:

Locksmith Financial Corporation, Inc. et al. v Voip-Pal.com Inc. (Case No A-15-717491-C) filed in Clark County District Court (the “State Case”)

On March 24, 2014, the Company resolved to freeze 95,832,000 common shares that were issued to a company controlled by a former director (the “defendant”) in fiscal 2013 and accounted for at a cost of $1,443,000. The Company resolved to freeze the common shares as the Company believes that the shares were issued as settlement of a line of credit that the Company believes to have been legally unsupported. The defendant alleges that the freeze and the Company’s actions constituted fraud and a breach of securities laws. The Company denies any wrongdoing. Currently the State Case is entering the discovery phase of litigation and the outcome is undeterminable.

ii)

Voip-Pal.com Inc. v. Richard Kipping, et al. (Case No. 2:15-cv-01258-JAD-VCF) filed in United States District Court (the “Federal Case”)

On July 2, 2015, the Company filed a case against a former director, a shareholder and the company controlled by a former director. The Company alleges that the common shares issued in the State Case and an additional 7,200,000 common shares were fraudulently obtained and that the shares have been unlawfully transferred to other entities. The proceedings in the Federal Case have been stayed pending a final determination of the issues in the State Case. The outcome of this case is undeterminable.

iii)

Voip-Pal.com Inc. v. Apple, Inc. (Case No. 2:16-CV-00260) & Verizon Wireless Services, LLC, Verizon Communications Inc., AT&T Corp. (Case No. 2:16- VC-00271) in the United States District Court, District of Nevada

In February 2016 the Company filed patent infringement lawsuits in the United States District Court, District of Nevada against Apple, Inc, (Case No. 2:16-CV-00260), Verizon Wireless Services, LLC, Verizon Communications Inc., and AT&T Corp. (Case No. 2:16- VC-00271). These cases are seeking a combined $7,024,377,876 in damages. On May 9, 2016, the lawsuits were officially served to these companies (collectively, the “Defendants”). The proceedings in these cases were temporarily stayed, by agreement with the parties thereto, pending the outcome of two Inter Partes Reviews (“IPRs”), which were decided in Voip-Pal’s favor.

In August, 2018, the cases were consolidated under one lawsuit, and transferred to the U.S. District Court for the Northern District of California, where they were renamed as Case Nos. 18-cv-06177-LHK, 18-cv-06217-LHK, 18-cv-04523-LHK and 18-cv-06054-LHK. The Defendants filed a Motion to Dismiss the cases, asserting an “Alice 101” motion that Voip-Pal’s ‘005 and ‘815 patents do not claim patentable subject matter.

On March 25, 2019, the U.S. District Court for the Northern District of California granted the Defendants’ “Alice 101” Motion to Dismiss in all of the cases. The Company has stated it will appeal this Court decision.

iv)

Voip-Pal.com Inc. v. Twitter, Inc. (Case No. 2:16-CV-02338) in the United States District Court, District of Nevada

During the year ended September 30, 2017, on October 6, 2016, the Company filed a lawsuit in the United States District Court, District of Nevada against Twitter, Inc, (Case No. 2:16- CV-02338) in which Voip-Pal.com alleges infringement of U.S. Patent No. 8,542,815 and its continuation patent, U.S. Patent No. 9,179,005, This case is seeking $3,200,000,000 in damages. On December 28, 2016, the lawsuit was officially served to Twitter, Inc. On February 28, 2018, Twitter filed a motion to transfer its case based on improper venue and the case was subsequently transferred to the U.S. District Court for the Northern District of California, where it remains pending. The outcome of this case is undeterminable.

Voip-Pal.com Inc. v. Amazon.com, Inc. et al. (Case No. 2:18-CV-01076) in the United States District Court, District of Nevada

During the period ended March 31, 2019, in June 2018, the Company filed a lawsuit in the United States District Court, District of Nevada, against Amazon.com, Inc. and certain related entities, alleging infringement of U.S. Patent Nos. 9,537,762, 9,813,330, 9,826,002 and 9,948,549. In November 2018, the case was transferred to the U.S. District Court for the Northern District of California, where it remains pending. The outcome of this case is undeterminable.

VOIP-PAL.COM INC.

Notes to the Interim Consolidated Financial Statements

(Unaudited – prepared by management)

(Expressed in United States Dollars)

March 31, 2019

NOTE 11.

CONTINGENT LIABILITIES (CONT’D)

Litigation (cont’d)

Inter Partes Reviews

In additional legal actions related to Item iii above, two of the Company’s patents have been subject to challenge in several Inter Partes Review (“IPR”) petitions filed before the Patent Trial and Appeal Board (“PTAB”) of the United States Patent and Trademark Office (“USPTO”). An IPR is a post-grant patent review process allowing the PTAB to consider the validity of issued patents. There are no damages awarded, but a portion or all of a patent’s claims instituted for IPR may be invalidated as a result of the review.

More particularly, a total of eight IPRs, filed against Patent No. 8,542,815 and No. 9,179,005, were either in process before the PTAB or had been resolved, as follows:

–

Unified Patents Inc. (Petitioner) vs. Voip-Pal.com Inc. (Patent Owner), IPR2016-01082, filed May 24, 2016, requesting inter partes review of U.S. Patent No. 8,542,815. On November 18, 2016, the PTAB denied institution of this petition;

–

Apple, Inc. (Petitioner) vs. Voip-Pal.com Inc. (Patent Owner), IPR2016-01198, reviewing Patent No. 9,179,005 and Voip-Pal.com Inc. (Patent Owner), IPR2016-01201, reviewing Patent No. 8,542,815, both instituted for IPR on November 21, 2016;

–

AT&T Inc. (Petitioner) filed IPR2017-01382 against Voip-Pal’s Patent No. 8,542,815, IPR2017-01383 against Voip-Pal’s Patent No. 9,179,005, and IPR2017-01384 against Voip-Pal’s Patent No. 9,179,005 on May 8, 2017, each of which was subsequently denied institution; and

–

Apple Inc. (Petitioner) filed IPR2017-01399 against Voip-Pal’s Patent No. 8,542,815, and IPR2017-01398 against Voip-Pal’s Patent No. 9,179,005 on May 9, 2017, each of which was subsequently denied institution.

During the year ended September 30, 2018, the PTAB considered the aforesaid IPRs, and on November 20, 2017, the PTAB issued its findings on the seven active IPRs being adjudicated, denying institution of the IPRs with respect to all claims challenged by the Petitioners (Apple Inc, and AT&T Inc.). Subsequent to that ruling, in December 2017, Apple filed a post-judgment motion in IPR2016-01198 and IPR2016-01201, seeking invalidation of the challenged claims as sanctions against the Company.

On December 21, 2018, a new panel of the PTAB ruled on Apple’s sanctions motion, declining to grant Apple’s request to invalidate the challenged claims and declining to grant Apple’s request for entirely new proceedings to replace the existing panel of judges with a new panel or with judges that would consider any request for rehearing by Apple as a sanction against VoIP-Pal.

Performance Bonus Payable

In 2016, the board of directors authorized the Company to provide a performance bonus (the “Performance Bonus”) of up to 3% of the capital stock of the Company by way of the issuance of Common shares from its treasury to an as yet undetermined group of related and non-related parties upon the occurrence of a bonusable event, defined as the successful completion of a sale of the Company or substantially all its assets, or a major licensing transaction. In order to provide maximum flexibility to the Company with respect to determining the level of Performance Bonus payable, and who may qualify to receive a pro-rata share of such a Performance Bonus, the Company authorized full discretion to the Board in making such determinations.

During the period ended September 30, 2018, the board of directors authorized the increase of the Performance Bonus to up to 10% of the capital stock of the Company.

During the six-month period ended March 31, 2019, the board of directors resolved to reduce the Performance Bonus from 10% to 3.33% of the issued and outstanding capital stock of the Company. Concurrently, the board of directors authorized the payment of Common shares (“Bonus Shares”) in an equivalent percentage to the 6.67% reduction to the Performance Bonus to a group of related and non-related parties, which included members of management, a director and several consultants, who received an aggregate 127,000,000 Bonus Shares (Note 9). The Bonus Shares are restricted from trading under Rule 144 and are also subject to voluntary lock-up agreements, pursuant to which they cannot be traded, pledged, hypothecated, transferred or sold by the holders until such time as the Company has met the requirements of the bonusable event as described above.

As at March 31, 2019, no bonusable event had occurred and there was no Performance Bonus payable.

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following management’s discussion and analysis (MD&A) should be read in conjunction with our interim consolidated financial statements for the six-month period ended March 31, 2019 and notes thereto appearing elsewhere in this report, and our audited consolidated financial statements for the year ended September 30, 2018 and notes thereto.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This MD&A for the three- and six-month period ending March 31, 2019 contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amending, and Section 21E of the Securities Exchange Act of 1934, as amending. Forward-looking statements may be identified by the use of forward-looking terminology, such as “may”, “shall”, “could”, “expect”, “estimate”, “anticipate”, “predict”, “probable”, “possible”, “should”, “continue”, or similar terms, variations of those terms or the negative of those terms. The forward-looking statements specified in the following information have been compiled by our management on the basis of assumptions made by management and are considered by management to be reasonable. Our future operating results, however, are impossible to predict and no representation, guaranty, or warranty is to be inferred from those forward-looking statements.

The assumptions used for purposes of the forward-looking statements specified in the following information represent estimates of future events and are subject to uncertainty as to possible changes in economic, legislative, industry, and other circumstances. As a result, the identification and interpretation of data and other information and their use in developing and selecting assumptions from and among reasonable alternatives require the exercise of judgment. To the extent that the assumed events do not occur, the outcome may vary substantially from anticipated or projected results, and, accordingly, no opinion is expressed on the achievability of those forward-looking statements. No assurance can be given that any of the assumptions relating to the forward-looking statements specified in the following information are accurate, and we assume no obligation to update any such forward-looking statements

CORPORATE HISTORY, OVERVIEW AND PRINCIPAL BUSINESS

VOIP-PAL.com Inc. (“Voip-Pal”, the “Company”) was incorporated in the state of Nevada in September 1997 as All American Casting International, Inc. and changed its name to VOIP MDI.com in 2004 and subsequently to Voip-Pal.Com Inc. in 2006. Since March 2004, the Company has been in the development stage of becoming a Voice-over-Internet Protocol (“VoIP”) re-seller, a provider of a proprietary transactional billing platform tailored to the points and air mile business, and a provider of anti-virus applications for smartphones. All business activities prior to March 2004 have been abandoned and written off to deficit.

In 2013, Voip-Pal acquired Digifonica International (DIL) Limited (“Digifonica”), to fund and co-develop Digifonica’s patent suite. Digifonica had been founded in 2003 with the vision that the internet would be the future of all forms of telecommunications - a team of twenty top engineers with expertise in Linux and Internet telephony developed and wrote a software suite with applications that provided solutions for several core areas of internet connectivity. In order to properly test the applications, Digifonica built and operated three production nodes in Vancouver, Canada (Peer 1), London, UK (Teliasonera), and Denmark. Upon successfully developing the technology, Digifonica filed for patents with the United States Patent and Trademark Office (“USPTO”).

The Digifonica patents formed the basis for Voip-Pal’s current intellectual property, now a worldwide portfolio of twenty-six issued and pending patents primarily designed for the broadband VoIP market.

Voip-Pal’s intellectual property value is derived from its issued and pending patents. Voip-Pal inventions described in these patents, among other things, provide the means to integrate VoIP services with legacy telecommunications systems such as the public switched telephone network (PSTN) to create a seamless service using either legacy telephone numbers or IP addresses, and enhance the performance and value of VoIP implementations worldwide.

VoIP has been and continues to be a green field for innovation that has spawned numerous inventions, greatly benefitting consumers large and small across the globe. VoIP is used in many places and by every modern telephony system vendor, network supplier, and retail and wholesale carrier.

Results of Operations

The Company’s operating costs consist of expenses incurred to monetizing, selling and licensing its VoIP patents. Other operating costs include expenses for legal, accounting and other professional fees, financing costs, and other general and administrative expenses.

Comparison of the Three Months and Six Months Ending March 31, 2019 and 2018

	Three months ending March 31						Increase/
	2019			2018			(Decrease)			Percent
Revenue	$	—		$	—		$	—		—
Cost of Revenue	—			—			—			—
Gross Margin		—			—			—			—
General and administrative expenses		(717,256	)		(6,014,395	)		(5,297,139	)		-88	%
Amortization and depreciation		(34,738	)		(34,550	)		188			0.54	%
Net loss	$	(751,994	)	$	(6,048,945	)	$	(5,296,951	)		-88	%

	Six months ending March 31						Increase/
	2019			2018			(Decrease)			Percent
Revenue	$	—		$	—		$	—		—
Cost of Revenue	—			—			—			—
Gross Margin		—			—			—			—
General and administrative expenses		(6,553,920	)		(6,644,936	)		(91,015	)		-1	%
Amortization and depreciation		(69,476	)		(69,100	)		376			0.54	%
Net loss	$	(6,623,397	)	$	(6,714,036	)	$	(90,639	)		-1	%

REVENUES, COST OF REVENUES AND GROSS MARGIN

The Company had no revenues, cost of revenues or gross margin for the three and six month periods ending March 31, 2019 and 2018.

GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative expenses for the three months ending March 31, 2019 totaled $717,256 compared to $6,014,395 during the same period in 2018. The decrease in general and administrative expenses of $5,297,139, or 88% less than the previous year, was primarily due to lower legal fees and stock-based compensation expenses incurred during the current period as compared to the same period in the previous year.

General and administrative expenses for the six months ending March 31, 2019 totaled $6,553,920 compared to $6,644,936 during the same period in 2018. The decrease in general and administrative expenses of $91,015 or 1% less than the previous year, was primarily due to lower legal fees and a decrease in stock-based compensation.

AMORTIZATION AND DEPRECIATION

Amortization of intellectual VoIP communications patent properties and depreciation of fixed assets for the three months ending March 31, 2019 totaled $34,738 compared to $34,550 during the same period in 2018. There was a small increase of $188 for depreciation on computers and furniture purchased during the first fiscal quarter of 2018. There was no material difference between the amortization expenses for the three months ending March 31, 2019 as compared to the same period in 2018.

Amortization of the intellectual VoIP communications patent properties and depreciation of fixed assets for the six months ending March 31, 2019 totaled $69,476 compared to $69,100 during the same period in 2018. There was a small increase of $376 for depreciation on computers and furniture purchased during the six-month period. There was no material difference between the amortization expenses for the six months ending March 31, 2019 as compared to the same period in 2018.

The Company follows GAAP (FAS 142) and is amortizing its intangibles over the remaining patent life of twelve (12) years. The Company evaluates its intangible assets annually and determines if the fair market value is less than its historical cost. If the fair market value is less, then impairment expense is recorded on the Company’s financial statements. The intangible assets on the financial statements of the Company relate primarily to the Company’s acquisition of Digifonica (International) Limited.

INTEREST EXPENSE

The Company had no financing or interest costs for the three or six month periods ending March 31, 2019 and 2018.

NET LOSS

The Company reported a net loss of $751,994 for the three months ended March 31, 2019 compared to a net loss of $6,048,945 for the same period in 2018. The net loss decrease of $5,296,951, or 88% over the same period in 2018 was due primarily to a decrease in legal fees and stock-based compensation.

The Company reported a net loss of $6,623,397 for the six months ended March 31, 2019 compared to a net loss of $6,714,036 for the same period in 2018. The net loss decrease of $91,015, or 1% over the same period in 2018 was due primarily to a decrease in legal fees and stock-based compensation.

LIQUIDITY AND CAPITAL RESOURCES

As of March 31, 2019, the Company had an accumulated deficit of $49,271,761 as compared to an accumulated deficit of $40,960,851 at March 31, 2018. As of March 31, 2019, the Company had a working capital surplus of $2,775,744 as compared to a working capital surplus of $2,506,629 at March 31, 2018. The increase in the Company’s working capital surplus of $269,115 was primarily due to an increase in cash proceeds from private placements and warrant exercises.

Net cash used by operations for the six months ending March 31, 2019 and 2018 was $1,110,726 and $1,251,525, respectively. The decrease in net cash used for the six months ending March 31, 2019 as compared to the six months ending March 31, 2018 was primarily due to a decrease in cash expenditures for legal expenses during the period.

Net cash used in investing activities for the six months ending March 31, 2019 and 2018 was $11,917 and $Nil, respectively.

Net cash provided in financing activities for the six months ending March 31, 2019 and 2018 was $471,240 and $3,882,060 respectively. The decrease in net cash provided by financing activities of $3,410,820 was primarily due to a decrease in cash proceeds from private placements and warrant exercises.

Liquidity

The Company primarily finances its operations from cash received through equity private placements of common stock and through the payment of stock-based compensation. The Company believes its resources are adequate to fund its operations for the next 12 months.

Off Balance Sheet Arrangements

Performance Bonus Payable

During the year ended September 30, 2018, the board of directors authorized the increase of the Performance Bonus to up to 10% of the capital stock of the Company.

As at March 31, 2019, no bonusable event had occurred and there was no Performance Bonus payable.

Impact of Inflation

We believe that inflation has not had a material impact on our results of operations for the three months ending December 31, 2018. We cannot assure you that future inflation will not have an adverse impact on our operating results and financial condition.

Item 3.

Quantitative and Qualitative Disclosures About Market Risk.

As a smaller reporting company, we are not required to provide the information required by this Item.

Item 4.

Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Management conducted an evaluation of the effectiveness of the Company’s internal control over financial reporting as of March 31, 2019. 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 fiscal period covered by this Quarterly Report on Form 10-Q that our internal control over financial reporting has not been effective. The company intends, as the company’s finances improve, to hire additional accounting staff and implement additional controls.

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 weakness is a deficiency or combination of deficiencies that results more than a remote likelihood that a material misstatement of annual or interim financial statements will not be prevented or detected. In connection with the assessment described above, management identified the following control deficiencies that represent material weaknesses as of December 31, 2018:

Lack of segregation of duties. At this time, our resources and size prevent us from being able to employ sufficient resources to enable us to have adequate segregation of duties within our internal control system. Management will periodically reevaluate this situation.

Lack of an independent audit committee. Although the Board of Directors serves as an audit committee it is not comprised solely of independent directors. We may establish an audit committee comprised solely of independent directors when we have sufficient capital resources and working capital to attract qualified independent directors and to maintain such a committee.

Insufficient number of independent directors. At the present time, our Board of Directors does not consist of a majority of independent directors, a factor that is counter to corporate governance practices as set forth by the rules of various stock exchanges.

Our management determined that these deficiencies constituted material weaknesses. Due to a lack of financial resources, we are not able to, and do not intend to, immediately take any action to remediate these material weaknesses. We will not be able to do so until we acquire sufficient financing to do so. We will implement further controls as circumstances, cash flow, and working capital permit. Notwithstanding the assessment that our ICFR was not effective and that there were material weaknesses as identified in this report, we believe that our financial statements fairly present our financial position, results of operations and cash flows for the years covered thereby in all material respects.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act are recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer, to allow timely decisions regarding required disclosure.

Limitations on the Effectiveness of Internal Controls

Our management does not expect that our disclosure controls and procedures or our internal control over financial reporting will necessarily prevent all fraud and material error. Our disclosure controls and procedures are designed to provide reasonable assurance of achieving our objectives and our Chief Executive Officer concluded that our disclosure controls and procedures are effective at that reasonable assurance level. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the internal control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal controls over financial reporting during the quarter ended March 31, 2019 that have materially affected or are reasonably likely to materially affect such controls.

PART II—OTHER INFORMATION

Item 1.

Legal Proceedings.

Other than noted below, there have been no material developments during the current quarter for our legal proceedings that were disclosed in our registration statement on Form 10 filed on April 22, 2016. For a full disclosure of legal proceedings, please reference our Form 10 registration or Note 11 of the Financial Statements contained in this report.

Locksmith Financial Corporation, Inc. et al. v Voip-Pal.com Inc. (Case No A-15-717491-C) filed in Clark County District Court (the “State Case”)

ii)

Voip-Pal.com Inc. v. Richard Kipping, et al. (Case No. 2:15-cv-01258-JAD-VCF) filed in United States District Court (the “Federal Case”)

iii)

iv)

Voip-Pal.com Inc. v. Twitter, Inc. (Case No. 2:16-CV-02338) in the United States District Court, District of Nevada

Voip-Pal.com Inc. v. Amazon.com, Inc. et al. (Case No. 2:18-CV-01076) in the United States District Court, District of Nevada

Inter Partes Reviews

More particularly, a total of eight IPRs, filed against Patent No. 8,542,815 and No. 9,179,005, were either in process before the PTAB or had been resolved, as follows:

–

Item 1A.

Risk Factors.

As a smaller reporting company, we are not required to provide the information required by this Item.

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds.

The transactions described in this section were exempt from securities registration as provided by Section 4(a)(2) of the Securities Act for transactions not involving a public offering for sales within the United States and by Regulation S of the Securities Act for sales made outside of the United States.

During the period ended December 31, 2018, the Company issued 1,062,500 common shares priced at $0.04 per common share for services with an aggregate value of $42,500.

During the period ended December 31, 2018, the Company issued 3,225,000 common shares priced at $0.04 per common share for cash proceeds of $129,000 from private placements of common shares.

Item 3.

Defaults Upon Senior Securities.

None.

Item 4.

Mine Safety Disclosures.

Not applicable.

Item 5.

Other Information.

None.

Item 6.

Exhibits.

Exhibit Number	Description of Exhibits

31.1	Rule 13a-14(a) Certification of CEO	Filed herewith
31.2	Rule 13a-14(a) Certification of CFO	Filed herewith
32.1	Section 1350 Certification	Filed herewith

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

DATED: May 15, 2019	By: /s/ Emil Malak
	Emil Malak
	Chief Executive Officer

DATED: May 15, 2019	By: /s/ D. Barry Lee
	D. Barry Lee
	Chief Financial Officer

EX-31.1 2 ex31-1.htm CERTIFICATION OF CHIEF EXECUTIVE OFFICER

VoIP-PAL.COM INC. 10-Q

Exhibit 31.1

CERTIFICATION

PURSUANT TO SECTION 13a-14

OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Emil Malak, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of VoIP-Pal.com Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.

4.	The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

	(a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	(b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of the financial reporting and the preparation of financial statements for external reporting purposes in accordance with generally accepted accounting principles;

	(c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	(d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5.	The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

	(a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	(b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 15, 2019

	/s/ Emil Malak
	Emil Malak
	Chief Executive Officer

EX-31.2 3 ex31-2.htm CERTIFICATION OF CHIEF FINANCIAL OFFICER

VoIP-PAL.COM INC. 10-Q

Exhibit 31.2

CERTIFICATION

PURSUANT TO SECTION 13a-14

OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, D. Barry Lee, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of VoIP-Pal.com Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.

4.	The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:


	(a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	(b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of the financial reporting and the preparation of financial statements for external reporting purposes in accordance with generally accepted accounting principles;

	(c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	(d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.


5.	The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

	(a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	(b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 15, 2019

	/s/ D. Barry Lee
	D. Barry Lee
	Chief Financial Officer

EX-32.1 4 ex32-1.htm CERTIFICATION BY THE CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL

VoIP-PAL.COM INC. 10-Q

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. 1350

(As adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002)

For the Quarterly Report of VoIP-Pal.com Inc. (the “Company”) on Form 10-Q for the period ending March 31, 2019 (the “Report”), the undersigned, in the capacities and on the date indicated below, hereby certifies that:

(i) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the periods covered in the Report.

Date: May 15, 2019

	By: /s/ Emil Malak
	Emil Malak
	Chief Executive Officer

	By: /s/D. Barry Lee
	D. Barry Lee
	Chief Financial Officer

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P3Y

P2Y2M23D

P2Y5M5D

P3Y6M25D

P3Y0M18D

P4Y8M23D

39850000

14000000

3450000

8400000

0.10

Black-Scholes

0.0162

P5Y

1.388

0.00

0.07

0.14

1538525

Locksmith Financial Corporation, Inc. et al.

Voip-Pal.com Inc.

Richard Kipping, et al.

Apple, Inc.

Twitter, Inc.

Amazon.com, Inc.

During the period ended December 31, 2018, in June 2018, the Company filed a lawsuit in the United States District Court, District of Nevada, against Amazon.com, Inc. and certain related entities, alleging infringement of U.S. Patent Nos. 9,537,762, 9,813,330, 9,826,002 and 9,948,549.

7024377876

3200000

95832000 7200000 0.10 0.0333 0.0667 0.0333 0.0667 1443000

<table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; width: 100%; margin-top: 0px; margin-bottom: 0pt; font-size-adjust: none; font-stretch: normal"> <tr style="line-height: normal; vertical-align: top; font-size-adjust: none; font-stretch: normal"> <td style="line-height: normal; width: 1in; text-align: left; font-size-adjust: none; font-stretch: normal">NOTE 9. </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal">SHARE CAPITAL</td></tr> </table>   Capital Stock Authorized and Issued:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt; font-size-adjust: none; font-stretch: normal"> <tr style="line-height: normal; vertical-align: top; font-size-adjust: none; font-stretch: normal"> <td style="line-height: normal; width: 9pt; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 18pt; font-size-adjust: none; font-stretch: normal">–</td> <td style="line-height: normal; text-align: justify; font-size-adjust: none; font-stretch: normal">3,000,000,000 (September 30, 2018 – 2,000,000,000) common voting shares authorized with a par value of $0.001 each, of which 1,952,267,592 (September 30, 2018 – 1,575,001,801) shares are issued. </td></tr> </table>   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt; font-size-adjust: none; font-stretch: normal"> <tr style="line-height: normal; vertical-align: top; font-size-adjust: none; font-stretch: normal"> <td style="line-height: normal; width: 9pt; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 18pt; font-size-adjust: none; font-stretch: normal">–</td> <td style="line-height: normal; text-align: justify; font-size-adjust: none; font-stretch: normal">1,000,000 convertible preferred shares authorized with a par value of $0.01 each, of which nil (2018 – nil) shares are issued.</td></tr> </table>   During the six-month period ended March 31, 2019, the board of directors of the Company authorized the increase of the Company’s capital stock to up to 3,000,000,000 common voting shares with a par value of $0.001 per share.   Issues during the six-month period ended March 31, 2019   During the six-month period ended March 31, 2019, the Company issued:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt; font-size-adjust: none; font-stretch: normal"> <tr style="line-height: normal; vertical-align: top; font-size-adjust: none; font-stretch: normal"> <td style="line-height: normal; width: 9pt; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 18pt; font-size-adjust: none; font-stretch: normal">–</td> <td style="line-height: normal; text-align: justify; font-size-adjust: none; font-stretch: normal">5,475,000 common shares priced at $0.04 per common share for cash proceeds of $219,000 from a private placement of common shares; </td></tr> </table>   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt; font-size-adjust: none; font-stretch: normal"> <tr style="line-height: normal; vertical-align: top; font-size-adjust: none; font-stretch: normal"> <td style="line-height: normal; width: 9pt; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 18pt; font-size-adjust: none; font-stretch: normal">–</td> <td style="line-height: normal; text-align: justify; font-size-adjust: none; font-stretch: normal">6,306,000 common shares priced at $0.04 per common share for cash proceeds of $252,240 from the exercise of 6,306,000 common share purchase warrants;</td></tr> </table>    <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt; font-size-adjust: none; font-stretch: normal"> <tr style="line-height: normal; vertical-align: top; font-size-adjust: none; font-stretch: normal"> <td style="line-height: normal; width: 9pt; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 18pt; font-size-adjust: none; font-stretch: normal">–</td> <td style="line-height: normal; text-align: justify; font-size-adjust: none; font-stretch: normal">13,300,000 common shares priced between $0.02 and $0.04 per common share for services with an aggregate value of $332,000 (September 30, 2018 - $477,320), and accrued 1,800,000 shares to be issued valued at $72,000 for services received;</td></tr> </table>    <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt; font-size-adjust: none; font-stretch: normal"> <tr style="line-height: normal; vertical-align: top; font-size-adjust: none; font-stretch: normal"> <td style="line-height: normal; width: 9pt; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 18pt; font-size-adjust: none; font-stretch: normal">–</td> <td style="line-height: normal; text-align: justify; font-size-adjust: none; font-stretch: normal">127,000,000 common shares issued as bonus compensation, recorded as an expense to the Company of $5,080,000 (Note 11); and</td></tr> </table>   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt; font-size-adjust: none; font-stretch: normal"> <tr style="line-height: normal; vertical-align: top; font-size-adjust: none; font-stretch: normal"> <td style="line-height: normal; width: 9pt; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 18pt; font-size-adjust: none; font-stretch: normal">–</td> <td style="line-height: normal; text-align: justify; font-size-adjust: none; font-stretch: normal">225,184,791 common shares priced between $0.003 and $0.04 per common share pursuant to the Anti-Dilution Clause for a value of $5,124,641 (Note 4 and 6).</td></tr> </table>   Issues during the year ended September 30, 2018   During the year ended September 30, 2018, the Company issued:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt; font-size-adjust: none; font-stretch: normal"> <tr style="line-height: normal; vertical-align: top; font-size-adjust: none; font-stretch: normal"> <td style="line-height: normal; width: 9pt; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 18pt; font-size-adjust: none; font-stretch: normal">–</td> <td style="line-height: normal; text-align: justify; font-size-adjust: none; font-stretch: normal">113,453,749 common shares for cash proceeds of $3,402,060 from private placements, as follows; </td></tr> </table>   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt; font-size-adjust: none; font-stretch: normal"> <tr style="line-height: normal; vertical-align: top; font-size-adjust: none; font-stretch: normal"> <td style="line-height: normal; width: 27pt; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 18pt; font-size-adjust: none; font-stretch: normal">○</td> <td style="line-height: normal; text-align: justify; font-size-adjust: none; font-stretch: normal">107,147,749 common shares priced between $0.015 and $0.06 per common share for cash proceeds of $3,303,940 from a private placement of common shares; and</td></tr> </table>   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt; font-size-adjust: none; font-stretch: normal"> <tr style="line-height: normal; vertical-align: top; font-size-adjust: none; font-stretch: normal"> <td style="line-height: normal; width: 27pt; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 18pt; font-size-adjust: none; font-stretch: normal">○</td> <td style="line-height: normal; text-align: justify; font-size-adjust: none; font-stretch: normal">6,306,000 units at between $0.013 and $0.02 per unit for cash proceeds of $98,120. Each unit consists of one common share and one common share purchase warrant. Each common share purchase warrant allows the holder to purchase one common share for $0.04 for a period of twelve months from the date of issuance;</td></tr> </table>   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt; font-size-adjust: none; font-stretch: normal"> <tr style="line-height: normal; vertical-align: top; font-size-adjust: none; font-stretch: normal"> <td style="line-height: normal; width: 9pt; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 18pt; font-size-adjust: none; font-stretch: normal">–</td> <td style="line-height: normal; text-align: justify; font-size-adjust: none; font-stretch: normal">50,125,000 common shares at $0.04 per common share for cash proceeds of $2,005,000 on the exercise of 50,125,000 common share purchase warrants; </td></tr> </table>   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt; font-size-adjust: none; font-stretch: normal"> <tr style="line-height: normal; vertical-align: top; font-size-adjust: none; font-stretch: normal"> <td style="line-height: normal; width: 9pt; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 18pt; font-size-adjust: none; font-stretch: normal">–</td> <td style="line-height: normal; text-align: justify; font-size-adjust: none; font-stretch: normal">104,313,833 common shares priced at between $0.02 and $0.06 per common share for services with an aggregate value of $4,467,917, of which $585,721 (September 30, 2017 - $Nil) was in settlement of Shares to be issued; and</td></tr> </table>   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt; font-size-adjust: none; font-stretch: normal"> <tr style="line-height: normal; vertical-align: top; font-size-adjust: none; font-stretch: normal"> <td style="line-height: normal; width: 9pt; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 18pt; font-size-adjust: none; font-stretch: normal">–</td> <td style="line-height: normal; text-align: justify; font-size-adjust: none; font-stretch: normal">174,983,685 common shares priced at $0.038 per common share pursuant to the Anti-Dilution Clause for a value of $6,649,380 (Note 4 and 6).</td></tr> </table>   During the year ended September 30, 2018, 10,000,000 common shares were returned to the treasury at $0.003 per share with an aggregate value of $31,542 (Note 7).   Subsequent Issues   Subsequent to the six-month period ended March 31, 2019, the Company issued nil common shares.    Shares to be Issued    As at March 31, 2019, there are 15,067,523 (September 30, 2018 – 12,817,523) common shares to be issued that are accrued for services provided to the Company valued at $549,320 (September 30, 2018– $477,320), of which 13,090,000 (September 30, 2018– 10,840,000) valued at $506,000 (September 30, 2018 - $416,000) are accrued to management and related parties (see Note 7).   As at March 31, 2019, there are 2,858,333 (September 30, 2018 – 126,655,791) common shares to be issued that are accrued to the seller of Digifonica pursuant to the Anti-Dilution Clause (see Notes 4 and 7), valued at $114,333 (September 30, 2018 - $4,812,920).   Warrants   During the six-month period ended March 31, 2019, the Company issued no new warrants.   During the six-month period ended March 31, 2019, 6,306,000 common share purchase warrants were exercised to purchase 6,306,000 common shares in the capital stock of the Company at a price of $0.04 per common share.   As of March 31, 2019, there were no outstanding warrants to be exercised.   The following table summarizes the Company’s share purchase warrant transactions:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; width: 70%; margin-left: 3%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal"> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal"> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td colspan="2" style="line-height: normal; text-align: center; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> Number of warrants</td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td colspan="2" style="font-weight: bold; line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">Weighted average exercise price</td> <td style="font-weight: bold; line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="font-weight: bold; line-height: normal; width: 61%; text-align: left; font-size-adjust: none; font-stretch: normal">Balance September 31, 2017</td> <td style="font-weight: bold; line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; width: 1%; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; width: 16%; text-align: right; font-size-adjust: none; font-stretch: normal">61,500,500</td> <td style="font-weight: bold; line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; width: 1%; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal">$</td> <td style="font-weight: bold; line-height: normal; width: 16%; text-align: right; font-size-adjust: none; font-stretch: normal">0.04</td> <td style="font-weight: bold; line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: white"> <td style="line-height: normal; text-align: left; padding-left: 0.125in; font-size-adjust: none; font-stretch: normal">Issued </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">6,306,000</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">0.04</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="line-height: normal; text-align: left; padding-left: 0.125in; font-size-adjust: none; font-stretch: normal">Exercised</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">(50,125,000</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal">)</td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">0.04</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: white"> <td style="line-height: normal; text-align: left; padding-left: 0.125in; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">Expired</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">(11,375,500</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">)</td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">0.04</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal">Balance September 31, 2018</td> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">6,306,000</td> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal">$</td> <td style="font-weight: bold; line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">0.04</td> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: white"> <td style="line-height: normal; text-align: left; padding-left: 0.125in; font-size-adjust: none; font-stretch: normal">Issued </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">Nil</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">N/A</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="line-height: normal; text-align: left; padding-left: 0.125in; font-size-adjust: none; font-stretch: normal">Exercised</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">(6,306,000</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal">)</td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">0.04</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: white"> <td style="line-height: normal; text-align: left; padding-left: 0.125in; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">Expired</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">Nil</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">          N/A</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">Balance March 31, 2019</td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: right; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">Nil</td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">         N/A</td> <td style="line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td></tr> </table>

<table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; width: 100%; margin-top: 0px; margin-bottom: 0pt; font-size-adjust: none; font-stretch: normal"> <tr style="line-height: normal; vertical-align: top; font-size-adjust: none; font-stretch: normal"> <td style="line-height: normal; width: 1in; text-align: left; font-size-adjust: none; font-stretch: normal">NOTE 10.</td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal">STOCK-BASED COMPENSATION</td></tr> </table>   Stock Option Plan   In order to provide incentive to directors, officers, management, employees, consultants and others who provide services to the Company or any subsidiary (the “Service Providers”) to act in the best interests of the Company, and to retain such Service Providers, the Company has in place an incentive Stock Option Plan (the “Plan”) whereby the Company is authorized to issue up to 10% of its issued and outstanding share capital in options to purchase common shares of the Company. The maximum term of options granted under the Plan cannot exceed ten years, with vesting terms determined at the discretion of the Board of Directors.   The following table summarizes the Company’s stock option transactions:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; width: 70%; margin-left: 3%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal"> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal"> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td colspan="2" style="font-weight: bold; line-height: normal; text-align: center; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">Number of options</td> <td style="font-weight: bold; line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td colspan="2" style="line-height: normal; text-align: center; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> Weighted average exercise price</td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="line-height: normal; width: 61%; text-align: left; font-size-adjust: none; font-stretch: normal">Balance September 30, 2017</td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 16%; text-align: right; font-size-adjust: none; font-stretch: normal">39,850,000</td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal">$</td> <td style="line-height: normal; width: 16%; text-align: right; font-size-adjust: none; font-stretch: normal">0.058</td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: white"> <td style="line-height: normal; text-align: left; padding-left: 0.125in; font-size-adjust: none; font-stretch: normal">Granted </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">18,500,000</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">0.18</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="line-height: normal; text-align: left; padding-left: 0.125in; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">Cancelled</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">(18,500,000</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">)</td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">(0.18</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">)</td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: white"> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal">Balance September 30, 2018</td> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">39,850,000</td> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal">$</td> <td style="font-weight: bold; line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">0.058</td> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="line-height: normal; text-align: left; padding-left: 0.125in; font-size-adjust: none; font-stretch: normal">Granted </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">10,000,000</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">0.065</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: white"> <td style="line-height: normal; text-align: left; padding-left: 0.125in; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">Cancelled</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">—</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">—</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">Balance March 31, 2019 </td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: right; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">49,850,000</td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">$</td> <td style="font-weight: bold; line-height: normal; text-align: right; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">0.060</td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td></tr> </table>   The following table summarizes the stock options outstanding at March 31, 2019:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; width: 70%; margin-left: 3%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal"> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal"> <td colspan="2" style="font-weight: bold; line-height: normal; text-align: center; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">Options Outstanding</td> <td style="font-weight: bold; line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td colspan="2" style="font-weight: bold; line-height: normal; text-align: center; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">Exercise Price</td> <td style="font-weight: bold; line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td colspan="2" style="font-weight: bold; line-height: normal; text-align: center; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">Remaining Contractual Life (Yrs)</td> <td style="font-weight: bold; line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td colspan="2" style="font-weight: bold; line-height: normal; text-align: center; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">Number of Options Currently Exercisable</td> <td style="font-weight: bold; line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 23%; text-align: right; font-size-adjust: none; font-stretch: normal">14,000,000</td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal">$</td> <td style="line-height: normal; width: 22%; text-align: right; font-size-adjust: none; font-stretch: normal">0.060</td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 22%; text-align: right; font-size-adjust: none; font-stretch: normal">2.23</td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 22%; text-align: right; font-size-adjust: none; font-stretch: normal">14,000,000</td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: white"> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">14,000,000</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">0.060</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">2.43</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">14,000,000</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">3,450,000</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">0.060</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">2.57</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">3,450,000</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: white"> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">8,400,000</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">0.050</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">3.05</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">8,400,000</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">10,000,000</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">0.065</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">4.73</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">—</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: white"> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: right; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">49,850,000</td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">$</td> <td style="font-weight: bold; line-height: normal; text-align: right; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">0.058</td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: right; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">3.0</td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: right; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">39,850,000</td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td></tr> </table>   The following assumptions were used for the Black-Scholes valuation of stock options granted during the six-month period ended March 31, 2019: risk-free rate of 1.62% (2018 – 1.62%), expected life of 5 years (2018 – 5 years), annualized historical volatility of 138.8% (2018 – 138.8%) and a dividend rate of 0% (2018 – 0%). Expected volatilities are based on historical volatility of the Company’s stock and other factors. The compensation cost that has been charged against income from options vested under the Plan was $nil for the six-month period ended March 31, 2019 (March 31, 2018 – $2,651,050) as none of the options granted were currently vested.   The weighted-average grant-date fair value of options granted during the six-month period ended March 31, 2019 was $0.07 (2018 - $0.14). The total intrinsic value of options exercised during the period ended March 31, 2019 was $nil (2018 - $1,538,525).

Principles of Consolidation   These 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 March 31, 2019, Digifonica had no activities.

Use of Estimates   The preparation of these consolidated financial statements required management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from these estimates. Where estimates have been used financial results as determined by actual events could differ from those estimates.

Cash   Cash consists of cash on hand and monies held in checking and savings accounts. The Company had $2,501,436 and $3,175,523 in cash on March 31, 2019 and September 30, 2018, respectively.

Fair Value of Financial Instruments   FASB ASC 820, Fair Value Measurement, defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity.   The Company classifies financial assets and liabilities as held-for-trading, available-for-sale, held-to-maturity, loans and receivables or other financial liabilities depending on their nature. Financial assets and financial liabilities are recognized at fair value on their initial recognition, except for those arising from certain related party transactions which are accounted for at the transferor’s carrying amount or exchange amount.   Financial assets and liabilities classified as held-for-trading are measured at fair value, with gains and losses recognized in net income. Financial assets classified as held-to-maturity, loans and receivables, and financial liabilities other than those classified as held-for-trading are measured at amortized cost, using the effective interest method of amortization. Financial assets classified as available-for-sale are measured at fair value, with unrealized gains and losses being recognized as other comprehensive income until realized, or if an unrealized loss is considered other than temporary, the unrealized loss is recorded in income.   U.S. GAAP establishes a framework for measuring fair value under generally accepted accounting principles and enhances disclosures about fair value measurements. Fair value is defined as the amount that would be received for an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes the following fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value:   Level 1: Quoted prices in active markets for identical assets and liabilities.   Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.   Level 3: Unobservable inputs supported by little or no market activity and that are significant to the fair value of the assets or liabilities.   The fair value of cash is classified as Level 1 at March 31, 2019 and September 30, 2018.    The Company classifies its financial instruments as follows: Cash is classified as held for trading and is measured at fair value. Accounts payable and accrued liabilities are classified as other 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, generally for three years after they are filed.

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 six-month period ended March 31, 2019 and the year ended September 30, 2018 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.

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 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 maintains cash at financial institutions, which at times, may be in excess of insured limits. The Company has not experienced any losses to date as a result of this policy and, in assessing its risk, the Company’s policy is to maintain cash only with reputable financial institutions. As of March 31, 2019, the Company’s bank operating account balances exceeded the Federal Deposit Insurance Corporation Insurance Limit of $250,000 by $2,251,436.

Recent Accounting Pronouncements   In January 2016, FASB issued an ASU, Subtopic 825-10, to amend certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Most prominent among the amendments is the requirement for changes in fair value of equity investments, with certain exceptions, to be recognized through profit or loss rather than other comprehensive income. The Company adopted the standard October 1, 2018. There was no impact on the Company’s financial statements from the adoption of this amendment.   In January 2016, FASB issued ASU 2016-01 to amend certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Most prominent among the amendments is the requirement for changes in fair value of equity investments, with certain exceptions, to be recognized through profit or loss rather than other comprehensive income. The new standard was effective for the Company beginning October 1, 2018. The standard did not have any impact on the Company’s financial statements.    In February 2016 FASB issued ASU No. 2016-02, Leases (Topic 842) which supersedes FASB ASC Topic 840, Leases (Topic 840) and provides principles for the recognition, measurement, presentation, and disclosure of leases for both lessees and the lessors. The new standard requires the lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. The classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. The standard is effective for annual periods beginning after December 15, 2018, with early adoption permitted upon issuance. When adopted, the Company does not expect this guidance to have a material impact on its consolidated financial statements.   In June 2016, the FASB issued ASU 2016-13 to replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss credit loss estimates. For trade and other receivables, loans and other financial instruments, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available for sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The new standard will be effective for the Company beginning October 1, 2020, with early adoption permitted. Application of the amendments is through a cumulative-effect adjustment to deficit as of the effective date. The Company is currently assessing the impact of the standard on its consolidated financial statements.

A summary of the Company’s fixed assets as of March 31, 2019 and September 30, 2018 is as follows:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; width: 70%; margin-left: 3%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal"> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal"> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td colspan="2" style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> March 31, 2019</td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td colspan="2" style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">September 30, 2018</td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="line-height: normal; width: 60%; text-align: left; font-size-adjust: none; font-stretch: normal">Office furniture & computers</td> <td style="font-weight: bold; line-height: normal; width: 1%; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal">$</td> <td style="font-weight: bold; line-height: normal; width: 17%; text-align: right; font-size-adjust: none; font-stretch: normal">11,917</td> <td style="font-weight: bold; line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal">$</td> <td style="line-height: normal; width: 17%; text-align: right; font-size-adjust: none; font-stretch: normal">—</td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: white"> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal">Accumulated depreciation</td> <td style="font-weight: bold; line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">(376</td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">)</td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">—</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal">Net book value</td> <td style="font-weight: bold; line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">$</td> <td style="font-weight: bold; line-height: normal; text-align: right; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">11,541</td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">$</td> <td style="line-height: normal; text-align: right; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">—</td> <td style="line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td></tr> </table>

A summary of intangible assets as of March 31, 2019 and September 30, 2018 is as follows:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; width: 70%; margin-left: 3%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal"> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal"> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td colspan="2" style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> March 31, 2019</td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td colspan="2" style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">September 30, 2018</td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="line-height: normal; width: 60%; text-align: left; font-size-adjust: none; font-stretch: normal">VoIP Intellectual property and patents</td> <td style="font-weight: bold; line-height: normal; width: 1%; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal">$</td> <td style="font-weight: bold; line-height: normal; width: 17%; text-align: right; font-size-adjust: none; font-stretch: normal">1,552,416</td> <td style="font-weight: bold; line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal">$</td> <td style="line-height: normal; width: 17%; text-align: right; font-size-adjust: none; font-stretch: normal">1,552,416</td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: white"> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal">Accumulated amortization</td> <td style="font-weight: bold; line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">(703,966</td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">)</td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">(634,866</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">)</td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal">Net book value</td> <td style="font-weight: bold; line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">$</td> <td style="font-weight: bold; line-height: normal; text-align: right; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">848,450</td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">$</td> <td style="line-height: normal; text-align: right; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">917,550</td> <td style="line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td></tr> </table>

Compensation paid or accrued to key management for services during the six-month period ended March 31, 2019 includes:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; width: 70%; margin-left: 3%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal"> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal"> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td colspan="2" style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> March 31, 2019</td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td colspan="2" style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">March 31, 2018</td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="line-height: normal; width: 60%; text-align: left; font-size-adjust: none; font-stretch: normal">Management fees paid or accrued to the CEO</td> <td style="font-weight: bold; line-height: normal; width: 1%; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal">$</td> <td style="font-weight: bold; line-height: normal; width: 17%; text-align: right; font-size-adjust: none; font-stretch: normal">72,000</td> <td style="font-weight: bold; line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal">$</td> <td style="line-height: normal; width: 17%; text-align: right; font-size-adjust: none; font-stretch: normal">45,000</td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: white"> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal">Management fees paid or accrued to the CFO</td> <td style="font-weight: bold; line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">43,200</td> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">43,200</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal">Management fees paid or accrued to the President</td> <td style="font-weight: bold; line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">30,000</td> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">18,000</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: white"> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal">Fees paid or accrued to Directors</td> <td style="font-weight: bold; line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">36,000</td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">36,000</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">$</td> <td style="font-weight: bold; line-height: normal; text-align: right; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">181,200</td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">$</td> <td style="line-height: normal; text-align: right; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">142,200</td></tr> </table>

The following table summarizes the Company’s share purchase warrant transactions:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; width: 70%; margin-left: 3%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal"> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal"> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td colspan="2" style="line-height: normal; text-align: center; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> Number of warrants</td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td colspan="2" style="font-weight: bold; line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">Weighted average exercise price</td> <td style="font-weight: bold; line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="font-weight: bold; line-height: normal; width: 61%; text-align: left; font-size-adjust: none; font-stretch: normal">Balance September 31, 2017</td> <td style="font-weight: bold; line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; width: 1%; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; width: 16%; text-align: right; font-size-adjust: none; font-stretch: normal">61,500,500</td> <td style="font-weight: bold; line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; width: 1%; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal">$</td> <td style="font-weight: bold; line-height: normal; width: 16%; text-align: right; font-size-adjust: none; font-stretch: normal">0.04</td> <td style="font-weight: bold; line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: white"> <td style="line-height: normal; text-align: left; padding-left: 0.125in; font-size-adjust: none; font-stretch: normal">Issued </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">6,306,000</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">0.04</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="line-height: normal; text-align: left; padding-left: 0.125in; font-size-adjust: none; font-stretch: normal">Exercised</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">(50,125,000</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal">)</td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">0.04</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: white"> <td style="line-height: normal; text-align: left; padding-left: 0.125in; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">Expired</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">(11,375,500</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">)</td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">0.04</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal">Balance September 31, 2018</td> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">6,306,000</td> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal">$</td> <td style="font-weight: bold; line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">0.04</td> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: white"> <td style="line-height: normal; text-align: left; padding-left: 0.125in; font-size-adjust: none; font-stretch: normal">Issued </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">Nil</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">N/A</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="line-height: normal; text-align: left; padding-left: 0.125in; font-size-adjust: none; font-stretch: normal">Exercised</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">(6,306,000</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal">)</td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">0.04</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: white"> <td style="line-height: normal; text-align: left; padding-left: 0.125in; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">Expired</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">Nil</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">          N/A</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">Balance March 31, 2019</td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: right; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">Nil</td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">         N/A</td> <td style="line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td></tr> </table>

The following table summarizes the Company’s stock option transactions:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; width: 70%; margin-left: 3%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal"> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal"> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td colspan="2" style="font-weight: bold; line-height: normal; text-align: center; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">Number of options</td> <td style="font-weight: bold; line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td colspan="2" style="line-height: normal; text-align: center; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> Weighted average exercise price</td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="line-height: normal; width: 61%; text-align: left; font-size-adjust: none; font-stretch: normal">Balance September 30, 2017</td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 16%; text-align: right; font-size-adjust: none; font-stretch: normal">39,850,000</td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal">$</td> <td style="line-height: normal; width: 16%; text-align: right; font-size-adjust: none; font-stretch: normal">0.058</td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: white"> <td style="line-height: normal; text-align: left; padding-left: 0.125in; font-size-adjust: none; font-stretch: normal">Granted </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">18,500,000</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">0.18</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="line-height: normal; text-align: left; padding-left: 0.125in; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">Cancelled</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">(18,500,000</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">)</td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">(0.18</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">)</td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: white"> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal">Balance September 30, 2018</td> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">39,850,000</td> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal">$</td> <td style="font-weight: bold; line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">0.058</td> <td style="font-weight: bold; line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="line-height: normal; text-align: left; padding-left: 0.125in; font-size-adjust: none; font-stretch: normal">Granted </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">10,000,000</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">0.065</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: white"> <td style="line-height: normal; text-align: left; padding-left: 0.125in; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">Cancelled</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">—</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">—</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">Balance March 31, 2019 </td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: right; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">49,850,000</td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">$</td> <td style="font-weight: bold; line-height: normal; text-align: right; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">0.060</td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td></tr> </table>

The following table summarizes the stock options outstanding at March 31, 2019:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; width: 70%; margin-left: 3%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal"> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal"> <td colspan="2" style="font-weight: bold; line-height: normal; text-align: center; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">Options Outstanding</td> <td style="font-weight: bold; line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td colspan="2" style="font-weight: bold; line-height: normal; text-align: center; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">Exercise Price</td> <td style="font-weight: bold; line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td colspan="2" style="font-weight: bold; line-height: normal; text-align: center; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">Remaining Contractual Life (Yrs)</td> <td style="font-weight: bold; line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td colspan="2" style="font-weight: bold; line-height: normal; text-align: center; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">Number of Options Currently Exercisable</td> <td style="font-weight: bold; line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 23%; text-align: right; font-size-adjust: none; font-stretch: normal">14,000,000</td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal">$</td> <td style="line-height: normal; width: 22%; text-align: right; font-size-adjust: none; font-stretch: normal">0.060</td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 22%; text-align: right; font-size-adjust: none; font-stretch: normal">2.23</td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; width: 22%; text-align: right; font-size-adjust: none; font-stretch: normal">14,000,000</td> <td style="line-height: normal; width: 1%; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: white"> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">14,000,000</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">0.060</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">2.43</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">14,000,000</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">3,450,000</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">0.060</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">2.57</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">3,450,000</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: white"> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">8,400,000</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">0.050</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">3.05</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; font-size-adjust: none; font-stretch: normal">8,400,000</td> <td style="line-height: normal; text-align: left; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: rgb(204, 238, 255)"> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">10,000,000</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">0.065</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">4.73</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td> <td style="line-height: normal; text-align: right; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal">—</td> <td style="line-height: normal; text-align: left; border-bottom: black 1pt solid; font-size-adjust: none; font-stretch: normal"> </td></tr> <tr style="line-height: normal; vertical-align: bottom; font-size-adjust: none; font-stretch: normal; background-color: white"> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: right; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">49,850,000</td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">$</td> <td style="font-weight: bold; line-height: normal; text-align: right; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">0.058</td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: right; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">3.0</td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td> <td style="font-weight: bold; line-height: normal; text-align: right; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal">39,850,000</td> <td style="font-weight: bold; line-height: normal; text-align: left; border-bottom: black 2pt double; font-size-adjust: none; font-stretch: normal"> </td></tr> </table>

4162227

4303890

2170747

863374

3635733

3493279

1018760

1104956

1063041

33028389

34914656

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45198281

-42648364

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1228321197

1472796135

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1952267592

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1005967

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87750

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252240 40000 906000 1000 39000 22650 883350 41100 1032525 1073625 6306 245934 1000000 22650000 41100000 6306000 118121352 56862333 225184791 10000 21542 31542 -10000000 31542 31542

5080000

127000

4953000

127000000

Intangible Assets   Intangible assets, consisting of VoIP communication patent intellectual properties (IP) are recorded at cost and amortized over the assets estimated life on a straight-line basis. Management considers factors such as remaining life of the patents, technological usefulness and other factors in estimating the life of the assets.   The carrying value of intangible assets are reviewed for impairment by management of the Company at least annually or upon the occurrence of an event which may indicate that the carrying amount may be less than its fair value. If impaired, the Company will write-down such impairment. In addition, the useful life of the intangible assets will be evaluated by management at least annually or upon the occurrence of an event which may indicate that the useful life may have changed.

Fixed Assets   Fixed assets are stated at cost less accumulated depreciation, and depreciated using the straight-line method over their useful lives; Furniture and equipment – 7 years; and Computers and Software – 3 years.

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Barry Lee [Member] Mr. Dennis Chang [Member] Director [Member] Officers and Directors [Member] Equity Components [Axis] Common Stock [Member] Shares to be Issued [Member] Additional Paid-In Capital [Member] Deficit [Member] Officers [Member] Three Directors [Member] Title of Individual [Axis] Chief Executive Officer [Member] Common Stock Par Value [Member] Common Stock Par Value [Member] Range [Axis] Maximum [Member] Minimum [Member] Warrant [Member] Sale of Stock [Axis] Private Placement #2 [Member] Private Placement #3 [Member] Private Placement [Member] Type of Shares to be Issued [Axis] Accrued For Services [Member] Management [Member] Award Type [Axis] Options 1 Outstanding [Member] Options 2 Outstanding [Member] Options 3 Outstanding [Member] Options 4 Outstanding [Member] Options 5 Outstanding [Member] Plan Name [Axis] Incentive Stock Option Plan [Member] Litigation Case [Axis] State Case [Member] Federal Case [Member] Federal Case 2 [Member] Federal Case 3 [Member] Federal Case 4 [Member] Common Shares [Member] Document And Entity Information Entity Registrant Name Entity Central Index Key Document Type Trading Symbol Document Period End Date Amendment Flag Current Fiscal Year End Date Entity's Reporting Status Current Entity Filer Category Entity Small Business Entity Emerging Growth Company Entity Common Stock, Shares Outstanding Document Fiscal Period Focus Document Fiscal Year Focus Statement of Financial Position [Abstract] ASSETS CURRENT Cash Legal retainer Prepaid expense TOTAL CURRENT ASSETS NON-CURRENT Fixed assets (Note 5) Intellectual VoIP communications patent properties, net (Note 6) TOTAL ASSETS LIABILITIES CURRENT Accounts payable and accrued liabilities TOTAL LIABILITIES STOCKHOLDERS' EQUITY SHARE CAPITAL (Note 9) ADDITIONAL PAID-IN CAPITAL (Note 9) SHARES TO BE ISSUED (Note 9) DEFICIT TOTAL EQUITY TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY Income Statement [Abstract] EXPENSES Amortization (Note 5 and 6) Officers and Directors Fees (Note 7) Legal fees (Note 6) Office & general Patent consulting fees Professional fees & services (Note 6) Stock-based compensation (Note 10 and 11) Total expenses NET LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD Basic and diluted loss per common share (in dollars per share) Weighted-average number of common shares outstanding: Basic and diluted (in shares) Statement of Cash Flows [Abstract] Cash Flows from Operating Activities Net loss for the period Add items not affecting cash: Stock-based compensation Shares issued for services Amortization Changes in non-cash working capital: Prepaid expense Accounts payable and accrued liabilities Legal retainer Subscriptions receivable Cash Flows Used in Operating Activities Cash Flows from Investing Activities Acquisition of Equipment Cash Flows Used in Investing Activities Cash Flows from Financing Activities Proceeds from private placement Proceeds from warrant exercise Cash Flows Provided by Financing Activities Increase / (Decrease) in cash Cash, beginning of the period Cash, end of the period Statement [Table] Statement [Line Items] Beginning balance Beginning balance (in shares) Shares issued for private placement Shares issued for private placement (in shares) Shares issued for warrant exercise Shares issued for warrant exercise (in shares) Shares issued for services Shares issued for services (in shares) Shares issued for bonus compensation Shares issued for bonus compensation (in shares) Shares issued for Anti-Dilution Clause (Notes 4 & 9) (in shares) Share purchase options granted (Note 10) Shares returned (Note 9) Shares returned (Note 9) (in shares) Forgiveness of debt by related party (Note 9) Net loss for the period Ending balance Ending balance (in shares) Nature And Continuance Of Operations NATURE AND CONTINUANCE OF OPERATIONS Organization, Consolidation and Presentation of Financial Statements [Abstract] BASIS OF PRESENTATION Accounting Policies [Abstract] SIGNIFICANT ACCOUNTING POLICIES Business Combinations [Abstract] PURCHASE OF DIGIFONICA Property, Plant and Equipment [Abstract] FIXED ASSETS Goodwill and Intangible Assets Disclosure [Abstract] INTANGIBLE ASSETS Related Party Transactions [Abstract] RELATED PARTY TRANSACTIONS AND KEY MANAGEMENT COMPENSATION Supplemental Cash Flow Elements [Abstract] SUPPLEMENTAL CASH FLOW INFORMATION Equity [Abstract] SHARE CAPITAL Disclosure of Compensation Related Costs, Share-based Payments [Abstract] STOCK-BASED COMPENSATION Commitments and Contingencies Disclosure [Abstract] CONTINGENT LIABILITIES Principles of Consolidation Use of Estimates Cash Fixed Assets Intangible Assets Fair Value of Financial Instruments Income Taxes Loss per Common Share Derivatives Stock-based compensation Concentrations of Credit Risk Recent Accounting Pronouncements Schedule of fixed assets Schedule of intangible assets Schedule of compensation paid or accrued to key management Schedule of share purchase warrant transactions Schedule of stock option transactions Schedule of stock options outstanding Accumulated deficit FDIC insurance amount FDIC insurance amount increase (decrease) Useful lives Type of Arrangement and Non-arrangement Transactions [Axis] Ownership percentage Cash payment for acquisition Number of shares acquired in acquisition Anti-Dilution clause, percentage to be retained by seller Office furniture & computers Accumulated depreciation Net book value VoIP Intellectual property and patents Accumulated amortization Net book value EX-101.PRE 10 vplm-20190331_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT XML 11 R1.htm IDEA: XBRL DOCUMENT

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Mar. 31, 2019	May 14, 2019
Document And Entity Information
Entity Registrant Name	Voip-pal.com Inc
Entity Central Index Key	0001410738
Document Type	10-Q
Trading Symbol	VPLM
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity's Reporting Status Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		1,952,267,592
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019

XML 12 R2.htm IDEA: XBRL DOCUMENT

INTERIM CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2019	Sep. 30, 2018
CURRENT
Cash	$ 2,501,436	$ 3,175,523
Legal retainer	360,138	323,752
Prepaid expense	20,000
TOTAL CURRENT ASSETS	2,881,574	3,499,275
NON-CURRENT
Fixed assets (Note 5)	11,541
Intellectual VoIP communications patent properties, net (Note 6)	848,450	917,550
TOTAL ASSETS	3,741,565	4,416,825
CURRENT
Accounts payable and accrued liabilities	105,832	112,935
TOTAL LIABILITIES	105,832	112,935
STOCKHOLDERS' EQUITY
SHARE CAPITAL (Note 9)	1,428,734	1,276,653
ADDITIONAL PAID-IN CAPITAL (Note 9)	50,929,440	45,198,281
SHARES TO BE ISSUED (Note 9)	549,320	477,320
DEFICIT	(49,271,761)	(42,648,364)
TOTAL EQUITY	3,635,733	4,303,890
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 3,741,565	$ 4,416,825

XML 13 R3.htm IDEA: XBRL DOCUMENT

INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
EXPENSES
Amortization (Note 5 and 6)	$ 34,737	$ 34,550	$ 69,476	$ 69,100
Officers and Directors Fees (Note 7)	155,729	53,100	446,329	106,200
Legal fees (Note 6)	288,635	284,875	526,043	628,652
Office & general	77,542	98,452	151,829	187,657
Patent consulting fees	33,800	10,000	77,475	43,529
Professional fees & services (Note 6)	161,551	2,916,917	272,245	3,027,847
Stock-based compensation (Note 10 and 11)		2,651,050	5,080,000	2,651,050
Total expenses	751,994	6,048,944	6,623,397	6,714,035
NET LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD	$ (751,994)	$ (6,048,944)	$ (6,623,397)	$ (6,714,035)
Basic and diluted loss per common share (in dollars per share)	$ (0.00)	$ (0.00)	$ (0.00)	$ (0.00)
Weighted-average number of common shares outstanding:
Basic and diluted (in shares)	1,950,139,362	1,337,628,236	1,819,762,248	1,251,634,056

XML 14 R4.htm IDEA: XBRL DOCUMENT

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash Flows from Operating Activities
Net loss for the period	$ (6,623,397)	$ (6,714,035)
Add items not affecting cash:
Stock-based compensation	5,080,000	2,651,050
Shares issued for services	404,000	2,810,829
Amortization	69,476	69,100
Changes in non-cash working capital:
Prepaid expense	(20,000)
Accounts payable and accrued liabilities	(7,103)	(18,469)
Legal retainer	(36,386)
Subscriptions receivable		(50,000)
Cash Flows Used in Operating Activities	(1,133,410)	(1,251,525)
Cash Flows from Investing Activities
Acquisition of Equipment	(11,917)
Cash Flows Used in Investing Activities	(11,917)
Cash Flows from Financing Activities
Proceeds from private placement	219,000	2,924,060
Proceeds from warrant exercise	252,240	958,000
Cash Flows Provided by Financing Activities	471,240	3,882,060
Increase / (Decrease) in cash	(674,087)	2,630,536
Cash, beginning of the period	3,175,523	12,157
Cash, end of the period	$ 2,501,436	$ 2,642,693

XML 15 R5.htm IDEA: XBRL DOCUMENT

INTERIM CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Common Stock [Member]	Shares to be Issued [Member]	Additional Paid-In Capital [Member]	Deficit [Member]	Total
Beginning balance at Sep. 30, 2017	$ 1,018,760	$ 1,063,041	$ 33,028,389	$ (34,246,816)	$ 863,374
Beginning balance (in shares) at Sep. 30, 2017	1,142,125,534
Shares issued for private placement	$ 85,038		1,845,055		1,930,093
Shares issued for private placement (in shares)	85,037,663
Shares issued for warrant exercise	$ 1,000		39,000		40,000
Shares issued for warrant exercise (in shares)	1,000,000
Shares issued for services	$ 158		2,212		2,370
Shares issued for services (in shares)	158,000
Net loss for the period				(665,090)	(665,090)
Ending balance at Dec. 31, 2017	$ 1,104,956	1,063,041	34,914,656	(34,911,906)	2,170,747
Ending balance (in shares) at Dec. 31, 2017	1,228,321,197
Beginning balance at Sep. 30, 2017	$ 1,018,760	1,063,041	33,028,389	(34,246,816)	863,374
Beginning balance (in shares) at Sep. 30, 2017	1,142,125,534
Net loss for the period					(6,714,035)
Ending balance at Mar. 31, 2018	$ 1,231,310		43,222,820	(40,960,851)	3,493,279
Ending balance (in shares) at Mar. 31, 2018	1,472,796,135
Beginning balance at Sep. 30, 2017	$ 1,018,760	1,063,041	33,028,389	(34,246,816)	863,374
Beginning balance (in shares) at Sep. 30, 2017	1,142,125,534
Ending balance at Sep. 30, 2018	$ 1,276,653	477,320	45,198,281	(42,648,364)	4,303,890
Ending balance (in shares) at Sep. 30, 2018	1,575,001,801
Beginning balance at Dec. 31, 2017	$ 1,104,956	1,063,041	34,914,656	(34,911,906)	2,170,747
Beginning balance (in shares) at Dec. 31, 2017	1,228,321,197
Shares issued for private placement	$ 16,766		989,201		1,005,967
Shares issued for private placement (in shares)	16,766,086
Shares issued for warrant exercise	$ 22,650		883,350		906,000
Shares issued for warrant exercise (in shares)	22,650,000
Shares issued for services	$ 86,938	(1,063,041)	3,784,563		2,808,460
Shares issued for services (in shares)	86,937,500
Shares issued for Anti-Dilution Clause (Notes 4 & 9) (in shares)	118,121,352
Share purchase options granted (Note 10)			2,651,050		2,651,050
Net loss for the period				(6,048,945)	(6,048,944)
Ending balance at Mar. 31, 2018	$ 1,231,310		43,222,820	(40,960,851)	3,493,279
Ending balance (in shares) at Mar. 31, 2018	1,472,796,135
Shares issued for private placement	$ (3,225)		454,350		451,125
Shares issued for private placement (in shares)	(3,225,000)
Shares issued for warrant exercise	$ 41,100		1,032,525		1,073,625
Shares issued for warrant exercise (in shares)	41,100,000
Shares issued for services	$ 17,468	477,320	576,828		1,071,616
Shares issued for services (in shares)	17,468,333
Shares issued for Anti-Dilution Clause (Notes 4 & 9) (in shares)	56,862,333
Share purchase options granted (Note 10)			(98,242)		(98,242)
Shares returned (Note 9)	$ (10,000)		(21,542)		(31,542)
Shares returned (Note 9) (in shares)	(10,000,000)
Forgiveness of debt by related party (Note 9)			31,542		31,542
Net loss for the period				(1,687,513)	(1,687,513)
Ending balance at Sep. 30, 2018	$ 1,276,653	477,320	45,198,281	(42,648,364)	4,303,890
Ending balance (in shares) at Sep. 30, 2018	1,575,001,801
Shares issued for private placement	$ 2,250		87,750		90,000
Shares issued for private placement (in shares)	2,250,000
Shares issued for warrant exercise	$ 6,306		245,934		252,240
Shares issued for warrant exercise (in shares)	6,306,000
Shares issued for services	$ 12,238	18,000	277,262		307,500
Shares issued for services (in shares)	12,237,500
Shares issued for bonus compensation	$ 127,000		4,953,000		5,080,000
Shares issued for bonus compensation (in shares)	127,000,000
Shares issued for Anti-Dilution Clause (Notes 4 & 9) (in shares)	225,184,791
Net loss for the period				(5,871,403)	(5,871,403)
Ending balance at Dec. 31, 2018	$ 1,424,447	495,320	50,762,227	(48,519,767)	4,162,227
Ending balance (in shares) at Dec. 31, 2018	1,947,980,092
Beginning balance at Sep. 30, 2018	$ 1,276,653	477,320	45,198,281	(42,648,364)	4,303,890
Beginning balance (in shares) at Sep. 30, 2018	1,575,001,801
Net loss for the period					(6,623,397)
Ending balance at Mar. 31, 2019	$ 1,428,734	549,320	50,929,440	(49,271,761)	3,635,733
Ending balance (in shares) at Mar. 31, 2019	1,952,267,592
Beginning balance at Dec. 31, 2018	$ 1,424,447	495,320	50,762,227	(48,519,767)	4,162,227
Beginning balance (in shares) at Dec. 31, 2018	1,947,980,092
Shares issued for private placement	$ 3,225		125,775		129,000
Shares issued for private placement (in shares)	3,225,000
Shares issued for services	$ 1,062	54,000	41,438		96,500
Shares issued for services (in shares)	1,062,500
Net loss for the period				(751,994)	(751,994)
Ending balance at Mar. 31, 2019	$ 1,428,734	$ 549,320	$ 50,929,440	$ (49,271,761)	$ 3,635,733
Ending balance (in shares) at Mar. 31, 2019	1,952,267,592

XML 16 R6.htm IDEA: XBRL DOCUMENT

NATURE AND CONTINUANCE OF OPERATIONS

6 Months Ended

Mar. 31, 2019

Nature And Continuance Of Operations

NATURE AND CONTINUANCE OF OPERATIONS

NOTE 1.

NATURE AND CONTINUANCE OF OPERATIONS

XML 17 R7.htm IDEA: XBRL DOCUMENT

BASIS OF PRESENTATION

6 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

NOTE 2.

BASIS OF PRESENTATION

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

XML 18 R8.htm IDEA: XBRL DOCUMENT

SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

NOTE 3.

SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

Use of Estimates

Cash

Cash consists of cash on hand and monies held in checking and savings accounts. The Company had $2,501,436 and $3,175,523 in cash on March 31, 2019 and September 30, 2018, respectively.

Fixed Assets

Intangible Assets

Fair Value of Financial Instruments

Level 1: Quoted prices in active markets for identical assets and liabilities.

Level 3: Unobservable inputs supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The fair value of cash is classified as Level 1 at March 31, 2019 and September 30, 2018.

Income Taxes

Loss per Common Share

Derivatives

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.

Concentrations of Credit Risk

Recent Accounting Pronouncements

XML 19 R9.htm IDEA: XBRL DOCUMENT

PURCHASE OF DIGIFONICA

6 Months Ended

Mar. 31, 2019

Business Combinations [Abstract]

PURCHASE OF DIGIFONICA

NOTE 4.

PURCHASE OF DIGIFONICA

XML 20 R10.htm IDEA: XBRL DOCUMENT

FIXED ASSETS

6 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

FIXED ASSETS

NOTE 5.

FIXED ASSETS

A summary of the Company’s fixed assets as of March 31, 2019 and September 30, 2018 is as follows:

	March 31, 2019			September 30, 2018
Office furniture & computers	$	11,917		$	—
Accumulated depreciation		(376	)		—
Net book value	$	11,541		$	—

There were no retirements of any fixed assets in the periods presented.

XML 21 R11.htm IDEA: XBRL DOCUMENT

INTANGIBLE ASSETS

6 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

NOTE 6.

INTANGIBLE ASSETS

	March 31, 2019			September 30, 2018
VoIP Intellectual property and patents	$	1,552,416		$	1,552,416
Accumulated amortization		(703,966	)		(634,866	)
Net book value	$	848,450		$	917,550

There were no disposals of any intangible assets in the periods presented.

XML 22 R12.htm IDEA: XBRL DOCUMENT

RELATED PARTY TRANSACTIONS AND KEY MANAGEMENT COMPENSATION

6 Months Ended

Mar. 31, 2019

NOTE 7.

RELATED PARTY TRANSACTIONS AND KEY MANAGEMENT COMPENSATION

Compensation paid or accrued to key management for services during the six-month period ended March 31, 2019 includes:

	March 31, 2019		March 31, 2018
Management fees paid or accrued to the CEO	$	72,000	$	45,000
Management fees paid or accrued to the CFO		43,200		43,200
Management fees paid or accrued to the President		30,000		18,000
Fees paid or accrued to Directors		36,000		36,000
	$	181,200	$	142,200

XML 23 R13.htm IDEA: XBRL DOCUMENT

SUPPLEMENTAL CASH FLOW INFORMATION

6 Months Ended

Mar. 31, 2019

Supplemental Cash Flow Elements [Abstract]

SUPPLEMENTAL CASH FLOW INFORMATION

NOTE 8.

SUPPLEMENTAL CASH FLOW INFORMATION

During the six-month period ended March 31, 2019, the Company paid $nil (March 31, 2018 - $nil) in interest or income taxes.

XML 24 R14.htm IDEA: XBRL DOCUMENT

SHARE CAPITAL

6 Months Ended

Mar. 31, 2019

Equity [Abstract]

SHARE CAPITAL

NOTE 9.

SHARE CAPITAL

Capital Stock Authorized and Issued:

–

3,000,000,000 (September 30, 2018 – 2,000,000,000) common voting shares authorized with a par value of $0.001 each, of which 1,952,267,592 (September 30, 2018 – 1,575,001,801) shares are issued.

–

1,000,000 convertible preferred shares authorized with a par value of $0.01 each, of which nil (2018 – nil) shares are issued.

Issues during the six-month period ended March 31, 2019

During the six-month period ended March 31, 2019, the Company issued:

–

5,475,000 common shares priced at $0.04 per common share for cash proceeds of $219,000 from a private placement of common shares;

–

6,306,000 common shares priced at $0.04 per common share for cash proceeds of $252,240 from the exercise of 6,306,000 common share purchase warrants;

–

127,000,000 common shares issued as bonus compensation, recorded as an expense to the Company of $5,080,000 (Note 11); and

–

225,184,791 common shares priced between $0.003 and $0.04 per common share pursuant to the Anti-Dilution Clause for a value of $5,124,641 (Note 4 and 6).

Issues during the year ended September 30, 2018

During the year ended September 30, 2018, the Company issued:

–

113,453,749 common shares for cash proceeds of $3,402,060 from private placements, as follows;

○

107,147,749 common shares priced between $0.015 and $0.06 per common share for cash proceeds of $3,303,940 from a private placement of common shares; and

○

–

50,125,000 common shares at $0.04 per common share for cash proceeds of $2,005,000 on the exercise of 50,125,000 common share purchase warrants;

–

174,983,685 common shares priced at $0.038 per common share pursuant to the Anti-Dilution Clause for a value of $6,649,380 (Note 4 and 6).

During the year ended September 30, 2018, 10,000,000 common shares were returned to the treasury at $0.003 per share with an aggregate value of $31,542 (Note 7).

Subsequent Issues

Subsequent to the six-month period ended March 31, 2019, the Company issued nil common shares.

Shares to be Issued

Warrants

During the six-month period ended March 31, 2019, the Company issued no new warrants.

As of March 31, 2019, there were no outstanding warrants to be exercised.

The following table summarizes the Company’s share purchase warrant transactions:

	Number of warrants			Weighted average exercise price
Balance September 31, 2017		61,500,500		$	0.04
Issued		6,306,000			0.04
Exercised		(50,125,000	)		0.04
Expired		(11,375,500	)		0.04
Balance September 31, 2018		6,306,000		$	0.04
Issued		Nil			N/A
Exercised		(6,306,000	)		0.04
Expired		Nil			N/A
Balance March 31, 2019		Nil			N/A

XML 25 R15.htm IDEA: XBRL DOCUMENT

STOCK-BASED COMPENSATION

6 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK-BASED COMPENSATION

NOTE 10.

STOCK-BASED COMPENSATION

Stock Option Plan

The following table summarizes the Company’s stock option transactions:

	Number of options			Weighted average exercise price
Balance September 30, 2017		39,850,000		$	0.058
Granted		18,500,000			0.18
Cancelled		(18,500,000	)		(0.18	)
Balance September 30, 2018		39,850,000		$	0.058
Granted		10,000,000			0.065
Cancelled		—			—
Balance March 31, 2019		49,850,000		$	0.060

The following table summarizes the stock options outstanding at March 31, 2019:

Options Outstanding		Exercise Price		Remaining Contractual Life (Yrs)		Number of Options Currently Exercisable
	14,000,000	$	0.060		2.23		14,000,000
	14,000,000		0.060		2.43		14,000,000
	3,450,000		0.060		2.57		3,450,000
	8,400,000		0.050		3.05		8,400,000
	10,000,000		0.065		4.73		—
	49,850,000	$	0.058		3.0		39,850,000

XML 26 R16.htm IDEA: XBRL DOCUMENT

CONTINGENT LIABILITIES

6 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

CONTINGENT LIABILITIES

NOTE 11.

CONTINGENT LIABILITIES

Litigation

The Company is party to pending litigation cases as follows:

Locksmith Financial Corporation, Inc. et al. v Voip-Pal.com Inc. (Case No A-15-717491-C) filed in Clark County District Court (the “State Case”)

ii)

Voip-Pal.com Inc. v. Richard Kipping, et al. (Case No. 2:15-cv-01258-JAD-VCF) filed in United States District Court (the “Federal Case”)

iii)

iv)

Voip-Pal.com Inc. v. Twitter, Inc. (Case No. 2:16-CV-02338) in the United States District Court, District of Nevada

Voip-Pal.com Inc. v. Amazon.com, Inc. et al. (Case No. 2:18-CV-01076) in the United States District Court, District of Nevada

Inter Partes Reviews

More particularly, a total of eight IPRs, filed against Patent No. 8,542,815 and No. 9,179,005, were either in process before the PTAB or had been resolved, as follows:

–

Performance Bonus Payable

During the period ended September 30, 2018, the board of directors authorized the increase of the Performance Bonus to up to 10% of the capital stock of the Company.

As at March 31, 2019, no bonusable event had occurred and there was no Performance Bonus payable.

XML 27 R17.htm IDEA: XBRL DOCUMENT

SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Policies)	Mar. 31, 2019
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation These 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 March 31, 2019, Digifonica had no activities.
Use of Estimates	Use of Estimates The preparation of these consolidated financial statements required management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from these estimates. Where estimates have been used financial results as determined by actual events could differ from those estimates.
Cash	Cash Cash consists of cash on hand and monies held in checking and savings accounts. The Company had $2,501,436 and $3,175,523 in cash on March 31, 2019 and September 30, 2018, respectively.
Fixed Assets	Fixed Assets Fixed assets are stated at cost less accumulated depreciation, and depreciated using the straight-line method over their useful lives; Furniture and equipment – 7 years; and Computers and Software – 3 years.
Intangible Assets	Intangible Assets Intangible assets, consisting of VoIP communication patent intellectual properties (IP) are recorded at cost and amortized over the assets estimated life on a straight-line basis. Management considers factors such as remaining life of the patents, technological usefulness and other factors in estimating the life of the assets. The carrying value of intangible assets are reviewed for impairment by management of the Company at least annually or upon the occurrence of an event which may indicate that the carrying amount may be less than its fair value. If impaired, the Company will write-down such impairment. In addition, the useful life of the intangible assets will be evaluated by management at least annually or upon the occurrence of an event which may indicate that the useful life may have changed.
Fair Value of Financial Instruments	Fair Value of Financial Instruments FASB ASC 820, Fair Value Measurement, defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. The Company classifies financial assets and liabilities as held-for-trading, available-for-sale, held-to-maturity, loans and receivables or other financial liabilities depending on their nature. Financial assets and financial liabilities are recognized at fair value on their initial recognition, except for those arising from certain related party transactions which are accounted for at the transferor’s carrying amount or exchange amount. Financial assets and liabilities classified as held-for-trading are measured at fair value, with gains and losses recognized in net income. Financial assets classified as held-to-maturity, loans and receivables, and financial liabilities other than those classified as held-for-trading are measured at amortized cost, using the effective interest method of amortization. Financial assets classified as available-for-sale are measured at fair value, with unrealized gains and losses being recognized as other comprehensive income until realized, or if an unrealized loss is considered other than temporary, the unrealized loss is recorded in income. U.S. GAAP establishes a framework for measuring fair value under generally accepted accounting principles and enhances disclosures about fair value measurements. Fair value is defined as the amount that would be received for an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes the following fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: Level 1: Quoted prices in active markets for identical assets and liabilities. Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The fair value of cash is classified as Level 1 at March 31, 2019 and September 30, 2018. The Company classifies its financial instruments as follows: Cash is classified as held for trading and is measured at fair value. Accounts payable and accrued liabilities are classified as other financial liabilities, and have a fair value approximating their carrying value, due to their short-term nature.
Income Taxes	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, generally for three years after they are filed.
Loss per Common Share	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 six-month period ended March 31, 2019 and the year ended September 30, 2018 there were no potentially dilutive securities included in the calculation of weighted-average common shares outstanding.
Derivatives	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.
Stock-based compensation	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 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	Concentrations of Credit Risk The Company maintains cash at financial institutions, which at times, may be in excess of insured limits. The Company has not experienced any losses to date as a result of this policy and, in assessing its risk, the Company’s policy is to maintain cash only with reputable financial institutions. As of March 31, 2019, the Company’s bank operating account balances exceeded the Federal Deposit Insurance Corporation Insurance Limit of $250,000 by $2,251,436.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In January 2016, FASB issued an ASU, Subtopic 825-10, to amend certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Most prominent among the amendments is the requirement for changes in fair value of equity investments, with certain exceptions, to be recognized through profit or loss rather than other comprehensive income. The Company adopted the standard October 1, 2018. There was no impact on the Company’s financial statements from the adoption of this amendment. In January 2016, FASB issued ASU 2016-01 to amend certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Most prominent among the amendments is the requirement for changes in fair value of equity investments, with certain exceptions, to be recognized through profit or loss rather than other comprehensive income. The new standard was effective for the Company beginning October 1, 2018. The standard did not have any impact on the Company’s financial statements. In February 2016 FASB issued ASU No. 2016-02, Leases (Topic 842) which supersedes FASB ASC Topic 840, Leases (Topic 840) and provides principles for the recognition, measurement, presentation, and disclosure of leases for both lessees and the lessors. The new standard requires the lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. The classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. The standard is effective for annual periods beginning after December 15, 2018, with early adoption permitted upon issuance. When adopted, the Company does not expect this guidance to have a material impact on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13 to replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss credit loss estimates. For trade and other receivables, loans and other financial instruments, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available for sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The new standard will be effective for the Company beginning October 1, 2020, with early adoption permitted. Application of the amendments is through a cumulative-effect adjustment to deficit as of the effective date. The Company is currently assessing the impact of the standard on its consolidated financial statements.

XML 28 R18.htm IDEA: XBRL DOCUMENT

FIXED ASSETS (Tables)

6 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

Schedule of fixed assets

A summary of the Company’s fixed assets as of March 31, 2019 and September 30, 2018 is as follows:

	March 31, 2019			September 30, 2018
Office furniture & computers	$	11,917		$	—
Accumulated depreciation		(376	)		—
Net book value	$	11,541		$	—

XML 29 R19.htm IDEA: XBRL DOCUMENT

INTANGIBLE ASSETS (Tables)

6 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible assets

A summary of intangible assets as of March 31, 2019 and September 30, 2018 is as follows:

	March 31, 2019			September 30, 2018
VoIP Intellectual property and patents	$	1,552,416		$	1,552,416
Accumulated amortization		(703,966	)		(634,866	)
Net book value	$	848,450		$	917,550

XML 30 R20.htm IDEA: XBRL DOCUMENT

RELATED PARTY TRANSACTIONS AND KEY MANAGEMENT COMPENSATION (Tables)

6 Months Ended

Mar. 31, 2019

Schedule of compensation paid or accrued to key management

Compensation paid or accrued to key management for services during the six-month period ended March 31, 2019 includes:

	March 31, 2019		March 31, 2018
Management fees paid or accrued to the CEO	$	72,000	$	45,000
Management fees paid or accrued to the CFO		43,200		43,200
Management fees paid or accrued to the President		30,000		18,000
Fees paid or accrued to Directors		36,000		36,000
	$	181,200	$	142,200

XML 31 R21.htm IDEA: XBRL DOCUMENT

SHARE CAPITAL (Tables)

6 Months Ended

Mar. 31, 2019

Equity [Abstract]

Schedule of share purchase warrant transactions

The following table summarizes the Company’s share purchase warrant transactions:

	Number of warrants			Weighted average exercise price
Balance September 31, 2017		61,500,500		$	0.04
Issued		6,306,000			0.04
Exercised		(50,125,000	)		0.04
Expired		(11,375,500	)		0.04
Balance September 31, 2018		6,306,000		$	0.04
Issued		Nil			N/A
Exercised		(6,306,000	)		0.04
Expired		Nil			N/A
Balance March 31, 2019		Nil			N/A

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References + Details

XML 32 R22.htm IDEA: XBRL DOCUMENT

STOCK-BASED COMPENSATION (Tables)

6 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of stock option transactions

The following table summarizes the Company’s stock option transactions:

	Number of options			Weighted average exercise price
Balance September 30, 2017		39,850,000		$	0.058
Granted		18,500,000			0.18
Cancelled		(18,500,000	)		(0.18	)
Balance September 30, 2018		39,850,000		$	0.058
Granted		10,000,000			0.065
Cancelled		—			—
Balance March 31, 2019		49,850,000		$	0.060

Schedule of stock options outstanding

The following table summarizes the stock options outstanding at March 31, 2019:

Options Outstanding		Exercise Price		Remaining Contractual Life (Yrs)		Number of Options Currently Exercisable
	14,000,000	$	0.060		2.23		14,000,000
	14,000,000		0.060		2.43		14,000,000
	3,450,000		0.060		2.57		3,450,000
	8,400,000		0.050		3.05		8,400,000
	10,000,000		0.065		4.73		—
	49,850,000	$	0.058		3.0		39,850,000

XML 33 R23.htm IDEA: XBRL DOCUMENT

NATURE AND CONTINUANCE OF OPERATIONS (Details Narrative) - USD ($)	Mar. 31, 2019	Sep. 30, 2018
Nature And Continuance Of Operations
Accumulated deficit	$ (49,271,761)	$ (42,648,364)

XML 34 R24.htm IDEA: XBRL DOCUMENT

SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	6 Months Ended
	Mar. 31, 2019	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2017
Cash	$ 2,501,436	$ 3,175,523	$ 2,642,693	$ 12,157
FDIC insurance amount	250,000
FDIC insurance amount increase (decrease)	$ 2,251,436
Furniture and Fixtures [Member]
Useful lives	7 years
Computers and Software [Member]
Useful lives	3 years

XML 35 R25.htm IDEA: XBRL DOCUMENT

PURCHASE OF DIGIFONICA (Details Narrative) - Digifonica [Member] - USD ($)	Dec. 31, 2013	Jun. 30, 2014
Ownership percentage		100.00%
Cash payment for acquisition	$ 800,000
Number of shares acquired in acquisition	389,023,561
Anti-Dilution clause, percentage to be retained by seller	40.00%

XML 36 R26.htm IDEA: XBRL DOCUMENT

FIXED ASSETS (Details) - USD ($)	Mar. 31, 2019	Sep. 30, 2018
Net book value	$ 11,541
Computers and Software [Member]
Office furniture & computers	11,917
Accumulated depreciation	(376)
Net book value	$ 11,541

XML 37 R27.htm IDEA: XBRL DOCUMENT

INTANGIBLE ASSETS (Details) - USD ($)	Mar. 31, 2019	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
VoIP Intellectual property and patents	$ 1,552,416	$ 1,552,416
Accumulated amortization	(703,966)	(634,866)
Net book value	$ 848,450	$ 917,550

XML 38 R28.htm IDEA: XBRL DOCUMENT

INTANGIBLE ASSETS (Details Narrative)	6 Months Ended
INTANGIBLE ASSETS (Details Narrative)	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Useful life of intangible assets	12 years
Amortization method for intangible assets	Straight line basis.

XML 39 R29.htm IDEA: XBRL DOCUMENT

RELATED PARTY TRANSACTIONS (Details) - USD ($)	3 Months Ended		6 Months Ended
RELATED PARTY TRANSACTIONS (Details) - USD ($)	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Officers and directors fees	$ 155,729	$ 53,100	$ 446,329	$ 106,200
Mr. Emil Malak [Member]
Officers and directors fees			72,000	45,000
D. Barry Lee [Member]
Officers and directors fees			43,200	43,200
Mr. Dennis Chang [Member]
Officers and directors fees			30,000	18,000
Director [Member]
Officers and directors fees			36,000	36,000
Officers and Directors [Member]
Officers and directors fees			$ 181,200	$ 142,200

XML 40 R30.htm IDEA: XBRL DOCUMENT

RELATED PARTY TRANSACTIONS AND KEY MANAGEMENT COMPENSATION (Details Narrative) - USD ($)	6 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Sep. 30, 2018
Number of shares issed	1,650,000		825,000
Number of shares issed, value	$ 96,000		$ 48,000
Key management compensation	13,200		13,200
Settlement of amounts due to key management	967,000
SHARES TO BE ISSUED (Note 9)	$ 549,320		$ 477,320
Chief Executive Officer [Member]
Number of shares issed	10,000,000	0
Number of shares issed, value	$ 200,000
Officers [Member]
Common shares were returned to treasury			10,000,000
Common shares were returned to treasury, value			$ 31,542
Share price (in dollars per shares)			$ 0.003
Three Directors [Member]
Number of bonus shares issued	90,000,000	0
Expense on issue of bonus shares	$ 3,600,000
Shares to be Issued [Member]
Number of shares issed	72,000		36,000
Number of shares issed, value	$ 18,000
Shares to be Issued [Member] \| Digifonica [Member]
SHARES TO BE ISSUED (Note 9)	2,858,333		$ 126,655,791
Additionally shares to be issued	225,184,791		0
Shares to be Issued [Member] \| Officers and Directors [Member]
SHARES TO BE ISSUED (Note 9)	$ 434,000		$ 416,000

XML 41 R31.htm IDEA: XBRL DOCUMENT

SUPPLEMENTAL CASH FLOW INFORMATION (Details Narrative) - USD ($)	6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Supplemental Cash Flow Elements [Abstract]
Interest paid	$ 0	$ 0
Income taxes paid	$ 0	$ 0
Shares to be issued into Additional paid-in capital upon the issuance of shares		1,063,041

XML 42 R32.htm IDEA: XBRL DOCUMENT

SHARE CAPITAL (Details) - $ / shares	6 Months Ended	12 Months Ended
SHARE CAPITAL (Details) - $ / shares	Mar. 31, 2019	Sep. 30, 2018
Number of warrants
Beginning Balance	6,306,000	61,500,500
Issued		6,306,000
Exercised	(6,306,000)	(50,125,000)
Expired		(11,375,500)
Ending Balance		6,306,000
Weighted average exercise price
Beginning Balance	$ 0.04	$ 0.04
Issued in unit private placement		0.04
Exercised	$ 0.04	0.04
Expired		0.04
Ending Balance		$ 0.04

XML 43 R33.htm IDEA: XBRL DOCUMENT

SHARE CAPITAL (Details Narrative) - USD ($)	3 Months Ended				6 Months Ended			12 Months Ended
SHARE CAPITAL (Details Narrative) - USD ($)	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2019	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2018	Sep. 30, 2017
Common stock, authorized shares	3,000,000,000				3,000,000,000	2,000,000,000		2,000,000,000
Common stock, issued shares	1,952,267,592				1,952,267,592	1,575,001,801		1,575,001,801
Common stock, par value (in dollars per share)	$ 0.001				$ 0.001	$ 0.001		$ 0.001
Preferred stock, authorized shares	1,000,000				1,000,000	1,000,000		1,000,000
Preferred stock, par value (in dollars per share)	$ 0.01				$ 0.01	$ 0.01		$ 0.01
Warrant exercise price (in dollars per share)						$ 0.04		$ 0.04	$ 0.04
Common shares issued for services, value	$ 96,500	$ 307,500	$ 2,808,460	$ 2,370		$ 1,071,616
Number of shares issued, value	$ 129,000	$ 90,000	$ 1,005,967	$ 1,930,093		$ 451,125
Proceeds from private placement					$ 219,000		$ 2,924,060
Number of shares issued upon exercised	6,306,000				6,306,000
Proceeds from shares issued upon exercised					$ 252,240		$ 958,000
Private Placement #2 [Member]
Share price (in dollars per share)	$ 0.04				$ 0.04
Number of shares issued					13,300,000		11,566,666	107,147,749
Proceeds from private placement					$ 332,000		$ 340,000	$ 3,303,940
Private Placement #3 [Member]
Share price (in dollars per share)	$ 0.04				$ 0.04
Number of shares issued					6,306,000			6,306,000
Proceeds from private placement					$ 252,240		$ 1,250,010	$ 98,120
Number of warrant exercised	6,306,000				6,306,000
Private Placement [Member]
Warrant exercise price (in dollars per share)						$ 0.04		$ 0.04
Number of shares issued					5,475,000			113,453,749
Proceeds from private placement					$ 219,000			$ 3,402,060
Maximum [Member] \| Private Placement #2 [Member]
Share price (in dollars per share)	$ 0.03				$ 0.03	0.06		$ 0.06
Maximum [Member] \| Private Placement #3 [Member]
Share price (in dollars per share)	$ 0.025				$ 0.025	0.02		0.02
Warrant exercise price (in dollars per share)						1		1
Warrant - common share purchase (shares)	1				1
Issued for services, price per share						0.02		0.02
Maximum [Member] \| Private Placement [Member]
Share price (in dollars per share)	$ 0.03				$ 0.03
Minimum [Member] \| Private Placement #2 [Member]
Share price (in dollars per share)	0.02				0.02	0.015		0.015
Minimum [Member] \| Private Placement #3 [Member]
Share price (in dollars per share)	0.02				0.02	0.013		0.013
Warrant exercise price (in dollars per share)						0.04		0.04
Issued for services, price per share						0.013		0.013
Minimum [Member] \| Private Placement [Member]
Share price (in dollars per share)	0.02				$ 0.02
Common Stock Par Value [Member]
Share price (in dollars per share)						0.003		0.003
Common Stock Par Value [Member]
Share price (in dollars per share)						0.038		$ 0.038
Common shares issued for services, shares					12,237,500
Common shares issued for services, value					$ 286,500			$ 477,320
Common shares issued for management compensation, shares					127,000,000
Common shares issued for management compensation, value					$ 5,080,000
Number of shares issued upon anti-dilution clause					225,184,791
Value of shares issued upon anti-dilution clause					$ 5,124,641
Common shares were returned to treasury								10,000,000
Common shares were returned to treasury, value								$ 31,542
Common Stock Par Value [Member] \| Maximum [Member]
Debt conversion, price per share	0.03				$ 0.03
Share price (in dollars per share)						0.05		$ 0.05
Issued for services, price per share	0.04				0.04
Anti-dilution clause share price (in dollars per share)	0.04				0.04
Common Stock Par Value [Member] \| Minimum [Member]
Debt conversion, price per share	0.025				0.025
Share price (in dollars per share)						0.02		0.02
Issued for services, price per share	0.02				0.02
Anti-dilution clause share price (in dollars per share)	$ 0.003				$ 0.003
Warrant [Member]
Share price (in dollars per share)						$ 0.04		$ 0.04
Number of shares issued upon exercised						50,125,000		50,125,000
Number of warrant exercised						50,125,000		50,125,000
Proceeds from shares issued upon exercised					$ 2,005,000
Proceeds from deposit					$ 477,320

XML 44 R34.htm IDEA: XBRL DOCUMENT

SHARE CAPITAL (Details Narrative 1) - USD ($)	12 Months Ended
SHARE CAPITAL (Details Narrative 1) - USD ($)	Sep. 30, 2018	Mar. 31, 2019	Sep. 30, 2017
SHARES TO BE ISSUED (Note 9)	$ 477,320	$ 549,320
Issuance of warrants (shares)	6,306,000
Warrants to purchase common stock (shares)		6,306,000
Warrant exercise price	$ 0.04		$ 0.04
Warrants outstanding	6,306,000		61,500,500
Weighted average exercise price (in dollars per share)		$ 0.04
Shares to be Issued [Member] \| Digifonica [Member]
SHARES TO BE ISSUED (Note 9)	$ 126,655,791	$ 2,858,333
Shares to be issued (shares)	4,812,920	114,333
Shares to be issued (value)	$ 126,655,791	$ 2,858,333
Shares to be Issued [Member] \| Management [Member]
Shares to be issued (shares)	10,840,000	13,090,000
Shares to be issued (value)	$ 416,000	$ 506,000
Shares to be Issued [Member] \| Accrued For Services [Member]
SHARES TO BE ISSUED (Note 9)	$ 477,320	$ 549,320
Shares to be issued (shares)	12,817,523	15,067,523

XML 45 R35.htm IDEA: XBRL DOCUMENT

STOCK-BASED COMPENSATION (Details) - $ / shares	6 Months Ended	12 Months Ended
STOCK-BASED COMPENSATION (Details) - $ / shares	Mar. 31, 2019	Sep. 30, 2018
Options, Outstanding [Roll Forward]
Balance at beginning	39,850,000	39,850,000
Granted	10,000,000	18,500,000
Cancelled		(18,500,000)
Balance at end	49,850,000	39,850,000
Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Balance at beginning	$ 0.058	$ 0.058
Granted	0.065	0.18
Cancelled		(0.18)
Balance at end	$ 0.060	$ 0.058

XML 46 R36.htm IDEA: XBRL DOCUMENT

STOCK-BASED COMPENSATION (Details 1)	6 Months Ended
STOCK-BASED COMPENSATION (Details 1)	Mar. 31, 2019 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding	49,850,000
Exercise Price \| $ / shares	$ 0.058
Remaining Contractual Life (Yrs)	3 years
Number of Options Currently Exercisable	39,850,000
Options 1 Outstanding [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding	14,000,000
Exercise Price \| $ / shares	$ 0.060
Remaining Contractual Life (Yrs)	2 years 2 months 23 days
Number of Options Currently Exercisable	14,000,000
Options 2 Outstanding [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding	14,000,000
Exercise Price \| $ / shares	$ 0.060
Remaining Contractual Life (Yrs)	2 years 5 months 5 days
Number of Options Currently Exercisable	14,000,000
Options 3 Outstanding [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding	3,450,000
Exercise Price \| $ / shares	$ 0.060
Remaining Contractual Life (Yrs)	3 years 6 months 25 days
Number of Options Currently Exercisable	3,450,000
Options 4 Outstanding [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding	8,400,000
Exercise Price \| $ / shares	$ 0.050
Remaining Contractual Life (Yrs)	3 years 18 days
Number of Options Currently Exercisable	8,400,000
Options 5 Outstanding [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding	10,000,000
Exercise Price \| $ / shares	$ 0.065
Remaining Contractual Life (Yrs)	4 years 8 months 23 days

XML 47 R37.htm IDEA: XBRL DOCUMENT

STOCK-BASED COMPENSATION (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
STOCK-BASED COMPENSATION (Details Narrative) - USD ($)	Mar. 31, 2018	Mar. 31, 2019	Sep. 30, 2018	Mar. 31, 2018
Share purchase options granted	$ 2,651,050		$ (98,242)
Incentive Stock Option Plan [Member]
Share based compensation authorization percentage		10.00%
Pricing Method used		Black-Scholes
Risk-free rate		1.62%		1.62%
Expected life		5 years		5 years
Expected volatility		138.80%		138.80%
Dividend rate		0.00%		0.00%
Weighted-average grant date fair value		$ 0.07		$ 0.14
Intrinsic value of options exercisable		$ 0		$ 1,538,525
Share purchase options granted		$ 0		$ 2,651,050

XML 48 R38.htm IDEA: XBRL DOCUMENT

CONTINGENT LIABILITIES (Details Narrative) - USD ($)			1 Months Ended	3 Months Ended				6 Months Ended
CONTINGENT LIABILITIES (Details Narrative) - USD ($)	Oct. 02, 2018	Oct. 06, 2016	Feb. 29, 2016	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2019	Sep. 30, 2018	Jul. 02, 2015	Mar. 24, 2014
Loss Contingencies [Line Items]
Performance bonus (percent)	3.33%			3.33%				3.33%	10.00%
Common Shares [Member]
Loss Contingencies [Line Items]
Performance bonus (percent)	6.67%			6.67%				6.67%
Number of shares issued	127,000,000			3,225,000	2,250,000	16,766,086	85,037,663		(3,225,000)
State Case [Member]
Loss Contingencies [Line Items]
Name of Plaintiff								Locksmith Financial Corporation, Inc. et al.
Name of Defendant								Voip-Pal.com Inc.
Description of legal suit								On March 24, 2014, the Company resolved to freeze 95,832,000 common shares that were issued to a company controlled by a former director (the “defendant”) in fiscal 2013 and accounted for at a cost of $1,443,000. The Company resolved to freeze the common shares as the Company believes that the shares were issued as settlement of a line of credit that the Company believes to have been legally unsupported.
Common shares in dispute											95,832,000
Value of common shares in dispute											$ 1,443,000
Federal Case [Member]
Loss Contingencies [Line Items]
Name of Plaintiff								Voip-Pal.com Inc.
Name of Defendant								Richard Kipping, et al.
Description of legal suit								On July 2, 2015, the Company filed a case against a former director, a shareholder and the company controlled by a former director. The Company alleges that the common shares issued in the State Case and an additional 7,200,000 common shares were fraudulently obtained and that the shares have been unlawfully transferred to other entities.
Common shares in dispute										7,200,000
Federal Case 2 [Member]
Loss Contingencies [Line Items]
Name of Plaintiff								Voip-Pal.com Inc.
Name of Defendant								Apple, Inc.
Description of legal suit								In February 2016 the Company filed patent infringement lawsuits in the United States District Court, District of Nevada against Apple, Inc, (Case No. 2:16-CV-00260), Verizon Wireless Services, LLC, Verizon Communications Inc., and AT&T Corp. (Case No. 2:16- VC-00271). These cases are seeking a combined $7,024,377,876 in damages. On May 9, 2016, the lawsuits were officially served to these companies.
Damages sought			$ 7,024,377,876
Federal Case 3 [Member]
Loss Contingencies [Line Items]
Name of Plaintiff								Voip-Pal.com Inc.
Name of Defendant								Twitter, Inc.
Description of legal suit								During the year ended September 30, 2017, on October 6, 2016, the Company filed a lawsuit in the United States District Court, District of Nevada against Twitter, Inc, (Case No. 2:16- CV-02338) in which Voip-Pal.com alleges infringement of U.S. Patent No. 8,542,815 and its continuation patent, U.S. Patent No. 9,179,005, This case is seeking $3,200,000 in damages. On December 28, 2016, the lawsuit was officially served to Twitter, Inc.
Damages sought		$ 3,200,000
Federal Case 4 [Member]
Loss Contingencies [Line Items]
Name of Plaintiff								Voip-Pal.com Inc.
Name of Defendant								Amazon.com, Inc.
Description of legal suit								During the period ended December 31, 2018, in June 2018, the Company filed a lawsuit in the United States District Court, District of Nevada, against Amazon.com, Inc. and certain related entities, alleging infringement of U.S. Patent Nos. 9,537,762, 9,813,330, 9,826,002 and 9,948,549.